Implementing the Small Business Innovation Development Act--The First 2 Years
RCED-86-13
Published: Oct 25, 1985. Publicly Released: Oct 25, 1985.
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Highlights
GAO reported on the implementation of the Small Business Innovation Development Act, including the extent to which: (1) agencies established, funded, and provided accurate information on small business innovation research (SBIR) activities; and (2) the Small Business Administration (SBA) and the Office of Science and Technology Policy (OSTP) carried out program coordination, monitoring, and congressional reporting duties mandated by the act. The act requires that each agency that spends more than $100 million annually on extramural research establish an SBIR program and each agency that spends more than $20 million annually on research establish non-SBIR research funding goals for small businesses.
Recommendations
Matter for Congressional Consideration
Matter | Status | Comments |
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When it comes up for reauthorization, Congress should amend section 4 of the act to clarify application of the criterion for determining which agencies must establish non-SBIR goals for research funding agreements with small businesses. Specifically, Congress should resolve the ambiguity by making it clear that whether an agency needs to establish goals should be determined annually by applying the stated criterion. | Legislation was reauthorized in 1986 by P.L. 99-443, but the recommended change was not adopted. |
Recommendations for Executive Action
Agency Affected | Recommendation | Status |
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Department of Education | To permit proper determination of compliance with the funding provisions of the act, the heads of appropriate agencies with SBIR programs should report actual FY extramural R&D obligations, rather than estimates, to SBA. |
Education is reporting actual obligations data to SBA.
|
Department of Defense | To permit proper determination of compliance with the funding provisions of the act, the heads of appropriate agencies with SBIR programs should report actual FY extramural R&D obligations, rather than estimates, to SBA. |
The Department of Defense (DOD) is reporting actual obligations data to SBA.
|
Department of Energy | To permit proper determination of compliance with the funding provisions of the act, the heads of appropriate agencies with SBIR programs should report actual FY extramural R&D obligations, rather than estimates, to SBA. |
The Department of Energy (DOE) reported actual obligations and the data was published in the SBA Annual Report for FY 1985.
|
Department of the Interior | To permit proper determination of compliance with the funding provisions of the act, the heads of appropriate agencies with SBIR programs should report actual FY extramural R&D obligations, rather than estimates, to SBA. |
The Department of the Interior is no longer subject to the referenced provisions of the act.
|
Department of Transportation | To permit proper determination of compliance with the funding provisions of the act, the heads of appropriate agencies with SBIR programs should report actual FY extramural R&D obligations, rather than estimates, to SBA. |
The Department of Transportation (DOT) reported actual obligations for FY 1986.
|
Environmental Protection Agency | To permit proper determination of compliance with the funding provisions of the act, the heads of appropriate agencies with SBIR programs should report actual FY extramural R&D obligations, rather than estimates, to SBA. |
The Environmental Protection Agency (EPA) is reporting actual obligations data to SBA.
|
National Aeronautics and Space Administration | To permit proper determination of compliance with the funding provisions of the act, the heads of appropriate agencies with SBIR programs should report actual FY extramural R&D obligations, rather than estimates, to SBA. |
The National Aeronautics and Space Administration (NASA) reported actual obligations and the data was published in the SBA Annual Report for FY 1985.
|
Nuclear Regulatory Commission | To permit proper determination of compliance with the funding provisions of the act, the heads of appropriate agencies with SBIR programs should report actual FY extramural R&D obligations, rather than estimates, to SBA. |
The Nuclear Regulatory Commission (NRC) is reporting actual obligations data to SBA.
|
Department of Defense | The Secretary of Defense should determine definitively which, if any, activities funded under the Operational Systems Development category of the DOD Research, Development, Testing, and Evaluation appropriations conform to the common definition used in reporting R&D funding under the act, the National Science Foundation's (NSF) annual survey of federal R&D funds, and the special analysis of R&D funds in the President's budget. The Secretary should then instruct the responsible DOD officials to consistently apply the Secretary's determination when reporting R&D funding data to the three recipients. |
Congress amended the act in P.L. 99-443. As amended, the act now excludes the Operational Systems Development category.
