FY24 SBIR Phase I.pdf

FY 2024-NIST SMALL BUSINESS INNOVATION RESEARCH PROGRAM PHASE I

NOTICE OF FUNDING OPPORTUNITY No. 2024-NIST-SBIR-01 October 24, 2023

NOTICE OF FUNDING OPPORTUNITY (NOFO)

Small Business Innovation Research (SBIR) Program Phase I

EXECUTIVE SUMMARY

• Federal Agency Name: National Institute of Standards and Technology (NIST), United States Department of Commerce (DoC)

• Funding Opportunity Title: Small Business Innovation Research (SBIR) Program

Phase I

• Announcement Type: Initial

• Funding Opportunity Number: 2024-NIST-SBIR-01

• Assistance Listing (CFDA Number): 11.620, Science, Technology, Business and/or Education Outreach

• Dates: Full Applications must be received at Grants.gov no later than 11:59 p.m.

Eastern Time, December 22, 2023. Applications received after this deadline will not be reviewed or considered.

Applicants should be aware, and factor in their application submission planning, that the Grants.gov system closes periodically for routine maintenance. Applicants should visit Grants.gov for information on any scheduled closures.

NIST expects to complete its review, selection of successful applicants, and award processing by February 2024. NIST expects the earliest start date for awards under this NOFO to be March 2024.

• Application Submission Address: Applications must be submitted using

Grants.gov. Paper applications will not be accepted.

• Funding Opportunity Description: The Small Business Innovation Research

(SBIR) Program Phase I is seeking applications from eligible applicants to explore the technical merit or feasibility of an innovative idea or technology with the aim of developing a viable product or service that will be introduced to the commercial marketplace.

• Anticipated Amounts: NIST anticipates funding approximately ten (10) awards with a period of performance of up to six (6) months. Individual award amounts may be https://www.grants.gov/ https://www.grants.gov/web/grants/support/calendar.html up to $100,000 with up to an additional $6,500 for Technical and Business

Assistance (TABA), see section 5.12 for TABA information.

• Funding Instrument: Cooperative Agreement.

• Eligibility: 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.

• Cost Sharing Requirements: Non-federal cost share is not required for awards issued pursuant to this NOFO.

Table of Contents

1.0 PROGRAM DESCRIPTION AND FEDERAL AWARD INFORMATION……………………………………………………….4

1.01 Introduction………………………………………………………………………………………………………………………………4

1.02 Three-Phase Program………………………………………………………………………………………………………………..5

1.03 SBIR Applicant Eligibility and Limitations……………………………………………………………………………………7

1.04 Contact with NIST……………………………………………………………………………………….……………………………14

1.05 Definitions…………………………………………………………………………………………………….…………………………15

1.06 Fraud, Waste, and Abuse…………………………………………………………………………………………………………23

1.07 Other Information……………………………………………………………………………………………………………………25

2.0 CERTIFICATIONS AND RESEARCH INVOLVING HUMANS AND ANIMALS……………………………………………26

2.01 Due Diligence Certification…………………………………………………………………………………………………

2.02 Cyber Security Education and Training Requirements for Phase I and Phase II Awardees………………………………………………………………………………………………………………………………………..26

2.03 Funding Agreement Certification………………………………………………………………….……………………..….28

2.04 Research Activities Involving Human Subjects, Human Tissue, Data or Recording Involving Human Subjects Including Software Testing……………………………….…………………….…………………………….28

2.05 Research Activities Involving Live Vertebrate Animals or Pre-Existing Cell Lines/Tissues From Vertebrate Animals…………………………………………………………………….……………………..……………………………30

2.06 Certifications Regarding Federal Felony and Federal Criminal Tax Convictions, Unpaid Federal Tax Assessments and Delinquent Federal Tax Returns…………………………………………………………………….31

