HOW IT WORKS
The Army SBIR|STTR Program provides non-dilutive federal R&D funding designed to meet small businesses wherever they are in their innovation journey. From early-stage proof-of-concept feasibility studies and rapid prototyping to high-dollar co-investment scaling and direct transition into Army Programs of Record, our flexible contracting pathways reduce risk and accelerate critical commercial technologies directly into the hands of Soldiers.
ENTRY POINTS
The Army SBIR|STTR Program releases topics through monthly Commercial Solutions Opening, highlighting key challenges and innovation opportunities in the following formats:
Prize-to-Contract Opportunities
Army FUZE SBIR|STTR provides a low-barrier point of entry through prize-to-contract opportunities hosted by competition partners such as Army xTech. Winners of prize competitions ties to a SBIR|STTR opportunity are the only companies eligible to submit a Phase I or Direct-to-Phase II SBIR|STTR proposal under the respective topic; proposals submitted by non-winners or finalists will not be evaluated. The maximum funding varies, and the period of performance (PoP) runs from 3 to 18 months, depending on the phase of the contract.
Open Topics
These problem statements use generalized defense mission requirements or technology areas to adapt commercial products or solutions to close capability gaps, improve performance, or provide technological advancements in existing capabilities. They also offer small business concerns (SBC) wide discretion to submit proposals that both define research needs and propose solutions to address them; offering an innovative and sometimes revolutionary approach to pursue research in an Army global interest area. Open Project solicitations allow offerors to “positively surprise” the Army with innovative technology approaches to meet Army needs.
Focused Topics
Also referenced as Conventional Topics, these problem statements are developed by an Army customer organization for a funded R&D effort to address specific technical objectives. Conventional topics state the desired technical objective and minimum performance specifications as a problem statement, which allows topic authors to seek innovative research to support a mission need or critical gap areas without dictating the technical or material solution. Topics are developed as either a Phase I proof-of-concept or a Direct-to-Phase II prototype development efforts based on the pace of the Army organization and the market maturity of potential technology solutions.
Direct to Phase II Topics
Direct to Phase II allows small businesses to submit to Direct to Phase II applications if they performed the Phase I research through other funding sources. Maximum funding is up to $2 million and the PoP runs from 1 to 18 months.
FUNDING OPPORTUNITIES
Phase I: Proof-of-Principle
A Phase I contract evaluates the feasibility of innovative solutions in scientific, technical, and operational terms to address critical Army priorities. These contracts, with a maximum duration of six months, provide up to $300,000 in funding to deliver a proof-of-principle report or demonstration. All Phase I awardees are eligible to submit a proposal for a Phase II Prototyping award.
Phase II: Prototype Development
Phase II contracts focus on advancing the R&D efforts proven in Phase I. These contracts typically involve the development, demonstration, and/or delivery of a commercially viable prototype or solution that addresses critical Army needs. Phase II contracts generally last 12 to 18 months, with funding up to $2 million. All companies that successfully complete a Phase I effort are eligible to submit a Phase II proposal under that same topic. Companies may be invited to submit a proposal for a second Phase II award for further prototype development, testing and evaluation at the government’s discretion. Companies may only receive two (2) Phase II awards per topic across all Federal agencies.
Phase II Enhancement – Accelerated Development
A Phase II Enhancement is a transition-focused award typically executed as a modification to an existing Phase II Prototyping contract to accelerate the development, testing and evaluation of promising technologies. By combining Army SBIR|STTR capital with matching funds from an Army transition partner leveraging a 1:1 co-investment model, this opportunity can give your business the non-dilutive backing and direct customer alignment needed to bridge the gap between initial prototype demonstration and customer adoption.
Strategic Breakthrough – Scaling Leap-Ahead Technologies to Programs of Record
Scaling leap-ahead technologies to programs of record, the Strategic Breakthrough Award is a transformative transition vehicle designed to accelerate critical, high-impact technologies directly into Army Programs of Record. For companies that have demonstrated success in an initial Phase II, this pathway provides up to $30 million in Army SBIR funding backed by a flexible 1:1 external match (scaling total project investment to $60 million+ over up to 48 months). By combining at least 20% Army customer funding with private capital or other non-SBIR|STTR federal sources, Strategic Breakthrough shares risk to bridge production milestones and deliver game-changing capabilities at scale.
CATALYST – Tri-Party Scaling with Prime Integrators & Army Customers
The CATALYST Program accelerates prototype transition and commercial scaling by establishing a shared-risk co-investment partnership between small businesses, Army transition partners, and industry prime integrators. Designed to deliver scalable defense capabilities, approved projects can receive up to $8 million in Army SBIR funding matched by both an Army customer (up to $3.5M) and an integrator partner (up to $3.5M in cash or in-kind contributions)—scaling total project investment up to $15 million over 36 months to drive direct integration into major defense acquisition programs.
Phase III (Non-SBIR|STTR Funded) – Direct-Award Authority for Transition & Procurement
Phase III is the ultimate transition pathway for SBIR|STTR technologies, providing government buyers and commercial partners with a streamlined contracting authority having already satisfied competition requirements under SBIR|STTR. Because Phase I and Phase II awards are competed under statutory standards, federal agencies can award non-SBIR funded contracts to extend, complete, or procure previously developed innovations—without conducting a new competition or drafting a separate Justification & Approval (J&A). Phase III awards have no statutory caps on dollar value, duration, contract type, or company size limitations, enabling rapid procurement directly into Army acquisition programs.
