how the sbir/sttr programs help grow your businesses · business goals of large, midsize and small...

1 © 2014 The Government Contracting Institute | www.GovernmentContractingInstitute.com | 443-543-5067

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How the SBIR/STTR Programs

Help Grow Your Businesses



© 2014 The Government Contracting Institute | www.GovernmentContractingInstitute.com | 443-543-5067

Jerry Alfonso Miles, Esq.

Experience Jerry Miles, a government contracts attorney with Deale Services, LLC, has experience advising and supporting the business goals of large, midsize and small government contractors and commercial companies. He regularly provides advice and instruction on teaming, joint ventures, small business contracting strategies, bid protest, Federal Acquisition Regulations compliance; and contract negotiation, dispute avoidance and cost recovery.

Education William & Mary Law University of Virginia




Course Objectives

Program Objectives SBIR/STTR Best Practices

SBIR Program SBIR/STTR Compliance/Legal

STTR Program SBIR/STTR Commercialization




SBIR/STTR Program Objectives

• Small Business Objectives: (F/R&D Funds SBCs)

– Encourage Innovation

– Enhance Technology Infrastructure

– Profitability [Government R&D (Potential) Commercialization]




SBIR/STTR Program Objectives

• SBA Coordinates & Reviews Agency-Specific R&D Needs – 11 Agencies Re-Authorized to Issue RFPs & Review Proposals

• Agriculture -Education -DHS -NASA

• Commerce -Energy -DOT -NSF

• Defense -HHS -EPA

– Defense, Technology & Healthcare Innovation

– Agencies Issue Outline of SBIR/STTR Solicitations Annually

– Competitive Awards of F/R&D Funds to SBCs




SBIR/STTR Programs

• Award Process: (Up To 9 Months) – 1. Agency RFP (No Unsolicited RFPs)

– 2. Proposal Evaluation (Agency or External Peer Review) • Technical Approach,

• SBC Qualifications

• Commercial Potential Public Benefit

– 3. Phase I Award of Contracts or Grants By Agency • Eligibility Determination Occurs At Time of Award

• Contracts: Agency Develops Requirements

• Grants: Company Develops Approach




SBIR/STTR Programs

• Funding: (112,500 Awards; $26.9B Dollars (SBA, 1983 Through FY 2009))

– SBIR= 2.5% Extramural R&D Budget for Agency’s Above $100M/year

– STTR= .3% Extramural R&D Budget for Agency’s Above $1B/year

• SBA’s FAST PROGRAM: (Fed & State Technology Partnership) – SBA Awarded Grants Program Enhancing SBC Competitiveness

– $2M Funding ($100K/Applicant) For SBC Outreach:

-SBC R&D Assistance -Proposal Development

-Tech Transfer To SBC from Us -Tech Commercialization

– Goal: EDA, SBDC, Us Help SBCs Compete In SBIR/STTR Programs




SBIR Program

• Phase I- (Typically Award $150K, 6 Months) – Assess Merit, Feasibility, Commercial Potential of F/R&D

– Assess Awardee SBC Performance of F/R&D To Date

• Phase II (Typically, NTE $1M, 2 Years) – Continue F/R&D IF ½ Above Are Satisfactory

• Phase III (Not Funded- Goal: Commercialization) – SBCs Pursue Commercialization Objectives

– SBCs May Seek Additional Non-SBIR Fed or Private Funding for R&D

– SBCs May Receive Ks to Deliver Developed Products/Services for USG




SBIR Program

• Eligibility for Phase I/II Awards- Must Be SBC: – Submit Application After Registering In Company Registry Database

(www.sbir.gov)

• Requires DUNS and/or EIN

• Assigned SBC Control ID Upon Registration

• Registration Attached to Each Solicitation

– For-Profit Organization with PPOB in US

http://www.sbir.gov/




SBIR Program

• Eligibility for Phase I/II Awards- Must Be SBC: – SBCS Only = ____<500 Employees (Including Affiliates)

– 50% US Citizen Ownership/Control (OR)

• 50% U.S. Resident Agents = OK

• 50% U.S. Citizens/Residents Own Foreign Company

• VC or Private Fund Ownership/Control OK ONLY IF Own Less Than A Majority of Stock




SBIR Program

• SBCs w/ Multiple SBIR Awards Meet Benchmarks to Win +Awards

• Transition Benchmark: Has SBC Reached One Phase II Award for Every Four Phase I Awards Over Past Five Years? If so, eligible for more Phase I Awards.

• Commercialization:

– Q1: If SBC received 16+ Phase II Awards in 10 Fiscal Years (Excluding Last Two Years)?

