2013 08 09 funding your innovation with the sbir-sttr programs - final presentation2

Funding Your Innovation with the SBIR/STTR Program

August 9, 20139:00am – 3:30pm

WHAT YOU’LL TAKE AWAY

• Introductions to the SBIR/STTR Program• Up-to-date SBIR/STTR Program Information• How the SBIR/STTR funds may propel your

business forward• Local resources for any start-up• If the SBIR/STTR Program is the right fit for your

company• What it takes to win!

SPEAKERS

• Sandy DiCosola, Summit Contract Management, LLC• Ralph Hershberger, Madera Associates, LLC• Doug Hockstadt, Tech Launch Arizona, The University

of Arizona• Ellen Kirton, Small Business Development Center• Joann MacMaster, Arizona Center for Innovation• John Waszczak, PhD, John Waszczak & Associates, LLC• Leon Radziemski, PhD• Robin Polt, PhD

TODAY’S AGENDA

9:00Registration 9:30Introduction to the SBIR/STTR Program 10:15Highlighting benefits for small businesses 11:00Introduction to Community Resources11:45Lunch 12:45Tech Launch Arizona 1:15The Right Fit 2:00Success Stories 3:00Concluding remarks, final questions 3:15 Networking opportunity

INTRODUCTION TO THE SBIR/STTR PROGRAM

S ANDY D ICOSOL A , SUMMIT CONTRACT MANAGEMENT

Copyright 2013, Summit Contract Management LLC,Tucson AZ

SBIR/STTR PROGRAMS INTRODUCTION

Presented by: Sandy DiCosola

© 2007, Summit Contract Management All Rights Reserved

The Government Contracting Process


Sources

Main Source of information in this presentation from the Small Business Administration website www.sbir.gov

Also refer to SBIR Gateway at: http://www.zyn.com/sbir/

http://www.sbir.gov/


Key Points

PROGRAMS ARE FOR RESEARCH & DEVELOPMENT (R&D)

COMMERCIALIZATION IS A KEY REQUIREMENT

MUST BE INNOVATIVE

Ability to perform R&D and ability to COMMERCIALIZE


From National Science Foundation

NSF SBIR/STTR programs incentivize and enable startups and small business to undertake R&D with high technical risk and high commercial reward.


Program Descriptions-SBIR

Small Business Innovation Research (SBIR) Program

A set-aside program for small business to engage in Federal R&D – with potential for commercialization

2.6% of the extramural research budget for all agencies with a budget greater than $100M per year


Program Descriptions-STTR

Small Business Technology Transfer (STTR)

A set-aside program to facilitate cooperative R&D between small business concerns and U.S. research institutions – with potential for commercialization.

0.35% of the extramural research budget for all agencies with a budget greater than $1B per year


Nonprofit Research Institution Eligibility Criteria

Located in the US

Meet one of three definitions:

Nonprofit college or university

Domestic nonprofit research organization

Federally funded R&D center (FFRDC)


STTR differs from SBIR in three important aspects:

Company and its partnering institution are required to establish an intellectual property agreement

STTR requires that the Company perform at least 40% of the R&D and the single partnering research institution to perform at least 30% of the R&D

Unlike the SBIR program, STTR does not require the Principal Investigator to be primarily employed by the Company


STTR Program

Five Agencies Who Participate are:

Department of Defense

Department of Energy

Department of Health and Human Services

National Aeronautics and Space Administration

National Science Foundation


Small Business Innovative Research (SBIR) Program HistoryStarted as a pilot program at the NSF in the late-1970’sThree legislative acts have been passed that govern its existence and executionThe Small Business Innovation Development Act of 1982The Small Business Research and Development Enhancement Act of 1992The Small Business Innovation Research Program Reauthorization Act of 2000The program was reauthorized for 6 more years on December 31st, 2011


SBIR Mission/Goals

The mission of the SBIR program is to support scientific excellence and technological innovation through the investment of Federal research funds in critical American priorities to build a strong national economy.


Goals Are Four-fold:

Meet Federal research and development needs

Increase private-sector commercialization of innovations derived from Federal research and development funding

Stimulate technological innovation

Foster and encourage participation in innovation and entrepreneurship by socially and economically disadvantaged persons


Agency Funding(Source: www.aaas.org)


Three Phases

Phase I:

Feasibility Study

$150k Max and 6 Months*

Phase II

Full Research and Development Effort

$1M Max and 24 Months*

Phase III

Commercialization Stage

Seek External Funding [No Use of SBIR funds]*Awards may not exceed guideline amounts by more than 50% $225K Phase I and $1.5M Phase II


SBIR/STTR Agencies Who Issue Contracts

Department of Commerce & National Institute of Standards & TechnologyDepartment of DefenseDepartment of EducationDepartment of Health & Human ServicesNASADepartment of Homeland Security


SBIR/STTR Agencies Who Issue Grants

Department of Agriculture

Department of Energy

National Science Foundation

Department of Health and Human Services (there are 11 agencies under DHHS)

Department of Transportation

Environmental Protection Agency


Differences Between Contracts and Grants

Contracts:Agency establishes plans, protocols, requirements

Very specific topics

Agency defines the problem and the solution parameters


Differences Between Contracts and Grants

Grants

Principal Investigator initiates approach

Broader topics

More flexibility

Company identifies the problem and the solution


Current Eligibility Requirements

Organized for-profit business based in the U.S.

