2025-NIST-SBIR-02 NOFO.pdf

FY 2025 NIST SMALL BUSINESS INNOVATION RESEARCH PROGRAM PHASE II

NOTICE OF FUNDING OPPORTUNITY No. 2025-NIST-SBIR-02

April 16, 2025

U.S. Department of Commerce National Institute of Standards and Technology (NIST)

FY 2025 NIST Small Business Innovation Research Program Phase II Notice of Funding Opportunity Number: 2025-NIST-SBIR-02

Funding Opportunity Description:

The NIST Small Business Innovation Research (SBIR) Program Phase II is seeking applications from previous Fiscal Year (FY) 2024 NIST SBIR Phase I award recipients in response to this NOFO for Phase II of their projects, with the aim of developing a viable product or service, and/or a standard, that will be introduced to the commercial marketplace.

NOTE: Only FY2024 NIST SBIR Phase I awardees are eligible to submit an application in response to this NOFO for Phase II of their projects.

Announcement Type: Initial

Funding Instrument: Cooperative Agreement

Assistance Listing (CFDA Number):

11.620: Science, Technology, Business and/or Education Outreach

Award Project Period: Project performance period of twenty-four (24) months.

Goals & Objectives: The SBIR Program’s main goals and objectives are to strengthen the role of innovative small business concerns (SBCs) in Federally-funded research or research and development (R/R&D) including research in support of a standard (prestandardization research). Specific program goals are to: (1) stimulate technological innovation; (2) use small business to meet Federal R/R&D needs; (3) track participation by socially and economically disadvantaged small businesses and by women-owned small businesses in technological innovation; and (4) increase private sector commercialization of innovations derived from Federal R/R&D, thereby increasing competition, productivity, and economic growth.

Funding Amount: In Fiscal Year 2025 (FY25), NIST anticipates funding approximately five

(5) awards for up to $400,000 per award. Of this amount, up to $50,000 may be included in each application for Technical and Business Assistance (TABA), see section 5.12 for TABA information.

Cost Share/Matching Requirements:

Non-federal cost share is not required.

Eligible Applicants: Applicants must qualify as a Small Business Concern for Research/Research and Development (R/R&D) purposes, as defined in Section 1.05 of this NOFO, at the time of award. In addition, the primary employment of the principal investigator must be with the small business at the time of the 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 with the small business.

Primary employment with a small business precludes full-time employment with another organization.

Estimated Number and Type of Award(s):

Approximately five (5) Cooperative Agreement awards.

Submission Dates and Times:

Full Applications must be received at Grants.gov no later than 11:59 p.m. Eastern Time, on June 14, 2025. Applications received after this deadline will not be reviewed or considered.

How to Apply: Applications must be submitted using Grants.gov. Paper applications will not be accepted.

Review and Selection Process:

All applications will be evaluated and judged on a competitive basis.

Applications will be initially screened to determine eligibility, completeness, and responsiveness to this NOFO (see Sections 4.02 and 7.03). Applications passing the initial screening will be evaluated in accordance with the evaluation criteria (see Section 4.03). Each application will be judged on its own merit. Final selection decisions will be made by the Selecting Official, the Director of the NIST Technology

Partnerships Office, or designee.

Agency Contacts:

Programmatic and Technical Questions:

Jacqueline Gray Jacqueline.gray@nist.gov

Grants Rules and Regulations Dean Iwasaki NOFO@nist.gov https://www.grants.gov/ http://www.grants.gov/ mailto:Jacqueline.gray@nist.gov mailto:NOFO@nist.gov

Additional Information: On April 22, 2024, the Office of Management and Budget (OMB) published updates to the OMB Guidance for Grants and Agreements located in Title 2 of the Code of Federal Regulations (2 CFR), now called the OMB Guidance for Federal Financial Assistance. This updated OMB Guidance for Federal Financial Assistance (2 CFR) is effective for all awards issued by DOC/NIST on October 1st, 2024, or later. Applicants can find these recent revisions to 2 CFR here:

https://www.federalregister.gov/documents/2024/04/22/2024- 07496/guidance-for-federal-financial-assistance.

https://www.federalregister.gov/documents/2024/04/22/2024-07496/guidance-for-federal-financial-assistance https://www.federalregister.gov/documents/2024/04/22/2024-07496/guidance-for-federal-financial-assistance

Table of Contents

1.0 PROGRAM DESCRIPTION AND FEDERAL AWARD INFORMATION

1.01 Introduction

1.02 Three-Phase Program…

1.03 SBIR Applicant Eligibility and Limitations

1.04 Contact with NIST…

1.05 Definitions

1.06 Fraud, Waste, and Abuse…

1.07 Other Information…

2.0 CERTIFICATIONS AND RESEARCH INVOLVING HUMANS OR ANIMALS…

2.01 Due Diligence Certification…

2.02 Cyber Security Education and Training Requirements for Phase I and Phase II Awardees…

2.03 Funding Agreement Certification

2.04 Research Activities Involving Human Subjects or Vertebrate Animals…………………………..29

2.05 Certifications Regarding Federal Felony and Federal Criminal Tax Convictions, Unpaid Federal Tax Assessments and Delinquent Federal Tax Returns

