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SBIR and Government Contract Proposals

by Kaye Vivian

Congress has mandated that every government agency must set aside 5% of its annual budget to award in the form of grants to small businesses. This money is not a loan. It is a grant to enable entrepreneurs to test an idea or technology that has potential as a viable commercial product to create jobs and strengthen the economy.

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SBIR Proposals

Twice each year competitive proposals are accepted from thousands of entrepreneurs and small businesses by the SBIR (small business innovation research) grants program, which is overseen by the Small Business Administration (SBA).  Each government agency operates its own SBIR grant program, and there are variations from agency to agency.  A new solicitation is published each year.  Be sure to read the detailed solicitation booklet so you can submit the proposal properly and enhance your chance of success.

Awards are typically in two phases: 

  • Phase I, up to a maximum of $100,000 (varies by agency).  In this stage, a concept, new technology or invention is tested for feasibility or a prototype is built. 
  • Phase II, up to a maximum of $750,000 (varies by agency). This stage is to focus on a method for commercializing the invention or technology and creating jobs.

Some agencies have additional interim funding called ``Phase I Optional", which is bridge funding to enable the Phase I work to continue while a Phase II proposal is still pending.  It is typically $50,000 for a 4-month period.   Phase I Optional budgets are included in the Phase I proposal.

Multiple SBIR grants can be awarded at once for projects using the same technology, providing the projects and/or the agencies are different.  You will be required to identify any additional grants that have been funded for related projects.

Other types of government contracts are granted on the basis of an annual ``solicitation", which is a detailed listing of all services, technologies and products that various government agencies need.  Each agency publishes its own solicitations.  Businesses or individuals who which to propose on a contract may bid alone or may team up with one or more other businesses to provide the product or service.

Get Your Proposal TemplateStandard solicitation booklets are available from the Government Printing Office in Washington, directly from the agency you want to propose to, or from the Worldwide Web. 

Solicitations provide all possible details about topics, how to structure the proposal document, page limitations, deadlines for filing, etc. A good place to start is the Federal Acquisition Jumpstation on the Internet.  You can check by agency and see what their current interests are before going to the trouble of preparing a proposal no one wants to see.

If you have decided to write a proposal to a government agency, here are some pointers that may help you be more effective:

  • Follow the instructions word for word.   Most require 1" margins all around the page and 12-point type font.  Some want it on 3-hole punched paper.  Most want only paper clips and rubber bands, no staples.  Some want a diskette containing certain pieces of the document.  Be sure you know precisely the format and use it, or you risk having your proposal disqualified.
  • Page counts are serious.  If they say 25 pages, including cover form and appendices, they mean it.  Start by making a detailed outline of what needs to go in the proposal and estimate the number of pages you need.  Then figure out a way to cut it back to 25 pages. This step is very helpful to your initial drafting process, since it provides a guideline for length by section. Remember, if you plan to use outside consultants, that they must supply a letter agreeing to work on the project and their letter should be included as one page of the proposal.
  • Get acquainted with people in the agency well in advance of the proposal writing period.  Call them, talk to them about your idea and see what aspect is most interesting to them. Most will not talk about any proposals within several months of a proposal submission deadline.  Try E-mail first if you have general questions.  Most respond promptly to E-mail queries, except during the actual active proposal period.
  • Attend SBIR-sponsored conferences.  You will meet many agency directors and key individuals involved in the proposal review process for your agency of choice.  The informal environment gives you a chance to ask your important questions and to make valuable contacts with other small businesses and service providers who may help you.
  • Follow the instructions word for word.  This duplication is deliberate.  It is very important to remember that when all is said and done, you are still dealing with the government and a bureaucratic mentality. If they say use 10-pitch Courier type, go find a typewriter and whiteout!
  • Use clear, simple English and define all jargon terms. This is particularly true in a scientific field such as physics or chemistry or molecular biology.  Even though the reviewers are *used* to dry, technical papers, that doesn't mean they *like* to read them! (Do you?)  Sound knowledgeable, but use simple sentences and active voice to convey your meaning clearly.
  • Look for special resources available from the agency to help you. For example, the NIH section in charge of HIV offers a very fine instruction booklet (written by its director) that describes section by section what kind of information the agency wants to see and pitfalls proposers sometimes make.
  • Use illustrations where possible to reduce words.  People are time-starved today and the eye naturally gravitates to a picture.  Don't just describe the drawing. Put your key features or messages in the captions to the drawing or picture.  Captions always get read.
  • Use a cover letter to provide situation specific information.  If you have confidential information in the proposal, note it in the letter.  If certain competitors should not be reviewers of your proposal, say so in the letter. 
  • Deliver the proposal on time.  The solicitations frequently give an hour of the day (such as 4 pm) after which they will not accept proposals.  If you have any concern that your package may not arrive by the appointed hour, send two complete packages by two different delivery services.  Note in the cover letter or on an attached note that there are duplicate packages and one should be discarded. 

PS

Would you like to see more articles on government contract proposals or SBIR proposals?  Drop me a note and I'll be glad to share more. Copyright 1998 by Kaye Vivian (kvivian@cloud9.net). All rights reserved.

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