Defense Health Agency SBIR/STTR

Defense Health Agency SBIR Phase II

Supports United States defense health teams maturing validated medical technologies toward practical military use.

Defense Health Agency SBIR Phase II is the development stage of DHA's congressionally mandated Small Business Innovation Research program, open to Phase I awardees who have demonstrated scientific, technical, and commercial feasibility. DHA administers the program to mature military medical and health technologies through prototype development and validation, targeting eventual transition to DoD acquisition or commercial healthcare markets. Focus areas include trauma and combat casualty care devices, prosthetic and bionic systems, hearing restoration, infectious disease countermeasures, mental health diagnostics, and telemedicine platforms aligned to DHA Component priorities.

Phase II base awards reach up to $1.3 million over 24 months, with a Phase II Enhancement option of an additional $650,000 available when matched by equivalent Phase III private investment — bringing the potential combined Phase II ceiling to approximately $1.95 million. The DoD-wide statutory cap of $2,153,927 represents the absolute ceiling across the program. Awards are structured as cooperative agreements. Eligibility requirements are consistent with Phase I: U.S.-registered for-profit small businesses with no more than 500 employees, majority U.S. ownership, and at least one-half of Phase II work performed by the small business. VC-majority-owned firms are eligible per SBA Section 5107. TRL entry range is approximately 3–6.

Phase II proposals are evaluated by merit review from DHA subject-matter experts and are only solicited from companies with completed Phase I work on the same topic. DHA medical technology projects often require concurrent FDA regulatory planning — device classification, IND, or IDE preparation — and the Phase II scope should reflect the path from prototype to a cleared or approved product. Phase II Enhancement matching funds can come from a DoD program of record, a commercial partner, or private capital. Companies should engage a DHA program manager and identify a clear acquisition or commercialization pathway before submitting a Phase II proposal to maximize evaluation scores under the transition-readiness criterion.