3.0 APPLICATION PREPARATION INSTRUCTIONS AND REQUIREMENTS…

3.01 Phase II Application Requirements

3.02 Phase II Application…

4.0 METHOD OF SELECTION AND EVALUATION CRITERIA

4.01 Introduction…

4.02 Phase II Screening Criteria…

4.03 Phase II Evaluation Criteria…

4.04 Phase II Award Selections…

5.0 CONSIDERATIONS

5.01 Awards…

5.02 Reporting Requirements…

5.03 Payment Schedule

5.04 Innovations, Inventions and Patents…

5.05 Cost Sharing…

5.06 Profit or Fee…

5.07 Joint Ventures or Limited Partnerships…

5.08 Research an Analytical Work…

5.09 Awardee Commitments…

5.10 Summary Statements………………………………………………………………………………………………………………..54

5.11 Additional Information …

5.12 Technical and Business Assistance (TABA)

5.13 Technical Assistance for Application Preparation and Project Conduct

5.14 Collaboration with NIST Employees ………………………………………………………………………….….……………58

5.15 Collaboration Making Use of Federal Facilities…………………………………………………………………………..59

6. 0 SCIENTIFIC AND TECHNICAL INFORMATION SOURCES

7.0 SUBMISSION of APPLICATIONS, INCLUDING REQUIRED FORMS AND CERTIFICATIONS…

7.01 Application Deadline…

7.02 Preparation for Submission/Registration…………………………………………………………………………………..60

7.03 Complete Application: Required Forms and Documents…

7.04 Attachment of Required Application Documents………………………………………………………………………68

7.05 Application Submission……………………………………………………………………………………………………………………69

7.06 Verifying the Submission and Tracking the Application ……………………………………………………………………71

7.07 Unique Identifier and System for Award Management (SAM)…………………………………………………………71

8.0 RESEARCH AREAS

Advanced Communications, Networks, and Scientific Data Systems Advanced Manufacturing and Material Measurements… Cybersecurity and Privacy Fundamental Measurement, Quantum Science and Measurement Dissemination… Health and Biological Systems Measurements

Physical Infrastructure and Resilience… Exploratory Measurement Science …

Appendix A COVER SHEET Appendix B. Certifications… SBIR Funding Agreement Certification (at time of award) SBIR Funding Agreement Certification (Life-Cycle Certification)

Appendix C. Required Disclosures of Foreign Affiliations or Relationships to Foreign Countries

PROGRAM DESCRIPTION AND FEDERAL AWARD INFORMATION

1.01 Introduction

The National Institute of Standards and Technology (NIST) invites FY 2024 NIST SBIR Phase I awardees to submit Phase II research applications under this Notice of Funding Opportunity (NOFO). Only FY 2024 NIST SBIR Phase I awardees are eligible to submit applications in response to this NOFO for Phase II of their projects.

The Small Business Innovation Research (SBIR) program was originally established in 1982 by the Small Business Innovation Development Act (P.L. 97-219), codified at 15 U.S.C. § 638. The SBIR Program was then expanded and extended by the Small Business Research and Development (R&D) Enhancement Act of 1992 (P.L. 102- 564), and received subsequent reauthorization and extensions, the most recent of which extends the SBIR program through 2025. (P.L. 117-183).

Eleven Federal agencies implement SBIR by setting aside a portion of their extramural research and development budget each year to fund research applications from small science and technology-based firms. The statutory purpose of the SBIR Program is to strengthen the role of innovative small business concerns (SBCs) in Federally-funded research or research and development (R/R&D). Specific program goals are to:

(1) stimulate technological innovation; (2) use small businesses to meet Federal R/R&D needs; (3) track participation by socially and economically disadvantaged small businesses and by women-owned small businesses in technological innovation;

and (4) increase private sector commercialization of innovations derived from Federal R/R&D, thereby increasing competition, productivity, and economic growth.

The United States’ approach of leveraging the contributions of private sector innovators and government-supported research and development has fueled competitiveness and technological progress to the benefit of the U.S. and global economy. A critical component of the innovation ecosystem of the U.S. is the standardization system. The decentralized, bottom up, sector-based approach to standardization led by the private sector develops market-driven, voluntary, consensus-based standards. The U.S. Government (USG) supports this system by participating in the standards development process, alongside other sectoral representatives from industry, academia, and civil society. A critical component of the standards system is prestandardization research and development, including the directing of research to meet or anticipate specific standardization goals.

The NIST FY 2025 SBIR Phase II program identifies and solicits applications in topics that fall within NIST’s mission, as described in Section 8.0 of this NOFO, and allows collaboration between NIST scientists and the SBIR awardees whenever possible. Collaboration on prestandardization research and development aligned with NIST technical programs may include measurement and test methods, performance metrics, validated datasets and tools, frameworks, or other research deliverables to align with the needs of a standard or conformity assessment scheme.

When reviewing applications, NIST gives high priority to SBC’s that participate in or conduct energy efficiency or renewable energy system R&D prospects, consistent with Executive Order (EO) 13329, “Encouraging Innovation in Manufacturing,” 15 U.S.C. § 638(z), and the Small Business Administration (SBA) Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Program Policy Directive, § 9(a)(1).

For any SBIR award that requires a license to use a NIST-owned invention covered by a patent or patent application, the SBIR awardee must contact NIST’s Technology Partnerships Office for a license to use the NIST-owned invention. Such awardees will be granted a non-exclusive research license and will be given the opportunity to negotiate a non-exclusive or an exclusive commercialization license to the NIST-owned invention, in accordance with the Federal patent licensing regulations, set forth in 37 C.F.R. Part 404, and to the extent that such NIST-owned invention is available for licensing and has not otherwise been exclusively licensed to another party. It is the goal of this program to position the SBIR awardee to use and build upon such licensed NIST-owned invention with the awardee’s own innovation to develop a commercially viable product based on the NIST-owned invention.

