National Aeronautics and Space Administration
Small Business Innovation Research & Technology Transfer 2008 Program Solicitations

Chapter 3. Proposal Preparation Instructions and Requirements

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3.1 Fundamental Considerations
3.2 Phase 1 Proposal Requirements
3.3 Phase 2 Proposal Requirements
3.4 SBA Data Collection Requirement

3. Proposal Preparation Instructions and Requirements



3.1 Fundamental Considerations

Multiple Proposal Submissions
Each proposal submitted must be based on a unique innovation, must be limited in scope to just one subtopic and may be submitted only under that one subtopic within each program. An offeror may not submit more than 10 proposals to each of the SBIR or STTR programs, and may submit more than one proposal to the same subtopic; however, an offeror should not submit the same (or substantially equivalent) proposal to more than one subtopic. Submitting substantially equivalent proposals to several subtopics may result in the rejection of all such proposals. In order to enhance SBC participation, NASA does not plan to select more than 5 SBIR proposals and 2 STTR proposals from any one offeror.


STTR: All Phase 1 proposals must provide sufficient information to convince NASA that the proposed SBC/RI cooperative effort represents a sound approach for converting technical information resident at the RI into a product or service that meets a need described in a Solicitation research topic.

Contract Deliverables
In order to help the contractor and NASA make better use of the SBIR/STTR products, the Phase 1 and 2 contractor (with help from designated NASA personnel) will be required to update, as a deliverable, their Technology Infusion Form. The essence of the form is to identify one or more specific NASA projects, project points of contacts, and project problems. The NASA project points of contacts will also have electronic access to these subsequent deliverables for comment.

All Phase 1 contracts shall require the delivery of interim and final reports that present (1) the work and results accomplished, (2) the scientific, technical and commercial merit and feasibility of the proposed innovation and Phase 1 results, (3) its relevance and significance to one or more NASA needs (Section 9), and (4) the strategy for development and transition of the proposed innovation and Phase 1 results into products and services for NASA mission programs and other potential customers. Phase 1 deliverables may also include the demonstration of the proposed innovation and/or the delivery of a prototype or test unit, product or service for NASA testing and utilization.

Phase 2 contracts require the deliverable of interim and final reports. The delivery of a prototype unit, software package, or a complete product or service, for NASA testing and utilization is highly desirable and, if proposed, must be described and listed as a deliverable in the proposal. The Phase 2 reports shall present (1) the work and results accomplished, (2) the scientific, technical and commercial merit and feasibility of the proposed innovation and Phase 2 results, (3) its relevance and significance to one or more NASA needs (Section 9), and (4) the progress towards transitioning the proposed innovation and Phase 2 results into follow-on investment, development, testing and utilization for NASA mission programs and other potential customers.

Report deliverables for Phase 1 and Phase 2 shall be submitted electronically via the SBIR/STTR website. NASA requests the submission of report deliverables in PDF format. Other acceptable formats are MS Word, MS Works, and WordPerfect.


3.2 Phase 1 Proposal Requirements

3.2.1 General Requirements
A competitive proposal will clearly and concisely (1) describe the proposed innovation relative to the state of the art, (2) address the scientific, technical and commercial merit and feasibility of the proposed innovation and its relevance and significance to NASA needs as described in Section 9, and (3) provide a preliminary strategy that addresses key technical, market, business factors pertinent to the successful development, demonstration of the proposed innovation, and its transition into products and services for NASA mission programs and other potential customers.

Page Limitation
A Phase 1 proposal shall not exceed a total of 25 standard 8 1/2 x 11 inch (21.6 x 27.9 cm) pages inclusive of the technical content and the required forms. Proposal items required in Section 3.2.2 will be included within this total. Forms A, B, and C count as one page each regardless of whether the completed forms print as more than one page. Each page shall be numbered consecutively at the bottom. Margins should be 1.0 inch (2.5 cm). Proposals exceeding the 25-page limitation will be rejected during administrative screening.

Website references, product samples, videotapes, slides, or other ancillary items will not be considered during the review process. Offerors are requested not to use the entire 25-page allowance unless necessary.

Type Size
No type size smaller than 10 point shall be used for text or tables, except as legends on reduced drawings. Proposals prepared with smaller font sizes will be rejected without consideration.

Header/Footer Requirements
Header must include firm name, proposal number, and project title. Footer must include the page number and proprietary markings if applicable. Margins can be used for header/footer information.

