Ohio Third Frontier Fuel Cell Program FY 2008 Request by mikebreen

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									Ohio Third Frontier Fuel Cell Program

   FY 2008 Request for Proposals
        Bidder’s Conference

        November 29, 2007
       9:00 a.m. – 11:00 a.m.
          TechColumbus
                           Agenda
• Welcome and Introductions

• Third Frontier Project

• Commercialization Framework

• Third Frontier Fuel Cell Program (TFFCP)

• TFFCP Q & A

• Closing Remarks
                    Third Frontier Project

Vision
   – In targeted areas of technology, Ohio has established regional and
     statewide clusters of excellence that sustain our global competitive
     advantage in company and product formation, job creation and
     economic growth.
                          Third Frontier Project
Strategies

   – Guided by a focus on Ohio research and industrial strengths:

       • Increase the quantity of high quality research that has commercial
         relevance for Ohio.

       • Expand the availability of investment capital needed to form and
         grow new companies.

       • Grow and nurture an increasingly experienced pool of
         entrepreneurial management talent supported by organized
         systems of services and networking.

       • Expand the availability of capital and assistance to support product
         innovation in established companies.

       • Attract new-to-Ohio company activity that grows and strengthens
         the function of specific clusters of excellence.
Focus Areas

Based on a 2002 study by Battelle, the Third Frontier Project adopted
five technology focus areas:

                         Advanced Materials
                             Biosciences
                       Information Technology
                 Instruments, Controls, Electronics
                        Power and Propulsion
Third Frontier Commercialization Framework


                  TFFCP
                         What is the Framework?
•   The Framework is a guide for the analysis of technology commercialization
    projects from idea generation to commercial success

•   The Framework helps answer the following questions:

     –   In what phase of commercialization is a project located?
     –   Who are the most likely resource providers to move the project to the next phase?
     –   What proof will the resource providers require as a condition to funding?
     –   What are the practical challenges associated with securing required funding?
     –   How should commercialization progress be measured?

•   The Framework includes:

     –   A commercialization process roadmap
     –   A description of technology development and commercial concept / business plan
         development activities by phase
     –   A list of drivers of success
     –   A structured approach (the “Analytical Framework”) to help improve the probability of
         success by identifying opportunities and challenges
     –   A method to develop and apply phase appropriate measurements
THE PROCESS OF TECHNOLOGY COMMERCIALIZATION

                      PHASES OF DEVELOPMENT TO CREATE PROOF



      IMAGINING                    INCUBATING              DEMONSTRATING               MARKET ENTRY                      GROWTH &
     the Commercial                 to Define              Products & Processes              to Prove                  SUSTAINABILITY
       Opportunity                 Commercial-                in Commercial                 Commercial                      to Generate
                                     izability                    Context                    Viability                        Financial
                                                                                                                              Returns

                      Mobilizing                   Mobilizing                Mobilizing                   Mobilizing
                      Resources                  Resources for              Resources for                Resources for
                          for                    Demonstrating              Market Entry                   Growth &
                      Incubating                                                                         Sustainability




                             TRANSITIONS TO MOBILIZE RESOURCES
                                                                                                     Adapted from Jolly, Vijay K., Commercializing New
                                                                                                     Technologies, Getting from Mind to Market, Harvard
                                                                                                     Business Press, 1997
Identifying Sources of Funding by Phases of
             Commercialization
THE PROCESS OF TECHNOLOGY COMMERCIALIZATION

                      PHASES OF DEVELOPMENT TO CREATE PROOF



      IMAGINING                    INCUBATING              DEMONSTRATING               MARKET ENTRY                      GROWTH &
     the Commercial                 to Define              Products & Processes              to Prove                  SUSTAINABILITY
       Opportunity                 Commercial-                in Commercial                 Commercial                      to Generate
                                     izability                    Context                    Viability                        Financial
                                                                                                                              Returns

                      Mobilizing                   Mobilizing                Mobilizing                   Mobilizing
                      Resources                  Resources for              Resources for                Resources for
                          for                    Demonstrating              Market Entry                   Growth &
                      Incubating                                                                         Sustainability




                                                   TFFCP


                             TRANSITIONS TO MOBILIZE RESOURCES
                                                                                                     Adapted from Jolly, Vijay K., Commercializing New
                                                                                                     Technologies, Getting from Mind to Market, Harvard
                                                                                                     Business Press, 1997
          Steps of the Analytical Framework
Step 1   Identify the appropriate phase of commercialization.

Step 2   Determine the amount of resources required to complete the
            current and next phase of commercialization.

Step 3   Identify the resource providers required to fund the next phase of
            commercialization activities.

Step 4   Determine the proof required by targeted resource providers.

Step 5   Identify the contextual factors that are likely to have a material
            impact on the chances of resource acquisition.

Step 6   Determine the appropriate measures of success.

