DE-FOA-0003462.000001.pdf

Department of Energy (DOE) Office of Science (SC)

Small Business Innovation Research (SBIR) Small Business Technology Transfer (STTR)

FY 2025 Phase II Release 1

Notice of Funding Opportunity (NOFO) Number:

DE-FOA-0003462

NOFO Type: Amendment 000001

CFDA Number: 81.049

Amendment 000001 is issued to remove language restricting the ability of a National Laboratory to be funded as a subaward, previously on Page 55.

NOFO Issue Date: October 15, 2024 Submission Deadline for Letters of Intent:

November 6, 2024, at 5:00PM Eastern Time A Letter of Intent is required.

Submission Deadline for Applications: December 3, 2024, at 11:59PM Eastern Time

Table of Contents

I. BASIC INFORMATION

EXECUTIVE SUMMARY

FUNDING DETAILS

KEY FACTS

KEY DATES

AGENCY CONTACT INFORMATION

INFORMATIONAL WEBINAR / OFFICE HOURS

RECOMMENDATION

II. ELIGIBILITY

A. ELIGIBLE APPLICANTS

B. SMALL BUSINESS CONCERNS

C. OTHER ELIGIBILITY REQUIREMENTS

D. COST SHARING

III. PROGRAM DESCRIPTION

A. PURPOSE

B. INITIAL PHASE II AWARDS

C. SECOND PHASE II AWARDS

D. THIRD PHASE II AWARDS (SBIR ONLY)

E. DIVERSITY, EQUITY, INCLUSION, AND ACCESSIBILITY

F. PROGRAM GOALS, OBJECTIVES, AND PRIORITIES

G. AWARD CONTRIBUTION TO GOALS AND OBJECTIVES

H. PERFORMANCE GOALS

I. PROGRAM UNALLOWABLE COSTS

J. CITATIONS TO STATUTE AND REGULATIONS

K. SBIR/STTR PROGRAMS OUTCOMES

L. OTHER INFORMATION

M. JUSTICE40 INITIATIVE

IV. APPLICATION CONTENTS AND FORMAT

A. PRELIMINARY SUBMISSIONS

B. APPLICATION

C. COMPONENT PIECES OF THE APPLICATION

D. INFORMATION THAT MUST BE SUBMITTED AFTER APPLICATION BUT

BEFORE AWARD

V. SUBMISSION REQUIREMENTS AND DEADLINES

A. ADDRESS TO REQUEST APPLICATION PACKAGE

B. UNIQUE ENTITY IDENTIFIER (UEI) AND SYSTEM FOR AWARD MANAGEMENT

(SAM.GOV)

C. SUBMISSION INSTRUCTIONS

D. SUBMISSION DATES AND TIMES

VI. APPLICATION REVIEW INFORMATION

A. CRITERIA

B. REVIEW AND SELECTION PROCESS

C. ANTICIPATED NOTICE OF SELECTION AND AWARD DATES

VII. AWARD NOTICES

A. TYPE OF AWARD INSTRUMENT

B. ANTICIPATED TIMELINE FOR NOTICE OF SELECTION FOR AWARD

NEGOTIATION

VIII. POST-AWARD REQUIREMENTS AND ADMINISTRATION

A. ADMINISTRATIVE AND NATIONAL POLICY REQUIREMENTS

B. REPORTING

C. REPORTING OF MATTERS RELATED TO RECIPIENT INTEGRITY AND

PERFORMANCE (DECEMBER 2015)

D. INTERIM CONFLICT OF INTEREST POLICY FOR FINANCIAL ASSISTANCE

E. RESEARCH MISCONDUCT

IX. OTHER INFORMATION

A. CHECKLIST FOR AVOIDING COMMON ERRORS

B. HOW-TO GUIDES

C. ADMINISTRATIVE AND NATIONAL POLICY REQUIREMENTS

D. REFERENCE MATERIAL

I. Basic Information

U.S. Department of Energy (DOE) Office of Science (SC) Small Business Innovation Research (SBIR) Small Business Technology Transfer (STTR)

Executive Summary The DOE invites eligible Phase I and Phase II awardees to apply for Phase II awards (initial, second, and third) under this Notice of Funding Opportunity (NOFO). Topic descriptions for this NOFO can be found on the DOE SBIR/STTR web site at https://science.osti.gov/sbir/Funding-Opportunities.

Funding Details Expected total available funding $87,000,000 Expected number of awards 75 Expected dollar amount of individual awards

$1,100,000 to $1,600,000

Expected award project period 12 months to 24 months

DOE is under no obligation to pay for any costs associated with preparation or submission of applications. DOE reserves the right to fund, in whole or in part, any, all, or none of the applications submitted in response to this NOFO.

Key Facts NOFO Title FY2025 Phase II Release 1 NOFO Number DE-FOA-0003462 Announcement Type Initial Assistance Listing 81.049 Statutory Authority The programmatic authorizing statute is:

Section 646 of Public Law 95-91, U.S. Department of Energy Organization Act Section 901, et seq. of Public Law 109-58, Energy Policy Act of Section 9 of the Small Business Act (15 U.S.C. § 638)

Governing Regulations

Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, codified at 2 CFR 200 U.S.

Department of Energy Financial Assistance Rules, codified at 2 CFR 910 Size and Eligibility Requirements for the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs, codified at 13 CFR 121.701 et seq.

Key Dates

Key dates are printed on the cover of this NOFO.

