Streamline your R&D project with the SBIR Fast Track program and bring your ideas to life.
The U.S. Army, under the Department of Defense (DoD), is one of many government agencies that participate in the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. These programs award funding to eligible small businesses who research and develop new technological advancements. Awardees go on to commercialize their innovations.
As the oldest branch of our country’s military, the U.S. Army is steeped in a storied history of heroes both sung and unsung. From its founding by the Second Continental Congress in 1775 to defend the colonies to today’s technologically advanced defense behemoth, the Army continues to push forward, often with backup from innovative small businesses.
Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs—collectively known as America’s Seed Fund—allow entrepreneurs to participate in the defense of the nation. But of course, as with all federal SBIR/STTR programs, a measure of guidance helps clear the path toward discovery.
In this blog, we will tell you everything you need to know about these programs and how you can work with the U.S. Army.
Table of Contents
What Is the U.S. Army SBIR Program?
What Is the Purpose of the Army SBIR Program?
Which Technology Areas Does the Army SBIR/STTR Focus On?
What Are the Eligibility Requirements for Army SBIR/STTR?
Is There a Direct to Phase II in Army SBIR?
How Do I Apply for an Army SBIR Award?
What Is the Army SBIR Technical and Business Assistance (TABA) Program?
Who Are the Army SBIR Program Contacts?
What Are the Army SBIR Topics and How Are Topics Released?
How Do I Stay Up to Date on the Latest Army SBIR/STTR News?
What Is the U.S. Army SBIR Program?
U.S. Army SBIR stands for the Small Business Innovation Research program. Part of the U.S. Department of Defense (DoD), the Army is a branch of the military encompassing a fighting force that serves and defends the country by land, sea, and air. There are several elite groups within the Army, including the Army Rangers and Special Forces, which both receive specialized training for advanced combat situations.
What Is the U.S. Army STTR?
A sister program to SBIR, Army STTR stands for the Small Business Technology Transfer program. Through Army STTR, small businesses contractually partner with a university, a federally funded research and development center, or a qualified nonprofit research institution to complete its work with the Army.
When working through STTR, the small business must be the prime contractor and perform at least 40 percent of the work, with the research partner contributing at least 30 percent. The remaining balance can be completed by either party or by a third party.
What Is the Purpose of the Army SBIR Program?
Mandated by Congress, the Army SBIR program’s main thrust is to foster, encourage, and strengthen small businesses with the funding needed for research and development. There’s a lot of competition out there, in terms of technology, and the Army SBIR is meant to help entrepreneurs clear financial knowledge-based obstacles.
Connecting companies with military experts, SBIR helps businesses overcome the inherent challenges of government research and development.
Which Technology Areas Does the Army SBIR/STTR Focus On?
Like all branches of the U.S. Military under the Department of Defense, the Army has several areas that require the utmost in technological advancement. Protecting the nation means equipping soldiers with tools that won’t fail on the battlefield and even developing tools to prevent battles from starting in the first place.
The Army is looking for the most innovative solutions in the following technology ecosystems:
- Artificial Intelligence/Machine Learning (supply chain management, logistics coordination, target identifications and simulation)
- Advanced Materials and Manufacturing (additive manufacturing)
- Autonomy (unmanned systems, drones, ground vehicle capabilities)
- Chemical and Biological (detection, defense)
- Cyber (biometric authentication, secure communications)
- Electronics (very-large-scale integration (VLSI), microelectronics)
- Electronic Warfare (jamming, spoofing)
- Human Performance (wearables)
- Immersive (augmented reality, virtual reality, mixed reality)
- Network Technologies (antennas, radio frequency, communications systems)
What Are the Eligibility Requirements for Army SBIR/STTR?
If the thought of developing technology for the Army piques your interest, the next step is to gauge your eligibility. SBIR and STTR have similar, yet slightly different, eligibility requirements. Such requirements are as follows:
SBIR
Participation in the Army SBIR program is exclusive to U.S.-based small businesses. Awardees must meet the following criteria at the time of Phase I and Phase II awards:
- For-profit business based in the United States
- 500 or fewer employees
- Principal investigator’s primary employment (more than 50 percent) must be with a small business
- More than 50 percent of the business is owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the U.S., or by another for-profit business concern that is more than 50 percent owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the U.S.
- For awards from agencies using the authority under 15 U.S.C. 638(dd)(1), you may be owned and controlled by more than one venture capital, hedge fund or private equity firm as long as no one such firm owns a majority of the stock.
STTR
As with SBIR, only U.S.-based small businesses are eligible to participate in the Army’s STTR program. Here are the other criteria:
- Organized for-profit with a place of business located in the United States
- 500 or fewer employees
- The company is at least 51 percent owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the United States.
The nonprofit research institution you work with in the STTR must also meet certain eligibility criteria:
- Located in the United States
- Considered one of these three definitions:
- Nonprofit college or university
- Domestic nonprofit research organization
- Federally funded R&D center
Next, let’s delve into SBIR Phase I and II and check out how much funding you can expect, how long each phase lasts, and how successful the program has been in the past.
