National Science Foundation
Small Business Innovation Research and Small Business Technology Transfer
1999 SBIR/STTR Phase I Program Solicitation and Phase II Instruction Guide

CHAPTER 2.0 Definitions

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2.1 Commercialization
2.2 Consultant
2.3 Development
2.4 Cooperative Research and Development
2.5 Effective Date
2.6 Expiration Date
2.7 Equivalent Proposals
2.8 Grant Support/Performance Period
2.9 Permanent Equipment
2.10 Principal Investigator
2.11 Overlapping Proposals
2.12 Research Institution
2.13 Research Institution Investigator
2.14 Research or Research and Development (R/R&D)
2.15 Small Business Concern (SBC)
2.16 Socially and Economically Disadvantaged Small Business
2.17 Socially and Economically Disadvantaged Individual
2.18 Subaward (a.k.a. contract or subcontract)
2.19 Technical Data
2.20 Women-Owned Small Business
 
2.1 Commercialization. The process of developing markets and producing and delivering products or services for sale (whether by the originating party or by others). As used here, commercialization includes both government and non-government markets.
 
2.2 Consultant. A person, not an employee of the small business concern, who is cited anywhere in the proposal as contributing to the research - whether paid or unpaid.
 
2.3 Development. A systematic application of knowledge toward the production of useful materials, devices, and systems or methods, including design, development, and improvement of prototypes and new processes to meet specific requirements.
 
2.4 Cooperative Research and Development. Research and development conducted jointly by a small business concern and a research institution in which not less than 40 percent of the work is performed by the small business concern, and not less than 30 percent of the work is performed by the research institution.
 
2.5 Effective Date. The effective date of a grant is the date specified in the grant award letter on or after which the proposed work is expected to begin. Do not confuse the "award date" (appearing in the upper right hand corner of the letter, indicating when the award is made administratively) with the "effective date," appearing in the body of the letter.
 
2.6 Expiration Date. The expiration date of the Phase I grant is the last day of the six-month grant performance period. For Phase II awards, the expiration date is last day of the grant support period which is normally 24 months in duration.
 
2.7 Equivalent Proposals. One proposal that entails the performance of work that completely overlaps with the work entailed by another proposal.
 
2.8 Grant Support/Performance Period. For Phase I awards, the grant support/performance period is the six-month period beginning on the effective date and ending six months thereafter. For Phase II awards, the grant support/performance period is the period beginning on the effective date and normally ending 24 months thereafter.
 
2.9 Permanent Equipment. Equipment is defined as an article of non-expendable, tangible personal property, having a useful life of more than one year and an acquisition cost of $5,000 or more per unit.
 
2.10 Principal Investigator. The Code of Federal Regulations, Title 42, Part 52, defines a Principal Investigator as "the single individual designated by the grantee in a grant application who is responsible for the scientific and technical direction of the project." NSF does not permit Co-Principal Investigators on SBIR proposals.
 
2.11 Overlapping Proposals. One proposal that entails the performance of work or portions thereof that overlaps with the work entailed by another proposal.
 
2.12 Research Institution. A research organization that is (1) a nonprofit university, or (2) a nonprofit research institution as defined in section 4(5) of the Stevenson-WydlerTechnology Innovation Act of 1980, or (3) a contractor-operated federally-funded research and development center, as identified by the National Science Foundation in accordance with the government-wide Federal Acquisition Regulation issued in accordance with section 35(c) (1) of the Office of Federal Procurement Policy Act (or any successor legislation thereto).
 
2.13 Research Institution Principal Investigator. The single individual designated by the Research Institution who is responsible for the scientific and technical direction of the project.
 
2.14 Research or Research and Development (R/R&D). Any activity that is a (1) systematic, intensive study directed toward greater knowledge or understanding of the subject studied, (2) a systematic study directed specifically toward applying new knowledge to meet a recognized need, or (3) a systematic application of knowledge toward the production of useful materials, devices, systems, or methods, including design, development, and improvement of prototypes and new processes to meet specific requirements.
 
2.15 Small Business Concern (SBC). A business concern that at the time of the Phase I and Phase II awards meets the following criteria:
 
It is independently owned and operated, is not dominant in the field of operation in which it is proposing, has its principal place of business located in the United States, and is organized for profit.
 
It is at least 51 percent owned, or in the case of a publicly owned business, at least 51 percent of its voting stock is owned, by United States citizens or lawfully admitted permanent resident aliens.
 
It has, including its affiliates, a number of employees not exceeding 500, and meets the other regulatory requirements found in 13 CFR Part 121. Business concerns, other than licensed investment companies, or state development companies qualifying under the Small Business Investment Act of 1938, 15 U.S.C. 661, et seq., are affiliates of one another when either directly or indirectly, (a) one concern controls or has the power to control the other; or (b) third parties (or party) control(s) or has the power to control both. Control can be exercised through common ownership, common management, and contractual relationships. The term "affiliates" is defined in great detail in 13 CFR 121.3-2(a). The term "number of employees" is defined in 13 CFR 121.3.2(t). Business concerns include, but are not limited to, any individual, partnership, corporation, joint venture, association, or cooperative.
 
2.16 Socially and Economically Disadvantaged Small Business. A socially and economically disadvantaged small business concern is one that is at least 51 percent owned by one or more socially and economically disadvantaged individuals and whose management and daily business operations are controlled by one or more such individuals. "Control" in this context means exercising the power to make policy decisions. "Operate" in this context means being actively involved in the day-to-day management.
 
2.17 Socially and Economically Disadvantaged Individual. A member of any of the following groups: Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Subcontinent Asian Americans, other groups designated from time to time by SBA to be socially disadvantaged, and any other individual found to be socially and economically disadvantaged by SBA pursuant to Section 8(a) of the Small Business Act, 15 U.S.C. ; 637(a). For more information on this definition, contact the SBA (http://www.sbaonline.sba.gov/).


2.18 Subaward (a.k.a. contract or subcontract). Any agreement, other than one involving an employer-employee relationship, entered into by the small business concern calling for supplies or services required solely for the performance of the original funding agreement.
 
2.19 Technical Data. Data developed by the grantee during the performance of a Small Business Innovation Research (SBIR) grant, such as information relating to an invention, a manufacturing process, or software developed under the grant.
 
2.20 Women-Owned Small Business. A small business that is at least 51 percent owned by a woman or women who also control and operate it is women-owned. "Control" in this context means exercising the power to make policy decisions. "Operate" in this context means being actively involved in the day-to-day management.