[Federal Register: May 18, 2001 (Volume 66, Number 97)]
[Notices]
[Page 27721-27738]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18my01-93]
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SMALL BUSINESS ADMINISTRATION
RIN 3245-AE72
Small Business Innovation Research Program Policy Directive
AGENCY: Small Business Administration.
ACTION: Notice of proposed policy directive.
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SUMMARY: This document proposes revisions to the Small Business Innovation Research (SBIR) Program Policy Directive. This revised proposed policy directive reflects recently enacted statutory requirements. It is proposed to provide guidance to participating Federal agencies for the general conduct of the SBIR Program.
DATES: Public comments on this proposed policy directive should be received on or before June 18, 2001.
ADDRESSES: Address all comments concerning this proposed revision to Maurice Swinton, Assistant Administrator for Technology, Office of Technology, Office of Policy, Planning, and Liaison, Office of Government Contracting/Business Development, U.S. Small Business Administration, 409 3rd Street, SW, Washington, DC 20416 or via email to technology@sba.gov
[[Page 27722]]
FOR FURTHER INFORMATION CONTACT: Maurice Swinton, Office of Technology; Office of Policy, Planning, and Liaison; Office of Government Contracting/Business Development, at (202) 205-6450. You may also e-mail technology@sba.gov .
SUPPLEMENTARY INFORMATION: In 1982, Congress enacted the Small Business Innovation Development Act of 1982 (SBIDA), Public Law 97-219 (codified at 15 U.S.C. 638), which established the Small Business Innovation Research Program (SBIR Program). SBIDA requires the SBA to ``issue policy directives for the general conduct of the SBIR programs within the Federal Government.'' 15 U.S.C. 638(j)(1). The U.S. Small Business Administration (SBA) published its first policy directive, Policy Directive No. 65-01, 19 years ago (47 FR 52966, Nov. 24, 1982). The last SBIR Policy Directive amendments were published 8 years ago (58 FR 6144-6158, Jan. 26, 1993).The statutory purpose of the SBIR Program is to strengthen the role of innovative small business concerns (SBCs) in Federally-funded research and research and development (R/R&D). Specific program purposes are to:
Stimulate technological innovation;
use small business to meet Federal R/R&D needs;
foster and encourage participation by socially and economically disadvantaged SBCs, and by SBCs that are 51 percent owned and controlled by women, in technological innovation; and
increase private sector commercialization of innovations derived from Federal R/R&D.
The SBIR Program is a phased process, uniform throughout the Federal Government, of soliciting proposals and awarding funding agreements for R/R&D to meet stated agency needs or missions. To stimulate and foster scientific and technological innovation, including increasing commercialization of Federal R/R&D, the program must follow a uniform competitive process of three phases: Phase I, Phase II, and Phase III.
Recently, Congress enacted the Small Business Innovation Research Program Reauthorization Act of 2000 (Reauthorization Act), Public Law 106-554 (Dec. 21, 2000). The Reauthorization Act extends the SBIR Program through September 30, 2008. In addition, the Reauthorization Act:
Clarifies SBIR data rights pertaining to SBIR Phase I and II awards and awards issued pursuant to Phase III (Proposed Policy Directive, section 8(b) and App. I, Instructions, Sec. 5(d)(1)(iii));
requires the establishment of SBIR Program Government-accessible and a public-accessible database (Proposed Policy Directive, section 11(e));
requires each application for a Phase II award contain a succinct commercialization plan (Proposed Policy Directive, section 6(b));
requires agencies to report to SBA all instances in which the agency fails to issue a Phase III or follow-on funding agreement (Proposed Policy Directive, section 4(c)(7-8));
clarifies when a Phase III award can be issued (Proposed Policy Directive, section 4(c));
requires agencies with extramural budgets over $50,000,000 to enter into an agreement with the National Academy of Sciences for the National Research Council to conduct a review of their SBIR Program (Proposed Policy Directive, section 2(a)(1)(iv));
requires agencies to report to SBA annually on the calculations of the agency's extramural budget within 4 months of enactment of the agency's annual Appropriations Act (Proposed Policy Directive, sections 2(a)(1)(v) and 9(a)(1));
establishes the Federal and State Technology (FAST) Partnership Program to strengthen the technological competitiveness of small business concerns (SBCs) in the United States (Proposed Policy Directive, Sec. 12(a)); and
extends the Rural Outreach Program through September 30, 2005, (Proposed Policy Directive, section 12(b)).
SBA welcomes comment on our proposed provisions to implement these new statutory requirements. In addition, we request comment on section 11(e)(3)(iii) of the Proposed Policy Directive, implementing the new statute requiring information provided to the SBIR databases to be privileged, confidential, and not subject to the Freedom of Information Act, codified at 15 USC 638(k)(4).
The Reauthorization Act directs SBA to modify its policy directive to address these amendments within 120 days after the date of enactment of the Reauthorization Act. In addition to addressing these recent amendments to the SBIR Program, SBA proposes changes in this policy directive to simplify and enhance the program. The proposed policy directive is organized into 12 self-explanatory sections: (1) Purpose; (2) Summary of Legislative Provisions; (3) Definitions; (4) Competitively Phased Structure of the Program; (5) Program Solicitation Process; (6) Eligibility and Application (Proposal) Requirements; (7) SBIR Funding Process; (8) Terms of Agreement Under SBIR Awards; (9) Responsibilities of SBIR Participating Agencies and Departments; (10) Annual Report to SBA; (11) Responsibilities of SBA; and (12) FAST Partnership Program and Rural Outreach Program. Two appendices are also included: (1) Instructions for SBIR Program Solicitation Preparation; and (2) Tech-Net Data Fields for Public Database.
Furthermore, this proposed policy directive will provide more flexibility to the agencies participating in the SBIR Program to continue vital research for meritorious proposals that could potentially go unfunded due to a lack of resources available under SBIR Program or Small Business Technology Transfer (STTR) Program budgets. STTR is a separate program from SBIR in which Federal agencies with extramural budgets for R/R&D in excess of $1 billion per fiscal year make funding agreements with SBC's joint venturing with a research institution, non-profit organization, or Federally Funded Research and Development Center (FFRDC). SBA proposes a new policy at section 4(b) that would allow participating Federal agencies to fund Phase II awards under their SBIR or STTR Programs, which had its origin in either program. Agencies must continue to meet the statutory expenditure of the extramural budget of 2.5 percent for the SBIR program and .15 percent for the STTR program. Any award that is funded through this process will then be deemed an award of the program which provides the Phase II funding. The awardee must meet the eligibility requirements for the program under which the Phase II award is funded. For example, if a Phase I STTR award is changed to a Phase II SBIR award, the collaborative partner for the Phase I STTR award could then be converted from a joint venture to a subcontractor. Conversely, if a Phase I SBIR award is changed to a Phase II STTR award, the small business concern must then partner with a research institution, Federal laboratory or non-profit organization.
In developing this proposed policy directive, SBA has considered initial comments from all agencies required to have SBIR programs. All of these comments received by SBA were individually reviewed and considered. SBA welcomes public comments upon this proposed policy directive and will revise the policy directive as necessary to improve the general conduct of the SBIR Program based upon comments received.
[[Page 27723]]
Notice of Proposed Policy Directive; Small Business Innovation Research Program
To: The Small Business Innovation Research Program Directors
Subject: Small Business Innovation Research Program Reauthorization Act of 2000--Amendments to the Small Business Innovation Research (SBIR) Program1. Purpose. Section 9(j)(3) of the Small Business Act 15 U.S.C. 638(j)(3) requires the U.S. Small Business Administration (SBA) Administrator to modify the Small Business Innovation Research (SBIR) Program Policy Directive for the general conduct of the SBIR Program within the Federal Government.
2. Authority. This proposed policy directive is issued under the authority of 15 U.S.C. 638(j).
3. Procurement Regulations. The Federal Acquisition Regulations may need to be modified to conform to the requirements of the Reauthorization Act and a final policy directive. Regulatory provisions that pertain to the areas of SBA responsibility will require approval of the SBA Administrator or designee. The Office of Technology, Office of Policy, Planning, and Liaison, Office of Government Contracting/Business Development, SBA, is the appropriate office for coordinating such regulatory provisions.
4. Personnel Concerned. All Federal Government personnel who are involved in the administration of the program, including those involved with the issuance and management of funding agreements of the SBIR Program and the establishment of goals for small business concerns (SBCs) in research or research and development procurements or grants.
5. Distribution. Federal Government agencies and departments participating in the SBIR Program and those required to establish small business research and development goals as directed by section 9 of the Small Business Act 15 U.S.C. 638(j).
6. Originator. Office of Technology, Office of Policy, Planning, and Liaison, Office of Government Contracting/Business Development, SBA.
7. Dates. The SBIR Program is authorized through September 30, 2008. A final Policy Directive will be effective when published in the Federal Register. Authorized By:
William A. Fisher,
Deputy Associate Deputy Administrator, Government Contracting/Business
Development, U.S. Small Business Administration.John Whitmore,
Acting Administrator, Small Business Administration.Small Business Innovation Research (SBIR) Program, Proposed Policy Directive
Contents
Section
1. Purpose
2. Summary of Legislative Provisions
3. Definitions
4. Competitively Phased Structure of the Program
5. Program Solicitation Process
6. Eligibility and Application (Proposal) Requirements
7. SBIR Funding Process
8. Terms of Agreement Under SBIR Awards
9. Responsibilities of SBIR Participating Agencies and Departments
10. Annual Report to the Small Business Administration (SBA)
11. Responsibilities of the SBA
12. Federal and State Technology (FAST) Partnership Program and
Rural Outreach Program
Appendix I: Instructions For SBIR Program Solicitation Preparation
Appendix II: Tech-Net Data Fields For Public Database
1. Purpose
(a) Section 9(j) of the Small Business Act (Act) requires that the
Small Business Administration (SBA) issue an SBIR Program Policy
Directive for the general conduct of the SBIR Program within the
Federal Government.
(b) This proposed policy directive fulfills SBA's statutory
obligation to provide guidance to the participating Federal agencies
for the general operation of the SBIR Program. Additional or modified
instructions may be issued by the SBA as a result of public comment or
experience.
(c) The statutory purpose of the SBIR Program is to strengthen the
role of innovative small business concerns (SBCs) in Federally-funded
research and research and development (R/R&D). Specific program
purposes are to: (1) Stimulate technological innovation; (2) use small
business to meet Federal R/R&D needs; (3) foster and encourage
participation by socially and economically disadvantaged SBCs, and by
SBCs that are 51 percent owned and controlled by women, in
technological innovation; and (4) increase private sector
commercialization of innovations derived from Federal R/R&D.
(d) Federal agencies participating in the SBIR Program (SBIR
agencies) should follow the guidance provided by this proposed policy
directive. Each agency is obligated to review its rules, policies, and
guidance on the SBIR Program to ensure consistency with this policy
directive and to make any necessary changes in accordance with each
agency's normal procedures. This is consistent with the statutory
authority provided to the SBA concerning the SBIR Program.
2. Summary of Legislative Provisions
(a) The Small Business Innovation Research Program Reauthorization
Act of 2000, Public Law 106-554, amended section 9 of the Act (15
U.S.C. 638).
(1) The purposes of the amendments to the Act are to:
(i) Continue the SBIR Program through September 30, 2008;
(ii) Clarify data rights pertaining to SBIR Phase I, Phase II, and
federally funded Phase III awards.
(iii) Establish databases--one for the public and one for
Government use--to collect and maintain in a common format, information
necessary to assist SBCs and assess the SBIR Program.
(iv) Require agencies with SBIR budgets of over $50,000,000 to
enter into an agreement with the National Academy of Sciences for the
National Research Council to conduct a review of each agency's SBIR
Program.
(v) Require SBIR agencies to report to SBA on the calculation of
the agency's extramural budget within 4 months of enactment of each
agency's annual Appropriations Act.
(vi) Establish the Federal and State Technology (FAST) Partnership
Program to strengthen the technological competitiveness of SBCs.
(vii) Extend the Rural Outreach Program through September 30, 2005.
(b) The Act requires each Federal agency with an extramural budget
for Research/Research & Development (R/R&D) in excess of $100,000,000
to participate in the SBIR Program.
(c) The statutory requirements assist SBCs by establishing a
uniform, simplified process for the operation of the SBIR Program while
allowing the SBIR agencies flexibility in the operation of their
individual SBIR Program. This policy directive fulfills the
Congressional intent to minimize regulatory burden in the conduct of
this program.
