1.     DESCRIPTION OF PROGRAMS

1.1     INTRODUCTION

This document describes two solicitations under which small businesses are invited to submit grant applications to two separate Department of Energy (DOE) programs:  the Small Business Innovation Research (SBIR) program and the Small Business Technology Transfer (STTR) program.  These annual solicitations, the twenty-second for SBIR and the eleventh for STTR, are issued pursuant to the Small Business Innovation Development Act of 1982 (Public Law 97-219), Small Business Innovation Research Program Reauthorization Act of 2000 (Public Law 106-554), the Small Business Research and Development Act of 1992 (Public Law 102-564), and the Small Business Technology Transfer Program Reauthorization Act of 2001 (Public Law 107-50).  Small businesses with strong research capabilities in science or engineering in any of the topic areas described in the Technical Topics section of this document are encouraged to participate.

The solicitations are presented in a single document because the two programs are very similar.  The major difference is that STTR grants must involve substantial cooperative research collaboration between the small business and a single research institution (defined in Section 2.9).  However, it should be noted that the SBIR program also permits substantial collaboration between the small business and other organizations, including  research institutions.  The difference is that in SBIR, the collaboration is optional, while in STTR, the collaboration is required and must be cooperative in nature.  In the rest of the guidelines, italics will be used to identify information that pertains exclusively to the STTR program.

The objectives of these programs include increasing private sector commercialization of technology developed through DOE-supported R&D, stimulating technological innovation in the private sector, and improving the return on investment from federally funded research for economic and social benefits to the nation.  DOE will support high-quality research or research and development (R&D) on advanced concepts concerning important mission-related scientific or engineering problems and opportunities that are likely to lead to significant public benefit if the research is successful.

1.2     THREE-PHASE PROGRAMS

1.3     PHASE II COMMERCIAL COMMITMENT AND PHASE III FOLLOW-ON FUNDING

An important goal of these programs is the commercialization of DOE-supported research or R&D.  Following the start of Phase I, awardees whose research or R&D has identifiable potential to meet market needs are encouraged to seek commitments from private sector or Federal non-SBIR/STTR funding sources for both Phases II and III.  (See Evaluation Criterion 3 in Section 4.3.)  The commitments should be obtained prior to the Phase II grant application submission.  The commitment for Phase III may be made contingent on the DOE-supported research or R&D meeting some specific technical objectives in Phase II, which, if met, would justify funding to pursue further development for commercial purposes in Phase III.

1.4     ELIGIBILITY

Only small businesses, as defined in Section 2.3, are eligible to receive SBIR/STTR awards.  Joint ventures as defined in Section 2.8 are also permitted, provided the entity created also qualifies as a small business in accordance with the definition in Section 2.3.  Wholly owned subsidiaries are not eligible to apply; however, their parent company may apply as long as the parent, subsidiaries included, qualifies as a small business.  

The research or R&D must be performed in the United States for both Phases I and II.  "United States" means the 50 states, the territories and possessions of the United States, the Commonwealth of Puerto Rico, the Trust Territory of the Pacific Islands, and the District of Columbia.

1.5     RESTRICTIONS

2.     DEFINITIONS

(4) has, including its affiliates, not more than 500 employees.

2.4     SOCIALLY AND ECONOMICALLY DISADVANTAGED SMALL BUSINESS

Grant applications, submitted to DOE under SBIR/STTR programs, must provide sufficient information to convince DOE, and members of the research community who review the grant application, that the application is responsive to the topic and subtopic under which it is submitted, that the proposed work represents a sound approach to the investigation of an important scientific or engineering question, and that it is worthy of support under the stated criteria.  The grant application should describe self-contained research that will contribute to proving scientific or technical feasibility of the approach or concept.  It should be written with the care and thoroughness accorded papers for publication--direct, concise, informative, and free from grammar, typographical, and spelling errors.  Illustrations and charts should be clearly labeled and correctly referenced in the text. Promotional and non-project-related discussion detracts from the professional quality of the proposal.  The work proposed for Phase I, assuming that it proceeds successfully, should be suitable in nature for subsequent progression to Phases II and III.

Technical reviewers will base their conclusions only on information contained in the 25 pages of the grant application.  Do not assume that reviewers are acquainted with the small business, key individuals, or any theory or experiments referred to, but not described.  (This includes material in refereed professional journals--those in which the articles have been subjected to peer review, and material referenced on Internet web pages).  Relevant journal articles should be summarized in the grant application.  Attached videos, CDs, and other media will be discarded; information provided via web links will not be reviewed.

