Learn the NASA SBIR basics, navigate the BAA, and set up accounting that passes scrutiny.
What is the NASA SBIR Program?
Do you have an innovative idea worthy of deep space? We want to help you bring that idea to life with government funding.
In 2007, small business visionaries created a revolutionary technology that helped NASA’s Phoenix Mission find water on Mars.
Honeybee Robotics, Yardney Technical Products, and Starsys Research furthered NASA’s mission by developing an icy soil acquisition device, lithium-ion batteries, and a wet chemistry laboratory. But if they didn’t have the government’s help, the ideas might have landed on the cutting room floor instead of Mars.
The Small Business Innovation Research program helped these small businesses bring their ideas to life. The program has awarded funds to small businesses like yours for decades and supports early-stage research and development for specific government agencies such as NASA.
The NASA SBIR program might be the key to bringing your revolutionary technology to life and into outer space. Keep reading to learn everything you need to know about NASA’s SBIR program.
Eligibility and Phases
To be eligible for the NASA SBIR program, your company must be a for-profit business with fewer than 500 employees, located in the United States, and at least 51 percent owned and operated by one or more U.S. citizens or permanent residents.
There are three phases in the NASA SBIR and STTR programs, where Phase I establishes feasibility, Phase II advances functionality through research and development, and Phase III focuses on commercialization and is not funded by SBIR or STTR.
SBIR vs. STTR
The Small Business Technology Transfer program expands federal innovation funding by requiring a formal collaboration with a U.S. nonprofit research institution, while SBIR allows cooperation but doesn’t require it.
How to Apply for NASA SBIR Funding
Understanding the Broad Agency Announcement Process
NASA manages the solicitation through a Broad Agency Announcement that sets the calendar, topics, and subtopics, submission mechanics, and compliance requirements. Read the BAA carefully, track every deadline, and work backward to set internal milestones for narrative drafting, pricing, registrations, and final reviews.
Application Requirements
Your proposal will be evaluated on five factors:
- Scientific and Technical Merit: State the innovation clearly, explain the technical approach, and show why the work is feasible and advances the state of the art.
- Experience and Qualifications: Demonstrate that your team, facilities, and relevant past performance are sufficient to execute the proposed work.
- Work Plan Effectiveness: Present a realistic schedule, well-defined tasks and deliverables, and credible risk mitigation across the period of performance.
- Commercial Potential: Describe target customers, market size, use cases, and your path to revenue so the business case is compelling.
- Price Reasonableness: Show that pricing is aligned to scope, that costs are allowable and allocable, and that your assumptions are defensible.
Avoid letters of general endorsement because NASA does not consider them during review.
Managing Your NASA SBIR Award
Required Financial Systems
- Ensure your accounting system complies with applicable laws and regulations so reviewers and auditors can rely on the financial data.
- Maintain a reliable system so transactions, balances, and reports can be trusted throughout the award lifecycle.
- Implement internal controls that minimize the risk of false charges and misallocations and detect errors promptly.
- Standardize billing procedures so invoices align with contractual terms and the approved budget structure.
- Distinguish direct costs from indirect costs so every charge is traceable and allocable to the award.
- Record all costs in the general ledger so totals reconcile with reports and submitted drawdowns.
- Use contemporaneous timekeeping for all personnel so labor is captured accurately.
- Apply direct and indirect labor rates and cost pools correctly so charges remain consistent.
- Segregate unallowable costs so disallowed expenses never appear on sponsor billings.
Understanding NASA Cost Categories
- Direct costs are expenses that can be specifically identified with the project.
- Indirect costs are shared expenses that are allocated to projects through approved methods.
- Unallowable costs are expenses that must be tracked separately and excluded from billing.
Staying Compliant Throughout Your Award
Steps for Compliance
- Establish proper accounting from day one so policies, systems, and controls are in place before charging the award.
- Maintain meticulous documentation so every cost is backed by receipts, agreements, payroll records, and approvals that support allowability.
- Implement regular financial reviews so budget versus actuals are monitored, variances are explained, and corrective actions are taken promptly.
- Separate personal and business expenses so the audit trail remains clean, defensible, and free of commingled charges.
Reporting Requirements
- Technical reports must follow the cadence and format specified in your award.
- Financial reports must reconcile to the general ledger and be submitted by the stated deadlines.
- Commercialization planning must be updated as directed by the award package.
Additional NASA SBIR Opportunities
TABA
Technical and Business Assistance resources can support market research, intellectual property guidance, and commercialization activities.
Entrepreneurial training and customer discovery can help pressure-test use cases and buyer dynamics for your technology.
A commercialization-focused track helps product-driven, commercially focused teams make their technologies more attractive to investors, customers, and partners.
Team 80’s NASA SBIR Accounting Services
Specialized NASA Grant Expertise
Team 80 configures compliant accounting systems, builds reporting workflows, and supports ongoing award management so founders can focus on technical progress. We implement the controls described above and keep your award audit-ready.
Sarah Sinicki
Team 80 CEO
Sarah is a leader focused on serving small businesses in various industries. She has worked with a multitude of companies over the last 25 years and loves helping business owners find success. Sarah is genuinely committed to unburdening Team 80 clients so that they have the freedom to focus on their business. In her free time, you can find her spending time with her husband, two kids, and her Yorkies, Marley and Ziggy. When she is not helping business owners, you can find her in a Reb3l Groove class dancing it out. Sarah is also an avid Colorado Avalanche fan, so if you ever want to talk about hockey, she’s your gal.
