SBIR Due Diligence Program

What is it?

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs exist to support America's small defense businesses so that they may have greater means to access necessary funding in a competitive environment. The Due Diligence program was created by the U.S. Department of Defense as a follow-up to these programs for the purposes of screening potential candidates. Their aim is to ensure that these small businesses follow guidelines that minimize their risk factor to national security concerns.

What is required of a company to be assessed by the Due Diligence program?

The Department of Defense Due Diligence program has several components that small business concerns (SBCs) must comply with to be considered for SBIR or STTR candidacy. The program components consist of:

1. A. The submission of a completed, SBA-approved "Disclosures of Foreign Affiliations or Relationships to Foreign Countries" form,
2. B. A review based on publicly available information (PAI) and commercially available information (CAI) if the candidate seeks a support agreement with the Air Force,
3. C. A Due Diligence review to assess security risks,
4. D. A counterintelligence review if the SBC has any foreign ownership control or influence (FOCI),
5. E. And will undergo a risk mitigation review board to assess potential risk factors.

The Department of Defense will not grant awards to companies that they deem to pose an unacceptable security risk that cannot reasonably be mitigated.

What criteria prohibits award reception for SBIR and STTR proposals?

The Department of Defense cannot grant awards to candidates if the SBC, its parent company or its subsidiary:

1. A. is located in a foreign country of concern (FCOC);
2. B. has an owner or covered individual with relations to a foreign research institution in a FCOC; or
3. C. has an owner or covered individual partied with a malign foreign talent recruitment program (MFTRP); AND

The nature of the relationships stated above cannot:

1. A. interfere with the Department of Defense's capacity to carry out activities the Department supports,
2. B. create duplication with DoD-supported activities,
3. C. present concerns with conflicts of interest,
4. D. remain undisclosed with the DoD,
5. E. violate federal law or DoD terms and conditions, or
6. F. pose a threat to national security.

All information from this page is derived from the memorandum signed by the Deputy Secretary of Defense Kathleen Hicks, dated May 13th, 2024 and cleared for open publication on May 23rd, 2024 with the subject "Defense Small Business Innovation Research and Small Business Technology Transfer Due Diligence Program". See the link labeled "SBIR Due Diligence Memorandum (May 2024)" in Forms and Resources for more details.