500 employees or less, including affiliates

Principal Investigator’s primary employment must be with the small business

At least 51% U.S.- owned by individuals and independently operated

OR

At least 51% owned and controlled by another (one) for-profit business concern that is at least 51% owned and controlled by one or more individuals


Eligibility Changes With Reauthorization

Proposed rule was open for public comment through July 16, 2012.

Final Rule implementing SBIR/STTR Reauthorization is effective January 28, 2013.

Company Registry:

All applicants register with Company Registry Database at www.sbir.gov at time of application, size rule is 500

employees.


Eligibility Statement Checklist

My firm is a:for-profit business,

with a place of business located in the United States,

and which operates primarily within the United States or which makes a significant contribution to the U.S economy through payment of taxes or use of American products, materials or labor.


continued

My firm's ownership and control structure is:

more than 50% owned and controlled by individuals who are citizens of or permanent resident aliens in the US, or

more than 50% owned and controlled by one or more other small businesses each of which is more than 50% owned and controlled by individuals who are citizens of or permanent resident aliens in the US


or

a combination of the above two choices; or

more than 50% owned by more than one Venture capital operating company (VCOC), hedge fund, or private equity firm (with no one such firm owning more than 50%), and I am applying to an SBIR agency that is using Section 5107 authority to use a percentage of its SBIR funds for awards to such firms.



VC-owned firms*

Firms that are majority-owned by multiple venture capital operating companies (VCOCs), hedge funds and/or private equity firms may receive SBIR and STTR awards.*

SBA published Final Rule for the SBIR Size Rules on 12/27/2012: 500 employees

*Only NIH implementing this change



Cross Program Awards

Agencies have the option to allow STTR Phase I awardee to receive SBIR Phase II award and SBIR Phase I awardee to receive STTR Phase II award.

Implementation is at agency discretion.

Cross-agency Awards



Phase I awardee may receive a Phase II award from an agency other than the one that awarded the related Phase I.

Direct to Phase II pilot

FY 2012-2017 NIH, DoD, and Department of Education may issue Phase II SBIR awards to firms to pursue Phase I solicitation topics without requiring a Phase I.

Implementation is at agency discretion.



Open Phase II competition

Starting 10/1/2012, agencies must allow all Phase I awardees to apply for a follow-on Phase II award. Issuing Phase II awards via invitation only will not be permitted.



Agencies will need to include information on the Phase II application process in all Phase I solicitations released on or after 10/1/2012 and notify their Phase I awardees of this change in practice.

Second Phase II

Agencies may award a second, sequential, Phase II to continue a Phase II project


Proposal Evaluation Criteria

Source: DoD 2013.3 SBIR Solicitation

a. The soundness, technical merit, and innovation of the proposed approach and its incremental progress toward topic or subtopic solution.



b. The qualifications of the proposed principal/key investigators, supporting staff, and consultants. Qualifications include not only the ability to perform the research and development but also the ability to commercialize the results.



c. The potential for commercial (Government or private sector) application and the benefits expected to accrue from this commercialization.


Solicitations

At least an annual release, many issue more

NIH due dates:

April 5th, August 5th, December 5th


http://www.zyn.com/sbir/scomp.htm

Open/Released Solicitations

Program Release Dates Accepts Proposals Closing Dates

DOT SBIR 29 Jul 2013 29 Jul 2013 23 Sep 2013

DoD SBIR 2013.3 26 Jul 2013 26 Aug 2013 25 Sep 2013

DoD STTR 2013.B 26 Jul 2013 26 Aug 2013 25 Sep 2013

DOE SBIR/STTR (R1)Letter of Intent Due 9-03-13

15 Jul 2012topics only

12 Aug 2013 15 Oct 2013

EPA 27 Jun 2013 27 Jun 2013 13 Aug 2013

USDA SBIR 19 Jun 2013 19 Jun 2013 26 Sep 2013

HHS/NIH SBIR/STTR (Grants)Non-AIDS Related TopicsPHS 2013-2 Omnibus

25 Jan 2013 5 Mar 20135 Apr 20135 Aug 20135 Dec 2013

HHS/NIH SBIR/STTR (Grants)AIDS Related Topics OnlyPHS 2013-2 Omnibus

25 Jan 2013 5 Mar 20137 May 20137 Sep 20137 Jan 2014

NIH Special SBIR / STTR Funding OpportunitiesThese are separate from the regular NIH omnibus solicitation

