Calendar No. 205

106TH CONGRESS

1ST SESSION S. 296

[Report No. 106–106]

A BILL

To provide for continuation of the Federal research

other purposes.investment in a fiscally sustainable way, and for

JULY 12, 1999

Reported with amendments
II

Calendar No. 205

106TH CONGRESS

1ST SESSION S. 296

[Report No. 106–106]

To provide for continuation of the Federal research investment in a fiscally

sustainable way, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JANUARY 22, 1999

Mr. FRIST (for himself, Mr. ROCKEFELLER, Mr. DOMENICI, Mr. LIEBERMAN,

Mr. GRAMM, Mr. BINGAMAN, Mr. BURNS, Mr. BREAUX, Mrs.

HUTCHISON, Mr. CLELAND, Mr. THOMPSON, Mr. KERRY, Mr. DEWINE,

Mr. KERREY, Mr. ABRAHAM, Mr. AKAKA, Mr. ALLARD, Mrs. BOXER, Mr.

ROBERTS, Mr. ROBB, Ms. SNOWE, Ms. LANDRIEU, Mr. COCHRAN, Mr.

SARBANES, Mr. LEVIN, Mr. DODD, Mr. SANTORUM, Mr. CRAPO, Mr.

KENNEDY, Mr. DURBIN, Mr. MOYNIHAN, Mrs. FEINSTEIN, Mr.

ASHCROFT, Mrs. MURRAY, Mr. CONRAD, Mr. COVERDELL, Mr. SCHUMER, Mr. LOTT, Mr. THURMOND, Mr. BUNNING, and Mr. DASCHLE) introduced the following bill; which was read twice and referred to the Committee on Commerce, Science, and Transportation

JULY 12, 1999

Reported by Mr. MCCAIN, with amendments

[Omit the part struck through and insert the part printed in italic]

A BILL

To provide for continuation of the Federal research investment in a fiscally sustainable way, and for other purposes.
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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Federal Research In5 vestment Act’’.

6 SEC. 2. GENERAL FINDINGS REGARDING FEDERAL INVEST7 MENT IN RESEARCH.

8 (a) VALUE OF RESEARCH AND DEVELOPMENT.—The

9 Congress makes the following findings with respect to the

10 value of research and development to the United States:

11 (1) Federal investment in research has resulted

12 in the development of technology that saved lives in

13 the United States and around the world.

14 (2) Research and development investment

15 across all Federal agencies has been effective in cre16 ating technology that has enhanced the American

17 quality of life.

18 (3) The Federal investment in research and de19 velopment conducted or underwritten by both mili20 tary and civilian agencies has produced benefits that

21 have been felt in both the private and public sector.

22 (4) Discoveries across the spectrum of scientific

23 inquiry have the potential to raise the standard of

24 living and the quality of life for all Americans.
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1 (5) Science, engineering, and technology play a

2 critical role in shaping the modern world.

3 (6) Studies show that about half of all United

4 States post-World War II economic growth is a di5 rect result of technical innovation; and science, engi6 neering, and technology contribute to the creation of

7 new goods and services, new jobs and new capital.

8 (7) Technical innovation is the principal driving

9 force behind the long-term economic growth and in10 creased standards of living of the world’s modern in11 dustrial societies. Other nations are well aware of

12 the pivotal role of science, engineering, and tech13 nology, and they are seeking to exploit it wherever

14 possible to advance their own global competitiveness.

15 (8) Federal programs for investment in re16 search, which lead to technological innovation and

17 result in economic growth, should be structured to

18 address current funding disparities and develop en19 hanced capability in States and regions that cur20 rently underparticipate in the national science and

21 technology enterprise.

