Re-inventing SBIR?

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They've been meeting for almost a year with good intent: make SBIR more "effective and efficient". They're calling it SBIR 2.0 - borrowing on the Web 2.0 lexicon that heralded the shift from passive viewing of web content to active interaction among all elements of the web community (from content creators to content users) in a collaborative fashion.

Don't be fooled. It's not the same thing. Not even close. They're talking the talk. But not walking the walk.

Collaboration? Among newbie Agency SBIR Directors (the content creators) - maybe. Are SBIR funded companies (the content users) involved? Nope. Were past and retired SBIR Program Directors consulted? Nope. Were SBIR's founders consulted? Nope. (I'm certainly not in the loop -- not that I should be, although I do have ideas that could have merit -- so if some of the "Nopes" are erroneous, I apologize. But I bet the Nopes are pretty accurate.)

The SBIR 2.0 effort is being spearheaded by Sean Greene, the SBA's Associate Administrator for Investment and Special Advisor for Innovation. (Don'tcha just love government titles?) He's a good guy, a true friend to SBIR, and, as I said, well intentioned. But the naivete here is disturbing.

Here's a quick outline of what's included in the SBA's SBIR 2.0 initiative:

Simplification and Streamlining
- Shortening the contract/grant initiation period after award
- Building a web portal to search for available open topics
- Clarify and simplify SBIR Data Rights
Shared Best Practices
- Expanding bridge financing programs (between Phases)
- Expanding SBIR to facilitate tech transfer (ala NIST)
- Issuing joint agency solicitations
Better Performance Management
- Implement common performance metrics across agencies
- Share performance data publicly

Ambitious for sure! It would be marvelous to get all of that to work. But, folks, it ain't gonna happen quickly. Some aspects may not happen at all. The challenges are daunting. Some of the issues have been debated for years without consensus!

Every one of the agencies can improve the efficiency of project initiation after award. All it takes is money allocated to pay for administration. They haven't got any for this. Current SBIR law doesn't allow use of SBIR apportioned funds for admin. Unfortunately, last I knew, SBIR reauthorization which may fix that provision, hasn't happened yet.

And, at least for DOD, the SBIR Program Managers have NO CLOUT WHATEVER with component contracting authorities, who completely control the contract initiation process. I've seen contracting delays of as much as two YEARS! And, if they did have some clout, the current Army default of Phase I payments every two or three months (instead of monthly) wouldn't be the practice. Can you spell "cash flow"?

A "one-stop-shop" portal with a topic search feature? Gee, don't we already have one? It's called The SBIR Gateway. Not a penny of government money funds it, by the way. The "official" SBIR website (SBIR.gov) certainly could use some work - and a topic search engine - but why waste taxpayer money re-creating something that already works? Or is it simply a control issue?

Getting agencies to work together for improved SBIR efficiency? Don't make me laugh. The agencies are too different and too bureaucratically rigid to make any "one style fits all" approach work. Just the difference in competition compliance requirements between contracting and granting agencies alone makes the whole effort quite unlikely.

Clarifying SBIR Data Rights? PLEASE DO! But this involves getting lawyers to agree. Good luck with that. Ron Cooper, another good guy from the SBA, is at the point for this. If you have ideas, he'd like to hear them.

They're trying a working-together experiment - a five-agency (NIH, DARPA, DHS, NSF, and USDA) joint solicitation on Robotics. Just announced. Here's the info: http://grants.nih.gov/grants/guide/pa-files/PAR-10-279.html. Warning: Take two aspirin before reading, and call me in the morning. Heaven help us, the NIH SBIR application system will be used to collect all five agencies' Robotics proposals!

The NIH's system? Yikes! Y'all know what I think about it: It Sucks! For those of you who are used to doing DOD SBIR proposals, be prepared for EXTREME frustration! I've even put out an SBIR Coach's Newsletter issue about what to expect.

Regarding expanding bridge and commercialization funding, Kristina Johnson, the person at DOE who got their first of its kind Phase III funding initiatives in place, is apparently and suddenly leaving the agency. And the NIST "SBIR TT" program cited as the example for innovative SBIR tech transfer just lost it's creator, Cara Asmail, who's moved on to another NIST post. We have a leadership gap.

The turnover issue also extends to agency SBIR Program Director/Manager roles, as many newcomers are sitting in those chairs this year. I wonder how many of them have actually read the SBIR Policy Directive? Probably about as many as our legislators who actually read the bills they vote for.

Finally, common performance metrics? Oh, please! The agencies don't currently have ANY meaningful SBIR performance metrics. At the Beyond Phase II Conference last week, we were shown some (I thought suspicious) statistics on alleged SBIR performance, but there's no consensus on what constitutes SBIR success and no data gathering that has integrity or accuracy. I'm sure the SBIR funded companies have quite a different view of "success metrics" than do the agencies. Who provides the data? Who collects it? Who is to analyze it? What's to be done with the results? All still undefined.

