FY24-SBIR-STTR-Phase-2-RFA-P-MOD1.pdf

REQUEST FOR APPLICATIONS

Small Business Innovation Research and Small Business Technology Transfer

Programs Phase II

MODIFICATIONS: 12/6/2023 – This RFA has been modified from the original announcement. Edits are indicated using track changes and red font so the public/potential applicants can identify the changes within the solicitation.

Edits appear on pages: 22, 30, and 37

FUNDING YEAR: Fiscal Year (FY) 2024 and FY 2025

APPLICATION DEADLINE: FY 2024 March 26, 2024 FY 2025 March 25, 2025 (Anticipated)

ANTICIPATED PROGRAM FUNDING: FY 2024: $19,500,000 for SBIR $2,600,000 for STTR FY 2025: $19,500,000 for SBIR $3,250,000 for STTR

AVERAGE INDIVIDUAL AWARD

RANGE:

$600,000 - $650,000 (As applicable)

FUNDING OPPORTUNITY NUMBER: USDA-NIFA-SBIR-010287

ASSISTANCE LISTING NUMBER: 10.212

INITIAL ANNOUNCEMENT

National Institute of Food and Agriculture United States Department of Agriculture

Assistance Listing Number: The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs Phase II is listed in the Assistance Listings number 10.212.

Key Information 1: Key Dates and Deadlines

a) Application Deadline: FY 2024: March 26, 2024, 5:00 P.M. Eastern Time FY 2025: March 25, 2025, 5:00 P.M. Eastern Time (Anticipated)

b) Letter of Intent: Not Required

c) Applicants Comments: Within six months from the issuance of this notice (NIFA may not consider comments received after the sixth month)

Advancing Diversity, Equity, Inclusion, and Accessibility (DEIA). The National Institute of Food and Agriculture (NIFA) recognizes research, education, and extension efforts will have the greatest impacts when programs are grounded in DEIA. NIFA is committed to enhancing DEIA through its programs and encourages individuals, institutions, and organizations from underserved communities to apply to funding opportunities as lead, co-lead, or subaward recipient(s), and to engage as leaders in the peer panel review process to support the development of strong networks and collaborations. NIFA encourages applications that engage diverse communities and have broad impacts through research, education, extension, and integrated activities to address current and future challenges.

Stakeholder Input. NIFA seeks comments on all Request for Applications (RFA) in order to deliver programs efficiently, effectively, with integrity, and with a focus on customer service.

NIFA considers comments to the extent possible when developing RFAs, and uses comments to help meet the requirements of Section 103(c)(2) of the Agricultural Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7613(c)(2)). Applicants may submit written comments to Policy@usda.gov (email is for comments only). Please use the following subject line:

Response to the SBIR/STTR Phase II RFA.

https://nifa.usda.gov/resource/agricultural-research-extension-and-education-reform-act-1998 https://nifa.usda.gov/resource/agricultural-research-extension-and-education-reform-act-1998 https://uscode.house.gov/view.xhtml?req=(title:7%20section:7613%20edition:prelim)%20OR%20(granuleid:USC-prelim-title7-section7613)&f=treesort&edition=prelim&num=0&jumpTo=true mailto:Policy@usda.gov

EXECUTIVE SUMMARY

This RFA is being released prior to the passage of appropriation acts for FY 2024 and FY 2025.

Enactment of a continuing resolution, appropriations act, or other authorizing legislation may affect the availability or level of funding for this program.

This notice identifies the objectives for the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Phase II projects, deadlines, funding information, eligibility criteria for projects and applicants, application forms and associated instructions, and review requirements.

The USDA SBIR/STTR programs focus on transforming scientific discovery into products and services with commercial potential and/or societal benefit. Unlike fundamental research, the USDA SBIR/STTR programs support small businesses in the creation of innovative, and/or disruptive technologies and enable the application of research advancements from conception into the market. The STTR program aims to foster technology transfer through formal cooperative research and development (R&D) between small businesses and nonprofit research institutions.

Different from most other investors, the USDA SBIR/STTR programs fund early or "seed" stage research and development that has a commercial potential. The programs provide equity-free funding and entrepreneurial support at the earliest stages of company and technology development.

Key differences between USDA’s SBIR and STTR programs include the percentage of research conducted by nonprofit research institutions (e.g., universities and Federal laboratories) and the primary employment of the project’s project director/principal investigator (PD/PI). STTR applications require a formal cooperative agreement detailing the allocation of intellectual property rights to carry out follow-on research, development, or commercialization activities.

NIFA requests applications for the Phase II SBIR/STTR programs for fiscal year FY 2024 and FY 2025 from previous SBIR/STTR program Phase I awardees.

