Small Business Research Programs: Agencies Should Further Improve Award Timeliness
GAO-22-104677
Published: Oct 14, 2021. Publicly Released: Oct 14, 2021.
Fast Facts
Federal agencies participating in the Small Business Innovation Research and Small Business Technology Transfer programs awarded over $3 billion to small businesses in FY 2020 to develop and commercialize new technologies. Generally, Small Business Administration policy calls for businesses to be notified of an award within 90 days and to receive it within 180 days.
Award timeliness has improved overall since FY 2017. However, 20 of the 29 agencies we reviewed—including 12 within DOD—have not consistently issued awards on time. Eleven agencies issued at least 50% of their awards late in 2020. We made 22 recommendations to improve timeliness.
Highlights
What GAO Found
Most federal agencies that participate in the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs did not consistently issue timely awards to small businesses in fiscal year 2020. The Small Business Administration's (SBA) SBIR/STTR policy directive recommends that most agencies issue such awards within 180 days of the closing date of the solicitation. On the one hand, timeliness across agencies has improved since fiscal year 2017. Agencies issued 69 percent of awards within the recommended time that year, compared to 82 percent of awards that we reviewed for fiscal year 2020. On the other hand, only nine of the 29 participating agencies were consistently on time in fiscal year 2020, meaning they issued at least 90 percent of their awards within 180 days. This lack of timeliness dates back at least 5 years: 20 agencies were routinely late during that period, issuing fewer than 90 percent of their awards on time for 3 or more of the 5 fiscal years since 2016 (see figure).
Total Number and Value of Late Awards Issued by Routinely Late Agencies
Nearly all of the agencies that were routinely late in issuing awards to small businesses have taken some steps to address risks to the timeliness of their awards. Such risks included not having standardized proposal review procedures and a lack of dedicated staff to issue awards. Agencies have taken some steps to improve timeliness by, for example, streamlining proposal reviews and the award contracting process. However, they have not fully addressed risks they identified or evaluated steps already taken and may continue to issue late awards until they do so.
Although the Department of Defense (DOD) has taken some steps to improve timeliness, it has not established a required pilot program. According to officials, DOD has not done so, in part, because it would be too difficult to standardize practices across the department. GAO found that 12 of the 13 DOD participating agencies are not consistently issuing timely awards to small businesses. Without addressing the pilot program requirements, or by not reporting to Congress if the requirements are infeasible, DOD may be missing an opportunity to obtain technologies more quickly, as well as sustain small businesses that can provide such technologies.
Why GAO Did This Study
SBIR and STTR participating agencies awarded over $3 billion to small businesses in fiscal year 2020 to develop and commercialize new technologies. Timely issuance of these awards can affect the speed with which small businesses receive funds and begin work, according to the SBA.
SBA's SBIR/STTR policy directive provides time frames for notification and award issuance—90 days for award notification and 180 days for award issuance. The Fiscal Year 2019 National Defense Authorization Act (NDAA) included a provision for GAO to review the timeliness of award notification and issuance. The Fiscal Year 2021 NDAA conference report included a provision for GAO to review instances of agencies not following through with awards. This report, GAO's third, examines, among other things: (1) agencies' timeliness in notification and issuance, (2) the extent to which agencies have addressed risks to award timeliness, and (3) the extent to which DOD established a pilot program to improve timeliness.
GAO analyzed SBIR and STTR award data, reviewed documentation, interviewed SBA officials, and sent a questionnaire to all 29 participating agencies and select small businesses.
Recommendations
GAO is making 22 recommendations to 20 federal agencies, including to improve the timeliness of awards to small businesses. Agencies concurred with 20 recommendations. DOD partially concurred with one and did not concur with another recommendation that GAO maintains still is warranted.
