U.S. Department of Commerce

Technology Administration

National Institute of

Standards and Technology

January 2005

2004 Annual Report

THE NIST

VISITING

COMMITTEE

ON ADVANCED

TECHNOLOGY
Report prepared by:

Gail Ehrlich

VCAT Executive Director

For information regarding the NIST Visiting Committee

on Advanced Technology, contact:

Gail Ehrlich

VCAT Executive Director

National Institute of Standards and Technology

100 Bureau Drive, Mail Stop 1060

Gaithersburg, MD 20899-1060

(301) 975-2149

Email: gail.ehrlich@nist.gov
i

The Visiting Committee on Advanced Technology (VCAT) of the National Institute of Standards

and Technology (NIST) was established in its present form by the Omnibus Trade and

Competitiveness Act of 1988. The VCAT reviews and makes recommendations regarding

general policy for the National Institute of Standards and Technology, its organization, its

budget, and its programs within the framework of applicable national policies as set forth by the

President and the Congress. It submits an annual report to the Secretary of Commerce for submission to the Congress. This Fiscal Year 2004 annual report covers the December 2003

meeting through the September 2004 meeting.

The Committee reviews the Institute’s strategic direction, performance, and policies, and

provides the Secretary of Commerce, Congress, and other stakeholders with information on the

value and relevance of NIST to the U.S. science technology base and the economy. Over the

past year, the Committee has been active in shaping NIST’s strategic plan, assessing the

strengths of its programs and how progress is evaluated, reviewing its strategic operational

needs, and serving as a key interface to stakeholders. Throughout the year, the Committee seeks

to cover the full portfolio of NIST’s programs through direct discussion with NIST leaders, scientists, and engineers, as well as representatives from the National Research Council Board on

Assessment of NIST Programs, the Advanced Technology Program (ATP) Advisory Committee,

and the Baldrige National Quality Program Board of Overseers. Reactions and observations are

discussed candidly with the NIST representatives and other guests involved at each meeting.

This feedback is positively received, and the Committee sees much evidence of constructive

response to it. At each quarterly meeting, the Committee also visits various NIST laboratories

and discusses the research projects directly with the scientific and technical staff. These laboratory tours help the Committee assess NIST’s progress towards executing its Strategic Plan.

Members of the Committee are selected from industry and academia solely on the basis of

established records of distinguished service and are eminent in research, engineering, business,

or other fields relevant to NIST’s mission. Appointed by the NIST Director for staggered threeyear terms, the members have diverse backgrounds and provide a representative cross-section of

traditional and emerging U.S. industries. Four new members joined the Committee during 2004:

Dr. Donald Keck, Mr. Edward Noha, Mr. Thomas Saponas, and Dr. James Serum.

This report highlights the Committee’s findings and recommendations along with a summary of

observations. Detailed meeting minutes and presentation materials are available on the NIST

web site at www.nist.gov/director/vcat.

Preface
ii

DR. JUAN M. SANCHEZ

Vice President for Research

University of Texas, Austin

Term expires Jan. 2006

MR. GARY D. FLOSS

Managing Director

Bluefire Partners, Inc.

Term expires Jan. 2008

DR. RICHARD M. GROSS

Retired Corporate Vice

President of Research and

Development

The Dow Chemical Company

Resigned July 2004

MRS. DEBORAH L. GRUBBE., P.E.

VCAT Vice Chair

Corporate Director, Safety & Health

DuPont

Term expires Jan. 2007

DR. JENNIE C.

HUNTER-CEVERA

President

University of Maryland

Biotechnology Institute

Term expires Jan. 2005

MR. EDWARD J. NOHA

Chairman Emeritus

CNA Financial Corporation

Term expires Jan. 2007

DR. THOMAS A. MANUEL

Retired President

Council for Chemical Research

Term expires Jan. 2005

DR. F. RAYMOND SALEMME

Chief Executive Officer

Linguagen Corporation

Term expires Jan. 2005

DR. JAMES W. SERUM

President

SkiTek Ventures

Term expires Jan. 2007

2004 Visiting Committee Members

MR. THOMAS A. SAPONAS

Retired Senior Vice President

and Chief Technology Officer

Agilent Technologies

Term expires Jan. 2007

DR. DONALD B. KECK

Retired Vice President,

Research Director

Corning Inc.

Term expires Jan. 2007

MR. SCOTT C.

DONNELLY

Senior Vice President

GE Corporate Research &

Development

General Electric Company

Term expires Jan. 2006

DR. LOU ANN HEIMBROOK

Vice President of

Global Operations

Merek & Co., Inc.

Term expires Jan. 2006

DR. APRIL M. SCHWEIGHART

VCAT Chair

Retired Product Business Manager

Motorola

Term expires Jan. 2006

MR. ROBERTT. WILLIAMS

Vice President

Track-Type Tractors Division

Caterpillar Inc.

Term expires Jan. 2006
iii

Prinicpal Findings and Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Outreach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Strategic Direction and Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Organizational Excellence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Summary of Observations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

NIST Laboratories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

MEP and ATP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Outreach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Strategic Direction and Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Evolution of NIST 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Implementation of NIST 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Budget Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Competence Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Strategic Working Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Operating Units' Operational Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Strategic Partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Strategic Focus Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Homeland Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Biosystems and Health . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Nanotechnology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Information/Knowledge Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Renewed Focus on Core Metrology and Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Extramural Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Advanced Technology Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Manufacturing Extension Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Baldrige National Quality Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Performance Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Economic Impact Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Performance Metrics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Board on Assessment of NIST Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Organizational Excellence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Advanced Measurement Laboratory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

NIST Center for Neutron Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Upgrade and Maintenance of Other NIST Facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Technical Excellence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

People . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Table of Contents
iv

Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Reorganization/Streamlining . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Management of Organizations with Remote Sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

APPENDIX A. NIST Impacts, Issues, and Requests: Prepared by the VCAT, April 8, 2004 . . . . . . . . . . . . . . 21

APPENDIX B. Examples of Technical Excellence: Lab Reviews Conducted by the VCAT in FY 2004 . . . . . 24

APPENDIX C. NIST Response to FY 2003 VCAT Annual Report Recommendations . . . . . . . . . . . . . . . . . . . 27
1

The VCAT commends NIST for its well-managed and

high quality portfolio of programs that is vital to

strengthening the nation’s innovation, trade, public

safety, security, and jobs. These programs consist of the

NIST Laboratories, the Advanced Technology Program,

the Manufacturing Extension Partnership, and the

Baldrige National Quality Program, with each playing a

distinctive role in the nation’s technology infrastructure.

Consistent with the Administration’s report on “Science

for the 21st Century,” NIST’s activities are vital to

ensuring the nation’s economic growth and in setting the

stage for innovation and technology. The Committee

strongly believes that NIST’s measurement research,

standards, and services provide the nation’s underlying

scientific and technical infrastructure that supports technology-based programs in industry, universities, and

other government agencies. 

However, long-term funding constraints are threatening

NIST’s future capabilities to respond to the scientific and

technical needs for emerging technologies such as

biotechnology, nanotechnology, and information technology. To help alleviate this funding issue, the VCAT and

NIST have been conducting extensive outreach over the

past year to inform key stakeholders about the value of

NIST and its unique role in measurements and standards. 

The VCAT has been providing guidance to NIST on its

Strategic Plan, including evaluation methods, and is

quite impressed with the Institute’s development and

implementation of the Plan and its commitment for

further improvements. The VCAT believes that NIST’s

visibility must be dramatically increased to facilitate an

increased budget and to attract strategic partnerships that

are commensurate with NIST’s world-class technical

expertise and highly specialized facilities and equipment

aimed at improving our nation’s scientific and technology infrastructure. The future competitiveness of U.S.

industries will be threatened if budget limitations

continue to prevent NIST from addressing the measurement and standards challenges related to the new technologies of the 21st century.

The VCAT is pleased to have had the opportunity to

meet twice with Deputy Secretary Kassinger during FY

2004 to discuss the value of NIST and to express

concerns about its budget. The Committee is particularly

appreciative of Deputy Secretary Kassinger’s suggestions for ways to help demonstrate the value of NIST to

its stakeholders and for his interest in this area. The

VCAT is encouraged by the Department of Commerce

support for NIST and its budget, and is looking forward

to engaging in a productive relationship with the new

Secretary of Commerce.

BUDGET 

Findings — Minimal growth in NIST’s R&D budget

has constrained the Institute’s ability to meet the

nation’s measurement and standards needs. Without

greater capacity, important measurement needs will not

be addressed.

Recommendations:

NIST Laboratories

• NIST’s budget for the laboratories must be increased

immediately to fund the Institute’s strategic initiatives

and to compensate for unfunded Congressionallymandated programs, inadequate adjustments-to-base,

and unfunded salary increases that have gradually

eroded the amount of funding available for research in

core metrology programs. 

• For the longer term, the VCAT advocates that NIST’s

budget for the laboratories continue to increase significantly in order to implement strategic programs that

are required to sustain the nation’s research infrastructure. While NIST is successfully addressing a wide

range of immediate measurement and standards needs,

the organization also must continue to invest in developing core competencies that will be required to

provide the measurement and standards capabilities for

the future. 

Facilities

• NIST must receive the requested budget increases to

equip the nation’s state-of-the-art Advanced

Measurement Laboratory (AML), to improve the

NIST Center for Neutron Research (NCNR), to

Principal Findings and Recommendations
modernize the NIST Boulder Laboratories, and for

maintenance and repairs associated with the deterioration and obsolescence of NIST’s aging facilities.

Without these investments, NIST’s ability to respond

to the nation’s measurement and standards needs will

be severely jeopardized, including the delivery of time

and frequency standards.

Manufacturing Extension Partnership

• Funding for the Manufacturing Extension Partnership

(MEP) needs to be stabilized to help ensure that the

existing network of small and medium-sized manufacturers remain competitive as a result of MEP’s

technical assistance. Significant performance results

for many of MEP’s clients ranging from increased

sales to increased jobs are a testimony to the value of

this program to the nation.

