NASA Far West RTTC and the NASA SBIR/STTR NASA Far West RTTC and the NASA SBIR/STTR ProgramProgram

Introduction and Keys to SuccessIntroduction and Keys to Success

U S C E N G I N E E R I N G T E C H N O L O G Y T R A N S F E R C E N T E R

A N A S A R E G I O N A L T E C H N O L O G Y T R A N S F E R C E N T E R

h t t p : / / w w w . u s c . e d u / g o / t t c

Presented atGovComSan Diego, CA

November 18, 2003

byKen Dozier

Executive Director, NASA Far West RTTC

NASA Commercial Technology NetworkNASA Commercial Technology Network

Mid-ContinentRTTC

SoutheastRTTC

MidwestRTTC

NortheastRTTC

Mid-AtlanticRTTC

Far WestRTTC

NASA Mechanisms of NASA Mechanisms of CommercializationCommercialization

• Licensing of NASA-owned intellectual Licensing of NASA-owned intellectual propertyproperty

• Collaborative arrangements and Collaborative arrangements and partnershipspartnerships

• Space Act AgreementsSpace Act Agreements

• Reimbursable or non-reimbursableReimbursable or non-reimbursable

• Joint Sponsored Research Joint Sponsored Research AgreementsAgreements

• Cooperative agreements and grantsCooperative agreements and grants

• MOU/MOAMOU/MOA

• SBIR/STTRSBIR/STTR

• 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

SBIR in a NutshellSBIR in a Nutshell

Objectives of the SBIR ProgramObjectives 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 SBIRWho 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

*FY01 Phase I DOD Award Winners

Firm Size Distribution*

Total of all agencies is Total of all agencies is approximately $1.6 approximately $1.6 Billion!Billion!

DoDDoD $879 Million $879 Million (FY03)--(FY03)--SBIR/STTRSBIR/STTR

DHHSDHHS $566.6 Million $566.6 Million (FY03)--(FY03)--SBIR/STTRSBIR/STTR

NASANASA $115 Million $115 Million (FY03)--(FY03)--SBIR/STTRSBIR/STTR

DoEDoE $99 Million (FY03)--$99 Million (FY03)--SBIR/STTRSBIR/STTR

NSFNSF $90 Million (FY03)--$90 Million (FY03)--SBIR/STTRSBIR/STTR

USDAUSDA $15.7 Million (FY02)$15.7 Million (FY02)

DoEDDoED $8.7 Million (FY02)$8.7 Million (FY02)

DoCDoC $7.7 Million (FY03) $7.7 Million (FY03)

EPAEPA $6 Million (FY02)$6 Million (FY02)

DoTDoT $5.3 Million (FY03) $5.3 Million (FY03)

Agency SBIR Funding LevelsAgency SBIR Funding Levels

Phase I: Feasibility Study Phase I: Feasibility Study

• Up to $70,000Up to $70,000

• Six month effort funded by contractSix month effort funded by contract

Phase II: Prototype Development Phase II: Prototype Development

• Up to $600,000Up to $600,000

• Up to two year effort funded by contractUp to two year effort funded by contract

Phase III: Commercialization Phase III: Commercialization

• No SBIR funds available for Phase IIINo SBIR funds available for Phase III

• Small business procures other development Small business procures other development funds, product orders, intellectual property funds, product orders, intellectual property licenses, commercial partners, etc.licenses, commercial partners, etc.

The Three Phases of NASA SBIRThe Three Phases of NASA SBIR

STTR is the Small Business Technology Transfer STTR is the Small Business Technology Transfer ProgramProgram

Three-phase approach, just like SBIRThree-phase approach, just like SBIR

Five federal agencies participateFive federal agencies participate

Set-aside is only 0.15% of the agencies’ Set-aside is only 0.15% of the agencies’ extramural R&D budgets (compared to 2.5% for extramural R&D budgets (compared to 2.5% for SBIR)SBIR)

A small business must form a partnership with a A small business must form a partnership with a nonprofit research institution to be funded under nonprofit research institution to be funded under STTRSTTR

The small business is the prime contractorThe 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

STTR: Companion Program to SBIRSTTR: Companion Program to SBIR

• A source of funds to conduct research and A source of funds to conduct research and development that a small firm might not development that a small firm might not otherwise be able to affordotherwise be able to afford

• No debt, loss of equity or control of the No debt, loss of equity or control of the company incurred by the small businesscompany incurred by the small business

• Tacit endorsement by the federal government Tacit endorsement by the federal government of the small firm’s research qualifications (looks of the small firm’s research qualifications (looks good on the resume)good on the resume)

• A chance to become a supplier of specialized A chance to become a supplier of specialized products or services to the private sector or back products or services to the private sector or back to a government agency (technology infusion)to a government agency (technology infusion)

• An opportunity to grow the small business An opportunity to grow the small business through strategic alliances with larger corporate through strategic alliances with larger corporate partnerspartners

Note: SBIR works best for those companies that Note: SBIR works best for those companies that integrate SBIR funds into a strategic plan for integrate SBIR funds into a strategic plan for growth through new product or service growth through new product or service developmentdevelopment

What’s in it for the Small Business?What’s in it for the Small Business?

