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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: February 26, 2004

SUBJECT: Executive Order 13329, Encouraging Innovation in Manufacturing

SOURCE: Federal Register, February 26, 2004, Vol. 69, No. 38, page 9179

AGENCIES: The President

ACTION: Issuance of Executive Order

SYNOPSIS: On February 24, 2004, President Bush issued Executive Order (EO) 13329 to give high priority to manufacturing-related research and development (R&D) within the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) programs.

EDITOR'S NOTE: The purpose of the SBIR program is to strengthen the role of innovative small businesses in federally-funded R&D. The program applies to all agencies with R&D budgets of more than $100 million to set aside at least 2.5% of their R&D budgets for businesses with no more than 500 employees. The ten agencies currently participating in the SBIR program are the Departments of Agriculture, Commerce, Defense, Education, Energy, Health and Human Services, and Transportation; the Environmental Protection Agency; the National Aeronautics and Space Administration; and the National Science Foundation.

The STTR program is similar to the SBIR program. Its purpose is to stimulate a partnership of ideas and technologies between innovative small businesses and research institutions through federally-funded research or R&D. The STTR program requires all agencies with research/R&D budgets of more than $1 billion to set aside at least 0.3% of their research/R&D budgets for businesses with no more than 500 employees. The five agencies currently participating in the STTR program are the Departments of Defense, Energy, and Health and Human Services; the National Aeronautics and Space Administration; and the National Science Foundation.

For more on the SBIR program, see the September 24, 2002, FEDERAL CONTRACTS DISPATCH "Small Business Administration; Small Business Innovation Research Program." For more on the STTR program, see the June 16, 2003, FEDERAL CONTRACTS DISPATCH "Small Business Administration; Small Business Technology Transfer Program." Also see the Small Business Administration (SBA) website at http://www.sba.gov/sbir/indexsbir-sttr.html.

EFFECTIVE DATE: February 24, 2004.

SUPPLEMENTAL INFORMATION: Because "continued technological innovation is critical to a strong manufacturing sector in the United States economy," and to help "advance innovation, including innovation in manufacturing, through small businesses," the president is directing the agencies participating in the SBIR and STTR programs to "give high priority within such programs to manufacturing-related research and development," and to submit annual reports to the SBA administrator and the Office of Science and Technology Policy director concerning their efforts to implement the order. The SBA administrator is authorized to issue guidelines and directives needed to implement the order after such guidelines and directives are approved by the Office of Science and Technology Policy director and the president.

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953 or by e-mail to Panoptic@FedGovContracts.com.

Copyright 2004 by Panoptic Enterprises. All Rights Reserved.

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