Small Business Innovation Research (SBIR) Small Business Technology Transfer (STTR)

SBIR and Acquisition Requirements:

Incorporating Contract Incentives for SBIR

One way to derive maximum value from SBIR is to include specific award fee clauses in contract language to target and reward incorporation of SBIR technologies by prime contractors. The following is an example of appropriate language to encourage use of SBIR technology:

"Two percent of the total award fee pool shall be dedicated to an evaluation of success in applying technology from SBIR projects."

In addition, the Acquisition Strategy should also lay out plans for meeting small business contracting goals. For fiscal year 2007, the Department of Defense, with the Small Business Administration, set a goal of awarding 23 percent of prime contracts to small businesses. In addition, DoD prime contractors are expected to award 35 percent of subcontracts to small business. Contracts awarded through SBIR qualify as progress toward achieving these small business targets—simultaneously bringing technology innovation to bear and achieving contracting goals.