This part caps how many bids one small firm can send an agency in a year. The head of the agency program office sets the cap. The cap must be the same for every firm. It can be lifted for a topic that is urgent, but not for more than one topic in twenty. Congress must be told the cap and told about each lift.
The document says “shall”Who acts: Directors of agency SBIR or STTR program officesHow: statuteSec. 4 in the PDF
What the document says
“the Director of the SBIR or STTR program office of each Federal agency shall, pursuant to authority that may not be delegated, set equally for all small business concerns a limit on the maximum number of proposals that a small business concern may submit in response to Phase I solicitations and Phase II solicitations under subsection (cc), published by that Federal agency, including all components of that Federal agency, in a single fiscal year.”
Paragraph (1) of the new subsection (aaa) requires a limit, beginning with fiscal year 2027 and each year after it. The Director of the agency's SBIR or STTR program office sets it under authority that may not be delegated. The limit is set equally for all small business concerns. It caps how many proposals a firm may submit in one fiscal year in response to the agency's Phase I solicitations and its Phase II solicitations under subsection (cc), counting all components of that agency.
What the document actually says
“the Director of the SBIR or STTR program office of each Federal agency shall, pursuant to authority that may not be delegated, set equally for all small business concerns a limit on the maximum number of proposals that a small business concern may submit in response to Phase I solicitations and Phase II solicitations under subsection (cc), published by that Federal agency, including all components of that Federal agency, in a single fiscal year.”
That sentence, in plain words
The head of the program office must set a cap. The cap is on how many bids one firm can send in a year. It counts bids to every part of the agency. The cap must be the same for all firms.
What this is about
This starts with the budget year 2027. Only the office head can set it. That job cannot be handed to anyone else.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Directors of agency SBIR or STTR program officesHow: statuteSec. 4 in the PDF
What the document says
“the Director of the SBIR or STTR program office of each Federal agency shall use 1 of the following methods: ``(A) A limit for any small business concern on a fiscal year basis. ``(B) A limit for any small business concern on a solicitation basis. ``(C) A limit for any small business concern on a topic basis.”
The second sentence of paragraph (1) narrows how the limit may be set. The Director uses one of three methods: a limit on a fiscal year basis, a limit on a solicitation basis, or a limit on a topic basis. The paragraph does not rank the three or say when each is appropriate.
What the document actually says
“the Director of the SBIR or STTR program office of each Federal agency shall use 1 of the following methods: ``(A) A limit for any small business concern on a fiscal year basis. ``(B) A limit for any small business concern on a solicitation basis. ``(C) A limit for any small business concern on a topic basis.”
That sentence, in plain words
There are three ways to set the cap. One counts bids across the whole year. One counts bids per call for bids. One counts bids per topic.
What this is about
The office head picks one of the three. The law does not say which is better. It does not say when to use each one.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “can”Who acts: Directors of agency SBIR or STTR program officesHow: statuteSec. 4 in the PDF
What the document says
“On a topic by topic basis, the Director of the SBIR or STTR program office of each Federal agency may grant a waiver of the proposal limit under paragraph (1) at the time of a solicitation announcement for a specific topic for the SBIR or STTR program of the Federal agency”
Subparagraph (A) of paragraph (2) allows a waiver of the proposal limit. It is granted topic by topic, at the time of the solicitation announcement for a specific topic, and only if the topic is time sensitive and urgent to the mission of the Federal agency.
What the document actually says
“On a topic by topic basis, the Director of the SBIR or STTR program office of each Federal agency may grant a waiver of the proposal limit under paragraph (1) at the time of a solicitation announcement for a specific topic for the SBIR or STTR program of the Federal agency”
That sentence, in plain words
The office head can lift the cap for one topic. It has to be done when the call for bids goes out.
What this is about
The lift works for a single topic at a time. The topic has to be urgent to the work of the agency. It also has to be one that cannot wait.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Directors of agency SBIR or STTR program officesHow: statuteSec. 4 in the PDF
What the document says
“the Director of the SBIR or STTR program office of the Federal agency shall provide a written justification to the Administrator, and to the Undersecretary described in subparagraph (C), for why the use of the waiver authority is imperative”
Subparagraph (B) requires a written justification for each topic for which a waiver is sought. It goes to the Administrator and to the Undersecretary described in subparagraph (C). It states why the use of the waiver authority is imperative for the agency's mission, and the nature of the immediate and critical need that the Director reasonably believes cannot be met by firms that have not reached the proposal limit.
