Letter From the Department of Agriculture
Concerning the SBIR Program
SBIR projects are innovative and represent a mechanism for commercialization
of the results of basic research. For example, recent progress in animal
biotechnology has been used by grantees to design superior vaccines that are
quite specific with fewer undesirable side effects. Basic research in plant
biotechnology that has made it possible to introduce new genetics material into
certain plants has permitted grantees to create new plant varieties that possess
superior yield and quality characteristics or enhanced resistance to specific
plant pathogens or insect pests. Basic research that led to the development of
fiber optics and laser spectroscopy has been built upon with various applications
such as an improved soil moisture probe that uses fiber optic technology or a
computer-directed, laser guidance system for edging hardwood boards that
results in improved yield. Improved breeding methods have led to the
development of one of the first American strains of cashmere goat that will be
a domestic source of this valuable fiber. A project in Washington State plans
to utilize this new strain in an effort to establish domestic cashmere production
as a new enterprise that will enhance economic opportunity in rural areas.
The SBIR program is designed to leverage Federal R&D support in Phase I and II with non-Federal support in Phase III. The USDA supports the concept of Phase III funding by strongly encouraging Phase II applicants to include a follow-on funding commitment for Phase III as part of their Phase II grant applications. Grantees are also encouraged to secure matching funds from State or private sources to assist their Phase II effort or to seek bridge grants from their State government to permit the small business to continue its research activity during the period from the end of Phase I until the start of a Phase II grant.
The SBIR program provides support for certain USDA initiatives. For example,
last year the USDA initiated a Rural Revitalization Effort. One of the six topic
areas in the USDA SBIR program addresses rural and economic development. In
FY 88, the number of Phase I applications in this topic area nearly doubled
over the previous year and four proposals have been recommended for funding.
These projects are all directed at stimulating economic development in rural
The Joint Council on Food and Agricultural Sciences, a major advisory body for
USDA research programs, makes recommendations on research priorities. For
FY '89, their two top priorities are: (1) maintaining and preserving water
quality, and (2) expanding biotechnology and its applications. In both cases the
SBIR program has funded a number of important projects. In the area of water
quality, these projects include: (a) development of a laser/bacterial assay system
for detection of pesticides and other contaminants in ground water;
(b) development of a cost-effective integrated flow control device to permit
more efficient use of irrigation water; and (c) development of a new membrane
system to permit more effective demineralization of brackish ground water. In
the biotechnology area there are more than a dozen projects underway dealing
with such subjects as: (a) developing safer and more effective animal vaccines;
Letter From the Department of Agriculture
Concerning the SBIR Program
(b) using recombinant molecular techniques to produce porcine cytokines, which have the potential for improving the effectiveness of vaccines in pigs;
(c) development of new corn varieties with enhanced methionine levels for improved animal feed; and (d) introduction of genes for chitinase (enzyme that digests chitin) into tobacco to produce plants with increased resistance to fungal attack (fungal cell walls contain chitin).
(6) The SBIR program has proven to be an effective vehicle for support of women-
and minority-owned small businesses. Proposals are evaluated strictly on merit,
but women- and minority-owned small businesses are encouraged to apply. In
FY '88, out of 230 Phase I proposals, 20 were from women-owned and 22
from minority-owned small businesses. A total of 26 Phase I awards have been
recommended for funding, and of these, four are women-owned and three are
minority-owned. The USDA is pleased with these results and hopes women- and
minority-owned small businesses will continue to be successful in obtaining SBIR
funds in the future.
In conclusion, the USDA views the SBIR program as being an effective way to involve the small business community in Federal R&D funds. The projects being funded are innovative and of high quality and offer good prospects for eventual commercialization. The SBIR program has earned the respect of the Department of Agriculture and of the agricultural scientific community.
