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Frequently
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SBIR
- What is the SBIR Program?
The Small Business Innovation Research (SBIR) Program is a highly
competitive three-phase award system which provides qualified
small business concerns with opportunities to propose innovative
ideas that meet the specific research and development needs of
the Federal Government.
- What are the three phases of the SBIR Program?
Phase 1 is a feasibility study to evaluate the scientific and
technical merit of an idea. Awards are for periods of up to six
months in amounts up to $100,000. Phase 2 is to expand on the results
of and further pursue the development of Phase 1. Awards are for
periods of up to two years in amounts up to $600,000. Phase 3
is for the commercialization of the results of Phase 2 and requires
the use of private sector or non-SBIR Federal funding.
- Do you have to be a Phase I awardee in order to be considered
for Phase 2 of a project?
Yes.
- What is the small business size standard for purposes of the SBIR
Program?
A small business concern for purposes of award of any funding
agreement under the SBIR Program is one which, including its affiliates,
has a number of employees not exceeding 500.
- How can a small business concern obtain funding under SBIR?
A small business can obtain funding under SBIR by being the recipient
of a competitively awarded SBIR funding agreement.
- What is an SBIR funding agreement?
An SBIR funding agreement is a contract or grant entered into
between an SBIR participating Federal agency and a small business
concern for the performance of experimental, developmental, or
research work funded by the Federal Government.
- Does the Small Business Administration make any awards under the
SBIR Program?
No. The SBA has authority and responsibility for monitoring and
coordinating the Government-wide activities of the SBIR Program
and reporting its results to Congress. The Federal agencies participating
in SBIR have the responsibility for: (a) selecting SBIR topics,
(b) releasing SBIR solicitations, (c) evaluating SBIR proposals,
and (d) awarding SBIR funding agreements on a competitive basis
- Who are the participants in the SBIR Program?
The following Federal agencies are eligible to participate: Department
of Agriculture, Department of Commerce, Department of Defense,
Department of Education, Department of Energy, Department of Health,
and Human Services, Department of Transportation, Environmental
Protection Agency, National Aeronautics and Space Administration,
National Science Foundation, and Nuclear Regulatory Commission.
- Can a firm go directly to a Phase 2 award without having
to compete for Phase 1?
No. The SBIR Program was created for NEW innovations to meet existing
Federal R&D needs. The results of a Phase 1 are a determining
factor in deciding whether there will be a Phase 2 award to continue
the effort.
- Does SBA designate any of the topics cited in SBIR solicitations
or make any awards under SBIR?
No. The legislation governing the SBIR Program gives unilateral
authority and responsibility for these functions to each of the
Federal agencies participating in the program.
- Since SBIR is a program to assist small business innovators, can
SBA or the other Federal participating agencies provide direct
funding for a project which a firm has initiated on its own?
No. SBA does not fund SBIR projects and such an endeavor would
be considered an unsolicited proposal, which is outside the scope
of the SBIR Program.
- Is a small U.S. firm still eligible to compete for an SBIR award,
if it forms a 50-50 joint venture with a non-profit or foreign
firm?
No.
- Are foreign based firms eligible for SBIR awards?
No. To be eligible for award of SBIR funding agreements, a small
business concern has to meet the following qualifications: --
be independently owned and operated -- principal place of business
is located in the United States -- at least 51 percent owned or
in the case of a publicly owned business, at least 51% of its
voting stock is owned by United States citizens or lawfully admitted
permanent resident aliens.
- Are non-profit concerns eligible for SBIR awards?
No.
- May a portion of an SBIR award be subcontracted?
For Phase 1 a minimum of two thirds of the research and/or analytical
effort must be performed by the proposing firm, and for Phase
2, a minimum of one-half of the research and/or analytical effort
must be performed by the proposing firm.
- Can a Federal agency other than the one originating the
Phase 1 award make the Phase 2 award under the same SBIR topic?
No. Awards of this type would be the result of an unsolicited
proposal, and therefore, would be considered outside the scope
of the SBIR Program.
- What is the difference between SBIR solicitations and the SBIR
Pre-Solicitation Announcement?
SBIR solicitations are specific Requests for Proposals released
by the Federal agencies participating in the program which may
result in the award of Phase 1 SBIR funding agreements. SBIR Pre-Solicitation
Announcements, released by SBA, contain pertinent data on SBIR
solicitations that are about to be released by the participating
Federal agencies.
- What is the Commercialization Matching System (CMS)?
CMS is a system developed by the Small Business Administration
to assist SBIR awardees in their efforts to locate sources of
funding needed for finalization of their innovations.
- May firms that have not successfully competed for SBIR awards
participate in CMS?
No. This system was established exclusively to link SBIR awardees
with potential sources of capital and vice versa.
- Will SBA provide funds for SBIR commercialization?
