DEPARTMENT OF ENERGY SOLICITATIONS
FOR THE
SMALL BUSINESS INNOVATION RESEARCH
AND
SMALL BUSINESS TECHNOLOGY TRANSFER
PROGRAMS
PROGRAM INFORMATION, INSTRUCTIONS, AND
REQUIREMENTS
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-third for SBIR and the twelfth 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 technical topic areas described in this document are
encouraged to participate. The
solicitations offer opportunities for manufacturing-related projects in
accordance with President Bush’s Executive Order 13329, Encouraging
Innovation in Manufacturing.”
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 remainder 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.
Phase II: Phase II is the principal R&D effort, and only DOE Phase I grantees will be eligible to compete for subsequent Phase II continuation of their Phase I projects. Phase II awards are expected to be made during fiscal year 2006 to small businesses with approaches that appear sufficiently promising as a result of the Phase I effort. Phase II grant awards are expected to be in amounts up to $750,000 and cover a period of up to 24 months. Funds will be allocated over a two-year period. Second year funding will be contingent on the demonstration of adequate progress. It is anticipated that one-third to one-half of Phase I awardees will receive Phase II awards, depending on Phase I results and availability of funds. Instructions for preparing a Phase II grant application will be provided to all Phase I grantees through a posting on the SBIR/STTR Website. Phase I grantees will be advised of its availability via email sent during the Phase I period of performance. The work proposed for Phases I and II, assuming that it proceeds successfully, should be suitable in nature for subsequent progression to Phase III.
Phase III: Under Phase III, it is intended that non-SBIR capital be used by the small business to pursue commercial applications of the R&D. That is, the SBIR/STTR funding pays for research or R&D meeting DOE objectives identified by the DOE (Phases I and II); non-SBIR capital provides follow-on developmental funding to meet commercial objectives (Phase III). Additionally, under Phase III, Federal agencies may award non-SBIR/STTR funded follow-on grants or contracts for (1) products or processes that meet the mission needs of those agencies, or (2) further research or R&D. The competition for SBIR/STTR Phase I and Phase II awards satisfies any competition requirement of the Armed Services Procurement Act, the Federal Property and Administrative Services Act, and the Competition in Contracting Act. Therefore, an agency that wishes to fund an SBIR/STTR Phase III project is not required to conduct another competition in order to satisfy those statutory provisions. As a result, in conducting actions relative to a Phase III SBIR/STTR award, it is sufficient to state for purposes of a Justification and Approval pursuant to FAR 6.302-5 that the project is a SBIR/STTR Phase III award that is derived from, extends, or logically concludes efforts performed under prior SBIR/STTR funding agreements and is authorized under 10 U.S.C. 2304(b)(2) or 41 U.S.C. 253(b)(2).
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.
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.
b. Responsiveness – To be considered responsive, a grant application
must fall within the description of the subtopic, and also satisfy any
conditions contained in the introductory section of that topic.
The language in both the topic
introductions and the subtopics should be taken literally.
Applications that do not directly address the subtopic statement will be
declined for non-responsiveness, and will not be peer reviewed.
c. Duplicate Applications – Duplicate grant applications, even if submitted to different topics and/or subtopics, will be rejected without review. The application with the latest transmission time will be accepted for evaluation.
f. Grant Applications Being Considered for Other Funding – If a grant
application submitted in response to these solicitations contains a significant
amount of essentially equivalent work as one that has been previously funded by,
has been submitted to, or is about to be submitted to, another Federal agency,
or to another DOE program, the applicant must so indicate by answering
"Y" for yes for Question #6 on the grant application cover page,
Appendix A, and by providing the information required by Section 3.3.2.i.
In the event the same or similar work is selected for funding by two or more agencies, the agencies, in consultation with the applicant, will determine the awarding agency.
1.5.2
Restrictions on the Principal Investigator
The Principal Investigator (PI) is the key individual
designated by the applicant to direct the project.
