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**National Science Foundation**

**SBIR/STTR 1999 - Phase I Program Solicitation**

**& Phase II Instructions**

**NSF 99-XX (Replaces NSF 98-54 and 98-153) Electronic Dissemination
Only**

**[STOP Page]{.underline}**

**[Chapter 1.0]{.underline} Program Description**

**[Chapter 2.0]{.underline} Definitions**

> **[Chapter 3.0]{.underline}** **Proposal Preparation Instructions and
> Requirements for SBIR Phase I**

**[Chapter 4.0]{.underline} Method of Selection and Evaluation
Criteria**

**[Chapter 5.0]{.underline} Considerations**

**[Chapter 6.0]{.underline} Submission of Proposals**

**[Chapter 7.0]{.underline} Scientific and Technical Information
Sources**

**[Chapter 8.0]{.underline} Research Topics**

> **[Chapter 9.0]{.underline} Proposal Preparation Instructions and
> Requirements for STTR Phase I and Phase II**
>
> **[Chapter 10.0]{.underline} Proposal Preparation Instructions and
> Requirements for SBIR Phase II and Phase IIB**
>
> **[Check Lists]{.underline} (For Preparing SBIR/STTR Phase I and Phase
> II Proposals)**

**[Table of Deadlines]{.underline} (Chapter 6, Section 6.3)**

**[Forms (Attachments)]{.underline}**

The National Science Foundation (NSF) funds research and education in
most fields of science and engineering. Grantees are wholly responsible
for conducting their project activities and preparing the results for
publication. Thus, the Foundation does not assume responsibility for
such findings or their interpretation.

NSF welcomes proposals from all qualified scientists, engineers and
educators. The Foundation strongly encourages women, minorities, and
persons with disabilities to compete fully in its programs. In
accordance with federal statues, regulations, and NSF policies, no
person on grounds of race, color, age, sex, national origin, or
disability shall be excluded from participation in, be denied the
benefits of, or be subjected to discrimination under any program or
activity receiving financial assistance from NSF (unless otherwise
specified in the eligibility requirements for a particular program).

*Facilitiation Awards for Scientists and Engineers with Disabilities
(FASED)* provide funding for special assistance or equipment to enable
persons with disabilities (investigators and other staff, including
student research assistants) to work on NSF-supported projects. See the
program announcement or contact the program coordinator at (703)
306-1636.

The National Science Foundation has Telephonic Device for the Deaf (TDD)
and Federal Information Relay Service (FIRS) capabilities that enable
individuals with hearing impairments to communicate with the Foundation
regarding NSF programs, employment, or general information. TDD may be
accessed at (703) 306-0090 or through FIRS on 1-800-877-8339.

**[PRIVACY ACT AND PUBLIC BURDEN STATEMENTS]{.underline}**

The information requested on proposal forms and project reports is
solicited under the authority of the National Science Foundation Act of
1950, as amended. The information on proposal forms will be used in
connection with the selection of qualified proposals; project reports
submitted by awardees will be used for program evaluation and reporting
within the Executive Branch and to Congress. The information requested
may be disclosed to qualified reviewers and staff assistants as part of
the review process; to applicant institutions/grantees to provide or
obtain data regarding the proposal review process, award decisions, or
the administration of awards; to government contractors, experts,
volunteers and researchers and educators as necessary to complete
assigned work; to other government agencies needing information as part
of the review process or in order to coordinate programs; and to another
Federal agency, court or party in a court or Federal administrative
proceeding if the government is a party. Information about Principal
Investigators may be added to the Reviewer file and used to select
potential candidates to serve as peer reviewers or advisory committee
members. See Systems of Records, NSF-50, \"Principal
Investigator/Proposal File and Associated Records,\" 63 Federal Register
267 (January 5, 1998), and NSF-51, \"Reviewer/Proposal File and
Associated Records,\" 63 Federal Register 268 (January 5, 1998).
Submission of the information is voluntary. Failure to provide full and
complete information, however, may reduce the possibility of receiving
an award.

Programs described in this publication are in the Catalog of Federal
Domestic Assistance No. 47.041, Engineering. Public reporting burden for
this collection of information is estimated to average 120 hours per
response, including the time for reviewing instructions. Send comments
regarding this burden estimate and any other aspect of this collection
of information, including suggestions for reducing this burden, to:
Suzanne H. Plimpton,Reports Clearance Officer; Division of
Administrative Services; National Science Foundation; Arlington, VA
22230.

**[YEAR 2000 REMINDER]{.underline}**

In accordance with Important Notice No. 120 dated June 27, 1997,
Subject: Year 2000 Computer Problem, NSF awardees are reminded of their
responsibility to take appropriate actions to ensure that the items
include: computer systems, databases, and equipment. The National
Science Foundation should be notified if an awardee concludes that the
Year 2000 will have a significant impact on its ability to carry out an
NSF funded activity. Information concerning Year 2000 activities can be
found on the NSF web site at
[http://www.nsf.gov/oirm/y2k/start.htm]{.underline}.

*The following items will be used to "Administratively Screen" all SBIR
proposals. If you fail to adhere to any of the rules listed below, your
proposal will be rendered "ineligible" and will be returned without
further consideration!*

1.  The font size for Phase I and Phase II proposals MUST be at least
    10-point or larger and at least 12 characters per 2.5. cm and no
    more than 15 characters per 2.5 cm. Margins should not be less than
    1.0 inches (2.5 cm).

2.  The Phase I proposal MUST NOT exceed 25 consecutive pages, and the
    Phase II proposal MUST NOT exceed 35. The only pages excluded from
    the page count are the following:

-   NSF Form 1225 (for Phase I and II)

-   Certification Page (for Phase I and II)

-   Reverse side of the Budget Page (for Phase I and II)

-   Information on Prior Phase II Awards (For Phase I see Chapter 3,
    Section 5, Part 12)

-   Part 13 Milestone Chart (Phase II Proposals only)

-   Part 14 Commercialization Plan and Follow-On Funding Commitment(s)
    (Phase II Proposals only)

-   Part 15 Company Commercialization History - (see Chapter 3, Section
    5, Part 12)

3.  A signed Certification Page (which is the reverse side of the Cover
    Page) MUST be included in the Phase I and Phase II proposal package.

4.  A statement from consultants MUST be included in the proposal
    package specifying tasks to be performed and daily rate not to
    exceed \$453 per day.

5.  Subcontractor budgets MUST be included in the proposal package
    (Attachment D).

6.  The proposal must arrive at NSF's Proposal Processing Unit (PPU) by
    5:00 p.m. (East Coast Time): **SBIR/STTR** **Phase I - June 9,
    1999**

**SBIR/STTR Phase II - July 15, 1999**[^1] **or January 12, 2000**

**National Science Foundation**

**Small Business Innovation Research and Small Business Technology
Transfer**

**1999 SBIR/STTR Phase I Program Solicitation and Phase II Instruction
Guide**

**CHAPTER 1.0 Program Description**

1.  **Summary**

> The National Science Foundation (NSF), an independent agency of the
> Federal Government, invites eligible small business concerns to submit
> Phase I proposals for its 1999 Small Business Innovation Research
> (SBIR) and Small Business Technology Transfer (STTR) Programs. The
> 1999-solicitation period for SBIR/STTR Phase I proposals **begins on**
> **March 1, 1999 and ends on June 9, 1999**. NSF will support high
> quality projects on important scientific, engineering, or
> science/engineering education problems and opportunities that could
> lead to significant commercial and public benefit if the research is
> successful.\
>  

The significant difference between the SBIR and STTR programs is that
the STTR requires researchers at universities and other research
institutions to play a significant intellectual role in the conduct of
each STTR project. These university-based researchers, by joining forces
with a small company, can spin-off their commercially promising ideas
while they remain primarily employed at the research institution.\
 

**1.2 Program Features**\
 

**1.2.1 Legislative Basis.** This SBIR solicitation is issued pursuant
to the authority contained in Public Law 97-219, as amended (Small
Business Innovation Development Act of 1982) (15 U.S.C. 638). SBIR
policy is provided by the Small Business Administration (SBA) through
the SBA Policy Directive, January 26, 1993.\
 

The STTR Program, currently in five Federal agencies, was established by
the Small Business Technology Transfer Act of 1992 (Public Law 102-564,
Title II). Under this program a small portion of a Federal agency\'s
extramural research and research and development (R/R&D) effort is
reserved for awards to small business concerns and their non-profit
research institution partners for cooperative research and development
efforts. For more information on the other STTR programs see website:
<http://www.sba.gov/sbir/>\
 

**1.2.2 Program Purposes.** The SBIR Program stimulates technological
innovation in the private sector, by strengthening the role of small
business concerns in meeting Federal research and development needs,
increasing the commercial application of federally supported research
results, and fostering and encouraging participation by socially and
economically disadvantaged persons and women-owned small businesses in
technological innovation.\
 

The primary objective of the NSF SBIR/STTR Program is to increase the
incentive and opportunity for small firms to undertake cutting-edge,
high risk, high quality scientific, engineering, or science/engineering
education research that would have a high potential economic payoff if
the research is successful. The STTR program further expands the
public/private partnership to include joint venture opportunities for
small businesses and non-profit research institutions. NSF expects
synergism in the proposed research. A team approach is required in which
at least one research investigator is employed by the small business
concern and at least one investigator is employed by the research
institution. The proposed research for both SBIR and STTR must be
responsive to the NSF program interests stated in the topic descriptions
of this solicitation (see [Chapter 8.0](../Chapt-8.htm)).\
 

**The NSF SBIR/STTR Programs do not support projects that are primarily
for demonstration, technical assistance, literature survey, and market
research. Patent application and patent litigation costs are not
supported under NSF SBIR/STTR awards.\
 **

NSF does not normally support bioscience research with disease-related
goals, including work on the etiology, diagnosis, or treatment of
physical or mental disease, abnormality, or malfunction in human beings
or animals. Animal models of such conditions or the development or
testing of drugs or other procedures for their treatment also are not
eligible for support. However, research in bioengineering, with
diagnosis or treatment-related goals, that applies engineering
principles to problems in biology and medicine while advancing
engineering knowledge, is eligible for support. Bioengineering research
to aid persons with disabilities is also eligible, as are biomedical
applications in certain areas of microelectronic information
processing.\
 

The SBIR/STTR Programs are not a substitute for existing unsolicited
proposal mechanisms used in other NSF programs. **Unsolicited proposals
will not be accepted under the SBIR/STTR Programs in either Phase I or
Phase II**.

**1.2.3 Program Funding.** Participating agencies conduct SBIR/STTR
programs by reserving a small percent of their research and development
budgets for funding agreements with small business concerns for R/R&D
during the first two phases of the three-phase process described here.
Each agency, at its sole discretion, selects the technical topics and
subtopics included in its Solicitation and selects its SBIR/STTR awards.
Phase III follow-on funding supports development efforts using non-SBIR
and usually non-Federal funding for commercial application of the
research supported by NSF under Phases I and II.\
 

NSF SBIR Phase I awards will be made for a maximum of \$100,000**;**
SBIR Phase II awards will be made for a maximum of \$400,000. A new
supplemental award will be made to eligible SBIR Phase II grantees for a
maximum of \$200,000. NSF STTR Phase I awards will be made for a maximum
of \$100,000; STTR Phase II awards will be made for a maximum of
\$450,000.\
 

**1.2.4 NSF Program Management.**  The mission of the National Science
Foundation is to promote the progress of science and engineering. NSF
serves the Nation by investing in research and education in all aspects
of science, mathematics, and engineering. NSF\'s investment in research
and education, contribution to the Federal research portfolio and
mission and goals are described in [*NSF in a Changing World: The
National Science Foundation\'s Strategic Plan* (NSF
95-24*)*](../TO%20BE%20SUPPLIED%20BY%20NSF)*.* This Strategic Plan
outlines the vision, mission and goals, and core strategies for the
accomplishment of those goals. NSF has identified four core strategies
that are designed to build a strong resource base on which its research
and education programs can draw. NSF\'s SBIR/STTR program goals are
aligned with these strategies in a specific way to:\
 

-   **Develop intellectual capital** - Make awards for research which
    builds upon recent discoveries in basic sciences and engineering and
    provides opportunities for individuals who have, or are working
    toward, advanced scientific, engineering, or education degrees.

-   **Strengthen the physical infrastructure** - Make awards which lead
    to development of new scientific, engineering, and education
    capability through commercialization of advanced instruments, new
    processes, and innovative software, etc.

-   **Integrate research and education** - Encourage awardees to
    disseminate research findings through scholarly journals and
    professional meetings.

-   **Promote partnerships** - Encourage awardees to engage in
    cooperative activities among industry, government (state, local,
    Federal), and academia.\
     

The SBIR/STTR program goals embody NSF Core Strategies to enhance the
Nation\'s scientific and engineering capacities. When proposals are
otherwise considered to be of approximately equal merit, proposals that
**more fully** support such SBIR/STTR program goals may be given more
favorable consideration in the evaluation process.\
 

**Program Emphasis for 1999-National Critical Technologies.** The NSF
SBIR/STTR Program encourages proposals across all fields of science and
engineering supported by the Foundation. (See [Chapter 8.0, Research
Topic Descriptions](../Chapt-8.htm).) Within that framework, the
following critical technology areas of national importance are
emphasized:\
 

-   Applied Molecular Biology

-   Distributed Computing and Telecommunication

-   Integrated, Flexible Manufacturing

-   Materials Synthesis and Processing

-   Microelectronics and Optoelectronics

-   Pollution Minimization and Remediation

-   Software

-   Transportation

When proposals are otherwise considered to be of approximately equal
merit, proposals in these areas may be given extra consideration in the
evaluation process.\
 

**1.3 Three-Phase SBIR/STTR Programs**\
 

**1.3.1 Phase I.** SBIR Phase I is a six-month experimental or
theoretical investigation on the proposed innovative research or
activity. It should determine the scientific, technical and commercial
merit, and feasibility of the idea or concept. The STTR Phase I project
is a collaborative effort with a Research Institution (see [Chapter
2.0](../Chapt-2.htm) for the definition) and is a 12-month effort. The
work proposed for SBIR/STTR Phase I should be suitable in nature for
subsequent progression to Phases II and III. Contingent upon the success
of the effort in Phase I, the ultimate aim of the research should be to
develop products, processes, devices, or techniques, that can be
commercialized. The Principal Investigator should approach the SBIR/STTR
Programs with the objective of bringing the project to fruition in Phase
III, via a Phase II effort.\
 

SBIR Phase I proposals should be prepared in accordance with
instructions in [Chapter 3.0.](../Chapt-3.htm) STTR Phase I proposals
should be prepared in accordiance with instructions in [Chapter
9.0](../Chapt-9.htm). Evaluation and selection criteria are described in
[Chapter 4.0.](../Chapt-4.htm)

A Phase I Final Report is required for the completion of a Phase I
SBIR/STTR project. All Phase I Final Reports should be prepared in
accordance with the instructions in [Chapter
5.0](../Chapt-5.htm)[.]{.underline} SBIR and STTR Phase I awards are
fixed-price grants.

**1.3.2. Phase II.** Phase II further develops the proposed concept,
building on the feasibility project undertaken in Phase I and
incorporating the reassessment of scientific, technical, and commercial
merit and feasibility, as well as other relevant information in the
Phase II plans. Only an NSF SBIR/STTR Phase I grantee who successfully
completes a Phase I project and submits an acceptable Phase I Final
Report is eligible to submit an NSF SBIR/STTR Phase II proposal pursuant
to that Phase I award. Phase II SBIR/STTR awards have an expected period
of performance of 24 months.

SBIR Phase II proposals should be prepared in accordance with
instructions in [Chapter 10.0](../Chapt-10.htm) and STTR Phase II
proposals should be prepared in accordance with instruction in [Chapter
9.0](../Chapt-9.htm). Evaluation and selection criteria are described in
[Chapter 4.0](../Chapt-4.htm). Phase II Semi-Annual Reports are required
as discussed in [Chapter 5.0](../Chapt-5.htm).

**1.3.3 Phase III.** The objective of Phase III is to pursue commercial
applications of the government-funded research. Phase III is to be
conducted with non-SBIR/STTR funds (either Federal or non-Federal). NSF
normally will not fund Phase III efforts. NSF favorably views those
firms which have valid business arrangements that pursue continued
development of applications developed under NSF SBIR/STTR Phases I and
II. For further discussion, see sections covering commercial potential,
and Phase II commercialization plan and Follow-On funding commitment(s)
found in [Chapter 10, Section 10.2, Part 14.](../Chapt-3.htm)

**1.4 Eligibility to Participate in SBIR and STTR**

**1.4.1 Small Business Concern.** Only firms qualifying as small
business concerns as defined in [Chapter 2](../Chapt-2.htm) of this
solicitation are eligible to participate in the SBIR/STTR program.
Socially and economically disadvantaged small business concerns and
women-owned small business concerns are particularly encouraged to
propose.

Proposals from joint ventures and partnerships are permitted, provided
the entity created qualifies as a small business in accordance with this
solicitation. Proposing firms are also encouraged to take advantage of
research expertise and facilities that may be available to them at
colleges, universities, national laboratories and from other research
providers. Such collaborations may include research subcontracts,
consulting agreements or the employment of faculty as \"Senior
Personnel\" and of graduate or undergraduate students as assistants by
the small business.

In an SBIR Phase I a maximum of one-third of the research and/or
research services, as determined by the total budget, may be used for
faculty/university and/or other consultant/subawardee participation. In
an SBIR Phase II a maximum of one-half of the research and/or research
services may be expended for any combination of consulting and
subcontracting by university faculty and/or other consultant/subawardee.

In the STTR Program (Phase I and II), research is to be conducted
jointly by a small business concern and a non-profit research
institution. Not less than 40 percent of the work conducted under an
STTR award must be performed by the small business concern, and not less
than 30 percent of the work must be performed by the non-profit research
institution. That is, a minimum of 40 percent of the total budget must
be allocated to the small business concern, and a minimum of 30 percent
of the total budget must be allocated to the cooperating research
institution.

**ONLY THOSE NSF SBIR/STTR PHASE I GRANTEES THAT HAVE SUBMITTED PHASE I
FINAL REPORTS (that have been accepted by the SBIR Program Manager) ARE
ELIGIBLE TO SUBMIT SBIR/STTR PHASE II PROPOSALS TO NSF.**

**1.4.2 Research Institution (pertains only to STTR proposals).**  The
cooperating research institution must qualify as a research institution
under the definition given in [Chapter 2](../Chapt-2.htm). However, NSF
does not normally support activities of those scientists and engineers
employed by Federally Funded Research and Development Centers (FFRDCs).

**1.4.3 Place of Performance.** For both Phase I and II, the R/R&D must
be performed in the United States (see [Chapter 2](../Chapt-2.htm)).

**1.4.4 Principal Investigator.** The Principal Investigator (PI) is
considered key to the success of the effort; therefore a PI\'s
involvement with the project must be substantial. The following
requirements are mandatory **for both Phase I and II:**

**PI Functions.** The functions of the PI are planning and directing the
SBIR project, leading it technically and making substantial personal
contributions during its implementation, serving as the primary contact
with NSF on the project, and ensuring that the work proceeds according
to the grant agreement. Competent management of PI functions is
essential to project success. The Phase I proposal shall describe the
nature of the PI\'s activities and the amount of time that the PI will
apply personally on the project.

**PI Qualifications.** The qualifications and capabilities of the
proposed PI and the basis for PI selection are to be clearly presented
in the proposal. If the individual who is proposed as PI is not an U.S.
citizen, he/she must legally reside in the U.S. and be legally empowered
to work in the U.S. at the time that an award is made. INS Form I-9
incorporates the requirements for non-US citizen residency with
information on participation in the SBIR and other Federal programs (see
http://www.ins.usdoj.gov/graphics/formsfee/forms/i-9.htm).

**Co-Principal Investigators.** Co-PIs are not permitted.

**Misrepresentation and PI Substitutions.** Misrepresentation of PI
qualifications and eligibility will disqualify a proposer, and legal
actions may be taken. A proposed substitution of a PI by a small
business concern requires NSF\'s approval. An advance 30 day written
approval (except in extraordinary circumstances, such as the death of
the PI) is required. PI change requests should be addressed to the
SBIR/STTR Program Manager or the Director, Industrial Innovation Group,
4201 Wilson Blvd., Room 550, Arlington, VA 22230 and must be approved in
writing by the Grants Officer. NSF expects the PI proposed in Phase I
would remain the same from the time of inception of the Phase I award
until its completion. It is also expected that the PI on a Phase II
project will be the same individual who served in the Phase I award. A
change in PI prior to an award could affect whether an award will be
made.

**Primary Employment.** The small business concern must certify in the
proposal that the primary employment of the PI will be with the small
business concern at the time of award and during the conduct of the
project. Primary employment means the PI spends more than one-half of
his/her time in the employ of the small business. The percent of time or
effort expended is calculated on a calendar-month basis.

**PRIMARY EMPLOYMENT WITH A SMALL BUSINESS PRECLUDES FULL-TIME
EMPLOYMENT AT ANOTHER ORGANIZATION.**

**Academic Affiliation and Non-Profit Organizations.** An individual
employed full-time by an academic institution may become eligible to
serve as the Principal Investigator if the individual provides a
statement signed by his/her Department Head and an Authorized
Organizational Representative of the institution approving a leave or
sabbatical leave, providing for a minimum of 51 percent release from
full-time employment at the academic institution for the full Phase I
and Phase II periods of performance, should the awards be made.

**The above statement approving release from employment at an academic
institution should be included as part of the Phase I proposal.**
**Academically-employed Principal Investigators - whether full-time or
part-time, tenured professors, adjunct professors, emeritus professors,
consulting professors, lecturers, research associates, research
scientists, or students, etc. - are urged to consult with an NSF SBIR
Program Director on any question about their eligibility prior to
submitting a proposal.**

Any proposed Principal Investigator whose employment at an academic
institution will terminate before the effective date of the award should
make an explicit statement to that effect in the proposal.  

**Research Support through an Academic Institution.** The National
Science Foundation has revised its policy to allow an individual serving
as a Principal Investigator on an SBIR award to simultaneously receive
research support through an academic institution, whether the source of
that support is public or private. An individual who is receiving
research support through an academic institution or an individual who
has pending proposals submitted through an academic institution prior to
receiving an SBIR award must disclose such current and pending support,
as discussed in [Chapter 3](../Chapt-3.htm)[,]{.underline} sections
covering current and pending support of PI and senior personnel.

Proposals which are overlapping or equivalent to research supported
through an academic institution will not be funded.

**Other Employment .** Proposed Principal Investigators who are not
primarily employed by the small firm or by an academic institution at
the time the proposal is submitted must demonstrate how they will meet
the eligibility requirements. **Letters pertaining to leave or
certifications of intent to become full-time employees of the firm
should be included in the proposal.**

**1.4.5 Research Institution Investigator (pertains only to STTR
proposals).**   The Research Institution Investigator must have a
primary employment affiliation with the research institution. NSF will
not normally make an award to a small business concern that has a
business association with the Research Institution Investigator.

**1.5 General Information**

**1.5.1 Electronic Distribution of Solicitation.** The 1999 SBIR/STTR
Phase I Solicitation and Phase II Instruction Guide is available only
via electronic means through the NSF SBIR/STTR home page (
<http://www.eng.nsf.gov/sbir/>. Printed copies of the solicitation will
not be distributed. Potential proposers are encouraged to check the
SBIR/STTR home page for updates on the program. Any updates or
corrections to the solicitation will be posted there.

**1.5.2 Other Means of Contacting NSF SBIR**

**SBIR Program Support Office:**

1.  E-mail. The e-mail address for contacting NSF with questions
    regarding the 1999 SBIR/STTR Phase I Solicitation and Phase II
    Instruction Guide is: [sbir@nsf.gov]{.underline}.

2.  Facsimile Machine. Inquiries and requests may be made by facsimile
    to 703-306-0337 and must include the name, address, and telephone
    number of the person making the request and the specific questions
    or requests legibly printed.  

**NSF SBIR Program Coordinator.** Requests for general information about
the NSF SBIR program should be mailed to: NSF SBIR Program Office, 4201
Wilson Blvd., Suite 550, Arlington, VA 22230.

**1.5.3 Questions about this Solicitation.** To ensure fairness,
questions relating to the intent and/or content of research topics in
this solicitation cannot be answered once the solicitation is open. Only
questions requesting clarification of solicitation instructions and
administrative matters will be answered.

**1.5.4 Questions Regarding Proposal Status.** Except for an
acknowledgment card (to be mailed within 30 days of the closing date),
information about proposal status **will not be available** until
letters of award/declination are received by the small business concern.
(See [Chapter 6.0](../Chapt-6.htm).)\
 

**CHAPTER 2.0 Definitions**

 

**2.1 Commercialization.** The process of developing markets and
producing and delivering products or services for sale (whether by the
originating party or by others). As used here, commercialization
includes both government and non-government markets.\
 

**2.2 Consultant.** A person, not an employee of the small business
concern, who is cited anywhere in the proposal as contributing to the
research - whether paid or unpaid.\
 

**2.3 Development.** 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.\
 

**2.4 Cooperative Research and Development.** Research and development
conducted jointly by a small business concern and a research institution
in which not less than 40 percent of the work is performed by the small
business concern, and not less than 30 percent of the work is performed
by the research institution.\
 

**2.5 Effective Date.** The effective date of a grant is the date
specified in the grant award letter on or after which the proposed work
is expected to begin. Do not confuse the ***\"award date\"*** (appearing
in the upper right hand corner of the letter, indicating when the award
is made administratively) with the ***\"effective date,\"*** appearing
in the body of the letter.\
 

**2.6 Expiration Date.** The expiration date of the Phase I grant is the
last day of the six-month grant performance period. For Phase II awards,
the expiration date is last day of the grant support period which is
normally 24 months in duration.\
 

**2.7 Equivalent Proposals.** One proposal that entails the performance
of work that completely overlaps with the work entailed by another
proposal.\
 

**2.8 Grant Support/Performance Period.** For Phase I awards, the grant
support/performance period is the six-month period beginning on the
effective date and ending six months thereafter. For Phase II awards,
the grant support/performance period is the period beginning on the
effective date and normally ending 24 months thereafter.\
 

**2.9 Permanent Equipment.** Equipment is defined as an article of
non-expendable, tangible personal property, having a useful life of more
than one year and an acquisition cost of \$5,000 or more per unit.\
 

**2.10** **Principal Investigator.** The Code of Federal Regulations,
Title 42, Part 52, defines a Principal Investigator as *\"the single
individual designated by the grantee in a grant application who is
responsible for the scientific and technical direction of the
project.\"* NSF does not permit Co-Principal Investigators on SBIR
proposals.\
 

**2.11 Overlapping Proposals.** One proposal that entails the
performance of work or portions thereof that overlaps with the work
entailed by another proposal.\
 

**2.12 Research Institution.** A research organization that is (1) a
nonprofit university, or (2) a nonprofit research institution as defined
in section 4(5) of the Stevenson-WydlerTechnology Innovation Act of
1980, or (3) a contractor-operated federally-funded research and
development center, as identified by the National Science Foundation in
accordance with the government-wide Federal Acquisition Regulation
issued in accordance with section 35(c) (1) of the Office of Federal
Procurement Policy Act (or any successor legislation thereto).\
 

**2.13 Research Institution Principal Investigator.** The single
individual designated by the Research Institution who is responsible for
the scientific and technical direction of the project.\
 

**2.14 Research or Research and Development (R/R&D).** Any activity that
is a (1) systematic, intensive study directed toward greater knowledge
or understanding of the subject studied, (2) a systematic study directed
specifically toward applying new knowledge to meet a recognized need, or
(3) a systematic application of knowledge toward the production of
useful materials, devices, systems, or methods, including design,
development, and improvement of prototypes and new processes to meet
specific requirements.\
 

**2.15 Small Business Concern (SBC).** A business concern that at the
time of the Phase I and Phase II awards meets the following criteria:\
 

-   It is independently owned and operated, is not dominant in the field
    of operation in which it is proposing, has its principal place of
    business located in the United States, and is organized for profit.\
     

-   It is at least 51 percent owned, or in the case of a publicly owned
    business, at least 51 percent of its voting stock is owned, by
    United States citizens or lawfully admitted permanent resident
    aliens.\
     

-   It has, including its affiliates, a number of employees not
    exceeding 500, and meets the other regulatory requirements found in
    13 CFR Part 121. Business concerns, other than licensed investment
    companies, or state development companies qualifying under the Small
    Business Investment Act of 1938, 15 U.S.C. 661, et seq., are
    affiliates of one another when either directly or indirectly, (a)
    one concern controls or has the power to control the other; or (b)
    third parties (or party) control(s) or has the power to control
    both. Control can be exercised through common ownership, common
    management, and contractual relationships. The term \"affiliates\"
    is defined in great detail in 13 CFR 121.3-2(a). The term \"number
    of employees\" is defined in 13 CFR 121.3.2(t). Business concerns
    include, but are not limited to, any individual, partnership,
    corporation, joint venture, association, or cooperative.\
     

**2.16 Socially and Economically Disadvantaged Small Business.** A
socially and economically disadvantaged small business concern is one
that is at least 51 percent owned by one or more socially and
economically disadvantaged individuals and whose management and daily
business operations are controlled by one or more such individuals.
\"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.\
 

**2.17** **Socially and Economically Disadvantaged Individual.** 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 SBA to be
socially disadvantaged, and 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). For more information on this
definition, contact the SBA (<http://www.sbaonline.sba.gov/>).

