Pursuant to a congressional request, GAO reviewed the implementation of the Advanced Technology Program (ATP) by the National Institute of Standards and Technology (NIST), focusing on: (1) ATP awardees' indirect costs; (2) completed ATP projects; and (3) NIST plans to evaluate ATP effectiveness.

GAO found that: (1) ATP assists U.S. businesses in applying new technology to improve their competitive position; (2) significant funding increases for ATP have been proposed for fiscal years 1994 through 1997; (3) NIST has provided indirect cost reimbursement for 20 of the 98 businesses participating in ATP at rates ranging from 5 percent to over 250 percent; (4) ATP staff have initiated an evaluation of ATP with a short-term focus on improving the program's efficiency and effectiveness; and (5) ATP staff cannot evaluate the long-term effectiveness of ATP until more projects have been completed.