Advanced Technology Program

• The budget for the Advanced Technology Program

(ATP) needs to be stabilized to continue co-funding

R&D partnerships with the private sector that accelerate and develop innovative technologies for broad

national benefit in areas of inadequate levels of private

investment. 

OUTREACH 

Findings — NIST lacks visibility and recognition

commensurate with its program strengths and impacts.

Recommendations:

• Although outreach activities are increasing, NIST

should develop a longer-term comprehensive plan for

marketing its capabilities to key customers and stakeholders. 

• To complement these efforts, the VCAT members will

continue to advise NIST’s stakeholders on the strategic

direction and value of NIST’s programs. 

STRATEGIC DIRECTION AND

PERFORMANCE 

Findings — NIST has a well-crafted Strategic Plan

that is being implemented NIST-wide and reflects

senior management’s commitment to continuous

improvement and direction of resources to highest

opportunities.

Recommendations:

• To further improve the Strategic Plan, NIST should

develop more specific short-term and long-term

metrics and other quantitative data, consistent with the

Baldrige framework, that will aid in performance evaluation. This information also should be reflected in

the 2005 Balanced Scorecard, which will be used by

senior management to define and evaluate NIST-wide

performance goals and metrics throughout all levels of

the Institute. 

• NIST should further expand its efforts in the Strategic

Focus Areas (SFAs) to help the United States become

competitive in these rapidly growing fields. In particular, the VCAT urges NIST to more closely examine

the Institute’s role in biosciences and the pharmaceutical industries, where a wide-range of measurements

and standards are needed.

• With possible budget constraints in the future, it is

even more important for NIST to continue exploring

opportunities for extensive collaborations and partnerships to take advantage of expertise outside of the

Institute. NIST should update the Strategic Plan to

include strategies for identifying where partnerships

should be appropriate, targeting specific partnership

organizations, and achieving these partnerships. 

• The analysis of NIST’s role in the National

Measurement System should be integrated into the

next version of the Strategic Plan.

2
3

ORGANIZATIONAL EXCELLENCE

Findings — NIST’s world-class talent, continued

pursuit of organizational excellence, and highly specialized facilities and equipment are hallmarks of a

high-performing agency. NIST’s programs demonstrate technical excellence, resulting in outstanding

achievements and numerous awards. NIST’s world

leadership capability is providing critical technical

infrastructure for emerging technologies and homeland

security.

Recommendations:

• NIST must continue to upgrade its aging buildings and

facilities or seriously risk undermining its state-of-theart capabilities in the near future. 

• To further improve the Institute’s safety management

practices and results, NIST’s Safety Council should

benchmark safety practices with other organizations

and seek additional advice from VCAT members with

expertise in this field.

NIST physicist David Wineland in the laboratory where he worked

with colleagues to demonstrate "teleportation" by transferring key

properties of one beryllium ion to another atom without using any

physical link.

© Geoffrey Wheeler
4

BUDGET

NIST Laboratories

NIST’s budget outlook continues to be of great concern

to the Committee. The reduced FY 2004 appropriation

adversely affected the staff as a number of employees

left NIST due to reduction-in-force actions, early retirements, and buy-outs. The NIST laboratories have shown

only modest growth over the last decade after adjusting

for inflation as illustrated in Figure 1. 

In fact, while not reflected in Figure 1, the amount of

funding available for core metrology programs in the

NIST laboratories has been eroding during this same

timeframe as the Institute has had to compensate for

huge new responsibilities in response to a series of

unfunded Congressionally-mandated programs, inadequate adjustments-to-base, and unfunded salary

increases. When adjusted for these costs, the funds

available for research in the NIST laboratories only grew

3 percent since 1997, compared to other Science and

Technology agencies that grew 48 percent in the same

timeframe. 

The President’s FY 2005 budget request for increased

funding for the NIST laboratories is very encouraging

but more significant increases are required in the longterm to support NIST’s strategic initiatives and the

development of core competencies needed to address the

nation’s future measurement and standards challenges.

The FY 2005 budget initiatives for the laboratories

support the NIST 2010 Strategic Plan as described under

the “Summary of Operations, Strategic Direction and

Performance” section of this report (page 7).

The lead agency issue continues to jeopardize NIST’s

appropriations. NIST’s reliance on direct funding from

other agencies to implement its Strategic Plan and to

remain solvent is problematic. Other agencies typically

fund short-term specific projects at NIST that require

immediate results rather than long-term, new measurement capabilities needed for the future. Also, many of

NIST’s program initiatives for its measurement and

standards work have been jeopardized throughout all

stages of the budget cycle as the Institute is encouraged

to seek direct funding instead from the “lead agency”

responsible for the particular national priority, such as

the National Institutes of Health (NIH) for biotechnology

research or the Department of Homeland Security (DHS)

for homeland security. This misconception must be

corrected as NIST is the lead agency for measurements

and standards. While the other agency missions focus on

application areas such as biosystems and health,

homeland security, and energy, all depend on the underpinning measurements and standards that require NIST’s

unique expertise and capabilities. The diverse competencies needed to provide these measurements and standards

require continued direct funding support. 

Facilities

NIST’s facilities continue to require additional funding

to help shape NIST’s capabilities and productivity well

into the 21st century. Based on NIST’s three-phase 1998

Facilities Improvement Plan, Congress fully funded construction for the AML and partially funded renovations

in existing research facilities through FY 2004.

However, significant additional investments are needed

to overcome remaining problems associated with deterioSummary of Observations
rated and obsolete laboratory facilities. Without a fullyequipped AML and upgraded facilities and laboratories,

including the NCNR, NIST’s ability to respond to the

nation’s measurement and standards needs will be significantly degraded. 

The recently completed AML, the world’s most sophisticated measurement and standards laboratory, now

requires additional funding for special instrumentation

and equipment needs to take full advantage of its unique

capabilities and to attract strategic partners. The

President’s FY 2005 budget request for the laboratories

includes an increase of $25.5 million for this critical

investment. With a fully-equipped AML, NIST’s

capacity will have increased substantially and NIST will

have a laboratory capacity commensurate with its worldclass scientific expertise and programs. However,

increased utility and operation and maintenance costs

associated with the AML are a serious concern and must

be addressed in future budgets. NIST estimates that these

costs will total $9 million in FY 2005 and are expected

to increase as the AML becomes fully operational. 

The majority of the NIST buildings were constructed in

the 1950’s and 1960’s on the Boulder and Gaithersburg

sites, respectively. Many of these structures require significant investments to address their deteriorating conditions and obsolete laboratory facilities, including NIST’s

physical plant, which is limiting NIST’s measurement

capabilities. To address these needs, the President’s FY

2005 budget request for facilities includes an increase of

$25.7 million primarily to modernize the NIST Boulder

laboratories and an additional $10.6 million for the

annual safety, capacity, maintenance and major repairs

(SCMMR) budget for NIST’s aging structures.

However, even with this increase, the total amount of

funding available for SCMMR in FY 2005 would be

$33.7 million, which is still below industry’s best

practice recommendation for an annual maintenance

budget of at least 3 percent of the replacement cost of

the buildings for a technical organization*. To meet this

level, NIST requires a SCMMR budget totaling

$52.7 million in FY 2006. 

To improve the capabilities of the NCNR, the nation’s

premier neutron facility, the President’s FY 2005 budget

request also includes an increase of $8.3 million. These

improvements will benefit the more than 1,900

researchers from university, industry, and government

that rely on the NCNR’s advanced measurement capabilities as well as help to significantly expand collaborations in materials science, biotechnology, chemistry,

engineering, and physics. 

Further discussion related to these increases is provided

under the “Summary of Observations, Organizational

Excellence” section of this report (page 17). 

5

The NIST Nanofabrication Facility, an ultra clean wing of the

Advanced Measurement Laboratory, will be operated as a user

facility. It will provide NIST's collaborators with access to expensive

nanofabrication tools and specialized expertise in a shared-cost

environment.

Courtesy HDR Architecture, Inc./Steve Hall © Hedrich Blessing

* Hanscomb, Faithful & Gould (HF&G), 2004 – Facilities Condition Assessment
6

MEP and ATP

Long-term funding for the MEP and ATP should be

resolved. Prior to FY 2004, MEP’s funding had been

stable while ATP’s funding has fluctuated over the years.

As confirmed by a multitude of stakeholders, both of

these programs have made significant contributions to

U.S. industry and their funding should be continued. The

VCAT is encouraged by the emergency funding that

Congress secured to enable MEP to operate without disruption for the first few months in FY 2005 in anticipation of a favorable FY 2005 appropriations bill.

Faced with budget uncertainty, the Institute recognizes

the importance of educating stakeholders about the value

of NIST through increased marketing and outreach

efforts and exploring and establishing new strategic partnerships to help leverage NIST’s resources and expertise. 

OUTREACH

The top priority for the new NIST Chief of Staff is

outreach to NIST stakeholders to improve their

awareness, appreciation, and support of the Institute and

provide more visibility to NIST. An effective marketing

and outreach effort will help the Institute better reflect

customers’ priorities in program planning, leverage

NIST’s resources through partnerships, facilitate

better use of NIST’s results, and increase support

by educating stakeholders about NIST. 

Based on the Committee’s outreach to Congress

and industry leaders, the VCAT found that many

of these key stakeholders were aware of NIST but

not familiar with its programs and impacts due to

the Institute’s relatively small size and specialized

functions. To help communicate the value of NIST

and its unique role in measurements and standards,

the VCAT developed key impact statements about

the organization that concisely summarize NIST’s

contributions (see Appendix A). The VCAT

encouraged NIST to develop communication tools

to use as part of a more aggressive outreach effort

to Congress, industry leaders, and other influential

stakeholders in government. The Committee also

encouraged NIST to continue to host tours of the NIST

laboratories for these stakeholders and to visit other

organizations for more effective outreach. To further

increase visibility, NIST responded to the Committee’s

recommendation to develop a brief key message that

highlights the value of NIST, including its role in innovation, trade, security, and jobs that aligns with the

current mission statement. 

