Appendix A to Part 555 - Director of Defense Research and Engineering
32:3.1.1.4.12.0.11.11.19 : Appendix A
Appendix A to Part 555 - Director of Defense Research and
Engineering June 14, 1974. Memorandum for Assistant Secretaries of
the Military Departments (R&D) Subject: Non-Defense Work in DoD
Labs and R & D Facilities.
The Deputy SECDEF, in his memorandum of 21 January 1972 to the
Secretaries of the Military Departments, on the above subject,
(enclosure 1), outlined broad policy considerations for the DoD
Laboratory Consortium formed to coordinate non-defense work being
performed by them for other government organizations. In order to
establish more precise guidelines for the Consortium, an operating
policy has been developed (enclosure 2) which establishes criteria
for Consortium membership and the type of work that may be
undertaken. Also, the following additional constraints are placed
upon the operation of this Consortium;
• The expenditure of in-house effort in any one laboratory shall
be limited to 3% of the professional man-years at that laboratory
unless expressed approval of the parent Military Department is
granted to exceed this limit.
• The DoD commitment to support the brokerage function at the
National Science Foundation shall not exceed two man-years per year
through FY 76, subject to the continued willingness of the Military
Departments to absorb the costs.
Malcolm R. Currie. January 21, 1972. Memorandum for Secretaries of
the Military Departments Director of Defense Research and
Engineering Assistant Secretary of Defense (Comptroller). Subject:
Non-Defense Work in DOD Laboratories and R&D Facilities Civil
government agencies are expressing an increased interest in the
application of defense and aerospace technology to the solution of
problems in the civil sector. Included in this interest is the
desire to exploit the technological expertise which exists in our
DOD laboratories for the solutions of domestic problems. Separate
and distinct from work done for defense oriented agencies such as
AEC and NASA, our DOD laboratories have, for may years, performed
selected projects for other agencies upon request. Recently,
fifteen of these laboratories have formed a consortium for the
purpose of coordinating the non-defense work being performed by
them for other government organizations. Although the level of
effort is a very small percentage in these laboratories at the
present time, the aggregate can have a substantial beneficial
impact on domestic programs.
It is generally conceded that the most efficient transfer of
technology occurs when the adaptation of a technology to a new
purpose is carried out by the team which carried out the original
development. Recognizing this, the Federal Council on Science
and Technology (FCST) has approved a “Policy for Expanded
Interagency Cooperation in Use of Federal Laboratories”
(attached). I endorse the spirit and intent of this policy.
The Military Services are encouraged to participate in this
endeavor consistent with mission and legislative constraints.
The level of effort in any laboratory is the prerogative of the
cognizant Military Department which may, in turn, issue more
detailed policy guidance as appropriate. Any Military Department
policy shall be subject to the following considerations:
(a) The level of effort of the work undertaken shall be such
that it does not impede the accomplishment of the missions of the
Military Services and the defense laboratories.
(b) The projects selected for non-defense work shall be
compatible with the technological capability of the laboratory
performing the work.
(c) Projects may be undertaken in support of federal, state and
local government organizations. Non-defense work will be
performed for the private industrial sector only on an exception
basis.
(d) The full costs of projects undertaken shall be supported
by transfer of funds through formal written agreements.
(e) Jointly sponsored projects are permitted when there is
also a direct application to a Military requirement. The
commitment of funds and resources to joint programs shall be
commensurate with the interest of each agency in the project.
The Assistant Secretary of Defense (Comptroller) shall explore
with the Office of Management and Budget means for providing relief
from any imposed manpower constraints to the extent of the DOD
participation in non-defense work.
Operating Policy of the Department of Defense Technology Transfer
Consortium
Purpose - The purpose of this policy is to establish the
basic framework and direction of the Department of Defense (DOD)
Technology Transfer Consortium.