– Q2: If so,

1. Has SBC Received At Least $100K of Sales Per Phase II Award Received?

2. Has SBC Received A # of Patents Equal/Greater Than 15% of # of Phase II Awards?

• June 1: SBA Informs Agencies Of Ineligibility for More SBIR Awards




STTR Program

• STTR Promotes PPP Including JVs W/ SBCs & Nonprofits – Fund Risk of R&D for SBCs

– Build R&D Infrastructure of Research Institutions

• Five Agencies: (DoD, DoE, DHHS, NASA, NSF) – .3% of Extramural R&D Budget Funds STTR Program

– Review Proposals & Awards Made to SBCs

• Goal: – Cooperative F/R&D Tech Innovation By Research Institution & SBC

– Transferred From Public Sector to Private Sector

– Via Commercialization




STTR Program

• Phase I- (Typically Award $100K, 1 Months) – Assess Merit, Feasibility, Commercial Potential of F/R&D

– Assess Awardee SBC Performance of F/R&D To Date

• Phase II (Typically, $750K, 2 Years) – Continue F/R&D IF ½ Above Are Satisfactory

• Phase III (Not Funded- Goal: Commercialization) – SBCs Pursue Commercialization Objectives

– SBCs May Seek Additional Non-SBIR Funding for R&D

– SBCs May Receive Ks to Deliver Developed P/S to USG




STTR Program Eligibility

• SBC Eligibility – For-Profit Organization with PPOB in US

– SBCS Only = ____<500 Employees (Including Affiliates)

– 50% US Citizen Ownership/Control OR 50% U.S. Resident Agents

• Nonprofit Eligibility - Located in US

- Nonprofit (OR Test) - College or University

- Domestic Nonprofit Research Organizat8ion

- Federally Funded R&D Center (FFRDC)




SBIR v. STTR

• SBIR v. STTR; REQUIREMENTS: – SBC & Partnering Institution Must Est. Intellectual Property

Agreement Re:

• Allocation of R&D Responsibilities

• Rights Upon Commercialization

– Cooperative: SBC Requires SBC To Perform 40% of R&D and Single R&D Institution Must Perform 30% R&D




SBIR v. STTR

• SBIR v. STTR; REQUIREMENTS:

– FUNDING ALWAYS AWARD TO THE SMALL BUSINESS BUT:

• SBIR Permits research institution partners (Outsource 33% Phase I and 50% Phase II R&D)

• STTR Requires research institution partners (40% SBC for profit and 30% U.S. research institution nonprofit)




SBIR/STTR Compliance

• Companies Certify Meeting Program Requirements – 1. At Time of Registration

– 2. At Time of Award

– 3. During Award Lifecycle

• No Affiliation: Meet Ownership, Control, SBC Eligibility - Ownership -Identity of Interest

- Contractual Ties -Newly Organized Concern

- Common Management -Ostensible Subcontractor

- Licensing Agreement -Totality of Circumstances




SBIR/STTR Compliance

• Tech-Net Database: Assists Agencies In Tracking & Reporting Compliance – Company Registration Database

– Award Information Database

– Commercialization Input (Contractors Assist W/ Updating)

– Annual Reporting Database

• Penalties: (SBIR/STTR Accounting Systems Subject to Audit) – 1. Agency Fraud, Waste, Abuse Hotlines on Websites

– 2. Reports to Agency OIG and/or Suspension/Debarment Official




SBIR/STTR Legal Considerations

• Small Business Innovation Development Act of 1982 – Creates SBIR Program

• Small Business R&D Enhancement Act of 2000 – Extends the SBIR Program Created Above

– Re-Authorized Through 2017

• Small Business Tech Transfer Act of 1992 – Requires .3% of $1B Budget Of 5 Agencies To Be Set Aside

• Small Business Tech Transfer Program Re-Auth Act of 2001 – Extends the STTR Program Created Above

– Re-Authorized Through 2017





• Subcontracting:

– SBIR:

• Phase I: Prime SBC Must Perform 2/3rds of R&D or Analytics

• Phase II: Prime SBC Must Perform ½ of R&D

– STTR:

• SBC Perform 40% of R&D; Single Research Institution Performs 30% of R&D

• SBC or Research Institution Can Subcontract Less Than 30% of Work To 3rd Party.





• Intellectual Property:

– SBIR: SBC owns, with full right and title, data developed under SBIR Program

– STTR: SBC signs IP agreement, prior to award, identifying rights in data.

– Generally:

• Agency’s have limited rights to review data for evaluation

• Some may seek to negotiate rights to expand upon the research and/or technology only after award of SBIR/STTR contract/grant

• BUT: Agencies cannot disclose data for up to 4 years after delivery of the last deliverable under Phase I, II, or II awards.




SBIR/STTR Commercialization

• SBIR Commercialization – SBIRs Must Create Commercialization Program for Phase III

• Includes: Partnerships, Prime Contractor Mentoring, Transition Assistance

• 10% of agency funds must be allocated to assisting with commercialization

– Commercialization Plans Include Assessment of Customers, Competition, Market, IP/Patent Protection, Financing & Assistance/Mentoring




Questions?

Jerry Alfonso Miles, Esq.

[email protected]

One Research Court, Suite 450 Rockville, Maryland, 20850

O (240) 403 2652 M (240) 328 0514

how the sbir/sttr programs help grow your businesses · business goals of large, midsize and small...

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