1.02 Three-Phase Program

The SBIR statute (15 U.S.C. § 638) requires the Department of Commerce to establish a three-phase SBIR program by reserving a percentage of its extramural R&D budget to be awarded to SBCs for innovation research. SBIR policy is provided by the SBA through the SBIR/STTR Policy Directive. The funding vehicles for NIST’s SBIR program in both Phase I and Phase II are cooperative agreements.

NIST’s authority to implement its SBIR programs through cooperative agreements is 15 U.S.C. § 272(b)(4). NIST’s programmatic authorities for the research areas listed in this NOFO are found at 15 U.S.C. §§ 272(b) and (c). The nature of NIST’s “substantial involvement” will generally be collaboration with the awardees in carrying out the project’s approved scope of work. Administrative requirements for grants and cooperative agreements, set forth at 2 C.F.R. Part 200, will apply to NIST https://www.govinfo.gov/content/pkg/FR-2004-02-26/pdf/04-4436.pdf https://www.sbir.gov/sites/default/files/SBA%20SBIR_STTR_POLICY_DIRECTIVE_May2023.pdf https://www.sbir.gov/sites/default/files/SBA%20SBIR_STTR_POLICY_DIRECTIVE_May2023.pdf https://www.sbir.gov/sites/default/files/SBA%20SBIR_STTR_POLICY_DIRECTIVE_May2023.pdf https://www.sbir.gov/sites/default/files/SBA%20SBIR_STTR_POLICY_DIRECTIVE_May2023.pdf https://www.sbir.gov/sites/default/files/SBA%20SBIR_STTR_POLICY_DIRECTIVE_May2023.pdf

SBIR awards.

1.02.01 Phase I – Feasibility Research

The purpose of Phase I is for NIST to determine the technical feasibility of the research, including prestandardization research and development described in Section 1.01, preliminary commercialization merit of the proposed effort, and the quality of the awardee’s performance. The application should concentrate on describing research that will significantly contribute to proving the feasibility of the proposed Phase II research and commercialization potential, prerequisites to receiving further support in Phase II. Each Phase I award is for up to $100,000 and up to a six (6) month period of performance. Up to an additional $6,500 may be requested for Technical and Business Assistance (TABA); see section 5.12 for more information about TABA. NIST’s inclusion of TABA funds in the award will be subject to the availability of NIST funding.

This NOFO is not soliciting applications for Phase I research.

1.02.02 Phase II – Research and Development

This NOFO provides an opportunity to all NIST FY 2024 SBIR I awardees to submit a Phase II application following the completion of Phase I. This NOFO provides instructions for FY 2025 NIST SBIR Phase II application preparation and submission requirements.

In Phase II, work from Phase I that exhibits potential for commercial application is further developed. Phase II is the R&D or prototype development phase. To apply for a Phase II award, each Phase I awardee will be required to submit a comprehensive application outlining the proposed research and a detailed plan to commercialize the final product. Each NIST Phase II award is for up to $400,000 and up to a 24-month period of performance. One year after completing the Phase II R&D activity, the awardee shall be required to report on its commercialization activities.

1.02.03 Phase III – Commercialization

Phase III refers to work that derives from, extends, or completes an effort made under prior SBIR funding agreements, but is funded by sources other than the SBIR Program. Phase III may be for products, production, services, R/R&D, or a combination thereof.

1.03 SBIR Applicant Eligibility and Limitation

1.03.01 Applicant Qualifications

Under this NOFO, only FY 2024 NIST SBIR Phase I awardees are eligible to submit applications. Applications received from entities other than FY 2024 NIST SBIR Phase I awardees will not be reviewed or considered for award. Each applicant must qualify as an SBC for R/R&D purposes, as defined in Section 1.05 of this NOFO, at the time of award.

In addition, the primary employment of the principal investigator must be with the small business at the time of the 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 with the small business. Primary employment with a small business precludes full-time employment with another organization. Occasionally, deviations from this requirement may occur, which must be approved in writing by the NIST Grants Officer after consultation with the SBIR Program Manager. Further, a small business may only replace the principal investigator on an SBIR Phase II award if the NIST Grants Officer provides prior written approval. Personnel obtained through a Professional Employer Organization or other similar personnel leasing company may be considered employees of the awardee.

The R/R&D work must be performed in the United States. Requests for an exemption must be submitted in writing at the time of application submission. Only rare and unique circumstances will be considered for an exemption. The NIST Grants Officer must approve each exemption and its terms in writing.

NIST has elected to not use the authority that would allow venture capital operating companies (VCOCs), hedge funds or private equity firms to participate in the SBIR Program. Therefore, applications in which work is performed by VCOCs, hedge funds, or private equity firms will not be considered for award.

For Phase II, a minimum of one-half of the research and/or analytical effort and usage fees, and other subcontract/subaward or purchase agreements, excluding funds requested for TABA (See Section 5.12) may not exceed one-half of the total award.

Each applicant will be required to provide certain information via www.sbir.gov, as well as information required by the SBIR/STTR Policy Directive (see Appendices I - III) . Each SBC applying for an award is required to update the appropriate information in the SBA database on SBIR.gov for any of its existing and prior Phase II awards. Applicants may not participate in the review of applications.

