How to Prepare a NASA SBIR Phase II Proposal

Introduction

Preparing a successful NASA SBIR Phase II proposal is a rigorous but rewarding process. Unlike Phase I, which focuses on demonstrating feasibility, Phase II is about showing you can build, test, and mature a technology that meets NASA’s needs—and has commercial potential beyond them. For small businesses that received a NASA Phase I award, Phase II is the bridge to tangible outcomes: working prototypes, test data, and real interest from partners or customers.

This guide is designed to help you navigate the process with clarity and confidence. Whether you’re preparing your first Phase II proposal or looking to improve your next one, we’ll cover everything from strategic planning and proposal structure to budget development and commercialization best practices. Our goal is to make sure your submission is not just compliant—but competitive.

Understanding NASA’s Phase II Priorities

NASA’s SBIR Phase II program is not just a funding mechanism—it’s a contract to build on your Phase I work and move significantly closer to an operational technology. To succeed, your proposal must clearly align with the agency’s goals and demonstrate a viable path forward.

Only firms that have completed a NASA SBIR Phase I award for the same topic are eligible to apply for Phase II. You cannot bypass Phase I or submit an unsolicited proposal. Each application must build directly on the technical work, objectives, and findings of your Phase I effort.

Phase II awards offer up to $850,000 over a 24-month period, with the option to request up to $50,000 in additional Technical and Business Assistance (TABA) funds. These are intended to support commercialization efforts such as market research or legal services.

More importantly, Phase II proposals are expected to present:

• A detailed technical plan for advancing the innovation;
• A clear mitigation strategy for technical risks;
• A strong Commercialization Plan showing potential for NASA infusion and broader market adoption.

NASA weighs four primary criteria in evaluating Phase II proposals: technical merit, qualifications of the team, effectiveness of the work plan, and commercial potential. Notably, commercialization carries significant weight, often requiring a standalone section with specific formatting and page minimums.

NASA Phase II proposals demand a higher standard of planning, justification, and detail than Phase I.
Treat it as a serious product development contract—not a research grant.

Timeline: When and How to Start Preparing

Waiting for the official NASA Phase II solicitation to open before starting your proposal can leave you scrambling. The most competitive applicants begin planning during their Phase I performance period—often within the first few months.

Start During Phase I

Use the early months of Phase I to revisit your original solicitation topic and understand what Phase II success would look like. Midway through, engage your NASA technical monitor (within communication guidelines) to gauge interest in follow-on work. Their informal feedback can help shape your Phase II direction.

Your Phase I Final Report will serve as a springboard for your Phase II proposal. Prioritize gathering solid data and preliminary results to include in both documents.

3–6 Months Before Solicitation

At least three months before the solicitation opens:

• Gather resources: Review last year’s solicitation and NASA’s formatting rules.
• Form your team: Assign writing responsibilities, identify subcontractors, and secure their availability.
• Sketch your outline: Begin structuring your proposal using NASA’s 10-part format, and allocate space accordingly.
• Begin outreach: Identify and contact potential commercial partners or NASA programs who could support Phase III commercialization.

Solicitation Opens (8 Weeks Out)

When the solicitation is officially released:

• Read it line-by-line. Even if it looks similar to the prior year, rules can change.
• Finalize your proposal outline and adjust for any updates.
• Confirm you can log into the NASA ProSAMS portal and that your registrations (SAM.gov, SBA registry) are current.

Final Month

Use the last month to:

• Write and iterate proposal sections (technical, commercialization, budget).
• Solicit internal and external reviews.
• Merge sections into a single, compliant proposal file.
• Prepare supplemental documents: briefing chart, support letters, and optional TABA request.

Proposal Structure and Writing Tips

NASA’s Phase II proposal format is highly structured—and for good reason. Each component addresses a different evaluation criterion. Submitting a well-organized, compliant, and readable proposal not only helps reviewers score your submission fairly, it also signals professionalism and preparedness.

Required Structure: 10 Technical Proposal Parts

NASA’s standard Phase II proposal typically includes the following components (with page suggestions):

1. Table of Contents
2. Identification and Significance of the Innovation & Phase I Results (≈15 pages)
3. Technical Objectives (≈2 pages)
4. Work Plan (≈10 pages)
5. Related R&D (≈1 page)
6. Key Personnel and Bibliography (≈5 pages)
7. Commercialization and Business Plan (≥2 pages; NASA suggests ~8)
8. Facilities and Equipment (≈1 page)
9. Subcontractors and Consultants (≈1 page)
10. Potential Post-Phase II Risks and Disclosures (≈1 page)

Total length: 46 pages maximum (excluding supplemental docs).

Writing Tips for Success

• Tell a cohesive story: Show a clear progression from Phase I results to Phase II goals and Phase III outcomes.
• Avoid jargon: Write for expert reviewers who may not be in your sub-field. Use graphics only if they add value and fit within limits.
• Use formatting strategically: Bold headings, bullet lists, and tables improve readability.
• Check consistency: Make sure your budget aligns with your work plan, personnel roles are clearly defined, and all technical claims are supported.

Avoiding Common Proposal Mistakes

Even strong technologies can be derailed by easily preventable proposal missteps. NASA’s evaluation process is rigorous, and small errors can impact scores or lead to outright rejection. Here are some of the most frequent issues—and how to avoid them.