Specifically excluded from this solicitation are grant applications principally for literature surveys, for compilations of the work of others, for technical assessments, or for technical status surveys.  If any of these types of tasks are included in the work plan, the grant (if awarded) may be reduced in proportion to that effort.  In addition, grant applications primarily for the development of already proven concepts will be declined, because such efforts are considered the responsibility of the private sector.

Narrative descriptions of 47 technical topics are provided in the Technical Topics section.  Each technical topic is subdivided into a maximum of 4 subtopics, designated by the letters a, b, c, or d.  A grant application must respond to a specific technical topic and, within it, to only one subtopic, as required in Section 1.5.1.b.  For example, an applicant submitting a grant application to topic 4a may not submit the same grant application to any other topic and subtopic.

3.2     25-PAGE LIMITATION

Grant applications are limited to 25 consecutively numbered pages stapled together, including cover page, project summary page, main text, references, resumes, budget, and any other enclosures or attachments.  The checklist (Appendix D) and the level of effort worksheet (Appendix D backside) are not included in the 25-page limitation.  Grant applications containing more than 25 pages will not be considered for review or award.  The pages must be of standard 8 1/2" x 11" size (21.6 cm x 27.9 cm).  For proportionally spaced fonts, the type can be no smaller than 12 point, and for non-proportionally-spaced fonts, the type can be no smaller than 12 characters per inch (elite).  Margins are not to be less than 1 inch (2.5 cm).  VCR tapes, CDs, or electronic disks will not be accepted.  The listing of multiple Phase II awards, which may be required by Section 3.3.7, is exempted from the 25-page limitation. 

3.3     PHASE I GRANT APPLICATION FORMAT  

The items listed in this section should be covered fully and in the order set forth.  In following this format, applicants should keep in mind that their grant application will be evaluated with respect to the criteria listed in Section 4.2.  The application should be written so as to convince the technical reviewers that each of the criteria has been met to a high degree.

3.3.1      Introductory Pages  

a.   Cover Page – Complete the form identified as Appendix A in the solicitation.  Detailed instructions are provided on the back of Appendix A.  This is to be the first page on each of the required 6 copies and one original of your grant application.  No other cover page is permitted. Please do not use plastic or other heavy material covers or bindings as they slow processing of your application.

Both the topic number and subtopic letter must be entered in the appropriate spaces on the cover page.  Failure to identify both the topic and subtopic on the cover page will cause the grant application to be declined without further review.

Be sure to answer the yes/no question about collaboration with a research institution.  For those that check "yes," you must indicate whether the grant application should be considered for SBIR, STTR, or both programs.  For grant applications that are to be considered for both SBIR and STTR, refer to Section 1.5.3. for guidance with respect to conforming to the separate requirements for the two programs.  

Applicants must provide answers to all nine Certifications and Questions.  An answer of "Yes" to Certifications 1 through 3 is required to participate in the SBIR/STTR programs.  If the DOE learns from any source that any of these certifications were completed fraudulently, appropriate authorities will be notified for possible criminal investigations.

Signatures of the Principal Investigator and the Corporate/Business Authorized Representative are mandatory.  Also, for those grant applications that have significant collaboration with a research institution (including all grant applications to be considered for STTR), a signature is required from a person authorized to commit the research institution to participate in the project described in the grant application.

b.   Project Summary – Complete the project summary form identified as Appendix B, and include it as Page 2 of your application.  Make sure the topic and subtopic match those listed on the cover page.  Since this summary may be made public by DOE (regardless of whether the proposal is selected for award), do not include proprietary information on this page.  This form should be neat, clean, and typewritten.

The purpose of the technical abstract is to communicate the overall sense of the project, not every step of the work plan.  Statements of future applications or public benefits belong in the section on Commercial Applications and Other Public Benefits.  Do not use acronyms, abbreviations, first-person references, or any proper names (including the name of the small business), any subcontractors or institutions, or any trade or product name.

The Department notifies members of Congress of awards in their districts.  Therefore, please provide, in clear and concise layman's terms, a very brief summary of the project (maximum 2 sentences, 50 words), suitable for a possible press release from a Congressional office.  Suggested Format:  First Sentence--State the problem being addressed so that the DOE interest is clear.  Second Sentence--State what is being done to address the problem.

