A Budget Justification for the cost estimates included in the budget is an application requirement.  Applicants should identify, itemize, and justify the costs requested as detailed in the table below.  If the application includes a sub-award, a separate budget justification will need to be submitted for that budget as well.  If using the DOE SBIR/STTR provided template, insert "N/A" or "Not Applicable" for any categories on the budget justification form for which you do not have expenses. Note that applicants may use their own format as long as the required information below is provided.

Budget Justification Required Information

Budget Category 

Requirements/Instructions 

A/B. Senior/Key Person & Other Personnel 

  • Indicate the total amount for this category. 
  • Identify each position (Role in Project) to be supported under the proposed award, including the name of the PI and other Key Personnel.  Other personnel shall be identified by name to the extent possible. 
  • Briefly justify the need for each individual/position proposed.   
  • State the number of hours to be expended, and the hourly labor rate, for each position proposed.   
  • Identify the basis for the labor rate(s) proposed and explain why it is reasonable for the market (e.g., education, skills, experience, salary survey, etc.).  The Bureau of Labor Statistics is an excellent source for providing documentation concerning salary rates.  The website is provided at right. 
  • If Fringe Benefits are proposed separately, indicate the basis for the rate used or the computation applied, including the types of benefits to be provided.  If using a rate or computation protocol approved by a Federal agency, provide a copy of the agreement.  

C. Equipment 

  • Indicate the total amount for this category. 
  • Briefly itemize and justify the need for each item of equipment to be purchased. (Note: Equipment is defined as any standalone item that does not require integration to work and has a per unit cost of $5000 or more.  Items that do not meet this criteria should be included in section F.1 Materials and Supplies). 
  • Indicate the estimated unit cost for each item to be purchased.  
  • Provide the basis for the cost estimates (e.g., vendor quotes, catalog prices, invoices, past experience purchasing similar or like items, etc.).  In addition to the basis for cost estimates, please provide documentation to support the cost for any equipment with a purchase price of $20,000 or more per unit).  

D. Travel 

  • Indicate the total amount for this category. 
  • Note, domestic travel includes Canada, Mexico, and US possessions.  
  • Briefly justify the need for all proposed travel.  
  • Indicate the estimated number of travelers, number of trips, dates, points of origin and destination.  
  • For each trip, itemize the transportation and/or subsistence costs for each individual traveling.  
  • Specify the basis for computation of each type of travel expense (e.g., current airline ticket quotes, past trips of a similar nature, federal government or organizational travel policy) 
  • Use the data provided by the U.S. General Services Administration for fore determining per diem rates for lodging, meals, and incidentals for a specific location.  The GSA website is provided at right.   
  • Airfare should be estimated at the lowest available price. 
  • Pursuant to the Fly America Act, ALL air travel and cargo transportation services funded by the federal government are required to use a "U.S. flag" air carrier service. For more information on this policy, see the website at right. 
  • Except in rare and unique circumstances, Foreign Travel Costs are not allowable costs in performance of SBIR/STTR awards.  
  • If the proposed application includes foreign travel, indicate the total funds requested for foreign travel. Foreign travel includes any travel outside of North America and/or US possessions.  
  • In the budget justification section, include the purpose, destination, dates of travel (if known) and number of individuals for each trip. If the dates of travel are not known, specify estimated length of trip (e.g., 3 days). 

F. Other Direct Costs 

 

F.1. Materials & Supplies 

  • Indicate the total amount for this category 
  • Itemize materials and supplies estimates by type/nature of expense.  (Note: Materials and supplies should not include machining and fabrication costs.  Those costs should be included in section F.7 Alterations and renovations e.g. machining and fabrication). 
  • Provide the basis for cost estimates or computations (e.g., vendor quotes, prior purchase of similar or like items, etc.)  

F.2. Publication Costs 

  • Indicate the total amount for this category. 
  • Itemize publication cost estimates by type/nature of expense. 
  • Provide the basis for cost estimates or computations (e.g., vendor quotes, prior purchase of similar or like items, etc.). 

F.3. Consultant Services 

  • Indicate the total amount for this category. 
  • Identify the individual/firm proposed and the professional services to be provided. 
  • Provide a brief justification for the use of the party selected. 
  • State the number of hours to be devoted to the project, and the hourly rate to be charged to this award.  (Note:  Consultant documentation should include a signed letter from the consultant confirming his/her agreement to perform the labor hours proposed, at the payment rate listed, and should provide verification or a statement that this rate is consistent with, or more favorable than, recent billings for similar work, e.g., copies of paid invoices.) 

F.4. ADP/Computer Services 

  • Indicate the total amount for this category.  
  • Briefly itemize and justify the need for funds to support computer services. 
  • Provide the basis for cost estimates or computations (e.g., vendor quotes, prior purchase of similar or like services, etc.). 

