Office of Advocacy
    U.S. Small Business Administration

    NEWSRELEASE

    For Release: April 15, 2002
    Contact: John McDowell (202) 205-6941
    SBA Number: 02-25 ADVO
    john.mcdowell@sba.gov

    Missile Defense Agency Confirms Importance Of Small Research Firms

    Agrees To Fully Fund Small Business Innovation Research For 2002

    WASHINGTON, D.C. – The United States Missile Defense Agency (MDA) has confirmed the importance of small research firms to its goal of defending our country, by agreeing to honor its commitment to fund about $137 million in small business research projects through the Small Business Innovation Research (SBIR) program.

    MDA committed to funding small business research in response to inquiries from the Office of Advocacy of the U.S. Small Business Administration (SBA). Thomas M. Sullivan, Chief Counsel for Advocacy, wrote to the agency in March expressing concern that funding for SBIR research could be reduced by almost 50 percent. Sullivan wrote that, "A budgetary decrease of nearly 50 percent is not an acceptable course of action when small businesses in this country are needed more than ever in defense of home and the world."

    The SBIR program ensures that small technology research firms receive federal agency research grants. Designed to identify promising technologies, the program awards grants to take such technologies from development through to commercialization.

    In his response to Sullivan’s inquiries, Lt. General Ronald Kadish (USAF), MDA Director, said, "I want you to know MDA considers the SBIR program an important and valuable initiative." He further stated that MDA would not take advantage of the legal opportunity to cut the SBIR program. Instead, he intended to fully fund the program for small technology companies during Fiscal Year 2002.

    Sullivan voiced his concern after a provision was inserted in the Fiscal 2002 Defense Appropriations Act making it possible for MDA to reduce its SBIR funding. Senators John Kerry (D-MA) and Kit Bond (R-MO) had written to Defense Secretary Donald Rumsfeld expressing their concern about the possible reductions as well.

    For more information, visit the Office of Advocacy website at http://www.sba.gov/advo.

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    Created by Congress in 1976, the Office of Advocacy of the U.S. Small Business Administration (SBA) is an independent voice for small business within the federal government. The Chief Counsel for Advocacy, who is appointed by the President and confirmed by the U.S. Senate, directs the office. The Chief Counsel advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policy makers. Issues are identified through economic research, policy analyses, and small business outreach. The Chief Counsel’s efforts are supported by offices in Washington, D.C., and by Regional Advocates. For more information on the Office of Advocacy, visit http://www.sba.gov/advo, or call (202) 205-6533.