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Department of Transportation | The Secretary of Transportation should, beginning in FY 1985, include all R&D obligations, regardless of the year during which they were appropriated, when reporting annual extramural R&D funding data to SBA for purposes of the act. |
DOT is reporting actual obligations data to SBA.
|
Small Business Administration | The Administrator, SBA, should revise the SBA policy directive containing reporting requirements for SBIR program data to require agencies to report extramural R&D obligations rather than extramural R&D budget authority. |
SBA revised the policy directive as recommended, SOP-65-01-2, effective October 30, 1985.
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Small Business Administration | The Administrator, SBA, should revise the deadline for agencies' reporting of this data to March 1 of each year, the deadline for agencies reporting the same data to NSF. |
SBA revised the policy directive as recommended, SOP-65-01-2, effective October 30, 1985.
|
Veterans Administration | The Administrators of the Agency for International Development (AID) and the Veterans Administration (VA) should submit data for FY 1983 and FY 1984 regarding non-SBIR goals to SBA, in accordance with requirements contained in the act and the SBA policy directive. |
VA provided necessary data to SBA.
|
U.S. Agency for International Development | The Administrators of the Agency for International Development (AID) and the Veterans Administration (VA) should submit data for FY 1983 and FY 1984 regarding non-SBIR goals to SBA, in accordance with requirements contained in the act and the SBA policy directive. |
AID provided data to SBA.
|
Department of Agriculture | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should reassess their respective agencies' reports to OMB and SBA for FY 1983 and FY 1984, make them consistent, and instruct the appropriate officials to take steps to ensure the consistency of these reports in the future. |
The Department of Agriculture (USDA) reassessed the FY 1983 and 1984 reports, resulting in revisions to figures that had been reported to SBA.
|
Department of Commerce | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should reassess their respective agencies' reports to OMB and SBA for FY 1983 and FY 1984, make them consistent, and instruct the appropriate officials to take steps to ensure the consistency of these reports in the future. |
The Department of Commerce reassessed the FY 1983 and 1984 reports to SBA and made them consistent with reports to OMB. Commerce established a procedure for bureaus to review and verify reports before they are sent to SBA.
|
Department of Defense | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should reassess their respective agencies' reports to OMB and SBA for FY 1983 and FY 1984, make them consistent, and instruct the appropriate officials to take steps to ensure the consistency of these reports in the future. |
Data reported to SBA are consistent with OMB data.
|
Department of Energy | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should reassess their respective agencies' reports to OMB and SBA for FY 1983 and FY 1984, make them consistent, and instruct the appropriate officials to take steps to ensure the consistency of these reports in the future. |
DOE completed its reassessment of the reports by December 15, 1986, and no revisions to the prior reports were necessary. A change in the due date for the SBA report will permit consistent future reporting.
|
Department of Health and Human Services | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should reassess their respective agencies' reports to OMB and SBA for FY 1983 and FY 1984, make them consistent, and instruct the appropriate officials to take steps to ensure the consistency of these reports in the future. |
The Department of Health and Human Services (HHS) established a procedure to be applied in the FY 1985 report to SBA, in March 1986, by which the official preparing the report will be provided the figures reported to OMB so that he can ensure consistency. HHS reassessed the FY 1983 and 1984 reports and reported revised data to SBA in March 1986.
