1. Phase II Program Description
1.1 Introduction
This document provides a general description of the NASA SBIR/STTR Phase II Program and proposal submission requirements. All small business concerns (SBCs) that are awarded and have successfully completed their Phase I contracts are invited to submit Phase II proposals. Receipt of Phase II proposals are due on the last day of performance under SBIR/STTR Phase I contracts, the submission period will be available approximately 6 weeks prior to the contract completion date.
Proposals must be submitted online via the Proposal Submissions Electronic Handbook at http://sbir.nasa.gov and include all relevant documentation.
1.2 Phase II Description
Phase II
The purpose of Phase II is the development, demonstration and delivery of the innovation. Only SBCs awarded a Phase I contract are eligible to submit a proposal for a Phase II funding agreement. Phase II projects are chosen as a result of competitive evaluations and based on selection criteria provided in the Phase II Proposal Instructions and Evaluation Criteria.
Maximum value and period of performance for Phase II contracts:
| Phase II Contracts |
SBIR |
STTR |
| Maximum Contract Value |
$ 750,000 |
$ 750,000 |
| Period of Performance |
24 months |
24 months |
1.3 Phase II Contract Options
Phase II Enhancement (Phase II-E)
The purpose of the Phase II-E Option is to further encourage the advancement of innovations developed under Phase II contracts via an extension of R/R&D efforts to the current Phase II contract. Eligible firms must secure a third-party investor to partner and invest in enhancing their technology for further research, infusion, and commercialization. Under this option, the NASA SBIR/STTR Program will match, on a dollar-to-dollar basis, up to $125,000 of non-NASA-SBIR/non-NASA-STTR investments to extend a project from 6-to-12 months. There is a minimum funding requirement for Phase II-E, as eligible firms must secure at least $25,000 in third party investments. These non-NASA-SBIR/non-NASA-STTR third party investments can come from a NASA project, NASA contractor, or any commercial investor. The total cumulative award for the Phase II contract plus the Phase II-E match is not expected to exceed $875,000 of SBIR/STTR funding. The non-SBIR/non-STTR contribution is not limited since it is regulated under the guidelines for Phase III awards.
The Phase II-E application may be submitted anytime during the 4th month before the end of the contract period of performance (for example, a 24 month period of performance, the application would be due any time during the 20th month of the period of performance; a 18 month period of performance, the application would be due any time during the 13th month of the period of performance). Also, any additional information regarding the submission of a Phase II-E proposal will be included in the Phase II contracts. Firms interested in executing a Phase II-E option are requested to notify the NASA SBIR/STTR Program of its intent to propose in writing to ARC-SBIR-PMO@mail.nasa.gov, by the end of the 14th month of performance of the Phase II contract. This written notification will be non-binding.
Maximum value and period of performance for the Phase II-E contract option:
|
Phase II Enhancement |
Minimum non-SBIR/STTR Funding Required for Eligibility for Matching in Phase II-E |
Corresponding SBIR/STTR Program Contribution |
Anticipated Period of Additional Performance |
|
$25,000 |
$25,000 |
6-12 Months |
|
|
Maximum non-SBIR/STTR Funding to be Matched by SBIR/STTR Program in Phase II-E |
Corresponding SBIR/STTR Program Contribution |
Anticipated Period of Additional Performance |
|
|
$125,000 |
$125,000 |
6-12 Months |
Phase II contracts with a period of performance less than 18 months, will NOT be eligible for a Phase II-E. In addition, to be eligible for this option, the contractor's performance must be on time in accordance with the contract work plan. The number of Phase II- E options to be exercised is subject to the availability of funds and will be selected based on criteria provided in the Phase II contract.
Phase II eXpanded (Phase II-X)
The purpose of the Phase II-X Option is to establish a strong and direct partnership between the NASA SBIR/STTR Program and other NASA projects undertaking the development of new technologies of innovations for future use. Under a Phase II-X option, innovations developed in Phase II are to be advanced via an extension of R/R&D efforts to the current Phase II contract. There are two specific requirements to be met for firms to be eligible for a Phase II-X option. First, eligible firms must secure a NASA program or project (other than the NASA SBIR/STTR Program) as a partner to invest in enhancing their technology for further research or infusion. Second, there is a minimum funding requirement for Phase II-X, as eligible firms must secure at least $75,000 in NASA program or project funding. Under this option, the NASA SBIR/STTR Program will match, on a 2-for-1 basis, up to $250,000 of NASA program or project funding, thus enabling a maximum of $500,000 of SBIR/STTR award funds to be added from the NASA SBIR/STTR Program. Note: A firm may acquire additional, non-NASA, third-party investments as part of a Phase II-X option, but those funds will not be counted in the NASA SBIR/STTR Program's matching calculation. Executing a Phase II-X option is anticipated to extend a Phase II from 12-to-24 months after the completion of Phase II. The total cumulative award for the Phase II contract plus the Phase II-X match is not expected to exceed $1,250,000 of SBIR/STTR funding. The NASA contribution is not limited since it is regulated under the guidelines for Phase III awards.
