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Congratulations! You’re ready to turn your SBIR success into a non-SBIR Phase III.

What does that mean? Well,  you worked A LOT of hours researching and developing a strategy through the SBIR Program. You logged A LOT of flight miles attending conferences to make sure you made the right connections in the space. And you drank A LOT of coffee while looking through pages of solicitations to make sure that your SBIR proposal was not only compelling, but compliant.

(Or you paid us to do most of that for you…)

And guess what—You Won! You now have sole-source authority!

But now what?

Well, now the fun begins! Now is when you can begin pursuing the bigger dollars. Now is when you begin to pursue an enterprise deal with the DoD!

So what does that look like?

There are three key Phase III contract types that we leverage most on behalf of our clients:

Purchase order (PO):

A PO is a simple contract that specifies the terms and conditions for buying supplies or services using Simplified Acquisition Procedures (SAPs). SAPs can be used for contracts up to $250K or up to $7.5M for commercial items.

A PO is usually issued on a fixed-price basis, which means you know exactly how much you will be paid and when. This is a great option for small and quick projects that do not require a lot of negotiation or oversight.

Indefinite delivery, indefinite quantity (IDIQ):

An IDIQ is a contract that allows the government to order supplies or services from you as needed, without having to go through a lengthy procurement process each time. An IDIQ has a maximum ceiling amount that cannot be exceeded and a period of performance that defines how long the contract is valid.

You can receive orders from multiple agencies under the same IDIQ, which increases your exposure and opportunities. However, getting an IDIQ can be competitive, meaning that you have to compete with other vendors for each order.

Blanket purchase agreement (BPA)

A BPA is similar to an IDIQ but is used for smaller and more frequent purchases below the Simplified Acquisition Threshold (SAT) of $250K. A BPA is like a charge account that you set up with the government, in which you agree on a list of prices and discounts for your products or services in advance.

Then, whenever the government needs something from you, they can place an order without having to solicit bids or quotes. A BPA is convenient and flexible for both parties and can help you establish a long-term relationship with your customers.


As you can see, there are many ways to leverage your sole-source authority and expand your business with the government. Whether you choose a PO, an IDIQ, or a BPA, you will have an advantage over other vendors who have to compete for contracts.

However, each type of contract has its own pros and cons, so you should carefully evaluate your goals and capabilities before pursuing one of the options.