Federal Register 2014-01-08: Vol 79 Iss 5

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FEDERAL REGISTER
Vol. 79 Wednesday,
No. 5 January 8, 2014
Pages 1303-1590
OFFICE OF THE FEDERAL REGISTER
II Federal Register/Vol. 79, No. 5/Wednesday, January 8, 2014
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Ill
Contents
Federal Register
Vol. 79, No. 5
Wednesday, January 8, 2014
Centers for Disease Control and Prevention Texas; Procedures for Stringency Determinations and
NOTICES Minor Permit Revisions for Federal Operating
Meetings: Permits; Withdrawal, 1349-1350
Advisory Board on Radiation and Worker Health, Proposed Standards of Performance:
National Institute for Occupational Safety and Greenhouse Gas Emissions from New Stationary Sources;
Health, 1379-1380 Electric Utility Generating Units; Withdrawal, 1352-
Advisory Committee to the Director, Health Disparities 1354
Subcommittee, 1379 Standards of Performance for Greenhouse Gas Emissions
Requests for Nominations: from New Stationary Sources:
Advisory Council for the Elimination of Tuberculosis, Electric Utility Generating Units, 1430-1519
1380-1381 NOTICES
CDC/HRSA Advisory Committee on HIV, Viral Hepatitis Meetings:
and STD Prevention and Treatment, 1380 Good Neighbor Environmental Board; Public Advisory
Committee Teleconference, 1376
Commerce Department Product Cancellation Order for Certain Pesticide
See International Trade Administration Registrations, 1376-1378
See National Oceanic and Atmospheric Administration
See National Telecommunications and Information Federal Aviation Administration
Administration
RULES
Airworthiness Directives:
Commodity Futures Trading Commission
Rolls-Royce pic Turbofan Engines, 1315-1316
PROPOSED RULES
PROPOSED RULES
Swaps Between Non-U.S. Swap Dealers and Non-U.S.
Amendment of Class D and Class E Airspace:
Counterparties Involving Personnel or Agents of the
Traverse City, MI, 1341-1342
Non-U.S. Swap Dealers Located in the United States,
Amendment of Class E Airspace:
1347-1349
Holdrege, NE, 1345-1346
Community Living Administration Jefferson City, MO, 1342-1344
Paragould, AR, 1344-1345
NOTICES
Establishment of Class E Airspace:
Agency Information Collection Activities; Proposals,
Warsaw, MO, 1346-1347
Submissions, and Approvals:
Special Conditions:
Funding Opportunity Announcement and Grant
Airbus, A350-900 Series Airplane; Crashworthiness -
Application Template for Discretionary Grant
Emergency Landing Conditions, 1337-1339
Programs, 1381
Airbus, Model A350-900 Series Airplane; Airplane Level
Defense Department of Safety Provided by Composite Fuel Tank
Structure: Post-Crash Fire Survivability, 1334-1336
NOTICES
Agency Information Collection Activities; Proposals, Airbus, Model A350-900 Series Airplane; Flight
Submissions, and Approvals, 1371-1372 Envelope Protection: High Speed Limiting, 1336-
1337
Drug Enforcement Administration Airbus, Model A350-900 Series Airplane; Lateral Trim
NOTICES Function Through Differential Flap Setting, 1339-
Importers of Controlled Substances; Registrations: 1341
Cerilliant Corp., 1389-1390
Manufacturers of Controlled Substances; Applications: Federal Emergency Management Agency
Noramco, Inc., 1390
NOTICES
Siegfried USA, LLC, 1391 Agency Information Collection Activities; Proposals,
Submissions, and Approvals, 1385-1386
Education Department
Major Disasters and Related Determinations:
NOTICES Texas, 1386-1387
Correspondence from January 1 through March 31, 2013,
1372
Federal Energy Regulatory Commission
Energy Department NOTICES
See Federal Energy Regulatory Commission Combined Filings, 1372-1375
Initial Market-Based Rate Filings Including Requests for
Environmental Protection Agency Blanket Section 204 Authorization:
ALLETE Clean Energy, Inc., 1376
PROPOSED RULES
Air Quality State Implementation Plans; Approvals and
Promulgations: Federal Highway Administration
Missouri; Control of Nitrogen Oxide Emissions from NOTICES
Large Stationary Internal Combustion Engines, 1350- Requests for Information:
1352 Every Day Counts Initiative, 1422-1425
IV Federal Register/Vol. 79, No. 5/Wednesday, January 8, 2014/Contents