The Phase II-X application may be submitted anytime during the 4th month before the end of the contract period of performance (for example, a 24 month period of performance, the application would be due any time during the 20th month of the period of performance; a 18 month period of performance, the application would be due any time during the 14th month of the period of performance). Also, any additional information regarding the submission of a Phase II-X proposal will be included in the Phase II contracts. Firms interested in executing a Phase II-X option are requested to notify the NASA SBIR/STTR Program of its intent to propose in writing to ARC-SBIR-PMO@mail.nasa.gov, by the end of the 14th month of performance of the Phase II contract. This written notification will be non-binding.
Maximum value and period of performance for Phase II-X contract options:
|
Phase II eXpanded |
Minimum Funding Required from non-SBIR/STTR NASA Source for Eligibility for Matching in Phase II-X |
Corresponding SBIR/STTR Program Contribution |
Anticipated Period of Additional Performance |
|
$75,000 |
$150,000 |
12-24 Months |
|
|
Maximum Funding Amount from non-SBIR/STTR NASA Source to be Matched in Phase II-X |
Corresponding SBIR/STTR Program Contribution |
Anticipated Period of Additional Performance |
|
|
$250,000 |
$500,000 |
12-24 Months |
Phase II contracts with a period of performance less than 18 months, will NOT be eligible for a Phase II-X. In addition, to be eligible for this option, the contractor's performance must be on time in accordance with the contract work plan. The number of Phase II-X options to be exercised is subject to the availability of funds and will be selected based on criteria provided in the Phase II contract.
Proposing to the Phase II-E or Phase II-X Option
Note: The SBIR/STTR Program will allow firms with a Phase II contract that follows a Phase I contract from this solicitation to submit a proposal for either a Phase II-E contract option, or a Phase II-X contract option. Firms are not permitted to submit a proposal for both options. The number of Phase II- E and Phase II-X options to be exercised may be limited by availability of funds and will be selected based on the evaluation criteria.
1.4 Eligibility Requirements
1.4.1 Small Business Concern
Only firms qualifying as SBCs are eligible to participate in these programs. Socially and economically disadvantaged and women-owned SBCs are particularly encouraged to propose.
1.4.2 Place of Performance
R/R&D must be performed in the United States. However, based on a rare and unique circumstance (for example, if a supply or material or other item or project requirement is not available in the United States), NASA may allow a particular portion of the research or R&D work to be performed or obtained in a country outside of the United States. Proposals must clearly indicate if any work will be performed outside the United States. Prior to award, approval by the Contracting Officer for such specific condition(s) must be in writing.
Note: Offerors are responsible for ensuring that all employees who will work on this contract are eligible under export control and International Traffic in Arms (ITAR) regulations. Any employee who is not a U.S. citizen or a permanent resident may be restricted from working on this contract if the technology is restricted under export control and ITAR regulations unless the prior approval of the Department of State or the Department of Commerce is obtained via a technical assistance agreement or an export license. Violations of these regulations can result in criminal or civil penalties.
1.4.3 Principal Investigator (PI) Employment Requirement
The primary employment of the Principal Investigator (PI) shall be with the SBC under the SBIR Program, while under the STTR Program, either the SBC or RI shall employ the PI. Primary employment means that more than 50% of the PI's total employed time (including all concurrent employers, consulting, and self-employed time) is spent with the SBC or RI at time of award and during the entire period of performance. Primary employment with a small business concern precludes full-time employment at another organization. If the PI does not currently meet these primary employment requirements, then the offeror must explain how these requirements will be met if the proposal is selected for contract negotiations that may lead to an award. Co-Principle Investigators are not allowed.
Note: NASA considers a fulltime workweek to be nominally 40 hours and we consider 19.9-hour or more workweek elsewhere to be in conflict with this rule. In rare occasions, minor deviations from this requirement may be necessary; however, any minor deviation must be approved in writing by the Contracting Officer after consultation with the NASA SBIR/STTR Program Manager/Business Manager.