Classified Information
NASA does not accept proposals that contain classified information.

3.2.2 Format Requirements
All required items of information must be covered in the proposal. The space allocated to each part of the technical content will depend on the project chosen and the offeror's approach.

Each proposal submitted must contain the following items in the order presented:

  1. Cover Sheet (Form A), electronically endorsed,
  2. Proposal Summary (Form B),
  3. Budget Summary (Form C),
  4. Technical Content (11 parts in order as specified in Section 3.2.4, not to exceed 22 pages for SBIR and 21 pages for STTR - see box below), including all graphics, with a table of contents,
  5. Briefing Chart (Not included in the 25-page limit and must not contain proprietary data).

STTR: Each STTR proposal must also contain a Cooperative R/R&D Agreement between the SBC and RI following the required items listed above. The agreement is included as part of the 25-page limit.

3.2.3 Forms

3.2.3.1 Cover Sheet (Form A)
A sample Cover Sheet form is provided in Section 8. The offeror shall provide complete information for each item and submit the form as required in Section 6. The proposal project title shall be concise and descriptive of the proposed effort. The title should not use acronyms or words like "Development of" or "Study of." The NASA research topic title must not be used as the proposal title.

3.2.3.2 Proposal Summary (Form B)
A sample Proposal Summary form is provided in Section 8. The offeror shall provide complete information for each item and submit Form B as required in Section 6.

Technical Abstract
Summary of the offeror's proposed project is limited to 200 words and shall summarize the implications of the approach and the anticipated results of both Phase 1 and Phase 2 including an assessment of technology readiness levels (TRLs) at the end of the Phase 1 contract. NASA will reject a proposal if the technical abstract is judged to be non-responsive to the subtopic.

 Technology Taxonomy
Selections for the technology taxonomy are limited to technologies supported or relevant to the specific proposal. The listing of technologies for the taxonomy is provided at the end of Section 9.

Potential NASA and non-NASA commercial applications of the technology must also be presented.

Note: The Cover Sheet (Form A) and the Proposal Summary (Form B), including the Technical Abstract, are public information and may be disclosed. Do not include proprietary information on Form A and Form B.

3.2.3.3 Budget Summary (Form C)
The offeror shall complete the Budget Summary, following the instructions provided with the form (Section 8). The total requested funding for the Phase 1 effort shall not exceed $100,000. A text box is provided on the electronic budget form for additional explanation. Information shall be submitted to explain the offeror's plans for use of the requested funds to enable NASA to determine whether the proposed budget is fair and reasonable. The government is not responsible for any monies expended by the applicant before award of any contract.

Property
Proposed costs for materials may be included. "Materials" means property that may be incorporated or attached to a deliverable end item or that may be consumed or expended in performing the contract. It includes assemblies, components, parts, raw materials, and small tools that may be consumed in normal use. Any purchase of equipment or products under an SBIR/STTR contract using NASA funds should be American-made to the extent possible. NASA will not fund the purchase of equipment, instrumentation, or facilities under SBIR/STTR contracts as a direct cost (Section 5.15).

Phase 1 Travel
The NASA SBIR/STTR program does not require or expect to incur travel expenses during the performance of a Phase 1 contract. For this reason, travel expenses should not be included in the proposed budget for a Phase 1 proposal. If the Technical Monitor and Contracting Officer determine that travel is necessary, the budget can be altered during contract negotiations to allow for this.

Phase 1 Delivery Schedule
The standard reporting requirements for Phase 1 are an updated Technology Infusion Form, an interim technical report due at contract mid-point after award, a final report and new technology report due upon contract completion plus any other required deliverables.

Profit
A profit or fee may be included in the proposed budget as noted in Section 5.10.

Cost Sharing
See Section 5.9.

3.2.4 Technical Content
This part of the submission shall not contain any budget data and must consist of all eleven parts listed below in the given order. All parts must be numbered and titled; parts that are not applicable must be noted as "Not Applicable."

Part 1: Table of Contents
The technical content shall begin with a brief table of contents indicating the page numbers of each of the parts of the proposal. The required table of contents is provided below:

Phase 1 Table of Contents
Part 1: Table of Contents.......................................................................................Page #
Part 2: Identification and Significance of the Innovation
Part 3: Technical Objectives
Part 4: Work Plan
Part 5: Related R/R&D
Part 6: Key Personnel and Bibliography of Directly Related Work
Part 7: Relationship with Phase 2 or Future R/R&D
Part 8: Company Information and Facilities
Part 9: Subcontracts and Consultants
Part 10: Potential Post Applications
Part 11: Similar Proposals and Awards

Part 2: Identification and Significance of the Proposed Innovation
Succinctly describe:
  1. the proposed innovation;
  2. the relevance and significance of the proposed innovation to a need, or needs, within a subtopic described in Section 9; and
  3. the proposed innovation relative to the state of the art.

