Discover how the DHA SBIR program can help fund and support your efforts to improve the health and well-being of our service members.
Small businesses can improve military healthcare through the Defense Health Agency’s (DHA) Small Business Innovation Research (SBIR) program. A part of the Department of Defense (DOD), the DHA’s program provides funding and support for innovative healthcare technologies and solutions that benefit our service members. Proposals are evaluated based on various criteria, including technical merit and commercial potential.
Small businesses are often the unsung heroes of innovation, providing passion, determination, and out-of-the-box thinking that drives progress. The federal government, in particular, relies on small businesses to develop cutting-edge technologies and solutions that can transform industries and improve lives.
Nowhere is this more apparent than in the military, where the need for freethinkers to expand healthcare tech and discover solutions has never been greater. If you’re a small business looking to take your innovations to the next level, then the Defense Health Agency’s Small Business Innovation Research (SBIR) program may be the perfect opportunity for you. In this guide, we’ll explore how the program works, what it’s looking for, and how you can make a difference in military health with your passion and innovation.
What is DHA SBIR?
The Defense Health Agency’s (DHA) Small Business Innovation Research (SBIR) program is a congressionally mandated program that provides funding and support for small businesses to develop innovative healthcare technologies and solutions that benefit the military. The program is designed to stimulate technological innovation, strengthen the role of small businesses in meeting DoD research and development needs, and increase private sector commercialization of innovations derived from federal research and development.
Through the DHA SBIR program, small businesses can receive funding to support the research, development, and demonstration of their innovative healthcare technologies and solutions. The program is structured in three phases:
- Phase I: Feasibility Study — Small businesses can receive up to $50,000 for a feasibility study to evaluate the scientific and technical merit of an idea or technology.
- Phase II: Development — Small businesses can receive up to $1,500,000 for a development project that builds on the results of a successful Phase I feasibility study.
- Phase III: Commercialization — Small businesses are expected to fund the commercialization of their technology or solution, with the ultimate goal of bringing the product to market and achieving widespread adoption.
In addition to funding, small businesses participating in the DHA SBIR program have access to technical and business assistance from DHA and DoD experts, as well as potential partners and customers.
What is DHA STTR?
The DHA STTR (Small Business Technology Transfer) program is also a congressionally mandated program that provides funding and support for small businesses to develop innovative healthcare technologies and solutions that benefit the military. Unlike the SBIR program, the STTR program requires the small business to partner with a nonprofit research institution (such as a university or government lab) to conduct research and development. The program is designed to encourage the transfer of technology from research institutions to small businesses for commercialization.
The DHA STTR program is also structured in three phases:
- Phase I: Feasibility Study — Small businesses can receive up to $50,000 for a feasibility study to evaluate the scientific and technical merit of an idea or technology.
- Phase II: Development — Small businesses can receive up to $1,500,000 for a development project that builds on the results of a successful Phase I feasibility study.
- Phase III: Commercialization — Small businesses are expected to fund the commercialization of their technology or solution, with the ultimate goal of bringing the product to market and achieving widespread adoption.
Similar to the SBIR program, small businesses that participate in the DHA STTR program have access to technical and business assistance from DHA and DoD experts, as well as potential partners and customers.
Overall, the DHA’s SBIR and STTR programs both offer small businesses the opportunity to develop innovative healthcare technologies and solutions that benefit the military, while receiving funding, support, and expert guidance along the way.
What are the objectives of the DHA SBIR and STTR initiatives?
The primary objectives of the DHA SBIR and STTR initiatives are to stimulate technological innovation, strengthen the role of small businesses in meeting DoD research and development needs, and increase private sector commercialization of innovations derived from federal research and development. These initiatives provide small businesses with the opportunity to develop innovative healthcare technologies and solutions that benefit military personnel, while also supporting economic growth and technological progress in the private sector.
