1 / 17

Competing in the Federal SBIR STTR Programs: SBIR

Presenter Randy W. Dipner Meeting the Challenge, Inc.

buck
Download Presentation

Competing in the Federal SBIR STTR Programs: SBIR

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

    1. Competing in the Federal SBIR & STTR Programs: SBIR/STTR Budgeting Winning Federal R&D Funding Cody, WY June 2, 2004

    2. Presenter Randy W. Dipner Meeting the Challenge, Inc. – Colorado Springs, CO Phone: 719-444-0252 x105; Fax: 719-444-0269 Cell: 719-510-2822; e-mail: dipner@mtc-inc.com

    3. Creating a Budget A Necessary Evil for Technologists

    4. Comprehensive SBIR Services for High-Tech Firms Nationwide Direct Costs Staff Name, hours, unburdened rate (annual salary/2080 hrs.) Subcontractors and consultants Name, hours, rate Letter of commitment Equipment Cost greater than $5,000—typically limited Dedicated to the project Materiel/Supplies Expendables Travel Trip to visit project manager (depends on agency)

    5. Comprehensive SBIR Services for High-Tech Firms Nationwide Start with an Estimate of Labor Labor is typically the major cost Develop a task list and schedule Produce a staffing plan linked to the task plan Estimate direct labor costs Unburdened Rate = Annual Salary / 2080 Hours Direct Labor Cost = Unburdened Rate x Direct Hours

    6. Comprehensive SBIR Services for High-Tech Firms Nationwide Task List and Schedule

    7. Comprehensive SBIR Services for High-Tech Firms Nationwide Staffing Plan

    8. Comprehensive SBIR Services for High-Tech Firms Nationwide Fringe Benefit Costs Typically applied as a percentage to direct labor costs Typical small business fringe rate includes: Leave benefit (120 vacation hours + 80 holiday hours) 10% Federally mandated benefits (FICA, FUTA/SUTA, etc.) 10% Retirement (e.g. SEP) 5% Medical insurance ($300 per month) 7% Total 32%

    9. Comprehensive SBIR Services for High-Tech Firms Nationwide Other Direct Costs (ODCs) Typical allowable ODCs Travel Consultants/subcontractors Materials and supplies Some equipment ODC areas for concern Equipment that benefits the company rather than the project Excessive (or unrelated) travel Consultant/subcontract costs greater than 1/3 of project

    10. Comprehensive SBIR Services for High-Tech Firms Nationwide G&A/Indirect Costs There are many ways to organize indirect costs Include all indirect (including fringe) in a single indirect rate Create separate pools for fringe/facilities/overhead support/G&A Apply indirect rate to a subset of direct costs Typical facility costs Office and equipment leases, depreciation of capital equipment, expendable office supplies Typical facility rates – 10% and up Typical indirect items Marketing, accounting, management, legal Typical indirect rates – 25% and up Must provide justification for rates used

    11. Comprehensive SBIR Services for High-Tech Firms Nationwide Unallowable Indirect Costs Advertising (but advertising for staff is allowable) Trade shows (but professional meetings are OK) Patent fees (but some legal fees are allowable) Best advice is to work with an accountant that understands (and has experience with) federal government accounting and contracting rules What happens to disallowed items During negotiations – dollars are lost During an audit – dollars are paid back to government

    12. Comprehensive SBIR Services for High-Tech Firms Nationwide Profit/Fee Typically 6%-8% Check with your agency on this What happens to excess fee disallowed during negotiations 12% bid - 8% allowed = 4% left on the table Profit/fee can be used to pay for items otherwise unallowable

    13. Comprehensive SBIR Services for High-Tech Firms Nationwide Simple Phase I Budget

    14. Comprehensive SBIR Services for High-Tech Firms Nationwide Agency Forms DOD online form NIH modular budget form DOE NASA USDA EPA

    15. Comprehensive SBIR Services for High-Tech Firms Nationwide Final Thoughts on Budget Budget rules vary from agency to agency An “acceptable” accounting system may be required for Phase II Electronic submission is required by some agencies Cost is not a factor if the guidelines are followed—but proper budgeting is critical for your business Bidding $98,995 vs. $100,000 will not matter, but a realistic combination of direct, indirect, and fee is important NIH accepts budgets exceeding $100,000 for Phase I

    16. Comprehensive SBIR Services for High-Tech Firms Nationwide Accounting Considerations Standards Indirect pools and allocation Job costing Accurate recording of hours Paid/unpaid overtime Payment Phase I – fixed price vehicle Periodic payments May be 4 months before first dollars arrive Phase II – cost type vehicle Reimbursement of costs plus indirects and fee

    17. Comprehensive SBIR Services for High-Tech Firms Nationwide Questions

More Related