http://www.volpe.dot.gov/sbir/

http://www.acq.osd.mil/osbp/sbir/sb/schedule.shtml

http://www.acq.osd.mil/osbp/sbir/sb/schedule.shtml

http://www.science.doe.gov/sbir/

http://www.epa.gov/ncer/rfa/2014/2014_sbir_phase1.html

http://nifa.usda.gov/funding/rfas/sbir_rfa.html

http://grants.nih.gov/grants/funding/sbir.htm




http://grants.nih.gov/grants/funding/sbir_announcements.htm


DOE due dates

Future Solicitations** dates are subject to change

gray cells denote estimated dates

Program Release Dates Accepts Proposals Closing Dates

DOE SBIR/STTR (R2)Letter of Intent Due 12-16-13

28 Oct 2013topics only

25 Nov 2013 4 Feb 201

http://www.science.doe.gov/sbir/


DoD Solicitation Schedule

Solicitation Pre-Release Open Close

DoD SBIR 2013.1

16 Nov 2012

17 Dec 2012

16 Jan 2013

DoD STTR 2013.A

25 Jan 2013

25 Feb 2013

27 Mar 2013

DoD SBIR 2013.2

24 Apr 2013

24 May 2013

26 Jun 2013

DoD SBIR 2013.3

26 Jul 2013

26 Aug 2013

25 Sep 2013

DoD STTR 2013.B

26 Jul 2013

26 Aug 2013

25 Sep 2013

http://www.acq.osd.mil/osbp/sbir/solicitations/sbir20131/index.shtml


http://www.acq.osd.mil/osbp/sbir/solicitations/sttr2013A/index.shtml

http://www.acq.osd.mil/osbp/sbir/solicitations/sttr2013A/index.shtml




DoD Proposal Contents

A complete proposal consists of four volumes:

Volume 1: Proposal Cover Sheet

Volume 2: Technical Volume

Volume 3: Cost Volume

Volume 4: Company Commercialization Report


Advice to Awardees

Don’t judge an agency’s interest by its “name”

Understand agency’s mission & needs

Get to know your agency Program Manager

Contact the Program Manager as permitted before you start writing the proposal

Read solicitation and follow instructions


Advice from Awardees

Don’t depend solely on SBIR funding

Don’t go it alone – Use support systems

Have an outcome

Win or Lose – get and review evaluations

Be PERSISTENT


Sandy DiCosola, PresidentPhone: (520) 797-3408

Email: [email protected]: www.summitcontractmanagement.com

HIGHLIGHTING BENEFITS OF THE SBIR/STTR PROGRAM FOR SMALL BUSINESSES

JOHN WASZCZAK , PHD , WASZCZAK & ASSOC IATES , L LC

Benefits of the SBIR/ STTR Programto High Tech Small Businesses

Funding Your Innovation withGovernment Money

AzCI SBIR Workshop 9 August 2013

John P. Waszczak, PhDSmall Business Advisor

John Waszczak & Associates, LLC

520-891-6181

[email protected]

mailto:[email protected]

JW&ASmall Business

AdvisorWhy pursue SBIR/ STTRs?(Seems to be a well kept secret in Arizona!)

Would you like a $1,000,000 contract or grant to develop your innovative technology with

* no payback required * no interest payments &* strengthened IP * while keeping all your equity?

Go to www.SBIR.gov & apply now!

JW&ASmall Business

AdvisorSBIR/ STTRs

SBIRs

http://www.sbir.cgov/

Why Pursue SBIRs Session Agenda

• “Hi, I’m from the federal government & I’m here to help!”• Evolving Landscape of Govt’s SBIR Program

– Continuously improving the program to help SBs• LBs & primes want to help you win an SBIR/ STTR

– Why: They are leveraging OPM for Growth!• Matchmaking & partnering, keys to your success!

– Customers (gov’t & LBs), partners, sponsors, investors, …• SBIR Phase 0 – create your own Phase I solicitation

– help yourself by working with your customer!• Summary and Q&A

You have lots of “Help” – Now it’s up to you!

JW&ASmall Business

Advisor

What’s in it for me (WIIFM) & my small business?

• The SBIR/ STTR Program helps strengthen & expand the competitiveness of U. S. small, high tech, research & development businesses in the federal marketplace.

• SBIR targets the entrepreneurial sector because that is where most innovation & innovators thrive. By reserving a specific percentage of federal R&D funds for small business, SBIR protects the small business & enables it to compete on the same level as larger businesses. SBIR funds the critical startup & development stages & it encourages the commercialization of the technology, product, or service, which, in turn, stimulates the U.S. economy.

• Central to the program is expansion of the public/ private sector partnership to include the joint venture opportunities for small business and the nation's premier nonprofit research institutions.

• Since its enactment in 1982, as part of the Small Business Innovation Development Act, SBIR has helped thousands of small businesses to compete for federal research & development awards. Their contributions have enhanced the nation's defense, protected our environment, advanced health care, and improved our ability to manage information and manipulate data.

Basic Objectives: SBIR/ STTR Program

Ref: SBA.gov SBIR/ STTR Program website

JW&ASmall Business

Advisor

Funding sources available to SBsto develop tech & transition to production

• Self funded (a given)• Family, Friends & Fools• SBIR/ STTR & related OPM

– No payback, increased IP protection, RDT&E focus

• Other grants/ awards (ACA, BAAs)• Bank loans• Angel Investors

– Fewer, smaller $, limited interest in RDT&E (esp DOD)

• Venture Capitalists– Fewer yet, more $, SBIR success helps (reduces risk)

JW&ASmall Business

Advisor

SBIR/ STTR funding agencies“Follow the Money!

