The new SBIR/STTR Reauthorization Law (buried in the National Defense Authorization Act for Fiscal Year 2012) made a number of radical changes in these programs - many of them harmful. The extent of the harm will not finally be known until the SBA finalizes its Policy Directive, which carries the force of law. The SBA has published what it calls AFinal policy directive with request for comments@ in the Federal Register Volume 77, Number 151 (Monday, August 6, 2012). But it is really not Afinal@ as 1) the comments requested therein have yet to be dealt with and 2) the document itself postpones finalizing some of the more difficult decisions to the end of this year. Nonetheless, we can determine many of the implications now.
Probably the most onerous implication is that the SBIR and STTR programs will both become VERY MUCH more competitive than in the past. Historically, about 1 of every 9 applications has won an award (average across all 11 agencies). Now, when the provisions of this new law, and the SBA Policy Directive in place, we can expect that to move to something in the range of just 1 in 20 applications can win funding. That is a awful lot of proposals to write for a $150,000 revenue prize. This situation is primarily due to the diversion of funds to a plethora of uses other than funding Phase I awards.
To read the original article: (It's Not Your Father's SBIR Program Anymore)
