Transcript of "Ohio Research Commercialization Grant Program"
Ohio Research Commercialization Grant Program
Fiscal Year 2008
Request for Proposals (RFP)
• RFP Released – January 11, 2008
• Bidder’s Conferences – 9:00 AM, January 25, 2008
TechColumbus, 1275 Kinnear Rd., Columbus, OH
• Letters of Intent due by 2:00 PM – February 8, 2008
• Written Questions – through March 13, 2008
• Proposals due by 2:00 PM – March 27, 2008
• Review and Award approximately – May 20, 2008
RFP Administered by:
The Ohio Department of Development
77 South High Street, 25th Floor
Columbus, Ohio 43215
TABLE OF CONTENTS
1. Statement of Solicitation 1
1.1 Introduction 1
1.2 The RFP Process 1
1.2.1 Release of RFP 2
1.2.2 Bidder’s Conference (Optional) 2
1.2.3 Letter of Intent 2
1.2.4 Questions and Answers 2
1.2.5 Submittal of Proposal 2-3
1.2.6 Review and Evaluation of Proposals 3
1.2.7 Recommendations, Decision, and Approvals 3
1.2.8 Award/Grant Agreement Preparation and Execution 4
1.3 Mandatory Compliance 4
1.3.1 Human and Animal Research 4
1.3.2 Obligations to State; Compliance with Laws 5
1.3.3 Other Compliance 5
2. Third Frontier Project 5
2.1 Background 5-6
2.2 Commercialization Framework 6-9
2.3 Commercialization Questions 9-10
3. Program Description 11
3.1 Purpose 11
3.2 Goals and Objectives 11-12
3.3 Eligibility 12
3.3.1 Technology Subject Matter 12
3.3.2 Lead Applicant 12-14
3.3.3 Collaborators and Committed End-Users 14
3.4 Funding 14
3.5 Cost Share Requirements 14
3.6 Term of Project 14
4. Evaluation Criteria 15
Ohio Third Frontier Research Commercialization Grant Program
TABLE OF CONTENTS
5. General Proposal Requirements 15
5.1 General Instructions 15-16
5.2 Trade Secret Information 16-17
5.3 Order and Content of Proposal Sections 17
5.3.1 Application Information Page 17
5.3.2 Trade Secret Information 17
5.3.3 Lead Applicant Information 17
5.3.4 Abstract 17
5.3.5 Table of Contents 17
5.3.6 Proposal Narrative 17-18
5.3.7 Commercialization Strategy 19-20
5.3.8 Projected Economic Impacts 20
5.3.9 Budget 20-21
5.3.10 Past Performance on Prior TFP Awards 21
5.3.11 Linkage to Prior TFP Investments 21
5.3.12 Experience and Qualiﬁcations 21-22
5.3.13 Collaborator Information/Letters of Commitment 22
5.4 Page Limitations 23
C. Evaluation Criteria
D. Ineligible Costs
Ohio Third Frontier Research Commercialization Grant Program
Ohio Research Commercialization Grant Program
Fiscal Year 2008
Request for Proposals (RFP)
1. Statement of Solicitation
This Request for Proposal (RFP) is being issued for grants to be awarded under the Third
Frontier Project (TFP). The Third Frontier Commission (TFC) reserves the right to fund any
Proposal in full or in part, to request additional information to assist in the review process,
to accept new Proposals from interested parties, to reject any or all Proposals responding
to this RFP, and to re-issue the RFP and accept new proposals if the TFC determines that
doing so is in the best interest of the State of Ohio. Issuing this RFP does not bind the State
to make an award of Grant Funds. Any award of Grant Funds in respect of this RFP will be
subject to availability of funds as provided in Ohio Revised Code Section 126.07.
All capitalized words and phrases not otherwise deﬁned in this RFP have the meanings
given them in Appendix A – Deﬁnitions.
All costs incurred in preparation of a Proposal shall be borne by the Lead Applicant.
Proposal preparation costs are not recoverable from Grant Funds. The State shall not
otherwise contribute to or be liable for the costs of Proposal preparation.
If requested, Lead Applicants must attend the TFC meeting at which Proposals will be
considered for funding. The funding decisions of the TFC are ﬁnal. All Lead Applicants will
be notiﬁed of the outcome of their applications after the TFC makes its funding decisions.
Award of Grant Funds is subject to approval of the State’s Controlling Board. If requested,
Lead Applicants selected by the TFC for funding must attend the Controlling Board meeting
at which their applications for funding are to be considered.
The Ohio Department of Development (ODOD) administers this RFP. ODOD reserves the
right to adjust the dates for this RFP for whatever reason it deems appropriate. The ODOD
Technology Division will administer all grants made under this RFP.
1.2 The RFP Process
The RFP process will consist of the following steps:
• Release of RFP
• Bidder’s Conference (Optional)
• Letter of Intent
• Questions & Answers (Q&A)
• Submittal of Proposals
• Review and Evaluation of Proposals
• Recommendations, Decisions and Approvals
• Award and Grant Agreement Preparation and Execution
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Each of these steps is discussed below.
1.2.1 Release of RFP
This RFP will be released by publication on the TFP website www.thirdfrontier.com.
1.2.2 Bidder’s Conference (Optional)
A Bidder’s Conference will be held regarding this RFP. Attendance is encouraged,
but is not mandatory. The conference will include a presentation by ODOD covering
the intent and purpose of the RFP, the requirements of the RFP, and the evaluation
process that will be used to determine awardees. Prospective Lead Applicants may
submit written questions regarding the RFP to ODOD staff at the Bidder’s Conference.
Answers to such questions will be provided at the Bidder’s Conference and posted
on the TFP website.
1.2.3 Letter of Intent
A prospective Lead Applicant must submit a Letter of Intent (LOI) as a condition to
submitting a Proposal. The LOI must include the following information: the
prospective Lead Applicant’s name, address, phone number; contact person,
including e-mail address for the contact; proposed Project title, estimated Grant
Funds to be requested, known Collaborators, and a one page summary of the
proposed Project. Submitting an LOI does not obligate the prospective Lead
Applicant to submit a Proposal. A Proposal will not be reviewed unless an LOI for
such Proposal has been submitted by the LOI deadline.
ODOD will issue to each prospective Lead Applicant that submits an LOI an
identiﬁcation number for the anticipated Proposal. The identiﬁcation number must
appear on the Application Information Page of the Proposal. See Appendix
B – Forms.
The LOI must be submitted by e-mail and received before the LOI deadline. The
e-mail should be addressed to: 2008_ORCGP_RFP@odod.state.oh.us with “2008
ORCGP LOI” appearing in the subject line.
1.2.4 Questions and Answers
All questions regarding this RFP must be submitted in writing via e-mail. Substantive
questions and answers will be posted in a Frequently Asked Questions section at the
TFP website. Questions should be sent to 2008_ORCGPP_RFP@odod.state.oh.us with
a subject line “ORCGP Q&A”. ODOD reserves the right to edit questions for brevity and
clarity and to consolidate the same general question if received from more than one
prospective Lead Applicant. Do not contact ODOD staff or TFC members directly with
questions regarding this RFP.
1.2.5 Submittal of Proposal
It is the responsibility of each Lead Applicant to ensure that ODOD’s Technology
Division receives Proposals at the prescribed place and by the submission deadline.
Late Proposals will not be reviewed.
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A Lead Applicant must ensure that a Proposal submitted in response to this RFP
complies with all the requirements set forth in the RFP. All Lead Applicants are
advised to read this RFP carefully to ensure a complete understanding of the
Proposal requirements. In particular, the form, format, and content of all Proposals
must follow the directions provided in Sections 3, 4 and 5 and use the forms
presented in Appendix B.
All Lead Applicants are hereby advised that there will be no opportunity to correct
mistakes or deﬁciencies in a Proposal after the submission deadline. The Lead
Applicant is solely responsible to ensure its Proposal is complete, accurate, responsive
to the requirements of the RFP, and received by the ODOD Technology Division on
Incomplete Proposals and those not complying with the requirements of the RFP
may, at the discretion of ODOD, be excluded from evaluation or evaluated as
1.2.6 Review and Evaluation of Proposals
All Proposals are subject to an administrative review during which the Proposals
are screened for compliance with RFP requirements. Proposals found not to comply
with the RFP requirements may be eliminated from the competition and not
ODOD uses external reviewers to read, evaluate, and rank the Proposals on their
merits. The external reviewers will evaluate the Proposals based on the
requirements, objectives, and criteria discussed in Sections 3, 4, and 5.