• DoD• NIH (part of H&HS)• NASA• DoE• NSF

91% $sall have STTRs

• DHS• DoEd• DoT• DoC (NOAA & NIST)

• USDA• EPA

9% $sno STTRs

JW&ASmall Business

Advisor

Contracts Grants

DOD50%

NIH28%

NASA6%

DOE7%

NSF 6%Other 3%

$2.58B

RDT&E $

$1.3B$0.717B

SBIR/ STTR Budget FY 2012Allocations are increasing! FY SBIR STTR Total2011 2.5% 0.30% 2.80%2012 2.6% 0.35% 2.95%2013 2.7% 0.35% 3.05%2014 2.8% 0.40% 3.20%2015 2.9% 0.40% 3.30%2016 3.0% 0.45% 3.45%2017 3.2% 0.45% 3.65%

Army

Navy

Air Force

DARPAMDA

OSDDTRA

JW&ASmall Business

Advisor

Increased by 28% , 50% & 30%

Top 10 of 24 NIH SBIR Budgets

• NCI Nat’l Cancer Institute• NIAID Nat’l Inst. of Allergy & Infectious Diseases• NHLBI Nat’l Heart, Blood & Lung Institute• NIGMS Nat’l Inst. Of General Medical Sciences• NIDDKNat’l Inst of Diabetes & Digestive & Kidney Disorders• NINDSNat’l Inst. of Neurological Disorders & Stroke• NIMH Nat’l Inst. of Mental Health• NICHD Nat’l Inst. of Child Health & Human Development• NIA Nat’l Inst. of Aging• NIDA Nat’l Inst. on Drug Abuse

JW&ASmall Business

Advisor

Some help with NIH acronyms – I thought DOD was bad!

Following NIH Money!

SBIR/ STTR is a basic element of the federal government’s R&D Planning

TRL 1 TRL 2 TRL 3 TRL 4 TRL 5 TRL 6 TRL 7 TRL 8 TRL 9

A B C

Concept & TechDevelopment

System Development& Demonstration

Production & Deployment

Support

DARPA

ATO

STTR & SBIR

MANTECH

QRF

ACTD

TTI

DACP

FCT

Note: Basic chartfrom DoD SBIR PM

OPM!

JW&ASmall Business

Advisor

Current SBIR/ STTR

Transition-to-Production Funding Sources(Using OPM to Cross the Valley of Death!)

Development of Customer & Investor Base

SBIR/ STTR Awards: Tip of the Iceberg!

JW&ASmall Business

Advisor

Using OPM (Other People’s Money!)to Cross the Valley of Death!

The DOD has over three dozen R&D funding sourcesavailable to transition SBIR technologies to production!

JW&ASmall Business

Advisor

Ph II Enhancement Phase III

International

Ph II Plus

ACTDs

CRADA

VECPsQRF

Title IIIManTech

DACP

IRAD

RECPs

EMD/ SDD

BAA

CRAD

FCT

P3I

ARRA Stimulus

TTI

CPP

RTI

Plus ups?

IDIQs

Growth

!Jobs!

Bl Changes

Recerts/Remans

Sea Trials

PO$

ATO

ONR Initiatives

Production

CRP RFIPh II Option

• 1982 Lab Technology Development Focus• ~2000 Transition Assistance Program (TAP)• ~2002 Program Manager Pull• ~2004 Prime’s Initiative• 2005 Presidential SBIR/ ManTech EO• ~2005 Nat’l Academies Congressional Study• 2006 Commercialization Pilot Program (CPP)• ~2007 Integrated Tech Roadmaps & “Phase 0s”• 2008 Pursuit of STTPs & TTAs via CPP• ~2011 CRP & RFI Established

SBIR Program Evolution within DOD

Major Changes/ Improvements in Past Dozen Years

A lot has changed! Bad experience? Try again!

JW&ASmall Business

Advisor

Inno

vativ

e Id

ea

Incubator Proposal writingProject Mgmt

License Agreement

SBIRs can be used to enter atany phase of a program’s life cycle

NDA/PIA Patents Contracting

Sales $s

Con

cept

Dev

elop

men

t/ D

emo

Det

aile

d D

esig

n/ D

evel

opm

ent

Dem

o/ Q

ual

Low

Rat

e In

itial

Pro

duct

ion

Full

Rate

Pro

duct

ion

Logi

stic

s Su

ppor

t.D

eMil

P3I B

lock

Cha

nges

Bas

ic &

App

lied

Rese

arch

Program Mgmt

Acquisitions

Maintain a “Customer Needs” Focus!

Business Mgmt

SBIRs used to develop needed capabilities across program life cycle

New program developmentTechnology insertion

JW&ASmall Business

Advisor

If Partnering, SBIR Must SupportLB’s & Prime’s Business Growth Strategy

Baseline programs

P3I

Evolutionary programs

New revolutionaryprograms

Small Business SBIR Entry Points w/ LBs & Primes

Upgrades BlockChanges

EnablingTechnologies

LogisticsSupport

DisruptiveTechnologies

It’s all about developing competitivediscriminators & attractive ROIs

Become a part of a team!AnnualSales

$B

JW&ASmall Business

Advisor

Why LBs & DOD Primes Are Interestedin working with SBs on SBIR/ STTRs!

Enhance PerformanceReduce CostReduce Risk

Provide Alt Solutions

Develop enabling technologiesSupplement to IRAD & Demo Budget

Develop Strategic IP

New componentsSystem P3I

MSINew programs

Customer Focused MarketingStrengthened customer relationships

SBIR Provides LB/ Prime a Tremendous Opportunityto Leverage Significant Gov’t Technology Investmentsto Evolve System Capability & New Business Growth

Develop small business base

Key element of Supplier Diversity StrategiesIdentify M&A Candidates

JW&ASmall Business

Advisor

Maintain a “Customer Needs/ Requirements” Focus

• How can I apply my SB technology to help you meet your capability needs/ requirements?

