DoD Funds Innovation Through New SBIR Awards
The Department of Defense continues to issue SBIR contracts for advanced technologies despite ongoing reauthorization debates. Recent awards include Phase II funding for a drone-networked RF geolocation system from Lunewave and molecular data storage from Atomics. A Phase III award was also granted to Logos Technologies for persistent surveillance and hostile fire detection systems.
- The statutory authority for the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs expired on September 30, 2025. As of early February 2026, Congress has not passed a reauthorization, meaning federal agencies cannot issue new solicitations or awards. However, Phase III follow-on work can proceed if funded by non-SBIR sources. - Phase III of the SBIR program focuses on commercializing the technology developed in Phases I and II, with funding from sources outside the SBIR program. These awards can be granted without further competition, serving as a significant opportunity for small businesses to transition their innovations into viable products for government and commercial markets. - The Department of Defense is the largest participant in the SBIR program, accounting for nearly half of all funding and awarding over $1.7 billion in contracts in FY2019. A study of the DoD SBIR program showed a return on investment of more than 8-to-1 based on sales of new products and services resulting from Phase II contracts. - Recent acquisition reform initiatives aim to streamline the federal procurement process, which could benefit small businesses by reducing administrative burdens. Proposals include increasing the simplified acquisition threshold, which may provide greater access for small businesses to compete for larger contracts. - The DoD's 2023 Data, Analytics, and Artificial Intelligence Adoption Strategy emphasizes accelerating the integration of AI to maintain a competitive advantage. The strategy focuses on creating a trusted AI ecosystem and aligns with the department's Responsible AI (RAI) principles, which guide the ethical development and deployment of AI capabilities. - Lunewave's RF geolocation system utilizes a 3D-printed Luneburg lens antenna, which offers wide bandwidth and complete angle coverage. This technology is designed for a network of drones to detect and locate radio frequency sources in contested environments with high speed and precision. - Atomics' molecular data storage technology offers a denser, more sustainable, and longer-lasting alternative to conventional data storage methods. Their approach has demonstrated the ability to store megabytes of image data in molecules at room temperature, which could significantly reduce the energy and water consumption of traditional data centers. - Logos Technologies specializes in wide-area motion imagery (WAMI) systems for persistent surveillance. Their lightweight sensors, like MicroKestrel, can be deployed on small unmanned aerial systems to monitor city-sized areas, tracking vehicles and moving individuals in real-time.