About this programme
DoD SBIR/STTR is the Department of Defense's implementation of the government-wide Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs: non-dilutive federal awards that fund small businesses to develop technology the military actually needs. DoD does not run one central solicitation — the department publishes topics through its individual components (the Air Force's AFWERX, the Army, the Navy, DARPA, the Missile Defense Agency, and other components), each with its own priorities and solicitation calendar, but every component's proposals are submitted through the same official portal, dodsbirsttr.mil, and follow the same phase structure.
SBIR funds a for-profit small business directly. STTR requires that small business to formally partner with a U.S. research institution — a university, nonprofit research organization, or federally funded R&D center — and split the funded work between the two under a fixed minimum-effort rule. Both programs exist to move early technology from a research idea toward something a DoD program office can actually field, without the company giving up equity or taking on debt.
Because each component runs its own topics, DoD SBIR/STTR is best understood as one submission portal and phase framework shared across many separate, component-run programs rather than a single grant scheme. A company applies to a specific component's specific topic in a specific solicitation cycle, not to "DoD SBIR" as a generic pool of money.
DoD SBIR/STTR follows the same statutory phase structure and award guideline levels that apply to all 11 federal agencies participating in the government-wide SBIR/STTR program coordinated by the Small Business Administration (SBA), which sets policy and reports program-wide progress to Congress even though the funding itself comes from each agency.
How it works
Phase I is a feasibility-stage award: proof of concept for the proposed technology against a published DoD topic. The government-wide statutory guideline caps Phase I at normally not more than $150,000, though as of April 2026 participating agencies (including DoD) can issue Phase I awards up to $323,090 without an SBA waiver.
Phase II funds continued R&D on a concept that showed feasibility, and is generally open only to companies that held the corresponding Phase I award. The statutory guideline caps Phase II at normally not more than $1,000,000; as of April 2026 agencies can issue Phase II awards up to $2,153,927 without an SBA waiver. Some DoD solicitations allow a Direct to Phase II (D2P2) path that skips Phase I for a company that can show equivalent feasibility work was already done outside the program.
Phase III is commercialization, and is not funded by the SBIR/STTR program itself — it draws on non-SBIR/STTR sources such as a program office's own budget. Because the earlier Phase I/II competition already satisfied the legal competition requirement, DoD components can award Phase III follow-on work sole-source to the company that did the prior-phase work, without running a new competition.
Companies with an active Phase II, or one completed within the prior two years, can pursue sequential matching-fund awards such as STRATFI (Strategic Financing) or TACFI (Tactical Financing), which add government dollars on top of private or program-office matching investment to bridge a proven technology toward a program of record. These sequential awards sit on top of, not instead of, the standard Phase I/II structure, and submission into them is made by a government point of contact rather than by the company directly.
For STTR specifically, the small business must perform at least 40% of the funded R&D effort and the partnering research institution at least 30%, regardless of which DoD component is running the topic.
Who can apply
The applicant must be a for-profit small business concern, organized and operated in the United States, with the funded work itself performed in the U.S.
Size standard: the business, including its affiliates, must have no more than 500 employees.
Ownership and control: the business must be more than 50% directly owned and controlled by individuals who are U.S. citizens or permanent resident aliens (subject to additional ownership-structure rules for other entity types published by the SBA).
The project's principal investigator must have the small business as their primary place of employment at the time of award — more than 50% of their working time.
For STTR, the small business must have a formal, written cooperative research or subcontract agreement with a single eligible U.S. research institution (university, nonprofit research organization, or federally funded R&D center) covering that institution's share of the work.
Because each DoD component runs its own topics and solicitations, a given topic can carry additional component-specific requirements (security clearance needs, facility clearance, technology readiness expectations) beyond the baseline SBIR/STTR eligibility rules above — these are stated in the specific solicitation, not in a single department-wide eligibility page.
How to apply
- Register the business in the federal System for Award Management (SAM.gov) and obtain a Unique Entity ID (UEI) — required before any SBIR/STTR award can be made, and the step that takes longest, so start it first.
- Browse open topics and solicitations across DoD components on dodsbirsttr.mil to find one that matches the technology; each component (AFWERX, Army, Navy, DARPA, MDA, and others) publishes its own topics under its own solicitation cycle.
- Read the full solicitation and any component-specific guidance for the chosen topic before preparing a proposal.
- Submit the Phase I, Direct to Phase II, or Phase II proposal through the official DoD SBIR/STTR submission portal at dodsbirsttr.mil/submissions, before that topic's solicitation closing date.
- If awarded Phase I, apply separately for Phase II with the same component once eligible, if pursuing continued R&D on the same concept.
- For sequential funding (STRATFI/TACFI) after an active or recently completed Phase II, work through a government program point of contact, who submits on the company's behalf rather than the company submitting directly.
Documents you’ll typically need
- Active SAM.gov registration and Unique Entity ID (UEI)
- Technical/research proposal responding to the specific DoD component topic in the solicitation
- For STTR: a formal cooperative research or subcontract agreement with the partnering U.S. research institution
- For sequential funding (STRATFI/TACFI): guidance-document package and submission templates, submitted by a government point of contact rather than the company
Frequently asked
Is DoD SBIR/STTR one program or many?
It is one submission portal (dodsbirsttr.mil) and one shared phase structure, but the actual topics and money come from separate DoD components — the Air Force's AFWERX, the Army, the Navy, DARPA, the Missile Defense Agency and others — each running its own solicitation calendar. A company applies to a specific component's specific topic, not to a single department-wide pool.
What is the difference between SBIR and STTR?
SBIR funds the small business alone. STTR requires the small business to formally partner with a U.S. research institution such as a university or federal lab, with a minimum work split of at least 40% performed by the small business and at least 30% by the research partner. Both otherwise share the same phase structure and submission portal.
How much can a Phase I or Phase II award be worth?
The government-wide statutory guideline is normally not more than $150,000 for Phase I and not more than $1,000,000 for Phase II. As of April 2026, agencies including DoD can issue awards above that — up to $323,090 for Phase I and $2,153,927 for Phase II — without a separate SBA waiver.
Does DoD fund Phase III commercialization?
No. Phase III must be funded from non-SBIR/STTR sources, such as a program office's own budget. What DoD can do is award that Phase III work sole-source to the company that completed the earlier Phase I/II work, without a new competition, because the original SBIR/STTR competition already satisfied the legal requirement.
What is STRATFI/TACFI?
STRATFI (Strategic Financing) and TACFI (Tactical Financing) are sequential, matching-fund awards for companies that already have an active Phase II, or one completed within the prior two years. They add government dollars on top of private or program-office matching investment to bridge a proven technology toward a program of record, and are submitted by a government point of contact rather than the company itself.
Do I need a Phase I award before I can apply for Phase II?
Generally yes — Phase II is built to continue work that showed feasibility under a Phase I award, and eligibility is typically limited to companies that held the corresponding Phase I. Some DoD solicitations offer a Direct to Phase II path for companies that can show equivalent feasibility work was already done outside the program.
Where do I actually submit a DoD SBIR/STTR proposal?
Through the official submission portal at dodsbirsttr.mil/submissions. Component sites such as AFWERX.com host solicitation guidance and eligibility material, but the proposal itself is filed through the shared DoD portal.
Reviewed 2026-08-16. Programmes change — confirm current eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.