In Phase I, the company must prove the feasibility of its concept within a six-month, Phase I - $70,000 effort. The Phase I contract also includes an option, for up to $50,000, which may be exercised by the Army to fund interim Phase II activities if the project is selected to receive a Phase II award. The option is intended to fund initial Phase II activities for up to four months while the Phase II contract is being negotiated, providing critical continuity to the company's overall SBIR effort.

Successful Phase I companies are invited to compete for Phase II funding by submitting Phase II proposals near the end of their Phase I efforts. Phase II is a substantial R&D effort, up to $730,000 over two years, and is intended to result in a dual-use prototype product or service meeting the requirements of the original solicitation topic and which can be made commercially viable.

Phase III is the goal of every SBIR effort, and represents the commercialization phase of the program. In Phase III, the successful company markets the products or services developed in Phase II, either to the government or in the commercial sector. No SBIR funds can be used in Phase III. The intention of SBIR is that each company receiving an investment of SBIR funds during Phases I and II should now be prepared to compete in the commercial marketplace in Phase III.

ARMY SBIR SCHEDULE

In a given year, the Army reviews (1) Phase I proposals from each solicitation, (2) invited Phase II proposals based on previous Phase I projects, and (3) ongoing Phase II projects awarded in previous years.

The Phase I table below references specific months of the year, but the actual dates are subject to change. Check the DoD SBIR/STTR web site at http://www.acq.osd.mil/osbp/sbir/ for the latest solicitation milestones.

Phase II proposals are invited and selected on a rolling basis, during (or after completion of) the Phase I project. Below is a sample timeline for a Phase II proposal: