Introduction
Preparing a successful U.S. Department of Transportation (DOT) SBIR Phase II proposal isn’t just about filling in templates—it’s about timing, strategy, and precision. For small businesses that completed a DOT Phase I contract, Phase II represents a major opportunity: up to $1.5 million over two years to advance your technology toward commercialization. But with only about 60 days to respond after receiving your Phase II invitation, there’s no room for guesswork. This checklist breaks down exactly what you need to do—before and during proposal development—to stay compliant, competitive, and on schedule across all DOT agencies, including FAA, FHWA, FTA, and FMCSA.
Before You Write: Pre-Planning Essentials
Before you draft a single paragraph of your Phase II proposal, several critical steps must be completed to ensure you meet DOT expectations and avoid costly delays.
Review the Invitation Timeline
DOT typically sends Phase II instructions around 30 days before your Phase I contract ends, with a submission deadline roughly 60 days later. Mark this deadline immediately and work backward to allocate time for internal reviews, document assembly, and last-minute adjustments. If needed, you may request an extension—but only with written justification.
Download the Official Templates
Head to the DOT SBIR website and download the full Phase II Proposal Instructions, including appendices A–L. These templates are mandatory. Even a formatting error or missing section heading can trigger rejection.
Confirm Your Eligibility and Registrations
Your business must still qualify as a Small Business Concern: U.S.-owned, under 500 employees, and with the PI primarily employed by your firm. Confirm that your SAM.gov registration and Unique Entity Identifier (UEI) are active. Update your Company Registry profile at SBIR.gov and be ready to include your Company Commercialization Report if applicable.
Coordinate with Your Technical Monitor
If DOT permits, reconnect with your Phase I Technical Monitor to clarify expectations. Though they can’t write your proposal, they can highlight strategic focus areas that strengthen your Phase II narrative.
Summarize and Build on Phase I
Gather all Phase I deliverables and your final report. Be ready to summarize key findings, demonstrate feasibility, and identify any gaps your Phase II work will address. This summary will anchor your Section A narrative and help justify the Phase II continuation.
Map Out the Phase II Work Plan
Draft a high-level outline of objectives, tasks, and milestones across the two-year period. Ensure the technical scope aligns with the original solicitation and any feedback from your Phase I results.
Confirm Your Team and Capabilities
Verify that your Principal Investigator is available and remains primarily employed by your business. Identify any subcontractors or consultants early and begin securing signed letters of commitment. Keep in mind that at least 50% of the Phase II work must be performed by your firm.
Start Estimating Costs
Begin budgeting by task. Request quotes for key equipment, materials, and services, and estimate labor hours per role. DOT Phase II proposals are generally capped around $1.5 million—do not exceed the stated maximum.
Initiate Commercial Planning
Your proposal must include a detailed Commercialization Plan. Begin gathering market research, outlining your value proposition, and contacting potential end-users or investors for letters of interest.
Check for Agency-Specific Requirements
Modal agencies may have additional standards—FAA certification, FHWA environmental benchmarks, etc. Align your proposal with any such requirements noted in your solicitation or Phase I feedback.
Plan for Compliance Approvals
If your project involves human or animal research, prepare to submit IRB or IACUC materials early. DOT requires proof of IRB approval or exemption before releasing funds.
Writing the Proposal: Structure and Best Practices
Once you’ve completed the pre-planning groundwork, it’s time to develop your formal proposal. DOT Phase II submissions follow a strict format and require careful attention to content, compliance, and presentation.
Use the Required Section Format
DOT mandates a specific section structure—labeled A through L—for all Phase II technical proposals. Each section should begin with the exact heading listed in the instructions:
- A) Identification and Significance of the Problem/Opportunity
- B) Technical Objectives
- C) Work Plan
- D) Related Work
- E) Anticipated Results
- F) Commercialization Strategy
- G) Key Personnel
- H) Facilities/Equipment
- I) Consultants/Subcontracts
- J) Company Commercialization Report
- K) Sustainable Acquisition
- L) Human Factors (if applicable)
Use the correct section headings
Proposals missing required headings (A–L) can be rejected before review. Match your format to DOT’s template exactly.