Army SBIR Phase I
Army SBIR Phase I Success Rate
The success rate of small businesses striving for Army SBIR Phase I is generally between 15 and 20 percent.
How Much Is the Army SBIR Phase I Award?
And How Long Is the Army SBIR Phase I?
Phase I establishes the scientific, technical, commercial merit, and feasibility of your proposed innovation. Depending on which department within the Army releases your award, there are different amounts and periods of time.
- Army SBIR Phase I awards released through the Assistant Secretary of the Army for Acquisition, Logistics, and Technology, or ASA (ALT), typically encompass a three- to six-month timeframe with awards generally up to $250,000.
- Army SBIR Phase I awards released through Army Futures Command (AFC), are typically a six-month timeframe with awards that are generally up to $111,500 (base) and a $56,000 option for companies selected for a Phase II.
- For the Army STTR program, traditional Phase I funds are typically a six-month timeframe with awards that are generally up to $173,000.
Army SBIR Phase II
Army SBIR Phase II Success Rate
Once you reach Phase II, the chance for success increases significantly. The success rate for SBIR Phase II is generally around 50 to 60 percent.
How Much Is the Army SBIR Phase II Award? And How Long Is the Army SBIR Phase II?
Phase II focuses on the development, demonstration, and delivery of your innovation from Phase I. Traditional Phase II funds provide continued research and development funding for successful Phase I projects and frequently result in the development of a prototype. As with Phase I, there are different award amounts of periods of time, depending upon which department you work with.
- Army SBIR Phase II awards released through ASA (ALT) are typically a 12- to 18-month time frame and generally up to $1.7 million in award funding.
- Army SBIR Phase II awards released through AFC, are typically a 24-month timeframe with awards that are generally up to $1.1 million.
- Army STTR Phase II awards are typically a 24-month timeframe with awards that are generally up to $1.15 million.
Is There a Direct to Phase II in Army SBIR?
Yes! While the Army does not guarantee Direct-to-Phase II (D2P2) opportunities, the program is currently available. D2P2 allows the Army to award an SBIR Phase II award to a small business that received Phase I funding through other channels.
Check out this document from the Army, outlining D2P2 guidelines.
How Do I Apply for an Army SBIR Award?
Once you work out the logistics of actually being eligible for an Army SBIR/STTR award, it’s time to apply. And applying properly means registering with a couple of entities and submitting your proposal to the Army.
Here’s the process:
Register in SAM
Before a contract can be awarded, you must register in the System for Award Management (SAM) and provide basic information on your business capabilities so you can work with the government.
Submit Your Proposal
All SBIR or STTR Phase I or Phase II proposals for any DoD topic must be submitted through the DoD submission website. After you submit the proposal, the DoD’s expert judges engage in an evaluation process following this criteria (in order of importance):
- Officials measure the soundness, technical merit, and innovation of the proposed approach and its incremental progress toward topic or subtopic solution.
- Officials gauge the qualifications of the principal/key investigators, supporting staff, and consultants.
- Officials gauge the ability of the team to perform research and development, as well as their ability to commercialize the results.
- Officials measure the innovation’s potential for government or private sector commercialization, along with the expected benefits of commercialization.
Register in the SBIR.gov System
A more recent element of the SBIR application process is registering on the SBIR.gov company registry. Once you have registered, your company will be given a SBIR ID number that you will use when applying to any SBIR agency.
What Is the Army SBIR Technical and Business Assistance (TABA) Program?
Providing further support services for SBIR awardees, the Technical and Business Assistance (TABA) program helps with the transition of technologies to the Army and other DoD customers. And it does this at no extra cost to the small business.
The TABA program is authorized by the Small Business Administration (SBA) and services of the program include:
- Access to a network of scientists, engineers, and technologists focused on commercialization and transition considerations such as protected supply chain management, advanced manufacturing, process/product/production scaling, etc.
- Assistance with intellectual property protections, such as legal considerations, intellectual property rights, patent filing, patent fees, licensing considerations, etc.
- Commercialization and technology transition support such as market research, market validation, development of regulatory or manufacturing plans, brand development.
- Regulatory support such as product domain regulatory considerations, regulatory planning, and regulatory strategy development.
Who Are the Army SBIR Program Contacts?
Beyond reading this blog and conducting your own online research, the best way to unravel everything you need to know about the Army’s SBIR/STTR program is to reach out directly to the officials who have all the answers.
Department of Defense – Army
Army Applied SBIR Program Office
Email: usarmy.pentagon.hqda-asa-alt.mbx.army-applied-sbir-program@mail.mil (link sends email)
Phone: (866) 570-7247
What Are the Army SBIR Topics and How Are Topics Released?
The Army’s SBIR/STTR topics are released on a rolling basis, responding to needs of the military as they arise. These contract opportunities are made available during specific solicitation periods throughout the fiscal year, based on current and anticipated war-fighting technology needs.
