NASA SBIR & STTR Frequently Asked Questions

Frequently Asked Questions (FAQ)

SBIR

STTR

Patent Related

SBIR

What is the SBIR Program?
The Small Business Innovation Research (SBIR) Program is a highly competitive three-phase award system which provides qualified small business concerns with opportunities to propose innovative ideas that meet the specific research and development needs of the Federal Government.
What are the three phases of the SBIR Program?
Phase 1 is a feasibility study to evaluate the scientific and technical merit of an idea. Awards are for periods of up to six months in amounts up to $100,000. Phase 2 is to expand on the results of and further pursue the development of Phase 1. Awards are for periods of up to two years in amounts up to $600,000. Phase 3 is for the commercialization of the results of Phase 2 and requires the use of private sector or non-SBIR Federal funding.
Do you have to be a Phase I awardee in order to be considered for Phase 2 of a project?
Yes.
What is the small business size standard for purposes of the SBIR Program?
A small business concern for purposes of award of any funding agreement under the SBIR Program is one which, including its affiliates, has a number of employees not exceeding 500.
How can a small business concern obtain funding under SBIR?
A small business can obtain funding under SBIR by being the recipient of a competitively awarded SBIR funding agreement.
What is an SBIR funding agreement?
An SBIR funding agreement is a contract or grant entered into between an SBIR participating Federal agency and a small business concern for the performance of experimental, developmental, or research work funded by the Federal Government.
Does the Small Business Administration make any awards under the SBIR Program?
No. The SBA has authority and responsibility for monitoring and coordinating the Government-wide activities of the SBIR Program and reporting its results to Congress. The Federal agencies participating in SBIR have the responsibility for: (a) selecting SBIR topics, (b) releasing SBIR solicitations, (c) evaluating SBIR proposals, and (d) awarding SBIR funding agreements on a competitive basis
Who are the participants in the SBIR Program?
The following Federal agencies are eligible to participate: Department of Agriculture, Department of Commerce, Department of Defense, Department of Education, Department of Energy, Department of Health, and Human Services, Department of Transportation, Environmental Protection Agency, National Aeronautics and Space Administration, National Science Foundation, and Nuclear Regulatory Commission.
Can a firm go directly to a Phase 2 award without having to compete for Phase 1?
No. The SBIR Program was created for NEW innovations to meet existing Federal R&D; needs. The results of a Phase 1 are a determining factor in deciding whether there will be a Phase 2 award to continue the effort.
Does SBA designate any of the topics cited in SBIR solicitations or make any awards under SBIR?
No. The legislation governing the SBIR Program gives unilateral authority and responsibility for these functions to each of the Federal agencies participating in the program.
Since SBIR is a program to assist small business innovators, can SBA or the other Federal participating agencies provide direct funding for a project which a firm has initiated on its own?
No. SBA does not fund SBIR projects and such an endeavor would be considered an unsolicited proposal, which is outside the scope of the SBIR Program.
Is a small U.S. firm still eligible to compete for an SBIR award, if it forms a 50-50 joint venture with a non-profit or foreign firm?
No.
Are foreign based firms eligible for SBIR awards?
No. To be eligible for award of SBIR funding agreements, a small business concern has to meet the following qualifications: -- be independently owned and operated -- principal place of business is located in the United States -- at least 51 percent owned or in the case of a publicly owned business, at least 51% of its voting stock is owned by United States citizens or lawfully admitted permanent resident aliens.
Are non-profit concerns eligible for SBIR awards?
No.
May a portion of an SBIR award be subcontracted?
For Phase 1 a minimum of two thirds of the research and/or analytical effort must be performed by the proposing firm, and for Phase 2, a minimum of one-half of the research and/or analytical effort must be performed by the proposing firm.
Can a Federal agency other than the one originating the Phase 1 award make the Phase 2 award under the same SBIR topic?
No. Awards of this type would be the result of an unsolicited proposal, and therefore, would be considered outside the scope of the SBIR Program.
What is the difference between SBIR solicitations and the SBIR Pre-Solicitation Announcement?
SBIR solicitations are specific Requests for Proposals released by the Federal agencies participating in the program which may result in the award of Phase 1 SBIR funding agreements. SBIR Pre-Solicitation Announcements, released by SBA, contain pertinent data on SBIR solicitations that are about to be released by the participating Federal agencies.
What is the Commercialization Matching System (CMS)?
CMS is a system developed by the Small Business Administration to assist SBIR awardees in their efforts to locate sources of funding needed for finalization of their innovations.
May firms that have not successfully competed for SBIR awards participate in CMS?
No. This system was established exclusively to link SBIR awardees with potential sources of capital and vice versa.
Will SBA provide funds for SBIR commercialization?
No. Private sources of capital should be used. However, SBIR awardees are encouraged to seek information on all of the services that SBA makes available to the small business community.

