HR001121S0007.pdf

Broad Agency Announcement (BAA)

Small Business Innovation Research (SBIR) and

Small Business Technology Transfer (STTR)

Small Business Programs Office

HR001121S0007

January 4, 2021

Table of Contents

PART I: OVERVIEW INFORMATION

PART II: FULL TEXT OF ANNOUNCEMENT

1. Funding Opportunity Description

2. Award Information

2.1 General Award Information

2.2 Fundamental Research

2.3 Export Control

2.4 Discretionary Technical and Business Assistance (TABA)

2.5 Transition and Commercialization Support Program (TCSP)

2.6 DARPA Embedded Entrepreneur Initiative (EEI)

3. Eligibility Information

3.1 Eligible Applicants

3.2 Foreign Nationals

3.3 Organizational Conflicts of Interest

4. Application and Submission Information

4.1 Proposal Preparation Instructions

4.2 DP2 Requirements

4.3 Electronic Submission

4.4 Submission Deadlines

4.5 Communication

4.6 Marking Proprietary Proposal Information

4.7 Human Subjects Research/Animal Use

4.8 Research Involving Recombinant DNA Molecules

5. Evaluation of Proposals

5.1 Evaluation Criteria for Award

5.2 Evaluation and Selection Process

5.3 Handling of Source Selection Information

6. Award Administration Information

6.1 System Requirements

6.2 Award Notices

6.3 Controlled Unclassified Information on Non-DoD Information Systems

6.4 Registrations and Certifications

6.5 Reporting – Final Technical Reports (Phase I through Phase III)

6.6 Invention Reporting

6.7 Technical Data Rights

6.8 Electronic Invoicing and Payments

6.9 Disclosure of Information and Compliance with Safeguarding Covered Defense Information Controls ...27

APPENDIX A: PHASE I PROPOSAL INSTRUCTIONS

A.1 Introduction

A.2 Proprietary Information

A.3 Phase I Proposal Instructions

APPENDIX B: DP2 PROPOSAL INSTRUCTIONS

B.1 Introduction

B.2 Proprietary Information

B.3 DP2 Proposal Instructions

APPENDIX C: OT AUTHORITY

ATTACHMENT 1: PHASE I TEMPLATE – VOLUME 2: TECHNICAL VOLUME

ATTACHMENT 2: PHASE I TEMPLATE – VOLUME 3: COST PROPOSAL

SPREADSHEET

ATTACHMENT 3: DIRECT TO PHASE II TEMPLATE – VOLUME 2: FEASIBILITY

DOCUMENTATION AND TECHNICAL PROPOSAL

ATTACHMENT 4: DIRECT TO PHASE II TEMPLATE – VOLUME 3: COST PROPOSAL

SPREADSHEET

ATTACHMENT 5: SAMPLE OTHER TRANSACTION (OT) FOR PROTOTYPE

AGREEMENT

ATTACHMENT 6: EMBEDDED ENTREPRENEUR INITIATIVE MILESTONE

EXAMPLES

ATTACHMENT 7: CONTRACTOR CERT REGARDING PROHIBITED VIDEO

AND TELECOM

ATTACHMENT 8: FOREIGN DISCLOSURE ADDENDUM

ATTACHMENT 9: PHASE II PROPOSAL INSTRUCTIONS (POST PHASE I)

NOTE: All attachments can be found as attachments to this document on beta.sam.gov

PART I: OVERVIEW INFORMATION

Federal Agency Name – Defense Advanced Research Projects Agency (DARPA), Small Business Programs Office (SBPO)

Funding Opportunity Title – Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs

Announcement Type – Initial Announcement

Funding Opportunity Number – HR001121S0007

NAICS Code(s): 541713, 541714, 541715; Small Business Size: 500

Dates (All times listed herein are Eastern Time.)

o Posting Date: January 4, 2021 o Closing Date: December 31, 2021, 11:59 PM

Concise description of the funding opportunity: To provide game-changing capabilities to our warfighters, DARPA must have the tools to operate at the pace of innovation. To capitalize on small business innovation, DARPA advertises SBIR and STTR funding opportunities on a “just-in-time” basis, outside of the three pre-determined announcements issued at the DoD level. SBIR and STTR Opportunities (SBOs) will be announced under this BAA. Only proposals submitted in response to an active corresponding SBO will be evaluated for funding.

Agency contact o Email: HR001121S0007@darpa.mil o Mailing Address:

DARPA/SBPO

ATTN: HR001121S0007

675 North Randolph Street Arlington, VA 22203-2114 mailto:HR001121S0007@darpa.mil

PART II: FULL TEXT OF ANNOUNCEMENT

1. Funding Opportunity Description

The objectives of the DoD SBIR/STTR Program include stimulating technological innovation, strengthening the role of small business in meeting DoD research and development needs, fostering and encouraging participation by minority and disadvantaged persons in technological innovation, and increasing the commercial application of DoD-supported research or research and development results. Technology focus areas include USD(R&E)’s Technology Modernization Priorities (https://www.cto.mil/modernization-priorities) and DoD’s Key Science and Technology Areas.

DoD’s Key Technology Areas

• Air Platforms -- Fixed-Wing Vehicles; Rotary-Wing Vehicles; Integrated High Performance Turbine Engine Technology (IHPTET)/Versatile Affordable Advanced Turbine Engines (VAATE); Aircraft Power; High-Speed Propulsion and Fuels.