NOT• How can you use the innovative technology I

have developed?

• Listen, understand, discuss & help solve

DON’T• Talk, Talk, Talk, Sell, Sell, Sell

JW&ASmall Business

Advisor

“Marketing” your product or service!

• Focus on explaining how your technology/ product/ service can satisfy the customer’s need!

NOT• Proudly explaining the elegant, sophisticated

technology you have developed & patented

JW&ASmall Business

Advisor

Effective matching of SBs with LBs/ primes is often critical!

Gov’tProgramManager

SmallBusiness

CTO

Prime/ LB’sPO, IPT or Tech Lead

Gov’tSBIRTPOC

Closeness

varies

A keymatchmaking challenge!

Small businesscore capabilities

Prime’s related strategictechnology needs!

The prime understandsthe agency’s

capability needs!

JW&ASmall Business

Advisor

Majority of SB’ SBIR related sales toDOD & NASA will be thru the primes!

Gov’tProgramManager

SmallBusiness

CTO

Prime/ LB’sPO, IPT or Tech Lead

Cont

ract

s

Proc

urem

ent Contracts

Procurement

Major Ph IIIprocurementcontract

$ $

Gov’tSBIRTPOC

$SBIR Ph I & II

contracts

Cont

ract

s

Proc

urem

ent

Subcontract

Closeness

varies

JW&ASmall Business

Advisor

AZ Has the Talent to Dramatically Increase Our SBIR/ STTR & Related Awards Across All These Agencies!

AZ NM CA CO MA

20%

15%

10%

5%

0%

---------------------

Pop

ulat

ion

DO

D

NS

FN

AS

AN

IHD

OE

% of SBIR Awards Compared to Population

FY’07, Data for All Ph I awards

AZ is NOT organized to help SBs pursue SBIR funding!

Other states are – It’s a competitive world!

JW&ASmall Business

Advisor

Comparison of SBIR/STTR Awards to Population

1 2 3 4 5 6 701234567

AZ NM CA CO MA PA VA

1.1 2.1 1.8 2.4 5.8 1.0 3.0

Ratio % Awards to % Population

1 2 3 4 5 6 70

5

10

15

20

25

AZ NM CA CO MA PA VA

% U.S. Population in 2012% DOD Ph I + II Awards FY2010% DOD Ph I + II Award Dollars FY2010

Source: 2013 National SBIR Conference

FY’10, Data for Ph I & II DoD awards

Appears not much has changed!

Problemor

Opportunity!

JW&ASmall Business

Advisor

Arizona has numerous small businessinitiatives requiring integration

(to help Arizona’s high tech SBs Grow!)

JPW 081111

ACA/ ADOC-AzFAST-AzInnov.Chal..

SFAz-STI

TREO

GPEC

“Tech Clusters”* AOIA* NanoTech* AMIT -> ATC* Comps/ Plastics

Az A&DC

CEDC-Commerce & Economic Development Commission

AzCI-Incubator

UoA

ASU

GCOIGCIT-Governor’s Council on Innovation & Technology

ASBA

AERO-Az Econ Res Org

SATCRMS SBIR

NAU

Efforts need to be integrated: SBIR key front end to R&D & Transition Funding

CAREDC

AZ U

niversities

AZ A&D Primes

IdeaFunding

Economic D

ev Orgs

Arizonaneeds an

integrationprocess

SBDC

Quarterback?

TLA

JW&ASmall Business

Advisor

SBIR “Phase 0”

• If you aren’t seeing relevant solicitations (i.e., a customer problem you can solve w/ your technology), help your customer create one!

• “Phase 0” write up is a one pager!– Title– Identify Benefiting Program Office – Objective– Description– Phase I– Phase II– Phase III– Private Sector/ Commercial/ Dual Use applications– References– Key Words

JW&ASmall Business

Advisor

Some Key Do’s & Don’ts

Don’t• add risk to customer’s

program• start writing proposal until

your win strategy is developed

• just focus on technology (solution, qualified team, work plan & budget, commercialization plan)

• wait until last minute to request a LOS from LB

• avoid SBIR/ STTRs based on old experiences

Do• fully understand your

customers’ needs• make early customer

contacts• develop your Strat Plan• develop your Biz Plan• develop your team early• contact TPOC early• ask for help from local

support group’s & consultants

JW&ASmall Business

Advisor

Summary!

Benefits of SBIR/ STTRs to high tech SBs• Significant R&D funds with NO payback!• Increased IP protection• Leads to follow on OPM funding sources• Enables SB to develop & demo their

technology to attract customers & investors• Develops important business relationships

(government and large & small business customers, business partners, universities, research institutes, …)

Good Luck!

JW&ASmall Business

Advisor

Questions?

