NASA Far West RTTC and the NASA SBIR/STTR Program Introduction and Keys to Success U S C E N G I N E E R I N G T E C H N O L O G Y T R A N S F E R C E.

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NASA Far West RTTC and the NASA SBIR/STTR Program Introduction and Keys to Success U S C E N G I N E E R I N G T E C H N O L O G Y T R A N S F E R C E N T E R A N A S A R E G I O N A L T E C H N O L O G Y T R A N S F E R C E N T E R h t t p : / / w w w. u s c. e d u / g o / t t c Presented atGovCom San Diego, CA November 18, 2003 by Ken Dozier Executive Director, NASA Far West RTTC

NASA Commercial Technology Network NASA Commercial Technology Network Mid-Continent RTTC Southeast RTTC Midwest RTTC Northeast RTTC Mid- Atlantic RTTC Far West RTTC

NASA Mechanisms of Commercialization NASA Mechanisms of Commercialization Licensing of NASA-owned intellectual property Licensing of NASA-owned intellectual property Collaborative arrangements and partnerships Collaborative arrangements and partnerships Space Act Agreements Space Act Agreements Reimbursable or non-reimbursable Reimbursable or non-reimbursable Joint Sponsored Research Agreements Joint Sponsored Research Agreements Cooperative agreements and grants Cooperative agreements and grants MOU/MOA MOU/MOA SBIR/STTR SBIR/STTR

SBIR is a federal set-aside funding program for small businesses SBIR funds innovative, high-risk, early-stage technology R&D projects that have potential for commercial success. Ten federal agencies solicit proposals for innovative research in areas of interest to the agencies. Eligible small businesses compete for SBIR awards Approximately $1.6 billion in funding is available each year SBIR in a Nutshell

Objectives of the SBIR Program Stimulate technological innovation Use small business to meet federal R&D needs Increase private sector commercialization derived from federal R&D Encourage participation by disadvantaged and minority persons in technological innovation

Who Participates in SBIR Firms are typically very small and new to the program About 1/3 are first-time Phase I awardees. Small high-tech companies from all 50 states *FY01 Phase I DOD Award Winners Firm Size Distribution*

Total of all agencies is approximately $1.6 Billion! DoD$879 Million (FY03)-- SBIR/STTR DHHS$566.6 Million (FY03)-- SBIR/STTR NASA$115 Million (FY03)-- SBIR/STTR DoE$99 Million (FY03)-- SBIR/STTR NSF$90 Million (FY03)-- SBIR/STTR USDA$15.7 Million (FY02) DoED$8.7 Million (FY02) DoC$7.7 Million (FY03) EPA$6 Million (FY02) DoT$5.3 Million (FY03) Agency SBIR Funding Levels

Phase I: Feasibility Study Up to $70,000 Up to $70,000 Six month effort funded by contract Six month effort funded by contract Phase II: Prototype Development Up to $600,000 Up to $600,000 Up to two year effort funded by contract Up to two year effort funded by contract Phase III: Commercialization No SBIR funds available for Phase III No SBIR funds available for Phase III Small business procures other development funds, product orders, intellectual property licenses, commercial partners, etc. Small business procures other development funds, product orders, intellectual property licenses, commercial partners, etc. The Three Phases of NASA SBIR

STTR is the Small Business Technology Transfer Program Three-phase approach, just like SBIR Five federal agencies participate Set-aside is only 0.15% of the agencies’ extramural R&D budgets (compared to 2.5% for SBIR) A small business must form a partnership with a nonprofit research institution to be funded under STTR The small business is the prime contractor Goal is to facilitate commercialization of technology developed by a nonprofit research institution through the entrepreneurship of a small business STTR: Companion Program to SBIR

A source of funds to conduct research and development that a small firm might not otherwise be able to afford A source of funds to conduct research and development that a small firm might not otherwise be able to afford No debt, loss of equity or control of the company incurred by the small business No debt, loss of equity or control of the company incurred by the small business Tacit endorsement by the federal government of the small firm’s research qualifications (looks good on the resume) Tacit endorsement by the federal government of the small firm’s research qualifications (looks good on the resume) A chance to become a supplier of specialized products or services to the private sector or back to a government agency (technology infusion) A chance to become a supplier of specialized products or services to the private sector or back to a government agency (technology infusion) An opportunity to grow the small business through strategic alliances with larger corporate partners An opportunity to grow the small business through strategic alliances with larger corporate partners Note: SBIR works best for those companies that integrate SBIR funds into a strategic plan for growth through new product or service development What’s in it for the Small Business?