• Chemical / Biological Defense -- CB Detection; CB Decontamination; CB Protection; CB Modeling and Simulation; Medical Chemical Defense; Medical Biological Defense.

• Information Systems Technology -- Decision-making; Information Assurance; Seamless Communication; Modeling & Simulation Technology; Computing and Software Technology.

• Ground and Sea Vehicles -- Platform and system technologies that support Ground Vehicles; Surface Ship Combatants; and Submarines.

• Materials / Processes -- Materials and Processes for Survivability, Life Extension, and Affordability; Manufacturing Technology; Civil Engineering; Environmental Quality.

• Biomedical -- Infectious Diseases of Military Importance; Combat Casualty Care; Military Operational Medicine; Medical Radiological Defense; Medical Biological Defense; Medical Chemical Defense.

• Sensors, Electronics and Electronic Warfare -- Radar Sensors; Electro-Optical Sensors;

Acoustic Sensors; Automatic Target Recognition; Integrated Platform Electronics; Radio Frequency Components; Electro-Optical Technology; Microelectronics; Electronic Materials;

Electronics Integration Technology; EW Threat Warning; EW Self-Protection; EW Control.

• Space Platforms -- Space Vehicles; Launch Vehicles; Space Propulsion [Integrated High Payoff Rocket Propulsion Technology (IHPRPT)].

• Human Systems -- System Interfaces and Cognitive Processing; Protection, Sustainment, and Physical Performance; Personnel, Training and Leader Development.

• Weapons -- Two broad categories. 1) Conventional Weapons: Countermine/Mines;

Guidance and Control; Guns; Missiles; Ordnance; Undersea Weapons; and Weapon Lethality/Vulnerability. 2) Directed-Energy Weapons: Lasers; and High-Power Microwave.

https://www.cto.mil/modernization-priorities

• Nuclear Technology -- Warfighter Support; Systems Effects and Survivability; Test and Simulation Technology; Environments and Effects; Threat Reduction.

• Battlespace Environments -- Terrestrial Environments; Ocean Battlespace Environments;

Lower Atmosphere Environments; Space/Upper Atmosphere Environment.

The guidelines presented in this BAA incorporate and make use of the flexibility of the SBA SBIR/STTR Policy Directive to encourage proposals based on scientific and technical approaches most likely to yield results important to the DoD and the private sector. The SBIR/STTR Policy Directive is available at:

https://www.sbir.gov/sites/default/files/SBIR-STTR_Policy_Directive_2019.pdf.

15 U.S.C. §638 (cc), as amended by NDAA FY2012, Sec. 5106, and further amended by NDAA FY2019, Sec. 854, PILOT TO ALLOW PHASE FLEXIBILITY, allows the Department of Defense to make an award to a small business concern under Phase II of the SBIR program with respect to a project, without regard to whether the small business concern was provided an award under Phase I of an SBIR program with respect to such project. DARPA is conducting a "Direct to Phase II" (DP2) implementation of this authority for this announcement, for eligible SBIR opportunities only.

DARPA’s SBIR/STTR Approach

DARPA’s mission is to make strategic, early investments in science and technology that will have long-term positive impact on our national security. As part of this mission, DARPA makes high-risk, high-reward investments in science and technology that have the potential to disrupt current understanding and/or approaches. The pace of discovery in both science and technology is accelerating worldwide, resulting in new fields of study and the identification of scientific areas ripe for small business utilization through the SBIR and STTR programs. Small businesses are critical for developing technology to support national security. SBIR and STTR are the premier set-aside programs for small business participation in Federal research and development funding, yet the requirements for managing these programs have not changed significantly in decades. These outdated requirements are not keeping pace with today’s rapidly changing technologies and commercial markets. To provide game-changing capabilities to our warfighters, DARPA must have the tools to operate at the pace of innovation.

To enable this approach, the Small Business Programs Office (SBPO) will issue SBIR/STTR Opportunities (SBOs). These SBOs will focus on technical domains important to DARPA’s mission pursuing innovative research concepts that fall within one of its technology offices.

More information about DARPA’s technical domains and research topics of interest may be found at: http://www.darpa.mil/about-us/offices.

The SBIR and STTR Programs have three phases. Phase I is to determine, to the extent possible, the scientific, technical, and commercial merit and feasibility of ideas submitted under the programs. Proposals should concentrate on research or research and development (R/R&D) which will significantly contribute to proving the scientific and technical feasibility, and commercialization potential of the proposed effort, the successful completion of which is a prerequisite for further DoD support in Phase II, unless an exception is authorized under the Direct to Phase II Program. Proposers are encouraged to consider whether the R/R&D being https://www.sbir.gov/sites/default/files/SBIR-STTR_Policy_Directive_2019.pdf http://www.darpa.mil/about-us/offices proposed to DoD Components also has private sector potential, either for the proposed application or as a base for other applications.

Phase II/DP2 awards will be made to firms on the basis of results of their Phase I effort or comparable feasibility documentation, and the scientific merit, technical merit, and commercialization potential of the Phase II proposal. Phase II is the principal R/R&D effort and is expected to produce a well-defined deliverable prototype. A prototype is defined as a model of something to be further developed, which includes designs, protocols, questionnaires, software, and devices. A Phase II contractor may receive up to one additional, sequential Phase II award for continued work on the project.

