A common question for many small defense businesses, but one that is far more complex than it seems, “should we go after a SBIR or OTA contract?”
But to keep things interesting let’s just make the answer simple with an easy rule of thumb. If you have a potential Government or Military customer that is willing to pay now, and time is of the essence in any sense (especially for the customer), then go OTA, otherwise go SBIR. Is it that simple, no, but can it be that simple, yes. There are many things to consider, and you could come up with all kinds of justifications for either contract given any number of situations. At the end of the day, people like simple answers to hard questions. To that end, it is best to look to the primary advantages and disadvantages of each to form a rule of thumb.
The OTA gives you the speed to award of the contract, and the SBIR gives you separate access to funding for development. If you need speed and have the money, then OTA is likely the better bet. If you don’t have the money or need more, then having any shot at additional funding from other sources is an important advantage of the SBIR program. Alternatively, the negatives are the qualifications for the OTA can be higher than SBIR. The SBIR can be more competitive to be awarded than the OTA. That’s just what I would argue are the biggest hurdles, though there are plenty more to list out in comparison.
Regardless of your choice, each is a unique game to play in and of itself. Knowing the rules of that game, and the strategies of how to play it well, are the keys to success in both.
