[Federal Register: May 19, 2005 (Volume 70, Number 96)]
[Notices]
[Page 28975-28979]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19my05-119]
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SMALL BUSINESS ADMINISTRATION
RIN: 3245-AF21
Small Business Innovation Research Program Policy Directive
AGENCY: U.S. Small Business Administration.
ACTION: Notice of proposed amendments to Policy Directive.
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SUMMARY: This document proposes amendments to the Small Business
Innovation Research (SBIR) Program Policy Directive. These proposed
amendments reflect the requirements that the Executive Order,
Encouraging Innovation in Manufacturing, imposes on the Small Business
Administration (SBA) and the Federal agencies that participate in the
SBIR program. This document also provides guidelines and directives to
Federal agencies for the general conduct of the program as it relates
to implementing the Executive Order.
DATES: Public comments on the proposed amendments to the SBIR Policy
Directive must be received on or before June 20, 2005.
ADDRESSES: You may submit comments, identified by RIN 3245-AF21, by any
of the following methods. (1) The Federal eRulemaking portal:
http://www.regulations.gov; (2) e-mail at technology@sba.gov (include RIN in
the subject line of the message); (3) mail, addressed to Edsel M.
Brown, Jr., Assistant Administrator for Technology, Office of
Technology, Office of Policy, Planning, and Liaison; Office of
Government Contracting and Business Development, U.S. Small Business
Administration, 409 3rd Street, SW., Washington, DC 20416.
FOR FURTHER INFORMATION CONTACT: Edsel M. Brown, Jr., Office of
Technology, Office of Policy, Planning, and Liaison, Office of
Government Contracting and Business Development, at (202) 205-6450 or
at technology@sba.gov.
SUPPLEMENTARY INFORMATION: In 1982, Congress enacted the Small Business
Innovation Development Act of 1982 (SBIDA), Public Law 97-219 (codified
at 15 U.S.C. 638), which established the SBIR Program. The statutory
purpose of the Small Business Innovation Research (SBIR) Program is to
strengthen the role of innovative small business concerns (SBCs) in
Federally-funded research and research and development (R/R&D).
The SBIR Program is a phased process, uniform throughout the
Federal Government, of soliciting proposals and awarding funding
agreements for R/R&D to meet stated agency needs or missions. To
stimulate and foster scientific and technological innovation, including
increasing commercialization of Federal R/R&D, the program must follow
a uniform competitive process of three phases: Phase I, Phase II, and
Phase III.
SBIDA requires the SBA to ``issue Policy Directives for the general
conduct of the SBIR programs within the Federal Government.'' 15 U.S.C.
638(j)(1). SBA proposes to amend the most recent SBIR Policy Directive
which was published on September 24, 2002, at 67 FR 60072-60098.
On February 24, 2004, the President signed Executive Order 13329,
``Encouraging Innovation in Manufacturing.'' The purpose of the
Executive Order is to ensure that Federal Government agencies and
departments properly and effectively assist the private sector in its
manufacturing innovation efforts through the use of the SBIR and the
Small Business Transfer Technology (STTR) Programs. Pursuant to the
Executive Order, the SBA is required to:
(1) Establish, after consultation with the Director of the Office
of Science and Technology Policy (OSTP), formats and schedules for
submission of reports by the heads of departments and agencies; and (2)
issue to departments and agencies guidelines and directives (in
addition to the formats and schedules) as the SBA Administrator
determines from time to time are necessary to implement the Executive
Order, after such guidelines and directives are submitted to the
President, through the Director of OSTP, and are approved by the
President.
In addition, the Executive Order requires the heads of the agencies
and departments with one or more SBIR or STTR programs to perform the
following: (1) To the extent permitted by law and in a manner
consistent with the mission of that department or agency, give high
priority within such programs to manufacturing-related research and
development to advance innovation in manufacturing through small
business; and (2) to submit reports annually to the Administrator of
the SBA and the Director of the OSTP concerning the efforts of such
departments or agencies in implementing the Executive Order. SBA
proposes to amend the SBIR Policy Directive in order to fulfill its
responsibilities under Executive Order 13329 and to provide the
guidelines and requirements that the participating agencies and
departments need to implement the provisions of the Executive Order as
set forth above.
Section-by-Section Analysis
Section 2 of the SBIR Policy Directive contains a summary of the
legislative provisions applicable to the SBIR Program. SBA is proposing
to amend this section to include an overview of the requirements
imposed by Executive Order 13329 and to amend the section heading to
more accurately reflect the scope of the section.