3.0 APPLICATION PREPARATION INSTRUCTIONS AND REQUIREMENTS………………………………………………….31

3.01 Phase I Application Requirements……………………………………………………………………………………………31

3.02 Phase I Application………………………………………………………………………………………………………………….33

4.0 METHOD OF SELECTION AND EVALUATION CRITERIA………………………………………………………………………39

4.01 Introduction…………………………………………………………………………………………………………………………….39

4.02 Phase I Screening Criteria………………………………………………………………………………………………………..40

4.03 Phase I Evaluation Criteria……………………………………………………………………………………………………….41

4.04 Phase I Award Selections………………………………………..……………………………………………………………….42

5.0 CONSIDERATIONS…………………………………………………………………………………………………………………………….44

5.01 Awards………………………………………………………………………………………………………………………………………44

5.02 Reporting Requirements……………………………………………………………………………………………………………45

5.03 Payment Schedule…………………………………………………………………………………………………………………….46

5.04 Innovations, Inventions and Patents………………………………………………………………………………………...46

5.05 Cost Sharing………………………………………………………………………………………………………………………………55

5.06 Profit or Fee……………………………………………………………………………………………………………………………...55

5.07 Joint Ventures or Limited Partnerships…………………………………………………………………………………..…56

5.08 Research an Analytical Work…………………………………………………………………………………………………….56

5.09 Awardee Commitments…………………………………………………………………………………………………………….56

5.10 Summary Statements……………………………………………………………………………………………………………..…56

5.11 Additional Information………………………………………………………………………………………………………………58

5.12 Technical and Business Assistance (TABA)………………………………………………………………………………...58

5.13 Technical Assistance for Application Preparation and Project Conduct……………………………………..59

6.0 SUBMISSION OF APPLICATIONS……………………………………………………………………………………………………….59

6.01 Deadline of Applications……………………………………………………………………………………………………………60

6.02 Standard Application Package…………………………………………………………………………………………………..60

6.03 Application Submission……………………………………………………………………………………………………………..61

7.0 SCIENTIFIC AND TECHNICAL INFORMATION SOURCES……………………………………………………………………..63

8.0 SUBMISSION FORMS AND CERTIFICATIONS……………………………………………………………………………………..63

8.01 Required Forms and Document…………………………………………………………………………………………………63

8.02 Attachment of Required Application Documents………………………………………………………………………70

8.03 Verifying the Submission and Tracking the Application…………………………………………………………..…71

8.04 Unique Entity Identifier and System for Award Management (SAM)…………………………………………72

9.0 RESEARCH AREAS…………………………………………………………………………………………………………………………….72

Advanced Communications, Networks and Scientific Data Systems……………………………………………….…73 Advanced Manufacturing and Material Measurements…………………………………………………………………...73 Cybersecurity and Privacy…………………………………………………………………………………………………………………73 Fundamental Measurement, Quantum Science and Measurement Dissemination…………………………..74 Health and Biological Systems Measurements………………………………………………………………………………….74

Physical Infrastructure and Resilience……………………………………………………………………………………………….74 Exploratory Measurement Science……………………………………………………………………………………………………74

Appendix A COVER SHEET……………………………………………………………………………………………………………………..76 Appendix B. SBIR Certifications……………………………………………………………………………………………………………..78 SBIR Funding Agreement Certification (at time of award) …………………………………………………………………….78 SBIR Funding Agreement Certification (Life-Cycle Certifications) ………………………………………………………….82

Appendix C. Required Disclosures of Foreign Affiliations or Relationships………………………………………….85

1.0 PROGRAM DESCRIPTION AND FEDERAL AWARD INFORMATION

1.01 Introduction

The National Institute of Standards and Technology (NIST) invites small businesses to submit Phase I research applications under this Notice of Funding Opportunity (NOFO). Science and technology-based firms with strong research capabilities in any of the areas listed in Section 9.0 of this NOFO are encouraged to participate.

Applications must sufficiently identify and clearly address a specific NIST technical program area that falls within one of the research areas described in Section 9.0 (see Section 3.02.02(1)(a) and (b)) or a NIST-patented technology available for licensing (see Section 3.02.02(1)(c)).

