Learn everything you need to know to be on the receiving end of a game-changing NIST SBIR award.
Operating as a federal agency under the Department of Commerce (DoC), the National Institute of Standards and Technology (NIST) provides crucial guidance, training, information, and assistance, enabling small businesses to collaborate effectively on standardization and conformity assessment activities. Explore the program’s eligibility requirements, evaluation procedures, and the accounting standards essential for this competitive award program.
At the heart of innovation lies the desire to shape the future with groundbreaking technologies. One powerful tool that can accelerate this sky-high aspiration is the Small Business Innovation Research (SBIR) program deployed by the National Institute of Standards and Technology (NIST).
Table of Contents
What is the NIST SBIR program?
What is the Notice of Funding Opportunity (NOFO)?
What federal agency is the NIST a part of?
What are the objectives of the National Institute of Standards and Technology SBIR program?
What are the eligibility requirements?
How do I apply for National Institute of Standards and Technology SBIR awards?
Who are the NIST Program contacts?
What are the NIST SBIR topics?
As a part of the Department of Commerce, NIST works at the cutting edge of technology, setting the standards and measurements that fuel innovation and industrial competitiveness. This SBIR program serves as a powerful springboard, offering essential funding and support to take your technological ideas from concepts to market-ready solutions.
But there’s more to successfully piloting the NIST SBIR program than merely developing innovative technologies. The program comes with an intricate landscape of requirements, including the need for precise, compliant accounting—a critical, yet challenging task.
In the following sections, we will delve deeper into the NIST SBIR program, shedding light on its objectives, eligibility criteria, the intricacies of different phases, and more. We will also emphasize how Team 80’s expert accounting services can seamlessly fit into your project to make the work less daunting and more rewarding.
What is the NIST SBIR program?
The NIST SBIR program is an initiative that helps small businesses make strides in the sphere of research and development (R&D). As a part of the broader SBIR program mandated by congress and presented by 11 total agencies—under the auspices of the Small Business Administration (SBA)—the NIST SBIR is a specialized sector that focuses on meeting the unique and advanced R&D needs of the federal government.
Here’s a closer look at what the program involves:
- Competitive and Merit-based: The NIST SBIR program is highly competitive, favoring the most promising small businesses that display exceptional ingenuity and the potential to contribute to NIST’s goals. Merit forms the cornerstone of the program, as businesses with the most potential are the ones that succeed.
- Funding Opportunities: The NIST SBIR program provides financial support to small businesses in the form of grants. This funding is specifically intended for businesses involved in R&D work with high potential for commercialization. If you’ve got a groundbreaking idea but lack the resources to bring it to fruition, this program could be the key to unlocking success.
- Focus on Commercialization: The ultimate aim of the NIST SBIR program is to build a launchpad to successful market entry. As such, it prioritizes businesses with lofty plans for commercialization and fosters the translation of innovative ideas into real-world applications and solutions.
- A Catalyst for Innovation: More than just a funding opportunity, the NIST SBIR program sparks innovation. It provides the necessary resources and backing that businesses need to make significant leaps in technological advancement.
What is the Notice of Funding Opportunity (NOFO)?
A pivotal part of your journey through the NIST SBIR program involves the Notice of Funding Opportunity (NOFO). It is through the NOFO that NIST communicates its specific funding interests and priorities to potential applicants. Understanding the NOFO is essential, as it sets the groundwork for your proposal and significantly affects your chances of securing an SBIR award.
The NOFO entails:
- Specification of Project Type: The NOFO is tailored to specify the exact type of project NIST is interested in funding. This could range from broad technological domains to niche research areas.
- Funding Information: The NOFO provides essential details about the funding process, including information on funding amounts, distribution timelines, and cost-sharing requirements.
- Eligibility and Application Details: The NOFO outlines eligibility criteria and application guidelines. It sets forth the information that your proposal should contain, the proposal submission deadline, the evaluation process, and the agency contacts for the program.
- Review Process Overview: To give applicants an idea of what to expect, the NOFO provides an overview of the review process. It often includes details about the scoring system, the review timeline, and the factors considered during evaluation.
