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[Federal Register Volume 66, Number 97 (Friday, May 18, 2001)]
[Notices]
[Pages 27721-27738]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-12583]

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SMALL BUSINESS ADMINISTRATION

RIN 3245-AE72

Small Business Innovation Research Program Policy Directive

AGENCY: Small Business Administration.

ACTION: Notice of proposed policy directive.

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SUMMARY: This document proposes revisions to the Small Business 
Innovation Research (SBIR) Program Policy Directive. This revised 
proposed policy directive reflects recently enacted statutory 
requirements. It is proposed to provide guidance to participating 
Federal agencies for the general conduct of the SBIR Program.

DATES: Public comments on this proposed policy directive should be 
received on or before June 18, 2001.

ADDRESSES: Address all comments concerning this proposed revision to 
Maurice Swinton, Assistant Administrator for Technology, Office of 
Technology, Office of Policy, Planning, and Liaison, Office of 
Government Contracting/Business Development, U.S. Small Business 
Administration, 409 3rd Street, SW, Washington, DC 20416 or via email 
to [email protected].

[[Page 27722]]

FOR FURTHER INFORMATION CONTACT: Maurice Swinton, Office of Technology; 
Office of Policy, Planning, and Liaison; Office of Government 
Contracting/Business Development, at (202) 205-6450. You may also e-
mail [email protected].

SUPPLEMENTARY INFORMATION: In 1982, Congress enacted the Small Business 
Innovation Development Act of 1982 (SBIDA), Public Law 97-219 (codified 
at 15 U.S.C. 638), which established the Small Business Innovation 
Research Program (SBIR Program). SBIDA requires the SBA to ``issue 
policy directives for the general conduct of the SBIR programs within 
the Federal Government.'' 15 U.S.C. 638(j)(1). The U.S. Small Business 
Administration (SBA) published its first policy directive, Policy 
Directive No. 65-01, 19 years ago (47 FR 52966, Nov. 24, 1982). The 
last SBIR Policy Directive amendments were published 8 years ago (58 FR 
6144-6158, Jan. 26, 1993).
    The statutory purpose of the SBIR Program is to strengthen the role 
of innovative small business concerns (SBCs) in Federally-funded 
research and research and development (R/R&D). Specific program 
purposes are to: (1) Stimulate technological innovation; (2) use small 
business to meet Federal R/R&D needs; (3) foster and encourage 
participation by socially and economically disadvantaged SBCs, and by 
SBCs that are 51 percent owned and controlled by women, in 
technological innovation; and (4) increase private sector 
commercialization of innovations derived from Federal R/R&D. The SBIR 
Program is a phased process, uniform throughout the Federal Government, 
of soliciting proposals and awarding funding agreements for R/R&D to 
meet stated agency needs or missions. To stimulate and foster 
scientific and technological innovation, including increasing 
commercialization of Federal R/R&D, the program must follow a uniform 
competitive process of three phases: Phase I, Phase II, and Phase III.
    Recently, Congress enacted the Small Business Innovation Research 
Program Reauthorization Act of 2000 (Reauthorization Act), Public Law 
106-554 (Dec. 21, 2000). The Reauthorization Act extends the SBIR 
Program through September 30, 2008. In addition, the Reauthorization 
Act: (1) Clarifies SBIR data rights pertaining to SBIR Phase I and II 
awards and awards issued pursuant to Phase III (Proposed Policy 
Directive, section 8(b) and App. I, Instructions, Sec. 5(d)(1)(iii)); 
(2) requires the establishment of SBIR Program Government-accessible 
and a public-accessible database (Proposed Policy Directive, section 
11(e)); (3) requires each application for a Phase II award contain a 
succinct commercialization plan (Proposed Policy Directive, section 
6(b)); (4) requires agencies to report to SBA all instances in which 
the agency fails to issue a Phase III or follow-on funding agreement 
(Proposed Policy Directive, section 4(c)(7-8)); (5) clarifies when a 
Phase III award can be issued (Proposed Policy Directive, section 
4(c)); (6) requires agencies with extramural budgets over $50,000,000 
to enter into an agreement with the National Academy of Sciences for 
the National Research Council to conduct a review of their SBIR Program 
(Proposed Policy Directive, section 2(a)(1)(iv)); (7) requires agencies 
to report to SBA annually on the calculations of the agency's 
extramural budget within 4 months of enactment of the agency's annual 
Appropriations Act (Proposed Policy Directive, sections 2(a)(1)(v) and 
9(a)(1)); (8) establishes the Federal and State Technology (FAST) 
Partnership Program to strengthen the technological competitiveness of 
small business concerns (SBCs) in the United States (Proposed Policy 
Directive, Sec. 12(a)); (9) and extends the Rural Outreach Program 
through September 30, 2005, (Proposed Policy Directive, section 12(b)). 
SBA welcomes comment on our proposed provisions to implement these new 
statutory requirements. In addition, we request comment on section 
11(e)(3)(iii) of the Proposed Policy Directive, implementing the new 
statute requiring information provided to the SBIR databases to be 
privileged, confidential, and not subject to the Freedom of Information 
Act, codified at 15 USC 638(k)(4).
    The Reauthorization Act directs SBA to modify its policy directive 
to address these amendments within 120 days after the date of enactment 
of the Reauthorization Act. In addition to addressing these recent 
amendments to the SBIR Program, SBA proposes changes in this policy 
directive to simplify and enhance the program. The proposed policy 
directive is organized into 12 self-explanatory sections: (1) Purpose; 
(2) Summary of Legislative Provisions; (3) Definitions; (4) 
Competitively Phased Structure of the Program; (5) Program Solicitation 
Process; (6) Eligibility and Application (Proposal) Requirements; (7) 
SBIR Funding Process; (8) Terms of Agreement Under SBIR Awards; (9) 
Responsibilities of SBIR Participating Agencies and Departments; (10) 
Annual Report to SBA; (11) Responsibilities of SBA; and (12) FAST 
Partnership Program and Rural Outreach Program. Two appendices are also 
included: (1) Instructions for SBIR Program Solicitation Preparation; 
and (2) Tech-Net Data Fields for Public Database.
    Furthermore, this proposed policy directive will provide more 
flexibility to the agencies participating in the SBIR Program to 
continue vital research for meritorious proposals that could 
potentially go unfunded due to a lack of resources available under SBIR 
Program or Small Business Technology Transfer (STTR) Program budgets. 
STTR is a separate program from SBIR in which Federal agencies with 
extramural budgets for R/R&D in excess of $1 billion per fiscal year 
make funding agreements with SBC's joint venturing with a research 
institution, non-profit organization, or Federally Funded Research and 
Development Center (FFRDC). SBA proposes a new policy at section 4(b) 
that would allow participating Federal agencies to fund Phase II awards 
under their SBIR or STTR Programs, which had its origin in either 
program. Agencies must continue to meet the statutory expenditure of 
the extramural budget of 2.5 percent for the SBIR program and .15 
percent for the STTR program. Any award that is funded through this 
process will then be deemed an award of the program which provides the 
Phase II funding. The awardee must meet the eligibility requirements 
for the program under which the Phase II award is funded. For example, 
if a Phase I STTR award is changed to a Phase II SBIR award, the 
collaborative partner for the Phase I STTR award could then be 
converted from a joint venture to a subcontractor. Conversely, if a 
Phase I SBIR award is changed to a Phase II STTR award, the small 
business concern must then partner with a research institution, Federal 
laboratory or non-profit organization.
    In developing this proposed policy directive, SBA has considered 
initial comments from all agencies required to have SBIR programs. All 
of these comments received by SBA were individually reviewed and 
considered. SBA welcomes public comments upon this proposed policy 
directive and will revise the policy directive as necessary to improve 
the general conduct of the SBIR Program based upon comments received.

[[Page 27723]]

Notice of Proposed Policy Directive; Small Business Innovation Research 
Program
To: The Small Business Innovation Research Program Directors
Subject: Small Business Innovation Research Program Reauthorization Act 
of 2000--Amendments to the Small Business Innovation Research (SBIR) 
Program
    1. Purpose. Section 9(j)(3) of the Small Business Act 15 U.S.C. 
638(j)(3) requires the U.S. Small Business Administration (SBA) 
Administrator to modify the Small Business Innovation Research (SBIR) 
Program Policy Directive for the general conduct of the SBIR Program 
within the Federal Government.
    2. Authority. This proposed policy directive is issued under the 
authority of 15 U.S.C. 638(j).
    3. Procurement Regulations. The Federal Acquisition Regulations may 
need to be modified to conform to the requirements of the 
Reauthorization Act and a final policy directive. Regulatory provisions 
that pertain to the areas of SBA responsibility will require approval 
of the SBA Administrator or designee. The Office of Technology, Office 
of Policy, Planning, and Liaison, Office of Government Contracting/
Business Development, SBA, is the appropriate office for coordinating 
such regulatory provisions.
    4. Personnel Concerned. All Federal Government personnel who are 
involved in the administration of the program, including those involved 
with the issuance and management of funding agreements of the SBIR 
Program and the establishment of goals for small business concerns 
(SBCs) in research or research and development procurements or grants.
    5. Distribution. Federal Government agencies and departments 
participating in the SBIR Program and those required to establish small 
business research and development goals as directed by section 9 of the 
Small Business Act 15 U.S.C. 638(j).
    6. Originator. Office of Technology, Office of Policy, Planning, 
and Liaison, Office of Government Contracting/Business Development, 
SBA.
    7. Dates. The SBIR Program is authorized through September 30, 
2008. A final Policy Directive will be effective when published in the 
Federal Register. Authorized By:

William A. Fisher,
Deputy Associate Deputy Administrator, Government Contracting/Business 
Development, U.S. Small Business Administration.
John Whitmore,
Acting Administrator, Small Business Administration.

Small Business Innovation Research (SBIR) Program, Proposed Policy 
Directive

Contents

Section
1. Purpose
2. Summary of Legislative Provisions
3. Definitions
4. Competitively Phased Structure of the Program
5. Program Solicitation Process
6. Eligibility and Application (Proposal) Requirements
7. SBIR Funding Process
8. Terms of Agreement Under SBIR Awards
9. Responsibilities of SBIR Participating Agencies and Departments
10. Annual Report to the Small Business Administration (SBA)
11. Responsibilities of the SBA
12. Federal and State Technology (FAST) Partnership Program and 
Rural Outreach Program

Appendix I: Instructions For SBIR Program Solicitation Preparation

Appendix II: Tech-Net Data Fields For Public Database

1. Purpose

    (a) Section 9(j) of the Small Business Act (Act) requires that the 
Small Business Administration (SBA) issue an SBIR Program Policy 
Directive for the general conduct of the SBIR Program within the 
Federal Government.
    (b) This proposed policy directive fulfills SBA's statutory 
obligation to provide guidance to the participating Federal agencies 
for the general operation of the SBIR Program. Additional or modified 
instructions may be issued by the SBA as a result of public comment or 
experience.
    (c) The statutory purpose of the SBIR Program is to strengthen the 
role of innovative small business concerns (SBCs) in Federally-funded 
research and research and development (R/R&D). Specific program 
purposes are to: (1) Stimulate technological innovation; (2) use small 
business to meet Federal R/R&D needs; (3) foster and encourage 
participation by socially and economically disadvantaged SBCs, and by 
SBCs that are 51 percent owned and controlled by women, in 
technological innovation; and (4) increase private sector 
commercialization of innovations derived from Federal R/R&D.
    (d) Federal agencies participating in the SBIR Program (SBIR 
agencies) should follow the guidance provided by this proposed policy 
directive. Each agency is obligated to review its rules, policies, and 
guidance on the SBIR Program to ensure consistency with this policy 
directive and to make any necessary changes in accordance with each 
agency's normal procedures. This is consistent with the statutory 
authority provided to the SBA concerning the SBIR Program.

