[Federal Register Volume 77, Number 151 (Monday, August 6, 2012)]
[Rules and Regulations]
[Pages 46855-46908]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-18120]
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SMALL BUSINESS ADMINISTRATION
13 CFR Chapter I
RIN 3245-AF45
Small Business Technology Transfer Program Policy Directive
AGENCY: Small Business Administration.
ACTION: Final policy directive with request for comments.
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SUMMARY: The U.S. Small Business Administration (SBA) is amending its
Small Business Technology Transfer (STTR) Policy Directive. The purpose
of these amendments is to implement those provisions of the National
Defense Authorization Act for Fiscal Year 2012 affecting the program.
DATES: You must submit your comments on or before October 5, 2012.
[[Page 46856]]
ADDRESSES: You may submit comments, identified by RIN: 3245-AF45, by
any of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments.
Mail, Hand Delivery/Courier: Edsel Brown, Assistant
Director, Office of Technology, U.S. Small Business Administration, 409
Third Street SW., Washington, DC 20416.
SBA will post all comments to this policy directive on
www.regulations.gov. If you wish to submit confidential business
information (CBI) as defined in the User Notice at www.regulations.gov,
you must submit such information to Edsel Brown, or send an email to
[email protected]. Highlight the information that you consider to be
CBI and explain why you believe SBA should hold this information as
confidential. SBA will review your information and determine whether it
will make the information public.
FOR FURTHER INFORMATION CONTACT: Edsel Brown, Assistant Director,
Office of Technology, at (202) 401-6365.
SUPPLEMENTARY INFORMATION:
I. Executive Summary
The Small Business Act (Act) requires that the U.S. Small Business
Administration (SBA) issue a policy directive setting forth guidance to
the Federal agencies participating in the STTR program. The STTR Policy
Directive outlines how agencies must generally conduct their STTR
programs. Each agency, however, can tailor their STTR Program to meet
the needs of the individual agency, as long as the general principles
of the program set forth in the Act and directive are followed.
With this notice, SBA is issuing an amended policy directive, which
implements the recent changes made to the STTR Program as part of the
SBIR/STTR Reauthorization Act of 2011 (Reauthorization Act). In fact,
the Reauthorization Act requires that SBA issue amendments to the STTR
Policy Directive and publish the amendments in the Federal Register by
the end of June 2012.
Although the STTR Policy Directive is intended for use by the STTR
participating agencies, SBA believes that public input on the directive
from all parties involved in the program would be invaluable.
Therefore, SBA is soliciting public comments on this final directive,
and may amend the directive in response to these comments at a later
time.
The Reauthorization Act made several key changes to the STTR
Program relating to eligibility, the STTR award process, STTR Program
administration, and fraud, waste and abuse and SBA has addressed these
issues in the directive. Although SBA has explained in detail the
changes in the preamble, SBA believes it would be beneficial to all if
it set forth an abbreviated outline of some of the key provisions and
amendments to the Policy Directive in an Executive Summary.
A. Eligibility
With respect to eligibility for an STTR award, the directive:
Addresses the new requirements permitting small business
concerns that are majority-owned by multiple venture capital operating
companies (VCOCs), hedge funds or private equity firms to participate
in the program;
Permits an SBIR Phase I awardee to receive an STTR Phase
II award; and
States that a small business may receive two, sequential
Phase II awards.
For example, SBA amended the directive to address the two new
statutory exceptions to the general rule that only STTR Phase I
awardees may receive an STTR Phase II award. According to the
Reauthorization Act, a Federal agency may now issue an STTR Phase II
award to an SBIR Phase I awardee in order to further develop the work
performed under the SBIR Phase I award.
B. STTR Award Process
With respect to the STTR award process, the Policy Directive
incorporates the new statutory requirements, including the following:
Increasing the minimum percentage of an agency's
extramural R/R&D budget that must be awarded to small businesses under
the program;
Establishing agency measures to evaluate an STTR Phase I
applicant's success with prior Phase I and Phase II awards;
Ensuring agencies make award decisions within the
statutorily required time frames; and
Increasing the dollar thresholds for Phase I and Phase II
awards.
For example, SBA has amended the Policy Directive to clarify that
the STTR Program is extended until September 30, 2017 and to address
the increase in the minimum percentages of an agency's extramural
budget for R/R&D that must be awarded to SBCs under the STTR program.
As required by statute, the minimum percentages increase by 0.05% every
two fiscal years through fiscal year 2017.
Further, SBA amended the directive to set forth the criteria by
which agencies must establish standards, or benchmarks, to measure the
success of certain Phase I awardees in receiving Phase II awards and to
measure the success of certain Phase I awardees in receiving Phase III
awards. The purpose of these standards, or benchmarks, is to ensure
that repeat Phase I awardees are attempting to and have some success in
receiving Phase II awards and commercializing their research. As a
result, these benchmarks will only apply to those Phase I applicants
that have received a certain number of prior Phase I awards.
In addition, the Reauthorization Act requires agencies to make STTR
award decisions within a certain amount of time after the close of the
solicitation. The purpose of this statutory amendment is to reduce the
gap in time between submission of application and time of award, which
is an important issue for many small businesses.
Further, the STTR Policy Directive sets forth the new maximum
thresholds for Phase I and Phase II awards at $150,000 and $1,000,000,
respectively. SBA will adjust these amounts every year for inflation
and will post the adjusted numbers on www.SBIR.gov.
C. STTR Program Administration
With respect to each agency's administration of the STTR Program,
the Policy Directive incorporates the following new requirements:
Addressing statutory changes for technical assistance
provided to STTR awardees;
Creating and setting forth the policies for the new pilot
program that permits agencies to use SBIR money for administration of
the STTR program; and
Setting forth the new reporting and data collection
requirements.
The Act had previously permitted agencies to contract with vendors
to provide technical assistance to STTR awardees (e.g. assist STTR
awardees in making better technical decisions on STTR projects and
commercializing the STTR product or process). The Reauthorization Act
amended this current requirement, and SBA has amended the directive, to
permit agencies to contract with a vendor for a period of up to 5
years, permit an agency to provide technical assistance to an STTR
awardee in an amount up to $5,000 per year (previously the limit had
been $4,000 per award), and permit the small business to elect to
acquire the technical assistance services itself.
In addition, the Reauthorization Act creates a pilot program that
permits agencies to use SBIR funds for certain administrative purposes
for the STTR Program. SBA has amended the STTR
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Policy Directive to set forth when and how agencies may begin using
this pilot program authority and to explain that agencies may use no
more than 3% of their SBIR funds for one or more of the specified
activities.
SBA has also amended the Policy Directive to address the reporting
requirements for both the STTR participating agencies and STTR
applicants, many of which are newly required by various parts of the
Reauthorization Act. Both applicants and agencies will be able to
provide the statutorily required information into one or more of seven
specific databases, collectively referred to as Tech-Net, which will be
available at www.SBIR.gov. The seven databases are the: (1)
Solicitations; (2) Company Registry; (3) Application Information; (4)
Award Information; (5) Commercialization; (6) Annual Report; and (7)
Other Reports Databases.
The directive explains that the Solicitations Database will collect
all solicitations and topic information from the participating STTR
agencies. The Company Registry will house company information on all
STTR applicants and information on SBC applicants that are majority-
owned by multiple VCOCs, hedge funds or private equity firms. The
Application Information Database will contain information concerning
each STTR application, which will be uploaded by an STTR agency. The
Award Information Database will store information about each STTR
awardee and must also be uploaded by the STTR agency. The
Commercialization Database will store commercialization information for
SBCs that have received STTR awards. The Annual Report Database will
include all of the information required by the Small Business Act,
including the new requirements set forth in the Reauthorization Act
regarding the Annual Report that SBA submits to Congress. SBA receives
the information for the annual report from the various STTR agencies
and departments. The Other Reports Database will include information
that is required by statute to be submitted, but does not fit into any
of the other databases.
D. Fraud, Waste and Abuse
Finally, this Policy Directive incorporates several amendments
relating to fraud, waste and abuse, such as:
Requiring small businesses to certify they are meeting the
program's requirements during the life cycle of the funding agreement;
and
Establishing specific measures to ensure agencies are
preventing fraud, waste and abuse in the program.
As in the past, each small business that receives STTR funding must
certify that it is in compliance with the laws relating to the program.
However, SBA has amended the directive to state that these STTR
awardees must also submit certifications that they meet the program's
requirement at certain points during the life cycle of the award and
provides agencies with the discretion to request additional
certifications throughout the life cycle of the award.
In addition to lifecycle certifications, the Policy Directive
includes other measures to prevent fraud, waste and abuse in the STTR
Program. For example, agencies must include on their Web site and in
each solicitation any telephone hotline number or web-based method for
how to report fraud, waste and abuse; designate at least one individual
to serve as the liaison between the STTR Program, Office of Inspector
General (OIG) and the agency's Suspension and Debarment Official (SDO);
include on the agency's Web site successful prosecutions of fraud,
waste and abuse in the STTR Program; and create or ensure there is a
system to enforce accountability (e.g., creating templates for
referrals to the OIG or SDO), among other things.
Additional detail about all of these amendments to the directive is
set forth below.
II. Background
In 1992, Congress enacted the Small Business Research and
Development Enhancement Act of 1992 (SBRDEA), Public Law 102-564
(codified at 15 U.S.C. 638), which established the Small Business
Technology Transfer Program (STTR Program). The statutory purpose of
the STTR Program is to stimulate a partnership of ideas and
technologies between innovative small business concerns (SBCs) and
Research Institutions through Federally-funded research or research and
development (R/R&D). By providing awards to SBCs for cooperative R/R&D
efforts with Research Institutions, the STTR Program assists the small
business and research communities by commercializing innovative
technologies.
SBRDEA requires the U.S. Small Business Administration (SBA) to
``issue a policy directive for the general conduct of the STTR programs
within the Federal Government.'' 15 U.S.C. 638(p)(1). The purpose of
the Policy Directive is to provide guidance to the Federal agencies
participating in the program.
On December 31, 2011, the President signed into law the National
Defense Authorization Act for Fiscal Year 2012 (Defense Reauthorization
Act), Public Law 112-81, 125-Stat. 1298. Section 5001, Division E of
the Defense Authorization Act contains the SBIR/STTR Reauthorization
Act of 2011 (Reauthorization Act), which amends the Small Business Act
and makes several amendments to the STTR Program. The Reauthorization
Act requires that SBA issue amendments to the STTR Policy Directive and
publish the amendments in the Federal Register by June 27, 2012.
As a result of the abbreviated time frame set forth in the
Reauthorization Act by which SBA is required to issue the amended
Policy Directive, the Agency was unable to conduct public outreach
prior to drafting and issuing the directive. Therefore, SBA is
soliciting public comments on this final directive, and may amend the
directive in response to these comments at a later time. SBA also plans
to conduct public outreach sessions following publication, such as town
hall meetings and webinars, to gather additional input on these
statutory provisions and SBA's implementation. SBA will release more
information about these public sessions later, which will be available
at www.SBIR.gov. The SBA notes that it consulted with the STTR
participating agencies when drafting these amendments.
III. Amendments
SBA has amended the STTR Policy Directive to address the various
sections of the Reauthorization Act. SBA's amendments are set forth in
an analysis below, based on the specific section of the directive. SBA
welcomes comments on all issues arising from this notice.
SBA notes that it intends to update its Policy Directive on a
regular basis and over the next year it plans to restructure and
reorganize the directive as well as address certain policy issues
(e.g., those concerning data rights). However, at this time it is
amending the directive primarily to implement the new provisions
contained in the Reauthorization Act.
A. Section 1--Purpose
Section 5144 of the Reauthorization Act requires SBA to issue
regulations or guidelines to simplify the application and award
process. The Reauthorization Act requires SBA to issue such guidelines
or regulations after an opportunity for notice and public comment. The
regulations or guidelines must take into consideration the unique needs
of each Federal agency, yet ensure
[[Page 46858]]
that program proposal, selection, contracting, compliance, and audit
procedures are simplified and standardized across participating
agencies. This includes reducing the paperwork and regulatory
compliance burden on small business concerns applying to and
participating in the STTR Program.
SBA has amended the directive to fulfill this statutory requirement
to simplify and standardize the proposal, selection, contracting,
compliance, and audit procedures for the STTR program to the extent
practicable while allowing the STTR agencies flexibility in the
operation of their individual STTR Programs. Wherever possible, SBA has
attempted to reduce the paperwork and regulatory compliance burden on
SBCs applying to and participating in the STTR Program while still
meeting the statutory reporting and data collection requirements. For
example, as discussed later in this notice, SBA has created a program
data management system for collecting and storing application
information that will be utilized by all STTR agencies, thus
eliminating the need for STTR applicants to submit the same data to
multiple agencies.
SBA requests comments on other ways it can simplify and standardize
these requirements. Specifically, SBA requests comments on ways improve
the application process, including simplifying and streamlining that
process.
B. Section 2--Summary of Statutory Provisions
SBA has implemented section 5101 of the Reauthorization Act by
amending section 2 to clarify that the STTR Program is extended until
September 30, 2017, unless otherwise provided in law. In addition, in
order to implement section 5102 of the Reauthorization Act, SBA has
amended section 2 of the directive to address the increase in the
minimum percentages of an agency's extramural budget for R/R&D that
must be awarded to SBCs under the STTR program. As required by statute,
the minimum percentages will increase by .05% every two fiscal years
through fiscal year 2017. The directive clarifies that agencies may
exceed these minimum percentages and make additional awards to SBCs
under this program.
C. Section 3--Definitions
SBA has amended the definition of ``commercialization'' as required
by section 5125 of the Reauthorization Act. Further, SBA has amended
the definition for the term ``small business concern'' by simply
referencing its size regulations at 13 CFR 121.701-705. Those size
regulations define the ownership and size requirements for the SBIR and
STTR Programs. SBA has recently issued a rule proposing to amend those
regulations and the definition of ``small business concern'' for
purposes of the SBIR and STTR Programs as a result of certain
provisions of the Reauthorization Act (see 77 FR 30227 (May 22, 2012)).
SBA believes the proposed rule will not become final until late 2012.
In order to ensure that any changes made to the definition of ``small
business concern,'' which become effective in the regulation in late
2012, are incorporated into the Policy Directive, it is best to simply
reference the regulation in the Policy Directive at this time. When SBA
issues the final regulations defining ``small business concern,'' SBA
intends to amend the Policy Directive to explicitly incorporate the new
definition rather than only reference the regulation.
D. Section 4--Competitively Phased Structure of the Program
SBA amended the introductory paragraph to this section of the
Policy Directive to explain that agencies must issue STTR awards
pursuant to competitive and merit-based selection procedures. This
amendment implements section 5162 of the Reauthorization Act.
SBA also amended this paragraph to explain that agencies may not
use investment of venture capital, hedge funds or private equity firms
as a criterion for a Phase I, Phase II or Phase III award. This
amendment is required by section 5107(a) of the Reauthorization Act.
1. Section 4(a)--Phase I Awards
SBA has amended this section of the directive, which addresses
Phase I awards, to incorporate the provisions of section 5165 of the
Reauthorization Act concerning agency measures of progress towards
commercialization. Specifically, section 5165 requires that agencies
establish standards, or benchmarks, to measure the success of Phase I
awardees in receiving Phase II awards. These standards are referred to
as the ``Phase I-Phase II'' Transition Rate benchmarks in the Policy
Directive. Section 5165 also requires agencies to establish benchmarks
to measure the success of Phase I awardees in receiving Phase III
awards. These standards are referred to as the ``Commercialization
Rate'' benchmarks in the Policy Directive.
STTR agencies must establish the Phase I-Phase II benchmark rate
and have received SBA approval for the rate by October 1, 2012.
Agencies must establish the Commercialization Rate and have received
SBA approval for the rate by October 1, 2013. Any subsequent changes in
the benchmarks must be approved by SBA.
Once established, agencies will only apply these benchmarks to
those Phase I applicants that have received more than 20 Phase I awards
or more than 15 Phase II awards over the prior 5 fiscal years
(excluding the most recently completed two fiscal years). However, at
the agency's option, it may apply the benchmark to a Phase I applicant
that has received more than 20 Phase I awards over the prior 10 or 15
fiscal years (excluding the most recently completed fiscal year) or has
received more than 15 Phase II awards over the prior 10 or 15 fiscal
years (excluding the most recently completed two fiscal years).
With the Phase I-Phase II Transition Rate, each agency must
establish the minimum number of Phase II awards a small business must
have received for a given number of Phase I awards over the preceding
5, 10, or 15 fiscal years (excluding the most recently completed fiscal
year). For example, an agency may state that its Phase I-Phase II
Transition Rate requires an STTR Phase I applicant to have received at
least one Phase II award for every five Phase I awards received in the
prior 10 fiscal years. Another agency could state that its Phase I-
Phase II Transition Rate requires an STTR Phase I applicant to have
received at least one Phase II award for every ten Phase I awards
received in the prior 5 fiscal years. Agencies will set the benchmark
as appropriate for the specific agency's STTR Program, taking into
consideration the fact that Phase I is intended to explore high-risk,
early-stage research and therefore many Phase I awards will not result
in a Phase II award.
With the Commercialization Rate, each agency must establish the
level of Phase III commercialization results a small business must have
received from work performed under prior Phase II awards over the
preceding 5, 10, or 15 fiscal years (excluding the most recently
completed two fiscal years). Agencies have discretion to define this
benchmark in a number of ways, including: in financial terms (e.g.,
dollar value of revenues and additional investment per dollar value of
Phase II awards); in terms of the share of Phase II awards that have
resulted in the introduction of a product to the market relative to the
number of Phase II awards received; or by other means (e.g.,
[[Page 46859]]
a commercialization score or index). SBA is aware that some agencies
currently have a commercialization benchmark they are using. The
directive provides the agencies with the discretion to continue to use
those benchmarks or establish new Commercialization Rates relevant to
that agency.
We note that the Reauthorization Act refers to ``the success of
small business concerns with respect to the receipt of Phase III SBIR
or STTR awards'' when determining the Commercialization Rate benchmark.
However, the SBA understands that the intent of this provision is to
measure success at commercializing STTR technology not only in the
Federal procurement market in the form of Phase III awards, but also in
the private market place through sales or other means. Therefore, SBA
has drafted the Policy Directive in a manner consistent with this
understanding.
SBA will maintain a system that records all Phase I and Phase II
awards and calculates these benchmark rates. The small business will be
able to provide these rates to the STTR agency with its application.
The Reauthorization Act requires that each agency determine whether an
STTR Phase I applicant meets both of these benchmarks. If the applicant
does not meet both of the benchmarks, then by statute it is not
eligible for the Phase I award and it is not eligible for any other
STTR Phase I awards from that agency for a period of one year from the
date it submitted the application to the agency and was determined
ineligible for failure to meet the benchmark. That applicant, however,
may be eligible for a Phase I award from a different agency if it meets
that particular agency's benchmarks. If the applicant does meet the
particular agency's benchmark rates, the agency will still evaluate the
applicant's commercial potential for the specific R&D in that
application and base this evaluation on agency-specific criteria.
The purpose of this statutory provision is to ensure that STTR
awardees are attempting to commercialize their R&D. SBA understands
that not all Phase I awardees will receive Phase II awards due to many
factors, such as the exploratory nature of Phase I awards, insufficient
funding for Phase II awards, and changes in requirements for the
agency. SBA has taken all of this into consideration when drafting
these benchmark provisions, while also allowing agencies flexibility in
setting the benchmarks.
2. Section 4(b)--Phase II Awards
SBA has amended this section of the directive, which addresses
Phase II awards, to set forth two new statutory exceptions to the
general rule that only STTR Phase I awardees may receive an STTR Phase
II award. According to section 5104 of the Reauthorization Act, a
Federal agency may now issue an STTR Phase II award to an SBIR Phase I
awardee in order to further develop the work performed under the SBIR
Phase I award.
SBA has also amended this section of the directive to state that
agencies may not use an invitation, pre-screening, or pre-selection
process for determining eligibility for a Phase II award. Agencies must
set forth a notice in each solicitation stating that all Phase I
awardees are eligible to apply for a Phase II award and must provide
specific guidance on how to apply. This amendment is required by
section 5105 of the Reauthorization Act.
Finally, SBA amended this section to address section 5111 of the
Reauthorization Act, concerning multiple Phase II awards. Specifically,
agencies may now issue one additional, sequential Phase II award to
continue the work of an initial Phase II award. Therefore, a small
business may receive no more than two STTR Phase II awards for the same
R&D project, and the awards must be made sequentially.
3. Section 4(c)--Phase III Award
SBA amended this section to address the specific statutory
directive at section 5108 of the Reauthorization Act that agencies, to
the greatest extent practicable, shall issue Phase III awards to the
STTR awardee that developed the technology. Agencies may issue sole
source Phase III awards to the STTR Phase I or Phase II awardee to meet
this statutory requirement. At times, agencies have failed to use this
authority, bypassed the small business that created the technology, and
pursued the Phase III work with another business. Congress has
expressed, again, and now in stronger terms, a clear intent for the
agencies to issue Phase III awards to the STTR awardees that created
the technology so that these small businesses can commercialize it.
SBA requests comments, however, on whether it should define ``to
the greatest extent practicable'' with respect to when agencies shall
issue these Phase III awards, and if so, how it should define the
phrase. For example, if the agency elects not to issue a Phase III sole
source award to the STTR Phase II awardee for follow-on Phase III work,
then SBA requests comments on what other ways, if any, the agency could
meet this statutory requirement (e.g., whether STTR preference is an
option within the context of a full and open competition).
E. Section 6--Eligibility and Application (Proposal) Requirements
1. Section 6(a)--Eligibility Requirements
SBA amended this section of the directive to address the new
statutory requirements concerning small businesses that are majority-
owned by venture capital operating companies (VCOCs), hedge funds or
private equity firms. Specifically, section 5107 of the Reauthorization
Act states that businesses that are owned in majority part by VCOCs,
private equity firms or hedge funds may be eligible to participate in
the SBIR Program, under certain conditions.
First, SBA must amend its size regulations at 13 CFR part 121, to
address ownership, control, and affiliation for these businesses. SBA
has issued a proposed rule addressing this issue, with a request for
comments. While Section 5107 of the Reauthorization Act addresses only
the SBIR program, SBA has proposed changing the ownership, control, and
affiliation rules effecting SBCs that participate in both the SBIR and
STTR programs. This was done to maintain conformity between the
programs. The new ownership, control, and affiliation rules will not be
in effect until a final rule is issued.
Second, if the agency elects to use this authority, it must submit
a written determination letter to SBA, the Senate Committee on Small
Business and Entrepreneurship, the House Committee on Small Business
and the House Committee on Science, Space, and Technology. The agency
must explain how awards to small business that are majority-owned by
multiple VCOCs, hedge funds or private equity firms will induce similar
and additional funding of small business innovations, contribute to the
mission of the agency, demonstrate a need for public research, and
otherwise fulfill the capital needs of small businesses for SBIR (or
STTR) projects.
Third, small businesses that are majority-owned by multiple VCOCs,
hedge funds or private equity firms must register with the SBA prior to
submitting an STTR application. Once SBA issues a final rule amending
13 CFR part 121 concerning ownership and control of STTR applicants,
the ownership and control rules will be in effect, and the registration
will be available at www.SBIR.gov.
[[Page 46860]]
Finally, agencies electing to use this authority may only issue a
certain percentage of their STTR awards to small businesses that are
majority-owned by multiple VCOCs, hedge funds or private equity firms.
The National Institute of Health (NIH), Department of Energy (DOE), and
the National Science Foundation (NSF) may award not more than 25% of
their SBIR funds to such small businesses. All other SBIR agencies may
award not more than 15% of their SBIR funds to these small businesses.
If the agency has not exceeded these maximum statutory percentages, the
participating agencies may make awards to small businesses that are
majority-owned by multiple VCOCs, hedge funds or private equity firms
under the STTR Program. If an agency exceeds this maximum statutory
percentage of awards, it must transfer this excess amount from its non-
SBIR and non-STTR funds to the SBIR funds.
SBA considered amending the requirement concerning the principal
investigator's primary employment. Specifically, SBA considered further
defining primary employment to mean that the principal investigator
must perform at least 51% of his/her work (as opposed to the current
requirement that they perform a minimum of one half), based on a 40-
hour workweek, in the employ of either the research institution or
small business. SBA seeks comments on whether this further
clarification is needed.
2. Section 6(b)--Proposal Requirements
SBA amended this section to address the certification requirements
at the time an SBC submits its proposal and at the time it receives an
STTR award. Section 5143 of the Reauthorization Act requires each STTR
awardee to certify that it is in compliance with the laws relating to
the program. SBA's Administrator is required to develop, in
consultation with the Council of Inspectors General on Integrity and
Efficiency, the procedures and requirements for this certification
after providing notice of and an opportunity for public comment on such
procedures and requirements. SBA requested public input on its
certification requirements in the ownership and control proposed rule.
SBA will consider further input received on this final directive.
In the directive, SBA explains that all applicants that are
majority-owned by multiple VCOCs, hedge funds or private equity firms
must submit a certification and register at www.SBIR.gov (once SBA
issues a final regulation amending 13 CFR part 121). The specifics
relating to the certification and registration database are discussed
later in Section 10.
Further, all STTR awardees must submit a certification at the time
of award stating that it meets the size, ownership and other
requirements of the STTR Program. The directive explains that agencies
may request similar certifications prior to award, such as at the time
of submission of the application. The specifics relating to the
certification is discussed later in this notice.
In addition to the certification requirements, section 5132-5135 of
the Reauthorization Act requires that STTR applicants and awardees
provide to agencies certain information concerning their ownership,
investors, and principal investigators, among other things. In an
effort to streamline and simplify this data collection, SBA requires
that the small business provide this information to the databases
available at www.SBIR.gov, rather than to each individual agency with
each STTR application or award. The specifics relating to this
certification and data collection are discussed below in Section 10.
F. Section 7--STTR Funding Process
1. Section 7(c)--Selection of Awardees
Section 5126 of the Reauthorization Act requires agencies to make
award decisions within a certain amount of time after the close of the
solicitation. The purpose of this statutory amendment is to reduce the
gap in time between submission of application and time of award, which
is an important issue for many small businesses. For example, if an
agency takes a long time to make an award, it may be difficult for the
small business to retain its key personnel, such as the principal
investigator.
The Reauthorization Act requires, and the directive explains, that
NIH and NSF must issue a notice to each applicant as to whether it has
been selected for an award within one year from the closing date of the
solicitation. The directive states that NIH and NSF should then issue
the actual award within 15 months of the closing date of the
solicitation. All other agencies must issue a notice to each applicant
as to whether it has been selected for an award within 90 calendar days
from the closing date of the solicitation. The directive states that
the agencies should then issue the actual award within 180 calendar
days of the closing date of the solicitation.
If an agency will not be able to issue the notice within the
statutorily required time, it must request an extension of time from
SBA. The written request must specify the number of additional days
needed to make the award decision and must be submitted to the SBA at
least 10 business days prior to when the agency is required to issue
the award decision to the applicants. SBA explains in the Policy
Directive that even if it grants an extension of time, the STTR agency
still has the responsibility to work toward issuing quicker awards and
meeting the statutory timeframes.
2. Section 7(i)--Dollar Value of Awards
SBA amended this section of the directive to implement section 5103
of the Reauthorization Act, which sets the maximum thresholds for Phase
I and Phase II awards at $150,000 and $1,000,000, respectively. SBA
will adjust these amounts every year for inflation and will post the
adjusted numbers on www.SBIR.gov.
Section 5103 of the Reauthorization Act also states that agencies
may exceed these thresholds by no more than 50%, unless the agency
requests and is granted a waiver from SBA. SBA has amended the
directive to set forth this new statutory requirement. In addition, as
stated in the directive, when submitting a request for a waiver to
exceed the award guidelines, the waiver must be for a specific topic,
and not for the agency as a whole. SBA notes that the Reauthorization
Act only permits a waiver by topic. Further, the directive explains
that when seeking the waiver, the agency must provide evidence showing
that the limitations on the award size will interfere with its mission
and that the research costs for the topic area differ significantly
from other areas, among other things.
G. Section 8--Terms of Agreement Under STTR Awards
As discussed above, section 5143 of the Reauthorization Act
requires each applicant that applies for and each small business that
receives STTR funding to certify that it is in compliance with the laws
relating to the program. Section 5143 specifically states that such
certifications may cover the life cycle of the funding agreement.
As a result, SBA has amended this section of the directive to state
that for Phase I awards, agencies must require that awardees submit a
certification as to whether they are in compliance with specific STTR
Program requirements at the time of final payment or disbursement. For
Phase II awards, agencies must require that awardees submit a
certification as to whether they are in compliance with specific STTR
Program requirements prior to receiving
[[Page 46861]]
more than 50% of the total award amount and prior to final payment or
disbursement. The directive provides the agencies with the discretion
to request additional certifications throughout the life cycle of the
award since SBA is aware that some agencies request certification at
the time of each payment.
SBA notes that these certifications are in addition to, and
different in content from the certification required at the time of
award. SBA requests comments on the certification requirements,
including whether additional certifications should be required to
prevent fraud, waste and abuse.
