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This is the Department of Defense (DoD) response to the General Accounting Office (GAO) draft report, "FEDERAL RESEARCH: Evaluation of Small Business Innovation Research Programs," dated October 31, 1988 (GAO Code 005738/OSD Case 7822).

The Department has reviewed the report, concurs with its findings, and has no further comment. The Department appreciates the opportunity to review this draft report.

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Thank you for the opportunity to review the draft report entitled, Federal Research: Evaluation of Small Business Innovation Research Program (GAO/RCED 89-39).

We have telephoned three editorial comments to Dave Balderston of your staff. We have no other comments.

If you need further assistance, please have your office contact
Mr. John Christensen at 357-6065.

Sincerely,

Patricia Han's

Patricia M. Hines

Acting Assistant Secretary

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The Department of Energy appreciates the opportunity to review and comment on the General Accounting Office (GAO) draft report entitled "Federal Research: Evaluation of Small Business Innovation Research Programs."

While we have no problem with the overall Report, we would like to request one revision to clarif a reference to an assessment of SBIR projects carried out by the Department's Office of Program Analysis. On page 73, the sentence beginning "An assessment of SBIR projects..." should be replaced with the following:

"The assessment of SBIR projects performed by DOE's Office of
Program Analysis and dated August, 1988 shows a real,

although small, difference between the overall average ratings
of SBIR and non-SBIR projects, with the non-SBIR projects having
a higher rating.

The Department hopes that this comment will be helpful to GAO in their
preparation of the final report.

Sincerely,

Lawrence F. Davenport
Assistant Secretary

Management and Administration

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The Department has no substantive comments on your draft report,
"Federal Research: Evaluation of Small Business Innovation
Research Programs." Technical comments were provided to a member
of your staff on November 28, 1988.

The Department appreciates the opportunity to comment on this
draft report before its publication.

Sincerely yours,

Q Kur

Richard P. Kusserow
Inspector General

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This letter responds to your request for comments on a draft report entitled, "Federal Research: Evaluation of Small Business Innovation Program." We have reviewed the draft report and believe it represents a useful document to the Congress on program operations and results.

We appreciate the opportunity to review and comment on this draft report.

Sincerely,

Ch SIM
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Charles G. Rogoff

Director, Office of Program
Management and Administration

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