Small Business Innovation Research (”SBIR”) Program

The Small Business Innovation Development Act of 1982, 15 U.S.C. 638(f) requires agencies with an “extramural” R&D budget of more than $100,000,000 to expend a proscribed percentage (2.7% in FY2013 to 3.2% in FY 2017) with small business utilizing SBIR contracts.

SBIR Program

The SBIR Program has three phases.

In Phase I, the agency solicits proposals to evaluate the technical feasibility of a proposed R&D effort. Phase I contracts may be for up to $150,000.00.

Phase II is for the principal R&D effort. Phase II awards may be for up to $1,000,000.00.

Phase III is for further development of research funded in Phases I and II using non-SBIR funds. There is no dollar limit on Phase III awards. A firm need not be a small business to obtain a Phase III award.

The Government obtains only SBIR data rights in data generated under an SBIR contract. SBIR data rights do not include the right to use in a competitive procurement. The SBIR data rights limitation on government use is for 5 years after acceptance of all items for DoD SBIR contracts and 4 years after acceptance of all items under civilian agency SBIR contracts. The period is extended by a subsequent SBIR award during the protection period.

Jere Glover is uniquely qualified to represent SBIR firms. He has been actively involved with SBIR since its inception in 1982. Jere has been a champion of SBIR Program as Chief Counsel for Advocacy at SBA during the Clinton Administration and in private practice as counsel to the Small Business High Technology Council. He has testified before Congress on SBIR eleven times and worked with SBA on the promulgation of implementing policy directives. See Jere’s January 28, 2016 testimony before the Senate Small Business Committee on “Reauthorization of the SBIR/STTR Programs – The importance of Small Business to Innovation and Economic Security.”

Jere regularly counsels SBIR firms on the program. He has represented SBIR firms accused of violating the Civil False Claims Act, 31 U.S.C. 3729 et. seq. and criminal charges related to their participation in the SBIR program. He has also helped publicly traded companies that have acquired SBIR companies assert SBIR data rights and eligibility for SBIR Phase III awards.

Paul Seidman drafted the Minority Report for the 807 Government Industry Technical Data Committee that promulgated present DFARS rules on SBIR Data Rights.

See P. Seidman, “An Overview of Small and Disadvantaged Business Contracting”, National Contract Management Journal 5 (Summer 1985) at pp. 10 – 12 for a discussion of the SBIR Program as originally enacted.

Reauthorization of the SBIR/STTR Programs – The Importance of Small Business to Innovation and Economic Security.