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STTR

What is the STTR Program?
STTR is a highly competitive three-phase program that reserves a specific percentage of Federal research and development funding for award to small businesses in partnership with nonprofit research institutions to move ideas from the laboratory to the marketplace, to foster high-tech economic development and to address the technological needs of the Federal Government.
What are the three phases of the STTR Program?
Phase 1 is the start-up phase for the exploration of the scientific, technical, and commercial feasibility of an idea or technology. Awards are for periods of up to one year in amounts up to $100,000. Phase 2 is to expand Phase 1 results. During this period the R&D; work is performed and the developer begins to consider commercialization potential. Awards are for periods of up to two years in amounts up to $600,000. Phase 3 is the period during which Phase 2 innovation moves from the laboratory into the marketplace. There is no STTR funding in this phase.
Must you be an established business when you propose?
No. However, you must be organized as a business at the time of award.
Who can propose?
Only small for-profit businesses can propose.
What is size criteria?
A small business concern with 500 or fewer employees including subsidiaries and/or affiliates. The size of the non-profit collaborator is not relevant.
How are future rights to projects developed under STTR determined?
The small business concern and the research institution must develop a written agreement prior to a Phase 1 award. This agreement must be submitted to the awarding agency, if requested.
Who are the Federal participants in the STTR Program?
The following five Federal departments and agencies are eligible to participate: Department of Defense, Department of Energy, National Aeronautics and Space Administration, Department of Health and Human Services, and National Science Foundation.
Can I skip Phase I and begin at Phase 2?
No. Phase 2 awards can only be awarded to firms having successfully completed Phase 1 at the same awarding agency.
Does SBA make any STTR awards?
No. The five participating Federal agencies have unilateral procurement authority.
Can you subcontract in STTR -- either party or both?
Yes. Either party may subcontract or they may jointly fund a subcontractor.
Can a small business concern participate in both SBIR and STTR simultaneously at the same or differing agencies?
Yes, but they may not perform the same or essentially similar work under more than one contract or grant. Collecting funds more than once for the same work is fraud.
Will an unsolicited proposal be accepted in the STTR Program?
No. Proposals must respond to the solicitation as published by one or more of the participating agencies.
Who is the prime contractor or grantee?
The small business concern.
Must the small business concern and/or the research institution be located in the United States?
Yes. Both the small business concern and the institution must be on U.S. soil.
Can a Phase 3 follow-on contract for funding be made, without competition, to the firm that successfully completes Phase 1 and 2?
Yes, the firm may be given a sole source contract in Phase 3 for further work or production.
What is the minimum percent breakout for small firms and institutions in conducting research?
Small business concerns must perform at least 40% and research institutions must perform at least 30% of the work.
Who resolves problems concerning STTR topics, awards, audits, etc.?
The agency issuing the Program Solicitation. SBA handles program policy for across the board uniformity, reporting to Congress and program oversight.
Where can I go for further information on how I get started or if there is other assistance available?
Information can be obtained from SBA OnLine Bulletin Board by dialing: 1-800-697-4636. To receive information on other SBA programs, please contact your local SBA office or call the SBA Answer Desk: 1-800-8- ASK-SBA.

