NASA SBIR/STTR: Technology Consumers

SBIR/STTR Program Information

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs provide an opportunity for small, high technology companies and research institutions (RI) to participate in Government sponsored research and development (R&D) efforts in key technology areas. If you are a small business concern(SBC) with 500 or fewer employees, or a non-profit RI, such as a university or a research laboratory with ties to an SBC, then NASA encourages you to learn more about these programs and significant sources of seed funding for the development of your innovations.

	SBIR	STTR
Phase 1	$100,000 (6 months)	$100,000 (12 months)
Phase 2	$600,000 (24 months)	$600,000 (24 months)

Congressional History

SBIR: The SBIR Program, established by Congress in 1982, extended and strengthened in December 2000 by P.L. 106-554 is authorized through September 30, 2008. There are 10 Federal agencies that participate in the program with research and development budgets exceeding $100 million that allocate 2.5% of their extra- mural research and development budget. Each agency administers its own individual program within guidelines established by the Small Business Administration (SBA). The SBA is responsible for establishing governing policy and for overall program monitoring, reporting and analysis.

STTR: The STTR Program is modeled after the SBIR program but is a separate and smaller program. The funding for the STTR program is increasing from .15% of extra-mural research and development funds in 2003 to .30% in 2004. The STTR Program was re-authorized in 2001 by P.L. 107-50 to extend the program through September 30, 2009. The goal of the STTR program is to facilitate the transfer of technology developed by a research institution through the entrepreneurship of a small business concern.

SBIR 3 Phase Program

The structure of the SBIR program reflects the Congressional understanding that the processes of innovation and bringing new products to the market have a high degree of technical and financial risk. The program, therefore, has three phases:

Phase 1 is the opportunity to establish the feasibility and technical merit of a proposed innovation. Selected competitively, NASA’s Phase I contracts last for 6 months with a maximum funding of $100,000. Historically, about 12 - 15% of SBIR proposals submitted receive awards.

Phase 2 is the major R&D effort in SBIR. It continues the most promising of the Phase I projects based on scientific and technical merit, expected value to NASA, and commercial potential. Selection for Phase II places greater emphasis on evidence of commercial potential than Phase I, particularly in support of NASA's missions. SBIR Phase II contracts are usually for a period of 24 months with a maximum funding of $600,000. NASA usually selects approximately 40% of the Phase I proposals to go on to a Phase II.

Phase 3 is the infusion of the Phase II results into regular NASA programs and/or the marketing to other government agencies or into the commercial marketplace. Phase III projects are funded with money from a source other than the SBIR program. It is understood that further development of the product may be needed at the conclusion of the Phase II work. NASA is able to accelerate its Phase III procurement process by recognizing that the Federal competition in contracting requirements have been met by the Phase I and II competitions. In other words, the Phase III funding is awarded based on the merits of the Phase II results without further need for competitive bids. Private-sector investment, in various forms, is also a vehicle for the Phase III process.

STTR 3 Phase Program

The STTR Program awards contracts to small business concerns (SBC’s) for cooperative research and development with a nonprofit research institution (RI), such as a university. The goal of Congress in establishing the STTR program is to facilitate the transfer of technology developed by an RI through the entrepreneurship of a Small Business Concern (SBC), or for the fulfillment of a technology being developed through an SBC by an RI. STTR differs from SBIR in three important aspects:

The SBC and its partnering institution are required to sign a cooperative agreement detailing the allocation of intellectual property rights and rights to carry on follow-up R&D or commercialization between the SBC and RI.

While the proposal is still submitted by the SBC, at least 30% of the funding must be allocated to the RI for its activities. Likewise, at least 40% must be for the SBC.

For STTR, the PI does not have to be employed by the SBC as in SBIR.

Phase 1 is the opportunity to establish the feasibility and technical merit of a proposed innovation. Phase I STTR projects receive up to $100,000 in funds for a 1 year effort.

Phase 2 is the major R&D effort. It continues the most promising of the Phase I projects based on scientific and technical merit, expected value to NASA, and commercial potential. The STTR program Phase II is limited to $600,000 for 2 years.

Phase 3 is the infusion of the Phase II results into regular NASA programs and/or the marketing to other government agencies or into the commercial marketplace. Phase III projects are funded with money from a source other than the STTR program. It is understood that further development of the product may be needed at the conclusion of the Phase II work. NASA is able to accelerate its Phase III procurement process by recognizing that the Federal competition in contracting requirements have been met by the Phase I and II competitions.

Eligibility

To be eligible for either the SBIR or STTR programs, a small business must be independently owned and operated in the United States by U.S. citizens or permanent resident aliens. It must be organized for profit. Including any affiliates, the company can be the employer of no more than 500 people. While an SBIR or STTR award contract is between NASA and a small business, STTR has the additional requirement that a cooperative agreement between the firm and an RI be established.

The Principal Investigator (PI), who is listed in the proposal as the technical manager to lead the proposed research, is considered key to the success of the effort; therefore, a PI's involvement with the project must be substantial. For SBIR, the PI must be primarily employed by the SBC at the time of contract award. The STTR program permits employment of the PI by either the firm or the RI.