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MIT Enterprise Forum Get Smart SBIR presentation


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This is my portion of a training seminar given as part of the MIT Enterprise Forum's Get Smart Program. I have allowed it to be downloaded as the links to funding agencies are live, although they may not be up to date.

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MIT Enterprise Forum Get Smart SBIR presentation

  1. 1. Get Smart: Government Grants - How to find them, Get them and Account for them<br />George Andyns, Sr. Consultant, CPA - Accounting Management Solutions <br />Kyle Meetze, Sr. Business Strategist – Partners/MGH; Res. Ventures & Licensing<br />Dawn Fitzgerald, Entrepreneur, Exec. Mgr., Engineer<br />Ian Carver, Director Business Development - Accounting Management Solutions <br />Date: Thursday, June 11th, 2009Time: 6:00 - 7:30 PM Location: Accounting Management Solutions , Waltham, MA<br />
  2. 2. Our Aim<br /><ul><li>Provide background on SBIR and STTR grants and tools for you to go forward;
  3. 3. Help you to locate and apply for opportunities that will further your business goals;
  4. 4. Inform you of some of the accounting peculiarities with grants.</li></li></ul><li>Overview of Govt. Grants<br /><ul><li>Grants and Contracts
  5. 5. Many types of grants
  6. 6. SBIR
  7. 7. STTR
  8. 8. Stimulus
  9. 9. Multi-year grants
  10. 10. i.e. NIH R01</li></li></ul><li>Grants vs. Contracts<br /><ul><li>Contracts
  11. 11. Conform to Federal Acquisition Regulations (FAR)
  12. 12. Competition In Contracts Act applies – no one-on-one discussions after the solicitation is “open”.
  13. 13. Traditionally are used when the Government is the direct beneficiary of the effort
  14. 14. Primarily DoD, NASA
  15. 15. Grants
  16. 16. Conform to and guided by individual CFRs for each agency
  17. 17. CICA does not apply
  18. 18. Traditionally are used where a third party benefits from the effort.
  19. 19. NIH, DOE, NSF </li></li></ul><li>What is the SBIR/STTR Program<br /><ul><li>A “set-aside” funding program for all federal agencies with extramural research budgets in excess of $100 million.
  20. 20. SBIR – 2.5% of extramural budget
  21. 21. STTR – 0.3% of extramural budget
  22. 22. SBIR: Small Business Innovative Research
  23. 23. Set-aside program for small business concerns to engage in federal R&D -- with potential for commercialization.
  24. 24. STTR: Small Business Technology Transfer
  25. 25. Set-aside program to facilitate cooperative R&D between small business concerns and U.S. research institutions -- with potential for commercialization.</li></li></ul><li>3 Phase System<br />Three Phases<br /><ul><li>Phase 1 – Proof of Concept/Feasibility
  26. 26. Typically $80 - $100k (NIH is the exception)
  27. 27. 6 months (12 months for STTR)
  28. 28. Phase 2 – Research and Development
  29. 29. Up to $750k for SBIR and $500k for STTR
  30. 30. 2 years and requires successful Phase 1
  31. 31. Phase 3 – Commercialization
  32. 32. Your money</li></li></ul><li>Eligibility<br />1.A. Eligible Institutions Only United States small business concerns (SBCs) are eligible to submit SBIR applications. A small business concern is one that, at the time of award of SBIR Phase I and Phase II, meets all of the following criteria:<br />1.  Is organized for profit, with a place of business located in the United States, which operates primarily within the United States or which makes a significant contribution to the United States economy through payment of taxes or use of American products, materials or labor;<br />2.  Is in the legal form of an individual proprietorship, partnership, limited liability company, corporation, joint venture, association, trust or cooperative, except that where the form is a joint venture, there can be no more than 49 percent participation by foreign business entities in the joint venture;<br />3.  Is at least 51 percent owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the United States, or it must be a for-profit business concern that is at least 51% owned and controlled by another for-profit business concern that is at least 51% owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the United States, except in the case of a joint venture, where each entity to the venture must be 51 percent owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the United States; and;<br />4.  Has, including its affiliates, not more than 500 employees.<br />SBCs must also meet the other regulatory requirements found in 13 C.F.R. Part 121. Business concerns, other than investment companies licensed, or state development companies qualifying under the Small Business Investment Act of 1958, 15 U.S.C. 661, et seq., are affiliates of one another when either directly or indirectly, (a) one concern controls or has the power to control the other; or (b) a third-party/parties controls or has the power to control both.<br />Control can be exercised through common ownership, common management, and contractual relationships. The term "affiliates" is defined in greater detail in 13 C.F.R. 121.3-2(a). The term "number of employees" is defined in 13 C.F.R. 121.3-2(t).