TABLE OF CONTENTS

INITIAL ANNOUNCEMENT

EXECUTIVE SUMMARY

TABLE OF CONTENTS

TABLE OF KEY INFORMATION

PART I. FUNDING OPPORTUNITY DESCRIPTION

A. Legislative Authority B. Purpose and Priorities C. Program Area Descriptions D. Potential Commercial Outcome E. Technical and Business Assistance

PART II. AWARD INFORMATION

A. Available Funding B. Application Restrictions C. Project and Grant Types D. Ethical Conduct of Funded Projects

PART III. ELIGIBILITY INFORMATION

A. Eligibility Requirements B. STTR Partnering Nonprofit Research Institution Eligibility Criteria C. Cost Sharing or Matching

PART IV. APPLICATION AND SUBMISSION

A. Method of Application B. Content and Form of the Application C. Funding Restrictions D. Submission Dates and Times

PART V. APPLICATION REVIEW REQUIREMENT

A. NIFA’s Evaluation Process B. Evaluation Criteria C. Proprietary Information D. Rights in Technical Data E. Copyrights F. Patents and Inventions G. Research Involving Special Considerations H. Grantee Commitments I. Additional Information J. Organizational Management Information K. Application Disposition

PART VI. AWARD ADMINISTRATION

A. General B. Administrative and National Policy Requirements C. Expected Program Outputs and Reporting Requirements

PART VII. OTHER INFORMATION

A. Use of Funds and Changes in Budget B. Confidential Aspects of Applications and Awards C. Regulatory Information D. Limited English Proficiency

APPENDIX I: AGENCY CONTACTS

APPENDIX II: GLOSSARY OF TERMS

APPENDIX III: DEFINITIONS .................................................. Error! Bookmark not defined.4

TABLE OF KEY INFORMATION

Key Information 1: Key Dates and Deadlines Key Information 2: Comparison of Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs Key Information 3: Steps to Obtain Application Materials Key Information 4: Help and Resources Key Information 5: Key Application Instructions

PART I. FUNDING OPPORTUNITY DESCRIPTION

A. Legislative Authority The SBIR and STTR Extension Act of 2022, Public Law No. 117–183, reauthorizes and modifies the Small Business Innovation Research (SBIR) program, the Small Business Technology Transfer (STTR) program, and related pilot programs through FY 2025.

The act requires agencies with an SBIR or STTR program to assess the security risks presented by offerors with financial ties or obligations to certain foreign countries. This will be implemented through a Due Diligence to Assess Security Risks Program. SBIR/STTR may not make awards to businesses with certain connections to foreign entities. To comply with this requirement, the program will require all SBIR/STTR Phase II applicants to complete additional certifications disclosing ties to foreign countries of concern at application and as needed during the life of the funding agreement. Any questions regarding the Disclosure of Foreign Affiliations or Relationships to Foreign Countries Form should be emailed to sm.ddsbir@usda.gov.

These certifications will include:

1. The identity of all owners and covered individuals of the small business concern (SBC) who are a party to any foreign talent recruitment program of any foreign country of concern;

2. The existence of any joint venture or subsidiary of the SBC that is based in, funded by, or has a foreign affiliation with any foreign country of concern;

3. Any current or pending contractual or financial obligation or other agreement specific to a business arrangement, or joint venture-like arrangement with an enterprise owned by a foreign state or any foreign entity;

4. Whether the SBC is wholly owned in a foreign country of concern;

5. The percentage, if any, of venture capital or institutional investment by an entity that has a general partner or individual holding a leadership role in such entity who has a foreign affiliation with any foreign country of concern;

6. Any technology licensing or intellectual property sales to a foreign country of concern, during the 5-year period preceding submission of the proposal; and

7. Any foreign business entity, offshore entity, or entity outside the United States related to the SBC.

The SBIR and STTR Extension Act of 2022 defines the term “foreign country of concern” to include “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.”

The term “foreign talent recruitment program” or “malign foreign talent recruitment program” is defined in section 10632 of the CHIPS Act of 2022, 42 U.S.C.A. § 19237. Additional information may be found in the Guidance for Implementing National Security Presidential Memorandum 33 (NSPM-33) issued by the Office of Science and Technology Policy (OSTP).1

1 Available at https://www.whitehouse.gov/wp-content/uploads/2022/01/010422-NSPM-33-Implementation- Guidance.pdf.

https://www.congress.gov/bill/117th-congress/senate-bill/4900/text mailto:sm.ddsbir@usda.gov https://www.congress.gov/117/plaws/publ183/PLAW-117publ183.pdf https://www.congress.gov/bill/117th-congress/house-bill/4346/text https://www.federalregister.gov/documents/2023/03/07/2023-04660/request-for-information-nspm-33-research-security-programs-standard-requirement https://www.whitehouse.gov/wp-content/uploads/2022/01/010422-NSPM-33-Implementation-Guidance.pdf https://www.whitehouse.gov/wp-content/uploads/2022/01/010422-NSPM-33-Implementation-Guidance.pdf

NSPM-33 describes “Foreign government-sponsored talent recruitment program” as follows:

Effort organized, managed, or funded by a foreign government, or a foreign government instrumentality or entity, to recruit science and technology professionals or students (regardless of citizenship or national origin, or whether having a full-time or part-time position). Some foreign government-sponsored talent recruitment programs operate with the intent to import or otherwise acquire from abroad, sometimes through illicit means, proprietary technology or software, unpublished data and methods, and intellectual property to further the military modernization goals and/or economic goals of a foreign government. Many, but not all, programs aim to incentivize the targeted individual to relocate physically to the foreign state for the above purpose. Some programs allow for or encourage continued employment at United States research facilities or receipt of Federal research funds while concurrently working at and/or receiving compensation from a foreign institution, and some direct participants not to disclose their participation to United States entities. Compensation could take many forms including cash, research funding, complimentary foreign travel, honorific titles, career advancement opportunities, promised future compensation, or other types of remuneration or consideration, including in-kind compensation.

