January 01, 2024
"SBIR technology saved or avoided cost in Joint Strike Fighter over $500 million"
Christopher C Bogdan, Lieutenant General, USAF, F-35 PEO
Source: “F-35 Small Business Success Stories”
Description
The Small Business Innovation (SBIR) and Small Business Technology Transfer (STTR) programs are three-phased competitive awards-based program that enables small businesses to explore their technological potential and provides the incentive to profit from its commercialization of Research/Research and Development (R/R&D) efforts.
Phase I establishes the technical merit, feasibility, and commercial potential of the proposed R/R&D efforts. During this phase, each award is capped at $250,000 ceiling and has a maximum duration of six (6) months.
Phase II continues the Phase I effort and demonstrates the scientific and technical merit of the R/R&D effort and its commercial potential. During this phase, each awards are capped at $1,800,000 ceiling and have a maximum duration of two (2) years.
Direct to Phase II leverages research performed by a small business that is not funded by the SBIR/STTR program to establish Phase I technical merit and feasibility. By doing so, the small business has a path to skip Phase I and go directly to Phase II. Note that although the SBIR/STTR program is a three-phased program, the phases need not be performed in sequence. For example, a company may go from Phase I to Phase III immediately upon award of a funded Phase I SBIR/STTR. During this phase, each awards are capped at $1,800,000 ceiling and have a maximum duration of two (2) years.
Phase III is for the pursuit of commercialization objectives resulting from the Phase I/II efforts. During this phase work may be for products, production, services, R/R&D, or any combination thereof. The work does not have any SBIR related restrictions on the value funded, duration or size of small business performing the work.
Phase I and II awards can only be made by participating agencies listed here. Any agency, including non-SBIR agencies, can issue a Phase III sole source award.
Advantages of Use
By including qualified small businesses in the nations R&D arena, high-tech innovation is stimulated, and the United States advances entrepreneurial spirit as it meets its specific research and development needs
By acquiring or further developing products and services developed under SBIR awards, the products and services leverage prior R/R&D and expedite the process to meet new Federal requirements
SMALL BUSINESS BENEFIT: Increases opportunities for small businesses to develop and bring their products to market, thereby strengthening the small business industrial base
Phase III SBIR/STTR: Agencies are authorized, to the greatest extend practicable, to make awards to SBIR/ STTR Program participants for work that derives from, extends, or completes efforts made under either a prior SBIR or STTR Phase I or Phase II funding agreement.
The following are examples of the types of activities that constitute SBIR Phase III work:
Commercial application including R/R&D, testing and evaluation of services or technologies.
SBIR-derived commercial or modified commercial products or services intended for use by the Federal Government.
Continuation of Phase I or Phase II SBIR work.
Problems Solved
Provides for the rapid procurement of the production and/or delivery of products, and/or services stemming from SBIR/STTR investments.
Provides options for acquisition programs to adapt or further develop previously developed internal or cross agency technology.
Reduces duplication of effort, building on previous investment.
Offers opportunity to cross-pollinate or develop lateral applications of innovative technologies into new markets.
Enables “bridging the gap” between R&D and commercialization.
Reduces pre-award administrative effort and award development time.
Benefits of Use
Flexible and rapid access to promising R&D investments
Any agency, including non-SBIR agencies, can issue a Phase III award.
Awards can be based on either a SBIR/STTR Phase I or II award.
There is no limit on number, duration, contract type, or dollar value of Phase III awards, and there is no time limit by which a Phase III award must be made following a Phase I or Phase II award.
Agency is not required to execute a sole source justification under FAR Part 6 or publicize a planned or executed sole source award under FAR Part 5 if the award is issued under the authority of 15 U.S. Code § 638(r)(4).
Phase III awards may be issued to other-than-small businesses.
Reduced technical risk and delivery time
Proof of concept already established.
Prototype or working model may have been developed.
Testing and evaluation is likely to have been accomplished.
Adaptions to an existing system or component can reduce development effort.
Incremental improvements to address key performance parameters can yield alternative and/or cheaper innovative solution.
Small Business Benefit
Reduces barriers to entry helping disadvantaged, woman owned, and other small businesses concerns (SBC) become established sources for the Federal government.
Provides capital to help SBC’s “bridge the gap” between R&D and the commercial marketplace.
Expands marketplace options to SBCs.
Use Case and Documentation
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