[Interpretation of Public Laws 97-219 and 97-272]

The Administrator of the National Aeronautics and Space Administration (NASA) requested an advance decision concerning the application of the Small Business Innovation Development Act of 1982 to NASA operations. The act requires that agencies with extramural budgets for research and development in excess of $100 million per year set aside a specified percentage for contract awards, grants or cooperative agreements to small business concerns participating in Small Business Administration approved small business innovation research (SBIR) programs. NASA questioned whether the SBIR set-aside must be calculated as a percentage of the total funds appropriated under the account entitled Research and Development (R&D) or whether it may be calculated instead by distinquishing between research and development activities and operational activities, both of which are included in the R&D appropriation, and applying the set-aside only to the funds identified in its budget submission for research and development. GAO held that, in calculating its 1983 set-aside for SBIR program, NASA should apply the definition of research and development that appears in the act to its budget for fiscal year 1983 without regard to the R&D appropriation heading. Since Congress clearly appropriated funds for certain operational activities under that heading, it would be contrary to congressional intent for set-asides to be based on amounts not available for research and development.