Only FY 2024 Phase I applications may be submitted in response to this NOFO. Phase II applications are not being accepted at this time. NIST publishes a Phase II NOFO approximately 30 days prior to the end of the previous year’s Phase I period of performance to request Phase II applications. That NOFO provides instructions for Phase I awardees to prepare a Phase II application and the closing date for submission of applications; only the previous year’s Phase I awardees are eligible to submit a Phase II application.

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. It 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 external 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 business to meet Federal R/R&D needs; (3) foster and encourage 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 NIST FY 2024 SBIR Program identifies and solicits applications in topics that fall within NIST’s mission, as described in Section 9.0 of this NOFO, and allow collaboration between NIST scientists and the SBIR awardees whenever possible.

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,” § 1203(e) of the Energy Independence and Security Act of 2007 (P.L. 110-140), codified at 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.

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.

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

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 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, 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.

1.02.02 Phase II – Research and Development

All Phase I awardees under this NOFO will be given the opportunity to submit a Phase II application following completion of Phase I. Instructions for Phase II application preparation and submission requirements will be published in a NOFO approximately 30 days prior to the end of the FY2024 Phase I performance period.

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. Once 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.

1.02.04 Commercialization Readiness Pilot Program

15 U.S.C. § 638(gg) authorizes agencies to establish a Commercial Readiness Pilot Program (CRPP). Under a CRPP, follow-on funding (up to an additional $100,000) may be provided to selected awardees after competition of Phase II. The funding would be used to support advancement toward Phase III and to increase the likelihood of commercialization. NIST is under no obligation to make any CRPP awards.

1.03 SBIR Applicant Eligibility and Limitation

1.03.01 Applicant Qualifications

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 the 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’s investigator’s time is spent working with 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 I 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 will not be considered for award.

For Phase I, a minimum of two-thirds of the research and/or analytical effort must be performed by the awardee. The total cost for all consultant fees, facility leases, usage fees, and other subcontract/subaward or purchase agreements may not exceed one-third of the total 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 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 V- VI). 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.

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

8.02 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 http://www.sbir.gov/ https://www.sbir.gov/sites/default/files/SBA%20SBIR_STTR_FINAL_APPENDICES_MAY2023.pdf https://www.sbir.gov/sites/default/files/SBA%20SBIR_STTR_FINAL_APPENDICES_MAY2023.pdf https://www.sbir.gov/registration

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 FR 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 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 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

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.

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.

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

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 2023 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 2024 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

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

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

Grant Rules and Regulations Dean Iwasaki Phone: (301) 975-8449 E-mail: dean.iwasaki@nist.gov

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.

https://www.sbir.gov/feedback https://www.sbir.gov/performance-benchmarks mailto:jacqueline.gray@nist.gov mailto:nicole.berry@nist.gov mailto:support@grants.gov mailto:dean.iwasaki@nist.gov

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.

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— https://www.ecfr.gov/current/title-2/section-200.331 http://uscode.house.gov/view.xhtml?req=(title:31%20section:6302%20edition:prelim)%20OR%20(granuleid:USC-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

(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, 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 http://www.law.cornell.edu/cfr/text/13/121.103 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 standard terms and conditions of a Federal 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 standard 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 standard 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.

Subaward, 2 CFR § 200.1 – An award provided by a pass-through entity to a 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 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 women, 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.

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 which the Federal Government is obligated to protect SBIR/STTR Data against unauthorized use and disclosure in accordance with SBIR/STTR Data Rights. The SBIR/STTR Protection Period begins at award of an SBIR/STTR Funding Agreement and ends not less than twenty years from that date (See § 8(b)(4) of the SBIR/STTR Policy Directive).

SBIR/STTR Technical Data Rights - The Federal Government’s rights during the SBIR/STTR Protection Period in SBIR/STTR Data that are Technical Data or any other type of Data other than Computer Software.

(1) The Federal Government may, use, modify, reproduce, perform, display, release, or disclose SBIR/STTR Data that are Technical Data within the Government; however, the Government shall not use, release, or disclose the data…