SBIR/STTR PROGRAM 02/09/2017

Agenda What are they? How do they work? Do you qualify for them? Where do you start?

What Are They?

Small Business Innovation Research (SBIR) / Small Business Technology Transfer (STTR) Competitive program encouraging domestic small businesses to engage in Federal Research and Development (R&D) with potential for commercialization Enables small businesses to explore their technological potential Provides incentive to profit from its commercialization Stimulates high-tech innovation Meets specific government research and development needs 01/14/2016

SBIR Background Established under the Small Business Innovation Development Act of 1982 (P.L. 97-219) Purpose: Strengthen the role of small business concerns in federally-funded research and development (R&D) Obtain innovative, high-tech approaches, methods and solutions offered by the SB community Federal agencies with R&D budgets that exceed $100 million are required to allocate 2.8 % of their R&D budget to the SBIR programs ($2.8 million+)

STTR Background Modeled after the SBIR program Established as a pilot program by the Small Business Technology Transfer Act of 1992 (Public Law 102-564, Title II). Government agencies with R&D budgets of $1 billion or more are required to set aside a portion of these funds to finance the STTR activity. Goal: Facilitate transfer of technology developed by a research institution through the entrepreneurship of a small business concern SB must be teamed with an educational/research institution

SBIR vs STTR The SB and its partnering institution (College, University, Nonprofit R&D) are required to establish an intellectual property agreement detailing the allocation of intellectual property rights and rights to carry out follow-on R&D or commercialization activities STTR requires that the SB perform at least 40% of the R&D and the single partnering research institution to perform at least 30% of the R&D. SBIR program requires that 50% of work performed by the SB and the Principal Investigator (PI) / Project Lead must be employed by the SB STTR does not require the PI to be primarily employed by the SB

WHY SHOULD ANYONE BE INTERESTED IN SBIR? OPPORTUNITY! Secure a sole-source, bid-advantaged marketing position with the federal government (with no time frame/graduation or $$$ limits as under SBA programs Develop technology based improvements in your operations, products, or services using federal funds. Fund early stage, high-risk development projects that no one else will touch. Research ideas, reduce their risk, and gather the data/test information needed to bring the venture capitalist to the table with his funding “Venture capital” for your startup or ongoing firm with NO strings (equity shares, control) and NO pay back required 01/14/2016

How Do They Work? 01/14/2016

Overview Currently, 11 Federal agencies participate in the SBIR program: Each agency administers its own individual program within guidelines established by Congress. Designate R&D topics Issue solicitations Accept proposals from small businesses. Awards contracts or grants after proposal evaluation. Contracts awarded in 3 “Phases” Department of Agriculture (link is external) Department of Commerce - National Institute of Standards and Technology (link is external) Department of Commerce - National Oceanic and Atmospheric Administration (link is external) Department of Defense (link is external) Department of Education (link is external) Department of Energy (link is external) Department of Health and Human Services (link is external) Department of Homeland Security (link is external) Department of Transportation (link is external) Environmental Protection Agency (link is external) National Aeronautics and Space Administration (link is external) National Science Foundation (link is external) 01/14/2016

Phase I Valued up to $150,000 (different at each agency) Approximately 6 months (more at some agencies) Addresses a topic area identified in an agency solicitation Determine the feasibility of a new technology/concept How/if it will lead to new/improved capabilities meeting the agency’s needs Short, “simple” proposals usually limited to 25-pages (some agencies different) Must comply with explicit formatting, content, and other instructions spelled out in the Broad Agency Announcement (BAA) / Request for proposal (RFP) Certify no "essentially equivalent work" has been submitted to another agency Phase I winners are chosen competitively by an agency's technical and scientific experts. 01/14/2016

Phase II “Test & evaluation” phase to demonstrate that the concept will work properly in the target environment Usually awarded to successful Phase I contract winners Valued up to $1,000,000 (again, different at each agency) for up to 2 years Awards for Phase II contracts are based on Phase l results and the scientific and technical merit of the Phase II proposal. Emphasis on commercial application(s) 01/14/2016

