Phase IIB
B. Eligibility
for Phase IIB
C. Phase
IIB Proposal Preparation
New FastLane Requirements!
D.
Review
of Phase IIB Proposals
Intellectual
Merit Criterion
Broader
Impacts Criterion
E.
Award
Recommendation
F.
Payment
and Release of Funding
G.
Reporting
Requirements
A. Phase
IIB Option Objective (only
applicable for SBIR and STTR Phase II grantees.)
The Phase IIB Option helps bridge the gap in funding between Phase
II and Phase III. The Phase IIB Option will provide additional funds
to Phase II grantees that obtain third party funds. The objective
of the Phase IIB Option is to extend the R&D efforts beyond
a current grant to meet the product/process/software requirements
of a third party investor to accelerate the Phase II project to
the commercialization stage and/or enhance the overall strength
of the commercial potential of the Phase II project. The Phase IIB
Option extends the Phase II grant for only one year and the combined
Phase II and IIB will not typically exceed 3 years in duration (for
Phase IIB supplements in excess of $250,000, Phase II grants may
be extended for two years, not to exceed 4 years in duration.)
The Phase IIB option is a one-time opportunity that only
applies to Phase II grants that are active on the day these proposals
are due. There is no resubmission at a later date if a Phase IIB
proposal is declined. A no cost extension disqualifies a grantee
from the Phase IIB option. Make sure that application is made
for Phase IIB during the original performance period of the Phase
II grant, (for further information call your Program Officer).
Please note these important changes to
the Phase IIB Program:
* Phase II eligible grantees now have the choice of two deadlines
for submission of Phase IIB proposals: March 1 or November
1.
* Both SBIR and STTR active Phase II grantees are eligible to apply
for Phase IIB funding -- effective October 1, 2003.
* Effective November 1, 2003 -- the maximum for Phase IIB supplement
has increased from $250,000 to $500,000. The total cumulative award
for the Phase II grant and Phase IIB match has increased to $1,000,000.
Do not submit the proposals more than
thirty days prior to the deadline.
B. Eligibility
for Phase IIB
The Following permits a company to participate
in the Phase IIB process:
1. Completion of one year of work on the Phase II grant (or
special permission from your Program Officer).
2. Funding from a third party investor (reference definition of
third
party investor).
The third party investor must commit a minimum of $100,000. NSF
will match up to 50% of funds received. The SBIR/STTR Phase II awards
will be made for a maximum of $500,000 and the Phase IIB additional
supplement will be made for a maximum of $500,000. The total cumulative
award for the Phase II plus the Phase IIB match cannot exceed $1,000,000.
Please note -- Phase IIB funding in excess of $250,000 up to $500,000
have additional requirements:
1. Only non-governmental, private sector
third-party funding will be matched by NSF.
2. A representative from the SBIR grantee
institution and one from the private sector third-party are expected
to make a presentation to a NSF Program Officer panel.
3. The final award recommendation may be
subject to SBA approval.
The additional Federal funds can be used
only for advancing the research related elements of the project.
The third-party investor funds can be used for research or other
business related efforts in order to accelerate the innovation to
commercialization. Market research, advertising, patent applications
and refining of the business plan are good examples of uses for
the third-party investor funds.
A letter of commitment from the third
party investor must specify the amount of the investment and the
method by which the investor will provide the funding to the company.
The third party funding can be cash, liquid assets, tangible financial
instruments but not in-kind or other "intangible assets".
A proposer may submit the original third party funding commitments
submitted in the Phase II proposal, provided new updated commitment
letters were obtained for the Phase IIB proposal. Loans and investments
with contingency clauses are not acceptable. Self-funding does not
qualify for the Phase IIB option.
C. Phase
IIB Proposal Preparation (Phase
IIB proposals MUST be submitted using FastLane.)
The
Phase IIB proposal shall not exceed 15 pages. The additional
work proposed should be an expansion of the technical work being
performed in the Phase II project and must fall within the scope
of the present Phase II project. The proposal will contain the following:
The
following sections count toward the 15 pages:
- An
Executive Summary of the Commercialization Plan
- A
discussion of the "New" R&D Activities (including how the
third-party funding will be used to accelerate and/or expand commercialization
- Letter(s)
of commitment(s) to provide the investment match for Phase IIB
SBIR funding, signed by the third party investor(s)
The
following sections do not count toward the 15 pages:
The
following are the steps for preparing the proposal using the FastLane
system.
1.
Go to the FastLane Home Page (www.fastlane.nsf.gov)
2.
Select from the left hand-side of the page the "Proposals, Awards
and Status" link
3.
Provide your Last Name, SSN, and Password. Click on "Login"
4.
Select from the Principal Investigator (PI)/Co-Principal Investigator
(Co-PI) Management Screen the option entitled "Award And Reporting
Functions"
5.
Select the "Supplemental Funding Request" link
6.
A List of Current Awards will appear. Highlight the award
you are preparing the Phase IIB proposal for and then click "Prepare
Supplemental Funding Request"
7.
Highlight award number (it should already be highlighted) and then
click on "Create New Supplemental Funding Request"
8.
