The STTR program was created by Title II of the Small Business Research and Development Enhancement Act of 1992 (P.L. 102-564), reauthorized until the year 2001 by the Small Business Reauthorization Act of 1997 (P.L. 105-135), and reauthorized again until September 30, 2009, by the Small Business Technology Transfer Program Reauthorization Act of 2001 (P.L. 107-50).   

Federal agencies with extramural R&D budgets over $1 billion are required to administer STTR programs using an annual set-aside of 0.30%.  Currently, five Federal agencies participate in the STTR program: the National Aeronautics and Space Administration, the National Science Foundation, and the Departments of Defense, Energy, and Health and Human Services. 

The program's budget for FY 2005 is expected to be about $12 million, used to support annual competitions among small businesses for Phase I and Phase II awards.  Phase I explores the feasibility of innovative concepts with awards up to $100,000 each for about 9 months.  Phase II is the principal research or R&D effort, and awards are up to $750,000 over a two-year period.    There is also a Phase III, in which non-Federal capital can be used by the small business to pursue commercial applications of the R&D.  

STTR is similar to the Small Business Innovation Research (SBIR) program in that both programs seek to increase the participation of small businesses in Federal R&D and to increase private sector commercialization of technology developed through Federal R&D.  The unique feature of the STTR program is that, for both Phase I and Phase II projects, at least 40% of the work must be performed by the small business, and at least 30% of the work must be performed by a non-profit research institution.  Such institutions include Federally-funded research and development centers (for example, DOE national laboratories), universities, non-profit hospitals, and other non-profits.  

The FY 2005 STTR solicitation was issued September 28, 2004 and will close for receipt of grant applications on December 13, 2004.  If you have any questions about the STTR program, please telephone (301) 903-1414, send e-mail to sbir-sttr@science.doe.gov, or write to the following address:

STTR Program Manager
      SC-32/Germantown Building
   U.S. Department of Energy
   1000 Independence Avenue
         Washington, D.C.  20585-1290