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What is the AFWERX SBIR Mission?

First established in 2017 by the Secretary of the Air Force and reporting to the Vice Chief of Staff of the Air Force, AFWERX provides an environment conducive to thoughtful, deliberate, innovation.

Through open topic solicitations, small businesses can submit innovative solutions that have yet to be deployed in service to the DoD.

And we’re not only talking about developing wartime technology like fighter jets and bombers—the Air Force is a large and varied organization that requires a wide range of products in the medical field, construction, law enforcement, communications, energy, and more.

Essentially, any innovative technology that could be applied to a small city could have a use in the Air Force.

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How do I Apply for AFWERX SBIR Award?

To apply for an AFWERX SBIR Award, you must follow the standard proposal process.

This means viewing the Topic Solicitation Schedule and submitting a proposal while meeting all official benchmarks.

First, check out the Defense SBIR/STTR Innovation Portal (DSIP), where you can learn about open topic solicitations and view instructions on applying for each SBIR/STTR award.

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Essentially, Open Topic allows small businesses to solve problems that the Air Force doesn’t know they have.

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Missouri-based Lickenbrock Technologies developed Fast Expectation-Maximization Ordered Subsets (FEMOS), a reconstruction algorithm that creates scans with greater resolution and contrast than commercial computed tomography (CT) scans.

Funding through the Air Force AFWERX SBIR program, an investment of $895,000, helped Lickenbrock accelerate the speed of its algorithm to seven times the original speed, significantly reducing the amount of time it takes to finish a scan. 

The SBIR investment improved the quality of the reconstructions and diversified the variety of specimens the system is capable of scanning.

With further development, Lickenbrock Technologies expects $500,000 to $1 million per year in commercial, industrial use profits. 

With SBIR funding, California-based Specular Theory developed a next-generation virtual reality flight simulation training system explicitly designed to guide pilots in the exact science of in-air refueling. 

Traditional air refueling training costs the Air Force thousands of dollars per flight and requires at least two aircraft and two full crews. 

This is where Specular Theory saw an opportunity for improvement. 

The virtual training program reduces the number of failures and helps reduce the number of times pilots must practice in real aircraft. As a result, the cost savings in that area alone are substantial. 

Traditional air refueling training costs the Air Force thousands of dollars per flight, which requires at least two aircraft and two full crews. 

Students often require extra flights to gain proficiency, adding cost and time. This virtual training program is connected to The Air Force SBIR funding allowing Specular Theory to adapt its existing products into an immersive student experience not typically available in consumer applications. 

SBIR invested close to $1.5 million into the project, while the product has pulled in $5 million in Phase III contracts for Specular Theory. 

The Air Force’s SBIR program supported Maryland-based iNovex Information Systems in its effort to develop an open-source data collaboration platform known as Mobi-SRE. This platform pulls together and analyzes data for the weapon system design acquisition lifecycle. 

With this development, users can better use pre-existing data, accelerate the process, reduce errors, and increase access to more comprehensive and consistent information. 

This reduces the time it takes to get advanced weapon technology into the hands of the boots on the ground—or in the air. 

iNovex Information Systems utilized the investment to research the specific Air Force needs and limitations. Then, they used that information to specifically build and expand the data platform to address those problems. 

The Air Force SBIR invested $899,154 into the project, and the company has received close to $1.5 million in Phase III contracts. As a result, it is positioned to save the Air Force an estimated $5 million.

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The USDA’s SBIR program stimulates technological innovations in the private sector, strengthens the role of small businesses in federal research projects, increases the potential commercialization of innovations, and fosters the advancement of women-owned and socially or economically disadvantaged small businesses.

Ultimately, the USDA wants these SBIR projects to provide solutions for American agricultural efforts and society. This is facilitated by combining science, research, production, and marketing in a way that transforms innovative ideas into practical realities.

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Can I Use TABA for USDA SBIR?

Yes! Technical and Business Assistance (TABA) funding helps small businesses identify the most pressing needs in research and development and delivers additional funding over and above your SBIR/STTR grant for assistance with the commercialization of your innovation. Depending on the award phase, this funding comes from vendors affiliated with the USDA or separate from the USDA. 

Here are the details regarding TABA for Phase I and Phase II:

Who are Some Past Winners of a USDA Phase II Award?

The highly competitive nature of the SBIR program makes it a grueling process—but it’s this characteristic that also makes winning the award deeply gratifying. Over the years, USDA SBIR Phase II awardees have run the gamut from projects that enhance food safety and nutrition to projects that fortify agricultural efforts and animal protection. To give you a general idea of what it takes to receive a grant from the USDA, here are some past winners of the agency’s SBIR program Phase II.

What is the SYSCOM SBIR?

Though the Navy is typically associated with maritime missions, it also includes both land- and aviation-based duties. It all adds to a diverse set of technological needs, which the Navy organizes as System Commands, or SYSCOMs.