John P. Waszczak, PhDSmall Business Advisor

John Waszczak & Associates, LLC

520-891-6181

[email protected]

JW&ASmall Business

Advisor


Some additional important informationthat may not be covered

during two sessions

JW&ASmall Business

Advisor

PHASE I Feasibility study ~$100-150K & 6-mo (SBIR)

or 12-mo (STTR) award

PHASE II Full research/ R&D ~$1.0M+ & 18-24 mo award

PHASE III Transition stage (“Commercialization”) Use of non-SBIR/ STTR funds

Contractual Flow

Customer

Small Business

Prime

SBIR Contract

Support Contract33% max

Customer

Small Business

Prime

SBIR Contract

Support Contract50% max

Customer

Prime

Small Business

Prime Contract

Subcontract

STTR – mirror program to SBIR requiring >40% of work done by SB & >30% by university, FFRDC or not-for-profit research institution (0.35% of RDT&E budget FY’13)

Basic chart from Navy SBIR PM

SBIR - A set aside program for small businesses w/ < 500 employees; 2.7% of every gov’t agency’s RDT&E budget FY’13

Overview of SBIR & STTR Programs

Over half of DOD SBIR awardsgo to SBs w/ <24 employees

There are NO small businesses too small to compete for SBIRs

JW&ASmall Business

Advisor

Prime’s Customers Need & AreActively Requesting Help w/ SBIR !

JW&ASmall Business

Advisor

DoD Wants to Help “the Primes”Maintain Their “Competitive Advantage!”

JW&ASmall Business

Advisor

DoD Wants “the Primes”Involved in the Entire Process!

Phase 0

Phase I

Phase II

Phase III

JW&ASmall Business

Advisor

DoD Wants the Prime’s to Help Their Service Program Managers !

JW&ASmall Business

Advisor

Active participation in the SBIR Program Is a “Win – Win” for All Involved!

Win! Win! Win! Win!

Small Prime/ Service/ Warfighter!!!

Business LB Customer

All the Prime’s are Actively Involved!

JW&ASmall Business

Advisor

1 Basic principles observed & reported

2 Technology concept &/ or application formulated

3 Analytical & experimental critical function &/ or characteristic proof-of-concept

4 Component &/ or breadboard validation in laboratory environment

5 Component &/ or breadboard validation in relevant environment

6 System/ subsystem model or prototype demonstration in a relevant environment

7 System prototype demonstration in an operational environment

8 Actual system completed & qualified through test and demonstration

9 Actual system proven through successful mission operations

Technology Readiness Levels (TRLs)& Definitions - Summary Level, DHS & DoD

Note: More detailed definitions available by agency

JW&ASmall Business

Advisor

TRL 1Basic

PrinciplesObserved

TRL 2Concept

Formulated

TRL 3Proof

Of Concept

TRL 4Breadboard

InLaboratory

TRL 5Breadboard

In RepEnvironment

TRL 6Prototype

In RepEnvironment

TRL 8System

Qualification

TRL 7Prototype

In OpsEnvironment

TRL 9MissionProven

MRL 1Not

Applicable

MRL 2Not

Applicable

MRL 4Manufact.ProcessesIdentified

- KeyProcessesIdentified

-CostTargetsSet

- Cost DriversIdentified

MRL 5Manufact.Process Develop.

-Trade Studies

-Lab Experiments

-Process Control Baseline &TargetsEstablished

MRL 3Manufact.ConceptsIdentified

MRL 6Critical Manufact.ProcessesDemo’d

- RelevantEnvironment

-YieldGoals Established

-Processes& ToolingMaturing

-ProductionImplement.InvestmentsIdentified

MRL 7PrototypeManufact. System

- Prototype Product Made onRepres. Tooling

-ProcessTooling &TestEquipmentDemo inRelevantEnvir.

- Cost GoalsValidated

MRL 8ProcessMaturity Demo

- Yields &ProducibilitySat. for LRIP

-ProcessesMeet ProcessControl Targets

-Cost Goals Met for LRIP

MRL 9Manufact. ProcessesProven

- OverallManufact.ProcessOperates At targetQuality,Cost and Lead-times

-All keyProcessesMeet processControl Targets

RATE PRODUCTION

ACQUISITION MILESTONESPRE-CONCEPT REFINEMENT TECH DEVELOPMENT SDD LRIP

A B C

* DoD Technology Readiness Assessment Deskbook Oct 2003 Appendix G

Manufacturing Readiness Levels (MRL) JW&ASmall Business

Advisor

INTRODUCTION TO COMMUNITY RESOURCES

ELLEN K IRTON, SBDCJOANN MACMASTER, AZC I

Resources for SBIR Process

Presented by:Ellen Kirton, Director SBDCJoann MacMaster, Director AZCI

Where do I begin?I have an ideaWho can help me?What are next steps?

You’re not alone!Steps and the resources to match

those steps◦Flush out your idea◦What is the market◦Put together the grant proposal

Market, who would buy my technology? Feasibility of the technology Financial parameters of the project

One step at a timeVetting your idea:

◦Peers◦Professionals – AZCI, SBDC, SCORE◦Consultants◦Downtown Business Library

Innovation-related events

Validate your idea

“I’ve got the best thing since sliced bread!”“Why didn’t anyone think of this before?”“They said it couldn’t be done.”“Everyone will want one.”“The Next Generation.”

Create the marketing planWho would be your customer?Who pays for it?What would they pay for it? Is it sustainable?What problem are you solving?What is the competitive advantage? Is this discretionary or necessary?

