SBIR Phase I — U.S. Navy / ONR

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) for all applicants — effective for awards issued after April 13, 2026
• 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 period
• Proposal must address a specific Navy topic published in the current BAA — Navy does not accept unsolicited open-innovation proposals outside posted topic areas
• Active SAM.gov registration with valid UEI required (allow 2–3 weeks for new registrations)
• SBA SBIR Company Registry registration required at sbir.gov
• DSIP account required at dodsbirsttr.mil for proposal submission
• No cost-sharing required for Phase I
• Work must be performed primarily in the United States; Navy-specific topics may impose facility clearance requirements for certain classified research areas

Hard requirements

• Must be incorporated
• 51%+ US ownership required
• Max 500 employees

What it covers

How to apply

1. 1

   Register in SAM.gov, SBIR Company Registry, and DSIP

   Complete all three registrations before starting your proposal: SAM.gov (UEI takes 7–14 business days for new entities, annual renewal required), SBA SBIR Company Registry at sbir.gov (1–3 days), and DSIP at dodsbirsttr.mil. All three must be active at submission. Verify your SAM.gov registration expiration — an lapsed registration causes administrative rejection.

   ~4 hrs

2. 2

   Browse Navy topics on navysbir.com and DSIP

   Visit navysbir.com and DSIP to review Navy topic listings. Navy topics are organized by sponsoring command or lab: Naval Research Laboratory (NRL), NAVSEA, NAVAIR, NAVSUP, SPAWAR/NAVWAR, Space and Naval Warfare (now NAVWAR), and ONR direct topics. Each topic has a TPOC (Technical Point of Contact) listed — Navy TPOCs are often researchers at Naval labs with direct domain expertise. Identify 2–3 topics where your technology maps closely to the stated problem.

   ~8 hrs

3. 3

   Submit Q&A questions via DSIP during the Q&A window

   Submit technical questions to the Navy TPOC through the DSIP Q&A system during the published window (typically 3–4 weeks before topic close). Navy TPOCs at Naval Research Laboratory (NRL) are particularly responsive and technically sophisticated. Read all publicly posted Q&As before writing — Navy TPOCs often clarify technology readiness level expectations and specific deliverable formats in their Q&A responses. Never contact TPOCs directly by email or phone outside the Q&A system.

   ~4 hrs

4. 4

   Write the technical volume (15–30 pages)

   Navy SBIR Phase I technical proposals are typically 15–30 pages. Address the topic's specific technical objective, describe your Phase I approach with measurable milestones and go/no-go criteria, and include a Phase II prototype plan. Navy evaluators from NRL, NAVSEA, and NAVAIR have deep domain expertise — avoid oversimplifying the technical challenge. Include team credentials, relevant prior work, and a Phase III transition strategy (Transition-to-Navy program references strengthen Navy-specific proposals).

   ~55 hrs

5. 5

   Prepare and submit the cost volume via DSIP

   Submit a detailed cost volume through DSIP covering direct labor (hours × fully-loaded labor rates), subcontract costs (generally capped at 33% of Phase I total for Navy), materials, equipment, travel, and indirect rates. Navy contracting offices at the relevant Command will negotiate the final contract. Allow 6–10 months from proposal close to contract award for Navy. Your cost proposal ceiling becomes the negotiation starting point.

   ~10 hrs

6. 6

   Negotiate and execute the Navy Phase I contract

   Selected proposals receive notification from the relevant Navy contracting office. Navy Phase I contracts are Firm Fixed Price (FFP), FAR-compliant, with milestone-based payments. Negotiate scope, milestones, and costs with the contracting officer. SBIR Data Rights (4-year protection) apply. Some Navy topics require facility security clearances (CONFIDENTIAL or SECRET) — confirm clearance requirements with the contracting office before accepting the contract.

   ~10 hrs

SBIR / STTR details

NAICS codes: 541715, 541714, 541511, 541512, 336611, 336411, 541330, 334511, 334220

Deadline & timing

Navy SBIR participates in the same three-cycle-per-year DoD BAA schedule as Army, Air Force, and other components. Topics are published in DSIP and on navysbir.com simultaneously. Individual Navy topics within a cycle may close on different dates — Navy has historically closed multiple topic batches across May, June, and July in the spring cycle. The SBIR/STTR reauthorization lapsed October 1, 2025 and was restored April 13, 2026 through September 30, 2031. New mandatory foreign national/ownership screening applies to all awards issued after April 13, 2026.

Programs that stack well

• Research & Development Tax Credit (Section 41)
• SBIR Phase I — Department of Defense
• SBIR Phase II — Department of Defense
• STTR Phase I — Department of Defense
• NIST Manufacturing Extension Partnership (MEP)
• DoD Mentor-Protégé Program (DFARS 219.7100)

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