IMPORTANT UPDATE: Effective 1 October 2025, SBIR/STTR program authorization has expired. New activity is paused; ongoing awards remain valid. Awardees are encouraged to contact their TPOCs and contracting officers with questions regarding active awards.

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What is a Phase II contract?

A Phase II contract provides continued RDT&E funding for successful Phase I projects and frequently results in development of a prototype or demonstration. Phase II awards are typically for a two-year effort for both Open and Specific Topic, but it does vary per solicitation. Unique to Open Topic, an Open Topic Direct to Phase II (or D2P2) proposal requires a Customer Memorandum, which identifies a U.S. Air Force or U.S. Space Force customer and end-user who intends to work with the small business during the RDT&E. More information can be found in the Customer Memorandum FAQ.

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