B-279612 Observations According to DOE, it has historically supported a wide range of energy R&D in eight program areas with funding of about $61.8 billion from 1978 through 1995.' As we have reported previously, while the amount of money spent on R&D is useful as a measure of how much research is being performed, it is not a good indication of the results of research. 2 From reviewing our previous reports, we have drawn the following five common themes, stated as questions, that may help the Congress consider DOE's proposed R&D budget:3 Would the private sector do the research without federal funding? Our work suggests federal R&D programs sometimes displace research that private industry may have done without government funding. For example, in our 1996 report on the Department of Commerce's Advanced Technology Program, we found that about 40 percent of the award recipients said they would have conducted the research without assistance from the program.4 Will consumers buy the product? One of the keys to successful research is Do the benefits exceed the costs? Our previous work suggests the federal government has a mixed record in estimating the costs and benefits of federally funded R&D. In our 1996 review of DOE's Success Stories report, we noted that the Department had made valid claims about the benefits of 'This figure is in constant 1995 dollars. 'Measuring Performance: Strengths and Limitations of Research Indicators (GAOʻRCED 97 91, Mar 21, 1997) "We do not intend our five questions as an assessment of DOE's performance in these areas. Measuring Performance: The Advanced Technology Program and Private Sector Funding Electric Vehicles: Efforts to Complete Advanced Battery Will Require More Time and Funding (GAORCED-95-214, Aug. 17, 1995). B-279612 Scope and Methodology a few of the technologies. Some of these benefits may be substantial, but, in most cases, DOE did not state how much it spent developing the technologies or had problems with its analyses." Have efforts been coordinated? Ensuring that DOE'S R&D is consistent with other federal R&D efforts and with its mission statement and strategic plan under the Government Performance and Results Act of 1993 is important in order for the Department to limit duplication and focus its funding effectively. Furthermore, because many of the Department's activities, such as the Partnership for a New Generation of Vehicles, cut across a number of other federal agencies, coordination with these agencies is essential." Have implementation concerns been addressed? Our past work has shown that agencies sometimes do not have the administrative structure needed to implement R&D projects effectively. In a 1995 report on unobligated funds in the Advanced Technology Program, we observed that, in fiscal year 1995, the funding and the planned number of awards for the program about doubled. However, the National Institute of Standards and Technology (NIST), the agency that administers the program, did not increase its administrative staff at the same rate to make the awards. At the end of fiscal year 1995, NIST had not made all its planned awards and carried over a unobligated balance of $136.4 million. In response to our questions, DOE said that it carefully considers each of these questions when it formulates budget proposals. According to DOE, proposals that do not successfully answer these questions are not included in its budget request. We conducted our review from January 20, 1998, through March 1998 in accordance with generally accepted government auditing standards. We reviewed DOE's fiscal year 1998 estimated discretionary budget authority and compared it to the Department's proposed fiscal year 1999 budget for 'DOE's Success Stories Report (GAORCED 96 120R, Apr. 15, 1996). "The Partnership for a New Generation of Vehicles is an industry-government cooperative partnership between Chrysler, Ford, and General Motors and 11 federal agencies or entities to (1) develop manufacturing techniques to reduce the time and cost of automotive development, (2) improve fuel efficiency and emissions performance, and (3) develop a vehicle with triple the fuel efficiency of today's midsize cars while maintaining or improving safety, performance, emissions, and price. "NIST's Unobligated Funds (GAORCED-95-166P, May 4, 1996). "NIST Carryover Balances (GAO/RCED-97-1448, Apr. 30, 1997). B-279612 the Climate Change Technology Initiative. We spoke with DOE officials in each of the major program divisions involved in the Initiative, including Energy Efficiency, Renewable Energy, Fossil Energy, Nuclear Energy, Energy Research, and the Energy Information Administration. To develop our observations about R&D, we reviewed and summarized GAO reports and testimonies on R&D Since 1990. Agency Comments and Our Evaluation We provided a copy of our report to DOE for its review and comment. We obtained comments on the results of our work from the Department, including the Assistant Secretary, Energy Efficiency and Renewable Energy and one of his directors. DOE agreed with the funding information presented in this report and provided two general comments. First, DOE said that the report should clearly state that both the base Second, DOE agreed that the five questions we raised are appropriate in the consideration of R&D funding. However, DOE said that the report attempts to provide or imply answers to each question that are uniformly negative and are based on marginally relevant examples. We do not intend our five questions as an assessment of DOE's performance in these areas. Rather, we cite previous reports to illustrate that these are areas that the Congress may want to consider when funding any R&D. Therefore, we provide examples from reports concerning DOE and other agencies. To address this comment, we modified the text to better explain the intent of our questions and the means by which DOE chooses its proposals. As agreed with your office, unless you publicly announce its contents earlier, we plan no further distribution of this report until 14 days from the date of this letter. At that time, we will make copies of this report available to others upon request. |