"Proponents say it's an initiative with a proven track record of success, and that allowing funding to lapse permanently or enact reforms too aggressively will do irreparable damage to the small defense business ecosystem. But critics say it is not fulfilling its mandate, and that changes are needed to bring in new entrants and ensure repeat awardees eventually "graduate" from the program."
""You look at the DoD in particular ... 25 companies sucked up 18 percent of the [SBIR] funding at DoD and are not really producing," Sen. Joni Ernst, chairwoman of the Senate Small Business and Entrepreneurship Committee, said in September at the Center for Strategic and International Studies. "It's really like a negative investment strategy, because we're pumping the money in but not getting anything back out.""
The Small Business Innovation Research (SBIR) program, launched in 1982 and administered by the Small Business Administration, provides seed funding to small businesses for technology development, with the Defense Department as the largest participant. Funding for SBIR lapsed eight days ago, prompting Pentagon guidance that current contracts remain valid unless otherwise directed while new solicitations are paused and pending awards will only proceed if fiscal 2025 funding is available. Proponents warn that permanent lapse or aggressive reforms could damage the small defense business ecosystem. Critics contend the program is not meeting its mandate, citing concentrated awards and calling for reforms to attract new entrants and ensure repeat awardees graduate.
Read at Breaking Defense
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