Phase III refers to work that derives from, extends, or completes an effort made under prior SBIR/STTR funding agreements, but is funded by sources other than the SBIR/STTR Programs. Under Phase III, the Proposer is required to obtain funding from either the private sector, a non- SBIR/STTR Government source, or both, to develop the prototype into a viable product or non-R&D service for sale in military or private sector markets. Phase III work is typically oriented towards commercialization of SBIR/STTR funded research or technology.

SBIR and STTR Opportunities (SBOs)

SBIR and STTR Opportunities (SBOs) will be announced under this BAA, HR001121S0007.

These SBOs will solicit proposals and will be open for at least 45 days from publication at https://beta.sam.gov. SBOs will describe projects addressing one or two phases as described below. During these periods of performance, very high-risk, high-reward topics will be investigated with the goal of determining feasibility and clarifying whether the area is ready for increased investment. The ultimate goal of each SBO is to invest in research that leads to prototype development that may result in new game-changing technologies for U.S. national security. Proposals submitted in response to SBOs will be evaluated and selected in accordance with Section 6 of this announcement.

Each SBO will (1) identify specific details regarding the research topic of interest, and (2) provide proposal content and submission instructions in addition to those outlined in this BAA, including the due date for proposal submissions. Proposals must be submitted in response to an SBO. Only proposals submitted in response to an active corresponding SBO will be evaluated.

Each SBO will identify the project phases (Phase I Feasibility Study/Phase II Proof of Concept/Direct to Phase II), periods of performance, specific technical objectives to be achieved, task descriptions, milestone payment schedule, and deliverables. Generally, the period of performance for the Phase I effort will not exceed 12 months, and the period of performance for the Phase II or DP2 effort will not exceed 36 months. Combined Phase I base and Phase II option efforts for any SBO are not anticipated to exceed 48 months.

For any proposal selected for award, the Government reserves the right to award a separate Phase I, a separate Phase II, DP2, or a combined Phase I and II effort. In cases in which combined Phase I and II is awarded, the Government may award Phase II as an option, depending on the outcome of the Phase I effort and funding availability. Due to the potential for awarding follow-on Phase II efforts, DARPA is requesting a proposal validity period of 365 days.

Note: Not all SBOs are eligible for a DP2 award. Proposers should read the SBO requirements carefully, as each opportunity may accept Phase I proposals only, both Phase I and DP2 proposals, or DP2 proposals only.

All firms that are awarded Phase I awards originating from this BAA will be eligible to participate in Phase II competitions and potential Phase III (non-SBIR/STTR funded) awards.

Proposers that are invited to participate in Phase II competitions may be required to submit Phase II proposals which will be evaluated under the evaluation criteria published in this BAA as amended. Phase I evaluation results will not be used in Phase II.

Currently there are no follow-on acquisitions planned once a performer has completed Phase I and Phase II or the DP2 effort. However, the goal of the SBIR and STTR programs is to fund research that leads to prototype development. If after Phase II/DP2, a performer has successfully accomplished a proof of concept, and a deliverable prototype is within reach or a promising initial prototype has been developed, the Government may elect to modify the award to fund additional tasks to pursue further prototype development, fabrication and delivery.

Technology and Program Protection to Maintain Technological Advantage

In accordance with DoD Instruction 5000.83, Technology and Program Protection to Maintain Technological Advantage, dated July 20, 2020, and as a means to counter the threat from strategic competitor nations, the DoD will employ risk-based measures to protect systems and technologies from adversarial exploitation and compromise of U.S. military vulnerabilities and weaknesses in: (1) systems, (2) components, (3) software, (4) hardware, and (5) supply chains.

The initial measure being implemented for the SBIR and STTR programs is to require SBIR and STTR prime contract awardees and their subcontractors to self-report and disclose foreign investment in, ownership of, or influence over U.S. entities, including subsidiaries and joint ventures. Reporting and disclosing such information will enable the DoD and DARPA to identify national security risks posed by foreign participation, through investment, ownership, or influence, in the defense industrial base. This information will be used by the DARPA program office to determine risks posed by SBIR and STTR contract awardees and their subcontractors to the DoD and the defense industrial base.

2. Award Information

2.1 General Award Information

Multiple awards are anticipated. DARPA may award FAR-based government contracts (Firm- Fixed Price or Cost-Plus Reimbursement) or Other Transactions for Prototypes agreement (under the authority of 10 U.S.C. § 2371b) subject to approval of the Contracting Officer. The amount of resources made available under each SBO issued under this BAA will depend on the quality of the proposals received and the availability of funds.

The Government reserves the right to select for negotiation all, some, one, or none of the proposals received in response to this announcement and to make awards with or without communications with proposers. Additionally, the Government reserves the right to award all, some, one, or none of the options on the contract(s)/agreement(s) of the performers based on available funding and technical performance. If warranted, portions of resulting awards may be segregated into pre-priced options. Additionally, DARPA reserves the right to accept proposals in their entirety or to select only portions of proposals for award. In the event that DARPA desires to award only portions of a proposal, negotiations may be opened with that proposer. The Government reserves the right to fund proposals in phases with options for continued work, as applicable.