Each of the Navy’s participating SYSCOM missions boasts its own SBIR budget and unique guidelines, particularly for Phase II of the programs. One of the Navy’s SYSCOMs, the Office of Naval Research (ONR), is responsible for administering the SBIR program, dividing the solicitations into groups representing the needs of each SYSCOM.

What is the Navy SBIR Direct-to-Phase II?

There’s a pathway called ” Direct-to-Phase II for companies that already have a functioning prototype before applying to the Navy SBIR. Small businesses with this option at their disposal typically performed any Phase I research through other funding sources besides federal. 

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Who is Eligible for Navy SBIR?

Eligibility for the Navy’s SBIR program tends to follow the same metrics of other government agencies that award similar funding opportunities. To be eligible to receive funding through the Navy SBIR, a business must meet the following requirements:

What are the Navy SBIR Topics?

Navy SBIR topics are available for a host of SYSCOMs, with an extensive list displayed on the Navy’s official SBIR site. Some of the current open topics include Digital Firing Device for NAVAIR, Submarine Deep Escape for NAVEA, and Radar Seeker Model for Hypersonic Weapon Full Life Cycle Support for SSP.

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What is the Navy SBIR Transition Program (STP)?

Like TABA, the Navy STP opens up marketplace opportunities for small businesses with Phase II funding. The STP fine-tunes the small business’ SBIR project to receive commercialization, transition, and professional business assistance. It’s a treasure chest of resources geared toward positioning a small business to obtain Phase III funding. 

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1. What Is SBIR Phase II?

Let’s start at the very foundation of SBIR Phase II, the basic definition.

In the second phase, your team takes the R&D that was initiated in phase I to the next level.

Phase II is the stage that truly gives life to your business, and more importantly, your technology. Phase II awards are given based on the results of the research and tests conducted in Phase I and are intended to fund the creation of an actual, workable prototype.

In the simplest terms, Phase II sees your innovative idea become an actual product.

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4. What are the Eligibility Requirements for SBIR Phase II?

First and foremost, only small businesses that have received an SBIR Phase I award are eligible for SBIR Phase II awards.

And while each federal agency might have different technical requirements for Phase II, the general requirements for eligibility mirror those of Phase I and are as follows:

• The small business must operate in the U.S., outside of a small number of subcontractors or consultants.
• The company must have fewer than 500 employees.
• The company must be majority-owned by U.S. citizens.

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5. How Does the Small Business Administration Define a “Small Business Concern” for the SBIR program?

As stated above, only small businesses can strive for an SBIR Phase II award. But what is a “small business concern?” The Small Business Administration (SBA) defines it as such:

6. What Federal Agencies Participate in SBIR Phase II?

The same 11 agencies that award funds in the first phase also participate in SBIR Phase II.

For contact information for each agency, check out our blog about SBIR Phase I.

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8. Does SBIR Phase II Require a Commercialization Plan?

Yes! The SBIR Phase II award process requires a consideration of the proposal’s commercial potential. 

This includes the possibility to transition the technology to private sector applications, government applications, or government contractor applications.

13. What is SBIR Phase IIB?

When you renew your Phase II application for another round of funding, it’s known as SBIR Phase IIB. 

Offered at some federal agencies such as the Department of Health & Human Services or the Department of Defense, Phase IIB is mainly for R&D proposals that need a long time and more significant funds to get from theory to prototype.

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16. How Do You Apply for SBIR Phase II?

Small businesses can submit an SBIR Phase II proposal anytime between six months and two years after the start date of their Phase I award.

If you don’t know the start date of your Phase I award, it can be found on your Phase I award letter.

Your team’s principal investigator must remain in contact with the appropriate government agency to stay up-to-date, as well as to inform the agency of any potential roadblocks.

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19. What is the SBIR’s Federal And State Technology (FAST) Partnership Program?

The FAST Partnership Program funds organizations with the expressed purpose of increasing the number of SBIR and STTR awards from women, socially/economically disadvantaged individuals, and small businesses in underrepresented areas (typically, rural states). 

This is accomplished through outreach, technical and business assistance, and financial support.  

Go to the FAST Partnership Program web portal to learn more about funding and check out a state-by-state listing of current FAST awardees.

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20. What are the SBIR Phase II Accounting Requirements?

Once a small business is awarded an SBIR Phase II contract or grant, the federal government has much higher expectations regarding tracking time, costs, and the overall accounting system. 

Simply put: There’s a lot of money on the line during Phase II, so the government will scrutinize every dollar and cent. What’s more, many SBIR/STTR Phase II awards are cost-plus-fixed-fee (CPFF) instead of a firm-fixed-price (FFP)—this designation presents a greater risk to the federal government.

Along every step of the way in SBIR Phase II, the government must be assured that the small business possesses an accounting system that can calculate indirect rates, separate direct from indirect costs, and isolate unallowable costs from allowable ones. 

And finally, your accounting system must be able to report how much has been billed on a contract and how much is still yet to be billed.

If you’ve been awarded an SBIR Phase II Grant learn more about Team 80’s SBIR and STTR Accounting Services.