Agency Contact Information

Grants.gov Customer Support

800-518-4726 (toll-free) support@Grants.gov https://science.osti.gov/sbir/Funding-Opportunities mailto:support@grants.gov

PAMS

Customer Support

855-818-1846 (toll-free) 301-903-9610 sc.pams-helpdesk@science.doe.gov

Technical/Scientific Program Contact

Please refer to the appropriate DOE Program Manager listed after each subtopic in the accompanying DOE SBIR/STTR Topics document located on the DOE SBIR/STTR Programs website at https://science.osti.gov/sbir/Funding- Opportunities.

Administrative Contact (questions about budgets and eligibility)

Carl Hebron, (301) 903-5707, SBIR- STTR@science.doe.gov

Informational Webinar / Office Hours

SC plans to hold an informational webinar about this NOFO on Friday, October 18, 2024 at 2pm ET. Registration instructions and other details will be posted at https://science.osti.gov/sbir/Funding-Opportunities.

Recommendation

SC encourages you to register in all systems as soon as possible. You are also encouraged to submit letters of intent (LOIs) and applications well before the deadline.

mailto:sc.pams-helpdesk@science.doe.gov https://science.osti.gov/sbir/Funding-Opportunities mailto:SBIR-STTR@science.doe.gov mailto:SBIR-STTR@science.doe.gov

II. Eligibility

A. Eligible Applicants

Only domestic small business concerns (SBCs) are eligible to submit applications and receive awards under this NOFO. Additional eligibility requirements apply to the different Phase II mechanisms as described below.

Letters of Intent (LOIs) are required for all potential applicants. Details of how and where to submit LOIs may be found in Section IV.A.1. below. Only those applicants that submit an LOI which is received by DOE by the due date listed on the cover page are eligible to submit an application under this NOFO.

All applicants must have an active System for Award Management (SAM) registration at the award start date to be eligible to receive a Phase II award. Good practice is to keep your SAM registration active in order to submit applications and receive awards from the Federal government.

1. Initial Phase II Applicants:

Only the following groups are eligible to apply for an Initial Phase II award under this

NOFO:

1. Currently active DOE SBIR or STTR Phase I awardees with awards resulting from NOFO DE- FOA-0003110; or

2. Currently active non-DOE SBIR or STTR Phase I awardees that (a) received the Federal Phase I award in Federal FY 2024, (b) have received a written determination from the Director of the SBIR/STTR Programs Office that the topic under which they received funding is the same as the topic in NOFO DE-FOA-0003110, and (c) are not submitting a Phase II application based on the award described in (a) to another Federal agency.*

To be eligible for an initial Phase II award, applicants must have completed their Phase I period of performance prior to the start date listed in this NOFO. Phase I awardees are cautioned not to request no cost extensions to their Phase I awards beyond this date.

*NOTE: Applicants that received their FY 2024 Phase I award from another Federal agency must request a written determination from the Director of the SBIR/STTR Programs Office that the topic under which they received funding is the same as the topic in NOFO DE-FOA- 0003110. Send requests to e-mail: sbir-sttr@science.doe.gov. Applicant must provide: 1) the Phase I award number and contact information for the Phase I Contracting Officer (or Grants/Agreements Officer); 2) the Phase I NOFO number and topic; and 3) the DOE Phase II topic number. Applicants must complete all close-out activities for Phase I prior to award of a Phase II from the DOE.

2. Phase IIA and IIB Applicants:

DOE SBIR/STTR initial Phase II awardees are eligible to receive a second Phase II award from DOE if they have not already received a second Phase II award from another agency.

There are two types of second Phase II awards: Phase IIA and Phase IIB.

mailto:sbir-sttr@science.doe.gov

PHASE IIA

Only award recipients resulting from the following FY 2023 SBIR/STTR Phase II NOFOs AND from the following eligible topics may apply for Phase IIA awards:

Eligible Phase II

NOFO

Eligible Topics DOE SBIR/STTR Funding Program

Anticipated Award Type

DE-FOA-0002859

(Phase I topics for C53 can be found at DE-FOA- 0002554.)

C53-01a, C53-02a, C53- 02b, C53-05c, C53-06a

Advanced Scientific Computing Research

Grant

DE-FOA-0002859

(Phase I topics for C53 can be found at DE-FOA- 0002554.) (Phase I topics for C51 can be found at DE-

FOA-0002554.)

C53-07a, C53-07b, C53- 11a, C53-12a, C53-13a, C53-14b, C53-15a, C53- 16a, C53-17b, C53-18c, C53-20b, C53-21a, C53- 21b, C53-21d, C53-21e, C53-21f, C53-22c, C53-24a, C51-27a

Basic Energy Sciences

Grant

DE-FOA-0002991

(Phase I topics for C54 can be found at DE-FOA- 0002359.)

C54-24c, C54-27a, C54- 27b, C54-28b, C54-28c

Fusion Energy Sciences

Grant

DE-FOA-0002991

(Phase I topics for C54 can be found at DE-FOA- 0002555.)

C54-30b, C54-31b, C54- 33b, C54-34e

High Energy Physics

Grant

DE-FOA-0002859

(Phase I topics for C53 can be found at DE-FOA- 0002554.)

C53-33b, C53-33c, C53- 34a, C53-34b, C53-34d

Nuclear Physics Grant

Eligible Phase II awardees must successfully complete their Phase II awards (including no fund extensions) prior to the award start date in this NOFO to be eligible to receive a Phase IIA award.

PHASE IIB

Only award recipients of an initial Phase II award from the NOFOs listed below may apply for Phase IIB Awards.