The Government reserves the right to request any additional, necessary documentation once it makes the award instrument determination. The Government reserves the right to remove a proposal from award consideration should the parties fail to reach agreement on award terms, conditions, and price within a reasonable time, and/or the proposer fails to provide requested additional information within three business days.

In all cases, the Government Contracting Officer reserves the right to select award instrument type, regardless of instrument type proposed, and to negotiate all instrument terms and conditions with selectees.1 DARPA will apply publication or other restrictions, as necessary, if it determines that the research resulting from the proposed effort will present a high likelihood of disclosing performance characteristics of military systems or manufacturing technologies that are unique and critical to defense. Any award resulting from such a determination will include a requirement for DARPA permission before publishing any information or results on the program. For more information on publication restrictions, see section 2.2 on Fundamental Research.

Because of the desire to streamline the award negotiation and program execution process, proposals identified for negotiation will result in negotiating a type of instrument for award that is in the best interest of the Government. In the case of an OT for Prototype agreement under DARPA’s authority to award OTs for prototype projects, 10 U.S.C. § 2371b, use of an OT provides significant opportunities for flexible execution to assist in meeting DARPA’s aggressive SBIR/STTR program goals.

All proposers that wish to consider an OT award should carefully read the following:

The flexibility of the OT award instrument is beneficial to the program because the Performer will be able to apply its best practices as required to carry out the research project that may be outside of the Federal Acquisition Regulation (FAR) process-driven requirements. Streamlined practices will be used, such as milestone-driven performance, intended to reduce time and effort on award administration tasks and permit performers to focus on the research effort and rapid prototyping. Because of this ability, OTs provide the Agreements Officer the flexibility to create an award instrument that contains terms and conditions that promote commercial transition, reduce some administratively burdensome acquisition regulations, and meet SBIR/STTR program goals.

Proposers must only propose an OT agreement with fixed payable milestones. Fixed payable milestones are fixed payments based on successful completion of the milestone accomplishments agreed to in the milestone plan. Refer to the sample OT provided as an attachment to this

1 . Proposers that elect an OT as the award instrument are reminded that the Government Accountability Office (GAO) does not normally exercise its protest jurisdiction over OT disputes. Therefore, unless the Government Contracting Officer exercises his or her right to select the award instrument, a Proposer’s election of an OT as the award instrument will be considered binding for purposes of any GAO protest that the Proposer files concerning the award. Proposers are notified that DARPA may request summary dismissal of GAO protests filed by Proposers that elect an OT as the award instrument.

announcement for additional information. Specific milestones will be based upon the research objectives detailed in the SBO.

Please see Appendix C and https://aaf.dau.mil/ot-guide/ for more information on OTs.

2.2 Fundamental Research

It is DoD policy that the publication of products of fundamental research will remain unrestricted to the maximum extent possible. National Security Decision Directive (NSDD) 189 defines fundamental research as follows:

'''Fundamental research' means basic and applied research in science and engineering, the results of which ordinarily are published and shared broadly within the scientific community, as distinguished from proprietary research and from industrial development, design, production, and product utilization, the results of which ordinarily are restricted for proprietary or national security reasons."

As of the date of publication of this BAA, the Government expects that program goals as described herein may be met by proposers intending to perform fundamental research and proposers not intending to perform fundamental research or the proposed research may present a high likelihood of disclosing performance characteristics of military systems or manufacturing technologies that are unique and critical to defense. Based on the nature of the performer and the nature of the work, the Government anticipates that some awards will include restrictions on the resultant research that will require the awardee to seek DARPA permission before publishing any information or results relative to the program.

Proposers should indicate in their proposal whether they believe the scope of the research included in their proposal is fundamental or not. While proposers should clearly explain the intended results of their research, the Government shall have sole discretion to select award instrument type and to negotiate all instrument terms and conditions with selectees. Appropriate clauses will be included in resultant awards for non-fundamental research to prescribe publication requirements and other restrictions, as appropriate. This clause can be found at https://www.darpa.mil/work-with-us/additional-baa.

For certain research projects, it may be possible that although the research being performed by the prime contractor is restricted research, a subcontractor may be conducting contracted fundamental research. In those cases, it is the prime contractor’s responsibility to explain in their proposal why its subcontractor’s effort is contracted fundamental research.

2.3 Export Control

The International Traffic in Arms Regulations (ITAR), 22 CFR Parts 120 through 130, and the Export Administration Regulations (EAR), 15 CFR Parts 730 through 799, will apply to all projects with military or dual-use applications that develop beyond fundamental research, which is basic and applied research ordinarily published and shared broadly within the scientific community. SBOs will identify when ITAR restrictions are applicable. More information is available at https://www.pmddtc.state.gov/ddtc_public?id=ddtc_public_portal_itar_landing.

https://aaf.dau.mil/ot-guide/ https://www.darpa.mil/work-with-us/additional-baa https://www.pmddtc.state.gov/ddtc_public?id=ddtc_public_portal_itar_landing

2.4 Discretionary Technical and Business Assistance (TABA)

DARPA is not offering TABA funding pending further SBA guidance and establishment of a limit on the amount of technical and business assistance services that may be received or purchased by a small business concern that has received multiple Phase II SBIR or STTR awards for a fiscal year.

