1. DoD SBIR/STTR Overview
Spring National SBIR Conference
May 17, 2017 | National Harbor, MD
David Sikora, Acting Program Administrator
For Official Use Only

2. Effects of SBIR funding
SBIR Impact: IntraLase
Founded in 1997
First SBIR Award: 1998
Total SBIR Funding
$2M from 8 awards
Funding Agencies: Air Force, NIH
Effects of SBIR funding
“What we were trying to do was so risky that no rational investor would give us money,” recalls Angle. “The SBIR Program would listen because they were looking for innovative research.”
Colin Angle, Cofounder of iRobot
Originally for use on Air Force pilots, this innovation has improved eye surgery worldwide
Over 5 million eyes surgeries performed using Intralase system
Intralase acquired in 2007 for $877 million by Advanced Medical Optics, a division of Abbott
SBIR Impact: IntraLase

3. About SBIR/STTR Programs
Small Business Innovation Research (SBIR) Small Business Technology Transfer (STTR)
Congressionally-mandated programs. SBIR started in 1982; STTR started in 1992
Funded as a set-aside assessment of extramural R&D budget; SBIR for Agencies with >$100M RDT&E budget; STTR for Agencies with > $1B RDT&E budget
Encourage participation by minorities and disadvantaged persons in technological innovation
SBA programmatic authority over federal SBIR & STTR programs (Program Policy Directives)
For Official Use Only

4. Program Goals Small Business Innovation Research (SBIR)
Small Business Technology Transfer (STTR)
Create vehicles for moving ideas from research institutions to market 1
Stimulate technological innovation 1
Increase small business participation in federally funded R&D
Enable researchers to pursue commercial application of technologies 2 2
Foster participation by socially and economically disadvantaged firms in technological innovation
Bridge funding gap between basic research and commercial product 3 3
Increase private sector commercialization of federal R&D 4

5. Funds R&D at small businesses
SBIR Overview & Eligibility
SBIR Overview:
SBIR Eligibility:
Requires each federal agency with an extramural for R&D over >$100M to set-aside 3.0% for SBIR FY16 (3.2% in FY17)
Funds R&D at small businesses
Organized for-profit U.S. business 1
At least 51% U.S. owned by individuals and independently operated 2 3
500 or fewer employees
PI’s primary employment with small business during project 4

6. Sole-sourcing allowed for follow-on awards
What’s Unique About DoD
Focused on the warfighter
Issues contracts not grants
Largest SBIR program in the Federal Government
Retain data rights for 5 years
DoD is both an investor and a customer
Does not allow majority-owned by multiple VCOCs, equity, or hedge funds to participate
Sole-sourcing allowed for follow-on awards
For Official Use Only

7. STTR Overview & Eligibility
STTR Eligibility:
Requires each federal agency with an extramural for R&D over >$1B to set- aside 0.45% for STTR in FY16 and beyond
Funds cooperative R&D between small businesses and research institutions
Formal Cooperative R&D Effort with a U.S. Research Institution 1 2
Minimum 40% by small business, 30% by U.S. Research Institution
Small business is Prime, PI can be from SBC or Research Institution 3 4
Intellectual Property Agreement

8. Participating DoD Components
Army
Navy
Air Force
Missile Defense Agency (MDA)
Defense Threat Reduction Agency (DTRA)
Defense Microelectronics Activity (DMEA)
Defense Advanced Research Projects Agency (DARPA)
Defense Health Program (DHP)
Chemical and Biological Defense (CBD)
Special Operations Command (SOCOM)
National Geospatial Intelligence Agency (NGA)
Defense Logistics Agency (DLA)

9. 3 Phased Program Phase I: Feasibility Study
The SBIR/STTR Programs are structured in three phases. Phase I determines the scientific, technical and commercial merit and feasibility of the ideas submitted. Phase II is the major research and development effort, funding the prototyping and demonstration of the most promising Phase I projects. Phase III is the ultimate goal of each SBIR/STTR effort and statute requires that Phase III work be funded by sources outside the SBIR/STTR Program.
Phase I: Feasibility Study
Phase II: Full Research, R&D to Prototype
Phase III: Commercialization

10. Contracting Agencies Granting Agencies Contracts versus Grants
Agency establishes plans, protocols, requirements
Highly focused topics
Procurement mechanism
More fiscal requirements
Invoiced on Progress
DoD, DHS, NASA, EPA, DOT
Investigator initiates approach
Less-specified topics
Assistance mechanism
More flexibility
Allows upfront payment
NSF, DoE, USDA
Contracting and Granting Agencies: HHS/NIH, DOC, ED

11. Figures are in millions
DoD SBIR/STTR Budget
SBIR is 3.2% of RDT&E in FY17
STTR is .45% of RDT&E in FY17
DoD is >50% of Federal SBIR Budget
DoD Budget FY16
SBIR: $1.06B STTR: $152M $M
Army
Navy AF
MDA
DARPA
OSD
DTRA
SOCOM
CBD
DLA/DMEA
NGA
DHP
SBIR
$190
$317
$293
$77
$77.5
$1.2
$9.1
$13.8
$16.6
$4.9 $0
$63
STTR
$21
$47.5
$44
$11.5
$11.6
$.2
$1.37
$2.1
$2.5
$.7
$9.5
Figures are in millions