• FY 2022 Phase II Release 1, DE-FOA-0002571

• FY 2023 Phase II Release 1, DE-FOA-0002859

• FY 2022 Phase II Release 2, DE-FOA-0002572 (Fusion Energy Sciences and High

Energy Physics Only)

• FY 2023 Phase II Release 2, DE-FOA-0002991 (Fusion Energy Sciences and High Energy Physics Only)

Eligible Phase II awardees must successfully complete their Phase II awards (including no fund extensions) prior to the award start date in this NOFO to be eligible to receive a Phase IIB award.

3. Phase IIC Applicants

Some second Phase II awardees are eligible to receive a third SBIR Phase II award, referred to as Phase IIC, with this NOFO. Third Phase II awards are restricted only to SBIR; no third Phase II awards will be made under the STTR program. In order to be eligible for a third SBIR Phase II award, a small business must meet the following criteria:

1. Have received both an initial SBIR Phase II award and a second SBIR Phase II award from DOE.

a. Both awards must be SBIR and have the same award number; neither award can be

STTR.

b. The second SBIR Phase II award must have been awarded from either the

• FY 2023 Phase II Release 1 NOFO (DE-FOA-0002859) from the following program offices:

o Advanced Scientific Computing Research o Basic Energy Sciences o Biological and Environmental Research o Nuclear Physics

• FY 2023 Phase II Release 2 NOFO (DE-FOA-0002991) from the following program offices:

o High Energy Physics o Nuclear Energy

2. Have secured an offer of matching funds from an eligible third-party investor prior to award as described below. The following information shall be provided to DOE prior to award. Evidence of receipt of the matching funds in the form of bank statements or wire transfer receipts must be provided to the DOE Contracting Officer within five (5) days of receipt, or prior to award, whichever is sooner. No award shall be made without proof of receipt of the matching funds.

The source and amount of the matching funds are provided below:

Eligible Third-Party Investor Amount of Matching Funds

{Fill-in} {Fill-in}

• The term ‘eligible third-party investor’ means a small business concern (500 or fewer employees) other than the small business applicant, a venture capital firm, an individual investor, a non-SBIR Federal, State or local government of the United States, or any combination thereof. SBIR/STTR Phase I, II, or III funds from a Federal agency may not be used as matching funds.

• The matching amount (excluding any fees collected by the SBC) must be equal to the amount of the award.

• The matching funds cannot come from the following ineligible sources:

o The applicant’s internal research and development funds, o Funding in forms other than cash, such as in-kind or other intangible assets.

o Funding from the owners of the eligible entity, or the family members or affiliates of such owners.

o Funding attained through loans or other forms of debt obligations.

• Applicants that have secured matching funds at time of application must include a letter of commitment from each eligible third-party investor. Applicants that have not secured matching funds at time of application must submit a letter of commitment from each eligible third-party investor prior to 11:59 pm ET, December 27, 2024, to sbir-sttr@science.doe.gov. Applicants that fail to provide a letter of commitment from each eligible third-party investor by this deadline will be ineligible for award.

• A letter of commitment, signed by a person with authority, from each investor must include the following information:

o A statement that the investment is contingent on the receipt of an award from

DOE;

o A statement that the investor was/is not a current owner of the small business prior to the investment, or a family member or affiliate of an owner;

o A statement identifying the type of investor: a small business concern (500 or fewer employees) other than the small business applicant, a venture capital firm, an individual investor, a non-SBIR Federal, State or local government of the United States, or any combination thereof;

o The amount of the investment;

o A statement that the amount of the investment will be available to the small business concern during the entire period of the award from DOE; and o The expectations of the investor.

• Alternatively, if an investment has been executed, you may submit a copy of the agreement (e.g. term sheet) and supplement the copy of the agreement with a statement of information, if the copy of the agreement does not contain all of the information listed above. If for reasons of confidentiality you do not wish to submit the agreement, you may submit a letter of commitment from each investor.

PLEASE NOTE: Failure to expend all matching funds by the period of performance end date may result in the DOE reducing the Phase IIC award amount accordingly.

Also, DOE will not grant no fund extensions for the sole purpose of exhausting any unspent matching funds.

To be eligible to receive a Phase IIC award, Phase IIA or IIB awardees must complete their awards (including no fund extensions) prior to the award start date in this NOFO.

In addition, SBCs applying under Phase IIC need to submit an updated Commercialization Plan per the legislative text for the commercialization assistance pilot program.

mailto:sbir-sttr@science.doe.gov

B. Small Business Concerns

Applicants must meet the SBIR/STTR program eligibility requirements in 13 CFR 121, Small Business Size Regulations. The eligibility requirements are in place to ensure that the funds go only to small, independent U.S. businesses. The regulations include restrictions about (1) the type of firm, (2) its ownership structure, and (3) the firm’s size in terms of the number of employees. An SBC is one that, at the time of award for both Phase I and Phase II SBIR/STTR awards and continuation of the Phase II SBIR/STTR award, meets the requirements of all three restrictions.

SBCs must meet these criteria at both time of submission and time of award.

1. Type of Business

The purpose of the requirement regarding type of firm is to target the awards to firms with an economic interest in developing the idea or research into a commercial application. Joint ventures, as defined in “Appendices/Reference Material,” may apply, provided the entity created also qualifies as a small business at the time of the award. An SBC is one that, at the time of award for both Phase I and Phase II SBIR/STTR awards and continuation of the Phase II SBIR/STTR award, is:

• Organized for profit, with a place of business located in the United States (U.S.), and which operates primarily within the U.S., or which makes a significant contribution to the U.S. economy through payment of taxes or use of American products, materials or labor.

• May be in the legal form of an individual proprietorship, partnership, limited liability company, corporation, joint venture, association, trust or cooperative, except that where the form is a joint venture, each entity to the joint venture must meet the requirements set forth in paragraphs 1-3 under 2. Ownership Structure below.