Pull it all togetherOkay your idea looks promisingHow do I get my idea to reality?Consider SBIR grant to fund the

processGet started

◦Put it in writing◦Pull your resources together

Where do I go next?Peers

◦Professors◦Peer comparisons◦Industry experts

Where do I go next?Professionals

◦SBDC◦SCORE◦AzCI

Where do I go next?Consultants

◦Summit Contracting (grant writing)◦Bancroft Information Systems

(market research)◦Tucson Supplier Network (prototype

development)

Key is to Surround Yourself with Experts!

Small Business Development Center

Contact: Ellen Kirton, Center Director(520-620-1241)[email protected]

No cost - one on onecounseling with a business

expert


TODAY’S AGENDA

9:00Registration 9:30Introduction to the SBIR/STTR Program 10:15Highlighting benefits for small businesses 11:00Introduction to Community Resources11:45 Lunch 12:45Tech Launch Arizona 1:15The Right Fit 2:00Success Stories 3:00Concluding remarks, final questions 3:15 Networking opportunity

LUNCH BREAK

TODAY’S AGENDA

9:00Registration 9:30Introduction to the SBIR/STTR Program 10:15Highlighting benefits for small businesses 11:00Introduction to Community Resources11:45Lunch 12:45 Tech Launch Arizona 1:15 The Right Fit 2:00 Success Stories 3:00 Concluding remarks, final questions 3:15 Networking opportunity

TECH LAUNCH ARIZONAD O U G H H O C K S TA D , O F F I C E O F T E C H N O LO GY T RA N S F E R

U N I V E R S I T Y O F A R I Z O N A

Wor

king

With

UADoug HockstadDirectorOffice of Technology TransferTech Launch Arizona

About Tech Launch Arizona

University of Arizona Technology Commercialization

After going in thewrong direction,

a step backward is a step in the right

direction.

How Things Change

Industrial Relations

Tech Parks

Tech Transfer

Marketing & Venture Development

Tech Launch Arizona

New Tech Launch Arizona

• New organization with high level visibility and commitment

• New (enhanced) financial resources• New people pursuing ideas new to UA• Tight integration with schools (embeds)• Integrated with President’s vision & University

Strategic Plan• Focused, partner-oriented, service-centric,

transparent & accountable

What is TLA?

• Before TLA– Faculty shoulder the burden of IP cost and start-up

development– Internal and external frustrations– Lack of process transparency

• After TLA– TLA shoulders the IP cost – TLA works to help form suitable companies– Maps of process and status

What’s It Mean to UA community?

Research

Pre-Disclosure

Disclosure

Assessment

Protection

Find or Form a Licensee

Existing Company Marketing Business Planning

Developing the License Components Business Formation

Licensing

Commercialization, Relationships, Revenue, Reinvestment

Find Form

•Written notice of invention to TT•Used for review of protection and commercialization options

Form a Company or Find One

Company develops & sells products

Agreement in which University’s rights are

exchanged for financial and other benefits

Assess commercial potential and protection

Is it Patentable?What is the Commercial Potential?

File Patent Application…or not

Tech Commercialization Process

Feasibility Studies&

Proof of Concept

Tapping the Commercialization

Network

Tapping the

Network

• 50-Strategies directed to enhancing Technology Commercialization

• 15-Strategies directed to promoting industry sponsored research and collaboration

• 25-Strategies related to University Technology Parks integration with the missions of the University and growth of the University Technology Parks

• 25-Strategies for the overall TLA enterprise

TLA Strategic Plan

107 New Strategies

http://techlaunch.arizona.edu/roadmap

• Listened to the University and the community• Understand the problems, set a tone of authenticity

and put preliminary changes in motion• Executing on the strategic plan

– Proof of Concept Program: 19 projects at ~$40k each– Built a new team– Published first of many new Procedure documents– Have begun regular seminars in all schools/colleges– Clear directions with measurable outcomes, but retain

flexibility

What have we done so far?

Working With SBIRs and STTRs

What’s it all mean to the small business and to UA?

• Small Business Entity MUST be the prime contractor– SBIR: Small Business MAY partner with a non-profit

research institution (NPRI)• Up to 33% of Phase 1 award may be subcontracted• Up to 50% of Phase 2

– STTR: Small Business MUST partner with a NPRI• At least 30% of the award must be subcontracted to a

NPRI• Up to 60% of the award may be subcontracted (at least

40% must be in company)

Key Program Requirements

• Primary investigator (PI) rules:– SBIR: The PI MUST be at least 51% employed by

small business– STTR: PI must have an official relationship with the

small business and at least 10% effort on project

Key Program Requirements

• It’s a natural fit: SBIRs and STTRs are specifically designed to “stimulate technical innovation” and “develop products with commercial merit”

• While every situation is unique, we remain both helpful and flexible

… but in general…

Working With UA

The SBIR (or STTR) Contract Link

Company UA Faculty

ORCA www.orca.arizona.edu

OTTwww.ott.arizona.edu

SPS www.sps.arizona.eduRouted Subcontract

Proposal:• Proposal Text• Statement of Work• Approved Budget

IP Letter

Budget

Proposal To Agency

IP Letter

The SBIR (or STTR) Contract Link

CompanyORCA www.orca.arizona.edu

OTTwww.ott.arizona.edu

SPS www.sps.arizona.edu

Subcontract Document:• Proposal Text• Statement of Work• Approved Budget • Federal Award Terms

&Conditions

SubcontractIP Mgmt

Accounts

AwardFrom Agency

• Relationship with Small Business Concern (SBC)– UA would be a subcontractor on the federal contract to SBC

• IP Terms– Federal terms generally apply: Each party owns its own IP

• At proposal time– OTT will work with SBC to provide a simple letter of support, including

language related to licensing IP to the SBC

• At award time– Subcontract to UA is put together by SBC and UA’s ORCA

• Recently, UA announced reduced overhead for Phase I SBIR/STTR subcontracts: 15%!

