First, it important to note that there is no public notice requirement for SBIR Phase IIIs. For example, the Small Business Administration’s (SBA's) Policy Directive Section PD 2(j)(4)(iii) eliminates all public notice requirements of FAR 5.3 for SBIR Phase III (see page 6, SBA Link ).

See:

and,

SBIR Phase III Awards Are Exempted from the Notice Publication Requirements.

Navy SBIR and STTR Phase III Guidebook Page 13 Navy Link

Furthermore, per the Defense Acquisition University’s (DAU) Contracting Cone, SBIR Phase III acquisitions provide agencies with the “ability to uniquely negotiate terms, conditions, and pricing arrangements enables improved mission outcomes.”

This flexibility enables rapid integration of cutting-edge solutions while protecting the SBIR company's intellectual property.

The Army, for example, states “the (government) Technical Point of Contact (TPOC) and/or (Small Business Concern) SBC must provide the narrative and lineage to prior SBIR / STTR PH I/II/III efforts.” Therefore, the government may have direct conversations with the Phase I/II company. Below are references to DoD agencies desktop references and guidebook for SBIR/STTR Phase III Sole Source Acquisitions:

Moreover, per the SBA Policy Directive:

Direct conversations with the Phase I/II company is a core advantage of the SBIR Phase III framework, which allows for requirements definition and pricing discussions in collaboration with the government to understand how the SBIR Phase I or II derives, extends, or completes the program office requirements. This process fosters more precise development of the final deliverables, and budgets, and ensures that the solution is aligned with the mission’s evolving needs.