2. Ownership Structure

The purpose of the ownership requirement is to limit the program to independent firms controlled by U.S. citizens or permanent resident aliens as a way of maximizing the likelihood that the funding will stimulate innovative activity within the U.S. economy. A majority (more than 50%) of your firm’s equity (e.g., stock) must be directly owned and controlled by one of the following:

1. One or more individuals who are citizens or permanent resident aliens of the U.S.

Each individual you include as part of the eligible ownership majority of your company must be either a citizen or permanent resident alien of the U.S. The term “individual” refers only to actual people—it does not refer to companies or other legal entities of any sort. “Permanent resident alien” refers to an alien admitted to the U.S.

as a lawful permanent resident by the U.S. Citizenship and Immigration Services. If a size determination is conducted of your firm, you may be asked to show proof of this ownership;

2. Other for-profit SBCs (each of which is more than 50% directly owned and controlled by individuals who are citizens or permanent resident aliens of the U.S.). If you include other for-profit SBCs as part of the eligible ownership majority of your firm, you must verify that each such concern is more than 50% owned and controlled by individuals who are U.S. citizens or permanent resident aliens of the U.S.;

3. A combination of (a) and (b) above. Additional ownership structures are identified in

13 CFR 121.702.

Ownership by venture capital operating companies, hedge funds, or private equity firms:

No single venture capital operating company, hedge fund, or private equity firm may own more than 50% of the concern unless that single venture capital operating company, hedge fund, or private equity firm qualifies as a small business concern that is more than 50% directly owned and controlled by individuals who are citizens or permanent resident aliens of the United States and meet the size and eligibility requirements in 13 CFR 121.

701, et seq., Size and Eligibility Requirements for the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs.

PLEASE NOTE:

SBIR ONLY: Applicants must meet size and eligibility requirements established in 13 CFR 121.701, et seq., Size and Eligibility Requirements for the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs. DOE has not elected to make a portion of its SBIR awards to SBCs that are majority-owned by multiple venture capital operation companies, hedge funds, or private equity firms under 15 U.S.C.

638(dd)(1) and 13 CFR 121.702(a)(1)(ii). SBCs majority-owned by multiple venture capital operation companies, hedge funds, or private equity firms are not eligible for awards contemplated by this Funding Opportunity Announcement.

Further information on eligibility for the SBIR/STTR programs is available from the Small Business Administration at 13 CFR 121.701, et seq., https://www.ecfr.gov/current/title- 13/chapter-I/part-121/subpart-A/subject-group-ECFRb7921b3fcf04228.

3. Business Size

An SBC must meet the following size requirements:

• Has, including its affiliates, not more than 500 employees and meets the other regulatory requirements found in 13 CFR 121. Business concerns, other than investment companies licensed, or development companies qualifying under the Small Business Investment Act of 1958, 15 U.S.C. 661, et seq., are affiliates of one another when either directly or indirectly, (a) one concern controls or has the power to control the other; or (b) a third-party/parties controls or has the power to control both.

Control can be exercised through common ownership, common management, and contractual relationships. The term “affiliates” is defined in greater detail in 13 CFR

121. The term “number of employees” is defined in 13 CFR 121.

• Further information may be obtained by contacting the Small Business Administration Size District Office at https://www.sba.gov/size.

C. Other Eligibility Requirements

All funded research or R&D must be performed in the U.S. for both Phases I and II, except under exceptional circumstances, for which an explanation must be submitted to DOE and an approval, if made, has been conveyed in writing by DOE. “U.S.” means the 50 states, the territories, and possessions of the U.S., the Commonwealth of Puerto Rico, the Republic of the Marshall Islands, the Federated States of Micronesia, the Republic of Palau, and the https://www.ecfr.gov/current/title-13/chapter-I/part-121/subpart-A/subject-group-ECFRb7921b3fcf04228 https://www.ecfr.gov/current/title-13/chapter-I/part-121/subpart-A/subject-group-ECFRb7921b3fcf04228 https://www.ecfr.gov/current/title-13/chapter-I/part-121/subpart-A/subject-group-ECFRb7921b3fcf04228 https://www.ecfr.gov/current/title-13/chapter-I/part-121/subpart-A/subject-group-ECFRb7921b3fcf04228 https://www.ecfr.gov/current/title-13/chapter-I/part-121/subpart-A/subject-group-ECFRb7921b3fcf04228 https://www.ecfr.gov/current/title-13/chapter-I/part-121/subpart-A/subject-group-ECFRb7921b3fcf04228 https://www.sba.gov/size

District of Columbia. Non-U.S. citizens are eligible to perform work on SBIR/STTR projects provided they are legally empowered to work in the U.S. at the time that an award is made and throughout the duration of the project. That is, a foreign national working on an SBIR/STTR project must NOT be an illegal alien and must be an immigrant alien or a foreign national visiting the U.S. on an approved visa.

In exceptional circumstances, where expertise or facilities do not exist in the U.S. to perform the R&D, applicants may propose to perform R&D outside the U.S. in their application. In these situations, the applicant must clearly justify the need for foreign R&D including details of domestic experts and facilities that were contacted to make this determination. No pre-approval of foreign R&D will be granted in advance of the application. DOE will make a determination on whether performance of R&D outside the U.S. is justified as part of the application review process. Insufficient justification may result in declination of the application.

None of the employees or owners of the applicant small business may be paid as consultants.

