1. 2012 SADBOC Government
Procurement Fair
April 25, 2012
SBIR/STTR Basics
Becky Aistrup
SBIR/STTR Program Director
Minnesota Science & Technology Authority
www.PositivelyMinnesota.com/SciTech
www.mnscienceandtechnologyauthority.org
becky.aistrup@state.mn.us
(651) 259-7634

2. Important Info
The SBIR/STTR programs were reauthorized by Congress & signed by the
President Dec. 2011. The SBA is in the process of recommending how these
changes will be implemented by the agencies, so exact mechanisms &
implementation dates are pending. This presentation is the CURRENT
program, but will be changing during 2012 in these key ways:
• increasing the SBIR allocation from 2.5 percent to 3.2 percent over several years,
• increasing the STTR allocation from .3 percent to .45 percent over five years,
• allowing VC, hedge fund and private equity funded companies to participate to 25
percent for NIH, DOE, and NSF, and 15 percent for other agencies,
• raising the award levels, allowing for annual inflation adjustments, limiting jumbo
awards,
• increasing small business collaborations with federal laboratories,
• shortening the time for final decisions and the amount of time between decision
and release of funds
• increasing oversight to reduce fraud and abuse, and
• allowing the agencies to use 3 percent of SBIR funds to administer the SBIR
program, increase oversight, and provide outreach and application assistance to
address shortcomings in the low participation of women, minorities and states
with few awards.
PLEASE CHECK RULES IN EFFECT AT THE TIME OF PROPOSAL SUBMISSION!!
CALL OUR OFFICES IF YOU HAVE QUESTIONS (Becky Aistrup 651-259-7634)

3. SBIR/STTR Program Descriptions
• SBIR (Small Business Innovation Research):
• 2.6% set-aside of extramural research budget
for small businesses to participate in federal
R&D
• 11 federal agencies with R&D >$100 million
• STTR (Small Business Technology Transfer):
• 0.35% set-aside program to facilitate
cooperative R&D between small businesses and
non-profit research institutions
• 5 federal agencies with R&D >$1 billion
• Both focus on commercializable technology,
not “basic” research

4. Who qualifies for funding?**
• Small Business (<500 employees) located in U.S.
• Established for-profit
• R&D must be performed in the U.S.
• Company-controlled research facilities
– Access to special facilities is allowed
• At least 51% U.S. owned & independently
operated
– Firms more than 50% owned by large companies, VCs,
other institutions ARE NOT eligible
– …unless the majority (single) entity meets the definition of
a small business (<500 employees, ownership)
**Rules changing: read current instructions carefully!

5. Why SBIR/STTR as a funding
source?
• A source of high risk seed funding
• Will provide funding when you’re pre-revenue
• “Goes where other funding sources fear to
tread!”—even family!

6. Why Small Companies Should
Participate
• No pay-back requirement!
• No equity lost!
• Visibility and credibility
• Seed money for high risk R&D projects that may
attract strategic partners or future investment
• Small and isolated companies compete on equal
footing
• Opportunity to establish a sole-source position with
federal government
• No penalty for failure, other than time invested
Plus…

7. Liberal Patent & Data Rights
• Only in SBIR/STTR
• Recipient can apply for worldwide patents
• Federal government gets royalty free license
if:
– Nat’l emergency, failure to commercialize in 4 yrs,
fail to mfg. in U.S.
• Can still participate if you have a patent on
the basic technology
• PLUS data rights extend to 4 years after
completing the contract/grant (5 yrs. for DoD)

8. Three Phase Program
SBIR STTR
Phase I 6 months 12 months
(Proof of Concept) Up to $150K Up to $100K
Phase II 2 years 2 years
(R&D→Prototype) Up to $1MM Up to $750K
Phase III Requires the use of non-SBIR and STTR funds
(Commercialization)
*Funding limits vary in some agencies

9. Comparing SBIR & STTR Programs
SBIR STTR
Firm eligibility U.S., for-profit, <500 employees including affiliates
Collaboration May subcontract Must collaborate with
w/research university/nonprofit
institution research institution
PI (Principal Must be >50% time May be employed by firm or
Investigator) employed by firm research institution
Work breakdown Firm 2/3 or more of Firm must perform 40% or
work in Phase I more of work and research
Firm 1/2 or more of institution >30% of work
work in Phase II (Phase I and Phase II)
*Applies at the time of award and for the duration of the project