2. Summary of Legislative Provisions

    (a) The Small Business Innovation Research Program Reauthorization 
Act of 2000, Public Law 106-554, amended section 9 of the Act (15 
U.S.C. 638).
    (1) The purposes of the amendments to the Act are to:
    (i) Continue the SBIR Program through September 30, 2008;
    (ii) Clarify data rights pertaining to SBIR Phase I, Phase II, and 
federally funded Phase III awards.
    (iii) Establish databases--one for the public and one for 
Government use--to collect and maintain in a common format, information 
necessary to assist SBCs and assess the SBIR Program.
    (iv) Require agencies with SBIR budgets of over $50,000,000 to 
enter into an agreement with the National Academy of Sciences for the 
National Research Council to conduct a review of each agency's SBIR 
Program.
    (v) Require SBIR agencies to report to SBA on the calculation of 
the agency's extramural budget within 4 months of enactment of each 
agency's annual Appropriations Act.
    (vi) Establish the Federal and State Technology (FAST) Partnership 
Program to strengthen the technological competitiveness of SBCs.
    (vii) Extend the Rural Outreach Program through September 30, 2005.
    (b) The Act requires each Federal agency with an extramural budget 
for Research/Research & Development (R/R&D) in excess of $100,000,000 
to participate in the SBIR Program.
    (c) The statutory requirements assist SBCs by establishing a 
uniform, simplified process for the operation of the SBIR Program while 
allowing the SBIR agencies flexibility in the operation of their 
individual SBIR Program. This policy directive fulfills the 
Congressional intent to minimize regulatory burden in the conduct of 
this program.
    (d) The Act requires each SBIR agency to establish an SBIR Program 
by reserving not less than 2.5 percent of its extramural budget for 
awards to SBCs for R/R&D through a uniform, three-phase process, 
including:

[[Page 27724]]

    (1) Phases I and II. The first two phases help SBIR agencies meet 
R/R&D and commercialization objectives through funding agreements.
    (2) Phase III. The third phase, when appropriate helps SBCs,
    (i) to pursue commercial applications from the Government-funded R/
R&D in order to stimulate technological innovation and provide for the 
national return on investment from R/R&D, and/or
    (ii) to obtain additional contract or grant activity with Federal 
agencies through non-SBIR funding agreements.
    (e) The Act directs each SBIR agency to report annually to SBA. The 
Act also requires SBA to obtain annual reports and monitor each 
agency's SBIR Program and to report our findings annually to the 
Committee on Small Business of the Senate and to the Committee on 
Science and the Committee on Small Business of the House of 
Representatives.
    (f) The competition requirements of the Armed Services Procurement 
Act of 1947 (10 U.S.C. 2302 et seq.) and the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.) must be 
read in conjunction with the procurement notice publication 
requirements of Section 8(e) of the Small Business Act (15 U.S.C. 
637(e)). The following notice publication requirements of Section 8(e) 
of the Small Business Act (15 U.S.C. 637(e)) apply to SBIR agencies 
using contracts as a SBIR funding agreement:
    (1) Any Federal executive agency intending to solicit a proposal to 
contract for property or services valued above $25,000 must transmit a 
notice of the impending solicitation to the governmentwide point of 
entry (GPE) for access by interested sources. See FAR 5.201. The GPE, 
located at http://www.fedbizopps.gov, is the single point where 
Government business opportunities greater than $25,000, including 
synopses of proposed contract actions, solicitations, and associated 
information, can be accessed electronically by the public. The 
contracting office may transmit the notice to the Commerce Business 
Daily (CBD) in lieu of the GPE if the contracting office lacks the 
capability to access the GPE and the notice is issued prior to October 
1, 2001.
    (i) No agency shall issue its solicitation for at least 15 days 
from the date of the publication of the GPE or CBD notice. The agency 
may not establish a deadline for submission of proposals in response to 
a solicitation earlier than 30 days after the date on which the 
solicitation was issued.
    (ii) When transmitting notices to the GPE before January 1, 2002, 
contracting officers must direct the GPE to forward the notice to the 
CBD.
    (2) The contracting officer must generally make available through 
the GPE solicitations synopsized through the GPE including 
specifications and other pertinent information determined necessary by 
the contracting officer. See FAR 5.102.
    (3) Any executive agency awarding a contract for property or 
services valued at more than $25,000 must submit a synopsis of the 
award through the GPE if a subcontract is likely to result from such 
contract. See FAR 5.301. The contracting office may transmit the notice 
to the CBD in lieu of the GPE if the contracting office lacks the 
capability to access the GPE and the notice is issued prior to October 
1, 2001.
    (4) The following are exemptions from the notice publication 
requirements:
    (i) In the case of agencies intending to solicit Phase I proposals 
for contracts in excess of $25,000, the head of the agency may exempt a 
particular solicitation from the notice publication requirements if he/
she makes a written determination, with the consultation of the 
Administrator of the Office of Federal Procurement Policy and the SBA 
Administrator, that it is inappropriate or unreasonable to publish a 
notice before issuing a solicitation.
    (ii) The SBIR Phase II award process is exempt.
    (iii) The SBIR Phase III award process is exempt.

3. Definitions

    (a) Act. The Small Business Act (15 U.S.C. 631 et seq.), as 
amended.
    (b) Applicant. The organizational entity that, at the time of 
award, will qualify as a SBC, as defined in this section, and that 
submits a contract proposal or a grant application for a funding 
agreement under the SBIR Program.
    (c) Affiliate. This term has the same meaning as set forth in 13 
CFR Part 121--Small Business Size Regulations, Sec. 121.103, What is 
affiliation?
    (d) Awardee. The SBC receiving an SBIR funding agreement.
    (e) Commercialization. The process of developing markets and 
producing and delivering products or services for sale (whether by the 
originating party or by others) to Government and/or commercial 
markets.
    (f) Cooperative Agreement. A financial assistance mechanism used 
when substantial Federal programmatic involvement with the awardee 
during performance is anticipated by the issuing agency. The 
Cooperative Agreement contains the responsibilities and respective 
obligations of the parties.
    (g) Data rights. The license the Government obtains in scientific 
or technical data, including computer software and computer software 
documentation, generated during the performance of a funding agreement 
that an awardee provides to the Government upon completion of a 
Federally-funded project.
    (h) Essentially Equivalent Work. The ``scientific overlap,'' which 
occurs when (1) substantially the same research is proposed for funding 
in more than one contract proposal or grant application submitted to 
the same Federal agency; (2) substantially the same research is 
submitted to two or more different Federal agencies for review and 
funding consideration; or (3) a specific research objective and the 
research design for accomplishing an objective are the same or closely 
related in two or more proposals or awards, regardless of the funding 
source.
    (i) Extramural Budget. The sum of the total obligations for R/R&D 
minus amounts obligated for R/R&D activities by employees of a Federal 
agency in or through Government-owned, Government-operated facilities. 
For the Agency for International Development, the ``extramural budget'' 
shall not include amounts obligated solely for general institutional 
support of international research centers or for grants to foreign 
countries. For the Department of Energy, the ``extramural budget'' 
shall not include amounts obligated for atomic energy defense programs 
solely for weapons activities or for naval reactor programs. (Also see 
Section 7(i) of this policy directive for additional exemptions related 
to national security.)
    (j) Feasibility. The practical extent to which a project is capable 
of being successfully performed.
    (k) Federal Agency. An executive agency as defined in 5 U.S.C. 105, 
or a military department as defined in 5 U.S.C. 102 except that it does 
not include any agency within the Intelligence Community as defined in 
Executive Order 12333, Section 3.4(f), as amended.
    (l) Funding Agreement. Any contract, grant, cooperative agreement, 
or other transaction entered into between any Federal agency and any 
SBC for the performance of experimental, developmental, or research 
work funded in whole or in part by the Federal Government.
    (m) Funding Agreement Officer. A contracting officer, a grants 
officer, or a cooperative agreement officer.

[[Page 27725]]

    (n) Grant. A financial assistance mechanism providing money, 
property, or both to an eligible entity to carry out an approved 
project or activity. A grant is used whenever the Federal agency 
anticipates no substantial programmatic involvement with the awardee 
during performance of the financially assisted activities.
    (o) Innovation. Something new or improved, including research for 
(1) development of new technologies, (2) refinement of existing 
technologies, or (3) development of new applications for existing 
technologies.
    (p) Intellectual Property. The four separate and distinct types of 
intangible property that are referred to collectively as ``intellectual 
property': patents, trademarks, copyrights, and trade secrets. The 
patent is the most common type of intangible property fostered by the 
SBIR Program.
    (q) Joint Venture. An association of persons or concerns with 
interests in any degree or proportion by way of contract, express or 
implied, consorting to engage in and carry out a single specific 
business venture for joint profit, for which purpose they combine their 
efforts, property, money, skill, or knowledge, but not on a continuing 
or permanent basis for conducting business generally. A joint venture 
is viewed as a business entity in determining power to control its 
management and is eligible under the SBIR Program provided that the 
entity created qualifies as a ``SBC'' as defined in this section of the 
policy directive.
    (r) Outcomes. The measures of long-term, eventual, program impact.
    (s) Outputs. The measures of near-term program impact.
    (t) Principal Investigator/Project Manager. The one individual 
designated by the applicant to provide the scientific and technical 
direction to the project that will be supported by the funding 
agreement.
    (u) Program Solicitation. A formal solicitation of proposals 
whereby a Federal agency notifies the small business community of its 
R/R&D needs and interests in selected areas and requests proposals in 
response to these needs from SBCs. Announcements in the Federal 
Register, Commerce Business Daily, or the GPE are not considered an 
SBIR Program solicitation.
    (v) Prototype. A model of something to be further developed, which 
includes designs, protocols, questionnaires, software, and devices.
    (w) Research or Research and Development (R/R&D). Any activity that 
is:
    (1) A 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, and systems or methods, including design, 
development, and improvement of prototypes and new processes to meet 
specific requirements.
    (x) Small Business Concern. An SBC is a concern that, on the date 
of award for both Phase I and Phase II funding agreements:
    (1) is organized for profit, with a place of business located in 
the United States, which operates primarily within the United States or 
which makes a significant contribution to the United States economy 
through payment of taxes or use of American products, materials or 
labor;
    (2) is in the legal form of an individual proprietorship, 
partnership, limited liability company, corporation, joint venture, 
association, trust or cooperative, except that where the form is a 
joint venture there can be no more than 49 percent participation by 
foreign business entities in the joint venture;
    (3) is at least 51 percent owned and controlled by one or more 
individuals who are citizens of, or permanent resident aliens in, the 
United States; and
    (4) has, including its affiliates, not more than 500 employees.
    (y) Socially and Economically Disadvantaged Individual. A member of 
any of the following groups:
    (1) Black Americans.
    (2) Hispanic Americans.
    (3) Native Americans.
    (4) Asian-Pacific Americans.
    (5) Subcontinent Asian Americans.
    (6) Other groups designated from time to time by SBA to be socially 
disadvantaged; or any other individual found to be socially and 
economically disadvantaged by SBA pursuant to Section 8(a) of the Small 
Business Act, 15 U.S.C. 637(a).
    (z) Socially and Economically Disadvantaged SBC. See 13 CFR Part 
124 --8(A) Business Development/Small Disadvantaged Business Status 
Determinations, Secs. 124.103 (Who is socially disadvantaged?) and 
124.104 (Who is economically disadvantaged?).
    (aa) Subcontract. Any agreement, other than one involving an 
employer-employee relationship, entered into by an awardee of a funding 
agreement calling for supplies or services required solely for the 
performance of the original funding agreement.
    (bb) United States. Means the 50 states, the territories and 
possessions of the Federal Government, the Commonwealth of Puerto Rico, 
the District of Columbia, the Republic of the Marshall Islands, the 
Federated States of Micronesia, and the Republic of Palau.
    (cc) Women-Owned SBC. A SBC that is at least 51 percent owned by 
one or more women, or in the case of any publicly owned business, at 
least 51 percent of the stock of which is owned by women, and who also 
control and operate it. ``Control'' in this context means exercising 
the power to make policy decisions. ``Operate'' in this context means 
being actively involved in the day-to-day management.

4. Competitively Phased Structure of the Program

    The SBIR Program is a phased process, uniform throughout the 
Federal Government, of soliciting proposals and awarding funding 
agreements for R/R&D to meet stated agency needs or missions. To 
stimulate and foster scientific and technological innovation, including 
increasing commercialization of Federal R/R&D, the program must follow 
a uniform competitive process of three phases:
    (a) Phase I. Phase I involves a solicitation of grant applications 
or contract proposals (proposals) to conduct feasibility related 
experimental or theoretical R/R&D related to described agency 
requirements. These requirements, as defined by agency topics contained 
in a solicitation, may be general or narrow in scope, depending on the 
needs of the agency. The object of this phase is to determine the 
scientific and technical merit and feasibility of the proposed effort 
and the quality of performance of the SBC with a relatively small 
agency investment before consideration of further Federal support in 
Phase II.
    (1) Several different proposed solutions to a given problem may be 
funded.
    (2) Proposals will be evaluated on a competitive basis. Agency 
criteria used to evaluate SBIR proposals shall give primary 
consideration to the scientific and technical merit of the proposal 
along with its potential for commercialization. Secondary 
considerations may include program balance or critical agency 
requirements.
    (3) Agencies may include requirements for submission of a Phase II 
proposal as a deliverable item under Phase I.
    (b) Phase II. The object of Phase II is to continue the R/R&D 
effort from the completed Phase I. Agencies must make efforts to reduce 
the time frame for