(d) The Act requires each SBIR agency to establish an SBIR Program
by reserving not less than 2.5 percent of its extramural budget for
awards to SBCs for R/R&D through a uniform, three-phase process,
including:
[[Page 27724]]
(1) Phases I and II. The first two phases help SBIR agencies meet
R/R&D and commercialization objectives through funding agreements.
(2) Phase III. The third phase, when appropriate helps SBCs,
(i) to pursue commercial applications from the Government-funded R/
R&D in order to stimulate technological innovation and provide for the
national return on investment from R/R&D, and/or
(ii) to obtain additional contract or grant activity with Federal
agencies through non-SBIR funding agreements.
(e) The Act directs each SBIR agency to report annually to SBA. The
Act also requires SBA to obtain annual reports and monitor each
agency's SBIR Program and to report our findings annually to the
Committee on Small Business of the Senate and to the Committee on
Science and the Committee on Small Business of the House of
Representatives.
(f) The competition requirements of the Armed Services Procurement
Act of 1947 (10 U.S.C. 2302 et seq.) and the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.) must be
read in conjunction with the procurement notice publication
requirements of Section 8(e) of the Small Business Act (15 U.S.C.
637(e)). The following notice publication requirements of Section 8(e)
of the Small Business Act (15 U.S.C. 637(e)) apply to SBIR agencies
using contracts as a SBIR funding agreement:
(1) Any Federal executive agency intending to solicit a proposal to
contract for property or services valued above $25,000 must transmit a
notice of the impending solicitation to the governmentwide point of
entry (GPE) for access by interested sources. See FAR 5.201. The GPE,
located at http://www.fedbizopps.gov, is the single point where
Government business opportunities greater than $25,000, including
synopses of proposed contract actions, solicitations, and associated
information, can be accessed electronically by the public. The
contracting office may transmit the notice to the Commerce Business
Daily (CBD) in lieu of the GPE if the contracting office lacks the
capability to access the GPE and the notice is issued prior to October
1, 2001.
(i) No agency shall issue its solicitation for at least 15 days
from the date of the publication of the GPE or CBD notice. The agency
may not establish a deadline for submission of proposals in response to
a solicitation earlier than 30 days after the date on which the
solicitation was issued.
(ii) When transmitting notices to the GPE before January 1, 2002,
contracting officers must direct the GPE to forward the notice to the
CBD.
(2) The contracting officer must generally make available through
the GPE solicitations synopsized through the GPE including
specifications and other pertinent information determined necessary by
the contracting officer. See FAR 5.102.
(3) Any executive agency awarding a contract for property or
services valued at more than $25,000 must submit a synopsis of the
award through the GPE if a subcontract is likely to result from such
contract. See FAR 5.301. The contracting office may transmit the notice
to the CBD in lieu of the GPE if the contracting office lacks the
capability to access the GPE and the notice is issued prior to October
1, 2001.
(4) The following are exemptions from the notice publication
requirements:
(i) In the case of agencies intending to solicit Phase I proposals
for contracts in excess of $25,000, the head of the agency may exempt a
particular solicitation from the notice publication requirements if he/
she makes a written determination, with the consultation of the
Administrator of the Office of Federal Procurement Policy and the SBA
Administrator, that it is inappropriate or unreasonable to publish a
notice before issuing a solicitation.
(ii) The SBIR Phase II award process is exempt.
(iii) The SBIR Phase III award process is exempt.
3. Definitions
(a) Act. The Small Business Act (15 U.S.C. 631 et seq.), as
amended.
(b) Applicant. The organizational entity that, at the time of
award, will qualify as a SBC, as defined in this section, and that
submits a contract proposal or a grant application for a funding
agreement under the SBIR Program.
(c) Affiliate. This term has the same meaning as set forth in 13
CFR Part 121--Small Business Size Regulations, Sec. 121.103, What is
affiliation?
(d) Awardee. The SBC receiving an SBIR funding agreement.
(e) Commercialization. The process of developing markets and
producing and delivering products or services for sale (whether by the
originating party or by others) to Government and/or commercial
markets.
(f) Cooperative Agreement. A financial assistance mechanism used
when substantial Federal programmatic involvement with the awardee
during performance is anticipated by the issuing agency. The
Cooperative Agreement contains the responsibilities and respective
obligations of the parties.
(g) Data rights. The license the Government obtains in scientific
or technical data, including computer software and computer software
documentation, generated during the performance of a funding agreement
that an awardee provides to the Government upon completion of a
Federally-funded project.
(h) Essentially Equivalent Work. The ``scientific overlap,'' which
occurs when (1) substantially the same research is proposed for funding
in more than one contract proposal or grant application submitted to
the same Federal agency; (2) substantially the same research is
submitted to two or more different Federal agencies for review and
funding consideration; or (3) a specific research objective and the
research design for accomplishing an objective are the same or closely
related in two or more proposals or awards, regardless of the funding
source.
(i) Extramural Budget. The sum of the total obligations for R/R&D
minus amounts obligated for R/R&D activities by employees of a Federal
agency in or through Government-owned, Government-operated facilities.
For the Agency for International Development, the ``extramural budget''
shall not include amounts obligated solely for general institutional
support of international research centers or for grants to foreign
countries. For the Department of Energy, the ``extramural budget''
shall not include amounts obligated for atomic energy defense programs
solely for weapons activities or for naval reactor programs. (Also see
Section 7(i) of this policy directive for additional exemptions related
to national security.)
(j) Feasibility. The practical extent to which a project is capable
of being successfully performed.
(k) Federal Agency. An executive agency as defined in 5 U.S.C. 105,
or a military department as defined in 5 U.S.C. 102 except that it does
not include any agency within the Intelligence Community as defined in
Executive Order 12333, Section 3.4(f), as amended.
(l) Funding Agreement. Any contract, grant, cooperative agreement,
or other transaction entered into between any Federal agency and any
SBC for the performance of experimental, developmental, or research
work funded in whole or in part by the Federal Government.
(m) Funding Agreement Officer. A contracting officer, a grants
officer, or a cooperative agreement officer.
[[Page 27725]]
(n) Grant. A financial assistance mechanism providing money,
property, or both to an eligible entity to carry out an approved
project or activity. A grant is used whenever the Federal agency
anticipates no substantial programmatic involvement with the awardee
during performance of the financially assisted activities.
(o) Innovation. Something new or improved, including research for
(1) development of new technologies, (2) refinement of existing
technologies, or (3) development of new applications for existing
technologies.
(p) Intellectual Property. The four separate and distinct types of
intangible property that are referred to collectively as ``intellectual
property': patents, trademarks, copyrights, and trade secrets. The
patent is the most common type of intangible property fostered by the
SBIR Program.
(q) Joint Venture. An association of persons or concerns with
interests in any degree or proportion by way of contract, express or
implied, consorting to engage in and carry out a single specific
business venture for joint profit, for which purpose they combine their
efforts, property, money, skill, or knowledge, but not on a continuing
or permanent basis for conducting business generally. A joint venture
is viewed as a business entity in determining power to control its
management and is eligible under the SBIR Program provided that the
entity created qualifies as a ``SBC'' as defined in this section of the
policy directive.
(r) Outcomes. The measures of long-term, eventual, program impact.
(s) Outputs. The measures of near-term program impact.
(t) Principal Investigator/Project Manager. The one individual
designated by the applicant to provide the scientific and technical
direction to the project that will be supported by the funding
agreement.
(u) Program Solicitation. A formal solicitation of proposals
whereby a Federal agency notifies the small business community of its
R/R&D needs and interests in selected areas and requests proposals in
response to these needs from SBCs. Announcements in the Federal
Register, Commerce Business Daily, or the GPE are not considered an
SBIR Program solicitation.
(v) Prototype. A model of something to be further developed, which
includes designs, protocols, questionnaires, software, and devices.
(w) Research or Research and Development (R/R&D). Any activity that
is:
(1) A systematic, intensive study directed toward greater knowledge
or understanding of the subject studied;
(2) A systematic study directed specifically toward applying new
knowledge to meet a recognized need; or
(3) A systematic application of knowledge toward the production of
useful materials, devices, and systems or methods, including design,
development, and improvement of prototypes and new processes to meet
specific requirements.
(x) Small Business Concern. An SBC is a concern that, on the date
of award for both Phase I and Phase II funding agreements:
(1) is organized for profit, with a place of business located in
the United States, which operates primarily within the United States or
which makes a significant contribution to the United States economy
through payment of taxes or use of American products, materials or
labor;
(2) is in the legal form of an individual proprietorship,
partnership, limited liability company, corporation, joint venture,
association, trust or cooperative, except that where the form is a
joint venture there can be no more than 49 percent participation by
foreign business entities in the joint venture;
(3) is at least 51 percent owned and controlled by one or more
individuals who are citizens of, or permanent resident aliens in, the
United States; and
(4) has, including its affiliates, not more than 500 employees.
(y) Socially and Economically Disadvantaged Individual. A member of
any of the following groups:
(1) Black Americans.
(2) Hispanic Americans.
(3) Native Americans.
(4) Asian-Pacific Americans.
(5) Subcontinent Asian Americans.
(6) Other groups designated from time to time by SBA to be socially
disadvantaged; or any other individual found to be socially and
economically disadvantaged by SBA pursuant to Section 8(a) of the Small
Business Act, 15 U.S.C. 637(a).
(z) Socially and Economically Disadvantaged SBC. See 13 CFR Part
124 --8(A) Business Development/Small Disadvantaged Business Status
Determinations, Secs. 124.103 (Who is socially disadvantaged?) and
124.104 (Who is economically disadvantaged?).
(aa) Subcontract. Any agreement, other than one involving an
employer-employee relationship, entered into by an awardee of a funding
agreement calling for supplies or services required solely for the
performance of the original funding agreement.
(bb) United States. Means the 50 states, the territories and
possessions of the Federal Government, the Commonwealth of Puerto Rico,
the District of Columbia, the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic of Palau.
(cc) Women-Owned SBC. A SBC that is at least 51 percent owned by
one or more women, or in the case of any publicly owned business, at
least 51 percent of the stock of which is owned by women, and who also
control and operate it. ``Control'' in this context means exercising
the power to make policy decisions. ``Operate'' in this context means
being actively involved in the day-to-day management.
4. Competitively Phased Structure of the Program
The SBIR Program is a phased process, uniform throughout the
Federal Government, of soliciting proposals and awarding funding
agreements for R/R&D to meet stated agency needs or missions. To
stimulate and foster scientific and technological innovation, including
increasing commercialization of Federal R/R&D, the program must follow
a uniform competitive process of three phases:
(a) Phase I. Phase I involves a solicitation of grant applications
or contract proposals (proposals) to conduct feasibility related
experimental or theoretical R/R&D related to described agency
requirements. These requirements, as defined by agency topics contained
in a solicitation, may be general or narrow in scope, depending on the
needs of the agency. The object of this phase is to determine the
scientific and technical merit and feasibility of the proposed effort
and the quality of performance of the SBC with a relatively small
agency investment before consideration of further Federal support in
Phase II.
(1) Several different proposed solutions to a given problem may be
funded.
(2) Proposals will be evaluated on a competitive basis. Agency
criteria used to evaluate SBIR proposals shall give primary
consideration to the scientific and technical merit of the proposal
along with its potential for commercialization. Secondary
considerations may include program balance or critical agency
requirements.
(3) Agencies may include requirements for submission of a Phase II
proposal as a deliverable item under Phase I.
(b) Phase II. The object of Phase II is to continue the R/R&D
effort from the completed Phase I. Agencies must make efforts to reduce
the time frame for
[[Page 27726]]
issuing Phase II awards and are encouraged to develop gap-funding
methods to address the duration of Phase II award cycles. Only SBIR
awardees in Phase I (including those identified via a ``novated'' or
``successor in interest'' or similarly-revised funding agreement, or
those that have reorganized with the same key staff, regardless of
whether they have been assigned a different tax identification number)
are eligible to participate in Phase II.
(1) Awardees of an STTR (Small Business Technology Transfer) Phase
I award may submit a proposal for an SBIR Phase II award, which
continues the research conducted under the STTR Phase I award. Agencies
may then issue an SBIR Phase II award to those awardees using SBIR
funds. However, those awardees must meet the requirements of the SBIR
Program. For example, the awardee could no longer partner with a non-
profit joint ventured within the STTR Phase I award, but could
subcontract work to a non-profit. In effect, the award converts from an
STTR to an SBIR award.
