Federal Research

The Defense Department (DOD) and other federal agencies are required to set aside a percentage of their research and development (R&D) budgets for the Small Business Innovation Research Program, which was intended to employ small businesses to meet federal R&D needs, foster participation by minority and disadvantaged persons in technological innovation, and increase private sector commercialization of innovations derived from federal R&D. In fiscal year 1997, this will amount to about $1 billion governmentwide, of which DOD is expected to fund about $500 million. DOD has introduced policies and procedures and has established an organizational structure to manage its Small Business Innovation Research Program. GAO concludes that processes are in place to ensure that quality research is being done, that competitive procedures are being followed, and that the resulting products and processes are being used in military projects and programs.

GAO noted that: (1) DOD has implemented policies and procedures and has established an organizational structure to manage its SBIR programs; and (2) on the basis of these factors and the results of DOD's research under the program to date, GAO believes that processes are in place to help ensure that quality research is being conducted, that competitive procedures are being followed, and that the resulting products and processes are being used in military projects and programs.