h t t p : / / w w w . u s c . e d u / g o / t t c A Winning SBIR Strategy: Connect to the Source NASA’s SBIR and STTR Programs Introduce myself. Presented by: Martin Zeller Date: May 25, 2005 U S C E N G I N E E R I N G T E C H N O L O G Y T R A N S F E R C E N T E R A N A S A R E G I O N A L T E C H N O L O G Y T R A N S F E R C E N T E R h t t p : / / w w w . u s c . e d u / g o / t t c

NASA’s Technology Transfer Network Northeast RTTC Midwest RTTC Mid- Atlantic RTTC Far West RTTC Southeast RTTC Mid-Continent RTTC

NASA Technology Transfer Mechanisms Licensing of NASA-owned intellectual property Collaborative arrangements and partnerships Space Act Agreements Reimbursable or non-reimbursable Joint Sponsored Research Agreements Cooperative agreements and grants MOU/MOA SBIR/STTR

Objectives of the SBIR Program Stimulate technological innovation Use small business to meet federal R&D needs Increase private sector commercialization derived from federal R&D Encourage participation by disadvantaged and minority persons in technological innovation

SBIR in a Nutshell SBIR is a federal set-aside funding program for small businesses Eleven federal agencies solicit proposals for innovative research in areas of interest to the agencies 2.5 % of agency extramural R&D budget SBIR funds innovative, high-risk, early-stage technology R&D projects that have potential for commercial success Eligible small businesses compete for SBIR awards Over $2 billion in funding is available this year

STTR: Companion Program to SBIR STTR is the Small Business Technology Transfer Program Five federal agencies participate Set-aside is only 0.3% of the agencies’ extramural R&D budgets (compared to 2.5% for SBIR) A small business must form a partnership with a nonprofit research institution to be funded under STTR The small business is the prime contractor Goal is to facilitate commercialization of technology developed by a nonprofit research institution through the entrepreneurship of a small business

Total of all agencies is more than $2 Billion! Agency SBIR/STTR Annual Funding Levels Total of all agencies is more than $2 Billion! DoD $1.08 Billion (FY05)--SBIR/STTR DHHS/NIH $631 Million (FY04)--SBIR/STTR NASA $120 Million (FY05)--SBIR/STTR DoE $114 Million (FY05)--SBIR/STTR NSF $103.6 Million (FY03)--SBIR/STTR HSARPA $23 Million (FY05) USDA $18.3 Million (FY05) DoED $8.7 Million (FY02) DoC $8.5 Million (FY04) EPA $6 Million (FY05) DoT $5.3 Million (FY03)

Firm Size Distribution* Who Participates in SBIR *FY01 Phase I DOD Award Winners Firm Size Distribution*

The Three Phases of NASA SBIR/STTR Phase I: Feasibility Study SBIR - $70,000 for 6 months STTR - $100,000 for 12 months Phase II: Prototype Development SBIR and STTR - $600,000 for 24 months Phase III: Commercialization No SBIR funds available for Phase III Small business procures other NASA program development funds, product orders, intellectual property licenses, commercial partners, etc.

What’s in it for the Small Business? A source of funds to conduct research and development that a small firm might not otherwise be able to afford Small business incurs no debt, loss of equity or control of the company Best utilized by companies that integrate SBIR funds into a strategic plan for growth through new product or service development Tacit endorsement by the federal government of the small firm’s research qualifications (looks good on the resume) A chance to become a supplier of specialized products or services to the private sector or back to a government agency (technology infusion) An opportunity to grow the small business through strategic alliances with larger corporate partners

Before You Dive In to NASA SBIR NASA accepts phase I proposals only during one ten week period each year, usually from July to September Success is not just about getting phase I and phase II funding To succeed in SBIR requires following through all the way to commercialization (phase III) A small business must have a “commercialization mindset” going into phase I to succeed ultimately in SBIR Do not propose SBIR efforts that distract you from your company’s strategic goals

The First Goal of Any SBIR Proposer Win a phase I award This is critical since companies can not bypass phase I and jump in at phase II

Understand NASA SBIR Technology Needs Review past solicitations Get to know your customer Establish a relationship with relevant NASA sub- topic manager(s) Get feedback on whether your proposed approach meets a NASA need Caveat: NASA sub-topic managers are not identified in the SBIR/STTR solicitation Blackout period when solicitation is open

NASA Quirks and Nuances Only one solicitation per year Projects are funded by contracts, not grants No fast track option Phase I SBIR win rate is about 1:8 Phase I STTR win rate is about 1:4

Prepare High Quality SBIR Proposals Read and follow the solicitation carefully Know your customer Know the evaluation criteria Get help from other resources

Read and Follow the Solicitation Carefully Prepare High Quality SBIR Proposals Read and Follow the Solicitation Carefully Get it from http://sbir.nasa.gov The solicitation provides all necessary forms and instructions for preparation, assembly and submission of a proposal Resist the urge to organize your proposal in a free-form, stream-of-consciousness fashion Use the section numbering scheme prescribed in the solicitation The solicitation tells precisely what to cover in each section; so cover it. If a section is not applicable, say so. Submit on time and meet administrative screening requirements This one is focused specifically on the SBIR program.

Prepare High Quality SBIR Proposals Know Your Customer Use last year’s solicitation to identify topics to which you believe you can be responsive Use RTTC, NASA SBIR Manager to identify NASA authors of relevant SBIR topics (NASA calls them Sub-Topic Managers) Establish a relationship with the Sub-Topic Manager. He or she may be your customer if you win an award. These people can help you understand NASA’s real, sometimes unstated, needs and priorities. Tailor your SBIR proposal accordingly Timing is important: Sub-Topic Managers are not available to advise you during the ten-week period each year when NASA is accepting proposals. Plan ahead.

Know The Evaluation Criteria Prepare High Quality SBIR Proposals Know The Evaluation Criteria The solicitation tells you what the evaluation criteria are For phase I proposals: Scientific/technical merit and feasibility (50%) Experience, qualifications and facilities (25%) Effectiveness of proposed work plan (25%) Commercial merit and feasibility (qualitative score, used for breaking ties) Increase the odds of winning by making your proposal shine in each of these areas Look outside the company to acquire necessary resources to address deficiencies

Know and Use SBIR Program Resources Prepare High Quality SBIR Proposals Know and Use SBIR Program Resources NASA Far West RTTC NASA SBIR Managers NASA SBIR website (http://sbir.nasa.gov) NASA SBIR Solicitation Participation guide Previous Award Winners Successes Key NASA Contacts NASA SBIR Support contractor REI Systems

For Further Information . . . NASA Far West Regional Technology Transfer Center http://www.usc.edu/go/ttc 213-743-2353 800-642-2872 nasa@usc.edu

NASA SBIR Website http://sbir.nasa.gov For Further Information . . . NASA SBIR Website http://sbir.nasa.gov