UCI Participation in SBIR/STTR
About SBIR/STTR

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are designed to encourage domestic small businesses to engage in federally funded R&D with the potential for commercialization. SBIR and STTR awards enable qualified small businesses to explore the commercial viability of their scientific developments by collaborating with nonprofit research institutions to bridge the gap between performance of basic science and commercialization of resulting innovations. Beall Applied Innovation provides additional guidance and resources for small businesses here. Each federal agency participating in the SBIR or STTR program is responsible for administering its own program under established Congressional guidelines. General information about both of these programs and the federal agencies participating in them may be found at http://www.sbir.gov.

UC Irvine collaborates with a number of small businesses on SBIR and STTR awards. Our role as a subcontractor to the small business gives the small business access to the University’s specific areas of expertise, leading edge research, and laboratory facilities. Such a collaboration typically begins with discussion between a faculty member and a startup company and progresses to the joint submission of an SBIR or STTR proposal to an agency of the federal government. To encourage such relationships, the UCI campus has, in recent years, offered a reduced overhead rate for Phase I SBIRs and STTRs, to accommodate the lower award caps imposed by the federal funding agencies. (add link)
A brief comparison of the programs is provided in the table below.
Other helpful guidance for faculty considering an SBIR or STTR subcontract may be found at these links:
• UCI Guide and FAQs: SBIR and STTR Programs
• Guidelines for UCI Employee Participation in the SBIR & STTR Grant Programs
A note to researchers who have a financial interest in a Small Business Concern: Per NSF Solicitation requirements, no person who is an equity holder, employee, or officer of the proposing small business may be paid under a sub-award unless an exception is recommended by the Program Director and approved by the Division Director for the Division of Industrial Innovation and Partnerships.
NameSBIRSTTR
PurposeEstablish the technical/scientific merit and feasibility of research & development activity by eligible U.S. Small Business Concerns (SBC). Stimulate technological innovation, foster technology transfer and increase private sector commercialization of technologies arising from federal funding—bridging the gap between basic science and commercialization of resulting innovations.
Small Business Eligibility
  • Organized for profit, with place of business located in the US;

  • At least 51% owned and controlled by either:
      One or more citizen(s) or permanent resident alien(s) of the US

      Another for-profit business concern that is 51% owned and controlled by 1 or more citizen(s) or permanent resident alien(s) of the US; and

  • No more than 500 employees, including affiliates
  • Organized for profit, with place of business located in the US;

  • At least 51% owned and controlled by 1 or more citizen(s) or permanent resident alien(s) of the US; and

  • No more than 500 employees, including affiliates
Principal InvestigatorPrincipal investigator must have primary employment with the SBC (unless a waiver granted by agency). (Note “primary employment” is defined as Principal investigator does not have to be primarily employed by the SBC
Funding and DurationPhase I
  • Establish technical merit, feasibility and commercial potential)

  • Usually $50,000 to $250,000 for 6 months

Phase II
  • Only Phase I awardees may apply

  • Agency dependent, but generally $500,000 - $1,500,000 for two years; averaged $750,000

  • Funding based on results of Phase I and the scientific and technical merit and commercial potential of proposed Phase II effort.
Phase I
  • Establish technical merit, feasibility and commercial potential)

  • Usually $50,000 to $250,000 for 1 year

    • Phase II
    • Only Phase I awardees may apply

    • Agency dependent, but generally $500,000 - $1,500,000 for two years; averaged $750,000

    • Funding based on results of Phase I and the scientific and technical merit and commercial potential of proposed Phase II effort.
University Role Although SBIR guidelines do not require that the company collaborate with a nonprofit research institution, they are permitted to do so. As the designated NRI, UCI would be a Subcontractor to the SBC. Allowable percent of the overall project:
  • Phase I – University may perform up to 33% of total effort (as determined by total costs budgeted)

  • Phase II - University may perform up to 50% of total effort
STTR guidelines require NRI involvement. As NRI, UCI would be included as a Subcontractor.
  • Phases I and II – SBC must perform at least 40% and the single partnering research institution (UCI) must perform at least 30% of the R&D. The remaining 30% can be allocated between the two parties or with a third collaborator.

Must establish an intellectual property agreement detailing the allocation of intellectual property rights and rights to carry out follow-on research, development or commercialization activities between SBC and University.
UCI Financial Disclosure RequirementsPhase I: Principal Investigator and co-PI complete Statement of Economic Interests for Principal Investigator (Form 700U)
Phase II: Principal Investigator and co-PI complete Form 700U and if prime sponsor has financial disclosure requirements, all Investigators with responsibility for design, conduct, or reporting of research must submit financial disclosures for prime sponsor
  • If prime sponsor is PHS: Annual Disclosure (KC COI)

  • If prime sponsor is NSF: Annual Disclosure and if necessary, NSF Disclosure (KC COI)
Phase I: Principal Investigator and co-PI complete Form 700U
Phase II: Principal Investigator and co-PI (if applicable) complete Form 700U and if prime sponsor has financial disclosure requirements, all Investigators with responsibility for design, conduct, or reporting of research must submit financial disclosures for prime sponsor
  • If prime sponsor is PHS: Annual Disclosure (KC COI)

  • If prime sponsor is NSF: Annual Disclosure and if necessary, NSF Disclosure (KC COI)
SBIR STTR Phase I Rate Reduction Program
Program Guidelines
The following guidelines are applicable to this program:

  • Only subcontract proposals to Small Business Concerns (SBCs) applying for either SBIR or STTR Phase I funding are eligible for this program.
  • Subcontract proposals under this program may budget F&A costs at a rate of 26% MTDC. Budget justification should reference this campus-approved deviation from UCI’s federally negotiated rate agreement for Phase I SBIR and STTR efforts only.
  • When submitting such a proposal in KR, the faculty member should include (as an internal proposal attachment) a rate reduction memo (see below), which BAI Industry Sponsored Research will forward to the UC Research Policy Analysis and Coordination (UCOP RPAC) for approval.
The Principal Investigator, administering unit, the head of the administering unit (e.g., department chair, director) and coordinating unit head (e.g., dean, vice chancellor) are collectively responsible for ensuring compliance with UCI and UC policies in the proposing, administration and conduct of projects under this program. Applicable polices include, but are not limited to:
  • UC Standards of Ethical Conduct
  • Conflict of Interest
  • APM-025: Conflict of Commitment and Outside Activities of Faculty Members
  • Principal Investigator Eligibility
  • Intellectual Property and Patents
  • Guidelines for University-Industry Relations (Regulation No. 4)
  • Submitting Proposals and Receiving Awards through the University
Questions regarding this program should be directed to Dave Gibbons, Director, Industry Sponsored Research at (949) 824-3624 or gibbonsd@uci.edu.