Further, the act instated increased performance standards for more experienced SBIR/STTR firms regarding transition from Phase I to Phase II as well as commercialization benchmarks for Phase II awardees.

Additional guidance and program policy is provided by the Small Business Administration (SBA) through the SBIR/STTR Policy Directive.

B. Purpose and Priorities The SBIR and STTR Programs are administered by NIFA. The SBIR/STTR programs are Congressionally mandated and intended to support scientific excellence and technological innovation through the investment of Federal research funds to build a strong national economy by stimulating technological innovation in the private sector; strengthening the role of small business in meeting Federal research and development needs; increasing the commercial application of Federally supported research results; and fostering and encouraging participation by socially and economically disadvantaged and women-owned small businesses. Further, the objective of the STTR program is to stimulate formal cooperative partnerships of ideas and technologies between small businesses and nonprofit research institutions (e.g., Universities and Federal laboratories).The USDA SBIR/STTR programs Assistance Listing 10.212, are therefore in a unique position to meet both the goals of USDA and the purpose of the SBIR/STTR legislation by transforming scientific discovery and innovation with both social and economic benefit, and by emphasizing private sector commercialization.

These programs are subject to the provisions found at 7 CFR Part 3403. These provisions set forth procedures to be followed when submitting grant applications, rules governing the evaluation of applications and the awarding of grants, and regulations relating to the post-award administration of grant projects.

https://www.sbir.gov/about#policy-directive https://www.ecfr.gov/current/title-7/part-3430

The USDA SBIR/STTR programs are carried out in three separate phases. This program solicitation is only for the preparation and submission of SBIR/STTR Phase II applications. Only prior Phase I grant recipients are eligible to submit a Phase II application. The aim of SBIR/STTR Phase II applications is to continue the R&D developed under Phase I with a goal to commercialize and bring the innovation to market as the Phase II project completes. Phase II will require a more comprehensive application, outlining the proposed effort in detail and the commercialization strategy for the effort. USDA-NIFA recognizes that Phase II awards may not be sufficient in either dollars or time for the firm to complete the total R/R&D and the commercialization activities required to bring the project results to a marketplace. Therefore, completion of the research under these circumstances may have to be carried into Phase III.

Phase III refers to work that derives from, extends, or logically concludes effort(s) performed under prior SBIR/STTR funding, but is funded by sources other than the SBIR/STTR programs.

Phase III work is typically oriented towards completing the commercialization of SBIR/STTR research or technology.

The USDA SBIR/STTR programs currently have no specific procurement focus, and consequently, USDA offers ten solicitation topic areas that are intended to permit a broad spectrum of eligible and innovative science- and technology-based small businesses to compete for funding. The topics are detailed within this solicitation. These ten solicitation topic areas provide an opportunity to pursue the following USDA priorities:

1. Addressing climate change via climate-smart agriculture and forestry

2. Advancing racial justice, equity, and opportunity

3. Creating more and better market opportunities

4. Tackling food and nutrition insecurity

The SBIR/STTR Phase II programs are aligned with the following USDA Strategic Goals

FY 2022-2026:

1. Strategic Goal 1: Combat Climate Change to Support America’s Working Lands, Natural Resources and Communities and specifically addresses Objectives 1.1, 1.2, 1.3, and 1.4.

2. Strategic Goal 2: Ensure America’s Agricultural System is Equitable, Resilient, and Prosperous and specifically addresses Objectives 2.1, 2.2, and 2,.3.

3. Strategic Goal 3: Foster an Equitable and Competitive Marketplace for All Agricultural Producers and specifically addresses Objectives 3.1 and 3.2.

4. Strategic Goal 4: Provide All Americans Safe, Nutritious Food and specifically addresses Objectives 4.1, 4.2, and 4.3.

5. Strategic Goal 5: Expand Opportunities for Economic Development and Improve Quality of Life in Rural and Tribal Communities and specifically addresses Objectives 5.1, 5.2, 5.3, and 5.4.

The SBIR/STTR Phase II programs are aligned with the following USDA Science and Research Strategy, 2023–2026 priorities:

1. Priority 1: Accelerating Innovative Technologies & Practices

2. Priority 2: Driving Climate-Smart Solutions

3. Priority 3: Bolstering Nutrition Security & Health

4. Priority 4: Cultivating Resilient Ecosystems https://www.usda.gov/sites/default/files/documents/usda-fy-2022-2026-strategic-plan.pdf https://www.usda.gov/sites/default/files/documents/usda-science-research-strategy.pdf https://www.usda.gov/sites/default/files/documents/usda-science-research-strategy.pdf

Climate Smart Agriculture and Forestry. The USDA SBIR/STTR Programs administered by NIFA recognizes and is committed to supporting USDA FY 2022-2026 Strategic Goals, which includes combating climate change in efforts to support America’s Working Lands, Natural Resources, and Communities. NIFA encourages the use of Climate Science Technology when appropriate to enhance projects.

Global Engagement. NIFA supports global engagement that advances U.S. agricultural goals.

