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Home › Topics › Early Funding › Starting an SBIR/STTR Proposal

Grants vs. Contracts

Topics Early Funding Starting an SBIR/STTR Proposal Grants vs. Contracts

The NIH defines what products they want for contract proposals in contrast to grants, which are investigator-initiated and based on the investigator’s interests. The NIH sets aside funds for contracts to achieve specific goals. You apply for a contract if it fits your research and interests. Another difference between contracts and grants is that with the contract, the government purchases and owns the product, and with grants, the business owns the product and must find customers.

Contact the contracting officer before submitting a proposal to let them know of your interest. The NIH only does SBIR contracts, not STTR contracts. Unlike SBIR grants, which can be submitted three times per year, there is only one receipt date per year for contracts. If you receive a contract, deliverables (goals met) and quarterly progress reports are required. The time involved to complete a contract is similar to that of a grant.

Grant and Contract Solicitations

Omnibus Solicitations and Other Funding Opportunity Announcements (FOAs)

For all SBIR/STTR funding, whether a grant or a contract, you must respond to a solicitation where the government agency describes what it wants. You supply the reference number for that solicitation as part of your application. Find the solicitations and learn about the Health and Human Services (HHS) SBIR/STTR funding opportunities through the Omnibus Solicitation, which is a funding opportunity announcement (FOA). The Omnibus Solicitation describes funding opportunities for small businesses that have the technical ability to do research meeting the agency’s mission. Be sure to read the full announcement, especially Section IV, Application and Submission Information. There are versions for SBIR and STTR and for whether or not a clinical trial is required or not allowed. There are three types of initiatives:

  • Parent Announcements – These are investigator-initiated and unsolicited. They are posted for three years at a time and often renewed. Standard receipt dates apply.
  • Program Announcements – These highlight an area of focus, usually posted for three years and using standard receipt dates. Apply if it fits your area of interest. Special announcements called Notices of Special Interest (NOSIs) are increasingly being used instead.
  • Requests for Applications (RFAs) – These grants are given to advance a particular area of research deemed important by an agency or group of agencies. Money is set aside for funding the RFAs. They often have different due dates from regular grants or contracts. They have a narrow scope, set-aside funds, and usually a single receipt date. They may be a one-time opportunity.

Contract Solicitation

For contracts, a separate document is published once per year around October. View current contract topics.

Other SBIR/STTR funding and grant opportunities can be found by searching on Grants.gov.

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Topic Home Expand All
SBIR/STTR: A Major Source of Seed Money
9 Articles
Seed Funding Introduction
Intro to SBIR/STTR
SBIR/STTR Program Phases
Benefits of SBIRs/STTRs Beyond Money
Distinctions Between SBIR and STTR
Government Agencies That Fund SBIRs/STTRs
Tips from Entrepreneurs on Seed Money
Case Example: Before Starting an SBIR Proposal
Resources on Seed Money
Starting an SBIR/STTR Proposal
6 Articles
Steps in the SBIR/STTR Application Process
Getting Started with an SBIR: Tips & FAQs
Which Agency and Program Official to Contact
Grants vs. Contracts
Case Example: Getting Started with an NIH SBIR
Resources to Get Started with SBIR/STTR Funding
Writing and Submitting SBIR/STTR Proposals
4 Articles
Programs to Help with Proposal Writing
Case Example: Applicant Assistance & Technical and Business Assistance Programs
Tips and Resources on Proposal Writing
Proposal Submission
Peer Review Process
4 Articles
The Review Process
Proposal Review Details
Case Example: Post Proposal Review
Proposals Funded and Resubmission
Return to Early Funding
End Resources

This project is funded by National Institute of General Medical Sciences (Grants 1R43 GM131458-01 & 2R GM131458-02)


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