Letter From the Department of Commerce
Concerning the SBIR Program
This is in response to your request for the Department of
Commerce's judgement on the effects of the Small Business Act,
specifically the Small Business Innovation Research (SBIR)
program, on our research programs. I am pleased to report that
DOC scientists think the SBIR program can contribute to their
research and development needs. The Department's first phase
two SBIR contracts will not be completed until May 1988;
consequently, I can not make a conclusive judgement on the
effects of phase two in terms of the application of research
results. My comments, therefore, relate to the presently
identifiable effects of our phase one efforts.
The SBIR program has provided DOC research managers an
opportunity to broaden the scope of their research, facilitated
direct communication between our laboratory scientists and
their colleagues in small firms, and is creating a growing
appreciation of the capabilities of small, innovative firms.
The program has encouraged research managers to pursue projects
that otherwise may not have been undertaken. By providing a
means for accessing the ideas and expertise of competent
scientists and engineers in small, technology oriented
businesses, the program gives research managers the opportunity
to explore new and innovative approaches to their problems and
to obtain expertise not available in-house. Currently, we have
20 SBIR funded projects going on in the Department. If
successfully completed, these projects will make significant
contributions to our research programs.
The Department views SBIR awardees as partners in cooperative
research and development. We assign a Technical Representative
(TR) to each phase one awardee at the time a contract is
awarded. The TR, a laboratory scientist, not only provides
technical assistance to contractors during phase one, but he or
she also becomes the contractors advocate in the competition
for phase two awards. A close working relationship is
established between the Principal Investigator and TR.
effect of this partnership is to facilitate not only the
exchange of information but also to ensure that the phase one
and phase two work remains focused on the needs of the DOC
laboratory sponsoring for the research.
75 Years Stimulating America's Progress 1913-1988
Letter From the Department of Commerce
Concerning the SBIR Program
The SBIR program has created a small, but growing number of advocates at the laboratory level. Because our program is comparatively small and relatively new, only a few of our researchers have been exposed to or benefited from opportunities the program offers. However, those that have been are quite enthusiastic about the program. In terms of the SBIR program's future, I believe this enthusiasm has an important effect. success of the program is quite clearly dependent upon the continuing interest and cooperation of laboratory and program level scientists. They must provide the topics for solicitations, evaluate proposals, and participate in the selection of awardees. Based upon peer review of completed phase one work and progress thus far in phase two, there is no doubt about the competence of our SBIR awardees. I am convinced there is sufficient evidence to conclude that the SBIR program can make significant contributions to DOC research and development needs. If your staff requires more details on our SBIR program, Mr. Ed Tiernan, the program's technical manager, will be happy to provide them. He can be reached at (301) 763-4240.
Hugh L. Brennan
Director, Procurement
Administrative Services
Letter From the Department of Defense
Concerning the SBIR Program
This is the Department of Defense (DoD) response to your letter of December 3, 1987, requesting a judgment of the effects of the Small Business Innovation Research (SBIR) Program on DoD Research and Development (R&D), (GAO Code 005738).
The SBIR Program has continued to grow since its beginning in 1983 and has become an integral part of all DoD R&D programs. effect of SBIR on these programs has been positive and the Congressional goals of the law are being met.
Results of recent assessments of the SBIR Program within each of the six participating DOD components show that the quality and innovative nature of the work performed by SBIR contractors are equal to work performed by contractors outside the SBIR Program. The SBIR Program has provided a pool of small businesses willing to investigate new high risk and innovative ideas needed to expedite the accomplishment of DoD goals and objectives. Summaries of the DOD components assessments are enclosed.
Since the DoD SBIR Program began in 1983, minority firms have competed and received twelve to fourteen percent of the SBIR dollars awarded each year. The DoD minority outreach program has paid off in SBIR participation and the Department will continue to incorporate new ideas to inform more minorities about the SBIR Program.
The DoD wholeheartedly supports the Congressional goals of the SBIR Program and is pleased to report its positive effect on all R&D programs.
|