NIFA recognizes that collaboration with international partners may be necessary to attain the agency's goals for U.S. agriculture, promote global competence of our nation’s future agricultural workforce, and promote safe and nutritious food security in a growing world.

Therefore, although application to this RFA is limited to eligible U.S. institutions, applicants may collaborate with international partners, to include subcontracts to international partners or other institutions. Applications must clearly demonstrate benefits to the United States.

For a program informational webinar please visit the NIFA calendar for dates, event registration, and link. If you need a reasonable accommodation to participate in any of the informational webinars listed, please contact the event host listed no later than 10 days prior to the event.

Additional requirements on expected performance goals, indicators and targets may be required as a condition of award.

C. Program Area Descriptions

NIFA is soliciting applications under the following ten SBIR/STTR topics / program areas:

8.1 Forests and Related Resources

8.2 Plant Production and Protection (Biology)

8.3 Animal Production and Protection

8.4 Conservation of Natural Resources

8.5 Food Science and Nutrition

8.6 Rural and Community Development

8.7 Aquaculture

8.8 Biofuels and Biobased Products

8.12 Small and Mid-size Farms

8.13 Plant Production and Protection (Engineering)

1. Forests and Related Resources – Topic Area 8.1

Contact Dr. Diomides Zamora, NPL for SBIR/STTR Forests and Related Resources, at Diomides.Zamora@usda.gov or 202-590-6049.

The Forests and Related Resources topic area aims to address the health, diversity, and productivity of the Nation’s forests to meet the needs of present and future generations through the development of environmentally sound approaches to increase productivity of forest lands, improve sustainability and develop value-added materials derived from forest resources.

https://nifa.usda.gov/calendar mailto:Diomides.Zamora@usda.gov

2. Plant Production and Protection – Biology – Topic Area 8.2 Contact Dr. Christopher Philips, NPL for SBIR/STTR Plant Production and Protection (Biology), at Christopher.Philips@usda.gov or 216-390-4211.

The objective of this topic area is to develop novel ways of enhancing crop production and protection against abiotic and/or biotic stresses through the use of novel diagnostic technologies, plant improvement approaches, and tools or management practices that ensure healthy pollinators.

3. Animal Production and Protection– Topic Area 8.3

Contact Dr. Robert M. Smith, NPL for SBIR/STTR Animal Production and Protection, at Robert.M.Smith@usda.gov or 202-445-3468 or Dr. Kathe Bjork, NPL for SBIR/STTR Animal Production and Protection, at Kathe.E.Bjork@usda.gov or 816-591-7415.

The Animal Production and Protection topic area aims to develop innovative, marketable technologies that will provide significant benefit to the production and protection of agricultural animals.

4. Conservation of Natural Resources– Topic Area 8.4

Contact Dr. Sandeep Kumar, NPL for SBIR/STTR Conservation of Natural Resources, at Sandeep.Kumar@usda.gov or 816-832-7235.

The Conservation of Natural Resources topic area aims to develop innovative technologies that are developed with the purpose to conserve, monitor, improve and/or protect the quality and/or quantity of natural resources while sustaining optimal farm and forest productivity and profitability. We encourage new technologies and innovations that will help improve soil health, reduce soil erosion, improve water and air quality, improve nutrient management and conserve and use water more effectively.

5. Food Science and Nutrition – Topic Area 8.5

Contact Dr. Jodi Williams, NPL for SBIR/STTR Food Science and Nutrition, at Jodi.Williams@usda.gov or 202-424-9722.

The Food Science and Nutrition topic area aims to fund projects that support research focusing on developing new and improved processes, technologies, or services that address emerging food safety, food processing, and nutrition issues.

6. Rural and Community Development – Topic Area 8.6

Contact Dr. Keith Harris, NPL for SBIR/STTR Rural and Community Development, at Keith.Harris@usda.gov or 816-589-6631.

The Rural and Community Development topic area aims to fund the development of new technologies, or for the utilization of existing technologies, that address important economic and social development issues or challenges in rural America. The applications need not be centered on agriculture but may be focused on any area that has the potential to provide significant benefit to rural Americans.

mailto:Christopher.Philips@usda.gov mailto:Robert.M.Smith@usda.gov mailto:Kathe.E.Bjork@usda.gov mailto:Sandeep.Kumar@usda.gov mailto:Jodi.Williams@usda.gov mailto:Keith.Harris@usda.gov

7. Aquaculture – Topic Area 8.7 Contact Dr. Timothy Sullivan, NPL for SBIR/STTR Aquaculture, at Timothy.Sullivan@usda.gov or 816-527-5434.

The Aquaculture topic area aims to develop new technologies that will enhance the knowledge and technology base necessary for the expansion of the domestic aquaculture industry as a form of production agriculture.

8. Biofuels and Biobased Products – Topic Area 8.8

Contact Dr. David Songstad, NPL for SBIR/STTR Biofuels and Biobased Products, at David.Songstad@usda.gov or 816-401-8904.

The objective of this topic area is to promote the use of biofuels and non-food biobased products by developing new or improved technologies that will lead to increased production of biofuels, industrial chemicals, and other value-added products from agricultural materials.

9. Small and Mid-Size Farms – Topic Area 8.12

Contact Dr. Denis Ebodaghe, NPL for SBIR/STTR Small and Mid-Size Farms, at Denis.Ebodaghe@usda.gov or 202-445-5460.

