The WCSSE The WCSSE Phase 2 Request for ProposalsPhase 2 Request for Proposals

Bidders ConferenceBidders Conference

February 18, 2010 at Tech ColumbusFebruary 18, 2010 at Tech ColumbusBill VerDuin, Executive DirectorBill VerDuin, Executive Director

WCSSE Goals• Generate jobs, new industrial/manufacturing

capacities, and investment • Produce sensors or products incorporating sensors for

Automotive, Advanced Energy, Aerospace, Biomedical, Advanced Materials, Agriculture/Food Processing.

• Make Ohio the leader in:– Colleges/universities/non-profits supporting sensor

industry commercialization needs– Providing capital to colleges/universities/ non-profits

for commercialization, research, and education

Funding Objectives• Capital improvements at Ohio

colleges/universities/non-profit research institutions• Technology commercialization within 3 yr of award• Significant economic impact in Ohio

– job creation, – public/private investment– company creation/expansion

• Ongoing applied research, development, demonstration and education/training programs

• Industry and university-based clusters of research, development, commercialization and application capabilities, and infrastructure, especially the NE Ohio manufacturing cluster

The Proposing Team• Lead Applicant: accredited Ohio college/university or

non-profit public/private research organization

• One or more Ohio companies– breadth of technology and market scope to achieve significant

scale– products are sensors, sensor systems or products of larger

scope for which the innovative sensor systems technology provides clear functional differentiation

Funding• Total available: $14.4 M (capital) and $2.6 M (operating)• Proposals expected to be $1 to $3 M total grant funding; operating

funds not to exceed 25% or $500 K, whichever is less. • Capital funds to acquire/renovate/construct facilities, buy

equipment for facilities owned by Ohio state-supported/assisted college or Ohio non-profit research organization that provides use of the facilities to collaborating Ohio college

• Cost share requirements: – Capital: (2) cost share dollars for each grant dollar– Operating: (1) cost share dollar for each grant dollar

• Indirect costs may not exceed 20% of total direct operating funds• If organization has published indirect cost rate, un-recovered

Indirect Costs (beyond 20%) may be used as Cost Share• If Lead Applicant doesn’t have federally negotiated/approved

Indirect Cost rate, Lead Applicant is limited to 20% of its Cost Shared direct costs as Cost Shared Indirect Costs

Cost Share• Preference for discretionary, unrestricted, and unallocated cash

Cost Share; cash must appear on the financial records of the Lead Applicant

• Must be documented on budget forms and narrative, and in letter from each organization contributing Cost Share signed by representative authorized to commit the Cost Share

• Must be allowable costs that are verifiable and auditable and consistent with the Cost Share guidelines; may not be committed for other award; must be applied during project period

• Lead Applicant responsible for Cost Share commitment and will be held to the Cost Share ratio proposed; Cost Share may be provided by any/all collaborators

Proposal Evaluation Criteria

• Quality of the technical approach (15%)

• Realism of the commercialization plan (25%)

• Personnel and team qualifications (15%)

– Technical, business and management

• Economic benefit and value to Ohio (25%)

• Long-term use of the capital equipment (10%)

– Educational and future product development

• Realism and defensibility of the budget (10%)

Technical Approach

– Work plan and schedule

• Personnel, cost and level of effort by task

– Competitive advantage and IP status

Commercialization Plan

– Specific product being developed

– Market assessment and entry plan

– Business plan

• Resources required and sources

Qualifications– Brief bio’s of the key project participants– Stress experience related to the technology,

commercialization of products and project management

Economic Benefit– Job and revenue creation (in Ohio)

• From the product being developed• From new end-use sales due to the product

– Timeframes• During the project period• One year after scheduled project completion (funded portion)• Three years after scheduled project completion (funded portion)

– Value to Ohio• Use of Ohio supply chain• Alignment with TFP & WCSSE objectives

Budget

– Valuation method for the cost share

– Budget forms prescribed

– Labor value qualified

– Capital expenses detailed and explained• Brief narrative to support budget forms

Future Use of the Equipment– Additional product development

– Educational • Curriculum toward degreed programs

• Workforce training

Commitment Letters

– All cost share providers must provide a letter of commitment for the cost share proposed

– All collaborators must restate their commitment to their roles in the project

• More than “interest”

• “If this happens, we will do this”

Fundable Project Requirements

• Leads to a product that has a compelling commercialization opportunity

• Clear and reasonable development and commercialization plan

• Commercialization partners are identified and involved

• Market understanding and entry strategy are clear

• End-user involvement– Requirements defined

– Commitment to evaluate product with intent to purchase

The Review Process

• External Review• Approval by WCSSE Board• WCSSE and Evaluators may assess:

- Past performance of Lead Applicant and its team;

- Proposal’s strategic fit with prior Third Frontier investments, other State investments, Development’s strategies, and the Ohio Board of Regent’s strategies; and,

- Factual business intelligence relevant to describing the Ohio economic development opportunity

Things to avoid

• Failure to consider/involve OTF grantees when it makes sense• Silo building / Exclusion of professional rivals• Involving OTF grantees when it doesn’t add value• Window dressing and a cast of thousands• Hollow letters of support• Disengaged commercial partners and boards• Meaningless partnerships• Cobbling together individual projects• Not viewing Cost Share as a true major funding element• Not addressing Cost Share specifics in the budget narrative• Missing letters of commitment• “Related” Cost Share• Assuming the highest cost share) bidder wins (The proposed cost

share ratio will be a contractual requirement)

Dates• RFP Released February 1, 2010

• Bidders Conference: February 18, 2010, 1:00 PM, Tech Columbus

• Letters of Intent due by: 2:00 PM February 22, 2010

• Invitations to Propose to selected Lead Applicants approximately March 15, 2010

• Written Questions due by: 2:00 PM April 12, 2010

• Proposals due by 2:00 PM: April 23, 2010

• Review and Award approximately June, 2010

WCSSE Goals• Generate jobs, new industrial/manufacturing

capacities, and investment • Produce sensors or products incorporating sensors for

industrial clusters: Automotive, Advanced Energy, Aerospace, Biomedical, Advanced Materials and Agriculture/Food Processing.

• Make Ohio the leader in:– Colleges/universities/non-profits supporting sensor

industry commercialization needs– Providing capital to colleges/universities/ non-profits

for commercialization, research, and education

Fundable Project Requirements

• Leads to a product that has a compelling commercialization opportunity

• Clear and reasonable development and commercialization plan

• Commercialization partners are identified and involved

• Market understanding and entry strategy are clear

• End-user involvement– Requirements defined

– Commitment to evaluate product with intent to purchase