Working With UA Recap

• Often, if not usually, these are subcontracts from companies that have licensed University technology, so generally might have the terms of the license apply to new IP.– Improvements (basically future IP dominated by license

technology) often come in under the same terms as the licensed IP at no additional cost.

– New Technology (related to licensed technology but not dominated) often is optioned and if the company takes it, generally the same terms as the existing license plus a (relatively small) fee to add.

Collaboration Agreement Highlights

• Background IP is expected to be fairly negotiated if the background IP rights are necessary to commercialize new IP generated.

• Generated IP is owned by whichever institution’s employees develop it. If IP is jointly developed it will be owned by both parties unless agreed in writing.


• Company has first option to perfect rights of jointly developed IP, however patent filing (or other IP) needs to be made in the names of both the company and the UA.

• If Company wants IP, it must pay patent expenses, whether exclusive or non-exclusive license.

• Government will have irrevocable, royalty free, non-exclusive license for any governmental purpose in any project IP.


• Serve as a connection to companies for faculty seeking partners

• Serve as a connection to expert faculty for companies seeking partners

• We’re here to help…just ask!

And More…

Visit techlaunch.arizona.edu to learn more, including:

Subscribe to our newsletter “Fast Forward” for latest and greatest news;

Watch videos and read our Blog to learn more about what we do.

If you are Faculty and have an invention go to ott.arizona.edu

Tech Launch Arizona

THE RIGHT FITRALPH HERSHBERGER , MADERA ASSOCIATES , L LC

RALPH H. HERSHBERGER©MADERA ASSOCIATES, LLC

Arizona Center for Innovation

SBIR/STTR Workshop Program August 9 & 16, 2013

NATIONAL SCIENCE FOUNDATIONSBIR/STTR PROGRAMS

THE RIGHT FIT

GENERAL REQUIREMENTS FOR AN SBIR.

Review www.sba.gov and www.sba.gov/.../small-business-innovation-

research-program-sbir-0

Grantee must be defined as a small business: Set up as a for profit organization 500 or fewer employees Principal researcher must be employed by company Must be U.S. owned

© Madera Associates, LLC

http://www.sba.gov/

ARE YOU READY?

Phase l Technology Elements

Research to establish innovationReview prior awards/awardees

Proof of Concept Do the critical experiment!

A realistic work scope (6 months). Qualified team & facilities.


THE INNOVATION CONTINUUM

SBIR/STTR Grants

FFF

VC’s

Angel Investors

Prime/Agency Funded Development

ARE YOU READY?

Phase lCommercial Elements

Business Plan Potential Customers

Letters of support Early stage financing

Explore all options Prior commercial experience


WHY DO THIS (NSF)?

All phases=$1.180MM grant Not a loan. No dilution of equity. Validation of the work/product that supports investment from VC’s, angels, partner companies.

PLUS the $1.06MM raised to secure “B” money.


WHY DO THIS?

SBIR programs fill a gap. What are the traditional sources of funding?

FFF – limited amounts. Banks – reduce exposure, want 3 years of statements. Venture capital – selective & moved to mezzanine

financing Angel investors SBA loans – insured by the SBA but local bank

determines approval, rates, and terms. Microloans (Accion, PPEP, Pio Decimo) accept riskier

clients. Government agencies – AZ state.


WHAT DO YOU GIVE UP?


FFF

Banks

VC Angels

SBA Microloans

State Dev.Agencies

SBIR

Debt X X X X X X X

Equity X XX X

Comment

Ltd Terms

Ph ll

Liens

Ltd. Somegrants

Gov’t.license

ONE IDEA MULTILPE AGENCY OPTIONS

A good idea may be applicable to multiple agency RFP’s.

Review agency solicitations.Call Program Directors for quick feedback.


ONE IDEA MULTILPE AGENCY OPTIONS


Agency

NSF

DODDHHS NIH DOT DHS EPA

DOCNOAANIST

DOE DOEd DOAg

Nano.Mat’l. & Mfg.

X X X X X X

Bio. &Chem. X

X X X

X X X

Elec.Comm. & IT

X X X X

Educ. X

THE SECRET?

SUCCESS STORIES

Leon Radziemski, PhD

Robin Polt

TODAY’S AGENDA

9:00Registration 9:30Introduction to the SBIR/STTR Program 10:15Highlighting benefits for small businesses 11:00Introduction to Community Resources11:45Lunch 12:45Tech Launch Arizona 1:15The Right Fit 2:00Success Stories 3:00Concluding remarks, final questions 3:15 Networking opportunity

How to utilize the SBIR/STTR Program to advance your business

August 16, 20139:00am – 3:30pm

2013 08 09 funding your innovation with the sbir-sttr programs - final presentation2

Business

Transcript of 2013 08 09 funding your innovation with the sbir-sttr programs - final presentation2