SBIR Phase I — U.S. Air Force / AFWERX
U.S. Air Force — AFWERX (Department of Defense)
Up to $250K (Phase I)
AF defense + dual-use tech: AFWERX-style
Air Force SBIR Phase I funds defense and dual-use tech feasibility through two distinct tracks: Traditional Topics (up to $250,000 over 6 months, published in the DoD-wide BAA) and AFWERX Open Topics (up to $250,000, continuously open, dual-use innovation focus). AFWERX — the Air Force innovation arm — manages the SBIR program with a deliberate emphasis on commercial-first, dual-use technologies via its Open Topics model, STRATFI (Strategic Financing Initiative), and TACFI (Tactical Financing Initiative) Phase II pathways. All awards are FAR-compliant contracts managed through DSIP. SpaceWERX runs the equivalent program for Space Force (formerly Air Force Space Command) topics.
- Funding type
- Grant
- Level
- Federal
- Amount range
- $50,000 – $250,000
- Realistic amount
- Traditional SBIR topics: typically $150K–$250K. AFWERX Open Topics: often $50K–$250K with wide variance — some focused f…
- Deadline
- Traditional Topics: three cycles per year within the DoD BAA schedule (Spring close ~June, Fall close ~November, Winter close ~March). AFWERX Open Topics: continuously accepting proposals at afwerx.com/open-topics — no fixed close dates.
- Status
- active
- States
- Nationwide
- Payment model
- milestone
Who qualifies
- For-profit US small business with 500 or fewer employees including all affiliates
- More than 50% owned and controlled by US citizens or permanent legal residents
- New 2026 requirement: mandatory foreign national/ownership screening (FOCI disclosure) effective for all awards issued after April 13, 2026 — AFWERX-specific screening may be more stringent for topics involving classified Air Force systems
- Principal Investigator must be primarily employed (more than 50% of working time) at the small business at time of award and throughout Phase I performance
- For Traditional Topics: proposal must address a specific Air Force BAA topic — check afsbirsttr.us for published topic list
- For Open Topics: proposal must align with AFWERX's commercial-first dual-use technology areas; open topics do not require responding to a specific DoD topic number
- Active SAM.gov registration with valid UEI required
- SBA SBIR Company Registry registration required at sbir.gov
- DSIP account required for Traditional Topic submissions; AFWERX's separate portal (afwerx.com) for Open Topic submissions
- No cost-sharing required for Phase I
Hard requirements
- Must be incorporated
- 51%+ US ownership required
- Max 500 employees
What it covers
Eligible expenses
- Direct labor at fully-loaded labor rates for personnel conducting R&D
- Fringe benefits on qualifying direct labor
- Subcontract costs (generally capped at 33% for Traditional Topics; Open Topics may have different constraints per contract terms)
- Consultant fees for technical work directly supporting R&D
- Materials, supplies, and components consumed in the research
- Equipment purchases required for Phase I research
- Travel costs at GSA rates for R&D-related activities
- Cloud computing and software licenses used in R&D
- Indirect costs at negotiated or proposed rates
Ineligible expenses
- Lobbying, political contributions, or advocacy
- Marketing, business development, or investor relations costs
- Work performed outside the US without prior approval
- Costs incurred before contract award date
- Entertainment, alcohol, or personal expenses
- Unallowable costs under FAR Part 31
How to apply
-
1
Register in SAM.gov, SBIR Company Registry, and DSIP or AFWERX portal
For Traditional Topics: complete SAM.gov (UEI, 7–14 days), SBA SBIR Company Registry, and DSIP. For Open Topics: SAM.gov + SBIR Company Registry + AFWERX's separate submission portal at afwerx.com. The AFWERX portal is distinct from DSIP — register at afwerx.com under 'Small Business' before your first Open Topic submission.
~4 hrs
-
2
Choose your track: Traditional Topic or Open Topic
Review current Air Force Traditional Topics at afsbirsttr.us and AFWERX Open Topics at afwerx.com/open-topics. Traditional Topics are specific defense problems written by Air Force program managers — narrow, technical, and defense-system-specific. Open Topics are broader dual-use technology areas where AFWERX is seeking commercial innovation with defense applicability. If your technology is commercial-first with a defense application, Open Topics are more accessible. If your technology is defense-native, Traditional Topics are the right path.
~6 hrs
-
3
Submit a Project Pitch or AFWERX Application (track-dependent)
For Traditional Topics (via DSIP): submit Q&A questions during the topic's published Q&A window (3–4 weeks before close), then submit your full proposal. For Open Topics (via AFWERX): submit a brief AFWERX Application (typically 2–4 pages plus budget) describing your technology and dual-use value proposition. AFWERX conducts monthly reviews and responds within 30–60 days. AFWERX evaluators are former operators and industry professionals — they respond well to commercial traction signals alongside defense relevance.
~20 hrs
-
4
Write and submit the full technical proposal
Traditional Topics: full technical volume 15–30 pages submitted via DSIP (same as DoD SBIR standard). Open Topics: AFWERX may invite a full proposal after reviewing your Application — the invited proposal is typically 10–20 pages with strong emphasis on commercial market traction, team background, and how the technology addresses the specified defense use case. AFWERX explicitly looks for startups with commercial customers or revenue because it signals technology maturity and reduces commercialization risk for the Air Force.
~45 hrs
-
5
Prepare cost volume and negotiate contract
Submit detailed cost proposal through DSIP (Traditional) or AFWERX portal (Open). Air Force contracting offices negotiate the final FFP contract. AFWERX contracts typically close faster than traditional DoD components — 4–6 months from Open Topic submission to contract award is common (vs. 6–10 months for Traditional Topics). AFWERX's STRATFI and TACFI programs are separate Phase II mechanisms with their own negotiation process and often involve co-investment matching from private sources.
~10 hrs
SBIR / STTR details
SBIR phase amounts
| Phase | Max award | Duration |
|---|---|---|
| Phase1 | $250,000 | 6–12 months (varies by track) |
| Phase2 | $3,000,000 | 24 months (STRATFI up to $3M; TACFI up to $1.5M) |
NAICS codes: 541715, 541714, 541511, 541512, 336411, 336412, 541330, 334511, 334220, 334413
AFWERX Open Topics are the Air Force SBIR path most accessible to commercial-first startups with limited DoD experience — no waiting for BAA cycles, no classified context required, and AFWERX evaluators explicitly value commercial revenue or customers as evidence of technology maturity. If you have a defensible commercial product with a clear Air Force application, apply for an Open Topic before spending 60+ hours on a Traditional Topic proposal.
Deadline & timing
Air Force SBIR has two distinct pathways with different timelines. Traditional Topics follow the DoD-wide BAA cycle (Spring/Fall/Winter) through DSIP. AFWERX Open Topics accept proposals continuously at afwerx.com — they are reviewed in monthly batches and do not expire. Companies can submit Open Topic proposals anytime without waiting for a BAA cycle. The SBIR/STTR reauthorization lapsed October 1, 2025 and was restored April 13, 2026 through September 30, 2031, with new mandatory foreign national screening requirements effective for all awards after April 13, 2026. SpaceWERX (Space Force) operates analogously to AFWERX with its own Open Topic and SpaceTech Challenges tracks.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.