From the roads and rails to air travel and even drones, the DOT’s SBIR program keeps innovation on the move.
The Department of Transportation (DOT) is one of 11 federal agencies that participate in the Small Business Innovation Research (SBIR) program. Department officials award funds to small business entrepreneurs who present research and development of technologies that seek to improve the nation’s transportation, while making all means of transportation safer for everyone.
On the road to technological advancement within the Department of Transportation (DOT), the federal government utilizes the skills and expertise of the nation’s greatest entrepreneurs through the Small Business Innovation Research program.
The DOT’s SBIR program follows the track of all other federal agencies. But rather than focusing on national security or wartime technology, the DOT provides federal funding for projects related to transportation and transportation safety—something all of us experience on a daily basis.
In this article, we’ll examine the finer details of the DOT SBIR program and find out what you need to apply, who you need to contact, and what accounting requirements you need to qualify for an award.
Table of Contents
What Is the U.S. DOT SBIR Program?
What Is the Purpose of the Department of Transportation SBIR Program?
Which DOT Agencies Participate in SBIR Projects?
What Are the DOT SBIR Eligibility Requirements?
Does the DOT SBIR Program Offer Technical and Business Assistance (TABA)?
What Is the Success Rate of the DOT SBIR Program?
What Are the Selection Criteria for DOT SBIR?
What Is the Commercialization Assistance Program?
How Do I Apply for DOT SBIR Award?
Who Are the DOT SBIR Program Contacts?
What Does DOT SBIR Stand For?
DOT SBIR stands for the U.S. Department of Transportation Small Business Innovation Research program.
What Is the U.S. DOT SBIR Program?
The U.S. DOT SBIR program awards contracts to U.S. small businesses to assist in the funding of research to develop innovative solutions to the country’s transportation challenges.
Referred to as America’s Seed Fund across federal agencies, the SBIR program encourages domestic small businesses to engage in federal research/research and development (R/R&D) that has the potential for commercialization. Through a highly competitive, awards-based program, SBIR enables small businesses to explore their technological potential and provides the incentive to profit from its commercialization.
What Is the Purpose of the Department of Transportation SBIR Program?
The purpose of the DOT’s SBIR program is to stimulate the nation’s economy while simultaneously inspiring technological innovations through targeted funding. Through the SBIR program, DOT officials utilize the valuable resources and capabilities of small businesses to advance transportation improvement projects and transportation safety designs.
Which DOT Agencies Participate in SBIR Projects?
There are multiple smaller agencies that constitute the U.S. DOT. Among those agencies, eight participate in SBIR projects. The eight operating administrations within the DOT include:
-
Federal Highway Administration (FHWA):
Supports state and local governments in the design, construction, and maintenance of our highways, along with highways of federal and tribally-owned lands. The FHWA’s main goal is to ensure the country’s roads and highways are safe and technologically sound.
-
Federal Aviation Administration (FAA):
Works to keep our skies safe for travel through the integration of technology into the aviation system. The FAA focuses on aircraft, air traffic, pilots and airmen, data and research, system regulations, space, and drones.
-
Federal Motor Carrier Safety Administration (FMCSA):
Endeavors to prevent commercial motor vehicle-related injuries and fatalities. The FMCSA oversees the enforcement of safety regulations, working in tandem with federal, state, and local bodies, as well as with the motor carrier industry, and labor and safety interest groups.
-
Federal Railroad Administration (FRA):
Enables the safe, reliable, and efficient movement of people and goods via the impressive network of railroads throughout the country. This includes high-speed rails, Amtrak, and trains carrying hazardous materials.
-
Federal Transit Administration (FTA):
Provides financial and technical assistance to local public transit systems, including buses, subways, light rail, commuter rail, trolleys and ferries. FTA also oversees safety measures and helps develop next-generation technology research.
-
National Highway Traffic Safety Administration (NHTSA):
Keeps people safe on the country’s roadways through the enforcement of vehicle performance standards. The NHTSA partners with state and local governments to reduce deaths, injuries, and economic loss from vehicle crashes.
-
Office of the Assistant Secretary for Research and Technology (OST-R):
Facilities the transformation of the nation’s transportation system to make it safer, more efficient, accessible, and sustainable. It accomplishes its mission through emerging technologies, data, policy, and research.
-
Pipeline and Hazardous Materials Safety Administration (PHMSA):
Protects people and the environment from harm through the safe transportation of energy and hazardous materials. The PHMSA sets national policy, enforces standards, educates, and conducts research to prevent incidents.
- Organized for profit
- Located in the United States
- At least 51 percent owned and controlled by one or more individuals who are citizens of the U.S. or another for-profit business that is at least 51 percent owned and controlled by citizens of the U.S.
- Staffed by no more than 500 employees, including affiliates
- Led by a principal investigator that is primarily employed by the small business
- Registered on the Small Business Administration (SBA) website with an SBC (Small Business Concern) Control ID
Does the DOT SBIR Program Offer Technical and Business Assistance (TABA)?
Yes, it does! The DOT SBIR program office offers TABA to help small businesses make technical decisions, solve technical problems, minimize technical risks, and commercialize their SBIR products.