Outreach activities have increased over the past year

with significant results. Both the NIST leadership and

the VCAT members have been involved in numerous

outreach activities to make NIST more visible both

within the government and with key business groups and

industry leaders. For example, NIST hosted several congressional visits to NIST and had key engagements with

numerous industry groups, large companies, and

academia. There also have been several Congressional

hearings on the NIST budget in which members of

Congress as well as industry representatives testified on

behalf of NIST, including Deborah Grubbe, Corporate

Director of Safety and Health at DuPont and Vice Chair

of the VCAT. Another major outreach activity was the

AML dedication held on June 21, 2004, with more than

200 guests representing a cross-section of NIST’s indus-
7

trial and scientific partners, other

government agencies, state and

local officials, and Congress,

including Senator Paul Sarbanes,

Representative Chris Van Hollen,

and John H. Marburger III,

director of the White House Office

of Science and Technology Policy. 

With a broader understanding of

NIST’s circumstances, many

stakeholders and customers have

sent letters in support of the NIST

budget to Congress that attest to

the value of the Institute’s

programs (see Table 1). For

example:

• The Task Force on the Future of

American Innovation,

comprised of 14 organizations

associated with business and

academia, specifically identified NIST as one of the key research agencies that

should receive an increase of 10 to 12 percent per year

over the next five to seven years and pointed out that

NIST’s budget accounts for less than one-half percent

of the government’s R&D budget. 

• The Alliance for Science and Technology Research in

America (ASTRA) formed a coalition to help increase

funding for NIST and developed a two-page summary

of why America needs NIST.

The Committee is looking forward to reviewing NIST’s

longer-term comprehensive strategic plan for marketing

its capabilities and the associated measures for success

as the Institute becomes even more proactive in these

efforts. 

STRATEGIC DIRECTION AND

PERFORMANCE

NIST leadership is committed to improving its

strategic planning process. By establishing a process

for reviewing and updating the NIST 2010 Strategic

Plan, NIST management has shown both their

ownership of the Plan as well as a drive to implement

it through involving others at NIST. NIST 2010,

version 1.b, is a vast improvement over the previous

version. The VCAT commends NIST leadership for

their willingness to continue to learn how to more

effectively develop a strategic plan, their responsiveness to suggestions for improvements, and their recognition that the plan must be continuously improved as

a living document. NIST leaders recognize the challenges involved with developing performance metrics

for a scientific organization and are continuing to

improve the methodology for generating this information. 

Evolution of NIST 2010

NIST has been steadily improving its strategic planning

process since 2001, when the original NIST 2010

Strategic Plan was developed under the auspices of the

NIST Strategy Council. In response to external develop-
8

ments and input from the VCAT, customers, stakeholders, and staff, the NIST Senior Management Board

revised the Plan and produced version 1.b in June 2004

that addressed many of these groups’ comments and

suggestions. This version provides more balance

among NIST’s programs as illustrated in Table 2. 

Version 1.b also includes a greater focus on NIST’s

core metrology and measurement service functions, the

repositioning of the Homeland Security goal as an

SFA, the repositioning of the SFAs as a single

objective under the laboratories, the clarification of

NIST’s distinct roles in the SFAs, and a description of

the implementation mechanisms. All of NIST’s

technical programs now fall within the three objectives

of version 1.b of the NIST 2010 Strategic Plan in

recognition of their significant contributions to the

nation’s measurement and standards infrastructure (see

Appendix B for illustrative examples of NIST’s

technical excellence). Consistent with NIST’s intent

that this Plan remains a working document, the nextgeneration plan, version 2, will incorporate the VCAT’s

input on version 1.b, with more focus on impact paths

and end results, NIST’s central value propositions, and

NIST’s role in the National Measurement System

(NMS). NIST is examining this role in response to

new measurement challenges of the 21st century that

go beyond the scope of the classical International

Systems of Units, the SI. The

VCAT agrees that meeting

these challenges is vital to

our nation’s commerce and

technology. NIST Standards

Services Division Chief Mary

Saunders led a task group

with representatives from

across NIST Operating Units

that was commissioned and

charged with defining a

process for developing a 21st

century view of the nation’s

measurement system and

incorporating a dynamic leadership role for NIST. In June

2004, this task group developed a white paper that

provides definitions of measurement and the nation’s

measurement system and identifies an array of

potential roles for NIST for discussions with stakeholders and customers. These discussions are intended to

help shape NIST’s strategic directions and priorities.

NIST staff and managers also are actively engaged in

this process by providing comments on the approach,

identifying external audiences, and helping to solicit

answers to the questions posed in the paper. The VCAT

appreciated the opportunity to provide positive

comments on the proposed approach and to identify

customers and stakeholders that should be consulted.

The VCAT looks forward to NIST’s specification of the

key needs and challenges associated with the NMS and

NIST’s distinctive contributions. The Committee has

advised NIST leadership on the importance of integrating the analysis of NIST’s role in the NMS into the

next version of the Strategic Plan.

Implementation of NIST 2010 

NIST is making excellent progress toward implementing

the Plan through the use of several mechanisms that will

help the Institute build on existing core competencies

and expand capacity in the SFAs. These mechanisms

focus on: 1) budget initiatives; 2) competence funding;

3) Strategic Working Groups; 4) Operating Unit operational plans; and 5) strategic partnerships. 
Budget Initiatives — NIST has been developing programmatic budget initiatives on the basis of NIST 2010

strategic priorities since FY 2003. However, as shown in

Table 3, these initiatives have received modest appropriations of $8.6 million in FY 2003 and only $2.5 million

in FY 2004 largely due to other priorities in the

Administration and Congress, primarily in homeland

security. 

The Committee is encouraged by the President’s FY

2005 budget request that includes significant increases in

strategic initiatives for NIST, including $16.2 million to

build core competencies in

measurement science,

standards, and services;

$15.6 million for advances

in manufacturing; and $18.6

million for public safety and

security. 

Competence Funding —

The NIST-wide competence

fund is successfully used to

support projects that will

strengthen NIST’s traditional measurement and

standards mission, and/or

advance the Institute’s

SFAs. Eight such competence projects have been

funded since FY 2002 and

seven more projects will

begin in FY 2005 as shown

in Table 4. 

All FY 2005 proposals selected for

funding emphasized how they will help

NIST meet future national metrology

needs. Most of these projects are collaborative efforts between Operating Units.

Beginning in FY 2005, each of the SFAs

and two core measurement and standards

areas will be partially supported with

competence funding. NIST is pursuing

even more resources for competence as part of the FY

2005 programmatic budget initiatives. 

Strategic Working Groups (SWGs) — The establishment of four SWGs to help NIST-wide planning for each

of the SFAs is an outstanding mechanism for implementing NIST 2010 (see Table 5). The purpose of these

SWGs is to identify strategic opportunities in an SFA,

facilitate internal technical coordination, and enhance

collaboration and support. Comprised of multi-disciplinary technical staff from different Operating Units at

NIST, these SWGs will be in an ideal position to assess

9
NIST’s roles and opportunities from a wide

range of viewpoints and advise the NIST senior

management on strategic direction. 

• Tremendous progress has been made in the

SWG for Homeland Security that was established as the first SWG in FY 2003. This

SWG has been extremely active in interacting

with representatives from DHS and other

agencies and groups; preparing a comprehensive inventory of NIST’s homeland security

activities; and developing a draft strategic plan. 

• The Biosystems and Health SWG was formed

in early 2004 and its members are actively participating in numerous meetings with industry

and other government agencies, including the

Advisory Council Meeting for the National

Institute of Bioimaging and Bioengineering and the

Annual Meeting of the Biotechnology Industry

Organization. 

• In August 2004, NIST formed the Nanotechnology

SWG. The chair of this SWG, Dr. Clayton Teague, is

currently on a temporary assignment to the National

Science and Technology Council as Director of the

National Nanotechnology Coordination Office.

Dr. Teague’s extensive knowledge of government-wide

activities in nanotechnology will be of great

value to this group when he returns to NIST.

In the interim, Dr. Michael Postek, who has

been active in NIST outreach activities in

nanotechnology, is serving as the Acting

Chair. 

• NIST recently formed a steering group for the

last SWG for Information/Knowledge

Management and plans are underway to begin

work on this SWG in the next few months.

The Committee looks forward to learning

more about the accomplishments of these

SWGs at future meetings. 

Operating Units’ Operational Plans — NIST 2010

provides a framework for the annual operational plans

for each of the Operating Units. The NIST Director

reviews the operational plans to ensure programmatic

coordination and NIST-wide implementation of the

Institute’s long-range goals. The third annual Director’s

review of the operational plans will take place in

October 2004. The Operating Units received guidance

for preparing their operational plans that provided a

direct link to NIST 2010. For the FY 2005 - 2006

planning cycle, the operational plans will identify

10

NIST Computer Scientist Ross Micheals demonstrates a NIST-developed system

for studying the performance of facial recognition software programs. NIST will

use results from the research in support of its Congressional mandate under the

USA PATRIOT Act to certify the use of biometrics such as digitized photos and

fingerprints in passports and visas.

© Robert Rathe
11

programs or major activities

in support of SFAs and other

goals; associated resources;

programmatic changes from

FY 2004 and their impacts,

including staffing and other

agency support; and other significant issues. New details

will be collected on the

alignment of the Operating

Units’ investments with

industry needs. A comparison

of the FY 2003 and FY 2004

planning levels indicates that

NIST 2010 is being implemented as programs are

increasingly aligned with the

SFAs as shown in Table 6. 

Strategic Partnerships — NIST is continuing to build

strategic partnerships as a way to maximize programmatic leverage and impact for implementing NIST 2010.

Over the past year, the NIST Director, the NIST Acting

Director, other senior managers, and staff have been

actively engaged in pursuing new strategic partnerships

with several organizations, including NIH and the

University of Maryland. Opportunities for strategic partnerships with these and other organizations appear very

promising. In FY 2004, NIST initiated six new

Memoranda of Understanding (MOUs) with the

Department of Defense (DoD), the Maryland Technology

Development Corporation, the National Cancer Institute

(NCI), the National Science Foundation, the Northern

Virginia Technology Center, and the University of

Illinois as summarized in Table 7. In recognition of the

many other opportunities for high-leverage partnerships

that are available to help implement NIST 2010 and the

amount of effort required to pursue these partnerships,

NIST would benefit by developing a formal plan for

identifying and targeting specific partnership organizations that will result in strategic partnerships that can

best meet the nation’s needs.