None of the employees or owners of the applicant small business may be employees of a subcontractor, except when the subcontractor is a research institution. Consultants must not be employees of any proposed subcontractor. Please note, a person listed on the budget form (Section A - Key/Senior Person or Section B - Other Personnel) as an employee of the SBC is required to be either (a) an owner of the business, (b) paid using a W-2 form, or (c) possess an Internal Revenue Service Form SS-8 determination that the person is an employee.

Persons receiving a 1099 (and not possessing an employee determination using Form SS-8) are to be treated as independent contractors and should be listed on the budget form in Section F - Other Direct Costs.

Increased minimum performance standards: Effective April 1, 2023, an SBC that received or receives more than 50 Phase II awards during the consecutive period of 10 fiscal years preceding the most recent 2 fiscal years (“covered period”), must have an average of $250,000 of aggregate sales and investments per Phase II award received during such covered period. An SBC that received or receives more than 100 Phase II awards during the consecutive period of 10 fiscal years preceding the most recent 2 fiscal years (“covered period”) must have an average of $450,000 of aggregate sales and investments per Phase II award received during such covered period.

The SBA is charged with implementation of the increased minimum performance standards.

Each SBC that is subject to an increased minimum performance standard must submit to the SBA supporting documentation evidencing that all covered sales of the SBC were properly used to meet the increased minimum performance standard. Covered sales are defined at 15 U.S.C. § 638(qq)(3)(B)(iii)(II).

There are consequences of failure to meet the increased minimum performance standards, including prohibition against receiving more than 20 total Phase I awards and Phase II awards from each agency during the 1-year period beginning on the date on which such determination is made.

1. Restrictions on Submitting Applications

Applications for Phase II, IIA or IIB may be submitted to either the SBIR or STTR program, or both, regardless of which program (SBIR or STTR) your Phase I award was granted.

However, the respective minimum level of effort requirements, i.e., small business participation, must be met. Please refer to “Restrictions on the Level of SBC participation” below. Please note that some topics only allow the submission of SBIR applications;

awardees under those topics may only submit Phase II, IIA, or IIB SBIR applications.

2. Mandatory Application Documents

Applicants must include all mandatory documents described in Section IV.C.9. Failure to include mandatory documents is grounds for administrative declination of the application.

3. Classified Applications

Classified applications are not accepted under the DOE SBIR/STTR Programs and will be appropriately destroyed. Applications that have a probability of resulting in classified work will be administratively declined. Applicants are expected to comply with the following clause, which will be included in any award:

NATIONAL SECURITY: CLASSIFIABLE RESULTS ORIGINATING UNDER AN

AWARD (DECEMBER 2014)

a. This award is intended for unclassified, publicly releasable research. You will not be granted access to classified information. DOE/NNSA does not expect that the results of the research project will involve classified information. Under certain circumstances, however, a classification review of information originated under the award may be required. The Department may review research work generated under this award at any time to determine if it requires classification.

b. Executive Order 13526 (75 Fed. Reg. 707 (January 5, 2010)) states that basic scientific research information not clearly related to the national security shall not be classified.

Nevertheless, some information concerning (among other things) scientific, technological, or economic matters relating to national security or cryptology may require classification. If you originate information during the course of this award that you believe requires classification, you must promptly:

1. Notify the DOE Project Manager and the DOE Award Administrator;

2. Submit the information by registered mail directly to the Director, Office of

Classification and Information Control, SO-10.2; U.S. Department of Energy; P.O.

Box A; Germantown, MD 20875-0963, for classification review.

3. Restrict access to the information to the maximum extent possible until you are informed that the information is not classified, but no longer than 30 days after receipt by the Director, Office of Classification and Information Control.

c. If you originate information concerning the production or utilization of special nuclear material (i.e., plutonium, uranium enriched in the isotope 233 or 235, and any other material so determined under section 51 of the Atomic Energy Act) or nuclear energy, you must:

1. Notify the DOE Project Manager and the DOE Award Administrator;

2. Submit the information by registered mail directly to the Director, Office of

Classification and Information Control, SO-10.2; U.S. Department of Energy; P. O.

Box A; Germantown, MD 20875-0963 for classification review within 180 days of the date the recipient first discovers or first has reason to believe that the information is useful in such production or utilization; and

3. Restrict access to the information to the maximum extent possible until you are informed that the information is not classified, but no longer than 90 days after receipt by the Director, Office of Classification and Information Control.

d. If DOE determines any of the information requires classification, you agree that the

Government may terminate the award with consent of the recipient in accordance with 2 CFR 200.339(c). All material deemed to be classified must be forwarded to the DOE, in a manner specified by DOE.

e. If DOE does not respond within the specified time periods, you are under no further obligation to restrict access to the information.

4. Export Control

The SBIR/STTR programs support research with commercial potential. As such, research in fields subject to export control regulation is not within the scope of this NOFO. Applications marked as containing material subject to export control regulation may be declined without merit review.

5. Restrictions on the Level of SBC Participation

SBC’s submitting to both the SBIR and STTR programs must meet eligibility requirements of both SBIR and STTR applicants. If an application is submitted to both programs but fails to meet the eligibility requirements for one of the programs, it will only be considered for the one program for which it does meet the eligibility requirements.

• SBIR - At least 50 percent of the research or analytical effort must be performed by the

SBC. Accordingly, at least 50 percent of the total funding requested on the budget form must be allocated to the SBC.

• STTR - Awards will be made to SBCs for cooperative R&D to be conducted jointly with a research institution. At least 40 percent of the work must be performed by the SBC, and at least 30 percent of the work must be performed by a single research institution.

Accordingly, at least 40 percent of the total funding requested on the budget form must be allocated to the SBC, and at least 30 percent must be allocated to a single research institution.

