The Nuclear Regulatory Commission's Proposed Withdrawal From Participation in the Small Business Innovation Research Program

GAO discussed the legality of the Nuclear Regulatory Commission's (NRC) proposed withdrawal from participation in the Small Business Innovation Research Program. GAO found that: (1) NRC stated that its projected extramural research and development (R&D) budget for fiscal years 1988 and 1989 was less than the required $100 million; (2) NRC had not received any R&D supplemental appropriations for the last 3 years to assist it in program participation; (3) since the Small Business Innovation Development Act neither provided for nor excluded issuance of a withdrawal procedure, the Small Business Administration (SBA) could utilize its policy directive authority to establish orderly withdrawal procedures consistent with program purposes; (4) correspondence between SBA and NRC did not constitute formal policy; (5) the Competition in Contracting Act did not mandate agency participation in the program; and (6) another agency that withdrew from the program provided funding to its awardees through the next year. GAO believes that SBA should develop a withdrawal process that would allow agencies to fulfill any existing commitments with small businesses through funding extensions.