Prior to review, ODOD will implement a process with external reviewers to identify
potential conﬂicts of interest on the part of individual reviewers and will take such
steps as ODOD determines appropriate to avoid any such conﬂict.
External reviewers will create a rank-ordered list of Proposals recommended for
funding, prepare a written set of comments about each Proposal, and brief ODOD
staff about the risks and beneﬁts of each Proposal.
ODOD reserves the right to require interviews of potential awardees.
1.2.7 Recommendations, Decision, and Approvals
Based on the evaluation, a rank-ordered list of the most competitive Proposals will
be prepared by ODOD and forwarded to the TFC. The TFC will take into account the
evaluations made during the review process and ODOD staff recommendations and
will exercise its independent judgment in making its selection. The funding
decisions of the TFC are ﬁnal. If requested, Lead Applicants must attend the TFC
meeting at which Proposals are considered for funding.
All Lead Applicants will be notiﬁed of the outcome of their applications after the
TFC makes its funding decisions.
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1.2.8 Award and Grant Agreement Preparation and Execution
Awards of Grant Funds will be made based on Proposals as submitted (including
such modiﬁcations as may be agreed by the Lead Applicant), the Project budget,
and any conditions set forth by the TFC. The grant will remain open for the duration
of the Project, plus a three-year reporting period during which annual reports are
required to be submitted to ODOD.
Following selection by the TFC, an award of Grant Funds must be approved by the
State’s Controlling Board, a legislative body that reviews appropriation of State
funds. ODOD will request Controlling Board review as soon as possible after the
TFC funding decision. The Controlling Board process normally takes a minimum of
thirty (30) days to complete.
ODOD will prepare a Grant Agreement. The Grant Agreement will incorporate the
Proposal and Project budget, as either may have been modiﬁed by evaluation
ﬁndings, funding decisions, or other terms or conditions consistent with the
approval by the TFC. ODOD may require the Lead Applicant to provide cash ﬂow
projections on a quarterly basis.
Grant Agreements are sent to Lead Applicants for review and signature. ODOD
executes Grant Agreements on behalf of the TFC after the Grant Agreement is
accepted by the Lead Applicant. After ODOD executes the Grant Agreement, the
grant is entered on the State’s accounting system and invoices may be submitted.
After the Grant Agreement is fully-executed, the Lead Applicant will be considered
and referred to as a “Grantee.”
A Grantee is required to complete the Project as described in the Grantee’s Proposal
as submitted and with only those modiﬁcations as agreed by the Grantee and
ODOD in ﬁnalizing the Grant Agreement. ODOD will assign a Program Administrator
who will work with the Grantee throughout the Project Period. ODOD staff and the
Grantee will develop a series of performance metrics that will be used to measure
progress on the grant.
All Grantees will be required to submit to ODOD required quarterly progress and
metrics reports, as well as invoices and expenditures reports, to document achievement
of Project milestones, to report Project-related success stories, and to submit post-
Project completion annual reports for a period of three (3) years. All reports and
invoices will be submitted in the form and format required by ODOD from time
1.3 Mandatory Compliance
The following restrictions apply to all Third Frontier Projects:
1.3.1 Human and Animal Research
For any Proposal that includes use of human subjects, the Lead Applicant’s and
each Collaborator’s human subject policies and procedures must comply with the
Code of Federal Regulations, Title 45, Part 46. For any Proposal that includes use of
animal subjects, the Lead Applicant’s and Collaborator’s animal subject policies
and procedures must comply with US Code, Title 7, Sections 2131-2156.
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1.3.2 Obligations to the State; Compliance with Laws
Grantees will be required to certify in the Grant Agreement that they do not owe:
(1) any delinquent taxes to the State or a political subdivision of the State; (2) any
moneys to the State or a state agency for the administration or enforcement of any
environmental laws of the State; and (3) any other moneys to the State, a state
agency or a political subdivision of the State that are past due, whether the
amounts owed are being contested in a court of law or not.
Grant Agreements will require Grantees to comply with all applicable federal, state,
and local laws in the performance of the Project. Grantees must accept full
responsibility for payments of all unemployment compensation, insurance premiums,
workers’ compensation premiums, all income tax deductions, social security
deductions, and any and all other taxes or payroll deductions required for all
employees engaged by Grantees on the performance of the work authorized by the
1.3.3 Other Compliance
Grant Funds may not be used for research involving tissue obtained from aborted
fetuses. (See Ohio Revised Code Section 2919.14, which prohibits use of tissue
from aborted fetuses.)
2. The Third Frontier Project
The TFP represents the State’s largest-ever commitment to technology-based economic
development. The TFP seeks to expand Ohio’s high-tech research capabilities, promote
technology commercialization and innovation, create technology-based businesses, and
create high-paying jobs for generations to come. The ten-year, $1.6 billion State of Ohio
initiative is designed to:
• Increase the quantity of high quality research that has commercial relevance
• Expand the availability of investment capital needed to form and grow new
• Grow and nurture an increasingly experienced pool of entrepreneurial management
talent supported by organized systems of services and networking;
• Expand the availability of capital and assistance to support product innovation
in established companies; and
• Attract new-to-Ohio company activity that grows and strengthens the function
of speciﬁc clusters of excellence.
The TFC has overall responsibility for the TFP. In addition, a 16-member Third Frontier
Advisory Board (TFAB) of leaders from industry, academia, and government was created to
provide advice and counsel to the TFC.
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The TFC and TFAB developed the following strategic operating guidelines that provide the
framework for awarding TFP grants:
• Support the best the State has to offer, not just regions of the State;
• Anticipate and act on market opportunities;
• Demand strong industry involvement;
• Invest at the intersections of core competency areas;
• Recruit world-class talent and high-growth companies;
• Engage regional partners;
• Emphasize accountability and use of metrics.
These strategic operating principles should be consulted and applied in the formulation of
all Proposals submitted for TFP grants.
The TFC also made the decision to focus TFP investments in the following priority areas:
1) research and commercialization collaborations; 2) entrepreneurial support; 3) product
development assistance; and 4) company attraction.
Further, the TFC determined that the TFP should be focused in the Information Technology,
Instruments-Controls-Electronics, Biosciences, Advanced Materials, and Power and Propulsion
2.2 Commercialization Framework
All TFP Programs share a common goal – to promote technology-based economic
development within Ohio by funding activities that move technology from ideas to market.
This goal requires the State to design programs, evaluate Proposals and Projects, leverage
resources, and provide management oversight within the context of a commercialization
framework. The ODOD has adopted the Technology Commercialization Framework based
on an extensive literature review on the subject. The framework is depicted in Figure 1.
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Figure 1. Technology Commercialization Framework
The Process of Technology Commercialization
Phases of Development to Create Proof
IMAGING INCUBATING DEMONSTRATING MARKET ENTRY GROWTH &
the Commercial to Deﬁne Products & Processes to Prove Commercial SUSTAINABILITY
Opportunity Commercializability in Commercial Viability to Generate
Context Financial Returns
Mobilizing Mobilizing Mobilizing Mobilizing
Resources for Resources for Resources for Resources for
Incubating Demonstrating Market Entry Growth &
Transition to Mobilize Resources
Valley of Death
New R&D Center Cost Share
Fuell Cell / Advanced Energy
Targeted Industry Attraction
The FY 2008 TFP RFP’s have been placed in the stages of commercialization as shown above.
Key characteristics of the framework include ﬁve major phases of commercialization and the
transitions that must occur as a technology moves from phase to phase. Within each phase, work
must be accomplished to produce the technical and commercial proof or evidence required by the
resource providers who may fund the next phase. A description of these phases is presented in
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Figure 2. Summary of Commercial Phases
Phase Technology-Related Activities Status of Commercial Concept
Imaging The Imagining Phase begins with During the Imagining Phase, the
the techno-market insight - the linking, commercial concept is highly
if only in concept, of a technology speculative. Often, the concept is
and a market opportunity. Activities only supported by conjecture
focus on the generation of a “proof regarding the potential of the
of principle” generally deﬁned as
, technology and the market
the demonstration in a laboratory opportunity.
setting of critical components of the
Incubating The Incubating Phase activities focus During the Incubating Phase, the
on deﬁning product performance participants begin to validate the
speciﬁcations, and then validating commercial concept, primarily
technical capabilities in the context through secondary research.
of proposed performance Because the commercial concept
speciﬁcations. lacks market conﬁrmation and is still
highly speculative, written descriptions
of the business are often titled
“Commercial Concepts” rather than
“Business Plans” .
