DC Snow Job - A metaphor for SBIR reauthorization?

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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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Congress Extends SBIR Program for 90 Days

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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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Senator Cardin Introduces Bill to Repeal NIH SBIR Exclusion

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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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Senate Calls for FAST SBIR Action

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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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Some SBIR Predictions for 2010

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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.

I made most of these predictions back in October and haven't seen or heard anything to change my mind from what I said then.

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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SBIR still hanging -- Obama promises big small business push in January

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Our Congress, being consumed with forcing through a Health Care bill that most of us don't want, is ignoring most everything else. As predicted, Omnibus Appropriations bills were rushed through this week, but SBIR reauthorization was not included among them. So it'll be January before any more attention is paid to us.

The SBA did get $2 million appropriated for the Federal and State Technology Partnership (FAST) program for State SBIR outreach funding. This hopefully assumes there will be something to reach out for! Unfortunately that money won't go very far. FAST awards have been in the $100K-$150K range. Do the math. But, it's better than nothing I guess -- which is what we had for this the past couple of years.

So, not much to report, and not much to advise y'all to do. We're just hanging. If you get a chance to talk to a legislator (or an aide) during the Christmas recess, do it! They might actually be relieved you're NOT talking about health care.

We do have word from the White House that President Obama will turn his attention to Small Business issues as soon as Health Care is done. We say -- the sooner the better! Perhaps we can get some REAL attention to SBIR and other small business concerns for a change. This lip service we've been getting just isn't cutting it. Frankly, we'll believe it when we see it.

A quick word of memoriam: We were sad to hear of the passing of a real friend to SBIR -- Jim Chern of NASA. He led the NASA Goddard Space Flight Center's SBIR/STTR Program and was a frequent speaker at SBIR Conferences. He passed quietly in his sleep while attending the West Virginia SBIR Conference earlier this month. He will be missed.

Boeing did send out its SBIR interest list for the DOD Solicitation 2010.1. Write me if you'd like a copy. And today (Dec 18th) is the last day to pull down copies of the presentations from the Reno SBIR Conference from their website. If you missed doing it and would like a copy of any of the presentations, I've got them all, so write me for that too.

Unless there's something important to relate, I'll take a hiatus from these columns for a bit, and be back in early January with my Annual Predictions. Merry Christmas, Happy Channukah, etc. etc.
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Tick...Tick...Tick...SBIR hangs in the balance

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Are y'all as disgusted as I am?

Our leaders, elected on a campaign stressing openness, keep making inexplicable one-sided closed-door decisions further widening the partisan political gap.

We seem to be telling our enemies how long to hold on before we'll begin to walk away from the battlefield.

We hold a "Jobs Summit" excluding some of the most important job creation advocates because they disagree with the Administration's health care reform initiatives.

Our "overburdened" legislators take time to hold hearings on the embarrassing "Party-Crasher-Gate" while ignoring the economy-busting impact of "Climate-Gate".

A celebrity's melt-down suddenly becomes the most important news story of the year.

I could go on. But I won't. It's too depressing.

December 18th is only two weeks away. We'll see an Omnibus Appropriations Bill introduced at the last moment just before that date. Betcha there will be no time for debate -- let alone time for actually reading it. If it doesn't pass, the Government shuts down. That won't happen.

SBIR is very likely to be tucked into that pile. Supposedly there's a compromise being worked on. Behind closed doors. Of course. So the clock is ticking. Tick...Tick...Tick.

In the mean time, it's "business as usual" at many of the Federal agencies. That includes gathering SBIR proposals. DOD, NIH, DHS, NIST, NOAA, and even DOEd will be accepting applications this month. NSF and DOE just closed their cycles.

Accepting applications may not mean closing the deal on awards, however. If nothing happens soon, all SBIR but DOD's expires at the end of January. So the Agencies may delay actually committing to disburse funds. Oh goodie. Small businesses sure can afford to wait indefinitely. NOT!

So, yes, I'm disgusted.

I also feel helpless. My Texas Senators and my District's Congressman are all in the party being excluded from the closed-door sessions. They're already sympathetic and supportive of the Senate's version of SBIR Reauthorization. So I "preach to the choir" if I push. Those of you with a different situation -- PLEASE GET BUSY!

