The stalemate over the Small Business Innovation Research Program continues. The Senate passed legislation allowing greater venture capital participation in SBIR, but the House did not act on the bill before Congress adjourned for 2010.

The two houses have long been at odds over whether companies controlled by large venture capital firms should be allowed to receive SBIR funding. The Senate bill, S. 4053, would allow limited participation: companies majority-owned by multiple venture capital firms could receive up to 15% of SBIR funds in most agencies, but up to 25% in the National Institutes of Health, Energy Department and National Science Foundation.

The House voted in 2009 to allow full participation by VC-controlled companies.

The Senate bill would also increase the maximum award under Phase I to $150,000, from the current $100,000. Phase II awards could increase to $1 million, from $250,000 now.

The bill would gradually increase the percentage of R&D funds reserved for small businesses to 3.5%, from the present 2.5%.

Contractors must turn in all employees’ government ID cards when a contract is completed, or face delays in receiving payment.

The Federal Acquisition Regulation councils have adopted a final rule intended to tighten control of the cards. Under the rule, contractors must return their employees’ ID’s as soon as the employee no longer needs access to federal facilities or when the contract is completed. A contracting officer may delay final payment if the contractor does not comply.

The Defense Department inspector general found that even when the smart ID’s are revoked, more than one-third of them are never returned.

The rule is FAC 2005-48, FAR Case 2009-027 in the Dec. 30 Federal Register. It is effective Jan. 31.

The outgoing Congress passed a stripped-down Defense Authorization bill for 2011, dropping several provisions that could have led to increased insourcing.

The final bill eliminated a House provision that would have prohibited contractors from performing work identified as “closely associated with inherently governmental” functions.

The Office of Management and Budget is considering new rules defining work that is “closely associated” or critical to an agency’s mission.