SBA's SBIR Policy Directive Changes - January 8, 2014
Unofficial Presentation by SBIR Insider - www.zyn.com/sbir
Phased Structure of the Program
Section (4)(b) Phase II
(b) Phase II.
(1) The object of Phase II is to continue the R/R&D
effort from the completed Phase I. Unless an exception set forth in paragraphs
(i) or (ii) below applies, only SBIR Phase I awardees are eligible to
Phases II and III. This includes those awardees
identified via a ``novated'' or ``successor in interest'' or similarly- revised funding agreement, or those that have
reorganized with the same key staff, regardless of whether they have been
assigned a different tax identification number. Agencies may require the
original awardee to relinquish its rights and interests in an SBIR project in
favor of another applicant as a condition for that applicant's eligibility to
participate in the SBIR Program for that project.
(i) A Federal agency may issue an SBIR Phase II award to an STTR Phase I awardee to further develop the work performed under the STTR Phase I award. The agency must base its decision upon the results of work performed under the Phase I award and the scientific and technical merit, and commercial potential of the Phase II proposal. The STTR Phase I awardee must meet the eligibility and program requirements of the SBIR Program in order to receive the SBIR Phase II award.
(ii) During fiscal years (FY) 2012 through 2017, the
National Institutes of Health (NIH), Department of Defense (DoD) and the
Department of Education may issue a Phase II award to a
small business concern that did not receive a Phase I award for that R/R&D.
Prior to such an award, the heads of those agencies, or designees, must issue a
written determination that the small business has demonstrated the scientific
and technical merit and feasibility of the ideas that appear to have commercial
potential. The determination must be
(2) Funding must be based upon the results of work performed under a Phase I award and the scientific and technical merit, feasibility and commercial potential of the Phase II proposal. Phase II awards may not necessarily complete the total research and development that may be required to satisfy commercial or Federal needs beyond the SBIR Program. The Phase II funding agreement with the awardee may, at the discretion of the awarding agency, establish the procedures applicable to Phase III agreements. The Government is not obligated to fund any specific Phase II proposal.
(3) The SBIR Phase II award decision process requires, among other things, consideration of a proposal's commercial potential. Commercial potential includes the potential to transition the technology to private sector applications, Government applications, or Government contractor applications. Commercial potential in a Phase II proposal may be evidenced by:
(i) The SBC's record of successfully commercializing SBIR or other
(ii) The existence of Phase II funding commitments from private sector or other non-SBIR funding
(iii) The existence of Phase III, follow-on commitments for the subject of the research;
(iv) Other indicators of commercial potential of the idea.
(4) Agencies may not use an invitation, pre-screening, or pre- selection process for eligibility for Phase II. Agencies must note in each solicitation that all Phase I awardees may apply for a Phase II award and provide guidance on the procedure for doing so.
(5) A Phase II awardee may receive one additional, sequential Phase II award to continue the work of an initial Phase II award.
(6) Agencies may
issue Phase II awards for testing and evaluation of products, services, or technologies for use in technical weapons systems.