January 9, 1998 -- SSTI Weekly Digest

NSF RECLASSIFIES R&D BUDGET, CUTTING SBIR FUNDS

The National Science Foundation (NSF) has decided to reclassify its R&D budget, which will result in a reduction of funding available for its Small Business Innovation Research program (SBIR). The reclassification was recommended by Inspector General Linda Sundro. NSF Director Neal Lane has concurred with the recommendations.

Each agency with an extramural R&D budget in excess of $100 million must set aside a percentage of their extramural R&D funding for the SBIR program. In FY 1997, the SBIR set-aside was 2.5%. Congress also authorized a smaller set-aside, currently 0.15% of the extramural R&D budget, for the Small Business Technology Transfer (STTR) program.

To determine the amount of the set-aside from the R&D budget, Congress defined research or research and development as the "systematic, intensive stud[ies] directed toward greater knowledge or understanding of the subject studied, or a systematic application of that knowledge to produce new technologies." In the opinion of the Inspector General, many of the expenditures included in NSF's extramural R&D budget do not fit this definition.

In particular, the report recommended that NSF exclude $58.36 million in education and training funds and $42.25 million in program support costs from the R&D budget amount used to calculate the SBIR and STTR set-asides. By doing so, the SBIR and STTR set-asides will be reduced annually by approximately $2.5 million and $150,000 respectively. NSF staff are in the process of defining the new base from which the SBIR and STTR allocations will be calculated.

By reclassifying the extramural R&D, "Over a 5-year period, $13.25 million that would have been used for these set-asides would be available for NSF to use for the highest priority programs to further scientific research and education," the IG's report says. The report quotes Director Lane as saying "this will lead to better utilization of NSF resources."

This reclassification concerns SBIR advocates in part because NSF piloted the initial SBIR program and has been a strong supporter of the program. Concern has been raised regarding the possibility that other agencies may attempt to reclassify their R&D budgets as well resulting in greater reductions in funding.

1997 ECONOMIC REPORT CARD AVAILABLE

The Corporation for Enterprise Development (CFED) has released its 1997 Development Report Card for the States. The annual report card assesses the strengths and weaknesses of each state's economy and its potential for future growth. Its rankings are watched closely by state development officials.

The report examines approximately 60 factors important to a state's economic health and development and grades each state on three indexes. The indices measure (1) economic performance -- how well the state's economy is performing; (2) business vitality -- how vital the businesses in the state are; and (3) development capacity -- the state's ability to support future growth or recover from economic adversity. In addition, the states are ranked, but not graded, on their tax and fiscal systems.

The report grades states in several subcategories within the larger indexes. The Technology Resources subindex includes the following measures:

Copies of the report are available for $75 each from the Corporation for Enterprise Development, 202/408-9788.

COSSI CALLS FOR CONCEPT PAPERS IN LIEU OF SOLICITATION

The Department of Defense (DoD) will not conduct competitions in FY 1998 for the Commercial Operations and Support Savings Initiative (COSSI). Instead, the next funding cycle for this dual-use technology program, designed to upgrade existing weapons systems with commercial goods and services, will be made in FY 1999.

Although DoD is not accepting COSSI proposals for funding at this time, the Department is seeking concept papers from potential proposers. The concept paper, a five page summary of a dual use technology idea, is due to COSSI by February 17, 1998. COSSI's goal is to encourage proposals that have a better chance of being selected and to discourage less promising ones. This process is meant to help the potential proposer make an informed decision on whether to invest the time and money to prepare a full proposal. Concept papers are not required in order to submit a full proposal for FY 1999. COSSI's mission is to develop and test a method for reducing DoD operations and support costs by routinely inserting commercial items into fielded military systems. COSSI is a two stage program. The first stage is the cost-shared adaptation, development and testing of a product based on a commercial item. The second stage is the acquisition and installation of the products on a fielded military system.

DoD anticipates that there will be approximately $100 million available for new Stage I COSSI projects in FY 1999. COSSI expects to issue its solicitation in August, 1998 with proposals due sometime in the Fall and announcements made by January, 1999. For more information on concept paper requirements, contact COSSI at 800/382-5873 or visit their website at www.jdupo.darpa.mil/jdupo

PUBLIC COMMENTS & WORKING GROUP SOUGHT TO SET IVI RESEARCH AGENDA

The U.S. Department of Transportation (DOT) has announced the formation of the Intelligent Vehicle Initiative (IVI), a major component of the Intelligent Transportation Systems America program. IVI represents DOT's efforts to merge all vehicle-focused research activities into a multi-agency research and development program. DOT is seeking assistance from industry and stakeholders on the planning of this new initiative.

IVI's purpose is to accelerate the development, availability, and use of driving assistance and control intervention systems to reduce motor vehicle crashes. These systems may include provisions for warning drivers, recommending control actions, intervening with driver control, and introducing temporary or partial automated control of the vehicle in hazardous situations. IVI systems are also intended to improve mobility and highway efficiency through the application of selected motorist information services.

IVI covers applications for passenger cars, light trucks, vans, sports and utility vehicles, commercial trucks, and buses on all types of highways. Special applications, such as emergency response, enforcement, and highway maintenance vehicles, are also included.

DOT is asking for comments on the IVI and for expressions of interest to participate in a working group to provide information to assist in defining and implementing the program. To facilitate the discussion, DOT has issued two background documents. The first is the IVI Business Plan which states the program's vision, mission and goals. The second document is a Request for Information, published in the Federal Register on December 23, which asks for public comment on the content and organization of the program.

Both documents are available on the Internet at www.its.dot.gov/ivi/index.htm The closing date for comments to the Request for Information is January 30.

CORRECTION

The December 19, 1997 issue of the SSTI Weekly Digest reported an incorrect FY 1998 appropriation for the Advanced Technology Program (ATP). The correct amount is $192.5 million.

State Science & Technology Institute
5015 Pine Creek Drive
Westerville, OH 43081
Phone: (614) 901-1690
Fax: (614) 901-1696
Email: ssti@ssti.org

State	Rank	Grade	State	Rank	Grade
MA	1	A	MT	26	C
CO	2	A	AL	27	C
NM	3	A	WI	27	C
MD	4	A	HI	29	C
CT	5	A	GA	30	C
RI	6	A	IA	31	C
UT	6	A	ND	32	C
DE	8	A	WY	33	C
CA	9	A	MO	34	C
NY	10	A	TN	35	D
VA	11	B	AK	36	D
VT	12	B	IN	37	D
PA	13	B	NE	38	D
NH	14	B	KS	39	D
NJ	14	B	NV	40	D
OR	16	B	FL	41	D
AZ	17	B	OK	42	D
WA	18	B	LA	43	D
MI	19	B	ME	44	D
OH	20	B	SC	45	D
TX	21	C	MS	46	F
ID	22	C	WV	47	F
IL	23	C	SD	48	F
MN	23	C	KY	49	F
NC	25	C	AR	50	F