Section 3 of the SBIR Policy Directive sets forth definitions
pertinent to the SBIR program. SBA proposes to add a definition for
``Manufacturing-related'' research and development. The definition was
initially developed by the OSTP, the National Institute of Standards
and Technology, and the National Science Foundation and was reviewed by
the National Science and Technology Council. The definition encompasses
research and development that improves existing methods or processes,
including machine technologies, systems technologies, and environmental
or societal technologies. In addition, to facilitate the proper
placement of this new definition, it will be necessary to redesignate
several paragraphs in section 3.
Section 4 of the Policy Directive includes a description of the
structure and purpose of Phases I, II, and III of the SBIR Program and
the standards for evaluating grant proposals. In section 4(a)(2) of the
Policy Directive, SBA is proposing to add that agencies may, to the
extent permitted by law, give additional consideration to
manufacturing-related proposals.
[[Page 28976]]
Section 9 of the Policy Directive sets forth the responsibilities
of the participating agencies and departments under the SBIR Program.
In the amendments to the Policy Directive, SBA is proposing to add
those responsibilities imposed by Executive Order 13329. Specifically,
as amended, the SBIR Policy Directive will require agencies and
departments to develop an Action Plan for the implementation of
Executive Order 13329, identifying procedures used for giving priority
to manufacturing-related R&D and provide information regarding
Executive Order 13329 on their SBIR Web site. In addition, the SBA
proposes deleting a dated reference to the National Critical
Technologies panel.
Section 10 of the Policy Directive discusses the content,
structure, and submission requirements for the report that each
participating agency and department must submit to the SBA by March 15
of each year. SBA proposes to amend section 10(a) to make electronic
reporting of agencies' annual report mandatory and amend section 10(b)
to add the requirement for each agency and department to also report on
its activities related to the implementation of Executive Order 13329.
In addition, the SBA proposes deleting a dated reference to the
National Critical Technology topic number.
Section 11 of the Policy Directive sets forth SBA's
responsibilities with respect to the SBIR program. SBA proposes to
amend this section to delete a dated reference to the National Critical
Technology panel.
Finally, in order to clarify the reporting requirements, SBA
proposes to reformat Appendix II, changing the description in some
fields, and adding fields that were not previously listed. SBA proposes
consolidating the file format to a single file and numbering all fifty-
eight (58) fields required for reporting. SBA has identified those
fields which are mandatory for all records, mandatory for STTR
projects, and mandatory for Phase II projects. SBA also proposes
renaming the field formerly named ``Minority'' as ``Socially and
Economically Disadvantaged Small Business.'' As described in the most
recent publication of the SBIR policy directive, the STTR
reauthorization legislation, Public Law 107-50, requires collection of
information on awardees' HUBZone certification. However, the
requirement was omitted from the Appendix as a reporting field. To
rectify this, SBA proposes adding ``HUBZone Certified'' as field 12.
Paperwork Reduction Act
SBA has determined that the proposed amendments to the SBIR Policy
Directive, as a result of Executive Order 13329, do not impose
additional reporting or recordkeeping requirements under the Paperwork
Reduction Act, 44 U.S.C. Chapter 35.
Notice of Proposed Policy Directive; Small Business Innovation Research
Program
To: The Directors, Small Business Innovation Research Program
Subject: Executive Order 13329, ``Encouraging Innovation in
Manufacturing,'' Revisions to the Small Business Innovation Research
Program Policy Directive.
1. Purpose. Section 9(j)(3) of the Small Business Act (15 U.S.C.
638(j)(3)) requires the U.S. Small Business Administration (SBA)
Administrator to modify the Small Business Innovation Research (SBIR)
Program Policy Directive as required for the general conduct of the
SBIR Program within the Federal Government.
2. Authority. This proposed Policy Directive is issued under the
authority of 15 U.S.C. 638(j).
3. Procurement Regulations. The Federal Acquisition Regulations may
need to be modified to conform to the requirements of the
Reauthorization and a final Policy Directive. Regulatory provisions
that pertain to the areas of SBA responsibility will require approval
of the SBA Administrator or designee. The Office of Technology, Office
of Policy, Planning, and Liaison, Office Government Contracting/
Business Development, SBA, is the appropriate office for coordinating
such regulatory provisions.
4. Personnel Concerned. All Federal Government personnel who are
involved in the administration of the program, including those involved
with the issuance and management of funding agreements of the SBIR
Program and the establishment of goals for small business concerns
(SBCs) in research or research and development procurements or grants.
5. Distribution. Federal Government agencies and departments
participating in the SBIR Program and those required to establish small
business research development goals as directed by section 9 of the
Small Business Act (15 U.S.C. 638(j)).
