National Aeronautics and Space Administration
Small Business Technology Transfer 2000 Program Solicitation

Chapter 3. Proposal Preparation Instructions and Requirements

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3.1 Fundamental Considerations
3.2 Phase-I Proposal Requirements
3.3 Phase-II Proposal Requirements

The STTR Phase-I proposal must provide sufficient information to convince NASA that the proposed SBC/RI cooperative effort represents a sound approach for converting technical information resident at the RI into a product or service that meets a need described in a Solicitation research topic. It must also identify the eventual commercial application potential of the product or service and discuss how the SBC would bring it to market.

Multiple Proposal Submissions. An offeror may submit different proposals in response to any number of topics, but every proposal must be based on an unique innovation, must be limited in scope to just one topic, and may be submitted only under that topic. Submitting substantially equivalent proposals to several topics is not permitted and may result in all such proposals being rejected without evaluation.

End Deliverables. The deliverable item at the end of a Phase-I contract shall be a professional quality report that justifies, validates, and defends the experimental and theoretical work accomplished. Delivery of a product or service with the Phase-I report may be desirable, but it is not a requirement.

Deliverable items for Phase-II contracts shall include products or services in addition to professional quality reports of further developments or applications of the Phase-I results. These deliverables may include prototypes, models, software, or complete products or services. The reported results of Phase-II must address and provide the basis for validating the innovation and the potential for implementation of commercial applications.

3.2 Phase-I Proposal Requirements

3.2.1 General Requirements:

Page Limitation. A Phase-I STTR proposal shall not exceed a total of 25 standard 8 1/2 x 11 inch (21.6 x 27.9 cm) pages. A page is defined as a single side of a piece of paper. All five proposal items required in Section 3.2.2 will be included within this total. Each page shall be numbered consecutively at the bottom. Margins should be 1.0 inch (2.5 cm). Samples, videotapes, slides, or other ancillary items will not be accepted. Offerors are requested not to use the entire 25-page allowance unless necessary. Proposals exceeding the 25 page limitation will be rejected during administrative screening. The program would prefer proposals prepared on both sides of the paper, if possible.

Type Size. No type size smaller than 10 point is to be used for text or tables, except as legends on reduced drawings. Proposals prepared with smaller font sizes will be rejected without consideration.

Brevity and Organization. The proposal should be focused, concise, and organized in accordance with the Solicitation requirements.

Classified Information. NASA does not accept STTR proposals that contain classified information.

3.2.2 Format Requirements. All required items of information must be covered in the proposal. The space allocated to each part of the technical proposal will depend on the project chosen and the offeror's approach.

Each proposal submitted must contain the following in the order presented:

• Proposal Cover (Form 9A), signed in ink, as page 1.
• Proposal Summary (Form 9B), as page 2.
• Technical Proposal (11 Parts), including all graphics, and starting at page 3 with a table of contents.
• Summary Budget (Form 9C), signed in ink.
• Cooperative Agreement.

3.2.3 Proposal Cover and Proposal Summary:

Page 1: Proposal Cover (Form 9A). A copy of the Proposal Cover is provided in Section 9. The offeror shall provide complete information for each item and submit the form as required in Section 6. The proposal project title shall be concise and descriptive of the proposed effort. The title should not use acronyms or words like "Development of" or "Study of." The NASA research topic title must not be used as the proposal title.

Page 2: Proposal Summary (Form 9B). A copy of the Proposal Summary is provided in Section 9. The offeror shall provide complete information for each item and submit Form 9B as required in Section 6. The technical abstract portion is limited to 200 words and shall summarize the implications of the approach and the anticipated results of both Phase-I and Phase-II. Potential commercial applications of the technology should also be presented. If the technical abstract is judged to be non-responsive to the topic, the proposal will be rejected without further evaluation.

3.2.4 Technical Proposal. This part of the submission shall not contain any budget data and must consist of all eleven parts listed below in the given order and numbered. A proposal omitting any part will be considered non-responsive to this Solicitation and may be rejected during administrative screening. Parts that are not applicable must be noted as "Not Applicable."

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

Part 2: Identification and Significance of the Innovation. The first paragraph of Part 2 shall contain (1) a clear and succinct statement of the specific innovation proposed, and why it is an innovation, and (2) a brief explanation of how the innovation is relevant and important to meeting the technology need described in the topic. The initial paragraph shall contain no more than 200 words. In subsequent paragraphs, Part 2 may also include appropriate background and elaboration to explain the proposed innovation.

