1. h t t p : / / w w w . u s c . e d u / g o / t t c
A Winning SBIR Strategy: Connect to the Source
NASA’s SBIR and STTR Programs
Introduce myself.
Presented by:
Martin Zeller
Date:
May 25, 2005
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

2. NASA’s Technology Transfer Network
Northeast
RTTC
Midwest
RTTC
Mid-
Atlantic
RTTC
Far West
RTTC
Southeast
RTTC
Mid-Continent
RTTC

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

4. 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

5. SBIR in a Nutshell
SBIR is a federal set-aside funding program for small businesses
Eleven federal agencies solicit proposals for innovative research in areas of interest to the agencies
2.5 % of agency extramural R&D budget
SBIR funds innovative, high-risk, early-stage technology R&D projects that have potential for commercial success
Eligible small businesses compete for SBIR awards
Over $2 billion in funding is available this year

6. STTR: Companion Program to SBIR
STTR is the Small Business Technology Transfer Program
Five federal agencies participate
Set-aside is only 0.3% 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

7. Total of all agencies is more than $2 Billion!
Agency SBIR/STTR Annual Funding Levels
Total of all agencies is more than $2 Billion!
DoD $1.08 Billion (FY05)--SBIR/STTR
DHHS/NIH $631 Million (FY04)--SBIR/STTR
NASA $120 Million (FY05)--SBIR/STTR
DoE $114 Million (FY05)--SBIR/STTR
NSF $103.6 Million (FY03)--SBIR/STTR
HSARPA $23 Million (FY05)
USDA $18.3 Million (FY05)
DoED $8.7 Million (FY02)
DoC $8.5 Million (FY04)
EPA $6 Million (FY05)
DoT $5.3 Million (FY03)

8. Firm Size Distribution*
Who Participates in SBIR
*FY01 Phase I DOD Award Winners
Firm Size Distribution*

9. The Three Phases of NASA SBIR/STTR
Phase I: Feasibility Study
SBIR - $70,000 for 6 months
STTR - $100,000 for 12 months
Phase II: Prototype Development
SBIR and STTR - $600,000 for 24 months
Phase III: Commercialization
No SBIR funds available for Phase III
Small business procures other NASA program development funds, product orders, intellectual property licenses, commercial partners, etc.

10. What’s in it for the Small Business?
A source of funds to conduct research and development that a small firm might not otherwise be able to afford
Small business incurs no debt, loss of equity or control of the company
Best utilized by companies that integrate SBIR funds into a strategic plan for growth through new product or service development
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)
An opportunity to grow the small business through strategic alliances with larger corporate partners

11. 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

12. The First Goal of Any SBIR Proposer
Win a phase I award
This is critical since companies can not bypass phase I and jump in at phase II

13. Understand NASA SBIR Technology Needs
Review past solicitations
Get to know your customer
Establish a relationship with relevant NASA sub- topic manager(s)
Get feedback on whether your proposed approach meets a NASA need
Caveat: NASA sub-topic managers are not identified in the SBIR/STTR solicitation
Blackout period when solicitation is open

14. NASA Quirks and Nuances
Only one solicitation per year
Projects are funded by contracts, not grants
No fast track option
Phase I SBIR win rate is about 1:8
Phase I STTR win rate is about 1:4

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

16. Read and Follow the Solicitation Carefully
Prepare High Quality SBIR Proposals
Read and Follow the Solicitation Carefully
Get it from
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
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.
Submit on time and meet administrative screening requirements
This one is focused specifically on the SBIR program.

17. Prepare High Quality SBIR Proposals
Know Your Customer
Use last year’s 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)
Establish a relationship with the Sub-Topic Manager. He or she may be your customer if you win an award.
These people can help you understand NASA’s real, sometimes unstated, needs and priorities.
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.

18. Know The Evaluation Criteria
Prepare High Quality SBIR Proposals
Know The Evaluation Criteria
The solicitation tells you what the evaluation criteria are
For phase I proposals:
Scientific/technical merit and feasibility (50%)
Experience, qualifications and facilities (25%)
Effectiveness of proposed work plan (25%)
Commercial merit and feasibility (qualitative score, used for breaking ties)
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

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

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

21. NASA SBIR Website http://sbir.nasa.gov
For Further Information . . .
NASA SBIR Website