H. Section 9--Responsibilities of STTR Participating Agencies and
Departments
1. Section 9(c)--Discretionary Technical Assistance
The Small Business Act currently permits agencies to contract with
vendors who provide technical assistance to STTR awardees. Section 5121
of the Reauthorization Act amended this current requirement to permit
agencies to contract with vendors for a period of up to 5 years. In
addition, the Reauthorization Act states that the contract with the
vendor cannot be based upon the total number of Phase I or Phase II
awards. The contract, however, may be based on the total amount of
awards for which actual technical assistance was provided. The
directive addresses these new requirements.
The Reauthorization Act permits an agency to provide technical
assistance to an STTR awardee in an amount up to $5,000 per year
(previously the limit had been $4,000 per award). This amount is in
addition to the award amount.
The Reauthorization Act also permits the small business to elect to
acquire the technical assistance services itself. Some believe that
allowing a small business to obtain such services itself may create
conflicts or potential abuses. To negate these concerns, SBA has
required that the applicant must request to do so in its STTR
application, and must demonstrate that the individual or entity
selected can provide the specific technical services needed. If the
awardee demonstrates this requirement sufficiently, the Reauthorization
Act states that the agency must permit the awardee to acquire the
needed technical assistance itself, as an allowable cost. SBA has
incorporated these new statutory authorities into the directive. SBA
welcomes comments on this amendment and other ways it can limit
potential abuses of the technical assistance allowance.
2. Section 9(d)--Interagency Actions
SBA amended the directive to address section 5104 of the
Reauthorization Act, which requires that when one agency issues an STTR
Phase II award to an STTR Phase I awardee of another agency, both
agencies must issue a written determination that the topics of the
awards are the same. The agencies must submit this report to SBA.
3. Section 9(e)--Limitation on Use of Funds
Section 5141 of the Reauthorization Act creates a pilot program
that permits agencies to use SBIR funds for certain administrative
purposes. Prior to this amendment, agencies were not permitted to use
SBIR funds for any purpose other than awards and technical assistance
to small businesses.
SBA has amended the SBIR Policy Directive to state that beginning
on October 1, 2012, and ending on September 30, 2015, and upon
establishment by SBA of the agency-specific performance criteria, SBA
shall allow agencies to use no more than 3% of their SBIR funds for one
or more specific activities. Specifically, the funding is to be used to
assist with the substantial expansion in commercialization reporting;
fraud, waste and abuse prevention; expanded reporting requirements; and
other new activities required by the STTR Program. The administrative
funds are not to be used to replace the agency's current administrative
funding for the STTR Program (e.g., pay for current personnel) but to
supplement the agency's current administrative funding (e.g. pay for
new personnel to assist solely with STTR funding agreements) and cover
the costs of new program initiatives.
The Reauthorization Act requires agencies to use some of these
funds to increase participation by socially and economically
disadvantaged small businesses (SDBs) and women-owned small businesses
(WOSBs) in the STTR Program, and small businesses in states with a
historically low level of participation in the program. The agency may
request a waiver of this statutory requirement by submitting a written
statement explaining why there is a sufficient need for the waiver, and
that the outreach objectives of the agency are already being met. The
directive addresses this requirement.
The Reauthorization Act states that agencies may not use the SBIR
funds for any of these administrative purposes until SBA establishes
performance criteria to measure the benefits of using the funds and to
ultimately determine whether the pilot program should be continued,
discontinued, or made permanent. The Policy Directive explains that in
order to help SBA establish the agency-specific performance criteria,
each agency must submit an annual work plan to SBA at least 30 calendar
days prior to the start of a fiscal year. The work plan must set forth
a prioritized list of initiatives to be supported in alignment with
reporting requirements, the estimated amounts to be spent on each
initiative, milestones for implementing the initiatives, the expected
results to be achieved, and the assessment metrics for each initiative.
The work plan must explain how these initiatives are above and beyond
the agency's current practices and how they will enhance the program.
After review of the work plan, SBA will establish the performance
metrics for that fiscal year by which use of these funds will be
evaluated for that fiscal year. SBA will create a simplified template
for agencies to use when creating their work plans. Agencies will
submit work plans to SBA each fiscal year the pilot program is in
operation.
The Policy Directive also explains that any activities relating to
fraud, waste and abuse prevention in the work plan must be coordinated
with the agency's Office of Inspector General (OIG). If the agency
allocates more than $50,000,000 to its SBIR Program for a fiscal year,
some of these administrative funds may be used to cover the costs
incurred by the OIG when the OIG performs fraud, waste and abuse
activities for the agency's STTR Program.
SBA also amended this section of the Policy Directive to address
the new statutory requirement set forth in section 5109 of the
Reauthorization Act that permits agencies to subcontract a portion of
an STTR funding agreement to a Federal laboratory. Although agencies
may permit small businesses to subcontract a portion of the work to the
Federal laboratory without requesting a waiver from SBA, the agency
cannot require a small business to subcontract a portion of the award
to the laboratory.
4. Section 9(f)--Preventing Fraud, Waste, and Abuse
Section 5143 of the Reauthorization Act requires SBA to amend the
Policy Directive to include measures to prevent fraud, waste and abuse
in the STTR Program. SBA has amended the directive to define and
provide examples of fraud, waste and abuse as it relates to the STTR
Program. In addition, SBA has amended the
[[Page 46862]]
directive to state that each STTR agency must take certain measures to
reduce fraud, waste and abuse in the program.
For example, at the recommendation of the Council for Inspectors
General on Integrity and Efficiency, the SBA has included the
requirement for certification by the small business during the life
cycle of the funding agreement. As discussed above, this means that in
addition to requiring a certification at the time of award, agencies
must request certifications by the small business concern during
certain points in time of a Phase I and Phase II funding agreement to
ensure that the awardee is in compliance with the program's
requirements.
The directive explains that agencies must also take other measures
to reduce fraud, waste and abuse, such as: (1) Including on their Web
site and in each solicitation any telephone hotline number or web-based
method for reporting fraud, waste, and abuse; (2) designating at least
one individual to serve as the liaison between the STTR Program, OIG
and the agency's Suspension and Debarment Official (SDO); (3) including
on the agency's Web site successful prosecutions of fraud, waste and
abuse in the STTR Program (relating to any STTR agency); and (4)
creating or ensuring there is a system to enforce accountability (e.g.,
creating templates for referrals to the OIG or SDO), among other
things. In addition, the directive requires the agencies to work with
their specific OIG, who will help establish fraud detection indicators.
For example, one agency, acting in concert with its OIG, uses a
commercial software that searches for redundancy or plagiarism in the
applications submitted. This is one form of a fraud detection
indicator.
SBA welcomes comments on other ways agencies may reduce fraud,
waste and abuse in the program.
5. Section 9(g)--Interagency Policy Committee
Section 5124 of the Reauthorization Act instructs the Office of
Science and Technology Policy (OSTP) to create the Interagency Policy
Committee, comprised of OSTP, the SBIR and STTR participating agencies
and SBA. The purpose of this committee is to review issues relating to
the STTR program, such as commercialization assistance, and make
recommendations on ways to improve the program. SBA has amended the
directive to address this new committee.
6. Section 9(h)--National Academy of Science Report
Section 5137 of the Reauthorization Act requires the National
Academy of Sciences (NAS) to conduct a comprehensive study of how the
STTR program has stimulated technological innovation. NAS must consult
with and consider the views of SBA, as well as other interested
parties, when drafting the report. In addition, the statute requires
certain agencies, in consultation with SBA, to enter into an agreement
with NAS in furtherance of the report. SBA has amended the Policy
Directive to address this new requirement, since NAS will be issuing
the report not later than 4 years after December 31, 2011 and then
every subsequent four years. Details about the study are set forth in
Appendix X.
I. Section 10--Agency and STTR Applicant/Awardee Reporting Requirements
SBA has amended this section of the Policy Directive to address the
reporting requirements for both the STTR participating agencies and
STTR applicants, many of which are newly imposed by various parts of
the Reauthorization Act. In an effort to streamline and standardize the
various reporting requirements, SBA will be gathering this information
at one source--www.SBIR.gov. Both applicants and agencies will be able
to provide the statutorily required information into one or more
specific databases, collectively referred to as Tech-Net. These
requirements will be phased in over a period of time according to a
plan that is complementary to but not part of the Policy Directive.
SBA published a notice in the Federal Register, 77 FR 16313, on
March 20, 2012, explaining this data collection and seeking comments.
One of the comments expressed concern that SBA was unnecessarily
seeking information from small businesses. This is not the case. The
Reauthorization Act sets forth a number of data requests SBA and the
STTR agencies are required to collect from small businesses. This data
collection is intended to ensure that only those small businesses that
meet the requirements of the program receive an STTR award and to
enable assessment of the program.
SBA has sought to reduce any burdens this data collection may have
on small businesses. Because SBA will be collecting the data at one
location, small business and agencies will only have to input certain
information once, and then update as necessary. For example, when a
small business inputs information for the Company Registry, some of the
information will populate some fields in other databases, such as the
Commercialization Database. Likewise, if an agency provides awardee
information in the Awardee database, some of information will populate
the Annual Report Database.
The seven databases addressed in the directive are the: (1)
Solicitations; (2) Company Registry; (3) Application Information; (4)
Award Information; (5) Commercialization; (6) Annual Report; and (7)
Other Reports Databases. SBA currently has some of these databases
ready for operation with the needed data fields and anticipates a
phased implementation for the remaining databases and data fields.
The directive explains that the Solicitations Database will collect
all solicitations and topic information from the participating STTR
agencies. It will serve as the primary source for small businesses
searching for STTR solicitations. Agencies must therefore update this
database within 5 business days after a solicitation's open date. SBA
will have a Master Schedule showing all agency solicitation open and
close dates.
The Company Registry will house company information on all STTR
applicants. It will contain information on SBC applicants that are
majority-owned by multiple VCOCs, hedge funds or private equity firms,
which by statute are required to register in an SBA database prior to
submitting an SBIR or STTR application. This database will also house
the registration information for those SBCs that receive an award as a
result of the Civilian Agency Commercialization Readiness Pilot
Program. All potential STTR applicants will be required to register in
the Company Registry prior to submitting an STTR application.
SBA believes it is important to maintain such a Company Registry
for several reasons. First, in order to prevent fraud, waste and abuse
it would be best to house the data in one place so that the company
must register itself and use that same registration (same name and
identifying number) for each application. In addition, at the time the
company registers, SBA intends to have online information relating to
eligibility to ensure that the business understands the requirements of
the program. Second, certain information on applicants is required by
statute and therefore it would be best to have the applicant enter the
data once (and update as needed), instead of each time it submits an
application to an agency. Third, this registration is no different than
others used in Federal contracting,
[[Page 46863]]
such as the Central Contractor Registration (CCR). There are numerous
small businesses that are registered in CCR and it does not appear to
be a burden or difficult for small businesses to register their
information into a central database in order to receive a contracting
benefit afforded small businesses.
The directive also explains that the Application Information
Database will contain information concerning each STTR application,
which will be uploaded by an agency at least quarterly. Some of the
information inputted by the STTR applicant into the Company Registry
will filter to this database. Other information, such as the contact
information for the Federal employee reviewing the applications and
making awards, will need to be inputted by the agency. This database
will also contain information required by section 5135 of the
Reauthorization Act, including information relating to the names of key
individuals that will carry out the project and the percentage of
effort the individual will contribute to the project.
The Award Information Database will store information about each
STTR awardee and must be updated by the agency quarterly. Award data is
generally reviewable and searchable by the public. Some of the
information collected from the Company Registry and Application
Information Database will filter to this database.
The Commercialization Database will store commercialization
information for SBCs that have received STTR awards. This includes
information relating to revenue from the sale of new products or
services resulting from the R&D conducted under a Phase II award and
any business or subsidiary established for the commercial application
of a product or services for which an STTR award is made, among other
things. The information contained in this database will be used by SBCs
and agencies to determine whether the SBC meets the agency's
commercialization benchmarks, discussed above, and for program
evaluation purposes. SBCs may provide the information to the SBA's
database directly or to the agency, which will collect it and upload it
to SBA's database.
The Annual Report Database will include all of the information
required by the Small Business Act, including the new requirements set
forth in the Reauthorization Act regarding the Annual Report that SBA
submits to Congress. SBA receives the information for the annual report
from the various STTR agencies and departments. To reduce the burden on
the agencies and departments, data from the other databases will filter
to the Annual Report Database. Agencies must provide the other
information for the annual report to SBA by March 15th each year.
Some of the information that agencies will be required to provide
by March 15 includes new information required by the Reauthorization
Act, such as an analysis of the various activities considered for
inclusion in the Commercialization Program for civilian agencies set
forth in section 12(c) of the directive and a description of the extent
to which the agency is increasing outreach and awards to SDBs and
WOSBs.
The Other Reports Database will include information that is
required by statute to be submitted, but does not fit into any of the
other databases. For example, section 5110 of the Reauthorization Act
requires agencies to provide SBA notice of any case or controversy
before any Federal judicial or administrative tribunal concerning the
STTR Program of the Federal agency. A case or controversy between a
Federal or administrative tribunal would not include agency level
protests of awards unless and until the protest is before a Federal
court or administrative body. It would include litigation that is
before a Federal or State court, or administrative tribunal such as the
Government Accountability Office. Further, section 5161 of the
Reauthorization Act requires that agencies provide an annual report to
the SBA, the Senate Committee on Small Business and Entrepreneurship,
the House Committee on Small Business, and the House Committee on
Science, Space, and Technology on the SBIR and STTR Programs and the
benefits of these programs to the United States. The statute requires
the final report be posted online so it can be made available to the
public. This section lists this and other new reporting requirements,
set forth in the Reauthorization Act, for the STTR agencies.
Finally, SBA has a new section in the directive that identifies all
of the waivers that may be requested and submitted by an agency to SBA,
and which are discussed in various other parts of the directive. The
following waivers may be granted by SBA: (1) An extension for
additional time between the solicitation closing date and notification
of recommendation for award; (2) permission to exceed the award
guidelines for Phase I and Phase II awards by more than 50% for a
specific topic; and (3) permission to issue a funding agreement that
includes a provision for subcontracting a portion of that agreement
back to the issuing agency if there is no exception to this requirement
in the directive.
J. Section 11--Responsibilities of SBA
SBA has amended this section of the directive to incorporate some
new responsibilities of SBA and to include many responsibilities and
activities SBA has undertaken over the last several years with respect
to the program. These areas of responsibility include: (1) Policy,
outreach, collection and publication of data; (2) monitoring
implementation of the program and reporting to Congress; and (3)
additional efforts to improve performance.
First and most obvious, is that SBA is responsible for establishing
the policies and procedures for the program by publishing and updating
the STTR Policy Directive and promulgating regulations. As discussed
above, SBA is also responsible for issuing waivers.
SBA also conducts outreach to achieve a number of objectives
including educating the public and the agencies about the STTR Program,
highlighting successful SBC achievements, and maintaining www.SBIR.gov.
Similarly, SBA must collect and maintain program-wide data within the
Tech-Net data system (available at www.SBIR.gov). This data includes
information on all Phase I and II awards from across all STTR
participating agencies, as well as Fiscal Year Annual Report data.
SBA also provides oversight and monitors the implementation of the
STTR Program. This includes monitoring agency STTR funding allocations
and program solicitation and awards as well as ensuring each
participating agency has taken steps to maintain a fraud, waste and
abuse prevention system to minimize adverse impact on the program.
SBA is also responsible for defining areas of performance
consistent with statute (e.g., timelines for award, simplification of
STTR application process) and defining metrics against that
performance. SBA will therefore measure performance against goals set
by the STTR agencies. The purpose of these performance metrics and
goals is to evaluate and report on the progress achieved by the
agencies in improving the STTR Program. SBA discusses in detail the
performance metrics and goals in section 10(i) of the directive.
In addition to the above, SBA continuously seeks to improve the
performance of the program and will make recommendations and
modifications for such improvement. This may include sharing and
[[Page 46864]]
recommending agency ``best practices'' and other program-wide
initiatives.
All of these SBA responsibilities are set forth in section 11 of
the directive.
K. Section 12--Supporting Programs and Initiatives
This section of the policy directive sets forth various programs,
including a new pilot program that seeks to enhance the
commercialization efforts of small businesses. These programs also
include the Federal and State Technology Partnership (FAST) Program,
the DoD Commercialization Program, the Civilian Agency
Commercialization Readiness Pilot Program, and the Phase 0 Proof of
Concept Partnership Pilot Program.
Section 5122 of the Reauthorization amended the DoD
Commercialization Program by converting it from a pilot program into a
permanent program. The purpose of this program is for DoD to accelerate
the transition of technologies, products and services developed under
the STTR Program to Phase III. The Reauthorization amended the program
by creating an incentive requirement for any contract with a value of
at least $100 million. For those contracts, DoD may establish goals for
the transition of STTR technologies into the prime contractor's
subcontracting plan and require the prime to report the number and
value of subcontracts entered into for Phase III work with a prior STTR
awardee.
Section 5141 of the Reauthorization Act also amended the DoD
Commercialization Program by stating that for FY 2013 through FY 2015,
the Secretary of Defense and each Secretary of a military department
may use no more than 3% of its SBIR funds for administration of this
Commercialization Program. This means that the only SBIR funds that can
be used for the administration of the DoD Commercialization Program
must come from the Pilot to Allow for Funding of Administrative,
Oversight, and Contract Processing Costs, discussed above. When that
pilot program expires, which is the end of FY 2015, the statute
provides that DoD may use not more than 1% of its SBIR funds available
to DoD or the military departments to administer the Commercialization
Program. Section 12 of the directive addresses this DoD program.
Section 12 of the directive also sets forth the new Civilian Agency
Commercialization Readiness Pilot Program. This new program is
authorized by section 5123 of the Reauthorization Act and terminates on
September 30, 2017, unless otherwise extended.
This Commercialization Readiness Pilot Program is different from
the DoD Commercialization Program. Under this program, a civilian
agency participating in the STTR Program may allocate not more than 10%
of its STTR funds: (1) for follow-on awards to small businesses for
technology development, testing, evaluation, and commercialization
assistance for SBIR or STTR Phase II technologies; or (2) for awards to
small businesses to support the progress of research, research and
development, and commercialization conducted under the SBIR or STTR
programs to Phase III.
Before establishing this pilot program, an STTR agency must submit
a written application to SBA not later than 90 days before the first
day of the fiscal year in which the pilot program is to be established.
The written application must set forth a compelling reason that
additional investment in SBIR or STTR technologies is necessary,
including unusually high regulatory, systems integration, or other
costs relating to development or manufacturing of identifiable, highly
promising small business technologies or a class of such technologies
expected to substantially advance the mission of the agency. SBA must
make its determination regarding an application submitted not later
than 30 days before the first day of the fiscal year for which the
application is submitted and will publish its determination in the
Federal Register. Under this pilot program, STTR agencies may make an
award to a SBC up to three times the dollar amount generally
established for Phase II awards under section 7(i)(1) of this
directive. When making an award under this pilot program, the agency is
required to consider whether the technology to be supported by the
award is likely to be manufactured in the United States.
Section 5127 of the Reauthorization Act established the Phase 0
Proof of Concept Partnership Pilot Program, which terminates on
September 30, 2017, unless otherwise extended. Section 5127 of the
Reauthorization Act authorizes the Director of the National Institutes
of Health (NIH) to use $5,000,000 of the funds allocated for the STTR
Program, set forth in section 2(b) of this directive, to establish this
pilot program to accelerate the creation of small businesses and the
commercialization of research innovations from qualifying institutions.
The Director of NIH may make grant awards of up to $1,000,000 per year,
for up to 3 years, to qualifying institutions. Awards shall be made
based on a competitive, merit-based process. Section 5127 provides
criteria that the Director of NIH must consider in determining whether
an applicant is a qualified institution. The qualifying institutions
must use these funds to establish a Proof of Concept Partnership with
NIH to administer grant awards to individual researchers. These grants
should provide individual researchers with the initial investment and
the resources to support the proof of concept work and
commercialization mentoring necessary to translate promising research
projects and technologies into a viable company. Section 5127 provides
guidelines that the administrator of a Proof of Concept Partnership
must follow in making grant awards to individual researchers. The
administrator of a Proof of Concept Partnership must also make
educational resources and guidance available to researchers attempting
to commercialize innovations.
Section 5127 of the Reauthorization Act also limits the use of the
pilot program's funds. Specifically, section 5127 requires that the
funds must not be used for basic research or to fund the acquisition of
research equipment or supplies unrelated to commercialization
activities. This section of the Reauthorization Act also specifically
states that the pilot program's funds can be used to evaluate the
commercial potential of existing discoveries, including proof of
concept research or prototype development; and activities that
contribute to determining a project's commercialization path, to
include technical validations, market research, clarifying intellectual
property rights, and investigating commercial and business
opportunities.
L. Appendix--Instructions for STTR Program Solicitation Preparation
SBA amended this section of the Policy Directive to address the
certification requirements set forth in section 5143 of the
Reauthorization Act. Specifically, section 5143 recommends that SBCs
receiving an STTR award certify their eligibility for the program and
award.
SBA has created three new certifications to be used by agencies.
The first certification is for STTR applicants that are majority-owned
by multiple VCOCs, hedge funds or private equity firms. The
certification, to be submitted to the agency by the SBC with its
application, states that the SBC has registered with the Company
Registry Database and meets the statutory requirements for eligibility
of such small businesses.
The second certification is required for all SBCs that receive an
STTR award, although agencies may request that SBCs provide a
certification at the time
[[Page 46865]]
of application, as well. This certification addresses the ownership and
control requirements for the program set forth in SBA's regulations and
the performance of work requirements for the small business and
principal investigator. The certification also addresses whether all or
a portion of the work under the project has been submitted to another
agency for consideration of an award and whether the other agency has
or has not funded the work. The purpose of this part of the
certification is to ensure that two or more agencies do not fund the
same or similar work.
The third certification is required for all STTR awardees that are
working on an STTR award. This is referred to as the life cycle
certification. It seeks to ensure that once awarded the STTR funding
agreement, the small business concern continues to meet the program's
requirements (e.g. performing the required percentage of work,
employing the principal investigator). Agencies will set forth in the
funding agreement those specific points in time that the small business
must submit the certification during the life of the award.
Finally, this section of the directive also addresses the
requirement in section 5140 of the Reauthorization Act that agencies
request permission from SBCs to disclose the title and abstract of the
proposed project, as well as the name and other information of the
corporate official of the SBC, to appropriate local and state economic
development organizations, if the proposal does not result in an STTR
award. Every applicant must include this information in its proposal
cover sheet.
M. Other Appendices
The remaining appendices generally set forth the data fields that
will be used to collect the information from SBCs and agencies for the
various databases. This information collection is further addressed in
SBA's Paperwork Reduction Act submission.
IV. Request for Comments
SBA was required by the Reauthorization Act to publish the final
directive within a short timeframe. As a result, SBA was unable to
gather public input prior to drafting these provisions, although SBA
did work with the various STTR participating agencies to gather input
and feedback on these provisions. SBA therefore requests comments on
all matters addressed relating to implementation of the Reauthorization
Act. SBA will review and consider all comments received to determine
whether amendments are needed to improve the general conduct of the
STTR Program.
Notice of Final Policy Directive; Small Business Technology Transfer
Program
To: The Small Business Technology Transfer Program Managers
Subject: SBIR/STTR Reauthorization Act of 2011 (Reauthorization Act)--
Amendments to the Small Business Technology Transfer Program
1. Purpose. The purpose of this notice is to set forth a final STTR
Policy Directive, which incorporates recent amendments made to the
Small Business Act by the SBIR/STTR Reauthorization Act of 2011.
2. Authority. Section 9(p) of the Small Business Act (15 U.S.C.
638(p)) requires the Administrator of the U.S. Small Business
Administration (SBA) to issue an STTR Program Policy Directive for the
general conduct of the STTR Program. Further, section 5151 of the
Reauthorization Act requires the SBA to issue a final directive,
incorporating the Reauthorization Act's amendments within 180 days
after its enactment.
3. Procurement Regulations. It is recognized that the Federal
Acquisition Regulations and agency supplemental regulations may need to
be modified to conform to the requirements of the final Policy
Directive. SBA's Administrator or designee must review and concur with
any regulatory provisions that pertain to areas of SBA responsibility.
SBA's Office of Technology coordinates such regulatory actions.
4. Personnel Concerned. This Policy Directive serves as guidance
for all federal government personnel who are involved in the
administration of the STTR Program, issuance and management of Funding
Agreements or contracts pursuant to the STTR Program, and the
establishment of goals for small business concerns in research or
research and development acquisition or grants.
5. Originator. SBA's Office of Technology.
6. Date. The policy directive is effective on the date of
publication in the Federal Register. Agencies are not required to, but
can amend, an STTR solicitation that was issued on or before the date
of this Policy Directive to address these new requirements. Further,
public comment may be submitted for 60 days following publication in
the Federal Register.
Authorized by:
Sean Greene,
Associate Administrator for the Office of Investment and Innovation
Small Business Administration.
Dated: July 19, 2012.
Karen G. Mills,
Administrator.
1. Purpose
2. Summary of Statutory Provisions
3. Definitions
4. Competitively Phased Structure of the Program
5. Program Solicitation Process
6. Eligibility and Application (Proposal) Requirements
7. STTR Funding Process
8. Terms of Agreement for STTR Awards
9. Responsibilities of STTR Participating Agencies and Departments
10. Agency and STTR Applicant/Awardee Reporting Requirements
11. Responsibilities of SBA
12. Supporting Programs and Initiatives
Appendix I: Instructions for STTR Program Solicitation Preparation
Appendix II: Codes for Tech-Net Database
Appendix III: Solicitations Database
Appendix IV: Company Registry Database
Appendix V: Application Information Database
Appendix VI: Award Information Database
Appendix VII: Commercialization Database
Appendix VIII: Annual Report Database
Appendix IX: Performance Areas, Metrics and Goals
Appendix X: National Academy of Sciences Study
1. Purpose
(a) Section 9(p) of the Small Business Act (Act) requires that the
Small Business Administration (SBA) issue an STTR Program Policy
Directive for the general conduct of the STTR Program within the
Federal Government.
(b) This Policy Directive fulfills SBA's statutory obligation to
provide guidance to the participating Federal agencies for the general
operation of the STTR Program. Additional or modified instructions may
be issued by the SBA as a result of public comment or experience. With
this directive, SBA fulfills the statutory requirement to simplify and
standardize the program proposal, selection, contracting, compliance,
and audit procedures for the STTR program to the extent practicable,
while allowing the STTR agencies flexibility in the operation of their
individual STTR Program. Wherever possible, SBA has attempted to reduce
the paperwork and regulatory compliance burden on SBCs applying to and
participating in the STTR program, while still meeting the statutory
reporting and data collection requirements.
(c) The statutory purpose of the STTR Program is to stimulate a
partnership of
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ideas and technologies between innovative small business concerns
(SBCs) and Research Institutions through Federally-funded research or
research and development (R/R&D). By providing awards to SBCs for
cooperative R/R&D efforts with Research Institutions, the STTR Program
assists the small business and research communities by commercializing
innovative technologies.
(d) Federal agencies participating in the STTR Program (STTR
agencies) are obligated to follow the guidance provided by this Policy
Directive. Each agency is required to review its rules, policies, and
guidance on the STTR Program to ensure consistency with this Policy
Directive and to make any necessary changes in accordance with each
agency's normal procedures. This is consistent with the statutory
authority provided to the SBA concerning the STTR Program.
2. Summary of Statutory Provisions
(a) The Small Business Technology Transfer Program is codified at
section 9 of the Small Business Act, 15 U.S.C. Sec. 638. The STTR
Program is authorized until September 30, 2017, or as otherwise
provided in law subsequent to that date.
(b) Each Federal agency with an extramural budget for R/R&D in
excess of $1,000,000,000 must participate in the STTR Program and
reserve the following minimum percentages of their R/R&D budgets for
awards to small business concerns for R/R&D:
(1) Not less than 0.3% of such budget in each of fiscal years 2004
through 2011;
(2) not less than 0.35% of such budget in fiscal years 2012 and
2013;
(3) not less than 0.40% of such budget in fiscal years 2014 and
2015; and
(4) not less than 0.45% of such budget in fiscal year 2016 and each
fiscal year after.
A Federal agency may exceed these minimum percentages.
(c) In general, each STTR agency must make these awards for R/R&D
through the following uniform, three-phase process:
(1) Phase I awards to determine, insofar as possible, the
scientific and technical merit and feasibility of ideas that appear to
have commercial potential.
(2) Phase II awards to further develop work from Phase I that meets
particular program needs and exhibits potential for commercial
application.
(3) Phase III awards where commercial applications of STTR-funded
R/R&D are funded by non-Federal sources of capital; or where products,
services or further research intended for use by the Federal Government
are funded by follow-on non-STTR Federal Funding Agreements.
(d) STTR agencies must report to SBA on the calculation of the
agency's extramural budget within four months of enactment of each
agency's annual Appropriations Act.
