Gail & Jim Greenwood, Greenwood Consulting Group, Inc.

Copyright © 2000 by Greenwood Consulting Group, Inc.

With Phase I SBIR Proposals due at the Department of Defense (DOD) on January 12^th, we thought we’d focus this month’s article on some tips for DOD Phase I proposals. These are based on our reviews of many draft DOD proposals, and on the advice offered by the SBIR Program Managers within the individual components (i.e., DARPA, BMDO, Navy, Army) of the agency.

First, make sure that you submit, electronically, copies of the cover page, abstract page, and commercialization report to DOD before the proposal deadline. Hardcopies of these three pages also should be attached to the paper copies of the proposal that you send to the component. Heed DOD’s advice that you not wait until the last minute to make the electronic submission, since the system may get backed up with a lot of proposal submitters trying to do this at the same time.

Second, never submit an SBIR Phase I proposal to the Department of Defense that does not respond to a specific topic in the current solicitation. As opposed to some agencies that have very broad topics, DOD tends to have very narrow ones (one exception to this is BMDO’s famous "Surprises and Opportunites" topic). This makes sense, given that DOD wants solutions to specific problems in their aircraft, ships, tanks, training programs and missile systems. A "forced fit" between your idea and DOD’s stated need doesn’t work very often.

Third, as a related topic, a Phase I proposal to DOD had better talk about the need for your technology within the component to which you are submitting the proposal. Never try to get the Army to fund a project that has no military application, and never ask the Air Force to fund an enhancement to a Navy submarine. The proposal should be focused on the DOD component’s need, with the importance of the DOD problem and the value of your solution being emphasized in the abstract, the section on Identification and Significance of the Problem or Opportunity, and the Commercialization Strategy section. Don’t just mention the military’s problem in passing or in an isolated paragraph somewhere in the proposal.

Fourth, look out for differing requirements among the components in terms of the Phase I funding and project length limits. The standard of $100k for 6 months does not apply to many components. For example, DARPA will not consider proposals for more than $99k, Navy wants a basic Phase I effort of 6 months and not more than $70k with a $30k option for an additional 3 months effort, BMDO doesn’t fund projects for more than $65k, and Air Force stays with a $100k Phase I but wants this for a 9 month effort.

Fifth, when you are proposing to one of the DOD components that has an option (like Navy and Army, and even Air Force in terms of its last 3 months of its 9 month Phase I), you need to carefully think through what tasks you are proposing as part of the basic Phase I project versus those in the option period. Your primary research, leading to a conclusion about feasibility, needs to be completed within the first six month base period—if you do not complete the primary research or if you cannot demonstrate feasibility by this point, you are seriously jeopardizing your chances of getting a Phase II invitation or award.

Sixth, in your DOD cost proposal, make sure that you understand how to answer question #22c. It asks "Do you require government contract financing to perform this proposed contract? If yes, then specify type as advanced payments or progress payments." You want to answer "YES" to this question—otherwise, you are telling DOD that you do not need to be paid a single penny until you have completed the entire Phase I effort and they have approved your final report. The second half of this question is a bit tricky: DOD doesn’t make Advanced Payments, and Progress Payments may trigger an audit. We’ve been told to request Milestone Payments, in which you receive a payment each time you achieve a certain milestone, such as delivery to DOD of a monthly progress report.

Finally, include in your Phase I proposal at least one trip to visit the technical folks within DOD who are overseeing your project. Unlike some SBIR agencies that prefer a "hands off" relationship between the SBIR company and its agency reps, DOD wants and expects a close interaction. Why? Remember what we said at the beginning of this article: DOD wants SBIR projects that solve problems with their systems, vehicles, programs, etc., which means that they want to be working closely with you as you address those problems. Plan a trip early in your project to meet the DOD technical staff, discuss the workplan, and gain a better understanding of these folks’ concerns, ideas, and hot buttons. And, if possible, plan a trip one-half or two-thirds of the way through the base 6 month Phase I effort to update the DOD technical staff on your progress, discuss what would be done in Phase II, and gain their support for inviting your Phase II proposal. There are exceptions—some DOD components may not like as much interaction as others—but in general plan to keep in close communication with your DOD technical rep if you get an SBIR award.