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Frequently Asked Questions

General Questions

Q: What is U.S. DOT SBIR?

A: Small Business Innovation Research (SBIR) is a congressionally mandated program signed into law by the President on July 22, 1982, and reauthorized on October 28, 1992. It seeks to encourage the initiative of the private sector and to use small businesses as effectively as possible in meeting federal research and development objectives.

In the U.S. Department of Transportation (U.S. DOT) these initiatives are directed to high-priority transportation research and development requirements in the operating administrations.

Q: What is the purpose of the U.S. DOT SBIR program?

A: The U.S. DOT SBIR program's purpose is to stimulate technological innovations in departmental programs utilizing, to the degree possible, the valuable resources and creative capabilities of the small business community in the United States.

Q: How is the program funded?

A: Public Law 112-81, Section 5012 requires that a specific percentage of U.S. DOT’s extramural research and development (R&D) budget be allocated for SBIR. For fiscal year 2015, each U.S. DOT operating administration contributed at least 2.9 percent of its extramural R&D budget to the program.

Q: Who is eligible to participate in the U.S. DOT SBIR program?

A: 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:

  • Organized for profit, with a place of business located in the United States
  • No more than 500 employees, including affiliates
  • The principal investigator must have primary employment with the small business
  • At least 51 percent owned and controlled by either one or more individuals who are citizens of, or permanent resident aliens in, the United States OR by another for-profit business concern that is at least 51 percent owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the United States

Q: When will the next U.S. DOT SBIR solicitation be released? How can I obtain a copy?

A: The U.S. DOT solicitation is released once or twice a year. The solicitations will not be available in paper form, but will be available for viewing on the U.S. DOT SBIR website and as a downloadable file in Microsoft Word and PDF formats.

Sign up to receive a notification when a new solicitation opens.

Q: I have an idea that doesn't match any topics in the U.S. DOT SBIR solicitation. What should I do?

A: Visit the U.S. DOT Small Business web page and Federal Business Opportunities (FedBizOpps) to search for contract opportunities which match your idea and/or your capabilities. FedBizOpps is the primary location to learn about U.S. DOT contract opportunities.

You can also suggest a topic for consideration. All submissions will be reviewed; however, not all topics will be included in future solicitations. If your topic is included in a future solicitation, then all qualified small businesses will have the opportunity to submit a proposal for that topic.

Q: Are unsolicited proposals accepted for the U.S. DOT SBIR program?

A: No. A proposal must respond to an existing research topic in an open solicitation.

Q: Can an SBIR/STTR Phase III follow-on funding contract be made, without competition, to the firm that successfully completes Phases I and II?

A: Yes. The firm may be given a sole source contract for further work or production that derives from, extends, or completes earlier SBIR work. Such follow-on work must be given Phase III status by the agency.

Q: How can I learn more about the U.S. DOT SBIR program?

A: There are many ways to learn more about the SBIR program:

Proposal Preparation Questions

Small Business Requirements

Technical Proposal Requirements

Cost Proposal

Technical Assistance Support

Small Business Requirements

Q: What types of company are eligible to submit proposals to U.S.DOT’s SBIR solicitations?

A: 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:


• Organized for profit, with a place of business located in the United States
• At least 51 percent owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the United States, OR
• At least 51 percent owned and controlled by another for-profit business concern that is at least 51 percent owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the United States
• No more than 500 employees, including affiliates
• The principal investigator must have primary employment with the small business
• Registered on the SBA’s SBIR SBC website with an SBC Registration Control ID

Q: Are firms that are majority owned by venture capital operating companies (VCOCs), hedge funds, or private equity firms eligible to submit a Phase I proposal?

A: The U.S. DOT elects at this time not to use the authority that would allow VCOCs, hedge funds, or private equity firms to participate in the SBIR Program. Proposals submitted by these parties will not be considered for award.

Q: Can the principal investigator be employed full time by an organization other than the small business submitting the proposal?

A: 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.“

Q: Are firms that are headquartered outside of the U.S. but with offices in the U.S. eligible to participate?

A: 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 U.S. or permanent resident aliens in the U.S. All work must be conducted in the U.S.

Q: What NAICS code do I need to use when registering in SAM?

A: Before an award of the SBIR contract can be made, the small business concern shall complete an Online Representations and Certifications Application at https://www.sam.gov. Use the code noted in the solicitation (541712) when registering in SAM.

Q: What is the Small Business Administration (SBA) Company Registry?

A: The Company Registry is a required element of the SBIR data system and application process. A small business must register in the company registry in order to submit a proposal for any SBIR solicitation. Once you have registered, your company will be given an SBIR ID number that you will use when applying to any SBIR agency solicitation. A PDF of the form you receive with your ID number must be included as the first page in your proposal. The SBA Company Registry is located here: http://www.sbir.gov/registration.