3.3.2      Significance and Background Information, and Technical Approach  

a.   Identification and Significance of the Problem or Opportunity, and Technical Approach – (Begin on page 3 of your grant application.)  Define the specific technical problem or opportunity addressed by your application.  Provide enough background information so that the importance of the problem/opportunity is clear. Indicate the overall technical approach to the problem/opportunity and the part that the proposed research plays in providing needed results.

b.   Anticipated Public Benefits – Discuss the technical, economic, social, and other benefits to the public as a whole anticipated if the project is successful and is carried over into Phases II and III.  Identify specific groups in the commercial sector as well as the Federal government that would benefit from the projected results.  Describe the resultant product or process, the likelihood that it could lead to a marketable product, and the significance of the market.

3.3.3     The Phase I Project  

a.   Technical Objectives – State the specific technical objectives of the Phase I effort, including the questions it will try to answer to determine the feasibility of the proposed approach.

b.   Phase I Work Plan – Provide an explicit, detailed description of the Phase I research approach and work to be performed.  Indicate what will be done, by whom (small business, subcontractors, research institution, or consultants), where it will be done, and how the work will be carried out.  If applicant is making a commercial or in-kind contribution to the project, please describe in detail here.  The Phase I effort should attempt to determine the technical feasibility of the proposed concept which, if successful, would provide a firm basis for the Phase II grant application.

Link the work plan to the objectives of the proposed project.  Discuss the methods planned to achieve each objective or task explicitly and in detail.  This section should be a substantial portion of the total grant application.

Phase I Performance Schedule – Briefly describe the important milestones and the estimated percentage of time for completing each task described in the work plan.

c.   Related Research or R&D – Demonstrate knowledge of key recent work conducted by others in the specific area of the proposed project.  If not already addressed in Sections 3.3.2.a, or 3.3.3.b, describe significant research that is directly related to the grant application, including any conducted by the Principal Investigator or by the applicant organization.  Describe how it relates to the proposed effort and any planned coordination with outside sources.  Applicants should be or become familiar with the references provided following each topic in this solicitation.

d.   Principal Investigator and other Key Personnel – The Principal Investigator (PI) must be knowledgeable in all technical aspects of the grant application and be capable of leading the research effort.  A resume of the PI, including a list of publications (if any), must be included.  It is important that the requirements described in Section 1.5.2 concerning the PI be met explicitly.  Also identify other key senior personnel involved in the Phase I effort including information on directly related education and experience.  List relevant publications by key personnel.

e.   Facilities/Equipment – Describe available equipment and physical facilities necessary to carry out the Phase I effort.  Items of equipment to be leased or purchased must be described and justified in this section. Equipment is defined as an article of tangible, nonexpendable, personal property, including exempt property, charged directly to the award, having a useful life of more than one year, and an acquisition cost of $5000 or more per unit.  Title to equipment purchased under this award lies with the government.  It may be transferred to the grantee where such transfer would be more cost effective than recovery of the property by the government.  Awardees wishing to obtain title should contact their Contract Specialist prior to project completion for the procedure to follow.

If the equipment, instrumentation, and facilities are not the property of the applicant and are not to be purchased or leased, the source must be identified and their availability and expected costs specifically confirmed in this section.  A principal of the organization that owns or operates the facilities/equipment must certify regarding the availability and cost of facilities/equipment and any associated technician cost; a copy of this certification must be submitted as part of the grant application.

To the extent possible in keeping with the overall purposes of the program, only American-made equipment and products should be purchased with financial assistance provided under both Phase I and Phase II awards.

f.    Consultants and Subcontractors

(i)   Research Institution – If the grant application contains substantial collaboration with a research institution (required for STTR), (1) identify the research institution and (2) describe in detail the work to be done by this institution in the Work Plan section.  The research institution will be a subcontractor to the small business applicant.  A research institution official’s signature on the cover page commits the institution to participate in the project as described in the grant application.