The PI must be knowledgeable in all technical aspects of the grant
application and be capable of leading the research effort.
Because the DOE's evaluation of the grant application is critically
dependent on the qualifications of the PI, changes in the PI that are made after
award selection are strongly discouraged. Requests
for PI changes will be closely scrutinized and may cause delays in grant
execution.
The PI’s primary employment must be with the small business at the time of award and during the conduct of the proposed research. Primary employment means that no less than 20 hours (average) per week is spent in the employment of the small business during the conduct of the project and no more than 19 hours per week spent in the employment of another organization. In addition, the PI is expected to devote to the project a considerable part of his or her time. “Considerable” means at least 195 hours for both SBIR and STTR Phase I projects, or a minimum of five hours per week for the duration of the project. Applicants must state the duration of the project in weeks, if the project is to be completed in less than nine months, in order to make clear that this requirement is fully met. Also, the source of the PI's compensation for work on the project must be the small business. In order to ensure appropriate technical guidance for the project, only one PI will be accepted per project. Processing of applications that include co-PIs may be delayed while the error is corrected by the applicant. Before a grant is awarded, the PI will be required to sign a statement certifying adherence to these requirements.
1.5.3
Restrictions on the Level of Small Business Participation
For both SBIR and STTR, there are requirements on the
amount of the research or analytical effort that must be performed by the small
business (see also Section 3.3.1.c) in order to be selected for and to receive a
grant. The 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,
a research institution, or by any other subcontractor).
Work performed by a consultant, a DOE national laboratory, or any
other subcontractor, will be considered as external to the applicant
organization when complying with these requirements.
To be awarded a SBIR grant, a minimum of two-thirds or 67%
of the research or analytical effort must be carried out by the small business
applicant during Phase I; correspondingly, a maximum of one-third or 33% of the
effort may be allocated to consultants or subcontractors.
(In Phase II, up to one-half of the effort may be allocated to
consultants or subcontractors).
To be awarded a STTR
grant, at least 40% of the research
or analytical effort must be allocated to the small business, and at least 30%
of the effort must be allocated to a single
research institution (as defined in Section 2.9).
(The same requirement is applicable for both Phase I and Phase II.)
Grant applications
that include a substantial amount of cooperative research collaboration with a
single research institution can be considered for funding in both programs,
thereby increasing the chances of winning an award.
The required dollar amount
for the research institution (RI) depends on the amount of material, equipment,
and supplies in the budget. However,
it is unlikely that STTR requirements can be satisfied unless the subcontract
for the RI is at least $20,000.
Applicants can indicate their interest in being considered for both
programs by checking the appropriate box on the grant application cover page,
Appendix A. If
you choose to be considered in both programs, prepare the grant application to
meet the requirements of the SBIR program.
It is understood that because some requirements differ for the two
programs adjustments may be required after the grant application is
selected for award. These
adjustments will be addressed during the negotiation period before the grant
begins.
1.5.4
Restrictions on the Management of SBIR/STTR Projects
The small business, not a subcontractor (including the research institution in STTR), must exercise
management direction and control of the performance of the SBIR or STTR funding
agreement. Regardless of the
proportion of the work or funding of each of the performers under the grant, the
small business is the primary grantee with overall responsibility for the
grant’s performance. It is
recommended that all agreements between the small business and any subcontractor
(including the research institution collaborating in an STTR project),
including any business plan concerning agreements and responsibilities between
the parties, or for the commercialization of the resulting technology, reflect
the controlling position of the small business during the performance of Phase I
and/or Phase II.
1.6
SUPPORT FROM NATIONAL LABORATORIES, UNIVERSITIES, AND OTHER RESEARCH
INSTITUTIONS
Experts at institutions such as DOE contractor-operated
national laboratories, universities, colleges, or other research institutions,
may be consulted during the preparation of the grant application.
Any of these institutions may also serve as a subcontractor to SBIR/STTR
Phase I or Phase II projects, providing technical expertise, facilities, or
equipment. In such cases, the small
business must have the necessary expertise to direct the project.