**2.18 Subaward *(a.k.a. contract or subcontract)*.** Any agreement,
other than one involving an employer-employee relationship, entered into
by the small business concern calling for supplies or services required
solely for the performance of the original funding agreement.\
 

**2.19 Technical Data.** Data developed by the grantee during the
performance of a Small Business Innovation Research (SBIR) grant, such
as information relating to an invention, a manufacturing process, or
software developed under the grant.\
 

**2.20 Women-Owned Small Business.** A small business that is at least
51 percent owned by a woman or women who also control and operate it is
women-owned. *\"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.

**CHAPTER 3.0 Proposal Preparation Instructions and Requirements for
SBIR Phase I**

**3.1. Fundamental Considerations**

**3.1.1 Responsiveness to NSF Topics.** Designate ***one, and only
one***, of the numbered topics listed in [Chapter 8.0.](../Chapt-8.htm)
The topic name and, if applicable, the appropriate subtopic letter, must
be identified on the cover sheet. A firm may submit separate proposals
on different topics or different proposals on the same topic under this
Solicitation. Firms are encouraged to submit their **best** ideas in
response to this Solicitation. Multiple submissions will not necessarily
result in multiple awards.

Projects involving research on human subjects must ensure that subjects
are protected from research risks in conformance with the Common Rule
(*Federal Policy for the Protection of Human Subjects*). Awards
involving human subjects will require grantee compliance with the NSF
regulation, entitled, \"Protection of Human Subjects,\" 45 CFR 690.
Projects involving vertebrate animals will comply with the Animal
Welfare Act (7 USC §§ 2131-59) and the regulations promulgated
thereunder by the Secretary of Agriculture (CFR, Title 9, Subchapter A,
Parts 1, 2, 3, and 4) pertaining to the care, handling and treatment of
vertebrate animals held or used for research, teaching or other
activities supported by Federal Grants. For more information reference
the Grants Policy Manual at:
[[http://www.nsf.gov:80/bfa/cpo/gpm95/start.htm]{.underline}](http://www/).

**3.1.2 Phase I Proposal Objectives.** A Phase I proposal must describe
the research effort needed to investigate the feasibility of the
proposed scientific or technical innovation. The objective of the Phase
I effort must be to determine whether the innovation has sufficient
technical merit for proceeding into Phase II.

**3.1.3 SBIR/STTR Project Requirements.** The deliverable item at the
end of an SBIR/STTR Phase I grant shall be a professional quality report
that justifies, validates, and defends the experimental and theoretical
work accomplished. Furthermore, this report must demonstrate the basis
for judgments about technical merit and feasibility of the innovation
presented in the Phase I proposal, and it should connect the Phase I
results to Phase II follow-on R/R&D and commercial applications.

The deliverable item for Phase II grants shall be a professional quality
report that addresses the results of the project, validating the
innovation and the potential for implementation of commercial
applications.

**3.1.4 Unacceptable Objectives.** Proposed efforts directed toward
systems studies; market research; commercial development of existing
products or proven concepts; straightforward engineering design for
packaging or adaptation to specific applications; studies, laboratory
evaluations; incremental product/process improvements; and modifications
of existing products without innovative changes are examples of projects
that are not acceptable for SBIR/STTR.

**3.1.5 Multiple Proposal Submissions.** A proposer may submit any
number of **different proposals based on different unique innovations**
to any number of topics or to specific subtopics. Multiple proposals
based on a single unique innovation is discouraged.

**If duplicate proposals or equivalent proposals are submitted to
different topics, all proposals but one will be deemed inappropriate and
returned without further consideration.**

**3.2 General Requirements**

**3.2.1 Page Limitation.** A Phase I SBIR/STTR proposal shall not exceed
a total of 25 standard 8 1/2 inch X 11 inch (21.6 X 27.9 cm) pages,
including cover page, budget, and all enclosures or attachments (except
for the exempted documents noted below). Margins shall be 1.0 inch
minimum (2.5 cm). All material submitted, except for the exempted
documents, will be included in the page count. Samples, videotapes,
slides, or other ancillary items will not be accepted. **Proposals
exceeding the 25-page limitation will be rejected and returned without
consideration.**

**3.2.2 Type Size and Spacing.** No type size smaller than 10 point is
to be used for text or tables, except as legends on reduced drawings and
for inserted letters of consultant support. **Proposals prepared with
smaller font sizes will be rejected and returned without further
consideration.**

If constant spacing is used, there should be no more than 12 characters
per 2.5 cm, whereas proportional spacing should provide no more than an
average of 15 characters per 2.5 cm.

**3.3 Required Format.**

The required format for a Phase I NSF SBIR proposal is described in the
following paragraphs. All required items of information are to be
covered fully in the prescribed \"Part\" order (shown below), but the
space allocated to each will depend on the project chosen and the
proposer\'s approach. Promotional and non-project-related material
should not be included.

Each proposal submitted to the NSF SBIR program **must** contain the
following parts in the order presented:

1\. Proposal Cover Page and Certification Page ([Attachment
B](../Attach/Attach-B.htm)).

2\. Project Summary ([Attachment C](../Attach/Attach-C.htm)).

3\. Information about Principal Investigator/Project Directors
([Attachment A](../Attach/Attach-A.htm))

4\. Technical Proposal (12 parts), including graphics, and starting at
page 3 with a table of contents.

5\. Summary Proposal Budget ([Attachment D](../Attach/Attach-D.htm)) and
Budget Explanation Page (also required for each subawardee).

6\. Company Commercialization History ([Part 12](../Attach/Attach-N.htm)
).

All of these parts must be presented within the **25-page limitation**.
The Certification Page, the Information about Principal
Investigator/Project Directors, budget instruction page, and the Company
Commercialization History **do not count towards the page count**.

Each proposal should be reviewed carefully by the proposer and by others
knowledgeable on the subject to ensure inclusion of enough substantive
information for evaluation of technical merit and commercial potential.
NSF reserves the right not to submit to technical review any proposal
that it finds to have insufficient scientific, technical, or commercial
potential information; these proposals will be deemed inappropriate and
returned without further review.

**3.4 Proposal Cover Page and Project Summary.** The Proposal Cover Page
and the Project Summary are public information and the Government may
disclose them. Do not include proprietary information on these pages.

**3.4.1 Page 1: Proposal Cover Page and Certification (NSF Form 1207).**
A Proposal Cover Page is provided as [Attachment
B](../Attach/Attach-B.htm) (for SBIR Phase I proposals). The second page
is the Certification Page, and this **MUST BE** completed, fully signed
and included only with the original copy of the proposal; it should not
be included with any of the other copies of the proposal. The
Certification Page is a required document for all NSF SBIR proposals;
proposers not meeting this requirement will have all proposals returned
without further consideration. The title shall be concise, technically
valid, intelligible to the nonspecialist, and suitable for use in the
public press. If acronyms are used in the title, they must be spelled
out. NSF may edit the title of the project before making an award.

**3.4.2 Page 2: Project Summary (NSF Form 1307).** The Project Summary
page is provided as [Attachment C](../Attach/Attach-C.htm)**.** The
Project Summary should be written in the **third person**. The summary
should begin as follows: **\"This Small Business Innovation Research
Phase I project\...**.\" The technical abstract is limited to 200 words
and should not reveal proprietary information. Include a brief
identification of the problem or opportunity, the research objectives, a
description of the research, and the anticipated results, and potential
applications of the research. Complete the sections entitled Key Words
and Potential Commercial Applications of the Research.

In the event of an award, the Project Summary page will become public
information. NSF may edit the Project Summary before making it
information public.

**3.4.3 Information about Principal Investigator/Project Directors (NSF
Form 1225).** The Information about Principal Investigator/Project
Directors is provided as [Attachment A](../Attach/Attach-A.htm). Attach
this form to the proposal marked \"original\" and it should follow the
Certification Page in the original proposal. This form is not included
in the page count nor does it go to reviewers.

**3.5 Technical Proposal.** The technical proposal shall contain the
following parts in the following order. (Note: Parts that are not
applicable must be included and marked \"Not Applicable\".)

**Part 1: Table of Contents. Page 3** of the proposal shall begin with a
brief table of contents indicating the page numbers of each of the
sections of the proposal.

**Part 2: Identification and Significance of the Innovation.** The first
paragraph of Part 2 shall contain (1) a clear and succinct statement of
the specific innovation proposed and why it is an innovation, and (2) a
brief explanation of how the innovation is relevant and important to
meeting the need described in the topic narrative. Include anticipated
benefits to the nation.

**Part 3: Phase I Technical Objectives.** List and explain a few
measurable, specific objectives to be accomplished in the course of the
Phase I research, including the questions that must be answered to
determine the technical and commercial feasibility of the proposed
concept. Briefly describe the relationship to Phase II and Phase III
efforts.

**Part 4: Phase I Research Plan.** This section must provide a detailed
description of the Phase I research approach. The description should
indicate what is planned and how the research will be carried out. It
should include a technical discussion of the proposed concept, the
methods planned to achieve each objective or task, and the sequence of
experiments, tests, and computations involved. The research plan should
be linked to the objectives and the questions which the Phase I research
effort is designed to answer.\
 \
Discuss problems or obstacles to be overcome which would determine
whether or not the proposed concept is feasible. Also, anticipate the
questions and concerns that reviewers may have with regard to your
research plan and respond to these issues in this section.\
 \
Scheduling and staff activity charts are encouraged. Such charts may
include tasks, scheduled completion dates, and decision points. They may
also indicate which tasks are starting points for Phase II work.
Proposers are advised to avoid including proprietary information if at
all possible. See [Chapter 5.0](../Chapt-5.htm)[, Section
5.4]{.underline} that deals with treatment of proprietary information.

**Part 5. Commercial Potential.** NSF will evaluate this section to
assess the commercial potential of your concept. Based on the experience
of a number of successful small business innovations, the following key
questions can serve as a useful frame of reference to guide you at this
stage in developing a strategy for commercialization. These include the
following:

-   What are the potential customer needs that your type of product will
    fulfill?

-   Who are the customers?

-   How do customers satisfy those needs today and at what cost?

-   How big is the total market? (This is the number of customers with
    the needs times the cost for meeting the needs.)

-   What are the major trends affecting this market and what is the
    outlook?

-   What are the competing methods for fulfilling those needs?

-   Who are the competitors?

-   Why will customers choose your type of product over doing nothing or
    using competing approaches? (The answer should be made in the
    context of the economics of the customer\'s business.)

-   How will you make and deliver your products?

As these questions suggest, the central issue for commercialization of
research results is how well and efficiently current and/or emerging
customer needs might be fulfilled. Even if an innovation is likely to be
more economical or effective, arguments still need to be made showing
that a significant number of potential customers would indeed adopt the
innovation. Thus, ultimately a careful description of the scope of the
market is important for the evaluation. Such a description would include
not only estimates of direct applications of the innovative technology,
but also, where appropriate, imaginative applications which might be
envisioned to emerge during the three-to-five year period when research
and commercialization activities would take place.

One approach for organizing commercialization information would be to
describe a set of future circumstances under which application of the
innovation might be realized, while a second approach could focus on
defined customer needs and the proposed product\'s ability to meet them.
A plausible argument should be constructed about how the successful
Phase I and Phase II research projects would mesh with the anticipated
and/or current market needs, resulting in a highly successful commercial
outcome. Either of these approaches could provide a coherent \"story
line\" which will be useful not only in developing a strategy for
commercialization, but also in the sections of the proposal describing
significance, technical approach, research, and participants.

At the Phase I stage, the above questions should serve to direct and
help you organize your thinking about the crucial issues of
commercialization. By the time you get to Phase II, your strategy for
commercialization should have evolved to a plan for commercialization
with the answers to most of the above questions being well specified. A
comprehensive assessment of the commercial potential of applications of
research results based on the proposing organization\'s description of
its commercialization plan, will take place at the Phase II stage.

**Phase I awardees are encouraged to think early about potential
commercial applications of their research with the same depth and
creativity as they devote to the research problem itself*. ***There may
be diverse and distinct applications of the same research, which have
excellent commercial potential. By identifying multiple product/process
applications such as those in emerging technology areas, Phase I
awardees can identify potential partners, sources of funding
commitments, and new markets. \"Market pull\" is the factor for
successful commercialization of SBIR/STTR projects.

Some of the strategies for commercializing your SBIR/STTR results are as
follows:

-   Finance and do your own R&D, manufacturing, and marketing of the
    product;

-   Form a joint venture to do the R&D, manufacturing, and marketing of
    the product;

-   Subcontract the manufacturing to a competent company in the field
    but retain the marketing function;

-   Enter into a marketing agreement with a third party in the field but
    retain the manufacturing function; or

-   License to other companies for separate markets, geographical areas,
    specific product lines, or foreign markets.

A useful reference that a small company may use to develop a
commercialization plan, is the *Business Plan for Scientists and
Engineers* (this is a suggestion not an endorsement) offered by:

Dr. Jenny Servo, President\
Dawnbreaker, Inc.\
2117 Buffalo Road, Suite 193\
Rochester, NY 14624\
Phone: (716) 264-0510\
Fax: (716) 264-0782

**Part 6. Company Information and Management Team.** Significant
consideration is placed on a company\'s current technical and
administrative posture and plans for future growth. As part of this
section you are required to state the number of employees and the
distribution into the following categories:

-   Technical

-   Administrative (including legal)

-   Management

-   Manufacturing (including sales)

Indicate number of full time and part time employees.

For young or newly formed companies please address future staffing
plans.

Please state company\'s financial record for the past year specifying
income for each of the following areas:

-   Sales

-   Licensing

-   Contracts and Consulting

-   Other

The management team is a very important element in bringing research to
commercialization. Identify key personnel involved in Phase I activities
including their directly related education, experience, and
bibliographic information. Where vitae are extensive, summaries that
focus on the most relevant experience or publications are desired and
may be necessary to meet proposal page and font requirements. Key
personnel are the principal investigator and other individuals whose
expertise and functions are essential to the success of the project.
**The principal investigator and senior personnel must be employees of
the small business concern.**

This part shall also establish and confirm the eligibility of the
principal investigator (see [Chapter 1.0](../Chapt-1.htm)[, Section
1.4.4]{.underline}), and indicate the extent to which other proposals
recently submitted or planned for submission in 1999 and existing
projects commit the time of PI concurrently with this proposed activity.
**Any attempt to circumvent the restriction on PIs working more than 49%
for any other company or non-profit organization by substituting an
ineligible PI will result in rejection of the proposal.** Letters
regarding employment releases and certifications of intent shall be
required prior to an award and should be included with the proposal. It
is important to start early on in determining who are the current and
anticipated management team members. In Phase II the management plan
becomes an important consideration in determining the company\'s ability
to take Phase I results through Phase II and ultimately to
commercialization.

**Part 7. Consultants and Subawards. For SBIR Phase I project,** a
minimum of two-thirds of the research must be performed by the small
business concern. Anticipated consultant services should be justified
and information furnished on each individual\'s expertise, primary
organizational affiliation, normal daily compensation rate, number of
days of expected service, and how his or her efforts will contribute to
the project. In addition, proposers must provide a signed statement from
each consultant, whether paid or unpaid, confirming his/her availability
and commitment, role in the project, and agreed consulting rate. Payment
for a consultant\'s services, exclusive of expenses, may not exceed the
consultant\'s normal rate or the daily maximum rate established annually
by NSF, whichever is less. The NSF maximum consultant rate of **\$453**
per day is the limit for personal compensation and is exclusive of any
indirect costs, travel, per diem, clerical services, fringe benefits,
and supplies.

Include signed statements from consultants which address the
availability, time commitment, research role in the project, and daily
rate of the consultant (not exceed \$453 per day). The number of days on
the project may be specified in the consultant\'s statement or by
referencing the proposal. **Failure to include the statements will
result in return of the proposal.**

If subawards (including contracts, subcontracts and other arrangements)
are used for research, describe the tasks to be performed and how these
are related to the overall project. No significant part of the research
or substantive effort under a NSF grant may be contracted or otherwise
transferred to another organization without prior NSF authorization
(this excludes the procurement of items such as commercially available
supplies, materials, equipment or general support services allowable
under the grant). The intent to enter into such arrangements should be
disclosed in the proposal.

Each subaward shall use a Summary Proposal Budget form ([Attachment
D](../Attach/Attach-D.htm)), providing detail of subaward costs by cost
category. **The subawardee project director and an authorized subaward
company representative must sign the subaward budget form*.*** Also
enter the total amount under Subawards (Line G.5) of the budget for the
overall project.

Purchases of analytical or other routine services from commercial
sources and the acquisition of fabricated components from commercial
sources are not regarded as reportable subaward activity. Such items \--
routine analytical or other routine services \-- should be reported in
the Budget under Other Direct Costs/Other (Item G.6). **All research,
including subaward and consultancy, must be carried out in the U.S.**

**Remember: Include Proposal Budget forms signed by both the subawardee
project director and company representative for each subaward.**

**Part 8. Equipment, Instrumentation, Computers and Facilities*.
***Provide a description that specifies significant equipment,
instrumentation, computers, and physical facilities necessary to
complete that portion of the research that is to be carried out by the
proposing firm in Phase I. Do not list equipment, instrumentation,
computers, and facilities that are not necessary for the proposed
project.\
 \
If the equipment, instrumentation, computers, and facilities for this
research are not the property (owned or leased) of the proposing firm,
include a statement signed by the owner or lessor which affirms the
availability of these facilities for use in the proposed research,
reasonable lease or rental costs for their use, and any other associated
costs. A statement confirming the availability of facilities for use
necessary for the proposed effort should be submitted with the proposal.

When purchasing equipment or a product under the SBIR/STTR funding
agreement, purchase only American-made items whenever possible.

**Part 9. Equivalent or Overlapping Proposals to other Federal
Agencies.** A firm may elect to submit proposals for essentially
equivalent work under other Federal program solicitations or may have
received or expect to receive other Federal awards for essentially
equivalent work. In these cases, the proposer **MUST** inform NSF of
related proposals and awards and must first certify on the Proposal
Cover page whether the proposer (a) has received Federal government
awards for related work, or (b) has submitted currently active proposals
for similar work under other Federal government program solicitations or
intends to submit proposals for such work to other agencies during 1999.
For all such cases, the following information is required:

-   The name, address and telephone contact of the sponsoring agency to
    which the proposal was or will be submitted;

-   Date(s) of proposal submission(s);

-   Title, number, and date of Solicitation under which the proposal was
    submitted or will be submitted;

-   Title and performance period of the proposal; and

-   Name and title of Principal Investigator (person-months (per year)
    (calendar-months) devoted by any personnel on the equivalent or
    overlapping project who overlap with PI and senior personnel on this
    proposal)

If no equivalent or overlapping proposals are under consideration, state
none. NSF will not make awards that essentially duplicate research
funded (or expected to be funded) by other agencies, although in some
cases NSF may fund portions of work described in an overlapping proposal
provided that the budgets appropriately allocate costs among the various
sponsors. **IF A PROPOSER FAILS TO DISCLOSE EQUIVALENT OR OVERLAPPING
PROPOSALS AS PROVIDED IN THIS SECTION, THE PROPOSER COULD BE LIABLE FOR
ADMINISTRATIVE, CIVIL, OR CRIMINAL SANCTIONS**.

**Part 10. Current and Pending Support of Principal Investigator and
Senior Personnel.** This section should show that the Principal
Investigator and senior personnel have the time available to perform the
proposed research during the grant period. The proposal should provide
information about all research to which the Principal Investigator and
other senior personnel either have committed time or have planned to
commit time (in the event that other pending projects are supported
during the SBIR/STTR Phase I period of performance), whether or not
salary for the person involved is included in the budgets of the various
projects. If none, state none.

For all on-going or proposed projects, excluding any proposals cited
above in [Section]{.underline} [3.5, Part 9*,* Equivalent or Overlapping
Proposals](#3.5,_P9) to other Federal agencies, or proposals that will
be submitted in the near future, involving the Principal Investigator or
senior personnel, provide the following information:

-   Name of sponsoring organization;

-   Title and performance period of the proposal; and

-   Person-months (per year) (calendar months) devoted to the project by
    the Principal Investigator and each of the senior personnel.

A Current and Pending Support statement should be included in the
proposal at the time of submission**.**

**Part 11.** **Summary Proposal Budget.** The NSF SBIR Summary Proposal
Budget ([Attachment D](../Attach/Attach-D.htm)) **must be used for
SBIR/STTR Phase I and Phase II proposals.** Read the Instructions for
Use of Summary Proposal Budget on the reverse side of the budget page
and provide the required explanation of budget items. Budget estimates
must be shown in detail on a budget explanation page. **The budget must
be signed by both the Principal Investigator and an authorized company
officer and may not exceed \$100,000 (including a fee of up to 7%) for
the SBIR Phase I proposal.** The budget should reflect the cost for work
to be done only after the effective date of the award. Note that an
awardee may not expend funds for any costs associated with the project
before the effective date of the award document signed by the NSF Grants
Officer.

List the Principal Investigator and senior personnel by name with their
time commitments budgeted in person-months (in the column headed by
\"CAL,\" which is an abbreviation for calendar, determine time to the
nearest tenth of a person-month) and the dollar amount for the
performance period. For example, the Principal Investigator for the SBIR
Phase I award performance period (typically a 6-month effort), the PI
must commit ***at least one person-month*** to the proposed effort.

The reimbursement rates for consultants are a direct cost that cannot
exceed the maximum daily rate paid to an Executive Level IV or
equivalent, currently \$453 per day. Indicate the number of days
proposed per consultant. Consultant travel should be shown under the
travel category. **Note, Consultant travel counts toward the one-third
maximum effort not performed by the small business concern**. Include
details on travel locations, purpose, and per diem estimates.

The budget should indicate in general terms the type of expendable
materials and supplies required with their estimated costs. The
breakdown should be more detailed when the cost is substantial, i.e.,
more than \$5,000.

**Permanent equipment and foreign travel cannot be included in the SBIR
Phase I budget*.*** **One trip to the National Science Foundation to
attend Grantees Workshop and to discuss research** **program with
SBIR/STTR Program Manager must be included in the Phase I budget.**

Reasonable fees (estimated profit) will be considered under both phases
of the solicitation. The amount of the fee approved by NSF will not
exceed seven percent (7%) of total indirect and direct project costs.
Cost sharing is permitted; however, it is not required nor will it be a
factor in the evaluation of a proposal.

Total NSF funding for the SBIR Phase I may exceed \$100,000 **only**
under the conditions described under [*Facilitation Awards for
Scientists and Engineers with
Disabilities*](../TO%20BE%20DEFINED%20BY%20NSF).

**Part 12. Prior SBIR/STTR Phase II Awards (this part of the proposal
does not count towards the page limit).** Firms that have received one
or more SBIR/STTR Phase II awards from NSF or other Federal agencies
must submit a report on Company Commercialization History. If a company
has never received a SBIR/STTR Phase II award, under the Part 12 heading
state zero awards. The following are necessary components for Part 12:

1.  Firm Name:

```{=html}
<!-- -->
```
1.  Number of SBIR/STTR Awards Firm Received from the Federal
    Government:

2.  Percentage of the Firm\'s Revenues the Last Fiscal Year from Federal
    SBIR and/or STTR funding:

3.  Identify each Phase II SBIR/STTR project the firm has received
    (include award number)

4.  Total revenue to Date From Resulting Sales of New Products to
    Government Agencies or Private Sector Customers.

5.  Funding Received from Government Sources:

6.  Funding Received from Private Sources:

    Using the following definitions to determine your responses to this
    section. **Sales -** sales of products resulting from the technology
    associated with the Phase II project. Sales also include the sale of
    technology or rights. Specify the sales revenues in dollars (1) to
    government agencies (federal, state, local and/or foreign) and (2)
    to the private sector. Include sales made by your firm as well as by
    other firms that may have acquired the SBIR/STTR-developed
    technology. **Non-SBIR/STTR funding -** government or private sector
    funds to further develop the technology (including R&D,
    manufacturing, marketing, etc.) associated with this Phase II
    project. **Apportion sales/funding -** if two or more Phase II
    projects contributed to a single product or technology right that
    has been sold or received non-SBIR/STTR funding among the
    contributing projects. For example, Phase II projects A and B lead
    to the sale of a new product/process/software \...to the DoD for a
    total of \$10 million and to retail software stores for \$12
    million. Under the heading \"Government Sales\" put \$5 million and
    under the heading \"Private Sector Sales\" put \$6 million for both
    Phase II projects A and B.

7.  Apportion Sales Revenue and Non-SBIR/STTR Funding Amount of the
    various Phase II projects without double counting:

-   Government Sales:

-   Private Sector Sales:

**3.6 Check List**

The proposal check list included in this Solicitation is provided to
assist the proposer in completing a responsive proposal. It should not
be submitted with the proposal. [SBIR/STTR Phase I Check
List](../Chklists.htm)\
 

 

**CHAPTER 4.0 Method of Selection and Evaluation Criteria**

All Phase I and II proposals will be evaluated and judged on a
competitive basis. NSF may elect to fund several or none of the
proposers to the same subtopic.\
 

**4.1 SBIR/STTR Phase I** Proposals judged to be responsive to this
solicitation will be evaluated on a competitive basis by peer review.\
 

**4.1.1 Administrative Screening.** Proposals will be screened to
determine responsiveness to the specific requirements of the
Solicitation. NSF will review each proposal to determine that it
satisfies all administrative requirements, described on the [STOP
Page](../Stoppage.htm). Proposers are advised that failure to satisfy
any one of these administrative requirements will render a proposal
nonresponsive to this Solicitation. Nonresponsive proposals will be
returned to the proposer without further consideration.\
 

**4.1.2 Technical Screening.** The following technical screening
criteria will be applied to proposals. If the answer to any of the
questions below is \"NO\", the proposal will be returned to the proposer
without further consideration.\
 

-   Does the proposal provide sufficient technical substance to enable
    review?

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-   Does the proposal fall within the scope of the topic/subtopic as
    delineated in the topic/subtopic description?

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-   Is appropriate research proposed in science, engineering or
    education?\
     

The proposal will be returned if the research proposed is for any of the
following purposes:\
 

-   Weapons research;

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-   Biomedical research (except bioengineering research , as discussed
    in [Chapter 1.0](../Chapt-1.htm)[, Section]{.underline}
    [1.2.2](../Chapt-1.htm#1.2), Program Purposes); or

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-   Classified research\
     

The proposal will also be returned if it is principally for
demonstration, technical assistance, literature survey or market
research. Patent application and patent litigation costs are not
supported under SBIR awards.