Strategic Focus Areas 

NIST has a lead role in providing the measurements and

standards for cutting-edge technologies where the United

States must be competitive in the global market. In

response to industry needs for measurement methods,

tools, and data for emerging technology-based industries

(that are determining the global winners in the early 21st

century), NIST is expanding its capabilities in three

SFAs: nanotechnology, biosystems and health, and

information/knowledge management. NIST also is successfully applying its measurement and standards competencies to high priority needs in homeland security, the

Institute’s fourth SFA, by providing technical and performance measurements and standards that serve as the

critical infrastructure needed for public safety and

security. The repositioning of the SFAs in version 1.b of

NIST 2010 to one of three objectives under a single goal

for the NIST laboratories will provide the Institute with

more flexibility to address other emerging technologybased industries that may evolve over time in response to

changing technology and market conditions. NIST’s

research activities in the SFAs are progressing well and

show great promise, with several noteworthy activities

and accomplishments. 
The VCAT applauds NIST

progress in establishing interdisciplinary SWGs for each of

the SFAs to identify opportunities where measurements and

standards are needed in each

of these areas and in providing

increased competence and

other funding for related

projects. NIST should further

expand its efforts in the SFAs

to help the United States

become competitive in these

rapidly growing fields. In

addition, NIST should

continue exploring opportunities for extensive collaborations and partnerships in each

of the SFAs to leverage its

resources.

Homeland Security – NIST is

focusing its tremendous measurement and standards expertise to address chemical,

biological, radiological, nuclear, and explosive threats

(CBRNE); cyber security and critical infrastructure protection; and biometric technologies for enhanced border

security. In particular, NIST’s extensive activities in biometrics support the USA PATRIOT Act and the

Enhanced Border Security and Visa Entry Reform Act

while NIST’s investigation of the World Trade Center

will result in recommended improvements in the design,

construction, maintenance and use of buildings, especially high-rises. NIST also is working closely with DHS in

such areas as first responder communications.

Biosystems and Health – With NIST’s highly specialized facilities and equipment and multidisciplinary competencies in the physical sciences, engineering, information technology, and especially nanotechnology, the

Institute is uniquely positioned to provide valuable

resources to the bioscience community. NIST’s quantitative measurements and standards, methods, tools, and

data are needed by industry, academia, and other government agencies for biosciences research, new health care

technologies, and better health care delivery systems and

processes. For example, NIST has been seeking partnerships with other key agencies that increasingly rely on

NIST’s measurement and standards competencies,

including NIH, particularly NCI and the National

Institute for Biomedical Imaging and Bioengineering

(NIBIB), the Federal Drug Administration, and others.

Nanotechnology – NIST’s unique capacities in nanoscale

measurement and data characterization provide critical

infrastructure for nanotechnology research and development. For example, NIST performs long-term nanoscale

R&D in support of the National Nanotechnology Initiative

(NNI), specifically in nanoscale metrology and instrumentation as well as manufacturing at the nanoscale.

Information/Knowledge Management – NIST’s research

activities are focusing on new measurement capabilities,

12

NIST research structural engineer Nicholas Carino (retired) describes how he is testing the mechanical

strength of fireproofing materials used in the World Trade Center (WTC) buildings. These tests will help

NIST investigators estimate the amount of fireproofing that was dislodged from various structural

elements within the WTC buildings when the aircraft were flown into them on Sept. 11, 2001.

© Robert Rathe
13

tests, and standards that enable more

effective intelligent systems and

control processes and improve interoperability within and across

systems. The VCAT anticipates

increased effort in this area during

the coming year, with the formation

of a new SWG and increased

attention from senior managers. 

In addition, the Committee had the

opportunity to tour several NIST laboratories over the past year where

excellent research is being conducted

in support of the SFAs (see Appendix

B, Examples of Technical

Excellence). 

Renewed Focus on Core

Metrology and Standards

The renewed focus on core

metrology and standards in version

1.b of NIST 2010 will help assure the

availability and efficient transfer of

measurement and standards capabilities to manufacturing service industries, universities, and other R&D-intensive organizations. The NIST laboratories are continuing to make

advances in this traditional role as reflected in the laboratory tours provided to the VCAT as well as by the

number of external awards and wide media attention in

recognition of this work (see Appendix B, Examples of

Technical Excellence). 

As part of this effort, NIST is actively collaborating with

the International Trade Administration to implement five

components of the Standards Initiative launched in 2003

by Secretary Evans. This Initiative responds to industry

concerns that standards and technical regulations have

become major challenges to expanding U.S. exports. 

Extramural Programs

Advanced Technology Program – At the December

2003 VCAT meeting, the ATP Director and Mr. Ross

Armbrecht, Jr., President of the Industrial Research

Institute and a member of the ATP Advisory Committee,

highlighted ATP’s benefits to the nation. ATP’s mission

is to accelerate the development of innovative technologies for broad national benefit through partnerships with

the private sector. Since its inception in 1988, ATP has

invested in more than 240 new technologies - products,

processes, and services - that have been commercialized.

The ATP Advisory Committee concurs with the findings

of the National Research Council that ATP is an effective

federal partnership program that has shown considerable

success in advancing technologies that can contribute to

important societal goals. In addition to ATP cost-shared

awards for projects led by small and/or large businesses,

other ATP participants include universities and national

laboratories. ATP-funded projects cover a wide range of

technology areas, including materials/chemistry, biotechnology, information technology, and electronics/

Physicist Deborah Jin, winner of the MacArthrur Genuis Award, in her laboratory at JILA, a

joint institute of NIST and the University of Colorado, Boulder, CO.

© Geoffrey Wheeler
14

photonics. ATP investments align well with NIST’s

SFAs in projects conducted externally as well as in the

NIST laboratories. Although recent program assessments and a survey of ATP applicants have reported significant economic benefits to the nation associated with

ATP, the program is faced with the challenge of

operating under financial instability as the

Administration and Congress continue to debate the

program’s role. The Secretary of Commerce, the

National Research Council, and the ATP Advisory

Committee have released several reports that address

ATP’s funding problems. 

The ATP Advisory Committee noted that ATP is increasingly respected in industry and fills a critically important

gap by funding high-risk enabling technologies, but

policy makers have misconceptions about the program

and need to be educated on its importance. Furthermore,

the ATP Advisory Committee commended ATP for its

improved processes and its impressive economic assessment program and recommended that it seek synergistic

opportunities with other agencies and strengthen ties

with universities and state agencies. ATP already is

exploring new strategic partnerships with the states, universities, and other government agencies, including DHS

and NIH, to find new ways to leverage its technology

funding. The VCAT recognizes the need for ATP

funding to be stabilized; however if the program is terminated, there must be adequate funding to allow for an

orderly shutdown of the program. 

Manufacturing Extension Partnership – The severe FY

2004 budget reduction for MEP of $66 million, a 64

percent decrease from last fiscal year, disrupted program

operations and resulted in staff reductions. This

reduction followed a series of significant milestones for

MEP. By the end of 2003, MEP reached its funding

scheme goal where the MEP Centers were supported

with one-third of their funding from revenues, one-third

from the federal investment, and one-third from state

matching funds. NIST predicted that a decrease in the

federal investment would most likely lead to a decrease

in state funding. The approximately $90 million in

revenues demonstrated a market for the nearly 400 MEP

service locations comprised of over 1,800 field staff and

over 3,500 affiliated service providers throughout the

United States. A recent survey of 5,015 client companies

reported that, as a result of MEP services, they realized

almost $681 million in cost savings; invested $940

million in modernization, including plant and equipment,

information systems, and workforce training; increased

or retained $2.8 billion in sales; and created 8,966 jobs

and retained over 26,062 jobs. In addition, Harvard

University’s Kennedy School of Government selected

MEP as one of 15 finalists for the 2004 Innovation in

American Government Award. 

MEP has undertaken extensive strategic planning to

address the future direction of the program. A series of

proposals to strengthen and reform the MEP were

included in the Administration’s Manufacturing Initiative

Report that calls for closer coordination of the MEP with

other Federal programs. NIST has been actively pursuing

these strategic partnerships. To date, a five-year

Memorandum of Understanding has been signed to

provide small manufacturers access to DoD technologies

and expertise through the MEP. In addition, the National

Academy of Public Administration (NAPA) conducted a

thorough review of MEP and developed several recommendations for alternate business models, and the

Department of Commerce (DoC) and NIST are

committed to implementing many of these recommendations. Stakeholder input about the next generation MEP

also was generated through a series of workshops,

meetings, and webcasts with 277 participants including

many representatives from the state and local government. Many of these stakeholders expressed serious

concerns over the proposed system-wide recompetition.

The VCAT applauds MEP’s leadership for its endeavors

to make MEP an even more effective program that will

help the nation’s small and medium-sized manufacturers

become more competitive and recognizes the importance

of a stabilized budget to more efficiently reach this goal. 

Baldrige National Quality Program – The VCAT

continues to recognize the Baldrige program as one of

the government’s most highly leveraged and effective

programs that help organizations achieve performance
excellence. President Bush presented the prestigious

Malcolm Baldrige National Quality Award (MBNQA) to

seven recipients in March 2004. These are the most

Award recipients since the program began in 1988 and

the first time that recipients were named in all five

Award categories. In fact, the Quest for Excellence®

(QE) Conference XVI featured the seven recipients and

was one of the largest QE Conferences held. In addition,

applications for the 2003 and 2004 Awards were 40

percent higher than in 2002. Furthermore, a recent Booz

Allen Hamilton study reported that over 70 percent of

Fortune 1000 companies are likely to use the Baldrige

criteria in the next five years. With the recent approval

of the new nonprofit category, the Baldrige criteria will

now cover all sectors of the economy. 