Federal Transit Administration National Highway Traffic Safety Administration
NOTICES NOTICES
Safety Advisories; Agency Information Collection Activities; Proposals,
Right-of-Way Worker Protection, 1425-1426 Submissions, and Approvals, 1426-1427
Fish and Wildlife Service National Oceanic and Atmospheric Administration
RULES PROPOSED RULES
Endangered and Threatened Wildlife and Plants: Western Pacific Pelagic Fisheries:
Critical Habitat for Chromolaena frustrata (Cape Sable U.S. Territorial Catch and Fishing Effort Limits, 1354-
Thoroughwort), 1552-1590 1361
NOTICES
Low-effect Screening Forms; Low-effect Habitat National Park Service
Conservation Plans; Incidental Take Permit NOTICES
Applications; Availability: Charter Renewals:
Bosque Canyon Ranch, Bosque County, TX, 1387-1388 Denali National Park and Preserve Aircraft Overflights
Advisory Council, 1388
Food and Drug Administration
National Telecommunications and Information
NOTICES
Administration
Meetings:
Anesthesiology and Respiratory Therapy Devices Panel of
the Medical Devices Advisory Committee, 1382-1383 NOTICES
National Environmental Policy Act Implementing
Arthritis Advisory Committee and the Drug Safety and
Procedures and Categorical Exclusions; First Responder
Risk Management Advisory Committee, 1384-1385
Network Authority, 1363-1371
Cardiovascular and Renal Drugs Advisory Committee,
1384
Nuclear Regulatory Commission
Nonprescription Drugs Advisory Committee, 1381-1382
Nonprescription Drugs and Pulmonary-Allergy Drugs NOTICES
Advisory Committees, 1383-1384 License Modification Orderss:
Ameren Missouri, Callaway Plant; Independent Spent
Fuel Storage Installation, 1391-1396
Health and Human Services Department
See Centers for Disease Control and Prevention
Parole Commission
See Community Living Administration
NOTICES
See Food and Drug Administration
Meetings; Sunshine Act, 1391
Homeland Security Department
Securities and Exchange Commission
See Federal Emergency Management Agency
RULES
Removal of Certain References to Credit Ratings under the
Interior Department Investment Company Act, 1316-1330
See Fish and Wildlife Service Removal of Certain References to Credit Ratings under the
See National Park Service Securities Exchange Act, 1522-1550
NOTICES
International Trade Administration Self-Regulatory Organizations; Proposed Rule Changes:
C2 Options Exchange, Inc., 1409-1410
NOTICES
Chicago Board Options Exchange, Inc., 1398-1399, 1412-
Antidumping and Countervailing Duty Administrative
1414
Reviews; Results, Extensions, Amendments, etc.:
Financial Industry Regulatory Authority, Inc., 1402-1405,
Certain Polyester Staple Fiber from the People’s Republic
1414-1420
of China, 1362-1363
International Secmities Exchange, LLC, 1405-1407
Polyethylene Terephthalate Film from Taiwan, 1362
NASDAQ OMX PHLX, LLC, 1399-1401
NASDAQ Stock Market, LLC, 1410-1412
International Trade Commission
NYSE Area, Inc., 1407-1408
NOTICES NYSE MKT, LLC, 1396-1398
Antidumping and Countervailing Duty Investigations;
Topaz Exchange, LLC, 1420-1422
Results, Extensions, Amendments, etc.:
Certain Crystalline Silicon Photovoltaic Products from
Smali Business Administration
China And Taiwan, 1388-1389
RULES
Small Business Innovation Research Program Policy
Judicial Conference of the United States Directive, 1303-1309
NOTICES Small Business Technology Transfer Program Policy
Meetings: Directive, 1309-1314
Advisory Committee on Rules of Bankruptcy Procedvue;
Cancellation, 1389 Transportation Department
See Federal Aviation Administration
Justice Department See Federal Highway Administration
See Drug Enforcement Administration See Federal Transit Administration
See Parole Commission See National Highway Traffic Safety Administration
Federal Register/Vol. 79, No. 5/Wednesday, January 8, 2014/Contents V
Veterans Affairs Department Part IV
RULES Interior Department, Fish and Wildlife Service, 1552-1590
Community Residential Care, 1330-1332
Removal of Penalty for Breaking Appointments, 1332-1333
Reader Aids
Consult the Reader Aids section at the end of this page for
Separate Parts In This Issue phone numbers, online resources, finding aids, reminders,
and notice of recently enacted public laws.