(e) The Act explains that agencies are authorized and directed to
cooperate with SBA in order to carry out and accomplish the purpose of
the STTR Program. As a result, each STTR agency shall provide
information to SBA in order for SBA to monitor and analyze each
agency's STTR Program and to report these findings annually to the
Senate Committee on Small Business and Entrepreneurship and to the
House Committees on Science and Small Business. For more information on
the agency's reporting requirements, including the frequency for
specific reporting requirements, see section 10 of the Policy
Directive.
(f) SBA establishes databases to collect and maintain, in a common
format, information that is necessary to assist SBCs and assess the
STTR Program.
(g) SBA implements the Federal and State Technology (FAST)
Partnership Program to strengthen the technological competitiveness of
SBCs, to the extent that FAST is authorized by law.
(h) The competition requirements of the Armed Services Procurement
Act of 1947 (10 U.S.C. 2302 et seq.) and the Federal Property and
Administrative Services Act of 1949 (41 U.S.C. 3101 et seq.) must be
read in conjunction with the procurement notice publication
requirements of section 8(e) of the Small Business Act (15 U.S.C. Sec.
637(e)). The following notice publication requirements of section 8(e)
of the Small Business Act apply to STTR agencies using contracts as an
STTR funding agreement:
(1) Any Federal executive agency intending to solicit a proposal to
award a Phase I contract for property or services valued above $25,000
must transmit a notice of the impending solicitation to the
Governmentwide point of entry (GPE) for access by interested sources.
See FAR 5.201. The GPE, located at https://www.fbo.gov, is the single
point where Government business opportunities greater than $25,000,
including synopses of proposed contract actions, solicitations, and
associated information, can be accessed electronically by the public.
In addition, an agency may not issue its solicitation for at least 15
days from the date of the publication of the GPE. The agency may not
establish a deadline for submission of proposals in response to a
solicitation earlier than 30 days after the date on which the
solicitation was issued.
(2) The contracting officer must generally make available through
the GPE those solicitations synopsized through the GPE, including
specifications and other pertinent information determined necessary by
the contracting officer. See FAR 5.102.
(3) Any executive agency awarding a contract for property or
services valued at more than $25,000 must submit a synopsis of the
award through the GPE if a subcontract is likely to result from such
contract. See FAR 5.301.
(4) The following are exemptions from the notice publication
requirements:
(i) In the case of agencies intending to solicit Phase I proposals
for contracts in excess of $25,000, the head of the agency may exempt a
particular solicitation from the notice publication requirements if
that official makes a written determination, after consulting with the
Administrator of the Office of Federal Procurement Policy and the SBA
Administrator, that it is inappropriate or unreasonable to publish a
notice before issuing a solicitation.
(ii) The STTR Phase II award process.
(iii) The STTR Phase III award process.
3. Definitions
(a) Act. The Small Business Act (15 U.S.C. 631 et seq.), as
amended.
(b) Applicant. The organizational entity that qualifies as an SBC
at all pertinent times and that submits a contract proposal or a grant
application for a funding agreement under the STTR Program.
(c) Affiliate. This term has the same meaning as set forth in 13
CFR part 121--Small Business Size Regulations, Sec. 121.103, What is
affiliation? (available at http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr;sid=03878acee7c064a02cac0d870e00ef43;rgn=div6;view=text;node=
13%3A1.0.1.1.17.1;idno=13;cc=ecfr). Further information about SBA's
affiliation rules and a guide on affiliation is available at
www.SBIR.gov and www.SBA.gov/size.
(d) Alaska Native-Serving Institution (ANSI). As defined by 20
U.S.C. 1059d, it is an institution of higher education that is an
eligible institution that at the time of application, has an enrollment
of undergraduate students that is at least 20 percent Alaska Native
students;
(e) Awardee. The organizational entity receiving an STTR Phase I,
Phase II, or Phase III award.
[[Page 46867]]
(f) Commercialization. The process of developing products,
processes, technologies, or services and the production and delivery
(whether by the originating party or others) of the products,
processes, technologies, or services for sale to or use by the Federal
government or commercial markets.
(g) Cooperative Agreement. A financial assistance mechanism used
when substantial Federal programmatic involvement with the awardee
during performance is anticipated by the issuing agency. The
Cooperative Agreement contains the responsibilities and respective
obligations of the parties.
(h) Essentially Equivalent Work. Work that is substantially the
same research, which is proposed for funding in more than one contract
proposal or grant application submitted to the same Federal agency or
submitted to two or more different Federal agencies for review and
funding consideration; work where a specific research objective and the
research design for accomplishing the objective are the same or closely
related to another proposal or award, regardless of the funding source.
(i) Extramural Budget. The sum of the total obligations for R/R&D
minus amounts obligated for R/R&D activities by employees of a Federal
agency in or through Government-owned, Government-operated facilities.
For the Agency for International Development, the ``extramural budget''
must not include amounts obligated solely for general institutional
support of international research centers or for grants to foreign
countries. For the Department of Energy, the ``extramural budget'' must
not include amounts obligated for atomic energy defense programs solely
for weapons activities or for naval reactor programs. (Also see section
7(i) of this Policy Directive for additional exemptions related to
national security.)
(j) Feasibility. The practical extent to which a project can be
performed successfully.
(k) Federal Agency. An executive agency as defined in 5 U.S.C.
Sec. 105, and a military department as defined in 5 U.S.C. 102
(Department of the Army, Department of the Navy, Department of the Air
Force), except that it does not include any agency within the
Intelligence Community as defined in Executive Order 12333, Sec.
3.4(f), or its successor orders.
(l) Federal Laboratory. As defined in 15 U.S.C. 3703, means any
laboratory, any federally funded research and development center, or
any center established under 15 U.S.C. 3705 & 3707 that is owned,
leased, or otherwise used by a Federal agency and funded by the Federal
Government, whether operated by the Government or by a contractor.
(m) Funding Agreement. Any contract, grant, or cooperative
agreement entered into between any Federal agency and any SBC for the
performance of experimental, developmental, or research work, including
products or services, funded in whole or in part by the Federal
Government.
(n) Funding Agreement Officer. A contracting officer, a grants
officer, or a cooperative agreement officer.
(o) Grant. A financial assistance mechanism providing money,
property, or both to an eligible entity to carry out an approved
project or activity. A grant is used whenever the Federal agency
anticipates no substantial programmatic involvement with the awardee
during performance.
(p) Hispanic-Serving Institutions (HSI). Pursuant to 20 U.S.C.
1101(5), a non-profit institution that has at least 25% Hispanic full-
time equivalent (FTE) enrollment, and of the Hispanic student
enrollment at least 50% are low income.
(q) Historically Black College or University (HBCU). Pursuant to 20
U.S.C. 1061(2), a black college or university that was established
prior to 1964, whose principle mission was, and is, the education of
Black Americans, and that is accredited by a nationally recognized
agency or association determined by the Secretary of Education to be a
reliable authority as to the quality of training offered or is,
according to such an agency or association is making reasonable
progress toward accreditation, with certain exceptions noted in
statute.
(r) Innovation. Something new or improved, having marketable
potential, including: (1) Development of new technologies; (2)
refinement of existing technologies; or (3) development of new
applications for existing technologies.
(s) Intellectual Property. The separate and distinct types of
intangible property that are referred to collectively as ``intellectual
property,'' including but not limited to: (1) Patents; (2) trademarks;
(3) copyrights; (4) trade secrets; (5) STTR technical data (as defined
in this section); (6) ideas; (7) designs; (8) know-how; (9) business;
(10) technical and research methods; (11) other types of intangible
business assets; (12) and all types of intangible assets either
proposed or generated by an SBC as a result of its participation in the
STTR Program.
(t) Key Individual. The principal investigator/project manager and
any other person named as a ``key'' employee in a proposal submitted in
response to a program solicitation.
(u) Joint Venture. See 13 CFR 121.103(h).
(v) Native Hawaiian-Serving Institutions (NHSI). Pursuant to 20
U.S.C. 1059(d) is an institution of higher education which is an
eligible institution under 20 U.S.C. 1058(b) at the time of
application, and has an enrollment of undergraduate students that is at
least 10 percent Native Hawaiian students.
(w) Principal Investigator/Project Manager. The one individual
designated by the applicant to provide the scientific and technical
direction to a project supported by the funding agreement.
(x) Program Solicitation. A formal solicitation for proposals
issued by a Federal agency that notifies the small business community
of its R/R&D needs and interests in broad and selected areas, as
appropriate to the agency, and requests proposals from SBCs in response
to these needs and interests. Announcements in the Federal Register or
the GPE are not considered an STTR Program solicitation.
(y) Prototype. A model of something to be further developed, which
includes designs, protocols, questionnaires, software, and devices.
(z) Research or Research and Development (R/R&D). Any activity that
is:
(1) A systematic, intensive study directed toward greater knowledge
or understanding of the subject studied;
(2) A systematic study directed specifically toward applying new
knowledge to meet a recognized need; or
(3) A systematic application of knowledge toward the production of
useful materials, devices, and systems or methods, including design,
development, and improvement of prototypes and new processes to meet
specific requirements.
(aa) Research Institution. One that has a place of business located
in the United States, which operates primarily within the United States
or which makes a significant contribution to the U.S. economy through
payment of taxes or use of American products, materials or labor, and
is:
(1) A non-profit institution as defined in section 4(5) of the
Stevenson-Wydler Technology Innovation Act of 1980 (that is, an
organization that is owned and operated exclusively for scientific or
educational purposes, no part of the net earnings of which inures to
the benefit of any private shareholder or individual) and includes non-
profit medical and surgical hospitals; or
[[Page 46868]]
(2) A Federally-funded R&D center as identified by the National
Science Foundation in accordance with the Government-wide Federal
Acquisition Regulation issued in accordance with section 35(c)(1) of
the Office of Federal Procurement Policy Act (or any successor
regulation thereto).
(bb) Small Business Concern. A concern that meets the requirements
set forth in 13 CFR 121.702 (available at http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr;sid=03878acee7c064a02cac0d870e00ef43;rgn=div8;view=text;node=
13%3A1.0.1.1.17.1.273.45;idno=13;cc=ecfr).
(cc) Socially and Economically Disadvantaged SBC (SDB). See 13 CFR
part 124, Subpart B.
(dd) Socially and Economically Disadvantaged Individual. See 13 CFR
124.103 & 121.104.
(ee) STTR Participants. Business concerns that have received STTR
awards or that have submitted STTR proposals/applications.
(ff) STTR Technical Data. All data generated during the performance
of an STTR award.
(gg) STTR Technical Data Rights. The rights an STTR awardee obtains
in data generated during the performance of any STTR Phase I, Phase II,
or Phase III award that an awardee delivers to the Government during or
upon completion of a Federally-funded project, and to which the
Government receives a license.
(hh) Subcontract. Any agreement, other than one involving an
employer employee relationship, entered into by an awardee of a funding
agreement calling for supplies or services for the performance of the
original funding agreement.
(ii) Tribal-Serving Institution (TSI). Those institutions defined
under section 532 of the Equity in Educational Land-Grants Status Act
of 1994 (7 U.S.C. 301 note), any other institution that qualified for
funding under the Tribally Controlled Community College Assistance Act
of 1978, (25 U.S.C. 1801 et seq.) which is also known as tribally
controlled colleges or universities and the Navajo Community College
Assistance Act of 1978, Public Law 95-471, Title II (25 U.S.C. 640a
note).
(jj) United States. Means the 50 states, the territories and
possessions of the Federal Government, the Commonwealth of Puerto Rico,
the District of Columbia, the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic of Palau.
(kk) Women-Owned SBC (WOSB). An SBC that is at least 51% owned by
one or more women, or in the case of any publicly owned business, at
least 51% of the stock is owned by women, and women control the
management and daily business operations.
4. Competitively Phased Structure of the Program
The STTR Program is a phased process, uniform throughout the
Federal Government, of soliciting proposals and awarding funding
agreements for R/R&D, production, services, or any combination, to meet
stated agency needs or missions. Agencies must issue STTR awards
pursuant to competitive and merit-based selection procedures. Agencies
may not use investment of venture capital or investment from hedge
funds or private equity firms as a criterion for an STTR award.
Although matching funds are not required for Phase I or Phase II
awards, agencies may require a small business to have matching funds
for certain special awards (e.g., to reduce the gap between a Phase II
and Phase III award). In order to stimulate and foster scientific and
technological innovation, including increasing commercialization of
Federal R/R&D, the program must follow a uniform competitive process of
the following three phases, unless an exception applies:
(a) Phase I. Phase I involves a solicitation of contract proposals
or grant applications to conduct feasibility-related experimental or
theoretical R/R&D related to described agency requirements. These
requirements, as defined by agency topics contained in a solicitation,
may be general or narrow in scope, depending on the needs of the
agency. The object of this phase is to determine the scientific and
technical merit and feasibility of the proposed effort and the quality
of performance of the SBC with a relatively small agency investment
before consideration of further Federal support in Phase II.
(l) Several different proposed solutions to a given problem may be
funded.
(2) Proposals will be evaluated on a competitive basis. Agency
criteria used to evaluate STTR proposals must give consideration to the
scientific and technical merit and feasibility of the proposal along
with its potential for commercialization. Considerations may also
include program balance with respect to market or technological risk or
critical agency requirements.
(3) Agency benchmarks for progress towards commercialization.
Agencies must determine whether an applicant has met the agency's
benchmark requirements for progress towards commercialization. For
Phase I eligibility purposes, agencies will establish a threshold for
the application of these benchmarks where they are applied only to
Phase I applicants that have received more than 20 Phase I awards over
the prior 5, 10 or 15 fiscal years (excluding the most recently
completed fiscal year) or has received more than 15 Phase II awards
over that period (excluding the most recently completed two fiscal
years). Agencies must base these benchmarks on the SBC's STTR awards
across all STTR agencies.
(i) Agencies must apply two benchmark rates addressing an
applicant's progress towards commercialization--the Phase I-Phase II
Transition Rate and the Commercialization Rate.
(A) The Phase I-Phase II Transition Rate benchmark sets the minimum
required number of Phase II awards the applicant must have received for
a given number of Phase I awards during a specified period.
(B) The Commercialization Rate benchmark sets the minimum Phase III
commercialization results a Phase I applicant must have realized from
its prior Phase II awards.
(ii) An applicant that does not meet either of these benchmarks at
the time it submits its application to the agency is not eligible for
that particular STTR Phase I award and any other new STTR Phase I
awards (and any Phase II awards issued pursuant to paragraph (b)(1)(ii)
below) of that agency for a period of one year from the date of the
proposal or application submission. The agency must provide written
notification of its determination and the one year restriction on Phase
I awards to the applicant and to SBA. See section 9(b) for further
information about how an agency establishes these benchmarks.
(iii) Establishing the Phase I-Phase II Transition Rate. Beginning
October 1, 2012, each agency must establish an SBA-approved Phase I-
Phase II Transition Rate benchmark. The agency must report any
subsequent change in the benchmark rate to SBA for approval.
(A) The benchmark will establish the number of Phase II awards a
small business concern must have received for a given number of Phase I
awards over the prior 5, 10, or 15 fiscal years, excluding the most
recently completed fiscal year. For example, if a SBC submits its
application on January 2012, the agency may require that the SBC have
received at least one Phase II award for every 10 Phase I awards it
received during fiscal years 2001 through 2010.
(B) Agencies must set the benchmark as appropriate for their
programs and industry sectors. When setting this benchmark, agencies
should consider
[[Page 46869]]
that Phase I is designed and intended to explore high-risk, early-stage
research and, as a result, a significant share of Phase I awards will
not result in a Phase II award.
(iv) Establishing the Commercialization Rate. Beginning October 1,
2013, each agency must establish an SBA-approved Commercialization Rate
benchmark that establishes the level of Phase III commercialization
results a SBC must have received from work it performed under prior
Phase II awards, over the prior 5, 10 or 15 fiscal years, excluding the
most recently completed two fiscal years. The agency must report any
subsequent change in the benchmark rate to SBA for approval. Agencies
may define this benchmark:
(A) In financial terms, such as by using the ratio of the dollar
value of revenues and additional investment resulting from prior Phase
II awards relative to the dollar value of the Phase II awards received
over the prior 5, 10 or 15 fiscal years, excluding the most recently
completed two fiscal years; or
(B) In terms of the share of Phase II awards that have resulted in
the introduction of a product to the market relative to the number of
Phase II awards received over the prior 5, 10, or 15 fiscal years,
excluding the most recently completed two fiscal years; or
(C) By other means such as using a commercialization scoring system
that rates awardees on their past commercialization success.
(v) Agencies must submit these benchmarks to SBA for approval. SBA
will publish the benchmark and seek public comment. The benchmark will
become effective when SBA publishes the final, approved benchmark on
www.SBIR.gov. If SBA approves a benchmark for a fiscal year, then the
agency must report any subsequent change in the benchmark to SBA for
approval.
(vi) SBA will maintain a system that records all Phase I and Phase
II awards and calculates the Phase I-II Transition Rates for all Phase
I awardees and the Commercialization Rates for all Phase II awardees.
The small business will then be required to provide this information to
the agency as part of its application.
(vii) If the applicant meets these benchmarks, the agency must
still evaluate the commercial potential of the specific application and
can base this evaluation on agency-specific criteria.
(4) Agencies may require the submission of a Phase II proposal as a
deliverable item under Phase I.
(b) Phase II.
(1) The object of Phase II is to continue the R/R&D effort from the
completed Phase I. Unless the exception set forth in paragraph (i)
applies, only STTR Phase I awardees are eligible to participate in
Phases II and III. This includes those awardees identified via a
``novated'' or ``successor in interest'' or similarly-revised funding
agreement, or those that have reorganized with the same key staff,
regardless of whether they have been assigned a different tax
identification number. Agencies may require the original awardee to
relinquish its rights and interests in an STTR project in favor of
another applicant as a condition for that applicant's eligibility to
participate in the STTR Program for that project.
(i) A Federal agency may issue an STTR Phase II award to an SBIR
Phase I awardee to further develop the work performed under the SBIR
Phase I award. The agency must base its decision upon the results of
work performed under the Phase I award and the scientific and technical
merit, and commercial potential of the Phase II proposal. The SBIR
Phase I awardee must meet the eligibility and program requirements of
the STTR Program in order to receive the STTR Phase II award.
(2) Funding must be based upon the results of work performed under
a Phase I award and the scientific and technical merit, feasibility and
commercial potential of the Phase II proposal. Phase II awards may not
necessarily complete the total research and development that may be
required to satisfy commercial or Federal needs beyond the STTR
Program. The Phase II funding agreement with the awardee may, at the
discretion of the awarding agency, establish the procedures applicable
to Phase III agreements. The Government is not obligated to fund any
specific Phase II proposal.
(3) The STTR Phase II award decision process requires, among other
things, consideration of a proposal's commercial potential. Commercial
potential includes the potential to transition the technology to
private sector applications, Government applications, or Government
contractor applications. Commercial potential in a Phase II proposal
may be evidenced by:
(i) The SBC's record of successfully commercializing STTR or other
research;
(ii) The existence of Phase II funding commitments from private
sector or other non-STTR funding sources;
(iii) The existence of Phase III, follow-on commitments for the
subject of the research; and
(iv) Other indicators of commercial potential of the idea.
(4) Agencies may not use an invitation, pre-screening, or pre-
selection process for eligibility for Phase II. Agencies must note in
each solicitation that all Phase I awardees may apply for a Phase II
award and provide guidance on the procedure for doing so.
(5) A Phase II awardee may receive one additional, sequential Phase
II award to continue the work of an initial Phase II award.
(6) Agencies may issue Phase II awards for testing and evaluation
of products, services, or technologies for use in technical weapons
systems.
(c) Phase III. STTR Phase III refers to work that derives from,
extends, or completes an effort made under prior STTR funding
agreements, but is funded by sources other than the STTR Program. Phase
III work is typically oriented towards commercialization of STTR
research or technology.
(l) Each of the following types of activity constitutes STTR Phase
III work:
(i) Commercial application (including testing and evaluation of
products, services or technologies for use in technical or weapons
systems) of STTR-funded R/R&D financed by non-Federal sources of
capital (Note: The guidance in this Policy Directive regarding STTR
Phase III pertains to the non-STTR federally-funded work described in
(ii) and (iii) below. It does not address private agreements an STTR
firm may make in the commercialization of its technology, except for a
subcontract to a Federal contract that may be a Phase III);
(ii) STTR-derived products or services intended for use by the
Federal Government, funded by non-STTR sources of Federal funding;
(iii) continuation of R/R&D that has been competitively selected
using peer review or merit-based selection procedures, funded by non-
STTR Federal funding sources.
(2) A Phase III award is, by its nature, an STTR award, has STTR
status, and must be accorded STTR data rights. If an STTR awardee
receives a funding agreement (whether competed, sole sourced or a
subcontract) for work that derives from, extends, or completes efforts
made under prior STTR funding agreements, then the funding agreement
for the new work must have all STTR Phase III status and data rights.
(3) The competition for STTR Phase I and Phase II awards satisfies
any competition requirement of the Armed Services Procurement Act, the
Federal Property and Administrative Services Act, and the Competition
in Contracting Act. Therefore, an agency that wishes to
[[Page 46870]]
fund an STTR Phase III project is not required to conduct another
competition in order to satisfy those statutory provisions. As a
result, in conducting actions relative to a Phase III STTR award, it is
sufficient to state for purposes of a Justification and Approval
pursuant to FAR 6.302-5, that the project is an STTR Phase III award
that is derived from, extends, or completes efforts performed under
prior STTR funding agreements and is authorized under 10 U.S.C.
2304(b)(2) or 41 U.S.C. 3303(b).
(4) Phase III work may be for products, production, services, R/
R&D, or any combination thereof.
(5) There is no limit on the number, duration, type, or dollar
value of Phase III awards made to a business concern. There is no limit
on the time that may elapse between a Phase I or Phase II award and
Phase III award, or between a Phase III award and any subsequent Phase
III award. A Federal agency may enter into a Phase III STTR agreement
at any time with a Phase II awardee. Similarly, a Federal agency may
enter into a Phase III STTR agreement at any time with a Phase I
awardee. A subcontract to a Federally-funded prime contract may be a
Phase III award.
(6) The small business size limits for Phase I and Phase II awards
do not apply to Phase III awards.
(7) To the greatest extent practicable, agencies or their
Government-owned, contractor-operated facilities, Federally-funded
research and development centers, or Government prime contractors that
pursue R/R&D or production developed under the STTR Program, shall
issue Phase III awards relating to technology, including sole source
awards, to the STTR awardee that developed the technology. Agencies
shall document how they provided this preference to the STTR awardee
that developed the technology. In fact, the Act requires that SBA
report all instances in which an agency pursues research, development,
or production of a technology developed by an STTR awardee, with a
business concern or entity other than the one that developed the STTR
technology. (See section 4(c)(8) immediately below for agency
notification to SBA prior to award of such a funding agreement and
section 10(h)(4) regarding agency reporting of the issuance of such
award.) SBA will report such instances, including those discovered
independently by SBA, to Congress.
(8) Agencies, their Government-owned, contractor-operated
facilities, or Federally-funded research and development centers, that
intend to pursue R/R&D, production, services or any combination thereof
of a technology developed under an STTR award, with an entity other
than that STTR awardee, must notify SBA in writing prior to such an
award. This notification must include, at a minimum:
(i) The reasons why the follow-on funding agreement with the STTR
awardee is not practicable;
(ii) the identity of the entity with which the agency intends to
make an award to perform research, development, or production; and
(iii) a description of the type of funding award under which the
research, development, or production will be obtained. SBA may appeal
an agency decision to pursue Phase III work with a business concern
other than the STTR awardee that developed the technology to the head
of the contracting activity. If SBA decides to appeal the decision, it
must file a notice of intent to appeal with the funding agreement
officer no later than 5 business days after receiving the agency's
notice of intent to make award. Upon receipt of SBA's notice of intent
to appeal, the funding agreement officer must suspend further action on
the acquisition until the head of the contracting activity issues a
written decision on the appeal. The funding agreement officer may
proceed with award if he or she determines in writing that the award
must be made to protect the public interest. The funding agreement
officer must include a statement of the facts justifying that
determination and provide a copy of its determination to SBA. Within 30
days of receiving SBA's appeal, the head of the contracting activity
must render a written decision setting forth the basis of his or her
determination. During this period, the agency should consult with SBA
and review any case-specific information SBA believes to be pertinent.
5. Program Solicitation Process
(a) At least annually, each agency must issue a program
solicitation that sets forth a substantial number of R/R&D topics and
subtopic areas consistent with stated agency needs or missions.
Agencies may decide to issue joint solicitations. Both the list of
topics and the description of the topics and subtopics must be
sufficiently comprehensive to provide a wide range of opportunities for
SBCs to participate in the agency R&D programs. Topics and subtopics
must emphasize the need for proposals with advanced concepts to meet
specific agency R/R&D needs. Each topic and subtopic must describe the
needs in sufficient detail to assist in providing on-target responses,
but cannot involve detailed specifications to prescribed solutions of
the problems.
(b) The Act requires issuance of STTR Phase I Program solicitations
in accordance with a Master Schedule coordinated between SBA and the
STTR agency. The SBA office responsible for coordination is: Office of
Technology, U.S. Small Business Administration, 409 Third Street SW.,
Washington, DC 20416. Phone: (202) 205-6450. Fax: (202) 205-7754.
Email: [email protected]. Internet site: www.SBIR.gov.
(c) For maximum participation by interested SBCs, it is important
that the planning, scheduling and coordination of agency program
solicitation release dates be completed as early as practicable to
coincide with the commencement of the fiscal year on October 1.
Bunching of agency program solicitation release and closing dates may
prohibit SBCs from preparation and timely submission of proposals for
more than one STTR project. SBA's coordination of agency schedules
minimizes the bunching of proposed release and closing dates. STTR
agencies may elect to publish multiple program solicitations within a
given fiscal year to facilitate in-house agency proposal review and
evaluation scheduling.
(d) SBA will post an electronic Master Schedule of release dates of
program solicitations with links to Internet Web sites of agency
solicitations. For more information see section 10(g).
(e) Simplified, Standardized, and Timely STTR Program Solicitations
(1) The Act requires ``simplified, standardized and timely STTR
solicitations'' and for STTR agencies to use a ``uniform process''
minimizing the regulatory burden for SBCs. Therefore, the instructions
in Appendix I to this Policy Directive purposely depart from normal
Government solicitation format and requirements.
(2) Agencies must provide SBA's Office of Technology with an
electronic version of each solicitation and any modifications no later
than 5 days after the date of release of the solicitation or
modification to the public. Agencies that issue program solicitations
in electronic format only must provide the Internet site at which the
program solicitation may be accessed no later than the date of posting
at that site of the program solicitation.
(3) SBA does not intend that the STTR Program solicitation replace
or be used as a substitute for unsolicited proposals for R/R&D awards
to SBCs. In addition, the STTR Program solicitation procedures do not
prohibit other agency R/R&D actions with SBCs that are
[[Page 46871]]
carried on in accordance with applicable statutory or regulatory
authorizations.
6. Eligibility and Application (Proposal) Requirements
(a) Eligibility Requirements:
(1) To receive STTR funds, each awardee of a STTR Phase I or Phase
II award must qualify as an SBC at the time of award and at any other
time set forth in SBA's regulations at 13 CFR 121.701-121.705. Each
Phase I and Phase II awardee must submit a certification stating that
it meets the size, ownership and other requirements of the STTR Program
at the time of award, and at any other time set forth in SBA's
regulations at 13 CFR 121.701-705.
(2) NIH, Department of Energy and National Science Foundation may
award not more than 25% of the agency's SBIR funds to SBCs that are
owned in majority part by multiple venture capital operating companies,
hedge funds, or private equity firms through competitive, merit-based
procedures that are open to all eligible small business concerns. All
other SBIR agencies may award not more than 15% of the agency's SBIR
funds to such SBCs. At their discretion, if the agency has not exceeded
these maximum statutory percentages, the agency may make STTR awards to
small businesses that are majority-owned by multiple VCOCs, hedge funds
or private equity firms through competitive, merit-based procedures
that are open to all eligible small business concerns under the STTR
Program and using STTR funds. If an agency exceeds this maximum
statutory percentage of awards, it must transfer this excess amount
from its non-SBIR and non-STTR funds to the SBIR funds.
(i) Before permitting participation in the STTR program by SBCs
that are owned in majority part by multiple venture capital operating
companies, hedge funds, or private equity firms:
(A) SBA's regulations at 13 CFR part 121 must set forth the
eligibility criteria for STTR applicants that are owned in majority
part by multiple venture capital operating companies, hedge funds, or
private equity firms.
(B) The STTR agency must submit a written determination at least 30
calendar days before it begins making awards to SBCs that are owned in
majority part by multiple venture capital operating companies, hedge
funds, or private equity firms to SBA, the Senate Committee on Small
Business and Entrepreneurship, the House Committee on Small Business
and the House Committee on Science, Space, and Technology. The
determination must be made by the head of the Federal agency or
designee and explain how awards to SBCs that are owned in majority part
by multiple venture capital operating companies, hedge funds, or
private equity firms will:
(I) Induce additional venture capital, hedge fund, or private
equity firm funding of small business innovations;
(II) substantially contribute to the mission of the Federal agency;
(III) address a demonstrated need for public research; and
(IV) otherwise fulfill the capital needs of small business concerns
for additional financing for STTR projects.
