Phase IIB Information Revision
New Submission Requirements!

A. Phase IIB Option Objective
B. Eligibility for Phase IIB
C. Phase IIB Proposal Preparation New FastLane Requirements!
D. Review of Phase IIB Proposals
E. Award Recommendation
F. Payment and Release of Funding
G. Reporting Requirements

A. Phase IIB Option Objective (only applicable for SBIR and STTR Phase II grantees.)

The Phase IIB Option helps bridge the gap in funding between Phase II and Phase III. The Phase IIB Option will provide additional funds to Phase II grantees that obtain third party funds. The objective of the Phase IIB Option is to extend the R&D efforts beyond a current grant to meet the product/process/software requirements of a third party investor to accelerate the Phase II project to the commercialization stage and/or enhance the overall strength of the commercial potential of the Phase II project. A Phase IIB Supplement up to $250,000 extends the Phase II grant for one year while  a Phase IIB supplement  in excess of $250,000 extends the Phase II grant for  two years  Please note that a grant can always be finished early if all the proposed research is completed and a final report submitted and approved.

The Phase IIB option is a one-time opportunity that only applies to Phase II grants that are active. There is no resubmission at a later date if a Phase IIB proposal is declined. A no cost extension disqualifies a grantee from the Phase IIB option.

B. Eligibility for Phase IIB

Please note:

Phase II eligible grantees may now submit their Phase IIB proposal anytime during the original 24 month period of the Phase II award with the following requirements:

1. The proposer must request and receive authorization in writing from their Program Officer at least 30 days prior to submitting the Phase IIB proposal.
2. The request for authorization must include a summary of the proposed third party investment package.
3. The Phase IIB proposal must include the complete executed documentation of the third party investment package.
4. Any Phase IIB proposal that does not have complete executed documentation of the third party investment package or is submitted after the expiration date of the original Phase II award will be returned without review.

The third party investor (reference definition of third party investor).  must commit a minimum of $100,000. NSF will match up to 50% of funds received. The SBIR/STTR Phase II awards will be made for a maximum of $500,000 and the Phase IIB additional supplement will be made for a maximum of $500,000. The total cumulative award for the Phase II plus the Phase IIB match cannot exceed $1,000,000. Please note -- Phase IIB funding in excess of $250,000 up to $500,000 have additional requirements:

1. Only non-governmental, private sector third-party funding will be matched by NSF.
2. A representative from the SBIR grantee institution and one from the private sector third-party are expected to make a presentation to a NSF Program Officer panel.
3. The final award recommendation may be subject to SBA approval.

The additional Federal funds can be used only for advancing the research related elements of the project. The third-party investor funds can be used for research or other business related efforts in order to accelerate the innovation to commercialization. Market research, advertising, patent applications and refining of the business plan are good examples of uses for the third-party investor funds. The executed third party documentation from the third party investor must specify the amount of the investment and the method by which the investor will provide the funding to the company. The third party funding can be cash, liquid assets, tangible financial instruments but not in-kind or other "intangible assets". Loans and investments with contingency clauses are not acceptable. Self-funding does not qualify for the Phase IIB option.

C. Phase IIB Proposal Preparation.

Phase IIB proposals MUST be submitted using FastLane. The Phase IIB proposal shall not exceed 15 pages. The additional work proposed should be an expansion of the technical work being performed in the Phase II project and must fall within the scope of the present Phase II project. The proposal will contain the following: The following sections count toward the 15 pages:

1. An Executive Summary of the Commercialization Plan
2. A discussion of the "New" R&D Activities (including how the third-party funding will be used to accelerate and/or expand commercialization
3. A summary of the third party investment

The following sections do not count toward the 15 pages:

1. Executed third party documentation for the investment match for Phase IIB SBIR funding
2. An updated milestone chart reflecting the additional year of effort.
3. A new Certificate of Current Cost Pricing Data
4. A new budget for the portion of the funds requested from NSF for the Phase IIB project and budget line item justification

The following are the steps for preparing the proposal using the FastLane system.

1. Go to the FastLane Home Page (www.fastlane.nsf.gov)
2. Select from the left hand-side of the page the "Proposals, Awards and Status" link
3. Provide your Last Name, SSN, and Password. Click on "Login"
4. Select from the Principal Investigator (PI)/Co-Principal Investigator (Co-PI) Management Screen the option entitled "Award And Reporting Functions"
5. Select the "Supplemental Funding Request" link
6. A List of Current Awards will appear. Highlight the award you are preparing the Phase IIB proposal for and then click "Prepare Supplemental Funding Request"
7. Highlight award number (it should already be highlighted) and then click on "Create New Supplemental Funding Request"
8. At the Form Preparation Screen 6 "GO" buttons appear. The following information MUST be provided in each:

