Phase II awards will be made to firms on the basis of results of their Phase I effort and the scientific merit, technical merit, and commercialization potential of the Phase II proposal. Phase II awards are typically $500,000 to $1,700,000 in size and the period of performance is generally 24 months. Phase II is the principal research or research and development effort and is expected to produce a well-defined deliverable prototype. A Phase II contractor may receive up to one additional, sequential Phase II award for continued work on the project.
The Navy follows a two-step competitive process for Phase II:
Step One - Initial Phase II Proposal
Phase I awardees may submit an initial Phase II proposal for evaluation and selection. Details on the due date and submission requirements of the initial Phase II proposal will be provided by the awarding SYSCOM either in the Phase I award or by subsequent notification. Instructions and a template for the initial Phase II proposal can be found here.
Step Two - Full Phase II Proposal
Selected initial Phase II offerors will be notified to submit a full Phase II proposal for evaluation and selection. If selected, SYSCOM-specific full Phase II proposal instructions and templates will be provided by the SYSCOM. Submission of a full Phase II proposal does not guarantee that a Phase II contract will be awarded. All SYSCOMs reserve the right to make no award, one award, or more than one award under any topic.
The Navy will evaluate initial and full Phase II proposals using the evaluation criteria in Section 8.0 of the DoD Program Solicitation. Technical merit is the most important evaluation criteria, followed by personnel qualifications and commercialization potential of equal importance.
Second (Sequential) Phase II: A Phase II Awardee may receive one additional, sequential Phase II award to continue work on the initial Phase II project; authorized by 15 USC 638 (ff)(1) without additional competition. Resulting second Phase II award must be within the scope of the original topic, continue the work of an initial Phase II award, and have the same guideline amounts and limits as the initial Phase II award. These projects are initiated at the request of the Government.
Subsequent Phase II: A concern that has received a Phase I award from an agency may receive a subsequent Phase II award from another agency if each agency makes a written determination that the topics of the relevant awards are the same. The Phase II award may be an initial or second (sequential) Phase II award (see Navy-Subsequent-Phase-II-Guidance-Oct-2021.pdf)
Phase II Reachback: Only for topics prior to FY13, a Phase II award under the same topic but to a different firm or from a different Agency/SYSCOM/organization or for any project that is not the initial Phase
II award. Resulting Phase II reachback award must be within the scope of the original topic and be a logical extension, derivation, or conclusion of work accomplished under the Phase I award.
Note: All SBIR/STTR Phase II awards made on topics from solicitations prior to FY13 will be conducted in accordance with the procedures specified in those solicitations (for all Navy topics this means by invitation only).