Sole-source awards without further written justification to leverage the results of SBIR Phase I and II investments.
Small Business Innovation (SBIR) and Small Business Technology Transfer (STTR) Phase III awards provide a rapid and agile approach for all federal agencies to leverage the Research/Research & Development (R/R&D) investments made through competitive SBIR/ STTR Phase I and/or II awards. Agencies are authorized, to the greatest extend practicable, to make awards to SBIR/ STTR Program participants for work that derives from, extends, or completes efforts made under either a prior SBIR or STTR Phase I or Phase II funding agreement.
The following are examples of the types of activities that constitute SBIR Phase III work:
- Commercial application including R/R&D, testing and evaluation of services or technologies.
- SBIR-derived commercial or modified commercial products or services intended for use by the Federal Government.
- Continuation of Phase I or Phase II SBIR work.
See “Use Cases and Example Documents” for specific agency applications.
- Provides for the rapid procurement of the production and/or delivery of products, and/or services stemming from SBIR/STTR investments.
- Provides options for acquisition programs to adapt or further develop previously developed internal or cross agency technology.
- Reduces duplication of effort, building on previous investment.
- Offers opportunity to cross-pollinate or develop lateral applications of innovative technologies into new markets.
- Enables “bridging the gap” between R&D and commercialization.
- Reduces pre-award administrative effort and award development time.
SBIR/STTR Phase III awards can increase efficiency and deliver value and savings to agencies and their R/R&D programs by leveraging the Government’s R/R&D investment in previous SBIR Phase I and/or Phase II efforts. This also maximizes the return on investment made through the SBIR/STTR programs.
- Flexible and rapid access to promising R&D investments
- Any agency, including non-SBIR agencies, can issue a Phase III award.
- Awards can be based on either a SBIR/STTR Phase I or II award.
- There is no limit on number, duration, contract type, or dollar value of Phase III awards, and there is no time limit by which a Phase III award must be made following a Phase I or Phase II award.
- Agency is not required to execute a sole source justification under FAR Part 6 or publicize a planned or executed sole source award under FAR Part 5 if the award is issued under the authority of 15 U.S. Code § 638(r)(4).
- Phase III awards may be issued to other-than-small businesses.
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Reduced technical risk and delivery time
- Proof of concept already established.
- Prototype or working model may have been developed.
- Testing and evaluation is likely to have been accomplished.
- Adaptions to an existing system or component can reduce development effort.
- Incremental improvements to address key performance parameters can yield alternative and/or cheaper innovative solution.
- Small Business Benefit
- Reduces barriers to entry helping disadvantaged, woman owned, and other small businesses concerns (SBC) become established sources for the Federal government.
- Provides capital to help SBC’s “bridge the gap” between R&D and the commercial marketplace.
- Expands marketplace options to SBCs.
The innovativeness of Phase III awards is less about acquisition process and more about the opportunities the offer. Phase III awards provide the opportunity to reduce R/R&D costs, time to award, technical risk, and acquisition effort. They also provide a vehicle through which Government and small business to innovate new products and services. Phase III awards also provide the Government the opportunity to increase the Return on Investment (ROI) of its Phase I and II awards. The ROI of the SBIR program, as measured by economic impact, is estimated at 22:1.
• https://www.navysbir.com/docs/DON-SBIR_STTR_Phase-III_Guidebook_V2-2020.pdf
• https://sbir.nasa.gov/resource-library
• https://science.osti.gov/sbir/SBIR-STTR-Phase-III-Success-Stories
• https://aas.gsa.gov/sbir/
• https://aas.gsa.gov/SBIR_Success_Story_Slipsheet_4.24.2020.pdf