<br />Business concerns include, but are not limited to, any individual (sole proprietorship), partnership, corporation, joint venture, association, or cooperative. Further information may be obtained by contacting the Small Business Administration Office of Size Standards (<br />One of the circumstances that would lead to a finding that an organization is controlling or has the power to control another organization involves sharing common office space and/or employees and/or other facilities (e.g., laboratory space). Access to special facilities or equipment in another organization is permitted (as in cases where the awardee organization has entered into a subcontractual agreement with another organization for a specific, limited portion of the research project). However, research space occupied by an SBIR awardee organization must be space that is available to and under the control of the SBIR awardee for the conduct of its portion of the proposed project. <br />Title 13 CFR 121.3 also states that control or the power to control exists when “key employees of one concern organize a new concern ... and serve as its officers, directors, principal stockholders, and/or key employees, and one concern is furnishing or will furnish the other concern with subcontracts, financial or technical assistance, and/or other facilities, whether for a fee or otherwise.” Where there is indication of sharing of common employees, a determination will be made on a case-by-case basis of whether such sharing constitutes control or the power to control.<br />For purposes of the SBIR program, personnel obtained through a Professional Employer Organization or other similar personnel leasing company may be considered employees of the awardee. This is consistent with SBA’s size regulations, 13 CFR 121.106 – Small Business Size Regulations. <br />Note regarding affiliation arising under stock options, convertible securities, and agreements to merge: In determining size, SBA considers stock options, convertible securities, and agreements to merge (including agreements in principle) to have a present effect on the power to control a concern. SBA treats such options, convertible securities, and agreements as though the rights granted have been exercised. See <br />All SBIR grant applications will be examined with the above eligibility considerations in mind. If it appears that an applicant organization does not meet the eligibility requirements, NIH will request a size determination by the SBA. If eligibility is unclear, NIH will not make an SBIR award until the SBA provides a determination. <br />Note: An applicant organization that has been determined previously by SBA to be “other than small” for a size standard of not more than 500 employees or for purposes of the SBIR/STTR program, must be recertified by the SBA prior to any future SBIR/STTR awards.<br />
  33. 33. Eligibility<br /><ul><li>Organized for- profit U.S. business
  34. 34. At least 51% U.S.-owned and independently operated
  35. 35. Small Business located in the U.S.
  36. 36. P.I.’s primary employment with small business during project
  37. 37. 500 or fewer employees</li></li></ul><li>Highlights<br /><ul><li>Eligibility is determined at time of award
  38. 38. No appendices allowed in Phase I
  39. 39. The PI is not required to have a Ph.D.
  40. 40. The PI is required to have expertise to oversee project scientifically and technically
  41. 41. Applications may be submitted to different agencies for similar work
  42. 42. Awards may not be accepted from different agencies for duplicative projects</li></li></ul><li>Highlights<br /><ul><li>SBIR Grants do not require a partner or an academic collaborator
  43. 43. Research Partnerships:
  44. 44. SBIR: Permits research institution partners [ ~ 33% Phase I and 50% Phase II R&D]
  45. 45. STTR: Requires research institution partners (e.g., universities) [ 40% small business and 30% research institution]
  46. 46. Principal Investigators
  47. 47. SBIR: Primary (>50%) employment must be with small business concern
  48. 48. STTR: Primary employment not stipulated</li></li></ul><li>Related SBIR Topics of Interest<br /><ul><li>Bayh-Dole Act Background by Stephen B. Rothman
  49. 49. March-in Rights by Stephen B. Rothman
  50. 50. Preference for United States Manufacturing by Stephen B. Rothman</li></li></ul><li>Which Govt. Dept. Participate?<br /><ul><li>Dept. of Agriculture:
  51. 51. USDA SBIR Home Page
  52. 52. Dept. of Commerce:
  53. 53. DOC-NOAA SBIR Page
  54. 54. DOC-NIST Home Page
  55. 55. Dept. of Defense
  56. 56. DOD SBIR Home Page
  57. 57. Air Force SBIR/STTR
  58. 58. Army SBIR/STTR
  59. 59. DARPA SBIR Program Home Page
  60. 60. DTIC-Defense Technical Information Center
  61. 61. MDA SBIR Program Home Page
  62. 62. DTRA-Defense Threat Reduction Agency
  63. 63. Navy SBIR/STTR
  64. 64. NGA-National Geospatial Intelligence Agency
  65. 65. SOCOM-Special Operations Command
  66. 66. Dept. of Education:
  67. 67. ED IES
  68. 68. ED OSERS / NIDDR
  69. 69. Dept. of Energy:
  70. 70. DOE SBIR Home Page
  71. 71. Department of Health & Human Services
  72. 72. NIH SBIR Home Page
  73. 73. Department of Homeland Security
  74. 74. DHS S&T Directorate
  75. 75. DHS DNDO
  76. 76. Dept. of Transportation:
  77. 77. DOT SBIR Home Page
  78. 78. Environmental Protection Agency:
  79. 79. EPA SBIR Home Page
  80. 80. National Aeronautics & Space Administration:
  81. 81. NASA SBIR Home Page
  82. 82. National Science Foundation:
  83. 83. NSF SBIR Home Page</li></li></ul><li>Agency Differences<br /><ul><li>R&D Topic Areas
  84. 84. Dollar Amount of Award (Phase I and II)
  85. 85. Receipt Dates / Number and Timing of Solicitations
  86. 86. Proposal Review Process
  87. 87. Proposal Success Rates
  88. 88. Type of Award (Contract or Grant)
  89. 89. Many other details:
  90. 90. Profit or fee allowed
  91. 91. Phase I to Phase II gap funding
  92. 92. Payment types and schedule</li></li></ul><li>When to start looking and applying?<br /><ul><li>Right now!