**4.2 Evaluation and Selection Criteria**

 Proposals that are found to be responsive to this Solicitation will be
competitively evaluated in a process of external merit review by
scientists, engineers, or educators knowledgeable in the appropriate
fields and by individuals familiar with commercial product development.
Most reviewers are employed by universities or by the Federal
Government. Others may be employees of nonprofit research laboratories,
recent retirees from industrial firms, and, on occasion, employees of
industrial organizations, including small business concerns. In all
instances, proposals will be handled on a confidential basis and care
taken to avoid conflicts of interest. Evaluations will be confidential
to NSF, to the proposed Principal Investigator, and to the submitting
small business concern, to the extent permitted by law.\
 

Normally, more proposals will be found technically meritorious than can
be supported. Evaluations by external reviewers are advisory to the
cognizant program officer for the topic or subtopic, who makes
recommendations on each proposal. Other factors that may enter into
consideration include the following: the balance among NSF programs;
past commercialization efforts by the firm where previous awards exist;
excessive concentration of awards in one firm or with one principal
investigator; participation by women-owned and socially and economically
disadvantaged small business concerns; distribution of awards across the
States; importance to science or society; and critical technology areas.
The SBIR/STTR Program then makes its recommendations for awards to the
Division of Grants and Agreements (DGA).\
 

**4.2.1 SBIR and STTR Phase I and II Proposals.** In the merit review
process, reviewers will consider the following criteria:\
 

Criterion 1. What is the intellectual merit of the proposed activity?
*This criterion addresses the overall quality of the proposed activity
to advance science and engineering through research and education.*

-   How important is the proposed innovation to advancing scientific and
    engineering knowledge and understanding?

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-   Is the proposed plan a sound approach for establishing technical and
    commercial feasibility?

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-   To what extent does the proposal suggest and explore unique or
    ingenious concepts or applications?

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-   What will be the significant contribution of the project to the
    research and knowledge base of the field?

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-   Is there sufficient access to resources (equipment, facilities,
    etc.)?

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-   How well qualified is the team (the Principal Investigator, other
    key staff, consultants, and subawardees) to conduct the proposed
    activity?

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-   For Phase II proposals: As a result of Phase I, did the firm succeed
    in providing a solid foundation for the proposed Phase II activity?\
     

Criterion 2. What are the broader impacts of the proposed activity?
*This criterion addresses the overall impact of the proposed activity.*

-   What is the potential use of the product or process developed in the
    project to advance NSF goals in research and education?

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-   What may be the commercial and societal benefits of the proposed
    activity?

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-   Does the proposal lead to enabling technologies (instrumentation,
    software, etc.) for further discoveries?

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-   How well does the proposed activity broaden the participation of
    underrepresented groups (e.g. gender, ethnicity, disability,
    geography, etc.)?

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-   Does the outcome of the proposed activity lead to a marketable
    product or process?

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-   Evaluate the competitive advantage of this technology vs. alternate
    technologies that can meet the market needs.

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-   How well is the proposed activity positioned to attract further
    funding from non-SBIR sources once the SBIR project ends?

Additionally, the following factors are also considered in making an
award:

-   **Integration of Research and Education** - One of the principal
    strategies in support of NSF\'s goals is to foster integration of
    research and education through the programs, projects, and
    activities it supports at academic and research institutions. These
    institutions provide abundant opportunities where individuals may
    concurrently assume responsibilities as researchers, educators, and
    students and where all can engage in joint efforts that infuse
    education with the excitment of discovery and enrich research
    through the diversity of learner perspectives. Principal
    Investigators should address this issue in their proposal to provide
    reviewers with the information necessary to respond fully to both
    NSF merit review criteria. NSF staff will give it careful
    consideration in making funding decisions.

-   **Integrating Diversity into NSF Programs, Projects, and
    Activities** - Broadening opportunities and enabling the
    participation of all citizens - women and men, underrepresented
    minorities, and persons with disabilities - is essential to the
    health and vitality of science and engineering. NSF is committed to
    this principle of diversity and deems it central to the programs,
    projects, and activities it considers and supports. Principal
    Investigators should address this issue in their proposal to provide
    reviewers with the information necessary to respond fully to both
    NSF merit review criteria. NSF staff will give it careful
    consideration in making funding decisions.

**NSF considers that commercial potential can probably be best
demonstrated by the small business concern\'s record of commercializing
SBIR/STTR or other research, and the existence of acceptable third-phase
follow-on funding commitments from private sector or non-SBIR/STTR
funding sources.** NSF will recognize the distinct issues faced by a
start-up or young company, which does not have a track record as
compared to an older, more seasoned operation. NSF also recognizes
issues such as a company\'s ability to retain control over the products,
processes, or techniques that can ultimately be developed as a result of
research. However, **it is incumbent upon the proposer to make a
persuasive case for a significant probability of commercial success.**\
 

**SBIR Phase IIB Proposals.** Reference [Chapter 10, Section
10.3]{.underline}.

**4.2.2 Evaluation of Follow-On Funding Commitment(s) and
Commercialization Plan.** In order to succeed in the SBIR/STTR Program,
the small business must convert the research results into innovative,
competitive technology. A top-notch management team is obviously a
necessary requirement for this part of the process. The
commercialization plan and the follow-on funding commitment play a key
role in NSF\'s evaluation.

The NSF will consider the following points when it assesses a company\'s
Follow-On Funding Commitment and Commercialization Plan:

8.  **The company\'s financial plan for commercialization:**

-   Does the Follow-On Funding Commitment have the potential to become a
    serious commitment?

-   If actual funds are committed in Phase II, how \"real\" is the
    commitment and to what extent will the additional funds enhance the
    project?

-   If actual funds are not committed, is the company negotiating with
    potential partners to enable commercialization? Has this been shown
    to NSF in the information provided by the proposer?

9.  **The company\'s planned commercialization activities:**

-   Does the innovation meet existing or emerging customer needs?

-   Will the proposed innovation be cost-effective?

-   What are the non-market benefits (e.g. social, education, or
    enabling scientific knowledge)?

10. **What does the innovation provide to Nation in the form of
    competitive advantages?**

11. **How realistic is the marketing plan to impact the market within
    five years of completion of the Phase II project.**

12. **Has the small company mapped out a strategic plan for maintaining
    its intellectual property?**

13. **Has the small company fully investigated a sound method of
    producing and bringing the innovation to market?**

14. **Has the small company successfully converted government supported
    research projects into commercial products?**

**4.2.3 Conditions of Follow-On Funding Commitments.** A few clearly
defined and measurable technical objectives should be stated in the
commitment agreement which, if achieved, would justify private
investment. The objectives do not have to be the same as those stated in
the Phase II proposal but they must be attainable within the scope of
the proposed SBIR government-funded research.\
 

A company should be in serious negotiations with potential third party
investors early in the SBIR/STTR process. This can be demonstrated
through letters of intent or signed commitment letters from third party
investors that Phase III funds will be made available. The commitment
may be contingent upon:\
 

-   Receipt of the Phase II award;

-   Phase II achieving a few stated key **[technical]{.underline}**
    objectives, which are agreed upon between the company and the
    prospective third party provider;

-   The resulting technology not being bypassed in the marketplace
    during Phase II; and/or

-   The potential technology continuing to appear economically viable at
    the end of Phase II.\
     

Small businesses with NSF SBIR/STTR Phase II awards should continue to
foster and implement third party commitments. In order to obtain the
goals of the NSF SBIR/STTR Program, supplemental Phase IIB funding is
available to those companies able to secure and demonstrate third party
financial support. For more details on the Phase IIB option reference
[Chapter 10.0, Section 10.3]{.underline}.\
 

The Phase II or Phase IIB financial commitments usually must be in the
form of money to the SBIR/STTR company. Commitments for a third party to
spend the money directly or to provide **in-kind services are
[not]{.underline} acceptable.** However, instruments, computers,
software, equipment, etc., provided to the proposing firm at fair market
value to the SBIR/STTR company are acceptable. 

**Each follow-on funding commitment involving a third party should
contain the following certification: \"The undersigned certify that they
agree to this funding commitment and that this information will be used
by NSF in evaluating the commercial potential of the company\'s
innovation and, therefore, that information will be a significant factor
in determining whether the SBIR/STTR Phase II proposal will be funded.
They further understand that willfully making a false statement or
concealing a material fact in this commitment or any other communication
submitted to the NSF is a criminal offense.\"** (U.S. Code, Title 18,
Section 1001)\
 

A number of companies have requested a sample follow-on funding
commitment letter. Although commitments are highly case dependent, two
suggested formats solely for guidance may be found in [Attachment
H](../Attach/Attach-H.htm). One is for investment in your company, and
one is for licensing to others. (Investment commitments are normally for
the SBIR company to pursue commercialization itself, including product
development, manufacturing, and marketing with private or venture
capital investments from a third party). We suggest you involve your
lawyer in any **final** agreement.\
 

**4.3 Debriefing of Unsuccessful Proposers.** When an award or
declination is made, verbatim copies of reviews, excluding the names of
the reviewers, summaries of review panel deliberations, if any, a
description of the process by which the proposal was reviewed, and the
context of the decision (such as the number of proposals and award
recommendations, and information about budget availability) are mailed
to the Principal Investigator. The company officer/organization
representative is also notified, but that individual only receives
information as to whether an award or a declination was made.\
 

Phase I proposals that have been declined or returned by NSF are not
eligible for reconsideration under the same Program Solicitation,
however, they can be resubmitted after suitable revision, under
subsequent Solicitations. Phase II proposals that have been declined are
not eligible for resubmission.

 

**CHAPTER 5.0 Considerations**

**5.1 Awards**\
 

SBIR/STTR Phase I and Phase II awards are subject to availability of
funds. NSF has no obligation to make any specific number of SBIR/STTR
Phase I or Phase II awards based on this solicitation, and may elect to
make several or no awards in any specific technical topic or subtopic.\
 

SBIR/STTR Phase I awards are fixed-price grants and will not exceed
\$100,000. Typically, about one-third of those grantees that receive
SBIR/STTR Phase I awards will apply for SBIR/STTR Phase II awards. The
SBIR Phase II fixed-price grants typically will not exceed **\$400,000**
per award and the STTR Phase II fixed-price grants typically will not
exceed **\$450,000** per award. SBIR/STTR Phase II awards normally will
be made for a 24-month period of performance.\
 

Reasonable fees for profit will be considered under both phases of the
solicitation. Cost-sharing is permitted, however, it is not required,
nor will it be a factor in the evaluation of a proposal.\
 

Prior to making an award, the Foundation may require certain
organizational, managerial, and financial information for various
administrative purposes. **If a proposal is seriously being considered
for Phase II funding, a pre-award budget review will be conducted by
NSF.** The submitting small business concern *will be requested at that
time* to provide documentation which supports the costs proposed. This
information should be returned to the requesting office as expeditiously
as possible (see [Chapter 5.0, Section 5.4.2,](#5.4.2) Certification of
Current Cost or Pricing Data Supporting Documentation Requirements, for
specific documentation requirements).\
 

NSF is not responsible for any expenditures made by the offeror before
award of any grant resulting from this Solicitation.

**After a Phase II proposal has been recommended for award by the SBIR
Program Office, approximately 60-90 days will be required for processing
by the Division of Grants and Agreements (DGA) and the Division of
Contracts, Policy, and Oversight, Cost Analysis and Audit Resolution
Branch (CAARB).**\
 

**5.2 Reporting Requirements. SBIR/STTR Phase I** grantees must submit a
Final Report; Phase II grantees also submit progress reports as
discussed below. Both Phase I and Phase II Final Reports must carry the
following acknowledgment and disclaimer on the cover page: \"*This
material is based upon work supported by the National Science Foundation
under award number \_\_\_\_\_\_\_\_\_\_\_\_. Any opinions, findings, and
conclusions or recommendations expressed in this publication are those
of the author(s) and do not necessarily reflect the views of the
National Science Foundation.\"* Acknowledgment of NSF support and the
disclaimer also must appear in publications of any materials whether
copyrighted or not, including software, product literature accompanying
sales, and any written material about the product, technique, or
process, based on, or developed under, NSF-supported projects. The
disclaimer may be omitted from any articles or papers published in
scientific, technical, or professional journals.\
 

All reports should be sent to the following address:\
 

National Science Foundation

Small Business Innovation Research Program

4201 Wilson Blvd., Room 550

Arlington, VA 22230

Attn: \<SBIR AWARD \#\
 

**5.2.1 Phase I Reporting.**\
 

**SBIR Phase I.** The SBIR Phase I Final Report using the Cover Page
([Attachment E](../Attach/Attach-E.htm)) and electronically submitting a
NSF Final Project Report
(<http://www.fastlane.nsf.gov.cgi-bin/NSF_PrjRpt>) are required parts
for a SBIR Phase I grant. Twelve (12) copies of a comprehensive SBIR
Phase I Final Report, not to exceed 30 pages in length and the
electronic submission of the NSF Final Project Report fulfills the NSF
reporting requirements for a SBIR Phase I grant. The SBIR Phase I Final
Report should be submitted by the 15th day of the month following the
end of the SBIR Phase I six-month grant performance period.\
 

**STTR Phase I.** The SBIR/STTR Phase I Final Report Cover Page
([Attachment E](../Attach/Attach-E.htm)) and electronically submitting a
NSF Final Project Report
(<http://www.fastlane.nsf.gov.cgi-bin/NSF_PrjRpt> are required parts for
a STTR Phase I grant. Twelve (12) copies of a comprehensive STTR Phase I
Final Report, not to exceed 30 pages in length and the electronic
submission of the NSF Final Project Report fulfills the NSF reporting
requirements for a STTR Phase I grant. The STTR Phase I Final Report
should be submitted within 30 days after the end of the STTR Phase I
12-month grant performance period.\
 

**SBIR/STTR Phase I Final Report.** Both the SBIR and STTR Phase I Final
Report shall begin with a verbatim statement of Phase I objectives from
the proposal followed by a summary description of the research carried
out, the research findings or results, and the potential commercial
applications of the research. The balance of the report should then
describe in detail these same topics as well as the problems addressed
and estimate of technical feasibility.\
 

The Phase I Final Report, including technical data, may be made
available to the public except for that portion of the report containing
technical data properly identified and marked as set forth in [Chapter
5.0, Section 5.5](#5.5), Treatment and Protection of Proposal
Information. To the extent permitted by law, except for evaluation
purposes, the Government will not release properly identified and marked
technical data outside the Government without the approval of the
grantee for a period of four (4) years from the expiration of a Phase II
grant or from the expiration of the Phase I grant, when no Phase II
award is made. The Phase I Final Report will be sent by NSF to the
National Technical Information Service (NTIS) four years following
expiration of the Phase II grant or four years from the expiration of
the Phase I grant when no Phase II award is made.\
 

**NSF Final Project Report**
([http://www.fastlane.nsf.gov/cgi-bin/NSF_PrjRpt]{.underline}) should be
submitted to NSF electronically as part of the SBIR final reporting
process. **A SBIR/STTR Phase II proposal cannot be processed until the
SBIR Phase I Final Report and the NSF Final Project Report have been
received from the grantee and accepted by NSF.**

**5.2.2 SBIR/STTR Phase II Reporting.** Phase II grantees must submit
Semi-Annual Progress Reports. In addition the SBIR Phase II Final Report
must contain two copies of the SBIR Phase II Final Report, the
Commercialization Report (see below) as well as electronically
submitting the NSF Final Project Report (see reference above). The SBIR
Phase II Final Report and the Commercialization Report must be submitted
together no later than 90 days following the expiration of the grant.
Final payments will not be made and pending or future proposals will not
be processed until the SBIR Phase II Final Report, the Commercialization
Report and the NSF Final Project Report are on file.\
 

**Semi-Annual Progress Reports** showing the results of your efforts
under Phase II grants are a requirement and must be submitted using the
SBIR/STTR Phase II Report Cover Page ([Attachment
I](../Attach/Attach-I.htm)). The report is typically 3-5 pages in
length. In addition, see the SBIR Phase II General Grant Conditions,
Article 5, (<http://www.nsf.gov/cgi-bin/getpub?sbirii>[)]{.underline}.
These reports provide information which justifies progress payments.
Inadequate content, format, or time expenditure details will delay
approval of progress payments.\
 

Under the standard payment schedule for Phase II grants (24-months), one
report is required within one month after the end of each respective
progress period. The SBIR/STTR Phase II Progress Reporting Format can be
found in [Attachment J](../Attach/Attach-J.htm).\
 

Each semi-annual progress report is required to contain an updated
Project Milestone Chart as discussed in [Chapter 10, Section 10.2, Part
13](../Chapt-10.htm#10.2). Each chart should reflect the cumulative
effort and expenditures. In addition to an updated milestone chart,
these reports must include an attachment providing details about
progress and/or completion of approved milestones.\
 

In addition to providing a full technical report, not to exceed 35 pages
in length, the **SBIR/STTR** **Phase II Final Report shows the actual
effort and expenditures** (for the same items that appeared in the
progress reports) **for the entire 24-month period of performance.**
State the Phase II objectives from the Phase II proposal followed by (1)
a summary description of the research carried out; (2) the extent to
which the stated Phase II objectives were met (including any commercial
prototype products, processes or devices that were produced); (3)
identified markets for the research findings or results obtained; (4)
problems remaining or unfulfilled research objectives; 5) the potential
commercial applications as a result of achieved research findings; and
(6) a highlighting of any surprising information or events that affected
the project. **All final reports must carry the acknowledgment found on
the cover page** (see [Chapter 5.0, Section 5.2.1](#5.2), *Phase I
Reporting).*\
 

Four years following expiration of the Phase II grant, the Phase II
Final Report will be sent by NSF to the National Technical Information
Service (NTIS).\
 

A **Commercialization Report** is a requirement of all Phase II grantees
as part of the Phase II Final Report package. Provide a
commercialization report covering the entire grant performance period.
It is also required that grantees continue reporting commercial results
yearly, for up to 5 years after the award period ends. **Two copies** of
the commercialization report should be submitted under the same cover
with the SBIR/STTR Phase II *Final Report* and the *NSF Final Project
Report* should be submitted electronically*.* The commercialization
report will cover the amount and type of continuing investment obtained
to pursue commercialization and any products, sales, royalties, patents,
or spin-offs attributable to the SBIR project, as well as changes in the
company\'s employment levels. The purpose of this report is to help
assess the extent of the commercial application derived from
SBIR-supported research. There is particular interest in whether the
original follow-on funding commitment was/will be honored and/or whether
additional and/or alternative agreements have been put in place. (For
further information or clarification contact the cognizant SBIR Program
Officer named in the Phase II award letter.)\
 

**5.3 Payment Schedules for SBIR/STTR Phase I and II.**\
 

**5.3.1 SBIR Phase I Payment.** No invoices are necessary under Phase I
grants. Phase I payments will be made as follows: one-third
approximately 3-4 weeks after the effective date of the award provided
that a Request for Initial Payment and ACH Vendor/Miscellaneous Payment
enrollment form are received by the NSF Division of Financial
Management, one-third three months later, and the remainder upon
acceptance of a satisfactory Phase I Final Report by NSF. The first two
payments are automatic. **The final payment will only be processed upon
acceptance of the Phase I Final Report and the electronic submission of
the NSF Final Project Report.** 

**5.3.2 STTR Phase I Payment.** No invoices are necessary under Phase I
grants. Phase I payments will be made as follows: 40 percent
approximately 3-4 weeks after the effective date of the award provided
that a Request for Initial Payment and ACH Vendor/Miscellaneous Payment
enrollment form are received by the NSF Division of Financial
Management, 40 percent six months after the award, and the remainder
upon acceptance of a satisfactory Phase I Final Report by NSF.\
 

**5.2.3 SBIR/STTR Phase II Payment. Unless otherwise stated in the grant
letter,** NSF will typically make payments as follows:\
 

-   Twenty-five percent (25%) advance payment will be made upon receipt
    of an SBIR/STTR Award Request for Initial Payment Form;

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-   Twenty percent (20%) upon acceptance by NSF of the first semi-annual
    progress report (usually about the 6th month of the grant
    performance period);

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-   Twenty percent (20%) upon acceptance by NSF of the second
    semi-annual progress report (usually about the12th month of the
    grant performance period);

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-   Twenty percent (20%) upon acceptance by NSF of the third semi-annual
    progress report (usually about the18th month of the grant
    performance period); and

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-   The remaining fifteen (15%) will be paid upon acceptance by NSF of
    the SBIR Phase II Final Report, NSF Final Project Report, and the
    Commercialization Report.\
     

(See the SBIR Phase II General Grant Conditions, Articles 5 and 6,
<http://www.nsf.gov/cgi-bin/getpub?sbirii>).\
 

**5.4  Accounting Systems (ESSENTIAL FOR SBIR/STTR Phase II
proposals).** Organizations receiving grant awards are required to have
an adequate accounting system. Adequate accounting systems provide
assurances to the Federal Government that organizations can account for
expenditure of federal funds in accordance with applicable regulations,
and terms and conditions of the award. At the very minimum, adequate
accounting systems provide for:\
 

-   Detailed budget preparation with proposed costs based on actual
    historical cost data;

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-   Identification of costs (budgeted costs and actual expenses) by
    project/grant;

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-   Identification of costs as direct, indirect, and unallowable;

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-   Complete and accurate financial reports (including balance sheets
    and income statements); and

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-   Maintenance of adequate source documentation (purchase orders,
    invoices, canceled checks, etc.).

If the SBIR/STTR Program is considering a Phase II proposal for award,
the proposing small firm will be required to support the existence of an
adequate accounting system. If an organization has been audited by
Defense Contract Audit Agency (DCAA), or has been audited by another
Federal Agency, the organization should provide a copy of the review
and/or audit report resulting from the audit or review.\
 

**All firms should complete and provide a copy of the Information
Concerning Financial Management Systems** form ([Attachment
K](../Attach/Attach-K.htm)). This form will be reviewed by the Cost
Analysis and Audit Resolution Branch. Possible accounting system
deficiencies, and suggestions for correcting deficiencies will be
discussed with the submitting organization.

CAARB will not request submission of **Information Concerning Financial
Management Systems** or make recommendations for correcting deficiencies
unless the SBIR Program has indicated that a proposal is seriously being
considered for award.\
 

**5.4.1 Time and Effort Reporting.** Time and effort records must be
maintained for an organization\'s employees so that salary charges to a
grant can be adequately supported. (See Article 5 of the SBIR Phase II
Grant General Conditions, <http://www.nsf.gov/cgi-bin/getpub?sbirii>.)
An adequate time and effort record contains the following information:
(1) the name and signature of the employee; (2) the hours an employee
worked each day during a given pay period; (3) the activities of the
employee during the pay period (i.e., project, general and
administrative, vacation, sick, leave without pay, etc.); and, (4) the
name and signature of the employee\'s supervisor.\
 

Corrections to a time and effort record should be in ink and initialed
by the employee.\
 

Organizations should provide a copy of their time and effort record as
an attachment to the \"Information Concerning Financial Management
System\" form. The following sample timesheet is provided to assist you
in creating a time and effort record form should your organization not
currently maintain these records.

  ---------------------------------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -------
  **Bi-Monthly Time** Record                                                                                                     

  Employee Name                                                                                                                  
  \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_                                                                                       
  Employee Signature                                                                                                             
  \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_                                                                                   
  Date: \_\_\_\_\_\_\_                                                                                                           

  Supervisor Name                                                                                                                
  \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_                                                                                       
  Supervisor Signature                                                                                                           
  \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_                                                                                   
  Date: \_\_\_\_\_\_\_                                                                                                           

  Month:                                         16   17   18   19   20   21   22   23   24   25   26   27   28   29   30   31   Total

  Project:                                                                                                                       

                                                                                                                                 

                                                                                                                                 

                                                                                                                                 

                                                                                                                                 

  Holiday                                                                                                                        

  Vacation                                                                                                                       

  Sick leave                                                                                                                     

  Other:                                                                                                                         

                                                                                                                                 

  Total                                                                                                                          

  Note: Corrections should be made in ink and                                                                                    
  initialed by employee.                                                                                                         
  ---------------------------------------------- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- ---- -------

 **5.4.2 Certification of Current Cost Or Pricing Data. If a proposal is
seriously being considered for funding, a pre-award budget review will
be conducted by NSF.** The submitting small business concern *will be
requested at that* time to provide documentation which supports the
costs proposed. (See below, for specific documentation requirements.)
Subsequent to this review, but prior to NSF making an award, the small
business concern will be required to submit a second Certificate of
Current Cost or Pricing Data ([Attachment G](../Attach/Attach-G.htm))
certifying that the supporting documentation submitted is based on
accurate, complete, and current cost and pricing data.\
 

Under each budget category below the cost/pricing data which will be
requested for each cost category is shown. **It should be noted that
proposed costs which cannot be supported by adequate cost/pricing data
will not be funded and will result in a reduction in the requested
amount of funding.**\
 

It should also be noted that unallowable costs will not be funded
(either as direct costs or as part of the indirect cost rate). Examples
of unallowable costs are as follows: advertising (except when related to
employment), bad debt, contributions, donations, entertainment, fines,
penalties, interest, lobbying, losses on other contracts, pre-award
costs, and Federal income taxes. More information on unallowable costs
can be found in Subpart 31.2 of the Code of Federal Regulations Title
48, Federal Acquisition Regulations (FAR), Chapter 1 (Parts 1 though 51)
which can be obtained by contacting the Government Printing Office at:
(202) 512-1800 or at <http://www.arnet.gov/far> .\
 

**Current Cost Or Pricing Data Supporting Documentation Requirements:**

**Salaries and Wages -** (1) For each named individual, who is presently
employed by the organization, provide prior year\'s W-2 and/or current
payroll register documenting current pay rate. (2) For each named
individual who is not presently employed by the organization, provide an
employment agreement stating the rate of payment and also a statement
setting forth the organization\'s considerations in determining the rate
of pay offered. (3) For positions where specific individuals have not
been named, provide an explanation of how the rates were determined and
any related documentation (i.e., W-2 of an individual presently employed
by the organization in the same or in a similar position).\
 

**Fringe Benefits -** If fringe benefits are not included in the
indirect cost rate(s) and are instead proposed as a direct cost item,
provide the categories of costs (FICA, health benefits, etc.) included
and the related amounts.\
 

**Permanent Equipment -** Permanent equipment is defined as an item of
nonexpendable, tangible personal property, having a useful life of more
than one year and an acquisition cost of \$5,000 (five thousand) or more
per unit. For each item, provide cost data from three sources which can
be in the form of written quotations and/or copies of pricing
information contained in catalogues, trade journals, etc. In situations
where equipment can only be provided by one specific source provide a
sole source justification and a written quote from this source.\
 

**Travel -** Provide an itemization of travel which should include the
destination, purpose of travel, number of days in travel status, and the
estimated costs for items included in the amount (airfare, cab fare, car
rental, per diem rates, hotel, and other incidentals).\
 

**Materials and Supplies -** Provide an itemized listing of all items
included in the proposed amount. (Additional supporting documentation
could be requested when determined to be appropriate.)\
 

**Publication Costs/Documentation/Dissemination -** Provide an
explanation of items included in this amount and the per item cost
(e.g., the estimated number of pages and the per page cost).\
 

**Consultant Services -** For each consultant, provide an agreement
which includes the following information: (1) the services to be
provided; (2) the period of performance and the consultant\'s
availability; (3) the qualifications of the consultant to perform the
work; and (4) the rate of pay (not to exceed \$453 per day). It will
also be necessary to provide evidence that the consultant was chosen
using a competitive selection process, in the form of other quotations
for the same services, or a sole source justification where services
cannot be provided by other consultants.\
 

**Subawards -** For each subaward agreement, provide a subaward which
includes the following information: (1) the services to be provided, the
names of individuals expected to perform the work, and the expected
level of effort for each individual; (2) cost information broken out by
cost category (salaries, fringe, travel, equipment, materials and
supplies, indirect costs, etc.). The organization will be requested to
provide evidence that the subawardee was chosen using a competitive
selection process, in the form of quotations for the same services, or a
sole source justification where services cannot be provided by other
subawardees.\
 

**Indirect Costs** - Provide a current indirect cost rate agreement
negotiated by a Federal Agency. In the absence of a current negotiated
rate agreement, provide an indirect cost proposal and the related
financial statements (income statement and balance sheet) for the two
most recently completed annual accounting fiscal periods. If an
organization has not had financial activity for these periods, indirect
cost proposals should be based on what activities the organization
expects during the proposed award period. (See sample indirect cost
proposal contained in [Attachment L](../Attach/Attach-L.htm)). It should
be noted that it is NSF\'s policy to treat Independence Research and
Development as a direct cost. Questions relating to the indirect cost
rate should be addressed to the Cost Analysis and Audit Resolution
Branch (CAARB) of the NSF Division of Contracts, Policy, and Oversight
at (703) 306-1244.