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Patent Related Questions

If we develop technology and decide NOT to exercise our rights to a patent, is that technology then published and if so how and to whom?
A contractor has the first option to elect to retain title to a subject invention and pursue patent protection. To the extent authorized by 35 U.S.C. 205, the Government will not disclose (publish) the invention to the public for a reasonable time in order for a patent application to be filed by the contractor. Time periods are specified in the contract. If the contractor does not elect to retain title the Government has the option to pursue patent protection. Any publication of the invention before a patent application has been filed will establish a statutory bar to patenting, requiring the filing of a patent application before the one-year statutory time period has expired. If neither the contractor nor the Government is interested in pursuing patent protection either party may pursue publication. NASA routinely publishes new innovations in NASA TechBriefs as well as making them electronically available over the Internet. For more information see, FAR 52.227-11 "Patent Rights - Retention by the Contractor (Short Form), "as Modified by NASA FAR Supplement 18-52.227-11."
If an innovation is created under an SBIR the small company owns the intellectual property. What rights does the government have to the intellectual property? Can they give the technology to and have someone else build it for them or build the device themselves and not pay royalties? Has this ever happened and how do we guard against it?
With respect to any subject invention an SBIR contractor has the first option to retain title and file for patent protection. The Federal Government shall have a nonexclusive, nontransferable, irrevocable, paid-up license to practice or have practiced for or on behalf of the United States the subject invention throughout the world. A "subject invention" means any invention of the contractor conceived or first actually reduced to practice in the performance of work under the contract. Thus, the Federal Government has the right to build the subject invention itself or have a contractor build it for them and not pay royalties to the SBIR contractor. These rights are established by statute. For more information see, FAR 52.227-11 "Patent Rights - Retention by the Contractor (Short Form)," as Modified by NASA FAR Supplement 18-52.227-11."
Can the SBIR pay for the patent costs?
Contractors must pay their own patent costs for subject inventions in which they retain title.
If an innovation comes out of an idea presented in the proposal but the core idea of the technology was developed with private funding, does the government have rights to that technology? Is [Are] there some instances where the technology is split between industry and government?
With respect to any subject invention in which the contractor retains title, the Federal Government shall have a nonexclusive, nontransferable, irrevocable, paid-up license to practice or have practiced for or on behalf of the United States the subject invention throughout the world. A "subject invention" means any invention of the contractor conceived or first actually reduced to practice in the performance of work under the contract. Conception and actual reduction to practice are terms of art used in the patent law. An invention conceived under a contract becomes a subject invention to which the Government obtains rights. Also, an invention conceived with private funding could become a subject invention if it is first actually reduced to practice in the performance of work under the contract. For more information see, FAR 52.227-11 "Patent Rights - Retention by the Contractor (Short Form)," as Modified by NASA FAR Supplement 18-52.227-11." The question concerning how "technology is split between industry and government" is interpreted as a question concerning what happens in the case of jointly invented industry and government inventions. Because research and development work is being done by the employees of a contractor, it is not generally anticipated that a joint invention will arise with Government employees. Nevertheless, should a subject invention be made that is co-invented by industry and government employees, the invention will be jointly owned by the contractor and the Government. Absent an agreement to the contrary, if the SBIR contractor obtains patent protection, each owner independent of the other may exploit the patent.
Are there any restrictions on intellectual property developed under an SBIR that can keep industry from licensing the technology overseas, selling the technology overseas? If not, what happens to the government's right to use that technology?
Assuming the technology is not export control restricted, there is a statutory preference for manufacturing subject inventions covered by U.S. patents substantially in the United States. The manufacturing preference does not preclude licensing the patented technology overseas should foreign protection be obtained. The preference for US manufacture also does not preclude selling the patented technology overseas. The licensing or selling of technology overseas does not affect the Government's rights in the subject invention.
Can industry put restrictions on technology it is using as a component part to the SBIR? Can we notify government that "trade secrets have been used to develop this technology and must never be published"? In other words, technology X is not part of the unlimited rights to the government.
If data other than (i) "Data specifically identified in the contract as data to be delivered without restriction: (ii) Form, fit, and function data delivered under the contract; and (iii) Data delivered under the contract that constitute manuals or instructional and training material for installation, operation, or routine maintenance and repair of items, components, or processes delivered or furnished for use under the contract, are specified to be delivered under the contract and such data qualify as either limited rights data or restricted computer software, the contractor, if the contractor desires to continue protection of such data, shall withhold such data and not furnish them to the Government under the contract. As a condition to this withholding the contractor shall identify the data being withheld and furnish form, fit, and function data in lieu thereof. "Limited rights data", means data (other than computer software) developed at private expense that embody trade secrets or are commercial or financial and confidential or privileged, should be withheld from delivery if the contractor desires to continue protection of such data. "Restricted Computer Software" means computer software developed at private expense and that is a trade secret; is commercial or financial and confidential or privileged; or is published copyrighted computer software; including modifications of such computer software. For more information see, FAR 52.227-20 "Rights in Data - SBIR Program."
When there is industry investment (matching of funds) how does this affect the Government rights to the technology?
The Government's rights in a subject invention are established whenever the Federal Government funds research and development work in whole or in part under a contract. The use of matching funds by a contractor does not affect the rights of the Government to subject inventions. The Government's rights in data are established in FAR 52.227-20 "Rights in Data - SBIR Program." SBIR data may be protected for a period of 4 years.
If industry determines (for whatever reason) that it isn't feasible to patent the technology but later realizes there is what happens?
The contractor has the first option to elect to retain title to a subject invention and pursue patent protection. Time periods for election of title and filing of a patent application are specified in the contract. If the contractor explicitly declines to retain title or fails to notify the Government of its decision within the prescribed time, the option becomes the Government's. For more information see, FAR 52.227-11 "Patent Rights - Retention by the Contractor (Short Form)," as Modified by NASA FAR Supplement 18-52.227-11."

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