The VCAT was privileged to hear Sister Mary Jean

Ryan, CEO of SSM Health Care (SSMHC), speak so

passionately about SSMHC’s organizational transformation and benefits inherent in following the Baldrige

process. With over 20 acute care hospitals and nursing

homes in four states, SSMHC became the first health

care organization to receive the MBNQA in 2002. Sister

Mary Jean Ryan described how SSMHC used the

Baldrige criteria to achieve performance excellence with

outstanding results in such areas as reduced employee

turnover, improved financial performance, and increased

patient satisfaction. Sister Mary Jean Ryan’s efforts in

helping other organizations use the Baldrige process to

achieve performance excellence are commendable.

Performance Evaluation

Background – The NIST performance evaluation system

is improving and still evolving. The VCAT commends

NIST for engaging in extended discussions with the

Committee regarding ways to improve its performance

evaluation system and its responsiveness to the

Committee’s recommendations. NIST recognizes the

importance of performance evaluation as it continues to

refine a system that can be responsive to a diverse stakeholder community and to the internal needs of the organization. These stakeholders include the DoC, the Office

of Management and Budget, the Office of Science and

Technology Policy (OSTP), House and Senate authorizing and appropriations committees, the VCAT, and other

Federal Advisory Committees for each of NIST’s extramural programs. NIST is challenged with fundamental

issues associated with reporting results on an annual

basis: the NIST mission requires a complex evaluation

system; NIST does not have a “few vital outcomeoriented metrics;” and performance data is not synchronized with the budget cycle. 

To respond to these external requirements, NIST uses

four types of evaluation tools that provide critical input

to the Institute’s long-term strategic planning and to

NIST’s value chain: external peer assessment, quantitative output metrics, customer satisfaction data, and

economic impact studies. Since there are strengths and

weaknesses associated with each of these measurement

methods, NIST appreciates the need to further refine

these methods and to balance their use. Furthermore,

NIST has identified a complex set of issues in evaluating

research outcomes and research investments for consideration as they attempt to evolve their performance evaluation system. These include methods for measuring the

15

The "physics package" of the chip-scale atomic clock includes (from

the bottom) a laser, a lens, an optical attenuator to reduce the laser

power, a waveplate that changes the polarization of the light, a cell

containing a vapor of cesium atoms, and (on top) a photodiode to

detect the laser light transmitted through the cell. The tiny gold wires

provide electrical connections to the electronics for the clock.

Photo credit: NIST
16

impact pathways within and across supply chains, evaluating the productivity of laboratory functions, and validating scientific and technical judgment. The VCAT

appreciates the complexity of these challenges and

supports NIST in exploring ways to address them. 

Economic Impact Studies – Improvements are still

needed in NIST’s use of economic impact studies. Over

the past ten years, NIST has conducted over 31 retrospective economic impact studies of its programs in

selected areas that have shown extraordinary benefits.

However, prospective economic impact studies also are

needed to help assess the downstream impacts of NIST’s

research projects and infratechnologies. These prospective studies would help to validate NIST’s role in

emerging technologies. Pending the availability of

adequate resources in FY 2005, NIST plans to carry out

new prospective economic impact studies to refine the

anticipated impact statements specific to the research

objectives within each SFA as described in version 1.b of

NIST 2010. The Committee also advised NIST on the

importance of collecting cumulative data from five to ten

years after a project has been completed to further

measure its economic impact. 

Performance Metrics – Performance evaluation is

important internally to NIST to evaluate its current work

portfolio and retrospective performance. Starting in FY

2004, NIST adopted a Balanced Scorecard approach to

define NIST-wide performance goals and metrics, as recommended by the VCAT. The Scorecard was used to

evaluate organizational performance and senior management performance, and provided the needed framework

for cascading metrics and evaluation methods throughout

all levels of the organization. The NIST Customer and

Stakeholder Council is revising the Scorecard for 2005

to include new types of customer satisfaction methods

also recommended by the VCAT. The Committee recommends that NIST develop more short- and long-term

metrics and other quantitative data for evaluating

progress in implementing NIST 2010. 

Board on Assessment of NIST Programs – The

National Research Council (NRC) Board on Assessment

of NIST Programs provides qualitative peer review of

NIST laboratory programs. Dr. Kenneth Keller, Chair of

the Board on Assessment of NIST Programs, attended

the September 2004 VCAT meeting. He presented the

Board’s new biennial assessment process, evaluation

criteria, and expectations for the FY 2005 NRC report.

The Board is charged with assessing the technical merit

of the laboratory programs relative to state-of-the-art

worldwide; the effectiveness with which the programs

are carried out and the results disseminated; the

relevance of the programs to the customer’s needs; and

the adequacy of the laboratories’ facilities, equipment,

and human resources. 

The new biennial review process is intended to provide

the Board with more time to gather and analyze the

information for an improved report based on a set of

common assessment criteria and themes. The biennial

review process began in FY 2004, the “off” year, as individuals or sub-groups of panels met informally with

NIST scientists to become more familiar with laboratory

activities. FY 2005 will be the “report” year with formal

panel visits, assessments, and feedback followed by

Board meetings and the writing, review, and issuance of

the final report. During this process, the panel members

will be involved with gathering information using

common assessment criteria while the Board’s responsibilities will include selecting the themes, screening the

panel assessments for the relevant information, and

engaging in the review process and writing the report.

The Board is still in the process of selecting themes for

the FY 2005 report based on NIST 2010 and discussions

with the NIST laboratory directors. In addition, the

Board recognizes the need to assess multi-disciplinary

activities and its lack of structure to adequately address

this task. The VCAT is available to pursue further discussions with the Board about our unique roles and to

provide any other advice that it deems appropriate to

more effectively carry out its assessment of NIST

programs. 
17

ORGANIZATIONAL

EXCELLENCE

Ultimately, the combination

of world-class talent and

highly specialized facilities

and equipment will ensure

NIST’s success in meeting

the measurement and

standards challenges of the

future. The VCAT congratulates NIST for completing

the construction of the AML

on time and within budget

after ten years of planning.

NIST also is making progress towards

achieving organizational excellence in

regard to its people. The pay for performance system has been redesigned to effectively address staff concerns over fairness and transparency. In addition, NIST senior management’s

increased emphasis on safety has resulted in an

improved safety record for Gaithersburg and Boulder

staff. 

Facilities 

NIST is well along in its planning to upgrade its aging

physical plant. As described in the “Summary of

Observations, Budget” section of this report (page 4),

significant budget increases are still required to fully

equip and take maximum advantage of recent investments in the AML, to overcome

deficiencies associated with the

aging buildings, and to improve

the capacity and operational

efficiency of the NCNR. NIST

has thoroughly evaluated its

facilities needs, and is pursuing

a prudent plan for addressing

the highest priority plant and

equipment improvements that NIST’s scientists and

technical staff need to remain at the forefront of measurement and standards research and development.

• AML – The four hallmarks of the AML are its

stringent environment controls on air quality, temperature, vibration, and humidity as described in Table 8.

These unique capabilities provide an excellent opportunity for industry, university, and government collaborators to achieve more rapid advances in research and

development through advanced measurements,

standards, and reference materials critical to innovation

in nanotechnology and other emerging technologies. 

Courtesy HDR Architecture, Inc./Steve Hall © Hedrich Blessing

NIST's new Advanced Measurement Laboratory is the most technically advanced

research facility of its kind in the world. The $235 million, 49,843 square meter

(536,507 square foot) facility features five separate wings with stringent environmental controls on air quality, temperature, vibration, and humidity.
18

• NCNR – According to a 2002 report by OSTP, the

NCNR ranks as the “highest performing and most

used neutron facility in the United States.” Serving

more than 1,900 researchers from university, industry,

and government, the NCNR’s neutron probes are

becoming increasingly indispensable research tools in

fields ranging from nanotechnology to superconductivity and from fuel cells to biotechnology. Capability

improvements at the NCNR are needed to maintain

and expand these collaborations.

• Upgrade and Maintenance of Other NIST Facilities

– Upgrades are required to preserve and enhance

NIST’s technical contributions to national innovation

and economic growth. According to a recent Facility

Condition Assessment of the NIST Gaithersburg

campus performed by Hanscomb, Faithful & Gould

(HF&G), all but three of the buildings and structures

inspected received a Facility Condition Index score of

poor. Furthermore, the study identified $512 million

in facility deficiencies. This estimate was based on

inspections performed on each of the major structures’

building exterior systems; building interior systems;

heating, ventilating, and air-conditioning and

plumbing systems; and electrical systems. The study

did not document facilities on the Boulder campus, but

the results would probably have been worse since the

buildings are older. HF&G calculated the current

replacement value for the Gaithersburg campus as

$1.49 billion, and estimated Boulder at $327 million. 

Technical Excellence 

NIST continues to be a high-performing organization

with outstanding achievements in ground-breaking scientific research in FY 2004. Examples include the creation

of a new form of matter and the demonstration of the

fastest known cryptographic system for quantum encryption. As these and many other examples indicate, NIST

has world-renowned scientists and engineers, including

two Nobel Laureates and some of the world’s most specialized measurement facilities. With these assets, NIST

is well-positioned to remain at the forefront of research

and services that support all phases of scientific and

technological development (see Appendix B for illustrative examples of NIST’s technical excellence). 

People

The People Council continues to explore policy issues

relating to NIST staff as delegated by the Senior

Management Board. With broad representation from all

levels of NIST in both Gaithersburg and Boulder, the

Council has been involved with NIST’s long-term

Human Resource (HR) strategy, the NIST Diversity

Strategic Plan, the Leadership and Management

Development Program, and the pay for performance

NIST electrical engineer Alan Mink works on a programmable

printed circuit board used to process data for the new NIST

quantum key distribution system.

© Robert Rathe
19

system. Based on a comprehensive review of existing

HR-related reports and plans spanning the past 10 years

and results from the Employee Surveys, the Council’s

preliminary findings indicated that NIST needs better

training for its leadership; needs a growing commitment

to diversity by senior leadership; needs to fully utilize

the talents, competencies and experiences of its staff; and

needs to change a number of processes to ensure

fairness, including the Performance Management

System. These are important issues for NIST to address

as the Institute seeks to attract and maintain a high

quality staff. 