Military Operational Medicine
The Military Operational Medicine focus area of the DHA SBIR and STTR initiatives aims to support the development of innovative medical technologies and solutions that improve the health and well-being of military personnel during deployment and other military operations. This includes the development of technologies and solutions for acute and chronic injury care, psychological health and resilience, and human performance optimization.
Combat Casualty Care
The Combat Casualty Care focus area of the DHA SBIR and STTR initiatives aims to support the development of innovative medical technologies and solutions that improve the care and treatment of combat-related injuries, including trauma and traumatic brain injury (TBI). This includes the development of technologies and solutions for pre-hospital care, hospital care, and rehabilitation.
Military Infectious Diseases
The Military Infectious Diseases focus area of the DHA SBIR and STTR initiatives aims to support the development of innovative medical technologies and solutions that improve the prevention, diagnosis, and treatment of infectious diseases that affect military personnel. This includes the development of technologies and solutions for vaccine development, diagnostics, and treatment of infectious diseases such as malaria, tuberculosis, and HIV.
Overall, the DHA SBIR and STTR initiatives focus on supporting the development of innovative healthcare technologies and solutions that improve the health and well-being of military personnel. By targeting specific focus areas such as Military Operational Medicine, Combat Casualty Care, and Military Infectious Diseases, these initiatives are able to provide small businesses with the guidance and support they need to make a real difference in the lives of our service members.
What are the eligibility requirements?
The eligibility requirements for the DHA SBIR and STTR programs are designed to ensure that small businesses are able to participate in the program, while also ensuring that the research and development projects funded through the program focus on improving the health and well-being of military personnel.
To be eligible for the Defense Health Agency’s SBIR and STTR programs, small businesses must meet the following requirements:
SBIR
- Must be a small business, as defined by the Small Business Administration (SBA)
- Must be majority-owned by U.S. citizens or permanent resident aliens
- Must have a principal researcher who is primarily employed by the small business
- Must be organized for profit and located in the United States
- Must have no more than 500 employees
In addition to these requirements, the proposed research and development project must be related to one of the DHA’s SBIR focus areas (Military Operational Medicine, Combat Casualty Care, or Military Infectious Diseases).
STTR
- Must be a small business, as defined by the SBA
- Must be majority-owned by U.S. citizens or permanent resident aliens
- Must have a principal researcher who is primarily employed by the small business
- Must be organized for profit and located in the United States
- Must have no more than 500 employees
- Must partner with a nonprofit research institution (such as a university or government lab) to conduct the proposed research and development project
- Must have the research institution perform at least 30 percent of the work under the STTR award
In addition to these requirements, the proposed research and development project must be related to one of the DHA STTR focus areas (Military Operational Medicine, Combat Casualty Care, or Military Infectious Diseases).
DHA SBIR and STTR Phase I
The Phase I component of the agency’s SBIR and STTR programs provides funding for feasibility studies to evaluate the scientific and technical merit of a proposed idea or technology. Successful Phase I proposals will have the potential to advance to Phase II, where additional funding is provided for further development and demonstration.
The success rates for DHA SBIR and STTR Phase I proposals are competitive and vary depending on the focus area and topic of the proposal. According to recent data, the success rate for DHA SBIR Phase I proposals was approximately 15 percent, while the success rate for DHA STTR Phase I proposals was approximately 25 percent.
How much is the SBIR Phase I award?
The maximum award amount for a DHA SBIR Phase I feasibility study is $50,000, and the funding period is typically six months. This funding is intended to support the initial exploration of the feasibility of the proposed idea or technology.
How long is SBIR Phase I?
The funding period for DHA SBIR Phase I feasibility studies is typically six months. During this time, small businesses are expected to conduct the necessary research and development to evaluate the scientific and technical merit of their proposed idea or technology. At the end of the funding period, successful Phase I proposals may have the opportunity to apply for additional funding through Phase II.
*While success rates are competitive, small businesses that are able to secure funding through Phase I have the potential to advance to Phase II and receive further funding for the development and demonstration of their innovative healthcare technologies and solutions.
