A&D Conf Breakout Session #2
- 1. Breakout Session #2 Overview of the SBIR and STTR Programs by Sharon C. Ballard, President/CEO EnableVentures, Inc. Phoenix Convention Center January 26, 2012 EnableVentures, Inc. You envision . . . we enable.™ “You envision . . . we enable.”™ © Copyright 2003-2012. EnableVentures, Inc. 1
- 2. Innovation, US economy and small business S Small businesses create most new jobs B Business ideas validated, business practices imposed I High risk/high payoff innovations, globally successful new products R Research and development by our nation’s brain trust © Copyright 2003-2012. EnableVentures, Inc. 2
- 3. Agencies in SBIR Program • Department of Agriculture (USDA) • Department of Commerce (DOC) • Department of Defense (DoD) • Department of Education (DoED) • Department of Energy (DOE) • Department of Health and Human Services (HHS) • Department of Transportation (DOT) • Environmental Protection Agency (EPA) • National Aeronautics & Space Admin (NASA) • National Science Foundation (NSF) • Department of Homeland Security © Copyright 2003-2012. EnableVentures, Inc. 3
- 4. Small business requirements • For-profit U.S. business • 51% U.S.-owned and independently operated – NIH, DoE, NSF (25% of budget exceptions) – All other agencies (15% of budget exception) • Small business located in the U.S. • 500 or fewer employees • P.I.’s primary employment with small business during project (SBIR) © Copyright 2003-2012. EnableVentures, Inc. 4
- 5. SBIR Program phases • Phase I Feasibility study (funded proposal effort) $150K, 6 months • Phase II Research, Research and Development 2-Years, $1M • Phase III Commercialization stage Funding from non-SBIR Program funds © Copyright 2003-2012. EnableVentures, Inc. 5
- 6. What is the Small Business Technology Transfer (STTR) Program? • Team small businesses with research institutions • Similar to SBIR Program • Requires partnership with research institution – Universities, federal labs, private research institutes • Small Business: > 40% of Work • Research Institute: > 30% of Work • Only 5 Agencies: DoD, DoE, HHS, NASA, NSF • .3% (2011) to .45% (2016) © Copyright 2003-2012. EnableVentures, Inc. 6
- 7. STTR Program phases • Phase I Feasibility study (funded proposal effort) $150K, 12 months • Phase II Research, Research and Development 2-Years, $1M • Phase III Commercialization stage Funding from non-SBIR Program funds © Copyright 2003-2012. EnableVentures, Inc. 7
- 8. SBIR vs. STTR Program comparison SBIR STTR Set-Aside Budget (2009) 2.5% 0.3% $2.315B $131M Award Guidelines Phase I $150K, 6 mos $100K, 12 mos Phase II $1M, 18-24 mos $1M, 24 mos Subcontracts Phase I <33% <60% Phase II <50% <60% Academic/Lab Not Required >30% Component Business Employment >50% n/a of PI © Copyright 2003-2012. EnableVentures, Inc. 8
- 9. Agency SBIR/STTR budgets - 2009 DOD 1.36B NIH 672M NSF 110M NASA 127M DOE 155M All Others: HSA, EPA, DOC, DOT, 75.6M USDA, DOEd © Copyright 2003-2012. EnableVentures, Inc. 9
- 10. Agency differences Contracts Grants NIH- DOT Grants NIH-Contracts DOC USDA DHS NASA EPA DoED NSF DOD DOE Narrow Topics Broad Topics © Copyright 2003-2012. EnableVentures, Inc. 10
- 11. Schedule of SBIR/STTR solicitations • Each agency = own schedule • Schedules change each year • Different schedules for SBIR and STTR • Some = one solicitation; others = multiple solicitations • Some have multiple submission dates with one annual solicitation • Check each agency’s website © Copyright 2003-2012. EnableVentures, Inc. 11
- 12. Topics & solicitations • Topics selected by agency – You can contribute a topic idea! • Proposals must be responsive to a topic or they will be screened out (no technical review) • Topic lists published by each agency in its solicitation (Request for Proposals) • Most agencies publish one solicitation per year; DoD and DHHS/NIH have multiple solicitations © Copyright 2003-2012. EnableVentures, Inc. 12
