FY25-SBIR-STTR-Phase-2-RFA-P.pdf

REQUEST FOR APPLICATIONS

Small Business Innovation Research and Small Business Technology Transfer

Programs Phase II

FUNDING YEAR: Fiscal Year (FY) 2025

APPLICATION DEADLINE: March 18, 2025

ANTICIPATED PROGRAM FUNDING: $19,500,000 for SBIR $3,250,000 for STTR

AVERAGE INDIVIDUAL AWARD

RANGE:

$600,000 - $650,000

FUNDING OPPORTUNITY NUMBER: USDA-NIFA-SBIR-011120

ASSISTANCE LISTING NUMBER: 10.212

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 2025: March 18, 2025, 5:00 P.M. Eastern Time

b) Letter of Intent: Not Required

c) Applicants Comments: Within six months from the issuance of this notice (NIFA disregard 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 diversity, equity, inclusion, and accessibility of 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 development of strong networks and collaborations. NIFA encourages applications that engage diverse communities and have broad impacts through support to small businesses to enhance new opportunities and 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. Please use the following subject line: Response to the SBIR/STTR Phase

II RFA.

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 a full appropriations act for FY 2025.

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

The anticipated amount available for the FY 2025 Phase II Small Business Innovation Research (SBIR) Program is approximately $19,500,000. The anticipated amount available for the FY 2025 Phase II Small Business Technology Transfer (STTR) Program is approximately $3,250,000. USDA is not committed to fund any particular application or to make a specific number of awards.

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 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 partnering research institutions.

Different from most other investors, the USDA SBIR/STTR programs fund early or "seed" stage R&D 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 partnering research institutions (e.g., universities and Federal laboratories) that require a formal cooperative agreement detailing the allocation of intellectual property rights and rights, if any, to carry out follow-on research, development, or commercialization activities for STTR applicants and the primary employment of the project’s project director/principal investigator (PD/PI).

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

This notice identifies the objectives for the SBIR and STTR Phase II projects, deadlines, funding information, eligibility criteria for projects and applicants, application forms and associated instructions, and review requirements.

TABLE OF CONTENTS

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 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

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 SBIR program, the STTR program, and related pilot programs through FY 2025.

The act requires Federal agencies with an SBIR or STTR program to assess 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 requires all SBIR/STTR Phase II applicants to complete additional certifications disclosing ties to foreign countries of concern at the time of 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 (VC) 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 five-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. § 19232). 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.1

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

https://www.congress.gov/117/plaws/publ183/PLAW-117publ183.pdf mailto:sm.ddsbir@usda.gov https://www.congress.gov/117/plaws/publ183/PLAW-117publ183.pdf https://www.commerce.senate.gov/services/files/1201E1CA-73CB-44BB-ADEB-E69634DA9BB9 https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section19232&num=0&edition=prelim 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 SBIR/STTR Extension Act instated increased performance standards for more experienced SBIR/STTR firms regarding the 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 on behalf of USDA. The SBIR/STTR programs are Congressionally mandated and intended to support scientific excellence and technological innovation through 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 partnering 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/subtitle-B/chapter-XXXIV/part-3403

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 research or research and development (R/R&D) developed under Phase I with a goal to bring the innovation to marketplace as the Phase II project completes. Phase II requires 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 R/R&D 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 (see Part I, C).

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

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 Smart Technology when appropriate to enhance projects.

https://www.usda.gov/sites/default/files/documents/usda-fy-2022-2026-strategic-plan.pdf 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 https://www.usda.gov/sites/default/files/documents/usda-fy-2022-2026-strategic-plan.pdf

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 describe 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.

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.

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

3. Animal Production and Protection– Topic Area 8.3 Contact Dr. Kathe Bjork, NPL for SBIR/STTR Animal Production and Protection, at Kathe.E.Bjork@usda.gov or 816-591-7415 or Terry Radke, Program Specialist for SBIR/STTR Animal Production and Protection at Terry.Radke@usda.gov or 816-610- 1901.

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 or Dr. Junia Jean-Gilles Beaubrun, NPL for SBIR/STTR Food Science and Nutrition, at Junia.Jean-GillesBeaubrun@usda.gov or 301-852-1201.

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. Edwin Lewis, NPL for SBIR/STTR Rural and Community Development, at Edwin.Lewis@usda.gov or 817-542-3306.

The Rural and Community Development topic area aims to fund the development of new technologies, or 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.

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 mailto:Kathe.E.Bjork@usda.gov mailto:Terry.Radke@usda.gov mailto:Sandeep.Kumar@usda.gov mailto:Jodi.Williams@usda.gov mailto:Junia.Jean-GillesBeaubrun@usda.gov mailto:Edwin.Lewis@usda.gov mailto:Timothy.Sullivan@usda.gov 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. Rachel Seman Varner, NPL for SBIR/STTR Small and Mid-size Farms, at Rachel.Seman-Varner@usda.gov or 850-868-1184.

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. Ann Stapleton, NPL for SBIR/STTR Plant Production and Protection (Engineering), at Ann.Stapleton@usda.gov or 816-274-1942 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 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 use of non-renewable energy, USDA established R/R&D on energy mailto:David.Songstad@usda.gov mailto:Rachel.Seman-Varner@usda.gov mailto:Ann.Stapleton@usda.gov mailto:Steven.J.Thomson@usda.gov https://www.govinfo.gov/content/pkg/FR-2004-02-26/pdf/04-4436.pdf efficiency and alternative and renewable energy as a high priority. Such R/R&D includes development of new energy feedstocks, improved conversion methods for producing biofuels, such as sustainable aviation fuel and renewable diesel as well as hydrogen and other fuel gases derived 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, 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/R&D, another program goal is to provide incentives and opportunities for SBCs 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 SBC 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 an issued patent because of the time this process requires.