**5.5 Treatment and Protection of Proposal Information.** Proposals may
contain proprietary information. However, proposers should limit
proprietary information to that deemed essential to include for proper
evaluation of the proposal. Proprietary information may be included in
the body of the proposal or set apart from other text. Proprietary
information submitted to NSF will be treated in confidence to the extent
permitted by law if it is clearly identified, by sentence or paragraph
in the proposal text, or on a separate page. **Any proprietary
information included in the body of the proposal must be clearly marked,
by sentence or paragraph, as proprietary.** Any proprietary information
set apart from other text should be on a separate page and keyed to the
text by numbers. **Proposers should be selective and confine proprietary
information** to those critical items that, if disclosed, could
jeopardize the obtaining of foreign or domestic patents or could reveal
trade secrets or commercial or other financial information that could
jeopardize the competitive position of the proposers. (Reference
[http://www.nsf.gov/cgi-bin/getpub?sbiri]{.underline} for Phase I and
[http://www.nsf.gov/cgi-bin/getpub?sbirii]{.underline} for Phase II.)\
 

Without assuming any liability for inadvertent disclosure, NSF will
limit dissemination of properly marked information to its employees,
and, as necessary for the evaluation of the proposal, to outside
reviewers on a confidential basis. However*,* **proposals or reports
that attempt to restrict dissemination of large amounts of information
may be found unacceptable by NSF and may result in return of the
proposal.**\
 

Phase II proposals and Phase I Final Reports may also contain technical
data developed under the Phase I grant. The grantee must properly
identify and mark such technical data as described in [Section
5.6](#5.6), Rights in Data Developed under SBIR/STTR Grants*.*\
 

Information contained in unsuccessful proposals will remain the property
of the proposer, but NSF will retain file copies of all proposals.
Public release of information in any proposal or report delivered under
a grant will be subject to existing statutory and regulatory
requirements.\
 

Because Final Reports by the Principal Investigator will be made
available to the public, such reports should contain no restrictive
language purporting to limit their use, except for technical data
described below (see [Section 5.2](#5.2) Reporting Requirements).\
 

**5.6 Rights in Data Developed Under SBIR/STTR Contracts.** The grantee
may retain rights in technical data, including software, developed under
the NSF grant, except that the Government shall have the right to use
such data for governmental purposes. Final Reports delivered under the
grant, including technical data, may be made available to the public by
the Government except for that portion of the report containing
technical data properly identified and marked as set forth below.\
 

To the extent permitted by law, the Government will not release properly
identified and marked technical data, such as data relating to an
invention or software, outside the Government except for evaluation
purposes for a period of four years from the expiration of a Phase II
grant, or from the expiration of the Phase I grant when no Phase II
award is made, without the approval of the grantee. **The grantee must
properly identify such technical data in the text or on a separate page
keyed to the text by numbers** in any submission to the Foundation. Such
data must be clearly labeled as proprietary technical data and marked
with a legend similar to the following:\
 

\"The following is proprietary technical data which (name of grantee)
requests not be released to persons outside the Government, except for
purposes of evaluation, for a period of four years from the expiration
date of Grant No. \_\_\_\_\_\_\_\_ or, the expiration date of a
follow-on Phase II grant if awarded, whichever is later.\"\
 

In addition to the rights vested in the Government to use proprietary
technical data during the four-year period mentioned above, the
Government shall retain a royalty free, irrevocable, world-wide license
to use the data right after the conclusion of the four-year period
whether or not the grantee has sought or obtained patent protection or
claimed copyright protection.\
 

**5.7 Copyrights.** The grantee normally may copyright and publish
(consistent with appropriate security considerations, if any) material
developed with NSF support. The National Science Foundation receives a
royalty-free license for the Federal Government and requires that each
publication contain an acknowledgment and disclaimer statement as shown
under [Chapter 5.0, Section 5.2](#5.2), Reporting Requirements.\
 

**5.8 Patents.** Each award agreement will contain a patent rights
clause under which small business firms normally may retain the
principal worldwide patent rights to any invention made with NSF
support. NSF receives a royalty-free license for Federal Government use,
reserves the right to require the patent holder to license others in
certain circumstances, and requires that anyone exclusively licensed to
sell the invention in the United States must normally manufacture it
domestically. To the extent authorized by 35 U.S.C. 205, NSF will not
make public any disclosure by the grantee of a NSF-supported invention
for a four-year period to allow the grantee a reasonable time to file a
patent application. The time period for filing is specified in the
patent rights clause and applicable Federal regulations (45 CFR &sect;
650.4). Additional information may be obtained from the Office of the
General Counsel, Room 1265, National Science Foundation, 4201 Wilson
Boulevard, Arlington, VA 22230.

**5.9 Supplemental Funding - Research Experiences for Undergraduates
(REU).** The SBIR can supplement a Phase II award to encourage
undergraduate students to embark on research careers. NSF has expanded
the REU program to allow K-12 science teachers to participate.
Information on NSF\'s REU Program can be obtained by calling (703)
306-1601 and requesting that the REU Program Announcement (NSF 96-102)
be sent to you or at
<http://www.nsf.gov/nsf/nsfpubs/nsf96102/nsf96102.htm> .\
 

Companies that receive a Phase II award from NSF may apply for REU
support. They should send their applications to the cognizant SBIR
Program Officer named in the Phase II award letter. If the REU proposal
is awarded, it will be made as a separate identifiable supplement to an
existing SBIR award. The REU supplement is typically for \$5,000 per
student or teacher and no more than 2 per year for each Phase II grant.\
 

**5.10 Management Responsibility.** The responsibility for the
performance of the Principal Investigator and other employees or
consultants who carry out the proposed work lies with the management of
the firm receiving an award.\
 

**5.11 Accuracy of Information.** The proposing small business concern
and the Principal Investigator are responsible for the accuracy and
validity of all the administrative, fiscal, and scientific information
in the proposal. Deliberate withholding, falsification, or
misrepresentation of information could result in administrative actions
such as declination of a proposal or the suspension and/or termination
of an award, as well as possible civil or criminal penalties.\
 

**5.12 Audits.** Both Phase I and Phase II awards are subject to Federal
audit as specified in the applicable Grant Terms and Conditions. For
Phase I reference: [http://www.nsf.gov/cgi-bin/getpub?sbiri]{.underline}
for Phase II reference: <http://www.nsf.gov/cgi-bin/getpub?sbirii>.\
 

**5.13 Changes in Organization or Principal Investigator Status.** The
SBIR Program must be notified promptly if there is any change in the
name or address of the firm or if the firm no longer qualifies as a
small business. Any change in the Principal Investigator under an active
grant must be requested in writing to the SBIR Program as discussed in
[Chapter 1, Section 1.4.4](../Chapt-1.htm#1.4), Principal Investigator.\
 

**5.14 Inconsistencies.** This Program Solicitation is intended for
informational purposes and reflects current planning. If there are any
inconsistencies between the information contained herein and the terms
of any resulting SBIR grant, the terms of the grant are controlling.\
 \
 

  **CHAPTER 6.0 Submission of Proposals**

**6.1 The Submission Process.** The proposal cover pages and project
summary for both SBIR and STTR Phase I must be submitted via FastLane.
Full SBIR Phase II Proposals must be submitted via FastLane. For
instructions for preparing and submitting a cover page or proposal via
FastLane reference the following web location:
<http://www.fastlane.nsf.gov/a1/newstan.htm>.

**Complete proposal packages must arrive at the NSF by the specified
deadline (reference [Table of Deadlines](#6.3)). Proposers are cautioned
to consider unforeseen delays, which can cause late arrivals of
proposals.\
 **

All Phase II proposals must be submitted in their entirety via Fastlane.
Reference instructions for preparing a proposal and submitting via
FastLane <http://www.fastlane.nsf.gov/a1/newstan.htm>. One completed
proposal, with all attachments must be mailed and postmarked within five
working days of the deadline.

Proposals that do not meet the deadline or that do not adhere to other
requirements stated in this solicitation will be returned to the
proposer without further consideration.\
 

**6.2 Deadlines.** SBIR and STTR Phase I cover pages must be submitted
via FastLane. Paper copies of proposals must be received by 5:00 p.m.
East Coast Time at the NSF on the deadline date listed in the [Table of
Deadlines](#6.3).

The SBIR and STTR Phase II proposals must be submitted via FastLane. All
proposals must be received by 5:00 p.m. submitter\'s time on the
deadline date listed in the [Table of Deadlines](#6.3).

**6.3 Table of Deadlines.** The Table of Deadlines shows all the due
dates in conjunction with the SBIR/STTR Phase I and II activities. The
submission opportunity for Phase II proposers who receive Phase I awards
is limited to **two** submission opportunities following the end of the
Phase I grant performance period. The following table is an example of
the SBIR/STTR proposal submission timeline.

**SBIR and STTR Phase I Deadlines**\
 

  ------------------ ----------------------------------------------------
  June 9, 1999       SBIR and STTR Phase I Proposals Due by 5:00 p.m.
                     East Coast time (original and 9 copies). All cover
                     pages required to be submitted through FastLane.

  July 1999          NSF mails notification of receipt of proposal.

  December 1999      NSF mails notification of awards and declinations.

  January 1, 2000    SBIR and STTR Phase I Award effective date.

  June 30, 2000      End of SBIR Phase I (6-month) grant performance
                     period.

  July 14, 2000      SBIR Phase I Final Report Due (12 copies), NSF Final
                     Project Report (submitted electronically).

  December 30, 2000  End of STTR Phase I (12-month) grant performance
                     period.

  January 30, 2001   STTR Phase I Final Report Due (12 copies), NSF Final
                     Project Report (submitted electronically).
  ------------------ ----------------------------------------------------

**SBIR AND STTR Phase II Deadlines**

+-----------------+----------------------------------------------------+
| July 15, 1999   | SBIR and STTR Phase II Proposals Due via FastLane  |
| or              | by 5:00 p.m. submitters time. One complete Phase   |
|                 | II package must be mailed and postmarked within    |
| January 12,     | five days of the closing date.                     |
| 2000            |                                                    |
+-----------------+----------------------------------------------------+
| September 1999  | NSF mails notification of receipt of proposal      |
| or              |                                                    |
|                 |                                                    |
| March 2000      |                                                    |
+-----------------+----------------------------------------------------+
| January 2000 or | Proposal Recommendations made.                     |
|                 |                                                    |
| June 2001       |                                                    |
+-----------------+----------------------------------------------------+
| June 1, 2000 or | Possible Phase II Award Effective Date             |
|                 |                                                    |
| December 1,     |                                                    |
| 2001            |                                                    |
+-----------------+----------------------------------------------------+

For SBIR and STTR Phase II awards, please reference [Chapter 5.0,
Section 5.2.](../Chapt-5.htm#5.2) The typically schedule for Phase II
awards is based on a 24-month grant with progress reports due
approximately every 6-months.\
 

**6.4 Physical Packaging Requirements.** Do not use special binding or
covers. Staple the pages in the upper left-hand corner of each proposal.
Secure packaging is mandatory. The NSF cannot be responsible for
proposals damaged in transit. The original plus nine (9) copies of the
SBIR and STTR Phase I proposals should be sent in the same package. Only
one original copy of the SBIR and STTR Phase II proposal should be sent.
Do not send separate \"information\" copies or several packages
containing parts of a single proposal.\
 

NSF forms may be copied as needed, however, one copy of the
**Certification Page** and **Summary Proposal Budget** must have
original signatures of the appropriate individuals and shall be marked
\"**Original**\". The other copies of the proposal need not have
original signatures.\
 

**6.5 Where to Send Proposals.** All SBIR and STTR Phase I and II
proposals should be mailed to the following address:\
 

National Science Foundation

SBIR/STTR Phase I or Phase II *(whichever applies)*

Proposal Processing Unit, Room P60

4201 Wilson Boulevard

Arlington, VA 22230\
 

**6.6 Acknowledgement of Proposal Receipt.** The NSF will acknowledge
receipt of proposals by a postal card, which will be mailed to the
company official who endorsed the proposal cover page. If a proposal
acknowledgement card is not received from the NSF within 30 days
following the deadline, the proposer should email NSF at the following
address: [sbir@nsf.gov]{.underline}\
 

**6.7 Withdrawal of Proposals.** Proposals may be withdrawn by written
notice received any time prior to award. Proposals may also be withdrawn
in person by an offeror or authorized company representative upon
presentation of personal identification and the signing of withdrawal
documentation.

**CHAPTER 7.0 Scientific and Technical Information Sources**

**7.1 NASA Technology Transfer Centers.** NASA\'s network of regional
technology transfer centers, listed below, provides a variety of
business planning and development services to SBIR offerors. These
centers should be contacted directly to determine what services are
available and to discuss fees charged since these vary, depending upon
the organization and type of service requested. To contact any NASA
Technology Transfer Center, check the website at
[http://nctn.hq.nasa.gov](http://nctn.hq.nasa.gov/) .

**Northeast:**

Center for Technology Commercialization\
1400 Computer Drive\
Westborough, MA 01581

**Southeast:**

Southern Technology Applications Center\
13709 Progress Boulevard, Box 24\
Alachua, FL 32615

**Mid-Continent:**

Mid-Continent Technology Transfer Center\
301 Tarrow, Suite 119\
College Station, TX 77843-8000

**Mid-Atlantic:**

Mid-Atlantic Technology Applications Center\
3400 Forbes Avenue, 5th Floor\
Pittsburgh, PA 15260\
 \
**Mid-West:**

Great Lakes Industrial Technology Center\
25000 Great Northern Corporate Center, Suite 260\
Cleveland, OH 44070

**Far-West:**

Far-West Regional Technology Transfer Center\
University of Southern California\
3716 South Hope Street, Suite 200\
Los Angeles, CA 90007-4344\
 

**7.2 National Technology Information Services.** The National
Technology Information Service, an agency of the Department of Commerce,
is the Federal government\'s central clearinghouse for publicly funded
scientific and technical information. For information about their
various services and fees, call or write:

National Technology Information Service\
U.S. Department of Commerce\
Springfield, VA 222161\
Telephone: 703-605-6000\
Fax: 703-321-8547\
 

**7.3 Other Information Sources.**

National Technology Transfer (NTTC)\
316 Washington Avenue\
Duvall Center\
Wheeling, WV 26003\
1-800-678-6882

NERAC

1 Technology Drive\
Tolland, CT 06084\
(203) 872-7000\
 \
Knight-Ridder Information\
1-800-334-2564\
(Formerly DIALOG Information Services, Inc.)

Chemical Abstract Service\
STN International\
1-800-753-4227

**CHAPTER 8.0 Research Topics (used for preparing SBIR/STTR Phase I
proposals only)**

A fundamental mission of NSF is to promote discoveries and to advance
education across the frontiers of knowledge in science and engineering.
Consistent with that mission, NSF encourages and supports a wide range
of proposals from the research and the education community and also from
the private small business sector. These proposals are reviewed under
NSF's new merit review criteria, which evaluate both research quality
and potential impact on society.

The SBIR/STTR program solicits proposals from the small business sector
consistent with NSF's mission. The program is governed by public law
P.L.102-564. A main purpose of the legislation is "to stimulate
technological innovation and increase private sector commercialization".
The NSF SBIR/STTR program is therefore in a unique position to meet both
the goals of NSF and the purpose of the SBIR legislation by transforming
discovery to the benefit of society and by emphasizing private sector
commercialization. To be consistent with this emphasis, NSF has
reoriented the solicitation topics for SBIR/STTR along four broad areas
of technology, which are more in alignment with the high technology
investment sector's interest:

**(AM) Advanced Materials and Manufacturing**

**(BT) Biotechnology**

**(EL) Electronics**

**(IT) Information-Based Technologies**

These broad technology topics encompass virtually all of the scientific
and engineering disciplines that are represented at NSF. **[Please read
thoroughly the descriptions of all four solicitation topics in their
entirety]{.underline}** and select the topic that best reflects the area
where your novel idea would have the most potential impact in the market
place. That topic must be specified on the cover page of your proposal,
coding it to the most specific level possible. We welcome your SBIR and
STTR proposals in response to this solicitation.

**Topic (AM) [Advanced Materials and Manufacturing]{.underline}**

The Small Business Innovation Research Program is interested in
supporting new, emerging technologies with direct impact on business,
consumers, and society. The National Science Foundation Small Business
Innovation Research Program (SBIR) will support research in a wide range
of multidisciplinary and cross-cutting research and educational
activities that provide enabling technologies addressing fundamental
phenomena in materials; materials synthesis and processing; materials
structure, composition, properties, and performance. Supported
activities are also in the processes, machinery, systems of modern
manufacturing, and environmental impact with the goal of making the
country\'s manufacturing base more competitive through innovation and
responsiveness to National and globally changing needs.

Under the SBIR Program, the National Science Foundation supports
experimental and/or theoretical research at small businesses aimed at
synthesizing/designing new classes of materials, material systems, and
processes which have the potential to develop into commercial products
and technologies. Proposals are sought to develop materials with
superior properties for potential applications through the understanding
and control of chemistry, morphology, microstructure, and processing
variables. Proposals are also sought in the approach to create, develop,
and expand the scientific and engineering foundations of processing
methods for current and future engineering materials and of design and
manufacturing methods and systems for making useful products from these
materials. The program supports a blend of experimental, analytical, and
computational efforts directed toward economically competitive and
environmentally compatible technologies.

Included are methodologies for concurrent design of materials,
processing, and manufacturing methods for products with engineered
microstructures and properties, devices using innovative fabrication and
assembly procedures, and systems that integrate various unit processes.
Manufacturing machine, sensor, and computer control technologies for
manufacturing processes and operations are of interest, as are
operations research and production systems methodologies that underlie
the full range of engineering systems. Integration engineering addresses
a complete manufacturing enterprise and its infrastructural components.

**A. Advanced Materials**

**1. Materials for Next Generation Vehicles (NGV)**

Technology that will reduce the cost of manufacturing and enable the
large volume production of critical NGV components such as membranes,
fuel cell membrane-electrode assemblies (MEAs), fuel cell stacks, energy
storage devices (e.g., batteries, flywheels and ultracapacitors), fuel
processors and gaseous fuel storage systems. Issues ranging from
manufacturing process control to alternative materials are of potential
interest if the issue of manufacturing cost is credibly addressed.
Strictly as an example, the characterization of conductive polymers
suitable for use as an alternative to bulky and heavy graphite bipolar
plates in proton exchange membrane (PEM) fuel cell stacks would be of
interest.

**a. Membrane Research**

> Improvement and analysis of membranes used in fuel cells with
> particular emphasis on PEM membranes. The objective is to develop new
> membranes capable of being used in very compact fuel cells. The
> ultimate goal is to develop low-cost, easy-to-manufacture membranes
> that demonstrate improved performance, lifetime, power density and/or
> tolerance of a broad range of operating conditions. Fundamental
> research, which leads to a better understanding of these
> characteristics, can also be supported.

**b. Catalysis**

> Improved catalysts and processing/manufacturing technologies for
> incorporating catalysts in fuel cells or fuel reformers. Proposals
> developing improved techniques for integrating catalysts into fuel
> cell MEAs in a mass production environment will be given priority
> consideration. Specifically, lower-cost alternatives to platinum such
> as macrocyclic catalysts and methods to reduce catalyst loading and
> increase power density in PEM fuel cells will be given due
> consideration.
>
> Catalysts for the environmentally benign direct oxidation of methanol
> are of interest. NSF would support theoretical work related to this
> topic, such as the development of molecular modeling and analysis
> tools, focused on the issue of improved capabilities to design such
> new catalysts or structures at minimum cost, for use by the general
> research community. There would be special interest in novel
> algorithms embodying the quantum mechanical calculations relevant to
> predicting the electrochemical properties of alternative molecules.
>
> Generation of new catalysts or catalytic systems, or new uses for
> known catalysts, with applications in consumer products, environmental
> control, and chemicals production. \[Note: Proposals relating to fuels
> production or utilization should be submitted to the Department of
> Energy rather than to NSF.\] Of particular interest are systems with
> promise of reducing the release of acid rain precursors and/or
> greenhouse gases or systems for the production of high-value-added
> products. This does not include pharmaceuticals (Reference:
> Biotechnology Topic).

**2. Structural Materials**

> a\. Novel metal-alloy, ceramic, and polymeric materials (including
> advanced composites) with controlled microstructures from the atomic
> to the macroscopic level for innovative structural applications.
>
> b\. Geosynthetics and other new geo-materials in applications such as
> new construction and structural repair, retrofit and rehabilitation.

**3. Materials Modeling**

Computational approaches to understanding and controlling the
interrelationships among materials properties, processing and
performance, emphasizing the scales from the atomic through the
macroscopic.

**4. New and Innovative Materials for Construction**

-   Fiber reinforced polymers and polymeric composites

-   High performance steel and concrete

-   Composite-reinforced wood laminates

**5. Harsh Environment Performance**

Materials designed specifically to perform in the extreme conditions
posed by

environments such as Polar Regions.

**B. Materials Applications**

**1. Surface Engineering**

Innovations are solicited in coatings, spraying, and non-traditional
treatments, such as ultrasonic, laser, plasma, electron-beam and
ion-implantation methods, and in the use of surface, near-surface and
interface material to improve and predict the performance of structures
and components subject to mechanical and thermal stresses and
environmental degradation, wear, corrosion, and oxidation. New processes
that modify surfaces to obtain specific properties are also of interest.

**2. Applications of Advances in Mechanical Behavior of Materials**

Basic material behavior at the intersection of solid mechanics and
microstructure of material; mechanistic and phenomenological
constitutive relations; modeling of
property-microstructure-processing-composition relationships;
nano-mechanics; computational approaches to materials simulations.

**3. Materials with Designed Properties**

Innovative research on materials-related technologies which can take
into account underlying microstructural states, origin, transformation
and evolution to address problems of deformation, fatigue, fracture and
corrosion of all classes of materials, including composites, is of
interest. Techniques to apply knowledge about critical meso- and
micro-structural features, to enhance macro-mechanical properties, of
engineering materials and smart materials is desired.

**4. Technologies that Address Materials Failure and Degradation
Problems**

Deformation, instability, defects, failure of materials and material
systems.

**C. Electronic Applications of Materials**

**1. Chemicals and Materials in Mainstream Integrated Circuit
Fabrication**

Chemicals and materials of interest in mainstream integrated circuit
fabrication include high and low K dielectrics, silicon-on-insulator
technologies, resists, and interconnected metals among others. Other
chemicals and materials include those relevant flat panel display
applications, and in mass storage, compound semiconductors for microwave
and radio frequency applications, and materials for optoelectronics
applications including communications and mass storage. This subtopic
also includes tools and processes used to fabricate devices, circuits
and systems in all of the applications discussed above, including rapid
thermal processing, dry etch processing, and materials synthesis.
(Reference: Electronics Topic)

**2. Electronic and Photonic Materials**

Semiconductors, ferroelectrics, glasses, organics; synthesis,
processing, characterization are of interest.

**3. Magnetic and Superconducting Materials**

Proposals on innovative superconducting and giant magnetoresistance
materials, nanoparticles and clusters for potential use in recording
media and magnetic superlattices, materials for sensors and switches are
solicited.

**D. Process Design and Control**

**1. New Design Strategies for Complex Integrated Chemical Processes**

Research on the control of chemical plants and studies of new design
strategies for complex integrated chemical processes as well as for
system optimization.

**2. Photochemical and Electrochemical Processes**

Examination of processes using radiation or electric current to effect
chemical reaction, including principles for design of industrial-scale
reactors for such processes. Included in the scope are photocatalytic
and electrocatalytic systems. Prime interest is in processes suitable
for commercial chemical production or for environmental control.

**3. Unit Manufacturing Processes**

Innovations and improvements in the processing of materials result from
advances in the fundamental understanding of the relationships between
the process, the material, and the resulting product. Novel processing
methodologies or the processing of new materials are sought for new
product development, for research leading to next-generation machines
and/ or improvements in product performance and cost.

Research in the fundamental issues necessary to further the knowledge of
materials processing are suggested in the areas and issues as follows:

-   Netshape processing of metals, ceramics and metal or ceramic-matrix
    composites - Net shape processing optimization and innovative
    process modification

-   Polymer and polymer-matrix composite processing

-   Novel manufacturing processes - Microfabrication of functional
    materials

-   Electronic materials, semiconductor materials, and superconductive
    materials processing

-   Joining and Assembly - Research is sought on technologies and
    processes to engineer surfaces for optimal topography and
    microstructure that can lead to improved materials, lubricants and
    coating materials for operation under severe conditions. Innovations
    in all welding, riveting, adhesive, and other joining processes are
    solicited.

**4. Environmentally Conscious Processes**

**a. Benign Processing**

This is a relatively new area in which proposals are also being sought.
These proposals need to address pollution prevention or reduction, not
waste treatment. Projects should focus on unit manufacturing and
chemical and synthetic processes and should be design-oriented as
opposed to analytical and computer-oriented. Typical ideas might include
the following: alternative processes that bypass toxic feedstocks and
solvents, recycling foaming agents in polymer foam production,
developing nonfiberglass in-wall insulation, and new chemistries for
on-demand, on-site production and consumption of toxic intermediates in
manufacturing. Proposals that address processes to remove pollutants
from waste streams or that address conventional end-of-pipe
environmental engineering are not responsive to this interest.

-   In-factory recycling

-   Improved techniques are invited for recycling and for the processing
    of recycled materials within the factory.

-   Life-cycle environmental assessment

-   New techniques and systems are invited for estimating the
    environmental costs associated with each stage of the product life
    cycle, including metrics for enterprise-wide integration of
    product/process/waste management.

-   Resource utilization

-   New processes and methods are invited to promote improved material
    and water resource utilization and energy efficiency in
    manufacturing.

-   Substitution strategies

-   Innovative systems are desired to facilitate the selection and/or
    substitution of low environmental impact materials and/or low impact
    processing in product design.

**b. Combustion and Plasma Systems**

Uses of combustion or plasma technology for environmental, energy,
transportation, or manufacturing applications are of interest. Also
included are approaches to safety issues associated with these
applications including fire control in natural or anthropomorphic
environments. Combustion may be in burners, boilers, engines, or "open"
situations. Plasmas may be high-pressure or low-pressure, thermal or
nonequilibrium. More specifically:

-   Innovative concepts for clean and efficient combustion of gaseous,
    liquid, or solid fuels.

-   Burning of low-grade fuels in combustors.

-   Incineration of wastes containing toxic or hazardous materials.

-   Use of plasmas or combustion to synthesize a specific product of
    economic value.

-   Plasma modification of surfaces or morphology.

-   Plasma-based destruction, conversion, or control of effluents,
    emissions, toxic or hazardous materials, or pathogens.

-   Diagnostic techniques that can function in a high-temperature or
    high-field environment.

**5. Separation and Purification**

Since separation is often a major cost of chemical processing, improved
and new separation processes are increasingly important. Emerging
technologies such as bioengineering and electronic materials processing
are primary examples of application areas where cost-effective
separations are critical. Research of interest encompasses highly
selective, energy-efficient, and economic processes and mass separating
agents for the separation and purification of all types of substances.
Example areas of support include supercritical extraction, membrane
processes, desalination, filtration, adsorption and chromatography,
absorption, ion exchange, fractionation, and crystallization. Research
in novel separation processes and those based on a combination of
various techniques is encouraged. Specific areas of ongoing emphasis
include the following:

-   Energy-efficient separation and purification of organics (e.g.,
    olefins);

-   Environmentally benign separation processes;

-   Recovery of critical and strategic metals; and

-   Research on fuel cell membranes is not appropriate for this subtopic
    area.

**6. Thermal Transport and Thermal Processing**

Innovative concepts and novel devices which relate to the use and
transport of thermal energy, and to the manipulation of thermal history
and thermal gradients to accomplish engineering and manufacturing goals.
Examples include:

-   Novel techniques or devices to achieve ultra-high heat fluxes;

-   New concepts for insulation;

-   New thermal processes with advantages in cost, reduced emissions,
    quality, etc. over existing processes;

-   New thermal processes for producing materials with unique properties
    or structures; and

-   Microscale and nanoscale thermal transport.

