Research & DevelopmentGovernment Contracts

SBIR (Small Business Innovation Research) and STTR (Small Business Technology Transfer) are competitive federal programs that fund R&D at small businesses. To be eligible, your company must be U.S.-owned, for-profit, have fewer than 500 employees, and the principal investigator must be primarily employed by the company. STTR additionally requires a formal partnership with a research institution. Over a dozen agencies participate, providing $4+ billion in annual funding.

OTAs are flexible contracting instruments that operate outside the Federal Acquisition Regulation (FAR). They allow agencies to rapidly prototype and field innovative technologies without traditional procurement barriers. DoD is the largest OTA user, with organizations like DIU, AFWERX, and SOFWERX issuing OTAs for commercial technology adaptation. OTAs can lead to production contracts worth billions.

BAAs typically accept white papers (2-5 pages) as initial submissions. If the agency is interested, they invite a full proposal. Focus white papers on the technical innovation, relevance to agency needs, feasibility, and your team's qualifications. BAAs are open for extended periods (sometimes years) and accept proposals on a rolling basis. Check SAM.gov and agency research portals for open BAAs.

SBIR Phase I ($50K-$275K, 6-12 months) funds feasibility studies. Successful Phase I leads to Phase II ($500K-$1.75M, 24 months) for prototype development. Phase III is commercialization using non-SBIR federal funds, with no dollar limit and no competition requirement. Many agencies also offer Phase II Enhancement and Sequential Phase II funding to bridge the gap to production.