Navy Catapult (Phase II.5)

Navy Catapult Phase II.5

Supports Naval-selected second-stage development for experienced small businesses with strong track records.

Navy Catapult is a Department of the Navy second Phase II SBIR program that extends R&D investment and accelerates technology transition to fleet or force operational use. Administered by the Naval SBIR Program Office, Catapult provides awards ranging from $1.7 million to $13 million to small businesses nominated by a Naval customer—including System Commands (SYSCOMs) such as NAVAIR, NAVSEA, NAVWAR, MCSC, and others. There is no annual solicitation cycle, no fixed submission window, and no self-nomination: the Naval customer drives the process entirely, nominating companies based on priority of need, availability of SBIR funding, and potential for additional non-SBIR matching funds. As of FY24, the Catapult portfolio comprised 188 active agreements totaling $248 million in SBIR/STTR funding plus $63 million in matching funds, with 69 new awards made in FY24.

Eligibility requires that the company meet SBIR/STTR size and ownership rules—500 employees or fewer, at least 51% US-citizen or permanent-resident owned. Venture capital–majority-owned small businesses are explicitly eligible for SBIR Catapult awards under Navy policy. The nominated project must continue or complete work performed under a prior SBIR Phase II funding agreement, and the company must remain eligible for a second Phase II award. Cross-agency nominations are accepted: companies that hold prior Phase II awards from NSF, Army, Air Force, DARPA, or other federal SBIR programs can be nominated by a Naval customer if the technology addresses a Navy or Marine Corps priority. TRL 4–7 technologies with demonstrated Navy interest are the most common profile for Catapult nominees.

Companies targeting Catapult should engage their Naval program officer or System Command sponsor during Phase II performance, identify which Navy office has an operational need for their technology, and facilitate the customer's nomination package rather than waiting for a formal call. Catapult nominations are reviewed on an ongoing basis; approval depends on the Naval customer's budget cycle and prioritization. Successful Catapult awardees are positioned for Phase III sole-source follow-on procurement contracts, which carry no dollar cap and represent entry into a Navy program of record.