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Small Business vs SBIR/STTR

Small Business FAR Part 19 vs SBIR/STTR


Small Business (FAR Part 19)

Small Business Innovation Research (SBIR) and

Small Business Technology Transfer (STTR)

Method for setting acquisitions aside for exclusive competitive participation by small businesses, 8(a) participants, HUBZone small business concerns, service-disabled veteran-owned small business concerns, and economically disadvantaged women-owned small business (EDWOSB) concerns and women-owned small business concerns. SBIR is a competitive program that encourages small businesses to engage in Federal Research and Development (R&D) with the potential for commercialization to stimulate innovation.  STTR is another program that expands funding opportunities for innovative R&D for small businesses to collaborate with non-profit U.S. research institutions.
Common Applications
  • All types of supplies and services
  • Defense Business Systems
  • Solutions and technologies
  • IT software and products
  • Research and development
  • Advisory and assistance services
  • Engineering services
  • Special studies
  • Research & Development
  • Prototypes
  • Science & Technology (S&T) efforts
  • Technology maturation
  • Set-asides increase opportunity to meet mandatory agency small business goals
  • Small businesses provide culture of flexibility and innovation offering acquisition programs unique solutions to solving capability gaps
  • Ability to award directly to an 8(a) program qualifying vendor within FAR threshold reduces procurement lead time
  • Ability to uniquely negotiate terms and conditions, and pricing arrangements enables improved mission outcomes
  • Ability to award sole source to SBIR Phase I/Phase II vendors for Phase III work reduces procurement lead time
  • Phase III SBIR award procedures provide opportunity for acquisition programs to deliver capability quickly
  • Many small businesses do not have approved cost accounting systems limiting selection of contract types
  • 8(a) sole source may increase risk to cost, schedule, and performance risk if vendor is under-performing
  • SBIR/STTR data rights protection limits Government’s IP strategy
  • Technology insertion/transition process into program of record increases risk of project failure
  • Acquisitions within SAT must be reserved exclusively for small businesses
  • Acquisitions over SAT, must set aside if there are two or more small businesses that could do the work
  • Acquisitions over FAR threshold, if not set aside for small business, must have a subcontracting plan if awarded to a non-small business
  • SBIR/STTR data rights protection: Apply to all phases and restricts the Government from disclosing SBIR data outside the Government. Government cannot compete technologies containing SBIR Data
  • Phase III contract awards may not be appropriate in all cases if multiple sources available in the open market for similar product
Statute References
FAR 19.502

15 USC  637c

FAR 52.227-20



Class Deviation 2018-O0009 – Pilot Program for Streamlining Awards for Innovative Technology Projects