Dr. TEEM. I might mention, Mr. Chairman, that the program that ERDA has implemented as well as the program carried out under the National Science Foundation was carried out under the policies and the program direction of the National Science Foundation and did not include a large fraction of demonstrations, et cetera.

In order to implement the program during this transition period as ERDA has been formed, we have utilized in many cases the selection of contractors that had been previously planned under the National Science Foundation. So it will be only next year, in the 1976 program, that we will really begin to implement in the total procurement process, the request for proposals, and so forth, those policies that ERDA is putting together with regard to small business.

Senator HATHAWAY. I understand that on this Georgia project, only Pittsburgh Plate Glass is directly involved in the solar aspects and that the small businesses aren't directly involved with the solar aspects at all.

Dr. TEEM. In that project the Pittsburgh Plate Glass provided the solar collectors, and the other companies-would you put the list back on the board? If we look at solar technology, specifically solar technology, the architects are very deeply involved in a number of the solar energy projects and the Georgia Institute of Technology, its instrumentation has been supported in part by the National Science Foundation program.

Senator HATHAWAY. Solar energy, of course, in heating and cooling, utilizes many adaptations of components for the systems that are related to those of other aspects of the heating and cooling and air conditioning type of industries. So you find concerns getting involved in solar energy products in terms of adaptations of those equipments. You stated that the technology is adequate. So, I would think that a large bulk of your money now being spent is for demonstration projects and that the large bulk of this money should go to small business since, by your own statement, you believe them to be the best equipped to do that kind of work.

Dr. TEEM. We would expect to see as we move ahead in the demonstration program a much larger fraction will go to small businesses; yes, sir.

Senator HATHAWAY. What is your estimate?

Dr. TEEM. I really do not think we have a good estimate of that, no sir, but it is certainly going to be in my own judgment 30 to 40 percent, at least, and we will have to wait until we see the results of this request for information to get a much better assessment of how the industry currently is structured in that regard.

Senator HATHAWAY. Well, why would it not be even a larger percentage to small business?

Dr. TEEM. It could very well be a larger percentage, Mr. Chairman. Senator HATHAWAY. Why do you say 30 or 40?

Dr. TEEM. Without having an estimate, I just tried to look in my own mind to say what fraction would be involved. If you look at this, you might say it would be 80 percent, but I am not certain yet what the fraction will be. Of course, the program is multifaceted. It has work that is related to the electric generation and the bioconversion activities. Much of this is also done in industry and we see a role for small

40 percent in the heating and cooling area, and a large portion of that would be in small business, I looked at roughly 80 percent and then took some small business estimates from the solar electric and bioconversion portions and put it roughly at an order of magnitude of 40 percent.

Senator HATHAWAY. Could you give us a percentage breakdown for the record?

Dr. TEEM. We will be very happy to give you a percentage breakdown to the best of our ability to determine it for those programs that are currently under the ERDA contracts.

[The exhibits referred to follow:]

27. "MATERIAL REGARDING ERDA SOLAR ENERGY CONTRACTS WITH SMALL BUSINESS FIRMS PROVIDED FOR THE RECORD OF THE SENATE SELECT COMMITTEE ON SMALL BUSINESS HEARINGS OF MAY 14, 1975"

MATERIAL REGARDING ERDA SOLAR ENERGY CONTRACTS WITH

SMALL BUSINESS FIRMS PROVIDED FOR THE RECORD OF THE

SENATE SELECT COMMITTEE ON SMALL BUSINESS HEARINGS OF

MAY 14, 1975

ERDA has awarded or has under negotiation for award prior to June 30, the attached listing of prime contracts with small business firms. These represent 5 percent of the total FY 1975 obligations and about 10 percent of the total awards.

Data on potential subcontracts under interagency agreements is being generated. This information will be furnished when available.

28. TABLE, "AWARDS MADE OR UNDER NEGOTIATION WITH SMALL BUSINESS FIRMS BY NSF AND ERDA DURING FY 1975"

AWARDS MADE OR UNDER NEGOTIATION WITH SMALL BUSINESS FIRMS BY NSF1

Those awards transferred to ERDA on January 19, 1975. * Contract under negotiation, amount not final.

$800,000*

$ 32,439

$107,000*

$120,000*

$ 15,000*

$ 39,000*

$135,000*

$ 70,000* $ 95,000* $ 54,300

$ 49,000*

$ 9,500

$ 73,000*

$108,965

29. TABLE, "AWARDS MADE OR CONTEMPLATED WITH SMALL BUSINESS CONCERNS UNDER ERDA INTERAGENCY AGREEMENTS DURING FY 1975"

We wrote to those agencies with whom we had executed Interagency Agreements as of June 17, 1975. This included eleven (11) agencies involving eighteen (18) agreements. As of the date of this letter, three (3) agencies involving three (3) agreements did not respond.

Of the responses we received we were able to determine that under fifteen (15) Interagency Agreements (with eight (8) agencies) a total of thirty-nine (39) subcontract awards were made. Twenty-eight (28) of these thirty-nine (39) were not classifiable as either small or large business concerns under Small Business Administration Standards. For the most part, they involved awards to educational institutions or other Federal agencies.

Of the eleven (11) remaining subcontract awards (7) were to large business concerns and four (4) were to small business concerns. This is fractionally under 40%.

AWARDS MADE OR CONTEMPLATED WITH SMALL BUSINESS
CONCERNS UNDER ERDA INTERAGENCY AGREEMENTS DURING