Strategic Objective 2.1

Develop tools and capabilities that improve the productivity, quality, dissemination, and efficiency of research

Through NIST, the Department works with U.S. industry and other stakeholders to promote U.S. innovation and industrial competitiveness by ad-vancing measurement science, standards, and technology in ways that enhance economic security and improve quality of life. NIST fulfills its broad responsibilities and works to foster science and technological leadership by helping the United States to drive and take advantage of the increased pace of technological change, fostering more efficient transactions in the domestic and global marketplace, and addressing other critical national needs assigned to NIST by the Administration and Congress.

Vice President Dick Cheney and Commerce Secretary Carlos Gutierrez present the 2005 Baldrige National Quality Award to representatives of DynMcDermott Petroleum Operations Company. Since 1993, the firm has operated and maintained the U.S. Strategic Oil Reserve, a cache of up to 700 million barrels of crude oil. Photographed by Ron Bell for the Department of Commerce.

Among its activities, TA accomplished the following in FY 2006:

• Nanotechnology: Stable Polymer Nanotubes May Have a Biotech Future. Scientists at NIST have created polymer nanotubes that are unusually long (about one centimeter) as well as stable enough to maintain their shape indefinitely. Manipulating lasers as “tweezers” and “scalpels,” the researchers created tiny, fluid-filled polymer tubes less than 100 nanometers (nm) in diameter. The NIST team developed processes for extending the shelf life of polymer nanotubes—considered essential for commercial applications—and forming sturdy nanotube network structures. The NIST nanotubes may have biotechnology applications as channels for tiny volumes of chemicals in nanofluidic reactor devices, for example, or as the “world’s smallest hypodermic needles” for injecting molecules one at a time.
• Quality: NIST Extending Baldrige Program to Non-profit Organizations. Starting in 2007, non-profit organizations—including charities, trade and professional associations, and government agencies—will be eligible to apply for the Malcolm Baldrige National Quality Award, the nation’s highest honor for performance excellence and quality achievement. In 2006 ten non-profit organizations—including federal, state, and local agencies—applied to a pilot application program run by NIST in preparation for the 2007 award process. In April 2006 Vice President Cheney and Secretary Gutierrez recognized the six recipients of the 2005 Baldrige Award, including, for the first time, a community college, an automotive dealership, and an oil industry business.
• Reducing Barriers to Trade: Commerce Acts to Simplify Telecom Trade with Singapore. In June 2006, new, streamlined regulatory approval procedures came into effect in the United States and Singapore, reducing technical barriers in the telecommunications trade between the two countries. Singapore officially recognized four U.S. organizations identified by NIST as “certification bodies” as qualified to determine whether shipments of telecommunications products comply with that country’s required standards. Prior to this action, procedures for certifying U.S. telecommunications exports were performed entirely by Singapore organizations. The new procedures eliminate the need for often-duplicative testing and allow U.S. manufacturers of telecommunication equipment to certify their products at home and ship directly to the $1.3 billion Asian market.

SUMMARY OF STRATEGIC OBJECTIVE 2.1 PERFORMANCE GOALS

PERFORMANCE GOAL	STATUS*
Promote innovation, facilitate trade, and ensure public safety and security by strengthening the nation’s measurements and standards infrastructure (TA/NIST)
Accelerate private investment in and development of high-risk, broad-impact technologies (TA/NIST)
Raise the productivity and competitiveness of small manufacturers (TA/NIST)
Enhance public access to worldwide scientific and technical information through improved acquisition and dissemination activities (TA/NTIS)
* = MET (100%) = SIGNIFICANTLY MET (75% - 99%) = NOT MET (<75%) = NOT APPLICABLE (back)

Performance Goal: Promote innovation, facilitate trade, and ensure public safety and security by strengthening the nation’s measurements and standards infrastructure (TA/NIST)

The nation’s ability to innovate and compete in a global economy depends on a robust scientific and technical infrastructure, including research, measurement tools, standards, data, and models. The NIST Laboratories develop and disseminate measurement techniques, reference data, test methods, standards, and other technologies and services required by U.S industry to compete in the 21st century.

Progress on this goal is evaluated using an appropriate mix of specific output tracking, peer review, and economic impact analyses. Together, these evaluation tools, combined with continual feedback from customers, provide a comprehensive picture of performance toward this long-term goal. Additional information on these evaluation methods is available at
http://www.nist.gov/director/planning/strategicplanning.htm.

