82 



The SBIR program is an important component of NASA's small business activities. 

 As we seek to strumline the Agency, we have undertaken a now ^}proach to the SBIR 

 program to improve program performance. Wo are establishing stronger links to NASA 

 mission needs. We have worked to develop subtopics with greater commercial potential 

 and to develop an evaluation system that places stronger emphasis on the proposer's intent 

 to commercialize. We also have taken steps to improve the process of soliciting and 

 contracting SBIR awardees to streamline management and roluce small firm impediments. 



While the sine qua non for SBIR is the contribution made to the Agency's 

 technology needs, complementary NASA objectives have consistently emphasized the 

 advancement of U.S. aerospace and non-aerospace capabilities through our many R&D 

 programs. Therefore, we are keenly interested in improving U.S. economic 

 competitiveness through SBIR. NASA has increased efforts to insure that otir small 

 business R&D parmers act to obtain commercial benefit ^m the SBIR and STTR awards 

 which will strengthen not only U.S. competitiveness, but increase the quantity and quality 

 of technology available for future NASA use. 



For the future, NASA is taking steps to increase the probability of direct application 

 of SBIR technology into NASA projects, to establish a peer review process to. increase the 

 commercialization rate of SBIR activities and to institute an electronic network-based 

 management system for tne SBIR process. 



On June 23, 1992, NASA presented testimony before the Conunittee on Science, 

 Space and Technology regarding the Small Business Development Act of 1994 

 (P.L. 102-564). I would like to read from that statement: 



The scope of NASA's programs and its associated budget are determined 

 through a very rigorous process in order to achieve a balanced set of 

 objectives, programs, and missions. Recent years have imposed severe 

 limitations on our budget and have forced the elimination of some major 

 initiatives as well as the stretchout of some ongoing programs. An increase 

 in the magnitude of the SBIR program, coupled with the proposed STTR 

 program, would significantly modify the balance that has been created. 

 NASA does not, therefore, support an increase in the program because it 

 would require reductions in other areas, 



That statement made in 1992 can be made more emphatically today. Since that 

 testimony, tiie SBIR budget has grown from $79.4 million to $123.9 million in FY 1995, 

 including STTR. When the statutory set-aside percentage increases to 2.5% in FY 1997, 

 the NASA SBIR budget is estimated to be $150 million. That is an increase of nearly 

 90% since FY 1992. 



NASA has challenged itself to expand opportunities with the small bu&iness 

 community within a shrinking budget. Since 1993, NASA has reduced tiie Agency's five- 