In order to receive assistance through TABA, you must log into the DOT’s secure proposal submission site, where you will be asked:
“If selected for an award, is your firm interested in participating in the U.S. DOT’s Technical and Business Assistance (TABA) Program? The program provides assistance to Phase I awardees in the area of commercialization planning and strategy (see Section II (C)(3) of the Solicitation). Firms selected for award can choose to receive assistance from (1) U.S. DOT’s pre approved vendor, or (2) their own proposed subcontractor (and provide additional documentation for verification as determined by U.S. DOT’s Acquisitions Office).
- Yes – I am interested in the TABA Program and plan to use U.S. DOT’s approved vendor
- Yes – I am interested in the TABA Program and plan to propose to use a vendor of my choosing and will submit documentation as requested by U.S. DOT if selected for award
- No – I am not interested in the TABA Program
- I am undecided at this time”
Your answer will decide if and how you will receive technical and business assistance.
What Is the Success Rate of the DOT SBIR Program?
While the federal government invests about $50 billion per year into the SBIR program, the funds are not distributed evenly to the 11 federal agencies that participate in SBIR. Instead, the bulk of the funding goes to the Department of Defense (DOD), Department of Health and Human Services (HHS), Department of Energy (DOE), National Science Foundation (NSF), and the National Aeronautics and Space Administration (NASA).
The DOT receives only 3 percent of those funds. As such, the DOT success rate is comparatively low at 7 percent for Phase I and Phase II. Per year, the DOT averages 14 Phase I awards and 15 Phase II awards, with award amounts totaling $1.9 million for Phase I and $9.4 million for Phase II.
DOT SBIR Phase I
The initial phase of the DOT’s SBIR program requires small businesses to establish the technical merit, feasibility, and commercial potential of proposed R&D efforts.
How Much Funding Does DOT Award For Phase I?
DOT SBIR Phase I awards typically do not exceed $150,000.
How Long Is DOT’s SBIR Phase I?
The DOT SBIR program funding covers total costs for six months.
DOT SBIR Phase II
The second phase of the DOT’s SBIR program continues all of the efforts that started in Phase I. Phase II funding is also based on the scientific and technical merit and commercial potential of the project proposed in Phase II.
How Much Funding Does DOT Award for Phase II?
DOT SBIR Phase II awards typically do not exceed $1 million.
How Long Is DOT’s SBIR Phase II?
DOT SBIR program funding for Phase II covers total costs for a period of two years.
What Are the Selection Criteria for DOT SBIR?
The DOT makes its selections for SBIR funding using a set of criteria to measure the importance, worth, and quality of the small business submission. The criteria examines your project’s:
- Technical merit and feasibility
- Experience, qualifications, and facilities
- Effectiveness of proposed work plan
- Commercial potential
- Offer quality
What Is the Commercialization Assistance Program?
Offered to SBIR Phase I and Phase II awardees, the Commercialization Assistance Program (CAP) helps emerging companies overcome technical barriers to commercializing transportation technology. The program specifically helps DOT SBIR Phase I and Phase II awardees by providing free assistance or information to help small businesses with specific technology questions or needs.
Examples of assistance include short-term access to technical expertise and facilities such as:
- Test and measurement of systems or components
- Analytical testing of materials
- Insights on existing or emerging technologies
- Assistance in addressing technological performance and market analysis
- Addressing general technology problems
How Do I Apply for DOT SBIR Award?
In order to apply for a DOT SBIR award, you must first submit a proposal when there is an open DOT SBIR solicitation. However, there are multiple registrations required before you can submit. These registrations include:
- System for Award Management (SAM): Complete and maintain an active SAM registration before being awarded an SBIR contract.
- Unique Entity Identifier (UEI): Obtain a UEI, a 12-character alphanumeric ID assigned to an entity by SAM.gov.
- SBA Company Registration: Register with the SBA Company Registry prior to proposal submission. You will receive a unique SBC Control ID to be used for submissions at any of the 11 participating agencies in the SBIR programs.
SBIR Phase I Proposal Submission
Phase I proposals must be submitted when the DOT issues a solicitation, which they do once per year. In order to be fully prepared for Phase I, the DOT suggests the following guidelines:
- Carefully read the topic descriptions, as well as all information available in the open solicitation.
- Closely follow all the requirements when preparing your SBIR proposal.
- Demonstrate that you possess a deep understanding of the problem described in your chosen topic.
- Fully document the credentials and expertise of your principal investigator.
- Draft a detailed work plan that expresses how you plan to accomplish your proposed goals.
- Describe your proposal’s potential for commercialization.
- Make sure you complete all appendices.
SBIR Phase II Proposal Submission
After successfully completing the Phase I contract, you are automatically eligible for SBIR Phase II. The DOT will give you a due date, along with content and submission requirements, as you near the end of Phase I.
Who Are the DOT SBIR Program Contacts?
The U.S. DOT SBIR program office is located in Cambridge, MA, in the U.S. DOT Volpe Center. For questions regarding the DOT SBIR program, you can call the DOT SBIR hotline at 617-494-2051 or email them at dotsbir@dot.gov.
