CS 411W
XI – SBIR and Grant Proposal Writing
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
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.
SBIR/Grant Requests (cont)
Federal Grants - Eligibility: Many groups of
organizations are eligible to apply for government
grants:
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Government Organizations
Education Organizations
Public Housing Organizations
Non-Profit Organizations
Small Businesses
Individuals
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.
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
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
Writing Proposals – Components
Components of a Proposal: The basic
components of the business proposal
include:
– Technical Proposal and
– Cost or Price proposal.
Writing Proposals – Components (cont)
Technical Proposal: Conveys the sellers understanding of the
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customer’s requirements and technical details of the offer:
Provides a detailed description of the technical approach to
meeting the requirements
Identifies the seller’s 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
Writing Proposals – Components (cont)
Cost Proposal: Provides a price breakdown for major aspects of
the offer which may include:
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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
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
Proposal Preparation Checklist
Key considerations for developing a successful
proposal:
1. Does your proposal address the underlying purpose of the customer’s
need?
2. Is there any danger that the customer could misunderstand your approach
to provide him with a solution? Have you clearly presented your
approach?
3. Is the work you intend to perform covered in sufficient detail?
4. Have you expressed compelling enough reasons why you should be
selected to supply the goods or services?
5. Is your proposal written from your customer’s perspective? Do you use
language with which he is familiar? Do you know his personal or his
organization's key objectives?
6. Are your fees or costs clearly stated? Do they follow a description of
your approach and benefits?
7. Will the customer understand what he or she is supposed to do upon
reading the proposal?
Methods for Proposal Preparation
1. Prepare an Introduction:
• Start with a Theme: Concise statement which describes what
you are offering and why it meets the customer needs
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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
Methods for Proposal Preparation
2.
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 customer’s
requirements
• Identify key personnel and their qualifications
• Describe the facilities and equipment required to complete
the effort.
Methods for Proposal Preparation (cont)
3.
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.
Methods for Proposal Preparation (cont)
4.
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)
Methods for Proposal Preparation (cont)
5.
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
Methods for Proposal Preparation (cont)
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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)
1. Evaluate hardware 0ptions
100 man-hours
2. Select and order hardware
1/3 cost upfront
1/3 hardware cost
200 man-hours
1/3 cost
100 man-hours
50 man-hours
3. Install hardware
4. Debug system
5. Train
TOTAL
$10,000
$60,000
$60,000
$20,000
$60,000
$10,000
$5,000
$225,000
Methods for Proposal Preparation (cont)
6.
Summarize Your Offer: Capture key components and discriminators of
your proposal in a summary paragraph
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Provides a concise recap of what you are offering
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Can be used to hi-light qualifications, past experience, and key
discriminators
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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
Lab V Phase II SBIR/Grant Proposal
Cover Sheet (Product Name, Project Team Name, Date, etc.)
Table of Contents, List of Figures, etc
1 Introduction
Description of what is being proposed and why
2 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
3 Commercialization Strategy
3 Schedule, Milestones, and Deliverables
4 Proposal Costs
5 Summary
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_prop2.htm