About DoD's SBIR and STTR Programs

The purpose of DoD's SBIR and STTR programs is to harness the innovative talents of our nation's small technology companies for U.S. military and economic strength.

SBIR

DoD's SBIR program funds early-stage R&D projects at small technology companies -- projects which serve a DoD need and have the potential for commercialization in private sector and/or military markets. The program, funded at approximately $1.14 billion in FY 2008, is part of a larger ($2.3 billion) federal SBIR program administered by twelve federal agencies.

As part of its SBIR program, the DoD issues an SBIR solicitation three times a year, describing its R&D needs and inviting R&D proposals from small companies -- firms organized for profit with 500 or fewer employees, including all affiliated firms. Companies apply first for a six-month to nine-month phase I award of $70,000 to $100,000 to test the scientific, technical, and commercial merit and feasibility of a particular concept. If phase I proves successful, the company may be invited to apply for a two-year phase II award of $500,000 to $750,000 to further develop the concept, usually to the prototype stage. Proposals are judged competitively on the basis of scientific, technical, and commercial merit. Following completion of phase II, small companies are expected to obtain funding from the private sector and/or non-SBIR government sources (in "phase III") to develop the concept into a product for sale in private sector and/or military markets.

STTR

In 1992, Congress established the STTR pilot program. STTR is similar in structure to SBIR but funds cooperative R&D projects involving a small business and a research institution (i.e., university, federally-funded R&D center, or nonprofit research institution). The purpose of STTR is to create, for the first time, an effective vehicle for moving ideas from our nation's research institutions to the market, where they can benefit both private sector and military customers. A written agreement between the small business and research institution allocating intellectual property rights is a requirement for participation in STTR (see Model Agreement for the Allocation of Rights). DoD's STTR program, funded at $132 million in fiscal year 2008, is part of a larger federal STTR program administered by six federal agencies. DoD issues one STTR research solicitation each year.

Phase I and Phase II proposals must be prepared and submitted through the DoD Electronic Submission System. Historically, about 15 percent of SBIR and STTR proposals are awarded a phase I contract; approximately 40 percent of phase I projects subsequently are awarded a phase II contract. See our history of the DoD SBIR and STTR programs.

For information on the federal SBIR and STTR programs, see our links to other SBIR/STTR web sites, or call the Small Business Administration at (202) 205-6450.