DHS SBIR Phase II

DHS SBIR Phase II (invite-only)

Supports small businesses in the United States advancing proven homeland security prototypes in a second-stage federal programme.

DHS SBIR Phase II provides prototype development funding of $1,000,000 to $1,500,000 over 24 to 36 months to continue R&D from a completed DHS SBIR Phase I project. The program is administered by the DHS Science and Technology Directorate and is explicitly not an open competition — access is restricted to organizations that have already won a DHS SBIR Phase I award. Phase II is structured as a procurement contract governed by SBIR data-rights provisions, not a grant, and performance milestones are set by the component-specific technology need that originated the Phase I topic.

Eligibility requirements mirror those of Phase I: U.S. small businesses with fewer than 500 employees are the only eligible applicant class. Nonprofit organizations, universities, research institutions, and individual applicants are ineligible. The 24-to-36-month performance window is considerably longer than Phase I's five months, reflecting the shift from feasibility assessment to prototype demonstration. Contract options may be exercised by DHS for Phase II projects where the company has secured firm commitments for follow-on private or government funding, extending the project scope beyond the base period. DHS has awarded $14.9 million to 15 small businesses for R&D prototypes in a single 2023 cycle, illustrating the scale of Phase II engagement across topics.

After Phase II, companies with successful prototypes may proceed to Phase III — commercialization and further development funded from private or non-SBIR government sources, with no statutory dollar cap or time limit on Phase III awards. The Phase II to Phase III transition is the intended commercialization pathway for DHS SBIR awardees. Companies targeting Phase II should note that the evaluation criteria and proposal format requirements are contained in the SAM.gov solicitation PDF for each cycle; the DHS SBIR program portal at oip.dhs.gov/sbir/public is the authoritative source for current solicitation status.