Letter From the Department of Education Phase I Solicitations DEPARTMENT OF EDUCATION SBIR PROGRAM DATA FISCAL YEAR 1983-1987 ($ IN THOUSANDS) Total number of Phase I solicitations... ...5 Total number of separate topics included in Phase I solicitation....19 Total number of eligible proposals received in response to Phase I solicitations... ...866 Total number of separate small business firms submitting a .623 Total number of states from which Phase I proposals have been received (all except AK, ND,NV,SD)............. .46 & DC Phase I Awards Total number of Phase I awards... ..76 Total number of separate small business firms receiving at least one Phase I SBIR award...... .65 .12 Total number of separate minority and disadvantage owned firms receiving a SBIR Phase I award... Total number of minority and disadvantaged owned firms receiving a SBIR Phase II award.... ...2 Letter From the Department of Energy Concerning the SBIR Program THE SECRETARY OF ENERGY March 28, 1988 Dear Mr. Fultz: This is in response to your letter of December 8, 1987, that requested a judgment from the Department of Energy (DOE) on the effect of the Small Business Innovation Development Act on the Department's research programs. We believe that the Small Business Innovation Research (SBIR) program has had a positive impact on DOE's R&D programs, and that the initial uncertainty concerning its value has been replaced by strong support for the program within the Department. An assessment of the DOE SBIR program was undertaken during 1987 to evaluate the quality of the research supported by the program compared to that traditionally supported by the Department. The assessment leads to the conclusion that SBIR and non-SBIR projects are of similar quality. Enclosure 1 describes the process and findings in more detail. During February of this year, designated representatives of the technical areas participating in the Department's SBIR program were interviewed on the program's effectiveness. The conclusion of this survey is that the program has effectively broadened the pool of available researchers and enriched the Department's research programs. Also, in many areas, the SBIR efforts have been integrated with the ongoing DOE research and development in a complementary and effective manner, and technology developed under SBIR support has been transferred to the private sector. Enclosure 2 describes these findings in more detail. The Department regards the goals of the SBIR program as admirable and is pleased to report that the results achieved are worthwhile. Yours truly, John J. Huington John S. Herrington 2 Enclosures Mr. Keith 0. Fultz Associate Director U.S. General Accounting Office 20548 Letter From the Department of Energy Comparative Quality of SBIR Projects An assessment of the DOE SBIR program was undertaken in the summer of 1987 to evaluate the quality of the research supported by the program compared to that traditionally supported by the Department. The assessment leads to the conclusion that the average qualities of SBIR and non-SBIR projects are similar. The assessment was based on evaluations provided by 17 independent scientific and technical panels that reviewed samples of SBIR and non-SBIR projects. Each panel had four to eight members and represented a research area of the Department. The panels rated individual projects on seven evaluation factors concerning each project's quality. The panels then assigned an overall rating which became the eighth and summary rating for each project. The sample of SBIR projects consisted of Phase II projects in the first two award cycles of the program. Ninety of 96 such projects were reviewed, all of which had ended or were near completion. For comparison, a sample of 29 non-SBIR projects was selected using the following guidelines: (1) funding level and duration comparable to SBIR projects and (2) technical area compatible with one of the 17 panels. The number of non-SBIR projects (29) was chosen because it was the minimum number required for a statistically valid representation of such projects. A report detailing the methodology, analyses, and findings is in preparation. Letter From the Department of Energy SBIR Program Effectiveness Cognizant staff of the Office of Energy Research met separately with one or more managers of each of the technical areas participating in the Department's SBIR program, including representatives designated by the The technical areas respective Assistant Secretaries as liaisons with SBIR. are Conservation and Renewable Energy, Energy Research, Fossil Energy, and Nuclear Energy. These representatives were able to provide first-hand opinions, supplemented by additional information gathered from within their program areas, on the effect of SBIR on the respective research programs. The significant findings, all coordinated with the Assistant Secretaries' representatives, follow. First, in almost all Departmental areas the breadth of participation by small business has significantly increased the pool of scientists and engineers now contributing to DOE research. Outreach efforts of The qualified bidder's lists have been expanded. Second, SBIR has given the Department the opportunity to enrich its research programs. Research pursuits have expanded in directions not traditionally followed, and advances have been made in many areas that would probably not have occurred without SBIR. (Examples include an industrial expert system incorporating sensor-based process control, and a magnetic-switching controller for a pulsed laser.) This has been brought about, of course, at some expense to the ongoing programs, since the funding for SBIR results in an explicit decrease of the same total amount in funding for other R&D programs. The benefits foregone because of this decrease are difficult to evaluate. Expansion in directions not traditionally followed has occurred because: (1) technical topics have been included in the SBIR solicitations in areas that had not been emphasized in the traditional programs, and (2) high-risk efforts are frequently easier to fund in the SBIR program than in traditional programs. SBIR has contributed to the expansion of the technology base with such developments as improved performance of new cryogenic hardware for helium refrigerators, solar neutrino detectors, improved drill-bits for geothermal hard-rock drilling, and enhanced performance of conventional superconductors that have potential application in accelerator magnets. Letter From the Department of Energy 2 Third, the results of SBIR projects are being integrated into the Examples of significant integration include development of heat pipes that will be used on thermionic reactors, spacecraft, and in paper production processes; a precursor seismic signal detector for nuclear plant safety; and the development of a new method to neutralize beams for magnetic fusion reactors. The latter has been incorporated into the design of the International Thermonuclear Experimental Reactor, a joint effort between the US, the USSR, Japan, and European countries. A special case of program integration occurs where SBIR is used to fund exploratory work which is later supported further by the Department in the main program, such as the development of new ceramic membranes for cleaning flue gases. Finally, the SBIR program has fostered effective technology transfer to the private sector, helping to fulfill the Department's goals. An important effect of SBIR on the Department's research programs is to move products and processes more quickly into the commercial marketplace. To cite one of many examples: a very promising new low-cost cyclotron for positron emission tomography is being built by an SBIR awardee in close collaboration with UCLA. In addition, the private sector has expanded its knowledge of the Department's programs and has developed its ability to better serve the Department's needs. The spin-offs into areas beyond the needs of the Department's R&D programs are growing in number including, as an example, a high-efficiency fiber optic connector usable in telecommunications and in the aerospace industry. A major reason for this effective technology transfer is the fact that many SBIR proposers utilize technology from the national laboratories. National laboratory and university scientists and engineers often assist in proposal preparation and serve as consultants while projects are being conducted. addition, SBIR contractors frequently utilize facilities at national laboratories and universities to carry out their projects. In |