**E. Chemical Transport Systems**

**1. Fluid, Particulate, and Hydraulic Systems**

Supports research on mechanisms and phenomena governing single and
multiphase fluid flow, particle formation and transport, and
fluid-particle system characterization. No bias exists with respect to
methods, whether analytical, numerical, experimental, or a combination
of these. Research is sought that aims at markedly improving our
understanding of important fluid engineering processes or phenomena,
and/or that creates advances with high potential for significant
industrial and environmental impacts. Since fluid and particulate
behavior control many processing and manufacturing technologies, the
desired impact is improvement in the predictability, precision, and
control of existing systems, as well as in the suggestion of entirely
new ones. Research support areas under this program include the
following:

-   High Reynolds number flow;

-   Flow control;

-   Density stratified flows;

-   Flow of complex fluids;

-   Deliberate production and/or modification of small particles with
    controlled properties, via colloids, aerosols, or crystallization;

-   Particle attachment to or removal from surfaces;

-   Efficient removal of particles from processing streams or plant
    effluents; efficient separation of particles based on size, bulk
    composition, or surface composition; and

-   Multiphase processes.

**2. Interfacial, Transport, and Thermodynamic Phenomena**

Recent needs and developments in information storage have led to an
examination of small aggregates of molecules that exhibit unusual
interfacial and transport properties. Small businesses can play a major
role in applying this scientific concept to the design of artificial
layers and structures at the molecular level; in the design of chemical
processes for new organic and inorganic chemicals and materials; and in
making phase equilibria and transport predictions for environmentally
hazardous chemicals. Examples of relevant research are the following:

-   Preparation and thermodynamic characteristics of micellar, self
    assembly molecular structures, and microemulsion fluid systems as
    templates for solid electronic or separation microstructures;

-   Transport characteristics, processing, and fabrication of vesicular
    and liposomal clusters for patterned deposition for fluid systems;

-   Near critical and Supercritical Phase Behavior and Environmentally
    benign physical processing;

-   Langmuir-Blodgett film, self assembly, or other interfacial
    processing related to interfacially dominated applications, such as
    printing lithography, coatings, printing, and/or sensors; and

-   Interfacial diffusion processes between thin films, two layers, and
    experimental analysis and modeling of the process.

**F. Chemistry and Chemical Technology**

The unique interdisciplinary capabilities of small business to promote
new developments in this area are sought. The general categories in
chemical investigations are not exclusive of any other research having
the potential to advance the understanding and utility of the chemistry
being proposed by the small business.

-   Design and synthesis of new organic and inorganic substances that
    possess unusual properties giving rise to new and improved materials
    or that enable the testing of theoretical, mechanistic, or
    structural hypotheses. Examples include but are not restricted to:

-   Molecular-level approaches to the synthesis of organic, inorganic,
    and organometallic molecules that are useful materials or materials
    precursors

-   Isolation and characterization of natural products that have
    well-defined commercial potential

-   Design and synthesis of molecular arrays of importance to molecular
    recognition, catalysis, separation science, and other interfacial
    and biomimetic processes

-   Development of environmentally benign synthetic routes for the
    production of commercially important chemical products

-   Combinatorial approaches to the discovery of new materials,
    catalysts, or molecular structures with commercial potential

-   Electrosynthesis of value-added products offering advantages in
    materials cost, energy utilization, and reduced environmental impact

**2. Characterization**

-   Physiochemical studies leading to the development of a marketable
    product or procedure for the improved characterization of chemical
    systems. Such products and procedures often utilize new technologies
    and may demonstrate new concepts for chemical instrumentation
    (Reference: Electronics Topic)

-   New approaches for the characterization of surfaces and interfaces

-   Design of new species specific chemical sensors

**3. Computational Innovations in the Chemical Sciences**

-   New or improved algorithms for chemical computation.

-   Development of graphical user interfaces for computational chemistry
    software.

-   Porting and development of new algorithms for chemical computation
    on emerging parallel architecture computing platforms.

-   Development of improved force field parameterizations for molecular
    simulations.

**G. Nanotechnology: Functional Nanostructures**

\"Functional nanostructures\" are structures that have at least one
characteristic dimension in the range from molecular to 100 nm; they are
conceived and constructed for a function (device, structural
application, or effect) that develops in that scale. Nanotechnology
arises from the exploitation of physical, chemical and biological
properties of systems that are intermediate in size between isolated
atoms/molecules and bulk materials, where phenomena length scales are
comparable to the size of the nanostructure. The discovery of novel
phenomena at the 'nano' scale and new experimental and theoretical
tools, developed in the last few years for investigating these
structures, provide fresh opportunities for commercial technology in
nanoparticles, nanostructured materials, and nanodevices.

-   Synthesis - Proposals are solicited in synthesis and fabrication,
    and processing of nanostructures (1-100 nm), such as clusters,
    particles, tubes, layers, self-assembled systems, having tailored
    properties to be used for building up functional nanostructures.
    Approaches may include gas-, liquid-, solid-, and vacuum-based
    processes, size-reduction, and techniques to produce nanosystems at
    high rates.

-   Assembling and Processing of Nanostructured Materials - Proposals
    are solicited in processing and conversion of molecules and
    nano-precursors into functional nanostructures, nanostructured
    materials, nanocomponents, and nanodevices, including sensors.
    (Reference: Electronics Topic) This might involve sintering,
    sputtering, various forms of epitaxy, and chemically assisted
    assembling techniques. Examples include an optical waveguide, a
    multifunctional nanolayer, a nanostructured catalyst, and a
    nanofilter or a chemical sensor deposited by using sol-gel or
    chemical vapor deposition methods.

**H. Advanced Manufacturing /Systems**

**1. Design and Integration Engineering**

Design and integration engineering involve the use of information in
decision-making processes that determine the specification of products
and their realization via manufacture. Global competition and advancing
technology demand excellence in decision making throughout design and
manufacture. To meet this need, rigorous theories of decision making and
decision analysis from fields such as economics, operations research and
game theory can be exploited. Good decision making also demands the
creation of alternatives, both for product design and for manufacture.
This activity supports research leading to the development and
implementation of software tools for improved engineering design and
integration engineering. Specific areas include the following:

> **a. Decision theory and Applications**
>
> Applications of decision theory and decision analysis to engineering
> design and integration engineering. Of particular concern are tools
> for design and integration decision making under risk and uncertainty,
> and especially tools that include decision making over the entire
> product life cycle.
>
> **b. Evaluation of System Performance and Risk**
>
> Software tools for the rapid and easy evaluation of system performance
> as a function of design and manufacture, including the treatment of
> uncertainty in all areas of design and integration and the
> quantification of risk, both monetary and non-monetary. This includes
> the analysis of system reliability, tolerancing, manufacturability,
> disposability, liability, etc. as a function of design and integration
> decisions.
>
> **c. Explication of Design and Integration Alternatives**
>
> Software tools for the rapid generation of design and integration
> alternatives, including advanced CAD and CAM software, and tools to
> enable the reuse of previous designs, such as CAD libraries with
> search capability. This includes also tools for tolerancing and
> explication of manufacturing alternatives.
>
> **d. Manufacturing Enterprise Design and Optimization**
>
> Software to support the integration of product lines and product
> families, supply chain management, concepts of agility and decision
> making across the enterprise. This includes also tools for management
> of collaborative design and integration engineering and the management
> of engineering teams.

**2. Manufacturing Processes**

Generic research toward advanced processing technologies and new
processes for difficult-to-manufacture materials. The goal is to reduce
costs and improve productivity, quality, performance, and reliability of
manufactured products. The scope includes processing bulk materials into
engineering materials (primary processing) and processing engineering
materials into discrete parts (secondary processing). Increasing
productivity means reducing the lead time between design and manufacture
(leading to simultaneous engineering), raising production rates,
reducing costs, and improving product quality and reliability while
meeting product safety requirements both during manufacture and in
service.

-   Low cost manufacturing processes for such difficult-to-process
    materials as composites, ceramics, polymers, sprayed materials, and
    superalloys;

-   Nontraditional manufacturing processes (including hybrids) for
    surface treatments in coatings and spraying, such as chemical vapor
    deposition (CVD), electrical discharge machining (EDM),
    electrochemical machining (ECM), electrochemical grinding (ECG),
    ultrasonic, microwave, laser, plasma, electron-beam,
    ion-implantation, and abrasive jet machining;

-   Ultra precision machining;

-   Near-net shape forming; and

-   New advanced cutting tools and die materials.

**3. Machines and Equipment**

Research on integratable, intelligent equipment and machines that
support automation systems and manufacturing processes. Specific areas
include the following:

-   Intelligent man-machine interfaces that enhance the effectiveness of
    manufacturing people who are involved with vast information flows.
    Expert systems to support interactive decision making for future
    flexible manufacturing systems;

-   Machines and equipment for individual unit processes, including
    research on novel machines and equipment to extend the range of
    applicability of existing designs as innovative improvements are
    made in materials and unit processes;

-   Advanced machine tools, including research leading to new and
    improved machine tools to produce parts of greater accuracy and
    higher productivity, especially for materials that are difficult to
    machine. Advanced, light-weight, and rigid machine components and
    structures from epoxy composites, ceramics, and other materials;

-   New design methodologies and strategies for untended manufacturing,
    automation systems, and for the integration of machine elements and
    subsystems in a fully automated environment;

-   Sensors, including fusion of sensor data from similar and dissimilar
    sensors, high-speed data acquisition from multiple sensors, and
    neural net concepts for on-line monitoring of machine operations
    (Reference: Electronics Topic);

-   Controllers and advanced control techniques applied to advanced
    manufacturing machines and equipment to enable their rapid and
    robust response to changing environments; and

-   Innovative machine design and development for manufacture,
    inspection, measurement, assembly, and packaging of microparts and
    microsystems.

**4. Rapid Prototyping**

The ability to prototype a design rapidly reduces the lead-time to bring
a new product to market. One means of reducing the time to design a
product may be through the use of virtual product prototyping in
software, using novel information technologies. To the extent possible,
all phases of the product life cycle should be considered
simultaneously. Examples include the following: the synthesis of shape
and geometry from engineering analysis, the association of manufacturing
processes with product features, the transformation from design geometry
to manufacturing procedures, and novel methods for the physical
realization of electronic models.

**5. Operations Research**

Improved understanding and modeling of production systems will
ultimately lead to better system design and operation and, consequently,
to higher system performance. Research leading to the development of
improved analytical and computational techniques for modeling, analysis,
design, optimization, and operation of natural and man-made systems is
supported. Research areas supported by the program range from new
mathematical techniques to application-oriented algorithmic procedures.
The areas of interest focus on large-scale integrated problems with a
variety of tightly and loosely interconnected components that generally
involve people, information, machines, and controls. Examples of
specific areas of interest include basic research in optimization,
scheduling, routing, location, simulation, queuing theory, statistics,
and stochastic processes.

**6. Advanced Manufacturing Systems**

NSF is interested in operational issues such as cost and performance
analysis, inventory management, production planning and control,
scheduling, reliability, quality, facilities design, material handling,
logistics, distribution and man-machine integration within the
production environment. While the main focus of the program is on
manufacturing systems, research with application to the full range of
production systems including communication, transportation, and
distribution systems is also sought. Also of interest are advanced or
innovative systems for production planning, scheduling, materials
management, and distribution.

**7. Enterprise Modeling and Simulation**

Research to support the development of improved enterprise modeling and
simulation capabilities for improved decision making based on
alternative scenarios. Research areas include the following: formalized
representations of process knowledge, enterprise models that incorporate
new knowledge, applications of artificial intelligence for flexible
decision-making modules, agent-based simulation modeling tools, the
optimization and integration of mixed models, models of organizational
structures and cross-organizational behavior, and models of complex or
nonlinear systems and processes. Models and simulations should include
descriptions of the interactions between people and between people and
machines.

**Please direct inquires to Cynthia Ekstein, Cheryl Albus, or Ritchie
Coryell, SBIR Advanced Materials and Manufacturing Program Managers,
telephone: 703-306-1390, or email sbir@nsf.gov.**

**Topic (BT) [Biotechnology]{.underline}**

Rapidly advancing frontiers in the biosciences are strongly stimulating
the creation and growth of small businesses that are based on
biotechnology. It is the goal of these small businesses to connect
bioscience discoveries to society through the commercialization of new
products, devices, processes, or services. As a consequence of their
rapid growth, these small businesses are creating new jobs for
scientists, engineers, and others. Similarly, in the context of the
Government Performance and Results Act (GPRA), facilitating the
connection of discoveries to society and job creation are goals of NSF.
Moreover, National Science and Technology Council (NSTC) committees have
suggested numerous SBIR strategic focus areas that fall within
biotechnology. Congruent with these NSF, NSTC, and GPRA frameworks, and
aligned with the objectives of the overall Federal SBIR program, the NSF
SBIR biotechnology program area solicits proposals targeted toward the
generation of innovative new products, devices, processes, or services
in the subtopics of:

**A. Genomics**

New capabilities enabling the rapid and massive sequencing of entire
genomes of organisms from microbes to humans are transforming biological
research. Exciting opportunities for commercialization activity have
been created, with more yet to be proposed.

**B. Proteomics**

The full complement of proteins expressed by complete genomes is now
susceptible to analysis, prediction, and modification of structure,
function, and interactions, again giving rise to new commercial
opportunities.

**C. Bioinformatics**

Computer-power is required to harness the vast and expanding datasets
that are being explosively generated through genomics and proteomics,
creating bioinformatics business opportunities.

**D. Biochips**

\"Biochips\" are biologically based microarray and microfluidic devices
used for analysis and synthesis. How can they be made at lower cost? How
can their applications be expanded?

**E. Combinatorial Biotechnology**

Proposals are welcomed on potential commercial applications of
"combinatorial biosynthesis," "combinatorial biocatalysis," and
biologically oriented combinatorial chemistry.

**F. Computational Biotechnology**

Research with commercial objectives on the development and
implementation of algorithms and software for: the characterization of
the relationship of DNA and protein sequence to biological function,
design of small molecules with biological activity, analysis of complex
dynamic biological systems, multi-scale ecological modeling.

**G. Environmental Biotechnology, including Bioremediation**

Application of the power of biology to improve and protect the
environment.

**H. Ecological Engineering**

Research with commercialization potential on the design and management
of ecosystems based on ecological principles and incorporating the
self-organizing capacity of natural systems. Specific areas include:
ecosystem rehabilitation, habitat construction or enhancement, and flood
prevention or mitigation.

**I. Agricultural and Food Biotechnology**

Application of biotechnology to crops and food products and processes.
Includes food safety and biological control of pests.

**J. Marine Biotechnology and Aquaculture**

Use of biotechnology to enhance the search for valuable products from
the sea and/or to improve their production.

**K. Industrial Bioproducts**

Includes industrial enzymes and biopolymers, neutraceuticals,
bioreagents, etc.

**L. Biosensors**

Development of innovative biosensors for commercial applications.

**M. Bioprocessing and Bioconversion**

Includes bioreactors, bioseparations and purification, etc., as well as
biotechnology for a sustainable environment. In particular, biomining
and bioleaching alternatives to smelting are included in this subtopic.

**N. Biomedical Engineering, including New Devices or Systems to Aid
Persons with Disabilities**

Supports bioengineering research with commercial objectives that have
the potential to contribute to improved health care and the reduction of
health care costs. Areas of interest include, but are not limited to,
means to improve deriving information from cells, tissues, organs, and
organ systems; extraction of useful information from complex biomedical
signals, new approaches to the design of structures and materials for
eventual medical use; and new methods of controlling living systems.
Also included are means for the characterization, restoration, and/or
substitution of normal functions in humans.

**O. Tissue Engineering**

Development of polymer/cell structures and systems for biomedical
applications.

**P. Metabolic Engineering**

Targeted and purposeful alteration of metabolic pathways found in
organisms to enable or improve production of useful products.

**Q. Biomaterials**

New materials for bioengineering applications.

**R. Pharmaceutical Drug Delivery**

Development of systems, devices, or materials to enable or improve
pharmaceutical dose applications and/or regimens.

**S. Biomolecular Nanotechnology**

Fabrication at the nano-scale involving biomolecules and/or biosystems
for potential commercial applications.

**T. New Emerging Developments in Biotechnology**

These are the creative new biotechnology subtopics yet to be identified.

Projects involving testing of pharmaceuticals in human clinical trials
or animal models are not eligible for support. However, research with
diagnosis or treatment-related goals, that applies engineering
principles to problems in biology and medicine while advancing
engineering knowledge, is eligible for support, as long as the focus is
on practical applications with potential for eventual commercialization.
Bioengineering research to aid persons with disabilities is also
eligible.

Innovative SBIR biotechnology proposals that cut across technical
disciplines are eagerly sought. For example, in the area of
environmental biotechnology, a bioremediation proposal might well
involve genetic engineering in microorganisms (with proposal review
expertise at NSF residing in the Division of Molecular and Cellular
Biosciences), environmental microbiology (Division of Environmental
Biology), bioreactor design (Division of Bioengineering and
Environmental Systems), pollutant transport in porous, adsorptive, and
aqueous media (Division of Chemical and Transport Systems), and, for
soil bioremediation, soil and fracture mechanics (Division of Civil and
Mechanical Systems). Such interdisciplinary proposals will be reviewed
by a crosscutting grouping of experts. In particular, it is most likely
that a number of new SBIR biotechnology proposals will be related
directly to existing NSF interdisciplinary initiatives such as "Life and
Earth's Environment (LEE)," including crosscutting programs such as
"Life in Extreme Environments (LExEn)." Illustrative projects include
work on industrial enzymes derived from genes originally resident in
organisms inhabiting extreme environments.

**Please direct inquires to Dr. Bruce K. Hamilton, SBIR Biotechnology
Program Manager, telephone 703-306-1391, x5254, or e-mail
bhamilto@nsf.gov.**

**Topic: (EL) [Electronics]{.underline}**

Technological progress in the 20^th^ century has been dominated by the
influence of electrical, electronic and photonic systems which have
leveraged human capacities and revoluntioned mankind's existence. This
major area supports research in electrical and communications essential
for innovation and advances in these systems. These are the fundamental
technologies that support and enable telecommunications, computational
capabilities, detection and sensing systems, measurement and control,
for example.

**Electronics, Photonics and DeviceTechnologies**

Research areas such as microelectronics, photonics, lasers and optics,
plasmas, electromagnetics, nanotechnology, micromachining,
microelectromechanical sensors and systems, to name a few, are expected
to spur continued scientific and technological advances in areas
important to the nation\'s economic vitality. Innovative proposals, *in
the thrust areas,* are encouraged that explore new concepts and their
application; that identify emerging technologies which may promise
substantial applications impact; that can lead to advances in
performance, through component and device optimization, design, modeling
and simulation tool development, fabrication and processing advances,
and manufacturing effectiveness and/or related environmental issues; and
proposals that push the frontiers on applications of these enabling
technologies in the marketplace.

##### Controls, Networks and Computational Intelligence

Proposals *in the thrust areas* are encouraged for advanced applied
*electronics* research activities in analytical, knowledge-based and
computational methods for modeling, optimization and control of
engineering systems. The emphasis is on development of methodologies,
tools and designs that are motivated by a wide variety of fundamental
systems issues, including nonlinearity, scaleability, complexity and
uncertainty. Research under this sub-area is designed to enable
leading-edge applications in learning and intelligent systems, neural
networks, nonlinear and hybrid controls and advanced computational
methods in distributed problem solving and decision making environments.

**Integrative Systems**

Proposals *in the thrust areas* are encouraged that stimulate innovative
systems-oriented application activities *utilizing electrical,
electronic, optical and/or photonic technologies*. The promise of these
activities might be expected to spur significant scientific,
technological and educational advances in communications, computing,
information, learning, sensing and instrumentation, healthcare and the
life sciences, transportation, electric power, manufacturing and other
important and emerging areas. Visionary, systems-oriented research
activities with significant commercialization potential, and which
promise clear technological and societal benefit are strongly
encouraged.

\[Note: Proposals that are for information-based technologies such as
software are not appropriate for submission under Topic EL, but should
be submitted under Topic IT.

The following are the major application thrusts of the Electronics topic
in the 1999 SBIR Solicitation:

**DETECTORS, SENSORS, INSTRUMENTS AND SYSTEMS**

These thrusts request proposals for next-generation or significantly
improved detector, sensor, instrument and/ systems capabilities.

Successful proposers will conduct R&D on projects that: 1) result in
near-term application of a product, process or device concept; or, 2)
greatly enhance the ability of scientists and engineers to conduct
fundamental or applied research in a laboratory, field or research
facility. Features expected in detectors, sensors, instruments and
systems resulting from these thrusts include but are not limited to:
new, special purpose or step advances in performance capabilities;
improved efficiency; increased damage resistance; stability in
environments of extreme temperature or pressure; ability to operate at
higher energy or greater spatial resolution capability; significantly
improved control of frequency or power; or the ability to characterize
surfaces and interfaces of real-world samples in nanoscale.

High-risk projects with high potential commercial payback are
encouraged. Research tools developed under this thrust area that also
meet significant commercial market needs will be given special
consideration. The development of devices that combine several useful
functions is strongly encouraged.

**A. Physical Property Measurement**

New devices are necessary for surface measurement in many applications
as well as innovative precision temperature and other variable control
instruments. Improved instruments are needed for in situ measurement of
precipitation, cloud characteristics, air motion, water vapor and
atmospheric electricity as well as the solar terrestrial environment.
The capability to do isotopic and microstructural analysis of rocks and
minerals. Measurements of ground displacements or accelerations due to
earthquakes and/or man-made sources.

**B. Chemical Characterization**

Focus areas include measuring instruments and quality control
instruments as well as precision industrial flow measuring devices and
controls for liquids and gases. Specific examples of devices and
techniques being sought might include:

-   Chemical sensors for petroleum exploration

-   Chemical analysis of rocks and minerals

-   Marketable processes or procedures for improved characterization of
    chemical systems

-   Strategies and devices for characterization of real-world samples in
    the nanoscale region and beyond

-   New approaches for the characterization of surfaces and interfaces

-   Comprehensive approaches for obtaining the maximum information from
    chemical data.

-   Techniques are for quantitative determination of trace species in
    the ambient atmosphere.

**C. Remote Sampling and Measurement**

Integrated and discrete measurement and reporting systems for unattended
deployment on buoys and/or moorings that provide high frequency,
real-time chemical, biological and physical data are needed. Underwater
sampling techniques for physical and chemical parameters are also being
sought under this thrust. Remote sensing using acoustic, optical and
electromagnetic techniques in the polar, atmospheric and ocean
environments is also needed. Systems for rapid and wide-scale
measurements using satellite, airborne or other remote techniques are
also possibilities under this thrust. Reliable systems for data
collection that have a reduced requirement for on-site people are needed
for the harsh polar environment.

**D. Astronomical Detection Arrays**

Research is needed on ways to decrease the cost of high-performance,
solid-state detector arrays such as charge coupled devices. The
development of systems that apply recent concepts such as adaptive
optics, interferometry and artificial guide stars to compensate for
atmospheric and instrumental blurring in astronomical systems is needed.

**E. Chemical Process Control**

Research on the control of chemical plants and studies of new design
strategies for complex integrated chemical processes as well as system
optimization is needed. Included in this area are innovative new
approaches to problems such as temperature and pressure control
techniques. Software development is an appropriate area for research
under this thrust.

**F. Intelligent Control Systems**

Advanced control systems and programmable devices are needed for power
plants. Research is needed on solutions to control problems and on
intelligent control systems and designs. This thrust also seeks the
development of power semiconductors, programmable logic controllers and
industrial control systems computers using analog, digital and
microprocessor technology software. Small power systems for
autonomous-remote scientific data acquisition systems are also being
sought. Systems to coordinate building heating, ventilating, air
conditioning, and lighting as well as techniques for determination and
control of air quality and pollutants in building environments. Advanced
technologies for disaster mitigation (earthquake, wind, etc.) such as
on-line control systems that can reduce the impact of natural and
technological hazards on structures, lifelines, foundations and the
natural environment.

**G. Diagnostic Systems**

There is a need to design, develop and produce innovative systems for
testing, data acquisition and characterization in the industrial and
laboratory environments. These systems include but are not limited to:
dial and digital indicators, micrometers, comparators and pressure
gages; test and process control devices including magnetic analyzers;
and inspection equipment. This thrust also includes the prototyping of
smart structures and smart devices and elements, advanced sensors and
actuators, and wireless data transmission and signal processing
techniques for use in condition monitoring, diagnosis and dynamic
response control of detectors and instruments.

**H. Power Management**

This thrust focuses on energy management devices, systems and
integrators. Included are devices such as advances in dynamometers and
throttle control systems for engines and the powertrain industry;
electromechanical switches and electronic speed controllers.

**I. Closed-loop Control**

The competitive requirements of advanced electronic devices require the
use of real-time sensors and closed-loop control systems to eliminate
the problem of defective products or unnecessary production. Such
advanced control methods will greatly reduce set-up times and improve
the reliability of processes and equipment. The development of thermal
sensors and actuators for chemical and gas process control.

**J. Non-destructive Testing**

This thrust seeks innovative means for non-contact or non-invasive
temperature, pressure, relative humidity, moisture, oxygen and gas
measurement and monitoring. Sophisticated flaw detectors and thickness
gages are also being sought under this thrust.

**K. Multi-media Systems**

This thrust seeks the development of intelligent instrumentation and
control systems.

**L. Signal Processing Systems**

Antenna array processing with application to wireless communications
systems, especially cellular telephony, Personal Communications Systems
(PCS), and wireless local area networks. Signal compression for reduced
data rate with applications to wireless communications systems.
Scalable/progressive/multiresolution approaches in signal decomposition,
compression, and other signal processing techniques to support content
analysis; data quality validation.

**M. Satellite Enhancement**

Protocol development to improve TCP/IP throughput via geosynchronous
communications satellites. Use of low earth orbit (LEO) store/forward
satellite technology for telecommand/control and data. Retrieval from
remote science data acquisition platforms (ocean, terrestrial, and
balloon-borne systems.)

**N. Input/Output Systems**

Concepts that incorporate new input/output (I/O) or mass storage devices
into a computing system are supported. High-performance I/O systems
allow increasingly widespread computers to sense and affect daily
activities. The technical approaches in this area should integrate
advances in interface hardware and software with the engineering of new
I/O devices such as smart CMOS sensors to apply computer systems to new
real-world tasks.

**Please direct inquiries to Michael Crowley, Darryl Gorman, or Joseph
Hennessey, SBIR Electronics Program Managers, telephone: 703-306-1390,
or email sbir@nsf.gov.**

**Topic (IT) [Information-Based Technologies]{.underline}**

Recent achievements in computing, in mathematics, educational and
social, behavioral and economic theories, and in the engineering of
smart devices and materials, and in new communications capabilities are
truly revolutionary. Enabled by such advances, applications of
information technologies are virtually transforming the world in which
we live. The descriptor, *information-based technologies*, is used to
signify the broad scope of this topic. It includes not only computation
and information sciences, but also other associated fields: mathematics,
social, behavioral, decision and economic sciences, technology
management and education. New advances in all these fields portend even
more significant positive changes in the way we will learn and create
and live and work in the future. Technologies that have important
commercial potential for the development, management, use and analysis
of myriad forms of information are significant and exciting areas for
applied research.

This SBIR topic focuses upon the development of commercial systems and
technologies, that will build upon the fruits of rapidly emerging
technology in this broad array of areas. Such systems can enable
astonishing developments in science, engineering, education, production,
medicine and business. This is especially so for small businesses
because opportunities in this area do not usually require major
corporate infrastructures to succeed. In fact, opportunities in this
area are often most readily captured by small organizations. This topic
will support research that can lead to the development of commercial
products and services which will improve our ability to achieve the
benefits of advances in knowledge associated with fields identified
above. The scope of the topic includes the creation and/or integration
of devices, models, algorithms, sensors, software and associated
environments, and other information capabilities such as integration of
sensing systems. Successful projects will focus upon concepts that will
ultimately result in the commercially viable employment of information
resources in service to society.

