How to Sell to the Department of Defense: SBIR/STTR, OTAs and DoD Procurement Pathways Explained

The Department of Defense is the largest contracting agency in the federal government, accounting for well over half of all federal contract spending. For companies new to defense contracts, DoD can feel like a maze. This guide explains the main DoD procurement pathways, including SBIR/STTR and Other Transaction Authority (OTA), and how to get started.

Understand How DoD Buys

DoD buying is spread across the military departments (Army, Navy and Marine Corps, Air Force and Space Force) and defense agencies such as the Defense Logistics Agency (DLA), Defense Information Systems Agency (DISA) and Defense Health Agency. Each has its own contracting commands, small business offices and forecasts. Pick a few target buying commands instead of "selling to DoD."

Traditional FAR-Based Contracts

Most DoD awards follow the FAR and the Defense Federal Acquisition Regulation Supplement (DFARS). Expect DFARS clauses on cybersecurity (DFARS 252.204-7012 and CMMC), specialty metals and domestic sourcing, and counterfeit parts. Opportunities appear on SAM.gov, and DLA posts many supply solicitations on DIBBS.

SBIR and STTR: Non-Dilutive R&D Funding

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs fund small businesses to develop technology the government needs. Congress reauthorized the programs in 2026 after a lapse, so check current DoD topic releases.

• Phase I: feasibility study
• Phase II: prototype development
• Phase III: commercialization funded by non-SBIR money, which can be awarded sole-source

STTR requires partnering with a research institution. SBIR Phase III sole-source authority is a major advantage for successful firms.

Other Transaction Authority (OTA)

OTAs are agreements outside the FAR used for prototype projects, research and production follow-ons. They are faster and more flexible. Many are awarded through consortia that issue calls for white papers on behalf of DoD customers. Nontraditional defense contractors, including commercial tech startups, are a key audience for OTAs.

Other Entry Points

• Commercial Solutions Openings (CSOs) for innovative commercial technology
• Defense Innovation Unit (DIU) solicitations for commercial solutions
• Subcontracting to major defense primes, which must meet small business subcontracting goals
• APEX Accelerators, which provide free help to businesses entering the defense market

Requirements Defense Contractors Should Expect

• SAM.gov registration with a CAGE code
• NIST SP 800-171 compliance, an SPRS score and CMMC as required
• Facility and personnel security clearances for classified work
• ITAR or EAR export control compliance for defense articles and technical data

Frequently Asked Questions

Are OTAs only for large defense companies?

No. OTAs were designed partly to attract nontraditional and small companies.

How do I find SBIR topics?

DoD publishes topics through its SBIR/STTR program portal, and all agencies' topics are listed on SBIR.gov.

Can a commercial company sell to DoD without changing its product?

Often yes. Commercial product and service rules, CSOs and OTAs all aim to make commercial buying easier.

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