Senate Appropriators Pass Commerce Spending Bill

On June 25, the Senate Appropriations Committee passed S. 2260, its version of the FY 1999 Commerce, Justice and State Appropriations bill. Within the Commerce Department, funding is provided for the National Institute of Standards and Technology (NIST.)

Senate appropriators would provide $68.3 million less for the Institute than the Administration’s FY 1999 request. NIST’s Scientific and Technical Research and Services (STRS), its core in-house laboratories, would receive $1.0 million less than requested. Of NIST’s extramural programs, the Advanced Technology Program (ATP) would be funding at $67.4 million below the request, and the committee asks for an external evaluation of the program. Appropriators would provide the amount requested for the Manufacturing Extension Partnership (MEP) and for construction and repairs.

NIST FY98 FY99 Senate

Program Approp. Request Report

(In millions)

STRS $276.9 291.6 290.6

ATP 192.5 259.9 192.5

MEP 113.5 106.8 106.8

Construction 95.0 56.7 56.7

TOTAL 677.9 715.0* 646.7

*Does not include $115 million requested as advance appropriation for construction during the period FY 2000 - FY 2002.

The committee report (S. Rpt. 105-235) accompanying the bill provides further insight regarding the Committee’s views on NIST programs. Selected passages are quoted below:

STRS: Within STRS, appropriators would provide increased funding for new initiatives on disaster mitigation and international trade, but would deny a funding increase for “measurement and standards for climate change.” The Malcolm Baldrige Quality Award program would be funded at $5,370,000, and “the Committee has included bill language making an additional appropriation of $2,300,000 available for the expansion of the Malcolm Baldrige Quality Award upon enactment of authorizing legislation.”

ATP: “The Committee has been advised by the Department of Commerce that approximately $23,800,000 from prior-year deobligations and unobligated balances will carry over from fiscal year 1998. The Committee expects these funds to be used during fiscal year 1999. Within the total amount available, $41,100,000 shall be used for administrative costs and for the Small Business Innovation Research Program.... The Committee expects NIST to use a portion of these funds to conduct a comprehensive, outside assessment of the ATP Program. Since its inception, $1,195,206,000 has been obligated by the ATP Program. The administration is requesting $259,900,000 for this program in fiscal year 1999 and projected increases are expected in annual increments of approximately $50,000,000 for each year through fiscal year 2003. The program’s effectiveness should be assessed before significant increases for new awards are appropriated. While NIST has conducted several internal assessments, including those done by consultants, and some outside case studies of specific years or classes of awards, there has been no comprehensive evaluation of the program. Enough program data has been amassed for an independent, outside assessment by a well-regarded organization with significant business and economic experience. The Committee expects the assessment to analyze how well the program has reached certain goals established in its authorizing statute, the Technology Competitiveness Act of 1988.... In addition, the assessment should benchmark the ATP experience against similar high-risk, cutting-edge precompetitive research which has had limited or no Federal support during a comparable period and compare their successes in reaching a widespread commercial application. The report should be provided to the appropriate committees no later than February 1, 1999.

“The level provided by the Committee for the ATP Program would fully fund the requested level of $120,000,000 for awards created in fiscal years 1996, 1997, and 1998 and would make $38,700,000 available for new awards in fiscal year 1999. The amount for new awards is $55,300,000 less than the request. Pending the completion of the program evaluation and the enactment of legislation reauthorizing the program, the Committee will reevaluate the funding level for new awards in fiscal year 2000.”

MEP: “In last year’s appropriations report, the Committee expressed concern about those centers which had exceeded their sixth year of Federal funding and whether these centers should now be self-supporting. The Committee asked the Secretary of Commerce for a report outlining the Department’s views on the centers and recommendations for assisting MEP centers to become self-supporting. The Secretary of Commerce provided this report to the Committee, and it concluded that some level of Federal support is necessary for the centers to attract funding from State, local, and private sources. The level provided by the Committee in fiscal year 1999 will permit funding for all MEP centers.... In the course of conducting annual, triannual, and reapplication reviews, the Committee expects NIST to rigorously evaluate the MEP centers. The Committee directs that NIST provide an annual report to the Committee...and that NIST form a review panel comprised of knowledgeable and experienced individuals, who are neither employed by the agency nor involved with any of the MEP centers, to evaluate the results of their MEP center review prior to transmitting the final report to Congress. The final report...should be provided to the appropriations committees no later than February 1, 1999.”

Construction: “The Committee is not recommending an advance appropriation of $115,000,000 requested by the agency for fiscal years 2000 through 2002. The agency submitted a facilities improvement plan with its fiscal year 1999 budget request...in response to the Committee’s request in the conference report accompanying the fiscal year 1998 appropriations bill. The fiscal year 1999 request will permit NIST to continue its planned safety, capacity maintenance, and major repairs projects and to begin procurement of an advanced metrology laboratory [AML]. The Committee is concerned about NIST’s plans to build a clean room at two different locations. These facilities are expensive and rapidly become obsolete. The agency should consider consolidating at one location all programs requiring regular use of a clean room. The Committee directs NIST to review programs requiring regular clean room use and report to the Committee about the feasibility of program consolidation supporting the construction of a clean room at one site before expending funds for construction at either site. This report should be provided no later than February 1, 1999.”