Specific achievements of this performance goal are described below:

• Technical publications represent one of the major mechanisms NIST uses to transfer the results of its research to support the nation’s technical infrastructure and provide measurements and standards—vital components of leading-edge research and innovation—to those in industry, academia, and other government agencies. Each year NIST’s technical staff produce a total of 2,000-2,200 publications with approximately 50 to 60 percent appearing in prestigious scientific peer-reviewed journals. In FY 2006, NIST staff authored 1,163 publications in peer-reviewed journals.
• SRMs are the definitive source of measurement traceability in the United States; all measurements using SRMs can be traced to a common and recognized set of basic standards that provides the basis for compatibility of measurements among different laboratories. SRMs certified by the NIST Laboratories are used by customers to achieve measurement quality and conformance to process requirements that address both national and international needs for commerce, trade, public safety, and health. In FY 2006, NIST sold 31,195  SRMs.
• Online data represent another method NIST uses to deliver measurement and standards tools, data, and information. NIST provides online access to more than 80 scientific and technical databases covering a broad range of substances and properties from a variety of scientific disciplines. These technical databases are heavily used by industry, academia, other government agencies, and the general public, with more than 90 million estimated downloads in FY 2006. For example, in June 2006, the NIST Mass Spectrometry Data Center added a major class of spectra to its reference collection. The “NIST Peptide Ion Fragmentation Library” enables highly reliable protein identifications to be made with far greater sensitivity and speed than previously possible. The data has applications in a wide variety of biotechnologies, including pharmaceuticals, health care, agriculture, and food.
• Today’s global marketplace demands rapidly conducted, highly accurate, and efficiently delivered measurements. NIST measurement services, including calibration services, are critical for ensuring product performance and quality, improving production processes, making marketplace transactions fair and efficient, and leveling the playing field for international trade. NIST calibration services provide the customer with direct traceability to national and international primary standards. NIST offers more than 500 different types of physical calibrations in areas as diverse as radiance temperature, surface finish characterization, and impedance; in FY 2006, NIST calibrated 3,026 items.

Accomplishments and applicable quantitative data used to evaluate progress on this long-term performance goal are reviewed quarterly. Quantitative data are collected and reported by NIST Technology Services.

External and independent evaluation of the research and measurement standards work of the NIST Laboratory Programs is conducted regularly. This type of peer review, combined with quantitative evaluation metrics focused on dissemination of NIST’s measurements and standards work, demonstrate the laboratories’ contribution to the nation’s measurement and standards infrastructure.

In FY 2006, a JILA External Review Committee, created by the University of Colorado, conducted a four-day, in-depth review of the operations and scientific activities of JILA. JILA is one of the nation’s leading research institutions in the physical sciences and is jointly operated by NIST and the University of Colorado. The review committee consisted of representatives from universities across the country and NIST staff. The committee was unanimously impressed by the overall high quality of scientific research and organizational management at JILA, and concluded that “JILA is truly a unique organization that blends the research cultures of a university and a government laboratory in ways that lead to synergistic and innovative approaches to… challenging scientific problems.”

John L. (Jan) Hall of NIST and the University of Colorado at Boulder was named a co-winner of the 2005 Nobel Prize in Physics for his pioneering work in the development and transformation of the laser from a laboratory curiosity to one of the fundamental tools of modern science and a ubiquitous component of modern communications systems. Photographed and copyrighted by Geoffrey Wheeler.

Also in FY 2006, the National Research Council (NRC) Board on Assessment (BOA) delivered a biennial report on the NIST Laboratories focused on the following areas:

• The technical quality and merit of the laboratory programs relative to the state-of-the-art worldwide.
• The effectiveness with which the laboratory programs are carried out and the results disseminated to customers.
• The degree to which the laboratory programs are meeting the needs of intended customers.
• The adequacy of the laboratories’ facilities, equipment, and human resources insofar as they affect the quality of the technical programs and the effectiveness with which the laboratories meet customers’ needs.

In the latest NRC assessment report, the BOA indicated that it was impressed with the technical quality of NIST’s work: “NIST carries out in a superb fashion an absolutely vital role in supporting as well as facilitating the further development of the technological base of the U.S. economy. Its personnel and scientific programs are, by scientific measures, among the best in the world, and its explicit and continuing attention to the needs of its customers keeps it alert to the changing technological environment to which it must be responsive….” This report is available online at http://www.nist.gov/director/AssessmentReport.pdf.

