Solicitations for contract actions expected to exceed $15,000 but not expected to exceed $25,000 are issued on SAM.gov.
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are highly competitive programs that encourage domestic small businesses to engage in Federal Research/Research and Development (R/R&D) with the potential for commercialization. Through a competitive awards-based program, SBIR and STTR enable small businesses to explore their technological potential and provide the incentive to profit from its commercialization. By including qualified small businesses in the nation's R&D arena, high-tech innovation is stimulated, and the United States gains entrepreneurial spirit as it meets its specific research and development needs.
Central to the STTR program is the partnership between small businesses and nonprofit research institutions. The STTR program requires the small business to formally collaborate with a research institution in Phase I and Phase II. STTR's most important role is to bridge the gap between performance of basic science and commercialization of resulting innovations.
SBIR Program - The SBIR Program was established under the Small Business Innovation Development Act of 1982 to increase the participation of small businesses in federal research and development. The goals of the program are: stimulate technological innovation while meeting Federal R&D needs; fostering and encouraging participation by socially and economically disadvantaged persons; and increasing private-sector commercialization of innovations derived from Federal R&D funding. To be eligible for SBIR opportunities, small businesses (500 employees or fewer) must be based in the U.S. and be at least 51% owned and controlled by U.S. individuals.
SBIR Three-Phase Process:
Phase I - The company must prove the feasibility of its concept within a six-month effort. For the Army SBIR program, the Phase I contract also includes an option which may be exercised by the Army to fund interim Phase II activities if the project is selected to receive a Phase II award. The option is intended to fund initial Phase II activities for up to four months while the Phase II contract is being negotiated, providing critical continuity to the company's overall SBIR effort.
Phase II - Successful Phase I companies may submit a Phase II proposal. Phase II is a substantial R&D effort, spanning two years, and is intended to result in a dual-use prototype product or service meeting the requirements of the original BAA topic and which can be made commercially viable. Additional funding options may be available during the Phase II process.
Phase III - Phase III is the goal of every SBIR effort, and represents the commercialization phase of the program. In Phase III, the successful company markets the products or services developed in Phase II, either to the government or in the commercial sector. No SBIR funds can be used in Phase III. The intention of the program is that each company receiving an investment of SBIR funds during Phases I and II should now be prepared to compete in the commercial marketplace in Phase III.
STTR Program - The STTR Program was established under the Small Business Research and Development Enhancement Act of 1992.
The STTR Program was established as a companion program to the SBIR Program, and is executed in essentially the same manner; however, there are distinct differences. While STTR has the same objectives as SBIR regarding the involvement of small businesses in federal R&D and the commercialization of their innovative technologies, the STTR Program requires participation by universities, federally funded research and development centers (FFRDCs), and other non-profit research institutions.
STTR Three-Phase Process:
Phase I - The company must prove the feasibility of its concept within a six-month effort.
Phase II - Successful Phase I companies may submit a Phase II proposal. Phase II is a substantial R&D effort, spanning two years, and is intended to result in a dual-use prototype product or service meeting the requirements of the original BAA topic and which can be made commercially viable. Additional funding options may be available during the Phase II process.
Phase III - Phase III is the goal of every STTR effort, and represents the commercialization phase of the program. In Phase III, the successful company markets the products or services developed in Phase II, either to the government or in the commercial sector. No STTR funds can be used in Phase III. The intention of the program is that each company receiving an investment of STTR funds during Phases I and II should now be prepared to compete in the commercial marketplace in Phase III.
U.S. Medical Research and Development Command SBIR/STTR Program The longest standing OTA awarded by USAMRAA follows a consortium model and successfully established the Medical Technology Enterprise Consortium (MTEC) to carry out prototype projects. The MTEC OTA is a flexible acquisition instrument which provides an "enterprise partnership" between the Government and a Consortium of technology developers/providers in a specific medical research and development domain. It is designed to facilitate mutually beneficial collaborative research and development activities for medical prototype development between the Government and industry/academia with the intention of attracting nontraditional defense contractors, nonprofit research institutions and small businesses.
How does the Other Transaction - Consortium Model (MTEC) differ from FAR-based acquisition processes?
The Federal Acquisition Regulation (FAR) maintains an arms-length relationship between Government and Industry; the consortia model allows for Government and Industry to work more as partners in advancing technologies of mutual interest. With Other Transactions (OTs) for prototype projects, the following do not apply: Competition in Contracting Act; Bayh-Dole and Rights in Technical Data; Contract Disputes Act; Procurement Protest System; FAR; DFARS; AFARS; Department of Defense Grants and Agreements Regulations (DODGARS); and others.What are the benefits of using the Other Transaction - Consortium Model?Unique Acquisition Process:
Competitive yet Flexible: Consortium membership is open to all organizations having capabilities in the technology domain. Research projects are awarded competitively. Awards can be made only to members of the MTEC consortium. When used, the white paper (two-step) solicitation process enables DoD to provide feedback to industry prior to full proposal submission.
Basket Provision: If funding is not available at the time of source selection decision, the Government sponsor has the option of placing a source-selection-approved proposal in a “basket” and funding it up to two years after proposal submission, should funds subsequently become available.
Single Point Contracting: MTEC’s Consortium Manager facilitates and manages the Government sponsor’s financial and contractual engagement with all members of the consortium, including conducting proposal cost analyses and executing research project agreements with awardees.
Open Dialogue with Contractors: The model permits the Government to continue open dialogue with consortium members with the exception of the active source selection period (after a proposal is submitted and before the technical evaluation is complete). This extended period of authorized collaboration enhances understanding and refinement of requirements, which in turn improves the fidelity of proposals. MTEC also hosts periodic Membership meetings where military and commercial medical needs are discussed along with funding and partnering opportunities.
Increased Innovation
Open membership policies that provide low barriers to entry enhance the Government’s ability to access a broad range of potential solution providers, including small businesses and non-traditional defense contractors (NDCs) who find it difficult to do business with the Government under the restrictions imposed by FAR-based contracting.
Governing statutes for OT for prototypes provide financial incentives for “traditional” defense contracting companies to partner with non-traditional defense contractors (NDCs) or non-profit research institutions who participate to a significant extent to the prototyping effort (avoids the requirement for traditional defense contractors to pay 1/3 cost share if performing alone or without significant contribution by a partnering non-traditional contractor).
Improved Strategic Planning
Anti-trust protections facilitate Government and Consortium member collaboration in developing technology roadmaps and strategic investment plans against which subsequent investments can be made.
Streamlined Acquisition
Permits streamlined contracting such as lifecycle acquisitions through expedited transition from competitive prototype development into a follow-on, non-competitive production contract (pursuant to 10 U.S.C. § 4022 section f).
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