[[Page 27726]]

issuing Phase II awards and are encouraged to develop gap-funding 
methods to address the duration of Phase II award cycles. Only SBIR 
awardees in Phase I (including those identified via a ``novated'' or 
``successor in interest'' or similarly-revised funding agreement, or 
those that have reorganized with the same key staff, regardless of 
whether they have been assigned a different tax identification number) 
are eligible to participate in Phase II.
    (1) Awardees of an STTR (Small Business Technology Transfer) Phase 
I award may submit a proposal for an SBIR Phase II award, which 
continues the research conducted under the STTR Phase I award. Agencies 
may then issue an SBIR Phase II award to those awardees using SBIR 
funds. However, those awardees must meet the requirements of the SBIR 
Program. For example, the awardee could no longer partner with a non-
profit joint ventured within the STTR Phase I award, but could 
subcontract work to a non-profit. In effect, the award converts from an 
STTR to an SBIR award.
    (2) Awardees of an SBIR Phase I award may submit a proposal for an 
STTR Phase II award, which continues the research conducted under the 
SBIR Phase I award. Agencies may then issue an STTR Phase II award to 
those awardees using STTR funds. However, those awardees must meet the 
requirements of the STTR Program. Thus, the awardee must partner with a 
research institution, non-profit organization or Federally Funded 
Research and Development Center (FFRDC). In effect, the award converts 
from an SBIR to an STTR award. Agencies must provide to the SBA a 
written justification with their annual report the rationale for this 
deviation.
    (3) Agencies must provide to the SBA a written justification with 
their annual report the rationale for this deviation. Funding shall be 
based upon the results of Phase I and the scientific and technical 
merit and commercial potential of the Phase II proposal. Phase II 
awards may not necessarily complete the total research and development 
that may be required to satisfy commercial or Federal needs beyond the 
SBIR or STTR Programs. Completion of the research and development may 
be through a Phase III. The Phase II funding agreement with the awardee 
may, at the discretion of the agency awarding the agreement, establish 
the procedures applicable to third phase agreements. The Government is 
not obligated to fund any specific Phase II proposal. The SBIR or STTR 
Phase II award decision process requires, among other things, 
consideration of a proposal's commercial potential. Commercial 
potential includes the potential to transition the technology to 
private sector applications, Government applications, or Government 
contractor applications. Commercial potential in a Phase II proposal 
may be evidenced by:
    (i) the SBC's record of successfully commercializing SBIR, STTR or 
other research;
    (ii) the existence of second phase funding commitments from private 
sector or other non-SBIR or STTR funding sources;
    (iii) the existence of third phase, follow-on commitments for the 
subject of the research; and
    (iv) the presence of other indicators of commercial potential of 
the idea.
    (a) Phase III. The term third phase agreement means a follow-on, 
non-SBIR funded award as described below. A Federal agency may enter 
into a third phase agreement with the awardee of the second phase for 
additional work to be performed during or after the second phase 
period.
    (1) The competition for SBIR Phase I and Phase II awards satisfies 
any competition requirement of the Armed Services Procurement Act and 
the Federal Property and Administrative Services Act. Therefore, an 
agency that wishes to fund an SBIR project in Phase III (with non-SBIR 
funds), or enter into a follow-on procurement with an SBIR concern, is 
not required to conduct another competition in order to satisfy those 
statutory provisions.
    (2) Where appropriate, there will be a third phase, which is funded 
by:
    (i) non-Federal sources of capital for commercial applications of 
SBIR funded research or research and development; or
    (ii) non-SBIR Federal funding for SBIR derived products or services 
intended for use by the Federal Government; or
    (iii) non-SBIR Federal funding sources for the continuation of 
research or research and development that has been competitively 
selected using peer review or scientific review criteria.
    (3) The term ``third-phase award'' or ``SBIR Phase III award'' 
applies to each of the following activities:
    (i) commercial application of SBIR-funded research or R&D funded by 
non-Federal sources of capital;
    (ii) products and services intended for use by the Federal 
Government funded by follow-on non-SBIR Federal funding awards;
    (iii) the continuation of R/R&D funded by non-SBIR Federal funding 
sources.
    (4) The third phase work may be for products or production, 
services, 
R/R&D, or any combination.
    (5) There is no limitation on the number, duration, or dollar value 
of third phase awards made to a business concern.
    (6) As indicated above, the competition for SBIR Phase I and Phase 
II awards satisfies any competition requirement of the Armed Services 
Procurement Act and the Federal Property and Administrative Act. 
Therefore, agencies or their Government-owned, contractor-operated 
facilities or Federally funded research and development centers or 
Government prime contractors, that wish to fund an SBIR project in 
Phase III (with non-SBIR funds) or enter into a follow-on procurement 
with a business concern, shall not request FAR required Justifications 
and Approvals in the conduct of contract actions relative to a third 
phase agreement.
    (7) Congress intends that agencies or their Government-owned, 
contractor-operated facilities or Federally-funded research and 
development centers or Government prime contractors, pursuing R/R&D, or 
production developed under the SBIR Program give special acquisition 
preference, including sole source awards, to the awardee that developed 
the technology. In fact, the Act requires reporting to SBA of all 
instances in which an agency fails to issue a Phase III award to a SBC 
that pursued R/R&D pursuant to the SBIR Program (see Section 9 of this 
policy directive). SBA, in turn, reports these instances to the 
Congress. The Phase III awardee does not need to be eligible as a SBC 
(as defined in this policy directive) to receive the Phase III funding 
agreement.
    (8) Agencies or their Government-owned, contractor-operated 
facilities or Federally-funded research and development centers, 
intending to pursue R/R&D, or production developed under the SBIR 
Program with an entity other than the awardee of the second phase, must 
notify SBA in writing prior to awarding such a funding agreement. This 
notification shall include: (a) the reasons why the follow-on funding 
agreement with the SBC is not practicable; (b) the identity of the 
entity with which the agency intends to make an award to perform 
research, development, or production; and (c) a description of the type 
of funding agreement under which the research, development, or 
production will be obtained. SBA reviews the justification and may 
appeal the decision to the head of the contracting activity. If SBA 
decides to appeal the decision, SBA will

[[Page 27727]]

file its notice of intent to appeal to the contracting officer no later 
than 5 business days after receiving notice of the agency's intent to 
make an award. Upon receipt of SBA's notice of intent to appeal, the 
contracting officer should suspend further action regarding the funding 
agreement until the head of the contracting activity issues a written 
decision on the appeal. Within 15 business days of SBA's notification 
of its intent to appeal, SBA must either file its formal appeal with 
the head of the contracting activity or that agency may consider the 
appeal withdrawn. The contracting activity must specify in writing to 
SBA its reasons for a denial of an appeal.

5. Program Solicitation Process

    (a) Each agency shall at least annually issue a program 
solicitation that sets forth a substantial number of R/R&D topics and 
subtopic areas consistent with stated agency needs or missions. Both 
the list of topics and the description of the topics and subtopics must 
be sufficiently comprehensive to provide a wide range of opportunity 
for SBCs to participate in the agency research or R&D programs. Topics 
and subtopics must emphasize the need for proposals with advanced 
concepts to meet specific agency R/R&D needs. Each topic and subtopic 
must describe the needs in sufficient detail to assist small firms in 
providing on-target responses, but cannot involve detailed 
specifications to prescribed solutions of the problems.
    (b) The Act requires issuance of SBIR (Phase I) Program 
solicitations in accordance with a Master Schedule coordinated between 
SBA and the SBIR agency. The SBA organization responsible for 
coordination is: Office of Technology, Office of Policy, Planning, and 
Liaison, Office of Government Contracting/Business Development, U. S. 
Small Business Administration, 409 Third Street, SW, Washington, DC 
20416, Phone: (202) 205-6450, Internet site: www.sba.gov/sbir.
    (c) For maximum participation by interested SBCs, it is important 
that the planning, scheduling and coordination of agency program 
solicitation release dates be completed as early as practicable in 
order to be coordinated with the commencement of the fiscal year on 
October 1. Bunching of agency program solicitation release and closing 
dates may prohibit SBCs from the preparation and timely submission of 
proposals for more than one SBIR project. SBA's coordination of agency 
schedules minimizes the bunching of proposed release and closing dates. 
Participating agencies may elect to publish multiple program 
solicitations within a given fiscal year to facilitate in-house agency 
proposal review and evaluation scheduling.
    (d) Master Schedule
    SBA posts an electronic Master Schedule of release dates of program 
solicitations with links to Internet web sites of agency solicitations. 
Agencies must post on their Internet web sites the following 
information regarding each program solicitation:
    (1) The list of topics upon which research or R&D proposals will be 
sought.
    (2) Agency address, phone number, or email address from which SBIR 
Program solicitations can be requested or obtained, especially through 
electronic means.
    (3) Names, addresses, and phone numbers of agency contact points 
where SBIR-related inquiries may be directed.
    (4) Release date(s) of program solicitation(s).
    (5) Closing date(s) for receipt of proposals.
    (6) Estimated number and average dollar amounts or level of effort 
of Phase I awards to be made under the solicitation.
    (e) Each agency representative must notify SBA in writing or by e-
mail of its proposed program solicitation release and proposal due 
dates for the next fiscal year on or before August 1. The SBA and the 
agency representatives will coordinate the resolution of any 
conflicting agency solicitation dates by the second week of August. In 
all cases, the SBA will make final decisions.
    (f) For those agencies that use both general topic and more 
specific subtopic designations in their SBIR solicitations, the topic 
data should accurately describe the research solicited. For example, 
rather than just announcing topic information characterized as 
``Chemistry'' or ``Aerodynamics,'' the SBIR agency could summarize the 
subtopic statements and, where appropriate, utilize National Critical 
Technologies.
    (g) Simplified, Standardized, and Timely SBIR Program Solicitations
    (1) The Act requires ``* * * simplified, standardized and timely 
SBIR solicitations'' and for SBIR agencies to use a ``uniform process'' 
minimizing the regulatory burden for SBCs. Therefore, the instructions 
in Appendix I to this policy directive purposely depart from normal 
Government solicitation format and requirements. SBIR Program 
solicitations shall be prepared according to Appendix I.
    (2) Agencies must provide the SBA's Office of Technology with two 
hard copies or an e-mail version of each solicitation and any 
modifications no later than the date of release of the solicitation or 
modification to the public. Those agencies that issue program 
solicitations in electronic format only shall provide the Internet site 
at which the program solicitation may be accessed no later than the 
date of posting at that site of the program solicitation or 
modification to the public.
    (3) SBA does not intend that the SBIR Program solicitation replace 
or be used as a substitute for unsolicited proposals for R/R&D awards 
to SBCs. In addition, the SBIR Program solicitation procedures do not 
prohibit other agency research or R&D actions with SBCs that are 
carried on in accordance with applicable statutory/regulatory 
authorizations.

6. Eligibility and Application (Proposal) Requirements

    (a) Eligibility Requirements:
    (1) Each awardee under the SBIR Program must qualify as a SBC as 
defined in this policy directive.
    (2) For Phase I--a minimum of two-thirds of the research or 
analytical effort must be performed by the awardee. Deviation from this 
requirement must be approved in writing by the funding agreement 
officer.
    (3) For Phase II--a minimum of one-half of the research or 
analytical effort must be performed by the awardee. Deviation from this 
requirement must be approved in writing by the funding agreement 
officer.
    (4) For both Phase I and II, the primary employment of the 
principal investigator must be with the SBC at the time of award and 
during the conduct of the proposed effort. Primary employment means 
that more than one-half of the principal investigator's time is spent 
in the employ of the SBC. Primary employment with a SBC precludes full-
time employment with another organization. Deviation from this 
requirement must be approved in writing by the funding agreement 
officer. (For purposes of the SBIR Program, personnel obtained through 
a Professional Employer Organization or other similar personnel leasing 
company may be considered employees of the awardee. This is consistent 
with 13 CFR Sec. 121.106--Small Business Size Regulations.)
    (5) Also, for both Phase I and Phase II, the research or R&D work 
must be performed in the United States, as defined in this proposed 
policy directive. However, based on a rare and unique circumstance 
agencies may approve that particular portion of the

[[Page 27728]]

research or R&D work to be performed or obtained in a country outside 
of the United States. For example, if a supply or material or other 
item or project requirement is not available in the United States. 
Approval by the funding agreement officer for each such specific 
condition(s) must be in writing.
    (b) Proposal Requirements:
    (1) Documentation of commercialization record of firms with 
multiple Phase II awards. A SBC submitting a proposal for a funding 
agreement for Phase I of an SBIR Program that has received more than 15 
Phase II SBIR awards during the preceding 5 fiscal years must document 
the extent to which it was able to secure third phase funding to 
develop concepts resulting from previous Phase II SBIR awards.
    (2) Commercialization Plan. A succinct commercialization plan must 
be included with each proposal for an SBIR Phase II award moving toward 
commercialization. Elements of a commercialization plan may include the 
following:
    (i) Company information: Focused objectives/core competencies; 
size; specialization area(s); products with significant sales; and 
history of previous Federal and non-Federal funding, regulatory 
experience, and subsequent commercialization.
    (ii) Customer and Competition: Clear description of key technology 
objectives, current competition, and advantages compared to competing 
products or services; description of hurdles to acceptance of the 
innovation.
    (iii) Market: Milestones, target dates, market analyses of market 
size, and estimated market share after first year sales and after 5 
years; explanation of plan to obtain market share.
    (iv) Intellectual Property: Patent status or other demonstration of 
a plan to achieve sufficient protection to realize the 
commercialization stage and attain at least a temporal competitive 
advantage.
    (v) Financing: Plans of securing necessary funding in Phase III.
    (vi) Data Collection: Each Phase II applicant will be required to 
provide information to the Tech-Net Database System (http://technet.sba.gov). See Appendix I, Item III. C., for additional 
information.

