U.S. DOT SBIR awards are contracts, which provide payment after services are rendered or deliverables received. Payments for Phase I contracts will be made upon the acceptance of each of the three required reports, which are submitted bi-monthly and at the end of the contract.

Minority, veteran-owned, woman-owned, and small businesses with other SBA designations are encouraged to submit offers. The SBIR program is a total small business set aside. As such, no preference is given to a particular subset of small businesses. 

U.S. DOT’s SBIR program awards contracts in response to recommended proposals for identified research topics. We do not issue grants or loans. 

All SBIR applicants must be registered in SAM at time of offer submission. A page(s) from SAM validating the active registration should be included as the second page of the Technical Section. This registration page does not count toward the 15-page limit.

SBA’s Company Registration is meant for small businesses to register and gain access to the SBIR.gov system. Completed registrations will receive a unique small business concern (SBC) Control ID to be used for submissions at any of the 11 participating agencies in the SBIR or STTR programs. Each SBC applying to the program is required to complete its registration in SBA’s Company Registration prior to submitting its application.

If you have not already registered, you can do so on SBA’s Company Registration page. Company Registration now requires use of the new Unique Entity ID, which is a 12-character alphanumeric ID assigned to an entity by SAM.gov. Completed registrations will receive a unique SBC Control ID and PDF file to be submitted as the first page of the Technical Proposal.

Only United States small businesses are eligible to participate in the SBIR program. 

Businesses must meet all of the following criteria at the time of Phase I and II awards:

1. Organized for profit, with a place of business located in the United States
2. At least 51 percent owned and controlled by one or more individuals who are citizens or permanent resident aliens of the United States, or by other small business concerns that are each at least 51 percent owned and controlled by one or more individuals who are citizens or permanent resident aliens of the United States
3. No more than 500 employees, including affiliates
4. The principal investigator must have primary employment with the small business
5. Registered on SBA’s SBIR website with an SBC Control ID

For more information on eligibility please visit the Guide to Small Business Innovation (SBIR) and Small Business Technology Transfer (STTR) Program Eligibility.

The U.S. DOT’s SBIR Program will not accept offers from or make awards to small business concerns that are majority owned by such entities, unless allowable per 13 CFR § 121.702(a)(1)(i) in that it is majority-owned by a single VCOC, hedge fund, or private equity firm that is itself a small business concern.

Yes. Firms must meet the U.S. Small Business Administration’s definition of a small business concern and meet all other eligibility requirements as stated in the solicitation. 

Firms that are majority foreign owned and/or majority venture capital operating company (VCOC) owned are not eligible.
 

Yes. There is no prohibition on venture-backed subcontractors.

It depends. In order to be eligible, a firm must be at least 51 percent owned and controlled by one or more individuals who are either citizens of the United States or permanent resident aliens in the United States. All work must be conducted in the United States.

Yes; however, according to the solicitation and the SBIR Policy Directive, at least 2/3 of the work, measured in total contract dollars, must be performed by the small business awarded the contract for a Phase I award.

Yes. Universities are considered subcontractors or consultants and count towards the ratio of work. According to the SBIR Policy Directive, at least 2/3 of the work, measured in total contract dollars, must be performed by the small business awarded the contract for a Phase I award.

Subcontractors must also be in the United States. In very rare circumstances, a Government contracting officer (CO) may approve the use of a foreign subcontractor, but it would have to be well documented as to why the foreign subcontractor is the only one capable of meeting a requirement and requires pre-approval in writing from the CO. The SBIR Policy Directive states, “The R/R&D work must be performed in the United States. However, based on a rare and unique circumstance, agencies may approve a particular portion of the R/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. The funding agreement officer must approve each such specific condition in writing.”

An offer would not be declined due to proposing a foreign subcontractor; however, it should be thoroughly explained within the offer as to why a foreign subcontractor is proposed. If the particular offer is chosen for award based on the evaluation, then further details and approval by the CO to utilize the foreign subcontractor will be worked out during the negotiation/award process.
 

For both Phase I and Phase II, the R/R&D work must be performed in the United States. Based on a rare and unique circumstance, the U.S. DOT may approve a particular portion of the R/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. Such circumstance must be approved in writing by a U.S. DOT Contracting Officer and is at the discretion of the U.S. DOT.

Yes, a single person can be proposed for staffing. 

The principal investigator cannot have full-time employment outside of the small business contracted for the award. According to the solicitation, “The primary employment of the principal investigator must be with the small business firm at the time of contract award and during the conduct of the proposed research. Primary employment means that more than one-half of the principal investigator’s time is spent working for the small business. This precludes full-time employment with another organization.”

The principal investigator must have primary employment with the small business. Primary employment means that more than one-half of the principal investigator/project manager’s employment time is spent in the employ of the small business. This precludes full-time employment with another organization. The percentage of effort the PI is required to dedicate to one particular SBIR award is not stipulated. 

The principal investigator (PI) must be an employee of the small business. Therefore, a PI from a university or subcontractor is not recognized to meet the employment requirements.

There is not a requirement regarding the percentage of time a principal investigator dedicates to a particular project. 

Selections will be based on best value to the Government considering the following criteria, which are listed in order of importance, with technical merit and feasibility being most important:

1. Technical Merit and Feasibility 
2. Experience, Qualifications, and Facilities
3. Effectiveness of Proposed Work Plan
4. Commercial Potential 
5. Offer Quality