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year budget plan by over 30%. We have reduced support contracts and downsized our 

 woricforce. We have eliminated programs. We are in the midst of a total agency 

 workforce review which will result in profound changes at NASA, in response to the 

 President's challenge in the FY 1996 budget to find an additional $5 billion in NASA 

 reductions between FY 1997 and FY 2000. These reductions will call for sweeping 

 changes at NASA. We are taking aggressive steps to reinvent NASA while maintaining a 

 balanced space and aeronautics program. We have made great strides in bringing the small 

 business community into ongoiivg Agency activities. The restructuring of NASA will bring 

 even more opportunities for small businesses to participate in NASA programs. 



NASA supports the SBIR program, and applauds its success. However, we are 

 concerned that, in the current environment of diminishing budgets, NASA docs not have 

 the flexibility in terms of total resources to continue to balance the magnitude of the 

 resource demands of the SBIR program while maintaining the effectiveness and vitality of 

 ongoing NASA programs. Consequently, NASA suggests that it may be in order to 

 reexamine the current and planned statutory target levels for the SBlk program as a 

 percentage of ongoing Federal R&D efforts. Wc would be happy to discuss NASA's 

 experience and achievements in the SBIR program, and our concerns about resource 

 limitations if you wish. 



