Here are some additional Tips and Information to assist with the SBIR process. Be sure to use the search engines on the previous page to find opportunities. However, once you find an SBIR opportunity, be sure to download and read the entire solicitation from the specific agency's web site (the search engines usually include links right to the solicitation).
Two great resources are Articles the Greenwoods have prepared on the SBIR process and The SBIR HelpDesk (run by MTC, Inc. and PBC, Inc.). Be especially sure to visit the budgeting summary page run by SBIR HelpDesk, it's very handy
To be eligible for the SBIR/STTR program, small businesses must be:
- American-owned and independently operated
- For-profit
- Principal researcher employed by business
- Company size limited to 500 employees
Comments: The principal researcher is often referred to as the "P.I." or Principal Investigator. This is a term that derives from the Federally funded research that primarily goes to universities. Although the SBIR/STTR program is targeted to small businesses, experience shows that having a PhD (preferably one who is an experienced researcher) either on board at the small business OR as a university/research institution partner is a BIG PLUS is winning an SBIR contract particularly if the small business is essentially a startup and is proposing to develop new technology. However, small businesses that ALREADY have a product or at least a prototype that is relevant to the proposal OR which have received private capital to develop a product that is relevant to the proposal can often be successful without a PhD in the proposal.
The rules vary slightly about what % of an SBIR contract can go to a university, but it's roughly 30-40%. Be sure to have a license or contingent license in place with the university BEFORE doing an SBIR together! It is preferable to have it in place before the proposal is submitted, but it MUST be in place before the contracts are signed and work completed, or the small business may be out in the cold if they want to convert to a product.
Each year, eleven federal departments and agencies are required by SBIR to reserve a portion of their R&D funds for award to small business. To see detailed links to the agencies that do business under both the SBIR and STTR programs, click here.
- Department of Agriculture
- Department of Commerce
- Department of Defense
- Department of Education
- Department of Energy
- Department of Health and Human Services
- Department of Homeland Security
- Department of Transportation
- Environmental Protection Agency
- National Aeronautics and Space Administration
- National Science Foundation
Comments: Some agencies such as DOD and NASA are "client agencies". That is, once a small business has developed a technology, the agency want to buy it commercially. The SBIR/STTRs from these agencies can lead to direct customers. Other agencies such as NIH, and Department of Energy are looking to see changes in the marketplace, but will not, themselves, purchase any developed product. As a note, the Department of Agriculture solicitation is often open to proposals that have to do with rural issues (not just specifically agriculture). Some agencies are not particularly active in the program, with only a small annual solicitation; others have solicitations each quarter or every 6 months. Some agencies, such as DOD, are very specific about the topic of the proposal and will ONLY consider proposals exactly responsible to their solicitation, others, such as NIH, can be much more open to proposals “in a general area”. Once you have used the search engines to identify eligible solicitations, ALWAYS read the solicitation directly from the agency web site, and be sure to read any “additional information”, as well as check back frequently to make sure there are no changes. Occasionally a topic will be deleted from a solicitation.
Always, always be sure to include: An overhead rate as well as a Fee or profit (no more than 6-7% is generally acceptable - this is also known as the profit). For some more tips on budgeting be sure to visit the budgeting summary page run by SBIR HelpDesk. Few agencies are interested in paying for equipment, so don’t include this (it makes the company look like the don’t have the necessary capabilities to perform the proposal).
Remember that the $75k-$100k Phase I proposal seems to be really a test phase to see if the company knows what it is doing and can execute to a plan, so make sure that, even if you have a research hiccup, you can execute to plan, by including a “contingency plan” in your proposal!
Identification numbers that you need before you submit to certain agencies
For many agencies, you will be required to register with the federal Central Contractor Registration database (CCR) BEFORE you can submit your proposal. In order to so register, you are required to have a DUNS number. This can be done at no cost for Federal registration, here but requires a couple of days (at least) to complete. DON'T WAIT until the last minute to complete these required items.
If you submit to most DOD agencies, you will be required to submit through DODSBIR e-submission web site This requires CCR registration, so it's a good idea to a) START EARLY to get the DUNS number and CCR registration completed (all online) and b) make sure that you can log into the DODSBIR web site BEFORE you try and submit (minutes before the deadline).
Note that other agencies still require PAPER submissions, so follow the directions very, very carefully.