THE THREE PHASES OF THE SBIR PROGRAM

Phase I - Feasibility Study

A small business may submit a Phase I proposal in response to the topics published in an open solicitation from a participating federal agency.  A Phase I SBIR award, to demonstrate the feasibility of a concept, is typically funded up to $100,000.  Since many participating agencies favor commercial potential, companies should begin to pursue commitments for follow-on funding during this Phase.  The SBIR Program is quite competitive with approximately one in ten Phase I proposals being funded.

Phase II - Development

Upon successful completion of a Phase I project, the program manager(s) may invite a company to submit a Phase II proposal for consideration.  A separate Phase II solicitation is not issued, and unsolicited SBIR proposals are not accepted.  A Phase II proposal should be more extensive than the Phase I proposal and should demonstrate the company's potential to render a product or process.  A company that demonstrates a potential for follow-on funding may receive a higher score during the Phase II evaluation process.  Phase II proposals are funded for approximately two years at $750,000.

Phase III - Commercialization

Phase III, or commercialization, is the ultimate objective of all SBIR initiatives and a critical part of the SBIR Program.  Small firms may reach Phase III through private sector commercialization or by obtaining non-SBIR government follow-on contracts for additional technology development.

[More detailed description of the SBIR Program]

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