CS 411W

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CS 411W

• XI SBIR and Grant Proposal Writing

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SBIR/Grant Requests

• Objective To obtain Research and Development
  funding to transition from a concept to product
  (the alternative is to finance it yourself)
• SBIR Advantage Small Business retains rights to
  technical data for a period of 4 years
• gives small business opportunity to market the
  product
• prevents other/larger organizations from taking
  unfair advantage

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SBIR/Grant Requests (cont)

• Federal Grants A Federal Grant is an award of
  financial assistance from a Federal agency to a
  recipient to carry out a public purpose of
  support or stimulation authorized by a law of the
  United States.
• Grants are not Federal assistance or loans to
  individuals.
• A grant is not used to acquire property or
  services for the Federal government's direct
  benefit.

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SBIR/Grant Requests (cont)

• Federal Grants - Eligibility Many groups of
  organizations are eligible to apply for
  government grants
• Government Organizations
• Education Organizations
• Public Housing Organizations
• Non-Profit Organizations
• Small Businesses
• Individuals

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SBIR/Grant Requests Writing Proposals

• What is a proposal? A business proposal is an
  offering from a seller to a prospective buyer
• The written proposal is the vehicle that carries
  the terms of an agreement between buyer and
  seller and forms the basis for a subsequent
  business contract.
• Proposals can range in size from a one page
  letter, or price list, to several hundred pages
  of detailed specifications.
• If the proposed offer is accepted by the buyer,
  it creates a legally binding document for both
  parties, buyer and seller.

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Writing Proposals - Process

• Proposal Process The proposal provides a formal
  way for both sides to communicate in writing
  during these negotiations.
• Prospective buyers sometimes issue a Request for
  Proposals (RFP), or an Invitation for Bids (IFB),
  to provide specific information about what
  products or services they want
• RFP/IFB will include specifications of the
  customer's requirements
• The RFP/IFB will typically be issued to solicit
  responses from several offers to establish a
  competitive bidding environment
• A proposal is written in response to the RFP/IFB

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Writing Proposals - Objectives

• Proposal Objectives The major objectives in
  writing proposal are
• To describe how the customer requirements will be
  met
• To establish the price and payment terms for the
  proposed effort, goods, or services
• To define the terms and conditions that will
  apply to both parties during if the proposal is
  accepted

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Writing Proposals Components

• Components of a Proposal The basic components of
  the business proposal include
• Technical Proposal and
• Cost or Price proposal.

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Writing Proposals Components (cont)

• Technical Proposal Conveys the sellers
  understanding of the customers requirements and
  technical details of the offer
• Provides a detailed description of the technical
  approach to meeting the requirements
• Identifies the sellers key discriminators to
  convince the customer to select the proposal.
  Discriminators may include
• Technical qualifications
• Development or production process
• Management approach
• Risks and how they will be addressed
• Program plan outline/schedule and milestones

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Writing Proposals Components (cont)

• Cost Proposal Provides a price breakdown for
  major aspects of the offer which may include
• Non-recurring Costs - those costs associated with
  producing a first article
• Recurring Costs the cost of producing/delivering
  additional product
• Labor costs expressed in one or more
  combinations terms of cost/man hour, total man
  hours, total labor costs, etc.
• Material Costs parts, assemblies, supplies
  required to produce the product
• Other Costs travel, license fees, consultants,
  etc.
• Contractual Terms and Conditions of the offer

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Additional Proposal Objectives

• To educate the prospective customer about the
  full nature of his need
• Often, a prospective customer may be aware of
  only a portion of his need the proposal may
  describe a more complete and valid
  solution/approach
• Provides a detailed cost assessment as basis for
  comparison of the overall approach to cost from
  multiple (competing) offers

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Proposal Preparation Checklist

• Key considerations for developing a successful
  proposal
• Does your proposal address the underlying purpose
  of the customers need?
• Is there any danger that the customer could
  misunderstand your approach to provide him with a
  solution? Have you clearly presented your
  approach?
• Is the work you intend to perform covered in
  sufficient detail?
• Have you expressed compelling enough reasons why
  you should be selected to supply the goods or
  services?
• Is your proposal written from your customers
  perspective? Do you use language with which he is
  familiar? Do you know his personal or his
  organization's key objectives?
• Are your fees or costs clearly stated? Do they
  follow a description of your approach and
  benefits?
• Will the customer understand what he or she is
  supposed to do upon reading the proposal?