In addition to peer reviews, the programmatic goals and strategic direction of NIST as a whole are reviewed regularly by the Visiting Committee on Advanced Technology (VCAT). The VCAT is a legislatively mandated panel of external advisors that meets quarterly to review NIST’s general policy, organization, budget, and programs. In its most recent annual report, the VCAT commended NIST for “aggressively undertaking new strategic planning activities to help ensure that programs and investment strategies are better aligned with NIST’s mission and national priorities.” See http://www.nist.gov/vcat/ for additional information on the VCAT, including its most recent annual report.

Performance Goal: Accelerate private investment in and development of high-risk, broad-impact technologies (TA/NIST)

Phase-out of the Advanced Technology Program (ATP) was initiated in FY 2006. ATP is a cost-shared funding program for businesses that was intended to develop new technologies for commercial use.

Key indicators of the generation and diffusion of new com-mercially relevant technical knowledge include patents and technical publications generated by Advanced Technology Program (ATP)-funded projects and ATP-funded projects with technologies under commercialization. Although ATP did not issue any new awards in FY 2006, the long-term nature of ATP-funded projects results in a three to five-year lag from initial project funding to the generation of measurable outputs and outcomes.

Specific achievements of this performance goal are described below:

• Publications and patents represent major channels for the diffusion of technical knowledge that results from ATP investment in the development of new technologies. Past ATP-funded research generated more than 1,700 cumulative publications and more than 1,400 cumulative patents through FY 2005.
• The number of ATP-funded projects with technologies under commercialization is an indication of the extent to which ATP-funded research leveraged or catalyzed new products and services. Through FY 2005, over 340 ATP projects have technologies under commercialization.

Evaluation is a central part of ATP’s operation. ATP uses a variety of methods, including internal assessments, external program reviews, and economic impact studies to assess and evaluate the program. Additional information on ATP’s evaluation methods is available at: http://www.atp.nist.gov/eao/eao_main.htm.

The measures above, along with other programmatic accomplishments, are used to evaluate ATP’s progress towards its long-term goal of increasing investment in and development of new technologies. Data are gathered from the portfolio of ATP project participants through ATP’s Business Reporting System (BRS). BRS reports are reviewed by ATP’s Economic Assessment Office and the individual project managers overseeing the ATP project.

The programmatic objectives and management of ATP are reviewed by the ATP Advisory Committee. Additional information on the ATP Advisory Committee, including recent annual reports, is available at
http://www.atp.nist.gov/adv_com/ac_menu.htm.

In FY 2006, NIST began an effort to ensure that the results of funded research are available to the private sector for future technology development and commercialization after the program is concluded.

Performance Goal: Raise the productivity and competitiveness of small manufacturers (TA/NIST)

The most significant challenge facing U.S. manufacturers continues to be coping with accelerating technological change and global competition. The firms that succeed will be those best able to manage the complexity and rapid change affecting all aspects of the manufacturing enterprise. Through the Hollings Manufacturing Extension Partnership (MEP) program’s nationwide network of manufacturing centers, which are linked to state, university, community college, and private sources of technology and expertise, NIST helps smaller firms adopt new and advanced manufacturing and management technologies and innovative business practices to position them to compete in the global economy.

MEP clients receive technical, business, and innovation services through interactions ranging from informational seminars and training to in-depth technical assistance in areas such as new product development, lean implementation, quality improvement practices, human resources and organizational development, and industrial marketing.

Specific achievements of this performance goal are described below:

• MEP’s network of manufacturing assistance centers works at the grassroots level with each center providing their local manufacturers with expertise and services tailored to their most critical needs. In FY 2005, MEP centers provided services to 16,448 clients in industries such as fabricated metal products, computer and electronic products, and transportation equipment.
• Through an annual survey of clients, the Program obtains quantifiable impacts of MEP services on its clients’ bottom line. MEP demonstrates the impact of its services on three key quantitative business indicators that, as a set, suggest the presence of business changes that are positively associated with productivity, revenue growth, and improved competitiveness. The measures include (1) increased sales attributed to MEP assistance, (2) increased capital investment attributed to MEP assistance, and (3) cost savings attributed to MEP assistance. Estimates from the most recent survey results from services provided in FY 2005 show increased sales of $2,508 million, increased capital investment of $2,013 million, and cost savings of $816 million all attributed to the services received from MEP centers.

MEP’s data collection process is designed to obtain actual client impacts and, as a result, client survey data lag by approximately one year. The survey process, coupled with the timeline for producing the Performance and Accountability Report (PAR), precludes the reporting of actual FY 2005 data. The data reported in the PAR represent a combination of three-quarters of actual client reported impacts and one-quarter of estimated client impacts. The estimate is based on the final quarter of FY 2004 survey data and has been adjusted to reflect the number of clients anticipated in the final FY 2005 survey quarter. Final FY 2005 data will be available in December 2006.

