1.0 Congratulations to our JUNE phase 0 and Phase 00 award winners

Babble Tree LLC, Jackson
Principal Investigator: Margaret Japel
Email: mac@babbletree.com
Phase 0 Title: Wyoming ELL Needs; Data & Curricula Evaluation Study
Phase I Target: USDA

Kennon Products, Inc., Sheridan
Principal Investigator: Mark Weitz
Email: mark@kennoncovers.com
Phase 0 Title: Light Weight, Multi-fuel, Hybrid Marine Power Plants
Phase I Target: DoD (Navy)

Pronghorn Scientific LLC, Casper
Principal Investigator: Charlotte Gruner
Email: cmgruner@vcn.com
Phase 0 Title: Software Tools for Visualization for Electrophysiology Data
Phase I Target: NIH

Alces Technology, Jackson
Principal Investigator: Matt Leone/David Bloom
email: dbloom@alcestech.com
Phase 00 Title: Compact Light Engine (LCE) for Pico Projection
Phase II Target: NSF

Dixon Ladd LLC, Jackson
Principal Investigator: Ted Ladd
email: ted@dixonladd.com
Phase 00 Title: Optimizing Hybrid Renewable Energy Resources for Patterns of Demand
Phase II Target: NSF

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3.0  House Passes SBIR Reauthorization BILL

YESTERDAY, JULY 8, THE HOUSE PASSED H.R. 2965, THE SBIR REAUTHORIZATION BILL, BY A VOTE OF 386-41. THE BILL IS A SHAMEFUL EXAMPLE OF A COMPLETE SELL-OUT OF START-UP SMALL BUSINESSES TO DEEP POCKETS SPECIAL INTERESTS. READ RICK SHINDELL’S COMMENTS, BELOW:

“The House just passed H.R. 2965 " Enhancing Small Business Research and Innovation Act of 2009". Any opportunity for discussion or vote on compromise amendments were summarily eliminated by the House Committee on Rules. The committee led by chairwoman Louise Slaughter (D-NY), under a "closed rule" allowed only 5 of 34 amendments to be ruled "in order" and brought to the floor. The elimination of debate or voting on amendments addressing compromise on the VC issue was non-partisan. The big surprise was the committee's "out of order" ruling of the compromise amendment from Ed Markey (D-MA), Niki Tsongas (D-MA), Peter Welch (D-VT) and Paul Hodes (D-NH). Additional "out of order" rulings included those by Phil Gingrey (R-GA) who offered 3 amendments dealing with VC compromise, and 1 by Chris Lee (R-NY).

The total "shut out" of any issues not directly allied with Nydia Velazquez's view of SBIR, has me envisioning BIO and NVCA celebrating by singing a parody to Paul McCartney's song "Money Can't Buy Me Love, But it Can Buy me the House" or at least a significant portion thereof.

THE FAT LADY HAS NOT YET BEGUN TO SING
The bill will now go over to the Senate to be evaluated. Ultimately there will be a conference committee of the House and Senate that will either hammer out a compromise bill, or perhaps not reach an agreement, whereby the decision for another Continuing Resolution (CR) will be considered, or worst case scenario, a lapse in the SBIR program (STTR is good through September 30, 2009). It all comes to a head on July 31,2009.

The overwhelming vote of 386 / 41 in favor of passing H.R. 2965 is a false indicator of majority support for all issues in the bill. We have learned from "informed sources" on the hill that the Markey amendment putting a ceiling on VC (similar to the Senate), and setting award sizes to $150K phase I, and $1M phase II, had strong support and would have likely passed in the House. This would have been a major embarrassment to Day. excuse me, I meant Velazquez, and perhaps the House leadership.

I think the House believes there will be a successful meeting between House and Senate in the SBIR bill's conference, as evidenced by representative Vernon Ehlers' plea to potential conferees not to allow an increase in the SBIR/STTR set aside as contained in the Senate's bill. That will surely be a compromise issue.

THE 5 AMENDMENTS THAT WERE ACCEPTED
There was no debate, only "kumbaya" on the 5 amendments the Rules Committee approved. All were fully acceptable to both sides of the aisle. The full text is not yet available, but here are the basic outlines:

1. Velázquez (manager's amendment) Would:
(1) authorize the Small Business Administration to establish a program to provide matching grants to minority serving educational institutions to develop programs that encourage minority participation in SBIR/STTR programs;
(2) give priority to applications from companies located in areas that have lost a major source of employment;
(3) increase the maximum allowable award under Phase I of the SBIR program with respect to applications by veteran owned and controlled small businesses, increase the maximum allowable award under Phase II of the SBIR program with respect to applications by veteran owned and controlled small businesses, and permit small business concerns owned and controlled by veterans to bypass Phase I and apply directly for Phase II awards;
(4) add language to require agencies to report specific reasons why those agency SBIR/STTR goals were or were not achieved,
(5) provide special consideration in the awarding of SBIR funds to projects which address renewable energy technologies;
(6) require that veterans be given priority when applying for SBIR and STTR awards;
(7) require the Department of Agriculture and the Environmental Protection Agency to develop a SBIR solicitation that requests research proposals for improving the efficiency of water delivery systems and usage patterns in the US and its territories;
(8) expand outreach and support activities to Native American-owned small businesses;
(9) prioritize SBIR outreach and support activities for areas with high unemployment, and give preference to SBIR and STTR award applications submitted by small businesses located in areas with high unemployment; and
(10) make technical corrections to the legislation.

2. Brown-Waite (FL) - Would require GAO to examine and report to Congress on the effect that the venture capital ownership restrictions in Section 102 (venture capital operating companies investment in small businesses) have on eligibility and participation under this act.

3. Kosmas (FL) - Would require commercialization programs established by agencies with space shuttle related activities to include efforts to help small businesses affected by the termination of the space shuttle program commercialize technologies through SBIR.

4. Reichert (WA)/ Smith, Adam (WA) - Would give preference to organizations that are located in underrepresented states and regions, or are women-, service-disabled veterans- or minority-owned when awarding grants for Small Business Administration (SBA) outreach efforts authorized under Title III (rural development and outreach).

5. Paulsen (MN) - Would add medical technology to the list of topics that deserve special consideration as SBIR research topics.”

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