(ii) The SBC that is majority-owned by multiple venture capital
operating companies, hedge funds, or private equity firms must register
with SBA in the Company Registry Database, at www.SBIR.gov, prior to
the date it submits an application for an STTR award.
(iii) The SBC that is majority-owned by multiple venture capital
operating companies, hedge funds, or private equity firms must submit a
certification with its proposal stating, among other things, that it
has registered with SBA.
(iv) Any agency that makes an award under this paragraph during a
fiscal year shall collect and submit to SBA data relating to the number
and dollar amount of Phase I awards, Phase II awards, and any other
category of awards by the Federal agency under the STTR program during
that fiscal year. See section 10 of the directive for the specific
reporting requirements.
(3) For both Phase I and Phase II, not less than 40 percent of the
R/R&D work must be performed by the SBC, and not less than 30 percent
of the R/R&D work must be performed by the single, partnering Research
Institution. Occasionally, deviations from these requirements may
occur, and must be approved in writing by the funding agreement officer
after consultation with the agency STTR Program Manager/Coordinator. An
agency can measure this research or analytical effort using the total
contract dollars or labor hours, and must explain to the small business
in the solicitation how it will be measured.
(4) For both Phase I and Phase II, the primary employment of the
principal investigator must be with the SBC or the research institution
at the time of award and during the conduct of the proposed project.
Primary employment means that more than one-half of the principal
investigator's time is spent in the employ of the SBC or the research
institution. This precludes full-time employment with another
organization aside from the SBC or the research institution.
Occasionally, deviations from this requirement may occur, and must be
approved in writing by the funding agreement officer after consultation
with the agency STTR Program Manager/Coordinator. An SBC may replace
the principal investigator on an STTR Phase I or Phase II award,
subject to approval in writing by the funding agreement officer. For
purposes of the STTR Program, personnel obtained through a Professional
Employer Organization or other similar personnel leasing company may be
considered employees of the awardee. This is consistent with SBA's size
regulations, 13 CFR 121.106--Small Business Size Regulations.
(5) For both Phase I and Phase II, the R/R&D work must be performed
in the United States. However, based on a rare and unique circumstance,
agencies may approve a particular portion of the R/R&D work to be
performed or obtained in a country outside of the United States, for
example, if a supply or material or other item or project requirement
is not available in the United States. The funding agreement officer
must approve each such specific condition in writing.
(b) Proposal (Application) Requirements.
(1) Registration and Certifications for Proposal and Award.
(i) Each Phase I and Phase II applicant that is majority-owned by
multiple venture capital operating companies, hedge funds, or private
equity firms must register with SBA in the Company Registry Database at
www.SBIR.gov and submit a certification with its STTR application to
the STTR agency (see Appendix I for the required text of the
certification).
(ii) Each applicant must register in SBA's Company Registry
Database (see Appendix IV) and submit a .pdf document of the
registration with its application if the agency is otherwise unable to
obtain this information via Tech-Net. The agency will notify the
applicants in the STTR solicitation as to whether it must submit a .pdf
document with the application.
(iii) Agencies may request the STTR applicant to submit a
certification at the time of submission of the application or offer,
which requires the applicant to state that it intends to meet the size,
ownership and other requirements of the STTR Program at the time of
award of the funding agreement, if recommended for award. See Appendix
I for the required text of the certification.
[[Page 46872]]
(2) Commercialization Plan. A succinct commercialization plan must
be included with each proposal for an STTR Phase II award moving toward
commercialization. Elements of a commercialization plan will include
the following, as applicable:
(i) Company information: Focused objectives/core competencies;
specialization area(s); products with significant sales; and history of
previous Federal and non-Federal funding, regulatory experience, and
subsequent commercialization.
(ii) Customer and Competition: Clear description of key technology
objectives, current competition, and advantages compared to competing
products or services; description of hurdles to acceptance of the
innovation.
(iii) Market: Milestones, target dates, analyses of market size,
and estimated market share after first year sales and after 5 years;
explanation of plan to obtain market share.
(iv) Intellectual Property: Patent status, technology lead, trade
secrets or other demonstration of a plan to achieve sufficient
protection to realize the commercialization stage and attain at least a
temporal competitive advantage.
(v) Financing: Plans for securing necessary funding in Phase III.
(vi) Assistance and mentoring: Plans for securing needed technical
or business assistance through mentoring, partnering, or through
arrangements with state assistance programs, SBDCs, Federally-funded
research laboratories, Manufacturing Extension Partnership centers, or
other assistance providers.
(3) Data Collection: Each Phase I and II applicant will be required
to provide information in www.SBIR.gov (see Appendix IV) as well as the
other information required by Appendices V-VI to the agency or
www.SBIR.gov. Each SBC applying for a Phase II award is required to
update the appropriate information in the database for any of its prior
Phase II awards (see Appendix VI).
7. STTR Funding Process
Because the Act requires a ``simplified, standardized funding
process,'' specific attention must be given to the following areas of
STTR Program administration:
(a) Timely Receipt of Proposals. Program solicitations must
establish proposal submission dates for Phase I and may establish
proposal submission dates for Phase II. However, agencies may also
negotiate mutually acceptable Phase II proposal submission dates with
individual Phase I awardees.
(b) Review of STTR Proposals. SBA encourages STTR agencies to use
their routine review processes for STTR proposals whether internal or
external evaluation is used. A more limited review process may be used
for Phase I due to the larger number of proposals anticipated. Where
appropriate, ``peer'' reviews external to the agency are authorized by
the Act. SBA cautions STTR agencies that all review procedures must be
designed to minimize any possible conflict of interest as it pertains
to applicant proprietary data. The standardized STTR solicitation
advises potential applicants that proposals may be subject to an
established external review process and that the applicant may include
company designated proprietary information in its proposal.
(c) Selection of Awardees.
(1) Time period for decision on proposals.
(i) The National Institutes of Health (NIH) and the National
Science Foundation (NSF) must issue a notice to an applicant for each
proposal submitted stating whether it was recommended or not for an
award no more than one year after the closing date of the solicitation.
NIH and NSF agencies should also issue the award no more than 15 months
after the closing date of the solicitation. Pursuant to paragraph (iii)
below, NIH and NSF are encouraged to reduce these timeframes.
(ii) All other agencies must issue a notice to an applicant for
each proposal submitted stating whether it was recommended or not for
an award no more than 90 calendar days after the closing date of the
solicitation. Agencies should issue the award no more than 180 calendar
days after the closing date of the solicitation.
(iii) Agencies are encouraged to develop programs or measures to
reduce the time periods between the close of an STTR Phase I
solicitation/receipt of a Phase II application and notification to the
applicant as well as issuance of the STTR Phase I and Phase II awards.
As appropriate, agencies should adopt accelerated proposal, evaluation,
and selection procedures designed to address the gap in funding these
competitive awards to meet or reduce the timeframes set forth above.
With respect to Phase II awards, SBA recognizes that Phase II
arrangements between the agency and applicant may require more detailed
negotiation to establish terms acceptable to both parties; however,
agencies must not sacrifice the R/R&D momentum created under Phase I by
engaging in unnecessarily protracted Phase II proceedings.
(iv) Request for Waiver.
(A) If the agency determines that it requires additional time
between the solicitation closing date and notification of
recommendation for award, it must submit a written request for an
extension to SBA. The written request must specify the number of
additional calendar days needed to issue the notice for a specific
applicant and the reasons for the extension. If an agency believes it
will not meet the timeframes for an entire solicitation, the request
for an extension must state how many awards will not meet the statutory
timeframes, as well as the number of additional calendar days needed to
issue the notice and the reasons for the extension. The written request
must be submitted to the SBA at least 10 business days prior to when
the agency must issue its notice to the applicant. Agencies must send
their written request to: Office of Technology, U.S. Small Business
Administration, 409 Third Street SW., Washington, DC 20416. Phone:
(202) 205-6450. Fax: (202) 205-7754. Email: [email protected].
(B) SBA will respond to the request for an extension within 5
business days, as practicable. SBA may authorize an agency to issue the
notice up to 90 calendar days after the timeframes set forth in
paragraphs (c)(1)(i) and (ii).
(C) Even if SBA grants an extension of time, the STTR agency is
required to develop programs or measures to reduce the timeframe
between the close of an SBIR Phase I solicitation/receipt of a Phase II
application and notification to the applicant as well as the time to
the issuance of the Phase I and Phase II awards as set forth in
paragraph (c)(1)(3) above.
(D) If an STTR agency does not receive an extension of time, it may
still proceed with the award to the small business.
(2) Standardized solicitation.
(i) The standardized STTR Program solicitation must advise Phase I
applicants that additional information may be requested by the awarding
agency to evidence applicant responsibility for project completion and
advise applicants of the proposal evaluation criteria for Phase I and
Phase II.
(ii) The STTR agency will provide information to each Phase I
awardee considered for a Phase II award regarding Phase II proposal
submissions, reviews, and selections.
(d) Essentially Equivalent Work. STTR participants often submit
duplicate or similar proposals to more than one soliciting agency when
the work projects appear to involve similar topics or requirements,
which are within the expertise and capability levels of the applicant.
However, ``essentially equivalent work'' must not be funded in
[[Page 46873]]
the STTR or other Federal programs, unless an exception to this rule
applies. Agencies must verify with the applicant that this is the case
by requiring them to certify at the time of award and during the
lifecycle of the award that essentially equivalent work has not been
funded by another Federal agency.
(e) Management of the STTR Project. The SBC, and not the single,
partnering Research Institution, is to provide satisfactory evidence
that it will exercise management direction and control of the
performance of the STTR funding agreement. Regardless of the proportion
of the work or funding allocated to each of the performers under the
funding agreement, the SBC is to be the primary party with overall
responsibility for performance of the project. All agreements between
the SBC and the Research Institution cooperating in the STTR funding
agreement, or any business plans reflecting agreements and
responsibilities between the parties during performance of STTR Phase I
or Phase II funding agreement, or for the commercialization of the
resulting technology, should reflect the controlling position of the
SBC.
(f) Cost Sharing. Cost sharing can serve the mutual interests of
the STTR agencies and certain STTR awardees by assuring the efficient
use of available resources. However, cost sharing on STTR projects is
not required, although it may be encouraged. Therefore, cost sharing
cannot be an evaluation factor in the review of proposals. The
standardized STTR Program solicitation (Appendix I) will provide
information to prospective STTR applicants concerning cost sharing.
(g) Payment Schedules and Cost Principles.
(1) STTR awardees may be paid under an applicable, authorized
progress payment procedure or in accordance with a negotiated/
definitive price and payment schedule. Advance payments are optional
and may be made under appropriate law. In all cases, agencies must make
payment to recipients under STTR funding agreements in full, subject to
audit, on or before the last day of the 12-month period beginning on
the date of completion of the funding agreement requirements.
(2) All STTR funding agreements must use, as appropriate, current
cost principles and procedures authorized for use by the STTR agencies.
At the time of award, agencies must inform each STTR awardee, to the
extent possible, of the applicable Federal regulations and procedures
that refer to the costs that, generally, are allowable under funding
agreements.
(3) Agencies must, to the extent possible, attempt to shorten the
amount of time between the notice of an award under the STTR Program
and the subsequent release of funding with respect to the award.
(h) Funding Agreement Types and Fee or Profit. Statutory
requirements for uniformity and standardization require consistency in
application of STTR Program provisions among STTR agencies. However,
consistency must allow for flexibility by the various agencies in
missions and needs as well as the wide variance in funds required to be
devoted to STTR Programs in the agencies. The following instructions
meet all of these requirements:
(1) Funding Agreement. The type of funding agreement (contract,
grant, or cooperative agreement) is determined by the awarding agency,
but must be consistent with 31 U.S.C. 6301-6308. Contracting agencies
may issue STTR awards as fixed price contracts (including firm fixed
price, fixed price incentive or fixed price level of effort contracts)
or cost type contracts, consistent with the Federal Acquisition
Regulations and agency supplemental acquisition regulations. In some
cases, small businesses seek progress payments, which may be
appropriate under fixed-price R&D contracts and are a form of contract
financing for firm-fixed-price contracts. However, for certain
agencies, in order to qualify for progress payments or an incentive
type contract, the small business's accounting system would have to be
audited, which can delay award, unless the contractor has an already
approved accounting system. Therefore STTR agencies should consider
using partial payments methods or on a deliverable item basis or
consider other available options to work with the STTR awardee.
(2) Fee or Profit. Except as expressly excluded or limited by
statute, awarding agencies must provide for a reasonable fee or profit
on STTR funding agreements, consistent with normal profit margins
provided to profit-making firms for R/R&D work.
(i) Periods of Performance and Extensions.
(1) In keeping with the legislative intent to make a large number
of relatively small awards, modification of funding agreements to
extend periods of performance, to increase the scope of work, or to
increase the dollar amount should be kept to a minimum, except for
options in original Phase I or II awards.
(2) Phase I. Period of performance normally should not exceed 1
year. However, agencies may provide a longer performance period where
appropriate for a particular project.
(3) Phase II. Period of performance under Phase II is a subject of
negotiation between the awardee and the issuing agency. The duration of
Phase II normally should not exceed 2 years. However, agencies may
provide a longer performance period where appropriate for a particular
project.
(j) Dollar Value of Awards.
(1) Generally, a Phase I award (including modifications) may not
exceed $150,000 and a Phase II award (including modifications) may not
exceed $1,000,000. Agencies may issue an award that exceeds the award
guideline amounts by no more than 50%.
(2) SBA will adjust these amounts every year for inflation and will
post these inflation adjustments at the end of the fiscal year or soon
after on www.SBIR.gov. The adjusted guidelines are effective for all
solicitations issued on or after the date of the adjustment and may be
used by agencies to amend the solicitation and other program
literature. Agencies have the discretion to issue awards for less than
the guidelines.
(3) There is no dollar limit associated with Phase III STTR awards.
(4) Agencies may request a waiver to exceed the award guideline
amounts established in paragraph (j)(1) by more than 50% for a specific
topic.
(5) Agencies must submit this request for a waiver to SBA prior to
release of the solicitation, contract award, or modification to the
award for the topic. The request for a waiver must explain and provide
evidence that the limitations on award size will interfere with the
ability of the agency to fulfill its research mission through the STTR
Program; that the agency will minimize, to the maximum extent
practicable, the number of awards that exceed the guidelines by more
than 50% for the topic; and that research costs for the topic area
differ significantly from those in other areas. After review of the
agency's justification, SBA may grant the waiver for the agency to
exceed the award guidelines by more than 50% for a specific topic. SBA
will issue a decision on the request within 10 business days. The
waiver will be in effect for one fiscal year.
(6) Agencies must maintain information on all awards exceeding the
guidelines set forth in paragraph (j)(1), including the amount of the
award, a justification for exceeding the guidelines for each award, the
identity and location of the awardee, whether the awardee has received
any venture capital, hedge fund, or private equity firm investment, and
whether the awardee is majority-owned by multiple
[[Page 46874]]
VCOCs, hedge funds, or private equity firms.
(7) The award guidelines do not prevent an agency from funding STTR
projects from other (non-STTR) agency funds. Non-STTR funds used on
STTR efforts do not count toward the award guidelines set forth in
(i)(1).
(j) National Security Exemption. The Act provides for exemptions
related to the simplified standardized funding process ``* * * if
national security or intelligence functions clearly would be
jeopardized.'' This exemption should not be interpreted as a blanket
exemption or a prohibition of STTR participation for acquisitions
relating to national security or intelligence functions, except as
specifically defined under section 9(e)(2) of the Act, 15 U.S.C.
638(e)(2). Agency technology managers directing R/R&D projects under
the STTR Program, where the project subject matter may be affected by
this exemption, must first make a determination on which, if any, of
the standardized proceedings clearly place national security and
intelligence functions in jeopardy, and then proceed with an acceptable
modified process to complete the STTR action. SBA's STTR Program
monitoring activities, except where prohibited by security
considerations, must include a review of nonconforming STTR actions
justified under this public law provision.
8. Terms of Agreement Under STTR Awards
(a) Proprietary Information Contained in Proposals. The
standardized STTR Program solicitation will include provisions
requiring the confidential treatment of any proprietary information to
the extent permitted by law. Agencies will discourage SBCs from
submitting information considered proprietary unless the information is
deemed essential for proper evaluation of the proposal. The
solicitation will require that all proprietary information be
identified clearly and marked with a prescribed legend. Agencies may
elect to require SBCs to limit proprietary information to that
essential to the proposal and to have such information submitted on a
separate page or pages keyed to the text. The Government, except for
proposal review purposes, protects all proprietary information,
regardless of type, submitted in a contract proposal or grant
application for a funding agreement under the STTR Program, from
disclosure.
(b) Rights in Data Developed Under STTR Funding Agreement. The Act
provides for ``retention by an SBC of the rights to data generated by
the concern in the performance of an STTR award.''
(1) Each agency must refrain from disclosing STTR technical data
outside the Government (except reviewers) and especially to competitors
of the SBC, or from using the information to produce future technical
procurement specifications that could harm the SBC that discovered and
developed the innovation.
(2) STTR agencies must protect from disclosure and non-governmental
use all STTR technical data developed from work performed under an STTR
funding agreement for a period of not less than four years from
delivery of the last deliverable under that agreement (either Phase I,
Phase II, or Federally-funded STTR Phase III) unless, subject to
paragraph (b)(3) of this section, the agency obtains permission to
disclose such STTR technical data from the awardee or STTR applicant.
Agencies are released from obligation to protect STTR data upon
expiration of the protection period except that any such data that is
also protected and referenced under a subsequent STTR award must remain
protected through the protection period of that subsequent STTR award.
For example, if a Phase III award is issued within or after the Phase
II data rights protection period and the Phase III award refers to and
protects data developed and protected under the Phase II award, then
that data must continue to be protected through the Phase III
protection period. Agencies have discretion to adopt a protection
period longer than four years. The Government retains a royalty-free
license for Government use of any technical data delivered under an
STTR award, whether patented or not. This section does not apply to
program evaluation.
(3) STTR technical data rights apply to all STTR awards, including
subcontracts to such awards, that fall within the statutory definition
of Phase I, II, or III of the STTR Program, as described in section 4
of this Policy Directive. The scope and extent of the STTR technical
data rights applicable to Federally-funded Phase III awards is
identical to the STTR data rights applicable to Phases I and II STTR
awards. The data rights protection period lapses only:
(i) Upon expiration of the protection period applicable to the STTR
award; or
(ii) by agreement between the awardee and the agency.
(4) Agencies must insert the provisions of (b)(1), (2), and (3)
immediately above as STTR data rights clauses into all STTR Phase I,
Phase II, and Phase III awards. These data rights clauses are non-
negotiable and must not be the subject of negotiations pertaining to an
STTR Phase III award, or diminished or removed during award
administration. An agency must not, in any way, make issuance of an
STTR Phase III award conditional on data rights. If the STTR awardee
wishes to transfer its STTR data rights to the awarding agency or to a
third party, it must do so in writing under a separate agreement. A
decision by the awardee to relinquish, transfer, or modify in any way
its STTR data rights must be made without pressure or coercion by the
agency or any other party. Following issuance of an STTR Phase III
award, the awardee may enter into an agreement with the awarding agency
to transfer or modify the data rights contained in that STTR Phase III
award. Such a bilateral data rights agreement must be entered into only
after the STTR Phase III award, which includes the appropriate STTR
data rights clause, has been signed. SBA will report to the Congress
any attempt or action by an agency to condition an STTR award on data
rights, to exclude the appropriate data rights clause from the award,
or to diminish such rights.
(c) Allocation of Rights.
(1) An SBC, before receiving an STTR award, must negotiate a
written agreement between the SBC and the single, partnering Research
Institution, allocating intellectual property rights and rights, if
any, to carry out follow-on research, development, or
commercialization. The SBC must submit this agreement to the awarding
agency with the proposal. The SBC must certify in all proposals that
the agreement is satisfactory to the SBC.
(2) The awarding agency may accept an existing agreement between
the two parties if the SBC certifies its satisfaction with the
agreement, and such agreement does not conflict with the interests of
the Government. SBA will provide a model agreement that must be adopted
by the agencies and used as guidance by the SBC in the development of
an agreement with the Research Institution. The model agreement will
direct the parties to, at a minimum:
(i) State specifically the degree of responsibility, and ownership
of any product, process, or other invention or innovation resulting
from the cooperative research. The degree of responsibility shall
include responsibility for expenses and liability, and the degree of
ownership shall also include the specific rights to revenues and
profits.
(ii) State which party may obtain United States or foreign patents
or otherwise protect any inventions resulting from the cooperative
research.
[[Page 46875]]
(iii) State which party has the right to any continuation of
research, including non-STTR follow-on awards.
(3) The Government will not normally be a party to any agreement
between the SBC and the Research Institution. Nothing in the agreement
is to conflict with any provisions setting forth the respective rights
of the United States and the SBC with respect to intellectual property
rights and with respect to any right to carry out follow-on research.
(d) Title Transfer Agency-Provided Property. Under the Act, the
Government may transfer title to property, provided by the STTR agency
to the awardee or acquired by the awardee for the purpose of fulfilling
the contract, where such transfer would be more cost effective than
recovery of the property.
(e) Continued Use of Government Equipment. The Act directs that an
agency allow an STTR awardee participating in the third phase of the
STTR Program continued use, as a directed bailment, of any property
transferred by the agency to the Phase II awardee. The Phase II awardee
may use the property for a period of not less than 2 years, beginning
on the initial date of the concern's participation in the third phase
of the STTR Program.
(f) Grant Authority. The Act does not, in and of itself, convey
grant authority. Each agency must secure grant authority in accordance
with its normal procedures.
(g) Conflicts of Interest. SBA cautions STTR agencies that awards
made to SBCs owned by or employing current or previous Federal
Government employees may create conflicts of interest in violation of
FAR Part 3 and the Ethics in Government Act of 1978, as amended. Each
STTR agency should refer to the standards of conduct review procedures
currently in effect for its agency to ensure that such conflicts of
interest do not arise.
(h) American-Made Equipment and Products. Congress intends that the
awardee of a funding agreement under the STTR Program should, when
purchasing any equipment or a product with funds provided through the
funding agreement, purchase only American-made equipment and products,
to the extent possible, in keeping with the overall purposes of this
program. Each STTR agency must provide to each awardee a notice of this
requirement.
(i) Certifications After Award and During Funding Agreement
Lifecycle.
(1) A Phase I funding agreement must state that the awardee shall
submit a new certification as to whether it is in compliance with
specific STTR Program requirements at the time of final payment or
disbursement.
(2) A Phase II funding agreement must state that the awardee shall
submit a new certification as to whether it is in compliance with
specific STTR Program requirements prior to receiving more than 50% of
the total award amount and prior to final payment or disbursement.
(3) Agencies may also require additional certifications at other
points in time during the life cycle of the funding agreement, such as
at the time of each payment or disbursement.
(j) Updating SBIR.gov. Agencies must require each Phase II awardee
to update the appropriate information on the award in the
Commercialization Database upon completion of the last deliverable
under the funding agreement. In addition, the awardee is requested to
voluntarily update the appropriate information on that award in the
database annually thereafter for a minimum period of 5 years.
9. Responsibilities of STTR Agencies and Departments
(a) General Responsibilities. The Act requires each agency
participating in the STTR Program to:
(1) Unilaterally determine the categories of projects to be
included in its STTR Program, giving consideration to maintaining a
portfolio balance between exploratory projects of high technological
risk and those with greater likelihood of success. Further, to the
extent permitted by law, and in a manner consistent with the mission of
that agency and the purpose of the STTR program, each Federal agency
must:
(i) Give priority in the STTR program to manufacturing-related
research and development in accordance with Executive Order 13329. In
addition, agencies must develop an Action Plan for implementing
Executive Order 13329, which identifies activities used to give
priority in the STTR program to manufacturing-related research and
development. These activities should include the provision of
information on the Executive Order on the agency's STTR program Web
site.
(ii) Give priority to small business concerns that participate in
or conduct energy efficiency or renewable energy system research and
development projects.
(iii) Give consideration to topics that further one or more
critical technologies as identified by the National Critical
Technologies panel (or its successor) in reports required under 42
U.S.C. 6683, or the Secretary of Defense in accordance with 10 U.S.C.
2522.
(2) Release STTR solicitations in accordance with the SBA master
schedule.
(3) Unilaterally receive and evaluate proposals resulting from
program solicitations, select awardees, issue funding agreements, and
inform each awardee under such agreement, to the extent possible, of
the expenses of the awardee that will be allowable under the funding
agreement.
(4) Require a succinct commercialization plan with each proposal
submitted for a Phase II award.
(5) Collect and maintain information from applicants and awardees
and provide it to SBA to develop and maintain the database, as
identified in section 11(e) of this Policy Directive.
(6) Administer its own STTR funding agreements or delegate such
administration to another agency.
(7) Include provisions in each STTR funding agreement setting forth
the respective rights of the United States and the awardee with respect
to intellectual property rights and with respect to any right to carry
out follow-on research.
(8) Ensure that the rights in data developed under each Federally-
funded STTR Phase I, Phase II, and Phase III award are protected
properly.
(9) Make payments to awardees of STTR funding agreements on the
basis of progress toward or completion of the funding agreement
requirements and in all cases make payment to awardees under such
agreements in full, subject to audit, on or before the last day of the
12-month period beginning on the date of completion of such
requirements.
(10) Provide an annual report on the STTR Program to SBA, as well
as other information concerning the STTR Program. See section 10 of
this Policy Directive for further information on the agency's reporting
requirements, including the frequency for specific reporting
requirements.
(11) Include in its annual performance plan required by 31 U.S.C.
1115(a) and (b) a section on its STTR Program, and submit such section
to the Senate Committee on Small Business and Entrepreneurship and to
the House Committees on Science, Space and Technology and Small
Business.
(12) Establish the agency's benchmarks for progress towards
commercialization. See section 4(a)(3) of the directive for further
information.
(13) Adopt the model agreement to be developed by SBA for use in
the STTR Program that allocates between SBCs and Research Institutions
intellectual property rights and rights, if any, to carry out follow-on
research, development, or commercialization.
[[Page 46876]]
(14) Develop, in consultation with the Office of Federal
Procurement Policy and the Office of Government Ethics, procedures to
ensure that Federally-funded research and development centers that
participate in STTR agreements:
(i) Are free from organizational conflicts of interests relative to
the STTR Program;
(ii) Do not use privileged information gained through work
performed for an STTR agency or private access to STTR agency personnel
in the development of an STTR proposal; and
(iii) Use outside peer review as appropriate.
(15) Implement an outreach program to Research Institutions and
SBCs for the purpose of enhancing its STTR Program, in conjunction with
any such outreach done for purposes of the Small Business Innovation
Research (SBIR) Program.
(b) Discretionary technical assistance to STTR awardees.
(1) Agencies may enter into agreements with vendors to provide
technical assistance to STTR awardees, which may include access to a
network of scientists and engineers engaged in a wide range of
technologies or access to technical and business literature available
through on-line data bases. Each agency may select a vendor for a term
not to exceed 5 years. The vendor must be selected using competitive
and merit-based criteria.
(i) The purpose of this technical assistance is to assist STTR
awardees in:
(A) Making better technical decisions on STTR projects;
(B) Solving technical problems that arise during STTR projects;
(C) Minimizing technical risks associated with STTR projects; and
(D) Commercializing the STTR product or process.
(ii) An agency may not enter into a contract with the vendor if the
contract amount provided for technical assistance is based upon the
total number of Phase I or Phase II awards but may enter into a
contract with the vendor based upon the total amount of awards for
which assistance is provided.
(2) Each agency may provide up to $5,000 of STTR funds for the
technical assistance described above in (c)(1) per year for each Phase
I award and each Phase II award. The amount will be in addition to the
award and will count as part of the agency's STTR funding, unless the
agency funds the technical assistance using non-STTR funds. The agency
may not use STTR funds for technical assistance unless the vendor
provides the services to the STTR awardee.
(3) An STTR applicant may acquire the technical assistance services
set forth in (c)(1)(i) above itself and not through the vendor selected
by the Federal agency. The applicant must request this authority from
the Federal agency and demonstrate in its STTR application that the
individual or entity selected can provide the specific technical
services needed. If the awardee demonstrates this requirement
sufficiently, the agency shall permit the awardee to acquire such
technical assistance itself, in an amount up to $5,000, as an allowable
cost of the STTR award. The per year amount will be in addition to the
award and will count as part of the agency's STTR funding, unless the
agency funds the technical assistance using non-STTR funds.
(c) Agencies must publish the information relating to timelines for
awards of Phase I and Phase II funding agreements and performance start
dates of the funding agreements in the agency's Annual Report (See
section 10(a) of the directive). Agencies will report this information
to SBA for posting on www.SBIR.gov.
(d) Interagency actions.
(1) Joint funding. An STTR project may be financed by more than one
Federal agency. Joint funding is not required but can be an effective
arrangement for some projects.