What Are the DOT SBIR Topics?
Though topics for 2023 have yet to be released, topics for 2022 touched on transportation areas that included intelligent road systems, artificial intelligence, equity, material safety, climate change, and more.
Each year, the DOT’s SBIR program follows the department’s Innovation Principles. These six, purpose-driven principles outline the DOT’s focus on fostering innovation that serves the interests of the public, workers, and communities.
Can I Suggest a DOT SBIR Topic?
Yes, you can suggest a topic for consideration! The DOT reviews each and every submission; however, not all topics will be included in future solicitations. And keep in mind that if your suggested topic is accepted, all qualified small businesses will have the chance to submit a proposal for your topic.
What Are Some DOT SBIR Success Stories?
With less funds to go around than other federal agencies, the DOT’s SBIR program is extremely competitive, but there have been plenty of DOT SBIR success stories over the years. Here are some of those incredible achievements by U.S. small businesses.
The Dilemma Zone
Company: Intelligent Automation, a BlueHalo Company
Phase II Award: $999,896
The Dilemma Zone is a roadway phenomenon described as the moment when drivers face a stop light that suddenly turns yellow, requiring either an abrupt stop or a rapid acceleration through the intersection. This situation is dangerous because a vehicle may not have adequate braking distance to safely stop or sufficient time to safely proceed through the intersection before the light turns red. This scenario has caused high-speed rear-end and side-impact crashes at lighted intersections.
Maryland-based and woman-owned, Intelligent Automation, Inc. (IAI) won both Phase I and Phase II SBIR awards (2014–2017) to find solutions to the Dilemma Zone problem. IAI’s goal was to develop and implement a multi-technological approach to warning drivers of a Dilemma Zone through the integration of infrastructure and onboard warning systems. Technologies deployed in this project included artificial intelligence, dedicated short-range communications, and a detection, control, and warning system (DCWS) that uses data to determine travel time.
IAI worked with the Delaware Department of Transportation (DelDOT) to test this technology at two strategically selected intersections. At the completion of the SBIR Phase II, IAI wanted to continue to work with Federal Highway Administration (FHWA) and DelDOT to implement this technology at 10 additional intersections.
Mini-Roundabout
Company: ZKxKZ
Phase II Award: $1,150,000
Essentially a circular intersection, a roundabout guides drivers in a counterclockwise route around a circular center. Drivers are forced to slow down and are required to yield to vehicles already in the roundabout. Modern implementations can operate with no lighted signals or street signs in the roundabout, which helps with the continuous flow of traffic.
Given the success and benefits of mini-roundabouts, the Federal Highway Administration (FHWA) wanted to investigate whether there were opportunities to improve their design, functionality, and processes. With investment from FHWA through Phase I and Phase II SBIR awards, ZKxKZ, LLC, developed a design that provides low-cost, easily installed mini-roundabouts made from recycled plastic.
Through the FHWA’s SBIR award investments, ZKxKZ collaborated with both Georgia Department of Transportation (GDOT) and Virginia DOT (VDOT) for initial sites in Jackson, GA, and Annandale, VA. Because the mini-roundabouts are easy to install, modify, or remove, these sites also provided a convenient method for testing and evaluating the effects at intersections.
Smart Street Crossing
Company: Savari, Inc.
Phase II Award: $2.9 million
As drivers and pedestrians alike become increasingly distracted by their smartphones, crossing the street safely is not as straightforward as it used to be. The result is an increase in pedestrian fatalities. What if we could find ways to keep pedestrians safe, even when distracted by their phones?
Developed by Savari, Inc., SmartCross is a smartphone application that interfaces with traffic signal systems that control traffic lights and receives information about pedestrian signals. Sending signals between the pedestrian’s phone and the nearest traffic signal box, the app alerts pedestrians when they have the signal to cross.
The majority of the SBIR funding was used in the app’s concept development, as well as with focus groups and design. Savari took its role in pedestrian safety a step further by participating in the DOT’s connected vehicles research program, an initiative to identify threats on the roadway and communicate such information to drivers via wireless networks.
What Are the DOT SBIR Accounting Requirements?
The federal government has strict accounting requirements for small business applicants of all 11 agencies that participate in the SBIR program. It’s imperative that you have all of your accounting in order. If not, you run the risk of letting life-changing federal funding slip through your fingers.
For Phase I, your small business is expected to have a basic accounting system. But in Phase II, with much higher dollar amounts being awarded, the federal government has higher expectations. Among other things, contracting officers want to be confident that you’ve accurately estimated your indirect rate, successfully differentiating direct from indirect costs, while isolating unallowable costs.
That’s just the beginning of the accounting requirements for a successful DOT SBIR bid. Check out our blog, “Accounting by the Numbers: Basic Requirements for SBIR Projects,” for a full rundown of accounting basics for SBIR.
Whether it’s for the DOT or another participating federal agency, Team 80 can help with SBIR accounting. Let’s work together to ensure your accounting is where it needs to be, so you can focus on research and development.
