Small Business
Innovative Research
Presenter: Nicholas Tschohl
December 1, 2004
Overview
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December 1, 2004
• History
• Eligibility
• Funding Agencies
• Phases
• Fast Track
• STTR
• Tips for writing SBIR proposal
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History
• Established in 1982
• 10 funding agencies required to award a portion of research and development (R&D) budget to small business
• Supposed to increase opportunities for small businesses
• Increase private sector commercialization
• Utilize small business to meet federal R&D needs
• Stimulate US technological innovation
• 2.5% of agency extramural R&D budget
• Currently about $1.6 billion awarded annually 3
December 1, 2004
Eligibility
• 51% American Owned
• Independently operated
• Less than 500 employees
• Main business concern is in the United States
• Principle researcher’s (PR) primary employment is with the small business during the project
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Funding Agencies
• Currently ten participating agencies Department of Transportation
Environmental Protection Agency
National Aeronautics and Space Administration
National Science Foundation
Department of Health and Human Services
Department of Agriculture
Department of Commerce
Department of Defense
Department of Education
Department of Energy
• Each designates its own R&D topics and accepts proposals
• Each has its own set of regulations for proposals
• Creating a standard form for all funding agencies5
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Funding Agencies
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Sample grading criteria: (NASA)
• 50% - Feasibility and scientific and technical merit
• 25% - Experience, qualifications, and facilities
• 25% - Work Plan
• Adjectivally - commercial merit and feasibility
Proposal screening process
• Administrative review
• Technical review
• Commercial review
Funding Agencies
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December 1, 2004
Fact: SBIR funding is very competitive
• 20,000 SBIR proposals submitted each year
• 2,000 - 2,500 Phase I proposals funded annually
• 500 - 700 Phase II proposals funded annually
SThe S is for Sucks
Phase 0
• Choose a problem
• Determine project feasibility
• Determine estimated time and budget to produce a product
• Research SBIR funding agency
• Write SBIR funding proposal
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December 1, 2004
Phase I
Requirements and limitations:
• Six months for completion
• Up to $100,000
• At least 2/3 of workload must be done by small business
• One third may be done by subcontractors and/or consultants
During this time:
• Evaluate scientific and technical merit
• Develop a prototype
• Prepare Phase II grant proposal
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Phase II
During this time:
• Extensive testing of project
• Developing marketing plan
• Approaching potential investors
Requirements and limitations:
• Must have received Phase I funding
• Two years
• Up to $750,000
• Fifty percent must be done by the small business
• Fifty percent may be done by subcontractors and/or consultants
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Phase III
• Commercialization of Phase I and II
• No SBIR funding
• Marketing plan implementation
• Funding must be acquired from outside investors, companies, loans, and/or other non-SBIR federal funding
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December 1, 2004
Fast Track
What it is:
• Extra submission with outside investor for extra funds
What it does:
• Attracts outside investors
• Leverages SBIR funds to obtain additional funds from outside investors (contingent on Phase II approval)
• Prevents significant funding gaps between Phase I and II
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December 1, 2004
Fast Track
How it works:
A fast track application is submitted by the small business and the outside investor that includes:
• A statement that the investor will match both interim and phase II SBIR funding
• Certifies the outside funding qualifies as a “Fast Track investment” and the investor qualifies as an “outside investor”
• The funding agency will notify each company no later than 10 weeks after the end of Phase I
• Company and investor must certify within 45 days that the entire amount of the matching funds has been transferred to the company
Continued...
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December 1, 2004
STTR
• Only five funding agencies for STTR:
• Department of Defense
• Department of Energy
• NASA
• Up to one year for completion during phase I
• Only up to $500,000 for phase II
• Forty percent of workload must be done by small business
• PR may be from either the small business or the non-profit research facility
• Thirty percent must be done by a non-profit research facility
• Last third percent may be done by either party, subcontractors, or consultants
• National Institute of Health
• Nation Science Foundation
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December 1, 2004
Tips For Writing SBIR Proposals
• Follow the outline
• Submit exact number of forms
• Innovation
• Agency need
• Readability
• Use charts, graphs, and tables
• Consistency
• Cost Effectiveness
• Good abstract, specific aims, synopsis, etc.
Parts of a good SBIR proposal:
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December 1, 2004
Tips For Writing SBIR ProposalsContinued….
Writing a good proposal:
• Start writing phase I early
• Show/prove intent to go to phase III
• Project head published in the area
• Have a relationship with a university
• Ph.D. or M.D. personnel
• Assume readers are unfamiliar with subject area
• Tell a good story
• Show your project’s innovation
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December 1, 2004
Tips For Writing SBIR ProposalsContinued….
Things to include:
• Measurable activities
• Market Size
• Potential customers
• Letters of commitment and support
• Purchase orders
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December 1, 2004
Tips For Writing SBIR ProposalsContinued….
Things to avoid:
• Enumerating too many tasks
• Tasks that do not match goal objectives
• Plans with no tasks
• Controversial terms
• Lack of technical approach
• Unclear ideas
• Bad phase II and/or III potential
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December 1, 2004
Tips For Writing SBIR ProposalsContinued….
What to do if your proposal is not accepted:
• Contact the administrator
• Review and revise
• Aims
• Team
• Work plan
• Marketing and commercialization
• Resubmit 19
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QuestionsDecember 1, 2004
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Resources
History
•http://www.ed.gov/offices/OERI/SBIR/about.html
•http://www.dfrc.nasa.gov/Organizations/Technology/SBIR/history.html
Eligibility
• http://www.ed.gov/programs/sbir/eligibility.html
Funding agencies
•http://www.ed.gov/programs/sbir/faq.html
•http://www.sba.gov/sbir/indexsbir-sttr.html
•http://www.sbir.dsu.edu/SBHTI/home/faq.htm#How%20Many%20Projects%20are%20Funded%20Annually
Phases
•http://www.nsbdc.org/assistance/sbir_sttr/ 21
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ResourcesContinued...
Phases
•http://epi.grants.cancer.gov/ResPort/sbir.html
Fast Track
•http://epi.grants.cancer.gov/ResPort/sbir.html
•http://www.acq.osd.mil/sadbu/sbit/overview/index.htm#fasttrack
STTR
•http://sbir.state.mt.us/BRD_SBIR_difference.html
Writing Tips
•http://64.233.161.104/search?q=cache:mOZxcq9EQHoJ:www.edi.gatech.edu/nasa/SBIR2003/Bill%2520Tumblin%27s%2520Writing%2520SBIR%2520proposals%2520.ppt+Tips+on+writing+an+SBIR+proposal&hl=en
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December 1, 2004
ResourcesContinued...
Writing Tips
•http://64.233.161.104/search?q=cache:XHgEprUZSC8J:www.federallabs.org/northeast/ContentObjects/Proceedings/August2004_FLC-CTC_Meeting/Wednesday/August2004_SBIR_STTR_Workshop_Cohen_Winning_SBIR_RSC_6.pdf+Tips+on+writing+an+SBIR+proposal&hl=en
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