(2) Phase II awards. An STTR Phase II award may be issued by a
Federal agency other than the one that made the Phase I award. Prior to
award, the head of the Federal agency for the Phase I and Phase II
awards, or designee, must issue a written determination that the topics
of the awards are the same. Both agencies must submit the report to the
SBA.
(3) Participation by WOSBs and SDBs in the STTR Program. In order
to meet statutory requirements for greater inclusion, SBA and the
Federal participating agencies must conduct outreach efforts to find
and place innovative WOSBs and SDBs in the STTR Program. These SBCs
will be required to compete for STTR awards on the same basis as all
other SBCs. However, STTR agencies are encouraged to work independently
and cooperatively with SBA to develop methods to encourage qualified
WOSBs and SDBs to participate in the STTR Program.
(e) Limitation on use of funds.
(1) Each STTR agency must expend the required minimum percent of
its extramural budget on awards to SBCs. Agencies may not make
available for the purpose of meeting the minimum percent an amount of
its extramural budget for basic research that exceeds the minimum
percent. Funding agreements with SBCs for R/R&D that result from
competitive or single source selections other than an STTR Program must
not be considered to meet any portion of the required minimum percent.
(2) An agency must not use any of its STTR budget for the purpose
of funding administrative costs of the program, including costs
associated with program operations, employee salaries, and other
associated expenses.
(3) Pilot to Allow for Funding of Administrative, Oversight, and
Contract Processing Costs. Beginning on October 1, 2012 and ending on
September 30, 2015, and upon establishment by SBA of the agency-
specific performance criteria, SBA shall allow an SBIR Federal agency
to use no more than 3% of its SBIR budget for one or more specific
activities, which may be prioritized by the federal SBIR/STTR
Interagency Policy Committee. The purpose of this pilot program is to
assist with the substantial expansion in commercialization activities,
prevention of fraud/waste/abuse, expansion of reporting requirements by
agencies and other agency activities required for the SBIR and STTR
Programs. Funding under this pilot is not intended to and must not
replace current agency administrative funding in support of STTR
activities. Rather, funding under this pilot program is intended to
supplement such funds.
(i) A Federal agency may use this money to fund the following
specific activities:
(A) SBIR and/or STTR program administration, which includes:
(I) Internal oversight and quality control, such as verification of
reports and invoices and cost reviews, and waste/fraud/abuse prevention
(including targeted reviews of SBIR or STTR awardees that an agency
determines are at risk for waste/fraud/abuse);
(II) Carrying out any activities associated with the participation
by small businesses that are majority-owned by multiple venture capital
operating companies, hedge funds or private equity firms;
(III) Contract processing costs relating to the SBIR or STTR
program of that agency, which includes supplementing the current
workforce to assist solely with SBIR or STTR funding agreements;
(IV) Funding of additional personnel to work solely on the STTR
Program of that agency, which includes assistance with application
reviews; and
(V) Funding for simplified and standardized program proposal,
selection, contracting, compliance, and
[[Page 46877]]
audit procedures for the STTR program, including the reduction of
paperwork and data collection.
(B) STTR or SBIR Program-related outreach and related technical
assistance initiatives not in effect prior to commencement of this
pilot, except significant expansion or improvement of these
initiatives, including:
(I) Technical assistance site visits;
(II) Personnel interviews; and
(III) National conferences.
(C) Commercialization initiatives not in effect prior to
commencement of this pilot, except significant expansion or improvement
of these initiatives.
(D) For DoD and the military departments, carrying out the
Commercialization Readiness Program set forth in 12(b) of this
directive, with emphasis on supporting new initiatives that address
barriers in bringing STTR technologies to the marketplace, including
intellectual property issues, sales cycle access issues, accelerated
technology development issues, and other issues.
(ii) Agencies must use this money to attempt to increase
participation by SDBs and WOSBs in the STTR Program, and small
businesses in states with a historically low level of SBIR awards. The
agency may submit a written request to SBA to waive this requirement.
The request must explain why the waiver is necessary, demonstrate a
sufficient need for the waiver, and explain that the outreach
objectives of the agency are being met and that there has been
increased participation by small businesses in states with a
historically low level of SBIR awards.
(iii) SBA will establish performance criteria each fiscal year by
which use of these funds will be evaluated for that fiscal year. The
performance criteria will be metrics that measure the performance areas
required by statute against the goals set by the agencies in their work
plans. The performance criteria will be based upon the work plans
submitted by each agency for a given fiscal year and will be agency-
specific. SBA will work with the STTR agencies in creating a simplified
template for agencies to use when making their work plans.
(iv) Each agency must submit its work plan to SBA at least 30
calendar days prior to the start of each fiscal year for which the
pilot program is in operation. Agency work plans must include the
following: a prioritized list of initiatives to be supported; the
estimated amounts to be spent on each initiative or the estimated
percentage of administrative funds to be allocated to each initiative;
milestones for implementing the; the expected results to be achieved;
and the assessment metrics for each initiative. The work plan must
identify initiatives that are above and beyond current practice and
which enhance the agency's STTR program.
(v) SBA will evaluate the work plan and provide initial comments
within 15 calendar days of receipt of the plan. SBA's objective in
evaluating the work plan is to ensure that overall, it provides for
improvements to the STTR Program of that particular agency. If SBA does
not provide initial comments within 30 calendar days of receipt of the
plan, the work plan is deemed approved. If SBA does provide initial
comments within 30 calendar days, agencies must amend or supplement
their work plan and resubmit to SBA. Once SBA establishes the agency-
specific performance criteria to measure the benefits of the use of
these funds under the work plan, the agency may begin using the STTR
funds for the purposes set forth in the work plan. Agencies can adjust
their work plans and spending throughout the fiscal year as needed, but
must notify SBA of material changes in the plan.
(vi) Agencies must coordinate any activities in the work plan that
relate to fraud, waste, and abuse prevention, targeted reviews of
awardees, and implementation of oversight control and quality control
measures (including verification of reports and invoices and cost
reviews) with the agency's Office of Inspector General (OIG). If the
agency allocates more than $50,000,000 to its STTR Program for a fiscal
year, the agency may share this funding with its OIG when the OIG
performs the activities.
(vii) Agencies shall report to the Administrator on use of funds
under this authority as part of the SBIR/STTR Annual Report. See
section 10 generally and section 10(i).
(4) An agency must not issue an STTR funding agreement that
includes a provision for subcontracting any portion of that agreement
back to the issuing agency, to any other Federal Government agency, or
to other units of the Federal Government, except as provided in
paragraph (f)(5) of the STTR Policy Directive. SBA may issue a case-by-
case waiver to this provision after review of an agency's written
justification that includes the following information:
(i) An explanation of why the STTR research project requires the
use of the Federal facility or personnel, including data that verifies
the absence of non-Federal facilities or personnel capable of
supporting the research effort.
(ii) Why the Agency will not and cannot fund the use of the Federal
facility or personnel for the STTR project with non-STTR money.
(iii) The concurrence of the SBC's chief business official to use
the federal facility or personnel.
(5) An agency may issue an STTR funding agreement to a small
business concern that intends to enter into an agreement with a Federal
laboratory to perform portions of the award or has entered into a
cooperative research and development agreement (see 15 U.S.C. 3710a(d))
with a Federal laboratory, only if there is compliance with the
following.
(i) The agency may not require the small business concern enter
into an agreement with any Federal laboratory to perform any portion of
an STTR award, as a condition for an STTR award.
(ii) The agency may not issue an STTR award or approve an agreement
between an STTR awardee and a Federal laboratory, if the small business
concern will not meet the minimum performance of work requirements set
forth in section 6(a)(4) of this directive.
(iii) The agency may not issue an STTR award or approve an
agreement between an STTR awardee and a Federal laboratory that
violates any STTR requirement set forth in statute or the STTR Policy
Directive, including any STTR data rights protections.
(iv) The agency and Federal laboratory may not require any STTR
awardee that has an agreement with a Federal laboratory to perform
portions of the activities under the STTR award to provide advance
payment to the Federal laboratory in an amount greater than the amount
necessary to pay for 30 days of such activities.
(6) No agency, at its own discretion, may unilaterally cease
participation in the STTR Program. R/R&D agency budgets may cause
fluctuations and trends that must be reviewed in light of STTR Program
purposes. An agency may be considered by SBA for a phased withdrawal
from participation in the STTR Program over a period of time sufficient
in duration to minimize any adverse impact on SBCs. However, the SBA
decision concerning such a withdrawal will be made on a case-by-case
basis and will depend on significant changes to extramural R/R&D 3-year
forecasts as found in the annual Budget of the United States Government
and National Science Foundation breakdowns of total R/R&D obligations
as published in the Federal Funds for Research and Development. Any
withdrawal of an STTR agency from the STTR Program will be accomplished
in a standardized and orderly manner in
[[Page 46878]]
compliance with these statutorily mandated procedures.
(7) Federal agencies not otherwise required to participate in the
STTR Program may participate on a voluntary basis. Federal agencies
seeking to participate in the STTR Program must first submit their
written requests to SBA. Voluntary participation requires the written
approval of SBA.
(f) Preventing Fraud, Waste, and Abuse.
(1) Agencies shall evaluate risks of fraud, waste, and abuse in
each application, monitor and administer STTR awards, and create and
implement policies and procedures to prevent fraud, waste and abuse in
the STTR Program. To capitalize on OIG expertise in this area, agencies
must consult with their OIG when creating such policies and procedures.
Fraud includes any false representation about a material fact or any
intentional deception designed to deprive the United States unlawfully
of something of value or to secure from the United States a benefit,
privilege, allowance, or consideration to which an individual or
business is not entitled. Waste includes extravagant, careless, or
needless expenditure of Government funds, or the consumption of
Government property, that results from deficient practices, systems,
controls, or decisions. Abuse includes any intentional or improper use
of Government resources, such as misuse of rank, position, or authority
or resources. Examples of fraud, waste, and abuse relating to the STTR
Program include, but are not limited to:
(i) Misrepresentations or material, factual omissions to obtain, or
otherwise receive funding under, an STTR award;
(ii) Misrepresentations of the use of funds expended, work done,
results achieved, or compliance with program requirements under an STTR
award;
(iii) Misuse or conversion of STTR award funds, including any use
of award funds while not in full compliance with STTR Program
requirements, or failure to pay taxes due on misused or converted STTR
award funds;
(iv) Fabrication, falsification, or plagiarism in applying for,
carrying out, or reporting results from an STTR award;
(v) Failure to comply with applicable federal costs principles
governing an award;
(vi) Extravagant, careless, or needless spending;
(vii) Self-dealing, such as making a sub-award to an entity in
which the PI has a financial interest;
(viii) Acceptance by agency personnel of bribes or gifts in
exchange for grant or contract awards or other conflicts of interest
that prevents the Government from getting the best value; and
(ix) Lack of monitoring, or follow-up if questions arise, by agency
personnel to ensure that awardee meets all required eligibility
requirements, provides all required certifications, performs in
accordance with the terms and conditions of the award, and performs all
work proposed in the application.
(2) At a minimum, agencies must:
(i) Require certifications from the STTR awardee at the time of
award, as well as after award and during the funding agreement
lifecycle (see section 8(h) and Appendix I for more information);
(ii) Include on their respective STTR Web page and in each
solicitation, information explaining how an individual can report
fraud, waste and abuse as provided by the agency's OIG (e.g., include
the fraud hotline number or Web-based reporting method for the agency's
OIG);
(iii) Designate at least one individual in the agency to, at a
minimum, serve as the liaison for the STTR Program, the OIG and the
agency's Suspension and Debarment Official (SDO) and ensure that
inquiries regarding fraud, waste and abuse are referred to the OIG and,
if applicable, the SDO.
(iv) Include on their respective STTR Web page information
concerning successful prosecutions of fraud, waste and abuse in the
SBIR or STTR programs.
(v) Establish a written policy requiring all personnel involved
with the STTR Program to notify the OIG if anyone suspects fraud,
waste, and/or abuse and ensure the policy is communicated to all STTR
personnel.
(vi) Create or ensure there is an adequate system to enforce
accountability (through suspension and debarment, fraud referrals or
other efforts to deter wrongdoing and promote integrity) by developing
separate standardized templates for a referral made to the OIG for
fraud, waste, and abuse or the SDO for other matters, and a process for
tracking such referrals.
(vii) Ensure compliance with the eligibility requirements of the
program and the terms of the STTR funding agreement.
(viii) Work with the agency's OIG with regard to its efforts to
establish fraud detection indicators, coordinate the sharing of
information between Federal agencies, and improve education and
training to STTR Program officials, applicants and awardees;
(ix) Develop policies and procedures to avoid funding essentially
equivalent work already funded by another agency, which could include:
searching Tech-Net prior to award for the applicant (if a joint
venture, search for each party to the joint venture), key individuals
of the applicant, and similar abstracts; using plagiarism or other
software; checking the SBC's certification prior to award and funding
and documenting the funding agreement file that such certification
evidenced the SBC has not already received funding for essentially
equivalent work; reviewing other agency's policies and procedures for
best practices; and reviewing other R&D programs for policies and
procedures and best practices related to this issue; and
(x) Consider enhanced reporting requirements during the funding
agreement.
(g) Interagency Policy Committee. The Director of the Office of
Science and Technology Policy (OSTP) will establish an Interagency
SBIR/STTR Policy Committee, which will include representatives from
Federal agencies with an SBIR or an STTR program and the SBA. The
Interagency SBIR/STTR Policy Committee shall review the following
issues (but may review additional issues) and make policy
recommendations on ways to improve program effectiveness and
efficiency:
(1) The SBIR.gov databases described in section 9(k) of the Small
Business Act (15 U.S.C. 638(k));
(2) Federal agency flexibility in establishing Phase I and II award
sizes, including appropriate criteria for exercising such flexibility;
(3) Commercialization assistance best practices of Federal agencies
with significant potential to be employed by other agencies and the
appropriate steps to achieve that leverage, as well as proposals for
new initiatives to address funding gaps that business concerns face
after Phase II but before commercialization;
(4) The need for a standard evaluation framework to enable
systematic assessment of SBIR and STTR, including through improved
tracking of awards and outcomes and development of performance measures
for the SBIR Program and STTR program of each Federal agency; and
(5) Outreach and technical assistance activities that increase the
participation of small businesses underrepresented in the SBIR and STTR
programs, including the identification and sharing of best practices
and the leveraging of resources in support of such activities across
agencies.
[[Page 46879]]
(h) National Academy of Sciences Report. The National Academy of
Sciences (NAS) shall conduct a study and issue a report on the SBIR and
STTR programs.
(1) Prior to issuing the report, and to ensure that the concerns of
small business are appropriately considered, NAS shall consult with and
consider the views of SBA's Office of Investment and Innovation and
Office of Advocacy and other interested parties, including entities,
organizations, and individuals actively engaged in enhancing or
developing the technological capabilities of small business concerns.
(2) In addition, the head of each agency with a budget of more than
$50,000,000 for its SBIR Program for fiscal year 1999 shall, in
consultation with SBA, and not later than 6 months after December 31,
2011, cooperatively enter into an agreement with NAS in furtherance of
the report. SBA and the agencies will work with the Interagency Policy
Committee in determining the parameters of the study, including the
specific areas of focus and priorities for the broad topics required by
statute. The agreement will set forth these parameters, specific areas
of focus and priorities.
(3) NAS shall transmit to SBA, heads of agencies entering into an
agreement under this section, the Committee on Science, Space and
Technology, the Committee on Small Business of the House of
Representatives, and to the Committee on Small Business of the Senate a
copy of the report, which includes the results and recommendations, not
later than 4 years after December 31, 2011, and every subsequent four
years.
10. Agency and STTR Applicant/Awardee Reporting Requirements
(a) General. The Small Business Act requires agencies to collect
meaningful information from SBCs and to ensure that reporting
requirements are streamlined to minimize the burden on small
businesses.
(1) SBA is required to collect data from agencies and report to the
Congress information regarding applications by and awards to SBCs by
each Federal agency participating in the STTR program. STTR agencies
and SBA will report data using standardized templates that are
provided, maintained, and updated by SBA.
(2) The Act requires a ``simplified, standardized and timely annual
report'' from each Federal agency participating in the STTR program
(see section 3 for the definition of Federal agency), which is
submitted to SBA. In addition, agencies are required to report certain
items periodically throughout the year to SBA. Agencies may identify
certain information, such as award data information, by the various
components of each agency. SBA will collect reports electronically, to
the extent possible. The reports will be uploaded to databases attached
to Tech-Net--located at www.SBIR.gov. If the databases attached to
Tech-Net are unavailable, then the report must be emailed to
[email protected].
(3) To meet these requirements, the STTR program has the following
key principles:
(i) Make updating data available electronically;
(ii) Centralize and share certain data through secure interfaces to
which only authorized government personnel have access;
(iii) Have small business enter the data only once, if possible;
and
(iv) Provide standardized procedures.
(b) Summary of STTR Databases.
(1) The Act requires that SBA coordinate the implementation of
electronic databases at the STTR agencies, including the technical
ability of the agencies to share the data. In addition, the Act
requires the reporting of various data elements, which are clustered
together in the following subsections:
(i) Solicitations Database (to include the Master Schedule); and
(ii) Tech-Net, which includes the following databases:
(A) Company Registry Database;
(B) Application Information Database;
(C) Award Information Database;
(D) Commercialization Database;
(E) Annual Report Database; and
(F) Other Reporting Requirements Database.
(2) The subsections below describe the data reporting requirements,
including reporting mechanisms, the frequency of data collection and
reporting, and whether this information is shared publicly or is
protected and only available to authorized personnel. The table below
summarizes the data collection requirements for each database; however,
there may be some divergences at the individual data field level. Refer
to Appendices III-IX for the detailed reporting requirements at the
data field level. SBA notes that not all of the information will be
collected starting with fiscal year 2012. Rather, beginning in fiscal
year 2012, SBA will begin a phased implementation of this data
collection.
----------------------------------------------------------------------------------------------------------------
Collection/reporting
Database Reporting mechanism frequency Public/government
----------------------------------------------------------------------------------------------------------------
Solicitations.................... Agency XML or manual Within 5 business Public.
upload to http:// days of
SBIR.gov. solicitation open
date.
Company Registry................. SBC reports data to Register or Government only.
Tech-Net. Agency reconfirm at time
receives .pdf from of application.
company.
Application Information.......... Agency provides XML Quarterly........... Government only.
or manual upload to
Tech-Net.
Award Information................ XML or manual upload Quarterly........... Public.
to Tech-Net.
Commercialization................ Agencies + companies Agencies update in Government only.
report to Tech-Net. real time.
SBC updates prior to
subsequent award
application and
voluntarily
thereafter.
Annual Report.................... Agency XML or manual Annually............ Public.
upload to Tech-Net.
Other Reports.................... As set forth in the As set forth in the Public.
directive. directive.
----------------------------------------------------------------------------------------------------------------
(3) STTR awardees will have user names and passwords assigned in
order to access their respective awards information in the system.
Award and commercialization data maintained in the database can be
changed only by the awardee, SBA, or the awarding SBIR/STTR Federal
agency.
(c) Master Schedule & the Solicitations Database.
(1) SBA will post an electronic Master Schedule of release dates of
program solicitations with links to Internet web sites of agency
solicitations on www.SBIR.gov.
(i) On or before August 1, each agency representative must notify
SBA in writing or by email of its proposed
[[Page 46880]]
program solicitation release and proposal due dates for the next fiscal
year. SBA and the agency representatives will coordinate the resolution
of any conflicting agency solicitation dates by the second week of
August. In all cases, SBA will make final decisions. Agencies must
notify SBA in writing of any subsequent changes in the solicitation
release and close dates.
(ii) For those agencies that use both general topic and more
specific subtopic designations in their STTR solicitations, the topic
data should accurately describe the research solicited.
(iii) Agencies must post on their Internet web sites the following
information regarding each program solicitation:
(A) List of topics upon which R/R&D proposals will be sought;
(B) Agency address, phone number, or email address from which STTR
Program solicitations can be requested or obtained, especially through
electronic means;
(C) Names, addresses, and phone numbers of agency contact points
where STTR-related inquiries may be directed;
(D) Release date(s) of program solicitation(s);
(E) Closing date(s) for receipt of proposals; and
(F) Estimated number and average dollar amounts of Phase I awards
to be made under the solicitation.
(2) SBA will manage a searchable public database that contains all
solicitation and topic information from all SBIR/STTR agencies.
Agencies are required to update the Solicitations Database, hosted on
Tech-Net (available at www.SBIR.gov), within 5 business days of a
solicitation's open date for applications and/or submissions for SBCs.
Refer to Appendix III: Solicitations Database for detailed reporting
requirements. The main data requirements include:
(i) Type of solicitation--SBIR/STTR;
(ii) Phase--I or II;
(iii) Topic description;
(iv) Sub-topic description;
(v) Web site for further information; and
(vi) Applicable contact information per topic or sub-topic, where
applicable and allowed by law.
(d) Company Registry Database.
(1) SBA will maintain and manage a company registry to track
ownership and affiliation requirements for all companies applying to
the STTR Program, including participants that are majority-owned by
multiple VCOCs, private equity firms, or hedge funds.
(2) Each SBC applying for a Phase I or Phase II award must register
on Tech-Net prior to submitting an application. The SBC will report
and/or update ownership information to SBA prior to each STTR
application submission. The SBC will also be able to view all of the
ownership and affiliation requirements of the program on the registry
site.
(3) Data collected in the Company Registry Database will not be
shared publicly. Refer to Appendix IV for details on specific data
shared publicly.
(4) The SBC will save its information from the registration in a
.pdf document and will append this document to the application
submitted to a given agency unless the STTR agencies have a system in
place where the information can be transmitted automatically from SBA's
database.
(5) Refer to Appendix IV for detailed reporting requirements. The
main data requirements include:
(i) Basic identifying information for the SBC;
(ii) The number of employees for the SBC;
(iii) Whether the SBC has venture capital, hedge fund or private
equity firm investment and if so, include:
(A) The percentage of ownership of the awardee held by the VCOC,
hedge fund or private equity firm;
(B) The registration by the SBC of whether or not it is majority-
owned by VCOCs, hedge funds, or private equity firms. Please note that
this may be auto-populated through the individual calculations of
investments in the SBC already submitted.
(iv) Information on the affiliates of the SBC, including:
(A) The names of all affiliates of the SBC; and
(B) The number of employees of the affiliates;
(e) Application Information Database.
(1) SBA will manage an Application Information Database containing
data from applications to the STTR program across agencies.
(2) Each agency must upload application data to the Application
Database at Tech-Net at least quarterly.
(3) The data in the applicant database is only viewable to
authorized government officials and not shared publicly.
(4) Refer to Appendix V for detailed reporting requirements. The
main data requirements for each Phase I and Phase II application
include:
(i) Name, size, and location of the applicant, and the identifying
number assigned;
(ii) Name, location, responsible officer, and type for the Research
Institution in the proposal;
(iii) An abstract and specific aims of the project;
(iv) Name, title, contact information, and position in the small
business of each key individual that will carry out the project;
(v) Percentage of effort each key individual identified will
contribute to the project; and
(vi) Federal agency to which the application is made and contact
information for the person responsible for reviewing applications and
making awards under the program.
(5) The Applicant Information Database connects and cross-checks
information with the Company Registry and government personnel can see
connected data.
(f) Award Information Database.
(1) SBA will manage a database to collect information from the
agencies on awards made within the STTR program across agencies.
(2) Each agency must update the Award Information Database
quarterly, if not more frequently.
(3) Most of the data available on the Award Information Database is
viewable and searchable by the public on Tech-Net.
(4) Refer to Appendix VI for detailed reporting requirements. The
main data requirements for each Phase I and Phase II award include:
(i) Information similar to the Application Information Database--if
not already collected;
(ii) Name, size, location and the identifying number assigned to
the small business concern;
(iii) Name, location, responsible officer, and type for the
Research Institution in the proposal;
(iv) An abstract and specific aims of the project;
(v) The name, title, contact information, and position in the small
business of each key individual that will carry out the project;
(vi) The percentage of effort each key individual identified will
contribute to the project;
(vii) The Federal agency making the award;
(viii) Award amount;
(ix) Principal investigator identifying information--including
name, email address, and demographic information;
(x) More detailed information on location of company;
(xi) Whether the SBC or the Research Institution initiated their
collaboration on each assisted STTR project;
(xii) Whether the SBC or the Research Institution originated any
technology relating to the assisted STTR project;
(xiii) The length of time it took to negotiate any licensing
agreement between the SBC and the Research Institution under each
assisted STTR project;
[[Page 46881]]
(xiv) Whether the awardee:
(A) Has venture capital, hedge fund or private equity firm
investment and if so, the amount of such investment received by SBC as
of date of award and amount of additional capital awardee has invested
in STTR technology;
(B) Is a WOSB or has a woman as a principal investigator;
(C) Is an SDB or has a socially and economically disadvantaged
individual as a principal investigator;
(D) Is owned by a faculty member or a student of an institution of
higher education as defined in 20 U.S.C. 1001); and
(E) Has received the award as a result of the Commercialization
Program--Pilot Program for Civilian Agencies set forth in Sec. 12(c)
of the directive.
(xv) An identification of any business concern or subsidiary
established for the commercial application of a product or service for
which an SBIR or STTR award is made.
(5) The Award Information Database connects and cross-checks
information with the Company Registry and Application Information
Database, and government personnel can see connected data.
(g) Commercialization Database.
(1) The Commercialization Database will store information reported
by awardees on the commercial activity resulting from their past STTR
awards.
(2) SBA and STTR agencies will have two options to collect this
information from SBCs. First, SBA may collect commercialization data
directly from awardees into a central commercialization database.
Alternatively, agencies may collect commercialization data from
awardees, and then upload the data to the central commercialization
database for real-time availability for SBA and other STTR agencies.
The central commercialization database may be maintained by SBA or
another Federal agency, as long as there is an interagency agreement
addressing the database and stating, at a minimum, that all data in the
database will be available in real-time to authorized Government
personnel.
(3) STTR awardees are required to update this information on their
prior Phase II awards in the Commercialization Database when submitting
an application for an STTR Phase II award and upon completion of the
last deliverable for that award.
(4) Commercialization data at the company level will not be shared
publicly. Aggregated data that maintains the confidentiality of
companies may be reported in compliance with the statute.
(5) Refer to Appendix VII for detailed reporting requirements. The
main data requirements include for every Phase II award:
(i) Any business concern or subsidiary established for the
commercial application of a product or service for which an STTR award
is made;
(ii) Total revenue resulting from the sale of new products or
services, or licensing agreements resulting from the research conducted
under each Phase II award;
(iii) Additional investment received from any source, other than
Phase I or Phase II awards, to further the research and development
conducted under each Phase II award; and
(iv) How the proceeds from commercialization, marketing or sale of
technology resulting from each STTR project were allocated (by
percentage) between the SBC and the Research Institution;
(v) Any narrative information that a Phase II awardee voluntarily
submits to further describe the commercialization efforts of its awards
and related research;
(6) The SBC may apportion sales or additional investment
information relating to more than one Phase II award among those
awards, if it notes the apportionment for each award. Companies are
requested to update their records in this database on a voluntary basis
for at least 5 years following the completion of award.
(7) Awardees will update their information and add project
commercialization and sales data using their user names and passwords.
SBA and STTR agencies will coordinate data collection to ensure that
small businesses will not need to report the same data more than once.
(8) Note that the Award Information and Commercialization Databases
will contain the data necessary for agencies to determine whether an
applicant meets the agency's benchmarks for progress towards
commercialization.
(h) Annual Report.
(1) Agencies must submit their report to SBA on an annual basis and
will report for the period ending September 30 of each fiscal year. The
report is due to SBA by March 15 of each year. For example, the report
for FY 2012 (October 1, 2011-September 30, 2012) must be submitted to
SBA by March 15, 2013.
(2) SBA will provide a template for the Annual Report via Tech-Net
to agencies to populate with the required information. SBA reserves the
right to add further detail to the annual report data and performance
metrics via the template beyond the information provided below and the
appropriate appendix.
(3) After agencies submit the annual report to SBA, SBA will also
calculate the required data, if the supporting data for that
calculation has already been submitted to SBA (e.g., total STTR dollars
obligated, the percentage of extramural budget allocated to STTR,
number of awards exceeding the statutory thresholds). SBA will work
with the agencies to resolve any data inconsistencies.
(4) The report must include the following:
(i) Agency total fiscal year, extramural R/R&D total obligations as
reported to the National Science Foundation pursuant to the annual
Budget of the United States Government.
(ii) STTR Program total fiscal year dollars derived by applying the
statutory per centum to the agency's extramural R/R&D total
obligations.
(iii) STTR Program fiscal year dollars obligated through STTR
Program funding agreements for Phase I and Phase II.
(iv) STTR Program fiscal year dollars obligated and number of
awards through STTR Program funding for Phase I and Phase II further
analyzed by type of Research Institution.
(v) Number of topics and subtopics contained in each program
solicitation.
(vi) Number of proposals received by the agency for each topic and
subtopic in each program solicitation.