22 (b) STATUS OF THE FEDERAL INVESTMENT.—The

23 Congress makes the following findings with respect to the

24 status of the Federal Investment in research and develop25 ment activities:
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1 (1) Federal investment of approximately 13 to

2 14 percent of the Federal discretionary budget in re3 search and development over the past 11 years has

4 resulted in a doubling of the nominal amount of

5 Federal funding.

6 (2) Fiscal realities now challenge Congress to

7 steer the Federal government’s role in science, engi8 neering, and technology in a manner that ensures a

9 prudent use of limited public resources. There is

10 both a long-term problem—addressing the ever-in11 creasing level of mandatory spending—and a near12 term challenge—apportioning a dwindling amount of

13 discretionary funding to an increasing range of tar14 gets in science, engineering, and technology. This

15 confluence of increased national dependency on tech16 nology, increased targets of opportunity, and de17 creased fiscal flexibility has created a problem of na18 tional urgency. Many indicators show that more

19 funding for science, engineering, and technology is

20 needed but, even with increased funding, priorities

21 must be established among different programs. The

22 United States cannot afford the luxury of fully fund23 ing all deserving programs.

24 (3) Current projections of Federal research

25 funding show a downward trend.
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1 SEC. 3. SPECIAL FINDINGS REGARDING HEALTH-RELATED

2 RESEARCH.

3 The Congress makes the following findings with respect

4 to health-related research:

5 (1) HEALTH AND ECONOMIC BENEFITS PROVIDED

6 BY HEALTH-RELATED RESEARCH.—Because of health7 related research, cures for many debilitating and fatal

8 diseases have been discovered and deployed. At

9 present, the medical research community is on the

10 cusp of creating cures for a number of leading dis11 eases and their associated burdens. In particular,

12 medical research has the potential to develop treat13 ments that can help manage the escalating costs asso14 ciated with the aging of the United States population.

15 (2) FUNDING OF HEALTH-RELATED RE16 SEARCH.—Many studies have recognized that clinical

17 and basic science are in a state of crisis because of

18 a failure of resources to meet the opportunity. Con19 sequently, health-related research has emerged as a

20 national priority and has been given significantly in21 creased funding by Congress in fiscal year 1999. In

22 order to continue addressing this urgent national

23 need, the pattern of substantial budgetary expansion

24 begun in fiscal year 1999 should be maintained.

25 (3) INTERDISCIPLINARY NATURE OF HEALTH-RE26 LATED RESEARCH.—Because all fields of science and
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1 engineering are interdependent, full realization of the

2 nation’s historic investment in health will depend on

3 major advances both in the biomedical sciences and in

4 other science and engineering disciplines. Hence, the

5 vitality of all disciplines must be preserved, even as

6 special considerations are given to the health research

7 field.

8 SEC. 3. SEC. 4. ADDITIONAL FINDINGS REGARDING THE

9 LINK BETWEEN THE RESEARCH PROCESS

10 AND USEFUL TECHNOLOGY.

11 The Congress makes the following findings:

12 (1) FLOW OF SCIENCE, ENGINEERING, AND

13 TECHNOLOGY.—The process of science, engineering,

14 and technology involves many steps. The present

15 Federal science, engineering, and technology struc16 ture reinforces the increasingly artificial distinctions

17 between basic and applied activities. The result too

18 often is a set of discrete programs that each support

19 a narrow phase of research or development and are

20 not coordinated with one another. The government

21 should maximize its investment by encouraging the

22 progression of science, engineering, and technology

23 from the earliest stages of research up to a pre-com24 mercialization stage, through funding agencies and

25 vehicles appropriate for each stage. This creates a
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1 flow of technology, subject to merit review at each

2 stage, so that promising technology is not lost in a

3 bureaucratic maze.

4 (2) EXCELLENCE IN THE AMERICAN RESEARCH

5 INFRASTRUCTURE.—Federal investment in science,

6 engineering, and technology programs must foster a

7 close relationship between research and education.

8 Investment in research at the university level creates

9 more than simply world-class research. It creates

10 world-class researchers as well. The Federal strategy

11 must continue to reflect this commitment to a strong

12 geographically-diverse research infrastructure. Fur13 thermore, the United States must find ways to ex14 tend the excellence of its university system to pri15 mary and secondary educational institutions and to

16 better utilize the community college system to pre17 pare many students for vocational opportunities in

18 an increasingly technical workplace.