The statement of work of an SBIR award made under this NOFO cannot overlap with the statement of work of an existing NIST Cooperative Research and Development Agreement (CRADA) with the awardee. NIST will consider the issue of any potential overlap on a case-by-case basis.

http://www.sbir.gov/ https://www.sbir.gov/about/policies https://www.sbir.gov/about/policies

1.03.02 Company Registry Requirements

SBA maintains a Company Registry to track ownership and affiliation requirements for all companies applying to the SBIR Program. Each Phase I applicant must register in the Company Registry prior to submitting an application. The applicant must save its information from the registration in a .pdf document and append this document to the SF-424 (R&R) form as described in Section

7.03.9 of this NOFO. All applicants are required to report and/or update their registration information in the SBA Company Registry prior to each SBIR application submission or if any information changes prior to an award.

1.03.03 Performance Benchmark Ratings Requirements

Performance Benchmark Requirements

Companies with multiple SBIR/STTR awards must meet minimum performance benchmark requirements to be eligible to apply for a new Phase I or Direct-to-Phase II award. The performance benchmark requirements address the extent to which an awardee progresses a project from Phase I to Phase II (i.e., Phase I to Phase II Transition Rate Benchmark) and the extent to which an awardee progresses a project from Phase II towards commercialization (i.e., Commercialization Rate Benchmark). The purpose of these benchmarks is to ensure that Phase I applicants that have won multiple prior SBIR/STTR awards are progressing towards commercialization. The benchmarks were published in the Federal Register for public comment and agreed upon by all 11 SBIR agencies. The Phase I to Phase II Transition Rate Benchmark was published at 78 FR 30951 in May 2013, and the Commercialization Rate Benchmark was published at 78 FR1 59410 in September 2013. The SBIR and STTR Extension Act of 2022 (Public Law 117-183) amended the application of these benchmarks for more experienced firms. This NOFO reflects those statutory changes.

Phase I to Phase II Transition Rate Benchmark

The Phase I to Phase II Transition Rate Benchmark only applies when a company has received 21 or more Phase I awards during the past five fiscal years, excluding the most recently completed fiscal year. It requires the company to average a ratio of Phase II to Phase I awards of at least 0.25, meaning the company must average one Phase II for every four Phase I awards received during the measurement period.

To calculate the Phase I to Phase II Transition Rate, SBA divides the total number of SBIR and STTR Phase II awards a company received from all agencies during the past five fiscal years by the total number of SBIR and STTR Phase I awards the company received from all agencies during the past five fiscal years, excluding the most recently completed year. The Phase II period begins one year later because https://app.www.sbir.gov/company-registration https://www.federalregister.gov/d/2013-12312 https://www.federalregister.gov/documents/2013/09/26/2013-23492/small-business-innovation-research-and-small-business-technology-transfer-programs-commercialization

Phase II awards rarely occur during the same year as the Phase I.

Below is an example of the Phase I to Phase II Transition Rate Benchmark assessment for three hypothetical companies conducted in Fiscal Year 2023.

Company Phase I Awards (2017-2021)

Phase II Awards (2018-2022)

Transition Rate Calculation (Phase II

Awards / Phase I Awards)

Assessment Outcome

Company A 21 7 0.33 Pass, ratio is equal or greater than 0.25

Company B 21 3 0.14 Fail, ratio is less than 0.25.

Company C 20 3 N/A N/A –benchmark does not apply, firm has less than 21 Phase I Awards.

Commercialization Rate Benchmark

The Commercialization Rate Benchmark only applies when a company has received 16 or more Phase II awards during the past ten fiscal years, excluding the two most recently completed fiscal years. It requires the company to average at least $100,000 of sales and/or investments per Phase II award received during the period;

or have received a number of patents equal to or greater than 15% of the number of Phase II awards received during the period. The Commercialization Rate Benchmark calculation is based on data submitted through the SBIR.gov Company Commercialization Report. SBA utilizes reported total sales or revenues—including government designated Phase III awards, total dollars invested, or the number of patents, that resulted at least in part, from work performed under Phase II awards received during the 10-year period to calculate the Commercialization Rate Benchmark. A complete guide with additional details on what should and should not be reported is available here:

Guide_for_completing_commercialization_Report_SBIR_Gov_09_15_20.pdf.

To calculate the Commercialization Rate Benchmark, SBA sums the countable commercialization resulting from the specific Phase II awards received during the 10-year period and divides that number by the total number of Phase II awards received during the 10-year period. For determining the Commercialization Rate Benchmark based on patents, SBA divides the number of patents reported from the specific Phase II awards received during the 10-year period by the total number of Phase II awards received during the period.

https://legacy.www.sbir.gov/sites/default/files/Guide_for_completing_commercialization_Report_SBIR_Gov_09_15_20.pdf

Below is an example of a Commercialization Rate Benchmark assessment for four hypothetical companies conducted in Fiscal Year 2023.

Company Phase II Awards (2011- 2020)

Commercialization ($) Resulting from Phase II Awards received between 2011-2020

Patents Resulting from Phase II Awards received between

2011-2020

Commercialization Rate

(Commercialization $ / # of Phase II

Awards)

Patent Rate (# of Patents /

# of Phase II Awards)

Assessment Outcome

Company A 16 $3,200,000 1 $200,000 .06 Pass.

Commercialization rate meets or exceeds a

$100,000 average.

It does not matter that the patent rate is below the threshold.

Company B 20 $1,900,000 3 $95,000 .15 Pass. Patent rate is at least 15%. It does not matter that the commercialization rate is below the threshold.

Company C 30 $2,500,000 3 $83,333 .10 Fail. Both the commercialization and patent rates are below the minimums.