Some of the areas where new information-based products, technologies and
services can offer rich opportunities for small high-technology firms
include the following:

-   New methods to foster increased levels of interaction among people,
    organizations and communities, regardless of language and culture;

-   Techniques to improve communication, decision-making and the
    transfer of new knowledge, including Technological innovations,
    throughout organizations and society in general;

-   Products to increase personal, professional, industrial and
    commercial productivity;

-   Improved mathematical and analytical tools;

-   Advanced intelligent devices that can enable more efficient, safer
    and more satisfying products and services to improve quality of life
    in both work and home environments and to augment human
    capabilities;

-   Technologies to enable affordable universal access and effective
    uses of comprehensive information resources by all individuals and
    groups, including the disabled and the socially or economically
    disadvantaged; and

-   Enhancements in education at all levels through the development of
    richer and more effective educational innovations.

There are four subtopics for this topic. Each subtopic encompasses a set
of associated disciplines that can contribute to creative ideas for new
and innovative products and processes in a variety of application areas.
The main subtopics are:

**A. Social, Behavioral and Economic Science Applications**

**B. Educational Applications**

**C. Mathematical, Computer and Computational Applications**

**D. Information Systems Applications**

The achievement of business success in most areas associated with
innovative technology not only will require the development of
innovative tools and techniques, but also will require a comprehensive
understanding of their applications. Therefore, all areas of this topic
may require the collaboration of social, behavioral and economic
scientists during the research. Such joint collaboration can
substantially improve the ultimate potential for success of innovative
new concepts in all areas of the broadly defined information technology
market, but particularly in several areas under the **Information
Systems Applications** section of this topic.

A.  **Social, Behavioral and Economic Science Applications**

In addition to information-based technologies of direct relevance to
social behavioral and economic science applications, the achievement of
business success in most areas associated with innovative technology,
will not only require the development of innovative tools and
techniques, but also it will be necessary to provide a comprehensive
understanding of their applications. Therefore, all areas of this topic
may require the collaboration of social, behavioral and economic
scientists during the research. Such joint collaboration can
substantially improve the ultimate potential for success of innovative
new concepts in all areas of the broadly defined information technology
market, but particularly in several areas under the Information Systems
Applications section of this topic.

Potential areas for research under this subtopic for both direct social,
behavioral and economic applications and collaborative activities
include the following:

**1. Social Science Applications**

-   Employment of innovative methods to identify and analyze the social,
    legal, and ethical impacts and implications for decisions to
    commercialize new technologies.

-   Utilization of decision analysis, risk analysis, and management
    science techniques such as models of the planning, scheduling, and
    control processes in management operations in the variety of
    sectors.

-   Decision analysis models of individual and group decision making
    criteria and procedures that identify the structure of decision
    problems and can evaluate alternative strategies for
    commercialization and deployment.

-   Inclusion of inferential models and risk analysis methods for
    anticipating environmental, health and financial risks that might
    adversely affect the successful commercialization of new
    technologies. Examples include issues such as process redesign
    considerations that can affect deployment of new cost-reducing or
    pollution prevention technologies or decision and risk issues
    involved with implementation of techniques for improved management
    of hazardous facilities.

-   Development of techniques to create large data bases that integrate
    various forms of visual, textual and numeric information. (See Item
    D1 of this topic for additional detail.)

-   Use of geography and regional science capabilities such Geographic
    Information Systems (GIS) for better understanding of locational
    decision making and other types of geographical analysis that could
    affect deployment of a technology, public safety and protection of
    property. This might be particularly applicable to technologies that
    could affect urban and regional economic development or improve
    emergency management capabilities.

**2. Behavioral Science Applications**

Incorporation of innovative methodology for identifying the most
promising market segments and associated technical and marketing
strategies for achieving early adoption of research results. That
methodology is typically based on psychological, economic, sociological,
and decision research concepts, such as forecasting the impacts of
product improvements and/or price changes on sales*. Specific product
market research will not be supported.*

-   Internet-based survey methodologies and approaches that would enable
    faster, lower cost surveys. For example, enabling methodologies
    would allow faster/cheaper market research and political polling.

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-   Product design research using \"virtual\" customer techniques. These
    methods would allow feedback on virtual prototypes to inform
    designs. Tools and techniques would allow for the integration of
    customer needs and engineering product characteristics.

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-   Products that facilitate environmental and urban monitoring,
    including hardware and software that enable the collection, display,
    integration, and/or analysis of data pertaining to the human
    environments.

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-   Hardware and software to enhance ability to collect multi-channel
    evoked potential (ERP) data, hardware and/or software to aid in
    tracking eye movements during visual scanning, development of
    virtual reality technology that could be used in laboratory settings
    to create wrap around visual environments for research on scene
    perception.

-   Audio-computer technology for administering measures to adolescents,
    children, and adults.

**3. Economic Science Applications**

Application of economic science techniques, including where appropriate,
econometric analysis, economic modeling, and other areas of
computational economics; economic forecasting; and research in other
areas of economics such as finance, international economics, labor, and
industrial organization.

**B. Educational Applications**

This subtopic supports projects that will broaden access to and enhance
student learning and participation in science, mathematics, engineering,
and technology at every level of education (including pre-kindergarten
through graduate studies, science literacy for the general public, and
education for seeking new career opportunities or new skills in the
technological workplace.) In the area of education and development of
human resources, NSF seeks to provide leadership in improving the
quality of science, mathematics, engineering, and technology education
for all students; to increase the participation of underrepresented
populations (women, minorities, and persons with disabilities) in the
scientific enterprise; and to expand opportunities for the public
understanding of science and technology. Proposals submitted under this
topic must support one or more of the five major long-terms goals of
education and development of human resources in the NSF:

-   To ensure that a high--quality education in science, mathematics,
    engineering and technology is available to every student, enabling
    those with interest and talent to pursue scientific and technical
    careers at all levels and providing a base of understanding of
    scientific and technological concepts;

-   To ensure that individuals who select scientific, engineering, and
    advanced technology careers have available the best possible
    education in their respective disciplines;

-   To ensure that opportunities are available for interested
    non-specialists to broaden their scientific and technical
    backgrounds;

-   To enable high performance and productivity in the technological
    workplace;

-   To provide access to scientific, mathematical and engineering and
    technology knowledge and skills and human-system interfaces that
    contribute to high performance and productivity in the workplace and
    in personal living.

Advanced technologies have revolutionized many segments of the economy.
While showing great potential for the education sector, this impact has
been limited. Emerging technologies can play an important role in
enhancing student learning and participation in science, mathematics,
engineering, and technology. Emphasis is on the development of
innovative hardware or software that promises (1) to improve the
learning of scientific and technical principles, as well as problem
solving at all educational levels; (2) to facilitate interactive
learning; (3) to broaden access to quality science and technology
education; and (4) to promote equal access for those with disabilities.
\[*Note: Projects for specialized educational equipment for persons with
disabilities should be submitted under* c.\]

**1. Technologies for Teaching, and Learning (preK-12)**

Categories of proposals most strongly encouraged are as follows:

> Development of Web-technologies that facilitate and promote
> educational collaboration across distances among peers, as well as
> across educational boundaries connecting educators and students to
> scientists, mentors, experts, and enable remote access and use of
> educational resources not locally available, which can be either
> software or hardware.

-   Technology to support embedded assessment that goes beyond the
    traditional separate testing activities to assessment that is
    ongoing and embedded in the child\'s learning activities. These
    tools should be more versatile and provide fuller information on
    each student. Moreover, these tools should be useful in helping to
    identify specific content and methodological strengths and
    weaknesses of the learner.

-   Computer simulation and modeling that promotes enhanced student
    learning through such means as visualization and virtual
    experimentation. This could include providing access to data sources
    and support for modeling large data sets or complex processes.

-   Physical modeling technologies to enable learning through real-world
    experimentation.

-   Just-in-time or on-demand instruction that provides timely
    information and support for teachers and learners. These could be
    related to new or dynamic topics that are difficult to offer in
    printed (fixed) format, but could include more general forms of
    support for educators and students.

Under category 1, to further assist in identifying a panel most
appropriate for review of your proposal, you should indicate the
educational level (i-iii) as follows:

i\. Elementary (grades pre K-5).

ii\. Middle School (grades 6-8).

iii\. Secondary School (grades 9-12).

**2. Higher Education**

Proposals are invited to develop hardware and/or software,
instrumentation, or other equipment to improve undergraduate/graduate
science, mathematics, engineering, or technology education. Applications
may include classroom or laboratory use, research experiences for
undergraduates, or distance learning. Proposers are encouraged to review
the most current Undergraduate Education Program Announcement and
Guidelines (see [http://www.ehr.nsf.gov](http://www.ehr.nsf.gov/) or NSF
98-45) for further information in developing a proposal.

**3. Assistive Technology in Information Environments**

\[*Note: Projects for anatomical devices (e.g., prosthetics, etc) and
for mobility devices (e.g., wheelchairs) should be submitted under one
of the other 3 topics as appropriate, Advanced Materials and
Manufacturing, Biotechnology or Electronics*\]

-   Devices or software for persons with physical or cognitive
    disabilities that will improve independent performance of activities
    in employment, education and personal living.

-   Educational equipment for persons with physical or cognitive
    disabilities that aids in the delivery , support, or access of
    quality education in science and mathematics through such means as
    adaptive equipment, instructional methods, and technologies.

-   Human-system interfaces for persons with physical or cognitive
    disabilities, with a primary focus on access to information and
    information technology.

-   Devices or software that simulate various limitations that will
    enhance the capability of developers of new technologies to aid
    people with disabilities by ensuring that products are created under
    conditions that will result in a match with the needs of the
    targeted.

Specific Evaluation Criteria - Proposals submitted under this subtopic
should be focused on establishing the feasibility of developing an
innovative and cost-effective product that promises to have a major
impact on science, mathematics, engineering, and technology education.
In addition to the two NSF general research evaluation criteria
specified earlier in this solicitation, the following must be addressed
as appropriate:

> a\. Demonstrated need for the proposed product.
>
> b\. Evidence that the proposed product is unique and innovative, e.g.,
> with promise to advance the state-of-the-art in educational
> technologies.
>
> c\. Demonstrated knowledge of accepted content standards in science,
> mathematics, engineering, and technology.
>
> d\. Demonstrated awareness of research on student learning and
> teaching ensuring sound pedagogical techniques and developmental
> appropriate content and instructional strategies.
>
> e\. Demonstrated involvement of science, mathematics, engineering, and
> technology education at appropriate education levels.
>
> f\. Promise of transportability (i.e., replication across sites),
> scalability (i.e., increasing the number of users), and ease of use so
> as to maximize impact on the education

For further information to assist in developing an SBIR proposal within
this subtopic or identifying other programs, proposers are referred to
the most current Education and Human Resources (EHR) announcements
([http://www.ehr.nsf.gov](http://www.ehr.nsf.gov/)): Division of
Elementary, Secondary, and Informal Education (NSF 98-4); Division of
Undergraduate Education (98-45); and Activities in Science, Engineering,
and Mathematics for Persons with Disabilities (98-144).

**C. Mathematical, Computer and Computational Applications**

This subtopic supports research that will lead to innovative techniques
and systems for enhancing the ability of scientists, mathematical
scientists, engineers and educators to treat complex problems. As new
discoveries are made through advanced research, the need for improved
ways to use that knowledge often requires improved, or even completely
new, analytical and statistical approaches and computational systems.
Proposals are solicited for research on new computational applications,
in any scientific, mathematical, or engineering discipline, but
particularly where new discoveries have indicated the need for
capabilities beyond currently available analytic, statistical, or
computational technology. Research leading to applications of advanced
mathematics, and for hardware and software to solve or analyze complex
problems as well as educational applications for computational science
and engineering, are covered by this topic.

**1. Mathematical Methods, Models and Systems**

Analytic Methods. Flows including properties of dusty gases, flow of oil
and water in porous media, flow of slurries in pipes, blood flow, flows
with chemistry, and multiphase flows. Optimal design including minimal
weight structures, drag reduction, optimal composition of composite
materials, and optimal shape design. Systems theory including parameter
identification and control of nonlinear and/or distributed parameter
systems, nonlinear filtering, stochastic control, and discrete event
control. Phenomena involving multiple scales including vortex structures
in turbulent flows, polymer shapes, combustion, phase transition, and
quantum optics. Inverse problems including tomography, NMR, geophysical
prospecting, conductivity, and nondestructive evaluation. Nonlinear
continuum mechanics including multivariate splines, large deformations
in elastic materials, crack formation, and turbulent fluid flow.
Nonlinear optimization and optimal control.

-   Algebraic Methods. Mathematical coding theory and cryptology.
    Combinatorial complexity including algorithms, computer codes, and
    large-scale combinatorial optimization. Combinatorics including
    computation and algorithms. Symbolic computation.

-   Statistical Methods. Optimal design including design for multifactor
    general linear models, for response surfaces, for robust inference,
    for nonparametric and semiparametric models, and including adaptive
    design. Statistical computation and algorithms and Monte Carlo and
    probabilistic problem solving. Statistical graphics including
    graphical methods for high dimensional data, visualization, image
    reconstruction, curve and surface fitting, and pattern recognition.
    Statistical modeling including nonparametric and semiparametric
    modeling, modeling for unequal probability samples and unequal
    spacings, predictive modeling and expressions of model uncertainty,
    Bayesian modeling of opinion and data, and modeling expert systems.
    Inferential methods such as robust procedures including re-sampling,
    and detection of change point phenomena. Spatial statistics
    including modeling and mapping techniques, inference for remotely
    sensed data, and spatial time series analysis. Statistical
    reliability including inference for truncated observations and data
    with informative censoring, statistical process control. Studies
    related to problems in massive datasets and databases.

-   Geometric Methods. Geometry of robotic devices. Geometry of DNA and
    polymer structures. Integral geometry, geometric probability,
    stochastic geometry, and pattern recognition. Packing and tiling.
    Geometric modeling for CAD/CAM. Computational geometry. Development
    and application of fractal techniques.

-   Stochastic Models. Construction, analytical and algorithmic
    development, and validation of stochastic models with emphasis on
    realistic, data‑driven models developed in close consultation with
    experts in areas such as biological systems, ecology, environmental
    systems, geosciences, atmospheric sciences, materials science, and
    social sciences.

-   Computational Mathematics. Design and development of symbolic and
    numeric algorithms that better exploit current and future
    technological developments related to simulation and computation.
    The focus is on development of critical computational techniques
    from algorithm development through implementation. Interest ranges
    over various subjects including dynamical systems, computational
    fluid dynamics, computer graphics and the mathematics of
    visualization, parallel computing, symbolic computation, and
    computational statistics.

**2. Computer and Computational Science**

The foci of this subtopic are on the following:

-   enabling technologies for computational science including
    technologies needed to advance the state of the art in high
    performance computing and to bring advanced computing and simulation
    capabilities to bear on fundamental problems throughout the sciences
    and engineering;

-   understanding, improvement, and use of advanced tools that involve
    interactions among people;

-   automated physical or computational systems, and information
    resources, using methods based on computing, cognitive, and
    information sciences and robotics, and especially emphasizing the
    utility to people as users, or in heterogeneous, possibly mobile
    environments;

-   research in communication networks with special emphases on optical
    networks; networks integrating voice, data, and video, multimedia
    networks; wireless networks and wireless access to networks, very
    high speed networks and distributed computing;

-   research in computer science, computer engineering, communications,
    and signal processing systems aimed at significant improvements in
    one or more of the areas below.

Multi-disciplinary research is encouraged. Specific areas of interest
include the following:

-   Programming tools, from high-level problem-solving environments
    through programming languages and compilers to run-time systems and
    libraries.

-   Graphics and visualization, including scientific visualization;
    applications of virtual reality in scientific computing,
    telerobotics, remote computing and remote collaboration; and
    computational steering.

-   Data handling, including parallel I/O systems, data mining, and
    management of large data sets.

-   High performance computing, including innovative uses of high
    performance computing; parallel numerical algorithms and libraries;
    and very high performance computing applications.

-   Network architectures, including modeling, analysis, and design of
    network architectures and topologies.

-   Network protocols, including protocol development such as fast
    computation protocols for very high speed networks; formal models
    for protocol development; distributed protocols; and protocol
    specification, verification, and performance.

-   Network management, including routing, flow control, performance
    modeling and analysis, fault diagnosis, and distributed algorithms.

-   Optical networks, including new architectures especially designed
    for optical networks, performance comparisons among alternatives,
    new architectures, and new approaches to high‑speed switching and
    switch design.

-   Multimedia networks, including techniques, protocols, algorithms,
    and architectures for the creation, transmission, storage and
    retrieval and sharing of multimedia information.

-   Communications and signal processing systems, including wireless
    access and architectures, protocols, signaling, network management,
    error control; addressing, mobility management, dropout recovery and
    other aspects of wireless access to networked information resources
    and computing

-   High performance distributed information systems, internet
    electronic commerce, and security.

-   New algorithms, languages, tools, and hardware and software systems.

-   Design and implementation of computer languages.

-   Numeric, symbolic, and geometric computation.

-   Algorithms, data structures, and software tools to support
    scientific problem solving.

-   Tools and systems for design automation.

-   Design and imprlementation of software systems and computer
    languages.

**D. Information Systems Applications**

\[Note: *Proposals for electronic devices in this area should be
submitted under* **Topic ET** *and proposals for new materials should be
submitted to* **Topic AM***. Only proposals for information-based
systems are appropriate for the descriptions below*.\]

**1. Information Representation, Storage and Discovery**

Together, the information repositories available in the current
information infrastructure hold information on a truly vast scale, with
data represented in a wide variety of forms, including various human
languages, digital and video images, audio, mathematical equations, and
database relations. In order to harness the full capability of the
information revolution, the information sought must be readily located
and transmitted to the user. Consequently, this subtopic is seeking R&D
proposals, likely to result in commercial products and/or services with
the following capabilities:

-   Technologies leading to more effective representation of multimedia
    objects

-   Low-power storage hardware for mobile, multi-media access devices

-   Technologies which permit the creation and co-ordination of large,
    dynamic, distributed knowledge repositories for the creation,
    preservation and distribution of digital information or objects in
    many modalities and in various knowledge domains

-   Integration and translation services which can integrate and/or
    translate information from multiple formats to other formats,
    subject to semantics constraints

-   Knowledge discovery services which track the creation of new
    databases and update existing repositories as new
    information/knowledge is created

-   Data and knowledge management services which can find information
    relevant to the request, and which can infer the right audience for
    a piece of information produced

**2. Information Preparation and Transmission**

The development of both wired and wireless communications technologies,
which can provide the means to deliver information to the user,
artifact-free, is also essential. Topics include research on concepts
likely to result in commercial products and/or services such as the
following:

-   Techniques, protocols, algorithms, architectures and tools enabling
    the efficient and effective wired and/or wireless transmission of
    multimedia information (incl. compression, modulation and coding,
    network management and protocols)

-   Technologies which enable the development of intelligent, reasoning
    systems which automate planning and scheduling of information
    collection and transmission

-   Scalable, progressive, multi-resolution approaches in signal
    decomposition, compression and other signal processing techniques to
    support content analysis and data quality validation

**3. Information Delivery**

In order to harness the full capability of the information revolution,
machines must be able to communicate more effectively with people. Thus,
information should be delivered to the user in a familiar and flexible
way. In order to provide an effective interface between person and
machine, it is necessary to develop products, which are sensitive to,
and capable of mimicking the many communication modalities used by
people. These human-friendly interfaces will be capable of sensing
gestures, graphics, animation and natural language, and will be able to
respond in a communication modality most appropriate to meet specific
user needs. With critical research investments, these interfaces will
also be capable of learning, over time, the preferences, skills and
pattern of use of a particular user, and will adjust automatically to
this user in subsequent interactions.

Proposals focussed on the development of such human-centered interfaces,
which will result in commercial products, are sought in this subtopic.
Examples include the following:

-   Devices and technologies leading to the development of intelligent,
    adaptive, multimodal human - machine interfaces. Communication
    modalities might include speech recognition, natural language
    understanding, speech synthesis, gesture recognition, facial
    expression recognition, and tactile interfaces

-   Sensors and sensor systems which facilitate more effective
    human-machine communications

-   Machine learning technologies enabling the interface to adapt
    operations and interactions to each user's preferences

-   Visualization techniques resulting in the effective delivery of
    multimedia objects

**4. Information-Intensive Robotic Systems**

Techniques that develop and enhance intelligence in robotic systems.
Topics include the following:

-   Smart sensors and real-time perception systems to enable
    perception-based modeling, reasoning, and activity in various
    physical environments

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-   End-user robots with advanced capabilities of human-machine
    interaction to serve different human needs, assist people with
    disability, and augment human capabilities in performing physical
    tasks

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-   Technologies to enable communication and physical coordination among
    distributed robotic systems

> **5. Intelligent Interactive Systems**

The development of intelligent systems, which integrate the capabilities
discussed above in important applications, is also essential, and will
ultimately result in the universal availability of human-centered
systems, which will optimize the application of information in service
to society. Consequently, R&D proposals are sought in the following
areas:

-   Software tools, which capitalize upon multimedia information and are
    designed to enable resource sharing, distributed reasoning and
    effective co-ordination and decision making among groups of people
    or robotic systems that may not be co-located

-   The development of new and effective models which support or monitor
    the impact of such tools for creatively structuring decision
    problems and for evaluating alternative actions

-   Products which monitor the impact of intelligent systems in group
    and organizational interactions

-   Products which determine the usability and adaptability of
    intelligent systems

-   Development of programming paradigms and software environments
    tailored to problem domains and task specifications

-   Advanced simulation and modeling technologies which allow the
    immersion of the user in the task environment, thereby creating a
    virtual environment

-   End-user enhancement technologies which assist humans in performing
    complex information management tasks

-   Products grounded in theory and based on empirical observation which
    facilitate intelligent systems development in areas such as human
    factors, psychometrics, assessment of physiological state,
    enhancement of sensory systems, deception detection, and processing
    of facial, vocal and expressive information

-   Technologies which can accelerate development, management, and
    affordable universal accessibility of digital information and
    communications

-   Techniques and tools for multi-lingual information management

-   Techniques and tools for multi-media information management

-   Techniques and tools for wireless information management

-   Techniques and tools for process/workflow management in information
    systems

-   Methodologies, techniques and tools for information systems
    evolution, migration, version management, and long-term storage,
    especially for very complex and very large (TB) systems

-   Techniques and tools for multi-modal interfaces, such as for speech
    and gestures

-   Techniques and tools for dialogic interaction with information
    resources

-   Techniques and tools which support alternative forms of Internet and
    WWW access through representational means such as VOXML (TM)

-   Multi-agent system applications such as distributed resource
    scheduling, simulation assessment or expert systems

-   Personal robotics which assist or serve human needs such as in
    education and training or for people with disabilities

-   Software tools which capitalize on multi-media information and
    communication capabilities and which are designed to enable
    collective resource sharing, reasoning, coordination,
    decision-making and collaboration among groups of people and/or
    intelligent agents, including robotic devices, which are distributed

-   Performance engineered computing and communications systems will
    include methods and tools leading to the development of performance
    frameworks for modeling, measurement, analysis, evaluation and
    prediction of performance of complex computing , communications and
    robotic systems and of the applications executing on such systems

-   Simulations of organizational and group learning

-   Information Systems for Engineering Management

-   \[Note: *Proposals for electronic devices in this area should be
    submitted under* Topic ET *and proposals for new materials should be
    submitted to* Topic AM*. Only proposals for information-based
    systems are appropriate for the descriptions below*.\]

-   Information-based technologies employing new concepts for analysis
    of new, deteriorated, and repaired structures and systems such as
    technologies to determine performance of construction materials and
    that can provide enhanced assessment of deterioration processes and
    rates. Information management systems for inexpensive diagnosis of
    infrastructure component or system condition over the whole life
    cycle of the constructed facility. Information systems to coordinate
    building heating, ventilating, air conditioning, and lighting
    systems. Techniques for determination and control of air quality and
    pollutants in building environments. Technologies for design,
    including performance and optimization for initial construction,
    operation, utilization, and renewal or recycling of structures and
    systems.

-   Information-based techniques for assessment and analysis of natural
    and technological hazards on structures, lifelines, foundations and
    the natural environment. Research is supported for innovations that
    can enhance capabilities for: (a) verification of design procedures
    and methodologies using data from laboratory and field
    experiments; (b) simulation of earthquakes; (c) measurements during
    major events; and (d) post-earthquake reconnaissance inspections.
    Techniques for seismic design, of geotechnical structures such as
    foundations; retaining walls, slopes, earth dams, buried lifelines,
    soil and site remediation. Tools for performance-based engineering
    and design. Global hazard data and information systems. New design
    technologies, and techniques for improved safety, maintenance, and
    operation of lifeline systems such as pipelines, bridges, and
    tunnels. Engineering tools such as internet technologies for
    real-time large data systems, innovative computer systems for use of
    land-use planning, and seismic and wind insurance policies.

-   Infrastructure management technologies that apply new discoveries in
    engineering design, decision science, information science (i.e.,
    sensors and sensor systems, data acquisition, data mining, knowledge
    creation and management), socio-economic sciences (e.g., valuation,
    preference, privatization and impact of investment, regulations and
    contract practice), and external effects (e.g., value of time,
    maintenance and environment), which can be used for planning,
    performance assessment, risk evaluation, supply and demand analyses,
    investment impact, and life cycle management.

-   Computational tools and techniques for organizational engineering
    and environmental studies.

-   TCAD (Technology Computer Aided Design) for Improved Processes and
    Devices including the development of robust TCAD (tools and
    software) to support all stages of IC design, manufacturing and
    testing as well as design for manufacturability, reliability and
    performance.

**Please direct inquiries to G. Patrick Johnson or Sara Nerlove, SBIR
Information-Based**

**Technologies Program Managers, telephone: 703-306-1390, or email
sbir@nsf.gov.**

 

**CHAPTER 9.0 STTR Proposal Preparation Instructions for Phase I and
Phase II**

 

**9.1 Contact NSF.** Questions about the NSF STTR Program should be
directed to the STTR Program Manager at the following address: STTR
Program Office, National Science Foundation, Room 550, 4201 Wilson
Blvd., Arlington, VA 22230, telephone (703) 306-1390 or by email at
[sbir@nsf.gov](../sbir@nsf.gov)

**9.2 Considerations.** Reference [Chapter 3.0](../Chapt-3.htm),
sections [3.1.2](../Chapt-3.htm#3.1), [3.1.3](../Chapt-3.htm#3.1),
[3.1.4](../Chapt-3.htm#3.1), [3.1.5](../Chapt-3.htm#3.1)

**9.3 General Requirements for Phase I Proposals.**

**9.3.1 Page Limitation.** Reference [Chapter 3.0, section
3.2.1](../Chapt-3.htm#3.2)

**9.3.2 Type Size and Spacing.** Reference [Chapter 3.0, section
3.2.2](../Chapt-3.htm#3.2)

**9.3.3 Requirement Format.** Reference [Chapter 3.0, section
3.2.3](../Chapt-3.htm#3.2). The following forms are required for
preparing a STTR Phase I proposal.

Proposal Cover page and Certification Page ([Attachment
B-STTR](../Attach/Attach-B.htm)).

1.  Project Summary ([Attachment C](../Attach/Attach-C.htm)).

2.  Information about Principal Investigators/Project Directors
    ([Attachment A](../Attach/Attach-A.htm)).

3.  Technical Proposal **in 12 parts** ([Chapter 3, Section
    3.5](../Chapt-3.htm#3.5)) including graphics and starting at page 3
    with a table of contents.

4.  Summary Proposal Budget ([Attachment D](../Attach/Attach-D.htm)) and
    Budget Explanation Page (a separate Budget/Attachment D and Budget
    Explanation Page is also required for each subawardee).

5.  Company Commercialization History ([Chapter 3, Section 3.5, Part
    12]{.underline})

Phase I proposals must be presented within the 25-page limitation. The
following **do not count towards the page count:**

-   The Proposal Cover Page\'s Certification Page.

-   The Information about Principal Investigator/Project Directors.

-   The Budget Instruction Page.

-   The Company Commercialization History.

**9.4 Proposal Cover Page and Project Summary.** Reference [Chapter 3.0,
section 3.4](../Chapt-3.htm#3.4)

**9.4.1 Page 1: Proposal Cover Page and Certification (NSF Form 1207).**
Reference [Chapter 3.0, Section 3.4.1](../Chapt-3.htm#3.4). Use
[Attachment B-STTR](../Attach/Attach-B.htm) for STTR Phase I proposals.

