SBIR Phase I Specifics
Why SBIR's:
As a quick refresher, at Marion Square we work with our clients to develop a comprehensive strategy for pursuing SBIR's. These programs are a critical piece to any successful Government go to market. Just recently Defense Secretary Austin stated that he wants to “double down on our Small Business Innovation Research program”, which is emerging as a preferred resource for gaining accelerated access to cutting-edge commercial technology through phased R&D and pilot programs. (Want To Scale Innovation at the DOD? Strengthen the SBIR Program - Nextgov)
Phase I Specifics:
The Governments budget for SBIR's is upwards of $1.8B annually. While the reporting requirements, period of performance, and award amounts will vary by participating agency the core objective of the Phase I SBIR according to their website is:
"To establish the technical merit, feasibility, and commercial potential of the proposed Research/Research and Development efforts and determine the quality of performance of the small business awardee organization prior to providing further Federal support in a Phase II"
Essentially the Phase I is a Government funded feasibility study- where the Government wants you to meet with potential users of your technology to determine if investing in your products development will enable it to solve a Government problem or fill a technology gap. A key principle the Government takes into consideration is, will the funded technology work also solve problems for additional Government organizations and more importantly commercial organizations as well.
This is the notion of a dual use technology, which is one of the key tenants of the SBIR program. A dual use technology is where the government prefers not to fund solutions that end up being a custom technology with only the Government being the customer. The Government prefers to fund technologies that can be commercialized across a large Government and non Government customer base to share the risk and ensure that the technology continues to innovate.
Phase I contract awards can range in size from $50K to $250K and provide a couple of key advantages to organizations:
Non-Dilutive Capital: The Government receives no equity in your company for its funding and this is not only true for Phase I engagements but also for the larger Phase II and Phase III.
Sole Source Contract: A Phase I award provides companies with a Sole Source contract for any follow on work. This contract is a major advantage for companies wanting to do business with the Government.
The next release of SBIR topics is being pre-released in April, if you are interested in learning more about your companies eligibility and of SBIR's may be right for your technology, please contact us at Marion Square.