2.5 Transition and Commercialization Support Program (TCSP)

DARPA will provide services to Phase II or DP2 awardees upon contract execution through the Transition and Commercialization Support Program (TCSP) at no cost to awardees. The TCSP goal is to maximize the potential for SBIR/STTR companies to move their technology beyond Phase II, and into other research and development programs for further maturity, or into solutions or products for DoD acquisition programs, other Federal programs, and/or the commercial market. Please visit http://www.darpa.mil/work-with-us/for-small-businesses/commercialization-continued for more information on DARPA TCSP.

2.6 DARPA Embedded Entrepreneur Initiative (EEI)

Awardees pursuant to this solicitation may be eligible to participate in the DARPA Embedded Entrepreneur Initiative (EEI) during the award’s period of performance. EEI is a limited scope program offered by DARPA, at DARPA’s discretion, to a small subset of awardees. The goal of DARPA’s EEI is to increase the likelihood that DARPA-funded technologies take root in the U.S.

and provide new capabilities for national defense. EEI supports DARPA’s mission “to make pivotal investments in breakthrough technologies and capabilities for national security” by accelerating the transition of innovations out of the lab and into new capabilities for the Department of Defense (DoD). EEI investment supports development of a robust and deliberate Go-to-Market strategy for selling technology to government and commercial markets and positions DARPA awardees to attract U.S. investment. The following is for informational and planning purposes only and does not constitute solicitation of proposals to the EEI.

There are three elements to DARPA’s EEI: (1) A Senior Commercialization Advisor (SCA) from DARPA who works with the Program Manager (PM) to examine the business case for the awardee’s technology and uses commercial methodologies to identify steps toward achieving a successful transition of technology to the government and commercial markets; (2) Connections to potential industry and investor partners via EEI’s Transition Working Groups; and (3) Additional funding for awardees to hire an embedded entrepreneur to achieve specific commercialization milestones and work towards the delivery of a robust transition plan for both defense and commercial markets. This embedded entrepreneur’s qualifications should include business experience within the target industries of interest, experience in commercializing early stage technology, and the ability to communicate and interact with technical and non-technical stakeholders. Funding for EEI is typically no more than $250,000 per awardee over the duration of the award. An awardee may apportion EEI funding to hire more than one embedded entrepreneur, if achieving the milestones requires different expertise that can be obtained without exceeding the awardee’s total EEI funding. The EEI effort is intended to be conducted concurrent with the research program without extending the period of performance.

http://www.darpa.mil/work-with-us/for-small-businesses/commercialization-continued http://www.darpa.mil/work-with-us/for-small-businesses/commercialization-continued

EEI Application Process:

After receiving an award under the solicitation, awardees interested in being considered for EEI should notify their DARPA Program Manager (PM) during the period of performance. Timing of such notification should ideally allow sufficient time for DARPA and the awardee to review the awardee’s initial transition plan, identify commercial milestones to deliver under EEI, modify the award, and conduct the work required to achieve such milestones within the original award period of performance. These steps may take 18-24 months to complete, depending on the technology. If the DARPA PM determines that EEI could be of benefit to transition the technology to product(s) the Government needs, the PM will refer the performer to DARPA’s Commercial Strategy team.

DARPA’s Commercial Strategy team will then contact the performer, assess fitness for EEI, and in consultation with the DARPA technical office, determine whether to invite the performer to participate in the EEI. Factors that are considered in determining fitness for EEI include DoD/Government need for the technology; competitive approaches to enable a similar capability or product; risks and impact of the Government’s being unable to access the technology from a sustainable source; Government and commercial markets for the technology; cost and affordability;

manufacturability and scalability; supply chain requirements and barriers; regulatory requirements and timelines; Intellectual Property and Government Use Rights, and available funding.

Invitation to participate in EEI is at the sole discretion of DARPA and subject to program balance and the availability of funding. EEI participants’ awards may be subsequently modified bilaterally to amend the Statement of Work to add negotiated EEI tasks, provide funding, and specify a milestone schedule which will include measurable steps necessary to build, refine, and execute a Go-to-Market strategy aimed at delivering new capabilities for national defense. Milestone examples are in the attachment to this solicitation.

Awardees under this solicitation are eligible to be considered for participation in EEI, but selection for award under this solicitation does not imply or guarantee participation in EEI. Example milestones are in the attachment to this BAA.

3. Eligibility Information

3.1 Eligible Applicants

a. The eligibility requirements for the SBIR/STTR programs are unique and do not correspond to those of other small business programs. Proposers must qualify as a small business concern (SBC) and meet eligibility requirements for Small Business Ownership and Control at time of award and certify to this on the proposal Cover Sheet (see 13 CFR § 121.702 and as defined below).

An SBC must satisfy the following conditions on the date of award:

i. Is organized for profit, with a place of business located in the United States, which operates primarily within the United States or which makes a significant contribution to the United States economy through payment of taxes or use of American products, materials or labor;

ii. Is in the legal form of an individual proprietorship, partnership, limited liability company, corporation, joint venture, association, trust or cooperative, except that if the concern is a joint venture, each entity to the venture must meet the requirements set forth in paragraph (iii) below;

iii. Is more than 50% directly owned and controlled by one or more individuals (who are citizens or permanent resident aliens of the United States), other small business concerns (each of which is more than 50% directly owned and controlled by individuals who are citizens or permanent resident aliens of the United States), or any combination of these; and

iv. Has, including its affiliates, not more than 500 employees. (For explanation of affiliate, see www.sba.gov/size.)

