United States Office of Exploratory
Environmental Protection Research
Agency Washington, DC 20460
Researcn and Development EPA/600/9-90/008 Feb. 1990
SEPA Small Business
Innovation Research
Program
Do not remove. This document
should be retained in the EPA
Region 5 Library Collection.
SBIR
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U.S. ENVIRONMENTAL PROTECTION AGENCY
': Small Business Innovation Research Program
Overview
? This publication is printed to give all small businesses a broad overview of
4 the Small Business Innovation Research Program operating as a part of the
^ Office of Exploratory Research, Office of Research and Development, U.S
Environmental Protection Agency.
^ i The contents of this publication are not all inclusive. More specific and
iC* detailed information is provided when the Agency releases the yearly program
solicitations for Phases I and II of the program in November and February
respectively. Phase II solicitations are sent only to Phase I awardees.
Information about the SBIR Program can be obtained by contacting the
appropriate person listed below.
SBIR Contacts
Administrative, Technical Inquiries, Program Operational Procedures and
General Information
• Mr. Donald F. Carey
SBIR Program Manager
Office of Exploratory Research (RD-675)
Office of Research and Development
U S. Environmehtal Protection Agency
401 M Street, S W.
Washington, DC 20460
Phone: (202)382-7445
Contractual Inquiries and Solicitations
• Ms Dana G. Lloyd
Contracts Management Division (MD-33)
U S. Environmental Protection Agency
Research Triangle Park, NC 27711
Phone: (919)541-3113
Program Description
The Environmental Protection Agency's (EPA) Office of Research and
Development (ORD) administers the Small Business Innovation Research
(SBIR) Program. The SBIR Program represents a new approach to funding
Federal research and development (R&D). Although government funds are
spent for research on Federal agency R&D needs, the SBIR Program also
provides incentives for the conversion of this research into potential
commercial applications and technological innovations. At no additional cost
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to the government, SBIR increases the return on investment from Federal
R&D.
The Small Business Development Act of 1982 (P.L. 97-219) requires the
EPA and certain other Federal agencies with extramural budgets for research
in excess of $100 million per year to establish SBIR Programs. Funding for
the program is derived from a fixed percentage (1.25%) of the extramural EPA
R&D budget. The purpose of the legislation is to:
• Stimulate technological innovation.
• Use small businesses to meet Federal Research and Development needs.
• Increase private sector commercialization of innovations derived from
Federal research and development.
• Foster and encourage participation by minority and disadvantaged
persons in technological innovation.
Under the SBIR Act, Federal agencies solicit proposals on R&D research
from science and technology-based firms.
Conducted in eleven Federal R&D agencies, SBIR is one of the most
competitive R&D programs in government. About one proposal out of ten
received is funded in Phase I. Generally about half of these receive support in
Phase II. For example, In 1989, the seventh year of the program, EPA
received 300 Phase I proposals which resulted in 27 awards, and 12 Phase II
projects were funded from 24 of the 1988 Phase I awardees.
In Phase I of this three-phase program, the EPA makes awards of up to
$50,000 for six months of investigative research to determine whether the
research idea, often on high-risk advanced concepts, is technically feasible,
whether the firm can do high quality research, and whether sufficient progress
has been made to justify a larger Phase II effort. The Phase I report also
serves as a base for follow-on commitment discussions. Phase II is the
principal research effort. At EPA, Phase II projects are presently limited to a
maximum of $150,000 for up to two years.
The SBIR design involves a third phase, which is to pursue potential
commercial applications of the research funded under the first two phases.
Phase III, however, is supported solely by non- Federal funding, usually from
third party, venture capital or large industrial firms.
Phase I and Phase II proposals are peer reviewed principally by
consultants from universities and private companies. The best proposals
receive full EPA research support. Awards are based primarily on EPA
evaluation of technical merit.
Eligibility Requirements to Participate in the SBIR Program
Small Business
A small business concern is one that, at the time of award of the SBIR
Phase I and Phase II funding agreements meets the following criteria.