| REQUIREMENTS |
SBIR |
STTR |
| Primary Employment |
PI must be with the SBC |
PI must be employed with the RI or SBC |
| Employment Certification |
The offeror must certify in the proposal that the primary employment of the PI will be with the SBC at the time of award and during the conduct of the project. |
The offeror must certify in the proposal that the primary employment of the PI will be with the SBC or the RI at the time of award and during the conduct of the project. |
| Co-PIs |
Not Allowed |
Not Allowed |
| Misrepresentation of Qualifications |
Shall result in rejection of the proposal or termination of the contract |
Shall result in rejection of the proposal or termination of the contract |
| Substitution of PIs |
Shall receive advanced written approval from NASA |
Shall receive advanced written approval from NASA |
1.5 NASA SBIR/STTR Technology Available (TAV)
All subtopics have the option of using Technology Available (TAV) with NASA IP (defined below), which may also include NASA non-patented software technology requiring a Software Usage Agreement (SUA) or similar permission for use by others. All subtopics address the objective of increasing the commercial application of innovations derived from Federal R&D. While NASA scientists and engineers conduct breakthrough research that leads to innovations, the range of NASA's effort does not extend to commercial product development in any of its intramural research areas. Additional work is often necessary to exploit these NASA technologies for either infusion or commercial viability and likely requires innovation on behalf of the private sector. NASA provides these technologies "as is" and makes no representation or guarantee that additional effort will result in infusion or commercial viability.
The NASA technologies identified in a subtopic or via the IP search tool (http://technology.nasa.gov): (1) are protected by NASA-owned patents (NASA Patents), (2) are non-patented NASA-owned or controlled software (NASA software), or (3) are otherwise available for use by the public. In the event offeror requests to use NASA owned or controlled technologies, which are not NASA patents or NASA software, NASA shall consider such request and permit such uses as NASA, in its sole discretion, deems appropriate and permissible. If a proposer elects to use a NASA patent, a non-exclusive, royalty-free research license will be required to use the NASA IP during the SBIR/STTR performance period.
Similarly, if a proposer wishes to use NASA software, the parties will be required to enter into a Software Usage Agreement on a non-exclusive, royalty-free basis in order to use such NASA software for government purposes and "Government-Furnished Computer Software and Related Technical Data" will apply to the contract. As used herein, "NASA IP" refers collectively to NASA patents and NASA software disclaimer: All subtopics include an opportunity to license or otherwise use NASA IP on a non-exclusive, royalty-free basis, for research use under the contract. Use of the NASA IP is strictly voluntary. Whether or not a firm uses NASA IP within their proposed effort will not in any way be a factor in the selection for award. NASA software release is governed by NPR 2210.1C.
Use of NASA Patent
All offerors submitting proposals citing a NASA patent must submit a non-exclusive, royalty-free license application if the use of a NASA patent is desired. The NASA license application is available on the NASA SBIR/STTR website: http://sbir.gsfc.nasa.gov/sites/default/files/research_license_app.doc. NASA only will grant research licenses to those SBIR/STTR offerors who submitted a license application and whose proposal resulted in an SBIR/STTR award under this solicitation. Such grant of non-exclusive research license will be set forth in the successful offeror's SBIR/STTR contract. License applications will be treated in accordance with Federal patent licensing regulations as provided in 37 CFR Part 404.
SBIR/STTR offerors are notified that no exclusive or non-exclusive commercialization license to make, use or sell products or services incorporating the NASA patent will be granted unless an SBIR/STTR offeror applies for and receives such a license in accordance with the Federal patent licensing regulations at 37 CFR Part 404. Awardees with contracts that identify a specific NASA patent will be given the opportunity to negotiate a non-exclusive commercialization license or, if available, an exclusive commercialization license to the NASA patent.
An SBIR/STTR awardee that has been granted a non-exclusive, royalty-free research license to use a NASA patent under the SBIR/STTR award may, if available and on a non-interference basis, also have access to NASA personnel knowledgeable about the NASA patent. The NASA Intellectual Property Manager (IPM) located at the appropriate NASA Center will be available to assist awardees requesting information about a patent that was identified in the SBIR/STTR contract and, if available and on a non-interference basis, provide access to the inventor or surrogate for the purpose of knowledge transfer.
Note: Access to the inventor for the purpose of knowledge transfer, will require the requestor to enter into a Non-Disclosure Agreement (NDA), the awardee "may" be required to reimburse NASA for knowledge transfer activities.
Use of NASA Software
Software identified and requested under a SBIR/STTR contract shall be treated as Government Purpose Rights. Government purpose releases includes releases to other NASA Centers, Federal government agencies, and recipients who have a government contract. The software may be used for "government purposes" only. The recipients of such software releases are typically U.S. citizens. Non U.S. citizens will not be allowed access to NASA software under the SBIR/STTR contract.
A Software Usage Agreement (SUA) shall be requested after contract award from the appropriate NASA Center Software Release Authority (SRA). The SUA request shall include the NASA software title, version number, requesting firm contract info including recipient name, and SBIR/STTR contract award info. The SUA will expire when the contract ends.
