Small Business Technology Transfer Program

Small Business Technology Transfer Program

Small business has long been where innovation and innovators thrive, but the risk and expense of conducting serious R&D efforts can be beyond the means of many small businesses. Conversely, nonprofit research laboratories are instrumental in developing high-tech innovations, but frequently, their innovation is confined to the theoretical rather than the practical. STTR combines the strengths of both entities by introducing entrepreneurial skills to high-tech research efforts.

Each year, five federal departments and agencies are required under the STTR program to reserve a portion of their R&D funds for award to small business/nonprofit research institution partnerships: the Departments of Defense, Energy, and Health and Human Services; the National Aeronautics and Space Administration; and the National Science Foundation.

Participation in the Program

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  American owned and independently operated,
  
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  For-profit, and
  
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  Limited in size to no more than 500 employees. (However, there is no size limit for a nonprofit research institution).
  

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  Be located in the United States, and
  
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  Meet one of three definitions: (1) nonprofit college or university, (2) domestic nonprofit research organization, or (3) federally funded R&D center (FFRDC).
  

Following the submission of proposals, agencies make STTR awards based on small business/nonprofit research institution qualification, degree of innovation, and future market potential. Small businesses that receive awards or grants then begin a three-phase program.

Phase I is the startup phase. Awards of up to $100,000, for approximately one year, fund the exploration of the scientific, technical, and commercial feasibility of an idea or technology. Phase II awards of up to $500,000, for as long as two years, expand Phase I results. During this period, the R&D work is performed and the developer begins to consider commercial potential. Only Phase I award winners are considered for Phase II. Phase III is the period during which Phase II innovation moves from the laboratory into the marketplace. No STTR funds support this phase. The small business must find private-sector or non-STTR federal agency funding. For more information on the STTR Program, visit http://www.sba.gov/sbir/indexsbir-sttr.html#sttr.

Warfighting Rapid Acquisition Program

The Army has used WRAP for several programs: the STRIKER, its new artillery observation vehicle; the Lightweight Laser Designator Rangefinder, used to determine the range of a target and relay that information back to tanks, artillery, or aircraft; and the Radio Frequency Tags, a computer tracking system used to pinpoint equipment location quickly and easily.

Participation in the Program

Chapter 4
Challenges and Considerations

The purpose of this chapter is to identify issues and offer considerations for resolutions that enhance the ability of PMs to access and integrate technology throughout a system’s life cycle. The sections below present a series of challenges associated with identifying and applying new technologies. The challenges address systematic problems regarding technology insertion that pervade the acquisition and sustainment process. These challenges are as follows:

1. 
   Technology Insertion: How to quickly deploy a useful military capability to the field and upgrade that capability in later stages of a system’s life cycle.
   
2. 
   Cultural Barriers: How to overcome the disincentives, communication shortfalls, and suboptimization that occurs among the various communities that play a role in the technology transition process.
   
3. 
   Knowledge Management: How to identify useful information and activity that occurs across the various communities and share that information to accomplish technology transition.