CHAPTER 1.0 Program Description
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1.1 Summary
1.2 Program Features
1.3 Three-Phase Program
1.4 Eligibility to Participate in SBIR/STTR
1.5 General Information
1.1 Summary
The National Science Foundation (NSF), an independent agency of the Federal Government, invites eligible small business concerns to submit Phase I proposals for its 1999 Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs. The 1999-solicitation period for SBIR/STTR Phase I proposals begins on March 1, 1999 and ends on June 9, 1999. NSF will support high quality projects on important scientific, engineering, or science/engineering education problems and opportunities that could lead to significant commercial and public benefit if the research is successful.
The significant difference between the SBIR and STTR programs is that the STTR requires researchers at universities and other research institutions to play a significant intellectual role in the conduct of each STTR project. These university-based researchers, by joining forces with a small company, can spin-off their commercially promising ideas while they remain primarily employed at the research institution.
1.2 Program Features
1.2.1 Legislative Basis.
This SBIR solicitation is issued pursuant to the authority contained in Public Law 97-219, as amended (Small Business Innovation Development Act of 1982) (15 U.S.C. 638). SBIR policy is provided by the Small Business Administration (SBA) through the SBA Policy Directive, January 26, 1993.
The STTR Program, currently in five Federal agencies, was established by the Small Business Technology Transfer Act of 1992 (Public Law 102-564, Title II). Under this program a small portion of a Federal agency's extramural research and research and development (R/R&D) effort is reserved for awards to small business concerns and their non-profit research institution partners for cooperative research and development efforts. For more information on the other STTR programs see website: http://www.sba.gov/sbir/
1.2.2 Program Purposes.
The SBIR Program stimulates technological innovation in the private sector, by strengthening the role of small business concerns in meeting Federal research and development needs, increasing the commercial application of federally supported research results, and fostering and encouraging participation by socially and economically disadvantaged persons and women-owned small businesses in technological innovation.
The primary objective of the NSF SBIR/STTR Program is to increase the incentive and opportunity for small firms to undertake cutting-edge, high risk, high quality scientific, engineering, or science/engineering education research that would have a high potential economic payoff if the research is successful. The STTR program further expands the public/private partnership to include joint venture opportunities for small businesses and non-profit research institutions. NSF expects synergism in the proposed research. A team approach is required in which at least one research investigator is employed by the small business concern and at least one investigator is employed by the research institution. The proposed research for both SBIR and STTR must be responsive to the NSF program interests stated in the topic descriptions of this solicitation (see Chapter 8.0).
The NSF SBIR/STTR Programs do not support projects that are primarily for demonstration, technical assistance, literature survey, and market research. Patent application and patent litigation costs are not supported under NSF SBIR/STTR awards.
NSF does not normally support bioscience research with disease-related goals, including work on the etiology, diagnosis, or treatment of physical or mental disease, abnormality, or malfunction in human beings or animals. Animal models of such conditions or the development or testing of drugs or other procedures for their treatment also are not eligible for support. However, research in bioengineering, with diagnosis or treatment-related goals, that applies engineering principles to problems in biology and medicine while advancing engineering knowledge, is eligible for support. Bioengineering research to aid persons with disabilities is also eligible, as are biomedical applications in certain areas of microelectronic information processing.
The SBIR/STTR Programs are not a substitute for existing unsolicited proposal mechanisms used in other NSF programs. Unsolicited proposals will not be accepted under the SBIR/STTR Programs in either Phase I or Phase II.
1.2.3 Program Funding.
Participating agencies conduct SBIR/STTR programs by reserving a small percent of their research and development budgets for funding agreements with small business concerns for R/R&D during the first two phases of the three-phase process described here. Each agency, at its sole discretion, selects the technical topics and subtopics included in its Solicitation and selects its SBIR/STTR awards. Phase III follow-on funding supports development efforts using non-SBIR and usually non-Federal funding for commercial application of the research supported by NSF under Phases I and II.
NSF SBIR Phase I awards will be made for a maximum of $100,000; SBIR Phase II awards will be made for a maximum of $400,000. A new supplemental award will be made to eligible SBIR Phase II grantees for a maximum of $200,000. NSF STTR Phase I awards will be made for a maximum of $100,000; STTR Phase II awards will be made for a maximum of $450,000.
1.2.4 NSF Program Management.
The mission of the National Science Foundation is to promote the progress of science and engineering. NSF serves the Nation by investing in research and education in all aspects of science, mathematics, and engineering. NSF's investment in research and education, contribution to the Federal research portfolio and mission and goals are described in
NSF in a Changing World: The National Science Foundation's Strategic Plan (NSF 95-24) This Strategic Plan outlines the vision, mission and goals, and core strategies for the accomplishment of those goals. NSF has identified four core strategies that are designed to build a strong resource base on which its research and education programs can draw. NSF's SBIR/STTR program goals are aligned with these strategies in a specific way to:
Program Emphasis for 1999-National Critical Technologies.