For STTR, the small
business must conduct cooperative R&D with a research institution (see
Section 2.9). An alliance between
the small business and a research institution must be formed before submitting
the grant application. Grants will
be awarded to the small business, which will receive all funding for the project
and disperse the appropriate funds to the research institution.
A list of National Laboratory
Contacts is available on our Web page at http://www.science.doe.gov/sbir/collaboration/collaboration.htm.
Also, inquiries may be made at
a local library to locate supporting expertise or facilities from an appropriate
university or other research institution to assist with the proposed project.
For help in contacting personnel at DOE and other Federal agency
laboratories, see the Federal Laboratory Consortium (FLC) Website at http://www.federallabs.org,
or contact the FLC Locator:
Mr. Sam Samuelian
950 N. Kings Highway, Suite 208
Cherry Hill, NJ
Phone: (856)
667-7727
FAX: (856)
667-8009
E-mail:
ssamuelian@utrsmail.com
1.6.2
Assurance of Need for a Federal
Laboratory Subcontract
If
an application is selected for award under the SBIR program that includes a
subcontract to a Federally-owned, contractor-operated lab (such as Argonne
National Laboratory), the SBIR office will require the awardee to complete a
Certification for Using a National Laboratory as a Subcontractor form.
This form will be provided to the awardee with the award notification.
1.6.3
DOE User Facilities
The Department of Energy operates a number of specialized facilities to enable scientists to carry out experiments that could not be done in the laboratories of individuals. These facilities include, but are not limited to, synchrotron radiation light sources (Advanced Light Source, National Synchrotron Light Source, Advanced Photon Source, and Stanford Synchrotron Radiation Laboratory), high-flux neutron sources (High Flux Beam Reactor, Intense Pulsed Neutron Source, High Flux Isotope Reactor, and Neutron Scattering Center), electron-beam microcharacterization centers (Center for the Microanalysis of Materials, Electron Microscopy Center, Shared Research Equipment Program, and National Center for Electron Microscopy), particle and ion accelerators (Relativistic Heavy Ion Collider, Continuous Electron Beam Accelerator Facility, Argonne Tandem Linac Accelerator System, Lawrence Berkeley National Lab 88-Inch Cyclotron, Holifield Radioactive Ion Beam Facility, the Bates Linear Accelerator Center at MIT), and other specialized facilities (Surface Modification & Characterization Research Center, Combustion Research Facility, James R. MacDonald Laboratory, Pulse Radiolysis Laboratory, and Materials Preparation Center).
Potential applicants to the SBIR or STTR programs should consider whether the use of any of these facilities would contribute to the scientific efforts proposed in Phases I or II. For approved experiments (access to these facilities is through a peer-reviewed system), operating time is available without charge to those scientists whose intent is to publish their results in the open literature. If the investigator wishes to perform proprietary research, the user must pay the full-cost recovery rate for facility usage (in which case, the cost could be charged to the SBIR/STTR project); in return, the facility will treat all technical data generated as proprietary, and the user may take title to any inventions resulting from the research. Additional details on program dedicated user facilities may be found at the following Websites: http://www.sc.doe.gov/bes/BESfacilities.htm for facilities supported by the Office of Basic Energy Sciences, http://www.sc.doe.gov/ober/facilities.html for facilities supported by the Office of Biological and Environmental Research. Information on other laboratory facilities which may be available on a case-by-case basis may be obtained through the FLC Locator or directly from the DOE laboratory involved.