19 (3) COMMITMENT TO A BROAD RANGE OF RE20 SEARCH INITIATIVES.—An increasingly common

21 theme in many recent technical breakthroughs has

22 been the importance of revolutionary innovations

23 that were sparked by overlapping of research dis24 ciplines. The United States must continue to encour25 age this trend by providing and encouraging oppor-
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1 tunities for interdisciplinary projects that foster col2 laboration among fields of research.

3 (4) PARTNERSHIPS AMONG INDUSTRY, UNIVER4 SITIES, AND FEDERAL LABORATORIES.—Each of

5 these contributors to the national science and tech6 nology delivery system has special talents and abili7 ties that complement the others. In addition, each

8 has a central mission that must provide their focus

9 and each has limited resources. The nation’s invest10 ment in science, engineering, and technology can be

11 optimized by seeking opportunities for leveraging the

12 resources and talents of these three major players

13 through partnerships that do not distort the mis14 sions of each partner. For that reason, Federal dol15 lars are wisely spent forming such partnerships.

16 SEC. 4. SEC. 5. MAINTENANCE OF FEDERAL RESEARCH EF17 FORT; GUIDING PRINCIPLES.

18 (a) MAINTAINING UNITED STATES LEADERSHIP IN

19 SCIENCE, ENGINEERING, AND TECHNOLOGY.—It is im20 perative for the United States to nurture its superb re21 sources in science, engineering, and technology carefully

22 in order to maintain its own globally competitive position.

23 (b) GUIDING PRINCIPLES.—Federal research and de24 velopment programs should be conducted in accordance

25 with the following guiding principles:
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1 (1) GOOD SCIENCE.—Federal science, engineer2 ing, and technology programs include both knowl3 edge-driven science together with its applications,

4 and mission-driven, science-based requirements. In

5 general, both types of programs must be focused,

6 peer- and merit-reviewed, and not unnecessarily du7 plicative, although the details of these attributes

8 must vary with different program objectives.

9 (2) FISCAL ACCOUNTABILITY.—The Congress

10 must exercise oversight to ensure that programs

11 funded with scarce Federal dollars are well man12 aged. The United States cannot tolerate waste of

13 money through inefficient management techniques,

14 whether by government agencies, by contractors, or

15 by Congress itself. Fiscal resources would be better

16 utilized if program and project funding levels were

17 predictable across several years to enable better

18 project planning; a benefit of such predictability

19 would be that agencies and Congress can better ex20 ercise oversight responsibilities through comparisons

21 of a project’s and program’s progress against care22 fully planned milestones.

23 (3) PROGRAM EFFECTIVENESS.—The United

24 States needs to make sure that government pro25 grams achieve their goals. As the Congress crafts
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1 science, engineering, and technology legislation, it

2 must include a process for gauging program effec3 tiveness, selecting criteria based on sound scientific

4 judgment and avoiding unnecessary bureaucracy.

5 The Congress should also avoid the trap of meas6 uring the effectiveness of a broad science, engineer7 ing, and technology program by passing judgment

8 on individual projects. Lastly, the Congress must

9 recognize that a negative result in a well-conceived

10 and executed project or program may still be criti11 cally important to the funding agency.

12 (4) CRITERIA FOR GOVERNMENT FUNDING.—

13 Program selection for Federal funding should con14 tinue to reflect the nation’s 2 traditional research

15 and development priorities: (A) basic, scientific, and

16 technological research that represents investments in

17 the nation’s long-term future scientific and techno18 logical capacity, for which government has tradition19 ally served as the principle resource; and (B) mis20 sion research investments, that is, investments in re21 search that derive from necessary public functions,

22 such as defense, health, education, environmental

23 protection, and raising the standard of living, which

24 may include pre-commercial, pre-competitive engi25 neering research and technology development. Addi-
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1 tionally, government funding should not compete

2 with or displace the short-term, market-driven, and

3 typically more specific nature of private-sector fund4 ing. Government funding should be restricted to pre5 competitive activities, leaving competitive activities

6 solely for the private sector. As a rule, the govern7 ment should not invest in commercial technology

8 that is in the product development stage, very close

9 to the broad commercial marketplace, except to meet

10 a specific agency goal. When the government pro11 vides funding for any science, engineering, and tech12 nology investment program, it must take reasonable

13 steps to ensure that the potential benefits derived

14 from the program will accrue broadly.

