Return to FY-97 SBIR Solicitation {NSF 97-64} || FY-97 Program Solicitation || Table of Contents
NSF anticipates making about 200 Phase I fixed-price grants of up to $100,000 each. Awards will be made for a six (6)-month period of performance, usually January 1 - June 30, 1998. All grant funds must be used for research-related purposes. Reasonable fees will be considered under both phases of the solicitation. See Budget in Section 3.3 Cost-sharing is permitted; however, it is not required nor will it be a factor in the evaluation of a proposal.
Prior to any award, the Foundation may require additional organizational, management, and financial information for administrative purposes to assure that the applicant adheres to certain business and financial standards. When requested, this information should be returned to the NSF requesting office as expeditiously as possible.
5.2 Reports
A. Phase I Final Report--Twelve (12) copies of a comprehensive Phase I Final Report, not to exceed 30 pages in length, must be submitted by the 15th day of the month following the end of the Phase I 6-month grant performance period. Submit the report to Industrial Innovation Programs, Room 590, National Science Foundation, 4201 Wilson Boulevard, Arlington, VA 22230, ATTN: Phase I Final Report. Begin the final report with a verbatim statement of Phase I objectives from the proposal followed by a summary description of the research carried out, the research findings or results, and the potential commercial applications of the research. The balance of the report should then describe in detail these same topics as well as the problems addressed and estimates of technical feasibility.
Additional instructions will be sent to Phase I grantees prior to the scheduled completion of the Phase I performance period.
The Phase I Final Report, including technical data, may be made available to the public except for that portion of the report containing technical data properly identified and marked as set forth in 5.4.B below. To the extent permitted by law, except for evaluation purposes, the Government will not release properly identified and marked technical data outside the Government without the approval of the grantee for a period of four years from the expiration of a Phase II grant or of the Phase I grant, when no Phase II award is made. The Phase I Final Report will be sent by NSF to the National Technical Information Service (NTIS) four years following expiration of the Phase II grant or four years from the expiration of the Phase I grant when no Phase II award is made.
All Phase I Final Reports must carry the following acknowledgment and disclaimer on the cover page: "This material is based upon work supported by the National Science Foundation under award number______________. Any opinions, findings, and conclusions or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the views of the National Science Foundation." Acknowledgment of NSF support and the disclaimer also must appear in publications of any materials whether copyrighted or not, including software, product literature accompanying sales, and any written material about the product, technique or process based on or developed under NSF-supported projects. The disclaimer may be omitted from any articles or papers published in scientific, technical, or professional journals.
B. NSF Form 98A--The investigator is required to submit a Form 98A: National Science Foundation Final Project Report to the NSF SBIR Program Officer. Form 98A is distinct from, and not to be confused with, the Phase I Final Report.
The Form 98A must be submitted to NSF at the same time as the Phase I Final Report, by the 15th day of the month following the end of the Phase I 6-month grant performance period. Together ,the Phase I Final Report and the Form 98A fulfill the two NSF reporting requirements for a Phase I grant. A Phase II proposal cannot be processed for an award until the Phase I Final Report and the Form 98A have been received from the grantee and accepted by NSF. Part II of Form 98A will be made available to the public. Therefore, do not include in your summary in Part II of Form 98A any proprietary information or any technical data developed under the grant. See Section 5.4 below.
5.3 Payment Schedule
No invoices are necessary under Phase I grants. Phase I payments will be made as follows: one-third approximately 3-4 weeks after the effective date of the award, one-third three months later, and the remainder upon acceptance of a satisfactory Phase I Final Report by NSF. The first two payments are automatic. The final payment will only be processed upon acceptance of the Phase I Final Report and the NSF Form 98A.
5.4 Proprietary Information, Technical Data, Inventions, Copyrights, and Patents
Proposals may contain proprietary information. In addition, Phase II proposals and Final Reports delivered under a grant may also contain technical data developed under the grant. The grantee may have rights in these technical data.
A. Proprietary Information in Proposals and Reports--Information contained in unsuccessful proposals will remain the property of the proposer, but NSF will retain file copies of all proposals. Public release of information in any proposal or report delivered under a grant will be subject to existing statutory and regulatory requirements.
Proposers should limit proprietary information to that deemed essential to include for proper evaluation of the proposal. Proprietary information may be included in the body of the proposal or set apart from other text. Any proprietary information included in the body of the proposal must be clearly marked, by sentence or paragraph, as proprietary. Any proprietary information set apart from other text should be on a separate page, and keyed to the text by numbers. Proposers should be selective and confine proprietary information which, if disclosed, could jeopardize the obtaining of foreign or domestic patents or could reveal trade secrets or commercial or other financial information that could jeopardize the competitive position of the proposers.
Proposals or reports that attempt to restrict dissemination of large amounts of information may be found unacceptable by NSF and may result in return of the proposal. Proprietary information submitted to NSF will be treated in confidence to the extent permitted by law if it is clearly identified, by sentence or paragraph in the proposal text, or on a separate page.
