The Department of Transportation has released a pre-solicitation notice for the FY26 Small Business Innovation Research (SBIR) Phase I solicitation, covering 10 research topics across five DOT operating administrations. The final solicitation is expected on June 3, 2026, with awards in September 2026.
SBIR Phase I is a competitive R&D funding mechanism reserved exclusively for small businesses. Awards fund feasibility research on a defined government problem, with successful Phase I recipients eligible to compete for Phase II funding to develop and demonstrate their solution. DOT’s FY26 topics span artificial intelligence applications, transportation safety analytics, hazardous materials packaging, battery safety, and transit planning.
OPPORTUNITY SNAPSHOT
- Opportunity: DOT FY26 Small Business Innovation Research (SBIR) Phase I
- Agency: Department of Transportation
- Estimated Value: TBD (Phase I awards are typically in the $200K–$300K range per topic)
- RFP Expected: June 3, 2026
- Award Expected: September 2026
- Competition Type: Small Business Set-Aside
- Number of Awards: Multiple (number is TBD)
- NAICS: 541715 – Research and Development in the Physical, Engineering, and Life Sciences
- Place of Performance: United States
WHY DOT’S FY26 SBIR MATTERS
SBIR is one of the few federal contracting mechanisms that explicitly funds early-stage technology development from small businesses, without requiring prior federal contract history to compete. For firms with a novel technology relevant to one of the 10 topics, Phase I represents a direct path to federal R&D funding and a relationship with the relevant DOT operating administration.
The FY26 topic mix reflects DOT’s current priorities:
- AI-driven safety and operations tools
- Battery and hazardous materials safety in the context of electrification
- Data-driven freight and transit planning
Firms with proprietary technology or research capabilities in any of these areas should review the full topic descriptions in the solicitation appendix to assess alignment.
Phase I awards establish the foundation for Phase II, where funding is larger and where successful performers can begin building a longer-term relationship with the sponsoring agency. For small technology firms looking to enter the federal transportation market, SBIR’s are often the most direct starting point.
WHO SHOULD CONSIDER DOT’S FY26 SBIR
DOT’s FY26 SBIR Phase I is open only to small businesses as defined under SBA’s SBIR Policy Directive. Firms must be registered in both SAM.gov and SBA’s SBIR Company Registry to submit. Relevant firm profiles include:
- AI and machine learning firms with applications in transportation safety, traffic management, or freight analytics
- Transit technology developers focused on accessibility, trip planning, or multimodal integration
- Battery safety and energy storage researchers, particularly in rail or hazardous materials contexts
- Materials science firms working on packaging, thermal coatings, or self-healing materials
- Firms with prior SBIR or STTR experience in transportation, energy, or safety domains
Each topic is its own competition, and firms should identify one or two topics where their technology is the strongest fit and focus there rather than submitting across multiple topics without deep alignment.
HOW OST CAN HELP
OST supports small businesses preparing SBIR Phase I proposals with:
- Topic alignment review: Evaluating which of the 10 topics best matches your technology and research capabilities
- Technical proposal development: Writing and structuring Phase I proposals to meet DOT’s evaluation criteria
- Compliance review: Confirming SAM.gov and SBIR Company Registry eligibility and submission requirements
- Phase II positioning: Framing your Phase I work to support a competitive Phase II follow-on
If you are evaluating whether you can qualify for DOT SBIR funding or need support with your Phase I and II solutioning, we are happy to help you determine if you can benefit from this small business grant offering. If this interests you, please book a call with OST Partner and President Bill Schalik via the button below.