Part 3: Technical Objectives
State the specific objectives of the Phase 1 R/R&D effort including the technical questions that must be answered to determine the feasibility of the proposed innovation.

Part 4: Work Plan
Include a detailed description of the Phase 1 R/R&D plan to meet the technical objectives. The plan should indicate what will be done, where it will be done, and how the R/R&D will be carried out. Discuss in detail the methods planned to achieve each task or objective. Task descriptions, schedules, resource allocations, estimated task hours for each key personnel, and planned accomplishments including project milestones shall be included.


STTR: In addition, the work plan will specifically address the percentage and type of work to be performed by the SBC and the RI. The plan will provide evidence that the SBC will exercise management direction and control of the performance of the STTR effort, including situations in which the PI may be an employee of the RI. At least 40 percent of the work (amount requested including cost sharing, less fee, if any) is to be performed by the SBC as the prime contractor, and at least 30 percent of the work is to be performed by the RI.

Part 5: Related R/R&D
Describe significant current and/or previous R/R&D that is directly related to the proposal including any conducted by the PI or by the offeror. Describe how it relates to the proposed effort and any planned coordination with outside sources. The offeror must persuade reviewers of his or her awareness of key recent R/R&D conducted by others in the specific subject area. At the offeror's option, this section may include bibliographic references.

Part 6: Key Personnel and Bibliography of Directly Related Work
Identify key personnel involved in Phase 1 activities whose expertise and functions are essential to the success of the project. Provide bibliographic information including directly related education and experience.

The PI is considered key to the success of the effort and must make a substantial commitment to the project. The following requirements are applicable:

Functions: The functions of the PI are: planning and directing the project; leading it technically and making substantial personal contributions during its implementation; serving as the primary contact with NASA on the project; and ensuring that the work proceeds according to contract agreements. Competent management of PI functions is essential to project success.The Phase 1 proposal shall describe the nature of the PI's activities and the amount of time that the PI will personally apply to the project. The amount of time the PI proposes to spend on the project must be acceptable to the Contracting Officer.

Qualifications: The qualifications and capabilities of the proposed PI and the basis for PI selection are to be clearly presented in the proposal. NASA has the sole right to accept or reject a substitute PI based on factors such as education, experience, demonstrated ability and competence, and any other evidence related to the specific assignment.

Eligibility: This part shall also establish and confirm the eligibility of the PI (Section 1.5.3), and indicate the extent to which other proposals recently submitted or planned for submission in 2008 and existing projects commit the time of the PI concurrently with this proposed activity. Any attempt to circumvent the restriction on PIs working more than half time for an academic or a nonprofit organization by substituting an ineligible PI will result in rejection of the proposal.

Part 7: Relationship with Future R/R&D
State the anticipated results of the proposed R/R&D effort if the project is successful (through Phase 1 and Phase 2). Discuss the significance of the Phase 1 effort in providing a foundation for the Phase 2 R/R&D effort and for follow-on development, application and commercialization efforts (Phase 3).

Part 8: Company Information and Facilities
Provide adequate information to allow the evaluators to assess the ability of the offeror to carry out the proposed Phase 1 and projected Phase 2 and Phase 3 activities. The offeror should describe the relevant facilities and equipment, their availability, and those to be acquired, to support the proposed activities. NASA will not fund the purchase of equipment, instrumentation, or facilities under Phase 1 contracts as a direct cost. Special tooling may be allowed. (Section 5.15)

The capability of the offeror to perform the proposed activities and to accomplish the commercialization of the proposed innovation and R/R&D results must be presented. Qualifications of the offeror in performing R/R&D activities and technology commercialization must be presented.

Note: Government wide SBIR and STTR policies prohibit the use of any SBIR/STTR award funds for the use of Government equipment and facilities. This does not preclude an SBC from utilizing a Government facility or Government equipment, but any charges for such use cannot be paid for with SBIR/STTR funds (SBA SBIR Policy Directive, Section 9 (f)(3)). NASA will not and cannot fund the use of the Federal facility or personnel for the SBIR project with non-SBIR money. In rare and unique circumstances, SBA may issue a case-by-case waiver to this provision after review of an agency's written justification. NASA cannot guarantee that a waiver from this policy can be obtained from SBA.

