SpaceWERX SBIR/STTR Phase II

SpaceWERX SBIR/STTR Phase II

Supports United States space firms advancing proven prototypes into stronger development and demonstration milestones.

SpaceWERX SBIR/STTR Phase II contracts fund prototype development of $1.25 million–$1.8 million over up to 24 months for US small businesses building space-relevant or dual-use defense-commercial technology. The programme operates under the DoD-wide SBIR/STTR broad agency announcement administered through dodsbirsttr.mil, with SpaceWERX serving as the US Space Force innovation arm and a division of AFWERX. In calendar year 2023, SpaceWERX awarded 142 Open Topic Phase II SBIR/STTR contracts totalling approximately $151 million, establishing a substantial annual contracting baseline.

Standard Phase II eligibility requires successful completion of a SpaceWERX Phase I contract. A Direct-to-Phase II sub-track is also available for companies that can demonstrate sufficient prior work to bypass Phase I; this sub-track carries the same $1.25 million–$1.8 million award range. A critical gate for Open Topic Phase II awards — both standard and D2P2 — is the USSF Customer Memorandum: a formal sponsor within the US Space Force mission architecture must endorse the project before the contract can be issued. Special Topic Phase II solicitations may have different sponsorship requirements specified in individual topic documents. SBIR applicants must be US for-profit small businesses with 500 or fewer employees; STTR applicants must pair with a US research institution.

Companies aiming to win Phase II should invest early in identifying and cultivating a USSF government end-user who can provide the Customer Memorandum, as this is the single most common bottleneck for Open Topic awards. Successful Phase II graduates become eligible for STRATFI (up to $15 million in matched government appropriations) and TACFI (up to $2 million matched) scale-up contracts through SpaceWERX's Accelerate division, providing a defined pathway from feasibility through prototype to programme-of-record transition.