10. Principal Investigator (PI)
The PI is the single point of contact for the research project and
is responsible to ensure that work is accomplished according to
contract agreement.
Eligibility:
SBIR STTR
PI MUST be primarily employed PI may be primarily employed by
(>50% of time) by small firm small firm or research institution
PI must spend “considerable” time on the SBIR/STTR project
PI must be well-credentialed and on leading edge of discipline
PI is NOT required to have a PhD or MD, but must have expertise to
oversee the complete project scientifically and technically
PI eligibility determined at the time of the award & for project duration

11. Participating Agencies & Funding
Mechanisms
Agency * SBIR funding STTR funding
DoD $1.23 Billion $141 Million
HHS (NIH, CDC, FDA) $600 Million $72 Million
Energy (DOE) $138 Million $17 Million
NASA $113.4 Million $13.6 Million
NSF $97 Million $13 Million
Homeland Security (DHS) $20.5 Million NA
Agriculture (USDA) $19 Million NA
Education $9.9 Million NA
Transportation $8 Million NA
Commerce (NIST, NOAA) $8 Million NA
EPA $5 Million NA
* Grants Contracts Both Grants & Contracts
$2.5 Billion in FY09

12. Typical* SBIR/STTR Calendar
Agency Solicitation Release Date → Submission Deadline
DoD SBIR: Nov → Jan, Apr → Jun, Jul → Sep
STTR: Jan → Mar, Jul → Sep
HHS (NIH, CDC, FDA) Contracts: Aug → Nov
Non-AIDS Grants: Jan → Apr & Aug & Dec
AIDS Grants: Jan → May & Sep & Jan
Energy (DOE) Sep → Nov
NASA Jul → Sep
NSF Mar →Jun, Aug → Dec
DHS S&T Directorate: May → June, Nov → Jan
DNDO: Mar → May
Agriculture (USDA) Jun → Sep
Education (DOEd) IES: Dec → June
NIDRR: Jan → Mar
DOT Dates vary: Spring (Apr → June), Fall (Oct → Dec)
Commerce (NIST, NOAA) NIST & NOAA: Oct → Jan
EPA Mar → May
* Subject to change—Check Agency websites or www.zyn.com/sbir

13. Grants vs. Contracts
• SBIR/STTR programs that award GRANTS:
– Rarely the Final Customer
– Will not buy your product/process/software or
your intellectual property
– They do want to see you commercialize your
research, so Phase III is still important
– Fund proposer-initiated topics, but must be within
the mission of the agency
– Tend to be more focused on qualifications of the PI
• Programs that award CONTRACTS:
– Will specify agency needs and request solutions
– Will often be a Final Customer—you could become
a sole source supplier!
– Fund only agency-initiated topics

14. Agency Differences:
Exceptions are the Rule!
• Many differences among agencies:
– Funding levels
– Topic areas
– Number and timing of solicitations
– Proposal preparation instructions
– Submission process
– Type of award Read
– Review process solicitations
– Odds of receiving funding carefully!!
– Commercialization assistance
– Gap & FastTrack funding
– # of proposals a firm can submit

15. Duplicate submissions?
• Applications may be submitted to
different agencies for similar work
– Multiple submissions and previous
awards must be revealed
• Awards may not be accepted from
different agencies for duplicative
projects

16. Phase I Process & Timing
• Agencies describe R&D topics
Solicitation
in solicitations.
Topics
~6-9 months gap
• Firms prepare proposals.
Proposal Unsolicited proposals are not
Submission accepted (some exceptions).
• Agencies evaluate on technical
Evaluation merit, firm’s qualifications,
commercial potential & societal
impact.
Phase I Award • Agencies make Phase I awards.

17. Phase II Process & Timing
• Only Phase I winners may apply
• Some agencies (DoD, DHS, DOT, EPA, NIH
Contracts) allow Phase II submission only
by invitation.
• Submission timing/deadlines vary –talk to
your funding agency
• 4 to 18 month gap between Phase II
submission & award
– Some agencies have options, early decision
programs, FastTrack programs
~5 years from Phase I to Phase III Commercialization

18. Ask before deciding to participate
• Does winning enhance your
corporate goals?
• Do you possess the required
technical competence/Do you
have access to an appropriate PI?
• Can you gain access to necessary resources?
• What agency need/opportunity will you
address?
• Do the program’s timing and gaps work within
your company’s plans?