Demonstrating During the Demonstrating Phase, During the Demonstrating Phase,
project teams attempt to generate participants focus on generating
technical proof within a more data regarding market acceptance
deﬁned commercial context. – which customers will buy the
Activities focus on product product at or near the price required
development and market by the business plan. Participants
acceptance. Working prototypes, then use the characteristics of the
performance to commercial product / prototype and the market-
speciﬁcations, and manufacturability generated data to create a business
within deﬁned cost and quality plan that deﬁnes the commercial
standards characterize the goals on opportunity.
the technical side. On the market
side, Demonstrating Phase activities
focus on generating evidence that
customers will buy the product.
Market Entry In the Market Entry Phase, participants In the Market Entry Phase, the
enter the market to validate the opportunity is generating direct
commercial opportunity. Activities feedback from the market, measured
are those typically associated with in terms of sales, revenue, margins
an ongoing business – production, and growth.
service, distribution, sales and
marketing. The technology is
embedded in a product or service
and the opportunity has attracted
the resources necessary to expand
marketing, sales, and service.
Growth & The Growth & Sustainability Phase In the Growth & Sustainability Phase,
Sustainability involves the execution of a the goals, value creation mechanisms
comprehensive business plan to and resource providers are those
increase market share and/or total generally associated with a thriving
revenue and proﬁt in context of a business seeking to identify
self-sustaining business. opportunities for growth and
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Given the multiple phases and non-linear nature of the commercialization process, a
challenge for the TFP is to answer for each Project the question – “Is progress being
made?” To address this critical issue, a measurement system is required. The measurement
framework includes three categories of metrics – Level A Metrics, Level B Metrics, and
Level C Metrics.
• Level A Metrics are synonymous with a Transition. The occurrence of a Transition
(attracting the resources required to engage in the next Phase of commercialization)
is the best evidence that a Project is successfully progressing towards
• Level B Metrics are tangible evidence that a Project is on the path to achieving
Level A Metrics. As an example, a Level A Metric for a Project in the Demonstrating
Phase would be an investment by a venture capital fund to provide the resources
necessary to engage in Market Entry Phase activities. A Level B Metric for this
Project might include the receipt by the Project of a term sheet detailing a potential
investment, or even a commitment by the venture capital ﬁrm to engage in a de
ﬁned set of diligence-related tasks within a relatively short time period.
• Level C Metrics measure activities and are the equivalent of “Project milestones.”
These activities (e.g., hiring qualiﬁed personnel, preparing patent applications,
preparing a business plan, achieving certain technical milestones, etc.) are often
critically important, but do not represent evidence of progress toward the goal of
Transition or commercial success. Rather, they indicate that the participants are
executing their plan.
In evaluating Proposals, ODOD will assess the Lead Applicant’s integration of the A, B, and
C Metrics concept into day-to-day Project management and into the performance evaluation
sections of the Proposal. The Commercialization Framework will be discussed at the
Bidder’s Conference prior to Proposal submission. Post-award, ODOD will conduct a series
of meetings to help all Grantees integrate the metrics framework into their actual Project
execution. ODOD, using the Grant Agreement and the activities of our Program Administrators,
will manage grants and investments in accordance with an agreed set of A, B, and C metrics.
A more extensive discussion of the Technology Commercialization Framework is found on
the TFP web site at:
2.3 Commercialization Questions
Most TFP Programs are focused on the imagining, incubating, and demonstrating phases
of the commercialization framework. The following guide is useful in identifying the type of
work normally associated with these phases and may be helpful to a Lead Applicant in
determining into which phase their work falls.
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• Developing an understanding of the basic science behind the technology;
• Developing a ﬁrm understanding about how and why the technology works;
• Developing a laboratory proof of principle;
• Assessing the work needed to achieve reduction to practice;
• Investigating the Lead Applicant’s freedom to operate within its targeted
markets and constraints associated with existing patents or other forms of IP;
• Developing its own intellectual property (IP) strategy for this technology.
• Performing work to understand and adapt the technology to market needs;
• Conﬁrming the company has the freedom to operate;
• Acquiring adequate IP protection for the technology and related applications to
allow for market introduction;
• Completing the reduction to practice and producing a working model based on
well-deﬁned and unchanging speciﬁcations;
• Producing product designs and production processes that support the manufacture
of a reliable product.
• Finalizing technical product speciﬁcations;
• Developing a well-deﬁned stage gate process to support the management of
the design and development process;
• Establishing the reliability of the technology as embedded in a commercial
• Incorporating feedback from lead users into the design based on alpha and beta
versions of the technology;
• Producing pilot runs that demonstrate functionality consistent with the product
• Securing facilities adequate for near-term production.
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3. Program Description
The Ohio Research Commercialization Grant Program (ORCGP) was created as part of the
Ohio Third Frontier Project to support the commercialization of new products and services
derived from Small Business Innovation Research (SBIR), Small Business Technology
Transfer (STTR) and Advanced Technology Program (ATP) research and development projects.
The Phase II SBIRs and STTRs are designed to develop commercial prototypes of products
employing advanced technology. Similarly, the ATP program is designed to support
research into technologies with potential commercial applications. None of these
programs, however, allow small businesses to recover certain types of costs associated
with commercializing their technology. Ohio designed the ORCGP to speciﬁcally provide
a source of funding to cover commercialization expenses and to accelerate the time to
commercial market entry of products derived from SBIR, STTR, and ATP funding. The
ORCGP is a ﬂexible source of funding to ensure that research and development efforts by
Ohio small businesses result in commercial products that improve their top line revenue.
Ohio small businesses are strong participants in the SBIR, STTR, and ATP programs. Since
the SBIR program began in 1983, Ohio companies have won more than 2,400 SBIR and
STTR awards valued at more than $728 million. In federal ﬁscal year 2006, Ohio companies
received 302 SBIR and STTR awards valued at more than $92 million. The ORCGP directly
leverages these awards and encourages the recipients to continue their commercialization
The 2008 ORCGP program marks the fourth year for this program. To date, approximately
thirty-six awards have been made totaling more than $8 million in Third Frontier funding.
Awards have been made to support a variety of projects that range from a wireless biometric
monitoring system, to advanced composite materials for ballistic armor, to an automatically
dimming rear view mirror based upon liquid crystal technology.
3.2 Goals and Objectives
The goal of the ORCGP is to make Ohio the national leader in accelerating the movement
of new technology-based products developed by Ohio small businesses to the commercial
market in sectors important to the Ohio economy. Speciﬁc objectives of the ORCGP are:
• To create substantial economic value to Ohio within the next three years as a result
of R&D funding from the U.S. government;
• To support Ohio’s small business enterprises as they commercialize new products
within the next three years;
• To fund discrete commercialization activities that stand as barriers to Ohio small
businesses that have validated technologies through SBIR, STTR, or ATP programs.
The successful Lead Applicant will have used a Phase II SBIR, Phase II STTR or the ATP
program to develop prototype technology-based products that have commercial potential.
Technology products should already be in either the demonstrating stage or in ﬁnal
incubating stage of the commercialization framework. The ORCGP is not a research and
development program, but rather a source of funding to accelerate the commercialization
and market entry of technologies.
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ODOD will measure the performance of the ORCGP grant recipients on the basis of their
ability to satisfy the technical work plan proposed and to acquire sufﬁcient additional ﬁnancial
resources to continue the commercialization activities beyond the ORCGP funding.
ODOD will consider projects successful (level A metric) if, at the proposed project’s
completion, the Lead Applicant has been able to raise capital, whether that capital comes
from a source internal to the collaboration or external through additional grants, contracts,
or debt or equity ﬁnancing to ﬁnance the next stage of commercialization. Achieving
externally validated technical evidence and a compelling business case necessary to secure
additional ﬁnancing is a signiﬁcant accomplishment indicating that the applicant is on the
path toward commercialization (level B metric). Successful accomplishment of development
tasks is deemed to indicate that the Lead Applicant is performing the proper activities to
eventually achieve commercial progress (level C metric).
3.3.1 Technology Subject Matter
The Ohio Research Commercialization Grant Program is requesting proposals for
technologies in any of the Third Frontier technical focus areas—instruments-
controls-electronics, biosciences, power and propulsion, information technology,
and advanced materials. The proposal must outline how the ORCGP funds will be
used to conduct commercialization activities including, but not limited to, the
• Intellectual property protection
• Market analyses
• Business development, marketing and sales
• Cost engineering
• Product speciﬁc tooling
• Manufacturing scale-up planning
• Sourcing of materials, components, systems, or other business partners.
Proposals that include additional research and development activities will not
receive favorable consideration in the ORCGP evaluation.
