It’s not uncommon for a company new to the federal marketplace to be elated with their award of a phase 1 Small Business Innovation Research (SBIR) contract.
If it’s the first time breaking through, it should be cause for celebration for the awardee. In particular, the Defense Department and other government agencies can appear like a challenging labyrinth that requires understanding unique conditions and language to navigate.
A $50,000 or $100,000 award for a company that has been toiling with a new concept or technology may be the critical first step to the big leagues of sustained federal sales.
But let’s put it into perspective. It is the essential first step of a very long road. The SBIR program is a time-tested way for the government to seed funding for new ideas. Some of those ideas are good, even great. Some will prove not so useful. It’s OK for ideas not to pan out. The SBIR award will have achieved a success by mitigating government risk and avoiding a big bet that ultimately fails.
Continue reading at: National Defense Magazine