Part II To subscribe to the Federal Register Table of Contents
Environmental Protection Agency, 1430-1519 LISTSERV electronic mailing list, go to http://
listserv.access.gpo.gov and select Online mailing list
Part III archives, FEDREGTOC-L, Join or leave the list (or change
Securities and Exchange Commission, 1522-1550 settings); then follow the instructions.
VI Federal Register/Vol. 79, No. 5/Wednesday, January 8, 2014/Contents
CFR PARTS AFFECTED IN THIS ISSUE
A cumulative list of the parts affected this month can be found in the
Reader Aids section at the end of this issue.
13 CFR
Ch. I (2 documents).1303,
1309
14 CFR
39.1315
Proposed Rules;
25 (4 documents) ...1334, 1336,
1337 1339
71 (5 documents) ...1341, 1342,
1344, 1345, 1346
17 CFR
239 . 1316
240 . 1522
249. ,1522
270. ,1316
274. .1316
Proposed Rules:
Ch. I. 1347
38 CFR
17 (2 documents) ....1330, 1332
40 CFR
Proposed Rules:
52 (2 documents) ....1349, 1350
60 (2 documents) ....1352, 1430
70 .1430
71 .1430
98.1430
50 CFR
17.1552
Proposed Rules:
300. ,1354
665. ,1354
1303
Rules and Regulations
Federal Register
Vol. 79, No. 5
Wednesday, January 8, 2014
This section of the FEDERAL REGISTER implementing the various provisions of benchmark requirements. Comm enters
contains regulatory documents having general the Reauthorization Act at 77 FR 46806. also requested clarification about how
applicability and legal effect, most of which The directive made several key changes agencies determine which firms must
are keyed to and codified in the Code of to the SBIR Program relating to comply with the transition rate and
Federal Regulations, which is published under eligibility, the SBIR award process, SBIR commercialization rate benchmarks. In
50 titles pursuant to 44 U.S.C. 1510.
Program administration, and fraud, response to these comments, SBA
The Code of Federal Regulations is sold by waste and abuse. Although the SBIR revised and reorganized section 4(a)(3)
the Superintendent of Documents. Prices of Policy Directive is intended for use by to clarify several procedural elements
new books are listed in the first FEDERAL the SBIR participating agencies, SBA about the benchmark determinations
REGISTER issue of each week. believed that public input on the and enhance its readability.
directive from all parties involved in the Section 4(a)(3) clarifies the time
program would be invaluable. periods used to calculate awardee rates
SMALL BUSINESS ADMINISTRATION Therefore, SBA sought public comments of transition from Phase I to Phase II and
on the final directive, and stated that it provides two examples of the
13 CFR Chapter I
may amend the directive in response to calculation. While the rate is calculated
RIN 3245-AF84 these comments at a later time. using Phase I awards received in the
most recent 5,10, or 15-year period
Response to Comments
Small Business Innovation Research (agencies choose which period they
Program Policy Directive In response to this request, SBA use), excluding the most recently
received comments on various parts of completed fiscal year; the period used
AGENCY: Small Business Administration. the directive. Several comments when counting the Phase II awards is
ACTION: Notice of amendments to final recommended that SBA strengthen and lagged one year. That is, when
policy directive. clarify the Policy Directive language calculating the number of Phase I
with regard to SBIR data rights and the awards received over a particular time
SUMMARY: The U.S. Small Business
obligation of federal agencies to give a period, the time period evaluated does
Administration (SBA) is amending its
preference in contracting to SBIR not include the most recently completed
Small Business Innovation Research
awardees for follow-on Phase III work. fiscal year; however, when calculating
(SBIR) Program Policy Directive in
SBA agrees that these are areas of the the number of Phase II awards received,
response to public comments SBA
SBIR policy that are vital to the program the time period evaluated does include
received on the final SBIR Policy
and require clarification and the most recently completed fiscal year
Directive, published on August 6, 2012.
improvement. SBA continues to but does not include the first year of the
SBA is also making several minor
evaluate these issues and will address period evaluated for Phase I awards
clarifying changes to ensure that the
them in a subsequent Policy Directive received. The period used to calculate
SBIR participants clearly understand
revision. Phase II awards is lagged one-year
certain program requirements.