Phase III Involves private sector or federal agency funding (outside of the SBIR program) to commercialize the technology There is no such thing as "SBIR Phase III money" Government makes every reasonable effort to ensure that— Any government follow up actions to do research, develop or produce technology developed under SBIR is awarded to the SBIR participant. Usually through sole-source contracts with the small business that originally developed the technology under SBIR 01/14/2016

Evaluation and Award Based on scientific and technical merit Evaluated by teams that include scientists and engineers who are well versed in the topic area Majority of topics are very specific in their technology requirements with some created as "generic" topics searching for innovative solutions to broad requirements. Examples: "Develop innovative ideas/concepts in the area of environmental engineering"; "Develop new and improved materials for controlling the optical signature of aircraft“ "Improving life in Rural Communities“ Also considers Qualifications of the PI and other key staff, Soundness and technical merit of the proposal approach Potential for commercial applications adequacy of the proposed effort to fulfill the requirements expressed in the topic. Special consideration is given to the originality of the proposal in solving technological challenges. 01/14/2016

Do I Qualify for Them? 01/14/2016

ELIGIBILITY - SBIR Only US small businesses are eligible to participate in the SBIR program. Must meet the following criteria at the time of Phase I and II awards: Organized for profit, with a place of business located in the US; More than 50% owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the United States, and No more than 500 employees (including affiliates) Phase I awardees with multiple prior awards must meet the benchmark requirements for progress toward commercialization. See the Eligibility Guide for more detailed information. (https://www.sbir.gov/sites/default/files/elig_size_compliance_guide.pdf)

ELIGIBILITY - STTR Only US small businesses are eligible to participate Must meet all of the following criteria at time of award Organized for profit A place of business located in the US At least 51% owned/controlled by citizens or permanent resident aliens of US No more than 500 employees, including affiliates Nonprofit research institution must also meet the following:

ELIGIBILITY - STTR Nonprofit research institution must also meet the following: Located in US Meet one of the following definitions: Nonprofit college or university Domestic nonprofit research organization Federal funded R&D Center (FFRDC)

QUALIFYING Must meet criteria at time of contract award Minimum research per phase Phase I - minimum 1/3 of research or analytical effort must be performed by SBC Phase II - minimum 1/2 of research or analytical effort must be performed. (An agency can use total contract dollars or labor hours to measure this research or analytical effort.) Primary Employer for Principle Investigator (SBIR) Be teamed with research institution

Where do you start? 01/14/2016

MATCH OPPORTUNITY On SBIR.Gov Portal or FBO Under Open/Future Solicitations, select a Solicitation. Find details of solicitation such as... Latest Amendments Notices Specific Topics within the Solicitation 01/14/2016

SBIR ANNOUNCEMENTS Identifies areas of interest Problems that need to be addressed Capabilities that need to be enhanced Future capabilities New ideas for new capabilities

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Proposal/Application Specifics Proposal requirements vary by Agency Agencies post solicitations describing the technical areas and seek proposals from small businesses. Some agencies follow an SBIR solicitation proposal cycle DoD – Every 6 months USDA – Annually NASA – As need arises Schedule Pre-Release Open DoD STTR 2017.A 30 Nov 2016 10 Jan 2017 DoD SBIR 2017.2 21 Apr 2017 23 May 2017 DoD STTR 2017.B DoD SBIR 2017.3 25 Aug 2017 26 Sep 2017

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Next Steps Register on SBIR.Gov and receive login account credentials Submit a Pre-Submission Inquiry if applicable Login with your credentials and submit a Phase I Proposal (complete applicable sections which may include): Business Plan Executive summary Cost Proposal Technical Proposal Login and submit a Phase II Proposal (complete applicable sections which may include): Commercialization Plan 01/14/2016

Commercialization Plan Must be included with each proposal for an SBIR Phase II award moving toward commercialization Elements include the following: Company information Who are your other potential customers? Who are your competitors in this arena? What is the market like? What happens to the resulting Intellectual Property? Where do you expect to obtain funding after Phase II?

After Award Conduct research or develop technology as you proposed Provide periodic status reports. Minimize requests for schedule extension or increased funds 01/14/2016

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Questions?