United States Off ice of Research and EPA/600/9-91/035
Environmental Protection Development September 1 991
Agency Washington, DC 20460
&EPA Small Business
Innovation Research
Program
A6SN8T
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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 the
Small Business Innovation Research (SBIR) Program operating as a part of the
Office of Exploratory Research, Office of Research and Development, U.S.
Environmental Protection Agency.
The contents of this publication are not inclusive. More specific and detailed
information is provided when the Agency releases the yearly program solicitations
for Phase I and II of the program in October-November and February, respectively.
Phase n 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. Environmental Protection Agency
401 M Street, S.W.
Washington, DC 20460
Phone: (202)260-7473
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 Devel-
opment (ORD) administers the 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 R&D needs, the SBIR Program
also provides incentives for the conversion of this research into potential commer-
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cial applications and technological innovations. At no additional cost to the
government, SBIR increases the return on investment from Federal R&D.
The Small Business Innovation Development Act of 1982 (P.L.97-219)
requires 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 R&D needs.
• Increase private sector commercialization of innovations derived
from Federal R&D.
• Foster and encourage participation by minority and disadvantaged
persons in technological innovation.
Under the SBIR Act, Federal agencies solicit proposals for R&D from science
and technology-based firms.
Conducted in eleven Federal R&D agencies, SBIR is one of the most competi-
tive 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 n. For
example, in 1991, the ninth year of theprogram.EPA received365 Phasel proposals
which resulted in 31 awards, and 14 Phase II projects were funded from 32 of the
1990 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 commer-
cial 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 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.
(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.
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(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, etseq., 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!3CFR 121. Business concerns include, but are not limited to, any
individual, partnership, corporation, joint venture, association pr
cooperative.
SBIR 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 die 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.
• 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) Asian-Subcontinent 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"
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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 studies; (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 Govern-
ment 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, confi-
dential personal information or data affecting the national security, it will be treated
in confidence to the extent permitted by law, provided this information is 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, 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 assum-
ing any liability for inadvertent disclosure. The Government will limit dissemina-
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lion 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 essen-
tial 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 solicita-
tion 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 nor-
mally may copyright and publish (consistent with appropriate security consider-
ations, 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.
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 twelve 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
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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 this 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.
EPA SBIR Solicitations have attempted to present basic program requirements
and definitions in a concise manner, however, many offerers apparently fail to
appreciate their importance. The following discussion is provided to augment these
program requirements and definitions found in EPA SBIR Solicitations.
EPA must review every SBIR offering in detail. We cannot judge a proposal
which is not complete. Proposals offering to perform preliminary work such as
state-of-the-art, literature, and/or market surveys are not supportable. Similarly,
proposals which only offer the performance of a design activity cannot be judged
since we cannot guess what sort of apparatus or process will result. Without a
straight-forward description of the process and/or apparatus to be tested, there can
be no determination of the scientific and technical quality of the work plan by our
Peer Review Panel.
It is recognized that any research and development project starts out with a
conception on the part of the inventor, followed by appropriate surveys to rule out
duplication and inappropriate process details, finally leading to the process design
of a prototype apparatus or process which could be tested to show the feasibility of
the concept. This is a paper study up to this point, although some researchers find
it useful to do small scale, short term laboratory testing of some portions of the
process to guide their thinking on the prototype design and how it would be tested
to show its feasibility. All of the foregoing is preliminary work which must be done
prior to writing a proposal to EPA's SBIR Program.
The resultant prototype process design can then be described in sufficient detail
in a proposal to EPA's SBIR Program to enable our Peer Reviewers to determine
what the pollution control process is and whether or not it is innovative as well as
scientifically and technically sound. Further, the work plan must allow our Peer
Reviewers to ascertain the scientific and technical quality of the testing procedures
and schedule proposed, and if it is likely to permit a finding of feasibility if carried
out properly.
The requirement that the offerer designate a topic, and only one topic, is also
an absolute necessity. EPA receives hundreds of proposals each year and we have
special teams of reviewers for review of each research topic. In order to ensure that
proposals are evaluated by the correct team, we place complete responsibility on the
offerer to select and identify the topic.
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EPA's Solicitation does not exclude design and development of prototype
equipment from the broad definition of research. We expect the off erors to describe
their prototype clearly and how it would be tested in detail. EPA's SBIR Program
does not fund the design of the prototype, only the construction and testing of the
prototype as designed is funded.
Proposals principally for the development of proven concepts towards com-
mercialization 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 produc-
tion 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 - FY 1992
The following are FY 1992 topics. They may change from year to year.
A. Drinking water treatment
B. Municipal and industrial waste water treatment and pollution control
C. Biological sludge treatment for improved handling and disposal
D. Solid and hazardous waste disposal
E. In situ treatment of hazardous waste at superfund sites
F. Innovative restoration technologies removing heavy metals at
superfund sites
G. Control of acid rain precursors
H. Process instrumentation for improved pollution control
I. Air pollution control
J. Waste reduction and pollution prevention
K. Oil spill prevention, cleanup and restoration technology
L. Improved measurement technologies for lead detection in lead-based
paints*
* Note: Topic L is a onetime only topic, separately funded, which uniquely
does not require a direct pollution control function.
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ft U.S. GOVERNMENT PRINTING OFFICE: IWI - 54*-W7/«>«44
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