The presentations from the National SBIR Conference held in Reno last month have been posted on the Conference's website. Here's the link: (http://www.unr.edu/SBIR-STTR2009/Presentations.html). These will only be available until December 18th, so go look and download anything interesting while you can. Be sure to look at my friend Mark Henry's talk on "Reviewing the Reviewers". You'll find my talk on "Evaluating Readiness for Funding" there too.

The folks at Boeing have released their interest list for the current SBIR topics in the NIST solicitation. Write me if you'd like a copy. I expect to see the Boeing DOD list any day now.

And, finally, please check out the Manhattan Declaration. I've signed it. It feels good to make a stand on principle.
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Is America losing its ability to innovate?

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The headline and subtitle of the Newsweek story got my attention: "The Decline of Western Innovation -- Why America is falling behind and how to fix it."

Innovation. What is that anyhow? Webster says it's "(1) the introduction of something new. (2) a new idea, method, or device."

OK. That's simple enough. SBIR is supposed to provide funding for small businesses to develop new ideas, methods or devices for solving Federal agency defined problems. That's why the "I" is in SBIR, isn't it?

Has SBIR been effective in producing innovation? YES! The evidence is overwhelming.

A 2008 study done by two University of California at Davis professors, Fred Block and Matt Keller, addressed the subject of "Where Do Innovations Come From?"

It's great reading. Figure 6 is the highlight for me (click on it to expand):

R&D Magazine started issuing their "R&D 100" innovation awards in 1963. These awards honor the 100 most technologically significant products introduced into the marketplace over the past year.

SBIR was created in 1982. Figure 6 shows that approximately 25% of the R&D 100 awards now consistently go to SBIR/STTR funded companies. And they do it with a measly 2.8% of the Federal R&D budget to work with! Think about it.

It can't be any clearer: SBIR funds Innovation.

How do we regain the initiative in being the world's innovation leader? Seems simple to me. Expand SBIR. Make it available to more companies, not fewer. Make it a bigger part of the R&D priorities of our agencies. Don't weaken the process by which projects are vetted. Don't degrade the quality of projects by including non-technology criteria for award.

Send every Senator and Congressperson a copy of the Block/Keller article. Encourage them to read it. Yeah, we know that's wishful thinking. Well, maybe they'll at least look at the pictures. Especially Figure 6.

Then stress that the Senate's version of SBIR Reauthorization will encourage innovation. The House's version will inhibit it.

The Message is clear: SUPPORT THE SENATE'S VERSION OF SBIR REAUTHORIZATION.

I had lunch with Matt Keller a few weeks ago. He's at SMU in Dallas now. He says they have a new article in prep. I can't wait to read it.
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A Fork in the Road - Which Path for SBIR?

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Yogi Berra was one of my heroes when I was a kid. He was in his prime as the perennial All-Star Catcher for the New York Yankees and I idolized him. But it wasn't until after he retired as a player and hit the banquet circuit did I really appreciate his genius.

His quotes have become apocryphal for their malapropisms and "huh?" factors. One of my favorites is, "This is like deja vu all over again." But the Yogi-ism that is applicable to the current SBIR reauthorization situation is, "If you come to a fork in the road, take it."

The question is, which path at the fork do we take? Which way to go? Perhaps the path well traveled - follow the crowd. Sometimes it's the path someone pays you to take. Much of the time, it's the path of least resistance.

In my opinion we're at that Fork with SBIR.

The House is leaning toward the path they're being paid (via campaign contributions) to take, refusing to even talk with true small business interests.

The Senate is leaning toward the well traveled path - 27 years of successful SBIR history.

But in the spitit of "compromise" Congress is being pressured to take the path of least resistance.

Will SBIR remain a seed-funding program designed to enable Small Business participation in a fair competition for developing innovative solutions to agency problems, or will it become another program that funnels agency money to companies already funded by special interests that really have nothing to do with enabling small business innovation?

My friend Carl would argue that it's not the Government's job to foster or enable small business innovation, but rather to improve the ROI on use of the Government's taxpayer funded R&D money. I understand and appreciate that argument.

