MONTANA SBIR OUTREACH PROGRAM
SOLICITATION FOR PHASE 0 PROPOSALS

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ISSUED BY THE MONTANA DEPARTMENT OF COMMERCE SMALL BUSINESS DEVELOPMENT CENTER
(Seventh Issue May 2006)

1.0 INTRODUCTION AND BACKGROUND
The Small Business Innovative Research (SBIR) program provides R&D funding of approximately $2 billion annually to U.S. small businesses. The funding flows from 11 federal agencies for a wide range of proposal topic areas. SBIR funding offers excellent opportunities to nurture the development of innovative businesses in Montana, create employment opportunities for our university and community college graduates, and enhance economic development and diversification.
Only for-profit small businesses (fewer than 500 employees) qualify for SBIR funding. Hence, the high value in a program that provides a unique source of seed capital to explore and develop innovative new product concepts and enhance existing product lines. This program is of particular importance to Montana businesses where innovation capital is in very short supply.
Historically, Montana and other rural states have lagged behind other states in SBIR competition. In 1999, the Montana Department of Commerce launched its SBIR Outreach Program to stimulate, cultivate, and improve SBIR competition by Montanan companies. The Montana SBIR Outreach activities have been financed under the combined funding of the U.S. Small Business Administration and the Montana Department of Commerce.
The results of these cooperative activities have been encouraging. The number of SBIR awards made to Montana companies has increased significantly since the program's inception. Yet, there remain many untapped opportunities for Montana small businesses to benefit from this federal resource.
Further information on the SBIR Program is available at the Montana Department of Commerce SBIR web site: www.sbir.mt.gov

2.0 PROGRAM DESCRIPTION
 In order to stimulate better SBIR competition results in Montana, a Phase 0 program is being administered by the Montana Department of Commerce, Small Business Innovation Research Program, on behalf of The University of Montana. Contingent on the availability of federal funding, up to $40,000 from The University of Montana NSF EPSCoR program will fund the Phase 0 program. The purpose of this program is to support the development of higher quality Phase I proposals and to broaden participation from Montana small businesses through Phase 0 competition-assistance grants.
A Phase 0 grant of up to $5,000 will be awarded to a successful applicant, with the final amount to be determined by the SBIR review panel. SBIR coaching assistance may be designated as a contractual condition of the Phase 0 grant. The coaching assistance will be fully funded in addition to the award amount under The University of Montana NSF EPSCoR program, and these services will be provided by the Montana Department of Commerce SBIR Outreach Office. Coaching may be designated to help guide a grantee's efforts in any or all of the following activities:

*Assembling the technical team.

*Developing its commercialization strategy.

*Researching the market and conducting background literature searches that will validate the authenticity and commercial viability of the company's innovation.

*Composing a succinct hypothesis and developing a clear-cut.

*Work plan that addresses appropriate objectives.

*Providing one or more reviews for the Phase 1 proposal.

*Preparing a Phase 1 budget that properly reflects the work plan and adheres to federal regulations.

Your Phase 0 award contract will require a Scope of Work by the awardee indicating how that award will be used. Appropriate uses of Phase 0 funding include:

*Travel expenses to meet a SBIR program manager or line manager within the target agency (funding is not intended for travel to attend meetings at a state or national SBIR conference).

*Communication with potential customers (e.g., long-distance charges; staff time for interviewing and consolidating and analyzing data collected).

*Analyses of preliminary test data that would enhance a Phase 1 proposal.

*Paying staff or a technical editor for his/her role in constructing the proposal.

*Costs for meeting with or hiring a consulting team.

*Conducting very preliminary research or early feasibility studies.

*Other activities directly related to generating a high-quality SBIR Phase I proposal.

3.0 ELIGIBILITY
Eligible companies include all pre-start up and existing businesses for which central operations are located in the State of Montana, and/or for which the primary shareholding parties are residents of the State of Montana. One of the primary goals of the Phase 0 program is to enlist first-time SBIR participants from a broad demographic and geographic cross-section of Montana. However, proposals from past SBIR award-winning companies will also be eligible for Phase 0 assistance.

4.0 PROPOSAL PREPARATION INSTRUCTIONS AND SUBMISSION
Please submit one proposal only. Proposals submitted in response to this solicitation must adhere to the following guidelines. Proposals that fail to follow these guidelines may be downgraded or dismissed.

4.1 COVER PAGE (1 page limit)
A cover page template is provided as a separate file. Complete the template with the name and address of the proposing person, name of the proposing small business, contact information, and Phase 0 project title. Suggest only one Phase I target agency of interest. Some agency topics may not be released at this time (e.g. DoD topics). For those agencies, you may relate your interest to a past solicitation topic. If you are considering more than one agency and/or topic, reference that interest in the cover page but orient your Phase 0 text to the target selection. Identify the deadline for that target Phase I submission, and a brief summary of the tasks and schedule to be funded by the Phase 0 award.

