here is PROOF Schott Can Receive Money......
Called sub contracting.....
google sbir and sttr for full report.....say goodbye to half allowed
The greatest difference between the SBIR and STTR mechanisms is the amount of money in each program, and the agencies do not have the discretion to move money from one pot to the other. But there are other differences that begin to move the two mechanisms into different directions. One huge difference is in how the mechanisms are set up to interact with universities and other non-profit research institutions. In the early days of SBIR, it was recognized that small business might lack some of the resources they would need to complete their research and development. So
Be prepared
Eligibility is actually assessed at the time of award, not at the time of application. So it’s not a problem if a company submits an application and doesn’t meet all the eligibility requirements at the time. But anticipate changes and have a plan for meeting the requirements when the award is given.
a provision was made to allow small businesses to work with others in the form of consulting agreements or subcontracts with other companies, individuals or even universities.
But then Congress began to realize that a great deal of innovation was taking place at universities that were developing intellectual property. So the government wanted to create some incentives that would encourage small businesses to engage more with non-profit research institutions, so some of that technology could move into the small business arena.
That’s when Congress established the STTR program, and that defines the primary difference between the two programs: Where SBIR allows collaboration, STTR requires it. And that collaboration has to be with what's defined as a non-profit research institution, whether that’s a university, a hospital, a clinic or something else.
There are other critical differences between SBIR and STTR, including how those mechanisms address subcontracting and how they define a principal investigator. Subcontracting
It is important to note the difference between a subcontract and a consultant, both of which are allowed under SBIR rules. A consultant arrangement is one in which the small business hires and pays an individual for his or her advice. A subcontractor arrangement is one in which the small business hires and pays an organization or an institution to do work in that institution using that institution’s personnel, materials costs and indirect costs for overhead. In an SBIR the small business has the ability to subcontract up to one-third of the work in phase 1 and up to 50 percent of the work in phase 2. Under the prior example of the NIH phase 1 project with a $150,000 budget, the SBIR applicant business would be able to spend up to $50,000 on a subcontract or consultant. In phase 2 of a $1 million project, the company could subcontract up to $500,000. That can make a university a significant collaborator, even when the grant applicant is a small business.
Things are different in an STTR, because in an STTR collaboration is required by law between the small-business applicant and a non-profit research institution, and that collaboration is always in the form of a subcontract. In this case the small business has to do at least 40 percent of the work and the nonprofitresearch institution at least 30 percent of the work. That leaves no more than 30 percent of the work left for the small business, the research institution or others. Using the previous $150,000 phase 1 NIH example, the small business would have to spend at least $60,000 on the work and the nonprofit research institution would have to spend $45,000, leaving up to $45,000 in work that the company or the institution can do themselves or spend on a subcontract or consultant.
Definitions
Employment status: Where one works.
Percentage effort: What one does while at work.
Principalinvestigator rules
Every SBIR and STTR award is required to have a lead scientist, engineer or other technical person as a principle investigator, but the way the principle investigator is used differs between the two mechanisms. In an SBIR, the principle investigator must be employed at least 51 percent of the time at the small business, at the time of award and for the duration of the award. In addition, the principal investigator must have at least 10 percent effort on the specific award project.If a principle investigator works anywhere else, he or she must take a leave of absence for the duration of the award in order for the applicant small business to accept the award. There have been cases where a researcher maintained his or her full-time university appointment (100 percent) and assumed a principle investigator role in an SBIR (at least 51 percent). But here’s the problem: One cannot be more than 100 percent employed.
An STTR is a little bit different because it requires acollaboration between a small business and a non- profit research institution. Because of that requirement, an STTR allows a principle investigator to come from either the small business or the academic institution. And while the 10 percent effort is still required, the principal investigator is not required to take a leave of absence from a research institution and move over to the small business.