19. Unacceptable SBIR Objectives*
• Proposed efforts directed toward systems studies
• Market research
• Commercial development of existing products or
proven concepts
• Straightforward engineering design for packaging
• Laboratory evaluations
• Incremental product or process improvements
• Evolutionary optimization of existing products
• Modifications to broaden the scope of an existing
product or application
*From NSF’s FY 2010 SBIR Phase I Solicitation

20. Proposal Evaluation Criteria
• Fit with agency mission
• Technical quality & innovation
• Credibility of the PI & research team
• Commercial potential
• Appropriate budget
• Suitability/availability of resources

21. Your Odds of Winning
• Phase I SBIR Proposal: About 1 in 8/9
• Phase I STTR Proposal: About 1 in 5
• Phase II Proposal: About 40%-70%
– varies by agency
• ½ of Phase I proposals go to
companies who never won before.

22. Improve your odds!
• About 1:3 properly prepared proposals win vs. 1:9 overall.
• Up to 40% of proposals submitted are noncompliant!

23. Improve your odds!
Problem Solution
• Noncompliance with • Read solicitation carefully &
solicitation prepare a checklist
• Unaware of public research in • Have leading edge PI; do
the field literature & online research
• Lack of systematic approach to
the problem • Know how to design an
experiment & project plan
• Lack of necessary “state of the
art” expertise • Use subcontracting &
• Proposal not specifically consultants to augment
focused on agency problem • Know your Customer!!

24. Typical Award Winner Profile
• Proposed solution meets agency need
• Submitted 2+ proposals before winning
• Understands current state-of-the-art and can
relate it to their innovation
• Adequately communicates path to market
• Adequate qualifications & experience for
research & commercialization
• Adequate support staff and equipment
• Provides a defensible budget
• Don’t get discouraged!

25. Finding Agency Solicitations
• Central link to all agencies: www.zyn.com/sbir

26. Finding Agency Solicitations

27. Finding Agency Solicitations

28. Think outside the box

29. Don’t Judge Agency by Name
Searched Zyn Closed Topics for “renewable energy”:
Results found in NOAA/DOC, DOE, DoD, EPA,
NSF USDA
NOAA
DOE
DoD

30. Don’t Judge Agency by Name
DoD
EPA
NSF
USDA

31. Find a Topic
http://www.grants.gov/applicants/find_grant_opportunities.jsp
Multiple browsing &
searching options
Register for Opportunity
Notifications

32. Find a Topic
http://www.pnl.gov/edo/opportunities/sbir.stm
Cross-agency alerting service

33. Getting Started:
Register for Electronic Submission
1. Obtain a DUNS number FIRST
Dun & Bradstreet: 1-866-705-5711 or
http://fedgov.dnb.com/webform/displayHomePage.do
2. Register in Central Contractor Registry for a
CAGE code:
CCR site: http://www.ccr.gov
Keep a copy of all usernames/passwords!

34. Register for Electronic Submission
For NIH, USDA and DOE, MUST register your
organization on www.grants.gov
Guide & Checklist
Tutorial

35. DoD Registration & Submission
www.dodsbir.net
Register here

36. DHS Registration & Submission
www.sbir.dhs.gov
Register here

37. NASA Registration & Submission
www.sbir.nasa.gov
Register here

38. NSF Registration & Submission
NSF’s FastLane site: ww.fastlane.nsf.gov
Register here

39. DOEd Registration & Submission
e-Grants portal: http://e-grants.ed.gov
Register here

40. Submitting to other agencies
• DOC (NIST & NOAA)
– Requires hard copy submission (see
solicitation for specifics)
• DOT
– Requires electronic submission but no
prior registration; web address is given
in solicitation
• EPA
– Requires hard copy submission (see
solicitation for specifics)

41. Useful Links
• http://www.zyn.com/sbir/ (SBIR Gateway)
• http://www.pnl.gov/edo/opportunities/sbir.stm
(SBIR Alert)
• http://www.ccr.gov (CCR registration site)
• http://www.grants.gov (Grants.gov site)
• http://center.ncet2.org/ (NCET2 courses and
resources site)
• http://www.sbir.gov/ (Official SBIR portal)

42. MN S&TA SBIR/STTR Services
• Regular email updates on SBIR/STTR
• Educational workshops
• Assistance with agency & topic selection
• Agency-specific guidance
• Proposal writing tips/recommendations
• Pre-submission proposal reviews
• Debriefing review & recommendations
• Referral/introduction to other resources
• Encouragement & Comedic Relief!

43. Contact information:
Becky Aistrup
MN SBIR/STTR Program Director
651.259.7634
becky.aistrup@state.mn.us