DARPA SBIR Phase II
Supports United States defense innovators building on validated concepts into advanced prototypes and field testing.
DARPA SBIR Phase II is the technology development stage of the Defense Advanced Research Projects Agency's Small Business Innovation Research program, continuing the technical effort established in a Phase I award or, for opt-in topics, via a Direct-to-Phase II pathway when feasibility has been established through prior non-SBIR work. Awards are structured as cooperative agreements issued through the DoD-wide DSIP portal at dodsbirsttr.mil. DARPA topics span its seven technical offices, covering areas including advanced defense systems, biological technologies, information innovation, microsystems, and strategic and tactical technology.
Phase II awards are typically $1.8 million over 24–36 months, and may exceed the SBA statutory cap of $2,153,927 by waiver when program funds are available. The small business must perform at least half of the Phase II work itself, with outsourcing of up to 50 percent permitted. The Phase II Enhancement mechanism provides up to $500,000 in additional matching funds at a one-to-one ratio over 12 additional months, contingent on securing non-SBIR/STTR matching funds from a DoD acquisition program or private sector investor. Sequential Phase II awards on the same project are permitted for continued development. Annual Phase II pool across DARPA SBIR is estimated at approximately $130 million.
Eligibility mirrors Phase I: U.S.-registered for-profit small businesses with 500 or fewer employees, majority-owned by U.S. citizens or permanent residents, with all R&D performed in the United States. VC-majority ownership is permitted under SBA Section 5107 DoD provisions. Proposals are evaluated by DARPA program managers via merit review. Successful Phase II completion positions awardees for Phase III, which is the commercialization stage and may involve DoD acquisition program contracts, export to other government customers, or transition to commercial markets. There is no statutory cap on Phase III awards.
Continuation of the firm's DARPA SBIR Phase I technical effort, or Direct-to-Phase II for topics that explicitly opt in and where feasibility was demonstrated via prior non-SBIR work.
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