How the SBIR/STTR Programs Help Grow Your Businesses
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- Jerome Fletcher
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1 Click to edit Master title style How the SBIR/STTR Programs Help Grow Your Businesses 1
2 Click Jerry to Alfonso edit Master Miles, title Esq. style Experience Jerry Miles, a government contracts attorney with Deale Services, LLC, has experience advising and supporting the business goals of large, midsize and small government contractors and commercial companies. He regularly provides advice and instruction on teaming, joint ventures, small business contracting strategies, bid protest, Federal Acquisition Regulations compliance; and contract negotiation, dispute avoidance and cost recovery. Education William & Mary Law University of Virginia 2
3 Click to Course edit Master Objectives title style Program Objectives SBIR/STTR Best Practices SBIR Program SBIR/STTR Compliance/Legal STTR Program SBIR/STTR Commercialization 3
4 SBIR/STTR Click to edit Program Master Objectives title style Small Business Objectives: (F/R&D Funds SBCs) Encourage Innovation Enhance Technology Infrastructure Profitability [Government R&D (Potential) Commercialization] 4
5 SBIR/STTR Click to edit Program Master Objectives title style SBA Coordinates & Reviews Agency-Specific R&D Needs 11 Agencies Re-Authorized to Issue RFPs & Review Proposals Agriculture -Education -DHS -NASA Commerce -Energy -DOT -NSF Defense -HHS -EPA Defense, Technology & Healthcare Innovation Agencies Issue Outline of SBIR/STTR Solicitations Annually Competitive Awards of F/R&D Funds to SBCs 5
6 Click SBIR/STTR to edit Master Programs title style Award Process: (Up To 9 Months) 1. Agency RFP (No Unsolicited RFPs) 2. Proposal Evaluation (Agency or External Peer Review) Technical Approach, SBC Qualifications Commercial Potential Public Benefit 3. Phase I Award of Contracts or Grants By Agency Eligibility Determination Occurs At Time of Award Contracts: Agency Develops Requirements Grants: Company Develops Approach 6
7 Click SBIR/STTR to edit Master Programs title style Funding: (112,500 Awards; $26.9B Dollars (SBA, 1983 Through FY 2009)) SBIR= 2.5% Extramural R&D Budget for Agency s Above $100M/year STTR=.3% Extramural R&D Budget for Agency s Above $1B/year SBA s FAST PROGRAM: (Fed & State Technology Partnership) SBA Awarded Grants Program Enhancing SBC Competitiveness $2M Funding ($100K/Applicant) For SBC Outreach: -SBC R&D Assistance -Proposal Development -Tech Transfer To SBC from Us -Tech Commercialization Goal: EDA, SBDC, Us Help SBCs Compete In SBIR/STTR Programs 7
8 Click to SBIR edit Master Program title style Phase I- (Typically Award $150K, 6 Months) Assess Merit, Feasibility, Commercial Potential of F/R&D Assess Awardee SBC Performance of F/R&D To Date Phase II (Typically, NTE $1M, 2 Years) Continue F/R&D IF ½ Above Are Satisfactory Phase III (Not Funded- Goal: Commercialization) SBCs Pursue Commercialization Objectives SBCs May Seek Additional Non-SBIR Fed or Private Funding for R&D SBCs May Receive Ks to Deliver Developed Products/Services for USG 8
9 Click to SBIR edit Master Program title style Eligibility for Phase I/II Awards- Must Be SBC: Submit Application After Registering In Company Registry Database ( Requires DUNS and/or EIN Assigned SBC Control ID Upon Registration Registration Attached to Each Solicitation For-Profit Organization with PPOB in US 9
10 Click to SBIR edit Master Program title style Eligibility for Phase I/II Awards- Must Be SBC: SBCS Only = <500 Employees (Including Affiliates) 50% US Citizen Ownership/Control (OR) 50% U.S. Resident Agents = OK 50% U.S. Citizens/Residents Own Foreign Company VC or Private Fund Ownership/Control OK ONLY IF Own Less Than A Majority of Stock 10
11 Click to SBIR edit Master Program title style SBCs w/ Multiple SBIR Awards Meet Benchmarks to Win +Awards Transition Benchmark: Has SBC Reached One Phase II Award for Every Four Phase I Awards Over Past Five Years? If so, eligible for more Phase I Awards. Commercialization: Q1: If SBC received 16+ Phase II Awards in 10 Fiscal Years (Excluding Last Two Years)? Q2: If so, 1. Has SBC Received At Least $100K of Sales Per Phase II Award Received? 2. Has SBC Received A # of Patents Equal/Greater Than 15% of # of Phase II Awards? June 1: SBA Informs Agencies Of Ineligibility for More SBIR Awards 11