Company D 15 $3,000,000 0 $200,000 .0 N/A –benchmark does not apply, firm has less than 16 Phase II Awards.

Commercialization Reporting

SBIR and STTR awardees are required to update and maintain their organization’s Company Commercialization Report via SBIR.gov. The reporting is accessible when an authorized user (user is SAM.gov verified) accesses its SBIR.gov profile under the “My Dashboard” section. SBIR and STTR Phase II awardees are required to update its commercialization record when applying for new Phase II awards, at the conclusion of a Phase II award, and then voluntarily update the information in the database annually thereafter for a minimum period of 5 years (15 U.S.C. § 638 (k)).

Increased Performance Standards for More Experienced Firms

The SBIR and STTR Extension Act of 2022 (Pub. Law 117-183) established increased performance standards for more experienced firms. Effective as of April 1, 2023, the statute modifies the Phase I to Phase II Transition Rate Benchmark and the Commercialization Rate Benchmark based on a higher threshold of received awards.

Increased Performance Standard for the Phase I to Phase II Transition Rate Benchmark

The Increased Performance Standard for the Phase I to Phase II Transition Rate Benchmark only applies when a company has received or receives 51 or more Phase I awards during the past five fiscal years, excluding the most recently completed fiscal year. It requires the company to average a ratio of Phase II to Phase I awards of at least 0.50, meaning they must average one Phase II for every two Phase I awards received during the measurement period.

Increased Performance Standard for the Commercialization Rate Benchmark

The Increased Performance Standard for the Commercialization Rate Benchmark establishes two additional tiers, with each tier requiring an elevated performance requirement.

Tier 1 applies when a company has received or receives 51 or more Phase II awards during the past ten fiscal years, excluding the two most recently completed fiscal years. It requires the company to average at least $250,000 in aggregate sales and investments per Phase II award received during the period.

Tier 2 applies when a company has received or receives 101 or more Phase II awards during the past ten fiscal years, excluding the two most recently completed fiscal years. It requires the company to average at least $450,000 in aggregate sales and investments per Phase II award received during the period.

Please note, patents cannot be used to pass the Increased Performance Standards for the Commercialization Rate Benchmark.

Increased Performance Standards Documentation Requirement

The SBIR and STTR Extension Act of 2022 requires companies subject to the increased performance standard for the Commercialization Rate Benchmark to submit to SBA supporting documentation to support reported covered sales. The act defines covered sales as follows (15 U.S.C. § 638 (qq)(3)(B)(iii)(II)):

In this clause, the term "covered sale" means a sale by a small business concern-

• that the small business concern claims to be attributable to an SBIR or STTR award;

• for which no amount of the payment was or is made using Federal funds;

• which the small business concern uses to meet an applicable increased minimum performance standard under clause (i) [i.e., Increased Performance Standard for the Commercialization Rate Benchmark]; and

• that was or is received during the 5 fiscal years immediately preceding the fiscal year in which the small business concern uses the sale to meet the increased minimum performance standard.

Please note that government awards received as a prime or subcontractor that satisfy the definition of Phase III and result, at least in-part, from Phase II award(s) received during the measurement period are not considered covered sales because the payment was or is made using Federal funds.

Note: For the Fiscal Year 2024 assessment, SBA will provide guidance directly to firms triggering the increased performance standards with instructions for providing the covered sales documentation. SBA anticipates company commercialization reporting system modifications to allow for uploading required documentation will be complete prior to the Fiscal Year 2025 assessment.

Consequences of Failure to Meet the Benchmarks

SBA will identify, on June 1 of each year, the companies that fail to meet the Phase I to Phase II Transition Benchmark, the Commercialization Rate Benchmark, or the Increased Performance Benchmarks for More Experienced Firms.

Companies that fail to meet either the Phase I to Phase II Transition Benchmark or the Commercialization Rate Benchmark will not be eligible to submit a proposal for a Phase I (or Direct-to-Phase II) award for a period of one year, beginning from the determination date (June 1).

Companies that fail to meet either of the benchmarks under the Increased Performance Standards for more Experienced Firms may not receive more than 20 total Phase I awards and Direct-to-Phase II awards from each Federal agency during the 1-year period beginning on the date of determination (June 1).

Section 3 of the SBIR/STTR Policy Directive defines a Federal Agency as follows:

(o) Federal Agency. An executive agency as defined in 5 U.S.C. 105, and a military department as defined in 5 U.S.C. 102 (Department of the Army, Department of the Navy, Department of the Air Force), except that it does not include any agency within the Intelligence Community as defined in Executive Order 12333, § 3.4(f), or its successor orders.

Notification

SBA will notify companies failing either of the benchmarks and the relevant officials at the participating agencies. The information on the companies will not be available to the public, but a confidential list of companies failing the benchmarks are required to be submitted to Congress.

To provide companies with advance warning, SBA notifies companies on April 1 if they are failing any of the benchmark(s). This notification also instructs companies to review the information available on SBIR.gov and to create or update its company commercialization report to ensure SBA utilizes the most complete and accurate data prior to the official assessment date. Companies identifying inaccuracies may provide feedback through the SBIR.gov helpdesk https://www.sbir.gov/feedback.

Companies should review and provide any feedback early, to ensure modifications are able to be addressed well in advance of the May 31 deadline.

Because the performance benchmark requirements only affect a company’s eligibility for new Phase I (or Direct-to-Phase II) awards, a company that fails to meet any of the required benchmarks may continue working on its current or ongoing SBIR/STTR awards and may apply for and receive new Phase II and Phase III awards.

