SBIR (Small Business Innovation Research)
SBIR stands for Small Business Innovation Research. SBIR is a federal program where agencies with large research budgets set aside money for small businesses to develop new technology. It runs in phases: Phase I tests feasibility, Phase II builds and develops, and Phase III moves the result into real use.
Phase III does not use SBIR program money, but agencies can award Phase III work without a new competition. The company must be a small, majority U.S.-owned business. Program rules and authorization are set by Congress, so check current status before you plan around it.
Why it matters to a small contractor
SBIR is for firms with a real new idea, like a better product, tool or process. If you invented something on the job that solves a government problem, it may be worth a look.
Example
A small HVAC company has a new low-energy dehumidifier design for barracks. It wins a Phase I award to test feasibility, then applies for Phase II to build units.
SBIR: common questions
Do I need a PhD to win SBIR?
No. You need a strong technical idea and a capable principal investigator who works mainly for your company.
What is special about Phase III?
Agencies can award Phase III contracts sole source because the work came out of earlier SBIR phases.
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