4.2 PROJECT DESCRIPTION AND DISCUSSION (4 page limit) The main body of the report must not exceed 4 pages, with minimums of one-inch margins and an 11-point font.

The proposal must address the following requests for information. Proposals that fail to address these requests in a clear and concise manner, as determined by the review team, may be downgraded or dismissed. Applicants are encouraged to use abbreviated versions of these eight request statements as headings for the Phase 0 proposal (suggested headings are included in the template document)

1. Briefly describe your (planned or existing) company, its mission, and its vision.

2. Explain how you will use the Phase 0 funding to advance your Phase I submission efforts.

3. Provide a succinct, non-proprietary explanation of your proposed technology, including progress or research status to date.

4. Identify the specific problem you intend to solve with your invention or innovative idea.

5. Explain how this problem is being solved now. What companies or technology comprise the main competition?

6. Identify who will buy your innovative idea once it is developed (e.g., governmental agencies, private industry, wholesalers, suppliers, etc.). Estimate the number of customers currently in your target market segment?

7. Describe how your technology will address the targeted Phase I topic.

8. Discuss what commercialization approach (e.g., licensing, manufacturing, partnering) you intend to pursue. What made you choose this approach?

4.3 BIOGRAPHICAL SKETCHES (1 page limit)
Include a brief biographical paragraph on each key professional who will work on the Phase 1 project. Include consultants and/or subcontractors important to the work plan. Only that biographical information directly relevant to the proposed Phase 1 project should be included . If a key position remains to be filled for the project, explain briefly the nature of the position and the talents that will be required.

4.4 PREVIOUS SBIR AWARD HISTORY (not included in the page limits)
The Phase 0 has been designed to recruit new companies into the SBIR Program. New applications that meet the criteria and receive high rankings from the review team will be given preference over applicants who have been prior SBIR Phase 0, 1 or 2 winners. Please list all SBIR awards (Phase 0, 1, and 2) your company has won over the last three years.
Phase Year Awarded Amount of Award Awarding Agency Title of the Project.

Award History
Phase Year Awarded Amount of Award Awarding Agency Title of the Project

5.0: SUBMISSION
The proposal must be submitted electronically. A PDF format is recommended, but not required. The proposal should be sent to Linda Brander, Montana Department of Commerce, SBIR Program Manager, at lbrander@mt.gov.

Proposals must be received electronically by 5:00 PM on May 25, 2006

Information should be non-confidential in nature. Proposals will not be publicly released, but they will be provided to a committee of reviewers. If there are concerns about confidentiality, the applicant should contact Linda Brander, SBIR Program Manager, at (406) 841-2749 or lbrander@mt.gov

6.0 METHOD OF SELECTION AND EVALUATION CRITERIA
A committee of reviewers will evaluate proposals and select award winners based on the following criteria:

1. A Phase 0 document that is well written, succinct, and easy to understand.

2. Innovativeness of the idea and its commercial viability.

3. Evidence that the applicant has done preliminary market research and literature reviews.

4. Evidence that the applicant understands what will be required to submit a competitive Phase 1 proposal.

5. Evidence that the applicant understands what is required to design and manage a successful research project.

6. A business-like approach by the applicant to technology development with a realistic vision for commercial success.

7Ã'· The importance of Phase 0 assistance to the applicant company's ability to pursue SBIR funding.

7.0 DELIVERABLES AND PAYMENT
 The Phase 0 award will be dispersed only after the winner's contract has been signed. The award contract will require the successful applicant to meet a Primary Deliverable as detailed in section 7.1. At the discretion of the Phase 0 review panel, some participants may be required to meet a Secondary Deliverable as detailed in 7.2 below to help ensure their best potential for success in the Phase I program. Successful winners may be required to participate in a conference call with the contract manager at the Office of Sponsored Programs Administration at The University of Montana to review contract and discuss contract deliverables.

7.1 Primary Deliverable : SBIR Phase 1 Proposal Submission
The company must submit a Phase 1 proposal to one of the federal SBIR agencies within 18 months of the award. Failure to meet this deliverable will bar the applicant from receiving future State-funded grants and State-subsidized technical assistance services for five years.

7.2 Secondary Deliverable : Strategy
 The company will be required to develop a strategy and project schedule for submitting a well-written and competitive Phase 1 SBIR proposal. This strategy will include a first draft of proposed objectives for the Phase I proposal.

Upon receipt of funds, it is requested that each grantee provide a photograph of the grantee, preferably one that includes the other team members. This photo will be used for publicity purposes by The University of Montana NSF EPSCoR Program and will not be returned. Photos should be submitted to Gay Allison, Montana NSF EPSCoR, The University of Montana, Davidson Honors College, Missoula, MT 59810-1049 or gay.allison@umontana.edu