Performance Benchmarks: General information on the Performance Benchmark requirements is available at https://www.sbir.gov/performance-benchmarks.

1.04 Contact with NIST

For general programmatic, electronic submission or grants questions, please contact the appropriate individual:

Subject Area Point of Contact https://legacy.www.sbir.gov/feedback https://legacy.www.sbir.gov/performance-benchmarks

Programmatic Questions Jacqueline Gray Phone: (240) 306-5564 E-mail: jacqueline.gray@nist.gov or Nicole Berry Phone: (202) 235-3675 E-mail: nicole.berry@nist.gov

Electronic Application Submission through Grants.gov

Grants.gov Phone: (800) 518-4726 E-mail: support@grants.gov

Grant Rules and Regulations Dean Iwasaki E-mail: nofo@nist.gov with “2025- NIST-SBIR-02” in the subject line

Applicants may also contact the NIST Hollings Manufacturing Extension Partnership

(MEP) for technical assistance with application preparation. More information on obtaining technical assistance from MEP Centers for application preparation can be found in Section 5.13 of this NOFO.

1.05 Definitions

(a) General Definitions

Except as specifically noted by citation or reference, all definitions below are excerpted from the SBA SBIR/STTR Policy Directive.

Applicant – The organizational entity that qualifies as an SBC at all pertinent times and that submits a contract proposal or a grant application for a funding agreement under the SBIR/STTR Programs.

Awardee – The organizational entity that receives an SBIR or STTR Phase I, Phase II, or Phase III award. An “SBIR/STTR Awardee.”

Commercialization – The process of developing products, processes, technologies, or services and the production and delivery (whether by the originating party or others) of the products, processes, technologies, or services for sale to or use by the Federal government or commercial markets.

mailto:jacqueline.gray@nist.gov mailto:nicole.berry@nist.gov mailto:support@grants.gov mailto:dean.iwasaki@nist.gov https://www.sbir.gov/sites/default/files/2024-07/SBA%20SBIR_STTR_POLICY_DIRECTIVE_May2023.pdf

Contract, see 2 C.F.R. § 200.1 – For the purpose of Federal financial assistance, a legal instrument by which a recipient or subrecipient purchases property or services needed to carry out the project or program under a Federal award. For additional information on subrecipient and contractor determinations, see 2 C.F.R. § 200.331.

Cooperative Agreement, see 31 CFR §§ 6302 and 6305 – A legal instrument of financial assistance between a Federal awarding agency and a recipient or a pass-through entity and a subrecipient that is consistent with 31 U.S.C. §§ 6302, 6305:

(1) Is used to enter into a relationship the principal purpose of which is to transfer anything of value to carry out a public purpose of support or stimulation authorized by a law of the United States (see 31 U.S.C. § 6101(3)); and not to acquire property or services for the Federal Government or pass- through entity's direct benefit or use;

(2) Is distinguished from a grant in that it provides for substantial involvement of the

Federal awarding agency in carrying out the activity contemplated by the Federal award.

Covered Individual, see 15 U.S.C. § 638(e)(15) – An individual who—

(1) contributes in a substantive, meaningful way to the scientific development or execution of a research and development project proposed to be carried out with a research and development award from a Federal research agency;

and

(2) is designated as a covered individual by the Federal research agency concerned.

Essentially Equivalent Work – Work that is substantially the same research, which is proposed for funding in more than one contract proposal or grant application submitted to the same Federal agency, or submitted to two or more different Federal agencies for review and funding consideration; or work where a specific research objective and the research design for accomplishing the objective are the same or closely related to another proposal or award, regardless of the funding source.

Federally Funded Award – A Phase I, Phase II (including a Phase II award under subsection (cc)), or Phase III SBIR or STTR award made using a funding agreement.

Foreign Affiliation, see 15 U.S.C. § 638(e)(16) – A funded or unfunded academic, https://www.ecfr.gov/current/title-2/section-200.331 http://uscode.house.gov/view.xhtml?req=(title%3A31%20section%3A6302%20edition%3Aprelim)%20OR%20(granuleid%3AUSC-prelim-title31-section6302)&f=treesort&edition=prelim&num=0&jumpTo=true http://uscode.house.gov/view.xhtml?hl=false&edition=prelim&req=granuleid%3AUSC-prelim-title31-section6305&f=treesort&num=0&saved=%7CKHRpdGxlOjMxIHNlY3Rpb246NjMwMiBlZGl0aW9uOnByZWxpbSkgT1IgKGdyYW51bGVpZDpVU0MtcHJlbGltLXRpdGxlMzEtc2VjdGlvbjYzMDIp%7CdHJlZXNvcnQ%3D%7C%7C0%7Cfalse%7Cprelim https://www.govinfo.gov/link/uscode/31/6101 https://www.govinfo.gov/link/uscode/31/6101 professional, or institutional appointment or position with a foreign government or government-owned entity, whether full-time, part-time, or voluntary (including adjunct, visiting, or honorary).

Foreign Country of Concern, see 15 U.S.C. § 638(e)(17) – The People’s Republic of China, the Democratic People’s Republic of Korea, the Russian Federation, the Islamic Republic of Iran, or any other country determined to be a country of concern by the Secretary of State.

Funding Agreement – Any contract, grant, or cooperative agreement entered into between any Federal agency and any SBC for the performance of experimental, developmental, or research work, including products or services, funded in whole or in part by the Federal Government.

Joint Venture – See 13 C.F.R. § 121.103(h).

