Small Business Research Initiative - Pre-commercial procurement, Pat Doyle, Invest NI

SBRI – Pre-Commercial Procurement

Pre-Commercial Procurementwww.investni.com

SBRI – What Is It?• An innovative approach to government

procurement• Programme coordinated through Technology

Strategy Board (TSB) by Invest NI/DETI• Demand-driven by a defined challenge• Fast-track simplified process, particularly

suited to SMEs• Public sector body acts as the “lead customer”


SBRI – What Is It?

Procurement not grant• Develop and eventually procure a novel solution to an existing problem• Encourage creation of solutions which meet policy objectives

Development Contracts• 100% funded R&D• Deliverable based rather than hours worked or costs incurred• Operates under procurement rules rather than State Aid rules

• IP rests with Company• Certain usage rights with Public Sector – companies encouraged to

exploit IP


SBRI – What Does It Do?

• Utilises the power of public sector procurement (DHSSPS budget: £4.7bn p.a.)

• Delivers major improvements in meeting operational or policy objectives of public sector

• Enables better quality & cost effective solutions for the public sector by stimulating the creation of new products & services


SBRI – Priority given by Government

• 6 of the larger UK gov’t departments targets– £100m in FY13/14– £200m in FY14/15

• NI Finance Minister very keen to utilise SBRI to improve efficiency of NI public sector procurement


SBRI – How Does It Work?

• TSB & government departments create a competitive call for solutions to identified needs in the public sector

• Phased approach– Phase 1 – Feasibility – determine scientific, technical &

commercial feasibility• 2 - 9mths & £20k to £100k

– Results of phase 1 will largely determine entry to phase 2– Phase 2 – Prototyping – bring product/service to the point

of commercialisation• May be up to 2 years and £1M (depends on challenge)


SBRI – How Does It Work?


1. Open competition supported by TSB 2. Competition opens

3. Applicants submit proposals

4. Most promising proposals selected

5. Phase 1 demonstration of feasibility – typically lasting up to 6 months

& worth < £100k

6. Assessment of projects for phase 2 funding

7. Phase 2 prototype development – typically lasting up to 2 years, worth £ 250k - £1m

8. Applicants commercialise successful outcomes

9. Applicants free to further develop & exploit IP

Role of Technology Strategy Board

• SBRI Champion• Process Owner

• Documents & Templates• Keeping it simple for both Public & Private Sectors

• Application Support• Problem definition and unpacking• Outreach• Competition management• Increasing support to Devolved Administrations


SBRI – Application Process• Competition widely advertised through TSB channels

• Any size of business is eligible

• Other organisations eligible – need to demonstrate route to market

• Project risk is managed through the Phased process

• Applications assessed by Public Sector Body on Fair Market Value

• All contract values quoted include VAT

• The contract terms and conditions are not negotiable

• Single applicant (Any partners should be shown as subcontractors)


SBRI – Benefits

• If Government uses procurement innovatively it will...

• encourage new innovative solutions from businesses• secure better value for money• boost the growth of NI SMEs • stimulate exports• provide winning companies ‘first-mover’ advantage• Grow the local economy


SBRI – Company Benefits

• Develops prototype in collaboration with a “lead customer”

• Receives a contract not a grant• 100% funded• Retains IP• Can claim R&D Tax Credits (large co.

scheme)


SBRI – Progress To DateNITB Apps• Need to make visitor information more accessible via

mobile devices to help tourists ‘explore more’• Opportunity to exploit public sector dataset• £90k budget (Maximum award of £30k)• Seeking 3-7 successful projects

• 72 bids (22 from NI)• 4 Winners, 2 from NI, MyTourTalk less than 1 year old• 9 public sector data sets being used by the winners• Total cost £81k – no ongoing cost to government• https://vimeo.com/80809219


https://vimeo.com/80809219

SBRI – Retrofit for the Future

• To Retrofit UK social housing stock in order to meet future targets in reduction of CO2 emissions and energy use

• NI Participation through Eco-Energy (NI) & Grove Housing Association – supply chain opportunities


SBRI – HCAI – Dept of Health

• NHS spends up to £1B dealing with HCAI• ~300,000 patients

• Hand cleaning device• Machine which scans non-thermal plasma over hands• Kills pathogens, kinder on the skin

• Funded for two phases• £100,000 + £750,000

• ‘SBRI funding has enabled us to raise a second round of Angel funding....we have grown from 3 to 6 full time employees plus 20

associates...by 2014 we plan to have a 100 employees ’STEVE MORRIS, CREO MEDICAL


SBRI – Other NI Participation

• Screening Drug Drivers 29 Applications – 2 from NI

(Home Office Challenge) 3 Contracts awarded – 1 from NI -

Randox

• Have I got views for you 50 applications – 1 from NI

(Home Office Challenge)6 Contracts awarded – 1 from NI -

Repknight

• Better Health Outcomes 5 companies from NI have applied


SBRI – Points of Contact• Pat Doyle

Innovative Procurement Executive – Invest NITel: 028 9069 [email protected]

• Eoin McFaddenInnovative Procurement Executive – DETITel: 028 9052 [email protected]

• Rick Bartlett Innovative Procurement Executive – CPD Tel: 028 9057 6814 [email protected]

• https://www.innovateuk.org/government-contracts-sbri


mailto:[email protected]




Small Business Research Initiative - Pre-commercial procurement, Pat Doyle, Invest NI

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