Iact sbir overview from bbc 4 27-2021
- 1. Copyright © BBC Entrepreneurial Training & Consulting, LLC DEVELOPING THE BUSINESS OF TECHNOLOGY April 27, 2021 Presenter: Jerry Hollister Senior Principal Consultant 517-230-7417 jerry@bbcetc.com bbcetc.com / @BBC_etc Overview of the SBIR/STTR Program
- 2. www.bbcetc.com / 734-930-9741 / @BBC_etc BBCetc works with technology-based entrepreneurs and companies on strategies to advance R&D efforts to commercialization. We are nationally recognized for our success in helping clients win federal funding through the SBIR/STTR programs and use it tactically to propel growth. Services include training courses and one-on-one counseling in: SBIR/STTR and Other Research Grant Assistance SBIR/STTR and Commercialization Training Grants/Contracts Management Programs for Entrepreneurial Support Organizations About BBCetc 2
- 3. Jerry Hollister Former DOD Contracting Officer US Navy Civil Engineer Corps Portsmouth Naval Shipyard, 1990-93 Led Niowave SBIR Program for >10 years Over 45 SBIR/STTR awards Over $20 million Primary agencies: DOE, DOD, DHS, NSF 2010 DOE SBIR/STTR Small Business of Year 2016 Tibbitts Award recipient Led 2018 effort to receive $15 million contract with NNSA (part of DOE) 3
- 4. What are SBIR* and STTR**? Support small business to: Stimulate technological innovation to ̶ Develop products with commercial merit $4.0 billion of federal funding to: 4 * – Small Business Innovation Research ** – Small Business Technology Transfer
- 5. What is SBIR/STTR…. Mandated by legislation Current authorization through 2022 Separate legislation for SBIR and STTR Applies to agencies with extramural research budgets that exceed certain thresholds SBIR applicable to 11 Agencies STTR applicable to 5 of the 11 SBIR agencies Participation mandatory SBA “oversees” program implementation and compliance SBIR/STTR Policy Directive Small Business Size Regulations 5
- 6. SBIR/STTR Programs 6 Source: SBIR and the Phase III Challenge of Commercialization: Report of a Symposium. NAS, 2007. a.k.a. “Come Back When a.k.a. “Come back when…” Capital converts Ideas into innovation
- 7. Which Would You Choose? Venture Capital 6-12 months to funding <1% probability Need to know someone Unlikely to fund early stage Take equity (sometimes lots) Take a board seat (and sometimes control) SBIR / STTR 9 months to funding 10% - 20% probability Don’t need to know anyone Will fund early stage Don’t take equity Don’t take board seat $>4 billion per year available Peer review 7
- 8. SBIR/STTR Program Overview SMALL BUSINESS INNOVATION RESEARCH (SBIR) PROGRAM Set-aside program for small business concerns to engage in Federal R&D -- with potential for commercialization. SMALL BUSINESS TECHNOLOGY TRANSFER (STTR) PROGRAM Set-aside program to facilitate cooperative R&D between small business concerns and U.S. research institutions -- with potential for commercialization. 8 3.2% 0.45%
- 9. 11 Participating Federal Agencies SBIR and STTR SBIR Only DOD - $1.8 B USDA - $30 M HHS - $1.15 B DHS - $17 M DOE - $308 M DOC-NOAA - $9.5M NSF - $212 M ED - $8.4 M NASA - $183 M DoT – 5.2 M DOC-NIST - $3.9 M EPA - $3.6 M 9 TOTAL: ~$3.7 B FY 2019 DoD HHS DOE NSF NASA Orange: Grant Purple: Contract
- 10. The Basics of SBIR: 3 Phases 3 Years, ~$1,250,000+ Phase I: 6-12 Months $100-250K Phase II: 2 Years ~$1,000 -1,500 K+ Phase III: Commercialization (no federal SBIR/STTR $$) 10
- 11. Three Phases of SBIR/STTR Details Agency Dependent Phase I – Feasibility* 6 months – 1 year $80k – 250k Phase II - Expand results, pursue further development* 2 years $750k - $1.6m Phase III – Commercialization Your own $$ ( ie - no government $!) Some agencies will directly fund Phase III *Phase I and II supplements available at some agencies 11
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- 13. You must have a small business! For-profit US-owned and controlled < 500 employees Located in the U.S. R&D must be performed in the U.S. Company-controlled research space 13
- 14. You need a Project Team Company Employees Domain expertise Senior personnel Other personnel Independent Consultants Specialized expertise Subcontractors Employees of another company/institution Advisors May or may not be compensated Available “as needed” Roles you should have on your team Technical (including product development) Customer discovery / development IP & regulatory Fundraising Management & administration 14
- 15. You Need a Principal Investigator 15 For an SBIR the PI MUST be employed by the small business and have >50% of their professional effort at the small business.
