[Code of Federal Regulations]
[Title 7, Volume 15]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR3403.8]

[Page 346-347]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XXXIV--COOPERATIVE STATE RESEARCH, EDUCATION, AND EXTENSION 
                   SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 3403_SMALL BUSINESS INNOVATION RESEARCH GRANTS PROGRAM--Table of Contents
 
                   Subpart C_Preparation of Proposals
 
Sec. 3403.8  Proposal format for phase II applications.

    (a) The following items relate to Phase II applications. Further 
instructions or descriptions for these items as well as any additional 
items to be included will be identified in the annual program 
solicitation as necessary. See Sec. 3403.9.
    (1) SF-424 R&R cover sheet. Follow instructions found in Sec. 
3403.7(a)(1).
    (2) Project summary. Follow instructions found at Sec. 
3403.7(a)(2).
    (3) Phase I results. The proposal should contain an extensive 
section that lists Phase I objectives and makes detailed presentation of 
the Phase I results. This section should establish the degree to which 
Phase I objectives were met and feasibility of the proposed research 
project was established.
    (4) Proposal. Since Phase II is the principal research and 
development effort, proposals should be more comprehensive than those 
submitted under Phase I. However, the outline and information contained 
in Sec. 3403.7(a)(3)-(9) and Sec. 3403.7(a)(11)-(14) should be 
followed, tailoring the information requested to the Phase II project.
    (5) Cost breakdown on proposal budget. For Phase II, a detailed 
budget is required for each year of requested support. In addition, a 
summary budget is required detailing the requested support for the 
overall project period. A budget narrative, with supporting budget 
detail for each budget category must be included.
    (6) Organizational management information. Each Phase II awardee 
will be asked to submit an updated statement of financial condition 
(such as the latest audit report, financial statements or balance sheet) 
and report any changes in management or principals.
    (7) Commercialization Plan. A succinct commercialization plan must 
be included in each SBIR Phase II proposal moving toward 
commercialization. Elements of a commercialization plan may include the 
following:
    (i) Company information. Focused objectives/core competencies; size; 
specialization area(s); products with significant sales; and history of 
previous Federal and non-Federal funding; regulatory experience; and 
subsequent commercialization.
    (ii) Customer and competition. Clear description of key technology 
objectives, current competition, and advantages compared to competing 
products or services; description of hurdles to acceptance of the 
innovation.
    (iii) Market. Milestone, target dates, analyses of market size, and 
estimated market share after first year sales and after five years; 
explanation of plan to obtain market share.
    (iv) Intellectual property. Patent status, technology lead, trade 
secrets or

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other demonstration of a plan to achieve sufficient protection to 
realize the commercialization state and attain at least a temporary 
competitive advantage.
    (v) Financing. Plans for securing necessary funding in Phase III.
    (vi) Assistance and mentoring. Plans for securing needed technical 
or business assistance through mentoring, partnering, or through 
arrangements with state assistance programs, Small Business Development 
Centers, Federally-funded research laboratories, manufacturing extension 
Partnership Centers, or other assistance providers.
    (8) Data Collection. Each Phase II applicant will be required to 
provide information to the Tech-Net Database System (http://
technet.sba.gov) per OMB No. 3245-03356. The following are examples of 
the data to be entered by applicants into Tech-Net:
    (i) Any business concern or subsidiary established for the 
commercial application of a product or service for which an SBIR award 
is made;
    (ii) Revenue from the sale of new products or services resulting 
from the research conducted under each Phase II award;
    (iii) Additional investment from any source, other than Phase I or 
Phase II awards, to further the research and development conducted under 
each Phase II award; and
    (iv) Updates to information in the Tech-Net database for any prior 
Phase II award received by the small business concern.
    (b) [Reserved]