Military Department SBIR Programs Use a Variety of Practices, Tools, and Administrative Funds to Support Technology Transition Efforts

The military department SBIR programs use several management  practices and tools to support technology transition efforts. We identified  some common transition elements across the programs, but also found  some differences in how each program approaches its technology  transition efforts. The programs’ technology transition efforts are  supported through use of administrative funds coming from their SBIR  budgets and other funds provided by their respective military department. Transition facilitators: Each military department SBIR program has  a network of transition facilitators who manage the Commercialization  Readiness Program and other enhancement efforts, as well as  broader SBIR activities that support technology transition. It provides  consulting services focused on improving the small businesses’  abilities to transition their SBIR products, including assistance in  transition planning and developing marketing tools. Administrative funds: The technology transition practices and tools  used by the programs are supported by administrative funds provided  through their SBIR budgets as well as non-SBIR sources from their  respective agencies. DOD Lacks Comprehensive Data on SBIR Technology Transition Outcomes, but Some Transition Successes Have Been Identified

We were unable to assess the extent of technology transition associated  with the military department SBIR programs because comprehensive and  reliable technology transition data are not collected. Tracking  mechanisms used by DOD—Company Commercialization Reports (CCR)  and the Federal Procurement Data System-Next Generation (FPDS- NG)—provide some information on SBIR Phase III activities, but these  mechanisms have significant gaps in coverage and data reliability  concerns that limit their transition tracking capabilities. The military  departments have additional measures through which they have identified  a number of successful SBIR transitions to DOD acquisition programs  and directly to fielded systems, but these efforts capture a limited amount  of transition information. DOD Is in the Early Stages of Developing a Plan to Improve Technology Transition Tracking and Reporting

The National Defense Authorization Act for Fiscal Year 2012 mandated  that DOD report new transition-related information to the Administrator of  the Small Business Administration who will report this information  annually to designated congressional committees. Standards for  internal control state that management should establish procedures to  ensure that it is able to achieve its objectives, such as being able to  compile and report consistent, complete, and accurate data.according to SBIR officials, tracking transition outcomes can be   Additionally,  challenging because the sometimes lengthy period between SBIR project  completion and transition to a DOD user can obscure a project’s SBIR  linkages. Although the Office of Small Business Programs acknowledges the  limitations of CCR data, the initial plan is to use this data source—viewed  by DOD as the best available—as the primary means for beginning to  address the new transition reporting requirements. Additionally, in an  effort to improve DOD’s future technology transition reporting and its  understanding of transition results in general, the Office of Small  Business Programs has initiated an assessment of different options for  enhancing transition data. However,  SBIR officials indicated that addressing technology transition reporting  requirements is viewed as a longer-term effort because of the challenges  we have discussed, and no specific plan including a time line has been  established for when DOD will be able to support those requirements. Without a plan that establishes a time line, it is unclear how and when  DOD will begin to provide the technology transition information expected  by Congress. Although Congress did not specify when reporting was to  begin, it expects DOD to report new transition-related information to the  Administrator of the Small Business Administration to meet the National  Defense Authorization Act for Fiscal Year 2012 requirement. Further, unless DOD communicates its plan and accompanying time line,  these committees may be unaware that the transition-related information  DOD plans to provide in the near-term to address the National Defense  Authorization Act for Fiscal Year 2012 requirements has data quality  issues. Establish a common definition of technology transition for all SBIR  projects to support annual reporting requirements;  2. Develop a plan to meet new technology transition reporting  requirements that will improve the completeness, quality, and  reliability of SBIR transition data; and  3. DOD partially concurred with our recommendations. With the  military department SBIR programs as our focus, we interviewed DOD  officials from the Office of Small Business Programs and the SBIR  program offices at the Air Force, Army, and Navy on practices and tools  used to facilitate technology transition. Similarly, to assess the extent to which SBIR technologies are  transitioning to DOD users, we met with officials in the Office of Small  Business Programs, military department SBIR program offices, and the  aforementioned military acquisition organizations to discuss what data are  available to measure transition of SBIR technologies to acquisition  programs, or directly to warfighters in the field.
Why GAO Did This Study

To compete in the global economy, the United States relies heavily on innovation through research and development. The Small Business Innovation Development Act of 1982 initiated SBIR programs across federal agencies in an effort to stimulate innovation through small businesses. DOD spends over $1 billion annually to support SBIR awards. The Conference Report accompanying the National Defense Authorization Act for Fiscal Year 2013 mandated that GAO assess the transition of technologies developed through the DOD SBIR program. This report examines (1) practices the military department SBIR programs use to facilitate the transition of SBIR technologies, and (2) the extent to which SBIR technologies are transitioning to DOD users, including major weapon system acquisition programs. GAO reviewed SBIR program documentation and data. GAO also interviewed officials from DOD's Office of Small Business Programs and the military departments to determine the practices used to facilitate technology transition and assess SBIR transition outcome data.

What GAO Found

The Small Business Innovation Research (SBIR) programs within the military departments use a variety of practices and tools to facilitate technology transition--the act of passing technologies developed in the science and technology environment on to users such as weapon system acquisition programs or warfighters in the field. GAO identified some common transition practices and tools across SBIR programs. For example, specific initiatives, such as the Commercialization Readiness Program, are used by each SBIR program and focus resources on enhancing technology transition opportunities. Transition facilitators are also used by each program to provide a network of personnel who manage SBIR activities that support technology transition. GAO also found some different practices and tools used to support technology transition efforts, such as the Navy Transition Assistance Program, which provides consulting services and helps showcase SBIR projects in an effort to improve small businesses' abilities to transition their projects. Transition facilitation efforts are supported by administrative funds provided through each program's SBIR budget and from other funds received from their respective military department. A recent increase in the amount of administrative funding that can come from SBIR budgets is expected to help the programs enhance their transition facilitation efforts.
GAO was unable to assess the extent of technology transition associated with the military department SBIR programs because comprehensive and reliable technology transition data for SBIR projects are not collected. Transition data systems used by DOD provide some transition information but have significant gaps in coverage and data reliability concerns. The military departments have additional measures through which they have identified a number of successful technology transitions, but these efforts capture a limited amount of transition results. SBIR transition reporting requirements recently established by Congress have led DOD to evaluate its options for providing transition data. GAO identified several challenges to attaining complete and accurate technology transition data. For instance, the lack of a common definition for technology transition across SBIR programs could cause reporting inconsistencies. Additionally, tracking transition can be challenging because of the sometimes lengthy period between SBIR project completion and transition to a DOD user. DOD initially plans to use transition data from Company Commercialization Reports--viewed by DOD as the best available source--to meet the new transition reporting requirements. However, SBIR officials indicated that addressing transition reporting requirements is a longer-term effort, and there is no specific plan including a time line for when DOD will be able to support those requirements. Without a plan that establishes a time line, it is unclear how and when DOD will begin to provide the technology transition information expected by Congress. Although Congress did not specify when reporting was to begin, it expects DOD to report new transition-related information to the Administrator of the Small Business Administration to meet the new reporting requirements. However, unless DOD communicates its plan and accompanying time line, the congressional committees to whom the Small Business Administration reports may be unaware of the data quality issues with the transition-related information DOD plans to use to support reporting in the near term.

What GAO Recommends

GAO recommends that DOD establish a common definition of technology transition for SBIR projects, develop a plan to track transition that will improve the completeness, quality, and reliability of transition data, and report to Congress its plan for meeting new SBIR technology transition reporting requirements. DOD partially concurred with these recommendations, but cited challenges to improving transition data. GAO believes options are available to address the challenges.