Small businesses that are owned in majority part by multiple venture capital operating companies (VCOCs), hedge funds, or private equity funds are ineligible to submit applications or receive awards for opportunities under this BAA.

Joint ventures and limited partnerships are permitted, provided that the entity created qualifies as a small business in accordance with the Small Business Act, 13 U.S.C. §

121.701. Proposers must disclose joint ventures with existing (or planned) relationships/partnerships with any foreign entity or any foreign government-controlled companies.

b. For SBIR proposals, a minimum of two-thirds of the research and/or analytical work in Phase I must be carried out by the proposing firm. For Phase II/DP2, a minimum of one-half (50%) of the research and/or analytical work must be performed by the proposing firm. The percentage of work is measured by both direct and indirect costs. The primary employment of the principal investigator (PI) must be with the small business firm at the time of the award and during the conduct of the proposed effort. Primary employment means that more than one-half of the PI's time is spent with the small business. Primary employment with a small business concern precludes full-time employment at another organization.

c. For STTR proposals, a minimum of 40% of the research and/or analytical work in Phase I must be conducted by the small business concern and a minimum of 30% of the effort performed by the single research institution, as defined below. The percentage of work is usually measured by both direct and indirect costs. For both Phase I and II, the PI may be primarily employed with the small business firm OR the research institution. At the time of award of a Phase I or Phase II contract, the small business concern must have at least one employee in a management position whose primary employment is with the small business and who is not also employed by the research institution. Primary employment means that more than one half (50%) of the employee's time is spent with the small business. Primary employment with a small business concern precludes full-time employment at another organization.

i. A research institution is defined as any organization located in the United States that is:

1) A university;

http://www.sba.gov/size.)

2) A nonprofit institution as defined in Section 4(5) of the Stevenson-Wydler Technology Innovation Act of 1980; or

3) A contractor-operated federally funded research and development center, as identified by the National Science Foundation in accordance with the government-wide Federal Acquisition Regulation issued in accordance with Section 35(c)(1) of the Office of Federal Procurement Policy Act. A list of eligible FFRDCs is available at: https://www.nsf.gov/statistics/ffrdclist/. A waiver is no longer required for the use of federal laboratories and FFRDCs; however, proposers must certify their use of such facilities on the Cover Sheet of the proposal.

d. For both SBIR and STTR, Phase I and Phase II/DP2 proposals, all research or research and development work must be performed by the small business concern and its subcontractors in the United States.

e. Proposers with prior SBIR/STTR awards must meet two benchmark requirements for Progress towards Commercialization as determined by the Small Business Administration (SBA) on June 1 each year.

i. For all proposers with greater than 20 Phase I awards over the past five fiscal years excluding the most recent year, the ratio of Phase II/DP2 awards to Phase I awards must be at least 0.25.

ii. For all proposers with greater than 15 Phase II/DP2 awards over the last ten fiscal years excluding the last two years, the proposer must have received, to date, an average of at least $100,000 of sales and/or investments per Phase II/Direct to Phase II award received, or have received a number of patents resulting from the SBIR work equal to or greater than 15% of the number of Phase II/Direct to Phase II awards received during the period.

Consequence of failure to meet the benchmarks:

SBA will identify and notify Agencies on June 1st of each year the list of companies which fail to meet minimum performance requirements. These companies will not be eligible to submit a proposal for a Phase I award for a period of one year from that date.

Because this requirement only affects a company’s eligibility for new Phase I awards, a company that fails to meet minimum performance requirements may continue working on its current ongoing SBIR/STTR awards and may apply for and receive new Phase II and Phase III awards.

To provide companies with advance warning, SBA notifies companies on April 1st if they are failing the benchmarks. If a company believes that the information used was not complete or accurate, it may provide feedback through the SBA Company Registry at www.sbir.gov.

In addition, SBA has posted a Guide to SBIR/STTR Program Eligibility to help small businesses understand program eligibility requirements, determine if they will be eligible at the time of award, and accurately complete necessary certifications.

The benchmark information on the companies will not be available to the public.

https://www.nsf.gov/statistics/ffrdclist/ http://www.sbir.gov/

3.2 Foreign Nationals

Proposers must report any and all individuals expected to be involved on this project that are considered a foreign national as defined below. Proposers may be asked to provide additional information during negotiations in order to verify the foreign citizen’s eligibility to participate in the SBIR/STTR award. The Government may withdraw from negotiations at any time for any reason to include matters of national security (foreign persons, foreign influence or ownership, inability to clear the firm or personnel for security clearances, or other related issues).

Foreign Nationals (also known as Foreign Persons) as defined by 22 CFR 120.16 means any natural person who is not a lawful permanent resident as defined by 8 U.S.C. § 1101(a)(20) or who is not a protected individual as defined by 8 U.S.C. § 1324b(a)(3). It also means any foreign corporation, business association, partnership, trust, society or any other entity or group that is not incorporated or organized to do business in the United States, as well as international organizations, foreign governments and any agency or subdivision of foreign governments (e.g., diplomatic missions).