Without assuming any liability for inadvertent disclosure, NSF will limit dissemination of properly marked information to its employees, and, as necessary for the evaluation of the proposal, to outside reviewers on a confidential basis.
Phase II proposals and Phase I Final Reports may also contain technical data developed under the Phase I grant. The grantee must properly identify and mark such technical data as described directly below in Section 5.4.B.
Because Final Reports by the Principal Investigator will be made available to the public (see Section 5.2.A above), such reports should contain no restrictive language purporting to limit their use, except for technical data described in Section 5.4.B below.
B. Rights in Technical Data Developed Under SBIR--The grantee may retain rights in technical data, including software, developed under the NSF grant, except that the Government shall have the right to use such data for governmental purposes. Final Reports delivered under the grant, including technical data, may be made available to the public by the Government except for that portion of the report containing technical data properly identified and marked as set forth below.
To the extent permitted by law, the Government will not release properly identified and marked technical data, such as data relating to an invention or software, outside the Government except for evaluation purposes for a period of four years from the expiration of a Phase II grant, or of the Phase I grant when no Phase II award is made, without the approval of the grantee. The grantee must properly identify such technical data in the text or a separate page keyed to the text by numbers in any submission to the Foundation. Such data must be clearly labeled as proprietary technical data and marked with a legend similar to the following:
"The following is proprietary technical data which (name of grantee) requests not be released to persons outside the Government, except for purposes of evaluation, for a period of four years from the expiration date of Grant No. ________ or, the expiration date of a follow-on Phase II grant if awarded, whichever is later."
In addition to the rights vested in the Government to use proprietary technical data during the four-year period mentioned above, the Government shall retain a royalty free, irrevocable, world-wide license to use the data right after the conclusion of the four-year period whether or not the grantee has sought or obtained patent protection or claimed copyright protection.
C. Copyrights--The grantee normally may copyright and publish (consistent with appropriate security considerations, if any) material developed with NSF support. The National Science Foundation receives a royalty-free license for the Federal Government and requires that each publication contain an acknowledgment and disclaimer statement as shown under Section 5.2, Reports.
D. Patents--Each award agreement will contain a patent rights clause under which small business firms normally may retain the principal worldwide patent rights to any invention made with NSF support. NSF receives a royalty-free license for Federal Government use, reserves the right to require the patent holder to license others in certain circumstances, and requires that anyone exclusively licensed to sell the invention in the United States must normally manufacture it domestically. To the extent authorized by 35 U.S.C. 205, NSF will not make public any disclosure by the grantee of an NSF-supported invention for a four-year period to allow the grantee a reasonable time to file a patent application. The time period for filing is specified in the patent rights clause and applicable Federal regulations (45 CFR § 650.4). Additional information may be obtained from the Office of the General Counsel, Room 1265, National Science Foundation, 4201 Wilson Boulevard, Arlington, VA 22230.
5.5 Grantee Commitments In the event of an award, the awardee will be required to make certain legal commitments through acceptance of the terms and conditions of the Phase I funding agreements. Copies of complete terms and conditions are available upon request.
5.6 Phase II Considerations A. Guidelines for Phase II--Guidelines for submittal of Phase II proposals which are more specific than those noted below will be provided to Phase I awardees by the SBIR Program during the first three months of the Phase I performance period. These guidelines will include specific instructions relating to the Phase II proposal, the demonstration of commercial potential, and the annual commercialization progress report. However, because obtaining an acceptable Phase II follow-on funding commitment may be time consuming and proposers will want to start pursuing this matter early, this subject is outlined in Section K. below.
B. Eligibility--Only those NSF Phase I grantees whose Phase I Final Reports are accepted are eligible to submit Phase II proposals to NSF. Any change of Principal Investigator between Phase I and Phase II must be requested in writing to the SBIR Program.
If a Phase II proposal has been declined, it is not eligible for resubmission.
C. Awards--The budget request and period of performance in Phase II should depend upon the scope of research proposed, but will typically be for up to $400,000 and will not normally exceed 24 months.
It is anticipated that about one-third of the Phase I awardees under this solicitation will receive Phase II grants, depending upon availability of funds. Phase II awardees will be notified within approximately nine months after submission of Phase II proposals. Another 60-90 days may be required for final processing.
Phase II awards are expected to be "Firm Fixed Price" with a definitive payment schedule based on receipt and acceptance of required progress reports. Progress reports will reflect technical progress against milestones established in the Phase II proposal. All grant funds must be used for research-related purposes.
D. Phase II Evaluation Criteria(subject to change)-In evaluation of Phase II proposals, approximately equal consideration will be given to each of the following criteria in the initial phase of the review:
(1) Degree to which the Phase I objectives were met (from the Phase I Final Report).
(2) The scientific, engineering, or educational significance of the proposed research, and the soundness of the research plan to attain a laboratory prototype or equivalent for Phase III product development and commercialization.