3.3.2 Lead Applicant
An eligible Lead Applicant for this program must be a for-proﬁt company based
in Ohio or with a Principal Place of Business in Ohio, or an out-of-state for-proﬁt
company that pledges to locate a Principle Place of Business within Ohio as a pre-
condition to award.
Out-of-state Lead Applicants are eligible to receive awards, however no funds will
be distributed to an out-of-state Lead Applicant selected for award until the Lead
Applicant has a Principal Place of Business in Ohio and this obligation must be
fulﬁlled within 6 months of award notiﬁcation.
In all cases, the Lead Applicant must agree that a substantial portion of the project
activity and the beneﬁt from the project will occur in Ohio.
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The Lead Applicant must have received a federal SBIR Phase II, STTR Phase II or
ATP award since January 1, 2004, and have expended at least 75% of the federal
program dollars prior to submitting a Letter of Intent.
The technology for which State Grant Funds are being requested must be directly
related to the technology that was funded under the federal SBIR Phase II, STTR
Phase II of the ATP.
If the SBIR Phase II, STTR Phase II or ATP was awarded prior to January 1, 2004
and the Lead Applicant has made substantial commercial progress since its
completion, the Lead Applicant must ask for an exemption in the Letter of Intent
and provide evidence in the Letter of Intent that the Lead Applicant has continued
to commercialize the technology since the completion of the federal award. This
evidence may include, but is not limited to, debt or equity investments for
commercializing the technology and additional federal awards directly supportive
of the technology commercialization. Lead Applicants that apply for an exemption
will receive a deﬁnitive answer from ODOD approximately 3 to 5 days after LOIs
Applicants that have not yet completed their SBIR Phase II, STTR Phase II or ATP
must attach a copy of their last federal invoice to their LOI as proof that at least 75%
of the federal award has been expended.
Lead Applicants that are commercializing a medical device that will require FDA
approval must indicate in their LOI whether or not they have submitted for regulatory
approval. If they have not, then they must indicate when they plan to submit.
Those Lead Applicants that do not plan to submit for regulatory approval during
calendar year 2008 will be asked to wait until the following program year to submit
a proposal to this program.
There is no limit to the number of proposals that a single Lead Applicant may
submit. However, only one award per Lead Applicant will be made and that
decision will be made by ODOD based on the merits of the proposals as
determined by the ODOD external review team. The Lead Applicant must have a
federal tax identiﬁcation number.
Each Proposal must designate one Lead Applicant which will be responsible for the
administration of the Proposal should it be awarded. The Lead Applicant must also
serve as both administrative and technical director of the Project.
In the Abstract section of the Proposal (section 5.3.4), the Lead Applicant must
include a description of the Phase II SBIR, Phase II STTR, or ATP award upon which
the Proposal is based, as well as the status of that award, including the percentage
of the federal program dollars expended.
In the Problem Statement section of the Proposal Narrative (section 5.3.6), each
Proposal must provide the following details: the name of the federal program upon
which the Proposal is based (e.g., SBIR, STTR, or ATP); the year that the Phase II
SBIR, Phase II STTR, or ATP award was received; the name of the awarding federal
agency or department and branch, if applicable (e.g., Department of Defense/Air
Force); the dollar value of the Phase II or ATP award; the title of the Phase II or ATP
project; the name and contact information of the awarding agency’s program
Ohio Third Frontier Research Commercialization Grant Program 13
manager. In addition to this information, the proposal must also address the other
items described in the Problem Statement section of the Proposal Narrative.
Proposals must demonstrate both the ability and experience of the Lead Applicant
in commercializing products and the ability and experience of the Lead Applicant to
perform the work needed to produce evidence necessary to satisfy investors,
regulators, and the market.
Lead Applicants that become Grantees must maintain eligibility while the grant is
open. A Grantee that loses eligibility forfeits its award and must repay the State of
Ohio the full amount of the monies it has received, plus interest.
3.3.3 Collaborators and Committed End-Users
There is no requirement that the Lead Applicant enter into collaboration with any
other organization. However, all applicants are encouraged to be knowledgeable
of other Third Frontier funded resources and not request funding for activities that
are available through organizations that have acquired specialized facilities, equipment
or resources through previous Third Frontier or Edison Program investments.
Proposals may include one or more committed end-users. A committed end-user is
a business or governmental entity that has a commercial interest in, and can
anticipate commercial beneﬁt from, the results of the proposed Project. All committed
end-users must submit a Letter of Commitment signed by a representative authorized
to commit the end-user that describes the nature and value of the relationship with
the Lead Applicant. Committed end-users do not require designation on the
ODOD anticipates awarding up to $2 million in grants through the FY08 Ohio Research
Commercialization Grant Program. Individual awards will be made up to $350,000.
Awards under the ORCGP can be used for any purpose that supports commercialization of
a new technology-based product or service, except those items identiﬁed in Appendix D
that are expressly prohibited. It is anticipated that between ﬁve and eight awards will be
made in this funding round.
3.5 Cost Share Requirements
No cost share is required for the ORCGP awards. However, the evaluation of proposals will
include how realistic the Lead Applicant is with respect to estimating the total funding
required to commercialize the new product and service, and whether or not the Lead Applicant
has ﬁrm commitments for such funding. In the event that two applications score equally,
the amount of future resources committed to the project by the company, capital or
otherwise, may be used as a tiebreaker.
3.6 Term of Project
The term of ORCGP Grant Agreements will be ﬁve (5) years. The ﬁrst two (2) years will be
the Project Period during which the active work funded by the grant will take place. During
the remaining 3 years, annual reports detailing the overall status of research and
commercialization activities and the economic impacts of the Project will be required.
Ohio Third Frontier Research Commercialization Grant Program 14
4. Evaluation Criteria
Only the most meritorious proposals are sought for funding. Proposals passing the
administrative review will be evaluated by external reviewers based on responsiveness to all
the requirements of this RFP and to the evaluation criteria listed in Appendix D. Implicit in
those requirements and evaluation criteria is the quality of the work plan, budget and cost
share. The following criteria however, have been designated with the highest relevance to and
weighting for the ORCGP.
• Building on TFP Investments
• Consistency with State and Regional Priorities
• Degree of Customer Readiness
• Degree of Sustainable Competitive Advantage (Fly Wheels)
• Demonstrated Leadership Assets
• Identiﬁed Stage of Market Development
• Impact on Ohio
• Past Performance (if applicable)
• Potential for Leverage
• Potential for Products
• Size of Opportunity
• Vision for Success
More information on each of the above criteria, as well as other less relevant criteria, can be
found in Appendix D. All of the evaluation criteria have been designed to support the mission
and goals of the TFP and its various programs.
5. General Proposal Requirements
5.1 General Instructions
• Submit Letter of Intent and receive a Letter of Intent ID Number from ODOD.
• Submit separate Proposals for each proposed Project.
• Proposals must be submitted in the following manner:
- One original paper copy marked as “Original” and two additional paper
copies marked “Copy” and two CDs each containing a single PDF and a
single WORD®-compatible ﬁle of the Proposal.
• Proposals must be received at the location speciﬁed below before the RFP closes.
Proposals may not be submitted by fax or e-mail.
Ohio Department of Development
77 South High Street
Columbus, OH 43215
Attention: “ORCGP Program”
Ohio Third Frontier Research Commercialization Grant Program 15
• Proposals are to be submitted on 8.5 x 11-inch paper.
• Margins must not be less than 3⁄4 of an inch on all sides.
• Font must be 10 point or larger with no more than 6 lines per inch.
• All pages must be numbered consecutively using the format “Page [#] of [total
number of pages]” (e.g., Page 2 of 25).
• The Proposal title, Lead Applicant name, and Letter of Intent number must appear
at the bottom of each page.
• Proposals should not include color ﬁgures that cannot be understood when photo
copied in black and white.
• The ﬁrst page of the Proposal must be the Application Information Page.
• Do not include a cover or cover letter other than the Application Information Page.
• Proposals must be stapled once in the upper left hand corner and must not be
5.2 Trade Secret Information
All Lead Applicants are strongly discouraged from including in a Proposal any information that
the Lead Applicant considers to be a “trade secret,” as that term is deﬁned in Section
1333.61(D) of the Ohio Revised Code. All information submitted in response to this RFP is
public information unless a statutory exception exists that exempts it from public release. If
any information in the Proposal is to be treated as a trade secret, the Proposal must:
• Identify each and every occurrence of the information within the Proposal with
an asterisk before and after each line containing trade secret information and
underline the trade secret information itself.
• Check the “Trade Secret Information Included” box on the Applicant
• Include a page immediately after the Application Information Page that lists each
page in the Proposal that includes trade secret information and the number of
occurrences of trade secret information on that page.