The Small and Mid-Size Farms topic area aims to promote and improve the sustainability and profitability of small and mid-size farms and ranches (where annual sales of agricultural products are less than $350,000 for small farms and between $350,000 and $999,999 for mid-size farms – hereafter referred to as small farms).

10. Plant Production and Protection – Engineering – Topic Area 8.13

Contact Dr. Victoria Finkenstadt, NPL for SBIR/STTR Plant Production and Protection (Engineering), at Victoria.Finkenstadt@usda.gov or 816-520-8456 or Dr. Steven Thomson, NPL for SBIR/STTR Plant Production and Protection (Engineering), at Steven.J.Thomson@usda.gov or 202-603-1053.

The objective of this topic area is to enhance crop production by creating and commercializing engineering technologies that enhance system efficiency and profitability and protect crops from pests and pathogens in economically and environmentally sound ways.

In addition to the areas listed above, USDA NIFA recognizes Agricultural-related manufacturing technology and energy efficiency and alternative and renewable energy as two crosscutting priorities with relevance to all areas listed in this program solicitation. USDA NIFA encourages applicants to address these priorities, as appropriate, within their applications. However, these are not meant to be standalone topic areas.

Agricultural-related Manufacturing Technology. On February 26, 2004, the President issued Executive Order 13329 (69 FR 9181) entitled “Encouraging Innovation in Manufacturing.” In response to this Executive Order, USDA NIFA encourages the submission of applications that mailto:Timothy.Sullivan@usda.gov mailto:David.Songstad@usda.gov mailto:Denis.Ebodaghe@usda.gov mailto:Victoria.Finkenstadt@usda.gov mailto:Steven.J.Thomson@usda.gov https://www.govinfo.gov/content/pkg/FR-2004-02-26/pdf/04-4436.pdf deal with some aspect of agricultural-related manufacturing technology. Since manufacturing affects all aspects of agriculture and rural development, applications dealing with manufacturing could be submitted to any of the topic areas.

Energy Efficiency and Alternative and Renewable Energy. In an effort to find alternatives to fossil fuels and to reduce overall energy usage, USDA established research on energy efficiency and alternative and renewable energy as a high priority. Such research includes development of new energy crops, improved methods for producing biofuels, such as ethanol, butanol, and biodiesel, producing hydrogen and other fuel gases from agricultural waste, and more efficient use of energy in agricultural production and in rural communities. Energy issues affect all aspects of agriculture and rural development and thus applications dealing with energy efficiency and alternative and renewable energy could be submitted to any of the topic areas.

D. Potential Commercial Outcome In addition to supporting scientific R&D, another program goal is to provide incentives and opportunities for small business firms to convert USDA-NIFA sponsored research into technological innovations in the private sector.

Where Phase II applications are evaluated as having approximately equal technical merit, NIFA will consider optional letters of support or contingent commitment letters. In such instances, Phase II applicants with strong letters of support or contingent commitment letters for non- SBIR/STTR follow-on funding to pursue further development of the commercial potential during Phase III may receive special consideration as a point of merit in the review and evaluation process.

To receive the consideration described above, applicants must submit letters of support or contingent commitment letters between the small business firm and the entity as part of their Phase II application. The letters must be signed by both parties, set forth the specific amount of Phase III funds, and indicate the dates that such funds will be made available to the SBC. The terms cannot be contingent upon obtaining a patent due to the length of time this process requires. The greater value (in Phase II evaluation) will be given for a signed formal agreement with reasonable terms and funding equal to or in excess of the Federal investment requested in the Phase II application.

The commitment may be in the form of venture capital, a package including venture capital, contract research and development; a joint venture, a research and development limited partnership; or other agreement with a non-SBIR/STTR source of funding. No amortization, repayment, or repurchase of commitment funds may be included during the Phase II period of performance.

USDA understands that any such commitment will likely be contingent upon the Phase II awardee attaining technical objectives that are mutually agreed upon between the small business firm and the provider of the follow-on funding. These objectives should be closely related to those delineated in the Phase II research application. The technical objectives should be clearly defined and measurable and should be specified in the commitment agreement at the threshold level that would justify such an investment. The objectives do not have to be identical to those stated in the Phase II application, but they must be able to be accomplished within the scope of the proposed SBIR/STTR-funded research. Any letters or other forms of tentative commitment for follow-on Phase III funding from sources other than Federal SBIR/STTR programs will be considered.

E. Technical and Business Assistance The John S. McCain National Defense Authorization Act for Fiscal Year 2019 permits SBIR/STTR Phase II awardees to enter into agreements with one or more vendors to provide Technical and Business Assistance (TABA). TABA allows an additional $50,000 supplement to the award and is aimed at improving the commercialization success of SBIR/STTR awardees.

USDA SBIR/STTR does NOT have a designated Phase II TABA Vendor. Awardees may obtain TABA from entities such as public or private organizations; including from an agency of or other entity established or funded by a State that facilitates or accelerates the commercialization of technologies or assists in the creation and growth of private enterprises that are commercializing technology. TABA may include access to a network of scientists and engineers engaged in a wide range of technologies or access to technical and business literature available through on-line databases. This also includes product sales, IP protections, market research, market validation, development of regulatory plans and manufacturing plans.

