Checklist for EPA SBIR Phase II Proposal

Transitioning from a successful Phase I project to a well-prepared Phase II proposal is critical if your small business is aiming to scale its EPA-funded innovation. Unlike Phase I, which demonstrates feasibility, Phase II focuses on developing, piloting, and positioning your technology for commercialization. This guide offers a detailed, step-by-step checklist tailored to the EPA SBIR Phase II application process, helping you address key requirements, align with EPA’s strategic goals, and submit a compliant, competitive proposal.

Start Early & Confirm Eligibility

The EPA typically releases Phase II solicitations toward the end of the Phase I contract period—usually around May—with proposals due approximately 45 days later. That narrow submission window makes early preparation essential. Begin planning your Phase II strategy and registrations well in advance, ideally several months before the anticipated solicitation release.

Before starting your proposal, ensure your Phase I contract has been fully completed. This includes submitting your final report, delivering all contractual milestones, and documenting the results that support your feasibility claims. Without this foundation, reviewers may question the credibility of your Phase II proposal.

Submit registrations early—some take up to 8 weeks.
To avoid disqualification, begin updating your SAM.gov and FedConnect profiles well before the solicitation drops.

Complete All Required Registrations

To submit a Phase II proposal to the EPA, your business must hold several active registrations. These can take weeks to finalize, so it’s critical to begin early—especially if any expired accounts need reactivation.

Required Systems & Identifiers

• SAM.gov – Ensure your System for Award Management profile is active, includes a valid Unique Entity Identifier (UEI), and authorizes federal contract awards. This is mandatory for receiving an EPA SBIR contract.
• SBA Company Registry – Register your firm and obtain a Small Business Concern (SBC) Control ID to include in your proposal.
• FedConnect – The only accepted submission portal for EPA SBIR proposals. Link your SAM profile and confirm login credentials.
• Grants.gov – While not used for EPA submissions, it’s helpful for accessing solicitation documents and staying eligible for other agency SBIRs.

Special Notes

• EIN Consistency – Your Employer Identification Number and business address must be consistent across all registrations.
• eRA Commons – Not needed for EPA but required if you plan to pursue NIH SBIRs in the future.

Integrate Phase I Results Into Strategy

Your Phase II proposal must clearly build upon the progress made during Phase I. Review all technical reports, data, and customer feedback collected during your initial contract to identify the strongest indicators of feasibility. These findings should form the basis for your Phase II objectives and R&D plan.

Make sure to restate your alignment with the EPA’s solicitation topic and mission areas—such as clean air, clean water, climate resilience, or environmental justice. Reviewers expect a direct, well-documented connection between your technology and EPA program priorities.

When describing your environmental and societal impact, go beyond general claims. Use lifecycle thinking and, if possible, quantify projected improvements (e.g. pollution reduction, cost savings, health outcomes).

EPA Phase II reviewers assess “Impact/Relevance to Topic” as a core criterion.

Your proposal should connect clearly to environmental outcomes the agency prioritizes.

Build a Strong Technical Proposal

Your technical narrative is the backbone of your EPA SBIR Phase II submission. It must present a credible plan for moving your innovation from feasibility to near-commercial readiness over a two-year timeline.

Start with a concise problem statement and background. Briefly explain the environmental issue your technology addresses and why current solutions fall short. Next, use your Phase I results to demonstrate feasibility—this serves as evidence that Phase II objectives are technically achievable.

Break your project into clear R&D tasks. Each task should support a Phase II objective and tie into your overall commercialization trajectory. Include technical methods, anticipated outputs, and the resources required (facilities, equipment, staff).

Outline your project schedule and define milestones with associated metrics. These checkpoints not only show planning discipline but also give reviewers a way to gauge your progress.

If you’ll be generating or using environmental data, briefly describe how you’ll manage data quality. You don’t need a full Quality Assurance Project Plan (QAPP) at this stage, but you should indicate that you’ll prepare one if needed.

Lastly, update your personnel section. Include bios of the PI and key staff, note any new advisors or subcontractors, and confirm that the PI meets EPA’s employment requirements (primary employment with the small business during the award period).

Develop a Market-Focused Commercialization Plan

Your commercialization strategy is a critical component of the EPA SBIR Phase II proposal, accounting for roughly one-third of the evaluation score. It must go beyond vague projections and present a credible, data-backed path to market.

Start with a clear market analysis. Who will use your product, and why? Use any Phase I customer discovery insights—such as I-Corps findings, market surveys, or letters of interest—to show verified demand.

Define your value proposition: How does your solution improve on existing alternatives in terms of cost, performance, or usability? Be specific and avoid broad claims.

Continue by outlining your timeline: include key milestones such as pilot testing, customer validation, and regulatory submissions. EPA expects you to begin moving toward commercialization during the Phase II period—not just after.

Finally, mention any outside investment, strategic partnerships, or letters of support you’ve secured or are pursuing. These demonstrate commercial traction and help de-risk your proposal.

Prepare and Justify the Budget

EPA SBIR Phase II awards are capped at approximately $400,000 over two years, with an optional $100,000 commercialization supplement available. Design your project scope to fit within this limit, and be sure your proposed costs are both allowable and well-documented.

Use the EPA-provided Summary Budget template and, if applicable, the separate form for the commercialization supplement. Your budget should cover direct costs (labor, materials, travel), indirect costs (overhead), and a reasonable profit (fee).

Break out each major cost category and explain it in your budget justification. Reviewers want to see how each cost supports the work plan—whether it’s a specific piece of equipment, hours allocated to team members, or materials for prototype testing.

If you’re using subcontractors or consultants, make sure their scope and rates are justified. Remember: at least 50% of the research effort (by cost) must be performed by your small business. Violating this rule can disqualify your proposal.

Ensure that your PI’s level of effort is clearly stated and compliant. If the PI has outside employment, a letter of commitment will be required to show that they’ll devote more than 50% of their time to the business during the award.

Final Assembly & Submission

With your technical, commercial, and budget documents in place, it’s time to package everything for submission through FedConnect. Be meticulous—EPA Phase II proposals can be rejected for administrative oversights as easily as technical gaps.

Start by preparing all required attachments, including your cover sheet, abstract, budget forms, biosketches, and letters of support. Double-check the solicitation for exact file naming conventions and page limits.

Upload your proposal materials to FedConnect. Before doing so, ensure that your account is active and linked to your current SAM registration. Test the system’s “Respond to Solicitation” function early, and don’t wait until the deadline to upload.

After submission, confirm that your response status has updated to “Responded” in the FedConnect portal. If you don’t see this confirmation, your proposal may not have been received.

Give yourself time for a final quality control check: verify margins, font size, page numbers, and consistency across all sections. Have someone not involved in the writing do a last-minute review for clarity and formatting.