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Administration for Community Living | The Administrator of the Administration for Community Living should evaluate the effectiveness of steps taken to improve SBIR award timeliness and take any necessary additional steps in order to consistently meet SBA award timeliness guidelines. (Recommendation 1) |
Open – Partially Addressed
HHS agreed with this recommendation. According to an April 2022 HHS letter responding to our report as well as additional information provided by the Administration for Community Living (ACL), ACL adjusted its FY22 proposal review and award schedules to shorten them, and adjusted its phase II schedule so as to reduce the gap in funding between phases. ACL's response stated that it plans to further adjust its phase II award schedule in FY23. ACL also noted that it will evaluate the efficacy of these changes and assess the need for future steps. In December 2023, we obtained and analyzed publicly available ACL award data for FY22. Our analysis indicated that ACL did not meet SBA's award timeliness guidelines in FY22. Further, in combination with prior fiscal years, ACL has not met SBA's timeliness guidelines in at least 3 of the preceding 5 years based on available data. Going forward, we will follow up to obtain data on ACL's award timeliness in subsequent fiscal years to determine if actions the agency has taken have resulted in it being able to consistently meet SBA's award timeliness guidelines.
|
| Department of Energy | The Director of the Advanced Projects Research Agency-Energy should evaluate the effectiveness of steps taken to improve SBIR and STTR award timeliness and take any necessary additional steps in order to consistently meet SBA award timeliness guidelines. (Recommendation 2) |
Open – Partially Addressed
In its January 2022 letter responding to our report, DOE's Advanced Research Projects Agency-Energy (ARPA-E) concurred with this recommendation. ARPA-E stated it was evaluating its pilot to determine whether providing fixed-amount grants for some projects speeds award issuance, as well as other potential steps to accelerate evaluation, selection, and negotiation procedures for issuing larger awards (typically as cooperative agreements) that combine multiple SBIR/STTR phases. In March 2022, ARPA-E provided additional information stating that it had concluded using fixed-amount grants for certain projects up to $500,000 speeds award issuance and ARPA-E planned to continue using this award type. Additionally, the agency stated it is prioritizing the negotiation of cooperative agreements for small business awards and is developing schedules that include anticipated notification and award issuance dates that are consistent with timeliness guidelines. ARPA-E reiterated these actions in a December 2022 update. In December 2023, we obtained and analyzed publicly available ARPA-E award data for FY22. Our analysis indicated that ARPA-E did not meet SBA's award timeliness guidelines in FY22. Further, in combination with prior fiscal years, ARPA-E has not met SBA's timeliness guidelines in at least 3 of the preceding 5 years based on available data. Going forward, we will follow up to obtain data on ARPA-E's award timeliness in subsequent fiscal years to determine if actions the agency has taken have resulted in it being able to consistently meet SBA's award timeliness guidelines.
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| Department of Agriculture | The Secretary of Agriculture should evaluate the effectiveness of steps taken to improve SBIR award timeliness and take any necessary additional steps in order to consistently meet SBA award timeliness guidelines. (Recommendation 3) |
Open – Partially Addressed
In its March 2022 letter responding to our report, USDA concurred with this recommendation. In its letter, USDA said it would take actions to implement the recommendation, including requesting the same review award timeline allowances afforded to the National Science Foundation (NSF) and the National Institutes of Health (NIH). In further documentation provided to GAO in March 2022, USDA stated it would pursue legislative action to request extended timeframes. Furthermore, USDA provided documentation describing how it is taking a more aggressive approach in managing its SBIR program timelines, such as by increasing email reminders to staff to ensure their Phase I panel managers were in place prior to solicitation, and holding awardee selection meetings after each of the 10 SBIR topic area panels concluded rather than waiting for all panels to conclude. Our evaluation of USDA's SBIR award data shows that, initially, USDA's timeliness improved from FY2020 to FY2021. In December 2023, we obtained and analyzed publicly available USDA award data for FY22. Our analysis indicated that USDA met SBA's award timeliness guidelines in FY22. However, in combination with prior fiscal years, USDA has not met SBA's timeliness guidelines in at least 3 of the preceding 5 years based on available data. Going forward, we will follow up to obtain data on USDA's award timeliness in subsequent fiscal years to determine if actions the agency has taken have resulted in it being able to consistently meet SBA's award timeliness guidelines.