No. Private sources of capital should be used. However, SBIR awardees
are encouraged to seek information on all of the services that SBA makes
available to the small business community.
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STTR
- What is the STTR Program?
STTR is a highly competitive three-phase program that reserves
a specific percentage of Federal research and development funding
for award to small businesses in partnership with nonprofit research
institutions to move ideas from the laboratory to the marketplace,
to foster high-tech economic development and to address the technological
needs of the Federal Government.
- What are the three phases of the STTR Program?
Phase 1 is the start-up phase for the exploration of the scientific,
technical, and commercial feasibility of an idea or technology.
Awards are for periods of up to one year in amounts up to $100,000.
Phase 2 is to expand Phase 1 results. During this period the R&D
work is performed and the developer begins to consider commercialization
potential. Awards are for periods of up to two years in amounts
up to $600,000. Phase 3 is the period during which Phase 2 innovation
moves from the laboratory into the marketplace. There is no STTR
funding in this phase.
- Must you be an established business when you propose?
No. However, you must be organized as a business at the time of
award.
- Who can propose?
Only small for-profit businesses can propose.
- What is size criteria?
A small business concern with 500 or fewer employees including
subsidiaries and/or affiliates. The size of the non-profit collaborator
is not relevant.
- How are future rights to projects developed under STTR determined?
The small business concern and the research institution must develop
a written agreement prior to a Phase 1 award. This agreement must
be submitted to the awarding agency, if requested.
- Who are the Federal participants in the STTR Program?
The following five Federal departments and agencies are eligible
to participate: Department of Defense, Department of Energy, National
Aeronautics and Space Administration, Department of Health and
Human Services, and National Science Foundation.
- Can I skip Phase I and begin at Phase 2?
No. Phase 2 awards can only be awarded to firms having successfully
completed Phase 1 at the same awarding agency.
- Does SBA make any STTR awards?
No. The five participating Federal agencies have unilateral procurement
authority.
- Can you subcontract in STTR -- either party or both?
Yes. Either party may subcontract or they may jointly fund a subcontractor.
- Can a small business concern participate in both SBIR and STTR
simultaneously at the same or differing agencies?
Yes, but they may not perform the same or essentially similar
work under more than one contract or grant. Collecting funds more
than once for the same work is fraud.
- Will an unsolicited proposal be accepted in the STTR Program?
No. Proposals must respond to the solicitation as published by
one or more of the participating agencies.
- Who is the prime contractor or grantee?
The small business concern.
- Must the small business concern and/or the research institution
be located in the United States?
Yes. Both the small business concern and the institution must
be on U.S. soil.
- Can a Phase 3 follow-on contract for funding be made, without
competition, to the firm that successfully completes Phase 1 and
2?
Yes, the firm may be given a sole source contract in Phase 3 for
further work or production.
- What is the minimum percent breakout for small firms and institutions
in conducting research?
Small business concerns must perform at least 40% and research
institutions must perform at least 30% of the work.
- Who resolves problems concerning STTR topics, awards, audits, etc.?
The agency issuing the Program Solicitation. SBA handles program
policy for across the board uniformity, reporting to Congress
and program oversight.
- Where can I go for further information on how I get started or
if there is other assistance available?
Information can be obtained from SBA OnLine Bulletin Board by dialing:
1-800-697-4636. To receive information on other SBA programs, please
contact your local SBA office or call the SBA Answer Desk: 1-800-8-
ASK-SBA.
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Patent Related Questions
- If we develop technology and decide NOT to exercise our rights
to a patent, is that technology then published and if so how and
to whom?
A contractor has the first option to elect to retain title
to a subject invention and pursue patent protection. To the extent
authorized by 35 U.S.C. 205, the Government will not disclose
(publish) the invention to the public for a reasonable time in
order for a patent application to be filed by the contractor.
Time periods are specified in the contract. If the contractor
does not elect to retain title the Government has the option to
pursue patent protection. Any publication of the invention before
a patent application has been filed will establish a statutory
bar to patenting, requiring the filing of a patent application
before the one-year statutory time period has expired. If neither
the contractor nor the Government is interested in pursuing patent
protection either party may pursue publication. NASA routinely
publishes new innovations in NASA TechBriefs as well as making
them electronically available over the Internet. For more information
see, FAR 52.227-11 "Patent Rights - Retention by the Contractor
(Short Form), "as Modified by NASA FAR Supplement 18-52.227-11."
- If an innovation is created under an SBIR the small company owns
the intellectual property. What rights does the government have
to the intellectual property? Can they give the technology to
and have someone else build it for them or build the device themselves
and not pay royalties? Has this ever happened and how do we guard
against it?