What the document actually says
“the Director of the SBIR or STTR program office of the Federal agency shall provide a written justification to the Administrator, and to the Undersecretary described in subparagraph (C), for why the use of the waiver authority is imperative”
That sentence, in plain words
The office head must put the reasons in writing. The writing goes to two people above them.
What this is about
The note has to say why the lift cannot be skipped. It has to say what the need is. It also has to say why firms under the cap cannot meet it.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “requires”Who acts: the Undersecretary overseeing the program, the AdministratorHow: statuteSec. 4 in the PDF
What the document says
“The Undersecretary overseeing the SBIR or STTR program at a Federal agency and the Administrator are required to approve or disapprove a waiver and written justification not later than 15 days after the date on which the Undersecretary receives from the Director the waiver request described in subparagraph (A) and the written justification described in subparagraph (B).”
Subparagraph (C) sets a decision window. The Undersecretary overseeing the agency's SBIR or STTR program, and the Administrator, approve or disapprove the waiver and its written justification no later than 15 days after the Undersecretary receives the request and the justification from the Director.
What the document actually says
“The Undersecretary overseeing the SBIR or STTR program at a Federal agency and the Administrator are required to approve or disapprove a waiver and written justification not later than 15 days after the date on which the Undersecretary receives from the Director the waiver request described in subparagraph (A) and the written justification described in subparagraph (B).”
That sentence, in plain words
Two people decide whether to allow the lift. They have 15 days to say yes or no. The clock starts when the request comes in.
What this is about
A call for bids has its own dates. A slow answer would make the lift useless. So the law puts a clock on it.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “may not”Who acts: Directors of agency SBIR or STTR program offices, the AdministratorHow: statuteSec. 4 in the PDF
What the document says
“The authority to grant or approve a waiver under subparagraph (A) or (C), respectively, may not be delegated.”
Subparagraph (D) bars delegation. The authority to grant a waiver under subparagraph (A), and the authority to approve one under subparagraph (C), stay with the officials those subparagraphs name.
What the document actually says
“The authority to grant or approve a waiver under subparagraph (A) or (C), respectively, may not be delegated.”
That sentence, in plain words
The power to allow a lift cannot be handed down. The named officials must use it themselves.
What this is about
The same bar already covers setting the cap. So both steps stay with the top of the office.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall not”Who acts: Federal agenciesHow: statuteSec. 4 in the PDF
What the document says
“If the Federal agency grants a waiver under subparagraph (A) with respect to a topic for the SBIR or STTR program of a Federal agency, paragraph (1) shall not prohibit any small business concern from submitting an SBIR or STTR proposal to that Federal agency under such topic.”
Subparagraph (E) states what a waiver does. Where an agency grants one for a topic, the proposal limit in paragraph (1) does not prohibit any small business concern from submitting a proposal to that agency under that topic. The waiver runs to every firm, not to the one that asked.
What the document actually says
“If the Federal agency grants a waiver under subparagraph (A) with respect to a topic for the SBIR or STTR program of a Federal agency, paragraph (1) shall not prohibit any small business concern from submitting an SBIR or STTR proposal to that Federal agency under such topic.”
That sentence, in plain words
When a topic gets a lift, the cap stops applying to it. Any firm can send in a bid on that topic.
What this is about
The lift is not for one firm. It is for the topic. So every firm gets the same benefit from it.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: participating Federal agenciesHow: statuteSec. 4 in the PDF
What the document says
“Participating agencies shall maintain information on topics to which waivers of the proposal limit under this paragraph are granted, including the written justifications for those waivers.”
Subparagraph (F) requires a record. Participating agencies maintain information on the topics for which a waiver of the proposal limit was granted, including the written justifications for those waivers.
What the document actually says
“Participating agencies shall maintain information on topics to which waivers of the proposal limit under this paragraph are granted, including the written justifications for those waivers.”
That sentence, in plain words
An agency must keep a file on each topic that got a lift. The file holds the written reasons too.
What this is about
The record is what makes the lifts countable. The next rule caps how many there can be.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “may not”Who acts: Federal agenciesHow: statuteSec. 4 in the PDF
What the document says
“A Federal agency may not grant a waiver under this paragraph with respect to more than 5 percent of the topics of the SBIR and STTR programs of the Federal agency in any fiscal year.”
