Letter From the Department of Transportation Concerning the SBIR Program

The Secretary of Transportation has asked me to respond to your recent request for
judgments of department or agency heads as to the effect of the Small Business
Act on their research programs. The Research and Special Programs
Administration has been assigned the responsibility for administering the Small
Business Innovation Research (SBIR) Program for the Department of Transportation
and provides the overall management of the Program. In response to your request,
we have obtained information from the various elements of the Department
regarding the effectiveness of Phase I and Phase II of the SBIR Program.

The Department has awarded 135 Phase I and Phase II contracts valued at
approximately $12 million since the SBIR Program's inception in Fiscal Year 1983.
The awards were based on the provisions of Public Law 97-219, as amended, which
currently require a minimum of 1.25% of the Department's extramural research
budget to be set aside for research or research and development by SBIR awardees.
Our overall assessment of the SBIR Program, based on information provided by our
various Operating Administrations, is that the Program has provided an important
adjunct to normal contracting mechanisms for meeting the objectives of the
Department's research programs. The research objectives of the Department are
to provide the information and new technology needed for its operational programs
(e.g., air traffic control) and for regulatory programs (e.g., automotive and aircraft
safety standards). The SBIR Program has contributed toward meeting these
objectives by providing research that has relevance to the improvement of some
aspect of the national transportation system or to the enhancement of the ability
of the Department to perform its mission. The SBIR Program has also enabled
firms that would otherwise not normally be able to compete for federal research
funds to provide significant contributions toward a safe, efficient and reliable
transportation system.

The SBIR research topic areas are determined annually by each Operating
Administration and reflect the Department's priority research needs best met by
innovative small business firms. The SBIR Solicitation process has helped the
Department meet its current research objectives and provides a timely and cost-
effective contracting method with small business firms.

Letter From the Department of

Transportation Concerning the SBIR Program

Page Two

The supporting information for the judgment provided above is included in the attachment. I hope this information is useful to your overall assessment of the SBIR Program. Please let me know if there is any additional information needed. Sincerely,

M. Cynthia Douglas

Attachment

Letter From the Department of

Transportation Concerning the SBIR Program

ATTACHMENT

The participating elements of the Department of Transportation's Small Business Innovation Research (SBIR) Program include the Office of the Secretary, United States Coast Guard, Federal Aviation Administration, Federal Highway Administration, Federal Railroad Administration, Maritime Administration, National Highway Traffic Safety Administration, Urban Mass Transportation Administration, and the Research and Special Programs Administration.

Each element has a mission which includes research or research and development opportunities for innovative small business firms as summarized below.

OFFICE OF THE SECRETARY

The Office of the Secretary (OST) supports broad-based policy research on domestic and international transportation issues of importance to the nation.

The SBIR Program in the Office of the Secretary, although small, operates in a cooperative manner with the various Operating Administrations and jointly funds critical projects. This has helped ensure that research priorities in areas such as safety are initiated in selected cases. OST is pleased to continue to contribute and participate with the other modes that support high priority research goals and objectives of the Department.

UNITED STATES COAST GUARD

The U.S. Coast Guard (USCG) supports research to maintain and improve search and rescue systems, environmental protection, marine safety, aids to navigation, the enforcement of laws and treaties and activities which benefit all USCG programs.

The SBIR Program has provided an approach to perform basic research in high priority areas in support of USCG mission requirements. The SBIR Program is an effective method to achieve research objectives that are most appropriate for innovative small business firms. The success of the SBIR Program is demonstrated in projects that have application both to the USCG and to other operating elements both within the DOT and in other federal agencies.

FEDERAL AVIATION ADMINISTRATION

The research program of the Federal Aviation Administration (FAA) is consistent with the needs of the National Airspace System Plan. Current initiatives include enhancing the capability of a wide range of radar systems to meet new operational requirements; continuing the Traffic Alert and Collision Avoidance System Program; increasing system and airport capacity; continuing developmental efforts for Advanced Traffic Management and Automated Enroute Traffic Control; continuing development of radars for detection and tracking of severe weather; and continuing emphasis on initiatives in aviation security through expedited development of devices for detection of weapons, explosives and flammable liquids.