1. Small Business Administration Office of Investment and Innovation The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Program Program Overview

2. Small Business Administration Mission of the SBIR/STTR Program  To promote technological innovation and economic growth through the investment of Federal research funds in small US businesses. 2 SBIR Program

3. Small Business Administration Goals of the SBIR/STTR Program  Stimulate technological innovation by small US businesses  Strengthen the role of small businesses in meeting Federal research and development needs  Increase private-sector commercialization of innovations derived from Federal research and development funding  Foster and encourage participation in innovation and entrepreneurship by socially and economically disadvantaged persons 3 SBIR Program

4. Small Business Administration SBIR/STTR Program History  The SBIR program started as a pilot program at the NSF in the late-1970’s  Three legislative acts have been passed that govern its existence and execution  The Small Business Innovation Development Act of 1982  The Small Business Research and Development Enhancement Act of 1992  The Small Business Innovation Research Program Reauthorization Act of 2000  Currently, the SBIR program is operating on a continuing resolution 4 SBIR Program

5. Small Business Administration SBIR/STTR Program Descriptions  Small Business Innovation Research (SBIR)  A set-aside program for small business to engage in Federal R&D – with potential for commercialization  2.5% of the extramural research budget for all agencies with a budget greater than $100MM per year  Small Business Technology Transfer (STTR)  A set-aside program to facilitate cooperative R&D between small business concerns and U.S. research institutions – with potential for commercialization.  0.3% of the extramural research budget for all agencies with a budget greater than $1B per year 5 SBIR Program

6. Small Business Administration SBIR/STTR Program Basic Structure  Phase I  Feasibility Study, Proof of Concept  $150k Max, for 6 Months  Phase II  Full Research and Development Effort  $1 Mill Max, for 12 Months  Phase III  Commercialization Stage  Seek External Funding [No Use of SBIR funds] Non-SBIR federal funding, OR Private sources 6 SBIR Program Only Phase I winners may apply for a Phase II. Phase I and II awardees can move to Phase III.

7. Small Business Administration SBIR Program Eligibility Criteria Organized as a for-profit business based in the U.S. 500 employees or less, including affiliates PI’s primary employment must be with the small business At least 51% U.S.- owned by individuals and independently operated; OR, at least 51% owned and controlled by another (one) for-profit business concern that is at least 51% owned and controlled by individuals 7 SBIR Program

8. Small Business Administration STTR Program Eligibility Criteria Organized as for-profit small business based in the U.S. Formal cooperative research and development effort Minimum 40% by small business Minimum 30% by U.S. research institution U.S. research institution College or university Other non-profit research organization Federally Funded Research and Development Center Intellectual Property Agreement Allocation of rights in intellectual property and rights to carry out Follow-on R&D and commercialization effort 8 SBIR Program

9. Small Business Administration Standard SBIR/STTR Phase I Process  Agencies describe R&D topics in solicitations at fixed time periods over the year – not rolling.  Small Business Concerns prepare short (usually 25-page) proposals.  Unsolicited proposals are not accepted.  Agencies evaluate based on technical merit, firm’s qualifications, and commercial potential / societal benefit  Agencies make Phase I awards. 9 Evaluation Ph I award Solicitation Topics Proposal Submission About 4-9 Months SBIR Program

10. Small Business Administration Standard SBIR/STTR Phase I Process AgencySBIRSTTR DOD$1.1B$140M HHS$640M$75M NASA$120M$15M DOE$140M$15M NSF$100M$20M DHS$20M USDA$15M DOC$10M ED$10M EPA$5M DOT$5M TOTAL$2.15B$250M 10 In total, the program gives roughly $2.5B/year to small business to perform research and development. DoD and NASA – together – are over 50% of the STTR Program SBIR Program

11. Small Business Administration Differences Between a Contract and Grant Award Contracting Agencies  Agency establishes plans, protocols, requirements  Highly focused topics  Procurement mechanism for DOD and NASA  More fiscal requirements Granting Agencies  Investigator initiates approach  Less-specified topics  Assistance mechanism  More flexibility 11 DOD, DHS, HHS/NIH, NASA, ED, EPA, DOT, DOC HHS/NIH, NSF, ED, USDA, DOE SBIR Program

12. Small Business Administration Program Differences Between Agencies  Solicitation Logistics  Number of Solicitations – 2/3 per year with different windows of timing  Topic Areas – broad to focused  Proposal Logistics  Proposal Preparation Instructions – no unified application process  Proposal Review Process – external peer review or internal review  Proposal Success Rates – vary slightly between agencies  Award Logistics  Type of Award – contract and grant  Financial Details – indirect cost rates and  Dollar Amount of Award – slight differences 12 SBIR Program