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Department of the Interior | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should reassess their respective agencies' reports to OMB and SBA for FY 1983 and FY 1984, make them consistent, and instruct the appropriate officials to take steps to ensure the consistency of these reports in the future. |
Interior dropped out of the SBIR program, as of the end of FY 1985, since its extramural R&D budget has been reduced and no longer meets the criterion for participation.
|
Department of Justice | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should reassess their respective agencies' reports to OMB and SBA for FY 1983 and FY 1984, make them consistent, and instruct the appropriate officials to take steps to ensure the consistency of these reports in the future. |
Data reported to SBA are consistent with OMB data.
|
Department of Transportation | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should reassess their respective agencies' reports to OMB and SBA for FY 1983 and FY 1984, make them consistent, and instruct the appropriate officials to take steps to ensure the consistency of these reports in the future. |
Data reported to SBA are consistent with OMB data.
|
Environmental Protection Agency | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should reassess their respective agencies' reports to OMB and SBA for FY 1983 and FY 1984, make them consistent, and instruct the appropriate officials to take steps to ensure the consistency of these reports in the future. |
Data reported to SBA are consistent with OMB data.
|
National Aeronautics and Space Administration | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should reassess their respective agencies' reports to OMB and SBA for FY 1983 and FY 1984, make them consistent, and instruct the appropriate officials to take steps to ensure the consistency of these reports in the future. |
Data reported to SBA are consistent with OMB data.
|
National Science Foundation | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should reassess their respective agencies' reports to OMB and SBA for FY 1983 and FY 1984, make them consistent, and instruct the appropriate officials to take steps to ensure the consistency of these reports in the future. |
The National Science Foundation (NSF) reassessed the FY 1983 and 1984 reports, resulting in minor revisions to figures that had been reported to SBA. The revised reporting date of March 1986 will permit consistent reporting in the future.
|
Nuclear Regulatory Commission | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should reassess their respective agencies' reports to OMB and SBA for FY 1983 and FY 1984, make them consistent, and instruct the appropriate officials to take steps to ensure the consistency of these reports in the future. |
Data reported to SBA are consistent with OMB data.
|
Tennessee Valley Authority | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should reassess their respective agencies' reports to OMB and SBA for FY 1983 and FY 1984, make them consistent, and instruct the appropriate officials to take steps to ensure the consistency of these reports in the future. |
Data reported to SBA are consistent with OMB data.
|
Smithsonian Institution | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should reassess their respective agencies' reports to OMB and SBA for FY 1983 and FY 1984, make them consistent, and instruct the appropriate officials to take steps to ensure the consistency of these reports in the future. |
Data reported to SBA are consistent with OMB data.
|
Department of Agriculture | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should, after reviewing OMB and SBA reports, provide SBA with revised non-SBIR goals data, where necessary. |
USDA has provided revised data to SBA.
|
Department of Commerce | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should, after reviewing OMB and SBA reports, provide SBA with revised non-SBIR goals data, where necessary. |
Commerce sent the revised data to SBA on December 20, 1985.
|
Department of Defense | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should, after reviewing OMB and SBA reports, provide SBA with revised non-SBIR goals data, where necessary. |
Data reported to SBA are consistent with OMB data.
|
Department of Energy | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should, after reviewing OMB and SBA reports, provide SBA with revised non-SBIR goals data, where necessary. |
DOE provided revised data to SBA, which is contained in the SBA Annual Report for FY 1985.
|
Department of Health and Human Services | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should, after reviewing OMB and SBA reports, provide SBA with revised non-SBIR goals data, where necessary. |
Data reported to SBA are consistent with OMB data.
|
Department of the Interior | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should, after reviewing OMB and SBA reports, provide SBA with revised non-SBIR goals data, where necessary. |
Interior dropped out of the SBIR program, as of the end of FY 1985, since its extramural R&D budget has been reduced and no longer meets the criterion for participation.
|
Department of Justice | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should, after reviewing OMB and SBA reports, provide SBA with revised non-SBIR goals data, where necessary. |
Data reported to SBA are consistent with OMB data.
|
Department of Transportation | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should, after reviewing OMB and SBA reports, provide SBA with revised non-SBIR goals data, where necessary. |
Data reported to SBA are consistent with OMB data.
|
Environmental Protection Agency | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should, after reviewing OMB and SBA reports, provide SBA with revised non-SBIR goals data, where necessary. |
Data reported to SBA are consistent with OMB data.
|
National Aeronautics and Space Administration | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should, after reviewing OMB and SBA reports, provide SBA with revised non-SBIR goals data, where necessary. |
Data provided to SBA are consistent with OMB data.