(vii) For all applicants and awardees in the applicable fiscal
year--where applicable, the name and address, solicitation topic and
subtopic, solicitation number, project title, total dollar amount of
funding agreement, and applicable demographic information. The agency
is not required to re-submit applicant and award information in the
annual report that it has already reported to SBA through Tech-Net as
required under Appendices IV, V, and VI.
(viii) Justification for the award of any funding agreement
exceeding the award guidelines set forth in section 7(h) of this
directive, the amount of each award exceeding the guidelines, the
identity and location of the awardee, whether the awardee has received
any venture capital, hedge fund, or private equity firm investment, and
whether the awardee is majority-owned by a venture capital operating
company, hedge fund or private equity firm.
(ix) Justification for awards made under a topic or subtopic where
the agency received only one proposal. Agencies must also provide the
awardee's name and address, the topic or subtopic, and the dollar
amount of
[[Page 46882]]
award. Awardee information must be collected quarterly--in any case,
but updated in the agency's annual reports.
(x) An accounting of Phase I awards made to SBCs that have received
more than 15 Phase II awards from all agencies in the preceding 5
fiscal years. Each agency must report: Name of awardee; Phase I funding
agreement number and date of award; Phase I topic or subtopic title;
amount and date of previous Phase II funding; and commercialization
status for each prior Phase II award.
(xi) All instances in which an agency pursued R/R&D, services,
production, or any combination of a technology developed by an STTR
awardee and determined that it was not practicable to enter into a
follow-on funding agreement with non-STTR funds with that concern. See
section 9(a)(12) for minimum reporting requirements.
(xii) The number and dollar value of each STTR and non-STTR award
(includes grants, contracts and cooperative agreements as well as any
award issued under the Commercialization Program) over $10,000 and
compare the number and amount of SBIR awards with awards to other than
SBCs.
(xiii) Information relating to the pilot to allow for funding of
administrative, oversight, and contract processing costs, including the
money spent on each activity and any other information required in the
approved work plan to measure the benefits of using these funds for the
specific activities--especially, as it pertains to the goals outlined
in the work plan. See section 9(e)(3) concerning the Pilot to Allow for
Funding of Administrative, Oversight, and Contract Processing Costs.
(xiv) An analysis of the various activities considered for
inclusion in the Commercialization Program--Pilot Program for Civilian
Agencies set forth in section 12(c) of the directive and a statement of
the reasons why each activity considered was included or not included.
(xv) A description and the extent to which the agency is increasing
outreach and awards to SDBs and WOSBs.
(xvi) General information about the implementation of and
compliance with the allocation of funds for awardees that are majority-
owned by multiple VCOCs, hedge funds or private equity firms.
(xvii) A detailed description of any appeals filed on Phase III
awards pursuant to section 4(c)(8) of the directive and notices of
noncompliance with the policy directive filed by SBA.
(xviii) Information relating to each Phase III award made by that
agency either as a prime or subcontract, including the name of the
business receiving the Phase III award, the dollar amount, and the
awarding agency or prime contractor.
(xix) An accounting of funds, initiatives, and outcomes under the
commercialization programs set forth in section 12(b) & (c) of this
directive.
(xx) By October 13, 2013, and then subsequently in each annual
report, information relating to the agency's enhancement of
manufacturing activities, if the agency awards more than $50,000,000
under the SBIR and STTR Programs combined in a fiscal year. The report
must include:
(A) A description of efforts undertaken by the agency to enhance
U.S. manufacturing activities;
(B) A comprehensive description of the actions undertaken each year
by the agency in carrying out the SBIR or STTR Programs to support
Executive Order 13329 (relating to manufacturing);
(C) An assessment of the effectiveness of the actions taken at
enhancing the R&D of U.S. manufacturing technologies and processes;
(D) A description of efforts by vendors selected to provide
discretionary technical assistance to help SBIR and STTR business
concerns manufacture in the U.S.; and
(E) Recommendations from the agency's SBIR and STTR program
managers of additional actions to increase manufacturing activities in
the U.S.
(5) Before the end of each fiscal year, each agency must submit a
report to SBA on those SBCs that submitted an application and were
found to not meet the agency's benchmarks with respect to progress
towards commercialization. This report must include the name and
employer identification number of the SBC, the closing date of the
solicitation to which it proposed, and the agency that issued the
solicitation.
(6) The annual report also includes the performance metrics
information set forth in the next section, Performance Metrics and
Standards.
(i) Performance Areas, Metrics and Goals
(1) As part of the agency's work plans, which are submitted
pursuant to section 9(e) of the directive, SBA will set performance
criteria. The performance criteria will measure each agency's
accomplishments in meeting certain performance areas against the
agency's goals. The Small Business Act establishes broad performance
areas for the program, including commercialization, streamlining,
outreach, etc. The metrics used to measure the agency's accomplishments
in these performance areas will be set with input from the STTR agency.
Agencies must report their progress on the performance criteria at the
end of the fiscal year as part of their annual report.
(2) The metrics and performance areas will evolve over time and can
be found at www.SBIR.gov. Examples of performance areas and metrics can
be found at Appendix IX.
(j) Other Reporting Requirements
(1) SBA will set forth a list of reports that agencies are required
by statute to submit, in a table format, which will be available at
www.SBIR.gov.
(2) The system will include a list of any individual or small
business concern that has received an STTR award that has been
convicted of a fraud-related crime involving STTR funds or found
civilly liable for a fraud-related violation involving STTR funds.
(3) Agencies must submit to SBA's Administrator, not later than 4
months after the date of enactment of its annual Appropriations Act, a
report describing the methodology used for calculating the amount of
its extramural budget. The report must also include an itemization of
each research program excluded from the calculation of its extramural
budget and a brief explanation of why it is excluded.
(4) Agencies must provide notice to SBA of any case or controversy
before any Federal judicial or administrative tribunal concerning the
STTR Program of the Federal agency. This does not include agency level
protests of awards unless and until the protest is before a Federal
court or administrative body. The agency must provide notice to SBA
within 15 business days of the agency's written notification of the
case or controversy.
(5) Agencies must provide notice of all instances in which an
agency pursued research, development, production, or any such
combination of a technology developed by an SBC using an award made
under the STTR Program of that agency, where the agency determined that
it was not practicable to enter into a follow-on non-STTR Program
funding agreement with that concern. The agency must provide notice to
SBA within 15 business days of the agency's award. The report must
include, at a minimum:
(i) The reasons why the follow-on funding agreement with the
concern was not practicable;
(ii) The identity of the entity with which the agency contracted to
perform the research, development, or production; and
[[Page 46883]]
(iii) A description of the type of funding agreement under which
the research, development, or production was obtained.
(6) Agencies must provide information supporting the agency's
achievement of the Interagency Policy Committee's policy
recommendations on ways to improve program effectiveness and
efficiency. This includes qualitative and quantitative data as
appropriate, which would measure the agency's progress. The agency must
provide this information to SBA at the end of each fiscal year.
(7) Agencies must provide an annual report to SBA, Senate Committee
on Small Business and Entrepreneurship, House Committee on Small
Business, and the House Committee on Science, Space, and Technology on
SBIR and STTR programs and the benefits of these programs to the United
States. Prior to preparing the report, the agency shall develop metrics
to evaluate the effectiveness and benefit to the United States of the
SBIR and STTR programs. The metrics must be science-based and
statistically driven, reflect the mission of the agency, and include
factors relating to the economic impact of the programs. The report
must describe in detail the agency's annual evaluation of the programs
using these metrics. The final report must be posted online so it can
be made available to the public.
(8) NIH, DoD and the Department of Education must provide the
written determination to SBA anytime it issues a Phase II award to a
small business concern that did not receive a Phase I award for that R/
R&D. The determination must be submitted prior to award.
(9) SBA will compile data and report to Congress on the Federal and
State Technology (FAST) Partnership Program, described in section 12 of
this Policy Directive. If required by the FAST grant, the grantees will
report a comprehensive list of the companies that received assistance
under FAST and if those companies received SBIR or STTR awards and any
information regarding mentors and Mentoring Networks, as required in
the Federal and State Technology (FAST) Partnership Program.
(k) Further Clarification on Availability of SBC Information
(1) Unless stated otherwise, the information contained in the
Company Registry Database, the Application Information Database, and
the Commercialization Database are solely available to authorized
government officials, with the approval of SBA. This includes Congress,
GAO, agencies participating in the SBIR and the STTR Programs, Office
of Management and Budget, OSTP, Office of Federal Procurement Policy,
and other authorized persons who are subject to a nondisclosure
agreement with the Federal Government covering the use of the
databases. These databases are used for the purposes of evaluating and
determining eligibility for the STTR Program, in accordance with Policy
Directives issued by SBA. Pursuant to 15 U.S.C. Sec. 638(k)(4),
certain information provided to those databases are privileged and
confidential and not subject to disclosure pursuant to 5 U.S.C. Sec.
552 (Government Organization and Employees); nor must it be considered
to be publication for purposes of 35 U.S.C. Sec. 102(a) or (b).
Most of the information in the Award Information and Annual Reports
Databases will be available to the public. Any information that will
identify the confidential business information of a given small
business concern will not be disclosed to the public. Those databases
are available at Tech-Net and offer a vast array of user-friendly
capabilities that are accessible by the public at no charge. The Award
Information Database allows for the online submission of SBIR/STTR
awards data from all STTR agencies. It also allows any end-user to
perform keyword searches and create formatted reports of SBIR/STTR
awards information, and for potential research partners to view
research and development efforts that are ongoing in the SBIR and the
STTR Programs, increasing the investment opportunities of the SBIR/STTR
SBCs in the high tech arena.
(l) Waivers
(1) Agencies must request an extension for additional time between
the solicitation closing date and notification of recommendation for
award. SBA will respond to the request for an extension within 5
business days, as practicable. See section 7(c)(1) of the directive for
further information.
(2) Agencies must request a waiver to exceed the award guidelines
for Phase I and Phase II awards by more than 50% for a specific topic.
See section 7(i)(4) of the directive for further information.
(3) Agencies must request a waiver to not use their SBIR funds, as
part of the pilot allowing for the use of such funds for certain STTR-
related costs, to attempt to increase participation by SDBs and WOSBs
in the STTR Program, and small businesses in states with a historically
low level of SBIR awards. See section 9(e)(3)(ii) of the directive for
further information.
(4) Agencies must request a waiver to issue a funding agreement
that includes a provision for subcontracting a portion of that
agreement back to the issuing agency if there is no exception to this
requirement in the directive. See section 9(e)(4) of the directive for
further information.
11. Responsibilities of SBA
(a) Policy.
(1) SBA will establish policy and procedures for the program by
publishing and updating the STTR Policy Directive and promulgating
regulations. Policy clarification of any part or provision of the
directive or regulations may be provided by SBA.
(2) It is essential that STTR agencies do not promulgate any
policy, rule, regulation, or interpretation that is inconsistent with
the Act, this Policy Directive, or SBA's regulations relating to the
STTR Program. SBA's monitoring activity will include review of
policies, rules, regulations, interpretations, and procedures generated
to facilitate intra- and interagency STTR Program implementation.
(3) Waivers providing limited exceptions to certain policies can be
found at section 10 of the directive.
(b) Outreach. SBA conducts outreach to achieve a number of
objectives including:
(1) Educating the public about the STTR Program via conferences,
seminars, and presentations;
(2) Highlighting the successes achieved in the program by
publishing (via press releases and www.SBIR.gov) success stories, as
well as hosting awards programs;
(3) Maintaining SBIR.gov, which is an online public information
resource that provides comprehensive information regarding the STTR
Program. This information includes: A listing of solicitation
information on currently available STTR opportunities, award
information on all Phase I and Phase II awards, summary annual award
information for the whole program, and contact information for SBA and
agency program managers.
(c) Collection and publication of program-wide data. SBA collects
and maintains program-wide data within the Tech-Net data system. This
data includes information on all Phase I and II awards from across all
STTR agencies, as well as Fiscal Year Annual Report data. See section
10 of the directive for further information about reporting and data
collection requirements.
(d) Monitoring implementation of the program and annually reporting
to Congress.
[[Page 46884]]
SBA is responsible for providing oversight and monitoring the
implementation of the STTR Program at the agency level. This monitoring
includes:
(1) STTR Funding Allocations. The magnitude and source of each STTR
agency's annual allocation reserved for STTR awards are critical to the
success of the STTR Program. The Act defines the STTR effort (R/R&D),
the source of the funds for financing the STTR Program (extramural
budget), and the percentage of such funds to be reserved for the STTR
Program. The Act requires that SBA monitor these annual allocations.
(2) STTR Program Solicitation and Award Status. The accomplishment
of scheduled STTR events, such as STTR Program solicitation releases
and the issuance of funding agreements is critical to meeting statutory
mandates and to operating an effective, useful program. SBA monitors
these and other operational features of the STTR Program and publishes
information relating to notice of and application for awards under the
STTR Program for each STTR agency at SBIR.Gov, or Tech-Net. SBA does
not plan to monitor administration of the awards except in instances
where SBA assistance is requested and is related to a specific STTR
project or funding agreement.
(3) Follow-on Funding Commitments. SBA will monitor whether follow-
on non-Federal funding commitments obtained by Phase II awardees for
Phase III were considered in the evaluation of Phase II proposals as
required by the Act.
(4) Fraud, Waste, and Abuse (FWA). SBA will ensure that each STTR
agency has taken steps to maintain a FWA prevention system to minimize
fraud, waste and abuse in the program.
(5) Performance Areas, Metrics, and Goals. SBA is responsible for
defining performance areas consistent with statute (e.g., reducing
timelines for award, simplification) against which agencies will set
goals. SBA will work with the agencies to set metrics, in order to
measure an agency's accomplishments of its goals against the defined
performance areas. The purpose of these metrics and goals is to assist
SBA in evaluating and reporting on the progress achieved by the
agencies in improving the STTR Program. For further information on
Performance Areas, Metrics and Goals see section 10(i).
(e) Additional efforts to improve the performance of the program.
SBA, in its continuing effort to improve the program, will make
recommendations for improvement within the framework of the Program
Managers' meetings. This may include recommending a ``best practice''
currently being utilized by an agency or business, or open discussion
and feedback on a potential ``best practice'' for agency adoption. This
may also involve program-wide initiatives.
(f) Other.
(1) Federal and State Technology Partnership (FAST) Program. SBA
coordinates the FAST program. SBA develops the solicitation, reviews
proposals, and oversees grant awards. FAST provides awardees with
funding to assist in outreach, proposal preparation, and other
technical assistance to developing innovation oriented SBCs.
(2) Critical Technologies. SBA will annually obtain available
information on the current critical technologies from the National
Critical Technologies panel (or its successor) and the Secretary of
Defense and provide such information to the STTR agencies. SBA will
request this information in June of each year. The data received will
be submitted to each of the STTR agencies and will also be published in
the September issue of the STTR Pre-Solicitation Announcement.
12. Supporting Programs and Initiatives
(a) Federal and State Technology Partnership Program. The purpose
of the FAST Program is to strengthen the technological competitiveness
of SBCs in the United States. Congress found that programs that foster
economic development among small high-technology firms vary widely
among the States. Thus, the purpose of the FAST Program is to improve
the participation of small technology firms in the innovation and
commercialization of new technology, thereby ensuring that the United
States remains on the cutting-edge of research and development in the
highly competitive arena of science and technology. SBA administers the
FAST Program. Additional and detailed information regarding this
program is available at www.SBIR.gov.
(b) Commercialization Readiness Program--DoD
(1) General. The Secretary of Defense and the Secretary of each
military department is authorized to create and administer a
``Commercialization Readiness Program'' to accelerate the transition of
technologies, products, and services developed under the SBIR or STTR
Program to Phase III, including the acquisition process. The authority
to create this Commercialization Readiness Program does not eliminate
or replace any other SBIR or STTR program that enhances the insertion
or transition of SBIR or STTR technologies. This includes any program
in effect as of December 31, 2011.
(2) Identification of research programs for accelerated transition
to acquisition process. The Secretary of each military department must
identify research programs of the STTR Program that have the potential
for rapid transitioning to Phase III and into the acquisition process
and certify in writing that the successful transition of the program to
Phase III and into the acquisition process is expected to meet high
priority military requirements of such military department.
(3) Limitation. The Secretary of Defense shall identify research
programs of the STTR Program that have the potential for rapid
transitioning to Phase III and into the acquisition process after
receiving this certification from each military department.
(4) Funding.
(i) Beginning with FY 2013 and ending in FY 2015, the Secretary of
Defense and each Secretary of a military department is authorized to
use its SBIR funds for administration of this program in accordance
with the procedures and policies set forth in 9(e)(3) of this
directive.
(ii) Beginning with FY 2016, the Secretary of Defense and Secretary
of each military department is only authorized to use not more than an
amount equal to 1% of its SBIR funds available to DoD or the military
departments for payment of expenses incurred to administer the
Commercialization Program. In accordance with the procedures and
policies set forth in 9(e)(3) of this directive, these funds will be
taken from the 3% administrative set-aside if the pilot program is
extended. Such funds--
(A) Shall not be subject to the limitations on the use of funds in
9(e)(2) of this directive; and
(B) Shall not be used to make Phase III awards.
(5) Contracts Valued at less than $1,000,000,000. For any contract
awarded by DoD valued at less than $1,000,000,000, the Secretary of
Defense may:
(i) Establish goals for the transition of Phase III technologies in
subcontracting plans; and
(ii) Require a prime contractor on such a contract to report the
number and dollar amount of the contracts entered into by the prime
contractor for Phase III STTR projects.
(6) The Secretary of Defense shall:
(i) Set a goal to increase the number of STTR Phase II contracts
that lead to technology transition into programs of record of fielded
systems;
[[Page 46885]]
(ii) Use incentives in effect as of December 31, 2011 or create new
incentives to encourage agency program managers and prime contractors
to meet the goal set forth in paragraph (6)(i) above; and
(iii) Submit the following to SBA, as part of the annual report:
(A) The number and percentage of Phase II STTR contracts awarded by
DoD that led to technology transition into programs of record or
fielded systems;
(B) Information on the status of each project that received funding
through the Commercialization Program and the efforts to transition
these projects into programs of record or fielded systems; and
(C) A description of each incentive that has been used by DoD and
the effectiveness of the incentive with respect to meeting DoD's goal
to increase the number of STTR Phase II contracts that lead to
technology transition into programs of record of fielded systems.
(c) Commercialization Program--Pilot Program for Civilian Agencies.
(1) General. The Commercialization Readiness Pilot Program permits
the head of any Federal agency participating in the SBIR Program
(except DoD) to allocate not more than 10% of its funds allocated to
the SBIR and the STTR Program--
(i) For follow-on awards to small businesses for technology
development, testing, evaluation, and commercialization assistance for
SBIR and STTR Phase II technologies; or
(ii) For awards to small businesses to support the progress of
research, research and development, and commercialization conducted
under the SBIR or STTR programs to Phase III.
(2) Application to SBA. Before establishing this pilot program, the
agency must submit a written application to SBA not later than 90 days
before the first day of the fiscal year in which the pilot program is
to be established. The written application must set forth a compelling
reason that additional investment in SBIR or STTR technologies is
necessary, including unusually high regulatory, systems integration, or
other costs relating to development or manufacturing of identifiable,
highly promising small business technologies or a class of such
technologies expected to substantially advance the mission of the
agency.
(3) SBA's Determination. SBA must make its determination regarding
an application submitted under paragraph (2) above not later than 30
days before the first day of the fiscal year for which the application
is submitted. SBA must also publish its determination in the Federal
Register and make a copy of the determination and any related materials
available to the Committee on Small Business and Entrepreneurship of
the Senate and the Committee on Small Business and the Committee on
Science, Space, and Technology of the House of Representatives.
(4) Maximum Amount of Award. The STTR agency may not make an award
to a small business concern under this pilot program in excess of 3
times the dollar amounts generally established for Phase II awards
under section 7(i)(1) of this directive.
(5) Registration. Any small business concern that receives an award
under this pilot program shall register with the SBA in the Company
Registry Database.
(6) Award Criteria or Consideration. When making an award under
this pilot program, the agency is required to consider whether the
technology to be supported by the award is likely to be manufactured in
the United States.
(7) Termination of Authority. The authority to establish a pilot
program under this section expires on September 30, 2017, unless
otherwise extended.
(d) Phase 0 Proof of Concept Partnership Pilot Program.
(1) General. The Director of the National Institutes of Health
(NIH) may use $5,000,000 of the funds allocated for the STTR Program
set forth in section 2(b) of this directive for a Proof of Concept
Partnership Pilot Program to accelerate the creation of small
businesses and the commercialization of research innovations from
qualifying institutions. A qualifying institution is a university or
other Research Institution that participates in the NIH's STTR program.
The Director shall award, through a competitive, merit-based process,
grants to qualifying institutions in order to implement this program.
These grants shall only be used to administer Proof of Concept
Partnership awards.
(2) Awards to Qualifying Institutions.
(i) The Director may make awards to a qualifying institution for up
to $1,000,000 per year for up to 3 years.
(ii) In determining which qualifying institutions will receive
pilot program grants, the Director of NIH shall consider, in addition
to any other criteria the Director determines necessary, the extent to
which qualifying institutions--
(A) Have an established and proven technology transfer or
commercialization office and have a plan for engaging that office in
the program's implementation;
(B) Have demonstrated a commitment to local and regional economic
development;
(C) Are located in diverse geographies and are of diverse sizes;
(D) Can assemble project management boards comprised of industry,
start-up, venture capital, technical, financial, and business experts;
(E) Have an intellectual property rights strategy or office; and
(F) Demonstrate a plan for sustainability beyond the duration of
the funding award.
(3) Proof of Concept Partnerships. A qualifying institution
selected by NIH shall establish a Proof of Concept Partnership with NIH
to award grants to individual researchers. These grants should provide
researchers with the initial investment and the resources to support
the proof of concept work and commercialization mentoring needed to
translate promising research projects and technologies into a viable
company. This work may include technical validations, market research,
clarifying intellectual property rights position and strategy, and
investigating commercial or business opportunities.
(4) Award Guidelines for Small Businesses. The administrator of a
Proof of Concept Partnership program shall award grants in accordance
with the following guidelines:
(i) The Proof of Concept Partnership shall use a market-focused
project management oversight process, including--
(A) A rigorous, diverse review board comprised of local experts in
translational and proof of concept research, including industry, start-
up, venture capital, technical, financial, and business experts and
university technology transfer officials;
(B) Technology validation milestones focused on market feasibility;
(C) Simple reporting effective at redirecting projects; and
(D) The willingness to reallocate funding from failing projects to
those with more potential.
(ii) The Proof of Concept Partnership shall not award more than
$100,000 towards an individual proposal.
(5) Educational Resources and Guidance. The administrator of a
Proof of Concept Partnership program shall make educational resources
and guidance available to researchers attempting to commercialize their
innovations.
(6) Limitations.
(i) The funds for the pilot program shall not be used for basic
research or to fund the acquisition of research equipment or supplies
unrelated to commercialization activities.
[[Page 46886]]
(ii) The funds for the pilot program can be used to evaluate the
commercial potential of existing discoveries, including proof of
concept research or prototype development; and activities that
contribute to determining a project's commercialization path, to
include technical validations, market research, clarifying intellectual
property rights, and investigating commercial and business
opportunities.
(7) Termination of Authority. The pilot program under this
subsection shall terminate on September 30, 2017, unless otherwise
extended.
Appendix I: Instructions for STTR Program Solicitation Preparation
a. General. Section 9(p) of the Small Business Act (15 U.S.C.
638(p)) requires ``* * * simplified, standardized and timely STTR
solicitations'' and for STTR agencies to utilize a ``uniform process''
minimizing the regulatory burden of participation. Therefore, the
following instructions purposely depart from normal Government
solicitation formats and requirements. STTR solicitations must be
prepared and issued as program solicitations in accordance with the
following instructions.
b. Limitation in Size of Solicitation. In the interest of meeting
the requirement for simplified and standardized solicitations, while
also recognizing that the Internet has become the main vehicle for
distribution, each agency should structure its entire STTR solicitation
to produce the least number of pages (electronic and printed),
consistent with the procurement/assistance standing operating
procedures and statutory requirements of the participating Federal
agencies.
c. Format. STTR Program solicitations must be prepared in a simple,
standardized, easy-to-read, and easy-to-understand format. It must
include a cover sheet, a table of contents, and the following sections
in the order listed.
1. Program Description
2. Certifications
3. Proposal Preparation Instructions and Requirements
4. Method of Selection and Evaluation Criteria
5. Considerations
6. Submission of Proposals
7. Scientific and Technical Information Sources
8. Submission Forms and Certifications
9. Research Topics
d. Cover Sheet.
The cover sheet of an STTR Program solicitation must clearly
identify the solicitation as an STTR solicitation, identify the agency
releasing the solicitation, specify date(s) on which contract proposals
or grant applications (proposals) are due under the solicitation, and
state the solicitation number or year.
Instructions for Preparation of STTR Program Solicitation
Sections 1 Through 9
1. Program Description.
(a) Summarize in narrative form the invitation to submit proposals
and the objectives of the STTR Program.
(b) Describe in narrative form the agency's STTR Program, including
a description of the three phases. Note in your description whether the
solicitation is for Phase I or Phase II proposals. Also note in each
solicitation for Phase I that all awardees may apply for a Phase II
award and provide guidance on the procedure for doing so.
(c) Describe program eligibility:
(d) List the name, address and telephone number of agency contacts
for general information on the STTR Program solicitation.
(e) Whenever terms are used that are unique to the STTR Program, a
specific STTR solicitation or a portion of a solicitation, define them
or refer them to a source for the definition. At a minimum, the
definitions of ``funding agreement,'' ``R/R&D,'' ``SBC,'' ``STTR
technical data,'' and STTR technical data rights'' must be included.
(f) Include information explaining how an individual can report
fraud, waste and abuse (e.g. include the fraud hotline for the agency's
Office of Inspector General);
2. Certifications.
(a) This section must include certifying forms required by
legislation, regulation or standing operating procedures, to be
submitted by the applicant to the contracting or granting agency. This
would include certifying forms such as those for the protection of
human and animal subjects.
(b) This section must include any certifications required
concerning size, ownership and other STTR Program requirements.
(i) The agency must require any SBC that is majority-owned by
multiple venture capital operating companies, hedge funds, or private
equity firms to submit the following certification with its STTR
application:
BILLING CODE 8025-01-P
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[[Page 46888]]
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(ii) The agency may request the STTR applicant to submit a
certification at the time of submission of the application or offer.
The certification may require the applicant to state that it intends to
meet the size, ownership and other requirements of the STTR Program at
the time of award of the funding agreement, if selected for award.
(iii) The agency must request the STTR applicant to submit a
certification at the time of award and at any other time set forth in
SBA's regulations at 13 CFR Sec. Sec. 121.701-121.705. The
certification will require the applicant to state that it meets the
size, ownership and other requirements of the STTR Program at the time
of award of the funding agreement.
(iv) The agency must request the STTR awardee to submit
certifications during funding agreement life cycle. A Phase I funding
agreement must state
[[Page 46889]]
that the awardee shall submit a new certification as to whether it
qualifies as a SBC and that it is in compliance with specific STTR
Program requirements at the time of final payment or disbursement. A
Phase II funding agreement must state that the awardee shall submit a
new certification as to whether it qualifies as a SBC and that it is in
compliance with specific STTR Program requirements prior to receiving
more than 50% of the total award amount and prior to final payment or
disbursement.
(v) Agencies may require additional certifications at other points
in time during the life cycle of the funding agreement, such as at the
time of each payment or disbursement.
(c) The agency must use the following certification at the time of
award and upon notification by SBA, must check www.SBIR.gov for updated
certifications prepared by SBA:
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[[Page 46892]]
[GRAPHIC] [TIFF OMITTED] TR06AU12.012
(d) The agency must use the following certification during the
lifecycle of the funding agreement in accordance with subsection 8(h)
of the directive and paragraph 2(b)(iv) of this Appendix and upon
notification by SBA, must check www.SBIR.gov for updated certifications
prepared by SBA:
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BILLING CODE 8025-01-C
3. Proposal Preparation Instructions and Requirements. The purpose
of this section is to inform the applicant on what to include in the
proposal and to
[[Page 46895]]
set forth limits on what may be included. This section of the proposal
should also provide guidance to assist applicants, particularly those
that may not have previous Government experience, in improving the
quality and acceptance of proposals.
(a) Limitations on Length of Proposal. Include at least the
following information:
(1) STTR Phase I proposals must not exceed a total of 25 pages,
including cover page, budget, and all enclosures or attachments, unless
stated otherwise in the agency solicitation. Pages should be of
standard size (8\1/2\ inches by 11 inches or 21.6 centimeters by 27.9
centimeters) and should conform to the standard formatting
instructions. Margins should be 1 inch or 2.6 centimeters and type at
least 10 point font.
(2) A notice that no additional attachments, appendices, or
references beyond the 25-page limitation shall be considered in
proposal evaluation (unless specifically solicited by an agency) and
that proposals in excess of the page limitation shall not be considered
for review or award.
(b) Proposal Cover Sheet. Every applicant is required to provide a
copy of its registration information printed from the Company Registry
unless the information can be transmitted automatically to STTR
agencies. Each applicant must also include at least the following
information on the first page of proposals.