The goal of TABA is to assist SBIR/STTR awardees in:

1. Making better technical decisions on SBIR/STTR projects;

2. Solving technical problems that arise during SBIR/STTR projects;

3. Minimizing technical risks associated with SBIR/STTR projects; and

4. Commercializing the SBIR/STTR product or process.

An SBIR/STTR firm acquires TABA services described above on its own. Firms must request this authority from USDA and demonstrate in its SBIR/STTR Phase II proposal that the vendor(s) or entity(ies) selected can provide the specific TABA services needed. In addition, costs must be included in the application. The TABA vendors/provider(s) may not be the requesting firm, an affiliate of the requesting firm, an investor of the requesting firm, or a subcontractor or consultant of the requesting firm otherwise required as part of the paid portion of the research effort (e.g., research partner or research institution). The applicant may use TABA funds for commercialization efforts that would require certification or registration of the innovation if the certification or registration process requires a research or analytical effort that is outside the scope of the SBIR/STTR project. However, the costs for certification and registrations that require research and analytical efforts may be counted towards the SBIR/STTR one-half (1/2) cap for subcontracts.

To request TABA services please see Part IV, B R&R Budget for further details and instructions to complete a TABA Plan.

https://www.congress.gov/bill/115th-congress/house-bill/5515/text

PART II. AWARD INFORMATION

A. Available Funding This RFA is being released prior to the passage of an appropriations act for FY 2024 and FY 2025. Enactment of a continuing resolution, appropriations act, or other authorizing legislation may affect the availability or level of funding for these programs. USDA NIFA plans to fund approximately forty-five (45) percent of the Phase II applications within each of the ten (10) topic areas identified in this RFA. The anticipated amount available for SBIR in FY 2024 is approximately $19,500,000 and approximately $19,500,000 for FY 2025. The anticipated amount available for the STTR Program Phase II is approximately and $2,600,000 for FY 2024 and approximately $3,250,000 for FY 2025. USDA is not committed to fund any particular application or to make a specific number of awards.

The Automated Standard Application for Payments, operated by the Department of Treasury, Bureau of Fiscal Service, is the designated payment system for awards resulting from this RFA.

B. Application Restrictions NIFA will evaluate applications using the criteria described in Part V of this RFA. Applications for FY 2024 and FY 2025 are limited to the following application types:

1. New application. This is a project application that has not been previously submitted to the SBIR/STTR Phase II Programs. We will review all new applications competitively using the screening for administrative requirements, review panel evaluation of applications using evaluation criteria and selection process described in Part V- Application Review Requirements.

C. Project and Grant Types

The following describes the types of projects or grants that are eligible for funding:

1. Project Types. Applicants must propose a Research project as described in Program Area

Descriptions in Part I, C of this RFA. Only Research projects described in Part I, C of this RFA will be considered for review.

2. Grant Types. Applicants must select the Standard grant described in Program Area Descriptions in Part I, C of this RFA. Only Standard grants described in Part I, C of this RFA will be considered for review.

Phase II applications may not request more than $600,000 (not including TABA), with the maximum award available $650,000 (including TABA) for a period normally not to exceed 24 months. In special cases, NIFA can allow a period of performance up to 36 months, but applicants may not request more than $600,000 (not including TABA) or $650,000 (including TABA). The planned period of performance dates are listed below; however, these dates may change due to the enactment of continuing resolutions or an appropriations act.

FY 2024: Phase II: 9/1/2024 through 8/31/2026 FY 2025: Phase II: 9/1/2025 through 8/31/2027 https://www.fiscal.treasury.gov/asap/

D. Ethical Conduct of Funded Projects In accordance with sections 2, 3, and 8 of 2 CFR Part 422, institutions that conduct USDA-funded extramural research must foster an atmosphere conducive to research integrity, bear primary responsibility for prevention and detection of research misconduct, and maintain and effectively communicate and train their staff regarding policies and procedures. In the event an application to NIFA results in an award, the Authorized Representative (AR) assures, through acceptance of the award, that the institution will comply with the above requirements. Award recipients must, upon request, make available to NIFA the policies, procedures, and documentation to support the conduct of the training. See Responsible and Ethical Conduct of Research for further information.

Reporting Waste, Fraud and Abuse - In the event a company or individual suspects any waste, fraud and/or abuse, the company or individual can contact the USDA Office of Inspector General (OIG)'s hotline or at 800-424-9121.

https://www.ecfr.gov/cgi-bin/text-idx?SID=3f96ab05cf1fc2d2713e5e46755e7696&mc=true&node=pt2.1.422&rgn=div5#se2.1.422_12 https://nifa.usda.gov/responsible-and-ethical-conduct-research https://nifa.usda.gov/responsible-and-ethical-conduct-research https://www.usda.gov/oig/hotline.htm https://www.usda.gov/oig/hotline.htm

PART III. ELIGIBILITY INFORMATION

A. Eligibility Requirements SBIR/STTR Phase I awardees who have not previously applied for Phase II support are eligible to apply for Phase II support through the FY 2024 and FY 2025 RFAs. This includes those awardees identified via a “novated” or “successor-in-interest” revised funding agreement. A Phase I project may only apply for a Phase II award once. If a Phase I awardee was unsuccessful in receiving a Phase II award with a previous application, then the awardee is not eligible to resubmit the proposal under this or a future Phase II program solicitation.