6. Originator. Office of Technology, Office of Policy, Planning,
and Liaison, Office of Government Contracting and Business Development,
SBA.
7. Dates. The SBIR Program is authorized through September 30,
2008. A final Policy Directive will be effective when issued as final
in the Federal Register.
Authorized By: Allegra McCullough
Associate Deputy Administrator, Government Contracting/Business
Development, U.S. Small Business Administration
For the reasons set forth in the preamble, SBA proposes to amend
the SBIR Policy Directive as follows:
1. Revise the heading of Sec. 2 to read as follows:
Relevant Legal Provisions
2. Amend Sec. 2 by adding a new paragraph (g) to read as follows:
(g) Under Executive Order 13329, ``Encouraging Innovation in
Manufacturing,'' Federal agencies have an important role in helping to
advance innovation, including innovation in manufacturing, through
small businesses. Agencies must give high priority to SBIR projects
that are focused on manufacturing related R&D, in a manner consistent
with the missions of the agencies and the purpose of the SBIR program.
Participating agencies must report annually to the SBA Administrator
and the Director of the Office of Science and Technology Policy on its
efforts to carry out Executive Order 13329. The Executive Order directs
the SBA to establish formats and schedules for this reporting and to
issue guidelines and directives as necessary to implement the Executive
Order.
3. Amend section 3 by redesignating paragraphs (s) through (gg) as
(t) through (hh) and adding new paragraph (s) to read as follows:
(s) Manufacturing-related. Activities that relate to manufacturing
processes, equipment and systems, or manufacturing workforce skills and
protection including, unit process level technologies; machine level
technologies; systems level technologies; and environmental or societal
level technologies.
4. Amend section 4(a)(2) by adding the following after the second
sentence:
The proposal evaluation process shall also, to the extent permitted
by law and in a manner consistent with the mission of the agency and
the purpose of the SBIR program, give consideration to manufacturing-
related research.
5. Amend section 9(a)(2) by deleting ``(i) the National Critical
Technologies panel (or its successor) in reports required under 42
U.S.C. 6683, or (ii).''
6. Amend section 9 to add paragraphs (g) and (h) to read as
follows:
(g) To the extent permitted by the law, and in a manner consistent
with the mission of that agency and the purpose of the SBIR program,
each participating
[[Page 28977]]
agency must give priority in the SBIR program to manufacturing-related
research and development, including the following:
(1) Unit process level technologies that create or improve
manufacturing processes, including:
(i) Fundamental improvements in existing manufacturing processes
that deliver substantial productivity, quality, or environmental
benefits; or
(ii) Development of new manufacturing processes, including new
materials, coatings, methods, and associated practices.
(2) Machine level technologies that create or improve manufacturing
equipment, including:
(i) Improvements in capital equipment that create increased
capability (such as accuracy or repeatability), increased capacity
(through productivity improvements or cost reduction), or increased
environmental efficiency (safety, energy efficiency, environmental
impact); or
(ii) New apparatus and equipment for manufacturing, including
additive and subtractive manufacturing, deformation and molding,
assembly and test, semiconductor fabrication, biologics, biomaterials,
vaccines or drug production, and nanotechnology.
(3) Systems level technologies for innovation in the manufacturing
enterprise, including:
(i) Advances in controls, sensors, networks, and other information
technologies which improve the quality and productivity of
manufacturing cells, lines, systems, and facilities;
(ii) Innovation in extended enterprise functions critical to
manufacturing, such as quality systems, resource management, supply
change integration, and distribution, scheduling and tracking; or
(iii) Technologies that enable integrated and collaborative product
and process development, including computer-aided and expert systems
for design, tolerancing, process and materials selection, life-cycle
cost estimation, rapid prototyping, and tooling.
(4) Environmental or societal level technologies that improve
workforce abilities, productivity, and manufacturing competitiveness,
including:
(i) Technologies for improved workforce health and safety, such as
human factors and ergonomics; or
(ii) Technologies that aid and improve workforce manufacturing
skill and technical excellence, such as educational systems
incorporating improved manufacturing knowledge and instructional
methods.
(h) Agencies must develop an Action Plan for implementing Executive
Order 13329, which identifies activities used to give priority in the
SBIR program to manufacturing-related research and development. These
activities should include adding information on the Executive Order to
the agency's SBIR program website.
