SBIR From a Former Project Manager’s Viewpoint

As many past SBIR award winners will testify, Project Managers at the various funding agencies can be excellent contacts for those wanting answers to SBIR questions. Ms. Jean Bonney recently retired from her position as Project Manager of the Information Technology topic at the National Science Foundation, and her work there provided her with some interesting observations regarding SBIR proposals as a whole.

She says one of the most frequent mistakes made by applicants is neglecting to take a step back from their work to honestly analyze whether or not there is a need for such technology. Oftentimes this is difficult for technology-driven people. "They may have a good idea, but are sometimes not focused enough on what exactly they are trying to accomplish. Feasibility issues also need to be considered," says Bonney.

Another error made is what Ms. Bonney refers to as the "Trust Us" approach. She says too often she and her colleagues saw proposals where companies failed to disclose enough about their technology. While acknowledging that this is understandable insofar as people and companies are protective of their intellectual property, Bonney points out that withholding too much information and basically saying "Trust us, we have the technology" is not going to get you far with the NSF, or any agency. While there may be a very small risk of proprietary information being compromised, Ms. Bonney reminds applicants that anyone who will receive access to SBIR proposals at any of the agencies are bound by non-disclosure and conflict-of-interest agreements, and project managers and reviewers take those agreements very seriously. Failure to comply is punishable.

Applicants should also remember that it is important to have the appropriate expertise to carry out the work proposed in a proposal. This means if you yourself don’t have all the necessary expertise in your company, you need to get someone who does to agree to participate in your project. "This person [or people] should be more than simply a consultant who’s going to spend one day on the project, but someone who is really going to be actively involved," says Bonney.

In addition, she stresses the importance of following the requested proposal guidelines, as you will be judged on how well you comply. Because the NSF realizes a good number of its proposal applications are submitted by people for whom English is a second language, they are willing to overlook minor grammatical flaws. They do not, however, overlook a lack of information. "Be sure to provide the information asked for."

As for elements that stand out in quality proposals, Ms. Bonney emphasizes the significance of the abstract. "The abstract is a real catcher. It’s most often the first thing a program manager will see, and it is the basis for ensuring that it gets to a review panel with the requisite expertise. It needs to be concise and well articulated to be sure it’s placed in the right group and the right people are seeing it. It’s also the first thing the reviewer reads, so you’ll want to make sure you are catching them with your idea."

Project description, research plans and project plans need to be as clear and concise as they can be, and in order for this to happen, quite a bit of thought needs to go into them. That is why Ms. Bonney recommends that proposal preparation on an application to be submitted for the June deadline start the previous December or January.

When it comes to commercialization, Bonney describes it simply and in a way that SBIR applicants know all too well: "It’s really hard." Some of the contributing factors she cites include a lack of marketing knowledge, ambiguity in demand forecasts, unfamiliarity with one’s competition, and an uncertainty of exactly how to make money. Nevertheless, commercialization is something that must be addressed sufficiently in both Phase I and II proposals.

She says in Phase I, reviewers are looking for a "commercialization story" which provides an indication that commercialization is indeed part of the plan, and issues pertaining to it are being considered. In Phase II proposals, the commercialization plan becomes even more important.

According to Ms. Bonney, roughly 15-20% of Phase I proposals are successful; the odds improve for Phase II, with approximately 50% of proposals proving successful. She states that in Phase II proposals, if it looks to NSF reviewers like a company is on the right track but a few points are unclear, the reviewers may recommend changes be made, and the applicant may have an opportunity to make revisions to their proposal. While this is not a frequent occurrence, if a company is fortunate enough to receive such a phone call, this can be viewed as a very promising sign. As Ms. Bonney puts it, "The NSF does not make a practice of getting a company’s hopes up." She also points out there is no such recourse for Phase I proposals.