**9.4.2 Page 2: Project Summary (NSF Form 1304).** Reference [Chapter
3.0, Section 3.4.2](../Chapt-3.htm#3.4). The Project Summary should
begin as follows: \"**This Small Business Technology Transfer Phase I
project\...**\"

**9.4.3 Information about Principal Investigator/Project Directors (NSF
Form 1225).** ([Attachment A](../Attach/Attach-A.htm)) Reference
[Chapter 3.0, Section 3.4.3](../Chapt-3.htm#3.4).

**9.5 STTR Phase I Proposal Preparation Instructions.** The technical
proposal shall contain the following parts in the following order.
(Note: Parts that are not applicable must be noted as \"Not
Applicable\".)\
 \
**Part 1. Table of Contents. Page 3**, reference [Chapter 3.0, Section
3.5, Part 1](../Chapt-3.htm#3.5, P1).

**Part 2. Identification and Significance of the Innovation.** Make a
clear statement of the specific research problem or opportunity
addressed and its importance. For further information reference [Chapter
3.0, Section 3.5, Part 2](../Chapt-3.htm#3.5, P2).

**Part 3. Phase I Research Objectives.** Reference [Chapter 3.0, Section
3.5, Part 3](../Chapt-3.htm#3.5, P3).

**Part 4. Phase I Research Plan.** Reference [Chapter 3.0, Section 3.5,
Part 4](../Chapt-3.htm#3.5, P4). Describe the Phase I research plan in
detail.

-   Indicate what is planned and how the research will be carried out.

-   Include a technical discussion of the proposed concept, the methods
    planned to achieve each objective or task, and the sequence of
    experiments, tests and computations.

-   Link the objectives and the questions which the Phase I research
    effort is designed to answer.

-   **Specifically address the amount and type of work to be performed
    both by the small business concern and by the research institution
    and describe the necessary cooperation, coordination, and
    complementarity.**

-   **List key personnel involved in the project and describe the
    programmatic and fiscal arrangements for the cooperative research.**

    **Part 5. Commercial Potential.** Reference [Chapter 3.0, Section
    3.5, Part 5](../Chapt-3.htm#3.5, P5).

    **Part 6. Company Information and Management Team.** Reference
    [Chapter 3.0, Section 3.5, Part 6](../Chapt-3.htm#3.5, P6).

    **Part 7. Consultants and Subawards.** Reference [Chapter 3.0,
    Section 3.5, Part 8]{.underline}.

**Part 8. Equipment, Instrumentation, Computers and Facilities.**
Reference [Chapter 3.0, Section 3.5, Part 8](../Chapt-3.htm#3.5, P8).

**Part 9. Equivalent or Overlapping Proposals to other Federal
Agencies.** Reference [Chapter 3.0, Section 3.5, Part
9](../Chapt-3.htm#3.5, P9)

**Part 10. Current and Pending Support of Principal Investigator,
Research Institution Investigator and Senior Personnel.** Provide
information about all research to which the Principal Investigator, the
Research Institution Investigator, and other senior personnel have
committed time for the period of performance under an STTR grant,
whether or not salary for the person involved is included in the budgets
of the various projects. Reference [Chapter 3.0, Section 3.5, Part
10](../Chapt-3.htm#3.5, P10) .

**Part 11. Written Cooperative Agreement.** The Written Cooperative
Agreement should be provided to NSF with the Phase I proposal. If the
Agreement has not been signed at the time the proposal has been
submitted, the negotiation process should be underway and a statement to
that effect must be provided to NSF with the Phase I proposal. When an
award is being considered, the signed Agreement MUST be provided to NSF
upon request.

The Agreement between the small business concern and the research
institution must cover the allocation of intellectual property rights,
if any, to carry out follow-on research development, or
commercialization.

A model agreement relating to these issues is provided in [Section
9.7](#9.7). This model is for guidance only and may be modified by the
parties. The Agreement must contain the signatures of an official of the
small business concern and an appropriate official of the research
institution.

By signing the proposal, the official of the small business concern
certifies that the agreement negotiated with the research institution is
satisfactory to the small business concern.

**Part 12. Summary Proposal Budget.** ([Attachment
D](../Attach/Attach-D.htm)) In the STTR Program, research is to be
conducted jointly by a small business concern and a nonprofit research
institution. Not less than 40 percent of the work conducted under an
STTR award must be performed by the small business concern, and not less
than 30 percent of the work must be performed by the nonprofit research
institution. That is, **a minimum of 40 percent** of the total budget
must be allocated to the small business concern, and **a minimum of 30
percent** of the total budget must be allocated to the cooperating
research institution. ([Reference Chapter 3.0, Section 3.5, Part
11]{.underline}.)

-   **Expenditures for consultants and subcontractors do not count
    towards the requirement that not less than 40 percent of the work
    must be performed by the small business concern, and that not less
    than 30 percent of the work must be performed by the research
    institution.**

-   Complete a Form 1030B for the total budget. Phase I estimates must
    be shown in detail on this form. Funds for the research institution
    should be shown on G.5. \--Subcontracts\--of the NSF Summary
    Proposal Budget.

-   **Breakouts of the budgets for the small business concern and for
    the subcontract to the research institution must be provided on
    separate Form 1030Bs**. Proposers are encouraged to use photocopies
    of Appendix D-1 for these breakouts.

-   **Purchases of routine analytical or other routine services from
    commercial sources are not regarded as reportable subcontract
    activity.** For such activity no letter is required. The item\--
    routine analytical or other routine services\--should be reported in
    the Budget ([Appendix D](../Attach/Attach-D.htm)) under Other Direct
    Costs/Other.

In the Summary Proposal Budget and in the breakout budget for the small
business concern, the Principal Investigator and senior personnel
employed by the small business concern should be listed by name with
their time commitments budgeted in person-months and in dollar amount
for the period of performance. In the breakout budget for the
subcontracting research institution, the Research Institution
Investigator and senior personnel employed by the research institution
should be listed by name with their time commitments budgeted in
person-months and in dollar amount for the period of performance.

-   The budget should reflect cost for work to be done only after the
    effective date of the award. Any costs incurred prior to the
    issuance of an award document are at the grantee\'s own risk.

-   The reimbursement rates for consultants are a direct cost which
    cannot exceed the daily rate paid to an Executive Level IV or
    equivalent\--currently **\$453 per day**. Consultant travel should
    be shown under the travel category.

-   Equipment and foreign travel cannot be included in the Phase I
    budget. Equipment is defined as an article of non-expendable,
    tangible property, having a useful life of more than one year and an
    acquisition cost of \$5,000 or more per unit.

-   The budget should indicate in general terms the categories of
    expendable materials and supplies required, with their estimated
    costs. The breakdown should be more detailed when the cost exceeds
    \$5,000.

-   The total budget on line L of Form 1030B (including a fee of up to
    7%) must not exceed \$100,000 for the Phase I proposal.

-   Reasonable fees (estimated profit) will be considered under both
    phases of the solicitation. The amount of the fee included in the
    proposed budget will not exceed 7 percent of total project costs.
    Cost-sharing is permitted; however, it is not required nor will it
    be a factor in the evaluation of a proposal.

-   The small firm and the research institution should submit separate
    copies of NSF Form 1030B. Each organization should have their own
    principal investigator and appropriate organizational representative
    sign Form 1030B.

-   Budgets for travel funds must be justified and related to the needs
    of the project. Travel expenses for attendance at technical
    conferences are not permitted unless the conference directly relates
    to the project.

-   Tuition costs are not considered research or research and
    development. Accordingly, they are not acceptable costs and should
    not be included in the budget.

**Part 13. Prior SBIR/STTR Phase II Awards.** Reference [Chapter 3.0,
Section 3.5, Part 12](../Chapt-3.htm#3.5, P12).\
 \
**PHASE II INSTRUCTIONS**

In general STTR Phase II proposals follow the format of SBIR Phase II
proposals (reference [Chapter 10.0]{.underline}).

**9.6 STTR Phase II Proposal Instructions.** The objective of Phase II
is to continue the R/R&D effort from Phase I. Only NSF STTR Phase I
awardees may compete for NSF STTR Phase II projects. The STTR Phase II
proposals have fixed dates, reference the [Table of Deadlines. Section
6.3](../Chapt-6.htm#6.3).

**9.6.1 Phase II Proposal Contents.** In general, STTR Phase II
proposals follow the format of STTR Phase I proposals (reference
[Chapter 9.0, Section 9.5](../Chapt-3.htm)). The Phase II proposal is
limited to a total of 35 consecutively numbered pages (single- or
doubled-spaced). Phase II proposals shall be addressed in the following
\"Part\" order listed.

**Part 1: Phase II Proposal Cover and Certification. (**[Attachment
F-STTR](../Attach/At-FSTTR.htm)**)** Reference [Chapter 3.0, section
3.4.1](../Chapt-3.htm#3.4). The performance period for STTR Phase II
cannot exceed 24 months. The Phase I award number shall be included on
the cover page.

**Part 2: Project Summary. (Attachment C)** Reference [Chapter 3.0,
section 3.4.2](../Chapt-3.htm#3.4). The summary should begin as follows:
**\"This Small Business Innovation Research Phase II project \...\"**

**Information about Principal Investigator/Project Directors (NSF Form
1225). (**[Attachment A](../Attach/Attach-A.htm)**)** Reference [Chapter
3.0, Section 3.4.3](../Chapt-3.htm#3.4).

**Part 3. Table of Contents.**

**Part 4. Results of the Phase I Project.** Briefly describe how Phase I
has proven the feasibility of the innovation, provided a rationale for
both NSF and commercial applications, and demonstrated the ability of
the proposer to conduct R/R&D.

**Part 5. Phase II Technical Objectives, Approach, and Work Plan.**
Define the specific technical objectives of the Phase II research and
technical approach to meet these objectives. Provide a work plan
defining specific tasks, performance schedules, milestones, and
deliverables.

**Part 6. Company Information.** Reference [Chapter 3.0, Section 3.5,
Part 6]{.underline}.

**Part 7. Management Team.** Identify the key personnel for the project,
confirm their specific availability for Phase II, and discuss their
qualifications in terms of education, work experience, and
accomplishments that are relevant to the project. For any PI who is an
employee of an academic or non-profit organization, provide a release
statement as described in [Chapter 1.0, Section
1.4.4](../Chapt-1.htm#1.4) of this solicitation. Also reference [Section
3.5, Part 6](../Chapt-3.htm#3.5, P6).

**Part 8. Facilities and Equipment.** Discuss requirements for and the
availability of equipment, instrumentation, and facilities required for
Phase II. If a proposer proposes the use of unique or one-of-a-kind
Government facilities, a statement, describing the uniqueness of the
facility and it\'s availability to the proposer at specified times,
signed by the appropriate Government Official must be included with the
proposal.

**Part 9. Consultant and Subaward Agreements**. Information on the
qualifications of the consultants, their education, experience, any
directly relevant publications, and how their efforts will contribute to
the proposal. Propers should have in their own file evidence of the
commitment of consultants to participate in the project.

In addition, provide a signed statement from each consultant, whether
paid or unpaid, confirming his/her availability and time commitment,
role in the project, and agreed consulting rate (not to exceed \$453 per
day).

In the case of subawardee involvement, research other than at the
cooperating research institution, the subawardee must furnish a letter
signed by an appropriate official describing the programmatic
arrangements and confirming its agreed participation in the research
along with its proposed budget on an NSF Form 1030A.

For further clarification reference [Chapter 3.0, Section 3.5, Part
7](../Chapt-3.htm#3.5, P7).

**Part 10. Equivalent or Overlapping Proposals to other Federal
Agency.** Reference [Chapter 3.0, Section 3.5, Part
9](../Chapt-3.htm#3.5, P9).

**Part 11. Current and Pending Support of Principal Investigator and
Senior Personnel.** Reference [Chapter, 3.0, Section 3.5, Part
10](../Chapt-3.htm#3.5, P10).

**Part 12. Summary Proposal Budget.** ([Attachment
D](../Attach/Attach-D.htm)) The NSF Summary Proposal Budget page must be
used for Phase II proposals and it must show information for the total
project. Read the second page of the budget form. Also provide the
required explanation of budget items. The proposed costs indicated on
the proposal budget should be consistent with the scope of the research
effort and must be based on accurate, complete, and current cost or
pricing data. Phase II awards are typically up to \$450,000 and for up
to 24 months. Reference [Chapter 3.0, section 3.5, Part
11](../Chapt-3.htm#3.5, P11) for more information regarding proposal
budget preparation.

**NOTE, PARTS 13-16 DO NOT COUNT TOWARDS THE PAGE LIMIT**

**Part 13. Payment Schedule and Project Milestone Chart. This section
does not count towards the page limit.** A payment schedule and project
milestone chart are required components for all Phase II proposals.

Based on the expected utilization of resources and expenditures of
funds, if the standard payment schedule as described in the SBIR Phase
II Grant General Conditions, Article 6,
(<http://www.nsf.gov/cgi-bin/getpub?sbirii>) is not appropriate, you
must provide a list of the number of payments, the percentage amount of
each payment, and a brief justification for the departure from the
standard schedule (see [Chapter 5.0](../Chapt-5.htm)). For complete
instructions on preparing the Payment Schedule information and the
Project Milestone Chart, reference [Chapter 10.0, Section 10.2, Part
13]{.underline}.

**Part 14. Commercialization Plan and Follow-On Funding Commitment(s).
This section does not count towards the page limit.** Reference [Chapter
10.0, Section 10.2, Part 14]{.underline}.

**Part 15. Written Cooperative Agreement.** The Written Cooperative
Agreement provided in the Phase I proposal should be updated. Reference
[Chapter 9.0, Section 9.7](#9.7)[.]{.underline}

**Part 16. Company Commercialization History.** Reference [Chapter 3.0,
Section 3.5, Part 12]{.underline}.

**9.7 Model Format for Written Cooperative Agreement.**

Model Agreement\
Small Business Technology Transfer (STTR) Program Allocation Of Rights
In Intellectual Property And Rights To Carry Out Follow-On Research,
Development,\
Or Commercialization

This Agreement between
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, a small
business concern organized as a
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_under the laws of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ and having a principal place of
business
at\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
(\"SBC\") and
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
a research institution having a principal place of business at
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
(\"RI\") is entered into for the purpose of allocating between the
parties certain rights relating to an STTR project to be carried out by
SBC and RI (hereinafter referred to as the \"PARTIES\") under an STTR
funding agreement that may be awarded by the National Science Foundation
(NSF) to SBC to fund a proposal entitled
\"\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\"submitted, or to be submitted, to NSF by
SBC on or about \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, 199\_\_.\
 

**1. Applicability of this Agreement.**

\(a\) This Agreement shall be applicable only to matters relating to the
STTR project referred to in the preamble above.

\(b\) If a funding agreement for an STTR project is awarded to an SBC
based upon the STTR proposal referred to in the preamble above, SBC will
promptly provide a copy of such funding agreement to RI, and SBC will
make a subaward to RI in accordance with the funding agreement, the
proposal, and this Agreement. If the terms of such funding agreement
appear to be inconsistent with the provisions of this Agreement, the
Parties will attempt in good faith to resolve any such inconsistencies.
However, if such resolution is not achieved within a reasonable period,
SBC shall not be obligated to award nor RI to accept the subaward. If a
subaward is made by SBC and accepted by RI, this Agreement shall not be
applicable to contradict the terms of such subaward or of the

funding agreement awarded by NSF to SBC except on the grounds of fraud,
misrepresentation, or mistake, but shall be considered to resolve
ambiguities in the terms of the subaward.

\(c\) The provisions of this Agreement shall apply to any and all
consultants, subcontractors, independent contractors, or other
individuals employed by SBC or RI for the purposes of this STTR
project.\
 

**2. Background Intellectual Property**.

\(a\) \"Background Intellectual Property\" means property and the legal
right therein of either or both parties developed before or independent
of this Agreement including inventions, patent applications, patents,
copyrights, trademarks, mask works, trade secrets and any information
embodying proprietary data such as technical data and computer software.

\(b\) This Agreement shall not be construed as implying that either
party hereto shall have the right to use Background Intellectual
Property of the other in connection with this STTR project except as
otherwise provided hereunder.

\(1\) The following Background Intellectual Property of SBC may be used
nonexclusively and, except as noted, without compensation by RI in
connection with research or development activities for this STTR project
(if \"none\" so
state):\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_;

\(2\) The following Background Intellectual Property of RI may be used
nonexclusively and, except as noted, without compensation by SBC in
connection with research or development activities for this STTR project
(if \"none\" so state):
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_;

\(3\) The following Background Intellectual Property of RI may be used
by SBC nonexclusively in connection with commercialization of the
results of this STTR project, to the extent that such use is reasonably
necessary for practical, efficient and competitive commercialization of
such results but not for commercialization independent of the
commercialization of such results upon the condition that SBC pay to RI,
in addition to any other royalty including any royalty specified in the
following list, a royalty of \_\_% of net sales or leases made by or
under the authority of SBC of any product or servicethat embodies, or
the manufacture or normal use of which entails the use of, all or any
part of such Background Intellectual Property (if \"none\" so state):
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.\
 

**3. Project Intellectual Property.**

\(a\) \"Project Intellectual Property\" means the legal rights relating
to inventions (including Subject Inventions as defined in 37 CFR &sect;
401), patent applications, patents, copyrights, trademarks, mask works,
trade secrets and any other legally protectable information, including
computer software, first made or generated during the performance of
this STTR Agreement.

\(b\) Except as otherwise provided herein, ownership of Project
Intellectual Property shall vest in the party whose personnel conceived
the subject matter or first actually reduced the subject matter to
practice, and such party may perfect legal protection therein in its own
name and at its own expense. Jointly made or generated Project
Intellectual Property shall be jointly owned by the Parties unless
otherwise agreed in writing. The SBC shall have the first option to
perfect the rights in jointly made or generated Project Intellectual
Property unless otherwise agreed in writing.

\(1\) The ownership, including rights to any revenues and profits,
resulting from any product, process, or other innovation or invention
based on the cooperative shall be allocated between the SBC and the RI
as follows:\
 

SBC Percent: \_\_\_\_\_\_\_\_ RI Percent:\_\_\_\_\_\_\_\_\_\_

\(2\) Expenses and other liabilities associated with the development and
marketing of any product, process, or other innovation or invention
shall be allocated as follows: the SBC will be responsible for \_\_\_
percent and the RI will be responsible for \_\_\_ percent.

\(c\) The Parties agree to disclose to each other, in writing, each and
every Subject Invention, which may be patentable or otherwise
protectable under the United States patent laws in Title 35, United
States Code. The Parties acknowledge that they will disclose Subject
Inventions to each other and the awarding agency within \_\_\_\_\_\_
months after their respective inventor(s) first disclose the invention
in writing to the person(s) responsible for patent matters of the
disclosing Party. All written disclosures of such inventions shall
contain sufficient detail of the invention, identification of any
statutory bars, and shall be marked confidential, in accordance with 35
U.S.C. &sect;205.

\(d\) Each party hereto may use Project Intellectual Property of the
other nonexclusively and without compensation in connection with
research or development activities for this STTR project, including
inclusion in STTR project reports to the NSF and proposals to the NSF
for continued funding of this STTR project through additional phases.

\(e\) In addition to the Government\'s rights under the Patent Rights
clause of 37 CFR &sect; 401.14, the Parties agree that the Government
shall have an irrevocable, royalty free, nonexclusive license for any
governmental purpose in any Project Intellectual Property.

\(f\) SBC will have an option to commercialize the Project Intellectual
Property of RI, subject to any rights of the Government therein, as
follows\--

1\) Where Project Intellectual Property of RI is a potentially
patentable invention, SBC will have an exclusive option for a license to
such invention, for an initial option period of \_\_ months after such
invention has been reported to SBC. SBC may, at its election and subject
to the patent expense reimbursement provisions of this section, extend
such option for an additional \_\_ months by giving written notice of
such election to RI prior to the expiration of the initial option
period. During the period of such option following notice by SBC of
election to extend, RI will pursue and maintain any patent protection
for the invention requested in writing by SBC and, except with the
written consent of SBC or upon the failure of SBC to reimburse patenting
expenses as required under this section, will not voluntarily
discontinue the pursuit and maintenance of any United States patent
protection for the invention initiated by RI or of any patent protection
requested by SBC. For any invention for which SBC gives notice of its
election to extend the option, SBC will, within \_\_\_ days after
invoice, reimburse RI for the expenses incurred by RI prior to
expiration or termination of the option period in pursuing and
maintaining (i) any United States patent protection initiated by RI and
(ii) any patent protection requested by SBC. SBC may terminate such
option at will by giving written notice to RI, in which case further
accrual of reimbursable patenting expenses hereunder, other than prior
commitments not practically revocable, will cease upon RI\'s receipt of
such notice. At any time prior to the expiration or termination of an
option, SBC may exercise such option by giving written notice to RI,
whereupon the parties will promptly and in good faith enter into
negotiations for a license under RI\'s patent rights in the invention
for SBC to make, use and/or sell products and/or services that embody,
or the development, manufacture and/or use of which involves employment
of, the invention. The terms of such license will include: (i) payment
of reasonable royalties to RI on sales of products or services which
embody, or the development, manufacture or use of which involves
employment of, the invention; (ii) reimbursement by SBC of expenses
incurred by RI in seeking and maintaining patent protection for the
invention in countries covered by the license (which reimbursement, as
well as any such patent expenses incurred directly by SBC with RI\'s
authorization, insofar as deriving from RI\'s interest in such
invention, may be offset in full against up to of accrued royalties in
excess of any minimum royalties due RI); and, in the case of an
exclusive license, (iii) reasonable commercialization milestones and/or
minimum royalties.

\(2\) Where Project Intellectual Property of RI is other than a
potentially patentable invention, SBC will have an exclusive option for
a license, for an option period extending until months following
completion of RI\'s performance of that phase of this STTR project in
which such Project Intellectual Property of RI was developed by RI. SBC
may exercise such option by giving written notice to RI, whereupon the
parties will promptly and in good faith enter into negotiations for a
license under RI\'s interest in the subject matter for SBC to make, use
and/or sell products or services which embody, or the development,
manufacture and/or use of which involve employment of, such Project
Intellectual Property of RI. The terms of such license will include: (i)
payment of reasonable royalties to RI on sales of products or services
that embody, or the development, manufacture or use of which involves
employment of, the Project Intellectual Property of RI and, in the case
of an exclusive license, (ii) reasonable commercialization milestones
and/or minimum royalties.

\(3\) Where more than one royalty might otherwise be due in respect of
any unit of product or service under a license pursuant to this
Agreement, the parties shall in good faith negotiate to ameliorate any
effect thereof that would threaten the commercial viability of the
affected products or services by providing in such license(s) for a
reasonable discount or cap on total royalties due in respect of any such
unit.

**4. Follow-on Research or Development.**

All follow-on work, including any licenses, contracts, subcontracts,
sublicenses or arrangements of any type, shall contain appropriate
provisions to implement the Project Intellectual Property rights
provisions of this agreement and insure that the Parties and the
Government obtain and retain such rights granted herein in all future
resulting research, development, or commercialization work.

**5. Confidentiality/Publication.**

\(a\) Background Intellectual Property and Project Intellectual Property
of a party, as well as other proprietary or confidential information of
a party, disclosed by that party to the other in connection with this
STTR project shall be received and held in confidence by the receiving
party and, except with the consent of the disclosing party or as
permitted under this Agreement, neither used by the receiving party nor
disclosed by the receiving party to others, provided that the receiving
party has notice that such information is regarded by the disclosing
party as proprietary or confidential. However, these confidentiality
obligations shall not apply to use or disclosure by the receiving party
after such information is or becomes known to the public without breach
of this provision or is or becomes known to the receiving party from a
source reasonably believed to be independent of the disclosing party or
is developed by or for the receiving party independently of its
disclosure by the disclosing party.

\(b\) Subject to the terms of paragraph (a) above, either party may
publish its results from this STTR project. However, the publishing
party will negotiate the right of refusal with the other party with
respect to a proposed publication, as well as a day period in which to
review proposed publications and submit comments, which will be given
full consideration before publication. Furthermore, upon request of the
reviewing party, publication will be deferred for up to additional days
for preparation and filing of a patent application which the reviewing
party has the right to file or to have filed at its request by the
publishing party.

**6. Liability.**

\(a\) Each party disclaims all warranties running to the other or
through the other to third parties, whether express or implied,
including without limitation warranties of merchantability, fitness for
a particular purpose, and freedom from infringement, as to any
information, result, design, prototype, product or process deriving
directly or indirectly and in whole or part from such party in
connection with this STTR project.

\(b\) SBC will indemnify and hold harmless RI with regard to any claims
arising in connection with commercialization of the results of this STTR
project by or under the authority of SBC. The PARTIES will indemnify and
hold harmless the Government with

regard to any claims arising in connection with commercialization of the
results of this STTR project.

**7. Termination.**

\(a\) This agreement may be terminated by either Party upon \_\_\_ days
written notice to the other Party. This agreement may also be terminated
by either Party in the event of the failure of the other Party to comply
with the terms of this agreement.

\(b\) In the event of termination by either Party, each Party shall be
responsible for its share of the costs incurred through the effective
date of termination, as well as its share of the costs incurred after
the effective date of termination, and which are related to the
termination. The confidentiality, use, and/or non-disclosure obligations
of this agreement shall survive any termination of this agreement.

**AGREED TO AND ACCEPTED**\--

Small Business Concern

By:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_Date:
\_\_\_\_\_\_\_\_\_\_\_\_\_

Print name:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Title:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Research Institution

By:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
Date: \_\_\_\_\_\_\_\_\_\_\_\_

Print name:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Title:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\
 

**9.8 Check List.** The STTR proposal check list included in this
Solicitation is provided to assist the proposer in completing a
responsive proposal. It should not be submitted with the proposal.
[SBIR/STTR Phase I Checklist](../Chklists.htm#PI) or [SBIR/STTR Phase II
Checklist](../Chklists.htm#PII).\
 

 

**CHAPTER 10.0 Proposal Preparation Instructions and Requirements for
SBIR Phase II Proposals**

 

**NOTE - ALL PHASE II PROPOSALS MUST BE SUBMITTED THROUGH FASTLANE.**

**10.1 Phase II Proposals.** The objective of Phase II is to continue
the R/R&D effort from Phase I. Only NSF Phase I awardees may compete for
NSF Phase II projects. The SBIR Phase II proposals have fixed dates,
reference the [Table of Deadlines (Section 6.3](../Chapt-6.htm#6.3)).\
 

**10.2 Phase II Proposal Contents.** In general, Phase II proposals
follow the format of Phase I proposals (reference [Chapter
3.0](../Chapt-3.htm)). The Phase II proposal is limited to a total of 35
consecutively numbered pages (single- or doubled-spaced). Phase II
proposals shall be addressed in the following \"Part\" order listed.\
 

**Part 1: Phase II Proposal Cover and Certification. (**[Attachment
F](../Attach/Attach-F.htm)**)** Reference [Chapter 3.0, section
3.4.1](../Chapt-3.htm#3.4). The performance period for Phase II cannot
exceed 24 months. The Phase I award number shall be included on the
cover page.\
 

**Part 2: Project Summary. (Attachment C)** Reference [Chapter 3.0,
section 3.4.2](../Chapt-3.htm#3.4). The summary should begin as follows:
**\"This Small Business Innovation Research Phase II project\...\"**\
 

**Information about Principal Investigator/Project Directors (NSF Form
1225). (**[Attachment A](../Attach/Attach-A.htm)**)** Reference [Chapter
3.0, Section 3.4.3](../Chapt-3.htm#3.4).\
 

**Part 3. Table of Contents.**\
 

**Part 4. Results of the Phase I Project.** Briefly describe how Phase I
has proven the feasibility of the innovation, provided a rationale for
both NSF and commercial applications, and demonstrated the ability of
the proposer to conduct R/R&D.\
 

**Part 5. Phase II Technical Objectives, Approach, and Work Plan.**
Define the specific technical objectives of the Phase II research and
technical approach to meet these objectives; and provide a work plan
defining specific tasks, performance schedules, milestones, and
deliverables.\
 

**Part 6. Company Information.** Significant consideration is placed on
a company\'s current technical and administrative posture and plans for
future growth. As part of this section you are required to state the
number of employees and the distribution into the following categories:

-   Technical

-   Administrative (including legal)

-   Management

-   Manufacturing (including sales)

Indicate number of full time and part time employees.