(2) Awardees of an SBIR Phase I award may submit a proposal for an
STTR Phase II award, which continues the research conducted under the
SBIR Phase I award. Agencies may then issue an STTR Phase II award to
those awardees using STTR funds. However, those awardees must meet the
requirements of the STTR Program. Thus, the awardee must partner with a
research institution, non-profit organization or Federally Funded
Research and Development Center (FFRDC). In effect, the award converts
from an SBIR to an STTR award. Agencies must provide to the SBA a
written justification with their annual report the rationale for this
deviation.
(3) Agencies must provide to the SBA a written justification with
their annual report the rationale for this deviation. Funding shall be
based upon the results of Phase I and the scientific and technical
merit and commercial potential of the Phase II proposal. Phase II
awards may not necessarily complete the total research and development
that may be required to satisfy commercial or Federal needs beyond the
SBIR or STTR Programs. Completion of the research and development may
be through a Phase III. The Phase II funding agreement with the awardee
may, at the discretion of the agency awarding the agreement, establish
the procedures applicable to third phase agreements. The Government is
not obligated to fund any specific Phase II proposal. The SBIR or STTR
Phase II award decision process requires, among other things,
consideration of a proposal's commercial potential. Commercial
potential includes the potential to transition the technology to
private sector applications, Government applications, or Government
contractor applications. Commercial potential in a Phase II proposal
may be evidenced by:
(i) the SBC's record of successfully commercializing SBIR, STTR or
other research;
(ii) the existence of second phase funding commitments from private
sector or other non-SBIR or STTR funding sources;
(iii) the existence of third phase, follow-on commitments for the
subject of the research; and
(iv) the presence of other indicators of commercial potential of
the idea.
(a) Phase III. The term third phase agreement means a follow-on,
non-SBIR funded award as described below. A Federal agency may enter
into a third phase agreement with the awardee of the second phase for
additional work to be performed during or after the second phase
period.
(1) The competition for SBIR Phase I and Phase II awards satisfies
any competition requirement of the Armed Services Procurement Act and
the Federal Property and Administrative Services Act. Therefore, an
agency that wishes to fund an SBIR project in Phase III (with non-SBIR
funds), or enter into a follow-on procurement with an SBIR concern, is
not required to conduct another competition in order to satisfy those
statutory provisions.
(2) Where appropriate, there will be a third phase, which is funded
by:
(i) non-Federal sources of capital for commercial applications of
SBIR funded research or research and development; or
(ii) non-SBIR Federal funding for SBIR derived products or services
intended for use by the Federal Government; or
(iii) non-SBIR Federal funding sources for the continuation of
research or research and development that has been competitively
selected using peer review or scientific review criteria.
(3) The term ``third-phase award'' or ``SBIR Phase III award''
applies to each of the following activities:
(i) commercial application of SBIR-funded research or R&D funded by
non-Federal sources of capital;
(ii) products and services intended for use by the Federal
Government funded by follow-on non-SBIR Federal funding awards;
(iii) the continuation of R/R&D funded by non-SBIR Federal funding
sources.
(4) The third phase work may be for products or production,
services,
R/R&D, or any combination.
(5) There is no limitation on the number, duration, or dollar value
of third phase awards made to a business concern.
(6) As indicated above, the competition for SBIR Phase I and Phase
II awards satisfies any competition requirement of the Armed Services
Procurement Act and the Federal Property and Administrative Act.
Therefore, agencies or their Government-owned, contractor-operated
facilities or Federally funded research and development centers or
Government prime contractors, that wish to fund an SBIR project in
Phase III (with non-SBIR funds) or enter into a follow-on procurement
with a business concern, shall not request FAR required Justifications
and Approvals in the conduct of contract actions relative to a third
phase agreement.
(7) Congress intends that agencies or their Government-owned,
contractor-operated facilities or Federally-funded research and
development centers or Government prime contractors, pursuing R/R&D, or
production developed under the SBIR Program give special acquisition
preference, including sole source awards, to the awardee that developed
the technology. In fact, the Act requires reporting to SBA of all
instances in which an agency fails to issue a Phase III award to a SBC
that pursued R/R&D pursuant to the SBIR Program (see Section 9 of this
policy directive). SBA, in turn, reports these instances to the
Congress. The Phase III awardee does not need to be eligible as a SBC
(as defined in this policy directive) to receive the Phase III funding
agreement.
(8) Agencies or their Government-owned, contractor-operated
facilities or Federally-funded research and development centers,
intending to pursue R/R&D, or production developed under the SBIR
Program with an entity other than the awardee of the second phase, must
notify SBA in writing prior to awarding such a funding agreement. This
notification shall include: (a) the reasons why the follow-on funding
agreement with the SBC is not practicable; (b) the identity of the
entity with which the agency intends to make an award to perform
research, development, or production; and (c) a description of the type
of funding agreement under which the research, development, or
production will be obtained. SBA reviews the justification and may
appeal the decision to the head of the contracting activity. If SBA
decides to appeal the decision, SBA will
[[Page 27727]]
file its notice of intent to appeal to the contracting officer no later
than 5 business days after receiving notice of the agency's intent to
make an award. Upon receipt of SBA's notice of intent to appeal, the
contracting officer should suspend further action regarding the funding
agreement until the head of the contracting activity issues a written
decision on the appeal. Within 15 business days of SBA's notification
of its intent to appeal, SBA must either file its formal appeal with
the head of the contracting activity or that agency may consider the
appeal withdrawn. The contracting activity must specify in writing to
SBA its reasons for a denial of an appeal.
5. Program Solicitation Process
(a) Each agency shall at least annually issue a program
solicitation that sets forth a substantial number of R/R&D topics and
subtopic areas consistent with stated agency needs or missions. Both
the list of topics and the description of the topics and subtopics must
be sufficiently comprehensive to provide a wide range of opportunity
for SBCs to participate in the agency research or R&D programs. Topics
and subtopics must emphasize the need for proposals with advanced
concepts to meet specific agency R/R&D needs. Each topic and subtopic
must describe the needs in sufficient detail to assist small firms in
providing on-target responses, but cannot involve detailed
specifications to prescribed solutions of the problems.
(b) The Act requires issuance of SBIR (Phase I) Program
solicitations in accordance with a Master Schedule coordinated between
SBA and the SBIR agency. The SBA organization responsible for
coordination is: Office of Technology, Office of Policy, Planning, and
Liaison, Office of Government Contracting/Business Development, U. S.
Small Business Administration, 409 Third Street, SW, Washington, DC
20416, Phone: (202) 205-6450, Internet site: www.sba.gov/sbir.
(c) For maximum participation by interested SBCs, it is important
that the planning, scheduling and coordination of agency program
solicitation release dates be completed as early as practicable in
order to be coordinated with the commencement of the fiscal year on
October 1. Bunching of agency program solicitation release and closing
dates may prohibit SBCs from the preparation and timely submission of
proposals for more than one SBIR project. SBA's coordination of agency
schedules minimizes the bunching of proposed release and closing dates.
Participating agencies may elect to publish multiple program
solicitations within a given fiscal year to facilitate in-house agency
proposal review and evaluation scheduling.
(d) Master Schedule
SBA posts an electronic Master Schedule of release dates of program
solicitations with links to Internet web sites of agency solicitations.
Agencies must post on their Internet web sites the following
information regarding each program solicitation:
(1) The list of topics upon which research or R&D proposals will be
sought.
(2) Agency address, phone number, or email address from which SBIR
Program solicitations can be requested or obtained, especially through
electronic means.
(3) Names, addresses, and phone numbers of agency contact points
where SBIR-related inquiries may be directed.
(4) Release date(s) of program solicitation(s).
(5) Closing date(s) for receipt of proposals.
(6) Estimated number and average dollar amounts or level of effort
of Phase I awards to be made under the solicitation.
(e) Each agency representative must notify SBA in writing or by e-
mail of its proposed program solicitation release and proposal due
dates for the next fiscal year on or before August 1. The SBA and the
agency representatives will coordinate the resolution of any
conflicting agency solicitation dates by the second week of August. In
all cases, the SBA will make final decisions.
(f) For those agencies that use both general topic and more
specific subtopic designations in their SBIR solicitations, the topic
data should accurately describe the research solicited. For example,
rather than just announcing topic information characterized as
``Chemistry'' or ``Aerodynamics,'' the SBIR agency could summarize the
subtopic statements and, where appropriate, utilize National Critical
Technologies.
(g) Simplified, Standardized, and Timely SBIR Program Solicitations
(1) The Act requires ``* * * simplified, standardized and timely
SBIR solicitations'' and for SBIR agencies to use a ``uniform process''
minimizing the regulatory burden for SBCs. Therefore, the instructions
in Appendix I to this policy directive purposely depart from normal
Government solicitation format and requirements. SBIR Program
solicitations shall be prepared according to Appendix I.
(2) Agencies must provide the SBA's Office of Technology with two
hard copies or an e-mail version of each solicitation and any
modifications no later than the date of release of the solicitation or
modification to the public. Those agencies that issue program
solicitations in electronic format only shall provide the Internet site
at which the program solicitation may be accessed no later than the
date of posting at that site of the program solicitation or
modification to the public.
(3) SBA does not intend that the SBIR Program solicitation replace
or be used as a substitute for unsolicited proposals for R/R&D awards
to SBCs. In addition, the SBIR Program solicitation procedures do not
prohibit other agency research or R&D actions with SBCs that are
carried on in accordance with applicable statutory/regulatory
authorizations.
6. Eligibility and Application (Proposal) Requirements
(a) Eligibility Requirements:
(1) Each awardee under the SBIR Program must qualify as a SBC as
defined in this policy directive.
(2) For Phase I--a minimum of two-thirds of the research or
analytical effort must be performed by the awardee. Deviation from this
requirement must be approved in writing by the funding agreement
officer.
(3) For Phase II--a minimum of one-half of the research or
analytical effort must be performed by the awardee. Deviation from this
requirement must be approved in writing by the funding agreement
officer.
(4) For both Phase I and II, the primary employment of the
principal investigator must be with the SBC at the time of award and
during the conduct of the proposed effort. Primary employment means
that more than one-half of the principal investigator's time is spent
in the employ of the SBC. Primary employment with a SBC precludes full-
time employment with another organization. Deviation from this
requirement must be approved in writing by the funding agreement
officer. (For purposes of the SBIR Program, personnel obtained through
a Professional Employer Organization or other similar personnel leasing
company may be considered employees of the awardee. This is consistent
with 13 CFR Sec. 121.106--Small Business Size Regulations.)
(5) Also, for both Phase I and Phase II, the research or R&D work
must be performed in the United States, as defined in this proposed
policy directive. However, based on a rare and unique circumstance
agencies may approve that particular portion of the
[[Page 27728]]
research or R&D work to be performed or obtained in a country outside
of the United States. For example, if a supply or material or other
item or project requirement is not available in the United States.
Approval by the funding agreement officer for each such specific
condition(s) must be in writing.
(b) Proposal Requirements:
(1) Documentation of commercialization record of firms with
multiple Phase II awards. A SBC submitting a proposal for a funding
agreement for Phase I of an SBIR Program that has received more than 15
Phase II SBIR awards during the preceding 5 fiscal years must document
the extent to which it was able to secure third phase funding to
develop concepts resulting from previous Phase II SBIR awards.
(2) Commercialization Plan. A succinct commercialization plan must
be included with each proposal for an SBIR Phase II award moving toward
commercialization. Elements of a commercialization plan may include the
following:
(i) Company information: Focused objectives/core competencies;
size; specialization area(s); products with significant sales; and
history of previous Federal and non-Federal funding, regulatory
experience, and subsequent commercialization.
(ii) Customer and Competition: Clear description of key technology
objectives, current competition, and advantages compared to competing
products or services; description of hurdles to acceptance of the
innovation.
(iii) Market: Milestones, target dates, market analyses of market
size, and estimated market share after first year sales and after 5
years; explanation of plan to obtain market share.
(iv) Intellectual Property: Patent status or other demonstration of
a plan to achieve sufficient protection to realize the
commercialization stage and attain at least a temporal competitive
advantage.
(v) Financing: Plans of securing necessary funding in Phase III.
(vi) Data Collection: Each Phase II applicant will be required to
provide information to the Tech-Net Database System (http://
technet.sba.gov). See Appendix I, Item III. C., for additional
information.
7. SBIR Funding Process
In requiring the establishment of a ``simplified, standardized
funding process,'' the SBIR legislation requires that specific
attention be given to the following areas of SBIR Program
administration:
(a) Timely Receipt and Review of Proposals.
(1) Participating agencies must establish firm schedules and review
formats for appropriate distribution of the proposals for reviewing
recommendations and submission to the SBIR Project Manager for award
determinations.