At the Form Preparation Screen 6 "GO" buttons appear. The
following information MUST be provided in each:
GO
Summary of Proposed Work
A.
Executive Summary of the Commercialization
B."New" R&D Activities Proposed
GO
Justification for Supplement
Upload the "Third-Party Commitment Letters, Purchase Orders, Licensing
Agreements, etc.
GO
Supplementary Docs
Upload the following documents (combine the two word documents and
upload as one file). The Word templates for the Milestone
Chart and the Certificate of Current Cost Pricing Data can be found
at: http://www.eng.nsf.gov/sbir/forms.htm
- New
Milestone Chart
- Certificate
of Current Cost Pricing Data
GO
Revised Expiration Date:
Add
12 months (or 24 months for a super-sized Phase IIB) to your current
expiration date
GO
Budgets (including Justification)
Prepare
new budget for the Phase IIB activities (only the NSF funding).
Make sure to budget one trip to the DMII Conference.
Provide
complete line item justification for ALL budget items
GO
Add/Delete Non Co-PI Senior Personnel
Use
this module if personnel for the Phase IIB activities will change
from
the present Phase II project
9.
Complete all required forms and then click on "Go Back"
10.
At the "Request for Supplemental Funding" screen click on "Allow
SRO Access"
11.
At the "Sponsored Research Office (SRO) Access Control" screen,
select "Allow SRO to view, edit and submit proposal"
12.
A confirmation message stating that the SRO has access to the proposal
will appear.
13.
To actually submit the Phase IIB proposal the following steps will
need to be performed. This can only be done by the individual that
the company has designated as the "Authorized Organizational Representative"
- Go
to the FastLane Home Page.
- Select
from the left hand-side the "Research Administration" link
- Provide
your Last Name, SSN, and Password.
- From
the "Research Administration Functions for Your Company" select
the "Submit Proposals to NSF" GO button
- In
the Proposals in Progress Window, highlight the proposal and then
select "Submit"
14.
If you have problems or questions please contact the NSF FastLane
Help Desk at 800-673-6188. Make sure to inform the
Help Desk that you are submitting a Supplemental Funding Request.
D.
Review of Phase IIB Proposals
All
Phase IIB proposals will be reviewed in-house by a minimum of two
NSF Program Officers. Each proposal will be reviewed based on the
review criteria below.
Criterion:
What is the intellectual merit of the proposed activity?
Potential
considerations: Will the completion of the proposed activity lead
to a solid foundation of the scientific and engineering knowledge
and understanding base? Has the firm progressed satisfactorily in
the Phase II activity to justify a Phase IIB activity? Is the proposed
plan a sound approach for establishing technical feasibility that
could lead to commercialization?
Criterion:
What are the broader impacts of the proposed activity?
Potential
considerations: Does the commercialization plan summary in the proposed
activity show a clear path to commercial and societal benefits?
Does the proposed activity reflect changes to the Phase II commercialization
plan that further improves the chances of conversion of research
in order to provide societal benefits? What are the expectations
of the third party and how effective will the third party funded
activity lead to commercial and societal benefit? Evaluate the competitive
advantages of this technology vs. alternate technologies that can
meet similar market needs.
E.
Award Recommendation
A Phase IIB applicant will be notified within 60 days from
submission deadline of the Phase IIB proposal. If a proposal is
recommended for award, the company must submit proof of the bank
transaction showing that the third party has exercised its commitment.
F.
Payment and Release of Funding
The Phase IIB match will be released in two installments.
The first 50% of the NSF matching funds will be released upon the
award of the Phase IIB supplement. The last 50% of the NSF
matching funds will be released on completion of 6 months of work
into the Phase IIB program, and submission of an acceptable 6-month
interim report. The final payment on the original Phase II
will be made at the end of the Phase IIB supplement.*
Payment
will be released upon the receipt of a letter that the entire amount
of the funds from the outside investor has been transferred to the
company; this letter must be signed by both the company and the
third party investor and must specifically state the total amount
of the third party investment. For other forms of third party
matches, such as contracts or purchase orders, a detailed release
schedule (if applicable) must be provided.* A copy of the
bank statement, contract, or purchase order must be provided to
NSF. This information should be sent to the cognizant NSF
SBIR Program Officer. The deadline for receipt of all financial
documentation is 60 days following notification of selection
for Phase IIB funding.
*
All third party investment funds, upon which the Phase IIB supplement
is made, must be transferred to the company by the end of the Phase
IIB award. A copy of bank statements must be provided to NSF
to verify that all funds have been transferred.
G.
Reporting Requirements.
In
updating the milestone chart, the report due at the end of the 4th
reporting period will be treated as an interim progress report using
the standard progress report format. The final reporting documents
will now be required at the end of Phase IIB. Upon completion of
the Phase IIB, complete documentation, including initial Phase II
as well as Phase IIB supplemental activities must be reported. The
report must include:
1.)
Combined Phase II and IIB Final Report (submitted electronically)
2.) Commercialization Report inclusive of updated Commercialization
Plan
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