7. Amend Sec. 10(a) to read as follows:
(a) Annual Report Due Date and Format. Reporting must be on an
annual basis and will be for the period ending September 30 of each
fiscal year. The report must be submitted to SBA by March 15 of each
year. For example, the report for FY 2005 (October 1, 2001-September
30, 2004) must be submitted to SBA by March 15, 2006. SBA encourages
agencies to submit their annual report before the March 15 due date.
The report must be submitted electronically to technology@sba.gov, and
a single hard copy should be sent to the address noted in Section 5(b).
The award information contained in the annual report must be validated
and complete upon submission to SBA on March 15.
8. Amend Sec. 10(b) by deleting paragraph 12 and redesignating
paragraphs 13 and 14 as 12 and 13 and adding paragraph 14 to read as
follows:
(14) Report on the specific activities undertaken to implement
Executive Order 13329, including, for example, solicitation notices and
new topics; additional proposal evaluation criteria or procedures;
internet-based activities to promulgate the Executive Order, and any
other activities in support of the Executive Order. The Report shall
include a description of all significant alternatives considered to
implement the Executive Order, detailing the factual, policy, and legal
reasons for selecting the alternative(s) adopted and the factual,
policy, and legal reasons for rejecting the other significant
alternatives considered.
9. Amend Sec. 11(a) by deleting ``the National Critical
Technologies panel (or its successor) and''.
10. Amend Appendix II to read as follows:
Tech-Net Data Fields For All Agency SBIR/STTR Annual Data Submissions to the SBA
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Field name Required code Type Width Description
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1. Program Identification.......... MA.................. Numeric............ 1 SBIR/STTR Award
Program Identifier
(0=STTR; 1=SBIR).
2. Company......................... MA.................. Char............... 80 Company Name.
3. Company Division................ .................... Char............... 80 Company Division.
4. Street1......................... MA.................. Char............... 80 Street Address 1.
5. Street2......................... .................... Char............... 80 Street Address 2.
6. City............................ MA.................. Char............... 40 City.
7. State........................... MA.................. Char............... 2 State.
8. Zip............................. MA.................. Numeric............ 5 Zip.
9. Zip4............................ MA.................. Numeric............ 4 Zip + 4.
10. Socially and Economically MA.................. Numeric............ 1 Socially and
Disadvantaged Small Business. Economically
Disadvantaged Small
Business indicator
(Allowable values: 0
= yes; 1 = no).
11. Women.......................... MA.................. Numeric............ 1 Women-owned company
indicator (Allowable
values: 0 = yes; 1 =
no).
12. HUBZone Certified.............. MA.................. Numeric............ 1 HUBZone Certified
Small Business
Concern (Allowable
values: 0 = yes; 1 =
no).
13. Contact First.................. MA.................. Char............... 40 Company Official
contact first name.
14. Contact Last................... MA.................. Char............... 40 Contact last name.
15. Contact Middle Initial......... .................... Char............... 1 Contact middle
initial (One
character only--no
periods or full
names).
16. Contact Title.................. .................... Char............... 40 Contact Official
title.
17. Contact Phone.................. MA.................. Char............... 10 Contact Official
phone (Ten
characters only, for
example 9999999999).
[[Page 28978]]
18. Contact Email Address.......... MA.................. Char............... 50 Contact email
address.
19. Employees...................... MA.................. Numeric............ 5 Number of employees.
20. Agency......................... MA.................. Numeric............ 2 Awarding agency (see
below).
21. Branch......................... MA.................. Number............. 1 Awarding DOD branch
name (see below).
22. Phase 1 Award Year............. MA.................. Numeric............ 4 Phase 1 Year.
23. Phase 1 Projected Total Amount. MA.................. Numeric............ 10 Phase 1 Projected
Total Amount.
24. Phase 2 Award Year............. M2.................. Numeric............ 4 Phase 2 Year (Phase 2
records only).
25. Phase 2 Projected Total Amount. M2.................. Numeric............ 10 Phase 2 Projected
Total Amount (Phase
2 records only).
26. PI First....................... MA.................. Char............... 40 Principal
Investigator First
Name.
27. PI Last........................ MA.................. Char............... 40 Principal
Investigator Last
Name.
28. PI Middle Initial.............. .................... Char............... 1 Principal
Investigator middle
initial (one
character only--no
periods or full
names).
29. PI Title....................... .................... Char............... 40 Principal
Investigator Title.
30. PI Phone....................... .................... Char............... 10 Principal
Investigator phone
(Ten characters
only; for example
9999999999).
31. PI Email Address............... .................... Char............... 50 Principal
Investigator email
address.
32. Topic Code..................... MA.................. Char............... 15 Agency Solicitation
Topic Number.