(i) All activities related to Phase I proposal reviews shall
normally be completed and awards made within 6 months from the closing
date of the program solicitation. However, agencies may extend that
period up to 12 months based on agency needs.
(ii) The program solicitations for Phase I must establish proposal
submission dates. Related to Phase II activity, an agency may also
establish set proposal submission dates. However, agencies may
negotiate mutually acceptable proposal submission dates with individual
Phase I performers, accomplish proposal reviews expeditiously, and
proceed with awards. While recognizing that Phase II arrangements
between the agency and applicant may require more detailed negotiation
to establish terms acceptable to both parties, agencies must not
sacrifice the R/R&D momentum created under Phase I by engaging in
unnecessarily protracted Phase II proceedings.
(iii) SBIR participants often submit duplicate or similar proposals
to more than one soliciting agency when the work projects appear to
involve similar topics or requirements, which are within the expertise
and capability levels of the applicant. To the extent reasonably
feasible, interagency funding duplications of ``essentially equivalent
work'' under the SBIR or other Federal programs should not occur. For
this purpose, the standardized program solicitation will require
applicants to indicate the name and address of the agencies to which
essentially equivalent work proposals were made, or anticipated to be
made, and to identify by subject the projects for which the proposal
was submitted and the dates submitted. The same information will be
required for any previous Federal Government awards. To assist in
avoiding duplicate funding, each agency must provide to SBA and to each
SBIR agency a listing of Phase I and Phase II awardees including the
complete address and title of each SBIR project. This information
should be distributed no later than release of the funding agreement
award information to the public.
(b) Review of SBIR Proposals. SBA encourages SBIR agencies to use
their routine review processes for SBIR proposals whether internal or
external evaluation is used. A more limited review process may be used
for Phase I due to the larger number of proposals anticipated. Where
appropriate, ``peer'' reviews external to the agency are authorized by
the Act. SBA cautions SBIR agencies that all review procedures must be
designed to minimize any possible conflict of interest as it pertains
to applicant proprietary data. The standardized SBIR solicitation
advises potential applicants that proposals may be subject to an
established external review process and that the applicant may include
company designated proprietary information in its proposal.
(c) Selection of Awardees. Normally, SBIR agencies shall establish
a proposal review cycle wherein successful and unsuccessful applicants
will be notified of final award decisions within 6-months of the
agency's Phase I proposal closing date. However, agencies may extend
that period up to 12 months based on agency needs.
(1) The standardized SBIR Program solicitation must:
(i) Advise Phase I applicants that additional information may be
requested by the awarding agency to evidence awardee responsibility for
project completion.
(ii) Contain information advising applicants of basic proposal
evaluation criteria for Phase I and Phase II.
(2) Phase II proposal submissions, reviews, and selections shall be
managed by arrangements between the SBIR agency and each Phase I
awardee considered for Phase II award.
(d) Cost Sharing.
Cost sharing can serve the mutual interests of the SBIR agencies
and certain SBIR awardees by assuring the efficient use of available
resources. However, cost sharing on SBIR projects is not required,
although it may be encouraged. The standardized SBIR Program
solicitation (Appendix I) will provide information to prospective SBIR
applicants concerning cost sharing.
(e) Payment Schedules and Cost Principles.
(1) Under Section 9(g)(7) of the Small Business Act, 15 U.S.C.
638(g)(7), SBIR awardees may be paid under an applicable, authorized
progress payment procedure or in accordance with a negotiated/
definitized price and payment schedule. Advance payments are optional
and may be made under appropriate law. In all cases, agencies must make
payment to recipients under SBIR funding agreements in full, subject to
audit, on or before the last day of the 12-month period beginning on
the date of completion of the award.
[[Page 27729]]
(2) All SBIR funding agreements must use, as appropriate, current
cost principles and procedures authorized for use by the SBIR agencies.
At the time of award, agencies shall inform each SBIR awardee, to the
extent possible, of the applicable Federal regulations and procedures
that refer to the costs that, generally, are allowable under funding
agreements.
(f) Funding Agreement Types and Fee or Profit. Statutory
requirements for uniformity and standardization require consistency in
application of SBIR Program provisions among SBIR agencies. However,
consistency must allow for flexibility by the various agencies in
missions and needs as well as the wide variance in funds required to be
devoted to SBIR Programs in the agencies. The following instructions
are for the purpose of meeting these requirements:
(1) Funding Agreement. The choice of type of funding agreement
(contract, grant, or cooperative agreement) rests with the awarding
agency but must be consistent with 31 U.S.C. 6301-6308.
(2) Fee or Profit. Unless expressly excluded by statute, awarding
agencies must provide for a reasonable fee or profit on SBIR funding
agreements, consistent with normal profit margins provided to profit-
making firms for R/R&D work.
(g) Periods of Performance and Extensions.
(1) In keeping with the legislative intent to make a large number
of relatively small awards, modification of funding agreements to
extend periods of performance, increase the scope of work, or to
increase the dollar amount should be kept to a minimum, except for
options in original Phase I or II awards.
(2) Phase I. Period of performance should normally not exceed 6
months. However, agencies may provide a longer performance period based
on agency needs or research plans.
(3) Phase II. Period of performance under Phase II is a subject of
negotiation between the awardee and the issuing agency. The duration of
Phase II should normally not exceed 2 years. However, agencies may
provide a longer performance period based on agency needs or research
plans.
(h) Dollar Value of Awards.
(1) The Act establishes $100,000 as the maximum amount of funds
which an agency may award in the first phase of an SBIR Program, and
$750,000 as the maximum amount of funds which an agency may award in
the second phase of an SBIR Program. SBA may adjust these amounts once
every 5 years to reflect economic adjustments and programmatic
considerations.
(2) After award of any funding agreement exceeding $100,000 for
Phase I or $750,000 for Phase II, the agency SBIR representative must
provide SBA with written justification of such action. This
justification must be submitted with the SBIR agency's Annual Report
data. Similar justification is required for any dollar increase of a
funding agreement that would bring the cumulative dollar amount to a
total in excess of the amounts above.
(i) National Security Exemption.
The Act provides for exemptions related to the simplified
standardized funding process ``* * * if national security or
intelligence functions clearly would be jeopardized.'' This exemption
should not be interpreted as a blanket exemption or prohibition of SBIR
participation related to the acquisition of effort on national security
or intelligence functions except as specifically defined under Section
9(e)(2) of the Act, 15 USC 638(e)(2). Agency technology managers
directing R/R&D projects under the SBIR Program, where the project
subject matter may be affected by this exemption, must first make a
determination on which, if any, of the standardized proceedings clearly
place national security and intelligence functions in jeopardy, and
then proceed with an acceptable modified process to complete the SBIR
action. SBA's SBIR Program monitoring activities, except where
prohibited by security considerations, shall include a review of
nonconforming SBIR actions justified under this public law provision.
8. Terms of Agreement Under SBIR Awards
(a) Proprietary Information Contained in Proposals. The
standardized SBIR Program solicitation, as described in the Appendix I
of this policy directive, will include provisions requiring the
confidential treatment of any proprietary information to the extent
permitted by law. Agencies will discourage SBCs from submitting
information considered proprietary unless the information is deemed
essential for proper evaluation of the proposal. The solicitation will
require that all proprietary information to be clearly identified and
marked with a prescribed legend. Agencies may elect to require SBCs to
limit proprietary information to that essential to the proposal and to
have such information submitted on a separate page or pages keyed to
the text.
(b) Rights in Data Developed Under SBIR Funding Agreement. The Act
provides for ``retention by a SBC of the rights to data generated by
the concern in the performance of an SBIR award.''
(1) The legislative history states that the law provides authority
for the SBIR agency to protect technical data generated under the
funding agreement. Each agency should refrain from disclosing such data
to competitors of the SBC or from using the information to produce
future technical procurement specifications that could harm the SBC
that discovered and developed the innovation until the SBC has a
reasonable opportunity to seek patent protection, if appropriate.
(2) SBIR agencies shall protect such technical data for a period of
not less than 4 years from completion of each phase of the SBIR Program
(Phase I, Phase II, and Federally-funded Phase III) from which the data
were generated unless the agencies obtain permission to disclose such
data from the awardee. The Government shall retain a royalty-free
license for Government use of any technical data delivered under an
SBIR funding agreement whether patented or not. This section does not
apply to program evaluation.
(3) These data rights apply to all funding awards, including
subcontracts to such awards, that fall within the statutory definition
of first phase, second phase, and third phase of the SBIR Program, as
described in Section 4 of this proposed policy directive. The scope and
extent of the SBIR data rights applicable to Federally funded third
phase awards shall be identical to the SBIR data rights applicable to
Phases I or II SBIR awards. That is, for phases one and two SBIR
awards, the 4-year period of protection identified in 8(b)(2)
immediately above begins with the completion of the Phase I period, and
if a Phase II award is made, the 4-year period extends through the
completion of the Phase II period. A Phase III award, if made, may not
occur for several years beyond completion of the Phase II SBIR award
period. Thus, the 4-year period of protection for a Phase III award
begins with the completion of the Phase III award period.
(c) Title Transfer of Agency Provided Property. Under the Act,
title to equipment purchased for project performance with funds
provided under SBIR funding agreements may be transferred to the
awardee where such transfer would be more cost effective than recovery
of the property by the Government.
(d) Continued Use of Government Equipment. The Act directs that a
SBC participating in the third phase of the SBIR Program be allowed
continued use, as a directed bailment, of any property transferred by a
Federal agency to the SBC in the second phase of an SBIR Program for a
period of not less
[[Page 27730]]
than 2 years, beginning on the initial date of the concern's
participation in the third phase of such program.
(e) Grant Authority. The Act does not, in and of itself, convey
grant authority. Each agency must secure grant authority in accordance
with its normal procedures.
(f) Conflicts of Interest. SBA cautions SBIR agencies that awards
made to SBCs owned by or employing current or previous Federal
Government employees can create conflicts of interest for those
employees in violation of FAR Part 3 and the Ethics in Government Act
of 1978, as amended. Each SBIR agency should refer to the standards of
conduct review procedures currently in effect for its agency to ensure
that such conflicts of interest do not arise.
(g) Congress intends that the awardee of a funding agreement under
the SBIR Program should, when purchasing any equipment or a product
with funds provided through the funding agreement, purchase only
American-made equipment and products, to the extent possible in keeping
with the overall purposes of that program. Each SBIR agency must
provide to each awardee a notice of this.
9. Responsibilities of SBIR Participating Agencies and Departments
(a) The Act requires each agency participating in the SBIR Program
to:
(1) Submit to the SBA, not later than 4 months after the date of
enactment of its annual Appropriations Act, a report describing the
methodology used for calculating the amount of its extramural budget.
The report must also include an itemization of each research program
excluded from the calculation of its extramural budget and a brief
explanation of why it is excluded.
(2) Unilaterally determine the categories of projects to be
included in its SBIR Program, giving special consideration to broad
research topics and to topics that further one or more critical
technologies, as identified by:
(i) the National Critical Technologies panel (or its successor) in
the 1991 report required under section 603 of the National Science and
Technology Policy Organization and Priorities Act of 1976, and in
subsequent reports issued under that authority, or
(ii) the Secretary of Defense in the 1992 report issued in
accordance with 10 U.S.C. 2522 and in subsequent reports issued under
that authority.
(3) Release SBIR solicitations in accordance with the SBA master
schedule.
(4) Unilaterally receive and evaluate proposals resulting from
program solicitations and issue funding agreements.
(5) Provide for the requirement of a succinct commercialization
plan with each proposal for a Phase II funding agreement that is moving
toward commercialization.
(6) Collect and maintain information from awardees and provide it
to SBA to develop and maintain the Tech-Net Database, as identified in
Section 11(e) of this proposed policy directive.
(7) Administer its own SBIR funding agreements or delegate such
administration to another agency; and inform each awardee under such
agreement, to the extent possible, of the costs of the awardee that
will be allowable under the funding agreement.
(8) Include provisions in each funding agreement under the SBIR
Program setting forth the respective rights of the United States and
the SBC with respect to intellectual property rights and with respect
to any right to carry out follow-on research.
(9) Ensure that the rights in data developed under each Federally-
funded SBIR first phase, second phase, and third phase funding
agreement are properly protected.
(10) Make payments to awardees of SBIR funding agreements on the
basis of progress toward or completion of the funding agreement
requirements and in all cases make payment to awardees under such
agreements in full, subject to audit, on or before the last day of the
12-month period beginning on the date of completion of such
requirements.