The following information is required for consideration of a waiver:

  1. An explanation of why the SBIR research project requires the use of the Federal facility or personnel, including data that verifies the absence of non-federal facilities or personnel capable of supporting the research effort.
  2. The concurrence of the SBC's chief business official to use the Federal facility or personnel.

If a proposed project or product demonstration requires the use of unique Government facilities or equipment to be funded by the SBIR program, then the offeror must provide a) a letter from the SBC Official explaining why the SBIR/STTR research project requires the use of the Federal facility or personnel, including data that verifies the absence of non-Federal facilities or personnel capable of supporting the research effort, and b) a statement, signed by the appropriate Government official at the facility, verifying that it will be available for the required effort. The proposal should also include relevant information on the funding source(s) private, internal, or other Government. Failure to provide this explanation and the site manager's written authorization of use may invalidate any proposal selection. If the offeror proposes the use of SBIR/STTR funds for Government equipment or facilities, this explanation will be provided to SBA during the Agency waiver process.

Additional information on the use of NASA facilities, facility programs, and equipment is available at http://sbir.nasa.gov/SBIR/facilities.html.

Part 9: Subcontracts and Consultants�
Subject to the restrictions set forth below, the SBC may establish business arrangements with other entities or individuals to participate in performance of the proposed R/R&D effort. The offeror must describe all subcontracting or other business arrangements, and identify the relevant organizations and/or individuals with whom arrangements are planned.The expertise to be provided by the entities must be described in detail, as well as the functions, services, number of hours and labor rates.� Offerors are responsible for ensuring that all organizations and individuals proposed to be utilized are actually available for the time periods required.� Documentation of subcontract costs must be made available during negotiations to substantiate the budget estimate.�

Subcontractors' and consultants' work must be performed in the United States. The following restrictions apply to the use of subcontracts/consultants:



SBIR
STTR
The proposed subcontracted business arrangements must not exceed one-third of the research and/or analytical work (as determined by the total cost of the proposed effort, before any cost sharing or fee/profit proposed by the firm, which corresponds to Item 6 in the Budget Summary, Total Costs).

The proposed subcontracted business arrangements with individuals or organizations other than the RI must not exceed 30 percent of the work (as determined by the total cost of the proposed effort, before any cost sharing or fee/profit proposed by the firm, which corresponds to Item 6 in the Budget Summary, Total Costs).


Part 10: Potential Post Applications (Commercialization)
The Phase 1 proposal shall (1) forecast the potential and targeted application(s) of the proposed innovation and associated products and services relative to NASA needs (infusion into NASA mission needs and projects) (Section 9), other Government agencies and commercial markets, (2) identify potential customers, and (3) provide an initial commercialization strategy that addresses key technical, market and business factors for the successful development, demonstration and utilization of the innovation and associated products and services. Commercialization encompasses the transition of technology into products and services for NASA mission programs, other Government agencies and non-Government markets.

Part 11: Similar Proposals and Awards
A firm may elect to submit proposals for essentially equivalent work to other Federal program solicitations (Section 2.5). Firms may also choose to resubmit previously unsuccessful Phase 1 proposals to NASA. However, it is unlawful to receive funding for essentially equivalent work already funded under any Government program. The Office of Inspector General has full access to all proposals submitted to NASA. The offeror must inform NASA of related proposals and awards and clearly state whether the SBC has submitted currently active proposals for similar work under other Federal Government program solicitations, or intends to submit proposals for such work to other agencies. For all such cases, the following information is required:
  1. The name and address of the agencies to which proposals have been or will be submitted, or from which awards have been received (including proposals that have been submitted to previous NASA SBIR Solicitations);
  2. Dates of such proposal submissions or awards;
  3. Title, number, and date of solicitations under which proposals have been or will be submitted or awards received;
  4. The specific applicable research topic for each such proposal submitted or award received;
  5. Titles of research projects;
  6. Name and title of the PI/project manager for each proposal that has been or will be submitted, or from which awards have been received;
  7. If resubmitting to NASA, please briefly describe how the proposal has been changed and/or updated since it was last submitted.

Note: All eleven (11) parts of the technical proposal must be included. Parts that are not applicable must be included and marked "Not Applicable." A proposal omitting any part will be considered non responsive to this Solicitation and will be rejected during administrative screening.