(1) Agency and solicitation number or year.
(2) Topic Number or Letter.
(3) Subtopic Number or Letter.
(4) Topic Area.
(5) Project Title.
(6) Name and Complete Address of Firm.
(7) Disclosure permission (by statement or checkbox), such as
follows, must be included at the discretion of the funding agency:
``Will you permit the Government to disclose the name, address, and
telephone number of the corporate official of your concern, if your
proposal does not result in an award, to appropriate local and State-
level economic development organizations that may be interested in
contacting you for further information? Yes-- No--''
(8) Signature of a company official of the proposing SBC and that
individual's typed name, title, address, telephone number, and date of
signature.
(9) Signature of Principal Investigator or Project Manager within
the proposing SBC and that individual's typed name, title, address,
telephone number, and date of signature.
(10) Legend for proprietary information as described in the
``Considerations'' section of this program solicitation if appropriate.
It may also be noted by asterisks in the margins on proposal pages.
(c) Data Collection Requirement.
(1) Each Phase I and Phase II applicant is required to provide
information for SBA's database (www.sbir.gov). The following are
examples of the data to be entered by applicants into the database:
(i) Any business concern or subsidiary established for the
commercial application of a product or service for which an STTR award
is made.
(ii) Revenue from the sale of new products or services resulting
from the research conducted under each Phase II award;
(iii) Additional investment from any source, other than Phase I or
Phase II awards, to further the research and development conducted
under each Phase II award.
(iv) Update the information in the database for any prior Phase II
award received by the SBC. The SBC may apportion sales or additional
investment information relating to more than one Phase II award among
those awards, if it notes the apportionment for each award.
(2) Each Phase II awardee is required to update the appropriate
information on the award in the database upon completion of the last
deliverable under the funding agreement and is requested to voluntarily
update the information in the database annually thereafter for a
minimum period of 5 years.
(d) Abstract or Summary. Applicants will be required to include a
one-page project summary of the proposed R/R&D including at least the
following:
(1) Name and address of SBC.
(2) Name and title of principal investigator or project manager.
(3) Agency name, solicitation number, solicitation topic, and
subtopic.
(4) Title of project.
(5) Technical abstract limited to two hundred words.
(6) Summary of the anticipated results and implications of the
approach (both Phases I and II) and the potential commercial
applications of the research.
(e) Technical Content. STTR Program solicitations must require as a
minimum the following to be included in proposals submitted thereunder:
(1) Identification and Significance of the Problem or Opportunity.
A clear statement of the specific technical problem or opportunity
addressed.
(2) Phase I Technical Objectives. State the specific objectives of
the Phase I research and development effort, including the technical
questions it will try to answer to determine the feasibility of the
proposed approach.
(3) Phase I Work Plan. Include a detailed description of the Phase
I R/R&D plan. The plan should indicate what will be done, where it will
be done, and how the R/R&D will be carried out. Phase I R/R&D should
address the objectives and the questions cited in (e)(2) immediately
above. The methods planned to achieve each objective or task should be
discussed in detail.
(4) Related R/R&D. Describe significant R/R&D that is directly
related to the proposal including any conducted by the project manager/
principal investigator or by the proposing SBC. Describe how it relates
to the proposed effort, and any planned coordination with outside
sources. The applicant must persuade reviewers of his or her awareness
of key, recent R/R&D conducted by others in the specific topic area.
(5) Key Individuals and Bibliography of Directly Related Work.
Identify key individuals involved in Phase I including their directly-
related education, experience, and bibliographic information. Where
vitae are extensive, summaries that focus on the most relevant
experience or publications are desired and may be necessary to meet
proposal size limitation.
(6) Relationship with Future R/R&D.
(i) State the anticipated results of the proposed approach if the
project is successful (Phase I and II).
(ii) Discuss the significance of the Phase I effort in providing a
foundation for the Phase II R/R&D effort.
(7) Facilities. A detailed description, availability and location
of instrumentation and physical facilities proposed for Phase I should
be provided.
(8) Consultants. Involvement of consultants in the planning and
research stages of the project is permitted. If such involvement is
intended, it should be described in detail.
(9) Potential Post Applications. Briefly describe:
(i) Whether and by what means the proposed project appears to have
potential commercial application.
(ii) Whether and by what means the proposed project appears to have
potential use by the Federal Government.
(10) Similar Proposals or Awards. WARNING--While it is permissible
with proposal notification to submit identical proposals or proposals
containing a significant amount of
[[Page 46896]]
essentially equivalent work for consideration under numerous Federal
program solicitations, it is unlawful to enter into funding agreements
requiring essentially equivalent work. If there is any question
concerning this, it must be disclosed to the soliciting agency or
agencies before award. If an applicant elects to submit identical
proposals or proposals containing a significant amount of essentially
equivalent work under other Federal program solicitations, a statement
must be included in each such proposal indicating:
(i) The name and address of the agencies to which proposals were
submitted or from which awards were received.
(ii) Date of proposal submission or date of award.
(iii) Title, number, and date of solicitations under which
proposals were submitted or awards received.
(iv) The specific applicable research topics for each proposal
submitted or award received.
(v) Titles of research projects.
(vi) Name and title of principal investigator or project manager
for each proposal submitted or award received.
(11) Prior STTR Phase II Awards. If the SBC has received more than
15 Phase II awards in the prior 5 fiscal years, the SBC must submit in
its Phase I proposal: name of the awarding agency; date of award;
funding agreement number; amount of award; topic or subtopic title;
follow-on agreement amount; source and date of commitment; and current
commercialization status for each Phase II award. (This required
proposal information will not be counted toward the proposal pages
limitation.)
(f) Cost Breakdown/Proposed Budget. The solicitation will require
the submission of simplified cost or budget data.
4. Method of Selection and Evaluation Criteria.
(a) Standard Statement. Essentially the following statement must be
included in all STTR Program solicitations:
``All Phase I and II proposals will be evaluated and judged on a
competitive basis. Proposals will be initially screened to determine
responsiveness. Proposals passing this initial screening will be
technically evaluated by engineers or scientists to determine the most
promising technical and scientific approaches. Each proposal will be
judged on its own merit. The Agency is under no obligation to fund any
proposal or any specific number of proposals in a given topic. It also
may elect to fund several or none of the proposed approaches to the
same topic or subtopic.''
(b) Evaluation Criteria.
(1) The STTR agency must develop a standardized method in its
evaluation process that will consider, at a minimum, the following
factors:
(i) The technical approach and the anticipated agency and
commercial benefits that may be derived from the research.
(ii) The adequacy of the proposed effort and its relationship to
the fulfillment of requirements of the research topic or subtopics.
(iii) The soundness and technical merit of the proposed approach
and its incremental progress toward topic or subtopic solution.
(iv) Qualifications of the proposed principal/key investigators,
supporting staff, and consultants.
(v) Evaluations of proposals require, among other things,
consideration of a proposal's commercial potential as evidenced by:
(A) The SBC's record of commercializing STTR or other research;
(B) The existence of second phase funding commitments from private
sector or non-STTR funding sources;
(C) The existence of third phase follow-on commitments for the
subject of the research; and
(D) The presence of other indicators of the commercial potential of
the idea.
(2) The factors in (b)(1) above and other appropriate evaluation
criteria, if any, must be specified in the ``Method of Selection''
section of STTR Program solicitations.
(c) Peer Review. The program solicitation must indicate if the STTR
agency contemplates that as a part of the STTR proposal evaluation, it
will use external peer review.
(d) Release of Proposal Review Information. After final award
decisions have been announced, the technical evaluations of the
applicant's proposal may be provided to the applicant. The identity of
the reviewer must not be disclosed.
5. Considerations. This section must include, as a minimum, the
following information:
(a) Awards. Indicate the estimated number and type of awards
anticipated under the particular STTR Program solicitation in question,
including:
(i) Approximate number of Phase I awards expected to be made.
(ii) Type of funding agreement, that is, contract, grant or
cooperative agreement.
(iii) Whether fee or profit will be allowed.
(iv) Cost basis of funding agreement, for example, fixed-price,
cost reimbursement, or cost-plus-fixed fee.
(v) Information on the approximate average dollar value of awards
for Phase I and Phase II.
(b) Reports. Describe the frequency and nature of reports that will
be required under Phase I funding agreements. Interim reports should be
brief letter reports.
(c) Payment Schedule. Specify the method and frequency of progress
and final payment under Phase I and II agreements.
(d) Innovations, Inventions and Patents.
(i) Proprietary Information. Essentially the following statement
must be included in all STTR solicitations:
``Information contained in unsuccessful proposals will remain the
property of the applicant. The Government may, however, retain copies
of all proposals. Public release of information in any proposal
submitted will be subject to existing statutory and regulatory
requirements. If proprietary information is provided by an applicant in
a proposal, which constitutes a trade secret, proprietary commercial or
financial information, confidential personal information or data
affecting the national security, it will be treated in confidence, to
the extent permitted by law. This information must be clearly marked by
the applicant with the term `confidential proprietary information' and
the following legend must appear on the title page of the proposal:
`These data shall not be disclosed outside the Government and shall not
be duplicated, used, or disclosed in whole or in part for any purpose
other than evaluation of this proposal. If a funding agreement is
awarded to this applicant as a result of or in connection with the
submission of these data, the Government shall have the right to
duplicate, use, or disclose the data to the extent provided in the
funding agreement and pursuant to applicable law. This restriction does
not limit the Government's right to use information contained in the
data if it is obtained from another source without restriction. The
data subject to this restriction are contained on pages ---- of this
proposal.' ''
Any other legend may be unacceptable to the Government and may
constitute grounds for removing the proposal from further
consideration, without assuming any liability for inadvertent
disclosure. The Government will limit dissemination of such information
to within official channels.''
[[Page 46897]]
(ii) Alternative To Minimize Proprietary Information. Agencies may
elect to instruct applicants to:
(A) Limit proprietary information to only that absolutely essential
to their proposal.
(B) Provide proprietary information on a separate page with a
numbering system to key it to the appropriate place in the proposal.
(iii) Rights in Data Developed Under STTR Funding Agreements.
Agencies should insert essentially the following statement in their
STTR Program solicitations to notify SBCs of the necessity to mark STTR
technical data before delivering it to the Agency:
``To preserve the STTR data rights of the awardee, the legend (or
statements) used in the STTR Data Rights clause included in the STTR
award must be affixed to any submissions of technical data developed
under that STTR award. If no Data Rights clause is included in the STTR
award, the following legend, at a minimum, should be affixed to any
data submissions under that award.
These STTR data are furnished with STTR rights under Funding
Agreement No. ---- (and subcontract No. ---- if appropriate), Awardee
Name ------------, Address, Expiration Period of STTR Data Rights ----
--------. The Government may not use, modify, reproduce, release,
perform, display, or disclose technical data or computer software
marked with this legend for (choose four (4) or five (5) years). After
expiration of the (4- or 5-year period), the Government has a royalty-
free license to use, and to authorize others to use on its behalf,
these data for Government purposes, and is relieved of all disclosure
prohibitions and assumes no liability for unauthorized use of these
data by third parties, except that any such data that is also protected
and referenced under a subsequent STTR award shall remain protected
through the protection period of that subsequent STTR award.
Reproductions of these data or software must include this legend.''
(iv) Copyrights. Include an appropriate statement concerning
copyrights and publications; for example:
``With prior written permission of the contracting officer, the
awardee normally may copyright and publish (consistent with appropriate
national security considerations, if any) material developed with
(agency name) support. (Agency name) receives a royalty-free license
for the Federal Government and requires that each publication contain
an appropriate acknowledgement and disclaimer statement.''
(v) Patents. Include an appropriate statement concerning patents.
For example:
``Small business concerns normally may retain the principal
worldwide patent rights to any invention developed with Government
support. In such circumstances, the Government receives a royalty-free
license for Federal Government use, reserves the right to require the
patent holder to license others in certain circumstances, and may
require that anyone exclusively licensed to sell the invention in the
United States must normally manufacture it domestically. To the extent
authorized by 35 U.S.C. 205, the Government will not make public any
information disclosing a Government-supported invention for a minimum
4-year period (that may be extended by subsequent STTR funding
agreements) to allow the awardee a reasonable time to pursue a
patent.''
(vi) Invention Reporting. Include requirements for reporting
inventions. Include appropriate information concerning the reporting of
inventions, for example:
``STTR awardees must report inventions to the awarding agency
within 2 months of the inventor's report to the awardee. The reporting
of inventions may be accomplished by submitting paper documentation,
including fax.''
Note: Some agencies provide electronic reporting of inventions
through the NIH iEdison Invention Reporting System (iEdison System).
Use of the iEdison System satisfies all invention reporting
requirements mandated by 37 CFR part 401, with particular emphasis on
the Standard Patent Rights Clauses, 37 CFR 401.14. Access to the system
is through a secure interactive Internet site, http://www.iedison.gov,
to ensure that all information submitted is protected. All agencies are
encouraged to use the Edison System. In addition to fulfilling
reporting requirements, the Edison System notifies the user of future
time sensitive deadlines with enough lead-time to avoid the possibility
of loss of patent rights due to administrative oversight.
(e) Cost-Sharing. Include a statement essentially as follows:
Cost-sharing is permitted for proposals under this program
solicitation; however, cost-sharing is not required. Cost-sharing will
not be an evaluation factor in consideration of your Phase I proposal.
(f) Profit or Fee. Include a statement on the payment of profit or
fee on awards made under the STTR Program solicitation.
(g) Joint Ventures or Limited Partnerships. Include essentially the
following language:
Joint ventures and limited partnerships are eligible provided the
entity created qualifies as a small business concern as defined in this
program solicitation.
(h) Research and Analytical Work. Include essentially the following
statement:
(1) ``For both Phase I and Phase II, not less than 40 percent of
the R/R&D work must be performed by the SBC, and not less than 30
percent of the R/R&D work must be performed by the single, partnering
Research Institution, as defined in this solicitation.''
(i) Awardee Commitments. To meet the legislative requirement that
STTR solicitations be simplified, standardized and uniform, clauses
expected to be in or required to be included in STTR funding agreements
must not be included in full or by reference in STTR Program
solicitations. Rather, applicants must be advised that they will be
required to make certain legal commitments at the time of execution of
funding agreements resulting from STTR Program solicitations.
Essentially, the following statement must be included in the
``Considerations'' section of STTR Program solicitations:
``Upon award of a funding agreement, the awardee will be required
to make certain legal commitments through acceptance of numerous
clauses in Phase I funding agreements. The outline that follows is
illustrative of the types of clauses to which the contractor would be
committed. This list is not a complete list of clauses to be included
in Phase I funding agreements, and is not the specific wording of such
clauses. Copies of complete terms and conditions are available upon
request.''
(j) Summary Statements. The following are illustrative of the type
of summary statements to be included immediately following the
statement in subparagraph (i). These statements are examples only and
may vary depending upon the type of funding agreement used.
(1) Standards of Work. Work performed under the funding agreement
must conform to high professional standards.
(2) Inspection. Work performed under the funding agreement is
subject to Government inspection and evaluation at all times.
(3) Examination of Records. The Comptroller General (or a duly
authorized representative) must have the right to examine any pertinent
records of the awardee involving
[[Page 46898]]
transactions related to this funding agreement.
(4) Default. The Government may terminate the funding agreement if
the contractor fails to perform the work contracted.
(5) Termination for Convenience. The funding agreement may be
terminated at any time by the Government if it deems termination to be
in its best interest, in which case the awardee will be compensated for
work performed and for reasonable termination costs.
(6) Disputes. Any dispute concerning the funding agreement that
cannot be resolved by agreement must be decided by the contracting
officer with right of appeal.
(7) Contract Work Hours. The awardee may not require an employee to
work more than 8 hours a day or 40 hours a week unless the employee is
compensated accordingly (for example, overtime pay).
(8) Equal Opportunity. The awardee will not discriminate against
any employee or applicant for employment because of race, color,
religion, sex, or national origin.
(9) Affirmative Action for Veterans. The awardee will not
discriminate against any employee or applicant for employment because
he or she is a disabled veteran or veteran of the Vietnam era.
(10) Affirmative Action for Handicapped. The awardee will not
discriminate against any employee or applicant for employment because
he or she is physically or mentally handicapped.
(11) Officials Not To Benefit. No Government official must benefit
personally from the STTR funding agreement.
(12) Covenant Against Contingent Fees. No person or agency has been
employed to solicit or secure the funding agreement upon an
understanding for compensation except bona fide employees or commercial
agencies maintained by the awardee for the purpose of securing
business.
(13) Gratuities. The funding agreement may be terminated by the
Government if any gratuities have been offered to any representative of
the Government to secure the award.
(14) Patent Infringement. The awardee must report each notice or
claim of patent infringement based on the performance of the funding
agreement.
(15) American Made Equipment and Products. When purchasing
equipment or a product under the STTR funding agreement, purchase only
American-made items whenever possible.
(k) Additional Information. Information pertinent to an
understanding of the administration requirements of STTR proposals and
funding agreements not included elsewhere must be included in this
section. As a minimum, statements essentially as follows must be
included under ``Additional Information'' in STTR Program
solicitations:
(1) This program solicitation is intended for informational
purposes and reflects current planning. If there is any inconsistency
between the information contained herein and the terms of any resulting
STTR funding agreement, the terms of the funding agreement are
controlling.
(2) Before award of an STTR funding agreement, the Government may
request the applicant to submit certain organizational, management,
personnel, and financial information to assure responsibility of the
applicant.
(3) The Government is not responsible for any monies expended by
the applicant before award of any funding agreement.
(4) This program solicitation is not an offer by the Government and
does not obligate the Government to make any specific number of awards.
Also, awards under the STTR Program are contingent upon the
availability of funds.
(5) The STTR Program is not a substitute for existing unsolicited
proposal mechanisms. Unsolicited proposals must not be accepted under
the STTR Program in either Phase I or Phase II.
(6) If an award is made pursuant to a proposal submitted under this
STTR Program solicitation, a representative of the contractor or
grantee or party to a cooperative agreement will be required to certify
that the concern has not previously been, nor is currently being, paid
for essentially equivalent work by any Federal agency.
6. Submission of Proposals.
(a) This section must clearly specify the closing date on which all
proposals are due to be received.
(b) This section must specify the number of copies of the proposal
that are to be submitted.
(c) This section must clearly set forth the complete mailing and/or
delivery address(es) where proposals are to be submitted.
(d) This section may include other instructions such as the
following:
(1) Bindings. Please do not use special bindings or covers. Staple
the pages in the upper left corner of the cover sheet of each proposal.
(2) Packaging. All copies of a proposal should be sent in the same
package.
7. Scientific and Technical Information Sources. Wherever
descriptions of research topics or subtopics include reference to
publications, information on where such publications will normally be
available must be included in a separate section of the solicitation
entitled ``Scientific and Technical Information Sources.''
8. Research Topics. Describe sufficiently the R/R&D topics and
subtopics for which proposals are being solicited to inform the
applicant of technical details of what is desired. Allow flexibility in
order to obtain the greatest degree of creativity and innovation
consistent with the overall objectives of the STTR Program.
9. Submission Forms. Multiple copies of proposal preparation forms
necessary to the contracting and granting process may be required. This
section may include Proposal Summary, Proposal Cover, Budget,
Checklist, and other forms the sole purpose of which is to meet the
mandate of law or regulation and simplify the submission of proposals.
Appendix II: Codes for Tech-Net Database Program Codes
------------------------------------------------------------------------
Program Meaning
------------------------------------------------------------------------
SBIR............................. Small Business Innovation Research.
STTR............................. Small Business Technology Transfer.
BOTH............................. Both SBIR and STTR.
------------------------------------------------------------------------
Agency Codes
------------------------------------------------------------------------
Agency Meaning
------------------------------------------------------------------------
DHS.............................. Department of Homeland Security.
DOC.............................. Department of Commerce.
DOD.............................. Department of Defense.
DOE.............................. Department of Energy.
DOT.............................. Department of Transportation.
ED............................... Department of Education.
EPA.............................. Environmental Protection Agency.
HHS.............................. Department of Health and Human
Services.
NASA............................. National Aeronautics and Space
Administration.
NSF.............................. National Science Foundation.
USDA............................. U.S. Department of Agriculture.
------------------------------------------------------------------------
Branch Codes
DHS Branch Codes
------------------------------------------------------------------------
Branch Meaning
------------------------------------------------------------------------
ST............................... Science and Technology Directorate.
DNDO............................. Domestic Nuclear Detection Office.
------------------------------------------------------------------------
DOC Branch Codes
------------------------------------------------------------------------
Branch Meaning
------------------------------------------------------------------------
NOAA............................. National Oceanic and Atmospheric
Administration.
[[Page 46899]]
NIST............................. National Institute of Standards and
Technology.
------------------------------------------------------------------------
DoD Branch Codes
------------------------------------------------------------------------
Branch Meaning
------------------------------------------------------------------------
AF............................... Department of the Air Force.
ARMY............................. Department of the Army.
CBD.............................. Chemical and Biological Defense
Program.
DARP............................. Defense Advanced Research Projects
Agency.
DHP.............................. Defense Health Program.
DLA.............................. Defense Logistics Agency.
DMEA............................. Defense Microelectronics Activity.
DTRA............................. Defense Threat Reduction Agency.
MDA.............................. Missile Defense Agency.
NAVY............................. Department of the Navy.
NGA.............................. National Geospatial-Intelligence
Agency.
OSD.............................. Office of the Secretary of Defense.
SOCO............................. Special Operations Command.
------------------------------------------------------------------------
DOE Branch Codes
------------------------------------------------------------------------
Branch Meaning
------------------------------------------------------------------------
ARPA............................. Advanced Research Projects Agency--
Energy.
DOE HQ........................... Department of Energy Headquarters.
------------------------------------------------------------------------
HHS Branch Codes
------------------------------------------------------------------------
Branch Meaning
------------------------------------------------------------------------
ACF.............................. Administration for Marriage and
Families.
CDC.............................. Center for Disease Control.
FDA.............................. Food and Drug Administration.
NIH.............................. National Institute of Health.
------------------------------------------------------------------------
Research Institution Type Codes
------------------------------------------------------------------------
Type code Meaning
------------------------------------------------------------------------
1................................ Nonprofit College or University.
2................................ Domestic Nonprofit Research
Organization.
3................................ Federally Funded R&D Center (FFRDC).
------------------------------------------------------------------------
Research Institution School Categories
------------------------------------------------------------------------
School category Meaning
------------------------------------------------------------------------
ANSI............................. Alaskan Native Serving Institution.
HBCU............................. Historically Black College or
University.
HSI.............................. Hispanic Serving Institution.
TCU.............................. Tribal College or University.
NHSI............................. Native Hawaiian Serving Institution.
------------------------------------------------------------------------
Sales Codes
------------------------------------------------------------------------
Sales Code Meaning
------------------------------------------------------------------------
SF............................... Sales to Federal or Prime Contractor.
SO............................... Sales to Other.
SP............................... Sales to Private Industry.
LIC.............................. Licensing Revenue.
------------------------------------------------------------------------
Additional Funding Codes
------------------------------------------------------------------------
Additional funding code Meaning
------------------------------------------------------------------------
FT.................................. Fast Track.
P2E................................. Phase II Enhancement.
P1B................................. Phase IB.
P2A................................. Phase IIA.
P2B................................. Phase IIB.
P2CC................................ Phase IICC.
P2REU............................... Phase II REU.
P2RET............................... Phase II RET.
P2RAHSS............................. Phase II RAHSS.
P2TECP.............................. Phase II TECP.
P2I/UCRC............................ Phase II I/UCRC Membership Grants.
P2ERC............................... Phase II ERC Supplement.
P2CostMatch......................... Phase II Cost Match.
Phase II Commercialization Option... Phase II Commercialization Option.
------------------------------------------------------------------------
Investment Code
------------------------------------------------------------------------
Investment code Meaning
------------------------------------------------------------------------
IA.................................. Investment from Angel Investors.
IF.................................. Investment from Federal or Prime
Contractor.
IO.................................. Investment from Other.
IS.................................. Investment from the Small Business
Concern itself.
------------------------------------------------------------------------
Appendix III: Solicitations Database
--------------------------------------------------------------------------------------------------------------------------------------------------------
Public
Solicitation field name Reporting mechanism Agency interaction Collection frequency data (Y/ Type
N)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Solicitation Level
--------------------------------------------------------------------------------------------------------------------------------------------------------
Solicitation program................ Agencies report on Tech- Automatic or manual within 5 days of Y varchar(4).
Net. input. solicitation release
date.
Solicitation year................... Agencies report on Tech- Automatic or manual within 5 days of Y int(11).
Net. input. solicitation release
date.
Solicitation number................. Agencies report on Tech- Automatic or manual within 5 days of Y varchar(25).
Net. input. solicitation release
date.
Solicitation release................ Agencies report on Tech- Automatic or manual within 5 days of Y varchar(20).
Net. input. solicitation release
date.
Solicitation open date.............. Agencies report on Tech- Automatic or manual within 5 days of Y varchar(20).
Net. input. solicitation release
date.
Solicitation close date............. Agencies report on Tech- Automatic or manual within 5 days of Y varchar(20).
Net. input. solicitation release
date.
Solicitation title.................. Agencies report on Tech- Automatic or manual within 5 days of Y longtext.
Net. input. solicitation release
date.
Solicitation body................... Agencies report on Tech- Automatic or manual within 5 days of Y longtext.
Net. input. solicitation release
date.
Solicitation phase.................. Agencies report on Tech- Automatic or manual within 5 days of Y int(11).
Net. input. solicitation release
date.
Solicitation occurrence number...... Agencies report on Tech- Automatic or manual within 5 days of Y int(11).
Net. input. solicitation release
date.
Solicitation url.................... Agencies report on Tech- Automatic or manual within 5 days of Y varchar(2048).
Net. input. solicitation release
date.
Solicitation url title.............. Agencies report on Tech- Automatic or manual within 5 days of Y varchar(255).
Net. input. solicitation release
date.
Solicitation url attributes......... Agencies report on Tech- Automatic or manual within 5 days of Y mediumtext.
Net. input. solicitation release
date.
--------------------------------------------------------------------------------------------------------------------------------------------------------
[[Page 46900]]
Topic Level
--------------------------------------------------------------------------------------------------------------------------------------------------------
Topic title......................... Agencies report on Tech- Automatic or manual within 5 days of Y longtext.
Net. input. solicitation release
date.
Topic number........................ Agencies report on Tech- Automatic or manual within 5 days of Y varchar(30).
Net. input. solicitation release
date.
Associated solicitation............. Agencies report on Tech- Automatic or manual within 5 days of Y.
Net. input. solicitation release
date.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Appendix IV: Company Registry Database
----------------------------------------------------------------------------------------------------------------
Public
Company registry field name Reporting mechanism Agency interaction Collection data (Y/
frequency N)
----------------------------------------------------------------------------------------------------------------
Agency Tracking ......... Company reports data Receives pdf from Register or N
to SBA. Company. reconfirm at time
of application.
SBA Firm ID....................... Company reports data Receives pdf from Register or N
to SBA. Company. reconfirm at time
of application.
Company URL....................... Company reports data Receives pdf from Register or N
to SBA. Company. reconfirm at time
of application.
HQ Address 1...................... Company reports data Receives pdf from Register or N
to SBA. Company. reconfirm at time
of application.
HQ Address 2...................... Company reports data Receives pdf from Register or N
to SBA. Company. reconfirm at time
of application.
HQ City........................... Company reports data Receives pdf from Register or N
to SBA. Company. reconfirm at time
of application.
HQ Zip Code....................... Company reports data Receives pdf from Register or N
to SBA. Company. reconfirm at time
of application.
HQ Zip Code +4.................... Company reports data Receives pdf from Register or N
to SBA. Company. reconfirm at time
of application.
HQ State.......................... Company reports data Receives pdf from Register or N
to SBA. Company. reconfirm at time
of application.
Company Name...................... Company reports data Receives pdf from Register or N
to SBA. Company. reconfirm at time
of application.
Number of Employees............... XML or manual upload Agency collects Register or N
to Tech-Net. data, provides to reconfirm at time
SBA. Also updated of application.
as a part of
commercialization
information.
Flag for External Funding......... Company reports data Receives pdf from Register or N
to SBA. Company. reconfirm at time
of application.
Investment Ownership Percentage... Company reports data Receives pdf from Register or N
to SBA. Company. reconfirm at time
of application.
Majority-Owned by External Funding Company reports data Receives pdf from Register or N
Firms. to SBA. Company. reconfirm at time
of application.
Affiliate Name.................... XML or manual upload Agency collects Register or N
to Tech-Net. data, provides to reconfirm at time
SBA. of application.
Affiliate Address 1............... XML or manual upload Agency collects Register or N
to Tech-Net. data, provides to reconfirm at time
SBA. of application.
Affiliate Address 2............... XML or manual upload Agency collects Register or N
to Tech-Net. data, provides to reconfirm at time
SBA. of application.
Affiliate City.................... XML or manual upload Agency collects Register or N
to Tech-Net. data, provides to reconfirm at time
SBA. of application.
