Homeland Security reaches out for small-business contracts

The Homeland Security Department's science and technology division on Friday announced a program to fund security innovations by small businesses.

The Small Business Innovation Research (SBIR) program is limited to U.S. companies with 500 or fewer employees, and the grants will provide $100,000 for six months of research into the scientific, technical and commercial merits behind a concept. If their ideas are successful, recipients of the grants then may apply for two-year, $750,000 awards to develop prototypes.

The department is seeking proposals for applications in information technology, chemical and biological defense, and marine security, including the call for a computer-modeling tool to assess the vulnerability of U.S. infrastructure, new chemical and biological sensors, and a ship-compartment inspection device.

"Our goal with the SBIR program is to benefit from the nation's small businesses in the research and development arena, a critical source of innovation," said Kevin Boshears, director of the department's office of small and disadvantaged business utilization. "Like our small-business procurement program, the SBIR program makes small-business participation part of the department's culture."

Dave McCurdy, president of the Electronic Industries Alliance, welcomed the announcement, but cautioned that small businesses traditionally face costly and time-consuming hurdles within the federal procurement process.

"Doing business with the Department of Homeland Security is a challenge," McCurdy said, noting that businesses with a history of government contracting have a distinct advantage and that usually 18 to 24 months of work are required to establish a relationship with an agency.

"The good news is they are spending money and awarding contracts," McCurdy said. "In the long term, [the process] will pay off" for EIA companies, who he said could provide "real value" to the government.

Lorraine Lavet, the American Economic Association's chief operating officer, said small business interest in the program will depend on whether or not companies will be granted intellectual property protections over their inventions. Lavet said that in the past, SBIR has granted contractors more intellectual property control.

"[SBIR]is a very attractive program," Lavet said. "There are fewer strings attached, and many of our members credit the creation of their businesses around it."