3.2.5 Cooperative R/R&D Agreement (Applicable for STTR proposals only)
The Cooperative R/R&D Agreement (not to be confused with the Allocation of Rights Agreement, Section 4.1.4) is a single-page document electronically submitted and endorsed by the SBC and Research Institution (RI). A model agreement is provided, or firms can create their own custom agreement. The Cooperative R/R&D Agreement should be submitted as required in Section 6. This agreement counts toward the 25-page limit.

3.2.6 Prior Awards Addendum (Applicable for SBIR awards only)
If the SBC has received more than 15 Phase 2 awards in the prior 5 fiscal years, submit name of awarding agency, date of award, funding agreement number, amount, topic or subtopic title, follow-on agreement amount, source, and date of commitment and current commercialization status for each Phase 2. The addendum is not included in the 25-page limit and content should be limited to information requested above. Offerors are encouraged to use spreadsheet format.

3.2.7 Phase 3 Awards resulting from NASA SBIR/STTR Awards
If the SBC has received any Phase 3 awards resulting from work on any NASA SBIR or STTR awards, provide the name of awarding agency, date of award, funding agreement number, amount, topic or subtopic title, follow-on agreement amount, source, and date of commitment and current commercialization status for each award. This listing is not included in the 25-page limit and content should be limited to information requested above. Offerors are encouraged to use a spreadsheet format.


3.2.8 Briefing Chart
A one-page briefing chart is required to assist in the ranking and advocacy of proposals prior to selection. It is not counted against the 25-page limit, and must not contain any proprietary data. An example chart is provided in Section 8, Appendix A.


3.3 Phase 2 Proposal Requirements

3.3.1 General Requirements
The Phase 1 contract will serve as a request for proposal (RFP) for the Phase 2 follow-on project. Phase 2 proposals are more comprehensive than those required for Phase 1. Submission of a Phase 2 proposal is in accordance with Phase 1 contract requirements and is voluntary. NASA assumes no responsibility for any proposal preparation expenses.

A competitive Phase 2 proposal will clearly and concisely (1) describe the proposed innovation relative to the state of the art and the market, (2) address Phase 1 results relative to the scientific, technical merit and feasibility of the proposed innovation and its relevance and significance to the NASA needs as described in Section 9, and (3) provide the planning for a focused project that builds upon Phase 1 results and encompasses technical, market, financial and business factors relating to the development and demonstration of the proposed innovation, and its transition into products and services for NASA mission programs and other potential customers.

Page Limitation
A Phase 2 proposal shall not exceed a total of 50 standard 8 1/2 x 11 inch (21.6 x 27.9 cm) pages. All items required in Section 3.3.2 will be included within this total. Forms A, B, and C count as one page each regardless of whether the completed forms print as more than one page. Each page shall be numbered consecutively at the bottom. Margins should be 1.0 inch (2.5 cm). Proposals exceeding the 50-page limitation may be rejected during administrative screening.

Type Size
No type size smaller than 10 point shall be used for text or tables, except as legends on reduced drawings. Proposals prepared with smaller font sizes will be rejected without consideration.

Header/Footer Requirements
Header must include firm name, proposal number, and project title. Footer must include the page number and proprietary markings if applicable. Margins can be used for header/footer information.

Classified Information
NASA does not accept proposals that contain classified information.

3.3.2 Format Requirements
All required items of information must be covered in the proposal. The space allocated to each part of the technical content will depend on the project and the offeror's approach.

Each proposal submitted must contain the following items in the order presented:

  1. Cover Sheet (Form A), electronically endorsed,
  2. Proposal Summary (Form B),
  3. Budget Summary (Form C),
  4. Technical Content (11 Parts in order as specified in Section 3.3.4), including all graphics, and starting with a table of contents,
  5. Briefing Chart (Not included in the 50-page limit and must not contain proprietary data).

STTR: Each STTR proposal must also contain a Cooperative R/R&D Agreement between the SBC and RI following the required items listed above. The agreement is included as part of the 50-page limit.

3.3.3 Forms

3.3.3.1 Cover Sheet (Form A)
A sample copy of the Cover Sheet is provided in Section 8. The offeror shall provide complete information for each item and submit the form as required in Section 6. The proposal project title shall be concise and descriptive of the proposed effort. The title should not use acronyms or words like "Development of" or "Study of." The NASA research topic title must not be used as the proposal title.