13. Small Business Administration SBIR/STTR Programs at the Department of Defense 13 SBIR Program Air Force Missile Defense Agency Special Operations Command Army Defense Advanced Research Projects Agency National Geospatial Intelligence Agency Defense Microelectronics Activity Navy Defense Threat Reduction Agency Office of Secretary of Defense Joint S&T Office for Chemical and Biological Defense Defense Logistics Agency SBIR Program Only SBIR + STTR Programs

14. Small Business Administration 14 Historically…  16% of DoD SBIR/STTR Phase I proposals are awarded  50% of Phase I awards receive a Phase II.  55% of Phase II awards commercialize. Based on all Phase I and Phase II contracts derived from 1996- 2005 solicitations. Commercialization data taken from January 2010 DoD SBIR Commercialization Database. DoD SBIR/STTR is highly competitive. DoD SBIR/STTR Historical “Success” Rates SBIR Program

15. Small Business Administration How Can Small Business Participate? 15 SBIR Program SBIR 11.3Open Close August 29, 2011 September 28, 2011 at 6am EST SBIR 12.1Open Close December 12, 2011 January 11, 2012 at 6am EST STTR 11.BOpen Close August 29, 2011 September28, 2011 at 6am EST STTR 12.AOpen Close February 27, 2012 March 28, 2012 at 6am EST DoD Solicitation Schedule  View information and solicitations via: http://www.acq.osd.mil/osbp/sbir/index.htm http://www.acq.osd.mil/osbp/sbir/index.htm  Submit proposals via : http://www.dodsbir.net/submission http://www.dodsbir.net/submission  Also, a NASA STTR solicitation is currently running thru September 8, 2011 STTR 11.B – 37 Topics Participating components: Air Force (30), MDA (2), OSD (5)

16. Small Business Administration 16 Based on FY09 Annual Report; Firm Data taken from Company Commercialization Report Awardees by Number of Employees SBIR Program

17. Small Business Administration Based on FY09 SBIR Annual Report Data Phase IPhase II 17 Awardees by Prior Experience SBIR Program

18. Small Business Administration DoD Transition Initiatives  Fast Track  Expedited Phase II approval based on customer provided co-funds  Phase II Enhancement*  Additional SBIR funding beyond Phase II for RDT&E  Discretionary Technical Assistance**  Commercialization Pilot Program** (CPP)  Assistance and/or additional SBIR or non-SBIR funding to enhance ongoing projects with expanded RDT&E to accelerate transition and commercialization  Beyond Phase II Conference 18 SBIR Program * Not currently utilized by Army STTR ** Not currently authorized for STTR

19. Small Business Administration Source: DoD SBIR Commercialization Database, captured in October every year 2000-2009. Data includes only DoD phase II Awards reported at time of capture. DoD began systematically collecting this data in 2000. 19 Total Reported DoD SBIR & STTR Commercialization ($Billions) Total Commercialization Growth: Investments Producing Momentum SBIR Program

20. Small Business Administration Alabama in the SBIR/STTR Program 20 SBIR Program State Number of Awards Total Awarded Money CA11848 $ 3,588,276,238 MA7882 $ 2,404,121,015 VA3704 $ 1,027,036,265 MD2938 $ 900,315,502 NY2811 $ 890,940,135 CO2957 $ 842,460,516 TX2687 $ 765,841,846 OH2471 $ 730,709,893 PA2339 $ 721,931,129 NJ1568 $ 470,693,928 WA1363 $ 440,172,237 FL1538 $ 420,620,463 MI1385 $ 419,705,857 AL1256 $ 359,636,137 NC1035 $ 350,489,897 1/3 of Total Award Dollars 2/3 of Total Award Dollars

21. Small Business Administration More Alabama in the SBIR/STTR Program  Alabama ranks in 14 th in funding from the SBIR program  But it competes in bottom third of states  And was not selected as a FAST Awardee  2011 Tibbetts Awards Winner:  Radiance Technologies – Winner of 50+ awards since founding in 1999  Now, over 400 employees in multiple offices  More fun facts about Alabama:  92 STTR Awards over the last 5 Years  Many with the University of Alabama - Huntsville 21 SBIR Program

22. Small Business Administration Answers to Frequently Asked Questions  Eligibility is determined at time of award – not application  No appendices are allowed in Phase I  The PI is not required to have a Ph.D. or M.D. – but is required to have expertise to oversee project scientifically and technically  Applications may be submitted to different agencies for similar work – but awards may not be accepted for duplicative projects 22 SBIR Program

23. Small Business Administration http://sbir.gov 23