Program Description

A. Summary

B. Program Features

B.1. Legislative Basis
B.2. Program Purposes
B.3 Program Funding
B.4. NSF SBIR/STTR Program Goals

C. Three-Phased SBIR/STTR Programs

C.1. Phase I
C.2. Phase II
C.3. Phase III

D. Eligibility to Participate in SBIR and STTR

D.1. Small Business Concern
D.2. Research Institution
D.3. Place of Performance
D.4. Principal Investigator
D.5. Research Institution Investigator

E. General Information

E.1. Electronic Distribution of Solicitation
E.2. Other Means Of Contacting NSF SBIR

A. Summary

The National Science Foundation (NSF), an independent agency of the Federal Government, invites (by solicitation) eligible small business concerns to participate in the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs. 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.

B. Program Features

B.1. Legislative Basis: SBIR/STTR solicitations are issued pursuant to the authority contained in Public Law 106-554, 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.

The STTR Program, currently in five Federal agencies, pursuant to the authority contained in Public Law 107-50, amended (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/

B.2. Program Purpose: The SBIR/STTR 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 as the Principal Investigator and at least one investigator is employed by the research institution as the Research Institution Investigator. The proposed research for both SBIR and STTR must be responsive to the NSF program interests.

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.

Projects involving research on human subjects must ensure that subjects are protected from research risks in conformance with the Common Rule (Federal Policy for the Protection of Human Subjects). Awards involving human subjects will require grantee compliance with the NSF regulation, entitled, "Protection of Human Subjects," 45 CFR 690. Projects involving vertebrate animals will comply with the Animal Welfare Act (7 USC §§ 2131-59) and the regulations promulgated thereunder by the Secretary of Agriculture (CFR, Title 9, Subchapter A, Parts 1, 2, 3, and 4) pertaining to the care, handling and treatment of vertebrate animals held or used for research, teaching or other activities supported by Federal Grants. For more information reference the Grants Policy Manual at: http://www.nsf.gov/publications/pub_summ.jsp?ods_key=nsf022

Unsolicited proposals shall not be accepted under the SBIR/STTR Program

B.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. Tuition costs are not supported costs under a SBIR/STTR grant. NSF does not consider tuition costs research or research and development. 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 $150,000; SBIR Phase II awards will be made for a maximum of $500,000. An additional supplemental award (Phase IIB) will be made to eligible SBIR Phase II grantees. The total cumulative award for Phase II plus the Phase IIB typically does not exceed the legislative maximum of $750,000. NSF STTR Phase I awards will be made for a maximum of *$150,000; STTR Phase II awards will be made for a maximum of $500,000.

B.4. NSF SBIR/STTR Program Goals: The goals of the SBIR/STTR program are to promote the following:

• Develop intellectual capital: Make awards for research which builds upon recent discoveries in basic sciences and engineering and provides opportunities for individuals who have, or are working toward, advanced scientific, engineering, or education degrees.
• Strengthen the physical infrastructure - Make awards which lead to development of new scientific, engineering, and education capability through commercialization of advanced instruments, new processes, and innovative software, etc.
• Integrate research and education - Encourage awardees to disseminate research findings through scholarly journals and professional meetings.
• Promote partnerships - Encourage awardees to engage in cooperative activities involving industry, government (state, local, Federal), and academia.

Program Emphasis and National Critical Technologies. The NSF SBIR/STTR Program solicits proposals in the following areas:

• Biotechnology and Chemical Technologies
• Education Applications
• Information and Communication Technologies
• Nanotechnology, Advanced Materials, and Manufacturing

Within that framework, the following critical technology areas of national importance are emphasized:

• Applied Molecular Biology
• Distributed Computing and Telecommunication
• Integrated, Flexible Manufacturing
• Materials Synthesis and Processing
• Microelectronics and Optoelectronics
• Pollution Minimization and Remediation
• Software
• Transportation

C. Three-Phase SBIR/STTR Programs

C.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 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/STTR Phase I proposals should be prepared in accordance with the current Program Solicitation. Evaluation and selection criteria are described on the SBIR/STTR Evaluation & Selection Criteria web page.

A Phase I Final Report is required for the completion of a Phase I SBIR/STTR project. All Phase I Final Reports must be prepared in accordance with the Reporting Instructions. SBIR and STTR Phase I awards are fixed-price grants.

C.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. The SBIR/STTR Phase II program offers a supplemental program called Phase IIB; for information, reference the Phase IIB web page.

SBIR/STTR Phase II proposals must be prepared in accordance with instructions provided on the SBIR/STTR Phase II Proposal Information web page.

C.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 to pursue continued development of applications developed under NSF SBIR/STTR Phases I and II.

D. Eligibility to Participate in SBIR and STTR

D.1 Small Business Concern. Only firms qualifying as small business concerns are eligible to participate in the SBIR/STTR program (see definition). Socially and economically disadvantaged small business concerns and women-owned small business concerns are particularly encouraged to propose.

Proposals from joint ventures (see definition) and partnerships are permitted, provided the entity created qualifies as a small business (see definition). 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 subawards (a.k.a. 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 budget, 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 budget 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 research as measured by the budget must be performed by the small business concern, and not less than 30 percent of the research as measured by the budget by the non-profit research institution. That is, a minimum of 40 percent of the budget must be allocated to the small business concern, and a minimum of 30 percent of the 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.

D.2 Research Institution (pertains only to STTR proposals).  The cooperating research institution must qualify as a non-profit research institution. However, NSF does not normally support activities of those scientists and engineers employed by Federally Funded Research and Development Centers (FFRDCs

D.3 Place of Performance. The R/R&D must be performed in the United States. (See definition.)

D.4 Principal Investigator. The Principal Investigator (PI) is considered key to the success of the effort (see definition). For an STTR, a Research Institution Investigator from the research institution must also be identified (see definition of Research Institution Investigator).

The PI is responsible for the 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. The Phase I proposal shall describe the nature of the PI's activities and the amount of time that the PI will personally spend on the project.

The PI must be an employee of the company at the time of an award. The qualifications of the proposed PI must be presented in the proposal. If the proposed 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 the U.S. Citizenship and Immigration Services Web Page).

Co-Principal Investigators. Co-PIs are not permitted.

PI Substitutions. A PI substitution by a small business concern requires NSF's approval! A written request for NSF approval is required 30 days prior to the PI change. PI change requests must be prepared and submitted via FastLane. NSF (reference PI Change instructions) expects the original PI to complete Phase I and to continue any subsequent Phase II award.

The PI must be primarily employed (at least 51% in a calendar year) by the small business concern.

Academic or Non-Profit Organizations/Affiliations. An individual employed full-time by an academic or non-profit institution may become eligible to serve as a PI if the individual provides a statement signed (and placed in the proposal) by his/her Department Head and an Authorized Organizational Representative of the institution approving a minimum of 51 percent release from full-time employment at the institution for the performance periods, should the award be made.

Research Support through an Academic Institution. The National Science Foundation allows 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. Please reference the sections covering current and pending support of PI and senior personnel in the SBIR/STTR Program Solicitation. Proposals that 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 in the proposal how they will meet the eligibility requirements.

D.5 Research Institution Investigator (pertains only to STTR proposals. The Research Institution Investigator must have a primary employment affiliation with the research institution.

E. General Information

E.1 Electronic Distribution of Solicitation. The SBIR/STTR Phase I Solicitation will only be available via electronic means through the NSF SBIR/STTR home page (http://www.nsf.gov/eng/iip/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.

E.2 Other Means of Contacting NSF SBIR

SBIR Program Support Office may be contacted via e-mail sbir@nsf.gov