SBIR/STTR

Phase I activities normally fund up to $150,000 for a 6-month period.  An academic partner is not required; however, are eligible to participate as a partner if invited by the small business. The maximum amount available to the Academic partner is 33% for Phase I activities. Phase II activities normally fund up to $1,000,000 for 2 years. The academic partner is eligible for 50% of the proposed funded amount. The Small Business must meet the following criteria:

• The small business must be American-owned and independently operated
• For Profit
• Principal researcher must be employed by the business
• Company size limited to 500 employees

Proposals from the university for participation in an SBIR project are submitted by OPAS and handled in the same manner as any subaward proposal. The UMass PI should not be listed as the PI of the overall project. The components of the proposal include the following:

1. Kuali Questionnaire
2. UMass succinct scope of work
3. UMass budget — Note: Because the amount available to the university as a partner in an SBIR’s is very limited, the university is willing to reduce the overhead rate to 26% for the Phase I activities, with the understanding that if a Phase II proposal is submitted, the full federal rate will be applied.
4. UMass faculty and staff and student salary for participation on the SBIR project must be paid through the UMass subaward and not paid directly by the company.
5. Biosketch
6. All other components as required in the sponsor RFP
7. OPAS will provide the Small Business with an agreement at proposal stage that the company may choose to use in the funding of a subaward for the university’s participation.  All negotiations are conducted by OPAM staff with the small business.

*Note: If the principal investigator or a direct family member has a financial interest in the company, including consulting contracts, a conflict of interest disclosure must be filed in the Kuali COI module and identified in the Kuali proposal development record. It should be noted that if the PI is the principal of the Small Business, there is a requirement that the PI of the small business be full time at the company for a minimum of 51% time. Therefore, in addition to the Conflict of Interest resolution, the PI must also have an approved leave of absence from the university for this time period and a replacement PI for the proposed subaward.

Since many of the industry partners in the SBIR do not have broad contracting experience, we have found that many partners look to the university for guidance in this area. The SBIR Funding Agreement has been developed to meet this need.

Phase I activities normally fund up to $150,000 for a 12-month period. A non-profit academic partner is required. The maximum amount available to the Academic partner is 60% for Phase I activities. Phase II activities normally fund up to $1,000,000 for 2 years. The academic partner is eligible for 60% of the proposed funded amount. The Small Business must meet the following criteria:

• The small business must be American-owned and independently operated
• For Profit
• Principal researcher does not have to be employed by the small business
• Company size limited to 500 employees

Proposals from the university for participation in an STTR project are submitted by OPAS and handled in the same manner as any subaward proposal. The UMass PI may be listed as the PI of the overall project however, not as an employee of the company. The components of the proposal include the following:

• Kuali Questionnaire
• UMass succinct scope of work
• UMass budget — Note: Because the amount available to the university as a partner in an STTR is very limited, the university is willing to reduce the overhead rate to 26% for the Phase I activities, with the understanding that if a Phase II proposal is submitted, the full federal rate will be applied.
• UMass faculty and staff and student salary for participation on the STTR project must be paid through the UMass subaward and not paid directly by the company.
• Biosketch
• All other components as required in the sponsor RFP

*Note: If the principal investigator or a direct family member has a financial interest in the company, including consulting contracts, a conflict of interest disclosure must be filed with the Department Head as well as the Vice Chancellor for Research and also identified on the Kuali Record.

Part of the requirements of an STTR project is an agreement on intellectual property rights. This understanding is captured in an Allocation of Rights Agreement (ARA) prior to the issuance of an award from the federal agency to the small business. The company or the PI will contact OPAS once this document is requested by the federal agency. OPAS will engage the UMass Innovation Institute (UMII) who will complete and return the university’s standard boilerplate ARA agreement to the small business. All negotiations are conducted by UMII staff in consultation with Legal Counsel as needed. Along with the transmission of the ARA, OPAS will also provide the company with a boilerplate funding agreement designed specifically for the STTR project which the company may use for awarding the subrecipient award to the university. All negotiations of this agreement will be conducted by OPAS staff. The IP terms agreed to in Phase I as evidence in the ARA will carry forward to the Phase II program if awarded.

Since many of the industry partners in the STTR do not have broad contracting experience, we have found that many partners look to the university for guidance in this area. The STTR Funding Agreement has been developed to meet this need.