Adhere to Page Limits and Formatting
Most DOT Phase II narratives are capped at 25 pages, excluding appendices. Use a minimum 10-point font and 1-inch margins on 8.5″x11″ pages. Page numbers must be sequential throughout. If you exceed limits, reviewers may stop reading—or your proposal may be disqualified.
Don’t risk rejection
Double-check formatting and page count before submission. Proposals that exceed limits may not be reviewed.
Craft a Strong Problem Statement and Phase I Summary (Section A)
Start with a clear description of the transportation challenge your innovation addresses. Briefly summarize your Phase I findings—what was accomplished, and how those results support Phase II feasibility. Link the work to DOT’s mission (e.g., safety, equity, efficiency).
Define Clear, Measurable Objectives (Section B)
List 2–5 technical goals for Phase II, each specific and achievable within the proposed timeframe and budget. For example: “Validate prototype under real-world traffic conditions with ≥95% detection accuracy.”
Detail Your Work Plan (Section C)
Break the Phase II effort into manageable tasks. For each, describe the methodology, responsible personnel or subcontractor, timeline, and expected output. Use milestones (e.g., “Q3: Begin field testing”) and include a table or Gantt chart in your appendices if allowed.
Describe Related Work (Section D)
Acknowledge similar R&D and explain how your approach differs—whether through cost, performance, usability, or regulatory alignment. This shows you understand the competitive landscape and have positioned your solution accordingly.
List Anticipated Results (Section E)
Explain what tangible outcomes Phase II will deliver, how they’ll be measured, and how they relate to your objectives. Examples include a tested prototype, validated data, or a working software module.
Build a Compelling Commercialization Plan (Section F)
This section should answer: Who will buy this, why, and when? Address market size, pricing, competitors, and how you’ll move from demo to deployment. Include your IP position and any third-party interest.
Highlight Key Personnel and Resources (Sections G–I)
Describe the experience and role of each core team member. Reiterate that the PI will remain primarily employed by your firm. For facilities and subcontractors, explain access and integration into the project plan.
Include the Right Supporting Materials (Sections J–L)
Attach a Company Commercialization Report if you have prior Phase II awards. Insert the required Sustainable Acquisition statement and address human subject protections if applicable.
Final Tips for a Competitive Proposal
Even a technically sound proposal can fall short if it misses key expectations or overlooks common pitfalls. These tips can help you stay competitive.
Avoid Over-Explaining Phase I
DOT reviewers will have access to your Phase I report. Use your narrative to highlight only the most critical results and explain how they justify Phase II. Refrain from copying lengthy Phase I text into the new proposal.
Stay Within Scope
Your Phase II must clearly build upon the objectives of your original solicitation. Expanding too far beyond the original scope—especially if it introduces unrelated technologies or applications—can raise red flags.
Use Clear, Non-Jargon Language
Reviewers come from diverse technical and policy backgrounds. Write for a well-informed reader, not just subject matter experts. Avoid acronyms unless defined, and minimize dense text blocks.
Include Letters of Support (If Allowed)
If DOT permits appendices with letters, secure statements of interest from potential partners, end users, or investors. A credible letter can significantly strengthen your commercialization section.
Get a Second Set of Eyes
Have someone outside your team review your proposal for clarity, typos, and consistency. A fresh perspective often catches overlooked issues.
Conclusion
DOT SBIR Phase II proposals demand more than technical depth—they require precision, compliance, and strategic foresight. Start early, use DOT’s structure exactly, and align every element of your narrative with your Phase I results and commercialization vision. Small errors can lead to rejection, while thoughtful planning can position your firm for success in Phase II and beyond.
Whether you’re coordinating letters of support, finalizing your budget, or revising your work plan, use this checklist as your roadmap from invitation to submission. With up to $1.5 million in funding on the line, the details matter.
Watch your subcontracting limits
DOT SBIR Phase II proposals must show that ≥50% of work (by cost) is done by your firm. Exceeding this may disqualify your application under 13 CFR §121.702.