7. SBIR Funding Process

    In requiring the establishment of a ``simplified, standardized 
funding process,'' the SBIR legislation requires that specific 
attention be given to the following areas of SBIR Program 
administration:
    (a) Timely Receipt and Review of Proposals.
    (1) Participating agencies must establish firm schedules and review 
formats for appropriate distribution of the proposals for reviewing 
recommendations and submission to the SBIR Project Manager for award 
determinations.
    (i) All activities related to Phase I proposal reviews shall 
normally be completed and awards made within 6 months from the closing 
date of the program solicitation. However, agencies may extend that 
period up to 12 months based on agency needs.
    (ii) The program solicitations for Phase I must establish proposal 
submission dates. Related to Phase II activity, an agency may also 
establish set proposal submission dates. However, agencies may 
negotiate mutually acceptable proposal submission dates with individual 
Phase I performers, accomplish proposal reviews expeditiously, and 
proceed with awards. While recognizing that Phase II arrangements 
between the agency and applicant may require more detailed negotiation 
to establish terms acceptable to both parties, agencies must not 
sacrifice the R/R&D momentum created under Phase I by engaging in 
unnecessarily protracted Phase II proceedings.
    (iii) SBIR participants often submit duplicate or similar proposals 
to more than one soliciting agency when the work projects appear to 
involve similar topics or requirements, which are within the expertise 
and capability levels of the applicant. To the extent reasonably 
feasible, interagency funding duplications of ``essentially equivalent 
work'' under the SBIR or other Federal programs should not occur. For 
this purpose, the standardized program solicitation will require 
applicants to indicate the name and address of the agencies to which 
essentially equivalent work proposals were made, or anticipated to be 
made, and to identify by subject the projects for which the proposal 
was submitted and the dates submitted. The same information will be 
required for any previous Federal Government awards. To assist in 
avoiding duplicate funding, each agency must provide to SBA and to each 
SBIR agency a listing of Phase I and Phase II awardees including the 
complete address and title of each SBIR project. This information 
should be distributed no later than release of the funding agreement 
award information to the public.
    (b) Review of SBIR Proposals. SBA encourages SBIR agencies to use 
their routine review processes for SBIR proposals whether internal or 
external evaluation is used. A more limited review process may be used 
for Phase I due to the larger number of proposals anticipated. Where 
appropriate, ``peer'' reviews external to the agency are authorized by 
the Act. SBA cautions SBIR agencies that all review procedures must be 
designed to minimize any possible conflict of interest as it pertains 
to applicant proprietary data. The standardized SBIR solicitation 
advises potential applicants that proposals may be subject to an 
established external review process and that the applicant may include 
company designated proprietary information in its proposal.
    (c) Selection of Awardees. Normally, SBIR agencies shall establish 
a proposal review cycle wherein successful and unsuccessful applicants 
will be notified of final award decisions within 6-months of the 
agency's Phase I proposal closing date. However, agencies may extend 
that period up to 12 months based on agency needs.
    (1) The standardized SBIR Program solicitation must:
    (i) Advise Phase I applicants that additional information may be 
requested by the awarding agency to evidence awardee responsibility for 
project completion.
    (ii) Contain information advising applicants of basic proposal 
evaluation criteria for Phase I and Phase II.
    (2) Phase II proposal submissions, reviews, and selections shall be 
managed by arrangements between the SBIR agency and each Phase I 
awardee considered for Phase II award.
    (d) Cost Sharing.
    Cost sharing can serve the mutual interests of the SBIR agencies 
and certain SBIR awardees by assuring the efficient use of available 
resources. However, cost sharing on SBIR projects is not required, 
although it may be encouraged. The standardized SBIR Program 
solicitation (Appendix I) will provide information to prospective SBIR 
applicants concerning cost sharing.
    (e) Payment Schedules and Cost Principles.
    (1) Under Section 9(g)(7) of the Small Business Act, 15 U.S.C. 
638(g)(7), SBIR awardees may be paid under an applicable, authorized 
progress payment procedure or in accordance with a negotiated/
definitized price and payment schedule. Advance payments are optional 
and may be made under appropriate law. In all cases, agencies must make 
payment to recipients under SBIR funding agreements in full, subject to 
audit, on or before the last day of the 12-month period beginning on 
the date of completion of the award.

[[Page 27729]]

    (2) All SBIR funding agreements must use, as appropriate, current 
cost principles and procedures authorized for use by the SBIR agencies. 
At the time of award, agencies shall inform each SBIR awardee, to the 
extent possible, of the applicable Federal regulations and procedures 
that refer to the costs that, generally, are allowable under funding 
agreements.
    (f) Funding Agreement Types and Fee or Profit. Statutory 
requirements for uniformity and standardization require consistency in 
application of SBIR Program provisions among SBIR agencies. However, 
consistency must allow for flexibility by the various agencies in 
missions and needs as well as the wide variance in funds required to be 
devoted to SBIR Programs in the agencies. The following instructions 
are for the purpose of meeting these requirements:
    (1) Funding Agreement. The choice of type of funding agreement 
(contract, grant, or cooperative agreement) rests with the awarding 
agency but must be consistent with 31 U.S.C. 6301-6308.
    (2) Fee or Profit. Unless expressly excluded by statute, awarding 
agencies must provide for a reasonable fee or profit on SBIR funding 
agreements, consistent with normal profit margins provided to profit-
making firms for R/R&D work.
    (g) Periods of Performance and Extensions.
    (1) In keeping with the legislative intent to make a large number 
of relatively small awards, modification of funding agreements to 
extend periods of performance, increase the scope of work, or to 
increase the dollar amount should be kept to a minimum, except for 
options in original Phase I or II awards.
    (2) Phase I. Period of performance should normally not exceed 6 
months. However, agencies may provide a longer performance period based 
on agency needs or research plans.
    (3) Phase II. Period of performance under Phase II is a subject of 
negotiation between the awardee and the issuing agency. The duration of 
Phase II should normally not exceed 2 years. However, agencies may 
provide a longer performance period based on agency needs or research 
plans.
    (h) Dollar Value of Awards.
    (1) The Act establishes $100,000 as the maximum amount of funds 
which an agency may award in the first phase of an SBIR Program, and 
$750,000 as the maximum amount of funds which an agency may award in 
the second phase of an SBIR Program. SBA may adjust these amounts once 
every 5 years to reflect economic adjustments and programmatic 
considerations.
    (2) After award of any funding agreement exceeding $100,000 for 
Phase I or $750,000 for Phase II, the agency SBIR representative must 
provide SBA with written justification of such action. This 
justification must be submitted with the SBIR agency's Annual Report 
data. Similar justification is required for any dollar increase of a 
funding agreement that would bring the cumulative dollar amount to a 
total in excess of the amounts above.
    (i) National Security Exemption.
    The Act provides for exemptions related to the simplified 
standardized funding process ``* * * if national security or 
intelligence functions clearly would be jeopardized.'' This exemption 
should not be interpreted as a blanket exemption or prohibition of SBIR 
participation related to the acquisition of effort on national security 
or intelligence functions except as specifically defined under Section 
9(e)(2) of the Act, 15 USC 638(e)(2). Agency technology managers 
directing R/R&D projects under the SBIR Program, where the project 
subject matter may be affected by this exemption, must first make a 
determination on which, if any, of the standardized proceedings clearly 
place national security and intelligence functions in jeopardy, and 
then proceed with an acceptable modified process to complete the SBIR 
action. SBA's SBIR Program monitoring activities, except where 
prohibited by security considerations, shall include a review of 
nonconforming SBIR actions justified under this public law provision.

8. Terms of Agreement Under SBIR Awards

    (a) Proprietary Information Contained in Proposals. The 
standardized SBIR Program solicitation, as described in the Appendix I 
of this policy directive, will include provisions requiring the 
confidential treatment of any proprietary information to the extent 
permitted by law. Agencies will discourage SBCs from submitting 
information considered proprietary unless the information is deemed 
essential for proper evaluation of the proposal. The solicitation will 
require that all proprietary information to be clearly identified and 
marked with a prescribed legend. Agencies may elect to require SBCs to 
limit proprietary information to that essential to the proposal and to 
have such information submitted on a separate page or pages keyed to 
the text.
    (b) Rights in Data Developed Under SBIR Funding Agreement. The Act 
provides for ``retention by a SBC of the rights to data generated by 
the concern in the performance of an SBIR award.''
    (1) The legislative history states that the law provides authority 
for the SBIR agency to protect technical data generated under the 
funding agreement. Each agency should refrain from disclosing such data 
to competitors of the SBC or from using the information to produce 
future technical procurement specifications that could harm the SBC 
that discovered and developed the innovation until the SBC has a 
reasonable opportunity to seek patent protection, if appropriate.
    (2) SBIR agencies shall protect such technical data for a period of 
not less than 4 years from completion of each phase of the SBIR Program 
(Phase I, Phase II, and Federally-funded Phase III) from which the data 
were generated unless the agencies obtain permission to disclose such 
data from the awardee. The Government shall retain a royalty-free 
license for Government use of any technical data delivered under an 
SBIR funding agreement whether patented or not. This section does not 
apply to program evaluation.
    (3) These data rights apply to all funding awards, including 
subcontracts to such awards, that fall within the statutory definition 
of first phase, second phase, and third phase of the SBIR Program, as 
described in Section 4 of this proposed policy directive. The scope and 
extent of the SBIR data rights applicable to Federally funded third 
phase awards shall be identical to the SBIR data rights applicable to 
Phases I or II SBIR awards. That is, for phases one and two SBIR 
awards, the 4-year period of protection identified in 8(b)(2) 
immediately above begins with the completion of the Phase I period, and 
if a Phase II award is made, the 4-year period extends through the 
completion of the Phase II period. A Phase III award, if made, may not 
occur for several years beyond completion of the Phase II SBIR award 
period. Thus, the 4-year period of protection for a Phase III award 
begins with the completion of the Phase III award period.
    (c) Title Transfer of Agency Provided Property. Under the Act, 
title to equipment purchased for project performance with funds 
provided under SBIR funding agreements may be transferred to the 
awardee where such transfer would be more cost effective than recovery 
of the property by the Government.
    (d) Continued Use of Government Equipment. The Act directs that a 
SBC participating in the third phase of the SBIR Program be allowed 
continued use, as a directed bailment, of any property transferred by a 
Federal agency to the SBC in the second phase of an SBIR Program for a 
period of not less

[[Page 27730]]

than 2 years, beginning on the initial date of the concern's 
participation in the third phase of such program.
    (e) Grant Authority. The Act does not, in and of itself, convey 
grant authority. Each agency must secure grant authority in accordance 
with its normal procedures.
    (f) Conflicts of Interest. SBA cautions SBIR agencies that awards 
made to SBCs owned by or employing current or previous Federal 
Government employees can create conflicts of interest for those 
employees in violation of FAR Part 3 and the Ethics in Government Act 
of 1978, as amended. Each SBIR agency should refer to the standards of 
conduct review procedures currently in effect for its agency to ensure 
that such conflicts of interest do not arise.
    (g) Congress intends that the awardee of a funding agreement under 
the SBIR Program should, when purchasing any equipment or a product 
with funds provided through the funding agreement, purchase only 
American-made equipment and products, to the extent possible in keeping 
with the overall purposes of that program. Each SBIR agency must 
provide to each awardee a notice of this.

