Wednesday, March 31, 2010
SBA Raises SBIR Award Caps
NOTE: STTR was not changed by this move -- only SBIR (for now).
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The SBA announced the intent back in 2008. They sought comments. They sat on it for almost two years and did nothing. Until now.
The SBA decided not to wait for Reauthorization and kicked the cap for Phase I awards up to $150K and Phase IIs up to $1M. It's been published in the Federal Register (http://budurl.com/SBAraisesSBIRcaps) so it's official.
Rick Shindell has some background in the March 30th Issue of his SBIR Insider. Check it out on the SBIR Gateway's Insider page.
This doesn't mean that an agency must raise their award levels, nor does it mean that they can't exceed these caps. The agencies can (and do) do what they please. What changes is the level at which they have to explain themselves.
It remains to be seen which agencies will immediately change their funding policies. Note that the NSF actually made this change (at least for Phase Is) last fall.
Making SBIR awards that exceed the authorized caps means the agency must include a justification in each case in their Annual Report to Congress. Making awards below the caps requires no justification.
Some agencies (notably NIH) frequently make awards in excess of the caps. Now they'll have less work to do writing justifications! That should make our hard working public servants happy!
I expect we'll find out what the agencies will do at the SBIR National in Hartford (April 21-23). It'll be a hot topic of conversation. Another reason for you to join me in attending. Check out the agenda for this important Conference and register HERE.
So what about Reauthorization? Does this affect the likelihood of it getting done by April 30th?
Yes it does, and my feeling is: NO, it won't get done. It actually takes the pressure off Congress to act quickly.
Given this development, I now predict another Continuing Resolution, probably to September 30th. Unless Nydia gets her usual way and makes it shorter. Or just lets it die. After all, remember, she thinks SBIR awardees are just "marginal small businesses" on "corporate welfare", and don't matter much.
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Tuesday, March 23, 2010
ObamaCare "Cures" SBIR Controversy - CAN it be true?
Yes, you're reading that right. The "Patient Protection and Affordable Care Act" aka the Heath Care Reform Bill signed by President Obama today includes a provision that may affect SBIR. Maybe even CURES the controversy surrounding SBIR eligibility!
The provision is called the "Cures Acceleration Network" or CAN. It's Section 10409 of HR.3590. Look it up. (An SBIR awardee who's been one of the program's strongest advocates found this and alerted me to it's existence.)
CAN is an NIH funded initiative to provide a new grant mechanism open to biotechnology and pharmaceutical companies of all size to receive NIH grants of up to $15 million. A pot of $500 million has been allocated for the remainder of FY2010. It will be administered by a CAN Review Board of which at least 4 of the 24 members must be VCs.
If the bill avoids the upcoming procedural minefields and this provision survives, it completely obviates the need to include VC controlled companies in SBIR. For years many of us argued that VC controlled companies should be eligible to receive NIH grants - just not from the 2.8% SBIR/STTR allocation. BIO always replied that companies could never get funding outside of SBIR. The CAN program would completely turn their argument on its ear!
Now that Health Care won't necessarily hog the front-burner we might get some attention to other things -- like SBIR! And, maybe with CAN we have a way to keep SBIR from being hijacked by VCs and Big BIO.
Dare we hope this indeed "CURES" our impasse and allows SBIR to be reauthorized without drastically altering the program? Stay tuned.
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Friday, March 5, 2010
SBIR dodges a bullet -- for now. But they'll reload, so let's get busy!
The House passed the so called Jobs Bill (HR.2847) on Thursday with only minor changes from the Senate version. SBIR Reauthorization does NOT appear to have been one of those changes. We haven't seen the actual wording of this bill yet, however, and we do know how sneaky they can be. But apparently Speaker Pelosi wasn't willing to back the Altmire/Velazquez maneuver to fold the House version of SBIR Reauthorization (HR.2965) into this bill.
The Jobs Bill now goes back to the Senate for approval of those minor changes before getting signed. It's doubtful that the Senate will do anything to delay enactment, so we can breathe a sigh of relief.