Part 3: Technical Objectives. State the specific objectives of the Phase-I R/R&D effort including the technical questions that must be answered to determine the feasibility of the proposed innovation.

Part 4: Work Plan. Phase-I R/R&D should address the objectives and questions cited in Part 3. The work plan should indicate what will be done, where it will be done, and how it will be done. The methods planned to achieve each objective or task should be discussed in detail. Schedules, task descriptions and assignments, resource allocations, estimated task hours for each key personnel, and planned accomplishments including project milestones shall be included. The work plan will specifically address the percentage and type of work to be performed by the SBC and the RI. The plan will provide evidence that the SBC will exercise management direction and control of the performance of the STTR effort, including situations in which the Principal Investigator may be an employee of the RI.

Part 5: Related R/R&D. Describe significant current and/or previous R/R&D that is directly related to the proposal including any conducted by the principal investigator or by the offeror. Describe how it relates to the proposed effort and any planned coordination with outside sources. The offeror must persuade reviewers of his or her awareness of key recent R/R&D conducted by others in the specific subject area. At the offeror's option, this section may include concise bibliographic references in support of the proposal if they are confined to activities directly related to the proposed work.

Part 6: Key Personnel and Bibliography of Directly Related Work. Identify key personnel involved in Phase-I activities. Key personnel are the principal investigator and other individuals whose expertise and functions are essential to the success of the project. Provide bibliographic information including directly related education and experience.

This part shall also establish the role of the principal investigator (Section 1.5.3), and indicate the extent to which other proposals recently submitted or planned for submission in 2000 and existing projects commit the time of PI concurrently with this proposed activity.

Part 7: Relationship with Phase-II or Future R/R&D. State the anticipated results of the proposed R/R&D effort if the project is successful (through Phase-I and Phase-II). Discuss the significance of the Phase-I effort in providing a foundation for the Phase-II R/R&D continuation.

Part 8: Company Information and Facilities. Provide adequate information to allow the evaluators to assess the ability of the SBC team to carry out the proposed Phase-I and projected Phase-II and Phase-III activities. The offeror should describe the relevant facilities and equipment currently available, and those to be purchased, to support the proposed activities. NASA will not fund the acquisition of equipment, instrumentation, or facilities under STTR Phase-I contracts as a direct cost (Section 5.17).

The capability of the offeror to perform the proposed activities and bring a resulting product or service to market must be indicated. Qualifications of the offeror and its principals in marketing-related products or services or in raising capital should be presented.

If an offeror proposes the use of unique or one-of-a-kind Government facilities, a statement, describing the uniqueness of the facility and its availability to the offeror at specified times, signed by the appropriate Government official must be included with the proposal. Proposals lacking this signed statement may be rejected without evaluation. If the proposer does not require the use of Government facilities or equipment, the proposer shall so state in this part of the proposal.

Part 9: Subcontracts and Consultants. The SBC/RI team may establish business arrangements with other entities or individuals to participate in performance of the proposed R/R&D effort provided such arrangements do not exceed 30 percent of the work (amount requested including cost sharing if any, less fee, if any). The offeror must describe all subcontracting or other business arrangements, and identify the relevant organizations and/or individuals with whom arrangements are planned. The proposal must include a signed statement by each participating organization or individual that they will be available at the times required for the purposes and extent of effort described in the proposal.

The expertise to be provided by entities other than the SBC and RI must be described in detail, as well as the functions, services, number of hours and labor rates, and their extent of the effort. The proposal must include certifications by each participating organization and individual consultant that they will be available at the times required for the purposes and extent of effort described in the proposal. Subcontractors and consultants work must be performed in the United States.

Part 10: Commercial Applications Potential. The commercial potential of the proposed STTR project is a significant evaluation factor (Section 4.1.2). Therefore, offerors will discuss in this section the broad commercial applications for their project results and plans to bring the technology to commercial application. Offerors should discuss the following:

1. The specific commercial products or services contemplated and the corresponding target market niche;
2. Expected unique competitive advantage of the commercial products or services;
3. Nature of the corresponding contemplated commercial venture;
4. Importance of the contemplated commercial venture to the offeror's current competitive position and to its strategic planning; and
5. The offeror's capability and plans to bring the necessary physical, personnel, and financial resources to bear, in a timely way, to result in a viable commercial venture in the near term subsequent to Phase-II (if awarded).