As far as recent trends in NSF’s SBIR program, Bonney says categories of "Wireless" and "Security Systems" have been added to the Information Technology topic, which means they are seeing more proposals closely related to issues of homeland security. Yet the most noticeable trend she has seen is a significant increase in the number of proposals being submitted over the past few years. Ms. Bonney reports that three years ago the Information Technology topic received 250-300 proposals; last year the number was approximately 500.

The NSF has seen a continual rise in its budget for basic research in science, technology, and engineering, thanks in part to what Bonney says congressional consensus that research in these areas is crucial to the US. Because of these budget increases over the last few years, the NSF SBIR program has been able to continue the same percentage of awards as the number of proposals has increased. However, the number of Project Managers has not kept pace. This means that current Project Managers are dealing with a sharp increase in activity, now receiving as many proposals for two topics as they previously saw for four.

This is something applicants should keep in mind when contacting Project Managers with questions. Ms. Bonney says she considered taking those phone calls and answering questions a very important part of her job, and encourages applicants to make the calls. "It’s a chance for the Project Manager to get to know you a little bit, and they may possibly remember your project when it comes through." Yet, she goes on to emphasize that there is a fine line between calling with legitimate questions and getting good information, and being a pest. "Calling a couple of times is fine, but if you’re calling every few days, you’ll want to remember that the Project Managers can’t write the proposal for you. If you have an idea that has a strong technical foundation and commercial potential, that’s what the NSF is looking for."

"An undefined problem has an infinite number of solutions."

Robert A. Humphrey


Did you know. . .

Many of the SBIR federal agency websites contain abstracts of prior winning projects. This is a goldmine of information to companies considering an SBIR or STTR project. First, it’s a great way to gain insight into the types of projects an agency has funded in the past, and can shed light on the leading technologies within a particular solicitation topic. Agency policies differ in the amount of information they share, but often you will have access to an abstract of the project that summarizes its important elements. It’s worth spending some time browsing through a number of projects looking for things such as:

• the type and amount of work the project team has committed to;
  
• how they support the innovation of their technology; and
  
• hints into commercialization plans and strategies;
  

Even the writing style of the shared sections can offer helpful examples.

Often contact information is provided for the Principal Investigator or Project Leader; you might consider contacting one or more individuals to inquire about their experience with the program. Many people are happy to share their insights with other companies just getting started in the process. In this case you might consider winners from a few years ago, knowing that sufficient time has elapsed that they can address the total project experience, including possible follow-on funding and commercialization bumps and bruises.

Remember, if your project is selected for an award, your information will become a matter of public record as well. Each solicitation will specify sections of your proposal that will be published, and will generally caution you not to include any information you consider proprietary. Once you’re a winner, it’s possible your project will serve as a good example to someone else who’s just beginning the process.

"I didn’t know what I didn’t know until I started doing it."

Author unknown

Unusual Resource Center for Small Technology-Based Companies

There are 185 full time SBDC business consultants and administrative staff located throughout the Commonwealth. These consultants, paid by the Federal Government and the Commonwealth, are for the specific purpose of providing business assistance and consulting.

There is however, only one such office in the nation housed in an engineering school.

The pairing of the SBDC office and Bucknell University, a school well-recognized for its engineering college, provides an unusual opportunity for technology-driven businesses. This combination of business management and engineering services provides companies and individuals with resources, expertise, and engineering know-how not readily available elsewhere. For example, the Product Development Center includes a fully equipped machine shop, computer-aided drafting and machine equipment as well as state-of-the-art laboratories.

Mr. Mike Dorkoski and his staff are developing a 5 level stage and gating process where Preliminary Concepts, Business Case Investigation, Development, Testing & Validation and Full Production can be measured against 5 criteria: Value Proposition, Management Analysis, Market Analysis, Financial Analysis and Product Analysis. The objective of this effort is to develop meaningful customized assistance tailored to meet each client’s specific needs.

This service can provide the right assistance at the right time and is available to small businesses throughout the Commonwealth... often at no charge.

For more information visit their website, www.departments.bucknell.edu/sbdc/pdc.html, or contact Mike Dorkoski, Assistant Director for Technical Consulting, at 570-577-3791.