The NSF SBIR/STTR Program encourages proposals across all fields of science and engineering supported by the Foundation. (See Chapter 8.0, Research Topic Descriptions.) Within that framework, the following critical technology areas of national importance are emphasized:
1.3 Three-Phase SBIR/STTR Programs
1.3.1 Phase I.
SBIR Phase I is a six-month experimental or theoretical investigation on the proposed innovative research or activity. It should determine the scientific, technical and commercial merit, and feasibility of the idea or concept. The STTR Phase I project is a collaborative effort with a Research Institution (see Chapter 2.0 for the definition) and is a 12-month effort. The work proposed for SBIR/STTR Phase I should be suitable in nature for subsequent progression to Phases II and III. Contingent upon the success of the effort in Phase I, the ultimate aim of the research should be to develop products, processes, devices, or techniques, that can be commercialized. The Principal Investigator should approach the SBIR/STTR Programs with the objective of bringing the project to fruition in Phase III, via a Phase II effort.
SBIR Phase I proposals should be prepared in accordance with instructions in Chapter 3.0. STTR Phase I proposals should be prepared in accordiance with instructions in Chapter 9.0 Evaluation and selection criteria are described in Chapter 4.0.
A Phase I Final Report is required for the completion of a Phase I SBIR/STTR project. All Phase I Final Reports should be prepared in accordance with the instructions in Chapter 5.0. SBIR and STTR Phase I awards are fixed-price grants.
1.3.2 Phase II.
Phase II further develops the proposed concept, building on the feasibility project undertaken in Phase I and incorporating the reassessment of scientific, technical, and commercial merit and feasibility, as well as other relevant information in the Phase II plans. Only an NSF SBIR/STTR Phase I grantee who successfully completes a Phase I project and submits an acceptable Phase I Final Report is eligible to submit an NSF SBIR/STTR Phase II proposal pursuant to that Phase I award. Phase II SBIR/STTR awards have an expected period of performance of 24 months.
SBIR Phase II proposals should be prepared in accordance with instructions in Chapter 10.0 and STTR Phase II proposals should be prepared in accordance with instruction in Chapter 9.0. Evaluation and selection criteria are described in Chapter 4.0. Phase II Semi-Annual Reports are required as discussed in Chapter 5.0.
1.3.3 Phase III.
The objective of Phase III is to pursue commercial applications of the government-funded research. Phase III is to be conducted with non-SBIR/STTR funds (either Federal or non-Federal). NSF normally will not fund Phase III efforts. NSF favorably views those firms which have valid business arrangements that pursue continued development of applications developed under NSF SBIR/STTR Phases I and II. For further discussion, see sections covering commercial potential, and Phase II commercialization plan and Follow-On funding commitment(s) found in Chapter 10, Section 10.2, Part 14.
1.4 Eligibility to Participate in SBIR and STTR
1.4.1 Small Business Concern.
Only firms qualifying as small business concerns as defined in Chapter 2 of this solicitation are eligible to participate in the SBIR/STTR program. Socially and economically disadvantaged small business concerns and women-owned small business concerns are particularly encouraged to propose.
Proposals from joint ventures and partnerships are permitted, provided the entity created qualifies as a small business in accordance with this solicitation. Proposing firms are also encouraged to take advantage of research expertise and facilities that may be available to them at colleges, universities, national laboratories and from other research providers. Such collaborations may include research subcontracts, consulting agreements or the employment of faculty as "Senior Personnel" and of graduate or undergraduate students as assistants by the small business.
In an SBIR Phase I a maximum of one-third of the research and/or research services, as determined by the total budget, may be used for faculty/university and/or other consultant/subawardee participation. In an SBIR Phase II a maximum of one-half of the research and/or research services may be expended for any combination of consulting and subcontracting by university faculty and/or other consultant/subawardee.
In the STTR Program (Phase I and II), research is to be conducted jointly by a small business concern and a non-profit research institution. Not less than 40 percent of the work conducted under an STTR award must be performed by the small business concern, and not less than 30 percent of the work must be performed by the non-profit research institution. That is, a minimum of 40 percent of the total budget must be allocated to the small business concern, and a minimum of 30 percent of the total budget must be allocated to the cooperating research institution.
ONLY THOSE NSF SBIR/STTR PHASE I GRANTEES THAT HAVE SUBMITTED PHASE I FINAL REPORTS (that have been accepted by the SBIR Program Manager) ARE ELIGIBLE TO SUBMIT SBIR/STTR PHASE II PROPOSALS TO NSF.
1.4.2 Research Institution (pertains only to STTR proposals).
The cooperating research institution must qualify as a research institution under the definition given in Chapter 2. However, NSF does not normally support activities of those scientists and engineers employed by Federally Funded Research and Development Centers (FFRDCs).
1.4.3 Place of Performance.
For both Phase I and II, the R/RD must be performed in the United States (see Chapter 2).
1.4.4 Principal Investigator.
The Principal Investigator (PI) is considered key to the success of the effort; therefore a PI's involvement with the project must be substantial. The following requirements are mandatory for both Phase I and II:
PI Functions.
The functions of the PI are planning and directing the SBIR project, leading it technically and making substantial personal contributions during its implementation, serving as the primary contact with NSF on the project, and ensuring that the work proceeds according to the grant agreement. Competent management of PI functions is essential to project success. The Phase I proposal shall describe the nature of the PI's activities and the amount of time that the PI will apply personally on the project.