To determine what qualiﬁes as trade secret information, refer to the deﬁnition of “trade
secret” in the Ohio Revised Code, which is reproduced below for reference:
D. “Trade Secret” means information, including the whole or any portion or phase
of any scientiﬁc or technical information, design, process, procedure, formula,
pattern, compilation, program, device, method, technique or improvement, or
any business information or plans, ﬁnancial information or listing of names,
addresses, or telephone numbers, that satisﬁes both of the following:
1. It derives independent economic value, actual or potential, from not being
generally known to, and not being readily ascertainable by proper means
by, other persons who can obtain economic value from its disclosure or use.
Ohio Third Frontier Research Commercialization Grant Program 16
2. It is the subject of efforts that are reasonable under the circumstances to
maintain its secrecy.
ODOD requires non-disclosure agreements from all non-ODOD persons who may have
access to Proposals containing Trade Secret Information, including evaluators.
5.3 Order and Content of Proposal Sections
5.3.1 Application Information Page
The ﬁrst page of the Proposal must be the completed Applicant Information Page
found in Appendix B to this RFP.
5.3.2 Trade Secret Information
This section of the Proposal must disclose any trade secret information included in
the Proposal. Follow the instructions in Section 5.2 of the RFP.
5.3.3 Lead Applicant Information
Complete and include the Lead Applicant Contact Information Page. One individual
may serve in more than one capacity.
Prepare an Abstract that summarizes the proposed Project and its expected
commercial and technical outcomes. This section should minimize use of jargon
and technical language and be written so that a non-technical person can under
stand it. This section will be used in public documents, including press releases,
and must be understandable by the general public. This section may not contain
any Trade Secret information.
5.3.5 Table of Contents
Prepare a Table of Contents with detail for three levels of headings in the Proposal.
All Lead Applicants must use the outline provided by ODOD for the level 1 and 2
headings. This section should also include a list of Charts, Figures, and Tables that
appear in the Proposal with a page number for each.
5.3.6 Proposal Narrative
The Proposal Narrative should address all the following items in the order presented.
• Understanding the Program Intent. This section must demonstrate the Lead
Applicant’s understanding of the purpose of the TFP, the speciﬁc role of this
RFP and how the proposed Project is consistent with these purposes. The Lead
Applicant should address the relationship between product and process
commercialization and the activities being proposed. The Lead Applicant must
demonstrate that the Proposal is responsive to the long-term purposes of the TFP.
• Problem Statement. This section must describe the technical and commercial
challenges to be addressed in the proposed Project and why solutions to these
challenges will increase the likelihood of successfully achieving commercialization
and other program objectives and goals. Evidence that the Lead Applicant
understands the eventual customer needs and performance requirements
Ohio Third Frontier Research Commercialization Grant Program 17
• Project Goals and Objectives. This section must clearly state the goals and
objectives of the proposed Project and each of its related sub-elements. The
goals should cover both the long-term commercialization purposes of the
proposed Project and other longer-term goals beneﬁcial to Ohio. The objectives
should be related to the research, development, and demonstration activities
that will be performed and how they are expected to provide the evidence and
proof needed to carry the technology forward into phases of the Technology
Commercialization Framework. The objectives should be expressed as Level
A, Level B, and Level C metrics as discussed in Section 2.2 and at the TFP
website posting of the Technology Commercialization Framework:
• Technical Approach and Work Plan. This section of the Proposal must
outline and discuss the overall activities that are proposed to meet the
proposed Project’s goals and objectives. Important research techniques,
methods, facilities, and equipment to be used in the proposed Project should be
discussed and compared to alternative approaches. Key factors that will
affect the success of the proposed Project should be identiﬁed as well as
signiﬁcant risk factors. The Lead Applicant may elect to organize the technical
approach according to different areas of investigation. This section of the
Proposal must also identify all the tasks and activities that will be performed
for each area of investigation. The tasks should be described in terms of their
speciﬁc objectives, approach, resources and outcomes. The description should
be detailed enough to provide a clear indication of how progress will be made
• Deliverables. This section must identify the deliverables from the proposed
Project. Deliverables will include tangible evidence of commercialization and
technical progress, mandatory reporting required by ODOD, and other
deliverables that the Lead Applicant deems signiﬁcant for measuring progress.
• Schedule. The Proposal must contain a schedule that graphically displays the
duration of tasks, interactions between the tasks, and the timing of deliverables
and other key milestones. This section should be based on weeks or months
from authorization to proceed, rather than any ﬁrm, ﬁxed calendar dates.
• Management Plan. This section must identify the Principal Investigator or Co-
Investigators and other Key Personnel who will be assigned to this proposed
Project, their roles and responsibilities, and the rationale for their selection for
key positions. One of the Key Personnel from the Lead Applicant must be
designated as the technical director while another or the same member of Key
Personnel must have the required skills and experience serve as
commercialization director. Overall, management should possess all the
required technical and commercial skills and experience needed for successful
execution of the planned scope of work. A short, one paragraph description
summarizing the technical and commercialization capabilities of the Co-
Investigators and other Key Personnel should be included. This section should
address how the Key Personnel will monitor and maintain progress, control
quality, resolve problems, and obtain advice on key decisions about the technical
and commercial dimensions of the proposed Project. This section should also
contain information about the management reporting structure among Key
Personnel and the Lead Applicant.
Ohio Third Frontier Research Commercialization Grant Program 18
5.3.7 Commercialization Strategy
The Commercialization Strategy must contain a discussion of the following
questions for each technology or area of investigation that is expected to lead to
new product opportunities:
• What is the market place need addressed by the technology?
• What alternatives exist to satisfy this need and what alternative approaches
are being investigated?
• What is the speciﬁc value proposition of the Lead Applicant’s proposed
approach and what are the differentiating beneﬁts associated with the
proposed technology? What evidence supports the contention that the market
values these beneﬁts?
• What is the market size and growth?
• What is the general magnitude of the investment that will be needed to bring
the product into the market? How long will the commercialization process take?
• What are the additional potential sources of investment capital that can be
used for ﬁnancing the market entry of the product?
• What are the roles and responsibilities of the Lead Applicant and any
Collaborators in the commercialization process?
• What type of business model (new company formation, license to an existing
company, etc.) does the Lead Applicant and partners expect to implement?
What are the strengths and weaknesses of the current Lead Applicant and
any Collaborators with respect to implementing this business model?
In preparing this section of the Proposal, the Lead Applicant must relate its
commercialization plans and strategy to the ODOD Technology Commercialization
Framework described in Section 2.2 of this RFP. In addition to the topics listed
above, the Lead Applicant should speciﬁcally address the following questions
about each product development opportunity that will be funded by the requested
• In which phase of the commercialization framework does each technology fall?
• What technical proof is required to convince additional investors to ﬁnance the
next stage of work?
• How much will it cost to complete the technical proof and will the State’s
funding be adequate? If not, where will additional investment come from and
does the Lead Applicant have a ﬁrm commitment of these resources?
• How much will it cost to perform the next phase of the commercialization
process and what organizations provide the types of resources the Lead
Applicant will need to conduct the next stage of the commercialization process?
Ohio Third Frontier Research Commercialization Grant Program 19
• Does the Lead Applicant have any commitments from potential resource
providers about their willingness to fund additional commercial phases?
These points will be used to establish the Level A and B metrics for the proposed
Project. “Success” is achieved if the Lead Applicant and Collaborators acquire the
resources needed to conduct the next phase of commercialization.
Management of IP is a key success factor. The Proposal should clearly deﬁne how
the Lead Applicant intends to manage new IP, describe how it will work with
technology transfer ofﬁces and Collaborators to establish ownership rights and
how it will work with Ohio-based companies and/or investors to realize positive
economic impacts from the business opportunities being realized and brought to
fruition in Ohio from this IP.
5.3.8 Projected Economic Impacts
In addition to the Level A, B, and C metrics, the Lead Applicant must provide
projected economic impacts estimating the employment, personal income, product
revenues and other monetary leverage (grants, contracts, equity infusions, etc.)
from the commercialization success of the technologies. The Proposal must contain
a realistic forecast of the direct employment, personal income, product revenue
and other leverage for two points in time - the ﬁrst being at the completion of the
active work on the Proposal and the second being ﬁve years thereafter. The Lead
Applicant should document how the projections were developed and key assumptions
used in the analysis. For example, if the projections are based on capturing a
particular share of the market, the Proposal should indicate the magnitude of the
market and the basis for the estimated market share. The Lead Applicant should
identify the impacts for each distinct product or product platform that will come
from the State investment. The Lead Applicant should report only direct impacts,
not secondary or tertiary impacts derived from economic models.
