SBIR Proposal Writing Basics: Prove Feasibility in the Middle of Phase I

Gail & Jim Greenwood, Greenwood Consulting Group, Inc.

Copyright © 2005 by Greenwood Consulting Group, Inc.

So when are you supposed to prove the feasibility of your innovation in an SBIR or STTR project?  The easy answer is that the proof of technical feasibility should be achieved in the Phase I project, since that is the main purpose of Phase I.  The Phase I proposal should include a definition of the technical risk that must be overcome, a measure of success in doing so, and a justification of why that measure is appropriate.  For further discussion on feasibility definition/quantification/justification, see our “Phase I as a Feasibility Study” article we wrote for the SBIR Alerting Service in 1999 on our website (http://g-jgreenwood.home.att.net) or in the Alerting Service archives.

A more useful answer to the “when do you prove feasibility” question is to consider proving it before the end of the Phase I project. There are several reasons why feasibility might be proven part way through Phase I, rather than at the very end of the project. 

First, some agencies only accept Phase II proposals from companies that are invited to submit them.  Most notable among these is the Dept of Defense (DOD), which is by far the largest SBIR/STTR agency.  The invitation process begins part way through the Phase I effort, and includes consideration of how feasible your answer is to solving DOD’s problem.  Therefore, not concluding feasibility until the end of the Phase I project may hurt your chances of getting a Phase II invitation.

Second, many DOD components have “Fast Track” programs in which Phase I winners can by pass the invitation process and have a very high chance of a Phase II award if they can bring outside funds (e.g., from industry, or a DOD acquisition program) to their Phase II project.  The process of applying for Fast Track starts part way through the Phase I project, so it can be important to have proven feasibility so you can prepare your Fast Track application.  Further, proof of feasibility may be critical to your ability to attract the necessary third party funding.

Third, the sooner you know that your innovation is feasible, the quicker you can complete strategic partnerships, secure outside funding sources, and identify subcontractors for the Phase II project.  It takes time to create these important relationships, and it may be hard to secure them until you have proven feasibility—both are reasons why it can be advantageous to prove feasibility earlier in Phase I rather than later.

Finally, if your innovation proves to be infeasible, you would rather know this as early as possible in the Phase I project.  This might give you, for example, an opportunity to redirect the remainder of the Phase I effort—but that’s a topic for a future proposal writing tip.

Several important footnotes to this discussion:

 a.  We are not implying that you necessarily have a four or five month Phase I SBIR project (vs the normal six month term).  There likely will still be plenty of tasks to be performed after you conclude feasibility, such as completing the research and data collection and preparing the final report.

 b.  However, some agencies would like to see Phase I projects finished in less than six months.  Both the Special Operations Command (SOCOM) in the DOD and the Homeland Security Advanced Research Projects Agency (HSARPA) have problems they’d like solved “yesterday” so proposing an abbreviated Phase I project schedule may be very appealing to them.

 c.  Several DOD components (namely Army, Navy and Missile Defense Organization) have Phase I options in their SBIR programs.  These options can provide additional funding to Phase I winners.  However, these DOD components do not exercise a Phase I option until they have selected the firm for a Phase II award.  Therefore, proof of feasibility cannot be postponed until the option period, but must be done during the base SBIR project.

 d.  While your goal may be to prove feasibility in less than six months, Phase I projects involve high risk research and therefore may not go according to plan.  Some projects even require “no cost extensions” beyond the usual term. 

 e.  Never sacrifice the quality of a Phase I project just to try to conclude feasibility in an abbreviated period.  Shoddy work or incomplete data likely will not convince agency representatives and proposal reviewers that you have proven feasibility, and may leave a negative impression about the quality of your work.