But make that a brief breath please. We have only a few weeks to get the attention of our legislators to actually get a compromise together that will include the Senate's bill (S.1233) and improve SBIR, not harm it. And there's much work to do
I spoke to Deb Santy earlier this week. She runs the Connecticut SBIR office as an arm of Connecticut Innovations. Deb's group has stepped up to again host the National SBIR Conference. It will be April 21-23 in Hartford. We figure this will be right around the time that SBIR Reauthorization goes on the front burner on Congress before it's expiry date of April 30th. Here's Deb's message to y'all:
"The SBIR Program is under attack. All of us are trying to figure out how to get our government to properly reauthorize the SBIR program. A demonstration of your commitment and support is to show up -- attend the 2010 SBIR National. If you have won awards over the years and want to continue winning them -- you need to show your support and get your "you know whats" over to the SBIR National in Hartford. Make this the best attended SBIR National ever -- because it really needs to be the best. If you want this program to continue, if you want the billions of grant dollars to continue, you need to come and make headlines. Hey, you might even make some great contacts and help commercialize your technologies -- because there is a great lineup of networking and "Partner for Profit" activities. I'll be there .. and so should you. No excuses. Just Register"
I'll be there too, Deb. We know our collective voices can make a difference. We just showed that to be true.
The SBTC is leading this fight, and Jere Glover will be hosting a special meeting of the SBTC in Hartford. We had 100+ at the last such meeting in Reno. Let's double or even triple that for Hartford. Better schedule a big room, Deb!
Make no mistake about it. Those who would hijack SBIR for their own bigger business Wall Street focused agendas will reload and take aim at Main Street's small business interests. We've raised the awareness of SBIR among our legislators to unprecedented levels, but we have to even do more.
Pay attention to the strategies that will be suggested on www.SBIRreauthorization.com. Pick up your pens (or Blackberries/iPhones/etc.) and keep the information flowing. We may be small business, but we have big voices.
Come to Hartford. We'll get some national attention on our National Conference. Together, we will make a difference.
And, a personal thanks to all of you who wrote me with expressions of support and copies of the letters you wrote to counter the Altmire/Velazquez maneuver. It's exhilarating to know that someone is actually reading what I write! Yee-Haw!
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Tuesday, March 2, 2010
SBIR Reauthorization compromise suggested -- but is it a ploy?
It works! Raising our voices slowed the attempt to smuggle the House version of SBIR Reauthorization into the Jobs Bill.
But they haven't given up. The train's going down a new track. And the new direction is so ironic: compromise with the Senate's version!
Representative Jason Altmire (D-PA) has sent out a new Dear Colleague letter. Here's the new part:
"As Congress crafts legislative packages to stimulate the economy and create jobs, American small businesses should be first and foremost on our minds. SBIR Reauthorizations passed the House and the Senate in 2009, but have yet to be reconciled and signed into law (H.R. 2965 and S.1233.) A compromise of these two bills to reauthorize SBIR would be an ideal job-creating addition to a jobs package."
Compromise? Really? The House has steadfastly refused to even discuss compromise for quite some time. Why should we believe that's what's intended now? All of a sudden. And the term "reconciled" got my attention too. Uh Oh.
Hmmm.... I seem to remember the Senate offered an SBIR reauthorization compromise almost six months ago. No one has seen it, and the House refused to even consider it. Why are they hiding it? Let's see it! It may actually be worth considering.
Compromise means that both sides have to give and get something. What's the House going to give? What's the Senate going to get?
And what's the darn hurry? We have until April 30th to get an SBIR Reauthorization compromise negotiated. WHY STUFF IT INTO THIS HURRY-UP BILL?
Think about it -- even if SBIR is reauthorized via this Jobs Bill will any new SBIR projects be funded (or jobs created) immediately? Of course not! That's not the way SBIR works. And, the new rules wouldn't even apply until FY2011.
Rick Shindell revealed the existence of the new Altmire letter today in his latest SBIR Insider letter. As Rick points out, this "compromise" suggestion is very likely just a ploy to get us to lay down our pens while they do sneak the House version on the Jobs Bill train.
I agree. It's a ploy. We'd be foolish to trust them.
So please keep the pressure on. Send another letter to your Congressman. Thanks to the NSBA there's an easy way to do it:
http://www.capwiz.com/nsbaonline/issues/alert/?alertid=14725141&type=CO
But make some edits in the template:
1. Let's use Altmire's language to our advantage. Insist that the suggested compromise discussion actually be held. There's even an existing Senate compromise that's waiting for examination. Let's do that.