A Level-of-Effort and Max Funding worksheet in both PDF and Microsoft Excel versions is available to assist in calculating the analytical effort and checking that funding limits are not exceeded for the project at https://science.osti.gov/sbir/Applicant-Resources/Grant-Application.

6. Restrictions of the Principal Investigator (PI)

GENERAL PI REQUIREMENTS AND RESTRICTIONS

The PI is the individual designated by the applicant to direct the project. The PI must be knowledgeable in all technical aspects of the application and be capable of leading the research effort. Because DOE's evaluation of the application is critically dependent on the qualifications of the PI, changes in the PI that are made after award selection are strongly https://science.osti.gov/sbir/Applicant-Resources/Grant-Application discouraged. Requests for PI changes will be closely scrutinized and may cause delays in award execution.

In addition, the PI must devote a minimum of 520 hours to the project or at least five hours per week if the project is less than 24 months in duration. If the project is less than 24 months in duration, applicants must state in the Performance Schedule of the Project Narrative the duration of the project in weeks, in order to make clear that this requirement is fully met. If the application is selected for funding, the PI may be required to sign a statement certifying adherence to all PI requirements.

In order to ensure appropriate technical guidance for the project, only one PI will be accepted per project. Processing of applications that include co-PIs may be delayed while the error is corrected by the applicant. Non-U.S. citizens are eligible to perform work on SBIR/STTR projects provided he/she is legally empowered to work in the U.S. at the time that an award is made.

ADDITIONAL PI RESTRICTIONS WHEN SUBMITTING TO SBIR ONLY

To receive an SBIR award, the applicant must meet the general requirements and the PI’s primary employment must be with the SBC at the time of award and during the conduct of the proposed research. Primary employment means that no less than 20 hours per week is spent in the employment of the SBC during the conduct of the project and no more than 19 hours per week spent in the employment of another organization.

ADDITIONAL PI RESTRICTIONS WHEN SUBMITTING TO STTR ONLY

To receive an STTR award, the applicant must meet the general requirements and the PI's primary employment may be with the SBC or the research institution. However, the SBC must still provide technical control and oversight of the project. If the PI is employed by the research institution, his/her primary employment must be with the research institution in order to qualify under STTR. If the PI is employed by the SBC, his/her primary employment must be with the SBC. The PI must be listed and funds must be requested on the budget submitted from the entity that is the primary employer of the PI.

7. Restrictions on the Management of SBIR/STTR Projects

All SBIR and STTR funding agreements are made with the SBC regardless of the proportion of the work or funding of each of the performers (SBC, research institution, subcontractor, etc.) under the award. As the primary awardee, the SBC has the overall responsibility of the project, including financial management and the direction and control of the performance.

For STTR projects, even if the PI is from the research institution, the SBC must provide overall direction and supervision of the project while the PI will manage the research portion of the project.

It is recommended that all agreements between the SBC and any subcontractor (including the research institution collaborating in a STTR project) reflect the controlling management position of the SBC during the performance of Phase I and/or Phase II. This includes, but is not limited to, any business plan concerning agreements and responsibilities between the parties or for the commercialization of the resulting technology.

8. Restrictions on the Subcontracting and Consultants

None of the employees or owners of the applicant SBC may be consultants. None of the employees or owners of the applicant SBC may be employees of a Subcontractor except when the Subcontractor is a Research Institution. Consultants must not be employees of any proposed Subcontractor. SBC personnel cannot be reimbursed with DOE funding as a consultant under the project. SBC personnel cannot be reimbursed with DOE funding as an employee of a Subcontractor except when the Subcontractor is a Research Institution under the project. Non-U.S. citizens are eligible to perform work on SBIR/STTR projects provided they are legally empowered to work in the U.S. at the time the award is made.

9. Technology Transfer Opportunity Requirements

Each Phase II Technology Transfer Opportunity (TTO) application requires a written statement certifying that the small business and Research Institution have executed at least an option to license any patents owned by the Research Institution related to the TTO topic and that option can be extended to cover the Phase II/IIA/IIB/IIC award period. The written statement must affirm that the Research Institution provided the awardee, prior to the start of its Phase I award, with a no-cost, six-month option to license the technology. However, it is the responsibility of the small business to demonstrate adequate progress towards commercialization and to negotiate an extension to the option or convert the option to a license with the Research Institution. A small business’ failure to maintain suitable commercialization rights (at least an option to a license) makes the small business ineligible to apply for a Phase II/IIA/IIB/IIC award. The small business should also ensure that it has secured any other intellectual property rights necessary to successfully commercialize the technology.

D. Cost Sharing

For this NOFO, cost sharing is defined as contributions made by the applicant to the proposed research and development project described in the technical narrative. Cost sharing is not required. However, any commercial contributions will be considered as part of the evaluation. See Section IV.C.2., Phase II Funding Commitment (Commercial Contribution) [OPTIONAL for Phase II, Phase IIA, or Phase IIB; MANDATORY for Phase IIC] and Phase III Follow-On Funding Commitment [OPTIONAL] and the review criteria in Section VI.A., Criteria.

III. Program Description

A. Purpose

The DOE SC program in Small Business Innovation Research (SBIR)/Small Business Technology Transfer (STTR) invites eligible Phase I and Phase II awardees to apply for Phase II awards (initial, second, and third) under this NOFO. Topic descriptions for this NOFO can be found on the DOE SBIR/STTR web site at https://science.osti.gov/sbir/Funding-Opportunities.

