The following items relate to Phase II applications. Further instructions or descriptions for these items as well as any additional items to be included will be identified in the annual program solicitation as necessary. See § 3403.9.

SF-424 R&R cover sheet. Follow instructions found in § 3403.7(a)(1).

Project summary. Follow instructions found at § 3403.7(a)(2).

Phase I results. The proposal should contain an extensive section that lists Phase I objectives and makes detailed presentation of the Phase I results. This section should establish the degree to which Phase I objectives were met and feasibility of the proposed research project was established.

Proposal. Since Phase II is the principal research and development effort, proposals should be more comprehensive than those submitted under Phase I. However, the outline and information contained in § 3403.7(a)(3)-(9) and § 3403.7(a)(11)-(14) should be followed, tailoring the information requested to the Phase II project.

Cost breakdown on proposal budget. For Phase II, a detailed budget is required for each year of requested support. In addition, a summary budget is required detailing the requested support for the overall project period. A budget narrative, with supporting budget detail for each budget category must be included.

Organizational management information. Each Phase II awardee will be asked to submit an updated statement of financial condition (such as the latest audit report, financial statements or balance sheet) and report any changes in management or principals.

Commercialization Plan. A succinct commercialization plan must be included in each SBIR Phase II proposal moving toward commercialization. Elements of a commercialization plan may include the following:

Company information. Focused objectives/core competencies; size; specialization area(s); products with significant sales; and history of previous Federal and non-Federal funding; regulatory experience; and subsequent commercialization.

Customer and competition. Clear description of key technology objectives, current competition, and advantages compared to competing products or services; description of hurdles to acceptance of the innovation.

Market. Milestone, target dates, analyses of market size, and estimated market share after first year sales and after five years; explanation of plan to obtain market share.

Intellectual property. Patent status, technology lead, trade secrets or other demonstration of a plan to achieve sufficient protection to realize the commercialization state and attain at least a temporary competitive advantage.

Financing. Plans for securing necessary funding in Phase III.

Assistance and mentoring. Plans for securing needed technical or business assistance through mentoring, partnering, or through arrangements with state assistance programs, Small Business Development Centers, Federally-funded research laboratories, manufacturing extension Partnership Centers, or other assistance providers.

Data Collection. Each Phase II applicant will be required to provide information to the Tech-Net Database System (http://technet.sba.gov) per OMB No. 3245-03356. The following are examples of the data to be entered by applicants into Tech-Net:

Any business concern or subsidiary established for the commercial application of a product or service for which an SBIR award is made;

Revenue from the sale of new products or services resulting from the research conducted under each Phase II award;

Additional investment from any source, other than Phase I or Phase II awards, to further the research and development conducted under each Phase II award; and

Updates to information in the Tech-Net database for any prior Phase II award received by the small business concern.

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