SBA also received comments that the because it is unlikely that a new Phase
DATES: These amendments to the SBIR definition of Essentially Equivalent I would transition to a Phase II within
Policy Directive are effective January 8,
Work in section 3(j) of the Policy the same year. SBA also clarified that
2014.
Directive should be changed to be more the Phase II transition benchmark
FOR FURTHER INFORMATION CONTACT: in line with the common usage. The requirement applies only to awardees
Edsel Brown, Assistant Director, Office concern is that the definition in the that have received more than 20 Phase
of Innovation, at [phone] or Policy Directive is more stringent than I awards over the applicable time period
technet@sba .gov. the norm for Government contracting and that the commercialization
SUPPLEMENTARY INFORMATION: On and places a higher burden on the small benchmark applies only to firms that
December 31, 2011, the President signed businesses participating in the SBIR received more than 15 Phase II awards
into law the National Defense program. The commenter, however, did over the applicable time period.
Authorization Act for Fiscal Year 2012 not provide SBA with this commonly Based on additional input from the
(Defense Reauthorization Act), Public used definition and SBA could not find agencies participating in the SBIR
Law 112-81, 125-Stat. 1298. Section one. Therefore, SBA has not modified program, SBA also revised several
5001, Division E of the Defense the definition at this time. However, procedural elements of the Phase II
Reauthorization Act contains the SBIR/ SBA has revised the language in section transition benchmark requirement in
STTR Reauthorization Act of 2011 7(d) of the Directive to further clarify section 4(a)(3) to simplify the process
(Reauthorization Act), which amended fimding of “essentially equivalent for small businesses and reduce the
the Small Business Act and made work.” administrative burden on the agencies.
several amendments to the SBIR Section 4(a)(3) of the Policy Directive, Specifically, in section 4(a)(3)(iii), SBA
Program. The Reauthorization Act “Agency benchmarks for progress changed the start date for the one-year
required SBA to issue amendments to towards commercialization” sets forth ineligibility period for firms that do not
the SBIR Policy Directive and publish the program policy regarding an meet the benchmarks. The date was
the amendments in the Federal Register eligibility requirement for Phase I changed from the date of application
within 180 days of when the awards. SBA received comments submission to June 1st of each year.
Reauthorization Act was passed. requesting clarification of the time SBA made this change for several
On August 6, 2012, SBA published a periods used to calculate the transition reasons; (1) It is a clearly defined period
final SBIR Policy Directive rate and commercialization rate for affected small businesses; (2) to
1304 Federal Register/Vol. 79, No. 5/Wednesday, January 8, 2014/Rules and Regulations
provide sufficient time for agencies to may discourage small businesses from private equity firms. When SBA issued
enter fully verified award data from the applying. SBA notes that it developed its final size regulations on December
prior fiscal year into the TechNet these requirements, including the 27, 2012 (77 FR 76215), it reviewed this
database: and (3) to eliminate the need procedures and requirements for issue and determined that such
for agencies to track multiple periods of certification, in consultation with the businesses may not participate in the
ineligibility. SBA will use its TechNet Council of Inspectors General on STTR program. Additionally, SBA
Data system to generate the list of Integrity and Efficiency. SBA believes added the language previously found at
companies that do not meet agency that these provisions can help reduce section 4(b)(1) regarding successor in
Phase II transition benchmarl^ and fraud, waste and abuse in the program interest firms to section 6(a)(5), because
provide this list to the agencies each and does not think these provisions section 6(a) addresses general program
year on June 1. Finally, SBA also added should be changed at this time. eligibility. Sections 6(a)(2) through
a procedure to notify awardee firms if SBA received comments on the 6(a)(6) were reorganized and
they are on the ineligible list and to Department of Defense’s (DoD’s) renumbered in order to increase
enable firms to provide feedback Commercialization Readiness Program, readability.