Malign Foreign Talent Recruitment Program, see 15 U.S.C. § 638(e)(18), citing 42 U.S.C. § 19237 – Is –

(1) Any program, position, or activity that includes compensation in the form of cash, in-kind compensation, including research funding, promised future compensation, complimentary foreign travel, things of non de minimis value, honorific titles, career advancement opportunities, or other types of remuneration or consideration directly provided by a foreign country at any level (national, provincial, or local) or their designee, or an entity based in, funded by, or affiliated with a foreign country, whether or not directly sponsored by the foreign country, to the targeted individual, whether directly or indirectly stated in the arrangement, contract, or other documentation at issue, in exchange for the individual—

(i) engaging in the unauthorized transfer of intellectual property, materials, data products, or other nonpublic information owned by a United States entity or developed with a Federal research and development award to the government of a foreign country, or an entity based in, funded by, or affiliated with a foreign country regardless of whether that government or entity provided support for the development of the intellectual property, materials, or data products;

(ii) being required to recruit trainees or researchers to enroll in such program, position, or activity;

(iii) establishing a laboratory or company, accepting a faculty position, or undertaking any other employment or appointment in a foreign country or with an entity based in, funded by, or affiliated with a foreign country if such activities are in violation of the terms and conditions of the Federal https://www.ecfr.gov/current/title-13/chapter-I/part-121 research and development award;

(iv) being unable to terminate the foreign talent recruitment program contract or agreement except in extraordinary circumstances;

(v) through funding or effort related to the foreign talent recruitment program, being limited in the capacity to carry out a research and development award or required to engage in work that would result in substantial overlap or duplication with a Federal research and development award;

(vi) being required to apply for and successfully receive funding from the sponsoring foreign government’s funding agencies with the sponsoring foreign organization as the recipient;

(vii) being required to omit acknowledgment of the recipient institution with which the individual is affiliated, or the Federal research agency sponsoring the research and development award, contrary to the institutional policies or terms and conditions of the Federal research and development award;

(viii) being required to not disclose to the Federal research agency or employing institution the participation of such individual in such program, position, or activity; or

(ix) having a conflict of interest or conflict of commitment contrary to the terms and conditions of the Federal research and development award; and

(2) a program that is sponsored by—

(i) a foreign country of concern or an entity based in a foreign country of concern, whether or not directly sponsored by the foreign country of concern;

(ii) an academic institution on the list developed under section 1286(c)(8) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (10 U.S.C. 2358 note; Public Law 115-232); or

(iii) a foreign talent recruitment program on the list developed under section 1286(c)(9) of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (10 U.S.C. § 2358 note; Public Law 115-232).

Research or Research and Development (R/R&D) – Any activity that is:

(1) a systematic study directed toward greater knowledge or understanding of the subject studied;

(2) a systematic study directed specifically toward applying knowledge and innovation to meet a recognized but unmet need; or

(3) a systematic application of knowledge and innovation toward the production of useful materials, devices, and systems or methods, including design, development, and improvement of prototypes and new processes to meet specific requirements.

Small Business Concern (SBC) – A concern that meets the SBIR/STTR program eligibility requirements set forth in 13 C.F.R. § 121.702, “What size and eligibility standards are applicable to the SBIR and STTR programs?” (available at https://www.ecfr.gov/cgi-bin/text-idx?SID=3ccaf429aac93292cdf7afdc1689514e&mc=true&node=se13.1.121_1702&rgn =d iv8.

Socially and Economically Disadvantaged SBC (SDB) – See 13 C.F.R. Part 124, Subpart B.

Socially and Economically Disadvantaged Individual – See 13 C.F.R. §§ 124.103 and 124.104.

Standard - A document, established by consensus and approved by a recognized body, that provides for common and repeated use, rules, guidelines or characteristics for activities or their results, aimed at the achievement of the optimum degree of order in a given context. Note: Standards should be based on the consolidated results of science, technology, and experience, and aimed at the promotion of optimum community benefits.

(Sources: NISTIR 8074 Vol. 2 from ISO/IEC Guide 2:2004).

Subaward, 2 CFR § 200.1 – An award provided by a pass-through entity to a subrecipient for the subrecipient to carry out part of a Federal award received by the pass-through entity. It does not include payments to a contractor or payments to an individual that is a beneficiary of a Federal program. A subaward may be provided through any form of legal agreement, including an agreement that the pass-through entity considers a contract.

Women-Owned Small Business (WOSB) – An SBC that is at least 51% owned by one or more women1, or in the case of any publicly owned business, at least 51% of the stock is owned by women, and women control the management and daily business operations.

(b) Definitions related to rights in data developed under the SBIR program.

These definitions are also included in Section 5.04.02 of this NOFO.

All definitions below are excerpted from the SBA SBIR/STTR Policy Directive.

Computer Database – A collection of data recorded in a form capable of being processed by a computer. The term does not include Computer Software.

