National Aeronautics and Space Administration
Small Business Innovation Research & Technology Transfer 2003 Program Solicitations

Chapter 5. Considerations

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5.1 Awards
5.2 Phase I Reporting
5.3 Payment Schedule for Phase I
5.4 Release of Proposal Information
5.5 Non-NASA Reviewers
5.6 Final Disposition of Proposals
5.7 Proprietary Information in the Proposal Submission
5.8 Limited Rights Information and Data
5.9 Cost Sharing
5.10 Profit or Fee
5.11 Joint Ventures and Limited Partnerships
5.12 Similar Awards and Prior Work
5.13 Contractor Commitments
5.14 Additional Information
5.15 Property and Facilities
5.16 False Statements

5. Considerations

5.1 Awards

5.1.1 Availability of Funds. Both Phase I and Phase II awards are subject to availability of funds.NASA has no obligation to make any specific number of Phase I or Phase II awards based on this Solicitation, and may elect to make several or no awards in any specific technical topic or subtopic.

SBIR		STTR
NASA plans to announce the selection of approximately 300 proposals resulting from this Solicitation, for negotiation of Phase I contracts with values not exceeding $70,000. Following contract negotiations and awards, Phase I contractors will have up to 6 months to carry out their programs, prepare their final reports, and submit Phase II proposals. NASA anticipates that approximately 40 percent of the successfully completed Phase I projects from the SBIR 2003 Solicitation will be selected for Phase II. Phase II agreements are fixed-price contracts with performance periods not exceeding 24 months and funding not exceeding $600,000.		NASA plans to announce the selection of approximately 40 proposals resulting from this Solicitation, for negotiation of Phase I contracts with values not exceeding $100,000. Following contract negotiations and awards, Phase I contractors will have up to 12 months to carry out their programs, prepare their final reports, and submit Phase II proposals. NASA anticipates that approximately 40 percent of the successfully completed Phase I projects from the STTR 2003 Solicitation will be selected for Phase II. Phase II agreements are fixed-price contracts with performance periods not exceeding 24 months and funding not exceeding $600,000.

5.1.2 Contracting. Fixed-price contracts will be issued for both Phase I and Phase II awards.Simplified contract documentation is employed; however, SBCs selected for award can reduce processing time by examining the procurement documents, submitting signed representations and certifications, and responding to the Contracting Officer in a timely manner. NASA will make a Phase I model contract and other documents available to the public on the NASA SBIR/STTR homepage (http://sbir.nasa.gov) at the time of the selection announcement. From the time of proposal selection until the award of a contract, only the Contracting Officer is authorized to commit the Government, and all communications must be through the Contracting Officer.

Note: Costs incurred prior to and in anticipation of award of a contract are entirely the risk of the contractor in the event that a contract is not subsequently awarded.

5.2 Phase I Reporting

Interim progress reports are required as described in the contract. These reports shall document progress made on the project and activities required for completion to provide NASA the basis for determining whether the payment is warranted.

A final report must be submitted to NASA upon completion of the Phase I R/R&D effort in accordance with contract provisions. It shall elaborate the project objectives, work carried out, results obtained, and assessments of technical merit and feasibility. The final report shall include a single-page summary as the first page, in a format provided in the Phase I contract, identifying the purpose of the R/R&D effort and describing the findings and results, including the degree to which the Phase I objectives were achieved, and whether the results justify Phase II continuation. The potential applications of the project results in Phase III either for NASA or commercial purposes shall also be described. The final project summary is to be submitted without restriction for NASA publication.

All reports are required to be submitted electronically via the SBIR/STTR homepage.

5.3 Payment Schedule for Phase I

Payments can be authorized as follows: one-third at the time of award, one-third at project mid-point after award, and the remainder upon acceptance of the final report by NASA. The first two payments will be made 30 days after receipt of valid invoices. The final payment will be made 30 days after acceptance of the final report, the New Technology Report, and other deliverables as required by the contract. Electronic funds transfer will be employed and offerors will be required to submit account data if selected for contract negotiations.

