In order to comply with the SBIR/STTR Reauthorization Act of 2011 and to ensure that awardees are using the program to support progress towards commercialization of research and development, the Small Business Administration has issued new benchmarks that concern eligibility for Phase II awards from the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs (Federal Register notice here (PDF)). While Phase I awards typically do not exceed $150,000 total costs for six months, Phase II awards are larger – typically up to $1 million over two years. The benchmarks reflect Phase II transitions rates, that is, a company's success rate of following previous Phase I awards with Phase II awards over a certain period. Companies that have won awards previously but do not meet an agency's benchmarks will not be eligible for a new Phase I award for a certain period from that agency. Each agency has specified a rate and time period. The benchmarks are open for comment until Nov. 15. The SBA will issue final transition rates by Dec. 17.