Common Mistakes

• Waiting too long to start: Many applicants underestimate the effort required. Phase II proposals demand substantial narrative, coordination with partners, and accurate budgeting.
• Weak Phase I results summary: The first major section must clearly demonstrate what was accomplished—and why it justifies Phase II funding. Vague or overstated claims undermine credibility.
• Overambitious scope: Trying to do too much within the 24-month period can appear unrealistic. Focus on 3–5 achievable technical objectives with measurable deliverables.
• Inconsistencies between sections: If your budget doesn’t align with the work plan, or if listed personnel are missing from the budget justification, reviewers will notice.
• Underdeveloped commercialization plan: Treat this as seriously as the technical sections. A weak commercialization plan will hurt your score—even if your tech is strong.

What to Do Instead

• Set internal deadlines at least 2 weeks before the official due date.
• Have someone not involved in writing do a full read-through for coherence.
• Use the NASA checklist and section numbering to make sure nothing is missing.
• Confirm that all forms, certifications, and registrations are complete and current.

Set your internal proposal deadline at least 48 hours before the NASA submission deadline.
This buffer allows time to resolve upload issues in ProSAMS.

Budget and TABA Planning

Your budget isn’t just about numbers—it’s a reflection of your work plan and business readiness. Reviewers assess whether your costs are realistic, justified, and aligned with your proposed tasks. A sloppy or inflated budget can weaken your entire proposal.

Understanding the Budget Structure

NASA SBIR Phase II awards provide:

• Up to $850,000 over 24 months for technical work
• An optional $50,000 for Technical and Business Assistance (TABA)

Use NASA’s budget forms in ProSAMS to itemize:

• Direct labor and overhead
• Materials and supplies
• Equipment
• Subcontracts and consultants
• Travel
• Indirect costs (e.g., fringe, G&A)

All line items must match your work plan’s scope and timeline.

Budget Best Practices

• Confirm personnel roles and effort match those in your Work Plan.
• Get written quotes from subcontractors and include them as attachments.
• Justify any special equipment or facilities as essential to project success.
• Be conservative but realistic—lowballing costs can backfire.

Planning for TABA

TABA funds are optional but valuable. They support services that help commercialization, such as:

• Market analysis
• Intellectual property strategy
• Financial modeling
• Regulatory guidance

To request TABA:

• Identify a vendor and describe their qualifications
• Define specific tasks and outcomes
• Include a separate TABA request document with your proposal

Commercialization and Business Plan: What NASA Wants to See

This section is not optional—and it’s not filler. NASA assigns significant weight to your commercialization strategy because the ultimate goal of SBIR funding is technology transition: either into NASA missions (infusion) or into broader markets (Phase III).

What to Include

NASA requires a minimum of two pages, but a compelling commercialization plan should be closer to 6–8 pages. Use clear subheadings and cover the following:

• Target Markets: Identify both NASA and non-NASA markets. Be specific. Instead of “space systems,” say “thermal control for CubeSats in low Earth orbit.”
• Customer Discovery: Summarize what you’ve learned from market engagement—interviews, demos, conversations. This shows you’ve validated interest.
• Competitive Landscape: Describe current solutions and how your innovation improves upon them.
• Business Model: Explain how your product will generate revenue. Licensing? Product sales? Services?
• IP Strategy: Clarify patent filings, trade secrets, or open-source models you plan to use.
• Commercialization Timeline: Lay out your path to market over the next 3–5 years, including expected TRL progress.
• Phase III Pathway: Highlight existing or potential partners (NASA or commercial) that could fund or adopt your technology post-Phase II. Include letters of support if available.

Strengthening the Section

• Tailor language to NASA’s current missions or technology roadmaps.
• Use metrics: “a $400M addressable market,” “reduces satellite payload mass by 20%.”
• Attach support letters as a separate addendum—they don’t count toward the page limit.

Reviewer Tip

This section is reviewed for both quality and seriousness. Generic statements like “we will commercialize the product” without evidence or a clear plan will reduce your score.

Final Review and Submission Strategy

As you approach the deadline, the focus shifts from drafting to quality control. This stage is your opportunity to catch errors, validate consistency, and ensure compliance with all submission requirements.

Internal Review and Checklist

Use NASA’s proposal checklist to confirm you’ve included:

• All 10 required narrative sections
• A table of contents
• Proper formatting (margins, font size, page limits)
• Required attachments (briefing chart, certifications, TABA request if applicable)

Assign someone not involved in writing to do a final read-through. Reviewers should be able to clearly trace your story from Phase I results through Phase II execution to Phase III potential.

Using NASA’s Submission Portal (ProSAMS)

• Register Early: Make sure your ProSAMS account is active and linked to your organization’s SAM.gov and SBA registry data.
• Upload Sequentially: ProSAMS will prompt you for each required document. Upload them in the correct format and verify that PDFs are not locked or corrupted.
• Validate Submission: The system offers a final validation step—use it to check for omissions or upload errors.

Timeline Tips

• Upload all components at least one business day before the official deadline.
• Save a screenshot or email confirmation of submission for your records.
• If NASA offers the chance to update Phase III letters or commercialization data before award negotiations, be prepared to respond quickly.