13 



thorization legislation provides for discretionary technical assist- 

 ance that can be implemented by Federal agencies to assist SBIR 

 awardees in, for example, commercialization efforts. Due to its com- 

 plexity, as we have already heard, no agency has implemented this 

 provision. 



First, we recommend a modification to the legislation, so that a 

 small fraction of SBIR set-aside funds can be used to provide com- 

 mercialization assistance to SBIR awardees. This would mean 

 projects like the DOE commercialization assistance project could be 

 funded from the SBIR set aside. In the past this project has been 

 supported by non-SBIR funds. 



The conduct of high quality SBIR Program which serves the 

 small business community requires a significant commitment by 

 the Federal agencies. The provision in the SBIR reauthorization 

 legislation, which prevents agencies from using SBIR set-aside 

 funds for administrative support, is a serious impediment and can 

 hamper the program's operation and the service it provides to 

 small businesses. 



Second, we recommend that the legislation allow the use of a 

 small fraction of the SBIR set-aside funds to support administra- 

 tive costs of the program's operation. 



Finally, I would Tike to discuss briefly the STTR pilot program 

 which has been in operation for just over 1 year. During this time, 

 the Department has issued two Phase I solicitations, and in re- 

 sponse to the first one for fiscal year 1994, we received 487 propos- 

 als and funded 21 of them. The results of the evaluation of the pro- 

 posals indicate the scientific and technical quality of the funded 

 projects is high. About two-thirds of the nonprofit research institu- 

 tions participating with the small businesses in these projects are 

 DOE national laboratories and about one-third are universities. 



Although it is far too early to evaluate the STTR Program, it ap- 

 pears to be an effective vehicle for combining the scientific and 

 technical expertise of researchers at national laboratories and uni- 

 versities with the commercialization skills and incentive of small 

 businesses to develop products and processes for the marketplace. 



This concludes my prepared testimony. I would be happy to an- 

 swer your questions. 



[Dr. Barish's statement may be found in the appendix.] 



Chairman Torkildsen. Thank you very much. Dr. Barish. Now 

 completing our panel is Dr. Robert Norwood of NASA. Dr. Nor- 

 wood. 



TESTIMONY OF DR. ROBERT L. NORWOOD, DIRECTOR, COM- 

 MERCIAL DEVELOPMENT AND TECHNOLOGY TRANSFER DI- 

 VISION, OFFICE OF SPACE ACCESS AND TECHNOLOGY, NA- 

 TIONAL AERONAUTICS AND SPACE ADMINISTRATION 



Dr. Norwood. Good morning, Mr. Chairman and distinguished 

 members of the subcommittee. It is a pleasure to appear before the 

 subcommittee today to discuss NASA's SBIR and STTR Programs. 

 NASA has over 10 years of experience with SBIR and has made 

 nearly 4,300 Phase I and Phase II awards. We believe that ener- 

 getic and high quality small businesses have made valuable con- 

 tributions of new and innovative technology which support NASA's 

 aeronautics and space research mission. 



90-136 - qt; _ o 