I'm not usually pessimistic, but it's hard to have optimism about SBIR 2.0. Just being well intentioned doesn't cut the mustard. Maybe I'm jaded. Maybe I'm tired of being told to "trust" and "have hope" for "change" we can count on.

Change huh? This Administration's idea of "change" makes me shudder. (And make no mistake about it, the SBA is an arm of this Administration.) Will "simplification" mean adoption of the NIH's horribly complex SBIR collection and evaluation system? Will "best practices" for laying SBIR eggs (and making them into omelets) be defined by the eggs rather than the chickens? Will "performance metrics" have anything to do with creating jobs and producing innovative technology by giving small businesses access to Federal R&D opportunities?

Until SBIR is reauthorized, much of this is moot. Any efficiency changes will be limited and intra-agency. And, Lord knows, intra-agency efficiency changes are sorely needed! Effectiveness changes? Who knows what that even means?

I do applaud what Sean Greene and the Agency SBIR Program Directors (with a special nod to Chris Rinaldi at DOD) are trying to do with SBIR 2.0. They're sincere and trying hard to do what's best for SBIR. I just entreat them to do it smart and not ignore the user community and what's been tried in the past. Involve Roland Tibbetts, Ann Eskesen, and Jere Glover in the dialog and listen to what they have to say. Involve small business and their advocacy arm, the SBTC, too. Make SBIR 2.0 truly collaborative.

If you're going to talk the talk, please walk the walk.
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SBIR Reauthorization Redux? No Such Luck.

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Here we are -- just a few days from expiration of the third SBIR Reauthorization Continuing Resolution. Is there any hope for resolution by the end of the month? Nope.

Word from behind the scenes is that discussions are pretty much at a standstill. Staffers on the various Committees are standing firm on their bosses' positions. Provisions to significantly open up eligibility, provide special preferences having nothing to do with technology, eliminate the Phase I vetting process, have multiple Phase II awards possible, and increase funding caps without increasing the funding base just aren't going away. There's as much spirit of compromise here as there is on the health care debate. Nada. Zilch.

The University lobby has been pushing hard for just plain letting the SBIR program expire. They've been consistent over the years on this. They want "their" $2B back! Research is "their" game. Tech Transfer royalties from commercialization of innovations is "their" reward -- never mind that they, for the most part, can't figure out how to do it!

The VC/BIO lobby has been keeping up the drumbeat too. BIO had a press conference yesterday where they expressed how they were "very pleased with the result of the vote on the reauthorization bill in the House." They repeated the "Big Lie" that the bill was "an attempt to overturn "fairly arbitrary" administrative agency decisions that prevented venture capital-funded companies from participating." Arbitrary? Participating? Sheesh! Perception management at its best.

There are actually provisions in the House bill that move SBIR administration out of the SBA and into the Department of Commerce with oversight controlled by the White House Office of Science and Technology Policy. If this happens, SBIR becomes a politicized innovation economy program, with true small businesses frozen out of participation.

Some will argue that this is a good thing; that it will improve the Government's ROI on R&D investment. Perhaps it will. But, the vision of Arthur Obermayer, Roland Tibbetts, the late Ted Kennedy, and many others, for fostering innovation from true entrepreneurs, will be lost. That would be a shame.

The SBA is in trouble folks. SBIR isn't the only SBA administered program that is languishing in Committee and facing expiration. Will they survive as an independent agency? I fear not. SBIR being moved out is, in my opinion, an omen.

My prediction, shared by many in the SBIR Advocacy: we'll get another SBIR Continuing Resolution. How long? I say six months -- taking us to next March.

Some of the Agencies aren't waiting for Congress to act. Some are independently increasing funding caps. DOE and NSF, for example, are now providing $150K for Phase I, and DOE is doing $1M for Phase II. Others, like DOD and NASA, are standing pat. NIH generally ignores caps anyhow. It's really getting confusing -- helps justify the need for a coach! (smile)

So, the SBIR game is still being played, although the rule book is being very liberally interpreted. Check out the Gateway for proposal opportunities, and monitor www.SBIRreauthorization.com for updates on what Congress is (or isn't) doing.

The SBIR Coach will be at the NASVF Conference next week, and at the DOD sponsored Beyond Phase II Conference the week after that. My columns will report on what I learn there. Stay tuned.
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Four Federal Agencies Announce New SBIR Opportunities

Even though we haven't yet seen that Continuing Resolution issued for extending the expiration date of the SBIR Program beyond March 20th, I'm happy to report that the Federal Agencies aren't holding back on issuing their announcements for new SBIR opportunities, and four of them: Transportation, Homeland Security, Environmental Protection and the National Science Foundation have recently published new topics.

