Hi Teri –
Do you know the awarding agency? For example, the NIH describes its “primary employment rule,” as follows: “Primary employment means that more than one half of the PD/PI's time is spent in the employ of the SBC at the time
of award and during the conduct of the proposed project.” If the faculty member is a full-time employee of the University, he wouldn’t qualify. I wouldn’t think salary allocations come into play (though no one’s raised that argument to me before).
You’ll want to look at the agency at issue and the solicitation to see how that specific agency applies their rule. SBIR.gov provides: “The principal investigator has to meet certain eligibility requirements on an SBIR/STTR
proposal. For SBIR projects, the PI must be “primarily employed” by the applicant small business during the SBIR award period. The agencies don’t agree on all the specifics as to what “primarily employed” means, but all do agree that this means the PI cannot
be full time employed elsewhere during the SBIR award period. Some agencies then go on to add additional stipulations, such as the PI cannot work more than 19.6 hours elsewhere, or has to devote a minimum number of hours to the SBIR program to be confirmed
by the hours shown for the PI on the budget form. A careful read of the agency’s solicitation will help ensure that you stay in compliance with the eligibility requirements for the PI.” (Source).
Several institutions also have policies designed to prevent conflict that may prevent a faculty member from serving as the PI on an award to some other entity (such as the SBC) if it overlaps with university-research. I
don’t know if your institution does, but it’s another factor, independent of the agency regulations, that might be worth examining.
Feel free to ping me directly if you like. Good luck!
Cheers,
James
James Cresswell, JD
Assistant Director, Contracts
Office of Sponsored Projects
Yale University
25 Science Park - 3rd Floor, 150 Munson St
Mailing Address:
P.O. Box 208327
New Haven CT 06520-8327
Voice: 203-737-1171
Not authorized to practice law on behalf of Yale University. Communications are not privileged.
From: xxxxxx@lists.healthresearch.org <xxxxxx@lists.healthresearch.org>
On Behalf Of MaryTherese Kocevar
Sent: Thursday, April 27, 2023 2:11 PM
To: xxxxxx@lists.healthresearch.org
Cc: 'xxxxxx@uakron.edu' <xxxxxx@uakron.edu>
Subject: [RESADM-L] SBIR Question
Good Afternoon,
I have a question regarding a SBIR grant. The rules state the PI must be 51% employed by the company. We have a PI who applied for the grant through his company and is listed as PI at 51% employed by the company for the SBIR grant
application. He is fully employed at the institution on a 9 month base salary. His argument is did work 51% for the company because he worked summer (when he is not on payroll) and overtime and holidays. Thus stating he spent 51% effort at the company vs.
the university.
My gut tells me this is absolutely wrong as in research work charged to grants must be prorated over the total hours worked which would include weekends and holidays. However, I do not have much experience with SBIRs. Has anyone dealt
with such an issue? Can you offer advice?
Thank you.
Sincerely,
Teri Kocevar
Director, Sponsored Programs & Research Services
Phone: (216)687-3675
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