The Army SBIR Phase II Enhancement initiative provides SBIR funding to projects that require additional funding during their open Phase II contract. Although rare, instances where more funding may be required on a Phase II should initially be identified by the project’s Contracting Officer’s Representative (COR). The COR, in conjunction with the Technical Assistance Advocate (TAA) and the organization’s SBIR Program Coordinator (PC) will compile the documentation needed for PM, Army SBIR to make a determination. Documentation should be forwarded to PM, Army SBIR no later than 3 months prior to the end of the Phase II period of performance. Businesses that graduate from the SBIR small business definition or are acquired by a larger business that would not qualify during their Phase II contract will not be considered for Phase II Enhancement funding. Generally SBIR Phase II Enhancement funding will not exceed $500,000 per request and funding is subject to availability and a very deliberate approval proces.

Phase II Enhancement documentation consists of the following:

1. A memorandum from the participating organization’s Technical Director, PEO, or his/her designated representative to PM, Army SBIR providing a compelling reason for the additional SBIR funding.
2. A concise statement of work (SOW) for the additional effort to be executed with the SBIR Phase II Enhancement funds. The SOW should contain adequate detail to be included in any contract modification actions.
3. A detailed cost proposal for the Phase II enhancement. Matching funds are strongly encouraged and if they are available include the amount and source in the cost estimate. Note that matching funds represent a commitment on the part of the transition partner and weigh favorably toward approval.
4. Note that Phase II enhancement funding can only be used for continuation of the Phase II R&D effort. These funds are intended to support transition of the SBIR technology by means of enhancing capability, providing additional prototypes, addressing additional proof of concept, or similar areas of technology demonstration. They are not designed to supplement system development efforts, nor are they intended to provide capital equipment to develop a production capability of the SBIR technology.
5. Letters of interest or supporting documents should be provided from potential customers of the SBIR developed technology. Ideally, this would include a Technology Transition Agreement or a similar document that details how the SBIR technology will be used by the accepting organization.