The Lead Applicant may describe a longer term forecast, in addition to the two
points required, if the Lead Applicant believes there will be substantial differences
in the employment, income, and revenue levels at later periods of time. Again, all
methods and assumptions should be described.
The Lead Applicant must retain a signiﬁcant percentage of the requested budget to
be spent in-house for the efforts of the Lead Applicant. No more than 20% of the
total direct State Grant Funds requested may be budgeted for indirect costs.
Budget Form 1 (Appendix B) is to be used to present the total two-year budget plan
for the funds requested by the speciﬁc use categories listed on the form. On the
bottom half of the form, estimate the allocation of funds by project areas. Generally,
these project areas will correspond to the developing technologies identiﬁed in the
Commercialization Strategy as discussed in section 5.3.7. However, there may be
additional project areas focused on supporting commercialization.
Please note that the Lead Applicant must identify its requirements for high
performance computing facilities and services, including hardware, software, and
infrastructure services in its Proposal. If a Lead Applicant’s computing requirements
exceed approximately $100,000 for a proposed Project, the Lead Applicant will
notify ODOD, and the Ohio Supercomputer Center may convene a panel of experts.
Ohio Third Frontier Research Commercialization Grant Program 20
The panel will review the Proposal to determine whether the Proposal’s
requirements can be met through Ohio Supercomputer Center facilities or through
other means and report such information to the TFC. All Lead Applicants are en
couraged to consult with the Ohio Supercomputer Center in advance of submitting
a Proposal with $100,000 or more in high performance computing facilities, equipment,
or infrastructure services.
Budget Form 2 (Appendix B) is to be used by the Lead Applicant. The total Grant
Funds requested in the Proposal must be represented on this form as the Grant
amounts that will be used by the Lead Applicant and Collaborators. The Subcontract/
Sub-grant line on this form refers to the funds provided to Collaborators by the
Budget Form 3 (Appendix B) is to be completed for each Collaborator. A Collaborator
is any entity that is receiving a Subcontract/Sub-grant from the Lead Applicant.
The total of the requested funds among the Collaborators’ budget forms must
equal the total corresponding amounts of the Subcontract/Sub-grant line reported
in Budget Form 2.
A Budget Narrative should also be included covering an explanation of the costs for
the State Grant Funds requested.
5.3.10 Past Performance on Prior TFP Awards
If the Lead Applicant has received a prior TFP Grant, then it must discuss in this
section the objectives, progress, achievements, and impact of the prior grant or
grants. Speciﬁc commercialization successes, leverage received, companies started
and attracted, and employment impacts should be noted. Any major technical ac
complishments can be highlighted in summary fashion. The past performance
must be of sufﬁcient detail that an external reviewer will be able to assess whether
the performance on each prior grant has been satisfactory.
5.3.11 Linkage to Prior TFP Investments
The Lead Applicant must include a section that describes how its Proposal relates
to prior TFP investments. This requirement extends to any Project funded by the
TFP regardless of whether the Lead Applicant or its Collaborators were involved.
The intent of this section is to understand how the proposed Project builds and
extends capabilities, capacities, and commercialization initiatives previously funded
by the TFP. If a proposed Project does not relate to any prior TFP investments, the
Lead Applicant must summarize why this proposed Project is of critical importance
to Ohio’s economic future.
5.3.12 Experience and Qualiﬁcations
The Proposal must contain a description of relevant organizational experience,
capabilities, facilities and equipment, and ﬁnancial conditions of the Lead Applicant
and Collaborators. Provide detail sufﬁcient to evaluate whether the Lead Applicant
and Collaborators have the direct experience needed to perform both the technical
and commercial work being proposed. The Lead Applicant should limit past project
experience to activities that have occurred within the past ﬁve (5) years.
Ohio Third Frontier Research Commercialization Grant Program 21
Biographical information is limited to no more than ten (10) individuals whom the
Lead Applicant considers key to the success of the Project. These ten (10) individuals
should represent the proposed Project’s leadership from the technical, commercial,
and managerial perspectives and ideally should be drawn from personnel of the
Lead Applicant as well as Collaborators. Biographical sketches shall be no more
than 1 page each and one sketch must be included for each Key Personnel up to the
total of ten (10) individuals. The biographical information should present the
relevant work history, technical experience, commercialization experience, project
management experience, educational attainment, honors and recognitions, and
selected recent publications that relate directly to the subject matter of the
proposed Project. If a key position is to be ﬁlled upon award of a Grant, please
provide either a job description for that position or a description of a candidate to
whom the Lead Applicant has made a contingent offer.
5.3.13 Collaborator Letters of Commitment
A Commitment Letter must be provided for each Collaborator identiﬁed in Budget
Form 3. The letters must:
• Be submitted on the letterhead of the Collaborator;
• Include the name of the Lead Applicant, the title of the Proposal, and the LOI
number assigned by ODOD;
• Brieﬂy state the nature of the collaboration;
• State the duration of the collaboration;
• State the resources the Collaborator is committing to the proposed Project;
• State how the proposed Project will contribute to the strategy of the Collaborator;
• State the speciﬁc amount of the commitment that matches the amount on
the corresponding Budget Form 3;
• State the source of the commitment;
• State when the committed resources will be available to the Lead Applicant;
• Be dated and signed by a representative of the Collaborator with the authority
to make the commitment.
Other letters of support are allowed but only if they come from a committed end-
user or industrial representatives who have a commercial interest in, and can
anticipate commercial beneﬁt from, the results of the proposed Project. These other
letters of support must describe the anticipated beneﬁt and what advice or support
the industrial representative will be providing in the way of market opportunities,
knowledge of competing technologies, technological and/or commercial hurdles for
the proposed Project, and parallel and supportive research efforts.
Ohio Third Frontier Research Commercialization Grant Program 22
5.4 Page Limitations
Any pages beyond the page limits listed below will be eliminated from the Proposal
before it is sent for technical review and evaluation. Except as otherwise noted,
appendices or other methods to augment the information presented in the Proposal are
not allowed. Reference to web-based information to supplement the Narrative is not
permitted and such references will not be considered in the evaluation.
• Abstract – 1 page (500 words)
• Proposal Narrative – 10 pages (excluding “References”)
• Commercialization Strategy – 5 pages
• Projected Economic Impact – 2 pages
• Budget – use speciﬁed forms
• Budget Narrative – 5 pages total
• Past Performance on Previous TFP Awards – 2 pages
• Linkage to Previous TFP Investments – 2 pages
• Experience and Qualiﬁcations – 5 pages total including the Lead Applicant and
• Biographical Sketches – 10 pages (A maximum of 10 biographical sketches of
Key Personnel and each bio is limited to 1 page)
Ohio Third Frontier Research Commercialization Grant Program 23
C. Evaluation Criteria
D. Ineligible Costs
Ohio Third Frontier Research Commercialization Grant Program
Ohio Third Frontier Research Commercialization Grant Program - Deﬁnitions
Collaborator – An individual not employed by or related to the Lead Applicant or an organization,
institution, company or other legal entity that is not an afﬁliate of the Lead Applicant which is
anticipated to receive State Grant Funds and/or is contributing to Cost Share.
Cost Share – See Appendix C.
Effective Date – The date upon which a Grant Agreement between a Lead Applicant and the State
of Ohio is effective.
Equipment – Any item of equipment which both costs $5,000 or more and has a useful life of more
than one year.
Grant Accounts – Accounts established and maintained by a Grantee to record separately in its
books and records receipt and use of Grant Funds and Cost Share.
Grant Agreement – A legal agreement setting forth the terms and conditions upon which Grant
Funds are awarded and the respective rights and obligations of the Lead Applicant and the State of
Ohio with respect to Grant Funds and the Project for which they are to be used.
Grant Funds – Financial assistance in the form of money awarded by a government agency to an
eligible applicant in order to accomplish a public purpose of support or stimulation of development
authorized by statute.
Indirect Cost – A cost that is incurred for common or joint objectives and therefore cannot be
identiﬁed readily and speciﬁcally with a particular sponsored project but nevertheless is necessary
to the operation of the organization. Also known as “Facilities & Administrative (F&A) cost.”
Key Personnel – Individuals from the Lead Applicant and/or Collaborators who represent a
Project’s leadership from the technical, commercial, and managerial perspectives.
Lead Applicant – The entity that submits a Proposal and will be legally and ﬁnancially responsible
for the administration of any resulting award of Grant Funds.