(11) Provide an annual report on the SBIR Program to SBA. See
Section 10 of this policy directive.
(12) Report at least annually to the SBA's Office of Technology all
instances in which an agency pursued research, development, or
production of a technology developed by a SBC using an award made under
the SBIR Program of that agency, where the agency determined that it
was not practicable to enter into a follow-on non-SBIR Program funding
agreement with the SBC. The report shall include, at a minimum:
(i) The reasons why the follow-on funding agreement with the SBC
was not practicable;
(ii) The identity of the entity with which the agency contracted to
perform the research, development, or production; and
(iii) A description of the type of funding agreement under which
the research, development, or production was obtained.
(13) Include in its annual performance plan a section on its SBIR
Program, and shall submit such section to the Committee on Small
Business of the Senate, and the Committee on Science and the Committee
on Small Business of the House of Representatives.
(14) Provide data to SBA to be used in SBIR Program evaluation (see
Section 11(e) of this policy directive).
(b) The Act allows discretionary technical assistance to SBIR
awardees:
(1) Agencies may enter into funding agreements to provide technical
assistance to SBIR awardees, which may include:
(i) Assistance in technical decisions;
(ii) Assistance with technical problems; and
(iii) Assistance with all facets of commercialization.
(2) Under Phase I, each agency may provide up to $4,000 of SBIR
funds for such technical assistance, for each Phase I award. The amount
will be in addition to the award and will count as part of the agency's
SBIR funding.
(3) In Phase II, agencies may allow awardees to expend up to $4,000
of SBIR funds per year of the funding agreement for such services.
(c) Interagency actions.
(1) Joint funding. An SBIR project may be financed by more than one
Federal agency. Joint funding is not required but can be an effective
arrangement for some projects.
(2) Phase II awards. An SBIR Phase II award may be issued by a
Federal agency other than the one that made the Phase I award. The
Phase I and Phase II agencies should document their files
appropriately, providing clear rationale for the transfer of the Phase
II proposal to, and award by, the funding Federal agency.
(3) Timely notification of awards. In order to avoid duplicate
funding of an SBIR project, agencies shall promptly search the Tech-Net
Database System for awards for essentially equivalent work. Discussion
among agencies receiving similar proposals is strongly encouraged
before an SBIR award is made.
(4) Participation by women-owned SBCs and socially and economically
disadvantaged SBCs in the SBIR Program. In order to meet statutory
requirements for greater inclusion, SBA and the Federal participating
agencies must conduct outreach efforts to find and place innovative
women-owned SBCs and socially and economically disadvantaged SBCs in
the SBIR Program information system. These SBCs will be required to
compete for SBIR awards on the same basis as all other SBCs. However,
participating agencies are encouraged to work independently and
cooperatively with SBA to develop methods to encourage qualified women-
owned SBCs and
[[Page 27731]]
socially and economically disadvantaged SBCs to participate in the SBIR
Program.
(d) Agency limitation of participation and use of funds.
(1) A Federal agency must not use any of its SBIR budget for the
purpose of funding administrative costs of the program, including costs
associated with program operations, employee salaries, and other
associated expenses.
(2) A Federal agency shall not issue an SBIR funding agreement that
includes a provision for subcontracting any portion of that agreement
back to the issuing agency or to any other Federal Government agency or
other units of the Federal Government. However, an agency may deviate
from this requirement based on a determination that such subcontracting
is vital to its mission. Approval by the funding agreement officer for
each such specific condition must be in writing. (SBA expects that
agency deviations will not be routine, and will occur only for those
special SBIR projects where the use of Federal resources is absolutely
essential to the successful conduct of a project that is vital to the
mission of the agency, and equivalent resources are not available in
the private sector.)
(3) No agency, at its own discretion, may unilaterally cease
participation in the SBIR Program. R/R&D agency budgets may cause
fluctuations and trends that must be reviewed in light of SBIR program
purposes. An agency may be considered by SBA for a phased withdrawal
from participation in the SBIR Program over a period of time sufficient
in duration to minimize any adverse impact on SBCs. However, the SBA
decision concerning such a withdrawal will be made case-by-case basis
and will depend on significant changes to extramural R/R&D 3-year
forecasts as found in the annual Budget of the United States Government
and National Science Foundation breakdowns of total R/R&D obligations
as published in the Federal Funds for Research and Development. Any
withdrawal of an SBIR Federal participating agency from the SBIR
Program will be accomplished in a standardized and orderly manner in
compliance with these statutorily mandated procedures.
(4) Voluntary participation in the SBIR Program by Federal agencies
not otherwise qualified for such participation may be permitted under
this policy directive. Federal agencies seeking to participate in the
SBIR Program must submit their written requests to SBA. Voluntary
participation requires the written approval of the SBA after review of
the request.
10. Annual Report to the Small Business Administration
The Act requires a ``simplified, standardized and timely annual
report'' from the SBIR agencies. The following paragraphs expand on
this requirement, providing the due date, the kinds of information to
be included, and the number of copies to be submitted to SBA.
(a) Annual Report Due Date and Number of Copies
Reporting shall be on an annual basis and will be for the period
ending September 30 of each fiscal year. A single, hard copy report is
due to SBA by March 15 of each year. However, if agencies choose to
send an e-mail version, it should be sent to technology@sba.gov.
Example: The report for FY 2001 (October 1, 2000--September 30, 2001)
must be submitted to SBA by March 15, 2002. SBA encourages agencies to
submit their annual report before the due date of March 15 of each
year.
(b) Annual Report Content
(1) Agency total fiscal year, extramural R/R&D total obligations as
reported to the National Science Foundation pursuant to the annual
Budget of the United States Government.
(2) SBIR Program total fiscal year dollars derived by applying the
statutory per centum to the agencies extramural R/R&D total
obligations.
(3) SBIR Program fiscal year dollars obligated through SBIR Program
funding agreements for Phase I and Phase II.
(4) Number of topics and subtopics contained in each program
solicitation.
(5) Number of proposals received by the agency for each topic and
subtopic in each program solicitation.
(6) For both Phase I and Phase II, the awardee's name and address,
solicitation topic and subtopic, solicitation number, project title,
and total dollar amount of funding agreement. Identify women-owned
SBCs, economically and socially disadvantaged SBCs, and Phase II
awardees with a follow-on funding commitment(s).
(7) Justification for the award of any funding agreement exceeding
$125,000 for Phase I or $750,000 for Phase II.
(8) The number of awardees for whom the Phase I process exceeded
the 6-month period from the closing date of the SBIR solicitation to
award of the funding agreement.
(9) For an agency Phase III award using non-SBIR Federal funds to
continue a Phase II project, the agency shall instruct the Phase III
awardee to provide the name, address, project title, and dollar amount
obligated.
(10) Awards made under a topic or subtopic wherein only one
proposal was received shall be reported and justified. Agencies must
provide name, address, topic or subtopic and dollar amount of award.
Information must be collected quarterly but updated in agencies' annual
reports.
(11) An accounting of Phase I awards made to SBCs that have
received more than 15 Phase II awards from all agencies in the
preceding 5 fiscal years. Agencies to report as a minimum: name of
awarding agency, date of award, funding agreement number, topic or
subtopic title, amount and date of Phase II funding, and
commercialization status for each Phase II award.
(12) If applicable, report the number of National Critical
Technology topic or subtopic funding agreements, the percentage by
number and dollar amount of total SBIR awards to such National Critical
Technologies.
(13) Report at least annually all instances in which an agency
pursued research, development, or production of a technology developed
by a SBC using an award made under the SBIR Program of that agency, and
determined that it was not practicable to enter into a follow-on non-
SBIR Program funding agreement with the SBC. See Section 9(a)(12). for
minimum reporting requirements.
(14) Justification for continuing an STTR Phase I project through
the SBIR Program using SBIR funds. Explain in detail the rationale for
this deviation.
11. Responsibilities of SBA
(a) The SBA's Office of Technology will annually obtain available
information on the current critical technologies from the National
Critical Technologies panel (or its successor) and the Secretary of
Defense and provide such information to the SBIR agencies.
(b) SBA will request this information in June of each year. The
data received will be submitted to each of the participating Federal
agencies and will also be published in the September issue of the SBIR
Pre-Solicitation Announcement.
(c) Examples of SBIR Areas to be Monitored by SBA.
(1) SBIR Funding Allocations. Of major significance to the success
of the SBIR Program is the magnitude and nature of the SBIR agencies'
funding allocations identified for fiscal year
[[Page 27732]]
funding agreements. The Act explicitly relates to both the definition
of the SBIR effort, R/R&D (as defined in the Act and OMB Circular A-
11), and the mathematical methodology for determining fiscal year
participation levels for all work categorized within the statutory
definitions. SBA monitors these allocations.
(2) SBIR Program Solicitation and Award Status. The accomplishment
of scheduled SBIR events, such as SBIR Program solicitation release and
the issuance of funding agreements is critical to meeting statutory
mandates and to operating an effective, useful program. SBA monitors
these and other operational features of the SBIR Program. SBA does not
plan to monitor administration of the awards except in instances where
SBA assistance is requested and is related to a specific SBIR project
or funding agreement.
(3) Follow-on Funding Commitments. SBA will monitor whether follow-
on non-Federal funding commitments obtained by Phase II awardees for
Phase III were considered in the evaluation of Phase II proposals as
required by the Act.
(4) Agency Rules and Regulations. It is essential that no policy,
rule, regulation, or interpretation be promulgated by the SBIR agencies
that are inconsistent with the Act or this policy directive. SBA's
monitoring activity will include review of policies, rules,
regulations, interpretations, and procedures generated to facilitate
intra-agency SBIR Program implementation.
(d) The SBA develops, participates in, and, when appropriate and
feasible, sponsors seminars for innovative women-owned SBCs and
socially and economically disadvantaged SBCs to inform them of the SBIR
Program and Federal and commercial assistance and services available
for SBIR Program participants.
(e) Standardized Collection of Data--``Technology Resources Access
Network'' (Tech-Net) Database System Overview.
The SBA's Office of Technology, as functional program manager for
the SBIR and the Small Business Technology Transfer (STTR) Programs, is
required to collect and report to the Congress, information regarding
awards made to SBCs by each Federal agency participating in these
programs. The Office of Technology maintains an internal database of
awards and uses the system to report on technology and demographical
statistics regarding the SBIR and the STTR Programs. The system also
stores the 200-word technical abstract for each SBIR and STTR award
that is prepared by the awardee summarizing the research effort that
has been supported by the Federal Government. The system also provides
the Office of Technology with the ability to perform keyword searches
in many areas, including any part of the name, address, and technical
abstract of the awardee. The system produces many reports that are used
in the conduct of audits performed by the General Accounting Office
(GAO) and to expose potential duplication of research and development
efforts funded by the SBIR agencies. The Office of Technology, in a
joint effort with the SBA's Office of the Chief Information Officer, is
redesigning the Office of Technology's internal awards database system
to operate on the Internet. The Internet system is titled the
``Technology Resources Access Network,'' or Tech-Net. Tech-Net offers a
vast array of user friendly capabilities, and is accessible by the
public at no charge. Tech-Net allows for the online submission of SBIR/
STTR awards data from all SBIR agencies, a process that until now was
part manual and part automated. Tech-Net also allows any end-user to
perform keyword searches and create formatted reports of SBIR/STTR
awards information. Tech-Net will allow for potential research partners
to view research and development efforts that are ongoing in the SBIR
and the STTR Programs, increasing the investment opportunities of the
SBIR/STTR SBCs in the high tech arena. Tech-Net serves as an excellent
marketing tool for the small high tech business community, allowing
investors to view first hand the technical capabilities of SBIR/STTR
awardees, which will ultimately produce investments, partnerships, and
strategic alliances resulting in commercialization of SBIR/STTR
research. Tech-Net also houses legislatively mandated information on
all SBIR and STTR awards, as well as outcome and output information
that will be relevant to measuring the effectiveness and success of the
programs. Agencies can update awardee information and add project
commercialization and sales data with user names and passwords. This
can be done via the ``Procurement Marketing and Access Network'' or
Pro-Net database. Pro-Net is the single source client database for all
internal and external SBA database systems and contains information
regarding SBIR and STTR awardees. Username and passwords will be
assigned only to awardees to provide access to their respective awards
information maintained in the Pro-Net system. Award data maintained in
the Tech-Net database can be changed only by the awardee, SBA, or the
awarding
SBIR /STTR Federal agency. Project commercialization and sales data can
only be viewed by Congress, the Government Accounting Office (GAO),
agencies participating in the SBIR and the STTR Programs, Office of
Management and Budget (OMB), Office of Science and Technology Policy
(OSTP), Office of Federal Procurement Policy (OFPP), and other
authorized persons (e.g., authorized contractors) who are subject to a
use and nondisclosure agreement with the Federal Government covering
the use of the database. To use the Tech-Net or Pro-Net database
systems, visit the website http://tech-net.sba.gov. Online help is
available.
