3. Credibility Enhancers
Your project will be specifically evaluated on the "qualifications of the principal investigator, other key staff, and consultants, if any, and the adequacy of available or obtainable instrumentation and facilities." Most of these categories are identified in the solicitation directions as specific sections in the proposal format. Other areas which contribute to your firm's credibility include your awareness of related R&D, previous related experience, and a budget justified by the scope of the work proposed.
We will briefly discuss all of these categories. However, this credibility enhancing information should not be reserved only for the designated sections in the proposal format. If this information contributes to your discussions of problem significance and technical approach, by all means put it up front in the earlier components of the proposal. This is especially true for references to publications or prior work that support assumptions or arguments you are making. Use these sections of the proposal format for summary and elaboration.
Awareness of Related R&D
You will need to establish beyond any doubt that you are aware of the state of the art in those scientific disciplines and technical fields directly relevant to your solicitation topic and your specific approach. This does not mean that you merely provide a list of references. Rather, references should be integrated within your discussions of significance and approach to support points you are making. After making this integration, a one-half to one page summary is appropriate. Be sure to include a discussion of relevant related R&D or publications by your firm or key project staff.
Most reviewers will be aware of some developments related to your proposed effort and will be looking to see if their view of the state-of-the-art squares with yours. The following are typical of remarks made by reviewers:
"proposers do not demonstrate an understanding of soil-structure interaction: they have no references of which there are a number of important ones."
"no substantial account is taken of the widespread research on knowledge bases and expert systems."
With few exceptions (where specifically required by the solicitation topic) it is particularly inappropriate to propose a Phase I effort to study the state-of-the-art. Of course, reviewers are not looking for a state-of-the-art tutorial in your proposal either. Use references to simultaneously demonstrate your awareness and support your arguments.
Consultants and Subcontractors
It is important to keep the crucial work in-house. Consultants and subcontractors should be used for clearly defined, support functions such as project review, product testing, and specific experi mental operations or data collection. If you are farming everything out, why should the agency hire you in the first place?
Consultants are helpful if you or your key people are not among the leading U.S. experts in the area of your project. It is a sign of professionalism, not weakness, to be willing to enhance your capabilities through exceptionally qualified consultants. Use consultants where your strengths will be complemented, not duplicated. Take particular care that the major thrust of your proposal is not distorted by a reviewing consultant.
For example, it may not be appropriate to have a university point of view imposed on an SBIR proposal which is being submitted to a problem-solving oriented agency.
Subcontractors are helpful if your project requires special expertise or facilities you do not possess in-house. The same considerations apply to subcontractors as apply to consultants.
See also the discussion in section II C.
Facilities/Equipment
Briefly describe the key relevant facilities and equipment you will utilize. Include specifics on all laboratory or clinical, computing, and office facilities and equipment crucial for the project. If these facilities and equipment are not in-house, provide information which will satisfy any concerns the project manager or reviewers might have with respect to access.
If you do not have adequate in-house facilities or equipment, you often can buy access to what you need from universities, private firms, and non-profit institutes, or federal laboratories. Whenever possible, outside facilities or equipment should be located close to your own firm.
Future R&D, Potential Applications, and Follow-on Funding Commitment
Agencies like to fund work with a future. In this section, you should carefully synthesize material presented earlier in your proposal. Begin by summarizing (from Component 1) the precise results you intend to accomplish. Indicate how each anticipated result will facilitate your ability to conduct Phase II and Phase III R&D.
Summarize the commercial applications your project may have. You should consider both direct and indirect applications. For example, a project on oil seeds may have direct applications in the commercial petroleum market and Indirect applications in agricultural technology markets.
If you established ties with potential Phase III Investors, this is a good time to mention them. Indicate whether you intend to obtain a non-federal follow-up funding commitment. One caution: do not drop names unless you are sure you will not be embarrassed if the program manager phones your contact to see if there really is interest in your project!
Budget
There are two keys to preparing a good budget: be realistic, and follow the instructions.
The best way to prepare a realistic budget is to have your R&D team assist in preparing a draft budget at the time you prepare the outline for your proposal. You should show this draft budget to your accountant to ensure it is appropriate for your business For example, you will want to have backup for your material and labor overhead rates should the agency demand these.
Unless expressly excluded by statute, agencies are directed by the SBA to provide for a reasonable fee or profit on SBIR work. Because the funds for Phase I work are limited, considerations of profit should be secondary in preparing your budget to complete cost-recovery. In preparing your budget, you do not have to offer to expend in-house funds on the proposed project. As a general policy, cost-sharing is not required in SBIR programs and is not a consideration factor in the evaluation of either Phase I or II proposals.
Most agencies provide budget sheets as part of their SBIR solicitations. Before filling in these sheets it is a good idea to make copies of them for use in preparing a draft budget.