(ii)  Other Consultants and Subcontractors –Involvement of consultants or subcontractors in the planning and research stages of the project is permitted provided the work is performed in the United States and subject to the limitations in Section 3.3.5.a.  If consultants and/or subcontractors are to be used, this section must identify them by name, identify whether the party is being proposed as a consultant versus as a subcontractor, and should reference "Letters of Commitment" provided to the applicant by the consultants and/or subcontractors and submitted as part of the application.  The letters must provide a detailed cost estimate for the consultant or subcontractor, as well as a specific statement certifying that they have agreed to serve in the manner and to the extent described in the Work Plan section of the grant application.  Each letter must be signed by the consultant him/herself, or, for a subcontractor, by an individual authorized to represent the subcontractor.  Note:  Consultants are not employees of either the small business or any subcontractor. 

3.3.4     Similar Grant Applications, Proposals, or Awards  

While it is permissible, with notification in the proposal or grant application, to submit identical proposals or proposals containing a significant amount of essentially equivalent work to more than one federal agency, it is unlawful to enter into contracts or grants in which essentially equivalent efforts are performed.  If a grant application contains work that has been previously funded, or is either funded, pending, or about to be submitted to another Federal agency or to the DOE in a separate action, the applicant must provide the following information in the grant application:

§         The name, address, and point of contact including telephone number of the agency(s) to which a proposal or grant application was submitted, or will be submitted, or from which an award is expected or has been received.

§         The date of submission or the date of award.

§         The title of the grant application.

§         The name and title of the project manager or Principal Investigator for each proposal or grant application submitted or award received.

§         The number and date of the solicitation under which the application or award was received.

§         The title of the specific research topic to which the application or award was submitted.

In the event that a proposal or grant application is selected for award by more than one agency, a negotiation will be conducted among the parties to avoid duplication of effort.

3.3.5     Budget  

Complete the Grant Application Budget form, Appendix C, for the Phase I effort only, including costs for all parties.  Incorporate the copy of the budget form that bears the original signature into the copy of the grant application that bears the original signatures on the cover page.  The budget form should be the last page of the grant application.  No other budget form is permitted and no revisions shall be made by the applicant.  A sample budget page is provided along with Appendix C.

      a.  Under SBIR Phase I, a minimum of two-thirds of the funded research or analytical effort must be performed by the proposing firm.  (In Phase II, the minimum is one-half.)  For STTR, Phases I and II, a minimum of 40% of the funded research or analytical effort must be performed by the small business, and at least 30% of the work must be performed by one research institution.  You may not use two research institutions to meet the 30% requirement.  The funded research or analytical effort is defined as the total requested funding minus the cost of any purchased or leased equipment, materials, and supplies (whether purchased by the applicant, the research institution, or any other subcontractor).  For grant applications that are to be considered for both SBIR and STTR, refer to Section 1.5.3 for guidance with respect to conforming to the separate requirements for the two programs.  A worksheet is provided on the reverse side of the Checklist (Appendix D) to assist in calculating the percent of the funded research and analytical effort allocated to each participant.  This worksheet must be completed and submitted with the grant application.  A completed example is also provided, following Appendix D.  Applicants are encouraged to contact the SBIR/STTR office if there are questions about this worksheet (301-903-0569).

b.       Although there is no absolute cap on indirect costs, grant applications will be evaluated for overall economy and value to DOE.

     c.   All employee labor costs of the applicant must be included in Section A of the budget form and all key employees of the applicant participating in the Phase I project must be identified by name.  None of the small business personnel can also be consultants or employees of a subcontractor.

     d.   The principal investigator must spend a minimum of 195 hours, or at least five hours per week, on the project (see Section 1.5.2).

     e.   Use Section B of the budget form to identify consultants.  Consultants are not employees of either the small business or any subcontractor (including the research institution for STTR).  Consultant costs are not considered part of the small business's research or analytical effort (Section 3.3.5a).

     f.    Equipment budgets may be included under Phase I (and Phase II).  Equipment to be leased or purchased by the small business should be listed in sections C and D and will be carefully reviewed relative to need and appropriateness for the research or R&D proposed.  Equipment is defined as an article of tangible, nonexpendable, personal property, including exempt property, charged directly to the award, having a useful life of more than one year and an acquisition cost of $5000 per unit or more.  

     g.       Travel funds, Section E, must be explained, justified, and related to the needs of the project.  Travel expenses for technical conferences are not permitted unless the purpose of attending the conference directly relates to the project (e.g., to present results of the project).  Foreign travel is not normally an appropriate expense.