(1) Public Tech-Net Database (See Appendix II for Data Fields)
SBA, in consultation with the Federal agencies participating in the
SBIR and the STTR Programs, develops and maintains a searchable, up-to-
date, electronic database that includes:
(i) the name, size, location, funding agreement number, and tax
identification number of each SBC that has received an SBIR or STTR
Phase I or Phase II award from a Federal agency;
(ii) a description of each SBIR or STTR Phase I or Phase II award
received by the SBC including:
(A) an abstract of the project funded by the award, excluding any
proprietary information so identified by the awardee;
(B) the Federal agency making the award; and
(C) the date and amount of the award.
(iii) an identification of any business concern or subsidiary
established for the commercial application of a product or service for
which an SBIR or STTR award is made; and
(iv) information regarding mentors and Mentoring Networks, as
required in the Federal and State Technology (FAST) Partnership Program
described in Section 12 of this proposed policy directive.
(2) Government Tech-Net Database
SBA, in consultation with the Federal agencies participating in the
SBIR and the STTR Programs, develops and maintains a secure database
that:
(i) contains, for each Phase II award:
(A) revenue from the sale of new products or services resulting
from the research conducted under each Phase II award;
(B) additional investment from any source, other than Phase I or
Phase II SBIR or STTR awards, to further the
[[Page 27733]]
research and development conducted under each Phase II award; and
(C) any other information received in connection with the award
that the Administrator, in conjunction with the SBIR program managers
of the participating agencies, considers relevant and appropriate;
(ii) includes any narrative information that a Phase II awardee
voluntarily submits to further describe the outputs and outcomes of its
awards;
(iii) includes for each applicant that does not receive a Phase I
or Phase II award: (1) The name, size, location, identifying number
assigned by the agency, and tax identification number; (2) an abstract
of the project; and (3) the Federal agency to which the application was
made;
(iv) includes any other data collected by or available to any
Federal agency that such agency considers to be useful for SBIR program
evaluation; and
(v) is available for use solely for program evaluation purposes by
the Federal Government or, in accordance with policy directives issued
by SBA, or by other authorized persons who are subject to a use and
nondisclosure agreement with the Federal Government covering the use of
the database.
(3) Data Collection for Government Tech-Net Database
(i) Each SBC applying for a Phase II award is required to update
the appropriate information in the Tech-Net database for any prior
Phase II award received by that SBC. In meeting this requirement, the
SBC may apportion sales or additional investment information relating
to more than one Phase II award among those awards, if it notes the
apportionment for each award.
(ii) Each Phase II awardee is required to update the appropriate
information in the Tech-Net database on that award at the expiration of
the award period. In addition, the awardee is requested to voluntarily
update the appropriate information on that award in the Tech-Net
database annually thereafter for a minimum period of 5 years.
(iii) Under 15 U.S.C. 638(k)(4) information provided to the
Government Tech-Net Database is privileged and confidential and not
subject to disclosure pursuant to 5 U.S.C. 552 (Government Organization
and Employees); nor shall it be considered to be publication for
purposes of 35 U.S.C. 102 (a) or (b).
(iv) SBA will minimize the data reporting requirements of SBCs,
make updating available electronically, and provide standardized
procedures.
12. Federal and State Technology (FAST) Partnership Program and
Rural Outreach Program
(a) Federal and State Technology Partnership Program
The Small Business Innovation Research Program Reauthorization Act
of 2000 (Pub. L. 106-554) established the Federal and State Technology
(FAST) Partnership Program to strengthen the technological
competitiveness of SBCs in the United States. Congress found that
programs that foster economic development among small high-technology
firms vary widely among the States. Thus, the purpose of the FAST
Program is to improve the participation of small technology firms in
the innovation and commercialization of new technology, thereby
ensuring that the United States remains on the cutting edge of research
and development in the highly competitive arena of science and
technology. SBA administers the FAST Program. Additional and detailed
information regarding this program is available electronically at
www.sba.gov/SBIR.
(b) Rural Outreach Program
The Rural Outreach Program is authorized by section 9(s) of the
Small Business Act, 15 U.S.C. 638 (s). The Small Business Innovation
Research Program Reauthorization Act of 2000, Public Law 106-554, which
was signed by the President on December 21, 2000, extends the program
through fiscal year 2005 (September 30, 2005).
Historically, SBCs located in a relatively small number of States
have been highly successful in securing awards under the SBIR Program.
To expand competition under the SBIR and STTR Programs, and to
encourage the maximum number of SBCs to submit proposals and succeed in
winning awards, SBA provides Federal assistance to support statewide
outreach to small high-technology businesses located in States that are
underrepresented in SBIR/STTR awards. Cooperative Agreements to
``Eligible States'' are made on a matching funds basis. The awards will
be made in a ratio of Federal dollars to non-Federal dollars of 2:1,
with a maximum Federal contribution of $100,000. Assistance provided to
an Eligible State under this program announcement shall be used by the
State, in consultation with State and local departments and agencies,
for programs and activities to increase the participation of SBCs
located in the State in the SBIR and STTR Programs. Only ``Eligible
States'' may submit proposals for the Rural Outreach Program. An
``Eligible State'' is defined in section 9(s)(1) of the Small Business
Act (15 U.S.C. 638(s)(1)): ``Eligible State'' means a State-(A) if the
total value of SBIR/STTR awards made to recipient businesses in the
State during fiscal year 1995 under this section [i.e., under SBIR and
STTR Programs], was less than $5,000,000 (as reflected in SBA's
database of fiscal year 1995 awards); and (B) that certifies to the
Administration that the State will, upon receipt of assistance under
this subsection, provide matching funds from non-Federal sources in an
amount that is not less than 50 percent of the amount provided under
this subsection.
The 25 States for which the total value of awards issued under the
SBIR and STTR Programs in fiscal year 1995 was less than $5,000,000
are: Alaska, Arkansas, Delaware, District of Columbia, Hawaii, Idaho,
Indiana, Iowa, Kentucky, Louisiana, Maine, Mississippi, Missouri,
Montana, Nebraska, Nevada, North Dakota, Oklahoma, Puerto Rico, Rhode
Island, South Carolina, South Dakota, Vermont, West Virginia, and
Wyoming.
Appendix I: Instructions for SBIR Program Solicitation Preparation
1. General
Section 9(j) of the Small Business Act (15 U.S.C. 638(j))
requires ``***simplified, standardized and timely SBIR
solicitations'' and for SBIR agencies to utilize a ``uniform
process'' minimizing the regulatory burden of participation.
Therefore, the following instructions purposely depart from normal
Government solicitation formats and requirements. SBIR solicitations
must be prepared and issued as program solicitations in accordance
with the following instructions.
2. Limitation in Size of Solicitation
In the interest of meeting the requirement for simplified and
standardized solicitations, while also recognizing that the Internet
has become the main vehicle for distribution, each agency should
structure its entire SBIR solicitation to produce the least number
of pages (electronic and printed), consistent with the procurement/
assistance standard operating procedures and statutory requirements
of the participating Federal agencies.
3. Format
SBIR Program solicitations must be prepared in a simplified,
standardized, easy-to-read, easy-to-understand format including a
cover sheet, a table of contents and the following sections in the
order listed (content of each section is discussed below):
1. Program Description.
2. Definitions.
3. Proposal Preparation Instructions and Requirements.
4. Method of Selection and Evaluation Criteria.
[[Page 27734]]
5. Considerations.
6. Submission of Proposals.
7. Scientific and Technical Information Sources.
8. Submission Forms and Certifications.
9. Research Topics.
4. Cover Sheet
The cover sheet or title page of an SBIR Program solicitation
must clearly identify the solicitation as a SBIR solicitation,
identify the agency releasing the solicitation, specify date(s) on
which proposals (contract proposals/grant applications) are due
under the solicitation, and state the solicitation number or year.
Instructions for Preparation of SBIR Program Solicitation Sections 1
Through 9
1. Program Description
(a) Summarize in narrative form the invitation to submit
proposals and the objectives of the SBIR Program.
(b) Describe in narrative form the agency's SBIR Program
including a description of the three phases. Note in your
description that the solicitation is for Phase I proposals only.
(c) Describe program eligibility, as follows:
Eligibility. Each concern submitting a proposal must qualify as
a SBC for research or R&D purposes at the time of award. In
addition, the primary employment of the principal investigator must
be with the SBC at the time of award and during the conduct of the
proposed research, unless otherwise approved in writing by the
funding agreement officer. Also, for both Phase I and Phase II, the
research or R&D work must be performed in the United States.
However, based on a rare and unique circumstance, for example, a
supply or material or other item or project requirement that is not
available in the United States, agencies may allow that particular
portion of the research or R&D work to be performed or obtained in a
country outside of the United States. Approval by the funding
agreement officer for such specific condition(s) must be in writing.
(d) List name, address and telephone number of agency contacts
for general information on the SBIR Program solicitation.
2. Definitions
Whenever terms are used that are unique to the SBIR Program, a
specific SBIR solicitation or a portion of a solicitation, they will
be defined in a separate section entitled ``Definitions.'' At a
minimum, the definitions of ``SBC,'' ``socially and economically
disadvantaged SBC,'' ``women-owned SBC,'' ``funding agreement,'' and
``subcontract'' as stated in this proposed policy directive shall be
included.
3. Proposal Preparation Instructions and Requirements
The purpose of this section is to inform the applicant on what
to include in his or her proposal and to set forth limits on what
may be included. It should also provide guidance to assist
applicants in improving the quality and acceptance of proposals
particularly to firms that may not have previous Government
experience.
(a) Limitations on Length of Proposal. Include at least the
following information: (1) SBIR Phase I proposals must not exceed a
total of 25 pages, including cover page, budget, and all enclosures
or attachments, unless stated otherwise in the agency solicitation.
Pages should be of standard size (8 1/2'' x 11''; 21.6 cm x 27.9
cm) and should conform to the standard formatting instructions; in
particular, 2.5 cm margins and type no smaller than 10 point font
size.
(2) A notice that no additional attachments, appendices, or
references beyond the 25-page limitation shall be considered in
proposal evaluation (unless specifically solicited by an agency) and
that proposals in excess of the page limitation shall not be
considered for review or award.
(b) Proposal Cover Sheet. Every applicant will be required to
include at least the following information on the first page of
proposals. Items 8 and 9 are for statistical purposes only.
(1) Agency and solicitation number or year.
(2) Topic Number or Letter.
(3) Subtopic Number or Letter.
(4) Topic Area.
(5) Project Title.
(6) Name and Complete Address of Firm.
(7) Small Business Certification (by statement or checkbox) as
follows:
``The above concern certifies that it is a SBC and meets the
definition as stated in this solicitation or that it will meet that
definition at time of award.''
(8) Socially and Economically Disadvantaged SBC Certification
(by statement or checkbox) as follows:
``The above concern certifies that it __ does __ does not
qualify as a socially and economically disadvantaged SBC and meets
the definition as stated in this solicitation.''
(9) Women-owned SBC Certification (by statement or checkbox) as
follows:
``The above concern certifies that it does does not qualify as a
women-owned SBC and meets the definition as stated in this
solicitation.''
(10) An information statement regarding duplicate research as
follows:
``The applicant and/or Principal Investigator __ has __ has not
submitted proposals for essentially equivalent work under other
Federal program solicitations or __ has __ has not received other
Federal awards for essentially equivalent work.'' (Identify
proposals/awards in section III.D.10, ``Similar Proposals and
Awards'')
(11) Disclosure permission (by statement or checkbox), such as
follows, may be included at the discretion of the funding agency:
``Will you permit the Government to disclose the title and technical
abstract page of your proposed project, plus the name, address, and
telephone number of the corporate official of your concern, if your
proposal does not result in an award, to concerns that may be
interested in contacting you for further information? Yes __ No__''
(12) Signature of a company official of the proposing SBC and
that individual's typed name, title, address, telephone number, and
date of signature.
(13) Signature of Principal Investigator or Project Manager
within the proposing SBC and that individual's typed name, title,
address, telephone number, and date of signature.
(14) Legend for proprietary information as described in the
``Considerations'' section of this program solicitation if
appropriate. May also be noted by asterisks in the margins on
proposal pages.
