--- title: All About Phase I description: At Long Capture, we see the SBIR/STTR programs as a gateway to doing business with the government. image: https://longcapture-9402222.hs-sites.com/hubfs/photo-1551656222-71345ab13814.jpeg --- ![one person sitting alone ](https://longcapture-9402222.hs-sites.com/hubfs/photo-1551656222-71345ab13814.jpeg) ### **What is the SBIR/STTR Program?**  Since 1982, the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs have served as the nation’s largest sources of early stage/high-risk funding for start-ups and small businesses.[1](https://www.sbir.gov/tutorials/program-basics/tutorial-1) There are eleven Federal Agencies that participate annually in the SBIR program and five participating in the STTR program.    Since their inception, these highly competitive programs have awarded well over $53 Billion to innovative small business concerns. They exist *“to support scientific excellence and technological innovation through the investment of Federal research funds in critical American priorities to build a strong national economy.” *[2](https://www.sbir.gov/about)  At Long Capture, we see the SBIR/STTR programs as a gateway to doing business with the government. As a military veteran and spouses' team, we have focused attention on and expertise in the Department of Defense SBIR/STTR program. We value impact-driven work that ultimately meets critical warfighter needs and supports the nation's research and development (R&D) efforts. This article will focus on Phase I of the DoD SBIR/STTR program.    ### **Who is Eligible? **  The DoD's annual SBIR/STTR budget is upwards of $1.8 billion per year—the largest of any participating agency! To get your piece of that pie, you must be a registered, domestically owned, for-profit, innovative small business with less than 500 employees.** Small companies with strong R&D capabilities that also possess the experience and team to commercialize the results are highly encouraged to apply.**  ## **The Purpose of Phase I **  Each component of the DoD (Air Force, Navy, Army, etc.) has varying requirements, periods of performance, and award amounts for Phase I, but at the heart of each Phase I is an R&D-based feasibility study.   According to SBIR.gov, *“The objective of Phase I is to establish the technical merit, feasibility, and commercial potential of the proposed R/R&D efforts and to determine the quality of performance of the small business awardee organization prior to providing further Federal support in Phase II.” *[3](https://www.sbir.gov/about)   Successful execution of Phase I sets your business up for prototyping in Phase II and production in Phase III. The primary objectives of Phase I are to:  - Fully understand the problem of the end-user  - Articulate how your innovative solution meets the needs of the warfighter Demonstrate the technical feasibility of integrating your solution into the end-user's mission set  - Conduct customer discovery to find a wide swath of additional stakeholders   ### **The True Value of Phase I**  Phase I awards vary in amount from $50K to $150K depending upon the specific solicitation you are applying to, but the actual value of Phase I is not in the award size. At Long Capture, we see three main advantages to the SBIR/STTR program:  1) Non-Dilutive Capital. You do not give up equity in your company. The funding you receive from the SBIR/STTR program allows you to conduct R&D with no strings attached. What the government gets in return from the R&D effort is a product that benefits the warfighter.   2) Dual-Use Commercialization. With a solution that benefits and is sold to the government as well as the commercial industry, you are tapping into two markets simultaneously! This commercialization strategy helps to de-risk the solution for the government stakeholders, but it allows your company to scale your technology much faster.  3) [Sole Source Eligibility. ](https://longcapture.com/sbir-the-means-not-the-end/)As noted in the beginning, we at Long Capture see the SBIR/STTR program as one of the best ways to get your foot in the door with government contracting. The biggest prize from a Phase I win is sole source eligibility. By law, when the government wants to purchase something, it must hold a full and open competition to find the best value for the government. With a Phase I win, however, you are authorized by law as an exception to the competition requirements within any federal agency for *any *follow-on contract that derives from or extends the work completed under Phase I. Sole source eligibility is the key that unlocks the door to a long-term winning strategy!  And as a bonus, you are helping America’s heroes get the most cutting-edge technology available to do their jobs!  ### **When to Apply**  With DoD SBIR/STTRs, we generally see 3 proposal cycles per year. The last cycle for 2021 is coming soon! Pre-Release (a one-month period when your firm may engage with the Technical Points of Contact (TPOC) for the various topics) is scheduled for August 25th. [The solicitation officially opens for submissions beginning September 23rd, with a deadline of October 22nd.](https://www.dodsbirsttr.mil/submissions/baa-schedule/active-baa-announcements) While this may seem like a long time from now, proposal success comes from having a solid strategy initially, which takes time to implement well. Now is the time that you want to be [talking with Long Capture](https://longcapture.com/get-started/) to have us in your corner guiding you through the process this proposal season!  ## Related Articles [![Person jumping](https://longcapture-9402222.hs-sites.com/hubfs/Screen%20Shot%202021-05-14%20at%2010.42.59%20AM.png) ](http://longcapture-9402222.hs-sites.com/blog/the-colorado-shuffle-the-jump-from-phase-i-to-phase-iii) [Phase III](http://longcapture-9402222.hs-sites.com/blog/tag/phase-iii) ### [The Colorado Shuffle (The Jump From Phase I to Phase III)](http://longcapture-9402222.hs-sites.com/blog/the-colorado-shuffle-the-jump-from-phase-i-to-phase-iii) Maybe you have a Phase I award, you are pursuing this opportunity, or you want a better understanding of the process. Whatever the case may be, after a Phase I, you will... ![Russell Long](https://app.hubspot.com/settings/avatar/d41d8cd98f00b204e9800998ecf8427e) [Russell Long](http://longcapture-9402222.hs-sites.com/blog/author/russell-long) [Read More](http://longcapture-9402222.hs-sites.com/blog/the-colorado-shuffle-the-jump-from-phase-i-to-phase-iii) [![](https://longcapture-9402222.hs-sites.com/hubfs/AI-Generated%20Media/Images/An%20image%20of%20a%20progression%20from%20mixing%20ice%20cream%20ingredients%20to%20a%20final%20bowl%20of%20ice%20cream%20with%20crushed%20Oreos%20on%20top.jpeg) ](http://longcapture-9402222.hs-sites.com/blog/technology-readiness-level-trl-in-ice-cream-terms) ### [Technology Readiness Level (TRL): in Ice Cream Terms](http://longcapture-9402222.hs-sites.com/blog/technology-readiness-level-trl-in-ice-cream-terms) One key question to be thinking through at the start of your federal journey is your technology’s technology readiness level (TRL). ![Russell Long](https://app.hubspot.com/settings/avatar/d41d8cd98f00b204e9800998ecf8427e) [Russell Long](http://longcapture-9402222.hs-sites.com/blog/author/russell-long) [Read More](http://longcapture-9402222.hs-sites.com/blog/technology-readiness-level-trl-in-ice-cream-terms)