9. Responsibilities of SBIR Participating Agencies and Departments

    (a) The Act requires each agency participating in the SBIR Program 
to:
    (1) Submit to the SBA, not later than 4 months after the date of 
enactment of its annual Appropriations Act, a report describing the 
methodology used for calculating the amount of its extramural budget. 
The report must also include an itemization of each research program 
excluded from the calculation of its extramural budget and a brief 
explanation of why it is excluded.
    (2) Unilaterally determine the categories of projects to be 
included in its SBIR Program, giving special consideration to broad 
research topics and to topics that further one or more critical 
technologies, as identified by:
    (i) the National Critical Technologies panel (or its successor) in 
the 1991 report required under section 603 of the National Science and 
Technology Policy Organization and Priorities Act of 1976, and in 
subsequent reports issued under that authority, or
    (ii) the Secretary of Defense in the 1992 report issued in 
accordance with 10 U.S.C. 2522 and in subsequent reports issued under 
that authority.
    (3) Release SBIR solicitations in accordance with the SBA master 
schedule.
    (4) Unilaterally receive and evaluate proposals resulting from 
program solicitations and issue funding agreements.
    (5) Provide for the requirement of a succinct commercialization 
plan with each proposal for a Phase II funding agreement that is moving 
toward commercialization.
    (6) Collect and maintain information from awardees and provide it 
to SBA to develop and maintain the Tech-Net Database, as identified in 
Section 11(e) of this proposed policy directive.
    (7) Administer its own SBIR funding agreements or delegate such 
administration to another agency; and inform each awardee under such 
agreement, to the extent possible, of the costs of the awardee that 
will be allowable under the funding agreement.
    (8) Include provisions in each funding agreement under the SBIR 
Program setting forth the respective rights of the United States and 
the SBC with respect to intellectual property rights and with respect 
to any right to carry out follow-on research.
    (9) Ensure that the rights in data developed under each Federally-
funded SBIR first phase, second phase, and third phase funding 
agreement are properly protected.
    (10) Make payments to awardees of SBIR funding agreements on the 
basis of progress toward or completion of the funding agreement 
requirements and in all cases make payment to awardees under such 
agreements in full, subject to audit, on or before the last day of the 
12-month period beginning on the date of completion of such 
requirements.
    (11) Provide an annual report on the SBIR Program to SBA. See 
Section 10 of this policy directive.
    (12) Report at least annually to the SBA's Office of Technology all 
instances in which an agency pursued research, development, or 
production of a technology developed by a SBC using an award made under 
the SBIR Program of that agency, where the agency determined that it 
was not practicable to enter into a follow-on non-SBIR Program funding 
agreement with the SBC. The report shall include, at a minimum:
    (i) The reasons why the follow-on funding agreement with the SBC 
was not practicable;
    (ii) The identity of the entity with which the agency contracted to 
perform the research, development, or production; and
    (iii) A description of the type of funding agreement under which 
the research, development, or production was obtained.
    (13) Include in its annual performance plan a section on its SBIR 
Program, and shall submit such section to the Committee on Small 
Business of the Senate, and the Committee on Science and the Committee 
on Small Business of the House of Representatives.
    (14) Provide data to SBA to be used in SBIR Program evaluation (see 
Section 11(e) of this policy directive).
    (b) The Act allows discretionary technical assistance to SBIR 
awardees:
    (1) Agencies may enter into funding agreements to provide technical 
assistance to SBIR awardees, which may include:
    (i) Assistance in technical decisions;
    (ii) Assistance with technical problems; and
    (iii) Assistance with all facets of commercialization.
    (2) Under Phase I, each agency may provide up to $4,000 of SBIR 
funds for such technical assistance, for each Phase I award. The amount 
will be in addition to the award and will count as part of the agency's 
SBIR funding.
    (3) In Phase II, agencies may allow awardees to expend up to $4,000 
of SBIR funds per year of the funding agreement for such services.
    (c) Interagency actions.
    (1) Joint funding. An SBIR project may be financed by more than one 
Federal agency. Joint funding is not required but can be an effective 
arrangement for some projects.
    (2) Phase II awards. An SBIR Phase II award may be issued by a 
Federal agency other than the one that made the Phase I award. The 
Phase I and Phase II agencies should document their files 
appropriately, providing clear rationale for the transfer of the Phase 
II proposal to, and award by, the funding Federal agency.
    (3) Timely notification of awards. In order to avoid duplicate 
funding of an SBIR project, agencies shall promptly search the Tech-Net 
Database System for awards for essentially equivalent work. Discussion 
among agencies receiving similar proposals is strongly encouraged 
before an SBIR award is made.
    (4) Participation by women-owned SBCs and socially and economically 
disadvantaged SBCs in the SBIR Program. In order to meet statutory 
requirements for greater inclusion, SBA and the Federal participating 
agencies must conduct outreach efforts to find and place innovative 
women-owned SBCs and socially and economically disadvantaged SBCs in 
the SBIR Program information system. These SBCs will be required to 
compete for SBIR awards on the same basis as all other SBCs. However, 
participating agencies are encouraged to work independently and 
cooperatively with SBA to develop methods to encourage qualified women-
owned SBCs and

[[Page 27731]]

socially and economically disadvantaged SBCs to participate in the SBIR 
Program.
    (d) Agency limitation of participation and use of funds.
    (1) A Federal agency must not use any of its SBIR budget for the 
purpose of funding administrative costs of the program, including costs 
associated with program operations, employee salaries, and other 
associated expenses.
    (2) A Federal agency shall not issue an SBIR funding agreement that 
includes a provision for subcontracting any portion of that agreement 
back to the issuing agency or to any other Federal Government agency or 
other units of the Federal Government. However, an agency may deviate 
from this requirement based on a determination that such subcontracting 
is vital to its mission. Approval by the funding agreement officer for 
each such specific condition must be in writing. (SBA expects that 
agency deviations will not be routine, and will occur only for those 
special SBIR projects where the use of Federal resources is absolutely 
essential to the successful conduct of a project that is vital to the 
mission of the agency, and equivalent resources are not available in 
the private sector.)
    (3) No agency, at its own discretion, may unilaterally cease 
participation in the SBIR Program. R/R&D agency budgets may cause 
fluctuations and trends that must be reviewed in light of SBIR program 
purposes. An agency may be considered by SBA for a phased withdrawal 
from participation in the SBIR Program over a period of time sufficient 
in duration to minimize any adverse impact on SBCs. However, the SBA 
decision concerning such a withdrawal will be made case-by-case basis 
and will depend on significant changes to extramural R/R&D 3-year 
forecasts as found in the annual Budget of the United States Government 
and National Science Foundation breakdowns of total R/R&D obligations 
as published in the Federal Funds for Research and Development. Any 
withdrawal of an SBIR Federal participating agency from the SBIR 
Program will be accomplished in a standardized and orderly manner in 
compliance with these statutorily mandated procedures.
    (4) Voluntary participation in the SBIR Program by Federal agencies 
not otherwise qualified for such participation may be permitted under 
this policy directive. Federal agencies seeking to participate in the 
SBIR Program must submit their written requests to SBA. Voluntary 
participation requires the written approval of the SBA after review of 
the request.

10. Annual Report to the Small Business Administration

    The Act requires a ``simplified, standardized and timely annual 
report'' from the SBIR agencies. The following paragraphs expand on 
this requirement, providing the due date, the kinds of information to 
be included, and the number of copies to be submitted to SBA.
(a) Annual Report Due Date and Number of Copies
    Reporting shall be on an annual basis and will be for the period 
ending September 30 of each fiscal year. A single, hard copy report is 
due to SBA by March 15 of each year. However, if agencies choose to 
send an e-mail version, it should be sent to [email protected]. 
Example: The report for FY 2001 (October 1, 2000--September 30, 2001) 
must be submitted to SBA by March 15, 2002. SBA encourages agencies to 
submit their annual report before the due date of March 15 of each 
year.
(b) Annual Report Content
    (1) Agency total fiscal year, extramural R/R&D total obligations as 
reported to the National Science Foundation pursuant to the annual 
Budget of the United States Government.
    (2) SBIR Program total fiscal year dollars derived by applying the 
statutory per centum to the agencies extramural R/R&D total 
obligations.
    (3) SBIR Program fiscal year dollars obligated through SBIR Program 
funding agreements for Phase I and Phase II.
    (4) Number of topics and subtopics contained in each program 
solicitation.
    (5) Number of proposals received by the agency for each topic and 
subtopic in each program solicitation.
    (6) For both Phase I and Phase II, the awardee's name and address, 
solicitation topic and subtopic, solicitation number, project title, 
and total dollar amount of funding agreement. Identify women-owned 
SBCs, economically and socially disadvantaged SBCs, and Phase II 
awardees with a follow-on funding commitment(s).
    (7) Justification for the award of any funding agreement exceeding 
$125,000 for Phase I or $750,000 for Phase II.
    (8) The number of awardees for whom the Phase I process exceeded 
the 6-month period from the closing date of the SBIR solicitation to 
award of the funding agreement.
    (9) For an agency Phase III award using non-SBIR Federal funds to 
continue a Phase II project, the agency shall instruct the Phase III 
awardee to provide the name, address, project title, and dollar amount 
obligated.
    (10) Awards made under a topic or subtopic wherein only one 
proposal was received shall be reported and justified. Agencies must 
provide name, address, topic or subtopic and dollar amount of award. 
Information must be collected quarterly but updated in agencies' annual 
reports.
    (11) An accounting of Phase I awards made to SBCs that have 
received more than 15 Phase II awards from all agencies in the 
preceding 5 fiscal years. Agencies to report as a minimum: name of 
awarding agency, date of award, funding agreement number, topic or 
subtopic title, amount and date of Phase II funding, and 
commercialization status for each Phase II award.
    (12) If applicable, report the number of National Critical 
Technology topic or subtopic funding agreements, the percentage by 
number and dollar amount of total SBIR awards to such National Critical 
Technologies.
    (13) Report at least annually all instances in which an agency 
pursued research, development, or production of a technology developed 
by a SBC using an award made under the SBIR Program of that agency, and 
determined that it was not practicable to enter into a follow-on non-
SBIR Program funding agreement with the SBC. See Section 9(a)(12). for 
minimum reporting requirements.
    (14) Justification for continuing an STTR Phase I project through 
the SBIR Program using SBIR funds. Explain in detail the rationale for 
this deviation.

11. Responsibilities of SBA

    (a) The SBA's Office of Technology will annually obtain available 
information on the current critical technologies from the National 
Critical Technologies panel (or its successor) and the Secretary of 
Defense and provide such information to the SBIR agencies.
    (b) SBA will request this information in June of each year. The 
data received will be submitted to each of the participating Federal 
agencies and will also be published in the September issue of the SBIR 
Pre-Solicitation Announcement.
    (c) Examples of SBIR Areas to be Monitored by SBA.
    (1) SBIR Funding Allocations. Of major significance to the success 
of the SBIR Program is the magnitude and nature of the SBIR agencies' 
funding allocations identified for fiscal year

[[Page 27732]]

funding agreements. The Act explicitly relates to both the definition 
of the SBIR effort, R/R&D (as defined in the Act and OMB Circular A-
11), and the mathematical methodology for determining fiscal year 
participation levels for all work categorized within the statutory 
definitions. SBA monitors these allocations.
    (2) SBIR Program Solicitation and Award Status. The accomplishment 
of scheduled SBIR events, such as SBIR Program solicitation release and 
the issuance of funding agreements is critical to meeting statutory 
mandates and to operating an effective, useful program. SBA monitors 
these and other operational features of the SBIR Program. SBA does not 
plan to monitor administration of the awards except in instances where 
SBA assistance is requested and is related to a specific SBIR project 
or funding agreement.
    (3) Follow-on Funding Commitments. SBA will monitor whether follow-
on non-Federal funding commitments obtained by Phase II awardees for 
Phase III were considered in the evaluation of Phase II proposals as 
required by the Act.
    (4) Agency Rules and Regulations. It is essential that no policy, 
rule, regulation, or interpretation be promulgated by the SBIR agencies 
that are inconsistent with the Act or this policy directive. SBA's 
monitoring activity will include review of policies, rules, 
regulations, interpretations, and procedures generated to facilitate 
intra-agency SBIR Program implementation.
    (d) The SBA develops, participates in, and, when appropriate and 
feasible, sponsors seminars for innovative women-owned SBCs and 
socially and economically disadvantaged SBCs to inform them of the SBIR 
Program and Federal and commercial assistance and services available 
for SBIR Program participants.
    (e) Standardized Collection of Data--``Technology Resources Access 
Network'' (Tech-Net) Database System Overview.
    The SBA's Office of Technology, as functional program manager for 
the SBIR and the Small Business Technology Transfer (STTR) Programs, is 
required to collect and report to the Congress, information regarding 
awards made to SBCs by each Federal agency participating in these 
programs. The Office of Technology maintains an internal database of 
awards and uses the system to report on technology and demographical 
statistics regarding the SBIR and the STTR Programs. The system also 
stores the 200-word technical abstract for each SBIR and STTR award 
that is prepared by the awardee summarizing the research effort that 
has been supported by the Federal Government. The system also provides 
the Office of Technology with the ability to perform keyword searches 
in many areas, including any part of the name, address, and technical 
abstract of the awardee. The system produces many reports that are used 
in the conduct of audits performed by the General Accounting Office 
(GAO) and to expose potential duplication of research and development 
efforts funded by the SBIR agencies. The Office of Technology, in a 
joint effort with the SBA's Office of the Chief Information Officer, is 
redesigning the Office of Technology's internal awards database system 
to operate on the Internet. The Internet system is titled the 
``Technology Resources Access Network,'' or Tech-Net. Tech-Net offers a 
vast array of user friendly capabilities, and is accessible by the 
public at no charge. Tech-Net allows for the online submission of SBIR/
STTR awards data from all SBIR agencies, a process that until now was 
part manual and part automated. Tech-Net also allows any end-user to 
perform keyword searches and create formatted reports of SBIR/STTR 
awards information. Tech-Net will allow for potential research partners 
to view research and development efforts that are ongoing in the SBIR 
and the STTR Programs, increasing the investment opportunities of the 
SBIR/STTR SBCs in the high tech arena. Tech-Net serves as an excellent 
marketing tool for the small high tech business community, allowing 
investors to view first hand the technical capabilities of SBIR/STTR 
awardees, which will ultimately produce investments, partnerships, and 
strategic alliances resulting in commercialization of SBIR/STTR 
research. Tech-Net also houses legislatively mandated information on 
all SBIR and STTR awards, as well as outcome and output information 
that will be relevant to measuring the effectiveness and success of the 
programs. Agencies can update awardee information and add project 
commercialization and sales data with user names and passwords. This 
can be done via the ``Procurement Marketing and Access Network'' or 
Pro-Net database. Pro-Net is the single source client database for all 
internal and external SBA database systems and contains information 
regarding SBIR and STTR awardees. Username and passwords will be 
assigned only to awardees to provide access to their respective awards 
information maintained in the Pro-Net system. Award data maintained in 
the Tech-Net database can be changed only by the awardee, SBA, or the 
awarding 
SBIR /STTR Federal agency. Project commercialization and sales data can 
only be viewed by Congress, the Government Accounting Office (GAO), 
agencies participating in the SBIR and the STTR Programs, Office of 
Management and Budget (OMB), Office of Science and Technology Policy 
(OSTP), Office of Federal Procurement Policy (OFPP), and other 
authorized persons (e.g., authorized contractors) who are subject to a 
use and nondisclosure agreement with the Federal Government covering 
the use of the database. To use the Tech-Net or Pro-Net database 
systems, visit the website http://tech-net.sba.gov. Online help is 
available.

