Introduction
Preparing a competitive Department of Defense (DoD) SBIR Phase II proposal is a significant opportunity—and a serious challenge. Unlike Phase I, which focuses on feasibility, Phase II is about execution. You’re no longer pitching a concept; you’re proposing a path to a tangible, field-ready solution. This phase typically includes larger budgets, a longer timeline, and higher expectations from reviewers.
This checklist is designed to help small businesses stay on track and avoid the common pitfalls that can derail even technically strong proposals. Whether you’re refining your Phase II narrative or assembling final documents, the guidance below will help ensure your submission is complete, compliant, and compelling.
Understanding the DoD SBIR Phase II Proposal
Before diving into the technical volumes and cost breakdowns, it’s critical to understand what makes a Phase II proposal eligible and strategically sound.
Eligibility First
Only firms that have successfully completed a DoD SBIR Phase I award—or have been specifically invited for Direct-to-Phase-II—are eligible to submit a Phase II proposal. If your firm hasn’t received official notification of eligibility, stop and confirm before proceeding.
Eligibility Reminder
Only Phase I awardees (or Direct-to-Phase-II invitees) can submit a Phase II proposal. Confirm your invitation before beginning.
Purpose of Phase II
This is the core R&D phase of the SBIR process. Phase II awards are meant to fund the development, testing, and demonstration of innovations proven feasible in Phase I. Your proposal must build logically on Phase I results and present a convincing plan to produce a prototype or demonstrable solution.
Typical Scope and Duration
DoD Phase II projects generally span up to 24 months and can receive funding from $500,000 to over $1 million. The scope of work should reflect the larger scale: deeper R&D, expanded staffing, more rigorous testing, and refined commercialization plans are all expected.
Timing and Invitation
Unlike Phase I, where solicitations are publicly posted, Phase II invitations often come directly from the component agency after Phase I completion. Be sure to check your Phase I award notice or component-specific guidance for submission deadlines and requirements.
Essential Components of the Phase II Proposal
A successful DoD SBIR Phase II proposal includes multiple volumes, each with distinct content and formatting requirements. The proposal must be cohesive, thoroughly justified, and tailored to the expectations of the sponsoring DoD component.
By addressing each volume with precision and intent, your proposal will clearly demonstrate the value, feasibility, and readiness of your technology.
Compliance and Submission Guidelines
Your proposal may be technically outstanding, but it won’t make it past the gate if it doesn’t comply with DoD’s submission rules. Phase II proposals are evaluated not just on content, but also on format, completeness, and timeliness.
Follow Formatting Instructions Precisely
Use standard formatting: typically 1-inch margins, readable fonts (e.g., Times New Roman or Arial, 11–12 pt), and clearly labeled sections. Many agencies enforce page limits and attachment rules—especially for the Technical Volume. Check your component’s guidance for specifics.
Use the DSIP Portal
All Phase II proposals must be submitted through the Defense SBIR/STTR Innovation Portal (DSIP). Familiarize yourself with the portal well before the deadline to avoid technical issues. Verify that all required volumes and forms are uploaded and properly labeled.
Tip:
Submit your proposal at least 48 hours before the deadline to avoid last-minute DSIP portal issues.
Know the Deadlines
Deadlines are typically tied to your Phase I completion date or direct invitation. Late submissions are not accepted, even if the delay is due to portal errors. Confirm your due date early and plan backwards from it.
Double-Check for Completeness
Before clicking submit, confirm that all volumes are included, certifications are current, and that the proposal stands on its own. Reviewers may not reference your Phase I report, so everything needed to evaluate your Phase II effort must be contained within the submission package.
Evaluation Criteria and Best Practices
A strong Phase II proposal aligns with DoD’s evaluation criteria and demonstrates clear, compelling value. Understanding how reviewers assess proposals will help you craft a submission that stands out.
- Technical Merit
- Team & Resources
- Commercial Potential
Your technical volume must show that the work plan is well-conceived, methodologically sound, and builds logically on Phase I results. Highlight how your R&D plan addresses technical risks and leads to measurable deliverables.
Demonstrate that your team is qualified to execute the proposed R&D. Include resumes and clarify roles. Also, show access to necessary facilities and any subcontractor or partner contributions.
Show you understand the market—both DoD and commercial—and have a clear plan to reach it. Define your target customer, revenue model, and go-to-market strategy. Letters of interest or commitment can strengthen this section.
Best Practices Across the Board
- Be clear and concise: Avoid jargon unless absolutely necessary.
- Cite Phase I evidence: Data, test results, or feedback must justify the Phase II approach.
- Tailor your plan: Generic content signals lack of focus. Address the specific needs of your DoD sponsor.
- Proofread rigorously: Spelling and formatting errors can diminish perceived credibility.
By addressing each criterion with specificity and evidence, your proposal will not only meet requirements—it will resonate with reviewers.
Post-Submission Considerations
Submitting your Phase II proposal is a major milestone—but it’s not the final step in the process. Knowing what happens next will help you stay prepared and responsive.
Understand the Review Process
DoD components typically conduct multi-stage reviews that include technical experts, program managers, and commercialization evaluators. The process can take several months. Be patient, but monitor your email and DSIP notifications regularly for any requests or updates.
Prepare for Possible Follow-Up
Some agencies may request clarifications or invite you to present your proposal in more detail. Have your team ready to speak to the technical plan, budget rationale, and commercialization pathway. If you proposed a prototype, make sure your demonstration strategy is realistic and fundable.
Pro Tip:
Requesting a debrief—even if selected—can provide valuable insights into how reviewers interpreted your proposal.
Start Thinking About Phase III
Phase II is not the end goal—it’s a bridge. Use the downtime after submission to refine your commercialization and transition strategies. Engage with potential DoD end users or prime contractors to solidify future pathways.
Track Communications
All official correspondence will be via the DSIP system or your contracting officer. If selected, you’ll be contacted to begin negotiations. If not selected, take time to review feedback and revise your approach for future opportunities.
Conclusion
Securing a DoD SBIR Phase II award is both an opportunity and a challenge. Unlike Phase I, where you’re proving feasibility, Phase II demands that you deliver results—real, measurable, and strategically relevant to national defense. Your proposal must clearly show how you will transition from concept to prototype, from data to deployment.
By following the checklist laid out in this guide, your team will be well-positioned to submit a compliant, persuasive, and technically sound proposal. Pay close attention to the required volumes, match your narrative to DoD expectations, and start building relationships that support your transition plan.
Treat every step—technical writing, budget planning, commercialization strategy—not just as a submission requirement, but as a foundation for real-world success.