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Methods for Proposal Preparation

• Prepare an Introduction
• Start with a Theme Concise statement which
  describes what you are offering and why it meets
  the customer needs
• Example XYZ solution provides a secure method
  for ensuring rapid and accurate assessment of
  insurance claims
• Convey your understanding of the customer
  requirement and provides a top-level view of how
  your proposal addresses those requirements

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Methods for Proposal Preparation

• Describe your Technical Approach Provide a
  detailed description of your approach and what it
  will accomplish
• Describe major technical objectives and
  activities
• Identify risks, challenges, and approaches to
  dealing with them
• Describe the outcome in terms of meeting
  customers requirements
• Identify key personnel and their qualifications
• Describe the facilities and equipment required to
  complete the effort.

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Methods for Proposal Preparation (cont)

• Describe your Commercialization Strategy
• Describe how your product satisfies a market
  requirement
• Example Small, light weight, feedback
  controllable actuators could find wide
  application by both military and commercial
  entities for telerobotics applications. Products
  could include actuators, simulation software,
  compact brakes, active vibration control
  modules,etc.

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Methods for Proposal Preparation (cont)

• Provide a Schedule, Identify Milestones, define
  Deliverables
• Prepare a schedule which reflects a top-level
  Work Breakdown Structure
• Identify and discuss major milestones
• List deliverables (routine reports, product
  documentation, equipment or product)

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Methods for Proposal Preparation (cont)

• Prepare the Cost/Price Proposal The Cost
  proposal is often delivered in a separate
  (sealed) package from the Technical Proposal.
• Cost Proposal format is often dictated by the RFP
• Cost will include the costs you will incur plus
  the earnings you expect (Cost Earnings Price)
• Cost/price breakdown should provide customer with
  sufficient information to evaluate your offer for
  cost/price reasonableness

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Methods for Proposal Preparation (cont)

• Simple Cost/price Breakdown The table below
  shows how scope of effort and associated
  cost/price might be presented for a simple
  effort
• Should map at a high level to WBS or Schedule
• Shows what the customer gets (quantity of labor,
  cost of hardware)

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Methods for Proposal Preparation (cont)

• Summarize Your Offer Capture key components and
  discriminators of your proposal in a summary
  paragraph
• Provides a concise recap of what you are offering
• Can be used to hi-light qualifications, past
  experience, and key discriminators
• Example XYZ, the largest Database designer in
  the United States provides secure database design
  services for over 500 major clients including the
  Department of Defense, Department of Homeland
  Security, First National Bank, and Ford Motor
  Company. "
• May provide a comparison/recap of your solution
  compared to existing solutions or alternative
  solutions from potential competitors

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Lab V Phase II SBIR/Grant Proposal

• Cover Sheet (Product Name, Project Team Name,
  Date, etc.)
• Table of Contents, List of Figures, etc
• Introduction
• Description of what is being proposed and why
• Technical Approach
• Description of prototype capabilities and results
• Description of proposed activities to transition
  prototype to product
• Detail tasks to be performed
• Describe results to be achieved
• Identify Key Personnel
• Identify Facilities and Equipment required to
  complete the tasks to be performed
• Commercialization Strategy
• Schedule, Milestones, and Deliverables
• Proposal Costs
• Summary

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Reference Links

• SBIR Websites
• http//www.sba.gov/SBIR/
• http//www.acq.osd.mil/osbp/sbir/
• http//grants.nih.gov/grants/funding/sbir.htm
• http//sbir.gsfc.nasa.gov/SBIR/SBIR.html
• Phase II Example
• http//www.acq.osd.mil/osbp/sbir/proposals/smpl_pr
  op2.htm