  93. 93. Most 2009 deadlines have passed, but they come at the same time every year.
  94. 94. Some agencies solicit ideas before they put out their RFPs</li></li></ul><li>Differences: NIH Deadlines<br />ORGANIZATIONS MUST REGISTER IN BOTH GRANTS.GOV and eRA COMMONS TO APPLY FOR MOST NIH GRANTS<br />* NIH, CDC and FDA now use the same three standard submission dates.CDC and FDA do not participate in the STTR program.<br />
  95. 95. Where to Start?<br /><br />
  96. 96. Additional info<br /><ul><li>Tutorial on completing the online forms:</li></ul><br /><ul><li>While searching make note of:
  97. 97. Funding Opportunity Number (FON)
  98. 98. Catalog for Domestic Assistance (CFDA) number</li></li></ul><li>Planning the process.<br /><ul><li>It is a long time horizon
  99. 99. Application deadline to funding is approximately 9 months.
  100. 100. If you have a business and/or project plan already, you should be able to respond within 1 month.
  101. 101. The information provided is not complicated, the process is.</li></ul>Never, never, never, count on this money!<br />
  102. 102. Where to go next?<br /><ul><li>Dept. of Agriculture:
  103. 103. USDA SBIR Home Page
  104. 104. Dept. of Commerce:
  105. 105. DOC-NOAA SBIR Page
  106. 106. DOC-NIST Home Page
  107. 107. Dept. of Defense
  108. 108. DOD SBIR Home Page
  109. 109. Air Force SBIR/STTR
  110. 110. Army SBIR/STTR
  111. 111. DARPA SBIR Program Home Page
  112. 112. DTIC-Defense Technical Information Center
  113. 113. MDA SBIR Program Home Page
  114. 114. DTRA-Defense Threat Reduction Agency
  115. 115. Navy SBIR/STTR
  116. 116. NGA-National Geospatial Intelligence Agency
  117. 117. SOCOM-Special Operations Command
  118. 118. Dept. of Education:
  119. 119. ED IES
  120. 120. ED OSERS / NIDDR
  121. 121. Dept. of Energy:
  122. 122. DOE SBIR Home Page
  123. 123. Department of Health & Human Services
  124. 124. NIH SBIR Home Page
  125. 125. Department of Homeland Security
  126. 126. DHS S&T Directorate
  127. 127. DHS DNDO
  128. 128. Dept. of Transportation:
  129. 129. DOT SBIR Home Page
  130. 130. Environmental Protection Agency:
  131. 131. EPA SBIR Home Page
  132. 132. National Aeronautics & Space Administration:
  133. 133. NASA SBIR Home Page
  134. 134. National Science Foundation:
  135. 135. NSF SBIR Home Page</li></li></ul><li>Who to apply to?<br />It is not always obvious!<br /><ul><li>DOD funds healthcare and education
  136. 136. USDA funds genetics
  137. 137. NASA funds healthcare, materials, electronics
  138. 138. They all fund IT</li></ul>The trick is to suit your idea to their need, or identify their need for your idea.<br />
  139. 139. Who to apply to?<br /><ul><li>NIH is the only “Open Topic” agency
  140. 140. All others have guidelines for topic submissions
  141. 141. This does require some legwork</li></li></ul><li>You’ve found the right agency and opportunity, now what?<br /><ul><li>Call the program manager listed on the solicitation topic.
  142. 142. Don’t be afraid to let them know you are a rookie.
  143. 143. Tell them about your company before you tell them about your idea.
  144. 144. Treat them like an investor!
  145. 145. Proposals are peer reviewed but they still make the funding decisions</li>