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 Direct to Phase II (D2P2)?

Open Topic SBIR Direct to Phase II (D2P2) topics are a component of the broader SBIR program designed to streamline the innovation process for qualified small businesses. Unlike the traditional SBIR path, which typically starts with a Phase I study (feasibility and proof-of-concept), the D2P2 allows small businesses to skip Phase I and instead move to apply directly for Phase II funding. D2P2 Proposals require a Customer Memorandum signed by a DAF or Joint customer and end-user. In most cases, the D2P2 opportunities do not apply to Phase I awardees, who should instead be looking to apply for traditional, Follow-on Phase II funding after completion of their Phase I.

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