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| Department of the Air Force | The Secretary of the Air Force should evaluate the effectiveness of steps taken to improve SBIR and STTR award timeliness and take any necessary additional steps in order to consistently meet SBA award timeliness guidelines. (Recommendation 4) |
Open – Partially Addressed
In its February 2022 letter responding to our report, DOD concurred with this recommendation. According to the letter, the Department of the Air Force developed a life cycle process to execute its SBIR/STTR program and will evaluate the effectiveness of steps taken to improve SBIR and STTR award timeliness, taking any necessary steps in order to consistently meet SBA award timeliness guidelines. The Air Force provided additional information in which it stated that it is developing an integrated master schedule that looks at tasks and durations across the steps in its life cycle process. In December 2023, we obtained and analyzed publicly available Air Force award data for FY22. Our analysis indicated that the Air Force did not meet SBA's award timeliness guidelines in FY22. Further, in combination with prior fiscal years, the Air Force has not met SBA's timeliness guidelines in at least 3 of the preceding 5 years based on available data. Going forward, we will follow up to obtain data on the Air Force's award timeliness in subsequent fiscal years to determine if actions the agency has taken have resulted in it being able to consistently meet SBA's award timeliness guidelines.
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| Department of the Army | The Secretary of the Army should evaluate the effectiveness of steps taken to improve SBIR award timeliness and take any necessary additional steps in order to consistently meet SBA award timeliness guidelines. (Recommendation 5) |
Open – Partially Addressed
In its February 2022 letter responding to our report, DOD concurred with this recommendation. According to the letter, the Department of the Army was implementing several initiatives to improve SBIR award timeliness and meet all SBA award timeliness guidelines, including: establishing a centralized Army SBIR Contracting Center of Excellence (CCOE) for centralized execution of all SBIR awards; establishing simplified and streamlined proposal, review and contract package requirements to expedite awards; and leveraging all procurement flexibilities to improve SBIR award timeliness. The Army also provided the Memorandum of Understanding to establish the CCOE and other documentation stating that the CCOE was fully operational in March 2022--covering 80 percent of Army's SBIR awards with the intent to expand the coverage to the remainder of the Army's SBIR awards in fiscal year 2023. Additionally, the Army provided information stating that it had implemented a new proposal evaluation tool, which enables concurrent reviews. In December 2023, we obtained and analyzed publicly available Army SBIR award data for FY22. Our analysis indicated that the Army did not meet SBA's award timeliness guidelines in FY22. Further, in combination with prior fiscal years, the Army has not met SBA's timeliness guidelines in at least 3 of the preceding 5 years based on available data. Going forward, we will follow up to obtain data on Army's SBIR award timeliness in subsequent fiscal years to determine if actions the agency has taken have resulted in being able to consistently meet SBA's award timeliness guidelines.
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| Department of the Army | The Secretary of the Army should evaluate the effectiveness of steps taken to improve STTR award timeliness and take any necessary additional steps in order to consistently meet SBA award timeliness guidelines. (Recommendation 6) |
Open
In its February 2022 letter responding to our report, DOD concurred with this recommendation. According to the letter, the Department of the Army was implementing several initiatives to improve STTR award timeliness and meet all SBA award timeliness guidelines, including: establishing simplified and streamlined proposal review and contract package requirements to expedite awards and leveraging all procurement flexibilities to improve STTR award timeliness. Furthermore, the Army provided additional documentation stating that it intends to expand its SBIR Contracting Center of Excellence (CCOE) for centralized execution of all SBIR awards to also include all of the Army's STTR awards in FY 2023. As of March 2022, the Army stated it had not yet evaluated the effectiveness of previous steps taken to improve STTR award timeliness, and was awaiting the outcome of the centralized contracting effort for SBIR awards to determine how this change affects award timeliness. In December 2023, we obtained and analyzed publicly available Army STTR award data for FY22. Our analysis indicated that the Army did not meet SBA's award timeliness guidelines in FY22. Further, in combination with prior fiscal years, the Army has not met SBA's timeliness guidelines in at least 3 of the preceding 5 years based on available data. Going forward, we will follow up to obtain data on Army's STTR award timeliness in subsequent fiscal years to determine if actions the agency has taken have resulted in it being able to consistently meet SBA's award timeliness guidelines.
