Donald Nolan 
Headquarters, Washington, DC                    October 8, 1997
(Phone: 202/358-1983)

RELEASE: 97-226

NASA ANNOUNCES 1996 STTR PHASE II SELECTIONS

   NASA's Office of Aeronautics and Space Transportation 
Technology today selected 13 research proposals for immediate 
negotiation of Phase II contracts in NASA's 1996 Small Business 
Technology Transfer (STTR) Pilot Program.  The proposal selections 
are in support of the research topics included in the Agency's 
1996 STTR solicitation.

     A total of thirty-two Phase II proposals were submitted by 
contractors completing Phase I projects.  All proposals were peer 
reviewed for both technical merit and commercial potential.  
Selections were based on the following factors:  scientific and 
technical merit, including the degree to which Phase I objectives 
were met; future importance and eventual value of the product, 
process, or technology results to the NASA mission; capability of 
the small business concern and evidence of commercial potential.

     The objective of a Phase I project is to determine the 
feasibility of the proposed research.  Phase II continues the 
research of the most promising Phase I projects.  Each of the 
thirteen selected Phase II proposals will be awarded a fixed-price 
contract valued up to $500,000 with a performance period of up to 
two years.

     The STTR Program is similar to the Small Business Innovation 
Research (SBIR) Program but varies by requiring a small business 
concern to conduct cooperative research and development by 
partnering with a research institution. At least 40 percent of the 
work must be performed by the small business concern, and at least 
30 percent  of the work must be performed by the research 
institute.

                             -end-

NOTE TO EDITORS:  A listing of the selected proposals is available 
on the Internet at the following URL:
                    http://sbir.nasa.gov