Industry Contracting Guide
Government Contracts for Research & Development
Federal R&D obligations exceed $190B and span DoD, DOE, NIH, NSF, and NASA. SBIR/STTR is the lowest-friction entry point for small technology firms.
Industry snapshot
- Average contract size
- $50K–$2M (Phase I/II); larger at Phase III
- Common certifications
- 8(a) · WOSB · HUBZone
Common government buyers
- Department of Defense (DoD)
National defense and military operations
- National Institutes of Health (NIH)
Biomedical research
- National Aeronautics and Space Administration (NASA)
Aeronautics, space exploration, and science
- Department of Energy (DOE)
Energy security, nuclear safety, science
Typical contract types
- SBIR/STTR
- Cost-plus
- OTA prototype
Challenges to expect
- IP rights negotiation
- Cost accounting standards
- Phase III transition
Where the opportunities are right now
- DoD SBIR open topics
- NIH SBIR Direct-to-Phase-II
- NASA TIPS
Most relevant NAICS codes
- NAICS 541713 — Research & Development in Nanotechnology
- NAICS 541714 — Research & Development in Biotechnology (except Nanobiotechnology)
- NAICS 541715 — Research & Development in the Physical, Engineering & Life Sciences
States with the most research & development contracting activity
- Maryland — ~$33.8B annual
- California — ~$73.5B annual
- Massachusetts — ~$17.2B annual
FAQs
- What agencies buy the most research & development services?
- Top federal buyers for research & development include Department of Defense, National Institutes of Health, National Aeronautics and Space Administration, Department of Energy.
- What is the typical contract size in research & development?
- Average federal contract size in research & development ranges $50K–$2M (Phase I/II); larger at Phase III, with the largest awards typically flowing through IDIQ MATOC pools and BPAs.
- Which NAICS codes apply to research & development?
- The most relevant NAICS codes are 541713 (Research & Development in Nanotechnology); 541714 (Research & Development in Biotechnology (except Nanobiotechnology)); 541715 (Research & Development in the Physical, Engineering & Life Sciences).
- What certifications matter most in research & development contracting?
- Common gating certifications include 8(a), WOSB, HUBZone. Set-aside certifications (8(a), HUBZone, WOSB, SDVOSB) layer on top for small businesses.
- What are the biggest challenges for new entrants?
- IP rights negotiation; Cost accounting standards; Phase III transition. These are surmountable but should be priced into your B&P investment.