These data, along with other programmatic accomplishments, are used to evaluate progress on this long-term performance goal. MEP’s Client Impact Survey is administered by a private firm. Each quarter, data are reviewed by NIST MEP staff and center staff. Based on defined criteria, impacts are selected by NIST MEP for confirmation and verification by center staff.

As with other NIST programs, the programmatic objectives and management of MEP are reviewed by the VCAT and MEP’s National Advisory Board (NAB), which was established by the Secretary of Commerce in October 1996. Recently, the charter for the MEP NAB was amended to add flexibility and respond to the program’s shift in emphasis to enhancing firms’ innovation capabilities. NIST is now in the process of selecting additional board members. Several nominees have been identified, additional candidates are being sought, and the Program anticipates scheduling a NAB meeting in the fall of 2006.

Performance Goal: Enhance public access to worldwide scientific and technical information through improved acquisition and dissemination activities (TA/NTIS)

Bringing scientific and technical information to U.S. business and industry.

NTIS, a component of TA, seeks to promote innovation and economic growth for U.S. business by (1) collecting, classifying, coordinating, integrating, recording, and cataloging scientific and technical information from a variety of sources, foreign and domestic; (2) disseminating this information to the public; and (3) providing information management services to other federal agencies that help them interact with and better serve the information needs of their own constituents, and to accomplish this without appropriated funds.

STRATEGIES AND FUTURE PLANS

The U.S. technology sector operates in a dynamic global environment that has changed radically since the end of the Cold War. The emergence and the strength of new economies in countries such as China and India, as well as the dramatic increase in the pace of innovation around the world, have resulted in a transformation of the technological and competitive landscape for the U.S. technology sector. The results are newer, larger global market opportunities, and more and stronger global competitors. Because the United States cannot generally compete in the area of low-cost manufacturing and labor, technological innovation will remain a key differentiator for the United States. TA/US will continue to work to identify barriers to and foster the U.S. technological innovation process for rapid development, deployment, and commercialization of new and emerging technologies with broad economic and social potential.

To address these priorities and fulfill its mission, TA/US engages and works with industry, Department bureaus and federal agencies, and other stakeholders in the innovation community to help maximize the contribution of technological innovation to the growth of the U.S. economy. Through its analytical policy focus, TA/US helps frame and explore key issues related to emerging technologies, the innovation infrastructure, technology transfer, general business climate, economic security, and market opportunities that affect U.S. innovative capacity, competitiveness, and economic growth. TA/US identifies problems and barriers to technological innovation, promotes new models of technology transfer and R&D collaborations, offers policy recommendations to address challenges posed by technological change, and examines other concerns related to technological innovation. By engaging key stakeholders in dialogue and through rigorous analysis of collected data and information, TA/US provides new knowledge and intelligence about the innovative capacity of U.S. firms and workers that inform the actions of the Secretary of Commerce, policymakers, and stakeholders.

Analytical findings are delivered and disseminated through a variety of media and products, including congressional testimony, briefings, reports, and the TA/US Web site; advocacy in the federal interagency policy process and appropriate international fora; workshops and conferences; and other channels. Through the dissemination of TA/US’s analysis, U.S. policymakers, leaders, and decisionmakers are provided with increased knowledge and a deeper understanding of trends and policy implications brought about by rapid advancement of new and emerging technologies and the globalization of technological innovation. TA/US’s portfolio of policy work adapts and evolves in alignment with the dynamic, fast-paced, and increasingly more technology-driven, knowledge-based global economy.

NIST uses a variety of methods, including hosting conferences and workshops; participating on standards committees; and ongoing interactions with industry, professional groups, universities, and other government agencies; to identify the needs of its diverse customers. As usual, NIST hosted a large number of conferences and workshops in FY 2006, ranging from nanoscience to biometrics to quantum computing and organizational performance improvement. This year, NIST supplemented its usual large number of conferences and workshops with a special series of private-public sessions for the USMS—all aimed at identifying priority measurement needs impeding future technological innovations. NIST led this comprehensive assessment of the USMS, and NIST scientists continued to work closely with industry on developing research and development (R&D) roadmaps. Through these private-public collaborations, priority measurement needs from across industry and the economy are identified, along with potential solutions and viable solutions providers. In addition, NIST conducts retrospective and prospective economic impact studies annually to prioritize R&D funding and ensure that the Department conducts the highest priority research. Two new studies launched this year address biotechnology and semiconductor industry measurements. Additional studies are planned to quantify the economic impact of formal standards-related activities.