The NOFO is more than just an announcement—it’s a vital guide that offers insights into NIST’s current interests and how best to pitch your proposal. Paying meticulous attention to the NOFO can significantly increase your chances of securing an SBIR award.
What federal agency is the NIST a part of?
The NIST is a part of the U.S. Department of Commerce (DOC), a federal agency that plays a fundamental role in shaping America’s economy. The DOC is essentially the government’s gateway to economic growth, and NIST, being under its umbrella, shares this mission in many ways:
- Economic Growth and Innovation: The DOC creates conditions for economic growth and opportunity by working with businesses, universities, communities, and workers to promote job creation, economic growth, sustainable development, and improved living standards.
- Setting Standards: While the DOC’s primary function is to promote economic growth, NIST’s role is more specific. NIST sets the standards for technology, measurement, and innovation in the U.S., fostering industrial competitiveness.
- Fostering Innovation: Both the DOC and NIST have a vested interest in fostering innovation. For the DOC, innovation is the engine that drives economic growth and job creation. For NIST, innovation is the key to maintaining U.S. leadership in science and technology.
The NIST’s SBIR program is a microcosm of the DOC’s larger mission. It’s a tool for promoting economic growth and technological innovation, helping small businesses create new technologies, generate jobs, and contribute to the country’s industrial competitiveness.
What are the objectives of the National Institute of Standards and Technology SBIR program?
The NIST SBIR program is guided by a set of well-defined objectives that echo its broader mission and commitment.
First and foremost, the program aims to stimulate technological innovation, functioning as a financial springboard for small businesses developing novel technologies. The program also addresses the federal government’s research and development (R&D) needs. It aligns the innovative capabilities of small businesses with the government’s technological requirements, making state-of-the-art tech available to federal agencies.
In addition, the NIST SBIR program is deeply committed to promoting diversity within the innovation landscape. It encourages the active participation of socially and economically disadvantaged groups, including women, minority, and veteran-owned businesses. This enriches the pool of ideas and perspectives fueling technological advancement.
And finally, a key goal of the program is to increase private-sector commercialization of innovations derived from federal R&D funding. The program recognizes that innovation should not stop at the laboratory door—it must reach the marketplace to stimulate economic growth, create jobs, and enhance the nation’s competitiveness in the global technology sector.
What are the eligibility requirements?
The NIST’s eligibility requirements extend beyond the size and location of your business to include aspects related to the principal investigator’s employment, the location of the research work, and the structure of your organization. Here’s a detailed breakdown:
- Small Business Concern: To be eligible for both Phase I and Phase II, your organization must qualify as a small business concern (no more than 500 employees) for research or R&D purposes at the time of the award.
- Primary Employment of the Principal Investigator: The principal investigator, the person responsible for the project, should be primarily employed with your small business at the time of the award and during the conduct of the proposed research.
- Work Location: Both Phase I and Phase II research work must be performed in the United States. This includes the 50 states, the territories and possessions of the United States, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the Trust Territory of the Pacific Islands, and the District of Columbia. In rare cases, agencies might permit part of the research or R&D work to be performed outside the U.S., but this requires written approval from the funding agreement officer.
- Eligibility of Joint Ventures and Limited Partnerships: Joint ventures and limited partnerships are eligible as long as the entity created meets the definition of a small business concern.
- Subawards with Universities or Nonprofit Organizations: The small business awardee can enter into subawards with universities or other nonprofit organizations. However, a minimum of two-thirds of the research effort must be performed by the awardee for Phase I, and a minimum of one-half for Phase II.
NIST SBIR Phase I NOFO
With a success rate of around 17 percent, NIST SBIR Phase I serves as the foundational stage where your innovative ideas are explored and developed. The financial support provided during this phase is critical to turning your concept into a viable project.
How much is the SBIR Phase I award?
The funding for SBIR Phase I is substantial, with awards typically reaching up to $100,000. This amount is meant to support initial development and feasibility studies, helping you conduct the necessary research and development to prove your concept.