(c) Data Collection Requirement.
(1) Each Phase II applicant will be required to provide
information for the Tech-Net Database System (http://
technet.sba.gov). Following are examples of the data to be entered
by applicants into Tech-Net:
(i) Any business concern or subsidiary established for the
commercial application of a product or service for which an SBIR
award is made.
(ii) Revenue from the sale of new products or services resulting
from the research conducted under each Phase II award;
(iii) Additional investment from any source, other than Phase I
or Phase II awards, to further the research and development
conducted under each Phase II award.
(iv) Update the information in the Tech-Net database for any
prior Phase II award received by the SBC. The SBC may apportion
sales or additional investment information relating to more than one
Phase II award among those awards, if it notes the apportionment for
each award.
(2) Each Phase II awardee is required to update the appropriate
information on the award in the Tech-Net database at the expiration
of the award period and is requested to voluntarily update the
information in the Tech-Net database annually thereafter for a
minimum period of 5 years.
(d) Abstract or Summary. Applicants will be required to include
a one-page project summary of the proposed research or R&D including
at least the following:
(1) Name and address of SBC.
(2) Name and title of principal investigator or project manager.
(3) Agency name, solicitation number, solicitation topic, and
subtopic.
(4) Title of project.
(5) Technical abstract limited to two hundred words.
(6) Summary of the anticipated results and implications of the
approach (both Phases I and II) and the potential commercial
applications of the research.
(e) Technical Content. SBIR Program solicitations must require
as a minimum the following to be included in proposals submitted
thereunder:
(1) Identification and Significance of the Problem or
Opportunity. A clear statement of the specific technical problem or
opportunity addressed.
(2) Phase I Technical Objectives. State the specific objectives
of the Phase I research and development effort, including the
technical questions it will try to answer to determine the
feasibility of the proposed approach.
(3) Phase I Work Plan. Include a detailed description of the
Phase I R/R&D plan. The plan should indicate what will be done,
where it will be done, and how the R/R&D will be carried out. Phase
I R/R&D should address the objectives and the questions cited in
D.2. above. The methods planned to achieve each objective or task
should be discussed in detail.
(4) Related R/R&D. Describe significant R/R&D that is directly
related to the proposal
[[Page 27735]]
including any conducted by the project manager/principal
investigator or by the proposing SBC. Describe how it relates to the
proposed effort, and any planned coordination with outside sources.
The applicant must persuade reviewers of his or her awareness of key
recent R/R&D conducted by others in the specific topic area.
(5) Key Personnel and Bibliography of Directly Related Work.
Identify key personnel involved in Phase I including their directly
related education, experience, and bibliographic information. Where
vitae are extensive, summaries that focus on the most relevant
experience or publications are desired and may be necessary to meet
proposal size limitation.
(6) Relationship with Future R/R&D.
(i) State the anticipated results of the proposed approach if
the project is successful (Phase I and II).
(ii) Discuss the significance of the Phase I effort in providing
a foundation for the Phase II R/R&D effort.
(7) Facilities. A detailed description, availability and
location of instrumentation and physical facilities proposed for
Phase I should be provided.
(8) Consultants. Involvement of consultants in the planning and
research stages of the project is permitted.
If such involvement is intended, it should be described in
detail.
( 9) Potential Post Applications. Briefly describe:
(i) Whether and by what means the proposed project appears to
have potential commercial application.
(ii) Whether and by what means the proposed project appears to
have potential use by the Federal Government.
(10) Similar Proposals or Awards. WARNING--While it is
permissible with proposal notification to submit identical proposals
or proposals containing a significant amount of essentially
equivalent work for consideration under numerous Federal program
solicitations, it is unlawful to enter into funding agreements
requiring essentially equivalent effort. If there is any question
concerning this, it must be disclosed to the soliciting agency or
agencies before award. If an applicant elects to submit identical
proposals or proposals containing a significant amount of
essentially equivalent work under other Federal program
solicitations, a statement must be included in each such proposal
indicating:
(i) The name and address of the agencies to which proposals were
submitted or from which awards were received.
(ii) Date of proposal submission or date of award.
(iii) Title, number, and date of solicitations under which
proposals were submitted or awards received.
(iv) The specific applicable research topics for each proposal
submitted or award received.
(v) Titles of research projects.
(vi) Name and title of principal investigator or project manager
for each proposal submitted or award received.
(11) Prior SBIR Phase II Awards. If the SBC has received more
than 15 Phase II awards in the prior 5 fiscal years, submit name of
awarding agency, date of award, funding agreement number, amount,
topic or subtopic title, follow-on agreement amount, source, and
date of commitment and current commercialization status for each
Phase II. (This required proposal information will not be counted
toward proposal pages count limitation.)
(f) Cost Breakdown/Proposed Budget. The solicitation will
require the submission of simplified cost or budget data.
4. Method of Selection and Evaluation Criteria
(a) Standard Statement. Essentially the following statement
shall be included in all SBIR Program solicitations:
``All Phase I and II proposals will be evaluated and judged on a
competitive basis. Proposals will be initially screened to determine
responsiveness. Proposals passing this initial screening will be
technically evaluated by engineers or scientists to determine the
most promising technical and scientific approaches. Each proposal
will be judged on its own merit. The Agency is under no obligation
to fund any proposal or any specific number of proposals in a given
topic. It also may elect to fund several or none of the proposed
approaches to the same topic or subtopic.''
(b) Evaluation Criteria.
(1) The Agency in its evaluation process shall develop a
standardized method that will consider as a minimum the following
factors:
(i) The technical approach and the anticipated agency and
commercial benefits that may be derived from the research.
(ii) The adequacy of the proposed effort and its relationship to
the fulfillment of requirements of the research topic or subtopics.
(iii) The soundness and technical merit of the proposed approach
and its incremental progress toward topic or subtopic solution.
(iv) Qualifications of the proposed principal/key investigators,
supporting staff, and consultants.
(v) In Phase II, evaluations of proposals require, among other
things, consideration of a proposal's commercial potential as
evidenced by:
(A) the SBC's record of commercializing SBIR or other research,
(B) the existence of second phase funding commitments from
private sector or non-SBIR funding sources,
(C) the existence of third phase follow-on commitments for the
subject of the research, and,
(D) the presence of other indicators of commercial potential of
the idea.
Phase II proposals may only be submitted by Phase I award
winners.
(2) The factors in B.1. above and other appropriate evaluation
criteria, if any, shall be specified in the ``Method of Selection''
section of SBIR Program solicitations.
(c) Peer Review. The program solicitation must indicate if the
SBIR agency contemplates that as a part of the SBIR proposal
evaluation it will use external peer review.
(d) Release of Proposal Review Information. After final award
decisions have been announced, the technical evaluations of the
applicant's proposal may be provided to the applicant. The identity
of the reviewer must not be disclosed.
5. Considerations
This section must include, as a minimum, the following
information:
(a) Awards. Indicate the estimated number and type of awards
anticipated under the particular SBIR Program solicitation in
question, including:
(i) Approximate number of Phase I awards expected to be made.
(ii) Type of funding agreement, i.e., contract, grant or
cooperative agreement.
(iii) Whether fee or profit will be allowed.
(iv) Cost basis of funding agreement, for example, firm-fixed-
price, cost reimbursement, or cost-plus-fixed fee.
(v) Information on the approximate average dollar value of
awards for Phase I and Phase II.
(b) Reports. Describe the frequency and nature of reports that
will be required under Phase I funding agreements. Interim reports
should be brief letter reports.
(c) Payment Schedule. Specify the method and frequency of
progress and final payment under Phase I and II agreements.
(d) Innovations, Inventions and Patents.
(1) Limited Rights Information and Data.
(i) Proprietary Information. Essentially the following statement
shall be included in all SBIR solicitations: ``Information contained
in unsuccessful proposals will remain the property of the applicant.
The Government may, however, retain copies of all proposals. Public
release of information in any proposal submitted will be subject to
existing statutory and regulatory requirements. If proprietary
information is provided by an applicant in a proposal, which
constitutes a trade secret, proprietary commercial or financial
information, confidential personal information or data affecting the
national security, it will be treated in confidence, to the extent
permitted by law. This information must be clearly marked by the
applicant with the term ``confidential proprietary information'' and
the following legend must appear on the title page of the proposal:
``For any purpose other than to evaluate the proposal, this data
shall not be disclosed outside the Government and shall not be
duplicated, used, or disclosed in whole or in part, provided that if
a funding agreement is awarded to this applicant as a result of or
in connection with the submission of this data, the Government shall
have the right to duplicate, use, or disclose the data to the extent
provided in the funding agreement and pursuant to applicable law.
This restriction does not limit the Government's right to use
information contained in the data if it is obtained from another
source without restriction. The data subject to this restriction are
contained on pages ____of this proposal.'' Any other legend may be
unacceptable to the Government and may constitute grounds for
removing the proposal from further consideration, without assuming
any liability for inadvertent disclosure. The Government will limit
dissemination of such information to within official channels.''
[[Page 27736]]
(ii) Alternative To Minimize Proprietary Information. Agencies
may elect to instruct applicants to:
(A) Limit proprietary information to only that absolutely
essential to their proposal.
(B) Provide proprietary information on a separate page with a
numbering system to key it to the appropriate place in the proposal.
(iii) Rights in Data Developed Under SBIR Funding Agreements. To
notify the SBC of the policy stated in Section 8(b) of this proposed
policy directive, the following statement will be included in all
SBIR Program solicitations: ``These SBIR data are furnished with
SBIR rights under Funding Agreement No. __ (and subcontract __ if
appropriate). For a period of 4 years after acceptance of all items
to be delivered under this funding agreement, the Government agrees
to use this data for Government purposes only, and it shall not be
disclosed outside the Government (including disclosure for
procurement purposes) during such period without permission of the
awardee, except that, subject to the foregoing use and disclosure
prohibitions, such data may be disclosed for use by support
contractors. After the 4-year period, the Government has a royalty-
free license to use, and to authorize others to use on its behalf,
this data for Government purposes, but is relieved of all disclosure
prohibitions and assumes no liability for unauthorized use of this
data by third parties. This Notice shall be affixed to any
reproductions of this data, in whole or in part.''
(iv) Copyrights. Include an appropriate statement concerning
copyrights and publications; for example: ``With prior written
permission of the contracting officer, the awardee normally may
copyright and publish (consistent with appropriate national security
considerations, if any) material developed with (agency name)
support. (Agency name) receives a royalty-free license for the
Federal Government and requires that each publication contain an
appropriate acknowledgement and disclaimer statement.''
(v) Patents. Include an appropriate statement concerning
patents. For example: ``Small business concerns normally may retain
the principal worldwide patent rights to any invention developed
with Government support. The Government receives a royalty-free
license for Federal Government use, reserves the right to require
the patent holder to license others in certain circumstances, and
requires that anyone exclusively licensed to sell the invention in
the United States must normally manufacture it domestically. To the
extent authorized by 35 U.S.C. 205, the Government will not make
public any information disclosing a Government-supported invention
for a 4-year period to allow the awardee a reasonable time to pursue
a patent.''
(vi) Invention Reporting. Include requirements for reporting
invention Include appropriate information concerning the reporting
of inventions, for example: ``SBIR awardees must report inventions
to the awarding agency within 2 months of the inventor's report to
the awardee. The reporting of inventions may be accomplished by
submitting paper documentation, including fax.''
Note: Some agencies provide electronic reporting of inventions
through the NIH Edison Invention Reporting System. Use of the Edison
system satisfies all invention reporting requirements mandated by
the Code of Federal Regulations, Title 37 CFR Part 401, with
particular emphasis on the Standard Patent Rights Clauses, Section
401.14. Access to the system is through a secure interactive
Internet site, http://www.iedison.gov, to ensure that all
information submitted is protected. All agencies are encouraged to
use the Edison System. In addition to fulfilling reporting
requirements, Edison notifies the user of future time sensitive
deadlines with enough lead-time to avoid the possibility of loss of
patent rights due to administrative oversight.
(e) Cost-Sharing. Include a statement essentially as follows:
``Cost-sharing is permitted for proposals under this program
solicitation; however, cost-sharing is not required. Cost-sharing
will not be an evaluation factor in consideration of your Phase I
proposal.''
(f) Profit or Fee. Include a statement on the payment of profit
or fee on awards made under the SBIR Program solicitation.
(g) Joint Ventures or Limited Partnerships. Include essentially
the following language: ``Joint ventures and limited partnerships
are eligible provided the entity created qualifies as a small
business concern as defined in this program solicitation.''