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| Centers for Disease Control and Prevention | The Director of the Centers for Disease Control and Prevention should evaluate the effectiveness of steps taken to improve SBIR award timeliness and take any necessary additional steps in order to consistently meet SBA award timeliness guidelines. (Recommendation 7) |
Open – Partially Addressed
HHS agreed with this recommendation. According to an April 2022 HHS letter responding to our report as well as additional information provided by the Centers for Disease Control and Prevention (CDC), the CDC stated its intent to take steps to identify the organizational processes, systems, and policies that may offer opportunities for increased efficiencies. CDC also stated it had modified the roles and responsibilities of staff engaged in the SBIR program and provided documentation of these roles and responsibilities, as of November 2021. In May 2023, CDC reported to GAO that it had changed its SBIR funding process with an aim to increase applicant volume for its SBIR awards, and thereby, to improve award timeliness. CDC also reported that it had conferred with a cross-HHS workgroup resulting in recommendations for process measures to improve timeliness. In December 2023, we obtained and analyzed publicly available CDC award data for FY22. Our analysis indicated that CDC did not meet SBA's award timeliness guidelines in FY22. Further, in combination with prior fiscal years, CDC has not met SBA's timeliness guidelines in at least 3 of the preceding 5 years based on available data. Going forward, we will follow up to obtain data on CDC award timeliness in subsequent fiscal years to determine if actions the agency has taken have resulted in it being able to consistently meet SBA's award timeliness guidelines.
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| Department of Homeland Security | The Assistant Secretary for Countering Weapons of Mass Destruction should evaluate the effectiveness of steps taken to improve SBIR award timeliness and take any necessary additional steps in order to consistently meet SBA award timeliness guidelines. (Recommendation 8) |
Closed – Implemented
In its April 2022 letter responding to our report, DHS concurred with this recommendation. According to the letter as well as other information DHS provided, the Countering Weapons of Mass Destruction office (CWMD) instituted monthly status meetings with the DHS Office of Procurement Operations, which handles contracting for DHS' SBIR awards, to discuss the upcoming solicitation schedule, policy changes, and process improvement opportunities. These meetings began in October 2021. CWMD also began preparing packages for upcoming awards earlier in the process to address contracting timing challenges. CWMD's award timeliness improved for FY 2021. In December 2023, we obtained and analyzed publicly available DHS award data for FY22, which indicated that DHS met SBA's award timeliness guidelines in that year as well. We followed up with the agency and a DHS official confirmed this in March 2023. Because DHS took steps to meet SBA's award timeliness guidelines in at least 3 of the preceding 5 years of available data (as of December 2023), we consider the recommendation implemented.
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| Department of Defense | The Director of the Defense Advanced Research Projects Agency should evaluate the effectiveness of steps taken to improve SBIR and STTR award timeliness and take any necessary additional steps in order to consistently meet SBA award timeliness guidelines. (Recommendation 9) |
Open
In its February 2022 letter responding to our report, DOD and the Defense Advanced Research Projects Agency (DARPA) did not concur with this recommendation. However, DARPA stated its intent to continue to conduct reviews of its programs and procedures to keep making improvements. In other information provided to GAO, DARPA stated that its SBIR/STTR program personnel continue to meet regularly with contracting agents to offer SBIR/STTR training and discuss the status of un-awarded contracts. In addition, DARPA stated that it tracks timeliness metrics on its internal SBIR/STTR Information Portal. In December 2023, we obtained and analyzed publicly available DARPA award data for FY22. Our analysis indicated that DARPA did not meet SBA's award timeliness guidelines in FY22. Further, in combination with prior fiscal years, DARPA has not met SBA's timeliness guidelines in at least 3 of the preceding 5 years based on available data. Going forward, we will follow up to obtain data on DARPA's award timeliness in subsequent fiscal years to determine if actions the agency has taken have resulted in it being able to consistently meet SBA's award timeliness guidelines.
