The option of sole-source funding is a unique right for Phase III SBIR/STTR dealings. This article explains why that’s useful for your business and for commercialization.
For many businesses, the allure of a Phase III SBIR/STTR award is almost too good to be true. But what makes this Phase’s award more valuable than Phases I & II? Or other competitive contracts, for that matter?
What is Sole-Source Funding?
An SBIR/STTR Phase III sole-source contract is a specific method government agencies use to award contracts to small businesses to commercialize technologies developed through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.
Phase III sole-source contracts are a streamlined procurement process. Streamlining allows government agencies to work directly with small businesses participating in earlier SBIR/STTR phases to transition the technology into practical applications or products.
The primary purpose of Phase III sole-source contracts is to facilitate the commercialization of technologies and products resulting from successful Phase I and Phase II SBIR/STTR projects. These contracts help bridge the gap between the research and development phases (Phases I and II) and the marketplace.
Unlike traditional government procurement methods that involve competitive bidding, Phase III sole-source contracts are awarded to a single business. This is because the government recognizes the business’s unique expertise and prior work in developing the technology through earlier phases.
Benefits of Sole-Source Funding
Sole-source contracts have many benefits. For example, through a sole-source contract, the government agency can directly negotiate and award the contract to the small business without needing a competitive procurement process. Eliminating the need to recompete expedites the technology transition and reduces administrative overhead.
Phase III sole-source contracts also aim to provide technological development continuity. This continuity allows the small business to continue working on the project without disruptions that could occur in a competitive bidding process.
Sole-source contracts acknowledge the investment and innovation made in the technology during Phases I and II. Because of this, they provide a way for the government to leverage prior work and maximize the return on its investment.
Who Issues Sole-Source Contracts?
Multiple government agencies, including federal, state, and local organizations, issue Phase III sole-source contracts. Each agency may have its own specific procedures and requirements for awarding such contracts.
Businesses do not determine the funding route. That means funding is at the discretion of the program office and is directed by the type of funding the office receives.
Conclusion
Businesses that have developed promising technologies should actively engage with government agencies to explore Phase III sole-source opportunities. These contracts can provide a direct path to further development and commercialization, leveraging the progress made during earlier phases of the SBIR/STTR program.
If your business is considering seeking sole-source funding in Phase III, contact Vertx today for a consultation on the best option for your business.