2. Be sure to point out the ridiculous assumption that this initiative would create small business jobs immediately. Yes, it will spur small business job growth -- next year. We've got two months to do SBIR reauthorization right. No need to rush it through this week!
See www.SBIRreauthorization.com for guidance on how to contact your legislators and updates.
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Wednesday, February 24, 2010
The Jobs Bill Train is Leaving the Station -- and SBIR is being smuggled aboard!
Evan Bayh said it true. The process Congress uses is flawed. It's more about partisan deal making than the public interest. Back room deals. Sneaking legislative provisions into sometimes unrelated bills to serve private interests and avoid scrutiny and discussion.
We have new evidence today, as they're at it again. With SBIR the victim! And they do it with smug satisfaction, unabashedly sanctimonious. They talk up the little guy (small business) but serve big money (VC) interests instead.
Basically, the House, via Rep Jason Altmire (D-PA), is attempting to bypass the SBIR reauthorization negotiations with the Senate and force the House version of the bill (S.2965) through the back door. If he succeeds in including it in the Job Stimulus bill, it will be difficult for the Senate to oppose it, especially since the President wants this legislation passed quickly.
The alert was sounded yesterday by both Rick Shindell in his SBIR Insider, and by the Small Business Technology Council (SBTC) in a Special Alert. Follow the links, or just go to www.SBIRreauthorization.com to see them in their entirety, along with an open letter from my good friend Gary Marsden of Trout Green Technologies (a savvy SBIR Awardee), who by asking a simple question at the Navy Opportunity Forum, created a small firestorm.
It's not over until its over (thanks Yogi), but I fear this train is gathering speed. The Engineer (Pelosi) has blinders on, the Conductor (Velazquez) has had her pockets stuffed and refuses to look at (let alone punch) our tickets, and the Fireman (Altmire) is stoking the furnace with false fuel.
Somehow we need to find the right switch, and divert this train to a siding. We need a bunch of Evan Bayhs to stand up and say ENOUGH! Any more of you out there?
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Wednesday, February 10, 2010
DC Snow Job - A metaphor for SBIR reauthorization?
Washington DC is shut down this week, buried in a couple feet of snow! Nothing much happening in Congress this week. That's probably a good thing, over all.
The only thing of interest this week is the SBIR Gateway's Matching Service for the new DOD STTR Solicitation. Read all about it on the Gateway: http://www.zyn.com/sbir/sttr_partnering.htm. This is a very effective way for small businesses and universities to find STTR partners -- always a challenge. Check it out!
Nothing's happened with SBIR reauthorization for months, so I guess we won't notice any difference there. Besides the snow job done by the VC lobby and their BIO compatriots still has the House Small Business Committee immobilized. Guess they gave away all of their shovels to the Stimulus -- remember "shovel ready" -- and just can't dig out of their offices to discuss the still secret Senate's SBIR reauthorization compromise. It does take two to compromise. So far it's just one-sided.
Hmmm... Come to think of it the situation may not be an incongruity. If con is the opposite of pro, Congress must be the the opposite of progress!
And speaking of incongruities, my lovely daughter-in-law, Kelly, gave me the biggest smiles this week with a list of them. Since there's nothing much else to talk about, I thought I'd share:
- Why do drugstores make the sick walk all the way to the back of the store to get their prescriptions while healthy people can buy cigarettes at the front?
- Why do people order double cheeseburgers, large fries, and a Diet Coke?
- Why do banks leave vault doors open and then chain the pens to the counters?
- Why do we leave cars worth thousands of dollars in the driveway and put our useless junk in the garage?
- Why are hot dogs sold in packages of ten and buns in packages of eight?
- Why do they have drive-up ATM machines with Braille lettering?
- Why does the sun lighten our hair, but darken our skin?
- Why can't women put on mascara with their mouth closed?
- Why don't you ever see the headline 'Psychic Wins Lottery'?
- Why 'abbreviated' is such a long word?
- Why is it that doctors and lawyers call what they do 'practice'? (Lawyers I can understand, but doctors???)
- Why is lemon juice made with artificial flavor, and dish washing liquid made with real lemons?
- Why is the man who invests all your money called a broker?
- Why do your feet smell and your nose run?
- Why is the time of day with the slowest traffic called rush hour?
- Why isn't there mouse-flavored cat food?
- Why do they sterilize the needle for lethal injections?
- Why don't sheep shrink when it rains?