Part 11: Similar Proposals and Awards. A firm may elect to submit proposals for essentially equivalent work under other federal program solicitations. However, NASA will not fund duplicate proposals for essentially equivalent work under any Government program. The offeror will inform NASA of related proposals and awards and clearly state whether the SBC has submitted currently active proposals for similar work under other Federal Government program solicitations or intends to submit proposals for such work to other agencies during 2000. For all such cases, the following information is required:

1. The name and address of the agencies to which proposals have been or will be submitted, or from which awards have been received;
2. Dates of such proposal submissions or awards;
3. Title, number, and date of solicitations under which proposals have been or will be submitted or awards received;
4. The specific applicable research topic for each such proposal submitted or award received;
5. Titles of research projects;
6. Name and title of the principal investigator/project manager for each proposal that has been or will be submitted, or from which awards have been received.

Note: All eleven (11) parts must be included. Parts that are not applicable must be included and marked "Not Applicable."

3.2.5 Proposed Budget:

1. Summary Budget (Form 9C). The offeror shall complete the Summary Budget, following the instructions provided with the form (Section 9) and include it and any explanation sheets, if needed, as the last page(s) of the proposal. Information shall be submitted to explain the offeror's plans for use of the requested funds to enable NASA to determine whether the proposed budget is fair and reasonable.
   
   
2. Property. NASA will not fund facility acquisition under Phase-I (Section 5.17). Proposed costs for materials may be included. "Materials" means property that may be incorporated or attached to a deliverable end item or that may be consumed or expended in performing the contract. It includes assemblies, components, parts, raw materials, and small tools that may be consumed in normal use. Any purchase of equipment or products under an STTR contract using NASA funds should be American-made to the extent possible.
   
   
3. Travel. Travel during Phase-I is not normally allowed to prove technical merit and feasibility of the proposed innovation. However, where the offeror deems travel to be essential for these purposes, it is necessary to limit it to one person, one trip to the sponsoring NASA installation. Proposed travel must be described as to purpose and benefits in proving feasibility, and is subject to negotiation and approval by the contracting officer. Trips to conferences are not allowed under the Phase-I contract.
   
   
4. Profit. A profit or fee may be included in the proposed budget as noted in Section 5.12.
   
   
5. Cost Sharing. See Section 5.11.

3.2.6 Cooperative Agreement

The Cooperative Agreement (not to be confused with the Allocation of Rights Agreement) shall be a single page document (see example Model Cooperative Agreement in Section 9) which contains a signed statement to NASA that the SBC, the RI, and any applicable subcontractors and/or consultants participating in performing the proposed R/R&D effort have agreed to cooperate on the proposed project, if and when the project is selected for funding.

3.3 Phase-II Proposal Requirements

The Phase-I contract will serve as a request for proposal (RFP) for the Phase-II follow-on project. Phase-II proposals are more comprehensive than those required for Phase-I. Submission of a Phase-II proposal is strictly voluntary and NASA assumes no responsibility for any proposal preparation expenses. The Cooperative Research established with a specific RI in Phase I shall continue with the same RI in Phase II.

Proposal Contents. Proposals shall be prepared in the following order. Failure to include any requested information in the proposal may make it non-responsive to the RFP. The proposal shall not contain any budget data and must consist of all 13 parts numbered and in following order. A proposal omitting any part will be considered non-responsive to this Solicitation and may be rejected during administrative screening.

Part 1: Proposal Cover. (Form provided by awarding Center)

Part 2: Proposal Summary. (Form provided by awarding Center)

Part 3: Table of Contents.

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

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

Part 6: Company Information. Describe the capability of the firm to carry out Phase-II and Phase-III activities including its organization, operations, number of employees, R/R&D capabilities, and experience relevant to the work proposed.

Part 7: Facilities and Equipment. This section shall provide adequate information to allow the evaluators to assess the ability of the SBC to carry out the proposed Phase-II activities. The offeror should describe the relevant facilities and equipment currently available, and those to be purchased, to support the proposed activities. NASA will not fund the acquisition of equipment, instrumentation, or facilities under STTR Phase-II contracts as a direct cost (Section 5.17).

If an offeror proposes the use of unique or one-of-a-kind Government facilities, a statement, describing the uniqueness of the facility and its availability to the offeror at specified times, signed by the appropriate Government official must be included with the proposal. Proposals lacking this signed statement may be rejected without evaluation.