In 2006, MEP developed a Next Generation strategic plan focused on providing the innovation services that U.S. manufacturers need to grow, transform, and remain globally competitive. The plan includes a much stronger emphasis on providing technology-intensive services to U.S. small manufacturers. The Next Generation MEP will continue to leverage and expand relationships, partnering at both the federal and state level with organizations that have complementary goals focused on meeting the most pressing needs of the manufacturing community. MEP’s planning process is ongoing, with input from a stakeholder list that includes small manufacturers, state representatives, and economic development partners; manufacturing related associations; universities; community colleges; and MEP center staff; as well as national stakeholders in the Departments of Commerce, Labor (DOL), and Defense (DOD). This broad level of input provides a more complete picture of national manufacturing needs, the manufacturing infrastructure in which the MEP centers operate, and the priorities of the manufacturing community.

Phase-out of ATP was initiated in FY 2006. Special attention is being given to documenting the results of funded research to ensure maximum private sector use is made of this investment in the years ahead.

In a continuing effort to develop state-of-the-art capabilities to disseminate scientific and technical information to the public NTIS has developed a strategic plan that focuses on accelerating the transformation of NTIS into a flexible, adaptable, electronically-based information acquisition, dissemination, and preservation entity. NTIS launched strategic initiatives in human capital and in business process re-engineering of mission-critical processes and continues to develop a detailed strategic roadmap that responds to changes in the information acquisition and dissemination environment. NTIS’s strategic plan supports both the President’s Management Agenda (PMA) and the Department’s strategic plan. Achievements recognized from this implementation include management development teams addressing identified initiatives, regularly scheduled financial reviews, and development of human capital plans identifying mission critical occupations. These changes will ensure that the challenge of permanent preservation of and ready access to the taxpayers’ investment in R&D through the acquisition, organization, and preservation of the titles added annually to the permanent collection will maximize scientific and technical information dissemination contributing to the U.S. economic growth.

Federal Acquisition Circular (FAC) 2005-10 was published on June 28, 2006 regarding the FAR Case 2005-033 Interim Rule implementing the Wage Determinations Online Program Web site (http://www.wdol.gov). WDOL.gov technical development was completed by NTIS through a cooperative effort with OMB, DOL, DOD, General Services Administration (GSA), Department of Energy (DOE), and other agencies to improve the wage determination process. WDOL.gov is part of the Integrated Acquisition Environment (http://www.acquisition.gov), one of the e-government initiatives in the PMA.

In FY 2006, NTIS distributed the highly anticipated and highly promoted U.S. Department of Agriculture (USDA) revised Food Pyramid. NTIS continues to assist USDA in providing nutritional information products to the public through NTIS’s comprehensive dissemination program. The products disseminated have increased steadily over the past several years averaging 11.5 million items distributed annually. NTIS also continued distribution of the Administration’s “Healthy Start, Grow Smart” baby developmental series, adding the nutritional information for the second year of a child’s life. The “Healthy Start, Grow Smart” series now encompasses ages newborn through 24 months. NTIS anticipates disseminating approximately six million items in FY 2006.

CHALLENGES FOR THE FUTURE

Keeping a competitive edge in the world economy depends on the nation’s ability to generate and harness the latest in scientific and technological developments—particularly in the physical sciences and engineering—and to apply these developments to real world applications. Throughout the last decade, political and technical forces have combined to open up much of the globe to commerce. Increased emphasis on the sciences has created an environment in which continuous innovation must be sustained to maintain economic success. These growth and competition trends have significant implications for U.S. technological leadership and the economic growth and jobs they generate: the location of R&D and high-tech manufacturing, competition for high-skilled workers, and the climate for attracting global investment. Technological innovation will ensure continued U.S. leadership in science and engineering, which will in turn drive productivity, grow the economy, and solve important societal problems.

Technological innovation is vital to U.S. economic growth, the nation’s industries, and U.S. workers. The Department’s key role in the President’s American Competitiveness Initiative, which strives to keep the United States strong and secure by ensuring that it continues to lead the world in science and technology, reflects the importance of innovation to the nation’s economic future. The Department will continue to conduct high-priority research, identify technical measurement barriers to innovation, and transfer technical knowledge developed to the private sector as part of efforts to drive this initiative.