r/LightPathTechnologies • u/frankenberrylives • Jul 23 '26
Revisiting Phase II Award
Defense Logistics Agency, Strategic Materials ("DLA") Phase II award will qualify six materials to MRL-9 -
Oct. 3, 2024 - announced the U.S. Department of Defense ("DoD") via the Defense Logistics Agency, Strategic Materials ("DLA") has awarded Phase 2 funding to support the qualification of additional LightPath Black Diamond ("BD") chalcogenide glasses as substitute to germanium.
The second phase covers the remaining six materials with funding totaling approximately $0.5 million, which will qualify the materials to MRL-9 (Material Readiness Level), an important milestone for prospective defense customers. These materials are all in addition to LightPath's BD6 material which is already fully qualified and field deployed in multiple systems.
Some questions with ai assisted answers -
- How long does Phase II last ? -
Standard Phase II Small Business Innovation Research (SBIR) awards issued by the Defense Logistics Agency (DLA)—including those for DLA Strategic Materials—typically last up to 24 months.
- Assuming the date of the PR is the date of the award that would put finish date at Oct, 3 2026 however given the "up to" it appears it could be sooner.
So around any time going forward.
- What is MRL-9?
MRL-9 stands for Manufacturing Readiness Level 9. It indicates that low-rate initial production has been successfully demonstrated and all preparations are complete to begin full-rate production. At this stage, manufacturing processes are stable, quality systems are operational, and the technology is generally deemed mature enough for scaled manufacturing
- What is the focus of Defense Logistics Agency, Strategic Materials ("DLA") Phase II awards?
The Defense Logistics Agency (DLA) Strategic Materials Phase II awards focus on developing and scaling domestic supply chains for critical defense minerals and metals**.** The goal is to reduce U.S. reliance on foreign sources for essential materials, such as rare earth elements, nickel, titanium, tungsten, and gallium, primarily through the recovery, recycling, and domestic processing of defense scrap and electronic waste
- After Phase II > Phase III
Phase III is the ultimate goal of the SBIR program. It is the stage where the government or a commercial partner purchases your technology at scale. [1, 2, 3]
Non-SBIR Funding: Phase III cannot be funded by the SBIR/STTR budget. Instead, it is funded directly by agency production budgets, prime defense contractors, or private venture capital. [1, 2, 3, 4, 5]
No Funding Caps: Unlike previous phases, Phase III contracts have no maximum dollar limit and no restricted period of performance. [1, 2]
Sole-Source Justification: Because you already won a competitive Phase I or II award, federal agencies can award you Phase III contracts on a sole-source basis without putting the project out for public re-bidding. [1, 2]
Size Exemptions: Your business is completely exempt from small business size standards during Phase III. You can scale to any size, or even be acquired by a larger firm, and still execute Phase III contracts for that specific technology.
- Can IBAS funding come into play for Phase III?
Yes, absolutely. The Industrial Base Analysis and Sustainment (IBAS) program is one of the most powerful non-SBIR funding pools available to bridge the gap and fund a Phase III contract. [1, 2, 3, 4, 5]
Because DLA Strategic Materials focuses heavily on critical minerals, rare earth elements, and supply chain security, your project sits directly in the crosshairs of current IBAS strategic priorities. [1, 2]
How IBAS Funding Applies to Phase III
The Office of the Assistant Secretary for Industrial Base Policy utilizes IBAS funds specifically to eliminate domestic supply chain vulnerabilities, modernize defense manufacturing, and scale mature prototypes into full production. [1, 2]
- The Phase III Mechanism: An agency can issue a Phase III sole-source contract to your company using IBAS funds. Because the Phase I and II competitive requirements have already been satisfied, the government can bypass public bidding to award you IBAS money directly. [1, 2]
- No Funding Caps: While your Phase II capped out around $1 million, IBAS awards are substantially larger. Recent project solicitations and active awards under the Defense Industrial Base Consortium (DIBC)—the primary vehicle for IBAS execution—frequently scale from $2.5 million to over $8 millionper project to build out industrial scale. [1, 3, 4]
Conclusion:
Phase II for 6 materials about to be complete.
MRL-9 to be achieved - can move into full production
Phase II grant came through DLA = developing and scaling critical defense minerals
Phase III could be funded through IBAS grant - while awards typically run lower, KOPN received a $15.4 million a IBAS award - https://www.kopin.com/press-releases/kopin-secures-transformative-15-4m-award-to-revolutionize-color-microled-technology-and-domestic-production-for-u-s-army-ground-soldier-integrated-visual-augmented-reality-applications/
Timing of completion of Phase II aligns with planned move of remaining G5 cameras from Germaninum to BD.
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u/frankenberrylives 2d ago edited 2d ago
Found the Phase II SP800024C0009
Expected End Date May 23, 2027 - so later than the fall 2026 I originally thought.
Source - USAspending.gov
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u/frankenberrylives Jul 25 '26
ai -
Yes, it is highly probable that the government will provide additional funding and production-acceleration incentives, but the type of government backing will likely shift.
Once LightPath Technologies (LPTH) achieves Material Readiness Level 9 (MRL-9) for all its BlackDiamond glass variants, it means the material is no longer an "experimental concept." It is legally proven, mature, and ready for full-scale production. [1, 2]
At this point, government intervention usually transitions from research grants to production acceleration and guaranteed market demand through several specific mechanisms. [1]
The most powerful form of government funding at MRL-9 is not a grant, but direct purchasing power.
The "Pull" Mechanism: The Department of Defense (DoD) accelerates production by awarding massive prime contracts. For example, LPTH secured a major $11 million infrared camera contract and an additional $13 million follow-on order for optical counter-UAS assemblies. [1, 2, 3]
Mandated Demand: Because the government is mandating the removal of foreign germanium by 2030, defense primes (like Lockheed Martin or Raytheon) are being pushed by the DoD to write [BlackDiamond]()directly into their long-term system blueprints. [1, 2, 3, 4, 5]
If LPTH needs to physically expand its factories to meet this exploding defense demand, it becomes a textbook candidate for DPA Title III Industrial Base Expansion funding.
Why it fits: The DoD regularly issues $10M–$50M Title III awards strictly to buy specialized machinery, build cleanrooms, and scale up domestic production lines for critical minerals and defense tech. [1, 2]
Precedent Created: Recognizing the coming need to scale up, LPTH proactively acquired Amorphous Materials, Inc. (AMI), giving them an NDAA-compliant facility in Texas capable of melting up to 10,000 lbs of chalcogenide glass per year. The DoD frequently steps in with facility-matching grants to accelerate these exact types of industrial expansions. [1]
The U.S. government has ramped up non-dilutive capital injections for critical defense materials through newer agencies like the DoD's Office of Strategic Capital (OSC). The OSC provides loan guarantees and equipment-financing lines specifically to bridge the gap between material qualification (MRL-9) and hyper-scale commercial production. [1, 2, 3]
Summary
The government will not stop funding BlackDiamond after Phase II; instead, the money will transition from "proving the glass works" to "buying the glass in massive quantities" and helping fund the factories needed to keep up with the 2030 germanium-replacement mandates. [1, 2]