1.7
AGREEMENTS WITH RESEARCH INSTITUTIONS AND OTHER SUBCONTRACTORS
1.7.1
Property and Commercialization Rights Agreements
It is in the best interest of the small business, when collaborating with a research institution or other subcontractor, to negotiate a written agreement for allocating, between the parties, intellectual property rights and rights to carry out any follow-on research, development, or commercialization. For STTR awards only, the small business and the research institution must certify that this agreement has been completed. This certification will be requested by the Contract Specialist after award selection, but before the grant is signed. A model agreement, which may be found at http://www.science.doe.gov/sbir/Solicitations/FY%202005/ model.htm may be used or revised through negotiation between the small business and the research institution. The completed agreement should not be submitted with the grant application, but retained by the parties to the agreement. The Federal government will not be a party to any agreement between the small business and any subcontractor, including the STTR research institution. However, applicants are reminded that nothing in such agreements should conflict with any provisions setting forth the respective rights of the United States and the small business with respect to both intellectual property rights and any rights to carry out follow-on research.
1.7.2 Cooperative
Research and Development Agreements
SBIR/STTR
grant recipients who have chosen a DOE laboratory as a subcontractor may be
required to implement a Cooperative Research and Development Agreement (CRADA).
CRADAs are collaborative research agreements between DOE laboratories and
their partners, and are approved by the appropriate DOE Operations Office.
In many cases, the CRADA could be
used as a vehicle for the property
and commercialization rights agreement required by the STTR program (Section
1.7.1).
Immediately
after the applicant small business is notified that it has been chosen for an
SBIR/STTR grant award, the company should contact the laboratory to determine if
a CRADA will be required. If the DOE
laboratory requires a CRADA, no work may be initiated by the laboratory under
the grant until the CRADA has been approved.
Implementation of a CRADA begins with project
definition and milestones, and leads to a statement of work.
Standard terms and conditions, with a total of 60 options to provide
maximum flexibility, are available from the laboratory for use by partners and
laboratories. A streamlined,
short-form CRADA document that can reduce the need for legal review is also
available.
1.7.3 Work-for-Others Agreements
"Work-for-Others" agreements are used by DOE
national laboratories when performing tasks that are less cooperative in nature
than tasks that require a CRADA (i.e., the work is directed by the primary
contractor rather than being fully collaborative).
Nonetheless, it is recommended, even when operating under a
work-for-others agreement, that the small business negotiate a written agreement
for the disposition of intellectual property that laboratory employees may
develop during the course of their work for the grantee.
1.7.4 When to Negotiate these Agreements
It is recommended that small business applicants to the SBIR/STTR programs attempt, to the maximum extent practicable, to negotiate these agreements before submitting the grant application. It is during this period that the small business will have maximum leverage in conducting negotiations. If satisfactory terms cannot be agreed upon at this time, the small business still would have the option of finding an alternative research institution or subcontractor. Once the grant application has been submitted to the DOE, and subsequently reviewed and selected for award, the small business may be locked-in to the subcontractor identified in the grant application. Also, after selection for award, there would only be a short time available for conducting these negotiations before the grant would begin.
General questions about the DOE SBIR/STTR programs may be
submitted via email: sbir-sttr@science.doe.gov
or by telephone (301) 903-1414. Requests
to be added to the notification list for future
DOE SBIR/STTR solicitations should be forwarded to the SBIR/STTR Program office
as mentioned above, by calling the DOE SBIR/STTR hotline on (301) 903-5707, or
by submitting your request on-line at www.science.doe.gov/sbir,
click on “Join Mailing List.” For
reasons of competitive fairness, communications with DOE personnel regarding
this solicitation are limited to non-technical matters and to clarifying
specific language in the solicitation. Further
interpretations of the narrative descriptions of the technical topics will not
be provided. However, the staff of DOE national laboratories, universities, or
other research institutions may provide assistance, or may even enter into an
agreement to participate in a grant application, as described in Section 1.6.
No information on grant application status will be available until the final selections have been made (approximately four months after the closing date of the solicitation). However, if a grant application acknowledgment via email, with an assigned grant application number, is not received from DOE within four weeks of the closing date December 13, 2004, the applicant should telephone (301) 903-1414 or email sbir-sttr@science.doe.gov immediately.
