Estimating the Cost of Administering the Department of Defense Small Business Innovation Research (SBIR) Program
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Congress is in the process of reauthorizing the Small Business Innovation Research (SBIR) program, which expires in 2008. One issue being considered in the reauthorization is whether to allow partial use of SBIR set-asides for SBIR program administration costs and, if so, at what levels. Currently, the use of SBIR funds to administer the SBIR program is prohibited, and SBIR administration must be funded from other sources. The authors estimate that the U.S. Department of Defense (DoD) spends, on average, an additional 6 percent on top of the SBIR set-asides to administer its SBIR program. That percentage is higher than that for government programs that predominantly award grants (rather than contracts), at or lower than levels for other government R&D programs, and lower than the total compensation levels for venture-capital organizations. Further analysis is required to understand the benefits of alternative levels of administrative investments for the DoD SBIR program.
Table of Contents
Chapter One
Introduction
Chapter Two
Administering the U.S. Department of Defense Small Business Innovation Research Program
Chapter Three
Estimating the Cost of Administering the U.S. Department of Defense Small Business Innovation Research Program
Chapter Four
Administrative Costs in Comparable R&D Programs
Chapter Five
Concluding Remarks
Appendix
Small Business Innovation Research Program
Research conducted by
The research described in this report was prepared for the Office of the Secretary of Defense (OSD). The research was conducted in the RAND National Defense Research Institute, a federally funded research and development center sponsored by the OSD, the Joint Staff, the Unified Combatant Commands, the Department of the Navy, the Marine Corps, the defense agencies, and the defense Intelligence Community.
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