- Why are they called apartments when they are all stuck together?
- Why do we park on driveways and drive on parkways?
Thank you, Kelly! We needed the smiles!
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Thursday, January 28, 2010
Congress Extends SBIR Program for 90 Days
Jere Glover, Executive Director of the Small Business Technology Council (SBTC), issued the following announcement this morning:
"The House of Representatives voted on Wednesday to extend the SBIR program for another 90 days. The program had been set to expire on Jan. 31, 2010, but the new continuing resolution now pushes the expiration date back to April 30. The Senate is also expected to pass this legislation in short order.
This is the sixth CR passed since the SBIR program was originally up for expiration in 2008. Although reauthorization bills have been passed in the House and the Senate, the language in the two bills was very different, and the two Chambers have so far been unable to reconcile the differences in the two bills into a single bill that can be sent to the President for his signature.
While we are happy that Congress has not allowed this important program to lapse, it is important that the two sides can reach an agreement this year, before the new Congress starts next year and this process will have to start all over again.
SBTC has endorsed the Senate’s language as an acceptable compromise, and urges the House to do so as well."
Keep tuned to www.SBIRreauthorization.com for updates.
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Wednesday, January 27, 2010
Senator Cardin Introduces Bill to Repeal NIH SBIR Exclusion
It's about time! It's been almost a year since that abomination was perpetrated! As Senator Benjamin Cardin (D-MD) said in a Press Release from the Senate Small Business and Entrepreneurship Committee today:
"It was a severe blow to biotechnology firms across the country when NIH extramural research funding was exempted from their requirement to dedicate funding to SBIR and STTR awards. As a result, small businesses across the country, which the recovery package was intended to benefit, have been denied the opportunity to fairly compete for more than $200 million in grants."
In addition, the bill provides small businesses with tax credits for health insurance and job creation expenses, and opens up new direct loans to small businesses using already allocated TARP funding.
Recognizing the vital role small business has always had in the overall growth of our economy, the bill also encourages elevating the Small Business Administration to Cabinet-level status.
Interesting timing, as the reauthorization of SBIR has still not been accomplished. Where are we on that Senator?
Late word is that the House Small Business Committee has chosen not to respond to the Senate's compromise proposal, and we'll have a sixth Continuing Resolution, this one for 90-days. Oh goodie. Three more months of torture! Don'tcha just love how our Congress works!
We should hear something official by the end of the week. Stay tuned to www.SBIRreauthorization.com for the latest news.
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Friday, January 22, 2010
Senate Calls for FAST SBIR Action
Well, not exactly. But it's a wonderful idea! We've only got a week before SBIR fades away or gets extended -- again.
What the Senate did do this week is call upon the SBA to swiftly implement the allocated funds for the Federal and State Technology (FAST) Partnership that provides funding for SBIR outreach support for the States. Senators Mary Landrieu (D-LA) and Olympia Snowe (R-ME) co-signed a letter from the Senate Small Business and Entrepreneurship Committee to Karen Mills, SBA Administrator, requesting a schedule by February 12th for the implementation of FAST. View the official Press Release about the letter HERE.
Now, why push for FAST implementation when SBIR's Reauthorization hangs undone? Is this a signal that we can expect some action next week before it expires? I think so. I hope so.
There is the argument that the DOD has independently extended SBIR through the end of FY2010 and this FAST allocation is for FY2010 as well. With DOD having half of the SBIR pot, some FAST funding to support it would surely be put to good use. So, it's being pushed by folks behind the scenes. I support the push and the Senate's advice to the SBA.
But I do see this as a bigger signal. We have ten federal agencies whose SBIR programs will fade away on January 31st without some legislative action. Lack of action would represent a congressional and Obama administration failure.
After the Miracle in Massachusetts this week, our shell-shocked congress and the Obama administration needs something positive to accomplish. They don't need another failure.
Why not make SBIR Reauthorization a shining example of bi-partisan accomplishment?
Best of all worlds? The House accepts the Senate's SBIR Reauthorization Bill and passes it. There was talk of this sort of action for the Health Care Bill, but they didn't have the votes. Nydia Velazquez' expected opposition notwithstanding, they just might have the House votes to do this!
But the alleged compromise (whatever it is) would work too. Just PLEASE get something done by next Friday! Another Continuing Resolution would be better than nothing, but EVERYONE is tired of this.