5.4 Release of Proposal Information

In submitting a proposal, the offeror agrees to permit the Government to disclose publicly the information contained on the Proposal Cover (Form A) and the Proposal Summary (Form B). Other proposal information (data) is considered to be the property of the offeror, and NASA will protect it from public disclosure to the extent permitted by law including the Freedom of Information Act.

5.5 Non-NASA Reviewers

In addition to Government personnel, NASA, at its discretion and in accordance with 1815.207-71 of the NASA FAR Supplement, may utilize qualified individuals from outside the Government in the proposal review process. Any decision to obtain an outside evaluation shall take into consideration requirements for the avoidance of organizational or personal conflicts of interest and the competitive relationship, if any, between the prospective contractor or subcontractor(s) and the prospective outside evaluator. Any such evaluation will be under agreement with the evaluator that the information (data) contained in the proposal will be used only for evaluation purposes and will not be further disclosed.

5.6 Final Disposition of Proposals

The Government retains ownership of proposals accepted for evaluation, and such proposals will not be returned to the offeror. Copies of all evaluated Phase I proposals will be retained for one year after the Phase I selections have been made, after which time unsuccessful proposals will be destroyed. Successful proposals will be retained in accordance with contract file regulations.

5.7 Proprietary Information in the Proposal Submission

It is NASA's policy to use information (data) included in proposals for evaluation purposes only. Public release of information in any proposal submitted will be subject to existing statutory and regulatory requirements. If information consisting of a trade secret, proprietary commercial or financial information, or private personal information is provided in a proposal, NASA will treat in confidence the proprietary information provided the following legend appears 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 the offeror 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. 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 in pages _____ of this proposal."

Note: Do not label the entire proposal proprietary. The Proposal Cover (Form A) ,the Proposal Summary (Form B), and the Optional Briefing Chart should not contain proprietary information.

5.8 Limited Rights Information and Data

Rights to data used in, or first produced under, any Phase I or Phase II contract are specified in the clause at FAR 52.227-20, Rights in Data--SBIR/STTR Program. The clause provides for rights consistent with the following:

5.8.1 Non Proprietary Data. Some data of a general nature are to be furnished to NASA without restriction (i.e.,with unlimited rights) and may be published by NASA. These data will normally be limited to the project summaries accompanying any periodic progress reports and the final reports required to be submitted. The requirement will be specifically set forth in any contract resulting from this Solicitation.

5.8.2 Proprietary Data. When data that is required to be delivered under an SBIR/STTR contract qualifies as "proprietary," i.e.,either data developed at private expense that embody trade secrets or are commercial or financial and confidential or privileged, or computer software developed at private expense that is a trade secret, the contractor, if the contractor desires to continue protection of such proprietary data, shall not deliver such data to the Government, but instead shall deliver form, fit, and function data.

5.8.3 Non Disclosure Period. The Government, for a period of 4 years from acceptance of all items to be delivered under an SBIR/STTR contract, shall use the data, i.e.,data first produced by the contractor in performance of the contract, where such data are not generally known, and which data without obligation as to its confidentiality have not been made available to others by the contractor or are not already available to the Government, agrees to use these data for Government purposes. These data shall not be disclosed outside the Government (including disclosure for procurement purposes) during the 4-year period without permission of the contractor, except that such data may be disclosed for use by support contractors under an obligation of confidentiality. After the 4-year period, the Government has a royalty-free license to use, and to authorize others to use on its behalf, these data for Government purposes, but the Government is relieved of all disclosure prohibitions and assumes no liability for unauthorized use by third parties.

5.8.4 Copyrights. Subject to certain licenses granted by the contractor to the Government, the contractor receives copyright to any data first produced by the contractor in the performance of an SBIR/STTR contract.

5.8.5 Patents. The contractor may normally elect title to any inventions made in the performance of an SBIR/STTR contract.The Government receives a nonexclusive license to practice or have practiced for or on behalf of the Government each such invention throughout the world. 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.