Subparagraph (G) caps the waivers. In any fiscal year an agency may not grant a waiver for more than 5 percent of the topics of its SBIR and STTR programs.
What the document actually says
“A Federal agency may not grant a waiver under this paragraph with respect to more than 5 percent of the topics of the SBIR and STTR programs of the Federal agency in any fiscal year.”
That sentence, in plain words
An agency can lift the cap for only a few topics. The most is one topic in twenty each year.
What this is about
The count covers both programs at the agency. Without this cap the lifts could undo the limit.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: heads of Federal agenciesHow: statuteSec. 4 in the PDF
What the document says
“the head of that Federal agency shall provide to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives the methodology for setting or changing that limit”
Subparagraph (A) of paragraph (3) sets a report. No later than 30 days after the Director sets or changes a limit, the head of the agency provides three committees with the methodology used, the considerations made in setting or changing the limit, and how many small business concerns are affected by it based on historical data. The committees are the Senate Committee on Small Business and Entrepreneurship and the House Committees on Small Business and on Science, Space, and Technology.
What the document actually says
“the head of that Federal agency shall provide to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives the methodology for setting or changing that limit”
That sentence, in plain words
The head of the agency must write to three groups in Congress. The letter says how the cap was worked out.
What this is about
This is due 30 days after the cap is set or changed. The letter must also give the reasons. And it must say how many firms the cap will hit, based on past years.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Directors of agency SBIR or STTR program officesHow: statuteSec. 4 in the PDF
What the document says
“Not later than 30 days after the date on which the Director of the SBIR or STTR program office of a Federal agency grants a waiver under paragraph (2), the Director shall provide to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives a written notification regarding the granting of that waiver”
Subparagraph (B) of paragraph (3) requires a separate notice for each waiver. No later than 30 days after granting one, the Director sends the same three committees a written notification about it, which includes the information described in subparagraph (2)(F) for that waiver.
What the document actually says
“Not later than 30 days after the date on which the Director of the SBIR or STTR program office of a Federal agency grants a waiver under paragraph (2), the Director shall provide to the Committee on Small Business and Entrepreneurship of the Senate and the Committee on Small Business and the Committee on Science, Space, and Technology of the House of Representatives a written notification regarding the granting of that waiver”
That sentence, in plain words
Each lift must be reported within 30 days. The office head writes to the same three groups in Congress.
What this is about
The note carries what the agency had to keep on file. That means the topic and the written reasons.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Directors of agency SBIR or STTR program officesHow: statuteSec. 4 in the PDF
What the document says
“The Director shall establish the proposal limit under paragraph (1) not later than 90 days before the start of fiscal year 2027 and each fiscal year thereafter.”
Paragraph (4) sets when the limit is due. The Director establishes it no later than 90 days before the start of fiscal year 2027 and of each fiscal year after it.
What the document actually says
“The Director shall establish the proposal limit under paragraph (1) not later than 90 days before the start of fiscal year 2027 and each fiscal year thereafter.”
That sentence, in plain words
The cap must be set before the year starts. It is due 90 days ahead of the start.
What this is about
A firm plans its bids ahead of time. Setting the cap early means firms know it in advance.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Small Business Innovation and Economic Security Act, Public Law 119-83, sec. 4, 140 Stat. 762 (2026). https://www.govinfo.gov/content/pkg/PLAW-119publ83/html/PLAW-119publ83.htm
This page
“Reducing Administrative Burden,” Small Business Innovation and Economic Security Act, section 4. Read the Mandate, https://readthemandate.org/small-business-innovation-economic-security-act/section-4/ (retrieved August 26, 2026).
Cite the document when the claim is about what the document says. Cite this page when the indexing, the wording or the record of what has happened is what is being relied on.
What This Page Covers, and What It Leaves Out
Each distinct thing the new subsection requires: the duty to set a proposal limit, the three methods for setting it, the waiver and its written justification, the 15 day decision window, the bar on delegating, the effect of a waiver, the record duty, the 5 percent cap on waivers, the two reports to Congress, and the deadline for setting the limit.
Nothing in the section is left out. The section adds a new subsection whole rather than by striking and inserting, so there are no mechanical amendments to record.
The section works by adding a new subsection (aaa) at the end of section 9 of the Small Business Act (15 U.S.C. 638). That statute is not indexed here. The new subsection refers to Phase II solicitations under subsection (cc) of that statute and to the Administrator, and neither is described here beyond what this Act itself says.