Before You Dive In to NASA SBIR Before You Dive In to NASA SBIR NASA accepts phase I proposals only during one ten-week period each year, usually from July to September Success is not just about getting phase I and phase II funding To succeed in SBIR requires following through all the way to commercialization (phase III) A small business must have a “commercialization mindset” going into phase I to succeed ultimately in SBIR Do not propose SBIR efforts that distract you from your company’s strategic goals

2002 NASA Phase 1 SBIR Selection Statistics 2002 NASA Phase 1 SBIR Selection Statistics 2,238 proposals received from 948 small businesses 5 administratively rejected 31 withdrawn by small business 2,202 proposals evaluated (98%) 919 recommended for funding by NASA Centers (41%) 271 awards made (12%)

Read and follow the solicitation carefully Read and follow the solicitation carefully Know your customer Know your customer Know the evaluation criteria Know the evaluation criteria Get help from other resources Get help from other resources Prepare High Quality SBIR Proposals Prepare High Quality SBIR Proposals

Read and Follow the Solicitation Carefully Get solicitation from Get solicitation from The solicitation provides all necessary forms and instructions for preparation, assembly and submission of a proposal The solicitation provides all necessary forms and instructions for preparation, assembly and submission of a proposal Resist the urge to organize your proposal in a free- form, stream-of-consciousness fashion Resist the urge to organize your proposal in a free- form, stream-of-consciousness fashion Use the section numbering scheme prescribed in the solicitation Use the section numbering scheme prescribed in the solicitation The solicitation tells precisely what to cover in each section; so cover it. If a section is not applicable, say so. The solicitation tells precisely what to cover in each section; so cover it. If a section is not applicable, say so. Submit on time and meet administrative screening requirements Submit on time and meet administrative screening requirements Prepare High Quality SBIR Proposals Prepare High Quality SBIR Proposals

Know Your Customer Use the solicitation to identify topics to which you believe you can be responsive Use the solicitation to identify topics to which you believe you can be responsive Use RTTC, NASA SBIR Manager to identify NASA authors of relevant SBIR topics (NASA calls them Sub- Topic Managers) Use RTTC, NASA SBIR Manager to identify NASA authors of relevant SBIR topics (NASA calls them Sub- Topic Managers) Establish a relationship with the Sub-Topic Manager. He or she may be your customer if you win an award. Establish a relationship with the Sub-Topic Manager. He or she may be your customer if you win an award. Sub-Topic Managers and SBIR Managers can help you understand NASA’s real, sometimes unstated, needs and priorities. Sub-Topic Managers and SBIR Managers can help you understand NASA’s real, sometimes unstated, needs and priorities. Tailor your SBIR proposal accordingly Tailor your SBIR proposal accordingly Timing is important: Sub-Topic Managers are not available to advise you during the ten-week period each year when NASA is accepting proposals. Plan ahead. Timing is important: Sub-Topic Managers are not available to advise you during the ten-week period each year when NASA is accepting proposals. Plan ahead. Prepare High Quality SBIR Proposals Prepare High Quality SBIR Proposals

Know The Evaluation Criteria The solicitation tells you what the evaluation criteria areThe solicitation tells you what the evaluation criteria are For phase I proposals: For phase I proposals: Scientific/technical merit and feasibility Scientific/technical merit and feasibility Experience, qualifications and facilities Experience, qualifications and facilities Effectiveness of proposed work plan Effectiveness of proposed work plan Commercial merit and feasibility Commercial merit and feasibility Increase the odds of winning by making your proposal shine in each of these areas Increase the odds of winning by making your proposal shine in each of these areas Look outside the company to acquire necessary resources to address deficiencies Look outside the company to acquire necessary resources to address deficiencies Prepare High Quality SBIR Proposals Prepare High Quality SBIR Proposals

Know and Use SBIR Program Resources NASA Far West RTTC NASA Far West RTTC NASA SBIR Managers NASA SBIR Managers Rosa Tonarelli, NASA Ames NASA SBIR website ( NASA SBIR website ( NASA SBIR Solicitation Participation guide Previous Award Winners Successes Key NASA Contacts NASA SBIR Support contractor NASA SBIR Support contractor REI Systems Prepare High Quality SBIR Proposals Prepare High Quality SBIR Proposals

NASA Far West Regional Technology Transfer Center NASA Far West Regional Technology Transfer Center For Further Information...

NASA SBIR Website For Further Information... For Further Information...