F.5. Subawards/Consortium/ Contractual/RI Costs 

  • Indicate the total amount for this category 
  • Describe the support and/or the services to be acquired. 
  • Provide a brief justification for the use of the research institution or other subcontractor selected. 
  • State the amounts of time to be devoted to the project, and the costs that will be charged to this award. 
  • For professional services contracts, state the number of hours to be devoted to the project, and the costs that will be charged to this award. 
  • A budget and budget support documentation, formatted in the same or similar manner as your own, must be obtained from the research institution or other subcontractors.  Submit the research institution or other subcontractor documentation together with your written review comments confirming your determination of the reasonableness and acceptability of each element of the proposed budget. 
  • Also, if the research institution is a DOE National Laboratory, DOE Order O 481.1C “WORK FOR OTHERS (NON-DEPARTMENT OF ENERGY FUNDED WORK)” Section 4.c. requires that a determination be made by and certified in writing by the laboratory’s cognizant DOE Contracting Officer indicating that the laboratory is in compliance with the cited order.  Generally the DOE Contracting Officer will issue a letter containing their determination.  This process can take several weeks.  It is suggested that you contact the laboratory and begin the approval process as soon as possible. 

F.6.Equipment or Facility Rental/User Fees 

  • Indicate the total amount for this category.  
  • Briefly itemize and justify the need for each item of equipment or facility to be rented or otherwise utilized. 
  • Indicate the estimated unit cost (rent or user fee) for each item of equipment or facility. 
  • Provide the basis for the cost estimates (e.g., vendor quotes, catalog prices, invoices, past experience with similar or like items or facilities, etc.).   

F.7. Alterations & renovations (machining & fabrication) 

  • Indicate the total amount for this category.  
  • List items by major type and provide justification for the proposed cost (e.g., vendor quotes, prior purchase of similar or like items, etc.). 

F.8. Other/Miscellaneous 

  • Indicate the total amount for this category.  
  • List any other proposed costs that were not captured above and include the basis for the cost estimates (e.g., vendor quotes, catalog prices, invoices, past experience with similar or like items or facilities, etc.).   

H. Indirect Costs 

  • Indicate the total amount for this category.   
  • State the rate(s) and base(s) proposed in your budget.  The base should be described (for example, “Total Direct Costs”) and listed as a dollar amount. 
  • Are the rate(s) and base(s) provided above approved by a Federal agency for the period of performance proposed for this award? 
  • If yes, identify the source of approval and provide a copy of the agreement. 
  • If no, state whether the amount requested is based on a rate(s) and base(s) which have been accepted for estimating purposes by DOE or another Federal agency for the period of performance for this award.  If so, identify the agency, and office, and provide any correspondence indicating acceptance and/or contact information for the agency.  (Note:  DOE will have to determine whether this is a sufficient basis for accepting your proposed rate(s) and base(s).  More information may be required, possibly including the information requested under 3. below.) 
  • If the rate(s) and base(s) proposed in your budget are not approved by a Federal Agency or accepted by a Federal Agency for estimating purposes, state the basis for the amount requested.  Provide documentation supporting the computation of the rate(s) proposed.  (Please see the “Guidance for Indirect Rate Submission” (Guidance Ind. Rate.doc) and model indirect rate proposal (Ind. Rate Model.xls) provided to you for guidance.) 

Helpful Tips: 

  • The Budget Justification number and Budget number need to match exactly. 
  • Use of the Budget Justification template is not required, applicants may submit a budget justification in their own format as long as the required information is provided.
  • It is not necessary to provide documentation of costs where not requested, such as hotel and airline fee quotes, or quotes for supplies; stating the basis is sufficient. If your application is selected for an award, it is likely that additional budget justification will be requested at that point in time. Quotes for equipment items in excess of $20,000 is recommended.
  • If you include any positions that are primarily administrative or managerial, take particular effort to justify the necessity of those positions as they are not customarily recorded as direct labor charges to a specific award.
  • As foreign travel is only approved in rare and unique circumstances, if the proposed application includes foreign travel, take particular care with the justification of those expenses and be sure to consult a program officer first.
  • Give yourself sufficient time to complete the Budget Justification Form and review carefully to ensure that the amounts and dates included are consistent with those in the R&R Budget Form.   

Websites & Tutorials:

Phase 0 Resources:

  • Phase 0 tutorial podcast: Completing the Budget Justification Form → Click Here 
  • Phase 0 tutorial pdf: Completing the Budget Justification Form → Click Here→ Click Here   

Blank & Sample Forms:

  • Blank Budget Justification Template:

  • Sample Budget Justification Template


  • No labels

Privacy Notice - Vulnerability Disclosure Program