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(1) Is independently owned and operated, is not dominant in the field of
operation in which it is proposing, has its principal place of business
located in the United States and is organized for profit.
(2) Is at least 51 % owned, or in the case of a publicly owned business, at
least 51% of its voting stock is owned by United States citizens or
lawfully admitted permanent resident aliens.
(3) Has, including its affiliates, a number of employees not exceeding
500, and meets the other regulatory requirements found in 13 CFR
Part 121. Business concerns, other than investment companies
licensed, or state development companies qualifying under the Small
Business Investment Act of 1958, 15 U.S.C. 661, et seq., are affiliates
of one another when either directly or indirectly (A) one concern
controls or has the power to control the other; or (B) a third party or
parties controls or has the power to control both. Control can be
exercised through common ownership, common management, and
contractual relationships. The term "affiliates" is defined in greater
detail in 13 CFR 121. The term "number of employees" is also
defined in 13 CFR 121. Business concerns include, but are not
limited to, any individual, partnership, corporation, joint venture,
association or cooperative.
SB/ft Solicitations-Proposals
SBIR Program Solicitations contain detailed information on:
Research Topics
Instructions for the preparation of SBIR proposals
Release and closing dates
To obtain sufficient information on which to submit an SBIR proposal, you
must contact Ms. Dana Lloyd (listed above) to obtain a copy of the applicable
solicitation. Copies of these solicitations are not available until their stated
release date.
Definitions
• A "small business" -- Previously defined under "Eligibility Requirements
to Participate in the SBIR Program."
• A "minority and disadvantaged small business" concern is one that is:
(1) at least 51% owned by one or more minority and disadvantaged
individuals or, in the case of any publicly owned business, at least
51% of the voting stock of which is owned by one or more minority
and disadvantaged individuals; and
(2) whose management and daily business operations are controlled by
one or more of such individuals.
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• A minority and disadvantaged individual is defined as a member of any of
the following groups:
(1) Black Americans (4) Asian-Pacific Americans
(2) Hispanic Americans (5) Subcontinent Asian Americans
(3) Native Americans
• A "woman-owned small business" is a small business which is at least
51% owned, controlled and operated by a woman or women. "Control" is
defined as exercising the power to make policy decisions; "operate" is
defined as being actively involved in the day-to-day management.
• "Research" (R) or "research and development" (R&D) is defined as any
activity which is: (A) a systematic, intensive study directed toward greater
knowledge or understanding of the subject studied; (B) a systematic study
directed specifically toward applying new knowledge to meet a
recognized need; or (C) a systematic application of knowledge toward the
production of useful materials, devices, and systems or methods,
including design, development and improvement of prototypes and new
processes to meet specific requirements.
• A "contract" is an award instrument establishing a binding legal
procurement relationship between the awarding agency and the
performer, obligating the latter to furnish an end product or service and
binding the agency to provide payment therefor.
• A "subcontract" is any agreement, other than one involving an employer-
employee relationship, entered into by a Federal Government contractor
calling for supplies or services required solely for the performance of the
basic contract.
Innovations, Inventions and Patents
Proprietary Information
a. Information contained in unsuccessful proposals will remain the
property of the offerer. The government, may, however, retain copies of all
proposals. Public release of information in any proposal submitted will be
subject to existing statutory and regulatory requirements.
If proprietary information is provided by an offerer in a proposal which
constitutes a trade secret, proprietary commercial or financial information,
confidential personal information or data affecting the national security, it will
be treated in confidence to the extent permitted by law, provided this
information if clearly marked by the offerer with the term "confidential
proprietary information" and provided the following legend which appears on
the title page of the proposal is completed:
"For any purpose other than to evaluate the proposal, this data shall not
be disclosed outside the Government and shall not be duplicated, used,
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or disclosed in whole or in part, provided that if a funding agreement is
awarded to this offerer 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 funding agreement. This
restriction does not limit the Government's right to use information
contained in the data if it is obtained from another source without
restriction. The data subject to this restriction is contained in
pages ."