1.8.1
Written Feedback
Feedback is very important. Reviewer comments will be provided to all awardees automatically with the award notification. Unsuccessful applicants may request a debriefing within 30 days after the announcement of the final selections. The small business will be provided with written information pertinent to DOE’s evaluation of the grant application. The identity of reviewers or their affiliation will not be disclosed.
The following definitions apply for purposes of this solicitation:
2.1
RESEARCH OR RESEARCH AND DEVELOPMENT
Research or R&D is any scientific or engineering
activity which is (1) a systematic, intensive study directed toward greater
knowledge or understanding of the subject; (2) a systematic study directed
specifically toward applying new knowledge to meet a recognized need; and/or (3)
a systematic application of knowledge toward the production of useful materials,
devices, and systems or methods, including design, development, and improvement
of prototypes and new processes to meet specific requirements.
Something new or improved, having marketable potential,
including (1) development of new technologies, (2) refinement of existing
technologies, or (3) of new applications for existing technologies.
A small business is one that at the time of award of Phase
I (and of Phase II, if awarded):
2.4
SOCIALLY AND ECONOMICALLY DISADVANTAGED SMALL BUSINESS
A socially and economically
disadvantaged small business is one:
a.
that is at least 51 percent owned by (i) an Indian tribe or a
native Hawaiian organization, or (ii) one or more socially and economically
disadvantaged individuals; and,
b. whose management and daily business operations are controlled by one or more socially and economically disadvantaged individuals. A socially and economically disadvantaged individual is defined as a member of any of the following groups: Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Subcontinent Asian Americans, other groups designated from time to time by the Small Business Administration (SBA) to be socially disadvantaged, or any other individual found to be socially and economically disadvantaged by SBA pursuant to section 8(a) of the Small Business Act, 15 U.S.C. 637(a).
Related information requested in
Appendix D, "Application Checklist," is provided to the Small Business
Administration for statistical purposes and is not considered in the evaluation
of grant applications or award of grants.
2.5
WOMAN-OWNED SMALL BUSINESS
A
woman-owned small business is a small business that is at least 51 percent
owned by a woman or women who also control and operate it.
"Control" in this context means exercising the power to make
policy decisions. "Operate"
in this context means being actively involved in the day-to-day
management.
Related information requested in Appendix D, "Application Checklist," is provided to the Small Business Administration for statistical purposes and is not considered in the evaluation of grant applications or award of grants.
A subcontract is any agreement,
other than one involving an employer-employee relationship, entered into
by the primary recipient of a Federal Government grant, calling for supplies or
services required solely for the performance of the original grant award.
2.7
HISTORICALLY UNDERUTILIZED BUSINESS ZONE
(HUBZONE)
A small
business concern meeting the following criteria:
1.
Located in a “historically underutilized business zone” or HUBZone
area located in one or more of the following:
a.
A qualified census tract (as defined in
section 42 (d)(5)(c)(i)(l) of the Internal Revenue Code of 1986; or
b.
A qualified “non-metropolitan
county” (as defined in section 143(k)(2)(B) of the International Revenue Code
of 1986) with a median household income of less than 80 percent of the state
median household income or with an unemployment rate of not less than 140
percent of the statewide average, based on U.S. Department of Labor recent data;
or
c.
Lands within the boundaries of federally
recognized Indian reservations.
To find out if your business is in a Hubzone, use the mapping utility provided by the Small Business Administration at its Hubzone Contracting Website: https://eweb1.sba.gov/hubzone/internet/general/findout.cfm. Related information requested in Appendix D, "Application Checklist," is provided to the Small Business Administration for statistical purposes and is not considered in the evaluation of grant applications or award of grants.
A joint venture is an association between two or more firms to participate jointly in a single business enterprise. There must be a community of interests, a sharing of profits and losses, and, for the purposes of this solicitation, the new entity must qualify as a small business (as defined in Section 2.3). If a joint venture is selected for award, the Contract Specialist from the Contracting Office will request a signed agreement from the parties involved. The agreement must state which company will negotiate the grant and serve as the main point of contact.