3.3.3.2 Proposal Summary (Form B)
A sample Proposal Summary form is provided in Section 8. The offeror shall provide complete information for each item and submit Form B as required in Section 6.

Technical Abstract
Summary of the offeror's proposed project is limited to 200 words and shall summarize the implications of the approach and the anticipated results of both Phase 1 and Phase 2 including an assessment of technology readiness levels (TRLs) at the end of the Phase 2 contract. NASA will reject a proposal if the technical abstract is judged to be non-responsive to the subtopic.

Technology Taxonomy
Selections for the technology taxonomy are limited to technologies supported or relevant to the specific proposal. The listing of technologies for the taxonomy is provided at the end of Section 9.

Potential NASA and non-NASA commercial applications of the technology must also be presented.

Note: The Cover Sheet (Form A) and the Proposal Summary (Form B), including the Technical Abstract, are public information and may be disclosed. Do not include proprietary information on Form A and Form B.

3.3.3.3. Budget Summary (Form C)
The offeror shall complete the Budget Summary, following the instructions provided with the form (Section 8), not to exceed $600,000. A text box is provided on the electronic budget form for additional explanation. Information shall be submitted to explain the offeror's plans for use of the requested funds to enable NASA to determine whether the proposed budget is fair and reasonable. The Government is not responsible for any monies expended by the applicant before award of any funding agreement.

Property
Proposed costs for materials may be included. "Materials" means property that may be incorporated or attached to a deliverable end item or that may be consumed or expended in performing the contract. It includes assemblies, components, parts, raw materials, and small tools that may be consumed in normal use. Any purchase of equipment or products under an SBIR/STTR contract using NASA funds should be American-made to the extent possible. NASA will not fund the purchase of equipment, instrumentation, or facilities under SBIR/STTR contracts as a direct cost (Section 5.15).

Phase 2 Travel
Travel during a Phase 2 contract is an acceptable cost when it is part of accomplishing the work. Proposed travel expenses will be reviewed for reasonableness. Proposed travel shall describe the purpose, benefit and necessity for proving technical feasibility. The proposed budget shall include a detailed accounting of all proposed travel expenses. All travel and related expenses are subject to negotiation and approval by the Contracting Officer and COTR.

Phase 2 Deliverables
All proposed deliverables (other than interim and final reports) must be listed. This may include a prototype unit, software package, or a complete product or service, for NASA testing and utilization.

Profit
A profit or fee may be included in the proposed budget as noted in Section 5.10.

Cost Sharing
See Section 5.9.

Requirement for Approved Accounting System
Offerors should note that in order to receive progress payments under a Phase 2 contract, an offeror must have in place, prior to award, an accounting system that in the Defense Contract Audit Agency's (DCAA) opinion is adequate for accumulating costs. An approved accounting system can track costs to final cost objectives and segregate costs between direct and indirect. If you currently do not have an adequate accounting system, it is recommended that you take action to implement such a system. The lack of an adequate accounting system may preclude you from receiving a Phase 2 contract or may cause extended delays in award. For more information about cost proposals and accounting standards, please see the DCAA publication entitled "Information for Contractors" which is available at http://www.dcaa.mil/dcaap7641.90.pdf.

3.3.4 Technical Proposal
This part of the submission shall not contain any budget data and must consist of all eleven parts listed below in the given order. All parts must be numbered and titled; parts that are not applicable must be noted as "Not Applicable."

Part 1: Table of Contents
The technical content shall begin with a brief table of contents indicating the page numbers of each of the parts of the proposal. The required table of contents is provided below:

Phase 2 Table of Contents
Part 1: Table of Contents.......................................................................................Page #
Part 2: Identification and Significance of the Innovation and Results of the Phase 1 Proposal
Part 3: Technical Objectives
Part 4: Work Plan
Part 5: Related R/R&D
Part 6: Key Personnel
Part 7: Phase 3 Efforts, Commercialization and Business Planning
Part 8: Company Information and Facilities
Part 9: Subcontracts and Consultants
Part 10: Potential Post Applications
Part 11: Similar Proposals and Awards

Part 2: Identification and Significance of the Innovation and Results of the Phase 1 Proposal
Drawing upon Phase 1 results, succinctly describe:
  1. the proposed innovation;
  2. the relevance and significance of the proposed innovation to a need, or needs, within a subtopic described in Section 9;
  3. the proposed innovation relative to the state of the market and the art and its feasibility; and
  4. the capability of the offeror to conduct the proposed R/R&D and to fulfill the commercialization of the proposed innovation.