Principal Investigator or PI – The individual responsible and accountable for designing, conducting,
and monitoring the Project. “Co-Investigators” are two or more investigators who share the
responsibilities of a Principal Investigator.
Principal Place of Business – A facility located in the State of Ohio where the Lead Applicant, who
is registered with the Secretary of State to conduct business in Ohio, maintains physical operations
managed by a senior representative of the Lead Applicant who is authorized to make decisions
and to obligate the Lead Applicant and its resources. This facility must be owned by the Lead
Applicant or be subject to a lease, the balance of which matches or exceeds the term of the Grant
Period. The facility must be a recipient or beneﬁciary of a signiﬁcant amount of the funds awarded
to the Grantee.
Ohio Third Frontier Research Commercialization Grant Program A1
Program Administrator – Personnel of the Ohio Department of Development assigned to monitor
the progress of a Project awarded Grant Funds.
Project – The plan of activity or activities that make up the total scope of work for which an award
of Grant Funds is requested and for which a Proposal is approved.
Project Completion Date – The date by which the Grantee shall complete the Project and incur all
Project Period – The period of time from the Effective Date until the Project Completion Date.
Proposal – A proposal as submitted by a Lead Applicant seeking an award of Grant Funds in
response to a Request for Proposal issued for a particular Third Frontier Program.
Subcontract/Subgrant – A subcontract/subgrant is a legal agreement between a Grantee and an
individual or entity that has expertise in a particular area or access to specialized resources or
materials that the Grantee lacks. A subcontract/subgrant is identiﬁed in the proposal for
performance of a speciﬁc function.
Supplies – Materials, including equipment, which both costs less than $5,000 and has a useful life
of less than one year.
TFP Website – www.thirdfrontier.com
Ohio Third Frontier Research Commercialization Grant Program A2
Ohio Third Frontier Research Commercialization Grant Program - Evaluation Criteria
Ability to Compete Globally
In the context of marketplace and competition, the TFP must consider global trends and
characteristics. A Lead Applicant should demonstrate an understanding of the global
marketplace(s) and trends, competitor analysis and access and beneﬁts to marketplace(s). Particular
attention should be given to situations where initial markets and major competitors are global,
where other countries have committed major resources to this technology, and where barriers to
market entry favor international ﬁrms. Proposals will be evaluated on the basis of how well the
Lead Applicant understands and can compete for international business opportunities.
Building on TFP Investments
A Lead Applicant should generally demonstrate how its Proposal builds on prior investments
made by the TFP which are listed on the TFP website. When practical, a Lead Applicant should
demonstrate how its Proposal integrates with prior Projects. Examples could include use of
technology developed in TFP-funded work, utilization of equipment acquired previously and building
on platforms and capacities supported by previous investments. Proposals will be evaluated on
how well previous investments are integrated.
Consistency with Roadmaps for Success
A Lead Applicant should identify or reference technology roadmaps that present clearly identiﬁed
targets, goals and associated milestones and that includes indications of technical breakthroughs
that will lead to commercial success. The speciﬁc Project objectives and activities should be
related to the roadmap. Proposals will be evaluated on how well the proposed activities meet the
Consistency with State and Regional Priorities
Based on priorities for the TFP developed from the 2002 Battelle study, An Ohio Technology-Based
Economic Development Strategy, TFP investments should be focused on one or more of the
following priorities: increase the quantity of high-quality research that has commercial relevance
to Ohio; expand the availability of investment capital needed to form and grow new companies;
grow and nurture an increasingly experienced pool of entrepreneurial management talent
supported by organized systems of services and networking; expand the availability of capital and
assistance to support product innovation in established companies; and, attract new-to-Ohio company
activity that grows and strengthens the function of speciﬁc clusters of excellence. These State
priorities must be realized within the ﬁve technology areas of TFP focus: Advanced Materials;
Biosciences; Information Technology; Instruments, Controls and Electronics; and Power and
Propulsion. To the extent practical, Proposals involving technologies at the intersection of two or
more of the technical focus areas are preferred. Proposals will be evaluated on how well they align
with the State priorities.
Building on priorities identiﬁed in the 2006 Battelle study, Strategically Aligning Ohio’s Research
and Technology Portfolio, as well as the 2005 Deloitte study, Industry-Based Competitive Strategies
for Ohio, each of the six Ohio geography-deﬁned regions has identiﬁed key strengths and assets
for increased technology-based economic development that complement TFP investments.
Proposals will be evaluated on how a Lead Applicant’s Proposal ﬁts into the key priorities for
advancing economic development in one or more regions of the State. The Battelle and Deloitte
studies are available on the TFP website at:
Ohio Third Frontier Research Commercialization Grant Program C1
[Note: Regions are deﬁned in the 126th General Assembly’s Am. Sub. Senate Bill 236, which can
be found at: http://www.legislature.state.oh.us/bills.cfm?ID=126_SB_236. Regional priorities can be
found in the 2005 Deloitte study and abstracts from the FY 2007 Entrepreneurial Signature
Program Proposals. Both of these documents are available on the TFP website, www.thirdfrontier.com.]
Degree of Customer Readiness
All Lead Applicants are encouraged to deﬁne the needs and functionality of their technology,
especially by a Collaborator who is also considered a potential customer. Proposals will be evaluated
by how well the Lead Applicant builds customer inputs into the Proposal.
Degree of Sustainable Competitive Advantage (Fly Wheels)
Projects supported by the TFP must demonstrate that they ﬁt within, or can create, an environment
which enables Ohio to maintain a leading, competitive advantage. The advantage may be realized
through the State’s supply chain, labor base, research and other assets. Similarly, the advantage
may be created from the IP and knowledge of the Lead Applicant and its Collaborators which
provide assurance that commercialization will beneﬁt Ohio. Proposals will be evaluated on how
well their competitive advantage can be created and sustained beyond the two-year Project Period
without State Funds.
Demonstrated Leadership Assets
A signiﬁcant element cutting across all of the TFP evaluation criteria is the proposed Project’s
leadership. A Lead Applicant should demonstrate its commercialization, scientiﬁc, collaborative,
regulatory and programmatic leadership experience and assets. Leadership should be evident at
the individual, Key Personnel, corporate and Collaborator levels in all critical phases of the
proposed Project to include research, IP protection, regulatory compliance, product development,
leveraging of additional funding or investment capital, and commercialization. A Lead Applicant
should also demonstrate the highest level of support from both within its institution and a
proposed Project’s Collaborators, commitments of Cost Share and/or in-kind support, and other
evidence of committed support. Proposals will be evaluated on the basis of demonstrated leadership
skills of the Lead Applicant and its team members.
Existence of Supporting Workforce
Proposed projects should discuss the needs for workforce and whether Ohio’s workforce resources
are, or could be, a positive factor in achieving success. Proposals will be evaluated on the basis of
how closely matched the labor needs of the Project and Ohio’s workforce are to one another.
Identiﬁed Stage of Market Development
A Lead Applicant must place its proposed Project within the Commercialization Framework, as
described in Section 2.2 of the RFP, and compare the positioning of the proposed Project to the
intended placement of the ORCGP. A Lead Applicant should demonstrate an understanding of the
commercialization process, resource requirements for commercialization, the type of knowledge
that must be produced at the identiﬁed positioning stage, and who will likely be the next funding
providers for the subsequent stage. Proposals will be evaluated on the basis of how well the
proposed Project meets the strategic position of the ORCGP.
Impact on Ohio
Within the TFP, signiﬁcance is placed on the following key impact metrics: economic impact,
including job creation (for-proﬁt, not-for-proﬁt, retained); personal wealth (average salary of created
jobs); new sales of products; companies created or attracted to Ohio; follow-on investments (all
stages of venture capital) and the receipt of new public or private funding (federal, industry, other)
for sponsored research and technical services that ﬁt within the expressed mission of the proposed
Project; talent recruitment; and enhanced Ohio, national and/or international recognition, which
Ohio Third Frontier Research Commercialization Grant Program C2
leads to further interest and potential sources of funding and collaboration. The degree to which a
Lead Applicant demonstrates the proposed Project’s potential magnitude of impact will be evaluated.
Importance to Key Existing and Emerging Ohio Industry Drivers
An expectation of the TFP is that the differentiating beneﬁts associated with a proposed Project are
understood and that evidence can be presented to support the contention that an industry sector
of importance to Ohio values these beneﬁts. This includes a strong characterization and comparison
of the intended technology, application area, and market compared to competing technologies.
Proposals will be evaluated on the basis of the degree to which industrial support is demonstrated.