Any other legend may be unacceptable to the Government and may
constitute grounds for removing the proposal from further consideration and
without assuming any liability for inadvertent disclosure. The Government will
limit dissemination of such information to its employees and to external
reviewers for evaluation of the proposal.
b. Offerers shall limit proprietary information to only that absolutely
essential to their proposal.
Rights in Data Developed under SBIR Funding Agreements
Rights in technical data, including software developed under the terms of
any funding agreement resulting from proposals submitted in response to this
solicitation shall remain with the Contractor, except that the Government shall
have the limited right to use such data for government purposes and shall not
release such data outside the government without permission of the Contractor
for a period of 2 years from completion of the project from which the data was
generated. However, effective at the conclusion of the 2-year period, the
government shall retain a royalty-free license for government use of any
technical data, whether patented or not, delivered under an SBIR funding
agreement.
Copyrights
With prior written permission of the Contracting Officer, the Awardee
normally may copyright and publish (consistent with appropriate security
considerations, if any) material developed with EPA support. EPA receives a
royalty-free license for the Federal Government and requires that each
publication contain an appropriate acknowledgement and disclaimer
statement.
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Patents
Small business firms normally may retain the principal worldwide patent
rights to any invention developed with Governmental support. The
Government receives a royalty-free license for Federal Government use,
reserves the right to require the patentholder to license others in certain
circumstances, and requires that anyone exclusively licensed to sell the
invention in the United States must normally manufacture it domestically. To
the extent authorized by 35 U.S.C.205, the Government will not make public
any information disclosing a Government-supported invention for a two-year
period to allow the Awardee a reasonable time to pursue a patent.
Joint Ventures or Limited Partnerships
Joint ventures and limited partnerships are eligible provided the entity
created qualifies as a small business.
SBIR RESEARCH TOPICS
Overview
Research is solicited in the ten topic areas listed below. Notwithstanding
the relatively broad definition of R or R&D above, awards are limited to
APPLIED forms of "Research" which does not include large demonstration
projects, surveys (including market state-of-the-art and/or literature surveys) or
the preparation of materials or documents such as process designs or
instruction manuals. The work must directly pertain to "Pollution Control."
The principal object of the solicitation is to increase the incentive and
opportunity for small firms to undertake cutting edge, high-risk or long term
research on pollution control technology that has a high potential payoff if the
research is successful. Major technological innovations often require high
front-end risk investment which effectively lowers the risk for follow-on
investors. Federal support of the front-end research on new ideas, often the
highest risk part of the innovation process, may provide small business
sufficient incentive to pursue such research.
The proposed research must be responsive to the EPA program interests
stated in the topic descriptions of the solicitation. However, the same research
often can be the basis for technological innovation, new commercial products,
processes, or services which benefit the public. This is a desirable economic
objective, and such proposals are encouraged.
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Proposals principally for the development of proven concepts towards
commercialization or for market research should not be submitted, since such
efforts are not supported by this program and will be treated as technically
unacceptable.
The Environmental Protection Agency's SBIR Program is concerned with
national pollution control in solid, liquid, and gaseous media. Innovation in
emission reduction/control processes is sought which concerns, but is not
limited to, industrial, municipal, drinking water, hazardous materials, and
energy production sources. Performance and cost effective approaches
featuring conservation, reuse, recycle, and increased efficiencies are of
special interest.
Research in the development of environmental instrumentation and
systems is also solicited, provided it is directly connected to pollution control
processes.
Selected EPA SBIR Topics • 1990
The following are current topics. They may change from year to year.
A. Drinking Water Treatment
B. Municipal and Industrial Wastewater Treatment and Pollution
Control
C. Biological Sludge Treatment for Improved Handling and Disposal
D. Solid and Hazardous Waste Disposal
E. Mitigation of Environmental Pollution Problems at Superfund Sites
F. Control of Acid Rain Precursors
G. Process Instrumentation for Improved Pollution Control
H. Air Pollution Control
I. Waste Reduction and Pollution Prevention
J. Oil Spill Prevention, Cleanup and Restoration Technology
*US GOVERNMENT PRINTING OFFICE 1990-748-159/00413
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