How much is the STTR Phase I award?
The maximum award amount for a DHA STTR Phase I feasibility study is $50,000, and the funding period is typically six months. This funding is intended to support the initial exploration of the feasibility of the proposed idea or technology, and must be used in conjunction with a nonprofit research institution that is partnering with the small business.
How long is STTR Phase I?
The funding period for DHA STTR Phase I feasibility studies is typically six months. During this time, the small business and its partner nonprofit research institution are expected to conduct the research and development necessary to evaluate the scientific and technical merit of their proposed idea or technology.
At the end of the funding period, successful Phase I proposals may have the opportunity to apply for additional funding through Phase II. However, unlike the SBIR program, which only provides funding to small businesses, the STTR program requires the small business and its partner research institution to submit a joint proposal for Phase II funding.
DHA SBIR and STTR Phase II
The Phase II component of the agency’s SBIR and STTR programs provides funding for the development and demonstration of innovative healthcare technologies and solutions that have the potential for commercialization. Successful Phase II proposals may have the opportunity to apply for further funding through Phase III, which focuses on commercialization.
The success rates for DHA SBIR and STTR Phase II proposals are competitive and vary depending on the focus area and topic of the proposal. According to recent data, the success rate for DHA SBIR Phase II proposals was approximately 43 percent, while the success rate for DHA STTR Phase II proposals was approximately 56 percent.
How much is the SBIR Phase II award?
The maximum award amount for a DHA SBIR Phase II development project is $1,500,000, and the funding period is typically two years. This funding is intended to support the development and demonstration of the proposed idea or technology, building on the results of a successful Phase I feasibility study.
How long is SBIR Phase II?
The funding period for DHA SBIR Phase II development projects is typically two years. During this time, small businesses are expected to further develop and demonstrate the scientific and technical merit of their proposed idea or technology.
How much is the STTR Phase II award?
The maximum award amount for a DHA STTR Phase II development project is $1,500,000, and the funding period is typically two years. This funding is intended to support the development and demonstration of the proposed idea or technology, building on the results of a successful Phase I feasibility study.
However, unlike the SBIR program, which only provides funding to small businesses, the STTR program requires the small business and its partner nonprofit research institution to submit a joint proposal for Phase II funding. The nonprofit research institution is expected to perform at least 30 percent of the work for an STTR award.
How long is STTR Phase II?
The funding period for DHA STTR Phase II development projects is typically two years. During this time, the small business and its partner nonprofit research institution are expected to conduct the necessary research and development to further develop and demonstrate the scientific and technical merit of their proposed idea or technology.
Overall, the Phase II component of the DHA SBIR and STTR programs is designed to provide small businesses with the funding and support necessary to further develop and demonstrate the scientific and technical merit of their innovative healthcare technologies and solutions.
While success rates are competitive, small businesses that are able to secure funding through Phase II have the potential to advance to Phase III and receive further funding for commercialization of their products.
What distinguishes the proposal timelines of DHA Phase II from those of other SBIR/STTR Programs?
The proposal timelines for DHA SBIR and STTR Phase II programs are different from other SBIR/STTR programs.
One major difference is that Phase II proposals must be submitted within one year of completing the Phase I feasibility study, which is shorter than the timelines for other programs. Additionally, Phase II proposals require more detail and include a commercialization plan that outlines how the technology or solution will be brought to market.
However, the DHA SBIR/STTR programs provide additional resources and support to small businesses to help them succeed in Phase II.
Overall, the DHA SBIR/STTR Phase II programs offer small businesses a unique opportunity to develop innovative healthcare technologies and solutions with potential for commercialization. The proposal timelines are designed to provide the necessary support and resources for success while meeting the needs of the military healthcare system.