If the proposal does not require the use of Government facilities or equipment, the offeror shall so state in this part of the proposal.

Part 8: Key Personnel. Identify the key personnel for the project, confirm their availability for Phase-II, and discuss their qualifications in terms of education, work experience, and accomplishments relevant to the project.

Part 9: Subcontracts and Consultants. Describe in detail any subcontract, consultant, or other business arrangements involving participation in performance of the proposed R/R&D effort and provide written evidence of their availability for the project. For Phase-II, a minimum of 40 percent of the work must be performed by the proposing SBC and 30 percent by the RI unless approved in writing by the Contracting Officer. The proposal must include a commitment from each subcontractor and/or consultant that they will be available at the times required for the purposes and extent of effort described in the proposal. Subcontractors and consultants work must be performed in the United States.

Part 10: Commercialization and Phase-III Plans. Describe plans for commercialization (Phase-III) in terms of each of the following areas:

(1) Product or Service Commercial Feasibility: Provide a description of the (a) contemplated commercial product and/or service, the corresponding commercial venture, and the unique competitive advantage of both; and (b) technical obstacles to commercial applications, as well as plans to address them.

(2) Market Feasibility and Competition: Describe: (a) the target market niche including the distinction between U.S. Government and other markets; (b) estimated potential market size in terms of revenues to be realized by the offer from U.S. Government markets and, separately, from other markets; (c) competitive environment in terms of present and likely competing similar and alternative technologies, and corresponding competing domestic and foreign entities; (d) significant developments within the targeted business sector; and (e) offeror's ability, if any, to protect relevant technology with patents or rights to exclusive access.

(3) Strategic Relevance to the Offeror: Describe the relevance of the targeted commercial venture to the offeror's: (a) current business segments; (b) relative position with respect to its competitors; and (c) strategic planning for the next 5 years.

(4) Key Management, Technical Personnel and Organizational Structure: Describe: (a) the skills and experience of key management and technical personnel relevant to bringing innovative technology to commercial application, (b) current organizational structure, and (c) plans and timeline for obtaining the balance of all necessary key business development expertise and other staffing requirements.

(5) Production and Operations: Describe: (a) business development progress to date regarding the contemplated commercial venture; (b) obstacles, plans, and associated milestones regarding all key business development elements; and (c) sources and components of private physical resources committed to date and plans for obtaining the balance of the necessary physical resources.

(6) Financial Planning: Describe: (a) the amounts and sources of private financial resources expended and committed to date with respect to the technology development project, and with respect to business development of the targeted commercial venture; (b) significant requirements of potential investors, creditors, and insurers of the venture; (c) proforma statement of cash flow with respect to the targeted commercial venture that includes best estimates of at least the following major components and timing thereof: capital investment, revenues, principal and interest payments, depreciation of relevant assets, other operating expenses; and (d) evidence of the offeror's current financial strength (audited or unaudited financial statements may be appended to address this).

Part 11: Capital Commitments Supporting Phase-II and Phase-III. Describe and document capital commitments from non-STTR sources or from internal funds for pursuit of Phase-II and Phase-III. Offerors for Phase-II contracts are strongly urged to obtain valid non-STTR funding support commitments for follow-on Phase-III activities and additional support of Phase-II from parties other than the proposing firm. Valid funding support commitments must provide that a specific, substantial amount will be made available to the firm to pursue the stated Phase-II and/or Phase-III objectives. They must indicate the source, date, and conditions or contingencies under which the funds will be made available. Alternatively, self-commitments of the same type and magnitude that are required from outside sources can be considered. If Phase-III will be funded internally, offerors should describe their financial position.

Evidence of funding support commitments from outside parties must be provided in writing to the proposing entity and should accompany the Phase-II proposal. Letters of commitment should specify available funding commitments, other resources to be provided, and any contingent conditions. Expressions of technical interest by such parties in the Phase-II research or of potential future financial support are insufficient and will not be accepted as support commitments by NASA.

Part 12: Related R/R&D. Describe R/R&D related to the proposed work and affirm that the proposed objectives have not already been achieved and that the same development is not presently being pursued elsewhere under contract to the Government.

Part 13: Proposal Pricing. Special instructions for pricing the Phase-II proposal will be presented in the Phase-I contract and may be provided by the contracting officer.

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