A research institution is a U.S.
research organization that is:
a. A non-profit research institution as defined in section 4(5) of the Stevenson-Wydler Technology Innovation Act of 1980 (i.e., an organization owned and operated exclusively for scientific or educational purposes, no part of the net earnings of which inures to the benefit of any private shareholders or individual), or
e.
A government-owned, government-operated facility, such as the National
Energy Technology Laboratory (NETL), is not
eligible to act as either a partner or subcontractor in DOE SBIR/STTR projects.
The process of developing markets
and producing and delivering products for sale (whether by the originating party
or by others). As used here,
commercialization includes both government and private sector markets.
An individual who provides
professional advice or services for a fee.
The separate and distinct types of intangible property that are referred to collectively as “intellectual property,” including but not limited to: patents, trademarks, copyrights, trade secrets, SBIR/STTR technical data, ideas, designs, know-how, business, technical and research methods, and other types of intangible business assets, and including all types of intangible assets either proposed or generated by a small business as a result of its participation in the SBIR or STTR program.
3.
PREPARATION INSTRUCTIONS AND REQUIREMENTS
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 Phase
I 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.
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 the technical topics are provided. 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.
Grant applications are limited to 25 pages, including cover page, technical abstract page, technical proposal, references, resumes, and budget. The checklist and the level of effort worksheet (Appendix D) are not included in the 25-page limitation. Grant applications containing more than 25 pages will not be considered for review or award. 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). The listing of multiple Phase II awards, which may be required by Section 3.3.4, is exempted from the 25-page limitation.
All items in this section must be included in your application and covered fully. 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 to convince the technical reviewers that each of the criteria has been met to a high degree.
3.3.1 Mandatory Forms
a.
Cover Page – Complete the form identified as Appendix A.
Detailed instructions are provided. No other cover page is permitted.
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 select the type of application. 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.
Please refer to the rules on
how to apply in Section 6.3 for information regarding what constitutes an
electronic signature. If
selected for award, the Contracting Officer will verify and confirm
participation of all parties.
b.
Technical Abstract
Page – The Technical Abstract is one of the most important parts of your grant
application, and it is essential to complete it correctly.
It is the first thing read by either the DOE program manager or by
the peer reviewers. In addition, if
your grant application is selected for award, the technical abstract is posted
on the DOE Website, where we refer potential investors or partners for the
technology.
Complete the technical abstract
form identified as Appendix B. For
uniformity of presentation on the Website, all technical abstracts must contain
the following components, in the following order:
i.
The problem or situation being addressed (typically one to three
sentences). It should be clear to
any reader that the problem or situation being addressed is important to the
Department of Energy.
ii.
How this problem is being addressed, i.e., the overall approach of
the combined Phase I/Phase II project (typically one to two sentences).
iii.
What is planned for Phase I (typically two to three sentences).
Although Appendix B provides
separate boxes for these three components, the technical abstract will be posted
on the Website as a single, self-contained paragraph.
Therefore, the technical abstract
should flow smoothly from one part to the next.
A
sample technical abstract page is provided as a link in IIPS with the other
example forms.
Because the technical abstract may
be made public by the DOE (regardless of whether the grant application is
selected for award), do not include
proprietary information on this page.
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.
c.
Budget – Complete the Grant Application Budget form, Appendix C,
for the Phase I effort only, including costs for all
parties. No other budget form
is permitted and no alterations shall be made by the applicant.
i.
Under SBIR Phase I, a
minimum of two-thirds of the 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 research or analytical effort must be performed by the
small business, and at least 30% of the work must be performed by
a single research institution. You
may not use two research institutions to meet the 30% requirement.
The 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 that will automatically calculate the percent of the
research and analytical effort allocated to each participant.
Applicants are encouraged to contact the SBIR/STTR office if there are
questions about this worksheet (301-903-0569).
ii.
Although there is no absolute cap on indirect costs, grant
applications will be evaluated for overall economy and value to DOE.
iii.
