For example, the Administration would like to develop quality metrics that can assist agencies in developing standards to limit the perceived effect of so-called “SBIR mills”. In order to understand the issue surrounding multiple award winners it is necessary to have clear data on the issue. Successful awardees should not be penalized provided there is a solid basis for their awards and a clear understanding of the nature of the research’s potential for advancement.

Likewise, the Administration would support efforts to study the commercialization and implementation of research to develop a better understanding of the needs of the Phase III process. While recognizing the historic goal of commercialization in the SBIR program, we believe that further expenditures and programmatic changes should be based on performance data, and we caution Congress to avoid re-focusing the program in a manner that involves direct support for commercialization activities more appropriately performed by the private sector.

The Administration’s clear goal is to further quality research which produces significant results for the Nation. SBA looks forward to working with this Committee as legislation moves forward prior to the sunset date on September 30, 2008.

I appreciate the opportunity to share the administration’s position on the SBIR programs and I look forward to answering any questions you may have.

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