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| Department of Defense | The Assistant Secretary of Defense for Health Affairs should evaluate the effectiveness of steps taken to improve the Defense Health Agency's SBIR and STTR award timeliness and take any necessary additional steps in order to consistently meet SBA award timeliness guidelines. (Recommendation 10) |
Open – Partially Addressed
In its February 2022 letter responding to our report, DOD concurred with this recommendation. According to the letter, as of October 2021, a dedicated and fully staffed contracting branch was created for Defense Health Agency (DHA) SBIR/STTR to provide focused customer support and to improve award timeliness. Furthermore, the program office and the dedicated contracting support meet biweekly to further identify time-to-award improvement targets and to subsequently evaluate the effectiveness of steps taken. In December 2023, we obtained and analyzed publicly available DHA award data for FY22. Our analysis indicated that DHA did not meet SBA's award timeliness guidelines in FY22. Further, in combination with prior fiscal years, DHA has not met SBA's timeliness guidelines in at least 3 of the preceding 5 years based on available data. Going forward, we will follow up to obtain data on DHA's award timeliness in subsequent fiscal years to determine if actions the agency has taken have resulted in it being able to consistently meet SBA's award timeliness guidelines.
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| Defense Logistics Agency | The Director of the Defense Logistics Agency should evaluate the effectiveness of steps taken to improve SBIR and STTR award timeliness and take any necessary additional steps in order to consistently meet SBA award timeliness guidelines. (Recommendation 11) |
Open – Partially Addressed
In its February 2022 letter responding to our report, DOD concurred with this recommendation. According to the letter, the Defense Logistics Agency (DLA) adjusted internal process timeframes to better enable it to meet required notification and recommended issuance timeframes. For example, DLA implemented a 30-day limit on its internal proposal evaluation process and is working with contracting officers to improve the timeliness of the contract process. In December 2023, we obtained and analyzed publicly available DLA award data for FY22. Our analysis indicated that DLA did not meet SBA's award timeliness guidelines in FY22. Further, in combination with prior fiscal years, DLA has not met SBA's timeliness guidelines in at least 3 of the preceding 5 years based on available data. Going forward, we will follow up to obtain data on DLA's award timeliness in subsequent fiscal years to determine if actions the agency has taken have resulted in it being able to consistently meet SBA's award timeliness guidelines.
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| Department of Defense | The Assistant Secretary of Defense for Sustainment should evaluate the effectiveness of steps taken to improve the Defense Microelectronics Activity's SBIR and STTR award timeliness and take any necessary additional steps in order to consistently meet SBA award timeliness guidelines. (Recommendation 12) |
Open – Partially Addressed
In its February 2022 letter responding to our report, DOD concurred with this recommendation. According to the letter, the Defense Microelectronics Activity (DMEA) established a new schedule for reviewing and selecting proposals, notifying awardees, and issuing awards that should enable it to meet the SBA timeframes. In further information provided to GAO, DMEA officials stated that they will continue to follow up with all contact points within their internal process to ensure the agency is on track with meeting timelines. In December 2023, we obtained and analyzed publicly available DMEA award data for FY22. Our analysis indicated that DMEA did not meet SBA's award timeliness guidelines in FY22. Further, in combination with prior fiscal years, DMEA has not met SBA's timeliness guidelines in at least 3 of the preceding 5 years based on available data. Going forward, we will follow up to obtain data on DMEA's award timeliness in subsequent fiscal years to determine if actions the agency has taken have resulted in it being able to consistently meet SBA's award timeliness guidelines.