15 SEC. 5. SEC. 6. POLICY STATEMENT.

16 (a) POLICY.—This Act is intended—

17 (1) to encourage, as an overall goal, the dou18 bling of the annual authorized amount of Federal

19 funding for basic scientific, medical, and pre-com20 petitive engineering research over the 11-year period

21 following the date of enactment of this Act;

22 (2) to invest in the future of the United States

23 and the people of the United States by expanding

24 the research activities referred to in paragraph (1);
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1 (3) to enhance the quality of life for all people

2 of the United States;

3 (4) to guarantee the leadership of the United

4 States in science, engineering, medicine, and tech5 nology; and

6 (5) to ensure that the opportunity and the sup7 port for undertaking good science is widely available

8 throughout the States by supporting a geographi9 cally-diverse research and development enterprise.

10 (a) POLICY.— This Act is intended to—

11 (1) assure a base level of Federal funding for

12 basic scientific, biomedical, and pre-competitive engi13 neering research, with this base level defined as a

14 doubling of Federal basic research funding over the 11

15 year period following the date of enactment of this

16 Act;

17 (2) invest in the future economic growth of the

18 United States by expanding the research activities re19 ferred to in paragraph (1);

20 (3) enhance the quality of life and health for all

21 people of the United States through expanded support

22 for health-related research;

23 (4) allow for accelerated growth of agencies such

24 as the National Institutes of Health to meet critical

25 national needs;
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1 (5) guarantee the leadership of the United States

2 in science, engineering, medicine, and technology; and

3 (6) ensure that the opportunity and the support

4 for undertaking good science is widely available

5 throughout the United States by supporting a geo6 graphically-diverse research and development enter7 prise.

8 (b) AGENCIES COVERED.—The agencies intended to

9 be covered to the extent that they are engaged in science,

10 engineering, and technology activities for basic scientific,

11 medical, or pre-competitive engineering research by this

12 Act are—

13 (1) the National Institutes of Health, within the

14 Department of Health and Human Services;

15 (2) the National Science Foundation;

16 (3) the National Institute for Standards and

17 Technology, within the Department of Commerce;

18 (4) the National Aeronautics and Space Admin19 istration;

20 (5) the National Oceanic and Atmospheric Ad21 ministration, within the Department of Commerce;

22 (6) the Centers for Disease Control, within the

23 Department of Health and Human Services;

24 (7) the Department of Energy (to the extent

25 that it is not engaged in defense-related activities);
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1 (8) the Department of Agriculture;

2 (9) the Department of Transportation;

3 (10) the Department of the Interior;

4 (11) the Department of Veterans Affairs;

5 (12) the Smithsonian Institution;

6 (13) the Department of Education;

7 (14) the Environmental Protection Agency; and

8 (15) the Federal Food and Drug Administra9 tion, within the Department of Health and Human

10 Services.

11 (c) CURRENT INVESTMENT.—The investment in civil12 ian research and development efforts for fiscal year 1998

13 was 2.1 percent of the overall Federal budget.

14 (d) (c) DAMAGE TO RESEARCH INFRASTRUCTURE.—

15 A continued trend of funding appropriations equal to or

16 lower than current budgetary levels will lead to permanent

17 damage to the United States research infrastructure. This

18 could threaten American dominance of high-technology in19 dustrial leadership.

