For my proposed project, I have funds already that will be used for specific activities needed for the proposed project. Therefore, I have not budgeted for these activities in the SBIR budget. I note in the project description and in the facilities & resources that these activities are already funded for since it is clear that they would be needed for successful completion of the project, and not mentioning how they are accounted for would be a glaring omission. Is this the best way to address it?
Are the research activities that will be funded part of the proposed work for the Phase I, or can they be seen as research activities that are generating preliminary data/support and will be finished before the start of the Phase I R&D? Ideally, these would be wrapped up before the Phase I, and can be described in your preliminary data section.
The project description should definitely indicate clearly where and how these funds are used in connection with the proposed Phase I work. This is to ensure that there is no “double” funding of research activities. You should also include these funds in your “Current and Pending Support” documentation.