106 STAT. 4258 PUBLIC LAW 102-564-OCT. 28, 1992

1994,1995, or 1996, is authorized to expend with small business
concerns—

"(A) not less than 0.05 percent of such budget in fiscal
year 1994;

"(B) not less than 0.1 percent of such budget in fiscal
year 1995; and

"(C) not less than 0.15 percent of such budget in fiscal
year 1996,

specifically in connection with STTR programs which meet
the requirements of this section, policy directives, and regula-
tions issued under this section.

"(2) LIMITATIONS.—A Federal agency shall not—

"(A) use any of its STTR budget established pursuant
to paragraph (1) for the purpose of funding administrative
costs of the program, including costs associated with sala-
ries and expenses, or, in the case of a small business
concern or a research institution, costs associated with
salaries, expenses, and administrative overhead (other than
those direct or indirect costs allowable under guidelines
of the Office of Management and Budget and the gov-
ernmentwide Federal Acquisition Regulation issued in
accordance with section 25(c)(l) of the Office of Federal
Procurement Policy Act); or

"(B) make available for the purpose of meeting the
requirements of paragraph (1) an amount of its extramural
budget for basic research which exceeds the. percentage
specified in paragraph (1).

"(3) EXCLUSION OF CERTAIN FUNDING AGREEMENTS.—Fund-
ing agreements with small business concerns for research or
research and development which result from competitive or
single source selections other than an STTR program shall
not be considered to meet any portion of the percentage require-
ments of paragraph (1).

"(o) FEDERAL AGENCY STTR AUTHORITY.—Each Federal agency
required to establish an STTR program in accordance with sub-
section (n) and regulations issued under this Act, shall—

(1) unilaterally determine categories of projects to be
included in its STTR program;

"(2) issue STTR solicitations in accordance with a schedule
determined cooperatively with the Administration;

"(3) unilaterally determine research topics within the agen-
cy's STTR solicitations, giving special consideration to broad
research topics and to topics that further 1 or more critical
technologies, as identified—

"(A) by the National Critical Technologies Panel (or
its successor) in reports required under section 603 of the
National Science and Technology Policy, Organization, and
Priorities Act of 1976; or

"(B) by the Secretary of Defense, in accordance with
section 2522 of title 10, United States Code;
"(4) unilaterally receive and evaluate proposals resulting
from STTR solicitations;

"(5) unilaterally select awardees for its STTR funding
agreements and inform each awardee under such an agreement,
to the extent possible, of the expenses of the awardee that
will be allowable under the funding agreement;