Part 3: Technical Objectives
Define the specific objectives of the Phase 2 research and technical approach.

Part 4: Work Plan
Provide a detailed work plan defining specific tasks, performance schedules, project milestones, and deliverables.

Part 5: Related R/R&D
Describe R/R&D related to the proposed work and affirm that the stated objectives have not already been achieved and that the same development is not presently being pursued elsewhere under contract to the Federal Government.

Part 6: Key Personnel
Identify the key technical personnel for the project, confirm their availability for Phase 2, and discuss their qualifications in terms of education, work experience, and accomplishments relevant to the project.

Part 7: Phase 3 Efforts, Commercialization and Business Planning
Present a plan for commercialization (Phase 3) of the proposed innovation. Commercialization encompasses the transition of technology into products and services for NASA mission programs, other Government agencies and non-Government markets. The commercialization plan, at a minimum, shall address the following areas:

(1) Market Feasibility and Competition: Describe (a) the target market(s) of the innovation and the associated product or service, (b) the competitive advantage(s) of the product or service; (c) key potential customers, including NASA mission programs and prime contractors; (d) projected market size (NASA, other Government and/or non Government); (e) the projected time to market and estimated market share within five years from market-entry; and (f) anticipated competition from alternative technologies, products and services and/or competing domestic or foreign entities.

(2) Commercialization Strategy and Relevance to the Offeror: Present the commercialization strategy for the innovation and associated product or service and its relationship to the SBC's business plans for the next five years. Infusion into NASA missions and projects is an option for commercialization strategy.

(3) Key Management, Technical Personnel and Organizational Structure: Describe (a) the skills and experiences of key management and technical personnel in technology commercialization, (b) current organizational structure, and (c) plans and timelines for obtaining expertise and personnel necessary for commercialization.

(4) Production and Operations: Describe product development to date as well as milestones and plans for reaching production level, including plans for obtaining necessary physical resources.

(5) Financial Planning: Delineate private financial resources committed to development and transition of the innovation into market-ready product or service. Describe the projected financial requirements and the expected or committed capital and funding sources necessary to support the planned commercialization of the innovation.Provide evidence of current financial condition (e.g., standard financial statements including a current cash flow statement).

(6) Intellectual Property: Describe plans and current status of efforts to secure intellectual property rights (e.g., patents, copyrights, trade secrets) necessary to obtain investment, attain at least a temporal competitive advantage, and achieve planned commercialization.

Part 8: Company Information and Facilities
Describe the capability of the offeror to carry out Phase 2 and Phase 3 activities, including its organization, operations, number of employees, R/R&D capabilities, and experience in technological innovation, commercialization and other areas relevant to the work proposed.

This section shall also provide adequate information to allow evaluators to assess the ability of the SBC to carry out the proposed Phase 2 activities. The offeror should describe the relevant facilities and equipment currently available, and those to be purchased, to support the proposed activities. NASA will not fund the acquisition of equipment, instrumentation, or facilities under Phase 2 contracts as a direct cost. Special tooling may be allowed. (Section 5.15)

Note: Government-wide SBIR and STTR policies prohibit the use of any SBIR/STTR award funds for the use of Government equipment and facilities. This does not preclude an SBC from utilizing a Government facility or Government equipment, but any charges for such use cannot be paid for with SBIR/STTR funds (SBA SBIR Policy Directive, Section 9 (f)(3)).NASA will not and cannot fund the use of the Federal facility or personnel for the SBIR project with non-SBIR money. In rare and unique circumstances, SBA may issue a case-by-case waiver to this provision after review of an agency's written justification. NASA cannot guarantee that a waiver from this policy can be obtained from SBA. The following information is required for consideration of a waiver:

  1. An explanation of why the SBIR research project requires the use of the Federal facility or personnel, including data that verifies the absence of non-federal facilities or personnel capable of supporting the research effort.
  2. The concurrence of the SBC's chief business official to use the Federal facility or personnel.

If a proposed project or product demonstration requires the use of unique Government facilities or equipment that will be funded with SBIR dollars, the offeror must provide a) a letter from the SBC Official explaining why the SBIR/STTR research project requires the use of the Federal facility or personnel, including data that verifies the absence of non-Federal facilities or personnel capable of supporting the research effort, and b) a statement, signed by the appropriate Government official at the facility, verifying that it will be available for the required effort. The proposal should also include relevant information on the funding source(s) private, internal, or other Government. Failure to provide this explanation and the site manager's written authorization of use may invalidate any proposal selection. If the offeror proposes the use of SBIR/STTR funds for Government equipment or facilities, this explanation will be provided to SBA during the Agency waiver process.