B. Initial Phase II Awards

The purpose of an Initial Phase II award is to perform the research and development (R&D) required to meet the DOE objectives stated in the topic and subtopic of the Phase I NOFO. In addition, it is intended that the small business awardee would be in a position to pursue commercial applications of the R&D at the end of Phase II. In many cases, Phase II results in a prototype, product, or a working process that can be demonstrated to a potential investor or customer (either in the private sector or in the Federal government, including the DOE).

This NOFO is supplemental to the FY 2024 SBIR/STTR Phase I Release 1 NOFO (DE-FOA- 0003110); therefore, general information already provided in the Phase I NOFO also applies to this Phase II process.

If a conflict arises between the Phase I NOFO and this Phase II NOFO, the Phase II NOFO will govern.

C. Second Phase II Awards

There are two types of DOE Second Phase II awards:

1. Phase IIA: A Phase II awardee may request additional financial support for new R&D tasks and activities that are aligned with the original scope of work for the Phase II award.

The purpose of the Phase IIA award is to allow the awardee to complete the R&D associated with initial prototype, product, or process development. The review criteria (see Section VI.A.) for Phase IIA applications will be the same as for Initial Phase II awards submitted to this NOFO.

Only award recipients resulting from eligible topics detailed in Section III.A. of this NOFO may apply for Phase IIA awards.

In addition, Phase IIA applications will only be accepted from Phase II awardees that have an active Phase II award at time of application. Applicants will not be able to resubmit at a later date, if a Phase IIA application is declined for award.

2. Phase IIB: A Phase II awardee may request additional financial support for new R&D tasks and activities that extend beyond the scope of the original Phase II award.

The purpose of the Phase IIB award is to assist the awardee in transitioning the innovation towards commercialization. The review criteria for Phase IIB awards (see Section VI.A ) will be different from both Initial Phase II and Phase IIA applications submitted to this NOFO.

The review of Phase IIB applications will place greater emphasis on impact and applicants are expected to demonstrate a well-planned path to commercialization as evidenced in commercialization activities conducted in parallel with or after Phase IIB R&D.

Only award recipients resulting from eligible topics detailed in Section III.A. of this NOFO may apply for Phase IIB awards.

A Phase II awardee may submit only one second Phase II application per eligible award as noted above to either Phase IIA or Phase IIB in response to this NOFO. Phase IIA or Phase IIB awards may extend the Phase II award for up to two years and the combined Phase II and second Phase II should not exceed four years unless an unforeseen delay is encountered.

Phase II awardees whose Phase II projects were terminated prior to completion of the full period of performance are not eligible to apply for or receive a second Phase II award. Such applications will be declined without review.

D. Third Phase II Awards (SBIR only)

Third SBIR Phase II awards (Phase IIC) continue research and development from a second SBIR Phase II award towards commercialization and require matching funds from a third-party investor. These matching funds can be used for either (1) research and development costs NOT requested in your budget or (2) other costs associated with commercialization of the proposed innovation.

In addition, Phase IIC applications will only be accepted from Phase IIA or IIB awardees that have an active Phase IIA or IIB award at time of application. Applicants will not be able to resubmit at a later date, if a Phase IIC application is declined for award. Phase IIA or Phase IIB awardees whose Phase IIA or Phase IIB projects were terminated prior to completion of the full period of performance are not eligible to apply for or receive a Phase IIC awards.

Such applications will be declined without review.

E. Diversity, Equity, Inclusion, and Accessibility

The Federal SBIR/STTR Programs statutory purposes include fostering and encouraging participation in innovation and entrepreneurship by women and socially or economically disadvantaged persons. Diversity, Equity, Inclusion, and Accessibility (DEIA) is a cornerstone to effectively advancing the U.S. research and scientific innovation enterprise.

Effective stewardship and promotion of diverse and inclusive research environments and workplaces that value and celebrate a diversity of people, ideas, cultures, and educational backgrounds is foundational to delivering on the DOE SBIR/STTR mission.

The Department of Energy’s SBIR/STTR Programs collaborates with the Department of Energy Office of Science’s Office of Scientific Diversity, Equity, and Inclusion to advance organizational best practices for promoting DEIA in our business practices for awarding and managing competitive research. For more information on our work to advance DEIA, visit https://science.osti.gov/sbir/About/Diversity-Equity-and-Inclusion.

F. Program Goals, Objectives, and Priorities

The Small Business Innovation Research (SBIR) Program was established by Congress in 1982 [Public Law 97-219]. Its major goals are to:

• Stimulate technological innovation https://science.osti.gov/sbir/About/Diversity-Equity-and-Inclusion

• Use small business to meet Federal R/R&D needs

• Foster and encourage participation by the socially and economically disadvantaged small businesses, and those that are 51 percent owned and controlled by women, in technological innovation

• Increase private sector commercialization of innovations derived from Federal R/R&D, thereby increasing competition, productivity, and economic growth

The Small Business Technology Transfer (STTR) Program was established by Congress in 1992 [Public Law 102-564]. Its major goals are to:

• Stimulate and foster scientific and technological innovation through cooperative research and development carried out between small business concerns and research institutions

• Foster technology transfer between small business concerns and research institutions

Through subsequent reauthorization for both programs [Public Laws 106-554, 107-50, 112- 81], Congress has continued to expand and evolve the programs. Examples include the requirement for proposal evaluation to consider commercial potential of the proposed R&D, periodic evaluations of the SBIR/STTR programs by the National Academies and the Government Accountability Office, and the establishment of pilot programs to evaluate potential program improvements.

The Federal SBIR STTR Programs were reauthorized on September 30, 2022, when the SBIR/STTR Extension Act of 2022 became law. This Act extends the SBIR STTR Programs through to September 30, 2025.