20 (e) INCREASE FUNDING.—In order to maintain and

21 enhance the economic strength of the United States in the

22 world market, funding levels for fundamental, scientific,

23 and pre-competitive engineering research should be in24 creased to equal approximately 2.6 percent of the total an25 nual budget.
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1 (f) (d) FUTURE FISCAL YEAR ALLOCATIONS.—

2 (1) GOALS.—The long-term strategy for re3 search and development funding under this section

4 would be achieved by a steady 2.5 percent annual in5 crease above the rate of inflation throughout a 11-

6 year period.

7 (2) INFLATION ASSUMPTION.—The authoriza8 tions contained in paragraph (3) assume that the

9 rate of inflation for each year will be 3 percent.

10 (3) AUTHORIZATION.—There are authorized to

11 be appropriated for civilian research and develop12 ment in the agencies listed in subsection (b)—

13 (A) $39,790,000,000 for fiscal year 2000;

14 (B) $41,980,000,000 for fiscal year 2001;

15 (C) $42,290,000,000 for fiscal year 2002;

16 (D) $46,720,000,000 for fiscal year 2003;

17 (E) $49,290,000,000 $44,290,000,000 for

18 fiscal year 2004;

19 (F) $52,000,000,000 for fiscal year 2005;

20 (G) $54,870,000,000 for fiscal year 2006;

21 (H) $57,880,000,000 for fiscal year 2007;

22 (I) $61,070,000,000 for fiscal year 2008;

23 (J) $64,420,000,000 for fiscal year 2009;

24 and

25 (K) $67,970,000,000 for fiscal year 2010.
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1 (4) ACCELERATION TO MEET NATIONAL

2 NEEDS.—

3 (A) IN GENERAL.—If the amount appro4 priated for any fiscal year to an agency for the

5 purposes stated in paragraph (3) increases by

6 more than 8 percent over the amount appro7 priated to it for those purposes for the preceding

8 fiscal year, then the amounts authorized by

9 paragraph (3) for subsequent fiscal years for that

10 agency and other agencies shall be determined

11 under subparagraphs (B) and (C).

12 (B) EXCLUSION OF AGENCY IN DETER13 MINING OTHER AGENCY AMOUNTS FOR NEXT FIS14 CAL YEAR.—For the next fiscal year after a fis15 cal year described in subparagraph (A), the

16 amount authorized to be appropriated to other

17 agencies under paragraph (3) shall be deter18 mined by excluding the agency described in sub19 paragraph (A). Any amount that would, but for

20 this subparagraph, be authorized to be appro21 priated to that agency shall not be appropriated.

22 (C) RESUMPTION OF REGULAR TREAT23 MENT.—Notwithstanding subparagraph (B), an

24 agency may not be excluded from the determina25 tion of the amount authorized to be appropriated
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1 under paragraph (3) for a fiscal year following

2 a fiscal year for which the sum of the amounts

3 appropriated to that agency for fiscal year 2000

4 and all subsequent fiscal years for the purposes

5 described in paragraph (3) does not exceed the

6 sum of—

7 (i) the amount appropriated to that

8 agency for such purposes for fiscal year

9 2000; and

10 (ii) the amounts that would have been

11 appropriated for such purposes for subse12 quent fiscal years if the goal described in

13 paragraph (1) had been met (and not ex14 ceeded) with respect to that agency’s fund15 ing.

16 (D) NO LIMITATION ON OTHER FUNDING.—

17 Nothing in this paragraph limits the amount

18 that may be appropriated to any agency for the

19 purposes described in paragraph (3).

20 (g) (e) CONFORMANCE WITH BUDGETARY CAPS.—

21 Notwithstanding any other provision of law, no funds may

22 be made available under this Act in a manner that does

23 not conform with the discretionary spending caps provided

24 in the most recently adopted concurrent resolution on the
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1 budget or threatens the economic stability of the annual

2 budget.

3 (h) (f) BALANCED RESEARCH PORTFOLIO.—Because

4 of the interdependent nature of the scientific and engi5 neering disciplines, the aggregate funding levels author6 ized by the section assume that the Federal research port7 folio will be well-balanced among the various scientific and

8 engineering disciplines, and geographically dispersed

9 throughout the States.

