SBIR Program
Small Business Innovation Research
Several federal agencies fund the SBIR program to support early stage research and development at small technology companies. The stated purposes of the SBIR program are to:
OR Concepts Applied has participated in the highly competitive SBIR program since 1990. Several times a year, various federal agencies and departments (including the Air Force and the Navy) publish a solicitation with hundreds of topics in which they are interested. Small companies are encouraged to respond with proposals for this three phased program.
Companies must first apply for Phase I awards of up to $100,000 to demonstrate the technical feasibility and the commercial merit of a concept. If Phase I is successful, the company may be invited to prepare a Phase II proposal for an additional $750,000 and two years of effort - the goal of which is to produce a prototype. Following Phase II, companies are expected to find private sector and non-SBIR government sources to develop the concept into a product for sale in the private sector and/or military market.
Phase III is the key to SBIR success. Rule changes over the past few years have increased incentives to make use of SBIR technology by both government and commercial entities. Perhaps most importantly, Phase III contracts may be awarded SOLE SOURCE. The Government has deemed that Phase I and Phase II wins are deemed as adequate competition.
In general, a Phase III contract may be awarded for any project that 1) derives from, extends, or logically concludes efforts performed under prior SBIR funding agreements and 2) is funded by sources other than the SBIR program. This generous definition makes it very easy for a government entity to take advantage of SBIR technology!
Furthermore, there are no limits on the number, duration, type, or dollar value of Phase III awards. Soon after this rule change, several small businesses won contract award of over ten million. In early 2006, SYS Technologies of San Diego won a Phase III award potentially worth $75 million over five years. Fortunately, an associated rule change removes the small business limitation to allow large Phase III contracts.
It is also possible for small businesses to subcontract to other companies (large or small) when taking on Phase III projects. ORCA is enthusiastic about teaming with other companies and is willing to use its portfolio of SBIR technologies as part of a competitive strategy.
Click here to access the DOD SBIR website