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| Defense Threat Reduction Agency | The Director of the Defense Threat Reduction Agency should evaluate the effectiveness of steps taken to improve SBIR and STTR award timeliness and take any necessary additional steps in order to consistently meet SBA award timeliness guidelines. (Recommendation 13) |
Open – Partially Addressed
In its February 2022 letter responding to our report, DOD concurred with this recommendation. According to the letter, the Defense Threat Reduction Agency (DTRA) has taken multiple steps to implement this recommendation including: standardizing contracts guidance for applicants, standardizing evaluation templates, and using internal tracking mechanisms to facilitate and expedite proposal technical reviews. Furthermore, DTRA stated is it exploring an additional funding source to hire more contracting help, and developing guidance and/or training for program managers to facilitate timeliness. In December 2023, we obtained and analyzed publicly available DTRA award data for FY22. Our analysis indicated that DTRA did not meet SBA's award timeliness guidelines in FY22. Further, in combination with prior fiscal years, DTRA has not met SBA's timeliness guidelines in at least 3 of the preceding 5 years based on available data. Going forward, we will follow up to obtain data on DTRA's award timeliness in subsequent fiscal years to determine if actions the agency has taken have resulted in it being able to consistently meet SBA's award timeliness guidelines.
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| Environmental Protection Agency | The Administrator of the Environmental Protection Agency should evaluate the effectiveness of steps taken to improve SBIR award timeliness and take any necessary additional steps in order to consistently meet SBA award timeliness guidelines. (Recommendation 14) |
Open – Partially Addressed
In its April 2022 letter responding to our report, EPA concurred with this recommendation. In its letter, EPA said it had evaluated the impact of previous steps taken to improve the timeliness of awards. Based on its evaluation, EPA decided to create a formalized plan to include a structure for establishing, tracking, and reviewing significant milestones in the SBIR award process to determine compliance with timeliness goals. In July 2022, EPA provided documentation of the plan it developed which includes (1) establishing milestones each year in coordination with the contracting office and recording task dates in a spreadsheet; (2) tracking actual dates in the spreadsheet; and (3) conducting regular internal reviews on the progress of the process. Our evaluation of EPA's SBIR/STTR award data shows that, initially, EPA's timeliness improved from FY2020 to FY2021. In December 2023, we obtained and analyzed publicly available EPA award data for FY22. Our analysis indicated that EPA met SBA's award timeliness guidelines in FY22. However, in combination with prior fiscal years, EPA has not met SBA's timeliness guidelines in at least 3 of the preceding 5 years based on available data. EPA met SBA's timeliness guidelines in FY21 and FY22 but not in FY18 through FY20. Going forward, we will follow up to obtain data on EPA's award timeliness in FY23 to determine if actions the agency has taken have resulted in it being able to consistently meet SBA's award timeliness guidelines.
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| Food and Drug Administration | The Commissioner of the Food and Drug Administration should evaluate the effectiveness of steps taken to improve SBIR award timeliness and take any necessary additional steps in order to consistently meet SBA award timeliness guidelines. (Recommendation 15) |
Open
HHS agreed with this recommendation. According to an April 2022 HHS letter responding to our report as well as additional information provided by the Food and Drug Administration (FDA), FDA stated its intent to assess whether funding the awards based on each of its center's individual budgets could improve FDA's ability to meet SBIR timeliness guidelines. According to a June 2023 update, as of the start of fiscal year 2023, FDA Centers were individually funding SBIR grants. According to the agency's update, funding the awards based on each Center's individual budgets would improve FDA's ability to meet SBIR timeliness guidelines. At the start of FY2024, FDA/OAGS planned to request data from the Centers to determine whether this new process improves FDA's ability to meet SBIR timeliness guidelines. In December 2023, we obtained and analyzed publicly available FDA award data for FY22. Our analysis indicated that FDA did not meet SBA's award timeliness guidelines in FY22. Further, in combination with prior fiscal years, FDA has not met SBA's timeliness guidelines in at least 3 of the preceding 5 years based on available data. Going forward, we will follow up to obtain data on FDA's award timeliness in subsequent fiscal years to determine if actions the agency has taken have resulted in it being able to consistently meet SBA's award timeliness guidelines.
