*Note: If the Lead Controller or a direct family member has a financial interest in the company, including consulting contracts, the disclosure of a conflict of interest must be presented to the Head of Department and vice-chancellor of research and must also be included on the internal processing form. It should be noted that if pi is the prime contractor of the small business, the requirement is that the IP of the small business is at least 51% of the full-time in the company. Therefore, in addition to resolving conflicts of interest, the IP must also have an authorized leave of absence from the university for that period and an alternative IP for the proposed subcontract. When it comes to the STTR program, subcontracting is mandatory. A STTR is defined as a collaboration between the applicant for a small business and a not-for-profit research organization, usually a federal university or laboratory. The STTR award is always given to the small business, with the non-profit partner being used as a subcontractor. Therefore, a university professor who consults will not qualify as a necessary subcontractor for an STTR project. While STTR requires it to be a subcontractor and a subcontractor (entity), there is greater flexibility for a SBIR, which can allocate up to 33% of a Phase I project and up to 50% of a Phase II project to a consultant, subcontractor, or both. When deciding to include a consultant or subcontractor in the team, there are several thoughts: so it is worth thinking carefully and considering whether you include a consultant or subcontractor in your SBIR/STTR team.
You must comply with the Agency`s requirements as to how and where you include a consultant or subcontractor in your offer. Such cooperation may include research subcontracts or advisory contracts. And the Abt of Agriculture (USDA) says, “The involvement of the university, government, or other outside personnel in the planning and research phases of the project as consultants or through subcontracting agreements is permissible and may be particularly useful for small businesses that have not previously received federal research awards. But at DOD, the calculation is done after the profit/tax has been withdrawn from the total amount….
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