Pilot Program for Direct to Phase II SBIR/STTR Begins

NIH Announces Pilot Program to Allow Direct to Phase II SBIR Grants; Rules Changed to Allow Switching Between SBIR and STTR Phase II’s

Pilot Program to Allow Direct to Phase II SBIR Grants

On February 5, 2014, the NIH announced that they will issue a Phase II award to a small business concern (SBC’s) that did not receive a Phase I award for that research/research & development’ (‘Direct-to-Phase II’ SBIR award).

Under Section 5106 of the Reauthorization Act, small businesses can submit Direct-to-Phase-II SBIR applications, if the small business had performed the Phase I stage-type of research, but through other funding sources.  The legislative rationale for this is to allow a SBC that has already built a technology prototype and tested its feasibility (i.e. completed Phase-I-type R&D) to move directly into a Phase-II-type R&D that tests the functional viability of the prototype, eliminating the need for the SBCs to propose additional small feasibility studies, if the technology is ready for the Phase II stage of development.

The Direct-to-Phase II authority is not available to the STTR program and not available for the CDC, FDA, and ACF SBIR programs. For a complete listing of NIH agencies participating in this pilot program and the rules, please click on https://grants.nih.gov/grants/guide/pa-files/PAR-14-088.html.

NIH SBIR/STTR Applicants May Now ‘Switch’ Programs at Phase II or Phase IIB
Under Section 5104 of the Reauthorization Act, a Federal agency may issue an SBIR Phase II award to an STTR Phase I awardee to further develop the work performed under the STTR Phase I award.  NIH has extended this to include the transition from Phase II to Phase IIB.  Effective 2/1/2014:

• Phase I STTR Awardees may apply for NIH SBIR or STTR Phase II.
• Phase I SBIR Awardees may apply for NIH SBIR or STTR Phase II.
• Phase II STTR Awardees may apply for NIH SBIR or STTR Phase IIB.
• Phase II SBIR Awardees may apply for NIH SBIR or STTR Phase IIB.

Applicants may ‘switch’ programs to any active and open NIH SBIR or STTR solicitation, including the Omnibus and any targeted funding opportunity.

Not all NIH Institutes and Centers accept Phase IIB applications.  For those ICs that included these opportunities in the PHS 2014-2 SBIR/STTR Program Descriptions and Research Topics for NIH, CDC, FDA, and ACF, applications will be accepted through this Parent SBIR FOA. All others must be submitted in response to the specific FOA released by the IC. See the NIH Special Announcements for Small Business Research Opportunities for a list of these unique SBIR funding opportunities.

Applicants must follow the all the rules and policies for the program and solicitation they are applying for.  The employment status of the PI, sub-contracting rules, etc., must be adhered to for the Phase II or IIB application to the opposite program.  Applicants are strongly advised to discuss this option with their program officer well in advance of any due date.

Many entrepreneurs spend so much time on the technical aspects of their proposals, that they give the financial portion of their proposal far less attention.  In some cases this can cost you the proposal and hundreds of thousands of dollars from a potential contract lost.  This is one of many mistakes Government Contractors make.  You can learn about this and many more at our next upcoming webinar.

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