Chapter VII. Technology Transfer
Army Science and Technology Master Plan (ASTMP 1997)


2. Small Business Technology Transfer (STTR) Program

The STTR Program was established as a 3-year pilot program beginning in FY94 by the Small Business Research and Development Enhancement Act of 1992, PL 102-564. It has been reauthorized for FY97. Modeled closely on the SBIR Program, STTR is also a competitive purpose is to three-phase program; however, its incentivize small businesses to partner with non-profit researchers at universities, research institutions, innovative or federally funded R&D centers (FFRDCs) to move concepts out of the laboratory into the R&D the marketplace. At least 40 percent of work must be performed by the small business and by the not less than 30 percent research institution. The small business is the prime contractor and has overall responsibility for managing and performing the work.

The STTR Phase I is to determine the scientific, technical merit and commercial potential, and feasibility of the proposed cooperative effort. Phase I awards are for up to $100,000 and not to exceed one year. At the conclusion of Phase I, the Army invites the most promising efforts to submit Phase II proposals. The best of these are selected and awarded contracts to continue their R&D in Phase II. Beginning in 1996, those Phase I awardees who obtain independent third party funding commitments of funds for Phases I and II will be eligible for the STTR Fast Track and may receive matching interim gap funding (between Phases I and II) as well as matching Phase II funds. Phase II awards are for up to $500,000, not to exceed two years in execution. In Phase III the small business/research institution teams are expected to use private capital or non-STTR government funds, or both, to commercialize the results of their STTR-sponsored R&D.

By law, federal agencies with an extramural R&D budget exceeding $1 billion must participate in STTR. The STTR set-aside percentage remains 0.15 percent for FY97. The DoD STTR Solicitation is released during the second quarter of each year. Army STTR topics are broad in scope, are based on critical technologies reflecting the Army's mission, and emphasize potential commercialization/dual-use applications. Eleven Army topics were included in the FY96 STTR Solicitation. They were carefully developed so as to represent the interests of all Army R&D organizations.