Commercial Solutions Opening

DIU Commercial Solutions Opening (CSO)

Funds commercial companies prototyping advanced technology for US defense through fast Other Transaction agreements.

The Commercial Solutions Opening (CSO) is how the Defense Innovation Unit (DIU) — the part of the US Department of Defense that buys commercial technology fast — funds companies. Instead of a slow traditional contract, DIU uses a quicker tool called an "Other Transaction" agreement to pay companies to build and test prototypes for real military needs.

There is no fixed award size; the money depends on the project. DIU is known for moving fast — it can put an agreement in place in about 60 to 90 days, and it tries to keep a company’s up-front costs low. A successful prototype can then turn into a much larger production contract, and the company keeps its own intellectual property.

Any company can respond, and DIU especially wants "nontraditional" defense suppliers and small businesses — you do not need past government experience. For most startups there is no matching-money requirement; only teams made up entirely of traditional contractors must cover at least a third of the cost from non-government sources.

To apply, you watch DIU’s open solicitations (each one targets a specific military problem), send a short solution brief, and DIU replies within about 30 days if it wants a pitch. A pitch can lead to a full proposal and then an agreement.

Keep in mind you are not applying to one open pot of money — you respond to specific, time-limited solicitations, so the fit between your technology and the current problem matters a lot.