September 28, 2022

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Little Organization Study Packages: Air Force Had Success in Some Areas with New Awards Course of action

What GAO Observed

In June 2018, Air Pressure executed a new “open topics” approach for issuing Modest Organization Innovation Investigation (SBIR) and Little Company Technological know-how Transfer (STTR) awards to draw in new smaller businesses and deliver technologies answers quicker to the Air Power. The new approach offers corporations far more latitude to propose technological know-how alternatives to meet up with Air Force’s demands. Expansion of the new course of action coincided with an general raise in Air Force’s SBIR/STTR energy. By the conclude of fiscal 12 months 2020, the new approach had mainly displaced the agency’s regular awards approach, in which unique challenges and mission wants have been discovered by Air Force (see determine).

Quantity of SBIR or STTR Awards, Dollars Awarded, and Quantity of Organizations that Acquired Awards beneath Air Force’s Open Matters or Typical SBIR/STTR Awards System, Fiscal Many years 2018 by means of 2020

*Companies that gained the two open subjects and traditional awards in fiscal yrs 2018 by 2020 are bundled extra than as soon as in the bar graph showing the variety of companies.

Air Force’s new process was more helpful than its typical SBIR/STTR awards system in attracting new companies and issuing awards immediately. According to GAO’s analysis of Air Pressure SBIR/STTR award data and federal contracting info, all around 43 % of the 1,001 open subjects awardees had no prior federal contracts, when compared to 14 p.c of the 771 traditional awardees. Also, Air Drive took in between 108 and 126 fewer days, on common, to difficulty open up subject areas awards in fiscal decades 2019 and 2020 for the initially SBIR/STTR software phase. An April 2021 review discovered that open matters awardees have been extra possible to attain subsequent enterprise money or non-SBIR/STTR contracts.

Details and evaluation gaps, nevertheless, limit Air Force’s capacity to assess the effectiveness of the new procedure. Its 2021 influence report did not address no matter whether participation amongst females-owned small enterprises amplified, as termed for in the committee report. Also, Air Power did not ensure the report’s information on participation by deprived companies and corporation dimension was existing and dependable. Making sure details in such reports are current and reliable would support Air Power in evaluating the achieve and efficiency of the open subjects approach.

Why GAO Did This Review

Air Drive is amid the greatest federal funders of SBIR and STTR awards to little firms. It issued in excess of 4,800 these awards in fiscal many years 2016 through 2020 to support companies’ technology commercialization and present technology methods to meet Air Force’s wants. Considering the fact that 2018, Air Drive has rapidly expanded the new open subjects SBIR/STTR awards approach.

The Home committee report accompanying the Countrywide Protection Authorization Act for Fiscal 12 months 2021 consists of provisions for GAO to critique the new system. This report examines (1) how Air Force applied its new awards process and (2) what is recognised about the process’s effectiveness—as in comparison to Air Force’s traditional SBIR/STTR awards process—in attracting a broad range of companies lowering award issuance moments and enabling commercialization through subsequent venture capital financial investment or non-SBIR/STTR federal contracts.

GAO analyzed Air Power SBIR and STTR award details from fiscal many years 2016 by way of 2020 and documents, including evaluations of the new process. GAO also analyzed deal data files for a non-generalizable sample of 17 awards, and interviewed Air Pressure and DOD officials and awardees.