33. RI TYPE........................ MT.................. Numeric............ 1 Type of research
institution (see
below).
34. RI Name........................ MT.................. Char............... 80 Research institution
(STTR only).
35. RI Street 1.................... MT.................. Char............... 80 Research institution
address (STTR only).
36. RI Street 2.................... .................... Char............... 80 Research institution
address (STTR only).
37. RI City........................ MT.................. Char............... 40 Research institution
city (STTR only).
38. RI State....................... MT.................. Char............... 2 Research institution
State (STTR only).
39. RI Zip......................... MT.................. Numeric............ 5 Research institution
Zip (STTR only).
40. RI Zip4........................ .................... Numeric............ 4 Research institution
Zip + 4.
41. RI Official First.............. .................... Char............... 40 Research institution
Official First Name.
42. RI Official Last............... .................... Char............... 40 Research institution
Official Last Name.
43. RI Official Initial............ .................... Char............... 1 Research institution
Official Middle
Initial (One
character only no
periods or full
names).
44. RI Official Phone.............. .................... Char............... 10 Research institution
Official's phone
(Ten
characters only; for
example,
9999999999).
45. Tracking Number................ MA.................. Char............... 20 Agency key identifier
(Internal number
scheme).
46. TIN/EIN........................ MA.................. Char............... 10 Taxpayer/Employer
Identification
number Prefix with 1
for EIN; 2 for
Social Security
Number. This field
must be exactly 10
digits in size and
must be a valid EIN
or TIN.
47. Contract/Grant Num............. MA.................. Char............... 20 Agency Award.
48. Solicitation Number............ MA.................. Char............... 20 Solicitation Number.
49. Solicitation Year.............. MA.................. Numeric............ 4 Year of the
Solicitation.
50. Title.......................... MA.................. Char............... 800 Title of research
project.
51. Abstract....................... MA.................. Char............... 1500 Technical Abstract.
52. Results........................ .................... Char............... 1000 Project anticipated
results.
53. Comments....................... .................... Char............... 1000 Project comments.
54. Project Initiator.............. MT.................. Char............... 1 Initiator of STTR
collaborative effort
(Allowable values: S
= Small Business
Concern; R =
Research
Institution) (STTR
only).
55. Technology Used................ MT.................. Char............... 1 SBC or RI originate
any technology used
in the STTR project
(Allowable values: S
= Small Business
Concern; R =
Research
Institution) (STTR
only).
56. Time to establish license MT.................. Numeric............ 2 Time duration to
agreement (months). establish any STTR
license agreement
(STTR only).
57. STTR Proceeds Distribution to MT.................. Numeric............ 2 Allocation of
SBC (%). proceeds from sale
of STTR technology
(STTR only).
58. STTR Proceeds Distribution to MT.................. Numeric............ 2 Allocation of
RI (%). proceeds from sale
of STTR technology
(STTR only).
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Note: Required codes: Required fields are noted by:
MA Mandatory for ALL project
M2 Mandatory for Phase 2 projects
MT Mandatory for STTR projects
Optional field
Each agency must submit a file that contains all 58 fields for
each record. Each agency must ensure that data submitted to the SBA
includes all of the data fields above, even if the field is empty.
For example, since DOD is the only agency using field 21
(Branch), other agencies must include a blank field 21 in their data
submissions.
(Field 1) Program Identification Code
0 STTR
1 SBIR
(Field 20) Agency Code
1 DOD
2 DOE
3 NASA
4 HHS
5 NSF
6 DOT
7 EPA
8 (No longer used)
9 ED
10 USDA
11 DOC
12 (No longer used)
13 (No longer used)
14 DHS
[[Page 28979]]
15 HUD
(Field 21) Branch Code
1 AF
2 ARMY
3 MDA
4 DARP
5 DTRA
6 NAVY
7 OSD
8 SOCO
9 NGA
10 CBD
If any new codes should be added, please notify SBA's Office of
Technology.
(Field 33) Research Institution Type
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Code Research institution types
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1......................................... Nonprofit college or
university.
2......................................... Domestic nonprofit research
organization.
3......................................... Federally Funded R&D Center
(FFRDC).
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The SBA will accept data in only the following formats:
Tab delimited text files
Microsoft Excel files
Microsoft Access files
If you have any questions regarding Tech-Net Data submissions,
please contact SBA's Office of Technology at (202) 205-6450 or
Technology@sba.gov.
Michael McHale,
Acting Associate Deputy Administrator, Government Contracting/Business
Development, U.S. Small Business Administration.
[FR Doc. 05-9973 Filed 5-18-05; 8:45 am]
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