The goal of the NIST Diversity Strategic Plan is to

produce preeminent performance through diversity. The

plan’s objectives were shared with the Committee and

NIST was encouraged to examine the issue of diversity

as a business case to determine its value to the organization. NIST plans to conduct further benchmarking with

comparable scientific organizations to help set its

diversity goals.

Leadership and management is a critical issue addressed

by every organization. NIST has established four major

initiatives to facilitate leadership and management development that focus on identifying core leadership competencies and developing training programs aimed at

existing leaders, next generation leaders, and newly

appointed leaders. The VCAT commends NIST leaders

for benchmarking the Institute’s leadership and management training and policies with other organizations as

recommended by the Committee.

A major accomplishment of the People Council is the

redesign of the NIST pay for performance system,

pending approval by DoC and the Office of Personnel

Management (OPM). NIST has been using a pay for

performance system for more than a decade to expedite

the hiring process and to reward high-performing staff.

OPM evaluated NIST’s pay for performance system for

the first seven years and reported that by using this

system NIST is more competitive for talent and retained

more top performers than the comparison group.

However, NIST leaders decided to redesign the system

to address issues of fairness and transparency identified

in the most recent employee survey. The proposed

system calls for numerical ranking and scoring to be

replaced by performance levels. In addition, pay

increase percentages will be comparable for all

employees within a level in each career path within an

Operating Unit. The proposed redesign was presented to

the staff for comments and about 62 percent preferred

the redesign. Since the redesigned system is responsive

to staff concerns, NIST expects improved staff performance and morale once the new system is implemented. 

Retaining and building world-class competencies in the

SFAs is crucial and depends on a long-term strategic

plan for managing human resources. NIST is currently

evaluating the specific talents and skills needed in each

SFA as the Institute seeks to improve its human resource

planning. This plan becomes even more important as the

Institute strives to identify opportunities for partnerships

requiring specialized staff expertise. 

Safety

NIST management is demonstrating its commitment to

making safety a top priority by setting a goal of zero lost

workday incidents and establishing a number of new

practices to help achieve this goal. Safety results,

incident reports, and mitigation/response strategies are

discussed at the outset of each Senior Management

Board meeting. In addition, the NIST Director created a

Safety Council to provide the Senior Management Board

with information, advice, and policy options to ensure

NIST’s preeminence in safety and to annually update the

NIST Safety Plan. To implement NIST-wide activities

required by the Safety Council and the Safety Plan, a

Safety Operational Committee was established. The

Vice Chair of the Safety Council chairs this committee

and has parallel vice chairs from Gaithersburg and

Boulder in recognition of the uniqueness of the two

campuses. Representatives from each Operating Unit

and administrative functional area serve on this

committee. Their major projects will include updating

safety manuals and personal protective equipment procedures and implementing safety training for all staff.

NIST has developed a more effective Institute-wide
20

management system that encourages incident reporting

and incorporates training, hazard identification, and

related management strategies. 

The FY 2004 NIST-wide Balanced Scorecard metrics for

safety have an initial target reduction of 25 percent in

lost workday incident frequency and severity rates from

the previous five-year average. NIST exceeded this target

in FY 2004 with a 30 percent reduction over the previous

five-year average. A four-hour mandatory safety training

session for new employees is in place. The FY 2004

Safety Plan also includes specific activities focused on

reducing the highest incident rates that occurred in the

Office of the Director for Administration/Chief Financial

Office between FY 2000 through FY 2003 in both

Gaithersburg and Boulder largely due to plant and facilities personnel that face greater risks of injury. The

Committee is pleased that NIST’s lost workday incident

rates are decreasing, particularly in Boulder, and that

NIST is benchmarking its safety data with other organizations; however NIST should extend their discussions

with these organizations and other research laboratories

in industry to learn even more about their specific safety

practices to further improve the safety of NIST staff in

and out of the workplace. 

Reorganization/Streamlining (Administrative

Efficiency and Effectiveness) 

To help achieve organizational excellence and financial

health under austere budget conditions, NIST is

improving its internal operations by streamlining administrative functions, consolidating support organizations,

and engaging management and administrative staff from

the Operating Units in decision-making. By improving

administrative efficiency and effectiveness, more funding

will be available for NIST’s programmatic activities. For

help with streamlining administrative functions, NIST

appropriately benchmarked its practices against other

government agencies and the private sector among other

activities. NIST has already begun to reduce the management-to-staff ratio by substantially reorganizing

NIST-wide administrative services to eliminate unnecessary levels of management. Under the new structure, the

Chief Financial Officer, the Chief Human Capital

Officer, the Chief Information Officer, and the Chief

Facilities Management Officer will be reporting to the

NIST Deputy Director instead of the Director of

Administration. Other specific improvements include

transitioning to activity-based costing, consolidating

Boulder operations, establishing regular reviews of

support functions, providing a forum for staff input, and

establishing zero-based budgeting. Although NIST is

making substantial progress in improving internal operations, the Committee continues emphasizing the importance of using the Baldrige principles for determining the

appropriate level of administrative services needed

throughout the organization. 

Management of Organizations with Remote

Sites

A VCAT panel discussion on the management of organizations with remote sites was held at the September 2004

meeting in response to a NIST Laboratory Director’s

request for advice on this topic. This discussion was of

particular interest to NIST with about 86 percent of its

employees located in Gaithersburg, Maryland; 12 percent

in Boulder, Colorado; and the remaining 2 percent in a

few other remote locations. Based on their experiences,

the panel members addressed questions regarding

managing innovation with geographically dispersed

teams and administrative management. The members

shared best practices covering communications, equity in

operational support, relationships/networking, financial

support, leadership skills, and the pros and cons of

common policies. Based on the positive responses to

this panel, the VCAT welcomes suggestions from NIST

on other topics of interest where the members can share

their experiences in more detail to help the Institute

become a more effective and efficient organization in

carrying out its mission.

A 40-nanometer-wide NIST logo made with cobalt atoms on a

copper surface was produced at the NIST Nanoscale Physics

Facility. This banner served as the backdrop for the AML dedication ceremony. The ripples in the background are made by

electrons, which create a fluid-like layer at the copper surface. 

Photo credit: NIST
21

National Institute of Standards and Technology (NIST)

• U.S. Manufacturing is evolving from “blue collar” to “white collar”, driven by innovation and new technologies. The 2004 economic recovery is not restoring traditional jobs—the only way out is “high tech.”

• The European Union, China and others are increasingly using standards to drive their economies and

gain global market share.

• U.S. industries will not be competitive tomorrow, in five or ten years, if budget limitations prevent NIST

from growing to meet the challenge.

• The impact of NIST is not limited to traditional manufacturing but extends to quality of life, health care,

communications, construction, and homeland security.

• NIST enables U.S. science and technology to be developed and commercialized and to be globally

competitive.

NIST Impacts, Issues, and Requests

NIST’s measurements and standards provide the basis for sales totaling more than $5 trillion--roughly half of the

U.S. economy. 

U.S. companies increasingly depend on NIST to help ensure access to global markets especially with other nations

using standards as a competitive threat. 

Without NIST, U.S. manufacturers of health-care products such as glucose and cholesterol test kits would not be able

to meet the requirements of new European Union regulations and would have been shut out of European markets

where they now have more than a 60% share. Plus, NIST Standard Reference Materials have helped to significantly

improve the accuracy of cholesterol tests, resulting in better diagnoses and treatments and an estimated annual

savings of about $100 million.

U.S. automakers and their suppliers, which account for more than 3% of the nation’s GDP, rely on NIST Standard

Reference Materials to ensure quality in a wide range of tasks, from the processing of materials to final assembly, to

emissions compliance.

NIST’s contributions to the development of encryption standards for information technology are estimated to have

saved private industry more than $1 billion, while enabling consumers and business to be confident about the

security of their billions of dollars worth of daily electronic data transactions, such as withdrawals from ATMs.

NIST developed the testing procedures and other key technical elements of the Department of Homeland Security’s

performance standards for radiation detectors used at seaports, airports, and other points of entry into the United

States, as well as protocols for mail decontamination during the anthrax crisis.

Appendix A. NIST Impacts, Issues, and Requests:

Prepared by the VCAT, April 8, 2004
22

NIST manages the Malcolm Baldrige National Quality Program, a partnership with the private sector, which

provides a sustaining framework and criteria used by thousands of companies, schools, and hospitals to improve their

products and services.

About 2,700 law-enforcement officers have been spared from death or disabling injury as a result of NISTdeveloped standards for ballistic-resistant body armor (“bullet-proof” vests).

National Institute of Standards and Technology (NIST)

NIST’s Core Mission— measurements and standards

• Mission assigned to federal government by the Constitution

• Unique—not done by the private sector, nor other US agencies

• Only U.S. agency chartered to help business

• Includes basic science underlying measurements and standards and direct transfer to companies

• Measurements and standards provide infrastructure for the entire economy, manufacturing, commerce, and international trade

NIST Today

• Budget: $608.5M (FY 2004); Employees: 3,000 

- 0.5% 2004 Overall Federal R&D Budget

- 1.1% 2004 Non-defense R&D Budget

• Major Program areas: NIST Laboratories (STRS), Manufacturing Extension Partnership Program (MEP), Advanced

Technology Program (ATP), Baldrige National Quality Program (BNQP)

• Well-managed, continuous improvement following strategic plan.

• NIST Laboratories (STRS)

- Conducts research that advances the nation’s technology infrastructure and is needed by US industry to continually improve products and services;

- Responds to industry needs for measurement methods, tools, data, and technology

• Four Strategic Focus Areas Planned: 

- Nanoscale measurement and standards

- Biosystems and health

- Information and knowledge management

- Homeland Security measurements and standards

• MEP (recent survey, of 5,015 client companies)

- Realized almost $681 million in cost savings; 

- Invested $940 million in modernization, including plant and equipment, information systems, and workforce

training; 

- Increased or retained $2.8 billion in sales; and 

- Created 8,966 jobs and retained over 26,062 jobs. 

