Air Force SBIR Phase I
Funds United States Air Force and Space Force aligned small-business concepts in early defense feasibility work.
Air Force SBIR Phase I is a feasibility-stage competitive award administered by the Department of the Air Force through AFWERX, the Air Force Research Laboratory's (AFRL) technology acceleration arm, and SpaceWERX for space-focused applications. AFWERX serves as the Department of the Air Force's SBIR/STTR program manager and operates under AFRL, which spans nine technology areas and 40 operations globally. The program was reauthorized through FY2031 under the Small Business Innovation and Economic Security Act signed on April 13, 2026. Topics are released through the DoD-wide monthly BAA cycle and the Annual BAA format via dodsbirsttr.mil.
Phase I awards are capped at the DoD-wide statutory limit of $323,090 over 3–12 months. Under AFWERX's Open Topic SBIR track, Phase I awards are typically smaller, ranging from $75,000 to $150,000, in exchange for a faster award timeline of three to nine months and a lower barrier to entry. Both Phase I and Direct-to-Phase II (D2P2) options are available; D2P2 is widely used by AFWERX. For FY26, AFWERX and SpaceWERX implemented a cohort-based model grouping related technologies into integrated solutions tied to specific capability gaps, with priority areas including combat collaborative aircraft, command and control, contested logistics, counter-UAS, manufacturing and readiness, small UAS, and weapons technology. In FY25, AFWERX and SpaceWERX awarded 1,049 contracts totaling $1.4 billion, with 35 percent of awards transitioning to DAF customer funding.
Eligibility is limited to U.S.-registered for-profit small businesses with 500 or fewer employees, majority-owned by U.S. citizens or permanent residents. All R&D must be performed in the United States, and at least two-thirds of Phase I work must be done by the small business. VC-majority ownership is permitted under SBA Section 5107. Phase I awardees may advance to Phase II (up to $2,153,927) or pursue STRATFI and TACFI enhancement tracks.
Air Force Research Laboratory and AFWERX priorities across air, space, cyber, autonomy, sustainment, materials, and AI. Open Topic SBIR allows companies to pitch their own technology against broader topic frames.
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