Affiliate Zip Code................ XML or manual upload Agency collects Register or N
to Tech-Net. data, provides to reconfirm at time
SBA. of application.
Affiliate Zip Code + 4............ XML or manual upload Agency collects Register or N
to Tech-Net. data, provides to reconfirm at time
SBA. of application.
Affiliate Number of Employees..... XML or manual upload Agency collects Register or N
to Tech-Net. data, provides to reconfirm at time
SBA. of application.
Additional Funding Type........... XML or manual upload Agency collects Register or N
to Tech-Net. data, provides to reconfirm at time
SBA. of application.
Additional Funding Amount......... XML or manual upload Agency collects Register or N
to Tech-Net. data, provides to reconfirm at time
SBA. of application.
Investment Type [VC, Hedge, PE]... Company reports data Receives pdf from Register or N
to SBA. Company. reconfirm at time
of application.
Investment Firm Name.............. Company reports data Receives pdf from Register or N
to SBA. Company. reconfirm at time
of application.
Investment Not U.S.-Based......... Company reports data Receives pdf from Register or N
to SBA. Company. reconfirm at time
of application.
[[Page 46901]]
Investment Amount................. Company reports data Receives pdf from Register or N
to SBA. Company. reconfirm at time
of application.
----------------------------------------------------------------------------------------------------------------
Appendix V: Application Information Database
--------------------------------------------------------------------------------------------------------------------------------------------------------
Public
Application info field name Reporting mechanism Agency interaction Collection frequency data (Y/ Type
N)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Company Name....................... XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Program [SBIR/STTR]................ XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Agency Tracking .......... XML or manual upload Agency creates this Quarterly............ N ................................
to Tech-Net. number for tracking--
not submitted by SBC.
SBA Firm ID........................ XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Agency............................. XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Solicitation Number................ XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Solicitation Topic Number.......... XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Contact First Name................. XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Contact Middle Name................ XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Contact Last Name.................. XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Contact Title...................... XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Contact Phone...................... XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Contact Email...................... XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Phase Number....................... XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Solicitation Close Date............ XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Solicitation Year.................. XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Company URL........................ XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Solicitation Topic................. XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Address 1.......................... XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Address 2.......................... XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
City............................... XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Zip Code........................... XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Zip Code +4........................ XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
State.............................. XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
HubZone Certified.................. XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
SDB................................ XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Women-Owned........................ XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Women PI........................... XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Socially and Economically XML or manual upload Agency collects data, Quarterly............ N ................................
Disadvantaged PI. to Tech-Net. provides to SBA.
[[Page 46902]]
Student/Faculty Owned.............. XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
FAST Assistance.................... XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Allow EDO's to Have Contact Info... XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Agency Contact First Name.......... XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Agency Contact Middle Name......... XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Agency Contact Last Name........... XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Agency Contact Title............... XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Agency Contact Phone ..... XML or manual upload Agency collects data, Quarterly............ N ................................
to Tech-Net. provides to SBA.
Agency Contact Email............... XML or manual upload Agency collects data, Quarterly............ N int(10) unsigned.
to Tech-Net. provides to SBA.
Key Individual Percentage of Effort XML or manual upload Agency collects data, Quarterly............ N varchar(4).
to Tech-Net. provides to SBA.
Project Aims....................... XML or manual upload Agency collects data, Quarterly............ N varchar(50).
to Tech-Net. provides to SBA.
Abstract........................... XML or manual upload Agency collects data, Quarterly............ N int(10) unsigned.
to Tech-Net. provides to SBA.
Key Individual Name................ XML or manual upload Agency collects data, Quarterly............ N int(10) unsigned.
to Tech-Net. provides to SBA.
Key Individual Position/Title...... XML or manual upload Agency collects data, Quarterly............ N int(10) unsigned.
to Tech-Net. provides to SBA.
Key Individual Email............... XML or manual upload Agency collects data, Quarterly............ N varchar(20).
to Tech-Net. provides to SBA.
Key Individual Phone............... XML or manual upload Agency collects data, Quarterly............ N varchar(25).
to Tech-Net. provides to SBA.
RIName............................. XML or manual upload Agency collects data, 60 days from time of N varchar(1).
to Tech-Net. provides to SBA. solicitation close.
RIType............................. XML or manual upload Agency collects data, 60 days from time of N varchar(35).
to Tech-Net. provides to SBA. solicitation close.
RIAddress 1........................ XML or manual upload Agency collects data, 60 days from time of N varchar(40).
to Tech-Net. provides to SBA. solicitation close.
RIAddress 2........................ XML or manual upload Agency collects data, 60 days from time of N varchar(255).
to Tech-Net. provides to SBA. solicitation close.
RICity............................. XML or manual upload Agency collects data, 60 days from time of N varchar(255).
to Tech-Net. provides to SBA. solicitation close.
RIZip Code......................... XML or manual upload Agency collects data, 60 days from time of N int(11).
to Tech-Net. provides to SBA. solicitation close.
RIZip Code +4...................... XML or manual upload Agency collects data, 60 days from time of N varchar(20).
to Tech-Net. provides to SBA. solicitation close.
RIState............................ XML or manual upload Agency collects data, 60 days from time of N int(11).
to Tech-Net. provides to SBA. solicitation close.
RI--Officer--First--Name........... XML or manual upload Agency collects data, 60 days from time of N varchar(255).
to Tech-Net. provides to SBA. solicitation close.
RI--Officer--Middle--Name.......... XML or manual upload Agency collects data, 60 days from time of N int(10) unsigned.
to Tech-Net. provides to SBA. solicitation close.
RI--Officer--Last--Name............ XML or manual upload Agency collects data, 60 days from time of N ................................
to Tech-Net. provides to SBA. solicitation close.
RI--Officer--Phone................. XML or manual upload Agency collects data, 60 days from time of N ................................
to Tech-Net. provides to SBA. solicitation close.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Appendix VI: Award Information Database
--------------------------------------------------------------------------------------------------------------------------------------------------------
Public
Award field name Reporting mechanism Agency interaction Collection frequency data (Y/ Type
N)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Phase.............................. XML or manual upload Agency collects data, Monthly.............. Y int(11).
to Tech-Net. provides to SBA.
Phase II # [if 1st or 2nd]......... XML or manual upload Agency collects data, Quarterly............ Y ................................
to Tech-Net. provides to SBA.
Contract #/Grant #................. XML or manual upload Agency collects data, Quarterly............ Y varchar(255).
to Tech-Net. provides to SBA.
[[Page 46903]]
Amount............................. XML or manual upload Agency collects data, Quarterly............ Y decimal(20,2).
to Tech-Net. provides to SBA.
SBC--Proceeds...................... XML or manual upload Agency collects data, Monthly.............. Y int(11).
to Tech-Net. provides to SBA.
RI--Proceeds....................... XML or manual upload Agency collects data, Monthly.............. Y int(11).
to Tech-Net. provides to SBA.
Third--Party--Proceeds............. XML or manual upload Agency collects data, Monthly.............. Y int(11).
to Tech-Net. provides to SBA.
SttrInitiatedCollaboration......... XML or manual upload Agency collects data, Monthly.............. Y ................................
to Tech-Net. provides to SBA.
SttrInitiatedTechnology............ XML or manual upload Agency collects data, Monthly.............. Y ................................
to Tech-Net. provides to SBA.
SttrMonthstoAgreement.............. XML or manual upload Agency collects data, Monthly.............. Y ................................
to Tech-Net. provides to SBA.
Year............................... XML or manual upload Agency collects data, Quarterly............ Y int(11).
to Tech-Net. provides to SBA.
First Date of PoP.................. XML or manual upload Agency collects data, Quarterly............ Y varchar(20).
to Tech-Net. provides to SBA.
Notification of Selection Date..... XML or manual upload Agency collects data, Quarterly............ Y varchar(20).
to Tech-Net. provides to SBA.
Award Title........................ XML or manual upload Agency collects data, Quarterly............ Y longtext.
to Tech-Net. provides to SBA.
Last Day of PoP.................... XML or manual upload Agency collects data, Quarterly............ Y varchar(20).
to Tech-Net. provides to SBA.
Associated Applicant/Proposal #.... XML or manual upload Agency collects data, Quarterly............ Y int(10) unsigned.
to Tech-Net. provides to SBA.
PI First Name...................... XML or manual upload Agency collects data, Quarterly............ Y varchar(25).
to Tech-Net. provides to SBA.
PI Middle Name..................... XML or manual upload Agency collects data, Quarterly............ Y varchar(1).
to Tech-Net. provides to SBA.
PI Last Name....................... XML or manual upload Agency collects data, Quarterly............ Y varchar(35).
to Tech-Net. provides to SBA.
PI Title........................... XML or manual upload Agency collects data, Quarterly............ Y varchar(40).
to Tech-Net. provides to SBA.
PI Phone........................... XML or manual upload Agency collects data, Quarterly............ Y varchar(255).
to Tech-Net. provides to SBA.
PI Email........................... XML or manual upload Agency collects data, Quarterly............ Y varchar(255).
to Tech-Net. provides to SBA.
ITAR Controlled.................... XML or manual upload Agency collects data, Quarterly............ Y varchar(1).
to Tech-Net. provides to SBA.
Manufacturing...................... XML or manual upload Agency collects data, Quarterly............ Y longtext.
to Tech-Net. provides to SBA.
Renewable Energy................... XML or manual upload Agency collects data, Quarterly............ Y varchar(1).
to Tech-Net. provides to SBA.
Comments [Free Text Field for XML or manual upload Agency collects data, Quarterly............ Y longtext.
Notes]. to Tech-Net. provides to SBA.
CAGE #............................. XML or manual upload Agency collects data, Quarterly............ Y varchar(5).
to Tech-Net. provides to SBA.
DUNS #............................. XML or manual upload Agency collects data, Quarterly............ Y varchar(9).
to Tech-Net. provides to SBA.
EIN................................ XML or manual upload Agency collects data, Quarterly............ N varchar(10).
to Tech-Net. provides to SBA.
RI--EIN............................ XML or manual upload Agency collects data, Monthly.............. Y varchar(10).
to Tech-Net. provides to SBA.
Award Amount Justification, if XML or manual upload Agency collects data, Quarterly............ N ................................
Limit Exceeded. to Tech-Net. provides to SBA.
Convicted or Civilly Liable Flag... XML or manual upload Agency collects data, At time of N ................................
to Tech-Net. provides to SBA. application.
CL First Name...................... XML or manual upload Agency collects data, At time of N ................................
to Tech-Net. provides to SBA. application.
CL Middle Name..................... XML or manual upload Agency collects data, At time of N ................................
to Tech-Net. provides to SBA. application.
CL Last Name....................... XML or manual upload Agency collects data, At time of N ................................
to Tech-Net. provides to SBA. application.
CL Company Associated.............. XML or manual upload Agency collects data, At time of N ................................
to Tech-Net. provides to SBA. application.
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Award data is inclusive of ``Applicant'' data fields.
[[Page 46904]]
Appendix VII: Commercialization Database
--------------------------------------------------------------------------------------------------------------------------------------------------------
Public
Commercialization field name Reporting mechanism Agency interaction Collection frequency data (Y/ Type
N)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Firm Level Commercialization
--------------------------------------------------------------------------------------------------------------------------------------------------------
Company Name....................... Agencies + companies XML or manual upload 1) In real time 2) N int(10) unsigned.
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
Agency Tracking #.................. Agencies + companies XML or manual upload 1) In real time 2) N int(10) unsigned.
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
SBA Firm ID........................ Agencies + companies XML or manual upload 1) In real time 2) N int(10) unsigned.
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
IPO................................ Agencies + companies XML or manual upload 1) In real time 2) N YES/NO.
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
IPO Value.......................... Agencies + companies XML or manual upload 1) In real time 2) N int(11).
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
IPO Amount......................... Agencies + companies XML or manual upload 1) In real time 2) N decimal(20,2).
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
IPO Year........................... Agencies + companies XML or manual upload 1) In real time 2) N int(11).
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
Merger/Acquired.................... Agencies + companies XML or manual upload 1) In real time 2) N YES/NO.
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
M&A Value.......................... Agencies + companies XML or manual upload 1) In real time 2) N decimal(20,2).
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
M&A Year........................... Agencies + companies XML or manual upload 1) In real time 2) N int(11).
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
Narrative.......................... Agencies + companies XML or manual upload 1) In real time 2) N longtext.
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
Comm Contact First Name............ Agencies + companies XML or manual upload 1) In real time 2) N varchar(25).
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
Comm Contact Middle Name........... Agencies + companies XML or manual upload 1) In real time 2) N varchar(1).
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
Comm Contact Last Name............. Agencies + companies XML or manual upload 1) In real time 2) N varchar(35).
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
Comm Contact Title................. Agencies + companies XML or manual upload 1) In real time 2) N varchar(50).
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
Comm Contact Phone................. Agencies + companies XML or manual upload 1) In real time 2) N varchar(255).
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
[[Page 46905]]
Comm Contact Email................. Agencies + companies XML or manual upload 1) In real time 2) N varchar(255).
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
Sales Amount....................... Agencies + companies XML or manual upload 1) In real time 2) N decimal(20,2).
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
SttrPercentSbc..................... Agencies + companies XML or manual upload 1) In real time 2) N int(11).
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
SttrPercentRi...................... Agencies + companies XML or manual upload 1) In real time 2) N int(11).
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
Investment Amount.................. Agencies + companies XML or manual upload 1) In real time 2) N decimal(20,2).
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
Patent #'s......................... Agencies + companies XML or manual upload 1) In real time 2) N int(11).
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
Number of Patents.................. Agencies + companies XML or manual upload 1) In real time 2) N decimal(10,2).
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
Investment Types................... Agencies + companies XML or manual upload 1) In real time 2) N ................................
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
Sales Type......................... Agencies + companies XML or manual upload 1) In real time 2) N ................................
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Award Level Commercialization
--------------------------------------------------------------------------------------------------------------------------------------------------------
Product Launched................... Agencies + companies XML or manual upload 1) In real time 2) N int(11).
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
Names of Company Established for Agencies + companies XML or manual upload 1) In real time 2) N int(11).
Product/Commercialization. report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
Sales Amount....................... Agencies + companies XML or manual upload 1) In real time 2) N int(10) unsigned.
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
Investment Amount.................. Agencies + companies XML or manual upload 1) In real time 2) N int(11).
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
Patent #'s......................... Agencies + companies XML or manual upload 1) In real time 2) N longtext.
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
Number of Patents.................. Agencies + companies XML or manual upload 1) In real time 2) N int(11).
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
Investment Types................... Agencies + companies XML or manual upload 1) In real time 2) N int(11).
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
Sales Type......................... Agencies + companies XML or manual upload 1) In real time 2) N int(11).
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
[[Page 46906]]
Phase III Value.................... Agencies + companies XML or manual upload 1) In real time 2) N int(10) unsigned.
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
Phase III Launched/Implemented Agencies + companies XML or manual upload 1) In real time 2) N int(11).
[CRP]. report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
Phase III Narrative [CRP].......... Agencies + companies XML or manual upload 1) In real time 2) N int(11).
report to Tech-Net. to Tech-Net. SBC updates prior to
subsequent award
application.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Appendix VIII: Annual Report Database
----------------------------------------------------------------------------------------------------------------
Reporting Collection Public
Annual report field name mechanism frequency data Type
----------------------------------------------------------------------------------------------------------------
agency code.................... XML or manual Annually.......... Y int(11).
upload to Tech-
Net.
Program........................ XML or manual Annually.......... Y char(4).
upload to Tech-
Net.
Year........................... XML or manual Annually.......... Y char(4).
upload to Tech-
Net.
reporting unit................. XML or manual Annually.......... Y varchar(255)
upload to Tech-
Net.
submitted by................... XML or manual Annually.......... Y varchar(100).
upload to Tech-
Net.
phone number................... XML or manual Annually.......... Y varchar(255).
upload to Tech-
Net.
Agency Extramural Budget....... XML or manual Annually.......... Y varchar(100).
upload to Tech-
Net.
Agency SBIR Budget............. XML or manual Annually.......... Y varchar(100).
upload to Tech-
Net.
Number of Solicitations XML or manual Annually.......... Y int(6).
Released. upload to Tech-
Net.
Number of Research Topics in XML or manual Annually.......... Y ............................
Solicitations. upload to Tech-
Net.
Number of Phase I Proposals XML or manual Annually.......... Y int(6).
Received. upload to Tech-
Net.
Total Phase I Awards........... XML or manual Annually.......... Y int(6).
upload to Tech-
Net.
Total Phase I Dollars Awarded XML or manual Annually.......... Y varchar(25).
($). upload to Tech-
Net.
Total Phase I Dollars to SBCs.. XML or manual Annually.......... Y int(6).
upload to Tech-
Net.
Total Phase I Dollars to RIs... XML or manual Annually.......... Y int(6).
upload to Tech-
Net.
Total Phase I Dollars to RI-- XML or manual Annually.......... Y int(6).
Universities. upload to Tech-
Net.
Total Phase I Awards to RI-- XML or manual Annually.......... Y int(6).
Universities. upload to Tech-
Net.
Total Phase I Dollars to RI-- XML or manual Annually.......... Y int(6).
FFRDCs. upload to Tech-
Net.
Total Phase I Awards to RI-- XML or manual Annually.......... Y int(6).
FFRDCs. upload to Tech-
Net.
Total Phase I Dollars to RI-- XML or manual Annually.......... Y int(6).
Non-Profit R&D. upload to Tech-
Net.
Total Phase I Awards to RI--Non- XML or manual Annually.......... Y int(6).
Profit R&D. upload to Tech-
Net.
Minority/Disadvantaged Phase I XML or manual Annually.......... Y int(6).
Awards. upload to Tech-
Net.
Minority/Disadvantaged Phase I XML or manual Annually.......... Y varchar(25).
Dollars Awarded ($). upload to Tech-
Net.
HUBZone Phase I Awards......... XML or manual Annually.......... Y int(6).
upload to Tech-
Net.
HUBZone Phase I Dollars Awarded XML or manual Annually.......... Y int(6).
($). upload to Tech-
Net.
phase1 hubzone dollars XML or manual Annually.......... Y varchar(25).
obligated. upload to Tech-
Net.
phase1 manufacturing awards.... XML or manual Annually.......... Y int(6).
upload to Tech-
Net.
phase1 manufacturing dollars XML or manual Annually.......... Y varchar(25).
obligated. upload to Tech-
Net.
Number of Phase II Proposals XML or manual Annually.......... Y int(6).
Received. upload to Tech-
Net.
Total Phase II Awards.......... XML or manual Annually.......... Y int(6).
upload to Tech-
Net.
Total Phase II Dollars Awarded XML or manual Annually.......... Y varchar(25).
($). upload to Tech-
Net.
Total Phase II Dollars to SBCs. XML or manual Annually.......... Y int(6).
upload to Tech-
Net.
Total Phase II Dollars to RIs.. XML or manual Annually.......... Y int(6).
upload to Tech-
Net.
Total Phase II Dollars to RI-- XML or manual Annually.......... Y int(6).
Universities. upload to Tech-
Net.
Total Phase II Awards to RI-- XML or manual Annually.......... Y int(6).
Universities. upload to Tech-
Net.
Total Phase II Dollars to RI-- XML or manual Annually.......... Y int(6).
FFRDCs. upload to Tech-
Net.
Total Phase II Awards to RI-- XML or manual Annually.......... Y int(6).
FFRDCs. upload to Tech-
Net.
Total Phase II Dollars to RI-- XML or manual Annually.......... Y int(6).
Non-Profit R&D. upload to Tech-
Net.
Total Phase II Awards to RI-- XML or manual Annually.......... Y int(6).
Non-Profit R&D. upload to Tech-
Net.
Minority/Disadvantaged Phase II XML or manual Annually.......... Y int(6).
Awards. upload to Tech-
Net.
Minority/Disadvantaged Phase II XML or manual Annually.......... Y varchar(25).
Dollars Awarded ($). upload to Tech-
Net.
HUBZone Phase II Awards........ XML or manual Annually.......... Y int(6).
upload to Tech-
Net.
HUBZone Phase II Dollars XML or manual Annually.......... Y int(6).
Awarded ($). upload to Tech-
Net.
phase2 hubzone dollars XML or manual Annually.......... Y varchar(25).
obligated. upload to Tech-
Net.
phase2 manufacturing awards.... XML or manual Annually.......... Y int(6).
upload to Tech-
Net.
phase2 manufacturing dollars XML or manual Annually.......... Y varchar(25).
obligated. upload to Tech-
Net.
new phase2 with dollars XML or manual Annually.......... Y int(6).
obligated. upload to Tech-
Net.
new phase2 dollars obligated... XML or manual Annually.......... Y varchar(25).
upload to Tech-
Net.
[[Page 46907]]
old phase2 with dollars XML or manual Annually.......... Y int(6).
obligated. upload to Tech-
Net.
old phase2 dollars obligated... XML or manual Annually.......... Y varchar(25).
upload to Tech-
Net.
number amount modified......... XML or manual Annually.......... Y int(6).
upload to Tech-
Net.
amount modified................ XML or manual Annually.......... Y varchar(25).
upload to Tech-
Net.
agency obligations............. XML or manual Annually.......... Y varchar(50).
upload to Tech-
Net.
phase1 success rate............ XML or manual Annually.......... Y varchar(3).
upload to Tech-
Net.
phase2 success rate............ XML or manual Annually.......... Y varchar(3).
upload to Tech-
Net.
overall success rate........... XML or manual Annually.......... Y varchar(3).
upload to Tech-
Net.
The percentage of new phase 1 XML or manual Annually.......... Y varchar(3).
awards where difference upload to Tech-
between Solicitation Close Net.
Date and Proposal Award Date
is less than 180 days
(ProposalAwardDate--Solicitati
onCloseDate).
The average of the number of XML or manual Annually.......... Y varchar(50).
days between Solicitation upload to Tech-
Close Date and Proposal Award Net.
Date for all the new phase 1
awards (ProposalAwardDate--
SolicitationCloseDate).
The average of the number of XML or manual Annually.......... Y varchar(50).
days between the Contract End upload to Tech-
Date for the related phase 1 Net.
award and the Proposal Award
Date for all the new phase 2
awards (P2 Proposal Award
Date--P1 ContractEndDate).
The average number of days XML or manual Annually.......... Y varchar(50).
between Proposal Selection upload to Tech-
Date and Proposal Award Date Net.
for all the new phase 2 awards
(ProposalAwardDate--ProposalSe
lectionDate).
The percentage of new phase 2 XML or manual Annually.......... Y varchar(3).
awards where the number of upload to Tech-
days between Proposal Net.
Selection Date and Proposal
Award Date was less than 60
(ProposalAwardDate--ProposalSe
lectionDate).
sbcname changed................ XML or manual Annually.......... Y text.
upload to Tech-
Net.
one proposal per solicitation.. XML or manual Annually.......... Y text.
upload to Tech-
Net.
more than 15 awards............ XML or manual Annually.......... Y text.
upload to Tech-
Net.
justification.................. XML or manual Annually.......... Y text.
upload to Tech-
Net.
submitted...................... XML or manual Annually.......... Y timestamp.
upload to Tech-
Net.
confirmed--by--uid............. XML or manual Annually.......... Y int(10) unsigned.
upload to Tech-
Net.
XML or manual Annually.......... Y ............................
upload to Tech-
Net.
Annual Report calculations
based on above fields
Dollars Obligated.............. XML or manual Annually.......... Y ............................
upload to Tech-
Net.
Percent of SBIR to Extramural XML or manual Annually.......... Y ............................
Budget. upload to Tech-
Net.
Deficit/Surplus................ XML or manual Annually.......... Y ............................
upload to Tech-
Net.
Exceeding award size threshold XML or manual Annually.......... Y ............................
of 150%. upload to Tech-
Net.
Award cross btwn SBIR and STTR XML or manual Annually.......... Y ............................
programs. upload to Tech-
Net.
XML or manual Annually.......... Y ............................
upload to Tech-
Net.
Additions to Annual Report XML or manual Annually.......... Y ............................
tracking compliance grievance. upload to Tech-
Net.
grievance tracking for data XML or manual Annually.......... Y ............................
rights. upload to Tech-
Net.
-track deficit/surplus of XML or manual Annually.......... Y ............................
budgets, esp. VC, etc. backed. upload to Tech-
Net.
Track data at component level.. XML or manual Annually.......... Y ............................
upload to Tech-
Net.
----------------------------------------------------------------------------------------------------------------
Appendix IX--Performance Areas, Metrics and Goals
(a) Examples of performance areas include:
(1) company and agency-level commercialization of awards (see
commercialization section for detail);
(2) repeat-award winners;
(3) outreach to first time SBIR/STTR applicants, WOSBs, SDBs--
including percentage of new applicants from those demographics that
have applied to the agency, and other goals and metrics established
by the agency and the interagency policy committee;
(4) shortening review and award timelines for small businesses
(collected annually in annual report).
(b) Examples of metrics relating to timelines for awards of
Phase I funding agreements and performance start dates of the
funding agreements, include:
(1) The percentage of Phase I awards where the duration between
the closing date of the solicitation and the first date of the
period of performance on the funding agreement is less than 180
calendar days.
(2) The average duration of time between a Phase I solicitation
closing date and the first day of the period of performance on the
funding agreement.
(3) The percentage of Phase I awards where the duration between
the closing date of the solicitation and the notification of
recommendation of award is not more than one year for NIH or NSF and
not more than 90 calendar days for all other agencies.
(4) The average duration of time between a Phase I solicitation
closing date and the notification of recommendation for award.
[[Page 46908]]
(c) Examples of metrics relating to timelines for awards of
Phase II funding agreements and performance start dates of the
funding agreements, include:
(1) The percentage of Phase II awards where the duration between
the closing date of the solicitation, or the applicable date for
receiving the Phase II application, and the first date of the period
of performance on the funding agreement is the less than 180
calendar days.
(2) The average duration of time between a Phase II solicitation
close dating and the first day of the period of performance on the
funding agreement.
(3) The percentage of Phase II awards where the duration between
the closing date of the solicitation, or the applicable date for
receiving the Phase II application, and the notification of
recommendation of award is not more than one year for NIH or NSF and
not more than 90 calendar days for all other agencies.
(4) The average duration of time between a Phase II solicitation
closing date, or the applicable date for receiving the Phase II
application--and the notification of recommendation for award.
(5) The average duration of time between the end of the period
of performance on a Phase I funding agreement and the closing date
for a Phase II solicitation for the same work.
(6) The number of awardees for whom the Phase I process exceeded
6 months, starting from the closing date of the STTR solicitation to
award of the funding agreement.
(7) Metrics with respect to each STTR agency's adherence to
Policy Directive and implementation.
(8) Metrics with respect to agencies' measures to reduce fraud,
waste and abuse within the STTR Program and coordination with the
STTR agency's OIG.
Appendix X--National Academy of Sciences Study
(a) The purpose of the study is to:
(1) Continue the most recent study relating to the following
issues:
(i) a review of the value to the Federal research agencies of
the research projects being conducted under the STTR Program, and of
the quality of research being conducted by small businesses
participating under the program, including a comparison of the value
of projects conducted under the STTR Program to those funded by
other Federal research and development expenditures;
(ii) to the extent practicable, an evaluation of the economic
benefits achieved by the STTR Program, including the economic rate
of return, and a comparison of the economic benefits, including the
economic rate of return, achieved by the STTR Program with the
economic benefits, including the economic rate of return, of other
Federal research and development expenditures;
(iii) an evaluation of the noneconomic benefits achieved by the
STTR Program over the life of the program;
(iv) an analysis of whether Federal agencies, in fulfilling
their procurement needs, are making sufficient effort to use small
businesses that have completed a second phase award under the STTR
Program; and
(2) Conduct a comprehensive study of how the STTR program has
stimulated technological innovation and technology transfer,
including--
(i) a review of the collaborations created between small
businesses and Research Institutions, including an evaluation of the
effectiveness of the program in stimulating new collaborations and
any obstacles that may prevent or inhibit the creation of such
collaborations;
(ii) an evaluation of the effectiveness of the program at
transferring technology and capabilities developed through Federal
funding;
(iii) to the extent practicable, an evaluation of the economic
benefits achieved by the STTR program, including the economic rate
of return;
(iv) an analysis of how Federal agencies are using small
businesses that have completed Phase II under the STTR program to
fulfill their procurement needs;
(v) an analysis of whether additional funds could be employed
effectively by the STTR program; and
(vi) an assessment of the systems and minimum performance
standards relating to commercialization success established under
section 9(qq) of the Small Business Act;
(3) Make recommendations with respect to--
(i) measures of outcomes for strategic plans submitted under 5
U.S.C. 306 and performance plans submitted under 31 U.S.C. 1115, of
each Federal agency participating in the STTR Program;
(ii) how to increase the use by the Federal Government in its
programs and procurements of technology-oriented small businesses;
(iii) improvements to the STTR Program, if any are considered
appropriate; and
(iv) how the STTR program can further stimulate technological
innovation and technology transfer.
(4) Estimate the number of jobs created by the SBIR or STTR
program of the agency, to the extent practicable.
[FR Doc. 2012-18120 Filed 8-3-12; 8:45 am]
BILLING CODE 8025-01-P