Step 7   Develop a plan to produce the proof and pursue the transition.
                        The Transition

• Implementing a process to attract the resources necessary to
  engage in the next phase of commercialization

• Analogous to a sales plan
              ABC Metrics Framework

• The Metrics Framework
  – A Level - direct evidence of success demonstrated by a
    transition (resource acquisition to fund next phase of
    commercialization)
  – B Level – tangible evidence that you are on the path the A Level
    metrics
  – C Level – evidence of performance in achieving operating
    milestones
Third Frontier Fuel Cell Program

         Fiscal Year 2008
                          Program Goal

The goal of the TFFCP is to support Ohio’s Third Frontier Fuel Cell
Initiative, thereby accelerating the development and growth of the fuel
cell industry in Ohio by direct financial support to organizations seeking
to investigate the discovery of new knowledge having specific
commercial objectives with respect to products, processes, or services;
or to commercialize new products, manufacturing processes,
technologies, or adopting or modifying existing components or systems
that can reduce the cost of fuel cell systems or address technical and
commercialization barriers; or to demonstrate market readiness.
                    Program Objectives

• To help Ohio companies gain knowledge or understanding
  necessary to determine the means by which a recognized and
  specific fuel cell need may be met;

• To help Ohio companies achieve cost and performance standards
  that ultimate end-users of fuel cells define as necessary for
  successful commercial applications;

• To support development of technologies that will result in the
  opportunity for significant employment in Ohio within 5 years of
  completing the project;
                    Program Objectives

• To help Ohio companies secure additional financial resources
  needed to commercialize their fuel cell-related products, processes,
  components, and systems;

• To move fuel cell-related products, manufacturing processes,
  components, and systems to a point in the commercialization
  process where the applicant is ready to demonstrate a commercial
  prototype or actually enter the market with a product;

• To provide funding to Ohio companies for fuel cell Market Readiness
  Demonstration Projects.
                       Eligible Proposals

• Lead Applicant must be based in Ohio or have a principal place of
  business in Ohio, or be an out-of-state for-profit company that
  pledges to locate a principle place of business within Ohio as a pre-
  condition to award.

• A substantial portion of the project activity and the benefit from the
  project must occur in Ohio

• Must be a collaborative effort comprised of, in any mix, two or more
  independent firms, higher education institutions, or eligible not-for-
  profit or government research institutions.
                              Funding

• ODOD anticipates awarding up to $12 million through the FY08
  TFFCP

• Up to $7 million will be awarded from the Third Frontier Action Fund
  and up to $5 million from the Wright Capital Fund (WCF).

• There are no restrictions on the amount of capital dollars that can be
  requested.

• Not more than 20 percent of the total direct costs requested may be
  used as indirect costs.

• Un-recovered indirect costs are an allowable form of cost share.
                   Proposal Categories

• This RFP is divided into three categories:

    1) Applied Research and Development projects
        - Up to $1 million available for award
        - Grant awards will range from $250,000 to $350,000

    2) Advanced Research, Development and Commercialization
       projects
        - Up to $8 million available for award
        - Grant awards will range from $350,000 to $1 million

    3) Market Readiness Demonstration projects
        - Up to $3 million available for award
        - Grant awards will range from $500,000 to $1,000,000
                           Cost Share

• Must be one dollar for every two dollars of State Grant Funds
  requested (i.e., a ratio of 1:2).

• Must be documented on the budget forms and in a letter from each
  organization contributing cost share signed by a representative
  authorized to commit the organization to the proposed project and
  the cost share described.

• Must represent a specific new commitment to the project described
  in the proposal.

• Preference will be given to proposals that pledge cost share as
  discretionary, unrestricted, and unallocated cash. Such cash must
  appear on the financial records of the Lead Applicant.
                            Cost Share

• Resources that have been designated as cost share for some other
  award cannot be used as cost share for a TFFCP award.

• Cost share must be applied to the project during the project period.

• If an organization has a published indirect cost rate, un-recovered
  indirect costs (the difference between 20% and the published rate)
  may be used as cost share. Without a published rate, this program
  will allow duplication of the 20% rate that becomes an allowable
  expense used as cost share. Only indirect costs not fully recovered
  from the requested State grant funds are eligible to be used as cost
  share.

• TFP funding may not be used as cost share, and funds awarded
  under this RFP may not be used as cost share against other Third
  Frontier Projects.
               Proposal Evaluation Criteria
•   Consistency with Roadmaps for Success
•   Consistency with State and Regional Priorities
•   Degree of Customer Readiness
•   Degree of Sustainable Competitive Advantage (Flywheels)
•   Demonstrated Leadership Assets
•   Identified Stage of Market Development
•   Impact on Ohio
•   Importance of Key Existing and Emerging Ohio Industry Drivers
•   Level of Scientific Merit
•   Past Performance (if applicable)
•   Potential for Leverage
•   Size of Opportunity
•   Vision for Success

(See Appendix D for definitions of each criteria)
                        Review Process
• Administrative Review
   – Third Frontier Commission staff
   – Receive and process proposals for administrative compliance
   – Forward to external evaluators for technical review

• Technical Review
   –   External evaluators
   –   Technical and commercial review
   –   Recommend competitive range
   –   Second level of review
   –   Rank proposals
   –   ODOD reviews ranking recommendations
   –   Submit recommendations and summary evaluation statements to Third
       Frontier Commission
                       Timeline


•   November 16, 2007 – RFP Released
•   December 7, 2007 by 2:00 PM – LOI due
•   January 4, 2008 by 2:00 PM – Proposals due
•   January – March, 2008 – Review Process
•   March 25, 2007 – Award Announcements
           Policy & Administrative Questions

• All questions must be submitted via email

• Email: 2008_TFFCP_RFP@odod.state.oh.us

• Frequently asked questions will be posted on the Third Frontier web
  site: www.thirdfrontier.com
                      Important Updates

• The sentence in section 5.3.9 “Budget”, that states “No more than
  20 percent of the total direct State Grant Funds requested may be
  used for capital equipment, construction, or renovation costs”, has
  been stricken from the RFP. There is no restriction on funds being
  used for these purposes.

• We have eliminated the 20% cap on indirect funds on Budget Forms
  2 and 3. Individual organization’s line items may exceed
  20%. However, the 20% limit on indirect funds still applies at a total
  project level (Budget Form 1).

• An identical proposal may not be submitted in response to any other
  Third Frontier Program RFP.
Questions?

								
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