• ATP

- More than 240 new technologies--products, processes, and services--have been commercialized;

- Rate of return on ATP investments to date is nearly $8 to $1; and

- Called the “godfather” of what is now a $1 billion biochip industry, projected to grow at an annual rate of

almost 20%. 
23

• BNQP

- Called the Nobel Prize of Business; responsible for making quality a national priority and disseminating best

practices across the US, and it is the world-wide standard for performance excellence;

- Beneficiaries are companies, schools, hospitals, industries, the national economy, and U.S. competitiveness; and

- Total economic benefit is estimated at almost $25 billion, for a benefit-cost ratio of 207 to 1.

The Budget Dilemma

• Zero growth in real resources for core mission since 1997 

• Squeezed by adjustments to base, unfunded mandates

• Politics of ITS (ATP and MEP) — squeezes core mission

• Problem of diffuse support—no focused constituency

• Risks damage to key national asset just when economy is struggling

The Essential Requests

• Support the President on STRS (NIST Laboratory Programs) 

• Restore MEP funding to previous levels ($120M)
24

Technical excellence is evident in many of NIST’s

programs as reflected by the prestigious awards

bestowed upon the technical staff for outstanding accomplishments; NIST’s responsiveness to Congressional

mandates in high visibility areas; NIST’s technical

accomplishments that are featured in the scientific

media; and the high quality research presented to the

VCAT members during selected laboratory tours.

Examples of prestigious external awards that recognize

NIST accomplishments include the MacArthur Genius

Award to Deborah Jin for the first observation of a

fermionic condensate formed from pairs of atoms in a

gas; Service to America Medals finalists in the areas of

superconductivity and DNA identification; the

International Society for Forensic Genetics Award; and

the Arthur S. Flemming Awards. Scientific journals and

other news media also have highlighted NIST technical

achievements. 

At each meeting, the VCAT members tour selected NIST

laboratories to gain an appreciation of the high quality

technical work and staff expertise that prevail at both

campuses. These tours also provide the Committee with

an excellent opportunity to examine how the technical

programs support the NIST Strategic Plan. Provided

below is a brief summary of the FY 2004 tours that illustrate the technical excellence of NIST’s programs, their

impact to the nation, and their relationship to the NIST

Strategic Plan. In addition, the Committee was

extremely impressed with each of the researchers’ depth

of knowledge and enthusiasm as they described their

exciting projects. 

Measurement Science

Quantum Computing with Ions – NIST is successfully

addressing some of the most challenging measurement

problems in the physical sciences that place NIST at the

scientific forefront. This world-class research at NIST

has demonstrated several firsts in quantum computing

and quantum state engineering, including the first

demonstration of all the components needed for a

scalable computer, the first demonstration of quantum

teleportation to rapidly transfer information in a quantum

computer, and the first demonstration of using quantum

mechanics to substantially reduce measurement uncertainty. This research is expected to lead to the exciting

development of quantum computers vastly more

powerful than today’s best supercomputers. Part of the

NIST Quantum Information Program, this project is an

excellent example of successful cross-collaboration

among the NIST laboratories with expertise from the

Physics Laboratory, the Information Technology

Laboratory, and the Electronics and Electrical

Engineering Laboratory. The project is partially

supported by the National Security Agency/Advanced

Research and Development Activity and the NIST competence program. The highly acclaimed research was

widely publicized in scientific journals, including Nature

(cover story), and in other media. 

Chip-Scale Atomic Clock – For decades, NIST has been

a world leader in the development of new technologies

for measuring time and frequency. In the latest advance

in time keeping, NIST has been successful in bringing

together the diverse competencies needed to design,

fabricate, and characterize ultraminiature atomic clocks.

These atomic clocks provide an entirely new dissemination channel for NIST’s ability to measure time. This

effort is part of a Defense Advanced Research Projects

Agency (DARPA)-funded consortium with several

companies to develop atomic clocks about the size of a

grain of rice that could be powered by an AA battery and

stable to 1 part in 10 billion, equivalent to gaining or

losing just 1 second every 300 years. NIST is close to

meeting these requirements, and is demonstrating the use

of micro-electro-mechanical systems (MEMS) fabrication techniques that could someday be used to mass

produce inexpensive, ultraminiature atomic clocks for

use in such applications as wireless telecommunications,

enhanced global positioning system (GPS) receivers, and

communications security. 

Microscale Analytical Laboratory – NIST competence

funding established the foundation for a strong microfluids metrology program that has now attained international stature. The Microscale Analytical Laboratory was

Appendix B. Examples of Technical Excellence:

Lab Reviews Conducted by the VCAT in FY 2004
25

established at NIST in 1998 as a five-year competencefunded project to advance the knowledge and understanding of “Lab-on-a-Chip” devices based on microfluidics technology. These microfluidic devices are miniaturized chemical and biochemical analyzers that can be

used in the future for quick, inexpensive diagnostic tests

of very small samples such as blood, DNA, and spinal

fluid. The program has attracted additional funding from

DARPA and NIH to assist in the development of

microfluidic systems for homeland security, forensic

analysis, and health care applications. NIST’s chemists

and biomedical engineers are developing techniques for

improving flow through these devices and for verifying

the accuracy of the analyses. A detailed understanding of

the flow and mixing of fluids within the microchannels

is a key to commercialization of this technology. 

Biosystems and Health

Center for Mechanical Behavior of Biological Materials

(CMBBM) – The CMBBM is a well-designed suite of

projects that are tackling intriguing measurement

problems in the life sciences through creative partnerships. NIST recognized a burgeoning need in the

medical research community to understand the role that

the mechanical behavior of biological materials plays in

tissue-engineered structures, as well as in both normal

and diseased tissues. To address these needs, NIST

formed a research team and established the

CMBBM to develop and promote measurements,

standards, and technology for understanding the

mechanics of biological materials at the cell, cell

+ matrix, and tissue levels. This research will

enable the medical research community to grow

fully functional tissue-engineered structures and

understand the mechanical effects of chronic

diseases and other conditions. Through the

CMBBM, NIST brings its experience in physical

metrology and engineering skills to bear on

critical measurement and standards challenges in

the life sciences. In each area, NIST is implementing these projects through external collaborations with the Colorado research science and

technology community. 

“Higher Order” Reference Methods and Certified

Reference Materials for In Vitro Diagnostics – NIST’s

extensive linkages to the clinical measurements

community (see Table 9) and its renown for providing

internationally-recognized standards makes the Institute

uniquely qualified to respond to U.S. manufacturers’

request for help with exporting in vitro diagnostic

medical devices (IVD MD). Approximately 60 percent

of the IVD MD currently on the $6 billion per year

European market are imported from the United States.

The U.S. IVD manufacturers have requested that NIST

provide the internationally recognized “higher order”

reference methods and certified reference materials

required for them to meet the new European Directive on

traceability in order to continue to export their IVD

devices to Europe. To help achieve this goal, NIST plays

a lead role in the international Joint Committee on

Traceability in Laboratory Medicine (JCTLM) Working

Group on Reference Materials and Reference

Measurement Procedures. Furthermore, NIST’s clinical

diagnostics program action plan calls for the Institute to

provide increased comparability of clinical diagnostic

measurements through provision of higher order

reference methods and Standard Reference Materials for

all high priority diagnostic markers identified by the U.S.

IVD industry and JCTLM.
26

Cold Neutrons for Biology and Technology – The unique

capabilities of the NCNR coupled with extensive bioengineering partnerships and NIST staff expertise

provide an excellent environment for achievements in

biomedical research. Experiments in biology and

biotechnology account for nearly 20 percent of research

using the NCNR’s supply of “cold” neutrons. NCNR’s

cold neutrons are proving to be especially useful for

probing the nanoscale structure and interactions in biological membranes and for relating protein structure and

dynamics to function - information key to the design of

new drugs for preventing and treating human diseases.

The Cold Neutrons for Biology and Technology

Consortium, a collaboration of university and government scientists funded by the NIH, is using two state-ofthe-art small-angle neutron scattering instruments at the

NCNR to investigate the key structures and behavior of

cell membranes and their components, which promise

important advances in biomedical research.

Nanotechnology 

NIST Nanofabrication Facility – NIST’s unique state-ofthe-art facilities for nanotechnology research competencies will be key to the growth of nanotechnology for the

nation, and is expected to be a centerpiece for nanotechnology research in the mid-atlantic region. Located in

the newly constructed AML, the NIST Nanofabrication

Facility is an approximately 1500 square meter Clean

Room with 12 Class 100 bays. NIST’s vision for this

facility is to enable the fabrication of prototypical

nanoscale test structures, measurement instruments,

standard reference materials, electronic devices, MEMS,

and bio-devices critical to NIST’s SFAs and the nation’s

nanotechnology needs. 

Unique Instrumentation for Enhanced Raman

Spectroscopy – NIST’s unique instrumentation for

enhanced Raman spectroscopy contributes to the development of methods to measure and control single biological molecules. Surface Enhanced Raman Spectroscopy

(SERS) is a non-invasive, powerful, “chemical vision”

technique interfacing nanotechnology and bioscience for

unprecedented sensitivity. First in-class instrumentation

designed and developed at NIST allows researchers to

observe the Raman vibrational modes or chemical

signature of a biomolecule with ultra fine temperature

and magnetic control. Plans are underway to make

available these unique techniques to collaborators

through the NIST Nanofabrication Facility within the

AML.

Nanoscale Physics Facility – Another important

component of NIST’s nanotechnology research portfolio

is the Nanoscale Physics Facility. This state-of-the-art

facility was constructed to pursue a major program in

quantum and spin electronics. The facility provides

atomic resolution imaging and the ability to probe electronic structures with high electron energy resolution. A

new version of this facility will be installed at the AML

with a state-of-the-art cryogenic scanning tunneling

microscope to create specific, perfect nanostructures. 

Homeland Security 

Studies to Improve First Responder Communications -

NIST’s core competencies in electromagnetics and

wireless communications will contribute to the improved

safety of rescue workers and victims. In close collaboration with the private sector and state and local officials,

NIST conducted field studies on the measurements of

transmitter signals from various critical emergency communication devices placed in key locations in controlled

building collapses. The NIST research team actively participated in the collection of communications data from

the implosions of a 13-story Fischer Public Housing

Project in New Orleans in January 2004 and the Veterans

Stadium in Philadelphia in March 2004. The final report

from these studies has not yet been published.