But I contend that without SBIR, we lose the opportunity for the little guy to fairly compete for a tiny slice of the pie. This opportunity makes the American innovation culture unique. I say if we lose it we're in danger of losing our entrepreneurial souls.

We've heard rumors of an impending compromise. The FDANEWS even ran this teaser in their subscription-only Devices and Diagnostics letter last Monday:

House, Senate May Be Close to Compromise on SBIR Act
The months-long wait for small device companies looking for revisions to the Small Business Innovation Research (SBIR) program may be nearing an end as a compromise version could be introduced later this month, a Senate staffer says. “We’re hopeful we will be able to reach compromise before the November recess,” Vicki Ekstrom, spokeswoman for the Senate Committee on Small Business & Entrepreneurship, said...

They wanted ten bucks for the whole article. I sprung for it. Wasted my money. Not much more there -- just a rehash of the issues.

Compromises are a necessity in our multi-opinioned world. The pressure to get SBIR reauthorization done before Congress recesses for the Holidays probably means that the path of least resistance will be the Fork taken. Just get it done and off the table. Political pressures drive the give and take, not logic. That scares me.

With our Congress's current trend to vote on legislation without reading it first, who knows what we'll get? Frankly, only a few of our legislators really understand SBIR. Most have no clue and don't know where this program had been, let alone where it's going. As Yogi once said: "You've got to be very careful if you don't know where you're going, because you might not get there."

What should we do about this? Continue to educate legislators and their staffers on what's important. Encourage them to follow the Senate's lead. Keep the pressure on to NOT fundamentally change the SBIR program. SBIR isn't broke. It's just overdue for some modernization and tuning.

But mostly we just have to wait and see what the compromise includes. Waiting is hard. After five continuing resolutions, this process seems never ending. I'm tired of it.

So, I guess we'll leave this with one last Yogi-ism: "It ain't over 'til it's over."
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Clever Clara Seeks to Close Research Gaps at NIST with SBIR TT

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You've all heard the cliched proclamation: "I'm from the government and I'm here to help you!" Rarely is it actually the truth. I have just encountered one case where, apparently, it is!

Her name is Clara Asmail. She's the SBIR Program Manager at the National Institute for Standards and Technology (NIST). She's charming, engaging, and absolutely brilliant. A multiple degreed physicist with an entrepreneurial bent. She'll talk technical with the best of you, while being a very helpful and competent administrator. A rare combination.

I attended Clara's presentation at the National SBIR Conference this week on what she's been doing to close research gaps that have prevented NIST funded technologies from achieving commercialization. She calls the program, initiated in 2008, SBIR TT (for Tech Transfer). The NIST SBIR website has a FACT SHEET to explain this innovative approach to fostering innovation.

Essentially, if you can show how you'll close the gap in some NIST research, Clara will give you a FREE non-exclusive research license to use the NIST technology in your project. On top of that, she'll fund your project with NIST SBIR money! Just as with any other SBIR project, rights to the results of the project are yours. And you get access to NIST personnel, facilities, and knowledge regarding the invention. What a deal!

Ann Eskesen was at the presentation too, and she called Clara's approach "The cleverest thing she's seen in thirty years!" Quite a statement from the lady who's seen it all, SBIR-wise!

NIST has just opened their FY2010 solicitation. See a quick list of the new NIST Regular (R) and Tech-Transfer (TT) opportunities HERE. Proposals are due by January 22nd.

We've heard rumors that there is some progress being made on SBIR Reauthorization, with the Senate offering a new compromise bill to the House. There's actually some hope that we'll get this resolved by the end of the year. I'm standing by my predictions for how it will all shake out. If you missed my prognostications, see them HERE. When we have details, I'll let you know.

And finally, we're saddened by the deplorable tragedy at our Texas' Fort Hood yesterday. The stress this incident has added to our brave soldiers and their families is immeasurable. Please join me in contributing to a phone-card initiative for helping Fort Hood soldiers communicate with their worried families.

A special website "Operation Call Home" has been established by an Austin radio station to accept donations for phone-cards. Here's the link: http://www.590klbj.com/community/OperationCallHome.aspx. Thanks for your support.
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