10 SEC. 6. SEC. 7. PRESIDENT’S ANNUAL BUDGET REQUEST.

11 The President of the United States shall, in coordina12 tion with the President’s annual budget request, include

13 a report that parallels Congress’ commitment to support

14 Federally-funded research and development by

15 providing—

16 (1) a detailed summary of the total level of

17 funding for research and development programs

18 throughout all civilian agencies;

19 (2) a focused strategy that reflects the funding

20 projections of this Act for each future fiscal year

21 until 2010, including specific targets for each agency

22 that funds civilian research and development;

23 (3) an analysis which details funding levels

24 across Federal agencies by methodology of funding,

25 including grant agreements, procurement contracts,
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1 and cooperative agreements (within the meaning

2 given those terms in chapter 63 of title 31, United

3 States Code); and

4 (4) specific proposals for infrastructure develop5 ment and research and development capacity build6 ing in States with less concentrated research and de7 velopment resources in order to create a nationwide

8 research and development community.

9 SEC. 7. SEC. 8. COMPREHENSIVE ACCOUNTABILITY STUDY

10 FOR FEDERALLY-FUNDED RESEARCH.

11 (a) STUDY.—The Director of the Office of Science

12 and Technology Policy, in consultation with the Director

13 of the Office of Management and Budget, shall enter into

14 agreement with the National Academy of Sciences for the

15 Academy to conduct a comprehensive study to develop

16 methods for evaluating Federally-funded research and de17 velopment programs. This study shall—

18 (1) recommend processes to determine an ac19 ceptable level of success for Federally-funded re20 search and development programs by—

21 (A) describing the research process in the

22 various scientific and engineering disciplines;

23 (B) describing in the different sciences

24 what measures and what criteria each commu25 nity uses to evaluate the success or failure of a
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1 program, and on what time scales these meas2 ures are considered reliable—both for explor3 atory long-range work and for short-range

4 goals; and

5 (C) recommending how these measures

6 may be adapted for use by the Federal govern7 ment to evaluate Federally-funded research and

8 development programs;

9 (2) assess the extent to which agencies incor10 porate independent merit-based review into the for11 mulation of the strategic plans of funding agencies

12 and if the quantity or quality of this type of input

13 is unsatisfactory;

14 (3) recommend mechanisms for identifying Fed15 erally-funded research and development programs

16 which are unsuccessful or unproductive;

17 (4) evaluate the extent to which independent,

18 merit-based evaluation of Federally-funded research

19 and development programs and projects achieves the

20 goal of eliminating unsuccessful or unproductive pro21 grams and projects; and

22 (5) investigate and report on the validity of

23 using quantitative performance goals for aspects of

24 programs which relate to administrative manage-
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1 ment of the program and for which such goals would

2 be appropriate, including aspects related to—

3 (A) administrative burden on contractors

4 and recipients of financial assistance awards;

5 (B) administrative burdens on external

6 participants in independent, merit-based evalua7 tions;

8 (C) cost and schedule control for construc9 tion projects funded by the program;

10 (D) the ratio of overhead costs of the pro11 gram relative to the amounts expended through

12 the program for equipment and direct funding

13 of research; and

14 (E) the timeliness of program responses to

15 requests for funding, participation, or equip16 ment use.

17 (6) examine the extent to which program selec18 tion for Federal funding across all agencies exempli19 fies our nation’s historical research and development

20 priorities—

21 (A) basic, scientific, and technological re22 search in the long-term future scientific and

23 technological capacity of the nation; and

24 (B) mission research derived from a high25 priority public function.
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1 (b) ALTERNATIVE FORMS FOR PERFORMANCE

2 GOALS.—Not later than 6 months after transmitting the

3 report under subsection (a) to Congress, the Director of

4 the Office of Management and Budget, after public notice,

5 public comment, and approval by the Director of the Of6 fice of Science and Technology Policy and in consultation

7 with the National Science and Technology Council shall

8 promulgate one or more alternative forms for performance

9 goals under section 1115(b)(10)(B) of title 31, United

10 States Code, based on the recommendations of the study

11 under subsection (a) of this section. The head of each

12 agency containing a program activity that is a research

13 and development program may apply an alternative form

14 promulgated under this section for a performance goal to

15 such a program activity without further authorization by

16 the Director of the Office of Management and Budget.