Greater value (in Phase II evaluation) will be given for an executed 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 R&D; a joint venture, an R/R&D 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 SBC 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 https://www.congress.gov/115/statute/STATUTE-132/STATUTE-132-Pg1636.pdf

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 U.S. 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, intellectual property 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.

A Phase II SBIR/STTR-awarded 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.

PART II. AWARD INFORMATION

A. Available Funding This RFA is being released prior to the passage of an appropriations act for 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 the Phase II SBIR Program is approximately $19,500,000 for FY 2025. The anticipated amount available for the Phase II STTR Program is 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 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 (see Appendix III for definition).

2. Resubmitted application: Resubmitted applications must include the response to the previous review panel summary and are subject to the same criteria and due dates herein.

Resubmitted applicants must enter the NIFA-assigned proposal number of the previously submitted application in the Federal Field (Field 4) on the application form (see Appendix III for definition).

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.

https://www.fiscal.treasury.gov/asap/

FY 2025: Phase II: 9/1/2025 through 8/31/2027

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.

Please review the training for Waste, Fraud, and Abuse can be found here:

https://legacy.www.sbir.gov/tutorials/fraud-waste-abuse/tutorial-1. 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 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://legacy.www.sbir.gov/tutorials/fraud-waste-abuse/tutorial-1 https://usdaoig.oversight.gov/resources/hotline-information

PART III. ELIGIBILITY INFORMATION

A. Eligibility Requirements SBIR/STTR Phase I awardees are eligible to apply for Phase II support through this FY 2025 RFA. This includes those awardees identified via a “novated” or “successor-in-interest” revised funding agreement.

Each applicant must qualify as an 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. 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.

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 partnering research institution collaborator under the STTR Program).

2. If an awardee is a joint venture, limited partnership or venture capital partner, each party to the joint venture must be a concern that satisfies all program eligibility requirements regarding type, size, ownership and control.

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).

a. This includes single venture capital operating companies (VCOC), hedge funds, or private equity firms that are SBCs that are more than 50% directly owned and controlled by individuals who are U.S. citizens or permanent resident aliens of the United States.

b. This also includes applicants more than 50% directly owned and controlled by Alaska Native Corporations, Native Hawaiian Organizations, or Indian tribes or https://nifa.usda.gov/resource/grants-overview 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 by a wholly owned subsidiary of an Alaska Native Corporation, Native Hawaiian Organization, or Indian tribe.

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

4. For SBIR only, multiple venture capital operating companies (VCOCs), 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 awards from agencies that are using the authority provided in § 5107 of the SBIR/STTR Reauthorization Act of 2022 (majority‐VC‐ owned authority), 15 U.S.C. § 638(dd)(1). USDA has not elected to make a portion of its SBIR awards to SBCs that are majority-owned by multiple VCOCs, hedge funds or private equity firms under 15 U.S.C. § 638(dd)(1).

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. 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 SBCs 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, see the Guide to SBIR/STTR Program Eligibility.

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 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 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.

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 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 https://www.sbir.gov/sites/default/files/2022-06/elig_size_compliance_guide.pdf https://www.sbir.gov/sites/default/files/2022-06/elig_size_compliance_guide.pdf

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 of the PD’s/PI’s time in the employ of either the SBC or the partnering 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 partnering research institution (e.g., University, Federal Laboratory, etc.), and the SBC must conduct a minimum of 40% of the proposed research or analytical work.

To apply to Both (SBIR and STTR), the PD/PI must be employed more than one-half 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 partnering 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

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

No Yes Yes

% Participation of Partnering 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 (e.g., a supply, material, or project requirement may not be available in the United States) 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, https://nifa.usda.gov/terms-and-conditions https://www.federalregister.gov/d/2013-12312 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 more than 20 Phase I awards during the past five fiscal years, excluding the most recently completed fiscal year, must average one Phase II for every four Phase I awards received (25% conversion rate), regardless of the awarding agency, to be eligible to submit a Phase I application. If a company has not received an SBIR/STTR award or has received 20 or fewer SBIR/STTR awards, this benchmark requirement does not apply.

Any SBC that has received more than 50 Phase I awards during the past five fiscal years, excluding the most recently completed fiscal year, must average one Phase II for every two Phase I awards received (50% conversion rate). If a company has received 50 or fewer SBIR/STTR Phase I awards, this benchmark requirement does not apply.

Commercialization Rate Benchmark Any SBC that has received more than 15 Phase II awards during the past 10 fiscal years, excluding the two most recently completed fiscal years, must average at least $100,000 of sales and/or investments per Phase II award received during the covered period; or have been issued a number of patents equal to or greater than 15% of the number of Phase II awards during the covered period. If a company has not received an SBIR/STTR award or has received 15 or fewer SBIR/STTR awards, this benchmark requirement does not apply.

Any SBC that has received more than 50 Phase II awards during the past 10 fiscal years, excluding the two most recently completed fiscal years, must have an average of $250,000 of aggregate sales and investments per Phase II award received during the covered period. Any SBC that has received more than 100 Phase II awards during the past 10 fiscal years, excluding the two most recent fiscal years, must have an average of $450,000 of aggregate sales and investments per Phase II award received during the 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 Federal 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.

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/117/plaws/publ183/PLAW-117publ183.pdf https://www.sbir.gov/performance-benchmarks https://uscode.house.gov/view.xhtml?req=(title:15%20section:638%20edition:prelim)

B. STTR Partnering 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.

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.