What GAO Discovered
Seven of eleven federal companies collaborating within the Small Trade Innovation Analysis (SBIR) and Small Trade Generation Switch (STTR) methods used open subjects from fiscal years 2019 thru 2021. According to solicitations with open subjects, small companies post proposals that each outline analysis wishes and suggest answers to deal with them. The remainder 4 companies simplest used standard subjects. For those subjects, companies outline wishes and small companies suggest answers. Officers from the 11 companies mentioned they be expecting to proceed their current use of subject varieties in years yet to come.
Over the 3-year duration, open subject awards accounted for roughly 40 p.c of all awards and $4.1 billion. The share of awards originating from open subjects larger from 36 p.c in 2019 to 40 p.c in 2020 and 46 p.c in 2021.
Open and standard subject awards differed in relation to small industry participation from fiscal years 2019 thru 2021, in keeping with GAO research of award knowledge. In response to a number of GAO analyses, companies receiving standard subject awards tended to obtain a couple of awards, which might point out that open subjects advertise a extra aggressive surroundings.
Collection of Companies Receiving Open and Typical Matter Awards in Small Trade Analysis Systems, Fiscal Years 2019–2021
Open subject awards additionally went to a better share of small companies owned through veterans and people from socially and economically deprived teams, in comparison to standard subject awards, however further elements may just provide an explanation for this distinction. As an example, one company mentioned that nontraditional companies are much less prevalent in positive fields, equivalent to physics. This may give a contribution to decrease proportions of nontraditional companies receiving awards from companies operating in physics, irrespective of the companies’ use of open subjects.
In deciding whether or not to make use of open or standard subjects, companies reported taking into consideration their objectives for the usage of the SBIR/STTR methods and to be had assets. As an example, companies aiming to satisfy the objective of accelerating applicant festival might believe the usage of open subjects, in keeping with officers. Moreover, companies believe the supply and experience of proposal reviewers, which is particularly necessary given the larger variation within the sorts of applied sciences coated in analysis proposals for open subjects.
Why GAO Did This Find out about
Small companies are necessary drivers of financial expansion, however they may be able to face demanding situations having access to capital to fund analysis and building. During the SBIR and STTR methods, companies supply awards to small companies to spur technological innovation, amongst different objectives. For those awards, companies free up solicitations that come with subjects. Small companies post proposals with technical answers to issues. Beneath open subjects, the small companies outline the issues, while below standard subjects, companies outline the issues.
The SBIR and STTR Extension Act of 2022 comprises provisions for GAO to check companies’ use of open subjects. This file examines, amongst different issues, (1) the level to which companies have used open subjects, (2) how open and standard subject awards examine, and (3) company concerns about which subject kind to make use of.
GAO compiled and analyzed knowledge from a couple of resources, together with the 11 collaborating companies and the Small Trade Management (SBA). The scope of the evaluate covers fiscal years 2019 thru 2021, as a result of SBA award knowledge for fiscal 12 months 2022 weren’t but to be had on the time of GAO’s evaluate. GAO additionally reviewed company documentation and interviewed officers from the 11 collaborating companies and SBA.
For more info, touch Candice N. Wright at (202) 512-6888 or wrightc@gao.gov.