12 Click to STTR edit Master Program title style STTR Promotes PPP Including JVs W/ SBCs & Nonprofits Fund Risk of R&D for SBCs Build R&D Infrastructure of Research Institutions Five Agencies: (DoD, DoE, DHHS, NASA, NSF).3% of Extramural R&D Budget Funds STTR Program Review Proposals & Awards Made to SBCs Goal: Cooperative F/R&D Tech Innovation By Research Institution & SBC Transferred From Public Sector to Private Sector Via Commercialization 12
13 Click to STTR edit Master Program title style Phase I- (Typically Award $100K, 1 Months) Assess Merit, Feasibility, Commercial Potential of F/R&D Assess Awardee SBC Performance of F/R&D To Date Phase II (Typically, $750K, 2 Years) Continue F/R&D IF ½ Above Are Satisfactory Phase III (Not Funded- Goal: Commercialization) SBCs Pursue Commercialization Objectives SBCs May Seek Additional Non-SBIR Funding for R&D SBCs May Receive Ks to Deliver Developed P/S to USG 13
14 Click STTR to edit Program Master Eligibility title style SBC Eligibility For-Profit Organization with PPOB in US SBCS Only = <500 Employees (Including Affiliates) 50% US Citizen Ownership/Control OR 50% U.S. Resident Agents Nonprofit Eligibility - Located in US - Nonprofit (OR Test) - College or University - Domestic Nonprofit Research Organizat8ion - Federally Funded R&D Center (FFRDC) 14
15 Click to edit SBIR Master v. STTR title style SBIR v. STTR; REQUIREMENTS: SBC & Partnering Institution Must Est. Intellectual Property Agreement Re: Allocation of R&D Responsibilities Rights Upon Commercialization Cooperative: SBC Requires SBC To Perform 40% of R&D and Single R&D Institution Must Perform 30% R&D 15
16 Click to edit SBIR Master v. STTR title style SBIR v. STTR; REQUIREMENTS: FUNDING ALWAYS AWARD TO THE SMALL BUSINESS BUT: SBIR Permits research institution partners (Outsource 33% Phase I and 50% Phase II R&D) STTR Requires research institution partners (40% SBC for profit and 30% U.S. research institution nonprofit) 16
17 Click SBIR/STTR to edit Master Compliance title style Companies Certify Meeting Program Requirements 1. At Time of Registration 2. At Time of Award 3. During Award Lifecycle No Affiliation: Meet Ownership, Control, SBC Eligibility - Ownership -Identity of Interest - Contractual Ties -Newly Organized Concern - Common Management -Ostensible Subcontractor - Licensing Agreement -Totality of Circumstances 17
18 Click SBIR/STTR to edit Master Compliance title style Tech-Net Database: Assists Agencies In Tracking & Reporting Compliance Company Registration Database Award Information Database Commercialization Input (Contractors Assist W/ Updating) Annual Reporting Database Penalties: (SBIR/STTR Accounting Systems Subject to Audit) 1. Agency Fraud, Waste, Abuse Hotlines on Websites 2. Reports to Agency OIG and/or Suspension/Debarment Official 18
19 SBIR/STTR Click to edit Legal Master Considerations title style Small Business Innovation Development Act of 1982 Creates SBIR Program Small Business R&D Enhancement Act of 2000 Extends the SBIR Program Created Above Re-Authorized Through 2017 Small Business Tech Transfer Act of 1992 Requires.3% of $1B Budget Of 5 Agencies To Be Set Aside Small Business Tech Transfer Program Re-Auth Act of 2001 Extends the STTR Program Created Above Re-Authorized Through
20 SBIR/STTR Click to edit Legal Master Considerations title style Subcontracting: SBIR: Phase I: Prime SBC Must Perform 2/3rds of R&D or Analytics Phase II: Prime SBC Must Perform ½ of R&D STTR: SBC Perform 40% of R&D; Single Research Institution Performs 30% of R&D SBC or Research Institution Can Subcontract Less Than 30% of Work To 3 rd Party. 20
21 SBIR/STTR Click to edit Legal Master Considerations title style Intellectual Property: SBIR: SBC owns, with full right and title, data developed under SBIR Program STTR: SBC signs IP agreement, prior to award, identifying rights in data. Generally: Agency s have limited rights to review data for evaluation Some may seek to negotiate rights to expand upon the research and/or technology only after award of SBIR/STTR contract/grant BUT: Agencies cannot disclose data for up to 4 years after delivery of the last deliverable under Phase I, II, or II awards. 21
22 SBIR/STTR Click to edit Commercialization Master title style SBIR Commercialization SBIRs Must Create Commercialization Program for Phase III Includes: Partnerships, Prime Contractor Mentoring, Transition Assistance 10% of agency funds must be allocated to assisting with commercialization Commercialization Plans Include Assessment of Customers, Competition, Market, IP/Patent Protection, Financing & Assistance/Mentoring 22
23 Click to edit Questions? Master title style Jerry Alfonso Miles, Esq. One Research Court, Suite 450 Rockville, Maryland, O (240) M (240)
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