|
National Science Foundation | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should, after reviewing OMB and SBA reports, provide SBA with revised non-SBIR goals data, where necessary. |
NSF had provided revised data to SBA as of December 30, 1985.
|
Nuclear Regulatory Commission | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should, after reviewing OMB and SBA reports, provide SBA with revised non-SBIR goals data, where necessary. |
Data reported to SBA are consistent with OMB data.
|
Tennessee Valley Authority | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should, after reviewing OMB and SBA reports, provide SBA with revised non-SBIR goals data, where necessary. |
Data provided to SBA are consistent with OMB data.
|
Smithsonian Institution | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should, after reviewing OMB and SBA reports, provide SBA with revised non-SBIR goals data, where necessary. |
Data provided to SBA are consistent with OMB data.
|
Department of Agriculture | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should instruct the appropriate officials in their respective agencies to establish goals known to officials responsible for awarding external R&D funds. |
USDA informed officials of goals.
|
Department of Education | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should instruct the appropriate officials in their respective agencies to establish goals known to officials responsible for awarding external R&D funds. |
Education sent a notice to appropriate officials informing them of goals.
|
Department of Transportation | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should instruct the appropriate officials in their respective agencies to establish goals known to officials responsible for awarding external R&D funds. |
DOT has briefed agency officials on goals.
|
Environmental Protection Agency | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should instruct the appropriate officials in their respective agencies to establish goals known to officials responsible for awarding external R&D funds. |
EPA issued letters to officials informing them of goals.
|
Veterans Administration | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should instruct the appropriate officials in their respective agencies to establish goals known to officials responsible for awarding external R&D funds. |
Appropriate agency officials were briefed on goals.
|
National Aeronautics and Space Administration | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should instruct the appropriate officials in their respective agencies to establish goals known to officials responsible for awarding external R&D funds. |
NASA has notified officials of goals.
|
Nuclear Regulatory Commission | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should instruct the appropriate officials in their respective agencies to establish goals known to officials responsible for awarding external R&D funds. |
NRC has notified officials of goals.
|
Tennessee Valley Authority | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should instruct the appropriate officials in their respective agencies to establish goals known to officials responsible for awarding external R&D funds. |
The Tennessee Valley Authority (TVA) has notified appropriate officials of goals.
|
U.S. Agency for International Development | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should instruct the appropriate officials in their respective agencies to establish goals known to officials responsible for awarding external R&D funds. |
AID has briefed agency officials on goals.
|
Smithsonian Institution | The heads of applicable agencies subject to the non-SBIR goals provisions of the act should instruct the appropriate officials in their respective agencies to establish goals known to officials responsible for awarding external R&D funds. |
The Smithsonian has notified appropriate officials of goals.
|
Small Business Administration | The Administrator, SBA, should recompute agencies' non-SBIR goals using revised data for FY 1983 or FY 1984 that agencies provide to SBA after reviewing previously submitted data for consistency with data reported to OMB. SBA should also use the recomputed FY 1983 goals as the baseline data against which to evaluate goal achievement in subsequent years. |
SBA has recomputed goals based on submission of revised data, as available.
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Small Business Administration | The Administrator, SBA, should change the due date for agencies' submission of non-SBIR goal reports to the end of January to coincide with agencies' budget submissions to OMB. |
SBA revised the due date to March 15, 1986, through a change to its policy directive, SOP-65-01-2, effective October 30, 1985.
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Small Business Administration | The Administrator, SBA, should revise the SBA policy directive containing reporting requirements for non-SBIR goals to require agencies to report total R&D dollar obligations, rather than total R&D budget authority. |
SBA made the recommended revision to the policy directive, SOP-65-01-2, effective October 30, 1985.
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Office of Science and Technology Policy | OSTP should expand its oversight of agencies' SBIR programs by using the Federal Coordinating Council for Science, Engineering, and Research to monitor the SBIR programs in terms of research quality. |
P.L. 97-219 required GAO to report on research quality.
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