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IMMEDIATE RELEASE

Release No: 603-94
October 25, 1994

TECHNOLOGY REINVESTMENT PROJECT ANNOUNCES FY94 SELECTIONS

Undersecretary of Defense for Acquisition and Technology Paul Kaminski announced today the 39 proposals selected for negotiation under the FY94 focused competition of the Technology Reinvestment Project.

Today's announcement includes 224 companies, universities, and state and local government organizations, who will receive $202.2 million in government funding. All funding will be at least matched by participants.

Kaminski indicated, "It is central to our strategy to continue building our military capability upon technological strength. But, high performance technology is expensive, and budgets are declining. We can do more with less by leveraging commercial technologies, markets and practices to reduce the cost of Defense products. And the TRP's DoD-industry partnership is proving an effective mechanism for this leverage."

Of today's selections, 30 are for technology development and nine are for Manufacturing Extension Centers. The distribution among technology areas is as follows:

Environmental sensors -- Five proposals selected (government funding $9.5 million). The goal of the environmental sensors focus area is to stimulate the development of new, field-deployable sensor technologies and real-time data processing, storage and transmission systems to detect and monitor a variety of environmental contaminants. These activities will permit commercial and defense facilities to more effectively monitor and identify harmful chemicals used in industrial manufacturing and at other sites, and enhance the military's ability to detect biological and chemical warfare agents.

High-definition systems manufacturing -- Three proposals selected (government funding $48.3 million). This focus area will stimulate the production of flat panel displays in the U.S. by cost-sharing research and development on display manufacturing technology to promote the establishment of a dual-use production base from which to satisfy defense needs at greatly reduced costs. Today's proposals were the first to be selected for the manufacturing incentive program of the National Flat Panel Display Initiative.

High-density data storage systems -- Two proposals selected (government funding $16 million). Cost-effective, high-density digital data storage will enable the rapid growth of storage-intensive systems that are being fueled by the increased use of digital images, video and multimedia programs for military and commercial applications.

Interoperability testbeds for the National Information Infrastructure -- Five proposals selected (government funding $23.2 million). The goal of this focus area is to ensure the creation of open, interoperability standards in a number of National Information Infrastructure functional and product areas that are of critical importance to DoD.

Low-cost electronics packaging -- Nine proposals selected (government funding $38.3 million). The purpose of this focus area is to stimulate domestic packaging research and development in low-cost electronic packaging. It is one element of an Administration action plan to enhance the competitiveness of the U.S. electronic packaging industry. Today's proposals will reduce the cost of electronic packaging of integrated circuits; DoD spends over $1 billion annually buying integrated circuits for military systems.

Object technology for rapid software -- Three proposals selected (government funding $19.5 million). The goal of this focus area is to radically reduce the effort required to field new software applications by developing reusable software components. Today, approximately 85 percent of the installed base of software is a custom application. This duplication of effort is both costly and time consuming.

Uncooled infrared sensors -- Three proposals selected (government funding $21.6 million). This focus area will accelerate the entry of uncooled infrared technologies into the commercial market, and will contribute to the sustaining manufacturing base necessary for affordable, high performance military systems. The cost reduction to be gained through commercial development and economy of scale opportunities make the activities under this focus area potentially a major contributor to maintaining U.S. superiority in military operations conducted at night or under obscurants.

The Technology Reinvestment Project is a Clinton Administration initiative to integrate the commercial and defense sectors into a single, leading-edge technology and industrial base. It is jointly implemented by a collaboration of six Federal agencies -- the Departments of Defense (Advanced Research Projects Agency, Army, Navy, Air Force), Commerce, Energy, and Transportation, the National Aeronautics and Space Administration, and the National Science Foundation.

The Clinton Administration's defense reinvestment program emphasizes investments in dual-use technology for military and commercial applications. This dual-use strategy is one key to posturing the nation for the requisite defense to meet our future national security challenges while creating long-term jobs and stimulating economic growth. Through this dual-use focus, the Defense Department is seeking closer ties to America's commercial high technology industrial base in order to speed up the rate at which new innovations are introduced into defense systems, and to make these systems more affordable.

Since the Defense Department will be increasingly reliant on the use of commercial components and technologies, maintaining the technological superiority of defense forces requires that industry be able to supply products using state-of-the-art technologies, at competitive, affordable prices. Thus, the goal for Defense research and development is to ensure that the U.S. technology base remains strong and at the leading edge in key strategic areas. Defense, therefore, has a vital interest in the health and competitiveness of the U.S. technology and industrial base. With programs like the Technology Reinvestment Project, Defense will work with industry to support the technological underpinnings of sectors critical to national security, and develop policies and programs to provide them with a strong economic foundation.

Today's awards bring to $820 million the total amount of federal matching funds being spent under the Project. Last year, 212 projects were selected during the first competition, with an additional 153 awards to small businesses. More than 230 proposals were submitted for today's competition.

The detailed list of selected proposals is attached.