directly to SBA if they believe their rate outlined in section 12(b) of the SBIR Section 7 addresses issues related to
was calculated using incomplete award Policy Directive. In response to program funding processes. SBA revised
information. comments that agency efforts to increase the language in paragraph 7(d) to clarify
Some respondents asked if the transitions to Phase III could reduce the that while duplicate or similar
provision in section 4(b)(5) allowing one innovative nature of SBIR awards, SBA proposals may be submitted in response
Sequential Phase II award included has added that when DoD reports on its to apparently similar solicitation topics,
supplementary awards such as Phase Phase II insertion incentives, it should essentially equivalent work may not be
2.5 or Phase Ilb awards in the definition note efforts to ensure that such funded. In addition, SBA revised
of a Phase II award. SBA relocated the incentives do not act to shift the focus paragraph (h)(1), which says that
language at section 4(b)(6) to new of SBIR Phase II awards away from funding agreement modifications should
section 4(b)(8) and added new section relatively high-risk innovation projects. be kept to a minimum, to address only
4(b)(6) to clarify SBA’s policy on SBA also amended the provisions modifications that increase the dollar
supplemental phase II awards. Section relating to the use of SBIR funds for the amount of awards. Paragraph (h)(1) also
4(b)(6) now clarifies how Phase II award DoD Commercialization Readiness referred to modifications of periods of
amounts are calculated when Program. According to section 1615 of performance and scope of work. SBA
supplemental awards are issued. the National Defense Authorization Act clarified section 7(h)(1) to specify that
Furthermore, section 4(b)(6) specifies for Fiscal Year 2013 (NDAA), Public the concern regarding the number of
that all supplementary awards, such as Law 112-239, 126 Stat. 1632, DoD has modifications made to an award
a Phase lib, must be linked to either an the authority to use 1% of its SBIR pertains only to changes that increase
initial Phase II or a sequential Phase II funding for purposes of administering the dollar amount of awards.
award and is added to the amount of the Commercialization Readiness Section 8 of the Directive addresses
that award for the purpose of Program. the terms of agreement under SBIR
determining the size of the Phase II A number of comments asked us to awards. SBA clarified section 8(a) by
award. This means that all change features that, because they are removing language stating that agencies
supplementary Phase II awards required by statute, we were not able to should discourage SBCs from
including options, enhancements, modify. submitting proprietary information and
administrative supplements, and Phase revised section 8(d) to clarify that the
Ilb-type programs are considered as part Miscellaneous Changes continued use of agency-owned
of the initial Phase II or sequential The inadvertent omission of the term property applies to property acquired by
Phase II from which they derive and are “extramural” before “R/R&D budgets” the awardee under the contract.
therefore subject to the Phase II per- was corrected in section 2(b), which In response to concerns regarding the
award guideline amount of $1 million identifies the source of funds for the cost and accountability of the
and limit of $1.5 million. program. continuing study by the National
SBA repeated the language in section Section 3 contains definitions of Academy of Sciences, SBA modified
9(d)(2) in new section 4(b)(7), which terms that appear throughout the Policy section 9(h) to clarify that the agreement
explains how a Phase I awardee may Directive. SBA made an editorial required between the agencies and the
receive an award from one agency and revision to the definition of “Awardee” National Academy of Sciences must be
also may receive a subsequent Phase II in section 3(e). SBA revised the word made in consultation with the SBA and
award from another agency. SBA also “receiving” to “that receives.” must comprehensively address the
clarified in section 4(b)(7) that the same Section 4(b)(1), which identifies the scope and content of the work to be
process applies to a second, sequential objective and nature of a Phase II award, performed.
Phase II award that follows an initial includes a statement regarding the Section 10(h) explains the process for
Phase II award from a different agency. eligibility of successor in interest firms agencies to submit their SBIR program
This policy is relevant to interagency for SBIR awards. Because this statement annual reports to SBA. Paragraph (h)(4)
actions, which are found at section 9 of pertains more generally to eligibility for contains a list of information that must
the Policy Directive, and also to Phase all SBIR awards, it was removed from be included in each agency’s annual
II awards, which is found at section 4 section 4(b)(1) and added to section 6(a) report. SBA clarified section 10(h)(4)(xi)
of the Policy Directive. which addresses program eligibility to note that agencies must report all
SBA received comments concerning requirements. instances in which an agency pursued
section 9 of the Policy Directive, which In Section 6, SBA removed the R/R&D, services, production, or any
address measures to prevent fraud, reference to the STTR program combination thereof of a technology
waste and abuse in the program. The regarding the option to make awards to developed under an SBIR award with an
respondents commented that the small businesses that are majority entity other than that SBIR awardee.