- 13. Review processes by agency: who’s the audience? DoD Internal NASA Internal DOT Internal EPA Internal DOE External DHS Internal DOC Internal NSF External USDA External DoED Internal NIH External http://grants.nih.gov/grants/funding/sbir.htm, Overview of the SBIR/STTR Program © Copyright 2003-2012. EnableVentures, Inc. 13
- 14. Discussions during open solicitations? DoD Restricted NASA Restricted DOT Restricted EPA Restricted DOE Restricted DHS Restricted DOC Restricted NSF Open USDA Open DoED Open NIH Open © Copyright 2003-2012. EnableVentures, Inc. 14
- 15. SBIR success ratios • Phase I Between 1 to 5 and 1 to 15 • Phase II Between 1 to 2 and 1 to 3 © Copyright 2003-2012. EnableVentures, Inc. 15
- 16. Who are winning SBIR/STTR awards? (DoD data) 2008 2009 New Awardee 22% 20% Prior Phase I only 7% 7% 1-4 Phase II awards 35% 32% 5+ Phase II awards 36% 41% © Copyright 2003-2012. EnableVentures, Inc. 16
- 17. SBIR/STTR firm size distribution (DoD data) Number of Employees 2008 2009 1 to 9 39% 40% 10-24 20% 29% 25-49 14% 13% 50-99 10% 10% 100-249 7% 6% 250-499 3% 2% © Copyright 2003-2012. EnableVentures, Inc. 17
- 18. SBIR/STTR evaluation criteria • Technical merit • Team qualifications • Value to agency • Potential for commercial • Cost / cost realism © Copyright 2003-2012. EnableVentures, Inc. 18
- 19. Electronic proposal submissions • Nearly all agencies now require electronic submissions • Allow enough time -- weeks, not days • Prepare for multiple site submission processes • NIH: 20% of electronic submissions performed by service providers © Copyright 2003-2012. EnableVentures, Inc. 19
- 20. The government and IP rights • Worldwide “March-In” rights • Non-exclusive license • Royalty-free license • World-wide license (government not in business to commercialize) © Copyright 2003-2012. EnableVentures, Inc. 20
- 21. IP Considerations for SBIR/STTR ventures •Rights in inventions •Rights in technical data and computer software developed or provided under government contracts •Protecting rights in information in proposals •Protecting company-confidential information or trade secrets under FOIA •Use of nondisclosure agreements •Consider an IP Disclosure Plan •Protecting IP rights in subcontracts and teaming agreements •Retain the best counsel who know IP, licensing and FAR, DFAR © Copyright 2003-2012. EnableVentures, Inc. 21
- 22. Key financial management & accounting requirements • Financial capability to perform • Adequate accounting system: – Time charging – Chart of Accounts – Budgets • Job cost accounting: – Segregation of Project/Contract costs • Reporting (internal and external practices) • Billing, reporting, shipping and other forms • Retain professionals who know these areas! – They are not so easy to find! © Copyright 2003-2012. EnableVentures, Inc. 22
- 23. Program Tradeoffs - Sharon’s Personal Experiences Advantages Disadvantages • Payments on Time • Slow Procurement Cycles • Contractual, Administrative • Pays for High Risk Burdens, Negotiations Developments – Invests in Delivery Research Security • Desires Small Businesses to Billing Succeed – Resources • Validates technologies • Shared Ownership of Technology • No Equity • No Financial Privacy • Well-Defined Market © Copyright 2003-2012. EnableVentures, Inc. 23
- 24. SBIR information sources http://www.zyn.com/sbir/ http://www.sbir.gov http://www.inknowvation.com/ © Copyright 2003-2012. EnableVentures, Inc. 24
- 25. “Get Ready” for the SBIR Program It’s free! NEWS – Major Update Coming. UP © Copyright 2003-2012. EnableVentures, Inc. 25