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| Department of Defense | The Director of the Joint Science and Technology Office for Chemical and Biological Defense should evaluate the effectiveness of steps taken to improve SBIR and STTR award timeliness and take any necessary additional steps in order to consistently meet SBA award timeliness guidelines. (Recommendation 16) |
Open
In its February 2022 letter responding to our report, DOD concurred with this recommendation. According to the letter as well as other information provided by the Joint Science and Technology Office for Chemical and Biological Defense (CBD), as of February 2023, CBD is taking several steps to implement this recommendation. CBD is (1) limiting the number of topics an author can include per DOD announcement to facilitate meeting deadlines, (2) requesting evaluation teams complete proposal reviews within 30 days, and (3) reducing the maximum amount of time to review Phase I and Phase II proposals to 60 days whenever feasible. CBD provided estimated completion dates for these activities ranging from August 2023 to December 2023. In December 2023, we obtained and analyzed publicly available CBD award data for FY22. Our analysis indicated that CBD did not meet SBA's award timeliness guidelines in FY22. Further, in combination with prior fiscal years, CBD has not met SBA's timeliness guidelines in at least 3 of the preceding 5 years based on available data. Going forward, we will follow up to obtain data on CBD's award timeliness in subsequent fiscal years to determine if actions the agency has taken have resulted in it being able to consistently meet SBA's award timeliness guidelines.
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| Missile Defense Agency | The Director of the Missile Defense Agency should evaluate the effectiveness of steps taken to improve SBIR and STTR award timeliness and take any necessary additional steps in order to consistently meet SBA award timeliness guidelines. (Recommendation 17) |
Open – Partially Addressed
In its February 2022 letter responding to our report, DOD concurred with this recommendation. According to information provided by the Missile Defense Agency (MDA), MDA adjusted SBIR and STTR solicitations for FY 2022 to better position the schedule for awards and obligations during the calendar year. MDA is reviewing the entire acquisition and award process to seek innovative processes to expedite awards, according to information the agency provided. Additionally, MDA's Phase I award timeliness in FY 2021 showed improvements from prior years. In December 2023, we obtained and analyzed publicly available MDA award data for FY22. Our analysis indicated that MDA did not meet SBA's award timeliness guidelines in FY22. Further, in combination with prior fiscal years, MDA has not met SBA's timeliness guidelines in at least 3 of the preceding 5 years based on available data. Going forward, we will follow up to obtain data on MDA's award timeliness in subsequent fiscal years to determine if actions the agency has taken have resulted in it being able to consistently meet SBA's award timeliness guidelines.
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| National Geospatial-Intelligence Agency | The Director of the National Geospatial-Intelligence Agency should evaluate the effectiveness of steps taken to improve SBIR and STTR award timeliness and take any necessary additional steps in order to consistently meet SBA award timeliness guidelines. (Recommendation 18) |
Open – Partially Addressed
In its February 2022 letter responding to our report, DOD concurred with this recommendation. According to the letter as well as other information provided by the National Geospatial Intelligence Agency (NGA), NGA assigned more personnel to the SBIR program and developed a comprehensive Standard Operating Procedure for internal personnel that outlined responsibilities and provided instructions from the receipt of proposals through contract award. The agency also developed templates and standardized documents for applicants. NGA reported timeliness improvements in FY 2021 following these changes. In December 2023, we obtained and analyzed publicly available NGA award data for FY22. Our analysis indicated that NGA did not meet SBA's award timeliness guidelines in FY22. Further, in combination with prior fiscal years, NGA has not met SBA's timeliness guidelines in at least 3 of the preceding 5 years based on available data. Going forward, we will follow up to obtain data on NGA's award timeliness in subsequent fiscal years to determine if actions the agency has taken have resulted in it being able to consistently meet SBA's award timeliness guidelines.