“Lawfully admitted for permanent residence” means the status of having been lawfully accorded the privilege of residing permanently in the United States as an immigrant in accordance with the immigration laws, such status not having changed.

"Protected individual’’ means an individual who (A) is a citizen or national of the United States, or (B) is an alien who is lawfully admitted for permanent residence, is granted the status of an alien lawfully admitted for temporary residence under 8 U.S.C. § 1160(a) or 8 U.S.C. § 1255a(a)(1), is admitted as a refugee under 8 U.S.C. § 1157, or is granted asylum under Section 8 U.S.C. § 1158; but does not include (i) an alien who fails to apply for naturalization within six months of the date the alien first becomes eligible (by virtue of period of lawful permanent residence) to apply for naturalization or, if later, within six months after November 6, 1986, and

(ii) an alien who has applied on a timely basis, but has not been naturalized as a citizen within 2 years after the date of the application, unless the alien can establish that the alien is actively pursuing naturalization, except that time consumed in the Service's processing the application shall not be counted toward the 2-year period.

Foreign Entity Foreign entity means any branch, partnership, group or sub-group, association, estate, trust, corporation or division of a corporation, non-profit, academic institution, research center, or organization established, directed, or controlled by foreign owners, foreign investors, foreign management, or a foreign government.

Foreign Government Foreign government means any government or governmental body, organization, or instrumentality, including government owned-corporations, other than the United States Government or United States state, territorial, tribal, or jurisdictional governments or governmental bodies. The term includes, but is not limited to, non-United States national and subnational governments, including their respective departments, agencies, and instrumentalities.

3.3 Organizational Conflicts of Interest

FAR 9.5 Requirements In accordance with FAR 9.5, proposers are required to identify and disclose all facts relevant to potential OCIs involving the proposer’s organization and any proposed team member (subawardee, consultant). Under this Section, the proposer is responsible for providing this disclosure with each proposal submitted to the BAA. The disclosure must include the proposer’s, and as applicable, proposed team member’s OCI mitigation plan. The OCI mitigation plan must include a description of the actions the proposer has taken, or intends to take, to prevent the existence of conflicting roles that might bias the proposer’s judgment and to prevent the proposer from having unfair competitive advantage. The OCI mitigation plan will specifically discuss the disclosed OCI in the context of each of the OCI limitations outlined in FAR 9.505-1 through FAR 9.505-4.

Agency Supplemental OCI Policy In addition, DARPA has a supplemental OCI policy that prohibits contractors/performers from concurrently providing Scientific Engineering Technical Assistance (SETA), Advisory and Assistance Services (A&AS) or similar support services and being a technical performer.

Therefore, as part of the FAR 9.5 disclosure requirement above, a proposer must affirm whether the proposer or any proposed team member (subawardee, consultant) is providing SETA, A&AS, or similar support to any DARPA office(s) under: (a) a current award or subaward; or (b) a past award or subaward that ended within one calendar year prior to the proposal’s submission date.

If SETA, A&AS, or similar support is being or was provided to any DARPA office(s), the proposal must include:

The name of the DARPA office receiving the support;

The prime contract number;

Identification of proposed team member (subawardee, consultant) providing the support;

and An OCI mitigation plan in accordance with FAR 9.5.

Government Procedures In accordance with FAR 9.503, 9.504 and 9.506, the Government will evaluate OCI mitigation plans to avoid, neutralize or mitigate potential OCI issues before award and to determine whether it is in the Government’s interest to grant a waiver. The Government will only evaluate OCI mitigation plans for proposals that are determined selectable under the BAA evaluation criteria and funding availability.

The Government may require proposers to provide additional information to assist the Government in evaluating the proposer’s OCI mitigation plan.

If the Government determines that a proposer failed to fully disclose an OCI; or failed to provide the affirmation of DARPA support as described above; or failed to reasonably provide additional information requested by the Government to assist in evaluating the proposer’s OCI mitigation plan, the Government may reject the proposal and withdraw it from consideration for award.

4. Application and Submission Information

4.1 Proposal Preparation Instructions

Each SBO will (1) identify specific details regarding the research topic of interest, and (2) provide proposal content and submission instructions in addition to those outlined in this BAA, including the due date for proposal submissions. Proposals must only be submitted in response to an SBO. Proposals submitted in response to this BAA without an active, corresponding SBO will not be evaluated.

Classified proposals are not accepted under the DoD SBIR/STTR Program. If classified work becomes required during Phase II, the proposing firm must have a facility clearance in order to perform the Phase II work. For more information on facility and personnel clearance procedures and requirements, please visit the Defense Counterintelligence and Security Agency website at: https://www.dcsa.mil/mc/ctp/fc/.

Each SBO will identify the project phases (Phase I Feasibility Study/Phase II Proof of Concept/Direct to Phase II), periods of performance, specific technical objectives to be achieved, task descriptions, milestone payment schedule, and deliverables. Generally, the period of performance for the Phase I base effort will not exceed 12 months, and the period of performance for the Phase II or Direct to Phase II effort will not exceed 36 months. Combined Phase I and Phase II efforts, inclusive of option periods, for any SBO are not anticipated to exceed 48 months.