(1) Public Tech-Net Database (See Appendix II for Data Fields)

    SBA, in consultation with the Federal agencies participating in the 
SBIR and the STTR Programs, develops and maintains a searchable, up-to-
date, electronic database that includes:
    (i) the name, size, location, funding agreement number, and tax 
identification number of each SBC that has received an SBIR or STTR 
Phase I or Phase II award from a Federal agency;
    (ii) a description of each SBIR or STTR Phase I or Phase II award 
received by the SBC including:
    (A) an abstract of the project funded by the award, excluding any 
proprietary information so identified by the awardee;
    (B) the Federal agency making the award; and
    (C) the date and amount of the award.
    (iii) an identification of any business concern or subsidiary 
established for the commercial application of a product or service for 
which an SBIR or STTR award is made; and
    (iv) information regarding mentors and Mentoring Networks, as 
required in the Federal and State Technology (FAST) Partnership Program 
described in Section 12 of this proposed policy directive.

(2) Government Tech-Net Database

    SBA, in consultation with the Federal agencies participating in the 
SBIR and the STTR Programs, develops and maintains a secure database 
that:
    (i) contains, for each Phase II award:
    (A) revenue from the sale of new products or services resulting 
from the research conducted under each Phase II award;
    (B) additional investment from any source, other than Phase I or 
Phase II SBIR or STTR awards, to further the

[[Page 27733]]

research and development conducted under each Phase II award; and
    (C) any other information received in connection with the award 
that the Administrator, in conjunction with the SBIR program managers 
of the participating agencies, considers relevant and appropriate;
    (ii) includes any narrative information that a Phase II awardee 
voluntarily submits to further describe the outputs and outcomes of its 
awards;
    (iii) includes for each applicant that does not receive a Phase I 
or Phase II award: (1) The name, size, location, identifying number 
assigned by the agency, and tax identification number; (2) an abstract 
of the project; and (3) the Federal agency to which the application was 
made;
    (iv) includes any other data collected by or available to any 
Federal agency that such agency considers to be useful for SBIR program 
evaluation; and
    (v) is available for use solely for program evaluation purposes by 
the Federal Government or, in accordance with policy directives issued 
by SBA, or by other authorized persons who are subject to a use and 
nondisclosure agreement with the Federal Government covering the use of 
the database.

(3) Data Collection for Government Tech-Net Database

    (i) Each SBC applying for a Phase II award is required to update 
the appropriate information in the Tech-Net database for any prior 
Phase II award received by that SBC. In meeting this requirement, the 
SBC may apportion sales or additional investment information relating 
to more than one Phase II award among those awards, if it notes the 
apportionment for each award.
    (ii) Each Phase II awardee is required to update the appropriate 
information in the Tech-Net database on that award at the expiration of 
the award period. In addition, the awardee is requested to voluntarily 
update the appropriate information on that award in the Tech-Net 
database annually thereafter for a minimum period of 5 years.
    (iii) Under 15 U.S.C. 638(k)(4) information provided to the 
Government Tech-Net Database is privileged and confidential and not 
subject to disclosure pursuant to 5 U.S.C. 552 (Government Organization 
and Employees); nor shall it be considered to be publication for 
purposes of 35 U.S.C. 102 (a) or (b).
    (iv) SBA will minimize the data reporting requirements of SBCs, 
make updating available electronically, and provide standardized 
procedures.

12. Federal and State Technology (FAST) Partnership Program and 
Rural Outreach Program

(a) Federal and State Technology Partnership Program
    The Small Business Innovation Research Program Reauthorization Act 
of 2000 (Pub. L. 106-554) established the Federal and State Technology 
(FAST) Partnership Program to strengthen the technological 
competitiveness of SBCs in the United States. Congress found that 
programs that foster economic development among small high-technology 
firms vary widely among the States. Thus, the purpose of the FAST 
Program is to improve the participation of small technology firms in 
the innovation and commercialization of new technology, thereby 
ensuring that the United States remains on the cutting edge of research 
and development in the highly competitive arena of science and 
technology. SBA administers the FAST Program. Additional and detailed 
information regarding this program is available electronically at 
www.sba.gov/SBIR.
(b) Rural Outreach Program
    The Rural Outreach Program is authorized by section 9(s) of the 
Small Business Act, 15 U.S.C. 638 (s). The Small Business Innovation 
Research Program Reauthorization Act of 2000, Public Law 106-554, which 
was signed by the President on December 21, 2000, extends the program 
through fiscal year 2005 (September 30, 2005).
    Historically, SBCs located in a relatively small number of States 
have been highly successful in securing awards under the SBIR Program. 
To expand competition under the SBIR and STTR Programs, and to 
encourage the maximum number of SBCs to submit proposals and succeed in 
winning awards, SBA provides Federal assistance to support statewide 
outreach to small high-technology businesses located in States that are 
underrepresented in SBIR/STTR awards. Cooperative Agreements to 
``Eligible States'' are made on a matching funds basis. The awards will 
be made in a ratio of Federal dollars to non-Federal dollars of 2:1, 
with a maximum Federal contribution of $100,000. Assistance provided to 
an Eligible State under this program announcement shall be used by the 
State, in consultation with State and local departments and agencies, 
for programs and activities to increase the participation of SBCs 
located in the State in the SBIR and STTR Programs. Only ``Eligible 
States'' may submit proposals for the Rural Outreach Program. An 
``Eligible State'' is defined in section 9(s)(1) of the Small Business 
Act (15 U.S.C. 638(s)(1)): ``Eligible State'' means a State-(A) if the 
total value of SBIR/STTR awards made to recipient businesses in the 
State during fiscal year 1995 under this section [i.e., under SBIR and 
STTR Programs], was less than $5,000,000 (as reflected in SBA's 
database of fiscal year 1995 awards); and (B) that certifies to the 
Administration that the State will, upon receipt of assistance under 
this subsection, provide matching funds from non-Federal sources in an 
amount that is not less than 50 percent of the amount provided under 
this subsection.
    The 25 States for which the total value of awards issued under the 
SBIR and STTR Programs in fiscal year 1995 was less than $5,000,000 
are: Alaska, Arkansas, Delaware, District of Columbia, Hawaii, Idaho, 
Indiana, Iowa, Kentucky, Louisiana, Maine, Mississippi, Missouri, 
Montana, Nebraska, Nevada, North Dakota, Oklahoma, Puerto Rico, Rhode 
Island, South Carolina, South Dakota, Vermont, West Virginia, and 
Wyoming.

Appendix I: Instructions for SBIR Program Solicitation Preparation

1. General

    Section 9(j) of the Small Business Act (15 U.S.C. 638(j)) 
requires ``***simplified, standardized and timely SBIR 
solicitations'' and for SBIR agencies to utilize a ``uniform 
process'' minimizing the regulatory burden of participation. 
Therefore, the following instructions purposely depart from normal 
Government solicitation formats and requirements. SBIR solicitations 
must be prepared and issued as program solicitations in accordance 
with the following instructions.

2. Limitation in Size of Solicitation

    In the interest of meeting the requirement for simplified and 
standardized solicitations, while also recognizing that the Internet 
has become the main vehicle for distribution, each agency should 
structure its entire SBIR solicitation to produce the least number 
of pages (electronic and printed), consistent with the procurement/
assistance standard operating procedures and statutory requirements 
of the participating Federal agencies.

3. Format

    SBIR Program solicitations must be prepared in a simplified, 
standardized, easy-to-read, easy-to-understand format including a 
cover sheet, a table of contents and the following sections in the 
order listed (content of each section is discussed below):
    1. Program Description.
    2. Definitions.
    3. Proposal Preparation Instructions and Requirements.
    4. Method of Selection and Evaluation Criteria.

[[Page 27734]]

    5. Considerations.
    6. Submission of Proposals.
    7. Scientific and Technical Information Sources.
    8. Submission Forms and Certifications.
    9. Research Topics.

4. Cover Sheet

    The cover sheet or title page of an SBIR Program solicitation 
must clearly identify the solicitation as a SBIR solicitation, 
identify the agency releasing the solicitation, specify date(s) on 
which proposals (contract proposals/grant applications) are due 
under the solicitation, and state the solicitation number or year.

Instructions for Preparation of SBIR Program Solicitation Sections 1 
Through 9

1. Program Description

    (a) Summarize in narrative form the invitation to submit 
proposals and the objectives of the SBIR Program.
    (b) Describe in narrative form the agency's SBIR Program 
including a description of the three phases. Note in your 
description that the solicitation is for Phase I proposals only.
    (c) Describe program eligibility, as follows:
    Eligibility. Each concern submitting a proposal must qualify as 
a SBC for research or R&D purposes at the time of award. In 
addition, the primary employment of the principal investigator must 
be with the SBC at the time of award and during the conduct of the 
proposed research, unless otherwise approved in writing by the 
funding agreement officer. Also, for both Phase I and Phase II, the 
research or R&D work must be performed in the United States. 
However, based on a rare and unique circumstance, for example, a 
supply or material or other item or project requirement that is not 
available in the United States, agencies may allow that particular 
portion of the research or R&D work to be performed or obtained in a 
country outside of the United States. Approval by the funding 
agreement officer for such specific condition(s) must be in writing.
    (d) List name, address and telephone number of agency contacts 
for general information on the SBIR Program solicitation.

2. Definitions

    Whenever terms are used that are unique to the SBIR Program, a 
specific SBIR solicitation or a portion of a solicitation, they will 
be defined in a separate section entitled ``Definitions.'' At a 
minimum, the definitions of ``SBC,'' ``socially and economically 
disadvantaged SBC,'' ``women-owned SBC,'' ``funding agreement,'' and 
``subcontract'' as stated in this proposed policy directive shall be 
included.

3. Proposal Preparation Instructions and Requirements

    The purpose of this section is to inform the applicant on what 
to include in his or her proposal and to set forth limits on what 
may be included. It should also provide guidance to assist 
applicants in improving the quality and acceptance of proposals 
particularly to firms that may not have previous Government 
experience.
    (a) Limitations on Length of Proposal. Include at least the 
following information: (1) SBIR Phase I proposals must not exceed a 
total of 25 pages, including cover page, budget, and all enclosures 
or attachments, unless stated otherwise in the agency solicitation. 
Pages should be of standard size (8 1/2''  x  11''; 21.6 cm  x  27.9 
cm) and should conform to the standard formatting instructions; in 
particular, 2.5 cm margins and type no smaller than 10 point font 
size.
    (2) A notice that no additional attachments, appendices, or 
references beyond the 25-page limitation shall be considered in 
proposal evaluation (unless specifically solicited by an agency) and 
that proposals in excess of the page limitation shall not be 
considered for review or award.
    (b) Proposal Cover Sheet. Every applicant will be required to 
include at least the following information on the first page of 
proposals. Items 8 and 9 are for statistical purposes only.
    (1) Agency and solicitation number or year.
    (2) Topic Number or Letter.
    (3) Subtopic Number or Letter.
    (4) Topic Area.
    (5) Project Title.
    (6) Name and Complete Address of Firm.
    (7) Small Business Certification (by statement or checkbox) as 
follows:
    ``The above concern certifies that it is a SBC and meets the 
definition as stated in this solicitation or that it will meet that 
definition at time of award.''
    (8) Socially and Economically Disadvantaged SBC Certification 
(by statement or checkbox) as follows:
    ``The above concern certifies that it __ does __ does not 
qualify as a socially and economically disadvantaged SBC and meets 
the definition as stated in this solicitation.''
    (9) Women-owned SBC Certification (by statement or checkbox) as 
follows:
    ``The above concern certifies that it does does not qualify as a 
women-owned SBC and meets the definition as stated in this 
solicitation.''
    (10) An information statement regarding duplicate research as 
follows:
    ``The applicant and/or Principal Investigator __ has __ has not 
submitted proposals for essentially equivalent work under other 
Federal program solicitations or __ has __ has not received other 
Federal awards for essentially equivalent work.'' (Identify 
proposals/awards in section III.D.10, ``Similar Proposals and 
Awards'')
    (11) Disclosure permission (by statement or checkbox), such as 
follows, may be included at the discretion of the funding agency: 
``Will you permit the Government to disclose the title and technical 
abstract page of your proposed project, plus the name, address, and 
telephone number of the corporate official of your concern, if your 
proposal does not result in an award, to concerns that may be 
interested in contacting you for further information? Yes __ No__''
    (12) Signature of a company official of the proposing SBC and 
that individual's typed name, title, address, telephone number, and 
date of signature.
    (13) Signature of Principal Investigator or Project Manager 
within the proposing SBC and that individual's typed name, title, 
address, telephone number, and date of signature.
    (14) Legend for proprietary information as described in the 
``Considerations'' section of this program solicitation if 
appropriate. May also be noted by asterisks in the margins on 
proposal pages.
    (c) Data Collection Requirement.
    (1) Each Phase II applicant will be required to provide 
information for the Tech-Net Database System (http://technet.sba.gov). Following are examples of the data to be entered 
by applicants into Tech-Net:
    (i) Any business concern or subsidiary established for the 
commercial application of a product or service for which an SBIR 
award is made.
    (ii) Revenue from the sale of new products or services resulting 
from the research conducted under each Phase II award;
    (iii) Additional investment from any source, other than Phase I 
or Phase II awards, to further the research and development 
conducted under each Phase II award.
    (iv) Update the information in the Tech-Net database for any 
prior Phase II award received by the SBC. The SBC may apportion 
sales or additional investment information relating to more than one 
Phase II award among those awards, if it notes the apportionment for 
each award.
    (2) Each Phase II awardee is required to update the appropriate 
information on the award in the Tech-Net database at the expiration 
of the award period and is requested to voluntarily update the 
information in the Tech-Net database annually thereafter for a 
minimum period of 5 years.
    (d) Abstract or Summary. Applicants will be required to include 
a one-page project summary of the proposed research or R&D including 
at least the following:
    (1) Name and address of SBC.
    (2) Name and title of principal investigator or project manager.
    (3) Agency name, solicitation number, solicitation topic, and 
subtopic.
    (4) Title of project.
    (5) Technical abstract limited to two hundred words.
    (6) Summary of the anticipated results and implications of the 
approach (both Phases I and II) and the potential commercial 
applications of the research.
    (e) Technical Content. SBIR Program solicitations must require 
as a minimum the following to be included in proposals submitted 
thereunder:
    (1) Identification and Significance of the Problem or 
Opportunity. A clear statement of the specific technical problem or 
opportunity addressed.
    (2) Phase I Technical Objectives. State the specific objectives 
of the Phase I research and development effort, including the 
technical questions it will try to answer to determine the 
feasibility of the proposed approach.
    (3) Phase I Work Plan. Include a detailed description of the 
Phase I R/R&D plan. The plan should indicate what will be done, 
where it will be done, and how the R/R&D will be carried out. Phase 
I R/R&D should address the objectives and the questions cited in 
D.2. above. The methods planned to achieve each objective or task 
should be discussed in detail.
    (4) Related R/R&D. Describe significant R/R&D that is directly 
related to the proposal

