SBIR and STTR Awards
SBIR and STTR are set-aside research and development programs funded by the eleven agencies with the largest extramural R&D budgets. They are effectively non-dilutive funding for technology development, and Phase III gives you a sole source authority that never expires.
- Who can bid
- US-owned small businesses under 500 employees; STTR requires a research institution partner
- Authority
- Small Business Innovation Development Act; agency-specific solicitations
- Typical thresholds
- Phase I roughly $50K-$300K; Phase II roughly $500K-$2M; Phase III unrestricted
- Where to search
- SAM.gov set-aside filter
Key takeaways
- Set-asides shrink the field — your real competition is often three to eight firms, not fifty.
- Limitations on subcontracting apply: you must perform the required share of the work yourself.
- Eligibility is determined as of your initial offer including price, so certifications must be current at submission.
- Ineligible bids are protestable, and size or status protests are common in tight competitions.
How the set-aside works
Phase I proves feasibility, Phase II develops the prototype, and Phase III commercializes with non-SBIR funding. Awards go through agency-specific topic solicitations rather than SAM.gov set-aside notices. The Phase III authority is the strategic prize: any agency may award you a sole source Phase III contract derived from your SBIR work without further competition.
Finding these opportunities
Watch agency SBIR portals and the SBIR.gov topic search rather than SAM.gov. DoD runs periodic BAA cycles with pre-release windows where you can contact topic authors directly — that conversation is usually the difference between a fundable and unfundable Phase I proposal.
Competing and winning
Write to the evaluation criteria in the specific agency's instructions, which vary widely, and make the commercialization plan credible with named transition customers. Reviewers are technical, so state the innovation and the technical risk plainly instead of marketing around them.
FAQ
Do I keep the intellectual property?
Yes. You retain data rights in SBIR data, subject to a government license and a protection period.
Is Phase I required before Phase II?
Usually yes, though some agencies offer Direct to Phase II for technologies with existing feasibility evidence.
What makes Phase III valuable?
It carries a permanent sole source authority, so any agency can contract with you for derivative work without competing it.
Draft a compliant response for $2
RFP Scribe builds your compliance matrix and first draft from the solicitation and your Company Brain.
Get startedServices that help with this
Buy just the piece you need — most start at a few dollars, no subscription required.
Capability Statement Generator
$10Professional cap statement highlighting your set-aside eligibility.
Buy NowCompetitive Intelligence Report
$20 eachSee who competes for set-aside contracts in your NAICS.
Buy NowPast Performance Narrative Writer
$5Narratives that prove your track record on similar set-asides.
Buy Now