(h) Research and Analytical Work. Include essentially the
following statement:
(1) ``For Phase I a minimum of two-thirds of the research and/or
analytical effort must be performed by the proposing small business
concern unless otherwise approved in writing by the funding
agreement officer.
(2) For Phase II a minimum of one-half of the research and/or
analytical effort must be performed by the proposing small business
concern unless otherwise approved in writing by the funding
agreement officer.''
(i) Awardee Commitments. To meet the legislative requirement
that SBIR solicitations be simplified, standardized and uniform,
clauses expected to be in or required to be included in SBIR funding
agreements shall not be included in full or by reference in SBIR
Program solicitations. Rather, applicants shall be advised that they
will be required to make certain legal commitments at the time of
execution of funding agreements resulting from SBIR Program
solicitations. Essentially, the following statement shall be
included in the ``Consideration'' section of SBIR Program
solicitations: ``Upon award of a funding agreement, the awardee will
be required to make certain legal commitments through acceptance of
numerous clauses in Phase I funding agreements. The outline that
follows is illustrative of the types of clauses to which the
contractor would be committed. This list should not be understood to
represent a complete list of clauses to be included in Phase I
funding agreements, or to be specific wording of such clauses.
Copies of complete terms and conditions are available upon
request.''
(j) Summary Statements. The following are illustrative of the
type of summary statements to be included immediately following the
statement in the subparagraph I. These statements are examples only
and may vary depending upon type of funding agreement.
(1) Standards of Work. Work performed under the funding
agreement must conform to high professional standards.
(2) Inspection. Work performed under the funding agreement is
subject to Government inspection and evaluation at all times.
(3) Examination of Records. The Comptroller General (or a duly
authorized representative) shall have the right to examine any
directly pertinent records of the awardee involving transactions
related to this funding agreement.
(4) Default. The Government may terminate the funding agreement
if the contractor fails to perform the work contracted.
(5) Termination for Convenience. The funding agreement may be
terminated at any time by the Government if it deems termination to
be in its best interest, in which case the awardee will be
compensated for work performed and for reasonable termination costs.
(6) Disputes. Any dispute concerning the funding agreement that
cannot be resolved by agreement shall be decided by the contracting
officer with right of appeal.
(7) Contract Work Hours. The awardee may not require an employee
to work more than 8 hours a day or 40 hours a week unless the
employee is compensated accordingly (e.g., overtime pay).
(8) Equal Opportunity. The awardee will not discriminate against
any employee or applicant for employment because of race, color,
religion, sex, or national origin.
(9) Affirmative Action for Veterans. The awardee will not
discriminate against any employee or application for employment
because he or she is a disabled veteran or veteran of the Vietnam
era.
(10) Affirmative Action for Handicapped. The awardee will not
discriminate against any employee or applicant for employment
because he or she is physically or mentally handicapped.
(11) Officials Not To Benefit. No Government official shall
benefit personally from the SBIR funding agreement.
(12) Covenant Against Contingent Fees. No person or agency has
been employed to solicit or secure the funding agreement upon an
understanding for compensation except bonafide employees or
commercial agencies maintained by the awardee for the purpose of
securing business.
(13) Gratuities. The funding agreement may be terminated by the
Government if any gratuities have been offered to any representative
of the Government to secure the contract.
(14) Patent Infringement. The awardee shall report each notice
or claim of patent infringement based on the performance of the
funding agreement.
(15) American Made Equipment and Products. When purchasing
equipment or a product under the SBIR funding agreement, purchase
only American-made items whenever possible.
(k) Additional Information. Information pertinent to an
understanding of the
[[Page 27737]]
administration requirements of SBIR proposals and funding agreements
not included elsewhere shall be included in this section. As a
minimum, statements essentially as follows shall be included under
``Additional Information'' in SBIR Program solicitations:
(1) This program solicitation is intended for informational
purposes and reflects current planning. If there is any
inconsistency between the information contained herein and the terms
of any resulting SBIR funding agreement, the terms of the funding
agreement are controlling.
(2) Before award of an SBIR funding agreement, the Government
may request the applicant to submit certain organizational,
management, personnel, and financial information to assure
responsibility of the applicant.
(3) The Government is not responsible for any monies expended by
the applicant before award of any funding agreement.
(4) This program solicitation is not an offer by the Government
and does not obligate the Government to make any specific number of
awards. Also, awards under the SBIR Program are contingent upon the
availability of funds.
(5) The SBIR Program is not a substitute for existing
unsolicited proposal mechanisms. Unsolicited proposals shall not be
accepted under the SBIR Program in either Phase I or Phase II.
(6) If an award is made pursuant to a proposal submitted under
this SBIR Program solicitation, the contractor or grantee or party
to a cooperative agreement will be required to certify that he or
she has not previously been, nor is currently being, paid for
essentially equivalent work by any agency of the Federal Government.
6. Submission of Proposals
(a) This section shall clearly specify the closing date on which
all proposals are due to be received.
(b) This section shall specify the number of copies of the
proposal that are to be submitted.
(c) This section shall clearly set forth the complete mailing
and/or delivery address(es) where proposals are to be submitted.
(d) This section may include other instructions such as the
following:
(1) Bindings. Please do not use special bindings or covers.
Staple the pages in the upper left corner of the cover sheet of each
proposal.
(2) Packaging. All copies of a proposal should be sent in the
same package.
7. Scientific and Technical Information Sources
Wherever descriptions of research topics or subtopics include
reference to publications, information on where such publications
will normally be available shall be included in a separate section
of the solicitation entitled ``Scientific and Technical Information
Sources.''
8. Research Topics
Describe the research or R&D topics and subtopics for which
proposals are being solicited sufficiently to inform the applicant
of technical details of what is desired while leaving sufficient
flexibility in order to obtain the greatest degree of creativity and
innovation consistent with the overall objectives of the SBIR
Programs.
9. Submission Forms and Certifications
Multiple copies of proposal preparation forms necessary to the
contracting and granting process may be required. This section may
include Proposal Summary, Proposal Cover, Budget, Checklist, and
other forms the sole purpose of which is to meet the mandate of law
or regulation and simplify the submission of proposals. This section
may also include certifying forms required by legislation,
regulation or standard operating procedures, to be submitted by the
applicant to the contracting or granting agency. This would include
certifying forms such as those for the protection of human and
animal subjects.
Appendix II: Tech-Net Data Fields For Public Database
Following are the data fields pertaining to the Public Tech-Net
DataBase described in Section 11.e.1. of this proposed policy
directive.
(a) For all Agency SBIR/STTR Annual Data Submissions to the SBA
----------------------------------------------------------------------------------------------------------------
Field name Type Width Description
----------------------------------------------------------------------------------------------------------------
Program Identification..................... Numeric................... 1 SBIR/STTR Award Program
Identifier* (see below)
Company.................................... Char...................... 80 Company Name.*
Street1.................................... Char...................... 80 Street Address 1.*
Street2.................................... Char...................... 80 Street Address 2.
City....................................... Char...................... 40 City.*
State...................................... Char...................... 2 State.*
Zip........................................ Numeric................... 5 Zip.*
Zip4....................................... Numeric................... 4 Zip + 4.
Minority Code.............................. Numeric................... 1 Minority code indicator 0 =
yes 1 = no. *
Women...................................... Numeric................... 1 Women-owned company indicator
0=yes 1=no.*
Contact First.............................. Char...................... 40 Company Official contact first
name.
Contact Last............................... Char...................... 40 Contact last name.
Contact Middle Init........................ Char...................... 1 Contact middle initial.
Contact Title.............................. Char...................... 40 Contact Official title.
Contact Phone.............................. Char...................... 10 Contact Official phone.
Contact Email Address...................... Char...................... 50 Contact email address.
Employees.................................. Numeric................... 5 Number of employees.
Agency Code................................ Numeric................... 2 Awarding agency name (ex. DOD)
* (see below).
Branch..................................... Number.................... 1 Awarding DOD branch name (ex.
Navy) (see below).
Phase...................................... Numeric................... 1 Phase number 1 or 2.*
Award Year................................. Numeric................... 4 Phase award year.*
Award Amount............................... Numeric................... 10 Phase award amount.*
PI First................................... Char...................... 40 Principal Investigator First
Name.*
PI Last.................................... Char...................... 40 Principal Investigator Last
Name.*
PI Middle Init............................. Char...................... 1 Principal Investigator middle
initial.
PI Title................................... Char...................... 40 Principal Investigator Title.
PI Phone................................... Char...................... 10 Principal Investigator phone.
PI Email Address........................... Char...................... 50 Principal Investigator email
address.
Topic Code................................. Char...................... 15 Agency Solicitation Topic
Number.*
RI TYPE.................................... Numeric................... 1 Type of research
institution(see below).
RI Name.................................... Char...................... 80 Research institution.
RI Street 1................................ Char...................... 80 Research institution address.
RI Street 2................................ Char...................... 80 Research institution address.
RI City.................................... Char...................... 40 Research institution city.
RI State................................... Char...................... 2 Research institution State.
RI Zip..................................... Numeric................... 5 Research institution Zip.
RI Zip4.................................... Numeric................... 4 Research institution Zip + 4.
[[Page 27738]]
RI Official First.......................... Char...................... 40 Research institution Official
First Name.
RI Official Last........................... Char...................... 40 Research institution Official
Last Name.
RI Official Initial........................ Char...................... 1 Research institution Official
Middle Initial.
RI Official Phone.......................... Char...................... 10 ..............................
Tracking Number............................ Char...................... 20 Agency key identifier
(Internal number scheme).*
TIN/EIN.................................... Char...................... 10 Taxpayer/Employer
Identification number, *
Prefix with 1 for EIN 2 for
Social Security Number.
Contract/Grant Number...................... Char...................... 20 Agency award contract/grant
number.
Solicitation Number........................ Char...................... 20 Solicitation Number.
Solicitation Year.......................... Numeric................... 4 Year Solicitation.
of the
Title...................................... Char...................... 800 Title of research project. *
Tracking Number............................ Char...................... 20 Agency key identifier
(Internal number scheme).*
Abstract................................... Char...................... 1500 Technical abstract (500
words).
Tracking Number............................ Char...................... 20 Agency key identifier
(Internal number scheme).*
Abstract SeqNmb............................ Numeric................... 1 ..............................
Results.................................... Char...................... 1000 --Project anticipated results.
Tracking Number............................ Char...................... 20 Agency key identifier
(Internal number scheme).*
Comments................................... Char...................... 1000 --Project comments.
Tracking Number............................ Char...................... 20 Agency key identifier
(Internal number scheme).*
Industry Share Amount...................... Numeric................... 10 ATP Program Cost Share Amount.
Cost Share Tracking #...................... Char...................... 20 ATP Cost Share Tracking
Number.
----------------------------------------------------------------------------------------------------------------
Note: Those fields denoted with an asterisk are deemed mandatory
in all agency submissions. It is understood that all agencies will
not have data for each data field listed above. Each agency must
ensure that data submissions to the SBA include all of the data
fields above, even if they are empty.
------------------------------------------------------------------------
Code Research Institution Types
------------------------------------------------------------------------
1.............................. Nonprofit college or university.
2.............................. Domestic nonprofit research
organization.
3.............................. Federally funded research and
development center (FFDRC).
------------------------------------------------------------------------
(b) Codes
(1) Program Identification Code
0-STTR (Small Business Technology Transfer)
1-SBIR (Small Business Innovation Research)
2-ATP (Advanced Technology Program)
(2) Agency Codes 1 DOD (Department of Defense)
2-DOE (Department of Energy)
3-NASA (National Aeronautics and Space Administration)
4-HHS (Health and Human Services)
5-NSF (National Science Foundation)
6-DOT (Department of Transportation)
7-EPA (Environmental Protection Agency)
8-ED (Department of Education)
9-DOA (Department of Agriculture)
10-DOC (Department of Commerce)
11-NIST (National Institute of Standards and Technology)
(3) Branch Codes
1-AF (Department of the Air Force)
2-ARMY (Department of the Army)
3-BMDO (Ballistic Missile Defense Organization)
4-DARP (Defense Advanced Research Projects Agency)
5-DSWA (Defense Special Weapons Agency)
6-NAVY (Department of the Navy)
7-OSD (Office of the Secretary of Defense)
8-SOCO (Special Operations Command)
9-NIMA (National Imaging and Mapping Agency)
(4) If any new codes, please advise the Office of Technology.
[FR Doc. 01-12583 Filed 5-17-01; 8:45 am]
BILLING CODE 8010-01-P
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