In accordance with the Patent Rights Clause (FAR 52.227-11), SBIR/STTR contractors must disclose all subject inventions, which means any invention or discovery which is or may be patentable and is conceived or first actually reduced to practice in the performance of the contract. Once disclosed, the contractor has 2 years to decide whether to elect title. If the contractor fails to do so within the 2-year time period, the Government has the right to obtain title.

To the extent authorized by 35 USC 205, the Government will not make public any information disclosing such inventions, allowing the contractor the allowable time to file a patent.

Costs associated with patent applications are not allowable.

5.8.6 Invention Reporting. SBIR awardees must report inventions to the awarding agency within 2 months of the inventor's report to the awardee.The reporting of inventions should be accomplished in accordance with the negotiated contract.

5.9 Cost Sharing

Cost sharing is permitted, but not required for proposals under this Solicitation. Cost sharing, if included, should be shown in the summary budget but not in items labeled "AMOUNT REQUESTED." No profit will be paid on the cost-sharing portion of the contract.

STTR: If cost sharing is proposed, then these added funds shall be included in the 40/30 work percentage distribution and reflected in the Summary Budget (Form C).

5.10 Profit or Fee

Both Phase I and Phase II contracts may include a reasonable profit. The reasonableness of proposed profit is determined by the Contracting Officer during contract negotiations.

5.11 Joint Ventures and Limited Partnerships

Both joint ventures and limited partnerships are permitted, provided the entity created qualifies as an SBC in accordance with the definition in Section 2.12. A statement of how the work load will be distributed, managed, and charged should be included in the proposal. A copy or comprehensive summary of the joint venture agreement or partnership agreement should be appended to the proposal. This will not count as part of the 25-page limit for the Phase I proposal.

5.12 Similar Awards and Prior Work

If an award is made pursuant to a proposal submitted under either SBIR or STTR Solicitation, the firm will be required to certify that it has not previously been paid nor is currently being paid for essentially equivalent work by any agency of the Federal Government. Failure to acknowledge or report similar or duplicate efforts can lead to the termination of contracts or civil or criminal penalties.

5.13 Contractor Commitments

Upon award of a contract, the contractor will be required to make certain legal commitments through acceptance of numerous clauses in the Phase I contract. The outline that follows illustrates the types of clauses that will be included. This is not a complete list of clauses to be included in Phase I contracts, nor does it contain specific wording of these clauses. Copies of complete provisions will be made available prior to contract negotiations.

5.13.1 Standards of Work. Work performed under the contract must conform to high professional standards.Analyses, equipment, and components for use by NASA will require special consideration to satisfy the stringent safety and reliability requirements imposed in aerospace applications.

5.13.2 Inspection. Work performed under the contract is subject to Government inspection and evaluation at all reasonable times.

5.13.3 Examination of Records. The Comptroller General (or a duly authorized representative) shall have the right to examine any directly pertinent records of the contractor involving transactions related to the contract.

5.13.4 Default. The Government may terminate the contract if the contractor fails to perform the contracted work.

5.13.5 Termination for Convenience. The contract may be terminated by the Government at any time if it deems termination to be in its best interest, in which case the contractor will be compensated for work performed and for reasonable termination costs.

5.13.6 Disputes. Any dispute concerning the contract that cannot be resolved by mutual agreement shall be decided by the Contracting Officer with right of appeal.

5.13.7 Contract Work Hours. The contractor may not require a non-exempt employee to work more than 40 hours in a work week unless the employee is paid for overtime.

5.13.8 Equal Opportunity. The contractor will not discriminate against any employee or applicant for employment because of race, color, religion, age, sex, or national origin.

5.13.9 Affirmative Action for Veterans. The contractor will not discriminate against any employee or applicant for employment because he or she is a disabled veteran or veteran of the Vietnam era.

5.13.10 Affirmative Action for Handicapped. The contractor will not discriminate against any employee or applicant for employment because he or she is physically or mentally handicapped.