How long is SBIR Phase I?
SBIR Phase I projects are time-bound to ensure focused and efficient development. The duration for this phase usually lasts about six months, giving your team a dedicated timeframe to develop and validate your innovative idea.
NIST SBIR Phase II NOFO
Upon successful completion of Phase I, businesses can move forward to Phase II. With a success rate around 36 percent, Phase II involves the continuation and expansion of the R&D efforts initiated in Phase I.
How much is the SBIR Phase II award?
The SBIR Phase II awards provide a more significant funding boost, reflecting the more extensive research and development work involved. The awards for this phase can reach up to $400,000, providing the resources to move your project closer to commercialization.
How long is SBIR Phase II?
Phase II projects have a longer duration, usually spanning two years. This extended period allows for comprehensive development and testing, preparing your innovation for the marketplace.
How do I apply for National Institute of Standards and Technology SBIR awards?
The process of applying for an NIST SBIR award requires careful preparation, strategic planning, and attention to detail. Here’s a step-by-step guide to help you navigate this process:
- Identify a Current NIST Notice of Funding Opportunity (NOFO)
The first step in your application involves identifying a current NIST NOFO that aligns with your project. NOFOs provide specific details about the types of projects NIST is interested in funding. - Prepare Your Project Proposal
After identifying a suitable NOFO, the next step is to develop a compelling project proposal. This document should effectively communicate the innovative nature of your project, its alignment with the NIST’s objectives, and its potential for commercialization. - Register Your Business
Before submitting your application, you will need to register your business with several government systems. These include the System for Award Management (SAM), SBA’s Company Registry, and Grants.gov. - Submit Your Application
Applications for the NIST SBIR program are typically submitted through Grants.gov. Be sure to follow all instructions and guidelines detailed in the NOFO to ensure your application is correctly submitted. - Await Evaluation
After submission, your proposal will be reviewed and evaluated based on NIST’s criteria. The evaluation process considers various factors, including the innovation’s technical merit, the team’s expertise, and the potential for commercialization.
What is the evaluation process?
During the evaluation process, your proposal will undergo a meticulous review by experts in your project’s field.
Evaluation Criteria for Phase I and Phase II
Both Phase I and II proposals undergo a competitive and comprehensive evaluation. Here’s what that involves:
- Initial Screening: First, your proposal is screened for responsiveness to the subtopics listed in the solicitation and to ensure it meets all administrative requirements. Proposals failing to meet these initial criteria are returned without a technical review.
- Technical Evaluation: Proposals that pass the initial screening will be evaluated by NIST staff knowledgeable in the project’s technical area. The goal is to identify the most promising technical and scientific approaches. Each proposal is judged solely on its own merit.
*Note: The NIST reserves the right to fund any proposal or any specific number of proposals under a given topic. They may also choose to fund several or none of the proposed approaches to the same topic or subtopic.
Selection Process for Phase I and II
The selection process for both Phase I and II proposals is rigorous and thorough:
- Phase I: All proposals undergo an initial screening to ensure administrative compliance and responsiveness to one or more of the listed subtopics. Proposals are then subjected to an in-depth technical evaluation by three independent NIST staff members knowledgeable in the specific field of the proposed technology. Evaluations are based on pre-determined and announced criteria using a numerical scale.
- Phase II: Only awardees from the prior year’s Phase I are allowed to submit proposals. Phase II proposals undergo a similarly comprehensive evaluation, with an in-depth technical review conducted by three NIST staff members using a numerical scale. This evaluation includes a review of the success of the Phase I effort and the proposer’s commercialization plan.
Who are the NIST Program contacts?
Each federal agency that participates in an SBIR program has its own set of contacts. For the NIST SBIR, your contact is:
Jacqueline Gray
NIST SBIR Program Manager
Email: jacqueline.gray@nist.gov
What are the NIST SBIR topics?
The landscape of innovation never stays still, and neither do the SBIR topics. Reflecting the dynamic nature of technological advancements and the evolving interests of NIST, the agency’s topics are released on an ongoing basis throughout the year.