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.
iv.
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).
v.
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 3.3.1.c.i).
vi.
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.
vii.
Travel funds, Section E, must be justified and related to
the needs of the project. Please
provide a written justification on the “Budget Explanation Page”.
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.
viii.
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).
ix.
Phase I (and Phase II) grants may include a profit or fee for the
small business, and this amount should appear on line J.
It’s normally 7% or less.
x.
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 3.3.2.d) but not reflected on the budget page.
xi.
Tuition expenses are allowable if requested from a subcontractor,
such as a university, as long as the amount requested for tuition is reasonable
and comparable to what a student would be paid for performing research during
the grant period.
xii.
The government will only pay allowable
costs. These are available on the
Web at http://www.arnet.gov/far/loadmainre.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.
d.
Checklist, Statistical Information, and Level of Effort Worksheet –
Complete the Checklist in Appendix D.
The Checklist and Level of Effort
Worksheet will not be counted in the 25-page limitation of the grant
application. Read this checklist
carefully to assure that a submission is not declined for administrative or
budgetary reasons which could have been prevented.
Be sure to
complete the statistical information at the bottom of the Checklist.
This information is required by the Small Business Administration for
statistical purposes and will play no role in the grant application evaluation process.
3.3.2 Technical Proposal
a. Identification and Significance of the Problem or Opportunity, and Technical Approach – 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.
d.
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.
Relate 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.
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.
h.
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 electronic signature on the cover page commits the institution to
participate in the project as described in the grant application.
If selected for award, participation of the research institution will be
verified.
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 3.3.1.c.i. 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 provide "Letters of Commitment" from the
consultants and/or subcontractors. 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 on
official letterhead with an authorizing representative’s contact information
provided. If selected for award, the
Contracting Officer will verify any subcontractors and/or consultants.
Note: Consultants are not
employees of either the small business or any subcontractor.
i.
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.
3.3.3
Certifications
If
selected for an award, applicants may be required to sign and submit one or more
of the following certifications. Forms
will be provided by the DOE Contract Specialist during
award negotiation.
3.3.4
Addendum: Documentation of
Multiple SBIR Phase II Awards
Public Law 102-564 requires that a
small business that submits an SBIR Phase I grant application and has already
received more than 15 Phase II SBIR awards, as totaled from all Federal agencies
with SBIR programs, during the preceding five fiscal years, must document the
extent to which it was able to secure Phase III funding to develop concepts
resulting from previous Phase II awards. Accordingly,
such small business concerns shall submit, for each SBIR Phase II award, the
name of the awarding agency, the date of the award, the funding agreement
number, the funding amount, the topic or subtopic title, the amount of follow-on
funding, the source and the date that the follow-on funding was provided, and
the current commercialization status. This required information will not be counted toward the grant
application limitation of 25 pages, and should be prepared as a separate
attachment with the heading "Addendum--Phase II History."
4.
METHOD OF SELECTION AND EVALUATION
CRITERIA
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.b), (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 CRITERIA-PHASE 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
CRITERIA-PHASE II
Detailed instructions regarding
Phase II grant application submission will be provided by DOE to all Phase I
awardees via email during the conduct of Phase I.
A Phase II grant application can be submitted only by a DOE Phase I
awardee. It must contain enough
information on progress accomplished under Phase I by the time of Phase II grant
application submission to evaluate the project's promise if continued into Phase
II. DOE plans to make selections for
Phase II awards from those grant applications judged to have the highest overall
merit within their technical subject area, with equal consideration given to
each of the following criteria:
1.
Strength of the Scientific/Technical Approach as evidenced by (1) the
strength and innovativeness of the overall idea and approach for the combined
Phase I/Phase II project, (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, consultants, if any, and the level of adequacy of equipment and
facilities; (2) the soundness and level of adequacy of the work plan to meet the
problem or opportunity; (3) with regard to the Phase I objectives, the degree to
which Phase I has proven feasibility of the concepts; and (4) 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
following evidence of commercial potential will also be considered:
(a) the small business concern's record of commercializing SBIR, STTR, or
other research, (b) Phase II funding commitments from private sector or
non-SBIR/STTR Federal funding sources, and (c) Phase III follow-on funding
commitments for the subject of the research.