administrative requirements contained owned by multiple venture capital Section 10(j) contains information on
in section 9 may be too stringent and operating companies, hedge funds or the other reporting requirements for
Federal Register/Vol. 79, No. 5/Wednesday, January 8, 2014/Rules and Regulations 1305
SBIR participating agencies. Section requires the Administrator of the U.S. commercialization—the Phase II
10(j)(2) discusses a system that will list Small Business Administration (SBA) to Transition Rate Benchmark and the
any individual or small business issue an SBIR Program Policy Directive Commercialization Rate Benchmark.
concern that received an SBIR award for the general conduct of the SBIR (A) The Phase 11 Transition Rate
and that has been convicted of a fraud- Program. Benchmark sets the minimum required
related crime involving SBIR funds or 3. Procurement Regulations. It is number of Phase II awards the applicant
found civilly liable for a fraud-related recognized that the Federal Acquisition must have received for a given number
violation involving SBIR funds. SBA Regulations and agency supplemental of Phase I awards received during the
clarified this section to note that SBA regulations may need to be modified to specified period. This Transition Rate
will list those individuals and small conform to the requirements of the final Benchmark applies only to Phase I
business concerns of which SBA has Policy Directive. SBA’s Administrator or applicants that have received more than
been made aware. designee must review and concur with 20 Phase I awards over the time period
Section 12(b) addresses the any regulatory provisions that pertain to used by the agency for the benchmark
Commercialization Readiness Program areas of SBA responsibility. SBA’s determination.
at the Department of Defense (DoD). Office of Innovation coordinates such (B) The agency Commercialization
SBA clarified the source of funding for regulatory actions. Rate Benchmark sets the minimum
this program by removing the sentence 4. Personnel Concerned. This Policy Phase III commercialization results that
in paragraph (b)(4)(ii) stating that funds Directive serves as guidance for all a Phase 1 applicant must have realized
for the program would come from the federal government personnel who are from its prior Phase II awards in order
3% administrative set-aside, and by involved in the administration of the to be eligible to receive a new Phase I
clarifying that the funds shall not be SBIR Program, issuance and award from that agency. This
subject to the limitations on the use of management of Fimding Agreements or benchmark requirement applies only to
funds in section 9(eK3). In addition, in contracts pursuant to the SBIR Program, Phase 1 applicants that have received
section 12(b)(6Kiii)(C), SBA clarified and the establishment of goals for small more than 15 Phase II awards over the
that the DoD must include, along with business concerns in research or time period used by the agency for the
its description of the incentives used for research and development acquisition benchmark determination.
(ii) Consequence. If an awardee fails
this program, information on measures or grants.
taken to ensure that such incentives do 5. Originator. SBA’s Office of to meet either of the benchmarks, that
not shift the focus of the SBIR Phase II Innovation and Technology. awardee is not eligible for an SBIR
awards away from the relatively high- 6. Date. The policy directive is Phase I award (and any Phase II award
risk innovation projects they are effective on January 8, 2014. issued pursuant to paragraph (b)(l)(ii)
below) for a period of one year from the
intended to promote. Authorized by: time of the determination.
Section 12(b)(5) addresses DoD’s
Dated: December 26, 2013. (iii) Timing of the determination and
Commercialization Readiness Program.
Pravina Raghavan, consequence period. The SBIR awardee
The Policy Directive states that DoD
Deputy Associate Administrator, Office of Phase II transition rates and
may establish transition goals and
Investment and Innovation Small Business commercialization rates are calculated
reporting requirements for awards less
Administration. using the data in SBA’s TechNet
than $1,000,000,000. The amount listed
Dated: December 26, 2013. database. For the purpose of these
in section 12(b)(5) contained a
Jeanne Hulit, benchmark requirements, awardee firms
typographical error, which was
corrected to $100,000,000. Acting Administrator. are assessed once a year, on Jirne 1st,
Appendix I provides instructions for SBA amends the SBIR Policy using their prior SBIR and STTR awards
the preparation of program solicitations. Directive as follows: across all agencies. SBA makes this
In Appendix 1, SBA revised the 1. Amend section 2(b) by adding the tabulation of awardee transition rates
certification check box regarding term “extramural” before “R/R&D and commercialization rates available to
notification if work is subsequently budgets” each place it appears. the agencies. Each SBIR agency uses this
2. Revise section 3(e) to read as tabulation to determine which
funded by another Federal agency to
follows: companies do not meet that agency’s
clarify that it pertains to work funded
(e) Awardee. The organizational entity benchmark rates and are therefore
and completed under the award rather
that receives an SBIR Phase I, Phase II, ineligible to receive new Phase 1 awards
than to the work proposed for the
or Phase III award. from that agency during the one-year
award.
