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GAO: Documented Processes Needed for SBIR/STTR Due Diligence

By Jerry Petersen

GAO: Documented Processes Needed for SBIR/STTR Due Diligence

The Government Accountability Office learned in a recent study that the Department of Homeland Security, the Environmental Protection Agency and NASA do not have documented processes for requesting analytical support and sharing that information -- including classified information -- as part of due diligence when vetting applicants for Small Business Innovation Research and Small Business Technology Transfer program awards.

Having documented processes serves to ensure that all the necessary information is gathered to help officials evaluate and mitigate risks associated with the awarding of SBIR or STTR contracts, GAO said Thursday.

The government watchdog explained that such risks stem from foreign actors seeking to illicitly acquire research and technologies that are funded by the federal government. According to U.S. intelligence agencies, these foreign actors may target emerging technology companies in the U.S., including small businesses seeking SBIR or STTR awards.

The goals of such efforts include obtaining proprietary data, advancing the economic and military capabilities of foreign nations and threatening U.S. national security.

To address the issues found in the vetting processes of the DHS, EPA and NASA, GAO recommended that the three agencies "develop and document agreed-upon procedures for requesting analytical support and sharing information -- including classified information, as applicable -- to support due diligence reviews."

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