A Winning SBIR Strategy: Connect to the Source NASA’s SBIR and STTR Programs

A Winning SBIR Strategy: Connect to the A Winning SBIR Strategy: Connect to the SourceSource

NASA’s SBIR and STTR ProgramsNASA’s SBIR and STTR Programs

U S C E N G I N E E R I N G T E C H N O L O G Y T R A N S F E R C E N T E R

A N A S A R E G I O N A L T E C H N O L O G Y T R A N S F E R C E N T E R

h t t p : / / w w w . u s c . e d u / g o / t t c

Presented by:Martin Zeller

Date:May 25, 2005

NASA’s Technology Transfer NetworkNASA’s Technology Transfer Network

Mid-ContinentRTTC

SoutheastRTTC

MidwestRTTC

NortheastRTTC

Mid-AtlanticRTTC

Far WestRTTC

NASA Technology Transfer NASA Technology Transfer Mechanisms Mechanisms

• Licensing of NASA-owned intellectual Licensing of NASA-owned intellectual propertyproperty

• Collaborative arrangements and Collaborative arrangements and partnershipspartnerships

• Space Act AgreementsSpace Act Agreements

• Reimbursable or non-Reimbursable or non-reimbursablereimbursable

• Joint Sponsored Research Joint Sponsored Research AgreementsAgreements

• Cooperative agreements and Cooperative agreements and grantsgrants

• MOU/MOAMOU/MOA

• SBIR/STTRSBIR/STTR

Objectives of the SBIR ProgramObjectives of the SBIR Program

• Stimulate technological innovation

• Use small business to meet federal R&D needs

• Increase private sector commercialization derived from federal R&D

• Encourage participation by disadvantaged and minority persons in technological innovation

• SBIR is a federal set-aside funding program for small businesses

• Eleven federal agencies solicit proposals for innovative research in areas of interest to the agencies

• 2.5 % of agency extramural R&D budget

• SBIR funds innovative, high-risk, early-stage technology R&D projects that have potential for commercial success

• Eligible small businesses compete for SBIR awards

• Over $2 billion in funding is available this year

SBIR in a NutshellSBIR in a Nutshell

• STTR is the Small Business Technology STTR is the Small Business Technology Transfer ProgramTransfer Program

• Five federal agencies participateFive federal agencies participate

• Set-aside is only 0.3% of the agencies’ Set-aside is only 0.3% of the agencies’ extramural R&D budgets (compared to 2.5% extramural R&D budgets (compared to 2.5% for SBIR)for SBIR)

• A small business must form a partnership A small business must form a partnership with a nonprofit research institution to be with a nonprofit research institution to be funded under STTRfunded under STTR

• The small business is the prime contractorThe small business is the prime contractor

• Goal is to facilitate commercialization of technology developed by a nonprofit research institution through the entrepreneurship of a small business

STTR: Companion Program to SBIRSTTR: Companion Program to SBIR

Total of all agencies is more Total of all agencies is more than $2 Billion!than $2 Billion!

DoDDoD $1.08 Billion $1.08 Billion (FY05)--(FY05)--SBIR/STTRSBIR/STTR

DHHS/NIHDHHS/NIH $631 Million $631 Million (FY04)--(FY04)--SSBIR/STTRBIR/STTR

NASANASA $120 Million $120 Million (FY05)--(FY05)--SBIR/STTRSBIR/STTR

DoEDoE $114 Million $114 Million (FY05)--(FY05)--SBIR/STTRSBIR/STTR

NSFNSF $103.6 Million (FY03)--$103.6 Million (FY03)--SBIR/STTRSBIR/STTR

HSARPAHSARPA $23 Million (FY05)$23 Million (FY05)

USDAUSDA $18.3 Million (FY05)$18.3 Million (FY05)

DoEDDoED $8.7 Million (FY02)$8.7 Million (FY02)

DoCDoC $8.5 Million (FY04) $8.5 Million (FY04)

EPAEPA $6 Million (FY05)$6 Million (FY05)

DoTDoT $5.3 Million (FY03) $5.3 Million (FY03)