FAST action..... what a wonderful idea! Call/email/fax your Senators and Representatives today. Give them something productive to work on.
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Friday, January 1, 2010
Some SBIR Predictions for 2010
Yogi Berra said it best: "It's tough to make predictions -- especially about the future. The future ain't what it used to be!"
What's going on in Washington sure underscores Yogi's insight. Things, they are a changing. I've been watching the SBIR reauthorization related activity in Congress and at the Agencies with bemused frustration. I've heard every argument and every rationalization of what should be done a countless number of times. I can even argue both sides on some of the issues.
One thing for sure, SBIR will be different. But how? No one knows for sure. Especially not me. But I'm going to apply another of Yogi's observations -- "You can observe a lot by just watching." -- and give a shot at some predictions for SBIR in 2010, based solely on what I've observed.
Before I do, let's do a quick check of my 2009 predictions:
1. The SBA won't raise the award caps independent of congressional action. CAME TRUE. They didn't.
2. Grants.gov will make some major changes. CAME TRUE. They introduced an Adobe-based template to replace the despised PureEdge software and improved the input submission capacity and user communications. All that didn't prevent a 3-hour melt-down during the NIH Challenge Grant submission however.
3. The SBIR landscape will become more competitive. CAME TRUE. All agencies reported increases in submissions. The budgets did not increase. So, award rates did decline for many of the Agencies.
4. Reauthorization will be further delayed. CAME TRUE. We're currently in our fifth continuing resolution.
Four for four. Not bad! Now for 2010...
Here are my fourteen predictions for how the Reauthorization will shake out:
- 1. SBIR/STTR will be reauthorized this January.
- 2. Non-individual majority owned companies will get SBIR eligibility -- with some limitations and restrictions.
- 3. The funding caps will be increased, but not by as much as the House wants.
- 4. The funding base will also be increased, very slightly and over time, but not enough to compensate for the increased caps.
- 5. Phase I will still be required, but Fast-Track will be enhanced.
- 6. Proposal evaluation cycles will be shortened.
- 7. Multiple Phase IIs (and follow-ons for further development) will be permitted.
- 8. Support for Phase III (commercialization) will be expanded for all agencies -- and all agencies will place increased emphasis on commercialization potential as a criteria for award.
- 9. Required inclusion of projects for some critical technologies will be specified.
- 10. Special award preference for some non-technology demographic interests (including veterans) will be included.
- 11. The policy and oversight authority will be a Committee co-chaired by the NIST and the White House's OSTP.
- 12. The SBA's Office of Advocacy will continue to be able to comment on SBIR issues.
- 13. Money will be authorized for SBIR administration and award database maintenance.
- 14. Reauthorization will be for between five and eight years.
Why do I think it'll happen in January? Everyone is tired of the continuing resolution game. President Obama has promised that small business issues will be the next top priority once Health Care is a done deal. I believe that will happen as soon as Congress reconvenes.
The OSTP/NIST policy committee likelihood was reinforced recently by a comment by Aneesh Chopra, the first-ever [are you ready for this title?] Chief Technology Officer (CTO) and Director for Technology in the White House Office of Science and Technology in an interview he gave in December: "[Pending] House and the Senate agreement, we think a modernized version of the SBIR program will more tightly integrate the work that’s been done there to meet the operational needs of the agency and could spur economic growth." Sounds to me like he's clued in and ready to effect SBIR "modernization". I don't expect the Senate and House compromise being worked on to go in a different direction. The line will be toed.
On the eligibility issue, the likelihood that the Senate will relax its stance on SBIR eligibility was enhanced by the little talked about recently concluded temporary assignment of my friend Jo Anne Goodnight (the NIH's long-time SBIR guru) to the Senate Small Business and Entrepreneurship Committee for the past six months. She's been an unwavering advocate for allowing VC controlled companies to compete for awards. I expect she persuaded some of her fellow Senate committee staffers to support a more relaxed eligibility position. C'est la vie.
Much of what's being proposed for non-innovation or non-technology related award preferences meets the politically correct litmus test, and that's all it will take to have these provisions included. Pah.
So, we shall see. SBIR will continue. It will change. The future won't be what it used to be. (Thanks Yogi.) And however it shakes out, I'll continue to be the SBIR Coach. Maybe I need to come up with some of my own Yogi-isms.
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