GO Summary of Proposed Work

1. Executive Summary of the Commercialization
2. "New" R&D Activities Proposed

GO Justification for Supplement

1. Upload the "Executed Third-Party Documentation, Purchase Orders, Licensing Agreements, etc.

GO Supplementary Docs

Upload the following documents (combine the two word documents and upload as one file). The Word templates for the Milestone Chart and the Certificate of Current Cost Pricing Data can be found at: http://www.nsf.gov/eng/sbir/forms.jsp

1. New Milestone Chart
2. Certificate of Current Cost Pricing Data

GO Revised Expiration Date:

Add 12 months (or 24 months for a Phase IIB over $250,000) to your current expiration date

GO Budgets (including Justification)

Prepare new budget for the Phase IIB activities (only the NSF funding). Make sure to budget one or two trips to the SBIR/STTR Phase II Grantees Conference depending on the length of the grant extension. Provide complete line item justification for ALL budget items The budget justification must include a statement that all budgeted rates do not exceed the rates awarded under the Phase II grant. Rates include salaries, indirect costs, fringe benefits, overhead, G&A, unit cost rates, etc.

GO Add/Delete Non Co-PI Senior Personnel
Use this module if personnel for the Phase IIB activities will change from the present Phase II project

1. Complete all required forms and then click on "Go Back"
2. At the "Request for Supplemental Funding" screen click on "Allow SRO Access"
3. At the "Sponsored Research Office (SRO) Access Control" screen, select "Allow SRO to view, edit and submit proposal"
4. A confirmation message stating that the SRO has access to the proposal will appear.
5. To actually submit the Phase IIB proposal the following steps will need to be performed. This can only be done by the individual that the company has designated as the "Authorized Organizational Representative"
   
   
   • Go to the FastLane Home Page.
   • Select from the left hand-side the "Research Administration" link
   • Provide your Last Name, SSN, and Password.
   • From the "Research Administration Functions for Your Company" select the "Submit Proposals to NSF" GO button
   • In the Proposals in Progress Window, highlight the proposal and then select "Submit"
     
     
6. If you have problems or questions please contact the NSF FastLane Help Desk at 1-800-673-6188. Make sure to inform the Help Desk that you are submitting a Supplemental Funding Request.

D. Review of Phase IIB Proposals

All Phase IIB proposals will be reviewed in-house by a minimum of two NSF SBIR/STTR Program Officers. Each proposal will be reviewed based on the review criteria below.

Criterion: What is the intellectual merit of the proposed activity? Potential considerations: Will the completion of the proposed activity lead to a solid foundation of the scientific and engineering knowledge and understanding base? Has the firm progressed satisfactorily in the Phase II activity to justify a Phase IIB activity? Is the proposed plan a sound approach for establishing technical feasibility that could lead to commercialization?

Criterion: What are the broader impacts of the proposed activity? Potential considerations: Does the commercialization plan summary in the proposed activity show a clear path to commercial and societal benefits? Does the proposed activity reflect changes to the Phase II commercialization plan that further improves the chances of conversion of research in order to provide societal benefits? What are the expectations of the third party and how effective will the third party funded activity lead to commercial and societal benefit? Evaluate the competitive advantages of this technology vs. alternate technologies that can meet similar market needs.

E. Award Recommendation. A Phase IIB applicant will be notified within 60 days from submission of award recommendation.

F. Payment and Release of Funding. The Phase IIB match will be released under the following schedule:

1. For Phase IIB supplements up to $250,000 (12 month extension) 50% will be released as the advance payment and 50% with an approved 6-month interim report.
2. For Phase IIB supplements greater than $250,000 (24 month extension) 25% will be released as the advance payment; 25% with an approved 6-month interim report; 25% with an approved 12-month interim report and 25% with an approved 18-month interim report.

The final payment on the original Phase II will be made at the end of the Phase IIB supplement. *Payment will be released upon the receipt of a letter that the entire amount of the funds from the outside investor has been transferred to the company; this letter must be signed by both the company and the third party investor and must specifically state the total amount of the third party investment. For other forms of third party matches, such as contracts or purchase orders, a detailed release schedule (if applicable) must be provided. *A copy of the bank statement, contract, or purchase order must be provided to NSF. This information should be sent to the cognizant NSF SBIR Program Officer. * All third party investment funds, upon which the Phase IIB supplement is made, must be transferred to the company by the end of the Phase IIB award. A copy of bank statements must be provided to NSF to verify that all funds have been transferred.

G. Reporting Requirements. In updating the milestone chart, the reports due at during the Phase IIB supplement should reflect the progress of both the Phase II and IIB programs using the standard progress report format. The final reporting documents will now be required at the end of Phase IIB. Upon completion of the Phase IIB, complete documentation, including initial Phase II as well as Phase IIB supplemental activities must be reported. The report must include:

1. Combined Phase II and IIB Final Report (submitted electronically)