Introduction
For companies that have successfully completed a NIST SBIR Phase I project, the Phase II application represents both a critical next step and a unique opportunity. With up to $400,000 in non-dilutive funding available over a 24-month period, Phase II is where promising early-stage research evolves into a tangible, commercially viable product or technology.
This guide is designed specifically for prior NIST Phase I awardees preparing to submit a Phase II proposal. It outlines the complete process—from strategic planning and eligibility confirmation to assembling a compelling technical narrative and commercialization plan. Our goal is to help you avoid common pitfalls, align your submission with NIST’s expectations, and maximize your chances of funding success.
Whether you’re scaling a prototype, refining your go-to-market strategy, or assembling a multi-disciplinary team, this guide offers actionable insights tailored to the NIST SBIR Phase II program.
Know the Timeline and Eligibility
Before you begin writing your Phase II proposal, it’s essential to confirm your eligibility and build a realistic project calendar. Only small businesses that have completed a NIST SBIR Phase I award are eligible to apply for Phase II funding. The award must come specifically from NIST—not from another agency—and your company must still meet SBIR eligibility criteria, including size standards and PI employment requirements.
NIST typically issues the Phase II Notice of Funding Opportunity (NOFO) in the spring, with applications due in early summer. For instance, the FY2025 NOFO was released in April with a submission deadline in mid-June. These dates can vary slightly each year, so it’s important to monitor Grants.gov and NIST’s SBIR site for updates.
Once the NOFO is published, create a backward project timeline. Mark key milestones such as internal draft deadlines, document collection (e.g., Letters of Commitment), budget completion, and time for reviews. Avoid compressing the process—plan for at least 6–8 weeks of focused preparation to produce a high-quality submission.
Submit at least 48 hours before the deadline to avoid Grants.gov upload errors.
Grants.gov can delay confirmation notices for up to 48 hours. Don’t risk a disqualification over a preventable technical issue.
Prepare Your Team and Resources Early
A successful Phase II project often demands more technical expertise, staffing capacity, and facility access than Phase I. That’s why it’s critical to evaluate your team and partnerships early in the process—ideally while your Phase I project is still underway.
Start by reviewing your proposed Phase II scope. If you’re scaling a prototype, performing advanced testing, or preparing for regulatory steps, ask whether your current staff can support those tasks. If not, identify gaps and begin recruiting collaborators or consultants with the needed expertise.
NIST permits up to 50% of Phase II work to be subcontracted, but at least half must be conducted by your small business. If you plan to use outside resources—such as a university lab, equipment-sharing facility, or third-party consultant—you’ll need to submit formal Letters of Commitment with your application.
Don’t wait until the final weeks to secure these letters. Building strong relationships with collaborators early allows time for scope alignment and shared proposal input. And if you’re bringing in new personnel, make sure you can clearly articulate their qualifications and role in the project narrative.
Use Your Phase I Results Strategically
Your Phase I outcomes form the foundation of your Phase II proposal. Review your original objectives and final results with a critical eye. What technical feasibility did you prove? What milestones were achieved? Were any prototypes, test results, or key performance metrics generated?
This is your opportunity to show how Phase I validated your core innovation. Pull together the most compelling data, and be prepared to include specific figures, visual results, or third-party feedback if available. If your project benefited from insights or advice from your NIST technical monitor or collaborators, incorporate those lessons learned to guide your Phase II strategy.
Also consider how Phase I demonstrated commercial interest. Did a potential customer offer informal feedback? Did a demonstration spark interest from an industry partner or investor? Even anecdotal support can help bolster the case for continued development and future adoption.
Treat your Phase I results not just as a status report, but as evidence that your project is ready for next-stage investment.
Assemble Required Registrations
Administrative readiness is just as important as technical preparation. NIST requires applicants to be registered in several federal systems before submitting a Phase II proposal. These registrations can take days or even weeks to complete—so tackle them early.
Start with SAM.gov. Your company must have an active System for Award Management (SAM) registration, which includes your Unique Entity Identifier (UEI). If your registration is expired or incomplete, NIST cannot issue an award—even if your proposal is successful.
Next, update your profile in the SBA Company Registry at SBIR.gov. You’ll need to generate and attach a PDF confirmation of your small business status as part of your application.
Finally, make sure your Grants.gov account is current, including access via Login.gov and the correct Authorized Organization Representative (AOR). Set up your Workspace in advance and verify that all login credentials are working.
Allow up to 2 weeks for processing.
Read the NOFO Carefully
The NIST Phase II Notice of Funding Opportunity (NOFO) is your primary rulebook. Once the NOFO is released—usually in spring—read it thoroughly. Every requirement for proposal content, formatting, submission, and evaluation is detailed there. If a current NOFO isn’t yet available, review the most recent one to get a sense of what’s expected.