5.13.11 Officials Not to Benefit. No member of or delegate to Congress shall benefit from an SBIR or STTR contract.

5.13.12 Covenant Against Contingent Fees. No person or agency has been employed to solicit or to secure the contract upon an understanding for compensation except bona fide employees or commercial agencies maintained by the contractor for the purpose of securing business.

5.13.13 Gratuities. The contract may be terminated by the Government if any gratuities have been offered to any representative of the Government to secure the contract.

5.13.14 Patent Infringement. The contractor shall report to NASA each notice or claim of patent infringement based on the performance of the contract.

5.13.15 American-Made Equipment and Products. Equipment or products purchased under an SBIR or STTR contract must be American-made whenever possible. <

5.13.16 Export Control Laws. The contractor shall comply with all U.S. export control laws and regulations, including the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR).

5.14 Additional Information

5.14.1 Precedence of Contract Over Solicitation. This Program Solicitation reflects current planning. If there is any inconsistency between the information contained herein and the terms of any resulting SBIR/STTR contract, the terms of the contract are controlling.

5.14.2 Evidence of Contractor Responsibility. Before award of an SBIR or STTR contract, the Government may request the offeror to submit certain organizational, management, personnel, and financial information to establish responsibility of the offeror.Contractor responsibility includes all resources required for contractor performance, i.e., financial capability, work force, and facilities.

5.14.3 Central Contractor Registration: Offerors should be aware of the requirement to register in the Central Contractor Registration (CCR) database prior to contract award. To avoid a potential delay in contract award, offerors are strongly encouraged to register prior to submitting a proposal.

The CCR database is the primary repository for contractor information required for the conduct of business with NASA. It is maintained by the Department of Defense. To be registered in the CCR database, all mandatory information, which includes the DUNS or DUNS+4 number, and a CAGE code, must be validated in the CCR system. The DUNS number or Data Universal Number System is a 9-digit number assigned by Dun and Bradstreet Information Services (http://www.dnb.com) to identify unique business entities. The DUNS+4 is similar, but includes a 4-digit suffix that may be assigned by a parent (controlling) business concern. The CAGE code or Commercial Government and Entity Code is assigned by the Defense Logistics Information Service (DLIS) to identify a commercial or Government entity. If an SBC does not have a CAGE code, one will be assigned during the CCR registration process.

The DoD has established a goal of registering an applicant in the CCR database within 48 hours after receipt of a complete and accurate application via the Internet. However, registration of an applicant submitting an application through a method other than the Internet may take up to 30 days. Therefore, offerors that are not registered should consider applying for registration immediately upon receipt of this solicitation. Offerors and contractors may obtain information on CCR registration and annual confirmation requirements via the Internet at http://www.ccr.gov or by calling 888-CCR-2423 (888-227-2423).

5.15 Property and Facilities

In accordance with the Federal Acquisition Regulations (FAR) Part 45, it is NASA's policy not to provide facilities (capital equipment, tooling, test and computer facilities, etc.) for the performance of work under contract. An SBC will furnish its own facilities to perform the proposed work as an indirect cost to the contract. Special tooling required for a project may be allowed as a direct cost.

When an SBC cannot furnish its own facilities to perform required tasks, an SBC may propose to acquire the use of available non Government facilities. Rental or lease costs may be considered as direct costs as part of the total funding for the project. If unique requirements force an offeror to acquire facilities under a NASA contract, they will be purchased as Government Furnished Equipment (GFE) and will be titled to the Government. An offeror may propose the use of unique or one-of-a-kind Government facilities if essential for the research. (See Section 3.3.4).

If a proposed project or product demonstration requires a Government facility for successful completion, the offeror must provide a statement, signed by the appropriate Government official at the facility, verifying that it will be available for the required effort. The proposal should also include relevant information on the funding sources(s) (private, other Government, internal) for the effort.

5.16 False Statements

Knowingly and willfully making any false, fictitious, or fraudulent statements or representations may be a felony under the Federal Criminal False Statement Act (18 U.S.C. Sec 1001), punishable by a fine of up to $10,000, up to five years in prison, or both.

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