[[Page 27735]]

including any conducted by the project manager/principal 
investigator or by the proposing SBC. Describe how it relates to the 
proposed effort, and any planned coordination with outside sources. 
The applicant must persuade reviewers of his or her awareness of key 
recent R/R&D conducted by others in the specific topic area.
    (5) Key Personnel and Bibliography of Directly Related Work. 
Identify key personnel involved in Phase I 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 size limitation.
    (6) Relationship with Future R/R&D.
    (i) State the anticipated results of the proposed approach if 
the project is successful (Phase I and II).
    (ii) Discuss the significance of the Phase I effort in providing 
a foundation for the Phase II R/R&D effort.
    (7) Facilities. A detailed description, availability and 
location of instrumentation and physical facilities proposed for 
Phase I should be provided.
    (8) Consultants. Involvement of consultants in the planning and 
research stages of the project is permitted.
    If such involvement is intended, it should be described in 
detail.
    ( 9) Potential Post Applications. Briefly describe:
    (i) Whether and by what means the proposed project appears to 
have potential commercial application.
    (ii) Whether and by what means the proposed project appears to 
have potential use by the Federal Government.
    (10) Similar Proposals or Awards. WARNING--While it is 
permissible with proposal notification to submit identical proposals 
or proposals containing a significant amount of essentially 
equivalent work for consideration under numerous Federal program 
solicitations, it is unlawful to enter into funding agreements 
requiring essentially equivalent effort. If there is any question 
concerning this, it must be disclosed to the soliciting agency or 
agencies before award. If an applicant elects to submit identical 
proposals or proposals containing a significant amount of 
essentially equivalent work under other Federal program 
solicitations, a statement must be included in each such proposal 
indicating:
    (i) The name and address of the agencies to which proposals were 
submitted or from which awards were received.
    (ii) Date of proposal submission or date of award.
    (iii) Title, number, and date of solicitations under which 
proposals were submitted or awards received.
    (iv) The specific applicable research topics for each proposal 
submitted or award received.
    (v) Titles of research projects.
    (vi) Name and title of principal investigator or project manager 
for each proposal submitted or award received.
    (11) Prior SBIR Phase II Awards. If the SBC has received more 
than 15 Phase II awards in the prior 5 fiscal years, submit name of 
awarding agency, date of award, funding agreement number, amount, 
topic or subtopic title, follow-on agreement amount, source, and 
date of commitment and current commercialization status for each 
Phase II. (This required proposal information will not be counted 
toward proposal pages count limitation.)
    (f) Cost Breakdown/Proposed Budget. The solicitation will 
require the submission of simplified cost or budget data.

4. Method of Selection and Evaluation Criteria

    (a) Standard Statement. Essentially the following statement 
shall be included in all SBIR Program solicitations:
    ``All Phase I and II proposals will be evaluated and judged on a 
competitive basis. Proposals will be initially screened to determine 
responsiveness. Proposals passing this initial screening will be 
technically evaluated by engineers or scientists to determine the 
most promising technical and scientific approaches. Each proposal 
will be judged on its own merit. The Agency is under no obligation 
to fund any proposal or any specific number of proposals in a given 
topic. It also may elect to fund several or none of the proposed 
approaches to the same topic or subtopic.''
    (b) Evaluation Criteria.
    (1) The Agency in its evaluation process shall develop a 
standardized method that will consider as a minimum the following 
factors:
    (i) The technical approach and the anticipated agency and 
commercial benefits that may be derived from the research.
    (ii) The adequacy of the proposed effort and its relationship to 
the fulfillment of requirements of the research topic or subtopics.
    (iii) The soundness and technical merit of the proposed approach 
and its incremental progress toward topic or subtopic solution.
    (iv) Qualifications of the proposed principal/key investigators, 
supporting staff, and consultants.
    (v) In Phase II, evaluations of proposals require, among other 
things, consideration of a proposal's commercial potential as 
evidenced by:
    (A) the SBC's record of commercializing SBIR or other research,
    (B) the existence of second phase funding commitments from 
private sector or non-SBIR funding sources,
    (C) the existence of third phase follow-on commitments for the 
subject of the research, and,
    (D) the presence of other indicators of commercial potential of 
the idea.
    Phase II proposals may only be submitted by Phase I award 
winners.
    (2) The factors in B.1. above and other appropriate evaluation 
criteria, if any, shall be specified in the ``Method of Selection'' 
section of SBIR Program solicitations.
    (c) Peer Review. The program solicitation must indicate if the 
SBIR agency contemplates that as a part of the SBIR proposal 
evaluation it will use external peer review.
    (d) Release of Proposal Review Information. After final award 
decisions have been announced, the technical evaluations of the 
applicant's proposal may be provided to the applicant. The identity 
of the reviewer must not be disclosed.

5. Considerations

    This section must include, as a minimum, the following 
information:
    (a) Awards. Indicate the estimated number and type of awards 
anticipated under the particular SBIR Program solicitation in 
question, including:
    (i) Approximate number of Phase I awards expected to be made.
    (ii) Type of funding agreement, i.e., contract, grant or 
cooperative agreement.
    (iii) Whether fee or profit will be allowed.
    (iv) Cost basis of funding agreement, for example, firm-fixed-
price, cost reimbursement, or cost-plus-fixed fee.
    (v) Information on the approximate average dollar value of 
awards for Phase I and Phase II.
    (b) Reports. Describe the frequency and nature of reports that 
will be required under Phase I funding agreements. Interim reports 
should be brief letter reports.
    (c) Payment Schedule. Specify the method and frequency of 
progress and final payment under Phase I and II agreements.
    (d) Innovations, Inventions and Patents.
    (1) Limited Rights Information and Data.
    (i) Proprietary Information. Essentially the following statement 
shall be included in all SBIR solicitations: ``Information contained 
in unsuccessful proposals will remain the property of the applicant. 
The Government may, however, retain copies of all proposals. Public 
release of information in any proposal submitted will be subject to 
existing statutory and regulatory requirements. If proprietary 
information is provided by an applicant in a proposal, which 
constitutes a trade secret, proprietary commercial or financial 
information, confidential personal information or data affecting the 
national security, it will be treated in confidence, to the extent 
permitted by law. This information must be clearly marked by the 
applicant with the term ``confidential proprietary information'' and 
the following legend must appear on the title page of the proposal:
    ``For any purpose other than to evaluate the proposal, this data 
shall not be disclosed outside the Government and shall not be 
duplicated, used, or disclosed in whole or in part, provided that if 
a funding agreement is awarded to this applicant as a result of or 
in connection with the submission of this data, the Government shall 
have the right to duplicate, use, or disclose the data to the extent 
provided in the funding agreement and pursuant to applicable law. 
This restriction does not limit the Government's right to use 
information contained in the data if it is obtained from another 
source without restriction. The data subject to this restriction are 
contained on pages ____of this proposal.'' Any other legend may be 
unacceptable to the Government and may constitute grounds for 
removing the proposal from further consideration, without assuming 
any liability for inadvertent disclosure. The Government will limit 
dissemination of such information to within official channels.''

[[Page 27736]]

    (ii) Alternative To Minimize Proprietary Information. Agencies 
may elect to instruct applicants to:
    (A) Limit proprietary information to only that absolutely 
essential to their proposal.
    (B) Provide proprietary information on a separate page with a 
numbering system to key it to the appropriate place in the proposal.
    (iii) Rights in Data Developed Under SBIR Funding Agreements. To 
notify the SBC of the policy stated in Section 8(b) of this proposed 
policy directive, the following statement will be included in all 
SBIR Program solicitations: ``These SBIR data are furnished with 
SBIR rights under Funding Agreement No. __ (and subcontract __ if 
appropriate). For a period of 4 years after acceptance of all items 
to be delivered under this funding agreement, the Government agrees 
to use this data for Government purposes only, and it shall not be 
disclosed outside the Government (including disclosure for 
procurement purposes) during such period without permission of the 
awardee, except that, subject to the foregoing use and disclosure 
prohibitions, such data may be disclosed for use by support 
contractors. After the 4-year period, the Government has a royalty-
free license to use, and to authorize others to use on its behalf, 
this data for Government purposes, but is relieved of all disclosure 
prohibitions and assumes no liability for unauthorized use of this 
data by third parties. This Notice shall be affixed to any 
reproductions of this data, in whole or in part.''
    (iv) Copyrights. Include an appropriate statement concerning 
copyrights and publications; for example: ``With prior written 
permission of the contracting officer, the awardee normally may 
copyright and publish (consistent with appropriate national security 
considerations, if any) material developed with (agency name) 
support. (Agency name) receives a royalty-free license for the 
Federal Government and requires that each publication contain an 
appropriate acknowledgement and disclaimer statement.''
    (v) Patents. Include an appropriate statement concerning 
patents. For example: ``Small business concerns normally may retain 
the principal worldwide patent rights to any invention developed 
with Government support. The Government 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, the Government will not make 
public any information disclosing a Government-supported invention 
for a 4-year period to allow the awardee a reasonable time to pursue 
a patent.''
    (vi) Invention Reporting. Include requirements for reporting 
invention Include appropriate information concerning the reporting 
of inventions, for example: ``SBIR awardees must report inventions 
to the awarding agency within 2 months of the inventor's report to 
the awardee. The reporting of inventions may be accomplished by 
submitting paper documentation, including fax.''

    Note: Some agencies provide electronic reporting of inventions 
through the NIH Edison Invention Reporting System. Use of the Edison 
system satisfies all invention reporting requirements mandated by 
the Code of Federal Regulations, Title 37 CFR Part 401, with 
particular emphasis on the Standard Patent Rights Clauses, Section 
401.14. Access to the system is through a secure interactive 
Internet site, http://www.iedison.gov, to ensure that all 
information submitted is protected. All agencies are encouraged to 
use the Edison System. In addition to fulfilling reporting 
requirements, Edison notifies the user of future time sensitive 
deadlines with enough lead-time to avoid the possibility of loss of 
patent rights due to administrative oversight.