Q: Can a subcontractor do more than 1/3 of the work on a Phase I project? 

A: According to the solicitation, at least 2/3 of the work, measured in labor hours, must be performed by the small business awarded the contract.

Q: The Small Business Administration SBIR Policy Directive states that for all Phase I proposals at least 2/3 of the work must be performed by the small business awarded the contract, allowing 1/3 of the work to be done by subcontractors or consultants.   How does DOT measure the percentage of work - in time or money?

A: The percentage of work is calculated using labor hours.

Q. Do I need to register in the System for Award Management (SAM) on SAM.gov in order to submit a proposal for a U.S. DOT SBIR solicitation? 

A: No. However, it is federally mandated that any business wishing to do business with the federal government under a Federal Acquisition Regulation (FAR)-based contract must be registered in SAM before being awarded a contract. The SAM website provides information on registering. You can register online by following the prompts if you already have a DUNS number. If you need a DUNS number, you can find instructions at http://fedgov.dnb.com/webform/displayHomePage.do

Technical Proposal Requirements

Q: Can you provide a sample technical proposal?

A: We do not have a sample proposal. Please review section III of the solicitation: Proposal Preparation Instructions and Requirements. If you have specific technical questions on a topic, please send via email to dotsbir@dot.gov.

Q: Regarding the Sustainable Acquisition Requirement outlined in each U.S. DOT Phase I  solicitation, is there a specific submission requirement for this section, or do you just want us to be sure to include that statement in our response?

A: You must include the language specified in Section III (B) of the solicitation (see: Sustainable Acquisition Requirement) in your proposal. The Sustainable Acquisitions Requirement clause should be inserted at the end of each Technical Proposal and before the Cost Proposal. This is a requirement for all contracts.

Q: U.S DOT's Phase I solicitations require a section entitled, “Key Personnel and Bibliography of Directly Related Work.”  Does the bibliography only refer to the work done by the key personnel?  If so, is a bibliography allowed at the end of the proposal to provide key resources used in the preparation of the proposal?  Would this count towards the page limit?

A: The bibliography should reflect work done by key personnel. Place the bibliography as number 5 under technical content. Any bibliography of key resources used in the preparation of the proposal can be added to the end of the technical proposal. Yes, these do count towards the page limit.

Q: Are letters of support allowed in the proposal?   Do they count towards the page limit?

A: Letters of support are allowed; however, they do count towards the page limit.

A. U.S. DOT does not provide information on Technical Points of Contact for the topics in a solicitation. Your only contact with U.S. DOT relative to this solicitation during the Phase I proposal preparation and evaluation period is with DOT's SBIR Program Office. You must submit all technical and administrative questions relative to a specific solicitation via email to dotsbir@dot.gov.

Q: What is the Small Business Administrations (SBA) Company Database and how do I register?

A: SBA’s Company Database registration is meant for small businesses to register and gain access to the SBIR.gov system. Completed registrations will receive a unique SBC Control ID to be used for proposal submissions to USDOT and at any of the other 10 participating agencies in the SBIR programs. Each SBC applying to the program is required to complete its registration in the SBA's Company Registry prior to submitting its application.

If you have not already registered you can do so at (http://sbir.gov/registration).  Registration requires at least a Data Universal Numbering System (DUNS) identification number or Tax Identification Number (TIN). Completed registrations will receive a unique SBC Control ID and PDF file to be submitted as the first page of the Technical Proposal.

Cost Proposal

Q: Is there a limit to the amount of money that can be budgeted for overhead in the Cost and Pricing section?

A: There is no maximum amount of overhead rate as long as the percentage can be justified in accordance with the Federal Acquisition Regulation and DCAA policy. A narrative should be included in Schedule I justifying the factors that are used to compile the rate. (Reference DCAA Manual 7641.90, Information for Contractors)  www.dcaa.mil/DCAAM 7641.90.pdf.

Q: What is a reasonable range for fee/profit for Phase I?

A: The statutory limit for profit for Fixed Price R&D contracts is 15 percent. Phase II and IIB awards that are Cost Plus Fixed Fee type contracts are limited to a 10 percent fee. For both cases, a reasonable amount of 7 percent is suggested. Proposed profit and fee percentages proposed must be accompanied by a narrative explaining why a percentage was applied to the proposed costs and why it is reasonable.

Q: Should my cost estimate include travel for a Phase I kick-off meeting with the COR? 

A: Travel is not anticipated for Phase I projects so should not be included in the cost estimate.

Q: How should I determine the indirect rates for use in Appendix C (Cost and Pricing Proposal)?