- 16. You Need Facilities The research work to be performed by the awardee is to be conducted in: Company-controlled Research space Suitable to do the work proposed Some work may be done in other facilities 16
- 17. Virtual Companies are Not Eligible 17
- 18. You must Have a Project 18
- 19. The Project Based on “technological innovation” What is the technological innovation that will enable the product to achieve the desired performance? Is there risk of failure? Will the product be revolutionary or evolutionary? Not for commercializing technology that has already been developed, or one with low risk that only needs capital 19
- 20. Technological Innovation? 20 It’s a pillow! It’s a pet!
- 21. You must Have a Product 21
- 22. You must have Commercial Potential 22
- 23. The Project Ability to provide a solution to a problem in exchange for money ̶ Important Problem? ̶ Viable Business Model? What is Commercialization? 23
- 24. The Project – QUESTIONS: Credible Commercialization Strategy Is there a market identified? How many customers have you interviewed? Has a competitive analysis been done? How will the company generate revenue? What additional resources will be required to achieve commercialization? Have sources of those resources been identified? Strategic Partners Sources of capital 24
- 25. Commercialization There is no such thing as the “Build it and they will come” Business Model 25
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- 28. Registrations Required by Agency Registration Type Agency NIH DoD NSF NASA DoE USDA DoT EPA DoC DoEd DHS EIN X X X X X X X X X X X DUNS X X X X X X X X X X X SBIR.gov (company registration)* X X X X X X X X X X X SAM (System of Award Management) X X** X X X X X X X X X Grants.gov X X X X eCommons X FastLane / Research.gov X DoD’s sbir.defensebusiness.org X PAMS (DOE Portfolio Analysis & Mgmt System) X ASAP X FedConnect X X EHB (Electronic Handbook) X *SAM registration is not required to complete SBIR.gov registration **DoD does not require SAM registration until time of award but encourages it before submission For registration links, visit BBC’s website: http://bbcetc.com/capabilities/sbir-sttr-research-grant- assistance/registration-help/ 28
- 29. SBIR & STTR Size Regulations >50% owned and controlled by: i. US citizens, permanent resident aliens and/or one or more domestic business concerns which themselves are >50% owned and controlled by US Citizens or permanent resident aliens or i. Multiple domestic VCOCs, HFs, or PEFs, provided that no single such investor owns more than 50% (SBIR ONLY) Ownership and Control 29
- 30. Know the Difference between SBIR & STTR Not all agencies with both SBIR and STTR programs give YOU the choice of mechanism 30
- 31. SBIR vs. STTR SBIR allows but does not require the involvement of a non-profit research institution STTR requires the involvement of a non-profit research institution Relationship with a non-profit research institution: 31 The Applicant Organization is always the Small Business!