With respect to any subject invention an SBIR contractor has the
first option to retain title and file for patent protection. The
Federal Government shall have a nonexclusive, nontransferable,
irrevocable, paid-up license to practice or have practiced for
or on behalf of the United States the subject invention throughout
the world. A "subject invention" means any invention of the contractor
conceived or first actually reduced to practice in the performance
of work under the contract. Thus, the Federal Government has the
right to build the subject invention itself or have a contractor
build it for them and not pay royalties to the SBIR contractor.
These rights are established by statute. For more information
see, FAR 52.227-11 "Patent Rights - Retention by the Contractor
(Short Form)," as Modified by NASA FAR Supplement 18-52.227-11."
- Can the SBIR pay for the patent costs?
Contractors must pay their own patent costs for subject inventions
in which they retain title.
- If an innovation comes out of an idea presented in the proposal
but the core idea of the technology was developed with private
funding, does the government have rights to that technology? Is
[Are] there some instances where the technology is split between
industry and government?
With respect to any subject invention in which the contractor
retains title, the Federal Government shall have a nonexclusive,
nontransferable, irrevocable, paid-up license to practice or have
practiced for or on behalf of the United States the subject invention
throughout the world. A "subject invention" means any invention
of the contractor conceived or first actually reduced to practice
in the performance of work under the contract. Conception and
actual reduction to practice are terms of art used in the patent
law. An invention conceived under a contract becomes a subject
invention to which the Government obtains rights. Also, an invention
conceived with private funding could become a subject invention
if it is first actually reduced to practice in the performance
of work under the contract. For more information see, FAR 52.227-11
"Patent Rights - Retention by the Contractor (Short Form)," as
Modified by NASA FAR Supplement 18-52.227-11." The question concerning
how "technology is split between industry and government" is interpreted
as a question concerning what happens in the case of jointly invented
industry and government inventions. Because research and development
work is being done by the employees of a contractor, it is not
generally anticipated that a joint invention will arise with Government
employees. Nevertheless, should a subject invention be made that
is co-invented by industry and government employees, the invention
will be jointly owned by the contractor and the Government. Absent
an agreement to the contrary, if the SBIR contractor obtains patent
protection, each owner independent of the other may exploit the
patent.
- Are there any restrictions on intellectual property developed under
an SBIR that can keep industry from licensing the technology overseas,
selling the technology overseas? If not, what happens to the government's
right to use that technology?
Assuming the technology is not export control restricted, there
is a statutory preference for manufacturing subject inventions
covered by U.S. patents substantially in the United States. The
manufacturing preference does not preclude licensing the patented
technology overseas should foreign protection be obtained. The
preference for US manufacture also does not preclude selling the
patented technology overseas. The licensing or selling of technology
overseas does not affect the Government's rights in the subject
invention.
- Can industry put restrictions on technology it is using as a component
part to the SBIR? Can we notify government that "trade secrets
have been used to develop this technology and must never be published"?
In other words, technology X is not part of the unlimited rights
to the government.
If data other than (i) "Data specifically identified in the contract
as data to be delivered without restriction: (ii) Form, fit, and
function data delivered under the contract; and (iii) Data delivered
under the contract that constitute manuals or instructional and
training material for installation, operation, or routine maintenance
and repair of items, components, or processes delivered or furnished
for use under the contract, are specified to be delivered under
the contract and such data qualify as either limited rights data
or restricted computer software, the contractor, if the contractor
desires to continue protection of such data, shall withhold such
data and not furnish them to the Government under the contract.
As a condition to this withholding the contractor shall identify
the data being withheld and furnish form, fit, and function data
in lieu thereof. "Limited rights data", means data (other than
computer software) developed at private expense that embody trade
secrets or are commercial or financial and confidential or privileged,
should be withheld from delivery if the contractor desires to
continue protection of such data. "Restricted Computer Software"
means computer software developed at private expense and that
is a trade secret; is commercial or financial and confidential
or privileged; or is published copyrighted computer software;
including modifications of such computer software. For more information
see, FAR 52.227-20 "Rights in Data - SBIR Program."
- When there is industry investment (matching of funds) how does
this affect the Government rights to the technology?
The Government's rights in a subject invention are established
whenever the Federal Government funds research and development
work in whole or in part under a contract. The use of matching
funds by a contractor does not affect the rights of the Government
to subject inventions. The Government's rights in data are established
in FAR 52.227-20 "Rights in Data - SBIR Program." SBIR data may
be protected for a period of 4 years.
- If industry determines (for whatever reason) that it isn't feasible
to patent the technology but later realizes there is what happens?
The contractor has the first option to elect to retain title to a subject
invention and pursue patent protection. Time periods for election of
title and filing of a patent application are specified in the contract.
If the contractor explicitly declines to retain title or fails to notify
the Government of its decision within the prescribed time, the option
becomes the Government's. For more information see, FAR 52.227-11 "Patent
Rights - Retention by the Contractor (Short Form)," as Modified by NASA
FAR Supplement 18-52.227-11."
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