On April 20, 2026, one week after President Trump signed the Small Business Innovation and Economic Security Act (Public Law 119-83) into law, the Department of War (“DoW”) issued a press release announcing that it was “immediately advancing” a “redesigned and more focused initiative to accelerate the delivery of advanced capabilities to the warfighter.”  As we covered last month, the Small Business Innovation and Economic Security Act reauthorizes the Small Business Innovation Research and Small Business Technology Transfer (“SBIR/STTR”) programs through September 30, 2031, ending a nearly six-month lapse that froze new SBIR/STTR solicitations and awards across federal agencies.

The DoW’s announcement signals that the Department intends to be the first mover in implementing the reauthorized SBIR/STTR programs.  The announcement also introduces a new initiative, the Accelerated Research for Transition (“ART”) Program, that warrants close attention from the defense small business community.

The DOW Announcement

The DoW press release describes a structural overhaul of DoW’s SBIR/STTR enterprise organized around three “innovation outcomes”:

  • differentiated technology,
  • scalable products, and
  • operational capability innovation.  

According to DoW, this framework aligns with Secretary Hegseth’s mandate to transform the defense innovation ecosystem by prioritizing the fielding of critical capabilities at scale.  The Department released more than 90 SBIR/STTR solicitation topics immediately following the reauthorization and directed small businesses to the DoW SBIR/STTR Innovation Portal (“DSIP”) for information on those solicitations and proposal timelines.

The centerpiece of the announcement is the newly established ART Program, created by DoW’s Office for Small Business Innovation.  The ART Program is designed to bridge the so-called “valley of death”:  the financing gap technologies face between the end of SBIR Phase II awards and introduction of the product or service to the commercial market.  Under Secretary of War for Research and Engineering Emil Michael stated that the reauthorization will allow the Department to “quickly align its innovation investments directly with our most urgent warfighting needs,” while Assistant Secretary of War for Science and Technology Joseph Jewell called the ART Program “a critical engine” for “rebuilding military lethality and reestablishing deterrence.”

The ART Program appears to complement (and potentially operationalize) the Strategic Breakthrough Awards authority created by Section 3 of the Small Business Innovation and Economic Security Act.  As we discussed in our prior post, Section 3 of the Act allows agencies with annual SBIR expenditures exceeding $100 million to allocate up to 0.50% of their extramural research and development budgets for awards of up to $30 million per project, provided that the total period of performance does not exceed 48 months.  Eligibility requires: (1) at least one prior Phase II award; (2) at least 100% matching funds from new private capital, qualifying non‑SBIR government sources, or a combination of both; and (3) demonstrated commercial viability.  Section 3 imposes additional requirements on DoW applicants, including demonstrated technology readiness, a commitment for inclusion in a Program Objective Memorandum from a senior acquisition official, and at least 20% of matching funds from new DoW sources outside the SBIR/STTR programs.

Significance for Government Contractors

The DoW’s rapid implementation of the reauthorized SBIR/STTR programs carries several practical implications for small businesses and their partners in the defense industrial base.

  • First, the speed of the rollout itself is significant.  With more than 90 topics already open, small businesses that prepared during the lapse period will have a meaningful head start.  Companies that delayed preparation should act quickly to identify relevant topics and begin assembling proposal teams.
  • Second, the ART Program creates a new and potentially significant pathway for Phase II awardees to secure additional funding for technology transition.  While precise details of the program’s mechanics have yet to be confirmed, the emphasis on “matched funding with the sponsoring military component” suggests that small businesses will need to cultivate relationships with DoW program offices and identify acquisition sponsors willing to commit resources.  Early engagement with potential military customers will be critical.
  • Third, the enhanced national security screening provisions in Section 2 of the Act—which bar awards to companies with connections to entities on eight specified federal watch lists and expand due diligence requirements to cover cybersecurity practices, patent portfolios, foreign ownership, and personnel affiliations—will require applicants to proactively audit their own corporate structures and partnerships.  STTR applicants should pay particular attention, as the assessments will extend to partner research institutions.
  • Finally, the new proposal caps established by Section 4 of the Act, effective in fiscal year 2027, will require companies to be more strategic about which solicitations they pursue.  Although agencies retain discretion to set limits on a per-fiscal year, per-solicitation, or per-topic basis, the days of high-volume proposal submissions may be numbered.  Companies should monitor DSIP carefully to understand how DoW implements these limits.
Tags: Accelerated Research for Transition Program, DoD, DoW, SBIR, Small Business, Strategic Breakthrough Awards
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Photo of Scott A. Freling Scott A. Freling

Scott Freling co-chairs the firm’s Government Contracts practice and is recognized by Chambers USA as a leading practitioner. He divides his practice between representing civilian and defense contractors in traditional government contracts matters and guiding buyers and sellers—including a number of leading private…

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Scott also represents contractors at all stages of the procurement process and in their dealings with federal, state, and local government customers. He handles a wide range of government contracts matters, including compliance counseling, contract terminations, claims, disputes, audits, and investigations. Scott frequently advises contractors on organizational conflicts of interest and government intellectual property rights. He also counsels clients on risk mitigation strategies, including obtaining SAFETY Act liability protection for anti-terrorism technologies.

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