CLARIFYING THE DEFINITION OF “PHASE III”.

SEC. 5125. CLARIFYING THE DEFINITION OF “PHASE III”. (a) Phase III Awards.—Section 9(e) of the Small Business Act (15 U.S.C. 638(e)), as amended by this title, is further amended— (1) in paragraph (4)(C), in the matter preceding clause (i), by inserting “for work that derives from, extends, or completes efforts made under prior funding agreements under the SBIR program” after “phase”; (2) in paragraph (6)(C), in the matter preceding clause (i), by inserting “for work that derives from, extends, or completes efforts made under prior funding agreements under the STTR program” after “phase”; (3) in paragraph (8), by striking “and” at the end; (4) in paragraph (9), by striking the period at the end and inserting a semicolon; and (5) by adding at the end the following: “(10) the term ‘commercialization’ means— “(A) the process of developing products, processes, technologies, or services; and “(B) the production and delivery (whether by the originating party or by others) of products, processes, technologies, or services for sale to or use by the Federal Government or commercial markets;” . (b) Technical and Conforming Amendments.—Section 9 of the Small Business Act (15 U.S.C. 638), as amended by this title, is further amended— (1) in subsection (e)— (A) in paragraph (4)(C)(ii), by striking “scientific review criteria” and inserting “merit-based selection procedures”; (B) in paragraph (9), by striking “the second or the third phase” and inserting “Phase II or Phase III”; and (C) by adding at the end the following: “(11) the term ‘Phase I’ means— “(A) with respect to the SBIR program, the first phase described in paragraph (4)(A); and “(B) with respect to the STTR program, the first phase described in paragraph (6)(A); “(12) the term ‘Phase II’ means— “(A) with respect to the SBIR program, the second phase described in paragraph (4)(B); and “(B) with respect to the STTR program, the second phase described in paragraph (6)(B); and “(13) the term ‘Phase III’ means— “(A) with respect to the SBIR program, the third phase described in paragraph (4)(C); and “(B) with respect to the STTR program, the third phase described in paragraph (6)(C).” ; (2) in subsection (j)— (A) in paragraph (1)(B), by striking “phase two” and inserting “Phase II”; (B) in paragraph (2)— (i) in subparagraph (B)— (I) by striking “the third phase” each place it appears and inserting “Phase III”; and (II) by striking “the second phase” and inserting “Phase II”; (ii) in subparagraph (D)— (I) by striking “the first phase” and inserting “Phase I”; and (II) by striking “the second phase” and inserting “Phase II”; (iii) in subparagraph (F), by striking “the third phase” and inserting “Phase III”; (iv) in subparagraph (G)— (I) by striking “the first phase” and inserting “Phase I”; and (II) by striking “the second phase” and inserting “Phase II”; and (v) in subparagraph (H)— (I) by striking “the first phase” and inserting “Phase I”; (II) by striking “second phase” each place it appears and inserting “Phase II”; and (III) by striking “third phase” and inserting “Phase III”; and (C) in paragraph (3)— (i) in subparagraph (A)— (I) by striking “the first phase (as described in subsection (e)(4)(A))” and inserting “Phase I”; (II) by striking “the second phase (as described in subsection (e)(4)(B))” and inserting “Phase II”; and (III) by striking “the third phase (as described in subsection (e)(4)(C))” and inserting “Phase III”; and (ii) in subparagraph (B), by striking “second phase” and inserting “Phase II”; (3) in subsection (k)— (A) by striking “first phase” each place it appears and inserting “Phase I”; and (B) by striking “second phase” each place it appears and inserting “Phase II”; (4) in subsection (l)(2)— (A) by striking “the first phase” and inserting “Phase I”; and (B) by striking “the second phase” and inserting “Phase II”; (5) in subsection (o)(13)— (A) in subparagraph (B), by striking “second phase” and inserting “Phase II”; and (B) in subparagraph (C), by striking “third phase” and inserting “Phase III”; (6) in subsection (p)— (A) in paragraph (2)(B)— (i) in clause (vi)— (I) by striking “the second phase” and inserting “Phase II”; and (II) by striking “the third phase” and inserting “Phase III”; and (ii) in clause (ix)— (I) by striking “the first phase” and inserting “Phase I”; and (II) by striking “the second phase” and inserting “Phase II”; and (B) in paragraph (3)— (i) by striking “the first phase (as described in subsection (e)(6)(A))” and inserting “Phase I”; (ii) by striking “the second phase (as described in subsection (e)(6)(B))” and inserting “Phase II”; and (iii) by striking “the third phase (as described in subsection (e)(6)(C))” and inserting “Phase III”; (7) in subsection (r)— (A) in the subsection heading, by striking “Third Phase” and inserting “Phase III”; (B) in paragraph (1)— (i) in the first sentence— (I) by striking “for the second phase” and inserting “for Phase II”; (II) by striking “third phase” and inserting “Phase III”; and (III) by striking “second phase period” and inserting “Phase II period”; and (ii) in the second sentence— (I) by striking “second phase” and inserting “Phase II”; and (II) by striking “third phase” and inserting “Phase III”; and (C) in paragraph (2), by striking “third phase” and inserting “Phase III”; and (8) in subsection (u)(2)(B), by striking “the first phase” and inserting “Phase I”.