How To Apply for a Defense Health Agency SBIR and STTR Award
First, review the DHA SBIR/STTR Broad Agency Announcement (BAA) on the DHA SBIR/STTR website. The BAA outlines the focus areas and topics for which the DHA is seeking innovative healthcare technologies and solutions.
Once you identify a relevant focus area or topic, prepare a proposal that addresses the specific requirements outlined in the BAA. The proposal should clearly explain the proposed idea or technology, the scientific and technical merit of the proposed work, the commercial potential of the proposed solution, and the resources needed to complete the proposed work.
One major difference is that Phase II proposals must be submitted within one year of completing the Phase I feasibility study, which is shorter than the timelines for other programs. Additionally, Phase II proposals require more detail and include a commercialization plan that outlines how the technology or solution will be brought to market.
Proposals must be submitted electronically through the DHA SBIR/STTR website during the open submission period. The submission period typically opens several times per year and remains open for a few weeks each time. Small businesses should consider attending SBIR/STTR events and webinars hosted by the DHA or other government agencies to learn more about the program and connect with potential partners.
The application process for DHA SBIR and STTR awards requires careful attention to the specific requirements outlined in the BAA, as well as the eligibility requirements for each program.
Who are the DHA program contacts?
Start with the DHA SBIR/STTR Help Desk (DoDSBIRSupport@reisystems.com). They can provide general information about the program, answer questions about the application process, and assist with technical issues related to the application system.
You can also directly reach out to the DHA SBIR/STTR Program Director:
Email: DHA_SBIR-STTR@mail.mil
Phone: (301) 619-7296
The DHA program contacts are friendly and helpful resources that can provide guidance and support to small businesses interested in applying for SBIR and STTR awards. Don’t be afraid to reach out and ask for help—they are here to help you succeed!
What are the DHA SBIR and STTR topics?
The DHA’s programs focus on a wide range of healthcare topics that are of interest to the military healthcare system. The topics for the DHA SBIR and STTR programs vary from year to year and are announced in the annual BAA.
For the 2023 fiscal year, the DHA SBIR/STTR program has announced several topics that offer funding. Topics for the 2023 fiscal year include:
- Wearable Technology for Personal Health and Performance
- Telehealth for Behavioral Health
- Point-of-Care Diagnostic Devices for Infectious Diseases
- Advanced Training and Simulation Technologies for Medical Education
Small businesses interested in applying for a DHA SBIR or STTR award should carefully review the topic descriptions and requirements outlined in the BAA to determine if their proposed idea or technology aligns with the DHA’s priorities. Remember: The DHA SBIR and STTR programs have different eligibility requirements and proposal submission processes.
Who has won a DHA SBIR Phase II award?
Over the years, many small businesses have received DHA SBIR Phase II awards to develop and commercialize innovative healthcare technologies and solutions. Here are three examples of small businesses that have won DHA SBIR Phase II awards:
ULURU Inc.
Traumatic injuries can result in uncontrolled bleeding and sepsis, which can lead to high mortality and morbidity rates, especially in remote and hostile environments. Texas-based ULURU Inc. recognized this critical need and received a DHA SBIR Phase II award to develop a multi-functional wound dressing that provides dynamic release of active agents to prevent hemorrhage and sepsis, while extending wear time to improve current standards of care during care under fire and prolonged field care.
The sustained release of antimicrobials will provide protection in deep tissue planes and skin surface for at least 72 hours, making it an ideal solution for remote and austere environments. Uluru’s innovative solution is light, easy to use, transportable, and shelf-stable, which makes it a promising candidate for improving medical care in both civilian and military trauma wounds.
Creare LLC
Phase II Award Amount: $1,614,313
High noise levels in military operations can lead to noise-induced hearing loss (NIHL), which can have irreversible and long-lasting effects on personnel. New Hampshire-based Creare LLC recognized this problem and received a DHA SBIR Phase II award to develop a novel device that provides hearing protection, records personal noise levels, and monitors hearing function over time. The integrated in-ear device will enable users to monitor the potential impact of noise and allow for real-time interventions such as pharmaceuticals to mitigate pre-clinical hearing damage and prevent NIHL.