Finding the latest topics is simple: they’re always accessible on the current NIST NOFO. Here, you’ll discover a broad spectrum of both open and closed opportunities housed within a Microsoft Excel file.
But this is more than just a list. Each entry in the file contains a URL that directs you to a specific Grants.gov page. On these pages, you’ll find an abundance of information about each opportunity—including detailed information about applicant eligibility, application requirements, and step-by-step instructions on how to apply.
Who has won an NIST SBIR Phase II award?
Countless small businesses have leveraged this program to turn their innovative ideas into thriving commercial ventures. From groundbreaking tech startups to trailblazing research companies, the success stories are diverse and inspiring.
Company: Grier Forensics, LLC
Phase II Award Amount: $300,000.00
Grier Forensics, with NIST SBIR program support, developed an innovative technology, Great DANE, to improve email security. This tool uses the Domain Name System (DNS) to verify email correspondents’ authenticity and secure emails from fraud and interception. Unlike earlier email encryption tools that required manual setup, Great DANE automates the process, leading to widespread adoption. The development of Great DANE solidified Grier Forensics’ reputation in network security and privacy, leading to new engagements and consistent revenue. The technology was successfully licensed to a Fortune 500 tech company, boosting the project’s commercial success.
Company: Artium Technologies
Phase II Award Amount: $269,508.00
Artium Technologies has made strides in environmental solutions by developing a tool for detecting soot concentration from combustion sources such as diesel engines and gas turbines. Their “High Sensitivity Laser-Induced Incandescence Instrument” provides a superior alternative to conventional methods, which are often laborious, time-consuming, and less effective. The tool’s development has resulted in the company’s significant growth and has become an industry favorite due to increasingly stringent environmental regulations. After extensive field tests, the technology was commercialized, aligning with the increasing demand for reliable roadside monitoring and emission regulation compliance.
Company: Southwest Sciences
Phase II Award Amount: $300,000.00
Southwest Sciences developed a groundbreaking “Diode Laser Absolute Moisture Sensor” to accurately measure water vapor in semiconductor manufacturing processes. This innovation was crucial as existing instruments struggled to measure water vapor at very low concentrations, impacting semiconductor wafer chemistry. The sensor was created with sophisticated optical measurement techniques and innovative signal-processing methods. This high-precision tool attracted a licensing deal with Delta F Corporation, a leader in the industry, bringing significant profits to Southwest Sciences. The successful commercialization of the “Nanotrace” analyzer, based on this technology, showcases the fruitful partnership between Southwest Sciences and Delta F Corporation.
What are the accounting requirements for NIST SBIR?
The NIST SBIR program requires specific accounting practices from its awardees for the appropriate utilization of funds and compliance with federal regulations. As a recipient, you should be aware of these mandatory requirements to avoid any possible financial complications:
- System of Records: You must maintain a consistent system of records for all incurred costs. This includes direct costs, such as salaries and equipment, as well as indirect costs, like overhead and administrative expenses. These records should be well-documented and retrievable for auditing purposes.
- Indirect Rate Proposals: If you’re charging indirect costs to the award, you need to prepare an indirect rate proposal. This proposal should justify your indirect cost rate and align with the federal guidelines for cost allocation.
- Cost Principles: All costs charged to the NIST SBIR award should adhere to federal cost principles. This means that they should be allowable, allocable, reasonable, and consistently applied across the project.
- Financial Reporting: Regular financial reporting is a requirement of the NIST SBIR program. You need to provide periodic reports about the financial status of your project, detailing how funds are being utilized.
- Auditing: You should be prepared for potential audits to validate your financial records. Federal auditors may want to confirm that funds are being used for their intended purpose and that your financial management practices align with the SBIR guidelines.
Understanding these accounting requirements can be difficult, especially when you’re focusing on your groundbreaking research. Remember, incorrect accounting practices can jeopardize your funding, and perhaps even more importantly, the successful completion of your project.
At Team 80, we specialize in SBIR accounting, providing the necessary support to ensure you stay in line with all the accounting requirements of the NIST SBIR program.