Additional information on the use of NASA facilities, facility programs, and equipment is available at http://sbir.nasa.gov/SBIR/facilities.html.

Part 9: Subcontracts and Consultants�
Subject to the restrictions set forth below, the SBC may establish business arrangements with other entities or individuals to participate in performance of the proposed R/R&D effort. The offeror must describe all subcontracting or other business arrangements, and identify the relevant organizations and/or individuals with whom arrangements are planned.The expertise to be provided by the entities must be described in detail, as well as the functions, services, number of hours and labor rates.� Offerors are responsible for ensuring that all organizations and individuals proposed to be utilized are actually available for the time periods required.� Documentation of subcontract costs must be made available during negotiations to substantiate the budget estimate.�

Subcontractors' and consultants' work must be performed in the United States. The following restrictions apply to the use of subcontracts/consultants:


SBIR Phase 2 Proposal
STTR Phase 2 Proposal
A minimum of one-half of the work (as determined by the total cost of the proposed effort, before any cost sharing or fee/profit proposed by the firm, which corresponds to Item 6 in the Budget Summary, Total Costs) must be performed by the proposing SBC.

A minimum of 40 percent of the work (as determined by the total cost of the proposed effort, before any cost sharing or fee/profit proposed by the firm, which corresponds to Item 6 in the Budget Summary, Total Costs) must be performed by the proposing SBC and 30 percent by the RI.


Part 10: Potential Post Applications (Commercialization)
Building upon Section 3.3.4, Part 7, further specify the potential NASA and commercial applications of the innovation and the associated potential customers, such as NASA mission programs and projects, within target markets. Potential NASA applications include the projected utilization of proposed contract deliverables (e.g., prototypes, test units, software) and resulting products and services by NASA organizations and contractors.

Part 11: Similar Proposals and Awards
If applicable, provide updated material (Reference Phase 1 Proposal Requirements, Part 11).

3.3.5 Capital Commitments Addendum Supporting Phase 2 and Phase 3
Describe and document capital commitments from non-SBIR/STTR sources or from internal SBC funds for pursuit of Phase 2 and Phase 3. Offerors for Phase 2 contracts are strongly urged to obtain non-SBIR/STTR funding support commitments for follow-on Phase 3 activities and additional support of Phase 2 from parties other than the proposing firm. Funding support commitments must show that a specific, substantial amount will be made available to the firm to pursue the stated Phase 2 and/or Phase 3 objectives. They must indicate the source, date, and conditions or contingencies under which the funds will be made available. Alternatively, self-commitments of the same type and magnitude that are required from outside sources can be considered. If Phase 3 will be funded internally, offerors should describe their financial position.

Evidence of funding support commitments from outside parties must be provided in writing and should accompany the Phase 2 proposal. Letters of commitment should specify available funding commitments, other resources to be provided, and any contingent conditions. Expressions of technical interest by such parties in the Phase 2 research or of potential future financial support are insufficient and will not be accepted as support commitments by NASA. Letters of commitment should be added as an addendum to the Phase 2 proposal. This addendum will not be counted against the 50-page limitation.

3.3.6 Phase 3 Awards resulting from NASA SBIR/STTR Awards
If the SBC has received any Phase 3 awards resulting from work on any NASA SBIR or STTR awards, provide the name of awarding agency, date of award, funding agreement number, amount, topic or subtopic title, follow-on agreement amount, source, and date of commitment and current commercialization status for each award. This listing is not included in the 50-page limit and content should be limited to information requested above. Offerors are encouraged to use spreadsheet format.

3.3.7 Briefing Chart
A one-page briefing chart is required to assist in the ranking and advocacy of proposals prior to selection. Submission of the briefing chart is not counted against the 50-page limit, and must not contain any proprietary data. An example chart is provided in Section 8, Appendix A.


3.4 SBA Data Collection Requirement

Each SBC applying for a Phase 2 award is required to update the appropriate information in the Tech-Net database for any of its prior Phase 2 awards. In addition, upon completion of Phase 2, the SBC is required to update the appropriate information in the Tech-Net database and is requested to update the information annually thereafter for a minimum period of five years. For complete information on what to enter, go to http://technet.sba.gov.

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