Agency SBIR/STTR Annual Funding Agency SBIR/STTR Annual Funding LevelsLevels

Who Participates in SBIRWho Participates in SBIR

*FY01 Phase I DOD Award Winners

Firm Size Distribution*

Phase I: Feasibility Study Phase I: Feasibility Study

• SBIR - $70,000 for 6 monthsSBIR - $70,000 for 6 months

• STTR - $100,000 for 12 monthsSTTR - $100,000 for 12 months

Phase II: Prototype Development Phase II: Prototype Development

• SBIR and STTR - $600,000 for 24 monthsSBIR and STTR - $600,000 for 24 months

Phase III: Commercialization Phase III: Commercialization

• No SBIR funds available for Phase IIINo SBIR funds available for Phase III

• Small business procures other NASA program Small business procures other NASA program development funds, product orders, intellectual development funds, product orders, intellectual property licenses, commercial partners, etc.property licenses, commercial partners, etc.

The Three Phases of NASA SBIR/STTRThe Three Phases of NASA SBIR/STTR

• A source of funds to conduct research and A source of funds to conduct research and development that a small firm might not development that a small firm might not otherwise be able to affordotherwise be able to afford

• Small business incurs no debt, loss of equity or Small business incurs no debt, loss of equity or control of the companycontrol of the company

• Best utilized by companies that integrate SBIR Best utilized by companies that integrate SBIR funds into a strategic plan for growth through funds into a strategic plan for growth through new product or service developmentnew product or service development

• Tacit endorsement by the federal government Tacit endorsement by the federal government of the small firm’s research qualifications (looks of the small firm’s research qualifications (looks good on the resume)good on the resume)

• A chance to become a supplier of specialized A chance to become a supplier of specialized products or services to the private sector or products or services to the private sector or back to a government agency (technology back to a government agency (technology infusion)infusion)

• An opportunity to grow the small business An opportunity to grow the small business through strategic alliances with larger corporate through strategic alliances with larger corporate partnerspartners

What’s in it for the Small Business?What’s in it for the Small Business?

Before You Dive In to NASA SBIRBefore You Dive In to NASA SBIR

• NASA accepts phase I proposals only during one ten week period each year, usually from July to September

• Success is not just about getting phase I and phase II funding

• To succeed in SBIR requires following through all the way to commercialization (phase III)

• A small business must have a “commercialization mindset” going into phase I to succeed ultimately in SBIR

• Do not propose SBIR efforts that distract you from your company’s strategic goals

• Win a phase I awardWin a phase I award

• This is critical since companies can not This is critical since companies can not bypass phase I and jump in at phase IIbypass phase I and jump in at phase II

The First Goal of Any SBIR The First Goal of Any SBIR ProposerProposer

• Review past solicitations Review past solicitations

• Get to know your customerGet to know your customer

• Establish a relationship with relevant Establish a relationship with relevant NASA sub-topic manager(s)NASA sub-topic manager(s)

• Get feedback on whether your proposed Get feedback on whether your proposed approach meets a NASA needapproach meets a NASA need

• Caveat: NASA sub-topic managers are Caveat: NASA sub-topic managers are not identified in the SBIR/STTR solicitationnot identified in the SBIR/STTR solicitation

• Blackout period when solicitation is Blackout period when solicitation is openopen

Understand NASA SBIR Technology Understand NASA SBIR Technology NeedsNeeds

• Only one solicitation per yearOnly one solicitation per year

• Projects are funded by contracts, not Projects are funded by contracts, not grantsgrants

• No fast track optionNo fast track option

• Phase I SBIR win rate is about 1:8Phase I SBIR win rate is about 1:8

• Phase I STTR win rate is about 1:4Phase I STTR win rate is about 1:4

NASA Quirks and NuancesNASA Quirks and Nuances

• Read and follow the solicitation carefully Read and follow the solicitation carefully

• Know your customerKnow your customer

• Know the evaluation criteriaKnow the evaluation criteria

• Get help from other resourcesGet help from other resources

Prepare High Quality SBIR ProposalsPrepare High Quality SBIR Proposals

Read and Follow the Solicitation CarefullyRead and Follow the Solicitation Carefully• Get it from Get it from http://sbir.nasa.govhttp://sbir.nasa.gov

