Small Business Innovation Research (SBIR)/ Small Business Technology Transfer (STTR) Administration

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Program, managed under Program Element (PE) 0605790D8Z by the Office of the Secretary of Defense, is designed to stimulate technological innovation, address federal research and development (R&D) needs, and foster entrepreneurship among women and socially or economically disadvantaged persons. The program also aims to increase private sector commercialization of innovations derived from federal R&D funding. The SBIR/STTR programs are authorized under 15 U.S.C. 638 and support the Department of Defense's priorities to defend the nation, take care of its people, and succeed through teamwork.

The SBIR/STTR programs are executed across the Department of Defense, with participation from agencies such as the Army, Navy, Air Force, DARPA, Missile Defense Agency, Defense Threat Reduction Agency, U.S. Special Operations Command, and others. These agencies use the program to competitively fund scientific and technical innovation that aligns with the interim National Defense Strategy modernization priorities and specific mission needs. Defense-wide funds are set aside annually to support these initiatives, encouraging small businesses to engage in RDT&E activities with the potential for commercialization.

SBIR Challenge Admin is the primary budget line under PE 0605790D8Z, providing the only source of funds for the coordination, administration, and execution of the Department's SBIR/STTR programs. The Director of Defense SBIR/STTR within the Office of the Under Secretary of Defense for Research and Engineering (OUSD(R&E)) oversees essential program activities required by law, including policy development, program oversight, outreach, training, and financial management. This line item also supports the operation and maintenance of the Defense SBIR/STTR Innovation Portal (DSIP), which is crucial for managing proposals, awards, and data analytics.

The SBIR/STTR programs are structured in three phases. Phase I focuses on determining the scientific, technical, and commercial merit of submitted ideas. Phase II is the principal research or development effort, expected to produce a well-defined deliverable prototype. Phase III involves further development and commercialization, funded by private sector or non-SBIR/STTR government sources, with the goal of transitioning prototypes into viable products or services for military and commercial markets.

For FY 2025, the program's objectives include implementing the due diligence program, providing small businesses with revised foreign disclosure forms, and continuing the development of DoD-wide guidance to streamline processes and decrease award timelines. The program also plans to implement and report on new requirements from the SBIR/STTR program reauthorization, attend outreach events to promote opportunities, and incorporate reauthorization language into Phase III guidance. These efforts are intended to improve transparency, efficiency, and compliance across all participating DoD agencies.

Looking ahead to FY 2026, the program will sustain and provide oversight of the Due Diligence Program, continue developing guidance to streamline processes, and implement new reporting and policy directives from the anticipated SBIR/STTR program reauthorization. Enhancements to DSIP are planned to improve user experience and data management. The program will also conduct comprehensive policy reviews to ensure alignment with evolving DoD priorities and legislative requirements. Strategic partnerships with federal agencies, industry, and academia will be expanded to foster innovation and commercialization opportunities.