Each SBO will indicate the type of proposal accepted – Phase I, DP2, or both. For Phase I Proposal Instructions, see Appendix A. For DP2 Proposal Instructions, see Appendix B.

4.2 DP2 Requirements

Proposers interested in submitting a DP2 proposal in response to an eligible SBO must provide documentation to substantiate that the scientific and technical merit and feasibility described in the Phase I section of the topic has been met and describes the potential commercial applications. Documentation should include all relevant information including, but not limited to: technical reports, test data, prototype designs/models, and performance goals/results. Work submitted within the feasibility documentation must have been substantially performed by the proposer and/or the PI.

DARPA will not evaluate the proposer’s related Phase II proposal if it determines that the proposer has failed to demonstrate that technical merit and feasibility has been established or the proposer has failed to demonstrate that work submitted in the feasibility documentation was substantially performed by the proposer and/or the PI.

Feasibility documentation cannot be based upon any prior or ongoing federally funded SBIR or STTR work. Further, DP2 proposals MUST NOT logically extend from any prior or ongoing federally funded SBIR or STTR work.

4.3 Electronic Submission

Proposers are REQUIRED to submit UNCLASSIFIED proposals via the Defense SBIR/STTR https://www.dcsa.mil/mc/ctp/fc/

Innovation Portal (DSIP) at https://dodsbirsttr.mil. Firms submitting through this site for the first time will be asked to register. It is recommended that firms register as soon as possible upon identification of a proposal opportunity to avoid delays in the proposal submission process.

Submission deadlines are strictly enforced. Proposals submitted by any other means will be disregarded.

Technical support for DSIP is available Monday through Friday, 9:00 a.m. – 5:00 p.m. ET.

Requests for technical support must be emailed to DoDSBIRSupport@reisystems.com with a copy to HR001121S0007@darpa.mil.

4.4 Submission Deadlines

Full proposal packages (Proposal Cover Sheet, Technical Volume, Price/Cost Volume inclusive of supporting documentation, Company Commercialization Report, and supporting documentation as required) must be submitted via the Defense SBIR/STTR Innovation Portal (DSIP) per the instructions outlined herein no later than the due date and time listed in the SBO to which the proposal is submitted.

It is the proposing firm’s responsibility to verify that the Technical Volume does not exceed the page limit after upload to DSIP, that all proposal volumes are complete and that the proposal package is certified. The proposer may add/modify proposal volumes or the Proposal Cover Sheet on DSIP until the due date and time listed in the SBO.

Proposals and proposal modifications, unless requested by the Contracts/Agreements Officer, received after the due date set forth in the SBO will be considered late and will not be evaluated.

Proposers are warned that submission deadlines outlined in the SBO to which they are applying will be strictly enforced.

4.5 Communication

DARPA intends to use electronic mail for all correspondence regarding this announcement.

Administrative, proposal preparation, and award questions should be emailed to HR001121S0007@darpa.mil. All questions must be in English and must include the name, email address, and the telephone number of a point of contact.

DARPA will post a consolidated Frequently Asked Questions (FAQ) document. To access the posting go to: http://www.darpa.mil/work-with-us/opportunities. Under the HR001121S0007 summary will be a link to the FAQ. The document will be updated on an ongoing basis until the announcement closing date stated in Part I.

Each SBO will include instructions for submitting questions related to the technical aspect of the research objectives. DARPA will attempt to answer questions in a timely manner; however, questions submitted within 7 days of the proposal due date listed in the SBO may not be answered.

4.6 Marking Proprietary Proposal Information

Proposers that include data in their proposals that they do not want disclosed to the public for https://dodsbirsttr.mil/ mailto:DoDSBIRSupport@reisystems.com%20%20 mailto:HR001121S0007@darpa.mil.

mailto:HR001121S0007@darpa.mil.

http://www.darpa.mil/work-with-us/opportunities any purpose, or used by the Government except for evaluation purposes, shall:

(1) Mark the first page of each Volume of the proposal submission with the following legend:

"This proposal includes data that shall not be disclosed outside the Government and shall not be duplicated, used, or disclosed-in whole or in part-for any purpose other than to evaluate this proposal. If, however, a contract is awarded to this proposer as a result of-or in connection with-the submission of this data, the Government shall have the right to duplicate, use, or disclose the data to the extent provided in the resulting contract. This restriction does not limit the Government's right to use information contained in this data if it is obtained from another source without restriction. The data subject to this restriction are contained in pages [insert numbers or other identification of sheets]"; and

(2) Mark each sheet of data it wishes to restrict with the following legend:

"Use or disclosure of data contained on this page is subject to the restriction on the first page of this volume."

The DoD assumes no liability for disclosure or use of unmarked data and may use or disclose such data for any purpose.

Restrictive notices notwithstanding, proposals and final reports submitted through the DoD Submission website may be handled, for administrative purposes only, by support contractors.

All support contractors are bound by appropriate non-disclosure agreements.

4.7 Human Subjects Research/Animal Use

Proposers that anticipate involving human subjects or animals in the proposed research must comply with the approval procedures detailed at http://www.darpa.mil/work-with-us/humanresearch to include providing the information specified therein as required…