1 “Woman” is defined by §2(b) of Executive Order 14168 (Jan. 20, 2025), 90 FR 8615 (Jan.30, 2025).

https://www.ecfr.gov/cgi-bin/text-idx?SID=3ccaf429aac93292cdf7afdc1689514e&mc=true&node=se13.1.121_1702&rgn=div8 https://www.ecfr.gov/cgi-bin/text-idx?SID=3ccaf429aac93292cdf7afdc1689514e&mc=true&node=se13.1.121_1702&rgn=div8 https://www.ecfr.gov/cgi-bin/text-idx?SID=3ccaf429aac93292cdf7afdc1689514e&mc=true&node=se13.1.121_1702&rgn=div8 https://www.ecfr.gov/cgi-bin/text-idx?SID=3ccaf429aac93292cdf7afdc1689514e&mc=true&node=se13.1.121_1702&rgn=div8 https://www.ecfr.gov/cgi-bin/text-idx?SID=3ccaf429aac93292cdf7afdc1689514e&mc=true&node=se13.1.121_1702&rgn=div8 https://www.federalregister.gov/select-citation/2012/08/06/13-CFR-124 https://www.federalregister.gov/select-citation/2012/08/06/13-CFR-124.103 https://doi.org/10.6028/NIST.IR.8074v2 https://www.iso.org/standard/39976.html

Computer Programs – A set of instructions, rules, or routines recorded in a form that is capable of causing a computer to perform a specific operation or series of operations.

Computer Software -- Computer programs, source code, source code listings, object code listings, design details, algorithms, processes, flow charts, formulae, and related material that would enable the software to be reproduced, recreated, or recompiled.

Computer Software does not include Computer Databases or Computer Software Documentation.

Computer Software Documentation - Owner's manuals, user's manuals, installation instructions, operating instructions, and other similar items, regardless of storage medium, that explain the capabilities of the Computer Software or provide instructions for using the software.

Data - All recorded information, regardless of the form or method of recording or the media on which it may be recorded. The term does not include information incidental to contract or grant administration, such as financial, administrative, cost or pricing or management information.

Form, Fit, and Function Data – Data relating to items, components, or processes that are sufficient to enable physical and functional interchangeability, and data identifying source, size, configuration, mating and attachment characteristics, functional characteristics, and performance requirements. For Computer Software it means data identifying source, functional characteristics, and performance requirements, but specifically excludes the source code, algorithms, processes, formulas, and flow charts of the software.

Government Purpose – Any activity in which the United States Government is a party, including cooperative agreements with international or multi-national defense organizations or sales or transfers by the United States Government to foreign governments or international organizations. Government Purposes include competitive procurement, but do not include the rights to use, modify, reproduce, release, perform, display, or disclose Technical Data or Computer Software for commercial purposes or authorize others to do so.

Operations, Maintenance, Installation, or Training Purposes (OMIT) Data – Data that is necessary for operation, maintenance, installation, or training purposes (but not including detailed manufacturing or process data).

SBIR/STTR Computer Software Rights – The Federal Government’s rights during the SBIR/STTR Protection Period in specific types of SBIR/STTR Data that are Computer Software.

(1) The Federal Government may use, modify, reproduce, release, perform, display, or disclose SBIR/STTR Data that are Computer Software within the Government. The Federal Government may exercise SBIR/STTR Computer Software Rights within the Government for:

(i) Use in Federal Government computers;

(ii) Modification, adaptation, or combination with other Computer Software, provided that the Data incorporated into any derivative software are subject to the rights in § 3(ee) of the SBIR/STTR Policy Directive and that the derivative software is marked as containing SBIR/STTR Data;

(iii) Archive or backup; or

(iv) Distribution of a computer program to another Federal agency, without further permission of the Awardee, if the Awardee is notified of the distribution and the identity of the recipient prior to the distribution, and a copy of the SBIR/STTR Computer Software Rights included in the Funding Agreement is provided to the recipient.

(2) The Federal Government shall not release, disclose, or permit access to

SBIR/STTR Data that is Computer Software for commercial, manufacturing, or procurement purposes without the written permission of the Awardee. The Federal Government shall not release, disclose, or permit access to SBIR/STTR Data outside the Government without the written permission of the Awardee unless:

(i) The non-Governmental entity has entered into a non-disclosure agreement with the Government that complies with the terms for such agreements outlined in § 8 of the SBIR/STTR Policy Directive; and

(ii) The release or disclosure is—

(A) To a Federal Government support service contractor or their subcontractor for purposes of supporting Government internal use or activities, including evaluation, diagnosis and correction of deficiencies, and adaptation, combination, or integration with other Computer

Software provided that SBIR/STTR Data incorporated into any derivative software are subject to the rights in § 3(ee) of the

SBIR/STTR Policy Directive; or

(B) Necessary to support certain narrowly-tailored essential Government activities for which law or regulation permits access of a non-

Government entity to a contractors’ data developed exclusively at private expense, non-SBIR/STTR Data, such as for emergency repair and overhaul.

SBIR/STTR Data - All Data developed or generated in the performance of an SBIR or STTR award, including Technical Data and Computer Software developed or generated in the performance of an SBIR or STTR award. The term does not include information incidental to contract or grant administration, such as financial, administrative, cost or pricing or management information.

SBIR/STTR Data Rights - The Federal Government’s license rights in properly marked SBIR/STTR Data during the SBIR/STTR Protection Period are as follows:

SBIR/STTR Technical Data Rights in SBIR/STTR Data that are Technical Data or any other type of Data other than Computer Software; and SBIR/STTR Computer Software Rights in SBIR/STTR Data that is Computer Software. Upon expiration of the protection period for SBIR/STTR Data, the Federal Government has a royalty free license to use, and to authorize others to use on its behalf, these data for Government Purposes, and is relieved of all disclosure prohibitions and assumes no liability for unauthorized use of these data by third parties. The Federal Government receives Unlimited Rights in Form Fit, and Function Data, OMIT Data, and all unmarked SBIR/STTR Data.

SBIR/STTR Protection Period - The period of time during…