cent thereafter. In 1992, Congress added a pilot program entitled 

 the Small Business Technology Transfer Program which directs 

 small businesses which wish to apply for STTR grants to partner 

 with a nonprofit research institution, normally a university, with 

 the small business doing not less than 40 percent of the work and 

 the research institution doing not less than 30 percent of the work. 



We will be interested in hearing how the pilot has been proceed- 

 ing and if there is any measurable difference between the work 

 product small businesses generate under SBIR, as opposed to what 

 they generate under STTR. SBIR has, by all accounts, been a tre- 

 mendous success. Through 1994, almost $5 billion in awards has 

 been made funding 33,000 projects out of the 215,000 proposals 

 which agencies have received. In 1995, it is expected that almost 

 $1 billion of federally sponsored research funding 55,000 projects 

 will be awarded. These projects range from neural network comput- 

 ers to natural insect control compounds to tumor detection drugs. 



But despite the success, the program must be examined and sev- 

 eral critical questions asked. How can we continue the growth of 

 this program with ever-shrinking defense and other dollars? What 

 effect will this Congress' efforts to reduce the deficit have on extra- 

 mural research? How can we increase the number of small busi- 

 nesses which participate and which are successful in getting 

 awards? How do we guarantee that these companies' intellectual 

 property rights are preserved and protected? 



We hope that these and many other questions will be answered 

 today. I will yield to the ranking member of the subcommittee 

 when he is able to arrive. 



Now I will introduce our witnesses for today. We are very fortu- 

 nate to have both users and administrators and advocates all on 

 the same panel. They are Mr. Constantine Bassilakis from Grey 

 Fox Technologies; Mr. Roger Little, president of the Spire Corpora- 

 tion; the Honorable Jere Glover, who is certainly no stranger to 

 this committee, who is Chief Counsel for Advocacy for the Small 

 Business Administration; Mr. Robert Neal, Associate Deputy Ad- 

 ministrator for Government Contracting; and Mr. Victor Rezendes, 

 Director of Ener^ and Science Issues for United States GAO; Dr. 

 Samuel Barish, SBIR/STTR Program Manager for DOE; and Dr. 

 Robert Norwood of Commercial Development and Technology 

 Transfer with NASA. 



Thank you gentlemen for coming to testify today. I would like to 

 start with Mr. Constantine Bassilakis. 



TESTIMONY OF CONSTANTINE A. BASSILAKIS, PRESIDENT, 

 GREY FOX TECHNOLOGIES, INC., ANDOVER, MASSACHUSETTS 



Mr. Bassilakis. Good morning, Chairman Torkildsen and mem- 

 bers of the subcommittee. 



Chairman TORKILDSEN. Mr. Bassilakis, I apologize for interrupt- 

 ing. All of your statements will be incorporated into the record as 

 written. If I could ask each witness to summarize. We would ask 

 you to please hold your summary to 5 minutes and we have the lit- 

 tle indicator to let you know your time constraint, and thank you 

 very much. 



Mr. Bassilakis. My name is Connie Bassilakis and I am presi- 

 dent of Grey Fox Technologies, a small business firm specializing 