A: The indirect rate structure embedded in the formula under Schedule A in Appendix C is:

  1. fringe benefits - allocated on labor;
  2. overhead - allocated on direct labor and fringe benefits; and
  3. general and administrative expense (G&A) -allocated on total cost input (TCI).  

Please include a narrative explanation of your proposed rates in Schedule I of the cost proposal.

In addition, please consider the following guidelines and include this information as attachments to Appendix C when appropriate:

  • The rates should be based on a full accounting year.
  •  If this is the company’s first year of doing business, the rate should be based on projected costs that include all of the company’s other work.
  • If the company has previously performed other Government contracts, please provide the last year’s historical indirect rates.
  • An Excel spreadsheet (saved as a PDF and attached to Appendix C) may be submitted to show the detailed indirect rate calculation.
  • Include what the base is for the indirect costs. (In other words, what will the rate consistently be applied to.)
  • All direct and indirect costs must comply with the Federal Acquisitions Regulation (FAR) 31.205. The offeror must ensure that that all unallowable costs as listed in the FAR are not included in any calculations. *Examples of Unallowable Costs are: advertising, alcohol, bad debts, charitable gifts/donations, entertainment, fines and penalties, interest, lobbying, federal taxes, and travel costs over government per diem rates. See FAR 31.205 for the complete list at https://www.acquisition.gov/far.

Q: What type of supporting documentation should I provide for the indirect rates I propose?

A: If you have an approved provisional indirect rate proposal from DCAA, include the approved rate documentation and use those rates in your cost proposal. If you have an approved accounting system from DCAA, include a copy of the audit. Even if DCAA has not reviewed your indirect rates recently, if your company has an approved accounting system, it will provide additional support to your proposed rates.

Please also provide:

  • Your provisional and any available actual indirect rate history for the last three years. This will provide support for the rates you submit in Schedule I of Appendix C.
  • Your company’s financial statement showing the direct and indirect costs and indirect rate calculations, if available.
  • If your company does not have approved indirect rates nor an approved accounting system, you must provide detailed costs showing your companies direct and indirect costs. Include the calculations showing how you came to the indirect rates you used in the cost proposal.

Technical Assistance Support

Q: Does the U.S. DOT SBIR Program Office offer Technical Assistance Support as described in the SBIR Policy Directive? 

A: Yes, beginning with Solicitation 15.1. The purpose of the Technical Assistance is to assist SBIR awardees in: (1) making better technical decisions on SBIR projects; (2) solving technical problems that arise during SBIR projects; (3) minimizing technical risks associated with SBIR projects; and (4) commercializing the SBIR products or processes. The services provided by U.S. DOT’s vendor will focus on commercialization. More information will be provided in the Solicitation.

Q: How do I request the $5,000?

A: Your request for this technical assistance funding is based on how you choose to receive it. When submitting your proposal via U.S. DOT’s secure proposal submission site, there is a question which asks:

“If selected for an award under the 16.1 Phase I Solicitation, is your firm interested in participating in the U.S. DOT’s Technical Assistance program? The program provides assistance to Phase I awardees in the area of commercialization planning and strategy (see Section III (C)(3).  Firms selected for award can choose to receive assistance from (1) U.S. DOT’s pre-approved vendor, or (2) their own proposed subcontractor (and provide additional documentation for verification as determined by U.S. DOT’s Acquisitions Office). Please choose one of the following:
A.  Yes, I am interested in the Technical Assistance Program and plan to use U.S. DOT’s approved vendor.
B.  Yes, I am interested in the Technical Assistance Program and plan to propose to use a vendor of my choosing and will submit documentation as requested by U.S. DOT if selected for award.
C.  No, I am not interested in the Technical Assistance Program.
D.  I am undecided at this time.”

If an offeror chooses (A) and  their proposal is recommended for award, the prospective awardees will receive notification from the U.S. DOT SBIR Program Office on what services are available and how to obtain these services at no cost to the small business using the vendor provided by U.S. DOT’s SBIR program. 

If an offeror chooses (B) and their proposal is recommended for award, the U.S. DOT SBIR Program Office and Contracting Officer will work with the awardee to request a revised cost proposal (Appendix C) that accounts for this cost. In addition, the awardee must provide at that time an outline of the specific technical assistance services to be provided, and the detailed qualifications and experience of the proposed subcontractor/consultant being requested.

If the offeror chooses (C), no assistance will be provided. 

If the offeror Chooses (D), and their proposal is recommended for award, the U.S. DOT SBIR Program Office and Contracting Officer will contact the offeror with more information on the Technical Assistance Program and request a decision within five business days.
 

Updated: Friday, October 9, 2015
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