h.   In Section F, include only items which are to be acquired from outside the small business.  Identify the research institution, if any, on line F5 and any other subcontractors on line F6.  On line F6, identify separately the amount of subcontract work to be performed by each subcontractor.  A detailed budget for each subcontract should be provided to the applicant by the proposed subcontractor, supported by a "Budget Explanation Page", and included with the application.  In particular, the amount of any equipment, materials, and supplies to be purchased or leased by each subcontractor must be identified on the Budget Explanation page and the Level of Effort Worksheet (Appendix D).

     i.    Phase I (and Phase II) grants may include a profit or fee for the small business, and this amount should appear on line J.

j.         The total Federal cost of the project (line I plus line J) should equal the amount of Federal funds requested and cannot exceed $100,000 in Phase I.  Any commercial and/or in-kind contribution to the project should be described in the text of the proposal (see section 3.3.3b) but not reflected on the budget page.

      k.   Tuition costs are not allowable costs and must not be included in the budget.

l.    The government will only pay allowable costs.  These are available from the World Wide Web at site http://www1.pr.doe.gov/gf16coa.html or a copy may be purchased from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954.  Telephone: 202-512-1800.  Fax: 202-512-2250. 

Note: If your application is accepted for award, the contracting office may need additional supporting information.  That office will provide you with specific instructions regarding the information to be submitted.

3.3.6      Certifications

If selected for an award, applicants may be required to sign and submit one or more of the following certifications directly to the DOE Contract Specialist during award negotiation.

      a.       Principal Investigator Certification
b.   Assurance of Compliance
c.       Lobbying, Debarment, Suspension, and Other Responsibility Matters and Drug Free Workplace Requirements
d.      Property and Commercialization Rights Agreement Certification

For your information, samples of these certifications are available on the Web http://www.science.doe.gov/sbir under FY 2004 Solicitation, certifications.  Do not include them with the application.

3.3.7          Addendum:  Documentation of Multiple SBIR Phase II Awards  

3.3.8      Checklist and Statistical Information  

Phase I grant applications will be judged on a competitive basis in several stages.  All will be screened initially by DOE to ensure that they (1) meet stated solicitation requirements, (2) are responsive to the topic and subtopic entered on the cover page (see definition of responsiveness in Section 1.5.1), (3) contain sufficient information for a meaningful technical review, (4) are for research or for research and development, and (5) do not duplicate other previous or current work.  Grant applications which fail to pass the initial screening will be declined without further review.

Grant applications found to be in compliance with those requirements will be evaluated technically by scientists or engineers to determine the most promising technical and scientific approaches.  Each grant application will be judged competitively against the Phase I evaluation criteria (see Section 4.2) on its own merit.  Final decisions will be made by DOE based on the evaluation criteria and consideration of other factors, such as program balance and needs.

4.2     EVALUATION AND SELECTION CRITERIACPHASE I

DOE plans to make selections for Phase I awards from those grant applications judged to have the highest overall merit within their technical subject area, with approximately equal consideration given to each of the following criteria:

1.   Strength of the Scientific/Technical Approach as evidenced by (1) the innovativeness of the idea and the approach, (2) the significance of the scientific or technical challenge, and (3) the thoroughness of the presentation.

2.   Ability to Carry out the Project in a Cost Effective Manner as evidenced by (1) the qualifications of the Principal Investigator, other key staff, and consultants, if any, and the level of adequacy of equipment and facilities; (2) the soundness and level of adequacy of the work plan to show progress toward proving the feasibility of the concept; and (3) the degree to which the DOE investment in the project would be justified by the level of proposed research effort.

3.   Impact as evidenced by (1) the significance of the technical and/or economic benefits of the proposed work, if successful, (2) the likelihood that the proposed work could lead to a marketable product or process, and (3) the likelihood that the project could attract further development funding after the SBIR or STTR project ends.

The DOE will not fund any grant application for which there is a reservation with respect to any of the three evaluation criteria, as determined by the review process.  In addition, because the DOE supports only high quality research and development, grant applications will be considered candidates for funding only if they receive strong endorsements with respect to at least two of the three criteria.  From those grant applications considered candidates for funding, each of the participating DOE program areas will select up to a pre-determined number for funding.   (The pre-determined number is proportional to a program area’s monetary contribution to the SBIR/STTR programs.)  Therefore, grant applications are largely in competition with other grant applications submitted to technical topics from the same DOE technical program area.

4.3     EVALUATION CRITERIACPHASE II