Phase II grant applications will be subject to a technical review process similar to Phase I. Grant applications will be judged against Phase II criteria on a competitive basis.
Final decisions will be made by DOE
based on the evaluation criteria and consideration of program balance and
needs.
The Phase II funding commitment
described above should be an additional 20 percent or more of the Phase II
funding requested from the DOE in order to receive full credit.
Smaller commitments will receive partial credit.
The commitment must be provided either to or by the small business during
the Phase II project period. Contributions
from international companies are allowed for Phase II non-SBIR/STTR follow-on
funding contributions. In-kind
contributions are acceptable provided the commitment is in writing, signed by a
responsible official, and includes a dollar estimate of its value.
The Phase III follow‑on funding commitment must provide that a specific amount of funds (at least one-half of that amount requested from DOE for Phase II) will be made available to or by the small business. Smaller commitments will receive partial credit. The commitment must be signed by a person with the authority to make it, indicate when the funds will be made available, and contain specific technical objectives which, if achieved in Phase II, will make the commitment exercisable by the applicant. The terms cannot be contingent on obtaining a patent because of the length of time that process requires. Commitments by private sector firms to purchase items developed under Phase II are acceptable provided the commitment is in writing, signed by responsible official, and includes a dollar estimate of its value.
SBIR and STTR awards are subject to the availability of funds and this solicitation does not obligate DOE to make any awards under either Phase I or Phase II. For those grant applications selected for negotiation of an award, recipients may incur pre-award costs up to ninety days prior to the effective date of the award, but any pre-award expenditures are made at the recipient's risk. Approval of pre-award costs for periods preceding ninety days prior to the effective date of award by the cognizant DOE Contracting Officer or incurrence by the recipient does not impose any obligation on DOE if an award is not subsequently made, or if an award is made for a lesser amount than the recipient expected.
Phase
I – From this solicitation, DOE expects to award approximately 280, fixed
obligation Phase I research grants ranging up to $100,000 each to small
businesses in fiscal year 2005. Selections
of awards will be completed approximately four months after the closing date of
the solicitation. At that time, DOE
will notify by email all applicants of the results and publicly announce on the
SBIR/STTR Website the names of those firms selected for negotiation of an award.
Grants are expected to begin late June 2005.
The duration of Phase I will be no more than nine months.
Phase
II – It is anticipated that one-third to one-half of the Phase
I awardees will receive Phase II awards, depending on the results of the Phase I
effort and the availability of funds. Phase
I awardees may request up to $750,000 for Phase II.
The period of performance under Phase II will depend on the scope of the
effort, but normally will not exceed 24 months.
Successful Phase II applicants will
be issued a grant amendment covering a four-month interim period of performance
while the Phase II effort is being negotiated. Should the two parties fail to
agree on terms covering the Phase II effort, allowable costs incurred during the
four-month interim period will be paid in accordance with Federal and DOE
commercial cost principles. (See FAR, Part 31, at http://www.arnet.gov/far/loadmainre.html.
If awarded, refer to the Federal
Assistance Reporting Checklist (included in the official award document) for
more detailed instructions regarding the applicable reporting requirements under
the award agreement.
Detailed guidance regarding the
required contents and format of scientific/technical reports is provided in DOE
Directive, DOE G 241.1-1A, entitled, "Guide to the Management of Scientific
and Technical Information." This
guide can be accessed by selecting the link identified by the directive's title
on the DOE Energy Link System (E-Link) Website at:
https://www.osti.gov/elink/index.html.
If you have any questions using E-Link, please contact Kathy
Waldrop, Office of Scientific and Technical Information, at (865) 576-1223 or by
e-mail at 241user@osti.gov.