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SBIR/STTR Programs
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SBIR |
STTR |
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Phase I |
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Total Cost* |
$100,000 |
$100,000 |
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Duration |
Six months |
One year |
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Collaboration** |
33% of total cost |
Minimum of 30% of total cost |
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Application Format |
Modular |
Modular |
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- Budget > $100,000 |
Traditional |
Traditional |
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Phase II |
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Total Cost |
$750,000 |
$500,000 |
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Duration |
Up to 24 months |
Up to 24 months |
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Collaboration* |
50% of total cost |
Minimum of 30% of total cost |
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Application Format |
Traditional |
Traditional |
* In general, Phase I awards are not to exceed $100,000, but if the project cannot reasonably be accomplished within this limitation, a larger budget may be requested. If the application is approved on merit and the additional funding is justified, larger budgets may be supported. As indicated in the preceding chart, applicants who are seeking more than $100,000 in research funds must submit traditional, rather than modular applications.
** For SBIR grants, collaboration refers to subcontracts, consultants and so on. For STTR grants, collaboration includes a well-defined partnership between the small business and a nonprofit research institution. This agreement must be specified in detail before the award is issued.
Specifying Requirements
Some special requirements apply to both SBIR and STTR applications, and other requirements apply to each type of award individually.
Requirements for SBIR and STTR Awards |
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Additional Requirements for SBIR Awards |
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Applying for SBIR/STTR Awards
Applications for SBIR and STTR awards may be submitted on or before April 1, August 1, and December 1 of each year.
Potential applicants are encouraged to speak with PDs before they submit applications so as to ensure that they are eligible for an SBIR or STTR award under the statutory guidelines. In most cases, applications are initially funded for Phase I, and only Phase I awardees are eligible to participate in Phase II.
Applicants may, however, request funds for Phase I and Phase II work in a single application. Awards issued for such applications are called Fast Track awards.
Using the Fast-Track Process
The SBIR/STTR program provides an expedited submission and review process. This process is called the Fast Track Process. Under this system, applicants submit plans for both Phase I and Phase II work in a single application, and reviewers consider the merit of the work proposed for both stages.
This process is intended to reduce or eliminate the gap between Phase I and Phase II funding and to encourage rapid transition from the "proof of concept" phase into an expanded development and commercialization phase. It can be used for applications that:
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Propose work that is of significant value in cancer research and treatment.
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Propose work with high potential for commercialization.
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Provide sufficient preliminary data to clearly define milestones that would provide proof of feasibility
An application submitted for Fast Track funding must:
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Include clear measurable milestones to be achieved before Phase II funding is made available.
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Include a product development plan, limited to ten pages, which defines the commercial potential based on analyses of the market and competing products or services.
In discussing the Fast Track process with applicants, PDs should point out its limitations. In particular, specifying the schedule for the product development and projecting costs may be difficult without having completed Phase I work, and these uncertainties may affect reviewers' judgments of the application. If members of the SRG are not sufficiently confident that the applicant can achieve the Phase I milestones, they may disapprove the Phase II component and review and score only the Phase I component.
Communicating with Applicants
The PD's responsibilities for communicating with applicants for SBIR/STTR funds, both before awards are issued and afterward, are much the same as is the case with applicants for traditional grants. There are, however, some important differences.
In general, the organizational environment of applicants for SBIR/STTR funds is likely to be quite different from that of applicants for traditional grants. Applicants for SBIR/STTR funds are less likely to be affiliated with universities or other research organizations, and, hence, less likely to benefit from in-house expertise in grant management.
Thus, PDs and NCI GMSs may need to be especially careful in ensuring that all details of the application and the specific conditions of the award are in order before an award is issued. PDs may also need to communicate more frequently and in more detail as Phase I ends and applicants are considering applications for Phase II awards.
Communicating with Applicants before Awards Are Issued
For the most part, pre-award communication between PDs and SBIR/STTR applicants mirrors communication between PDs and applicants for traditional grants. The issues to be addressed are described in Communicating about Applications Prior to Submission.
Communicating with Applicants after Awards Are Issued
As with pre-award communication, most aspects of post-award communication with SBIR/STTR grantees are the same as those carried out with grantees to whom traditional awards were issued. There are, however, some important differences.
In post-award communications with PIs, PDs may want to discuss:
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The success of Phase I work as the basis for a Phase II application.
The PD and the PI should attempt to determine whether scientific progress in Phase I has been sufficient to justify Phase II funding. If feasibility has not been clearly demonstrated, the PD may recommend that the PI apply for a new Phase I grant. A thorough discussion of scientific progress during Phase I is especially important for Fast Track grantees as the administrative responsibility for determining whether the agreed-upon milestones have been reached rests with the PD.
A thorough discussion of scientific progress during Phase I is especially important for Fast Track grantees as the administrative responsibility for determining whether the agreed-upon milestones have been reached rests with the PD.
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Conversion of an SBIR or STTR award to a cooperative agreement (U43 or U44).
PDs may determine that government resources would help to ensure the success of the work proposed in the application. PDs should present this option to the awardee. If the awardee agrees that such an arrangement would be desirable, the PD may recommend conversion of the grant to a cooperative agreement.
In most cases, such a conversion would take place after Phase I is completed and before a Phase II award is issued. Occasionally, however, assessments of progress and the need for additional resources may indicate that converting a grant to a cooperative agreement during Phase I would be desirable.
For more information about converting grants to cooperative agreements, see Converting Grants to Cooperative Agreements.
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The development of a Phase III business plan.
To help grantees seek Phase III funding, PDs should inform small business awardees of potential resources that may be available for their specific needs. Such Phase III activities may include establishing websites listing new products made possible by SBIR/STTR grants and holding marketing conferences during which grantees demonstrate their products. Such conferences may help expedite the adoption of these products in the marketplace.
More generally, PDs should maintain contact with SBIR/STTR grantees to track the outcome of Phase II funding. Success stories should be reported to the SBIR Special Program Officer in the NIH Office of Extramural Research.
Using Contracts to Achieve SBIR/STTR Goals
In addition to supporting SBIR applications through grants, NCI establishes contracts as a means of achieving the goals of the SBIR program. A contract mechanism should be considered when, and only when:
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Significant direction by NCI staff is required for the execution of the project.
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A distinct deliverable–such as an instrument, software, or data–is expected.
PDs who plan to serve as project officers for an SBIR contract must have successfully completed the project officer training course. These courses are presented at least twice each year. The Administrative Resource Center notifies NCI about the dates and times of these courses by email.
The PD's division and the EC must approve the concept for the contract, and notices about the contract opportunity must be published in the NIH contract solicitation, which is published once each year. Thus, planning the approval process so as to meet the publication deadline is essential.
Applications are reviewed by a special review group convened by DEA, according to standard contract procedures.
For more information about the use of contracts, see http://rcb-intranet.nci.nih.gov.