PI Qualifications.
The qualifications and capabilities of the proposed PI and the basis for PI selection are to be clearly presented in the proposal. If the individual who is proposed as PI is not a U.S. citizen, he/she must legally reside in the U.S. and be legally empowered to work in the U.S. at the time that an award is made. INS Form I-9 incorporates the requirements for non-US citizen residency with information on participation in the SBIR and other Federal programs (see http://www.ins.usdoj.gov/forms/).
Co-Principal Investigators.
Co-PIs are not permitted.
Misrepresentation and PI Substitutions.
Misrepresentation of PI qualifications and eligibility will disqualify a proposer, and legal actions may be taken. A proposed substitution of a PI by a small business concern requires NSF's approval. An advance 30 day written approval (except in extraordinary circumstances, such as the death of the PI) is required. PI change requests should be addressed to the SBIR/STTR Program Manager or the Director, Industrial Innovation Group, 4201 Wilson Blvd., Room 550, Arlington, VA 22230 and must be approved in writing by the Grants Officer. NSF expects the PI proposed in Phase I would remain the same from the time of inception of the Phase I award until its completion. It is also expected that the PI on a Phase II project will be the same individual who served in the Phase I award. A change in PI prior to an award could affect whether an award will be made.
Primary Employment.
The small business concern must certify in the proposal that the primary employment of the PI will be with the small business concern at the time of award and during the conduct of the project. Primary employment means the PI spends more than one-half of his/her time in the employ of the small business. The percent of time or effort expended is calculated on a calendar-month basis.
PRIMARY EMPLOYMENT WITH A SMALL BUSINESS PRECLUDES FULL-TIME EMPLOYMENT AT ANOTHER ORGANIZATION.
Academic Affiliation and Non-Profit Organizations.
An individual employed full-time by an academic institution may become eligible to serve as the Principal Investigator if the individual provides a statement signed by his/her Department Head and an Authorized Organizational Representative of the institution approving a leave or sabbatical leave, providing for a minimum of 51 percent release from full-time employment at the academic institution for the full Phase I and Phase II periods of performance, should the awards be made.
The above statement approving release from employment at an academic institution should be included as part of the Phase I proposal. Academically-employed Principal Investigators - whether full-time or part-time, tenured professors, adjunct professors, emeritus professors, consulting professors, lecturers, research associates, research scientists, or students, etc. - are urged to consult with an NSF SBIR Program Director on any question about their eligibility prior to submitting a proposal.
Any proposed Principal Investigator whose employment at an academic institution will terminate before the effective date of the award should make an explicit statement to that effect in the proposal.
Research Support through an Academic Institution.
The National Science Foundation has revised its policy to allow an individual serving as a Principal Investigator on an SBIR award to simultaneously receive research support through an academic institution, whether the source of that support is public or private. An individual who is receiving research support through an academic institution or an individual who has pending proposals submitted through an academic institution prior to receiving an SBIR award must disclose such current and pending support, as discussed in Chapter 3 sections covering current and pending support of PI and senior personnel.
Proposals which are overlapping or equivalent to research supported through an academic institution will not be funded.
Other Employment.
Proposed Principal Investigators who are not primarily employed by the small firm or by an academic institution at the time the proposal is submitted must demonstrate how they will meet the eligibility requirements. Letters pertaining to leave or certifications of intent to become full-time employees of the firm should be included in the proposal.
1.4.5 Research Institution Investigator (pertains only to STTR proposals).
The Research Institution Investigator must have a primary employment affiliation with the research institution. NSF will not normally make an award to a small business concern that has a business association with the Research Institution Investigator.
1.5 General Information
1.5.1 Electronic Distribution of Solicitation.
The 1999 SBIR/STTR Phase I Solicitation and Phase II Instruction Guide is available only via electronic means through the NSF SBIR/STTR home page ( http://www.eng.nsf.gov/sbir/). Printed copies of the solicitation will not be distributed. Potential proposers are encouraged to check the SBIR/STTR home page for updates on the program. Any updates or corrections to the solicitation will be posted there.
1.5.2 Other Means of Contacting NSF SBIR
SBIR Program Support Office:
The e-mail address for contacting NSF with questions regarding the 1999 SBIR/STTR Phase I Solicitation and Phase II Instruction Guide is:
sbir@nsf.gov
Inquiries and requests may be made by facsimile to 703-306-0337 and must include the name, address, and telephone number of the person making the request and the specific questions or requests legibly printed.
Requests for general information about the NSF SBIR program should be mailed to:
1.5.3 Questions about this Solicitation.
To ensure fairness, questions relating to the intent and/or content of research topics in this solicitation cannot be answered once the solicitation is open. Only questions requesting clarification of solicitation instructions and administrative matters will be answered.
1.5.4 Questions Regarding Proposal Status.
Except for an acknowledgment card (to be mailed within 30 days of the closing date), information about proposal status will not be available until letters of award/declination are received by the small business concern. Chapter 6.0.)