The programs are currently authorized  through fiscal year 2022. In  addition to the requirements for the participating agencies, the  reauthorization act included requirements for those agencies’ Offices of  the Inspectors General (OIG). SBA and Participating Agencies Have Implemented About One-Third of Our Prior Recommendations

SBA has implemented 5 of the 17 recommendations we have made on  the SBIR and STTR programs and the participating agencies to which we  have made recommendations—the Departments of Health and Human  Services (HHS) and Defense (DOD)—have implemented 1 of the 3  recommendations we made. The  complete list of recommendations and the status of agencies’  implementation of the recommendations is included in appendix I.

		HHS Implemented Recommendation on Spending Requirements, and SBA Implemented Half of Recommendations Related to Those Requirements

From September 2013 through April 2017, we made six  recommendations to SBA and one to HHS to improve oversight and  implementation of the SBIR and STTR spending requirements. In our June 2014 report, we found that SBA did not request  that agencies submit data on such spending and recommended that  the agency clarify how to submit such data. In response to our  recommendation, SBA revised its annual report templates for data  reported since fiscal year 2013 to identify obligations for the programs  outside of awards, such as funds spent on discretionary technical  assistance to small businesses. This change has improved the  accuracy of participating agencies’ obligations data that they report to  SBA and that SBA, in turn, reports to Congress. We have made five  recommendations to SBA to improve compliance with these reporting  requirements. SBA has fully implemented one recommendation (see app. For example:  In each of our four reports on agencies’ compliance with spending and  other reporting requirements, we found that SBA had not submitted  timely reports to Congress on the SBIR and STTR programs. SBA issued its most recent required report to Congress on the SBIR  and STTR programs for fiscal year 2013 in March 2016. In our  September 2013 report, we concluded that without more rigorous  oversight by SBA and more timely and detailed reporting on the part  of both SBA and participating agencies, it would be difficult for SBA to  ensure that intended benefits of the SBIR and STTR programs were  being attained and that Congress was receiving critical information to  oversee these programs. SBA agreed  and stated at the time that it planned to implement the  recommendation. We  continue to believe that it is important for SBA to provide a timely  annual report to Congress to further improve oversight of the  programs. SBA  has not submitted a report to Congress on the administrative pilot  program for fiscal year 2014. SBA and DOD Plan to Implement April 2017 Recommendations on Fraud, Waste, and Abuse Prevention Requirements

In our April 2017 report on the SBIR and STTR programs, we reviewed  the implementation of fraud, waste, and abuse prevention measures by  SBA and the participating agencies and their OIGs. Appendix I: GAO’s Prior Recommendations on Small Business Research Programs

Table 2 lists our prior recommendations to the Small Business  Administration (SBA) and the agencies participating in the Small Business  Innovation Research (SBIR) and Small Business Technology Transfer  (STTR) programs, and the status of those recommendations, in four  areas: (1) spending requirements, (2) other reporting requirements, (3)  the administrative pilot program, and (4) fraud, waste, and abuse  prevention requirements. GAO-14-431.
Why GAO Did This Study

For about 35 years, federal agencies have made awards to small businesses for technology research and development through the SBIR program and, for the last 25 years, through the STTR program, totaling more than $40 billion. Currently, 11 agencies participate in the SBIR program, and 5 of these agencies also participate in the STTR program. The SBIR/STTR Reauthorization Act of 2011 included provisions for GAO to review aspects of the programs.
This statement addresses GAO's key findings and recommendations related to the SBIR and STTR programs since 2012. This statement is based on GAO reports issued in response to the act's provisions from November 2012 through April 2017. Those reports examined SBA's and agencies' compliance with spending and other reporting requirements for the programs and their implementation of fraud, waste, and abuse prevention measures. For those reports, GAO compared documentation from SBA and participating agencies with the respective requirements. In April 2017, GAO updated the status of its prior recommendations.

What GAO Found

The Small Business Administration (SBA), which oversees the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, and agencies participating in the programs have implemented about one-third of GAO's 20 prior recommendations regarding the programs. From September 2013 through April 2017, GAO made 17 recommendations to SBA and 3 to participating agencies to improve the oversight and implementation of spending requirements; reporting requirements; the administrative pilot program; and fraud, waste, and abuse prevention requirements. SBA has implemented 5 recommendations, and participating agencies have implemented 1 (see figure), although GAO made 4 of these recommendations to SBA and 2 to participating agencies in April 2017.
SBA and participating agencies have taken some actions to address GAO's recommendations. For example, in June 2014, GAO recommended that SBA clarify how agencies are to submit data on allowable spending. In response, SBA revised its annual report template, requesting that agencies identify obligations for the programs outside of awards. This change has improved the accuracy of the data that agencies report to SBA. However, SBA and the participating agencies have not fully implemented 14 recommendations that, if implemented, could improve the oversight and implementation of the programs. For example, in each of its four reports on agencies' compliance with spending and other reporting requirements, GAO found that SBA had not submitted required annual reports to Congress on the programs. SBA issued its most recent required report on the programs for fiscal year 2013 in March 2016. In a September 2013 report, GAO concluded that without more rigorous oversight by SBA and more timely and detailed reporting, it would be difficult for SBA to ensure that intended benefits of the programs were being attained and that Congress was receiving critical information to oversee these programs. GAO recommended that SBA provide Congress with a timely annual report, as required by the act. SBA agreed and stated that it planned to implement the recommendation. However, SBA has not yet done so and, as of April 2017, SBA did not have an estimated date for submitting its reports for fiscal years 2014 through 2016. GAO continues to believe that it is important for SBA to provide a timely annual report to Congress to further improve oversight of the programs.

What GAO Recommends

GAO has made 17 recommendations to SBA to improve oversight and implementation of the SBIR and STTR programs. SBA generally agreed with the recommendations. SBA has taken or described planned actions to address the recommendations, which GAO will continue to monitor.