DHS SBIR Phase II proposals are significantly more demanding than their Phase I counterparts. These applications aren’t just about continuing your research—they’re about demonstrating feasibility, presenting a working plan for prototyping, and articulating a clear commercialization path. With funding up to $1.5 million and durations of up to 36 months, DHS expects awardees to show serious readiness for development and deployment.
This checklist breaks down every element required in a DHS Phase II proposal. It’s designed to help small businesses prepare a compliant, compelling submission that reflects their progress, capabilities, and market potential.
Confirm Your Eligibility and Invitation
Before preparing any part of your Phase II proposal, confirm that you’re actually eligible to submit. DHS only accepts Phase II applications from companies that:
- Successfully completed a DHS SBIR Phase I contract, and
- Received a direct invitation from DHS to submit for Phase II.
Phase II is not open to the general public. You must wait for the official Phase II instructions, which are usually issued by the DHS Contracting Officer or posted to the SBIR portal. These instructions will specify the due date—typically just a few weeks to two months after your Phase I concludes.
Submissions without a DHS invitation will be automatically rejected.
Only invited Phase I awardees are eligible to apply for Phase II funding.
Complete the Core Proposal Components
Your DHS SBIR Phase II proposal includes both portal-submitted forms and a comprehensive PDF narrative. The main body of your proposal—the Technical Volume—is typically capped at 40 pages and follows a structure similar to Phase I, but with added detail and emphasis on results, development, and commercialization.
Cover Sheet and Cost Proposal
Submit these online via the DHS SBIR portal. You’ll update basic business and project information, and submit a new, detailed cost breakdown—up to the funding cap (usually $1M–$1.5M). Make sure this aligns with the scope of your Phase II work.
Technical Proposal (PDF Upload)
This document forms the core of your submission. Use the same formatting rules as in Phase I (font, margins, etc.). Organize the proposal into sections I through X, as outlined below.
Commercialization Plan (Section VII)
The Commercialization Plan is one of the most heavily weighted sections in your DHS SBIR Phase II proposal. DHS wants clear evidence that your innovation has real market potential—whether within DHS, other federal agencies, or the broader commercial sector.
At minimum, DHS expects six specific components to be addressed:
- Company Info
- Customers & Competition
- Market Strategy
- Financing & Revenue
- Intellectual Property
- Assistance & Mentoring
Describe your business, its core competencies, past commercialization success, and readiness to support a Phase III transition. Mention revenue streams, previous product launches, or customer traction.
Define your customer base, both inside and outside DHS. Include specific DHS components (e.g., FEMA, TSA) and private sector verticals. Acknowledge competitive solutions and position your offering clearly.
Detail your go-to-market approach. Include timeline to market entry, early adopters, sales projections, and any DHS transition mechanisms (e.g., Phase III contracts, licensing deals).
Explain how you’ll fund development and commercialization beyond Phase II. Identify Phase III funding targets, investment strategies, revenue models, or partners.
Summarize your IP strategy, including existing patents and any filings planned for Phase II. Address export controls, trade secrets, and how IP supports your commercial advantage.
List any incubators, accelerators, federal programs, or business consultants you’re using. Mention use of DHS’s Transition Accelerator or Technical and Business Assistance (TABA) funding if applicable.
Each item should be clearly addressed in your proposal. Omitting even one can reduce your evaluation score and jeopardize funding.
Required Attachments
In addition to the technical proposal and cost submission, DHS Phase II applicants must include the following documents, depending on their award history and solicitation instructions:
Updated Briefing Chart
This one-page summary updates your Phase I chart with Phase II objectives, expected outcomes, and commercialization goals. DHS often uses this document during internal reviews and stakeholder briefings. If the solicitation requires it (most do), it must be submitted as a separate PDF.
Commercialization Report
If your company has received any prior SBIR or STTR Phase II awards from any federal agency, you must include a Commercialization Report. This document summarizes prior outcomes—products launched, follow-on funding secured, patents, and more. If you have no prior Phase II awards, you will typically indicate “None” on the cover sheet, and no report is required.
These attachments are not optional. They play a vital role in how DHS assesses your technical and commercial readiness.
Best Practices for DHS SBIR Submissions
Submitting a strong Phase II proposal isn’t just about checking the boxes—it’s about standing out. DHS reviewers are looking for depth, clarity, and a clear path to implementation or commercialization. Here’s how to ensure your proposal delivers:
- Anchor Your Work Plan in Realism: Your Phase II plan should be ambitious but grounded. Include achievable milestones, realistic schedules, and clearly defined deliverables. Reviewers notice vague or overly optimistic timelines.
- Prove Phase I Was a Success: Don’t gloss over your Phase I work. Show how it validated the concept, reduced risk, and led logically to your Phase II objectives. Use specific data, test results, or pilot feedback.
- Make Your Commercialization Plan Specific: General statements about market potential aren’t enough. Name specific DHS components (e.g., TSA, CBP), private sector customers, and include concrete market entry plans.
- Be Clear About Team Roles: Clarify who’s doing what—especially if you’re bringing in new subcontractors or consultants. Include letters of commitment if they’re critical to your success.
- Submit Early: Don’t wait until the final hours to upload your proposal to the DHS portal. Submission errors, server lag, or form issues can cost you the entire opportunity.
Submit at least 48 hours before the deadline.
Last-minute uploads are the #1 cause of disqualified applications.