Start with the Proposal Instructions (typically Section 3) and the Required Documents List (often Section 8.01). You’ll find specific details on what to include—such as the SF-424 form, budget spreadsheets, cover sheet, technical narrative, and commercialization plan—and how to format each document.
Pay close attention to the Screening Criteria (e.g., Section 4.02). NIST automatically rejects proposals that are missing required forms, exceed page limits, or violate budget caps. Formatting mistakes—like using the wrong font size or exceeding the 15-page limit for technical content—can get your proposal tossed before review.
Also review the Evaluation Criteria. NIST generally scores proposals based on technical merit, team qualifications, commercialization potential, and alignment with agency priorities. Understanding how your application will be judged helps you tailor your content accordingly.
Incomplete proposals are automatically disqualified.
Missing forms, page overages, or noncompliant formatting can lead to immediate rejection—regardless of technical merit. Always cross-check against the NOFO checklist.
Draft a Winning Technical Proposal
The technical proposal is the centerpiece of your Phase II application. It must clearly demonstrate that your innovation addresses a real technical challenge, that you have a structured plan to advance the technology, and that your team is equipped to deliver results.
Begin with a clear problem statement that defines the need or opportunity your project addresses. Explain how your approach differs from existing solutions and why it’s innovative. Then, outline your Phase II objectives—these should be specific, measurable goals, such as achieving certain performance metrics or completing a functional prototype.
Next, develop a detailed work plan. Break it into logical phases or tasks, describe the methods you’ll use, and include a timeline with milestones and deliverables. A visual Gantt chart can be especially helpful. Be realistic about what can be accomplished in 24 months.
Include a concise summary of related research, including your Phase I results. Describe how the lessons learned and feasibility proven in Phase I shape your Phase II approach. Cite relevant technical literature or industry benchmarks to show awareness of the state-of-the-art.
Then highlight your team’s qualifications. For each key person, summarize experience, credentials, and prior results that directly relate to the project. This includes internal staff, consultants, and any subcontractors. Reviewers want assurance that the proposed team can execute the plan.
Describe the facilities and equipment available, and explain any special resources or external labs you’ll use. If you plan to acquire new equipment with SBIR funds, justify how it’s essential to the research.
Finally, outline your Phase III strategy—what happens after Phase II? Will you license the technology, pursue private investment, or partner with a manufacturer? This forward-looking section connects the R&D to real-world impact.
Reviewers may not have access to your Phase I proposal.
Reintroduce critical context and results from Phase I in the Phase II narrative so your application stands alone.
Build a Credible Commercialization Plan
Your commercialization plan is where you explain how your Phase II results will translate into a viable product, service, or business. NIST weighs commercial potential heavily in the Phase II review process, so this section should be thoughtful, specific, and well-supported.
Begin with an overview of your company background. Highlight your core competencies, track record with prior innovations, and any experience transitioning technologies to market. If you’ve had success with previous SBIR awards or industry-funded work, note those achievements.
Next, describe the commercial application of your innovation. What exactly will you sell, and to whom? Be clear about the end-use scenario and how your technology delivers superior value (e.g., lower cost, better performance, easier integration) compared to current alternatives.
Then, define your target market. Include market size estimates, segmentation, and trends—ideally backed by third-party data. Identify initial customer segments for early adoption and explain how you’ll expand over time.
Assess your competition and positioning. List existing solutions, key competitors, and your comparative advantages. Be candid about potential barriers to adoption and how you plan to address them.
Lay out your go-to-market strategy. Will you license the technology, build it in-house, or partner with a distributor? Outline your business model (e.g., direct sales, OEM, SaaS), planned milestones, and projected revenue. If you’ve spoken to potential customers or received letters of interest, summarize those here.
Close with your intellectual property (IP) strategy. Note any patents filed or granted, licenses obtained, or plans to protect trade secrets. A credible IP plan reassures reviewers that your innovation can achieve commercial traction without being easily copied.
Final Assembly, Review, and Submission
In the final stretch, your focus should shift to assembling a complete, compliant, and polished application. Begin by cross-referencing your submission against the NOFO’s required documents checklist. This includes standard forms (like the SF-424), your technical proposal, commercialization plan, budget forms, cover sheet, Phase I report, and any necessary attachments such as Letters of Commitment or support.
Double-check formatting requirements. Make sure file names, page counts, and font sizes meet the stated rules. Convert all documents to PDF and verify that they open correctly. Grants.gov has strict file requirements, and technical errors can result in disqualification.
Once the full package is assembled, conduct a final round of reviews. This could involve internal staff, external advisors, or a local support resource like a Small Business Development Center (SBDC) or Manufacturing Extension Partnership (MEP). A fresh perspective often reveals gaps or inconsistencies that need correction.
When ready, submit through Grants.gov—ideally 48 to 72 hours before the deadline. This provides a buffer in case of system outages, corrupted files, or login issues. After submitting, monitor your email closely for confirmation notices from Grants.gov.