Pentagon's APFIT Program Surpasses $1B in Awards to Small Defense Innovators
March 11, 2026 · 2 min read
Jared Klein
The Defense Department's flagship program for moving innovative technologies from prototype to production has crossed a milestone: more than $1 billion in cumulative awards to small businesses and nontraditional defense contractors since its 2022 launch.
The first round of FY2026 APFIT selections includes 14 projects worth over $400 million, with the average award now exceeding $30 million per project — a sign of the program's growing scale and the Pentagon's increasing appetite for commercial technology.
What APFIT Funds
Unlike SBIR grants, which fund early-stage R&D, APFIT — Accelerate the Procurement and Fielding of Innovative Technologies — provides procurement funding for technologies that have already completed development and are ready to deploy. The program bridges the notorious "valley of death" between a successful prototype and an actual military contract.
This year's selections span unmanned vehicles, high-performance batteries, optical systems, munitions, communications pods, advanced manufacturing, and data networks. The largest single award — $49.7 million for an Army real-time command and control project — pushed against the program's $50 million statutory cap.
How Small Businesses Can Position Themselves
APFIT specifically targets small businesses and nontraditional contractors, defined as companies that haven't held a contract exceeding $500 million in the past year. The program has now funded technologies across dozens of companies in multiple states.
For defense tech startups that have SBIR Phase II or III projects approaching production readiness, APFIT represents a clear procurement pathway. Companies should engage with their relevant military service branch and monitor solicitations through the DOD APFIT portal.
The program's trajectory — from its 2022 launch to $1 billion in four years — suggests continued congressional support and expanding scope in future fiscal years.
Defense-oriented small businesses tracking federal contracting opportunities can find curated matches at grantedai.com. In-depth analysis of this story is available on the Granted blog.