Understanding SBIR: A Comprehensive Guide to Small Business Innovation Research and How It Drives Government Modernization

By: Sydney George, Monkton Marketing Intern

Last year, we sat down with Hunter Strategy to explore one of our favorite four-letter words: SBIR. In our last episode, about secure mobile apps in a military context, we briefly touched on our SBIR story, but we had so much more to say. So, we went back to answer some frequently asked SBIR questions, share success stories, and provide insights on navigating the program's challenges. If you didn’t get to tune into our episode, here's our comprehensive guide to SBIRs.?

What is an SBIR??

The Small Business Innovation Research (SBIR) program is an unsung hero in government innovation. The program is designed to streamline the development and acquisition of critical technologies. In a nutshell, SBIRs foster collaboration between private and public sectors, fueling government-wide modernization.?

The program provides funding and a network of opportunities specifically for small businesses. Plus, SBIRs help the government tackle pressing challenges with innovative solutions, particularly for agencies like the U.S. Department of Defense (DoD) and the U.S. Space Force. It’s truly a win-win situation for everyone involved.?

SBIRs are divided into three progressive phases, each with distinct goals and funding opportunities:??

• Phase I: This initial phase focuses on assessing the feasibility and conducting foundational research for the proposed project. Contracts in this phase are typically small.
• Phase II: For projects with proven feasibility, Phase II allows companies to further refine their technology. Here, businesses focus on prototyping and working toward a deployable product, with increased funding compared to Phase I.

• Phase III: At this stage, the magic happens: projects turn into products, bringing innovations to the market. This phase does not come with SBIR funding but allows for partnerships with government agencies to roll out the developed technology. A Phase III contract also acts as a "pre-competed contract vehicle," enabling faster procurement processes for the government.?

Why is SBIR Beneficial for the Government?

The SBIR program offers a host of advantages for the Government, such as:?

• Rapid Innovation: Traditional government acquisition can take 12-24 months from initial interest to contract, keeping agencies from acquiring essential technologies fast enough for mission speed. However, with SBIR, this timeline is shortened considerably.?
• Pre-competed Contract Vehicles: Establishing terms and conditions in advance, significantly speeds up the acquisition process.?
• Collaborative Development: The program enables ongoing collaboration between small businesses and government customers, allowing for adjustments throughout the contract to better fit the agency’s needs.

What’s in It for Small Businesses?

For small businesses, SBIR provides both funding and a pathway to gain a foothold in government contracting and develop products faster. Small businesses benefit in several ways:

• Early Funding
• Market Access:?
• Commercialization Opportunities

Monkton’s SBIR Success

Monkton proudly holds a Phase III SBIR, the MATTER IDIQ. MATTER stands for “Mobile Apps to The Tactical Edge Ready.” In 2020, Monkton was honored to be recognized by the DoD and awarded by the Space Force for our achievements in secure mobility. MATTER enables us to accelerate the acquisition of essential technologies, getting solutions into the hands of clients faster—for any government agency.?

Our MATTER IDIQ contract didn’t happen overnight or in isolation. During the height of COVID-19, Monkton delivered 3 mobile solutions, LOGSTAT, PERSTAT, and MEDSTAT to USNORTHCOM. (You can learn more about IDIQs here!) These tools gathered real-time data to determine personnel deployment across the country, significantly enhancing decision-making. MATTER was born from our ability to repeatedly prove that we can tackle unique challenges with tailored solutions. The timing was also critical to our success, as we leveraged our relationships with previous partners, whose support was crucial in securing the MATTER IDIQ.?

Challenges and Criticisms of SBIR

Despite its benefits, SBIR has its fair share of criticisms. The term “SBIR mills” has emerged to describe companies that repeatedly win Phase I and Phase II contracts without progressing to Phase III.? Meaning, companies are awarded funding without producing tangible solutions. SBIR can speed up tech acquisition and produce invaluable results, but it requires correct execution to prevent misuse or distrust, which could arise if projects don’t deliver as promised.

Another significant challenge is the lack of education among government contractors surrounding the program. This informational barrier can create delays or misunderstandings in the acquisition process.?

As an SBIR contract holder, we’re well-versed in navigating the complexities of the program, whether that be meeting compliance requirements or bridging the educational gap surrounding the program. In episode 14 of Hunter Strategy’s Podcast – What is SBIR & How Does it Work?, we offer even more insight and actionable tips for tackling the challenges of the SBIR program.?

For more on SBIRs and Monkton’s experience, check out Hunter Strategy’s episode below!