FY 2021 SBIR/STTR Phase I Release 1 | DE FOA 0002359

Opportunity Information: Apply for DE FOA 0002359

The FY 2021 SBIR/STTR Phase I Release 1 opportunity (DE-FOA-0002359) is a Department of Energy (DOE) Office of Science funding announcement that provides Phase I grant support for small businesses to pursue early-stage, high-quality research and development (R&D) tied to DOE mission needs. The program is built around moving innovative technologies toward real-world use, with a strong emphasis on commercialization potential rather than purely academic inquiry. In practical terms, DOE is looking for small businesses that can propose technically sound, mission-relevant ideas that could plausibly become products or services in the marketplace, while also contributing to national economic and social benefits.

A core purpose of the SBIR/STTR programs is to strengthen the link between federally supported R&D and private sector commercialization. DOE explicitly frames the goals as stimulating private-sector innovation, increasing commercialization of technologies emerging from DOE-supported R&D, improving the return on investment from taxpayer-funded research, and encouraging participation from women-owned and minority-owned small businesses. While the eligibility details are handled in the formal eligibility section of the FOA, the program is generally oriented toward small business participation and is listed as “unrestricted” in the opportunity metadata, subject to the specific requirements in the announcement.

This release covers Phase I funding, which is intended to support feasibility and proof-of-concept work rather than full-scale product development. DOE also draws a clear boundary around what it will and will not fund: these SBIR/STTR awards do not support basic science in the sense of open-ended fundamental research without a commercialization pathway, and they do not support demonstration projects, meaning large-scale field demonstrations or deployment-focused activities are outside the program’s intent at this stage. Instead, Phase I is meant to de-risk a concept, establish technical merit, and position the company to pursue a more substantial Phase II effort if the idea proves promising.

The announcement highlights the key structural difference between SBIR and STTR. Under STTR, the small business must engage in substantial, cooperative R&D collaboration with a single research institution, and that collaboration is not optional. Under SBIR, collaboration with universities, national labs, or other research institutions is allowed and can be substantial, but it is optional rather than required. The practical takeaway is that applicants who need or want a formal partnership with a research institution can pursue either track, but only STTR mandates that cooperative relationship as an eligibility condition.

Commercialization is treated as a central expectation across the full SBIR/STTR lifecycle, not just an aspirational goal. DOE encourages Phase I awardees to begin lining up follow-on support early, including seeking commitments from private investors or from federal sources outside the SBIR/STTR program, especially in anticipation of Phase II and Phase III. DOE signals that these commitments are ideally in place before the Phase II application is submitted. Phase III is described as the point where non-SBIR/STTR funds should carry the work forward into commercial applications. In DOE’s framing, non-SBIR/STTR federal funding can support additional R&D that meets agency mission needs identified through Phases I and II, while private capital (or other non-SBIR/STTR sources) supports later development aimed at commercial objectives.

The announcement also clarifies an important contracting and procurement implication for Phase III. Because Phase I and Phase II awards are competed, an agency that later funds a Phase III follow-on is generally not required to run a new competition to satisfy certain federal competition requirements. At the same time, DOE is explicit that receiving Phase I funding does not guarantee Phase II or Phase III support; each phase is a separate decision and earlier funding does not create an obligation to fund later stages.

From an administrative standpoint, this is a discretionary grant opportunity in the Science and Technology and other R&D category (CFDA 81.049) run by the Department of Energy, Office of Science. The opportunity was created on August 24, 2020, with an original closing date of October 19, 2020. The stated Phase I award ceiling is $200,000, and DOE anticipated making around 196 awards under this release, reflecting a broad national competition aimed at seeding many high-potential technical concepts that can mature into commercially viable solutions aligned with DOE mission priorities.

• The Department of Energy - Office of Science, Office of Science in the science and technology and other research and development sector is offering a public funding opportunity titled "FY 2021 SBIR/STTR Phase I Release 1" and is now available to receive applicants.
• Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 81.049.
• This funding opportunity was created on Aug 24, 2020.
• Applicants must submit their applications by Oct 19, 2020. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
• Each selected applicant is eligible to receive up to $200,000.00 in funding.
• The number of recipients for this funding is limited to 196 candidate(s).
• Eligible applicants include: Unrestricted (i.e., open to any type of entity above), subject to any clarification in text field entitled Additional Information on Eligibility.

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