Each applicant must qualify as a SBC through registration with the SBA for R/R&D purposes at the time of selection (see Definitions in Appendix III of this RFA). Failure to meet an eligibility criterion by the application deadline may result in the application being excluded from consideration or, even though an application may be reviewed, will preclude NIFA from making an award.

SBIR/STTR program 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.

Type of Firm 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.

1. An SBIR/STTR small business awardee must be a business concern – it must be organized as a for-profit concern and meet all of the other requirements for a “business concern” in 13 CFR § 121.105. Non-profit entities are not eligible (except as the non-profit research institution collaborator under the STTR Program).

2. If an awardee is a joint venture, limited partnership or venture capital, each party to the joint venture must be a concern that satisfies all program eligibility requirements.

Ownership & Control The purpose of the ownership requirement is to limit the program to independent firms controlled by US citizens or permanent resident aliens as a way of maximizing the likelihood that the funding will stimulate innovative activity within the US economy.

A majority (more than 50%) of your firms’ 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 United States,

2. Other for-profit SBC (each of which is directly owned and controlled by individuals who are citizens or permanent resident aliens of the United States).

3. A combination of (1) and (2) above.

4. Multiple venture capital operating companies, hedge funds, private equity firms, or any combination of these, so long as no one such firm owns or controls more than 50% of the equity. This option is allowed only for SBIR/STTR awards from agencies that are using the authority provided in § 5107 of the SBIR/STTR Reauthorization Act (majority‐VC‐ owned authority), 15 U.S.C. § 638(dd)(1).

https://www.ecfr.gov/current/title-13/chapter-I/part-121/subpart-A/subject-group-ECFRd133f03f6d8398b/section-121.105 https://www.ecfr.gov/current/title-13/chapter-I/part-121/subpart-A/subject-group-ECFRd133f03f6d8398b/section-121.105 https://uscode.house.gov/view.xhtml?req=(title:15%20section:638%20edition:prelim)%20OR%20(granuleid:USC-prelim-title15-section638)&f=treesort&edition=prelim&num=0&jumpTo=true

Notes: 1) If an Employee Stock Ownership Plan owns all or part of the SBC, each stock trustee and plan member is considered an owner. If a trust owns all or part of the SBC, each trustee and trust beneficiary is considered an owner.

2) A potential grantee that is a subsidiary must show that the parent company or parent companies are also a small business entity, and the parent company or parent companies must provide documentation supporting their small business status (the documentation should be included in the Research and Related (R&R) Other Project Information form under Other Attachments, as directed by Part IV of this RFA). If the parent company or one of the parent companies is a nonprofit organization, then the subsidiary is not eligible to submit an SBIR/STTR application.

Size The purpose of the size restriction (number of employees of the firm and its affiliates) is to limit program funding to SBC that have a unique capacity for innovation and are more likely to be constrained by lack of access to such funding. An SBIR/STTR awardee, combined with its affiliates, must not have more than 500 employees.

For more information on SBIR/STTR eligibility go to https://www.sbir.gov/sites/default/files/elig_size_compliance_guide.pdf

SBIR/STTR Program Eligibilities Applicants can choose from SBIR only, STTR only, or Both (SBIR/STTR in a single submission). The following SBIR and STTR program eligibility distinctions are summarized in the table below.

To apply for SBIR only, the primary employment of the Project Director/Principal Investigator (PD/PI) must be with the SBC at the time of award and during the conduct of the proposed project. Eligible primary employment means that more than one-half (51%) of the PD’s/PI’s time is spent in the employ of the SBC during the award period of performance. Primary employment with the SBC precludes the applicant as a full-time employee with another organization or academic institution. While the PD/PI must work more than one-half (51%) of his/her time for the SBC during the entire grant period, there is no time requirement for the PD’s/PI’s work on the proposed research. Prior Federal Employees must provide documentation that post termination requirements from Federal Service has been completed at time of submission. For SBIR Phase II, as determined by budget expenditures, a minimum of one-half (50%) of the research or analytical work must be performed by the proposing SBC.

To apply for STTR only, the PD/PI for the proposed project (or, if multiple PD/PIs, at least one PD/PI) must be employed by and perform more than one half (51%) of the PD’s/PI’s time in the employ of either the SBC or the partnering nonprofit Research Institution. For projects with multiple PD/PIs, at least one PD/PI must meet the primary employment requirement. That PD/PI will serve as the contact PD/PI for the Project Team. For STTR Phase II, as determined by budget expenditures, a minimum of 30% and a maximum of 60% of the research or analytical work must be performed by a single nonprofit research institution (e.g., University, Federal Laboratory, etc.), and the SBC must conduct a minimum of 40% of the proposed research or analytical work.

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

To apply to Both (SBIR and STTR), the PD/PI must be employed more than one-half (51%) by the SBC. For Phase II, as determined by budget expenditures, a minimum of 30% and a maximum of 50% of the research and analytical work must be conducted by a single non-profit research institution (e.g., University, Federal Laboratory, etc.).

