The SBIR Program was created by Congress in 1982 to help small businesses more actively participate in federal research and development (R&D). All Federal agencies with an annual extramural R&D budget exceeding $100M are required to participate in the SBIR Program.

These agencies currently include:

Department of Defense

• Air Force
• Army
• Navy
• Missile Defense Agency
• DARPA
• Defense Threat Reduction Agency
• Chemical and Biological Defense
• Special Operations Command
• National Geospatial Intelligence Agency
   

Federal Agencies

• Department of Agriculture
   
• Department of Commerce
  National Oceanic & Atmospheric Administration (NOAA)
  National Institute of Standards and Technology (NIST)
   
• Department of Education
• Department of Energy
• Department of Health and Human Services
• Department of Transportation
• Environmental Protection Agency
• National Aeronautics and Space Administration
• National Science Foundation
• Homeland Security Advanced Research Projects Agency

Participating agencies, including DARPA, are required to conduct an SBIR Program by reserving a percentage of their R&D budget to be awarded to small businesses through a three-phase process. Eligible companies must have 500 employees or less, and must be the primary place of employment of the principal investigator.

The Small Business Administration (SBA) is responsible for setting general policy guidelines, as well as coordinating and monitoring the progress of the SBIR Program. The SBA posts a Pre-Solicitation Announcement that contains information which allows extra planning time for SBIR proposal submissions. In addition to opportunities with DARPA, the document contains valuable information on other SBIR programs within the federal government.

The DARPA SBIR Program

The DARPA SBIR Program, under the direction of Ms. Connie Jacobs and administered by the Contracts Management Directorate (CMO), operates with an estimated annual budget of $67M. The Department of Defense oversees a series of solicitations throughout each year and can be viewed thru the OSD website.

Proposals submitted under the SBIR Program must comply with the specific criteria and requirements as stated in the appropriate DoD Program Solicitation. An automatic email notification for each solicitation will be provided when a small business registers on LISTSERVE. 

DARPA encourages the submission of SBIR proposals whose technology development will support DARPA's mission of advancing state-of-the-art defense technology, and that have a strong likelihood of being successfully marketed in the commercial marketplace.

Objectives of the DARPA SBIR Program include stimulating technological innovation, strengthening the role of small business in meeting DARPA and DoD R&D needs, fostering and encouraging participation by minority and disadvantaged persons in technological innovation, and increasing private sector commercialization of technological advances developed through DARPA and DoD funded research and development.

The three-phase process of the SBIR Program is as follows:

A small business may submit a Phase I proposal in response to the topics published in an open DoD solicitation. A Phase I SBIR award, to demonstrate the feasibility of a concept, is typically funded at $99,000. Since DARPA favors commercial potential, companies should begin to pursue commitments for follow-on funding during this Phase. The DARPA SBIR Program is quite competitive with approximately one in ten Phase I proposals being funded.

Upon successful completion of a Phase I project, the program manager(s) may invite a company to submit a Phase II proposal for consideration. A separate Phase II solicitation is not issued, and unsolicited SBIR proposals are not accepted. A Phase II proposal should be more extensive than the Phase I proposal and should demonstrate the company's potential to render a product or process. A company that demonstrates a potential for follow-on funding may receive a higher score during the Phase II evaluation process. Phase II proposals are funded for approximately two years at $750,000.

Phase III, or commercialization, is the ultimate objective of all SBIR initiatives and a critical part of DARPA's SBIR Program. Small firms may reach Phase III through private sector commercialization or by obtaining non-SBIR government follow-on contracts for additional technology development.

Each year, DoD participates in scheduled National SBIR Conferences throughout the United States to introduce and update small businesses to the SBIR program. These conferences provide small businesses the opportunity to meet with SBIR program managers, procurement specialists, and commercialization experts, as well as provide practical business seminars and presentations on the various federal agencies' programs. For additional information about these conferences, visit the National SBIR Conference Home Page.

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DISCLAIMER

The inclusion and appearance of hyperlinks within this site does not constitute endorsement by DARPA or the DoD of those web sites or the information, organizations, products, or services contained therein, nor does DARPA or the DoD exercise any responsibility at the destinations. These links are provided consistent with the stated purpose of this web site.

Last revision: January 18, 2008

Comments on this page are welcome and may be sent to:  sbir@darpa.mil or contact the Small Business Support Center at (703) 526-4170.