DoD SBIR Grants: A Guide to Defense Department Funding for Small Businesses

February 16, 2026

DoD SBIR: The Department of Defense Innovation Pipeline

The Department of Defense (DoD) operates the largest SBIR program by number of awards, funding thousands of small businesses each year to develop technologies for national defense. If your company is developing technologies with defense applications, DoD SBIR should be a primary funding target.

DoD SBIR Funding Levels

DoD SBIR award amounts vary by component, but typical ranges for each SBIR phase are:

Phase I

  • Award Amount: $50,000 - $250,000 (varies by component)
  • Duration: 3-12 months
  • Purpose: Feasibility study and proof of concept
  • Award Type: Contract (not grant)

Phase II

  • Award Amount: $500,000 - $1,750,000
  • Duration: 12-27 months
  • Purpose: Prototype development and demonstration
  • Award Type: Contract

Phase III

  • Award Amount: No SBIR funding limit (uses non-SBIR funds)
  • Duration: Varies
  • Purpose: Transition to production and fielding
  • Note: DoD has the strongest Phase III transition pathway of any agency

DoD Components That Fund SBIR

Multiple DoD components issue their own SBIR solicitations:

  • Army: Ground vehicle technology, soldier systems, network communications
  • Navy/Marine Corps: Naval systems, undersea warfare, expeditionary systems
  • Air Force: Aerospace, directed energy, autonomous systems, space technology
  • DARPA: Breakthrough technologies, high-risk/high-reward research
  • Missile Defense Agency (MDA): Missile defense systems
  • Defense Health Agency (DHA): Military health technologies
  • SOCOM: Special operations technology
  • DTRA: Chemical, biological, radiological, nuclear defense
  • CBD: Chemical and biological defense

DoD SBIR Submission Process

Topic-Based Solicitations

Unlike NIH's open solicitation, DoD publishes specific topics describing exactly what technology they need. Each topic has:

  • A detailed description of the technology need
  • Specific technical objectives for Phase I
  • Expected Phase II and Phase III transition plans
  • Contact information for the topic author (TPOC)

Open Topics

Some DoD components also offer open topics that accept proposals on any defense-relevant technology, similar to NSF's open approach.

Submission Timeline

DoD typically releases SBIR solicitations 2-3 times per year. The submission window is usually 30-60 days from solicitation opening. Understanding the full SBIR timeline helps you plan your DoD proposal development.

DoD SBIR Review Criteria

DoD evaluates proposals on three main criteria (avoiding common mistakes is essential):

1. Technical Merit

  • Scientific and technical quality of the proposed approach
  • Innovation and originality
  • Feasibility of the technical objectives

2. Qualifications of Key Personnel

  • Relevant experience and expertise
  • Past performance on similar projects
  • Ability to execute the proposed work

3. Potential for Commercialization

DoD-Specific Tips for Success

Talk to the TPOC

The Topic Point of Contact (TPOC) is the person who wrote the topic and will likely be involved in evaluation. Contacting the TPOC before submitting to clarify requirements and gauge interest is strongly encouraged and can significantly improve your proposal.

Focus on Transition

DoD cares deeply about transition, meaning getting your technology into actual military use. Your proposal must include a realistic Phase III plan showing how the technology will be acquired by a military customer.

Understand ITAR and Security

Many DoD topics involve controlled or classified information. Be aware of ITAR (International Traffic in Arms Regulations) requirements and whether the topic requires security clearances. Companies with foreign ownership considerations should pay special attention to these requirements.

Budget Strategy

DoD SBIR budgets should be lean and focused. Unlike NIH, which has higher standard amounts, DoD Phase I awards can be as low as $50,000. Make sure your proposed work fits within the funding level.

Registration Requirements

DoD requires SAM.gov registration and a DSIP (Defense SBIR/STTR Innovation Portal) account. Some topics may also require DUNS number or additional registrations.

DoD SBIR Success Rates

DoD SBIR success rates vary by component but generally range from 15-25% for Phase I. DARPA topics tend to be more competitive, while some service-specific topics may have higher success rates due to fewer applicants.

DoD vs Other SBIR Agencies

FeatureDoDNIHNSF
Award TypeContractGrantGrant
TopicsSpecificOpen (any health)Open (any tech)
Phase I$50K-$250K$275K$275K
Phase IIIStrong pathwayCommercial onlyCommercial only
Speed3-6 months6-9 months4-6 months

Special DoD Programs

STTR

DoD also funds STTR proposals requiring collaboration with a research institution.

Direct to Phase II

Some DoD components allow Direct to Phase II proposals for companies that can demonstrate Phase I-level feasibility.

Rapid Innovation Fund (RIF)

DoD's RIF program provides funding for technology transition projects that can reach the warfighter within 2 years.

Get DoD SBIR Guidance

DoD SBIR has unique requirements around defense technology, contracting, and transition planning. An experienced SBIR grant writer who understands DoD culture can help you navigate this process. Remember, SBIR funding is non-dilutive and does not need to be repaid.

Contact MJP Grant Consulting to discuss your DoD SBIR strategy and get started with a free consultation.

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