The updated SBIR Policy Directive, 3. Revise section 4(a)(3) to read as period beginning on June 1st and ending
incorporating all changes noted here, follows: on May 31st. SBA notifies these
will be posted on www.sbir.gov. (3) Agency benchmarks for progress ineligible firms of the determination and
towards commercialization. Each the one year restriction on Phase I
Notice of Amendments to Final Policy agency must determine whether an awards. Agencies must notify SBA of
Directive; Small Business Innovation applicant for a Phase I award that has any applications denied because of the
Research Program won multiple prior SBIR awards meets failure to meet the benchmarks.
To: The Small Business Innovation the agency’s benchmark requirements (iv) Phase II Transition Rate
Research Program Managers. for progress towards commercialization Benchmark. Each agency must establish
Subject: Amendments to SBIR Policy before making a new Phase I award to an SBA-approved Phase II Transition
Directive Published on August 6, 2012 that applicant. For the purpose of this Rate Benchmark and applicable time
at 77 FR 46806. requirement, applicants are assessed period. The benchmark rates and time
1. Purpose. The purpose of this notice using their prior Phase I and Phase II periods are posted at www.sbir.gov.
is to inform SBIR agencies of SBIR and STTR awards across all SBIR Agencies must seek approval for any
amendments made to the recently agencies. subsequent changes from SBA.
published SBIR Policy Directive. (i) Agencies must apply two (A) The agency Phase 11 Transition
2. Authority. Section 9(j)(3) of the benchmark rates addressing an Rate Benchmark establishes the number
Small Business Act (15 U.S.C. 638(j)) applicant’s progress towards of Phase II awards a small business
1306 Federal Register/Vol. 79, No. 5/Wednesday, January 8, 2014/Rules and Regulations
concern must have received for a given SBA updates and corrects the database and requirements on www.sbir.gov. The
number of Phase I awards received over informs the firm that it is indeed eligible to benchmarks and time periods become
the past 5, 10 or 15 fiscal years, receive SBIR Phase I awards. effective when SBA posts the approved
excluding the most recently completed [BJ An SBC that has received more measures on www.sbir.gov. Agencies
fiscal year. Each agency selects both the than 20 Phase I awards in the relevant must submit any changes to the
rate to be applied and the length of time time period can view its Phase II benchmarks or time periods to SBA for
that the agency will use to evaluate transition rate on the Company Registry prior approval.
whether a small business concern has page at SBIR.gov. Generally, the award (vii) SBA maintains a system that
met the Transition Rate Benchmark. The data used to calculate an SBC’s records all Phase I, Phase II and
period over which Phase 1 awards are transition rate will be complete by the Government Phase III awards, and other
counted excludes the most recently end of March each year. An SBC may commercialization information; and
completed fiscal year. The time period view its SBIR/STTR award information calculates the Phase II transition rates
over which Phase II awards are counted on the Company Registry at any time. If for all Phase I awardees and the
includes the most recently completed an awardee believes its Phase II commercialization rates for all Phase II
fiscal year and excludes the first year of transition rate is calculated using awardees.
the time period evaluated for Phase I incomplete award information, the (viiij If an applicant fails to meet an
awards. awardee may dispute the rate using the agency’s benchmark, its name will
Example: On August 1, 2014, an SBC link provided on the Company Registry, appear on the list of companies made
submits an application to an agency using a provide the additional award available to the agencies on June 1 of
Transition Rate Benchmark of 0.25 and a 5- information, and request a each year. An agency may not make a
year time period. The June 1, 2014 TechNet reconsideration of its transition rate. Phase I award to an applicant that does
Company Registry tabulation shows that the Requests for reconsideration of a firm’s not meet the agency’s benchmark.