    (e) Cost-Sharing. Include a statement essentially as follows: 
``Cost-sharing is permitted for proposals under this program 
solicitation; however, cost-sharing is not required. Cost-sharing 
will not be an evaluation factor in consideration of your Phase I 
proposal.''
    (f) Profit or Fee. Include a statement on the payment of profit 
or fee on awards made under the SBIR Program solicitation.
    (g) Joint Ventures or Limited Partnerships. Include essentially 
the following language: ``Joint ventures and limited partnerships 
are eligible provided the entity created qualifies as a small 
business concern as defined in this program solicitation.''
    (h) Research and Analytical Work. Include essentially the 
following statement:
    (1) ``For Phase I a minimum of two-thirds of the research and/or 
analytical effort must be performed by the proposing small business 
concern unless otherwise approved in writing by the funding 
agreement officer.
    (2) For Phase II a minimum of one-half of the research and/or 
analytical effort must be performed by the proposing small business 
concern unless otherwise approved in writing by the funding 
agreement officer.''
    (i) Awardee Commitments. To meet the legislative requirement 
that SBIR solicitations be simplified, standardized and uniform, 
clauses expected to be in or required to be included in SBIR funding 
agreements shall not be included in full or by reference in SBIR 
Program solicitations. Rather, applicants shall be advised that they 
will be required to make certain legal commitments at the time of 
execution of funding agreements resulting from SBIR Program 
solicitations. Essentially, the following statement shall be 
included in the ``Consideration'' section of SBIR Program 
solicitations: ``Upon award of a funding agreement, the awardee will 
be required to make certain legal commitments through acceptance of 
numerous clauses in Phase I funding agreements. The outline that 
follows is illustrative of the types of clauses to which the 
contractor would be committed. This list should not be understood to 
represent a complete list of clauses to be included in Phase I 
funding agreements, or to be specific wording of such clauses. 
Copies of complete terms and conditions are available upon 
request.''
    (j) Summary Statements. The following are illustrative of the 
type of summary statements to be included immediately following the 
statement in the subparagraph I. These statements are examples only 
and may vary depending upon type of funding agreement.
    (1) Standards of Work. Work performed under the funding 
agreement must conform to high professional standards.
    (2) Inspection. Work performed under the funding agreement is 
subject to Government inspection and evaluation at all times.
    (3) Examination of Records. The Comptroller General (or a duly 
authorized representative) shall have the right to examine any 
directly pertinent records of the awardee involving transactions 
related to this funding agreement.
    (4) Default. The Government may terminate the funding agreement 
if the contractor fails to perform the work contracted.
    (5) Termination for Convenience. The funding agreement may be 
terminated at any time by the Government if it deems termination to 
be in its best interest, in which case the awardee will be 
compensated for work performed and for reasonable termination costs.
    (6) Disputes. Any dispute concerning the funding agreement that 
cannot be resolved by agreement shall be decided by the contracting 
officer with right of appeal.
    (7) Contract Work Hours. The awardee may not require an employee 
to work more than 8 hours a day or 40 hours a week unless the 
employee is compensated accordingly (e.g., overtime pay).
    (8) Equal Opportunity. The awardee will not discriminate against 
any employee or applicant for employment because of race, color, 
religion, sex, or national origin.
    (9) Affirmative Action for Veterans. The awardee will not 
discriminate against any employee or application for employment 
because he or she is a disabled veteran or veteran of the Vietnam 
era.
    (10) Affirmative Action for Handicapped. The awardee will not 
discriminate against any employee or applicant for employment 
because he or she is physically or mentally handicapped.
    (11) Officials Not To Benefit. No Government official shall 
benefit personally from the SBIR funding agreement.
    (12) Covenant Against Contingent Fees. No person or agency has 
been employed to solicit or secure the funding agreement upon an 
understanding for compensation except bonafide employees or 
commercial agencies maintained by the awardee for the purpose of 
securing business.
    (13) Gratuities. The funding agreement may be terminated by the 
Government if any gratuities have been offered to any representative 
of the Government to secure the contract.
    (14) Patent Infringement. The awardee shall report each notice 
or claim of patent infringement based on the performance of the 
funding agreement.
    (15) American Made Equipment and Products. When purchasing 
equipment or a product under the SBIR funding agreement, purchase 
only American-made items whenever possible.
    (k) Additional Information. Information pertinent to an 
understanding of the

[[Page 27737]]

administration requirements of SBIR proposals and funding agreements 
not included elsewhere shall be included in this section. As a 
minimum, statements essentially as follows shall be included under 
``Additional Information'' in SBIR Program solicitations:
    (1) This program solicitation is intended for informational 
purposes and reflects current planning. If there is any 
inconsistency between the information contained herein and the terms 
of any resulting SBIR funding agreement, the terms of the funding 
agreement are controlling.
    (2) Before award of an SBIR funding agreement, the Government 
may request the applicant to submit certain organizational, 
management, personnel, and financial information to assure 
responsibility of the applicant.
    (3) The Government is not responsible for any monies expended by 
the applicant before award of any funding agreement.
    (4) This program solicitation is not an offer by the Government 
and does not obligate the Government to make any specific number of 
awards. Also, awards under the SBIR Program are contingent upon the 
availability of funds.
    (5) The SBIR Program is not a substitute for existing 
unsolicited proposal mechanisms. Unsolicited proposals shall not be 
accepted under the SBIR Program in either Phase I or Phase II.
    (6) If an award is made pursuant to a proposal submitted under 
this SBIR Program solicitation, the contractor or grantee or party 
to a cooperative agreement will be required to certify that he or 
she has not previously been, nor is currently being, paid for 
essentially equivalent work by any agency of the Federal Government.

6. Submission of Proposals

    (a) This section shall clearly specify the closing date on which 
all proposals are due to be received.
    (b) This section shall specify the number of copies of the 
proposal that are to be submitted.
    (c) This section shall clearly set forth the complete mailing 
and/or delivery address(es) where proposals are to be submitted.
    (d) This section may include other instructions such as the 
following:
    (1) Bindings. Please do not use special bindings or covers. 
Staple the pages in the upper left corner of the cover sheet of each 
proposal.
    (2) Packaging. All copies of a proposal should be sent in the 
same package.

7. Scientific and Technical Information Sources

    Wherever descriptions of research topics or subtopics include 
reference to publications, information on where such publications 
will normally be available shall be included in a separate section 
of the solicitation entitled ``Scientific and Technical Information 
Sources.''

8. Research Topics

    Describe the research or R&D topics and subtopics for which 
proposals are being solicited sufficiently to inform the applicant 
of technical details of what is desired while leaving sufficient 
flexibility in order to obtain the greatest degree of creativity and 
innovation consistent with the overall objectives of the SBIR 
Programs.

9. Submission Forms and Certifications

    Multiple copies of proposal preparation forms necessary to the 
contracting and granting process may be required. This section may 
include Proposal Summary, Proposal Cover, Budget, Checklist, and 
other forms the sole purpose of which is to meet the mandate of law 
or regulation and simplify the submission of proposals. This section 
may also include certifying forms required by legislation, 
regulation or standard operating procedures, to be submitted by the 
applicant to the contracting or granting agency. This would include 
certifying forms such as those for the protection of human and 
animal subjects.

Appendix II: Tech-Net Data Fields For Public Database

    Following are the data fields pertaining to the Public Tech-Net 
DataBase described in Section 11.e.1. of this proposed policy 
directive.
    (a) For all Agency SBIR/STTR Annual Data Submissions to the SBA

----------------------------------------------------------------------------------------------------------------
                 Field name                             Type              Width             Description
----------------------------------------------------------------------------------------------------------------
Program Identification.....................  Numeric...................        1  SBIR/STTR Award Program
                                                                                   Identifier* (see below)
Company....................................  Char......................       80  Company Name.*
Street1....................................  Char......................       80  Street Address 1.*
Street2....................................  Char......................       80  Street Address 2.
City.......................................  Char......................       40  City.*
State......................................  Char......................        2  State.*
Zip........................................  Numeric...................        5  Zip.*
Zip4.......................................  Numeric...................        4  Zip + 4.
Minority Code..............................  Numeric...................        1  Minority code indicator 0 =
                                                                                   yes 1 = no. *
Women......................................  Numeric...................        1  Women-owned company indicator
                                                                                   0=yes 1=no.*
Contact First..............................  Char......................       40  Company Official contact first
                                                                                   name.
Contact Last...............................  Char......................       40  Contact last name.
Contact Middle Init........................  Char......................        1  Contact middle initial.
Contact Title..............................  Char......................       40  Contact Official title.
Contact Phone..............................  Char......................       10  Contact Official phone.
Contact Email Address......................  Char......................       50  Contact email address.
Employees..................................  Numeric...................        5  Number of employees.
Agency Code................................  Numeric...................        2  Awarding agency name (ex. DOD)
                                                                                   * (see below).
Branch.....................................  Number....................        1  Awarding DOD branch name (ex.
                                                                                   Navy) (see below).
Phase......................................  Numeric...................        1  Phase number 1 or 2.*
Award Year.................................  Numeric...................        4  Phase award year.*
Award Amount...............................  Numeric...................       10  Phase award amount.*
PI First...................................  Char......................       40  Principal Investigator First
                                                                                   Name.*
PI Last....................................  Char......................       40  Principal Investigator Last
                                                                                   Name.*
PI Middle Init.............................  Char......................        1  Principal Investigator middle
                                                                                   initial.
PI Title...................................  Char......................       40  Principal Investigator Title.
PI Phone...................................  Char......................       10  Principal Investigator phone.
PI Email Address...........................  Char......................       50  Principal Investigator email
                                                                                   address.
Topic Code.................................  Char......................       15  Agency Solicitation Topic
                                                                                   Number.*
RI TYPE....................................  Numeric...................        1  Type of research
                                                                                   institution(see below).
RI Name....................................  Char......................       80  Research institution.
RI Street 1................................  Char......................       80  Research institution address.
RI Street 2................................  Char......................       80  Research institution address.
RI City....................................  Char......................       40  Research institution city.
RI State...................................  Char......................        2  Research institution State.
RI Zip.....................................  Numeric...................        5  Research institution Zip.
RI Zip4....................................  Numeric...................        4  Research institution Zip + 4.

[[Page 27738]]

 
RI Official First..........................  Char......................       40  Research institution Official
                                                                                   First Name.
RI Official Last...........................  Char......................       40  Research institution Official
                                                                                   Last Name.
RI Official Initial........................  Char......................        1  Research institution Official
                                                                                   Middle Initial.
RI Official Phone..........................  Char......................       10  ..............................
Tracking Number............................  Char......................       20  Agency key identifier
                                                                                  (Internal number scheme).*
TIN/EIN....................................  Char......................       10  Taxpayer/Employer
                                                                                   Identification number, *
                                                                                   Prefix with 1 for EIN 2 for
                                                                                   Social Security Number.
Contract/Grant Number......................  Char......................       20  Agency award contract/grant
                                                                                   number.
Solicitation Number........................  Char......................       20  Solicitation Number.
Solicitation Year..........................  Numeric...................   4 Year  Solicitation.
                                                                          of the
Title......................................  Char......................      800  Title of research project. *
Tracking Number............................  Char......................       20  Agency key identifier
                                                                                   (Internal number scheme).*
Abstract...................................  Char......................     1500  Technical abstract (500
                                                                                   words).
Tracking Number............................  Char......................       20  Agency key identifier
                                                                                   (Internal number scheme).*
Abstract SeqNmb............................  Numeric...................        1  ..............................
Results....................................  Char......................     1000  --Project anticipated results.
Tracking Number............................  Char......................       20  Agency key identifier
                                                                                   (Internal number scheme).*
Comments...................................  Char......................     1000  --Project comments.
Tracking Number............................  Char......................       20  Agency key identifier
                                                                                   (Internal number scheme).*
Industry Share Amount......................  Numeric...................       10  ATP Program Cost Share Amount.
Cost Share Tracking #......................  Char......................       20  ATP Cost Share Tracking
                                                                                   Number.
----------------------------------------------------------------------------------------------------------------

    Note: Those fields denoted with an asterisk are deemed mandatory 
in all agency submissions. It is understood that all agencies will 
not have data for each data field listed above. Each agency must 
ensure that data submissions to the SBA include all of the data 
fields above, even if they are empty.

------------------------------------------------------------------------
              Code                      Research Institution Types
------------------------------------------------------------------------
1..............................  Nonprofit college or university.
2..............................  Domestic nonprofit research
                                  organization.
3..............................  Federally funded research and
                                  development center (FFDRC).
------------------------------------------------------------------------

(b) Codes

(1) Program Identification Code

    0-STTR (Small Business Technology Transfer)
    1-SBIR (Small Business Innovation Research)
    2-ATP (Advanced Technology Program)

(2) Agency Codes 1 DOD (Department of Defense)

    2-DOE (Department of Energy)
    3-NASA (National Aeronautics and Space Administration)
    4-HHS (Health and Human Services)
    5-NSF (National Science Foundation)
    6-DOT (Department of Transportation)
    7-EPA (Environmental Protection Agency)
    8-ED (Department of Education)
    9-DOA (Department of Agriculture)
    10-DOC (Department of Commerce)
    11-NIST (National Institute of Standards and Technology)

(3) Branch Codes

    1-AF (Department of the Air Force)
    2-ARMY (Department of the Army)
    3-BMDO (Ballistic Missile Defense Organization)
    4-DARP (Defense Advanced Research Projects Agency)
    5-DSWA (Defense Special Weapons Agency)
    6-NAVY (Department of the Navy)
    7-OSD (Office of the Secretary of Defense)
    8-SOCO (Special Operations Command)
    9-NIMA (National Imaging and Mapping Agency)

(4) If any new codes, please advise the Office of Technology.

[FR Doc. 01-12583 Filed 5-17-01; 8:45 am]
BILLING CODE 8010-01-P
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