17 (c) STRATEGIC PLANS.—Not later than one year

18 after promulgation of the alternative performance goals in

19 subsection (b) of this section, the head of each agency car20 rying out research and development activities, upon updat21 ing or revising a strategic plan under subsection 306(b)

22 of title 5, United States Code, shall describe the current

23 and future use of methods for determining an acceptable

24 level of success as recommended by the study under sub25 section (a).
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1 (d) DEFINITIONS.—In this section:

2 (1) DIRECTOR.—The term ‘‘Director’’ means

3 the Director of the Office of Science and Technology

4 Policy.

5 (2) PROGRAM ACTIVITY.—The term ‘‘program

6 activity’’ has the meaning given that term by section

7 1115(f)(6) of title 31, United States Code.

8 (3) INDEPENDENT MERIT-BASED EVALUA9 TION.—The term ‘‘independent merit-based evalua10 tion’’ means review of the scientific or technical

11 quality of research or development, conducted by ex12 perts who are chosen for their knowledge of sci13 entific and technical fields relevant to the evaluation

14 and who—

15 (A) in the case of the review of a program

16 activity, do not derive long-term support from

17 the program activity; or

18 (B) in the case of the review of a project

19 proposal, are not seeking funds in competition

20 with the proposal.

21 (e) AUTHORIZATION OF APPROPRIATIONS.—There

22 are authorized to be appropriated to carry out the study

23 required by subsection (a) $600,000 for the 18-month pe24 riod beginning October 1, 2000.
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1 SEC. 8. SEC. 9. EFFECTIVE PERFORMANCE ASSESSMENT

2 PROGRAM FOR FEDERALLY-FUNDED RE3 SEARCH.

4 (a) IN GENERAL.—Chapter 11 of title 31, United

5 States Code, is amended by adding at the end thereof the

6 following:

7 ‘‘§ 1120. Accountability for research and develop8 ment programs

9 ‘‘(a) IDENTIFICATION OF UNSUCCESSFUL PRO10 GRAMS.—Based upon program performance reports for

11 each fiscal year submitted to the President under section

12 1116, the Director of the Office of Management and

13 Budget shall identify the civilian research and develop14 ment program activities, or components thereof, which do

15 not meet an acceptable level of success as defined in sec16 tion 1115(b)(1)(B). Not later than 30 days after the sub17 mission of the reports under section 1116, the Director

18 shall furnish a copy of a report listing the program activi19 ties or component identified under this subsection to the

20 President and the Congress.

21 ‘‘(b) ACCOUNTABILITY IF NO IMPROVEMENT

22 SHOWN.—For each program activity or component that

23 is identified by the Director under subsection (a) as being

24 below the acceptable level of success for 2 fiscal years in

25 a row, the head of the agency shall no later than 30 days

26 after the Director submits the second report so identifying
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1 the program, submit to the appropriate congressional com2 mittees of jurisdiction:

3 ‘‘(1) a concise statement of the steps necessary

4 to—

5 ‘‘(A) bring such program into compliance

6 with performance goals; or

7 ‘‘(B) terminate such program should com8 pliance efforts fail; and

9 ‘‘(2) any legislative changes needed to put the

10 steps contained in such statement into effect.’’.

11 (b) CONFORMING AMENDMENTS.—

12 (1) The chapter analysis for chapter 11 of title

13 31, United States Code, is amended by adding at

14 the end thereof the following:

‘‘1120. Accountability for research and development programs’’.

15 (2) Section 1115(f) of title 31, United States

16 Code, is amended by striking ‘‘through 1119,’’ and

17 inserting ‘‘through 1120’’.