12. DoD Communities of Interest (COI)
Advanced Electronics
Air Platforms
Autonomy
Biomedical (ASBREM)
C4I
Counter IED
Counter WMD
Cyber
Electronic Warfare
Energy & Power
Engineered Resilient Systems
Ground & Sea Platforms
Human Systems
Materials & Manufacturing Processes
Sensors
Space
Weapons Technologies

13. 600+ 3 10,000 1,500 950 >$31B Starting with: Resulting in:
Path To Success
Starting with:
600+ 3
10,000
topics
solicitations
Phase I proposals
Resulting in:
1,500
Phase I awards
950
Phase II awards
>$31B
in commercialized products & services

14. 16 6 5 2 Participating Firms CA MA VA NY OH MD TX CO PA FL
Top 10 States =
72% of Awards
% Phase I Awards CA MA VA NY OH MD TX CO PA FL
Minority
Veteran
Hub-Zone 16
Women 5 6 2
Source: % of Phase I awards from FY11-13
For statistical purposes only, small business self-certify ownership on the proposal coversheet. No preference is given.

15. 33% 36% 15% 73% of applicants are new to the program
Participating Firms
33%
36%
of applicants are new to the program
of firms have <9 employees
15%
73%
of the awards are first time winners
73% of firms have <50 employees

16. SBIR Timeline Deliverable: Feasibility Study or Report
1+ Years
4 Years
Deliverable: Feasibility Study or Report
Deliverable: Prototype
Solicitation & Evaluation
Phase I
(150k)
Phase II Evaluation
Phase II
($1M)
Phase III
Topic Generation & Review
Phase II Enhancement
Seek Program Sponsorship to Align with ACAT needs
Begin project interface with PEO/PM & prime
Detail design requirements / define risk and opportunities
Obtain funding from program sponsors; prepare for transition

17. Solicitation Schedule
A DoD Agency-wide announcement includes:
SBIR 17.1
STTR 17.A
SBIR 17.2
STTR 17.B
SBIR 17.3
STTR 17.C
DoD Instructions
Service/Component Unique Instructions
Topics
Pre-Release
11/30/16
Open
1/10/17
Close
2/8/17
Pre-Release
4/21/17
Open
5/23/17
Close
6/21/17
Pre-Release
8/25/17
Open
9/26/17
Close
10/25/17
Not all Components participate in each solicitation.
Multiple solicitations provide opportunities to participate throughout the fiscal year.

18. Solicitation Schedule
Getting Started
Each year, the services and defense agencies within the DoD issue three SBIR solicitations and three STTR solicitations. 1.
Solicitation Schedule 2.
Find a Topic 3.
Register Your Firm 4.
Start a Proposal 5.
Submit Proposal

19. SBIR/STTR Interactive Topic Information System
Available during Pre-Release & Solicitation Open
Moderated system were questions are ed to topic authors for response in 7 days
Once DoD begins accepting proposals, questions may only be submitted through the SITIS system
Topic authors may provide additional information thru SITIS:
Unclassified
Unlimited distribution
Not copyrighted

20. Why Small Businesses Participate
Largest source of Federal R&D funds for small businesses
Follow-on Phase III awards can be sole sourced 1 5
SBIR invests more than VC community in pre-seed and early stage technology
Company may maintain ownership of equipment purchased under Phase I and II 2 6
Builds credibility of company’s research while learning government contracting processes to become a supplier 3
No dilution of equity 7
State economic development programs, angels, and VC use SBIR as a pre-qualifier for their investment
Company retains data rights for 4 years (5 years in DoD) 4 8

21. READ AND FOLLOW ANNOUNCEMENT INSTRUCTIONS
Keys to Writing Winning Proposals
1 Each Service and agency is different. Read and follow announcement instructions
2 Know your customer. Make sure your approach is relevant
3 Take advantage of the pre-release. Contact the TPOC to ask questions
4 Emphasize your innovative approach. Articulate how it compares to the state of the art
5 Clearly and concisely answer who, what, when, where, how, and importantly, why
6 If there are technical barriers…address them!
7 Don’t underestimate commercialization. State your plan NOW!
8 Provide a detailed work plan and schedule with tasks that flow smoothly
9 Ensure that the proposed solution is reasonable, realistic, and feasible
10 Check spelling and grammar. Proposals can be difficult to read due to poor grammar
READ AND FOLLOW ANNOUNCEMENT INSTRUCTIONS

22. New BAA Close Time

23. DoD SBIR Program Administrator David Sikora 571-372- 6329
Contacts
DoD SBIR Program Administrator David Sikora
Army John Smith
Navy Bob Smith
Air Force David Shahady
SOCOM Anthony Aldrich
DTRA Mark Flohr
DHA J.R. Myers
MDA Doug Deason
DARPA Susan Nichols
CBD Larry Pollack
NGA Stephen Sturtz
DMEA George Graham
DLA Denise Price

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