(3) The uniqueness/ingenuity of the proposed concept or application as technological innovation.
(4) The educational and professional experience of the Principal Investigator, other key staff, and consultants relative to the proposed research; the time commitment of the Principal Investigator; and the availability of proposed instrumentation and facilities.
(5) Reasonableness of the budget requested for the work proposed.
(6) The potential of the proposed concept for significant commercial applications as evidenced by:
(a) the small business concern's record of commercializing SBIR or other research;
(b) the strength of acceptable Phase II funding commitments from private sector or non-SBIR funding sources;
(c) the strength of acceptable Phase III follow-on funding commitments for the commercialization of the research; and
(d) the strength of business and marketing plan and/or other indicators of commercial potential of the idea including the existence of phase II matching funds from third-party investors.
E. Follow-On Funding Commitments--The SBIR Program is designed to provide incentives for the conversion of Federally-sponsored research to technological innovation and commercial application. This research can serve as both a technical and pre-venture capital base for ideas which may have commercial potential. Proposers are asked to consider whether the research they are proposing to NSF has commercial possibilities either for the proposed application or for other applications. Proposers are encouraged to obtain a contingent commitment for follow-on funding to pursue further development of the commercial potential without interruption after the completion of the government-funded Phase II. Phase III private or non-SBIR funding pays for development related to commercial objectives.
The commitment agreement may be from any of a number of different sources. These sources include the SBIR firm itself, private investors, venture capital firms, investment companies, joint ventures, R&D limited partnerships, and strategic alliances. They also include research contracts; sales of prototypes; a recent public offering; state finance programs; large, medium or small industrial firms with demonstrated financial ability; existing investors; and multiple smaller (consortium type) commitments--such as $25,000 for each of two years by 4-5 firms; or some combination of these sources. Phase III also may involve non SBIR-funded R&D or production commitments with another Federal agency for potential products or processes intended for use by the United States Government.
A few clearly defined and measurable key technical objectives should be stated in the commitment agreement including indication of the threshold level that would justify private investment if those technical objectives were achieved in Phase II. The objectives do not have to be the same as those stated in the proposal, but they must be attainable within the scope of the proposed Government-funded research.
The commitment agreement should set forth the specific amount of Phase III funds that will be made available to the small firm and indicate the dates the funds will be provided. The commitment may be contingent upon (1) the receipt of a Phase II award; (2) Phase II achieving a few stated key technical objectives; (3) the resulting technology not being bypassed in the marketplace during Phase II; and (4) the technology appearing to be economically viable. If these objectives are met, the commitment should become exercisable and the Phase III funding should take place. The terms cannot be contingent upon the obtaining of a patent due to the length of time this process requires. Further information will be provided to Phase I grantees. If commitments are obtained from foreign sources, they must state that production for the U.S. market will be carried out in the U.S.
Follow-on funding commitments are a component in the evaluation of commercial potential of a project. To receive credit for having obtained a follow-on funding commitment in the Phase II proposal evaluation process, a signed contingent commitment between the small business and a non-SBIR third party of its own choice is required. The commitment should be consistent with the terms outlined above and should be for a minimum of $200,000.
F. American-Made Equipment and Products--It is Congress' intent that firms receiving SBIR awards should, to the extent possible, purchase only American-made equipment and products with these funds.
G. Commercialization Progress Report--Phase II grantees are required to provide a commercialization progress upon completion of the grant and are expected to continue reporting commercial results annually for five years after the award period. The report would include the amount and type of continuing investment obtained to pursue commercialization and any products, sales, royalties, patents, or spin-offs attributable to the SBIR project, as well as changes in company employment levels. The purpose of this report is to help monitor the extent of the commercial application derived from SBIR-supported research.
5.7 Additional Critical Information A. Management Responsibility--The responsibility for the performance of the Principal Investigator and other employees or consultants who carry out the proposed work lies with the management of the firm receiving an award.
B. Accuracy of Information--The proposing small business concern and the Principal Investigator are responsible for the accuracy and validity of all the administrative, fiscal, and scientific information in the proposal. Deliberate withholding, falsification, or misrepresentation of information could result in administrative actions such as declination of a proposal or the suspension and/or termination of an award, as well as possible civil or criminal penalties.
C. Audits--Both Phase I and Phase II awards are subject to Federal audit as specified in the applicable Grant Terms and Conditions.
D. Changes in Organization or Principal Investigator Status--The SBIR Program must be notified promptly if there is any change in the name or address of the firm or if the firm no longer qualifies as a small business. Any change in the Principal Investigator under an active grant must be requested in writing to the SBIR Program. (See also, Section 1.8, Eligibility of Principal Investigator.)
E. Inconsistencies--This Program Solicitation is intended for informational purposes and reflects current planning. If there are any inconsistencies between the information contained herein and the terms of any resulting SBIR grant, the terms of the grant are controlling.
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FY-97 Program Solicitation
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