NASA Far West RTTC and the NASA SBIR/STTR Program Introduction and Keys to Success
Presented atGovCom San Diego, CA November 18, 2003 by Ken Dozier Executive Director, NASA Far West RTTC
U S C A E N G I N E E R I N G R E G I O N A L T E C H N O L O G Y T E C H N O L O G Y T R A N S F E R T R A N S F E R C E N T E R C E N T E R
N A S A
http://www.usc.edu/go/ttc
NASA Commercial Technology Network
Northeast RTTC
Midwest RTTC
Far West RTTC Southeast RTTC
MidAtlantic RTTC Mid-Continent RTTC
NASA Mechanisms of Commercialization
• Licensing of NASA-owned intellectual property • Collaborative arrangements and partnerships • Space Act Agreements • Reimbursable or non-reimbursable • Joint Sponsored Research Agreements • Cooperative agreements and grants • MOU/MOA
• SBIR/STTR
SBIR in a Nutshell
• SBIR is a federal set-aside funding program for small businesses
• SBIR funds innovative, high-risk, early-stage technology R&D projects that have potential for commercial success. • Ten federal agencies solicit proposals for innovative research in areas of interest to the agencies.
• Eligible small businesses compete for SBIR awards
• Approximately $1.6 billion in funding is available each year
Objectives of the SBIR Program
• Stimulate technological innovation • Use small business to meet federal R&D needs • Increase private sector commercialization derived from federal R&D
• Encourage participation by disadvantaged and minority persons in technological innovation
Who Participates in SBIR
• Firms are typically very small and new to
the program
• •
About 1/3 are first-time Phase I awardees. Small high-tech companies from all 50 states
Firm Size Distribution*
*FY01 Phase I DOD Award Winners
Agency SBIR Funding Levels
Total of all agencies is approximately $1.6 Billion!
DoD DHHS NASA DoE NSF USDA $879 Million (FY03)--SBIR/STTR $566.6 Million (FY03)--SBIR/STTR $115 Million (FY03)--SBIR/STTR $99 Million (FY03)--SBIR/STTR $90 Million (FY03)--SBIR/STTR $15.7 Million (FY02)
DoED
DoC EPA DoT
$8.7 Million (FY02)
$7.7 Million (FY03) $6 Million (FY02) $5.3 Million (FY03)
The Three Phases of NASA SBIR
Phase I: Feasibility Study
• Up to $70,000 • Six month effort funded by contract
Phase II: Prototype Development
• Up to $600,000 • Up to two year effort funded by contract
Phase III: Commercialization
• No SBIR funds available for Phase III
• Small business procures other development funds, product orders, intellectual property licenses, commercial partners, etc.
STTR: Companion Program to SBIR
STTR is the Small Business Technology Transfer Program Three-phase approach, just like SBIR Five federal agencies participate Set-aside is only 0.15% of the agencies’ extramural R&D budgets (compared to 2.5% for SBIR) A small business must form a partnership with a nonprofit research institution to be funded under STTR The small business is the prime contractor Goal is to facilitate commercialization of technology developed by a nonprofit research institution through the entrepreneurship of a small business
What’s in it for the Small Business?
• A source of funds to conduct research and development that a small firm might not otherwise be able to afford • No debt, loss of equity or control of the company incurred by the small business • Tacit endorsement by the federal government of the small firm’s research qualifications (looks good on the resume) • A chance to become a supplier of specialized products or services to the private sector or back to a government agency (technology infusion) • An opportunity to grow the small business through strategic alliances with larger corporate partners Note: SBIR works best for those companies that integrate SBIR funds into a strategic plan for growth through new product or service development
Before You Dive In to NASA SBIR
• NASA accepts phase I proposals only during one ten-week period each year, usually from July to September
• Success is not just about getting phase I and phase II funding • To succeed in SBIR requires following through all the way to commercialization (phase III) • A small business must have a “commercialization mindset” going into phase I to succeed ultimately in SBIR • Do not propose SBIR efforts that distract you from your company’s strategic goals
2002 NASA Phase 1 SBIR Selection Statistics
• 2,238 proposals received from 948 small businesses
• 5 administratively rejected • 31 withdrawn by small business
• 2,202 proposals evaluated (98%) • 919 recommended for funding by NASA Centers (41%) • 271 awards made (12%)
Prepare High Quality SBIR Proposals
• Read and follow the solicitation carefully • Know your customer • Know the evaluation criteria • Get help from other resources
Prepare High Quality SBIR Proposals
Read and Follow the Solicitation Carefully
• Get solicitation from http://sbir.nasa.gov • The solicitation provides all necessary forms and instructions for preparation, assembly and submission of a proposal
• Resist the urge to organize your proposal in a freeform, stream-of-consciousness fashion
• Use the section numbering scheme prescribed in the solicitation
• The solicitation tells precisely what to cover in each section; so cover it. If a section is not applicable, say so.
• Submit on time and meet administrative screening requirements
Prepare High Quality SBIR Proposals
Know Your Customer
• Use the solicitation to identify topics to which you believe you can be responsive • Use RTTC, NASA SBIR Manager to identify NASA authors of relevant SBIR topics (NASA calls them SubTopic Managers) • Establish a relationship with the Sub-Topic Manager. He or she may be your customer if you win an award. • Sub-Topic Managers and SBIR Managers can help you understand NASA’s real, sometimes unstated, needs and priorities. • Tailor your SBIR proposal accordingly • Timing is important: Sub-Topic Managers are not available to advise you during the ten-week period each year when NASA is accepting proposals. Plan ahead.
Prepare High Quality SBIR Proposals
Know The Evaluation Criteria
•The solicitation tells you what the evaluation criteria are
• For phase I proposals:
• Scientific/technical merit and feasibility • Experience, qualifications and facilities
• Effectiveness of proposed work plan
• Commercial merit and feasibility • Increase the odds of winning by making your proposal shine in each of these areas
• Look outside the company to acquire necessary resources to address deficiencies
Prepare High Quality SBIR Proposals
Know and Use SBIR Program Resources
• NASA Far West RTTC • NASA SBIR Managers
Rosa Tonarelli, NASA Ames
• NASA SBIR website (http://sbir.nasa.gov)
NASA SBIR Solicitation Participation guide Previous Award Winners Successes Key NASA Contacts
• NASA SBIR Support contractor
REI Systems
For Further Information . . .
NASA Far West Regional Technology Transfer Center
• http://www.usc.edu/go/TTC/NASA/SBIR/index.html • 213-743-2353
• 800-642-2872
• nasa@usc.edu
For Further Information . . . NASA SBIR Website http://sbir.nasa.gov