Gail & Jim Greenwood, Greenwood Consulting Group, Inc.

Copyright © 2003 by Greenwood Consulting Group, Inc.

Phase 1 of an SBIR/STTR project typically is a feasibility study. The idea is to pursue an innovative solution to a problem or opportunity in which there is a chance of failure because you don’t know if your solution will work or not. This is what justifies the Federal government putting SBIR/STTR dollars into the project—they are reducing your risk of exploring this innovative (but uncertain) solution to a problem or opportunity. Proving feasibility in Phase 1 is a prerequisite to receiving Phase 2 funding, so feasibility is a critical aspect of the SBIR/STTR program.

"If feasibility is so darn important," you ask, "then why isn’t there a section of the Phase 1 proposal dedicated to the subject?" That’s a good question. To our knowledge, none of the 10 SBIR awarding agencies and the five STTR agencies ask you to include a "feasibility issue and analysis" section in your proposal. So where do you put the feasibility discussion in your proposal?

The answer is that feasibility is not one issue that gets plugged into a single section of a Phase 1 proposal. It is the main purpose of the Phase 1 project and therefore needs to be woven into the entire proposal. Here are some places where feasibility should be discussed in your proposal:

The abstract. Show the reviewer from the start that you are focused on feasibility by including a statement in the abstract along the lines of "The goal of this Phase 1 project is to prove the feasibility of…"

Identification/Significance section. After you state the problem or opportunity and its importance, you should then explain briefly how your innovative solution will solve the problem, and how you need to go about proving feasibility.

Objectives. Note that many of the agencies state in their instructions that this section of the proposal should include "the questions that must be answered in order to determine feasibility."

Workplan. If you have indicated the questions you must answer to prove feasibility (in the objectives section), then the workplan can now focus on the specific tasks that you must accomplish to answer those questions. This section should also include a task in which you take all the data and information gathered in the Phase 1 effort, compare it against your feasibility criteria, and conclude whether feasibility has been proven.

Related R&D section. You may want to talk about the research done by yourself or others that offers insight into why your approach might be feasible, while making sure that you distinguish between what you or others have done versus what you plan to do in this project. In other words, you don’t want to leave the impression with the reviewer that you or someone else already has proven the feasibility of your innovation in this application.

Future R&D section. Summarize how the feasibility effort in Phase 1 sets the stage for the Phase 2 work that you envision.

Key Personnel section. Demonstrate that you have the right personnel to conduct the Phase 1 feasibility study. Ditto for any consultants or subcontractors on the project.

Facilities and Equipment section. Convince the reviewer that you own or otherwise have secured access to the resources that are needed to prove feasibility.

Commercialization section. Explain that proof of technical feasibility in Phase 1 represents a critical milestone in your commercialization process, including your ability to raise capital. Be sure to distinguish, both in your mind and in that of the reviewer, the issue of technical feasibility (which is the goal of Phase 1) versus market feasibility (which comes through your own efforts).

The bottom line is that the whole Phase 1 proposal should be written around the feasibility issue that you are addressing. This means that you have to be very clear in your mind, before you ever start drafting the Phase 1 proposal, what is the technical feasibility issue in your project, what research effort will allow you to determine if feasibility is achieved, and how you can quantitatively measure your success in proving feasibility. If you get a clear understanding of this first, then weaving the feasibility issue throughout your Phase 1 proposal will be much easier. You also will find that this helps you effectively convey to the reviewer the feasibility issue and the research required to prove feasibility.