Overview of SBIR STTR Program Presented February 10, 2004 IEEE Engineering Management Society, Eastern NC Section

1. © 2004 SheepShank LLC
What is the SBIR / STTR Program ?
EASTERN NORTH CAROLINA SECTION
ENGINEERING MANAGEMENT SOCIETY
TUESDAY 10 FEBRUARY 2004
Presented By
www.SheepShankLLC.com info@SheepShankLLC.com
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

2. © 2004 SheepShank LLC
Small Business Innovation
Development Act of 1982
• 2.5% of Federal R&D Budgets
• 10 Government Agencies
• Fund Small Business Opportunities
“Our Nation is blessed with two important qualities that
are often missing in other societies: our spirit of
entrepreneurship and our capacity for invention and
innovation.”
Ronald Reagan
February 22nd, 1982
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

3. © 2004 SheepShank LLC
Tonight’ Presentation
s
SBIR / STTR Program Overview
How To Get Started
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

4. © 2004 SheepShank LLC
US Scientists & Engineers
32.5% Industry & Large Businesses
13.0% Government
18.5% Education & Non-Profit Research
36.0% Small Business
Data from NSF Science Indicators
Dr. Sara B. Nerlove NSF SBIR / STTR Program Manager
Presentation at Louisiana Technology University 12 November 2003
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

5. © 2004 SheepShank LLC
SBIR
Small Business Innovation Research
Allows Small Businesses to Participate in Federal R&D
with Potential for Commercialization
STTR
Small Business Technology Transfer
Facilitates Cooperative R&D
between Small Business & US Research Institutions
with Potential for Commercialization
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

6. © 2004 SheepShank LLC
Supporting Federal Agencies
SBA oversees other Agencies
SBIR only Department of Agriculture (USDA)
SBIR only Department of Commerce
National Oceanic and Atmospheric Administration (NOAA)
National Institute of Standards & Technology (NIST)
SBIR only Department of Education (ED)
SBIR only Environmental Protection Agency (EPA)
SBIR only Department of Transportation (DOT)
SBIR only *** Department of Homeland Security
Homeland Security Advanced Research Projects Agency (HSARPA)
SBIR & STTR National Aeronautics and Space Administration (NASA)
SBIR & STTR Department of Energy (DOE)
SBIR & STTR National Science Foundation (NSF)
SBIR & STTR Department of Health and Human Services (NIH)
SBIR & STTR Department of Defense (DOD)
Army
Navy
Air Force
DARPA
Defense Threat Reduction Agency
Missile Defense Agency (MDA)
U.S. Special Operations Command (SOCOM)
National Imagery and Mapping Agency (NIMA)
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

7. © 2004 SheepShank LLC
SBIR / STTR Principle Objectives:
Stimulate Technological Innovation by Small Business
Increase Small Business in Federal R&D Needs
Increase Commercialization of Federal R&D
Increase Visibility of SBIR / STTRs to Small Business
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

8. © 2004 SheepShank LLC
New Product Lifecycle
SBIR / STTR Funding
Technical
Feasibility Prototyping
Phase Phase
I II (Time)
Fuzzy New Product Revenue
Front-End Development Generation
Idea Program Product Manufacturing
Commitment Availability Discontinue
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

9. © 2004 SheepShank LLC
SBIR: Small Business Innovation Research
Phase I: 6 to 9 months $75K to $100K
Phase II: Up to 2 years $500 to $750K
Phase I: 0 to 33% (sub-contracted)
Phase II: 0 to 50% (sub-contracted)
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

10. © 2004 SheepShank LLC
STTR: Small business Technology TRansfer
Must have partnership with non-profit research
Phase I: 6 months and up to $100K
Phase II: Up to 2 years and $750K
Research Institution must perform 30% - 60%
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

11. © 2004 SheepShank LLC
SBIR / STTR Process Flow
Pre-Solicitation
Solicitations Final
Proposals Accepted
Proposals Reviewed
Grants Awarded
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

12. © 2004 SheepShank LLC
Navy SBIR Statistics
FY98 FY99 FY00 FY01*
Funding ($M) 108 110 125 120
Number of Topics 172 172 126 120
Phase I proposals 1774 2167 1311 1300
Phase I awards 236 358 300* 360
Phase II awards 117 98 130* 125
* Estimated
http://www.navysbir.com/Navy.ppt
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