Key Information 2: Comparison of Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs for Phase II

Elements SBIR STTR Both Applicant Small Business Small Business Small Business Award Size, without TABA $600,000 $600,000 $600,000 Duration 24 months 24 months 24 months % of Agency’s Extramural R&D

Budget 3.20% 0.45% N/A

Formal Cooperative Agreement Required Outlining Intellectual Property Rights

No Yes Yes

Nonprofit Research Institution or Federally Funded Research and Development Center Participation Required

No Yes Yes

% Participation of Nonprofit Research Institution or Federally Funded Research and Development Center

Less than 50% 30 to 60% 30 to 50%

PI/PD Employment Small Business Small Business or Research Institution

Small Business

Work in the United States For Phase II, the R/R&D work must be performed in the United States. On rare and unique circumstances, for example, a supply, material, or project requirement may not be available in the United States, and agencies may allow that particular portion of the R/R&D work to be performed or obtained outside of the United States. Upon award, the Phase II awardee may request an exception as described in the Award Terms and Conditions and submit to USDA- NIFA for approval.

Benchmark 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 amended the application of these benchmarks for more experienced firms. A summary of the benchmarks is located at https://www.sbir.gov/performance-benchmarks.

Phase I to Phase II Transition Rate Benchmark Any SBC that has received at least 20 Phase I awards, regardless of the awarding agency, during the five-year period (Fiscal Year 2018 through 2022) must have received a minimum of five Phase II awards (25% conversion rate), regardless of the awarding agency, over the same five-year period to be eligible to submit a Phase I application. If a company has not received an SBIR/STTR award or has received less than 20 SBIR/STTR awards, this benchmark requirement does not apply.

https://nifa.usda.gov/terms-and-conditions 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 https://www.congress.gov/bill/117th-congress/senate-bill/4900/text https://www.sbir.gov/performance-benchmarks

Any SBC that has received more than 50 Phase I awards during the five-year period (Fiscal Year 2018 through 2022) must average one Phase II for every Phase I award received (50% conversion rate). If a company has received less than 50 SBIR/STTR Phase I awards, this benchmark requirement does not apply.

Commercialization Rate Benchmark Any SBC that has received 16 or more Phase II awards during the consecutive period of 10 fiscal years preceding the more recent two fiscal years (Fiscal Year 2012 through 2021) must 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 during the period. If a company has not received an SBIR/STTR award or has received less than 16 SBIR/STTR awards, this benchmark requirement does not apply.

Any SBC that has received more than 50 Phase II awards during the consecutive period of 10 fiscal years preceding the most recent 2 fiscal years (Fiscal Year 2012 through 2021), must have an average of $250,000 of aggregate sales and investments per Phase II award received during such covered period. Any SBC that has received more than 100 Phase II awards during the consecutive period of 10 fiscal years preceding the most recent 2 fiscal years (Fiscal Year 2012 through 2021) must have an average of $450,000 of aggregate sales and investments per Phase II award received during such covered period.

Each SBC that is subject to an increased performance standard for the Commercialization Rate Benchmark 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 Phase I to Phase II Transition or the Commercialization Benchmarks, including ineligibility to submit a proposal for a Phase I for a period of one year beginning on June 1, and if the increased performance standards for more experienced firms are not met, then companies may not receive more than 20 total Phase I awards from each agency during the 1-year period beginning on June 1.

Duplicate or Multiple Submissions – Duplicate submissions of the same application to more than one topic area are not allowed. Multiple, distinctively different proposals may be submitted in the same grant year. For those new to Federal financial assistance, NIFA’s Grants Overview provides highly recommended information about grants and other resources to help understand the Federal awards process.

B. STTR Partnering Nonprofit Research Institution Eligibility Criteria Must be located in the United States and meet one of three definitions 1) Nonprofit college or university, 2) Domestic nonprofit research organization, or 3) Federally funded R&D center

(FFRDC).

C. Cost Sharing or Matching No Match Required - The SBIR/STTR programs have NO matching requirement. NIFA will not factor matching resources into the review process as an evaluation criterion.

https://uscode.house.gov/view.xhtml?req=(title:15%20section:638%20edition:prelim) https://nifa.usda.gov/resource/grants-overview

PART IV. APPLICATION AND SUBMISSION

A. Method of Application Applicants must apply to this RFA electronically; no other method or response is accepted. The electronic application for this RFA and additional resources are available on Grants.gov and Grants 101. See Steps to Obtain Application Materials below for instructions on how to obtain an electronic application. Part III of the NIFA Grants Application Guide contains detailed information regarding the Grants.gov registration process. The NIFA Grants Application Guide is contained in the specific funding opportunity package or a sample of the guide can be found here. When applying for a NIFA award, it is important to reference the version of the guide that is included in the specific funding opportunity application package. We urge you to submit early to the Grants.gov system.

Key Information 1: Steps to Obtain Application Materials

Step One: Register or renew entity (annually) at SAM.gov to obtain Unique Entity Identifier (UEI), a 12-digit alphanumeric identifier required to conduct business with the Federal government. Registration can take 4-6 weeks to complete.

Step Two: Register: New Users to Grants.gov must register early with Grants.gov prior to submitting an application (Register Here).

Step Three: Download Adobe: Download and Install Adobe Reader (see Adobe Software Compatibility for basic system requirements)

Step Four: Find Request for Application (RFA).