Greenwood Aerospace Navigates the DOD SBIR STTR Current Solicitation: A Practical Guide

It’s a new year and the first quarter of FY25 has just come to a close. What does that mean? Funding. Agencies have money to spend and as spring is right around the corner, are looking for repair and bolster infrastructure and build new infrastructure. The federal government is one of the largest recruiters of small businesses and also a huge proponent of small business innovation. 

One of the programs that the DoD has implemented to promote competition and innovation are the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (SBTT) programs. These are competitive programs that are made up of several phases to provide funding for small businesses in R&D. 

Here’s what you need to know about SBIR and STTR. And, of course, if you have questions, give us a call at (580) 762-2580. 

Understanding SBIR and STTR

Like so many programs, the SBIR and STTR offer small businesses a great opportunity to receive federal funding which helps them compete with much larger names. Small businesses typically have a hard time bringing the research and innovation to the table of technology development. 

These programs, which run in a few batches throughout the year, help level the playing field. 

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are designed to stimulate technological innovation and meet federal research and development needs.

The program was established by Congress in 1982. It was written with a statutory purpose to help strengthen the role that small businesses play in technological innovation on the national scale. 

These two programs programs provide funding for small businesses to develop innovative technologies and solutions for government agencies. The primary goal is to provide homeland security with the technology it needs to remain cutting edge in a dynamic global environment. 

The specific goals of the programs are to:

  1. Stimulate innovation in tech dedicated to federal use. 
  2. Give a bigger share of federal R/R&D needs to small businesses versus the major contractors. 
  3. Encourage traditionally disadvantaged (socially and economically) SBCs to work for tech innovation. 
  4. The overall goal is to increase private sector innovations derived from federal R/R&D. The end goal is to increase competition, productivity, and finally, economic growth. 

The SBIR and STTR programs are also known as America’s Seed Fund, providing seed funding for research and development. The programs aim to encourage participation in innovation and entrepreneurship by all people.

There are definite similarities in these parallel programs and they do serve the same overall purpose. However, they are not the same thing. 

The STTR exists to aid transitions of joint efforts between the small businesses that meet the rigorous qualification threshold of entry. The biggest difference between these programs is that the STTR program has a statutory requirement for the small business to have a research partner that is either a

  • University
  • Federally Funded Research and Development Center (FFRDC)
  • Or a qualified non-profit research institution. 

With STTR, the small business applying for the position is the prime contractor and has to perform at least 40% of the work, and the research partners doing at least 30%. The remainder can be farmed out accordingly. 

Applying to the DOD SBIR STTR Solicitation

These programs look very similar on the outside and basically serve the same purpose: to support scientific excellence and innovative technology from small businesses. 

  • The DOD SBIR STTR Solicitation is open, with multiple topics for proposal submission.
  • Proposals will be accepted through the online portal submission system.
  • The solicitation is published at SAM.gov, providing details on each topic area and description.
  • Register or rewatch Phase 0 webinar series sessions for proposal submission guidance, covering topics such as proposal preparation, budget preparation, and intellectual property protection.

One important item of note is that these programs are exclusively designed for for-profit small businesses that are located in the United States. SBIR STTR exists to add funding for entrepreneurs and the commercialization of R/R&D. When these organizations build more and bring more to the table through awards. It benefits the DoD and ultimately society as a whole for small businesses to bring innovation to the marketplace of ideas. 

The DoD SBIR STTR website lists a lengthy, 10-step process for application, which you can find here.

The steps are:

  • Step 1: Determine Eligibility
  • Step 2: Register Your Small Business
  • Step 3: Explore Funding Opportunities
  • Step 4: Ask Questions
  • Step 5: Prepare and Submit Your Proposal
  • Step 6: Evaluation and Selection
  • Step 7: Pre-Award Actions
  • Step 8: Post Contract Award
  • Step 9: PHASE II
  • Step 10: Transition and Commercialization

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Participating Agencies and Opportunities

The SBIR and STTR programs are coordinated by the Small Business Administration (SBA) and involve multiple federal agencies within the DoD. The Navy provides guidance on its own recruitment using the programs, as does the Army and the Air Force. 

  • Every year, a certain percentage of the defense budget is set aside to award to small businesses for tech innovation and it is doled out to the different branches of the military for them to award accordingly. 
  • The programs provide opportunities for small businesses to develop innovative technologies and solutions for government agencies.
  • The DOD SBIR STTR program supports a full spectrum of SBIR initiatives serving all components.
  • The program aims to support small businesses in developing innovative technologies and solutions for government agencies.

Support for Awardees

The program provides support and resources, including Technical and Business Assistance (TABA). SBIR and STTR programs offer support and resources at each application point, of which there are ten steps to the program broken up into three phases. The program provides guidance and assistance to awardees throughout the program.

Tips for Success

These tips are generic for any type of government contracting. 

  • Understand the eligibility criteria and funding opportunities for the SBIR and STTR programs. This applies to all proposals. Do your research, apply only for things that your small business is qualified for. 
  • Develop a strong proposal that demonstrates scientific and technical merit. If applying for STTR, have your partnering institutions selected beforehand. 
  • Partner with a research institution to increase chances of success. 
  • Seek guidance and assistance from program officials and support resources.
  • Be prepared to commercialize your technology and create jobs. 

That last item is key: this program is for for-profit small businesses only. It is designed to spur on the economy and generate revenue with the primary proprietor of the technology being the DoD. We have seen hundreds, maybe thousands, of examples of military technology spilling over and becoming everyday technology. Satellites, the internet, jet propulsion, the list goes on and on.

Greenwood Aerospace Knows Contracting

Greenwood Aerospace proudly serves the U.S. Military. With our streamlined operations, we can fill various military and defense contracts in a timely and effective manner. We work with industry partners that support every branch of the U.S. Military to assist supply chains and support national security. We are U.S. Department of State ITAR-registered and can access defense supply chains to fulfill various defense contract needs. 

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