Background - The DOD currently funds approximately half
of the total Federal expenditure for R&D. Civil government
agencies are expressing an increased interest in the exploitation
of defense technology for the solution of problems in the civil
sector. The Military Departments have been encouraged to cooperate
in this endeavor, subject to considerations promulgated by the
Secretary of Defense.
Consortium Purpose - The DOD Laboratories are a source of
technology for the solution of these civil sector problems which
are amenable to technological solutions. The primary role of the
in-house laboratories is to provide a research and development base
for the development of systems required to fulfill the national
security mission of the DOD. However, these laboratories can serve
a vital secondary role in the adaptation of technology to other
fields and areas of need to the extent that it does not adversely
impact on the primary DOD mission. A consortium of DOD Laboratories
is formed for the purpose of coordinating interactions with other
Federal Agencies and technology users at federal, state, and local
level, and of coordinating the efforts in this endeavor. The
technology transfer consortium is an association of DOD
Laboratories working together through an informal affiliation. The
main thrust of the consortium activity is through the individual
and cooperative efforts of the laboratories involved, with an
emphasis on the transfer and adaptation of technology through
person-to-person mechanisms.
Criteria for Laboratory Consortium Membership. The
following criteria for the participation of a DOD Laboratory in
Consortium activities shall apply:
• The participation of any laboratory shall be undertaken with
the full knowledge of the parent Military Department and the
director or commander of the laboratory.
• For each participating laboratory an individual shall be
designated by name to represent that laboratory to the consortium,
and to coordinate the technology transfer activities of that
laboratory. Procedures should be adopted within each laboratory to
preclude the dilution of the efforts of middle and top level
management by their involvement in the administrative aspects of
the technology transfer effort.
• Any laboratory may withdraw from the Consortium by notifying
the Consortium Chairman of this intent.
Criteria for Conduct of Work - It is the view of the
Consortium that the civil sector should rely on the private
enterprise system to provide those services which are reasonably
and expeditiously available through ordinary business channels. The
laboratories shall attempt to provide a supplemental resource that
is not technically available or that is obtainable only at an
excessive cost. Such services shall not supplant existing private
or industrial resources but are offered to enable other Federal
agencies, State and local governments to avoid unnecessary
duplication of special service functions.
The following criteria shall apply for the conduct of work
undertaken in the technology transfer program:
• In order for work to be undertaken for any government
organization each of the following criteria must be satisfied:
a. Laboratory staff will not increase as a result of the
additional work.
b. Laboratory facilities will not be added for non-DOD work.
c. Proposed work should relate to a laboratory's area of
particular expertise and the laboratory should be a significant
resource in the particular subject area.
d. A determination should be made that the laboratory's
background, experience and facilities are such that private
industry could not perform the work except at a significantly
increased cost.
• The major emphasis of the Technology Transfer Consortium
should be directed to:
a. The transfer or adaptation of existing technology, either
directly, or after being subjected to adaptive engineering.
b. The preparation of documentation and technical assistance in
those activities unique to the mission of the DOD laborabories.
• Work will be performed for private industry only on an
exception basis, such as when the laboratory possesses unique
facilities that are required and which are not available in the
private sector.
• Description of the work to be accomplished and the funds to be
transferred will normally be specified in a formal interagency
agreement.
• All costs shall be recovered from the receiving government
organization, including realistic overhead costs, except that
cooperative developments on a shared cost basis are encouraged
where there is a distinct military application.
• Laboratory production of hardware shall normally be limited to
prototypes or test units required to prove feasibility.
• Adaptive engineering shall not be performed on technological
innovations for which a patent application has been made by a
private industrial firm unless permission is received in writing
from that firm. Technical, consulting, and support services will
not normally be furnished another agency on a continuing basis.
• Work in the form of analytic services shall not normally be
undertaken in areas where comparable expertise exists in
competitive industry. An exception to this provision is acceptable
in areas of problem definition where existing Defense technology
offers a unique potential solution.