The AFWERX & SpaceWERX Open Topic Small Business Innovation Research (SBIR) Program
Executive Summary:
AFWERX & SpaceWERX’s Open Topic provides SBIR/STTR awards to small businesses to validate feasibility (Phase I) and build prototypes with Air Force or Space Force partners (Phase II or D2P2). Any technology could potentially be funded if it provides real value to the military. Phase I awards are up to $75K/$110K for 3 months; Phase II up to $1.25M/$1.8M; Direct to Phase II up to $1.25M. The next deadlines are estimated to be Q4 of 2025 or Q1 of 2026.
How much funding would I receive?
Phase I (Feasibility Study): Up to $75K (SBIR) or $110K (STTR) for a 3-month effort.
Phase II (Prototype Development): Up to $1.25M (SBIR) or $1.8M (STTR) for up to 21 months.
Direct to Phase II (D2P2): Up to $1.25M (SBIR) for up to 21 months, available to companies that can skip Phase I by providing prior feasibility evidence and a signed Customer Memorandum.
What could I use the funding for?
Phase I funds a feasibility study and/or customer discovery to identify an Air Force or Space Force end user and customer, culminating in a preliminary and final report.
Phase II/D2P2 funds R&D to adapt and prototype your dual-use solution with an Air Force or Space Force Technical Point of Contact and the Customer/End User who signed the Customer Memorandum.
See sample projects here.
Are there any additional benefits I would receive?
Beyond the formal funding award, AFWERX/SpaceWERX Open Topic participants gain several strategic advantages:
Government Validation and Credibility: Selection for an AFWERX or SpaceWERX SBIR/STTR award demonstrates strong technical merit and alignment with Department of the Air Force priorities. This validation builds trust among primes, defense customers, and private investors.
Enhanced Visibility and Market Recognition: Awardees are often highlighted in AFWERX communications, SpaceWERX showcases, and federal innovation reports—raising profile across defense, aerospace, and venture communities.
Access to the National Defense Innovation Network: Recipients gain entry into the AFVentures ecosystem, connecting with Air and Space Force end users, program offices, and transition partners to accelerate dual-use commercialization and follow-on contracting opportunities.
Stronger Commercial and Exit Potential: By advancing technology with nondilutive funding and government-backed validation, companies enhance valuation, de-risk product development, and increase attractiveness for acquisition or follow-on investment
What is the timeline to apply and when would I receive funding?
The next deadlines are expected to be Q4 of 2025 and Q1 of 2026. Funding is generally received 4-5 months after the deadline.
Where does this funding come from?
Awards are made under the Department of the Air Force SBIR/STTR program via AFWERX/AFVentures and the Air Force Research Laboratory.
Who is eligible to apply?
Applicants must be U.S. small business concerns (SBCs) that:
Are organized for profit with a U.S. place of business.
Have ≤ 500 employees including affiliates.
Are > 50% owned by U.S. citizens or permanent residents, qualifying U.S. entities, or combinations thereof.
What companies and projects are likely to win?
Proposals are evaluated based on three primary criteria:
Technical Approach: The soundness, feasibility, and innovation of your proposed solution—how effectively it addresses the problem and advances the state of the art.
Defense Need: The strength of alignment between your technology and an identified Air Force or Space Force capability gap, as demonstrated through end-user engagement or a signed Customer Memorandum.
Commercialization Potential: The dual-use viability and market readiness of your solution—its potential to scale in both defense and commercial sectors.
Strong applications clearly articulate all three dimensions, showing technical excellence, a validated Air Force or Space Force use case, and a credible path to commercial success.
Are there any restrictions I should know about?
Proposal Template Compliance: You must use the required proposal template; any content placed outside designated pages will not be evaluated.
U.S.-Based R/R&D Requirement: All research and development activities funded under the award must be conducted within the United States.
ITAR Restrictions: Projects involving ITAR-controlled materials limit the participation of foreign nationals.
Customer Memorandum Requirement: A signed Customer Memorandum is mandatory for all Phase II and Direct to Phase II (D2P2) submissions.
How long will it take me to prepare an application?
For a first-time applicant, preparing a competitive submission will likely take 120–200 hours in total.
How can BW&CO help?
Our team specializes in complex federal R&D proposals and can:
Triple your likelihood of success through proven strategy and insider-aligned proposal development
Reduce your time spent on the proposal by 50–80%, letting your team focus on technology and operations
Ensure you are targeting the best opportunity for your project and positioning your company for long-term growth.
How much would BW&CO Charge?
Our full service support is available for
Phase I: $9,000 Flat Fee + a 5% Success Fee.
Phase II/D2P2: $15,000 Flat Fee + a 5% Success Fee.
Fractional support is $300 per hour.
For startups, we offer a discounted rate of $250 per hour to make top-tier grant consulting more accessible while maintaining the same level of strategic guidance and proposal quality.
Additional Resources
Access the AFWERX Website here.