SBC received 24 Phase I awards dining transition rate received by SBA from (ixj If an awardee believes its
FY08-FY12. Since this SBC has received 20 April 1st through April 30th of each determination was made in error, it may
or more Phase I awards during the 5-year year will be considered for the June 1st provide SBA with the pertinent award
pTerrainosdi,t itohne RSaBtCe Bise rnecqhumiraerdk .t oT hmee SetB tCh e tra(nCs)i tAiogne nrcaitees a mssuessts mseetn tth. e Phase II information and request a reassessment.
received 8 Phase II awards in FY09-FY13 To do so, awardees may use the link on
Transition Rate Benchmark as
and therefore has a 5-year Phase II transition the Company Registry at www.sbir.gov.
appropriate for their programs and
rate of 8/24 or 0.33 (# of Phase II awards in 4. Amend section 4(b) by revising
FY09-FY13/# of Phase I awards in FY08- industry sectors. When setting the paragraph (b)(1) by moving language to
FY12). Because the SBC meets or exceeds the Transition Rate Benchmark, agencies 6(a)(4), renumbering paragraph (b)(6) as
agency Transition Rate Benchmark, it is should consider that Phase I is designed
(b)(8), and inserting paragraphs (b)(6)
considered for award through the usual and intended to explore high-risk, early-
and (b)(7) to read as follows:
proposal evaluation process. stage research ideas and, as a result, not
Example 2: On September 1, 2014, an SBC all Phase I awards are expected to result (b) Phase II.
is interested in applying for a Phase 1 award, (1) The object of Phase II is to
in a Phase II award.
knows it has received a number of Phase I continue the R/R&D effort from the
(vj Commercialization Rate
awards in recent years, but is unsure if it is completed Phase I. Unless an exception
Benchmark. By October 1, 2013, each
meeting the required Phase II transition rate. set forth in paragraphs (i) or (ii) below
The company official logs onto the Company agency will establish an SBA-approved
applies, only SBIR Phase I awardees are
Registry at SBIR.gov to check its status and Commercialization Rate Benchmark that
eligible to participate in Phase II.
sees a flag saying it did not meet the required establishes the level of Phase III
benchmark transition rate of 0.25 on June 1, commercialization results an SBC must (i) A Federal agency may issue an
2014 and is therefore ineligible for a Phase have received from work it performed SBIR Phase II award to an STTR Phase
I award through May 31, 2015. The company under prior Phase II awards, over the I awardee to further develop the work
checks its records and sees that it received performed under the STTR Phase I
prior 5,10 or 15 fiscal years, excluding
30 Phase I awards during FY08-FY12 and 6 award. The agency must base its
the most recently completed two fiscal
Phase II awards during FY09-FY13. Its decision upon the results of work
transition rate is therefore 6/30 or 0.20 which years. Agencies may define this
performed under the Phase I award and
is under the required rate of 0.25. The SBC benchmark:
does not apply for a new Phase I award (A) in financial terms, such as by the scientific and technical merit, and
through May 31, 2015 because it knows its using the ratio of the dollar value of commercial potential of the Phase II
application would be rejected. revenues and additional investment proposal. The STTR Phase I awardee
Example 3: On September 1, 2014, an SBC resulting from prior Phase II awards must meet the eligibility and program
official interested in applying for a Phase I relative to the dollar value of the Phase requirements of the SBIR Program in
award logs onto the Company Registry at II awards received over the time period; order to receive the SBIR Phase II
SBIR.gov and sees the flag saying it did not (B) in terms of the share of Phase II award.
meet the required benchmark transition rate
awards received over the time period (ii) During fiscal years (FY) 2012
of 0.25 on June 1, 2014 and is not eligible for
a Phase I award through May 31, 2015. that have resulted in the introduction of through 2017, the National Institutes of
However, when the company checks its own a product to market; or Health (NIH), Department of Defense
records, it sees that it received 8 Phase II (C) by other means such as using a (DoD) and the Department of Education
awards during FY09-FY13, not the 6 awards commercialization scoring system that (DoEd) may issue a Phase II award to a
showing on the Web site. Its transition rate rates awardees on their past small business concern that did not
is therefore 8/30 or 0.26 which is above the commercialization success. receive a Phase I award for that R/R&D.
required rate of 0.25. The company official (vi) Agencies must submit their Prior to such an award, the heads of
therefore goes to SBIR.gov, clicks on the Transition Rate Benchmark, those agencies, or designees, must issue
“Dispute Transition Rate” button, and enters
Commercialization Rate Benchmark, a written determination that the small
the information about the discrepancy. SBA
and time periods to SBA for approval. business has demonstrated the scientific
uses the information provided by the
company and, working with the relevant SBA will publish the benchmarks and and technical merit and feasibility of the
agencies, identifies that two Phase II awards time periods, seek public comment, and ideas that appear to have commercial
from FY09 had been inadvertently omitted. maintain a table of the current potential. The determination must be