Involvement of Anchor Companies
Ohio has a wide array of companies providing highly valuable resources and assets to ongoing
research and development and commercialization activities related to and within the TFP and its
ﬁve key technology focus areas. These companies typically have a sizable market share, generate
substantial by-product outputs, are highly recognized for supplying industry-oriented product
improvements, can provide substantial market opportunities resulting from applied research and
development, and provide a signiﬁcant impact to the State’s economy. Proposals will be evaluated
on the basis of how well the Lead Applicant documents the presence of such anchors in Ohio and
how they will engage these market leaders.
Involvement of Statewide Research Capacity
A Lead Applicant must demonstrate that Ohio has a base of research excellence that will support
the future technological innovations required to fully realize the commercial potential. Proposals
will be evaluated on how well the Lead Applicant describes Ohio’s research capacities in relevant
ﬁelds and how well these resources are integrated into the Proposal and Project plans.
Level of Scientiﬁc Merit
Proposals are expected to address signiﬁcant scientiﬁc objectives which are original and innovative,
as well as employ novel concepts, approaches or methods. These objectives must be important to
the relevant discipline while having an impact on other disciplines. The proposed Project must hold
the potential for new discoveries and understanding, and advances beyond previous studies can be
expected with respect to accuracy, validity, sensitivity, comprehensiveness, and range. The proposed
Project must advance understanding and stimulate further modeling, theoretical descriptions and
discoveries as well as continued research and education. The focus of the proposed Project must be
unique and the reasons for it are convincingly described as it is unlikely that the desired knowledge
could be obtained in other ways. The proposed Project is scientiﬁcally and technologically feasible
and the conceptual framework, design, methods, and analyses are adequately developed, well
integrated, and appropriate to the objectives of the proposed Project.
Past Performance (if applicable)
Proposals from Lead Applicants that have previously received awards of TFP Grant Funds and that
seek follow-on funding to build on prior TFP grants must include a section about performance history
with each of their prior TFP grant(s). A Lead Applicant should discuss the objectives, progress and
achievements of the prior grant(s). Speciﬁc commercialization successes, leverage received,
identiﬁcation and protection of IP, companies started and attracted, and employment impacts
should be noted. Any major technical accomplishments can be highlighted in summary fashion.
The past performance should be adequate to enable an external reviewer who is not familiar with
the prior grant(s) to assess progress and independently evaluate the results.
Ohio Third Frontier Research Commercialization Grant Program C3
Potential for Leverage
Grantees are expected to leverage TFP grants with other sources of non-State funding. Performance
is evaluated and measured on the ability to acquire sufﬁcient additional ﬁnancial resources – such
as from federal agencies, industry organizations, and private investors – to continue the research
and commercialization activities during and beyond speciﬁc TFP funding. Goals and plans for
leveraging State Grant Funds will be considered in the evaluation process.
Potential for Products
When applicable, Proposals must identify focused commercialization opportunity areas that will
have signiﬁcant industry (i.e., market size and growth) and economic impacts that will have
near-term (within 3 years of the start of the Project Period) beneﬁt in Ohio in areas such as production,
licensing and spin-off technology opportunities. The proposed Project has already achieved at
least proof of principle. Technologies and products must have a competitive advantage over existing
and alternative technologies that can meet market needs and can lead to additional enabling
technologies and further discoveries. Proposals will be evaluated on their potential to result in
speciﬁc products that can be produced in Ohio.
Receptive Capital Markets
A Lead Applicant should discuss the potential for long-term ﬁnancing to support the growth of a
commercial enterprise. Evidence of interest in this technology by various sources of capital should
be provided. Proposals will be evaluated on the basis of the potential for future funding as
evidenced by the Proposal content.
Size of Opportunity
Among its many goals, the TFP is designed to build strong research and development collaborations
between Ohio’s colleges and universities, other non-proﬁt research institutions and companies.
These collaborations are intended to develop strategies for addressing research and development
and commercialization challenges and opportunities that will create signiﬁcant impacts for Ohio.
Collaborations and strategies are expected to lead to the advancement of scientiﬁc knowledge,
creation of globally competitive products and services, formation of new companies, attraction of
new companies and individuals, and the employment of signiﬁcant numbers of Ohioans.
Proposals must demonstrate that the market is of sufﬁcient size and has growth potential to
positively impact the State. Proposals will be evaluated on how well they assess the market and a
realistic assumption about the market share that potentially could be captured; potential
customers; competition and competing products; beneﬁcial impact on jobs, income, and business
formation support in Ohio; and secured additional non-State funding, including federal, industrial,
private and other investments.
Vision for Success
A Lead Applicant must present a realistic discussion of the ultimate goal and achievements for
the proposed Project. This vision should include identiﬁcation of eventual customers, uses of the
technology, relevance to key Ohio economic sectors and other factors. The vision should address
the question of why this technology and proposed Project is important for Ohio and how Ohio will
be able to assess progress toward the vision.
Ohio Third Frontier Research Commercialization Grant Program C4
Ohio Third Frontier Research Commercialization Grant Program - Ineligible Costs
Grant Funds may be used only for the Project for which the award is approved and consistent with
the terms and conditions of the Grant Agreement. Costs listed below are considered unreasonable
and ineligible for reimbursement from Grant Funds.
The costs of alcoholic beverages are ineligible.
Any losses arising from uncollectible accounts and other claims and related costs are ineligible
Contributions to a contingency reserve or any similar provision for unforeseen events are ineli-
CONTRIBUTIONS AND DONATIONS
Contributions and donations by the grantee to individuals or to other organizations are ineligible.
Costs of amusements, social activities, and incidental costs relating thereto, such as meals, alco-
holic beverages, non-business-related lodgings, rentals, non-business-related transportation, and
gratuities are ineligible.
FINES AND PENALTIES
Costs resulting from violation of or failure to comply with Federal, State and local laws and regulations
GOODS AND SERVICES FOR PERSONAL USE
Costs of good and services for personal use by the Grantee’s employees are ineligible regardless
of whether the cost is reported as taxable income to the employee.
The portion of the costs of Grantee-furnished vehicles that relates to personal use (including
transportation to and from work) is ineligible regardless of whether the cost is reported as taxable
income to the employees.
INTEREST, FUNDRAISING, AND INVESTMENT MANAGEMENT
Costs incurred for interest on borrowed money (except as permitted for equipment and space
costs) or interest for the temporary use of endowment funds, however represented, are ineligible.
A cost of organized fund raising, including ﬁnancial campaigns, endowment drives, solicitation of
gifts and bequests, and similar expenses incurred solely to raise capital or obtain contributions are
Costs of investment counsel and staff and similar expenses incurred solely to enhance income
from investments are ineligible.
Ohio Third Frontier Research Commercialization Grant Program D1
Legal services are ineligible for the areas described below:
1. Conviction, as used herein, means a judgment or conviction of a criminal offense by any
court of competent jurisdiction whether entered upon verdict or a plea including a
conviction, due to a plea of nolo contendere.
2. Costs, include, but are not limited to, administrative and clerical expenses; the cost of
legal services, whether performed by in-house or private counsel; the costs of the
services of accountants, consultants, or others retained by the institution to assist it;
costs of employees, ofﬁcers and trustees, and any similar costs incurred before, during,
and after commencement of a judicial or administrative proceeding that bears a direct
relationship to the proceedings.
3. Fraud, as used herein, means (i) acts of fraud or corruption or attempts to defraud the
government or to corrupt its agents, (ii) acts that constitute a cause for debarment or
suspension (as speciﬁed in agency regulations), and (iii) acts which violate the False
Claims Act, 31 U.S.C. sections 3729-3721, or the Anti-kickback Act, 41 U.S.C., sections 51
4. Penalty, does not include restitution, reimbursement, or compensatory damages.
5. Proceeding, includes an investigation.
B. Ineligible costs:
1. Costs incurred in connection with any criminal, civil or administrative proceeding
brought by the Federal government or a state, local, or foreign government are ineligible
if the proceeding relates to violation of, or failure to comply with, a Federal, state, local
or foreign statute, regulation or rule by the Grantee (including its agents or employees)
and results in one of the following dispositions:
a. In a criminal proceeding, a conviction.
b. In a civil or administrative proceeding, a determination on grantee liability or the
imposition of a monetary penalty.
c. A ﬁnal decision by an appropriate Federal or state ofﬁcial to debar or suspend the
Grantee, or to terminate an award by reason of a violation or failure to comply with a
law, regulation, or rule.
d. A decision by consent or compromise if the action could have resulted in any of the
dispositions described in (a), (b), or (c) above.
Ohio Third Frontier Research Commercialization Grant Program D2