13. © 2004 SheepShank LLC
NSF FY-2003 Phase I
(2,272 submissions and 476 awards)
WA
NH
32/5
MT ND VT 8/2 22/3 ME
20/7 13/5
OR 8/3 MN
21/5 ID 56/11 MA 243/59
SD WI NY
12/1 MI 94/25
WY 8/3 21/10 RI 2/0
5/4 52/6 CT 273
NE IA
PA 71/19
NV 15/4
5/3 IL IN OH NJ 112/21
CA 0/0 UT CO 48/9 18/6 69/11 WV VA DE 15/4
381/75 17/3 112/28 11/4 DC 2/1
KS MO 137/14 MD 71/13
12/4 19/7 KY 6/2
NC 28/8
AZ OK AR TN 27/5
NM 10/2 SC
69/10 25/7
39/9 AL GA 11/6
MS 22/3
37/11
TX LA 3/0
AK 126/21 4/1
2/2 FL
47/9 PR 1/1
HI 6/1
Dr. Sara B. Nerlove NSF SBIR/STTR Program Manager
ENGINEERING MANAGEMENT SOCIETY Presenation at Louisiana Technology University 12 November 2003
10 FEBRUARY 2004

14. © 2004 SheepShank LLC
SBIR Participants
Businesses are Typically Small & Hi-Tech
About 1/3 are First-Time Phase I Awardees
Firm Size Distribution*
www.web-services.gov/SBIRJune2003.ppt
From Slide Show Overview for
Congressman Lamar Smith (TX)
ENGINEERING MANAGEMENT SOCIETY *FY01 Phase I DOD Award Winners 10 FEBRUARY 2004

15. © 2004 SheepShank LLC
What Do You Need?
Small Company
Idea !!!
Proposal
Principal Investigator
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

16. © 2004 SheepShank LLC
Small Company
Incorporate
Federal Tax ID
DUNS
General Contractor Registration
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

17. © 2004 SheepShank LLC
The Idea
Innovation
“A novel combination of art, science, or craft
employed to create the goods or services used
by society.”
Innovation Explosion
- James Brian Quinn
“Innovation is the specific instrument of
entrepreneurship. The act that endows
resources with a new capacity to create wealth.”
- Peter F. Drucker
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

18. © 2004 SheepShank LLC
Risk vs. Reward
Get Beyond Invention
Think Innovation
Think Research
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

19. © 2004 SheepShank LLC
Typical Proposal
Project Summary
Project Description
Principal Investigator Biographies
Budget
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

20. © 2004 SheepShank LLC
Typical Budget Components
Direct Costs
Internal Expenses (PIs, Equip., etc.)
Contract Expenses
Indirect Costs
Company Overhead
Profit
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

21. © 2004 SheepShank LLC
SBIR / STTR Evaluation Criteria:
Significance & Originality
Methodologies
Qualification of the PI(s)
Facilities for Research
Budget Accuracy
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

22. © 2004 SheepShank LLC
Principal Investigator
RTP Benefits
Universities
Non-Profit Agencies
Technology Synergy
Venture Activity
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

23. © 2004 SheepShank LLC
Think Partnerships
Value to Research Institutions
Alternate Funding Source
Faster Technology Commercialization
Another Linkage to Industry
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

24. © 2004 SheepShank LLC
Zyn Systems
www.zyn.com/sbir/
• SBIR News
• Links to Agency Gateways
• Other SBIR Resource Links
• SBIR Specific Search Engines
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

25. © 2004 SheepShank LLC
Email Notification
http://www.pnl.gov/edo/sbir.stm
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

26. © 2004 SheepShank LLC
www.sba.gov/sbir/
www.sbtdc.org/
Local SBIR Program Specialist
John Ujvari
sbir@sbtdc.org
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

27. © 2004 SheepShank LLC
Two Key SBIR / STTR Statistics
10% of Phase I Proposals are Awarded
40% of Phase I Awards win a Phase II Award
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

28. © 2004 SheepShank LLC
ROI
Risk
New Product Lifecycle
SBIR / STTR Funding
Return
Investment
Phase Phase
I II (Time)
Fuzzy New Product Revenue
Front-End Development Generation
Idea Program Product Manufacturing
Commitment Availability Discontinue
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004

29. © 2004 SheepShank LLC
www.SheepShankLLC.com info@SheepShankLLC.com
ENGINEERING MANAGEMENT SOCIETY 10 FEBRUARY 2004