Small Business Innovative Research

Small Business Innovative Research (SBIR) Program is a Defense Logistics Agency (DLA) initiative under Program Element PE 0605502S, designed to foster innovative research and development proposals from the small business community. The primary objective of the SBIR program is to address DLA's strategic and operational requirements by leveraging the agility and creativity of small businesses. Through a competitive, multi-phase process, the program seeks to develop new technologies that support both defense applications and commercial markets. This approach enhances supply chain excellence and ensures the efficient flow of DLA-managed materiel to military end-users.

The SBIR program operates under the mandates of Public Law 106-554 and Public Law 107-50, which require a two-phase competition for small businesses with innovative technologies. Phase I focuses on demonstrating the feasibility of proposed technologies and establishing a strong business case for Phase II investment, which involves prototype development or proof-of-concept demonstrations. Selection criteria for Phase II emphasize technical risk, feasibility, commercialization potential, and anticipated return on investment. This process ensures that funded projects offer tangible benefits to both the Department of Defense and the broader economy.

Strategic Focus Areas of the SBIR program are closely aligned with the National Defense Strategy and the DLA Strategic Plan. Key research areas include hypersonic vehicles, domestic critical mineral production, reshoring defense critical materials, and supply chain innovation. For hypersonic vehicles, SBIR prioritizes innovations in thermal protection systems to reduce lead times and production costs, addressing bottlenecks in the supply chain. In the area of domestic critical mineral production, the program supports advancements in separation and refining technologies to ensure reliable access to rare earth elements and other strategic materials.

Another major objective is Reshoring Defense Critical Materials, where SBIR invests in next-generation technologies and circular economies to reestablish domestic expertise and production capacity for materials such as permanent magnets and lithium-ion batteries. These efforts aim to insulate the Department of Defense from global supply chain disruptions and export restrictions, ensuring the availability of key components for a wide range of defense platforms. Additionally, SBIR promotes supply chain innovation by enabling small businesses to develop technologies that improve procurement lead times, reduce lifecycle costs, and enhance overall supply chain resilience.

Defense Microelectronics Activity (DMEA) is a notable participant in the SBIR program, focusing on advanced microelectronics concepts, technologies, and applications. DMEA's SBIR projects in FY24 included the development of rapid component classifiers, analysis and re-engineering tools for printed circuit board assemblies, high-performance clock oscillators, versatile wafer probe systems, robotic leak repair solutions, ultra-high voltage reliability test systems, monolithic SDR SoC for SATCOM, and high voltage package encapsulants. These projects aim to address Department of Defense microelectronics research and development needs while increasing the potential for private sector commercialization.

Recent accomplishments of the SBIR program include establishing domestic suppliers for critical minerals, developing recycling technologies for rare earth elements, and qualifying new products for high-performance weapon systems. The program has also bolstered the supply chain for hypersonic vehicles, initiated projects to reshore critical mineral production, and sponsored innovative manufacturing technologies to improve weapon system lifecycle performance. Additive manufacturing process monitoring and control systems have been transitioned to original equipment manufacturers and research institutions, further expanding the capabilities of the small business industrial base.

The SBIR acquisition strategy is designed to align project execution with DLA's strategic priorities. New projects are solicited through the Department of Defense SBIR Broad Agency Announcement, with three separate solicitation periods each year. This approach ensures that SBIR/STTR-developed technologies are responsive to current and future DLA requirements, supporting readiness, lethality, and supply chain resilience across the Department of Defense.