A Winning SBIR Strategy: Connect to the Source
NASA’s SBIR and STTR Programs
Presented by:
Martin Zeller
Date:
May 25, 2005
U S C
A
E N G I N E E R I N G
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
T E C H N O L O G Y
T R A N S F E R
http://www.usc.edu/go/ttc
C E N T E R
C E N T E R
NASA’s Technology Transfer Network
Northeast
RTTC
Midwest
RTTC
MidAtlantic
RTTC
Far West
RTTC
Mid-Continent
RTTC
Southeast
RTTC
NASA Technology Transfer Mechanisms
• Licensing of NASA-owned intellectual
property
• Collaborative arrangements and
partnerships
• Space Act Agreements
• Reimbursable or non-reimbursable
• Joint Sponsored Research Agreements
• Cooperative agreements and grants
• MOU/MOA
• SBIR/STTR
Objectives 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 in a Nutshell
• 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
STTR: Companion Program to SBIR
• STTR is the Small Business Technology Transfer
Program
• Five federal agencies participate
• Set-aside is only 0.3% of the agencies’ extramural R&D
budgets (compared to 2.5% for SBIR)
• A small business must form a partnership with a
nonprofit research institution to be funded under STTR
• The 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
Agency SBIR/STTR Annual Funding Levels
Total of all agencies is more than
$2 Billion!
DoD
$1.08 Billion (FY05)--SBIR/STTR
DHHS/NIH
$631 Million (FY04)--SBIR/STTR
NASA
$120 Million (FY05)--SBIR/STTR
DoE
$114 Million (FY05)--SBIR/STTR
NSF
$103.6 Million (FY03)--SBIR/STTR
HSARPA
$23 Million (FY05)
USDA
$18.3 Million (FY05)
DoED
$8.7 Million (FY02)
DoC
$8.5 Million (FY04)
EPA
$6 Million (FY05)
DoT
$5.3 Million (FY03)
Who Participates in SBIR
Firm Size Distribution*
*FY01 Phase I DOD Award
Winners
The Three Phases of NASA SBIR/STTR
Phase I: Feasibility Study
• SBIR - $70,000 for 6 months
• STTR - $100,000 for 12 months
Phase II: Prototype Development
• SBIR and STTR - $600,000 for 24 months
Phase III: Commercialization
• No SBIR funds available for Phase III
• Small business procures other NASA program development
funds, product orders, intellectual property licenses,
commercial partners, etc.
What’s in it for the Small Business?
• A source of funds to conduct research and development
that a small firm might not otherwise be able to afford
• Small business incurs no debt, loss of equity or control
of the company
• Best utilized by companies that integrate SBIR funds into
a strategic plan for growth through new product or service
development
• Tacit endorsement by the federal government of the
small firm’s research qualifications (looks good on the
resume)
• A chance to become a supplier of specialized products
or services to the private sector or back to a government
agency (technology infusion)
• An opportunity to grow the small business through
strategic alliances with larger corporate partners
Before 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
The First Goal of Any SBIR Proposer
• Win a phase I award
• This is critical since companies can not bypass
phase I and jump in at phase II
Understand NASA SBIR Technology Needs
• Review past solicitations
• Get to know your customer
• Establish a relationship with relevant NASA subtopic manager(s)
• Get feedback on whether your proposed
approach meets a NASA need
• Caveat: NASA sub-topic managers are not
identified in the SBIR/STTR solicitation
• Blackout period when solicitation is open
NASA Quirks and Nuances
• Only one solicitation per year
• Projects are funded by contracts, not grants
• No fast track option
• Phase I SBIR win rate is about 1:8
• Phase I STTR win rate is about 1:4
Prepare High Quality SBIR Proposals
• Read and follow the solicitation carefully
• Know your customer
• Know the evaluation criteria
• Get help from other resources
Prepare High Quality SBIR Proposals
Read and Follow the Solicitation Carefully
• Get it from http://sbir.nasa.gov
• The solicitation provides all necessary forms and
instructions for preparation, assembly and submission
of a proposal
• Resist the urge to organize your proposal in a freeform, stream-of-consciousness fashion
• Use the section numbering scheme prescribed in the
solicitation
• The solicitation tells precisely what to cover in each
section; so cover it. If a section is not applicable, say
so.
• Submit on time and meet administrative screening
requirements
Prepare High Quality SBIR Proposals
Know Your Customer
• Use last year’s solicitation to identify topics to which
you believe you can be responsive
• Use RTTC, NASA SBIR Manager to identify NASA
authors of relevant SBIR topics (NASA calls them SubTopic Managers)
• Establish a relationship with the Sub-Topic Manager.
He or she may be your customer if you win an award.
• These people can help you understand NASA’s real,
sometimes unstated, needs and priorities.
• Tailor your SBIR proposal accordingly
• Timing is important: Sub-Topic Managers are not
available to advise you during the ten-week period each
year when NASA is accepting proposals. Plan ahead.
Prepare High Quality SBIR Proposals
Know The Evaluation Criteria
•The solicitation tells you what the evaluation criteria
are
• For phase I proposals:
• Scientific/technical merit and feasibility (50%)
• Experience, qualifications and facilities (25%)
• Effectiveness of proposed work plan (25%)
• Commercial merit and feasibility (qualitative score,
used for breaking ties)
• Increase the odds of winning by making your proposal
shine in each of these areas
• Look outside the company to acquire necessary
resources to address deficiencies
Prepare High Quality SBIR Proposals
Know and Use SBIR Program Resources
• NASA Far West RTTC
• NASA SBIR Managers
• NASA SBIR website (http://sbir.nasa.gov)
NASA SBIR Solicitation
Participation guide
Previous Award Winners
Successes
Key NASA Contacts
• NASA SBIR Support contractor
REI Systems
For Further Information . . .
NASA Far West Regional Technology Transfer
Center
• http://www.usc.edu/go/ttc
• 213-743-2353
• 800-642-2872
• [email protected]
For Further Information . . .
NASA SBIR Website
http://sbir.nasa.gov