Current Army SBIR Topics for 2023 include:
- Diver Performance Monitoring System (DPMS): Human Performance, ASA(ALT), Phase I
- Non-Refrigerant-Based Cooling System for Cabin Cooling: Chemical and Biological, ASA(ALT), Phase I
- Non-HFC Extinguishing: Chemical and Biological, ASA(ALT), Phase I
- Artificial Intelligence/Machine Learning for Nitramine Recrystallization and Coating: Artificial Intelligence/Machine Learning, ASA(ALT), Phase I
How Do I Stay Up to Date on the Latest Army SBIR/STTR News?
Information moves at warp speed in today’s technologically minded world. To stay on the cutting edge of the Army’s SBIR/STTR needs, you have to keep up with the latest news.
Be sure to follow the Army’s social media accounts:
What Is xTechSearch?
A healthy competitive spirit is a great motivator when it comes to spurring innovation. To that end, the U.S. Army participates in xTechSearch, a competition sponsored by the Assistant Secretary of the Army for Acquisition, Logistics and Technology. It is an open-topic call, executed each year in the spring and fall, that accepts white paper submissions.
Each xTechSearch competition is comprised of four phases:
- Concept White Papers
- Technology Pitches
- Semifinals
- Finals
Each phase boasts its own requirements, as well as its own increasing non-dilutive seed prizes. In the end, 100 finalists are invited to demonstrate a proof-of-concept of their technologies at an ASA conference. 10 small businesses that reach the finals each receive $120,000. The winner receives an additional $250,000 grand prize.
Along with a funding award, the competitive program also offers education, mentorship, and networking opportunities to small businesses looking to break into the Army’s science and technology ecosystem.
Who Has Won an Army SBIR Award?
Success stories abound in the world of Army SBIR program awards. Coming from all corners of the country, dynamic small businesses received funding to power their research and development of various technology ecosystems under the Army. Here are some of their stories:
Baker Engineering and Risk Consultants
One of the most famous success stories associated with the Army’s SBIR program is that of San Antonio-based Baker Engineering and Risk Consultants (BakerRisk). Through SBIR funding, Baker created the Explosive Risk and Structural Damage Assessment Code, meant to guard against accidental explosions in government-run facilities.
Baker’s commercial software, SafeSite, allows facilities containing hazardous materials to be constructed in the safest manner possible. SafeSite is an algorithm-driven predictor containing a massive library of building types, all of which allow the software to quantify the consequences of an explosion.
This technology would not have been possible without SBIR funding.
“SBIR was, and still is, an instrumental program for small businesses,” said Quentin Baker, president of BakerRisk, which now has offices in three countries. “ It’s a game changer for small businesses. It was for us.”
Resodyn Acoustic Mixers
In the early 2000s, the U.S. Army was interested in gelled propellants for a number of reasons, including for use in deployable missiles. Gelled propellants can modulate the missile’s fuel burn rate and be stored safely; they are also less prone to leakage if their enclosures are punctured or damaged.
So the Army turned to Butte, Montana-based Resodyn Acoustic Mixers and awarded the company SBIR funding to develop the ResonantAcoustic® Mixing (RAM) technology, which uses sound energy to mix anything quickly, uniformly, and perfectly; this includes solids with-liquids, liquids-with-liquids, solids-with-solids, and liquids-with-gases.
“On the original SBIR call, the U.S. Army described that they wanted a technology to mix gelled propellants, which we were able to accomplish,” said Lawrence Farrar, inventor, CEO, and president of Resodyn. “This SBIR funding helped move the technology to the prototype stage, which led to other agencies’ investments. The combined effort led to the technology being commercialized into a new product line that is now available to everyone.”
Bevilacqua Research Corporation
When an unmanned aerial vehicle (UAV) runs into communication system jams while on a mission, does it turn around and go home? No, that is never an option. That’s why it was crucial for the Army to develop artificial intelligence (AI) technology that can make instantaneous decisions based on surveillance, firing, and combat scenarios.
Enter Bevilacqua Research Corporation. The CORE (Cognitive Object Reasoning Engine)
toolset was born when the Army awarded Alabama-based Bevilacqua Research Corporation (BRC) an SBIR contract to add AI to a threat system being used in distributed simulation environments.
In addition to potentially saving DoD millions of dollars in development costs for its new intelligent systems, BRC’s CORE toolset is at the center of an emerging market that could be worth millions of dollars to the small company.
“The SBIR program gave us the seed funding necessary to establish ourselves as the leader in AI/machine learning technology in the United States,” said Andy Bevilacqua, CEO of BRC.
What Are the Army SBIR Accounting Requirements?
The Army, and the Department of Defense (DoD) in general, expects a high level of accounting sophistication. For the relatively low award amount of Phase I, federal government officials with the Army expect a basic system. However, the 10-fold increase in dollars that comes with a Phase II award requires a much more exacting accounting system.
For starters, you must demonstrate the ability to calculate and differentiate direct from indirect costs while also isolating allowable costs. As with all DoD awards, your Army SBIR award accounting system will be audited by the Defense Contract Audit Agency (DCAA).
And truthfully, that’s merely a glimpse into the Army’s SBIR accounting requirements. Team 80 will take the reins of your accounting system, identify potential shortfalls, and ensure all of your numbers stand up to scrutiny from even the most exacting government official.