For this Phase II Enhancement SBIR, Creare LLC will build on their success in Phase II to improve the performance of their prototype and build molded devices ready for human studies in military settings. The innovative device has the potential to significantly improve hearing protection and monitoring for military personnel, ensuring better hearing health outcomes and enhancing the overall effectiveness of military operations.
Augmntr
Phase II Award Amount: $1,586,129
Colorado-based Augmntr, Inc. is working to improve the technology readiness level (TRL) of their MEDIC product, which is designed to aid warfighter medics in providing better care for casualties. To achieve this, Augmntr received a DHA SBIR Phase II Enhancement award that will focus on improving the pose estimation capability of their software. The enhancement funding will enable the MEDIC software to better align displayed imagery onto a casualty in a non-standing position, improving the physical registration of any augmented reality (AR) information projected onto the body of the patient.
This will make the MEDIC product much better suited for the actual conditions warfighter medics will face, ensuring better patient outcomes and enhanced military healthcare. The innovative technology has the potential to significantly improve medical care for military personnel in the field, making Augmntr’s work a valuable addition to the Defense Health Agency’s SBIR program.
What are the accounting requirements for DHA SBIR and STTR?
Accounting plays a critical role in the success of any SBIR or STTR project, and DHA SBIR/STTR awards are no exception. These programs require small businesses to maintain accurate and detailed accounting records to ensure that their project expenses are allowable, reasonable, and properly allocated. Failure to comply with these requirements can result in disallowed costs, financial penalties, or even termination of the project.
Here are just some of the accounting requirements for DHA SBIR and STTR:
- Maintain detailed records of all project-related expenses, including receipts, invoices, and time logs.
- Ensure that all expenses are allowable, reasonable, and properly allocated to the project.
- Use a compliant accounting system to accurately track and report project expenses.
- Follow federal cost accounting standards and regulations, such as the Federal Acquisition Regulation (FAR) and Cost Accounting Standards (CAS).
- Prepare and submit accurate and timely financial reports to the DHA, including invoices, progress reports, and final reports.
- Comply with all DHA audit requirements, including providing access to financial records and personnel.
- Maintain effective internal controls to prevent fraud, waste, and abuse of project funds.
- Ensure that all subcontractors and vendors comply with the same accounting and compliance requirements.
Navigating the accounting requirements of DHA SBIR and STTR programs can be a daunting task for small businesses. By partnering with Team 80, your small businesses can have confidence that your accounting needs are being handled by experts who understand the unique requirements of government-funded projects. With Team 80 by your side, you can put all of your effort into delivering solutions that improve military healthcare.
Sarah Sinicki
Team 80 CEO
Sarah is a leader focused on serving small businesses in various industries. She has worked with a multitude of companies over the last 25 years and loves helping business owners find success. Sarah is genuinely committed to unburdening Team 80 clients so that they have the freedom to focus on their business. In her free time, you can find her spending time with her husband, two kids, and her Yorkies, Marley and Ziggy. When she is not helping business owners, you can find her in a Reb3l Groove class dancing it out. Sarah is also an avid Colorado Avalanche fan, so if you ever want to talk about hockey, she’s your gal.
Table of Contents
- What is DHA SBIR?
- What is DHA STTR?
- What are the objectives of the DHA SBIR and STTR initiatives?
- What are the eligibility requirements?
- DHA SBIR and STTR Phase I
- DHA SBIR and STTR Phase II
- What distinguishes the proposal timelines of DHA Phase II from those of other SBIR/STTR Programs?
- How To Apply for a Defense Health Agency SBIR and STTR Award
- Who are the DHA program contacts?
- What are the DHA SBIR and STTR topics?
- Who has won a DHA SBIR Phase II award?
- What are the accounting requirements for DHA SBIR and STTR?