Department of Homeland Security (DHS) - due by April 6th

Domestic Nuclear Detection Office (DNDO)
- X-ray Generators to Enhance Material Discrimination for NIT Imaging
- Innovative Training Technology for Preventive RadNuc Detection

Department of Transporation (DOT) - due by April 15th

Federal Highway Administration
- Shockwave Mitigation On Roadway Systems
- Thermographic Device for Nondestructive Evaluation of Bridge Integrity
- Vehicle Detection, Counting and Tracking System
- Pedestrian Detection, Counting and Tracking System
- Self-Sustaining, Intelligent Pavement Systems
Federal Motor Carrier Safety Administration
- Individualized Fatigue Risk Management in Trucking Operations
Pipeline And Hazardous Materials Safety Administration
- Development of in-field pipeline inspection tools
- Hazardous Materials

Environmental Protection Agency (EPA) - due by May 14th

A) Green Building Materials and Systems
B) Innovation in Manufacturing
C) Nanotechnology
D) Greenhouse Gases
E) Drinking Water and Water Monitoring
F) Water Infrastructure
G) Air Pollution
H) Biofuels and Vehicle Emissions Reduction
I) Waste Management
J) Homeland Security

These are anticipated topic areas. Details will be available March 19th.

National Science Foundation (NSF) - due by June 9th

Broad Area Topics are:
- Biotech and Chemical Technologies (BC)
- Education Applications (EA)
- Information and Communication Technologies (IC)
- Nanotechnology, Advanced Materials and Manufacturing (NM)

Note that all of these Agencies do state that awards are subject to "availability of funds", and we all know what that means!

Even the NIH is continuing to announce new opportunities, and they have promised that there will be small business participation in ARRA Stimulus funding, although what form that will take is still not apparent. It's important that small businesses compete for R&D funds on a level playing field, and if it's not via SBIR or STTR it's hard to imagine how that will be managed.

And, DO KEEP THE PRESSURE ON FOR THAT CONTINUING RESOLUTION! The SBIR Coach's website's SBIR Reauthorization section has all the information you'll need (including a recently added Excel file of the key legislators' contact data) and the template letter to send. So, please just do it!
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More SBIR Tidbits: Upcoming Deadlines, Boeing interest, SITIS, and other stuff

Everyone's taking a deep breath after last week's flurry of activity to get the NSF and NIH SBIR proposals submitted on time. I hope that everyone was able to jump through the FastLane and Grants.gov/eRA Commons hoops without hassle, although I've only rarely heard of anyone getting through the NIH submission process without having to do a corrected submission -- it's always something!

The NIH did put on a webinar with representatives from the NIH SBIR Office, Grants.gov, and the eRA Commons on-line to ostensibly allow applicants with questions to get them answered. They did a good job. I listened in and did learn some things. Evidently hundreds of questions were submitted via the on-line mechanism, but unfortunately only a very small number of them were able to be answered in the time allotted. It's clear that the NIH proposal submission system has evolved to be so complex that many find it too formidable to deal with. That's a shame. It shouldn't have to be so tough! Anyhow, the PowerPoint presentations the webinar speakers made are available for download from the NIH SBIR web page. Click HERE for a quick link to them.

Now we're into the post-Thanksgiving pre-Christmas push to get DOD, NIST, NOAA,and DHS SBIR proposals written for submission by mid-January, although my experience in dealing with proposal writers says that most will procrastinate until just before the deadline anyhow....Sigh..... DHS proposals are due Jan 5th, DOD and NOAA on Jan 14th, and NIST on Jan 22nd. NIST and NOAA require paper copies delivered by specific deadlines, while DHS and DOD have proprietary submission portal websites. All four of these agencies issue contracts or purchase orders for the work, not grants, so none of them use Grants.gov (hooray!). You should, however, have a DUNS Number and be registered in the CCR. [Remember, the SBIR Coach provides support for start-to-finish Proposal Preparation Coaching or just for Proposal Draft Reviews. Contact me if you'd like to discuss.]

Boeing has released its interest list for SBIR participation and support for the DOD 2009.1 topics. Write me if you'd like a copy. Kudos to Boeing's Rich Hendel for being the most proactive big-company SBIR supporter in the country! According to the information that Rich presented at the SBIR National Conference last month in Hartford, it's paying dividends for Boeing. Are the rest of you big-dogs paying attention?

The DOD officially opened their SBIR submission website for the 2009.1 round on December 8th, so no more communication with Topic Authors (aka TPOCs) is permitted, other than through SITIS, the official on-line system for asking questions and getting answers on the topics. My December SBIR Coach's Newsletter discusses how to use the SITIS system effectively. Write me for a copy of this one, and subscribe to future issues by clicking the "Join" button in the margin on the left of this Blog post.

Not much is happening on the SBIR re-authorization front. The current economic turmoil has everything else on hold. But, we'll turn on the heat as soon as the new Congress convenes.
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