G. Award Contribution to Goals and Objectives

Awards resulting from this NOFO are intended to increase our understanding of scientific phenomena.

H. Performance Goals

You will be expected to demonstrate progress toward increasing knowledge in periodic progress reports.

I. Program Unallowable Costs

You must apply the cost principles of 2 CFR 200, as supplemented by 2 CFR 910 to your application and any resulting award.

J. Citations to Statute and Regulations

STATUTORY AUTHORITY

Section 646 of Public Law 95-91, U.S. Department of Energy Organization Act Section 901, et seq. of Public Law 109-58, Energy Policy Act of 2005 Section 9 of the Small Business Act (15 U.S.C. § 638);

APPLICABLE REGULATIONS

Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, codified at 2 CFR 200 U.S. Department of Energy Financial Assistance Rules, codified at 2 CFR 910 Size and Eligibility Requirements for the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs, codified at 13 CFR 121.701 et seq.

K. SBIR/STTR Programs Outcomes

You can learn more about SBIR/STTR Programs Outcomes at, https://science.osti.gov/sbir/Success-Story-Listing-Page.

L. Other Information

ANTICIPATED AWARD SIZE

The anticipated median award will be approximately $1,100,000.

Ceiling (i.e., the maximum amount for an individual award made under this NOFO):

INITIAL PHASE II

FY 2024 Phase I Release 1 awardees: See the maximum Phase II award amount listed for each topic in the topics document associated with the FY 2024 Phase I Release 1 NOFO (DE- FOA-0003110 - https://science.osti.gov/sbir/Funding-Opportunities/FY-2024). The maximum allowable Phase II award will be either $1,100,000 or $1,600,000, depending on the topic. If Technical and Business Assistance (TABA) funding is requested, the maximum allowable Phase II award will be either $1,150,000 or $1,650,000, depending on the topic.

SECOND & THIRD PHASE II

Phase IIA: $1,100,000 Phase IIB: $1,100,000 Phase IIC: $1,100,000

If TABA funding is requested, the maximum allowable Phase IIA, IIB, or IIC award will be $1,150,000.

Floor (i.e. the minimum amount for an individual award made under this NOFO): $1.

Applications in which the total Federal funds requested (SF-424, 15a) or the total project cost (budget, Section K) exceeds the maximum award size (or the maximum award plus $50,000 for those requesting Technical and Business Assistance (TABA) funds) will be administratively declined.

EXPECTED NUMBER OF AWARDS

DOE anticipates making approximately 75 awards under this NOFO depending on the size of the awards. All Phase II awards (Phase II, IIA, IIB, and IIC) will compete for funding. The majority of funding is anticipated to be used for initial Phase II awards.

PERIOD OF PERFORMANCE

https://science.osti.gov/sbir/Success-Story-Listing-Page https://science.osti.gov/sbir/Funding-Opportunities/FY-2024

DOE anticipates making awards that will run for up to 24 months over two budget periods.

For initial Phase II awards, the first budget period, which will cover 12 months, is anticipated to begin April 14, 2025.

Funding for the second budget period will be contingent on the demonstration of adequate progress, evaluation of programmatic priorities, availability of funds, and compliance with the terms and conditions of the award.

M. Justice40 Initiative

The Justice40 initiative, established by E.O. 14008 “Tackling the Climate Crisis at Home and Abroad”, January 27, 2021, sets a goal that 40% of the overall benefits of certain federal investments flow to disadvantaged communities. Pursuant to E.O. 14008 and the Office of Management and Budget’s Interim Justice40 Implementation Guidance M-21-28 and M-23- 09, DOE recognizes disadvantaged communities as defined and identified by the White House Council on Environmental Quality’s Climate and Economic Justice Screening Tool (CEJST), located at https://screeningtool.geoplatform.gov/. DOE’s Justice40 Implementation Guidance is located at https://www.energy.gov/sites/default/files/2022- 07/Final%20DOE%20Justice40%20General%20Guidance%20072522.pdf.

https://screeningtool.geoplatform.gov/ https://www.energy.gov/sites/default/files/2022-07/Final%20DOE%20Justice40%20General%20Guidance%20072522.pdf https://www.energy.gov/sites/default/files/2022-07/Final%20DOE%20Justice40%20General%20Guidance%20072522.pdf

IV. Application Contents and Format

A. Preliminary Submissions

1. Letter of Intent (LOI)

LOI DUE DATE

The LOI due date is printed on the cover of this NOFO. Only those applicants that submit an LOI which is received by DOE by the due date are eligible to submit an application under this NOFO.

LOI SUBMISSION

LOIs are created in the software system of your choice and must be submitted electronically through the DOE SC Portfolio Analysis and Management System (PAMS) website https://pamspublic.science.energy.gov/. You cannot draft or edit an LOI in PAMS. Do not submit an LOI through FedConnect or Grants.gov.

It is important that the LOI be a single file with extension .pdf, .docx, or .doc. LOIs may be submitted by a PI or by other users at the SBC with the “Submit to DOE” privilege in PAMS.

Anyone submitting an LOI must register for an account in PAMS before it will be possible to submit the LOI. Anyone submitting an LOI is encouraged to establish a PAMS account as soon as possible to avoid submission delays.

The LOI must contain the following information:

• Business Official name and contact information (telephone number and email address)

• Name(s) of any proposed subcontractor(s) or consultant(s)

• DOE Award Number DE-SC000XXXX

• Type of Phase II submission: Phase IIA, IIB or IIC

• Project Title (The project title should be the same as the award title.)

• Phase I topic and subtopic number (same as your Phase I and initial Phase II)

• Technical abstract that sufficiently describes your technology and application.