For young or newly formed companies please address future staffing
plans.

Please state company\'s financial record for the past year specifying
income for each of the following areas:

-   Sales

-   Licensing

-   Contracts and Consulting

-   Other

**Part 7. Management Team.** Identify the key personnel for the project,
confirm their specific availability for Phase II, and discuss their
qualifications in terms of education, work experience, and
accomplishments that are relevant to the project. For any PI who is an
employee of an academic or non-profit organization, provide a release
statement as described in [Chapter 1.0, Section
1.4.4](../Chapt-1.htm#1.4) of this solicitation. Also reference [Section
3.5, Part 6](../Chapt-3.htm#3.5, P6).\
 

**Part 8. Facilities and Equipment.** Discuss requirements for and the
availability of equipment, instrumentation, and facilities required for
Phase II. If a proposer proposes the use of unique or one-of-a-kind
Government facilities, a statement, describing the uniqueness of the
facility and its availability to the proposer at specified times, signed
by the appropriate Government Official must be included with the
proposal.\
 

**Part 9. Consultant and Subaward Agreements.** The proposing firm must
perform a minimum of one-half of the research and/or analytical effort
as determined by budget expenditures during Phase II. For further
clarification reference [Chapter 3.0, section 3.5, Part
7](../Chapt-3.htm#3.5, P7).\
 

**Part 10. Equivalent or Overlapping Proposals to other Federal
Agency.** Reference [Chapter 3.0, Section 3.5, Part
9](../Chapt-3.htm#3.5, P9).\
 

**Part 11. Current and Pending Support of Principal Investigator and
Senior Personnel.** Reference [Chapter, 3.0, Section 3.5, Part
10](../Chapt-3.htm#3.5, P10).\
 

**Part 12. Summary Proposal Budget.** ([Attachment
D](../Attach/Attach-D.htm)) The NSF Summary Proposal Budget page must be
used for Phase II proposals and it must show information for the total
project. Read the second page of the budget form. Also, provide the
required explanation of budget items. The proposed costs indicated on
the proposal budget should be consistent with the scope of the research
effort and must be based on accurate, complete, and current cost or
pricing data. SBIR Phase II awards are typically up to \$400,000 and for
up to 24 months. Reference [Chapter 3.0, section 3.5, Part
11](../Chapt-3.htm#3.5, P11) for more information regarding proposal
budget preparation. Some key components to pay close attention to when
preparing the SBIR/STTR Phase II budget are as follows:\
 

**1. Salaries and Wages.** Research effort is to be estimated in
calendar person-months.\
 

**2. Principal Investigator.** The commitment of the PI must be for at
least 2 months per year. Enter the estimated number of NSF-funded
person-months (not in hours) in the column headed by \"CAL\".\
 

**3. Key Personnel.** Enter the estimated number of NSF-funded
person-months (not in hours) in the column headed by \"CAL\".

**4. Permanent Equipment.** Reference [Chapter 2.0, Section
2.9](../Chapt-2.htm#2.9)[.]{.underline} Individual items must be
justified in terms of their specific importance to the proposed
research. List permanent equipment on line D of the budget form.
Requests should not be made for routine equipment which a business in
the field should be expected to have available.\
 

**5. Consultants.** Reference [Chapter 2.0, Section
2.2](../Chapt-2.htm#2.2). The proposal must include a signed statement
from each consultant confirming availability and commitment, research
role in the project, and agreed consulting rate. The number of days on
the project may be specified in the consultant\'s statement or by
referencing the proposal. Costs proposed for a consultant\'s services,
excluding expenses, may not exceed the NSF maximum daily rate, which is
currently \$453 per day.\
 

**6. Subawards (a.k.a. subcontracts).** Reference [Chapter 2.0, Section
2.18](../Chapt-2.htm#2.1). For each subaward, a Summary Proposal Budget
form ([Attachment D](../Attach/Attach-D.htm)) is required. Provide
details of subaward costs by cost category. An authorized subawardee
company representative must sign the subaward budget form. The total
amount of subawards should be shown on Line G.5 on the budget for the
overall project. **NOTE:** a minimum of one-half of the research and/or
analytical effort must be performed by the proposing small business
concern.\
 

Purchases of routine analytical or other routine services from
commercial sources are not regarded as reportable subcontract activity.
No letter is required for such activity. Routine analytical or other
routine services should be reported on the proposal budget under \"Other
Direct Costs/Other\" (item G.6) and describe on the budget explanation
page.

**7. Indirect Costs.** Indirect costs may be requested. The amount
proposed should be based on the application of substantiated indirect
cost rates (see [Chapter 5.0](../Chapt-5.htm)).\
 

**NOTE: PARTS 13-15 DOES NOT COUNT TOWARD THE PAGE COUNT.**

 

**Part 13. Payment Schedule and Project Milestone Chart. This section
does not count towards the page limit.** A payment schedule and project
milestone chart are required components for all Phase II proposals.\
 

Based on the expected utilization of resources and expenditures of
funds, if the standard payment schedule as described in the SBIR Phase
II Grant General Conditions, Article 6,
(<http://www.nsf.gov/cgi-bin/getpub?sbirii>) is not appropriate, you
must provide a list of the number of payments, the percentage amount of
each payment, and a brief justification for the departure from the
standard schedule (see [Chapter 5.0](../Chapt-5.htm)). This request must
be reviewed and approved by NSF.\
 

The milestone (Gantt type) chart must show the duration and timing of
major component tasks that are required to implement your research plan.
Milestone (\^) markings indicating the initiation and completion of
tasks should appear clearly in the 24-month time line and in relation to
other tasks.\
 

In an attachment to the chart, briefly define each task in terms of how
it contributes to the research plan, and describe each milestone event
in terms of a concrete accomplishment that marks significant technical
progress towards your proposed research objectives.\
 

A sample of a Phase II Proposal milestone chart is shown below for
purposes of illustration:

**Task 1 \^\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\^ Task Name**

**Task 2
\^\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\^Task
Name**

**Task 3 \^\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\^Task Name**

**Task 4 \^\_\_\_\_\_\_\_\_\_\_\_\_\_\^Task Name**

**[Months Effort:]{.underline} 6 12 18 24 [Cumulative]{.underline}**

**(List by Name:)**

**Key Personnel \_\_\_\_\_\_\_ \_\_\_\_\_\_\_ \_\_\_\_\_\_\_
\_\_\_\_\_\_\_ \_\_\_\_\_\_\_**

**Consultant(s) \_\_\_\_\_\_\_ \_\_\_\_\_\_\_ \_\_\_\_\_\_\_
\_\_\_\_\_\_\_ \_\_\_\_\_\_\_**

**Subcontract(s) \_\_\_\_\_\_\_ \_\_\_\_\_\_\_ \_\_\_\_\_\_\_
\_\_\_\_\_\_\_ \_\_\_\_\_\_\_**

**[Estimated]{.underline}**

**[Expenditures]{.underline}**

**(List by Name)**

**Key Personnel \_\_\_\_\_\_\_ \_\_\_\_\_\_\_ \_\_\_\_\_\_\_
\_\_\_\_\_\_\_ \_\_\_\_\_\_\_**

**Consultant(s) \_\_\_\_\_\_\_ \_\_\_\_\_\_\_ \_\_\_\_\_\_\_
\_\_\_\_\_\_\_ \_\_\_\_\_\_\_**

**Subcontract(s) \_\_\_\_\_\_\_ \_\_\_\_\_\_\_ \_\_\_\_\_\_\_
\_\_\_\_\_\_\_ \_\_\_\_\_\_\_**

**Perm. Equip. \_\_\_\_\_\_\_ \_\_\_\_\_\_\_ \_\_\_\_\_\_\_
\_\_\_\_\_\_\_ \_\_\_\_\_\_\_\_**

**Other \_\_\_\_\_\_\_ \_\_\_\_\_\_\_ \_\_\_\_\_\_\_ \_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_**

**Total \_\_\_\_\_\_\_ \_\_\_\_\_\_\_ \_\_\_\_\_\_\_ \_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_**

Narrative: Attach brief description of each task; Other includes
indirect costs, materials, travel, etc. \*Note, payments are tied to
technical progress; see Section 5.3.2 Payment Schedules, Phase II
Payment.

**Semi-Annual Key Resource Expenditures.** For each 6-month period,
enter certain key resource expenditures charged against the grant
milestones. These resources are defined as follows:

-   Levels of effort (in person-months) by the PI and/or key personnel
    during a 6-month period.

-   Levels of effort by Consultants and/or Subawardees during a 6-month
    period.

-   Permanent equipment and/or major purchases of supplies during a
    6-month period.\
     

 

+-----------------------------------------------------------------------+
| IMPORTANT TO REMEMBER:                                                |
|                                                                       |
| 1\. When each progress report is made, fill in milestone chart to     |
| show actual expenditures; always include a brief description of each  |
| task. Make each successive chart cumulative.                          |
|                                                                       |
| 2\. By the end of the project, it will be possible to easily compare  |
| the full array of actual to expected expenditures.                    |
+-----------------------------------------------------------------------+

 

**Part 14. Commercialization Plan and Follow-On Funding Commitment(s).
This section does not count towards the page limit.** A
Commercialization Plan **must**, and potential Follow-on Funding
Commitment(s) **should**, be included in this section. The
Commercialization Plan should provide information that directly relates
to producing an innovative product, process, or device and getting it
into commercial production and sales; such a plan is often useful in
obtaining Phase II or Phase III follow-on funding commitments. Note:
Comprehensive business plans (that are company rather than
project-oriented) are not desired by NSF.\
 \
The Commercialization Plan should describe plans for commercialization
in terms of each of the following areas:\
 \
**1. Company -** Brief description of your company including its
principal field(s) of interest, present size (annual sales level and
number of employees), and any current products that have had significant
sales.\
 \
**2. SBIR Project -** A concise lay person\'s description of the
proposed project and its key technology objectives.\
 \
**3. Commercial Applications -** Potential commercial applications of
the research results specifying customers and the specific needs which
will be satisfied by the technology, particularly those applications
with the greatest near term potential.\
 \
**4. Patent Status -** Do you have or intend to file for one or more
patents as a result of the SBIR project?\
 \
**5. Innovation -** What is particularly innovative about the
anticipated technology or products? (Innovation may be expressed in
terms of applications, performance, technique efficiencies, or
significantly reduced cost.)\
 \
**6. Competitive Advantages -** What significant advantages in
application, performance, technique, efficiency, or costs, do you
anticipate your new technology will have over existing technology?\
 \
**7. Markets -** What are the anticipated specific markets for the
resulting technology, their estimated size, classes of customers, and
your estimated market share five years after the Phase II project is
completed and/or after the first sales?\
 \
**8. Competition -** Who are the major competitors in these markets,
present and/or anticipated?\
 \
**9. Production Plan -** Briefly describe how you plan to produce your
product. Do you intend to manufacture it yourself, subcontract the
manufacturing, enter into a joint venture or manufacturing agreement,
license the product, etc.? And when do you anticipate doing so? (With
high technology products, early market entrance is often critical to
success.)

**10. Non-Market Considerations -** Briefly describe the potential
societal, educational, and scientific benefits this project could
provide.\
 \
**11. Marketing Plan -** Briefly describe the approach and steps you
plan to take in commercializing the research results from the end of
Phase II to significant sales. Do you plan to market the product
yourself, through dealers, contract sales, marketing agreements, a joint
venture, sales representatives, foreign companies, etc.?\
 \
**12. Financing Plan -** Briefly describe your plan to raise money to
support your commercialization plan after Phase II.\
 

**Follow-on Funding Commitment(s).** At the end of the NSF SBIR Phase II
funding, the firm will almost always need non-federal funding and will
almost always be required to commercialize the results. In order to
demonstrate a prior commitment to commercialization, the small business
is encouraged to provide its own commitment or to obtain a commitment
for follow-on Phase III funding from a third party. SBIR grantees are
often able to interest potential partners in investing using their Phase
I results, the identification of the innovation, and the prospective
competitive advantage as shown in their Commercialization Plans.\
 \
If a partner commits funds [during]{.underline} the SBIR Phase II
period, these funds can be targeted to expand the scope of the research,
shorten the developmental cycle, conduct market research, formulate
business plans, obtain intellectual property protection, seek strategic
business partners, and follow other creative avenues as long as the
connection to SBIR Phase II is clearly maintained. To document this
support a separate **signed** budget detailing the planned expenditures
of the non-federal SBIR funds should be provided. No minimum amount is
stipulated to encourage this early risk sharing by non-federal partners.
See [Attachment H]{.underline}, Suggested Formats for Follow-On Funding
Commitments*,* for sample commitment letters.\
 \
The commitment agreement may be from any of a number of different
sources. These sources include:

-   the SBIR firm itself

-   private investors or \"angels\"

-   venture capital firms

-   investment companies

-   joint ventures

-   R&D limited partnerships

-   strategic alliances

-   research contracts

-   sales of prototypes

-   a recent public offering

-   state finance programs

-   large, medium, or small industrial firms

-   existing investors

-   multiple smaller investors

Phase III also may involve non SBIR-funded R&D or production commitments
with another Federal agency for potential products or processes intended
for use by the United States Government.\
 \
**If negotiations are underway, the small business concern and the
potential third party should provide evidence of their potential
collaboration.** A letter of describing the negotiations and the intent
to seek a final agreement for Follow-On Funding should be attached to
the Phase II proposal. A few clearly defined and measurable key
technical objectives should be stated in the commitment agreement
including indication of the threshold level that would justify private
investment, if those technical objectives were achieved in Phase II. The
objectives do not have to be the same as those stated in the proposal,
but they must be attainable within the scope of the proposed
Government-funded research.\
 \
The commitment agreement should set forth the specific amount of Phase
III funds that will be made available to the small firm and indicate the
dates the funds will be provided. The commitment may be contingent upon:
(1) the receipt of a Phase II award; (2) Phase II achieving a few stated
key technical objectives; (3) the resulting technology not being
bypassed in the marketplace during Phase II; and (4) the technology
appearing to be economically viable. If these objectives are met, the
commitment should become exercisable and the Phase III funding should
take place. The terms cannot be contingent upon the obtaining of a
patent due to the length of time this process requires. **If a
commitment is obtained from a foreign source, it must state that
production for the U.S. market will be carried out in the U.S.**\
 \
The commitment should be consistent with the terms outlined above,
[Chapter 4.0, Section 4.2.3](../Chapt-4.htm#4.2) discusses the
Evaluation of Follow-On Funding Commitment(s) and Commercialization
Plan.\
 \
**Non-Federal Phase III Funding Support.** As discussed in [Chapter 3.0,
Section, 3.5, Part 5](../Chapt-3.htm#3.5, P5), *Commercial Potential,*
NSF recommends starting early in seeking non-federal funding. Browsing
the World Wide Web (www) on the Internet could be one starting point.
The Small Business Administration (SBA) is an excellent resource; their
web address is:
[http://www.sbaonline.sba.gov](http://www.sbaonline.sba.gov/). The SBA
has an Internet service that matches entrepreneurs with \"angel\"
investors. The Internet address is:
[[https://ace-net.sr.unh.edu/]{.underline}](http://www.accelerate.uci.edu/)**.**

To acquire directories of venture capital companies, contact one or both
of the following associations:\
 \
National Venture Capital Association\
1655 N. Ft. Myer Drive,\
Arlington, VA 22209\
(703) 351-5269\
 \
National Association of Small\
#700 Business Investment Companies\
1199 No. Fairfax Street, Suite 200\
Alexandria, VA 22314\
(703) 683-1601

To obtain a list of large industrial companies that have indicated an
interest in SBIR companies in specific areas, you may contact:

Commercialization Matching System\
SBA-SBIR\
409 Third Street, S. W., 8th Floor\
Washington, DC 20416\
(202) 205-6450\
 \
Information on state agencies and programs that provide assistance to
SBIR companies is contained in the *BMDO SBIR Outreach Notebook,*
Ballistic Missile Defense Organization, (updated annually); it may be
obtained from BMDO by calling 1-800-937-3150. Some of the state economic
development organizations that can be contacted are as follows: The Ben
Franklin Partnership Program in Pennsylvania; Connecticut Innovations,
Inc.; the Massachusetts Technology Development Corporation; and the Utah
Technology Finance Corporation.

Commercialization assistance can often be obtained from many sources,
such as trade journals; conferences; consultants; venture capitalists;
patent lawyers; some Small Business Development Centers (SBDCs); some
Small Business Administration Service Core of Retired Executives (SBA
SCORE) personnel; the Kaufman Foundation; and the various MIT Enterprise
Forums.

**Part 15. Company Commercialization History.** Reference [Chapter 3.0,
Section 3.5, Part 12]{.underline}. If a company has never received a
SBIR/STTR Phase II award, under the heading state zero awards.\
 \
**10.3 Phase IIB Option** (Only applicable for SBIR Phase II grantees.)\
 \
The Phase IIB Option helps bridge the gap in funding between Phase II
and Phase III. The Phase IIB Option will provide additional funds to
Phase II grantees that obtain third party funds. The objective of the
Phase IIB Option is to extend the R&D efforts beyond a current grant to
meet the product/process/software requirements of a third party investor
and to also accelerate the Phase II project to the commercialization
stage. The Phase IIB Option extends the Phase II grant for only one year
and the combined Phase II and IIB will not typically exceed 3 years in
duration. Phase IIB proposals are due by February 1, 2000. A reminder
invitation letter will be sent during the last six months of the Phase
II grant.\
 \
Eligibility for Phase IIB is as follows:\
 \
1. Phase II grants in the second year of the grant.\
2. Funding from a third party investor.[^(1)^](#N_1_)\
 \
The third party investor must commit a minimum of \$100,000. NSF will
match up to 50% of funds received, not to exceed \$200,000. The
additional federal funds can only be used for advancing the
research-related elements of the project. The third party investor funds
can be used for research or other business related efforts in order to
accelerate the innovation to commercialization. Market research,
advertising patent applications and refining of the business plan are
good examples of uses for the third party investor funds.\
 \
A letter of commitment from the third party investor must specify the
amount of the investment and the method in which the investor will
provide the funding to the company. The third party funding can be cash,
liquid assets, tangible financial instruments but not in-kind or other
\"intangible assets\". A proposer may submit the original third party
follow-on funding commitments submitted along with the Phase II
proposal, provided new updated commitment letters were obtained.
Self-funding does not qualify for the Phase IIB option.\
 \
**Phase IIB Proposal Preparation**\
 \
A proposal no longer than 15 pages is required. Three copies must be
submitted. The proposal Package must contain:\
 

-   Cover Page ([Attachment I](../Attach/Attach-I.htm))

-   A brief description of the expanded R&D activity to be performed

-   An executive summary of the business plan

-   An updated milestone chart

-   A new budget, with explanation page. ([Attachment
    D](../Attach/Attach-D.htm))

-   A Certificate of Current Cost and Pricing Data ([Attachment
    G](../Attach/Attach-G.htm))

-   A signed third party commitment letter\
     \
    The Phase IIB proposal must have a new Phase II Cover Page. The
    additional work proposed should be an expansion of the technical
    work being performed in the Phase II projects and must fall within
    the scope of the present project. The milestone chart must be
    updated reflecting the additional year of effort. A new budget for
    the portion of the funds requested from NSF for the Phase IIB
    project must be on a NSF Form 1030A (Attachment D). A separate
    budget explanation page detailing each line item is required. All
    budget items must be allowable costs and a new certificate of cost
    or pricing data must also be completed (Attachment G). A letter of
    commitment to match Phase IIB SBIR funding, signed by the third
    party investor, is required.

 \
**Review**

All Phase IIB proposals will be reviewed in-house by a minimum of two
NSF Program Officers. Each proposal will be reviewed based on the review
criteria below.\
 \
**Criterion 1. What is the intellectual merit of the proposed
activity?**

Potential considerations: Will the completion of the proposed activity
lead to a solid foundation of the scientific and engineering knowledge
and understanding base? Has the firm progressed satisfactorily in the
Phase II activity to justify a Phase IIB activity? Is the proposed plan
a sound approach for establishing technical feasibility that could lead
to commercialization?\
 \
**Criterion 2. What are the broader impacts of the proposed activity?**

Potential considerations: Does the business plan summary in the proposed
activity show a clear path to commercial and societal benefits? Does the
proposed activity reflect changes to the Phase II commercialization plan
that further improves the chances of conversion of research in order to
provide societal benefits? What are the expectations of the third party
and how effective will the third party funded activity lead to
commercial and societal benefit? Evaluate the competitive advantage of
this technology vs. alternate technologies that can meet the market
needs.\
 \
**Award Recommendation**\
 \
A Phase IIB applicant will be notified within 60 days from receipt of
the Phase IIB proposal. If a proposal is recommended for award, the
company must submit proof of the bank transaction showing that the third
party has exercised its commitment.\
 \
**Payment and Release of Funding**\
 \
The Final payment on the original Phase II (the fifth payment in a
standard Phase II grant) will be made at the end of Phase IIB.
Therefore, there is no payment corresponding to the \"24th month\"
progress report for those selected for the Phase IIB option. NSF will
release the Phase IIB payment only upon receipt of a letter that the
entire amount of the funds from the outside investor has been
transferred to the company; this letter must be signed by both the
company and the third party investor. This letter must state that
\"\$\_\_\_\_\_\_\_\_in cash has been transferred to our company from the
third party investor in accord with the SBIR Phase IIB procedures.\" The
letter must be sent to the cognizant NSF SBIR Program Officer along with
a letter from the bank certifying that the funds have been transferred
to the company\'s account or a copy of the company\'s bank statement
showing the funds have been deposited. The deadline for receipt of the
letter is 30 days following notification of selection for award.\
 \
**Reporting Requirements**\
 \
In updating the milestone chart, the report due at the end of \"24th
month\" will be treated as a progress report using the standard progress
report format. The final reporting documents will now be required at the
end of Phase IIB. Upon completion of the Phase IIB, the company is
required to submit the normal Phase II completion documentation,
including initial Phase II as well as Phase IIB supplemental
activities:\
 \
1.) Combined Phase II and IIB Final Report\
2.) Commercialization Report inclusive of updated Business Plan\
3.) NSF Final Project Report (submitted electronically)\
 \
**Packaging of Phase IIB Proposals**\
All Phase IIB Proposals should be mailed to:\
 \
SBIR Phase IIB Program\
National Science Foundation\
4201 Wilson Blvd., Suite 550\
Arlington, VA 22230

[]{#N_1_ .anchor}\
^(1)\ The\ investor\ must\ be\ a\ third\ party\ investor,\ which\ may\ include\ such\ entities\ as\ another\ company,\ a\ venture\ capital\ firm,\ an\ individual\ \"angel\"\ investor,\ state\ or\ local\ government,\ or\ any\ combinations\ of\ the\ above.\ It\ does\ not\ include\ owners\ of\ the\ small\ business,\ their\ family\ members,\ and/or\ \"affiliates\"\ of\ the\ small\ business,\ as\ defined\ in\ Title\ 13\ of\ the\ Code\ of\ Federal\ Regulations\ (C.F.R.),\ Section\ 121.103.\ (Reference:\ <http://frwebgate1.access.gpo.gov/cgi-bin/test-get-cfr.cgi>)^

**NSF SMALL BUSINESS INNOVATION RESEARCH PROGRAM**

#### [SBIR/STTR PHASE I PROPOSAL CHECKLIST]{.underline}

**HAVE YOU DONE THE FOLLOWING REQUIRED STEPS?**

(Do not submit checklist with your proposal)

> All instructions and the description of the topic under which the
> application is being submitted in this 1999 SBIR Program Solicitation
> have been read.
>
> Proposal is 25 pages or less and conforms to page size and type
> requirements -- excluding from the page count only NSF FORM 1225
> (Attachment A), the CERTIFICATION PAGE (reverse side of Attachment B),
> and statements on PRIOR SBIR AWARDS.
>
> COVER PAGE is complete (Attachment B).
>
> CERTIFICATION PAGE is **signed** (reverse side of Attachment B).
>
> Project duration does not exceed 6 months.
>
> Proposal is submitted under **ONLY** one topic.
>
> PROJECT SUMMARY is complete (Attachment C).
>
> Principal Investigator is primarily employed by this firm at the time
> of the award -- if not, required documentation is included.
>
> If applicable, review special instructions for Principal Investigators
> with academic affiliations and for Principal Investigators who have or
> are seeking research support through an academic institution.
>
> Consultant and/or subaward documentation is completed and **signed.**
>
> Statement of current and pending support is included. If funding for
> the overlapping or equivalent work has been requested or received, the
> box on the cover sheet is checked off and proposal includes a
> statement discussing the status of the funding request.
>
> A minimum of two-thirds of the research effort will be performed by
> the proposing firm (that is, budget for consultants and/or subawards
> does not exceed one-third of the total budget) (Attachment D).
>
> If the equipment, instrumentation, computers, and facilities are not
> the property (owned or leased) of the proposing firm, required
> documentation confirming its availability for use on this project is
> included.
>
> Proposal and PROJECT SUMMARY describe commercial potential (Attachment
> C).
>
> Proposal Budget (NSF 1030 A (Attachment D)) has been completed and
> **signed** and is for \$100,000 or less; fee is for 7% or less of the
> total direct and indirect costs of the project; Principal Investigator
> has committed at least one person-month to the proposed effort; budget
> excludes foreign travel and permanent equipment purchases; and budget
> explanation page details each line item on the budget.
>
> Proprietary information is limited and is clearly identified in the
> text or placed on a separate page. (Cover Page box is checked alerting
> NSF of proprietary information.)
>
> An original and 9 copies of the proposal are submitted.
>
> Deadline for receipt of proposal at the NSF is 5:00 p.m. East Coast
> Time, **June 9,1999.**

**NSF SMALL BUSINESS INNOVATION RESEARCH PROGRAM**

#### [SBIR/STTR PHASE II PROPOSAL CHECKLIST]{.underline}

**HAVE YOU DONE THE FOLLOWING REQUIRED STEPS?**

(Do not submit checklist with your proposal)

> Proposal is 35 pages or less and conforms to page size and type
> requirements -- excluding from the page count only NSF FORM 1225
> (Attachment A), the CERTIFICATION PAGE (reverse side of Attachment B),
> and Parts 13-15.
>
> COVER PAGE is complete (Attachment F).
>
> CERTIFICATION PAGE is **signed** (reverse side of Attachment F).
>
> Project duration does not exceed 24 months.
>
> PROJECT SUMMARY is complete (Attachment C).
>
> Principal Investigator remains in the primary employment of this firm
> and is the same individual as the Principal Investigator for Phase I.
>
> Consultant and/or subaward documentation is completed and **signed.**
>
> Statement of current and pending support is included. If funding for
> the overlapping or equivalent work has been requested or received, the
> box on the cover sheet is checked off and proposal includes a
> statement discussing the status of the funding request.
>
> A minimum of one-half of the research effort will be performed by the
> proposing firm (that is, budget for consultants and/or subawards does
> not exceed one-half of the total budget).
>
> If the equipment, instrumentation, computers, and facilities are not
> the property (owned or leased) of the proposing firm, required
> documentation confirming its availability for use on this project is
> included.
>
> Proposal and PROJECT SUMMARY describe commercial potential.
>
> Proposal Budget (NSF 1030 A (Attachment D)) has been completed and
> **signed,** and is for \$450,000 or less; fee is for 7% or less of the
> total direct and indirect costs of the project; Principal Investigator
> has committed at least two person-months per year to the proposed
> effort and budget explanation page details each line item on the
> budget.
>
> Proprietary information is limited and is clearly identified in the
> text or placed on a separate page (Cover Page box is checked alerting
> NSF of proprietary information).
>
> An original and 9 copies of the proposal are submitted which include
> Attachment 1, 2, and 3.
>
> Deadline for receipt of proposal at the NSF is 5:00 p.m. East Coast
> Time, **July 15, 1999 or January 12, 2000**

NSF 99-XX

(Replaces NSF 98-54 and 98-153)

OMB#3145-0058

PT: 34

KW: 0901043; 1003008; 1009000; 1014001; 0605000; 1013018

[^1]: ^\*^ Only SBIR/STTR Phase I proposals with project completion
    dates of June 30, 1999 or before.