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| Department of the Navy | The Secretary of the Navy should evaluate the effectiveness of steps taken to improve SBIR and STTR award timeliness and take any necessary additional steps in order to consistently meet SBA award timeliness guidelines. (Recommendation 19) |
Open – Partially Addressed
In its February 2022 letter responding to our report, DOD concurred with this recommendation. The Department of the Navy provided information demonstrating its evaluation of award timeliness, which indicated that prior efforts to address timeliness did not have a lasting effect into the FY 2021 award cycle. As a result, the Navy will continue efforts to evaluate its performance and is considering additional steps to improve timeliness, according to DOD's letter and the information Navy provided. In December 2023, we obtained and analyzed publicly available Navy award data for FY22. Our analysis indicated that the Navy did not meet SBA's award timeliness guidelines in FY22. Further, in combination with prior fiscal years, the Navy has not met SBA's timeliness guidelines in at least 3 of the preceding 5 years based on available data. Going forward, we will follow up to obtain data on the Navy's award timeliness in subsequent fiscal years to determine if actions the agency has taken have resulted in it being able to consistently meet SBA's award timeliness guidelines.
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| Department of Transportation | The Secretary of Transportation should evaluate the effectiveness of steps taken to improve SBIR award timeliness and take any necessary additional steps in order to consistently meet SBA award timeliness guidelines. (Recommendation 20) |
Open – Partially Addressed
In its February 2022 letter responding to our report, the Department of Transportation (DOT) concurred with this recommendation. The department stated it had analyzed data and determined that it would benefit from additional staffing during its peak award season. The department contracted for additional support staff for its FY 2022 award cycle and stated its intent to continue to track and analyze its timeliness data annually. In December 2023, we obtained and analyzed publicly available DOT award data for FY22. Our analysis indicated that DOT did not meet SBA's award timeliness guidelines in FY22. Further, in combination with prior fiscal years, DOT has not met SBA's timeliness guidelines in at least 3 of the preceding 5 years based on available data. Going forward, we will follow up to obtain data on DOT's award timeliness in subsequent fiscal years to determine if actions the agency has taken have resulted in it being able to consistently meet SBA's award timeliness guidelines.
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| Department of the Air Force | The Secretary of the Air Force should document policies and procedures for the team tasked with addressing the previously unissued SBIR and STTR awards. (Recommendation 21) |
Closed – Implemented
In its February 2022 letter responding to our report, DOD concurred with this recommendation. According to the letter, the Department of the Air Force planned to document policies and procedures for the teams tasked with addressing the unissued SBIR and STTR awards. In January 2024, the Air Force provided follow-up documentation showing that all previously unissued awards had been issued by December 31, 2022. Additionally, according to the documentation the Air force provided, it developed an execution review as part of its topic selection process to allow it to consider subcomponents' previous solicitation execution status as a decision-making factor. The Air Force provided further documentation showing an implementation example of this execution review. As a result of the information Air Force provided, we consider this recommendation implemented.
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| Department of Defense | The Under Secretary of Defense for Research and Engineering acting through the Principal Director of Defense Pricing and Contracting should establish a pilot program to improve timeliness or report to Congress on the infeasibility of these requirements. (Recommendation 22) |
Open – Partially Addressed
In its February 2022 letter responding to our report, DOD indicated that it partially concurred with this recommendation. DOD stated that the Office of the Under Secretary of Defense for Research and Engineering (OUSD(R&E)) planned to report to Congress that DOD did not believe it feasible to establish a single DoD-wide formal "pilot program." However, OUSD(R&E) would work with other DOD organizations to issue guidance encouraging use of best practices to reduce the amount of time to awards. In December 2022, a DOD official provided a September 2022 guidance memo to the DOD Services and Defense Agencies that participate in the SBIR and STTR programs. This memo required the DOD agencies to report within 30 days to OUSD(R&E) on their strategic guidance for their respective contracting activities on simplified and standardized procedures and contracts for SBIR/STTR awards to reduce the time for awards. In addition, the memo required DOD agencies to collect data on their timeliness of Phase I and II SBIR/STTR awards and report this data to OUSD(R&E) quarterly. As of March 2024, we are following up with DOD to obtain additional information on the DOD agencies' responses to this OUSD(R&E) guidance and will provide an update as additional information is available.
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