Small Business Innovation Research (SBIR) Small Business Technology Transfer (STTR)

Process Acceleration:

How to Qualify for Phase II Enhancement

During the Phase II effort, the small business must submit a Phase II Enhancement application through the DoD Submission Website. See each Component's instructions below for details on their matching rates, funding limits, deadlines, and types of outside investors.

A Phase II Enhancement application package consists of the following items submitted through the DoD Submission website:

  1. A completed Phase II Enhancement application form.
  2. A letter from the outside investor, stating the amount the investor will provide in cash and that the investment is being made in response to the company's Phase II R&D effort, and that the entire amount of matching funds will be available for transfer within 45 days of the company's notification that it has been approved for a Phase II Enhancement. In addition, for investment from a government program, include a brief statement of how the resulting Phase II Enhancement technology will be integrated into the acquisition program's future activities. For investment from a private sector investor, include a brief statement of how the resulting technology or product will be commercialized. The letter should be submitted electronically on the DoD Submission Website either at the end of the Enhancement Statement of Work file OR by FAX to the number on the Enhancement submission page.
  3. A concise statement of work for the Phase II Enhancement effort and detailed cost proposal (less than one page), submitted as a PDF file (other acceptable formats include MS Word, Word Perfect, RTF and Text which will be converted to PDF by the DoD Submission system). The cost proposal may be submitted using the on-line cost proposal form OR as part of the Enhancement Statement of Work file. See Component instructions for additional information required in the statement of work and/or cost proposal.

Navy Phase II Enhancement Program

Since the Law (PL102-564) permits Phase III awards during Phase II work, the Navy may provide a one-to-four match, subject to availability, usually up to $250,000 of SBIR Phase II enhancement funds to Phase III funds, that the company obtains from a Navy Acquisition program office. The Phase III contract must be awarded before the Phase II enhancement funds are provided by modifying the existing Phase II contract. For more information on the Navy's Phase II Enhancement program, contact your SYSCOM representative (Click hereExternal Link to see POCs and links).

Air Force Phase II Enhancement Program

On active Phase II awards, the Air Force may request a Phase II enhancement application package from a limited number of Phase II awardees for the Enhancement Program to address new, unforeseen technology barriers discovered during the Phase II work. In the Air Force program, the outside investment funding must be from a government source, usually the Air Force or other military service. The selected enhancements will extend the existing Phase II contract awards for up to one year and the Air Force will match dollar-for-dollar up to $500,000 of non-SBIR government matching funds. If requested to submit a Phase II enhancement application package, it must be submitted through the DoD Submission WebsiteExternal Link. Contact the local awarding organization SBIR Manager (see Air Force SBIR Organization Listing) for more information.

DARPA Phase II Enhancement Program

DARPA has implemented a Phase II Enhancement Policy to encourage the transition of SBIR research into DoD Systems or commercialization in the private sector. Under this policy, DARPA may provide a Phase II performer up to $500,000 (on a dollar-for-dollar basis) of additional SBIR funding if the Phase II contract is active and the performer can match the additional SBIR funds with non-SBIR funds from DoD, another Federal Agency, or the private sector. Generally, additional Phase II funds received from other government sources are applied to the existing Phase II contract, which may be extended for up to one year. Phase II Enhancements are subject to the availability of funds. For information on DARPA's Transition & Commercialization Support Program read the Fact SheetExternal Link or contact DARPAExternal Link.

DHP Phase II Enhancement Program

The DHP SBIR Program has a Phase II Enhancement Program, which provides matching SBIR funds to expand an existing Phase II that attracts investment funds from a DoD Acquisition Program or Private Sector Investments. The Phase II Enhancement Program allows for an existing DHP SBIR Phase II effort to be extended for up to one year to perform additional research and development. Phase II Enhancement matching funds will be provided on a one-for-one basis up to a maximum $500,000 of SBIR funds. All Phase II Enhancement awards are subject to acceptance, review, and selection of candidate projects, are subject to availability of funding, and successful negotiation and award of a Phase II Enhancement contract modification.

DMEA Phase II Enhancement Program

To encourage transition of SBIR into DoD systems, DMEA has a Phase II Enhancement policy. DMEA's Phase II Enhancement program requirements include: up to one year extension of existing Phase II, and up to $500,000 matching non-SBIR funds. Applications are subject to review of the statement of work, the transition plan, and the availability of funding. DMEA will generally provide the additional Phase II Enhancement funds by modifying the Phase II contract.

OSD Phase II Plus Program

The OSD SBIR Program has a Phase II Plus Program, which provides matching SBIR funds to expand an existing Phase II that attracts investment funds from a DoD acquisition program or Private sector investments. Phase II Plus allows for an existing Phase II OSD SBIR effort to be extended for up to one year to perform additional research and development. Phase II Plus matching funds will be provided on a one-for-one basis up to a maximum $500,000 of SBIR funds. All Phase II Plus awards are subject to acceptance, review, and selection of candidate projects, are subject to availability of funding, and successful negotiation and award of a Phase II Plus contract modification. For more information about OSD's Phase II Plus program, contact your Phase II contracting officer.

At this time, CBD, DTRA, DLA, MDA, and NGA do not utilize a Phase II Enhancement process.

Complete the on-line Phase II Enhancement Application package at http://www.dodsbir.net/submission/External Link.