- 32. SBIR vs. STTR: Who does the work? SBIR: < 33% in a Phase I and 50% in a Phase II STTR: > 40% at small business and >30% at partner non-profit research institution Subcontract percentages 32 BUT: The applicant is always the small business
- 33. SBIR vs. STTR: Where is the PI? SBIR: PI at least 51% employed at small business STTR: At small business or non-profit research partner. Must have an ‘official relationship’ with the small business and at least 10% effort on the project (except for NSF) Principal Investigator rules: 33
- 34. Before You Start with University… Intellectual Property Policy Invention disclosure Communicate with Tech Transfer (IP licensing) Conflict-of-interest policy Consulting opportunities Communicate with Sponsored Research Office Budget & letter of commitment 34
- 35. How do you choose ? Does the agency offer STTR? Is the relevant technology area/specific topic offered under both mechanisms? If yes to both above: Do a resource inventory – people and facilities ̶ What do I have ̶ What do I need ̶ Where will I fill the gaps? Talk to the Agency 35
- 36. SBIR vs. STTR SBIR STTR Applicant is ALWAYS the Small Business Concern (SBC) Allows outsourcing* Requires outsourcing* • 1˚ subcontractor must be a non-profit research institution Maximum outsourcing limits • ≤ 33% of Phase I • ≤ 50% of Phase II Minimum participation requirements • ≥ 40% by SBC • ≥ 30% by SBC 1˚ subcontractor Company MUST have “company controlled R&D facilities suitable to do work proposed” PI must be employed by SBC • > 50% of full time equivalent PI may be employed by SBC or 1˚ Subcontractor • > 50% of full time equivalent • ≥ 10 % effort on project *outsourcing includes work done by subcontractors and consultants 36
- 37. Data Rights—New Policy (May 2019) Protected period of 20 years from first award The Government has some limited rights in SBIR/STTR Data, Computer Software, and Technical Data so as to enable agencies to evaluate the technology being developed and to administer their programs. the Government has some limited rights in SBIR/STTR Data, Computer Software, and Technical Data so as to enable agencies to evaluate the technology being developed and to administer their programs. After Protected Period, the government will have “Government Purpose Rights”: The Government can use the data for its own purposes, and can provide the data to third parties for noncommercial purposes to assist the agencies in their evaluation and administration of SBIR/STTR programs, subject to the third parties’ signing appropriate non-disclosure agreements. The Government does obtain Unlimited Rights in Form, Fit, and Function Data (data required to enable functional performance and integration) and Operations, Maintenance, Installation, or Training Purposes (OMIT) Data (data needed for any of these purposes). DATA MUST BE APPROPRIATELY MARKED otherwise after the Protected Period the Government will obtain Unlimited Rights 37
- 38. Summary >$4.0 Billion per year for Product Development Must have a technological Innovation Must have a credible commercial plan Only open to For-Profit majority owned by US Citizens & Permanent Residents Must have a credible Principal Investigator Must have adequate facilities Required Elements for SBIR/STTR 38
- 39. CT Resources CT Next Up to 20 hours of BBC support $250 participation fee ($150 for women or minority owned) Must attend training and be approved CT PTAC Free services Great for assisting with registration(s) http://www.ctptac.org 39
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- 42. BBCetc Team Becky Aistrup, MBA - Managing Partner & Co-owner Kris Bergman - Managing Partner & Co-owner Andrea Johanson, PhD – Sr. Principal Consultant Shannon Bass – Principal Consultant Jerry Hollister – Principal Consultant Megan Varnum, PhD – Principal Consultant Amanda Barnhart - Principal Consultant Amy Davis – Michigan Program Director Jodi Bergman - Administrative Manager Julie Nagel, PhD – SHARPhub Program Operations Marisol Rodriguez – SHARPhub Program Manager Aaron Lansky - Accounting
- 43. Copyright © BBC Entrepreneurial Training & Consulting, LLC DEVELOPING THE BUSINESS OF TECHNOLOGY info@bbcetc.com 734.930.9741 www.bbcetc.com Social: @BBC_etc BBCetcllc BBC Entrepreneurial Training & Consulting LLC Contact Us