Before You Dive In to NASA SBIRBefore 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 Statistics2002 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%)

• Read and follow the solicitation Read and follow the solicitation

carefully carefully

• Know your customerKnow your customer

• Know the evaluation criteriaKnow the evaluation criteria

• Get help from other resourcesGet help from other resources

Prepare High Quality SBIR ProposalsPrepare High Quality SBIR Proposals

Read and Follow the Solicitation Read and Follow the Solicitation

CarefullyCarefully

• Get solicitation from Get solicitation from http://sbir.nasa.govhttp://sbir.nasa.gov

• The solicitation provides all necessary The solicitation provides all necessary forms and instructions for preparation, forms and instructions for preparation, assembly and submission of a proposalassembly and submission of a proposal

• Resist the urge to organize your proposal Resist the urge to organize your proposal in a free-form, stream-of-consciousness in a free-form, stream-of-consciousness fashionfashion

• Use the section numbering scheme Use the section numbering scheme prescribed in the solicitationprescribed in the solicitation

• The solicitation tells precisely what to The solicitation tells precisely what to cover in each section; so cover it. If a section cover in each section; so cover it. If a section is not applicable, say so.is not applicable, say so.

• Submit on time and meet administrative Submit on time and meet administrative screening requirementsscreening requirements

Prepare High Quality SBIR ProposalsPrepare High Quality SBIR Proposals

Know Your CustomerKnow Your Customer• Use the solicitation to identify topics to Use the solicitation to identify topics to which you believe you can be responsivewhich you believe you can be responsive

• Use RTTC, NASA SBIR Manager to identify Use RTTC, NASA SBIR Manager to identify NASA authors of relevant SBIR topics (NASA NASA authors of relevant SBIR topics (NASA calls them calls them Sub-Topic ManagersSub-Topic Managers))

• Establish a relationship with the Establish a relationship with the Sub-Topic Sub-Topic Manager. Manager. He or she may be your customer if He or she may be your customer if you win an award.you win an award.

• Sub-Topic Managers and SBIR Managers can Sub-Topic Managers and SBIR Managers can help you understand NASA’s real, sometimes help you understand NASA’s real, sometimes unstated, needs and priorities.unstated, needs and priorities.

• Tailor your SBIR proposal accordinglyTailor your SBIR proposal accordingly

• Timing is important: Timing is important: Sub-Topic ManagersSub-Topic Managers are are not available to advise you during the ten-not available to advise you during the ten-week period each year when NASA is accepting week period each year when NASA is accepting proposals. Plan ahead.proposals. Plan ahead.

Prepare High Quality SBIR ProposalsPrepare High Quality SBIR Proposals

Know The Evaluation CriteriaKnow The Evaluation Criteria

•The solicitation tells you what the The solicitation tells you what the evaluation criteria areevaluation criteria are

• For phase I proposals:For phase I proposals:

• Scientific/technical merit and feasibilityScientific/technical merit and feasibility

• Experience, qualifications and facilitiesExperience, qualifications and facilities

• Effectiveness of proposed work planEffectiveness of proposed work plan

• Commercial merit and feasibilityCommercial merit and feasibility

• Increase the odds of winning by making Increase the odds of winning by making your proposal shine in each of these areasyour proposal shine in each of these areas

• Look outside the company to acquire Look outside the company to acquire necessary resources to address deficienciesnecessary resources to address deficiencies

Prepare High Quality SBIR ProposalsPrepare High Quality SBIR Proposals

Know and Use SBIR Program ResourcesKnow and Use SBIR Program Resources

• NASA Far West RTTCNASA Far West RTTC

• NASA SBIR ManagersNASA SBIR ManagersRosa Tonarelli, NASA AmesRosa Tonarelli, NASA Ames

• NASA SBIR website (NASA SBIR website (http://sbir.nasa.govhttp://sbir.nasa.gov))NASA SBIR SolicitationNASA SBIR Solicitation

Participation guideParticipation guidePrevious Award WinnersPrevious Award WinnersSuccessesSuccessesKey NASA ContactsKey NASA Contacts

• NASA SBIR Support contractorNASA SBIR Support contractorREI SystemsREI Systems

Prepare High Quality SBIR ProposalsPrepare High Quality SBIR Proposals

NASA Far West Regional Technology NASA Far West Regional Technology Transfer CenterTransfer Center

• http://www.usc.edu/go/TTC/NASA/SBIR/index.html

• 213-743-2353213-743-2353

• 800-642-2872800-642-2872

• nasa@usc.edu nasa@usc.edu

For Further Information . . .For Further Information . . .

NASA SBIR Websitehttp://sbir.nasa.gov

For Further Information . . .For Further Information . . .