• The solicitation provides all necessary forms The solicitation provides all necessary forms and instructions for preparation, assembly and and instructions for preparation, assembly and submission of a proposalsubmission of a proposal

• Resist the urge to organize your proposal in Resist the urge to organize your proposal in a free-form, stream-of-consciousness fashiona free-form, stream-of-consciousness fashion

• Use the section numbering scheme Use the section numbering scheme prescribed in the solicitationprescribed in the solicitation

• The solicitation tells precisely what to cover The solicitation tells precisely what to cover in each section; so cover it. If a section is not in each section; so cover it. If a section is not applicable, say so.applicable, say so.

• Submit on time and meet administrative Submit on time and meet administrative screening requirementsscreening requirements


Know Your CustomerKnow Your Customer

• Use last year’s solicitation to identify topics Use last year’s solicitation to identify topics to which you believe you can be responsiveto which you believe you can be responsive

• Use RTTC, NASA SBIR Manager to identify Use RTTC, NASA SBIR Manager to identify NASA authors of relevant SBIR topics (NASA NASA authors of relevant SBIR topics (NASA calls them calls them Sub-Topic ManagersSub-Topic Managers))

• Establish a relationship with the Establish a relationship with the Sub-Topic Sub-Topic Manager. Manager. He or she may be your customer if He or she may be your customer if you win an award.you win an award.

• These people can help you understand These people can help you understand NASA’s real, sometimes unstated, needs and NASA’s real, sometimes unstated, needs and priorities.priorities.

• Tailor your SBIR proposal accordinglyTailor your SBIR proposal accordingly

• Timing is important: Timing is important: Sub-Topic ManagersSub-Topic Managers are are not available to advise you during the ten-not available to advise you during the ten-week period each year when NASA is week period each year when NASA is accepting proposals. Plan ahead.accepting proposals. Plan ahead.


Know The Evaluation CriteriaKnow The Evaluation Criteria

•The solicitation tells you what the evaluation The solicitation tells you what the evaluation criteria arecriteria are

• For phase I proposals:For phase I proposals:

• Scientific/technical merit and feasibility Scientific/technical merit and feasibility (50%)(50%)

• Experience, qualifications and facilities Experience, qualifications and facilities (25%)(25%)

• Effectiveness of proposed work plan (25%)Effectiveness of proposed work plan (25%)

• Commercial merit and feasibility Commercial merit and feasibility (qualitative score, used for breaking ties)(qualitative score, used for breaking ties)

• Increase the odds of winning by making your Increase the odds of winning by making your proposal shine in each of these areasproposal shine in each of these areas

• Look outside the company to acquire Look outside the company to acquire necessary resources to address deficienciesnecessary resources to address deficiencies


Know and Use SBIR Program ResourcesKnow and Use SBIR Program Resources

• NASA Far West RTTCNASA Far West RTTC

• NASA SBIR ManagersNASA SBIR Managers

• NASA SBIR website (NASA SBIR website (http://sbir.nasa.govhttp://sbir.nasa.gov))NASA SBIR SolicitationNASA SBIR Solicitation

Participation guideParticipation guidePrevious Award WinnersPrevious Award WinnersSuccessesSuccessesKey NASA ContactsKey NASA Contacts

• NASA SBIR Support contractorNASA SBIR Support contractorREI SystemsREI Systems


NASA Far West Regional Technology NASA Far West Regional Technology Transfer CenterTransfer Center

• http://www.usc.edu/go/ttc

• 213-743-2353213-743-2353

• 800-642-2872800-642-2872

• [email protected] [email protected]

For Further Information . . .For Further Information . . .

NASA SBIR Websitehttp://sbir.nasa.gov

For Further Information . . .For Further Information . . .

A Winning SBIR Strategy: Connect to the Source NASA’s SBIR and STTR Programs

Documents

Transcript of A Winning SBIR Strategy: Connect to the Source NASA’s SBIR and STTR Programs