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DLA Military Unique Sustainment Technology III (MUST-III) Broad Agency Announcement (BAA)
Deadline: January 16,, 2026.
Funding Award Size: Likely $5M to $10M+
Description: The MUST-III program funds R&D projects that modernize the Department of Defense clothing and individual equipment (CIE) supply chain—advancing digital manufacturing, supply chain resilience, and innovation in textile technologies to support rapid, scalable, and cost-effective military sustainment.
Executive Summary:
The Defense Logistics Agency’s MUST-III BAA provides up to $50M over five years for R&D that improves the military’s clothing and equipment manufacturing ecosystem. Companies may apply during the initial 45-day window (through Jan 16, 2026) for IDIQ consideration, or later through rolling White Paper submissions once the BAA reopens.
How much funding would I receive?
The BAA does not specify individual award ceilings, but it does specify:
Total available program funding: up to $50M over 5 years.
Awards are issued as cost-type contracts, which commonly support multi-hundred-thousand- to multi-million-dollar R&D projects.
Each Short-Term Project (STP) is typically 3–24 months.
Historically, DLA ManTech STPs are substantial technical efforts—often sized to fully execute a discrete R&D solution (e.g., digital thread capability, manufacturing prototype, supply chain modeling tool).
What could I use the funding for?
Projects must align with one of the three Technical Areas of Interest:
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Establishing a single, trusted digital version of clothing and individual equipment specifications, manufacturing data, and sourcing details to reduce errors, increase speed, and enable automation throughout the supply chain.
o This includes transitioning from traditional technical documents to digital data as the primary source of truth, ensuring all design, sourcing, and production information is timely, accurate consistent, accessible, and secure.
o Emphasis should be placed on integrating model-based systems engineering, digital twins, and digital thread technologies. This transformation should rely on IT architectures that support interoperability, cybersecurity, and protection of intellectual property.
o Advanced technologies such as augmented reality, AI, and machine learning could be utilized to bridge business and technical workflows, enhancing accuracy and operational efficiency.
o Establishing secure, “time of need” information sharing capability e.g. Application Program Interfaces to enable distribution of technical data over the product lifecycle.
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Developing and demonstrating adaptive manufacturing capabilities and buffer strategies—like material stockpiles or alternate sourcing—that help the industry continue operating during surge requirements, large-scale conflicts, disasters, or disruptions.
o Research in this area could focus on mapping supply chains, identifying critical bottlenecks, or developing models to simulate and respond to various disruptions. Tools like digital twin simulations of the supply chain and predictive analytics could be utilized to proactively address labor shortages, material delays, and capacity issues.
o Researchers might also examine how to incorporate surge readiness, excess capacity strategies, and prepositioned material stockpiles to ensure stability in times of crisis.
o Supplier categorization using digital platforms could support diversified sourcing and highlight alternative production pathways when traditional channels are compromised.
o Develop capabilities to manufacture for low-volume or “made to measure” items, cost effectively with the very short lead-time needed to meet mission requirements (e.g. training goals).
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Encouraging research and development in novel materials, garment designs, and production methods (e.g. 3D knitting, advanced wearables, automated sewing) to enhance the performance, comfort, and scalability of military clothing and individual equipment.
o Efforts should prioritize interfacing and coordinating with the Military Services on the development of cutting-edge textile technologies, next-generation uniform systems. This includes advanced manufacturing techniques. containerized and point-of-need manufacturing capabilities that allow rapid setup and deployment in remote or austere environments.
o Research to encourage exploration into wearable technologies, self-healing fabrics, and automated production techniques such as 3D knitting and robotics. Digital representations of product lifecycles and materials performance, paired with a workforce trained in AI and digital tools, will ensure that new capabilities are both scalable and resilient.
Are there any additional benefits I would receive?
Beyond direct funding, companies gain several strategic advantages:
Government Validation & Credibility
Selection under DLA’s Manufacturing Technology (ManTech) program is a strong technical endorsement. This validation can accelerate partnerships with primes, OEMs, and investors who trust government-vetted innovation.
Visibility & Industry Notoriety
Awardees participate in DLA working groups and may be highlighted in federal program materials—raising national profile within the defense textile and advanced manufacturing ecosystem.
Access to DLA Experts & Ecosystem Collaboration
IDIQ awardees join a 5-year Working Group, providing direct collaboration with DLA program managers, CIE stakeholders, and other innovators—unlocking future contracting and transition opportunities.
Stronger Long-Term Valuation & Exit Potential
Advancing technology under nondilutive federal funding de-risks the product roadmap and strengthens valuation in future equity rounds or acquisition discussions—especially with defense, apparel manufacturing, or automation companies.
What is the timeline to apply and when would I receive funding?
Initial Deadline:
Full technical & cost proposals due January 16, 2026 (45 days after Dec 2, 2025 posting).
These proposals are for IDIQ contract consideration.
After Initial Period:
The BAA temporarily closes for evaluation.
It then reopens for rolling White Paper submissions for the remainder of the 5-year period.
Award Timing:
After evaluation, DLA notifies offerors of selection.
Task orders (STPs) may or may not be immediately issued to IDIQ holders.
Additional STPs may be awarded after White Papers → requested proposals → evaluation cycle.
Where does this funding come from?
Funding comes from the Defense Logistics Agency (DLA) under the Department of Defense (DoD) Manufacturing Technology (ManTech) Program.
Who is eligible to apply?
Any responsible U.S. source capable of meeting government requirements, including:
Large businesses
Small businesses (including WOSB, HUBZone, SDB, VOSB, SDVOSB)
Nonprofits
Universities / Minority Institutions
HBCUs
There is no set-aside.
Must meet minimum standards in: financial resources, accounting system adequacy, technical capabilities, past performance, and compliance with FAR Part 9.
What companies and projects are likely to win?
Competitive applicants typically include companies with:
Expertise in digital engineering, textile manufacturing, AI/ML, automation, or supply chain analytics.
Demonstrated DoD or CIE manufacturing experience (digital data, prototyping, supply chain modeling).
Capabilities aligned tightly to Technical Areas of Interest.
Strong past performance and ability to transition solutions into the production environment.
Examples of strong project types:
Digital twin implementation for apparel manufacturing
Secure digital technical data environment (authoritative source of truth)
Surge production capability modeling
Automated sewing or 3D knitting demonstrations
Wearable sensor textiles
AI-enabled supply chain forecasting for CIE items
Are there any restrictions I should know about?
Key requirements include:
Cybersecurity compliance (DFARS 252.204-7012, NIST SP 800-171, CMMC).
No compensation for proposing STPs (including White Papers).
Subcontracting plans required for large businesses on proposals > $750,000.
Projects must be executed within U.S. regulations for export controls, IP, and data rights.
How long will it take me to prepare an application?
For a first-time applicant, preparing a full proposal under this opportunity will likely take 150-200 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 under Federal & State R&D Initiatives.
How much would BW&CO Charge?
Our full service support is available for a flat fee of $15,000 + 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.
Resources
See the full solicitation here.