NIST engineers are recording communication signals received from

transmitters buried within the rubble of an imploded 13-story public

housing project in New Orleans. This project is part of NIST's efforts

to improve first responder communications.

Photo credit: NIST
27

At the September 2004 VCAT meeting, the NIST Acting Director provided a detailed status report on how the

Institute is addressing each of the twelve recommendations from the FY 2003 VCAT Annual Report. NIST has

committed to provide detailed progress reports to the Committee twice a year on these and other VCAT recommendations. NIST has made substantial progress in addressing these recommendations (see Table 10). This new formal

reporting system closes the loop between the VCAT’s observations, recommendations, and NIST’s response. 

The Committee is very appreciative of the Institute’s continued openness and the breadth of information and data

provided on the topics presented over the course of the meetings. With this information, the VCAT is better able to

advise the Institute on its policies, organization, budget, and programs to help NIST best support the nation’s scientific and technical needs.

Appendix C. NIST Response to FY 2003 VCAT

Annual Report Recommendations

Table 10. NIST Response to FY 2003 VCAT Annual Report

Recommendations

VCAT Recommendations NIST Status

NIST 2010 STRATEGIC PLAN

Implementation of the Plan

Continue to reflect the plan as quickly as possible in

the operating plans and in real-time program

decisions. (pg. 2)

Overview: NIST continues to develop its long-term

planning processes, and since 2003 has systematically

sought and responded to the VCAT’s feedback on the

NIST 2010 Strategic Plan and associated planning

processes and management priorities. VCAT meetings

during this time have focused on apprising the

Committee of NIST’s progress in implementing its longrange plans and, through lab tours, conveying the nature

and value of NIST’s work in its strategic focus areas and

core measurement and standards responsibilities.

(For broad coverage of NIST’s status on this topic, see

the Director’s presentation to the VCAT on NIST 2010

implementation at the June 2004 meeting.)

NIST now uses the 2010 Plan to derive its annual budget

initiatives, structure its strategic investment choices

(such as Competence funding), and frame annual OU

Operating Plan reviews. The third annual Director’s

review of OU Operating Plans will take place in October

2004. The guidance for and actual conduct of these

reviews provide a direct link from NIST-wide strategic

planning to OU operational planning. Data on the corresponding change in NIST’s investments in its Strategic

Focus Areas were provided to the VCAT in June and will

be updated after the October 2004 reviews.
28

Provide more detail on the linkage of specific research

programs to higher-level plan goals, consistent with

customer needs. (pg. 2)

Continue to develop a method for managing resources

on a NIST-wide basis. (pg. 2)

NIST should continue to press for a collaborative role in

facilitating measurements and standards for homeland

security while working with DHS and other federal laboratories. (pg. 5)

National Measurement System (NMS)

NIST needs to strongly and broadly communicate the

benefits of an NMS to identified constituents. NIST

must define the overall goals of an NMS, identify its distinctive competencies, articulate why NIST should lead

the effort, and gain support from involved external

entities. (pg. 3)

Performance Metrics

In the FY 2003 operating plan reviews, the Director

reviewed each OU’s program portfolio to assess the

degree of alignment with NIST-wide strategic goals and

the overall set of customer needs being addressed by

each OU. The guidance provided for the Director’s

Review for the FY 2005 OU Operating Plans continues

this assessment and requests new detail on the

alignment of OU investments with industry needs.

Further progress in this direction is evident in the senior

management team’s decisions on and approach to

annual budget initiatives; alignment of strategic and

operational plans; and strategic internal investments

(“Competence” funding).

Through the efforts of the Strategic Working Group for

Homeland Security and specific OU-level interactions,

NIST has worked closely with DHS and other organizations to maximize the use and leverage of NIST’s competencies in such areas as biological, chemical, and

radiation detection; standards and guidelines for

buildings; standards for personal protective equipment;

communication standards for first responders; cybersecurity; and other areas central to homeland security.

(NIST’s approach to the National Measurement System

was included in a presentation by R. Kayser to the VCAT

in June 2004.)

NIST will be producing a response to this recommendation based on the work of an internal task force

comprised of several laboratory Division Chiefs. This

task force produced a scoping paper that was favorably

reviewed by the VCAT in June; based on that response,

the task force currently is conducting a broad set of

interviews with customers and stakeholders and will be

providing preliminary findings to the NIST Senior

Management Board in November 2004. These findings

will be incorporated in subsequent revisions to NIST

2010.

(NIST has conducted extensive discussions with the

VCAT regarding OMB evaluations of NIST using the

Program Assessment Rating Tool, and has provided

updates on new evaluation and performance management strategies, including the development and deployment of a new Balanced Scorecard performance management tool.) 
29

Next revision of the Plan should identify clear and reasonably direct economic benefits for each of the major

elements. (pg. 5)

Organization-wide performance metrics must be

developed for the portfolio of NIST's projects. Levels of

metrics should cascade down through the levels of the

Plan with direct application to the research programs.

(pg 5)

NIST should review the Baldrige criteria for applicability

toward developing a better balanced scorecard with

leading indicators. NIST encouraged to include

customer satisfaction measures. (pg. 5)

SAFETY

Develop a plan to include the staff in actively reducing

the reportable injury rates. Suggestions include implementing a hazard identification system and reinforcing

positively the reporting of incidents. (pg 6)

Version 1.b of the NIST 2010 Strategic Plan describes

the anticipated impacts of fulfilling NIST’s programmatic

goals and specific research objectives within each

strategic focus area. While the VCAT approved version

1.b in June 2004, some members suggested that NIST

should seek to further develop and refine its anticipated

impact statements specific to each strategic objective.

Pending the availability of adequate resources in FY

2005, NIST will pursue this objective through new

prospective economic impact studies.

Starting in FY 2004, NIST adopted a Balanced

Scorecard approach to defining NIST-wide performance

goals and metrics. The Scorecard was used in FY 2004

to evaluate organizational performance and senior management performance, and provided a framework for

cascading metrics and evaluation methods throughout

all levels of the organization. The NIST Senior

Management Board is now finalizing a revised scorecard

for FY 2005.

NIST has developed its Balanced Scorecard with the

Baldrige framework in mind. In FY 2004 NIST improved

its ability to conduct transactional customer satisfaction

surveys, expanding coverage to include web-based

content delivery as well as conferences and workshops.

The revised Scorecard for 2005 calls for new types of

customer satisfaction metrics, currently under development by the Customer and Stakeholder Council.

Overview: NIST has firmly established safety as the

highest priority concern of senior management. Safety

results, incident reports, and mitigation / response

strategies are discussed at the outset of each Senior

Management Board meeting. NIST-wide results have

been reported regularly to the VCAT through the

Director’s update as well as through focused presentations (see B. Koch, December 2003). Current data show

a successful reduction in lost workday incidents from

2003 to 2004 (year to date).

NIST has established and formalized a more effective

NIST-wide management system for safety that encourages incident reporting and incorporates training, hazard

identification, and related management strategies.

Safety results are tracked monthly by the Senior

Management Board, and are a key component of the

NIST-wide Balanced Scorecard. 
30

ORGANIZATIONAL EFFICIENCY

Reorganization

Further work is needed to define the responsibilities of

the top executive team members to minimize overlap

and to free the NIST Director to focus on external

relations. (pg. 6)

Strategic Partnerships

Continue to develop partnership models, possibly with

a large virtual component, with institutions remote from

NIST's physical locations. (pg. 7)

Budget

A mechanism needs to be found to promote stability

and long-range direction of NIST's budget. (pg. 7)

Overview: NIST began a major focus on organizational

efficiency with the establishment of the Business Council

in 2002.

(NIST designed, submitted, and recently received formal

approval of a substantial re-organization of NIST-wide

administrative functions. The overall intent and rationale

for these changes have been discussed with the VCAT;

full implementation will be effective 10/1/04.)

NIST’s administrative reorganization clearly defines the

responsibilities of NIST’s top executive team. A key

element of this reorganization included the establishment

of a Chief of Staff to the NIST Director, with the explicit

goal of enhancing the Director’s focus on external

relations. Indicators of success during FY 2004 include:

The NIST Director made significant contacts with SIA,

CCR, APS, AIAG, GM, UTC, Agilent, Honeywell, Oracle,

DuPont, Dow, NACFAM, and others; delivered numerous

presentations to various scientific and engineering

societies; and provided program and budget briefings for

key associations and companies. One indicator of

success: More than 110 customers signed a letter to

Congress developed by a new Coalition for NIST. Key

congressional staff indicated customer advocacy was

being recognized in appropriations deliberations.

(As discussed with the VCAT in June, strategic partnerships are a fundamental implementation channel for

NIST’s long-term strategic plan, NIST 2010. NIST’s

overall approach was discussed with the VCAT in June

2004, and progress reports have been provided on a

regular basis through Director’s updates to the VCAT.)

NIST has a sustained and focused effort to maximize

programmatic leverage and impact through strategic

partnerships, building on the existing successes with

JILA and CARB. NIST’s efforts during FY 2004 have

focused on the NIH, NSF, University of Maryland, and

University of Illinois.

(NIST’s budgetary requirements and circumstances have

been a sustained focus of discussion with the VCAT

throughout FY 2004.)

NIST encourages and benefits greatly from the VCAT’s

recognition of NIST’s resource needs, acknowledgement

of the value of long-term stability for research-intensive

programs, and expression of its views about the

economic and societal benefits of adequate support for

NIST’s programs.

Source: Prepared by NIST and distributed to the VCAT, Sept.14, 2004.

Note: Page numbers refer to the FY 2003 VCAT Annual Report.


Cover Photo Credits (clockwise from top)

1. © Robert Rathe

2. Beamie Young/NIST

3. Courtesy HDR Architecture, Inc./Steve Hall © Hedrich Blessing

4. Gail Porter/NIST

5. © Robert Rathe

6. © Geoffrey Wheeler

7. © Robert Rathe

8. Courtesy HDR Architecture, Inc./Steve Hall © Hedrich Blessing

9. Gail Porter/NIST