As mentioned above, up to 33% of a phase I-SBIR project can be contracted out and at least 30% of a STTR project must be allocated. But how do agencies measure these percentages? There are several models, and they give different results. For example, the National Institutes of Health (NIH), NSF and DHS simply say that it amounts to 33% of the total contract or grant amount (in Phase I SBIR). Therefore, if the Phase I premium is awarded for $150,000, up to $50,000 may be sub-contracted. It is therefore important to think carefully about this and consider whether to include a consultant in your SBIR/STTR team in relation to a subcontractor. Part of the requirements of a STTR project is an agreement on intellectual property rights. This agreement is recorded in an award agreement (ARA) prior to the awarding of a distinction of federal authority to small business. The company or IP will contact OPAS as soon as this document is requested by the federal authority. OPAS will hire UMII (University of Massachusetts Innovation Institute) to conclude and return the university`s standard boiler-ARA platform agreement to the small business. All negotiations are conducted by UMII staff in consultation with legal counsel if necessary.
In addition to the transfer of the ARA, OPAS will also provide the company with a specific financing agreement for the STTR project for the constituent elements that the company can use for the award of the subcontract to the university. All negotiations on this agreement are conducted by OPAS staff. The IP conditions agreed in Phase I as evidence in the ARA are transferred to the Phase II program when they are assigned. Agencies encourage applicants to consider outsourcing. NSF writes that “companies that suggest… encourages the use of expertise and research facilities at their disposal in universities, universities, national laboratories and other research providers. These collaborations may include research contracts or consulting contracts. And the UsDA says: “The participation of academics, governments or other external collaborators in project planning and research is authorized as consultants or subcontracts, and can be particularly useful for small businesses that have not received federal research awards before.” The university`s proposals to participate in a SBIR project are submitted by OPAS and treated in the same way as any subcontracting proposal.