To win a Defense Innovation Unit (DIU) Commercial Solutions Opening (CSO) award, answer a posted Area of Interest with a solution brief of up to five pages or 15 slides, pitch if invited, then negotiate a prototype Other Transaction (OT) agreement. DIU says it often awards within 60 to 90 days; as of November 14, 2026, no CSO is open.
DIU is the Pentagon unit charged with accelerating the adoption of commercial technology by the Department of Defense (DoD), which has also styled itself the Department of War since September 2025. Its CSO is the most direct route from a startup's product to a funded military prototype, without the paperwork of a traditional contract. This guide follows the official CSO text, amended on March 13, 2026, step by step.
What is the DIU Commercial Solutions Opening?
The CSO is a standing, competitive solicitation. DIU does not post one long request for proposals; it posts short Areas of Interest (AOIs), each a broad problem statement, and every response is governed by the same CSO rules. The current version, Amendment 0001 to CSO HQ0845-20-S-C001 and HQ0034-20-9-DIU, took effect on March 13, 2026 and replaced the version first posted on March 23, 2020. It adds Army Contracting Command New Jersey as a contracting partner alongside Washington Headquarters Services.
Awards are prototype OT agreements under 10 U.S.C. 4022. OTs are not governed by the Federal Acquisition Regulation, so terms are negotiated. DIU says companies may propose their own commercial terms, such as software license agreements, although some terms the government cannot accept.
How to apply to the Defense Innovation Unit, step by step
- Find an open AOI on DIU's Open Pathways page, or sign up through DIU's interest form to be notified when new solicitations post. AOIs can appear at any time and close on a fixed date.
- Submit a solution brief through the DIU website before the AOI closes. Submissions sent by other channels or after the deadline are not reviewed.
- Wait for the first answer. DIU says it will "get back to you within 30 days" on whether it wants a pitch.
- Pitch, in person or virtually, if invited. The pitch must include a rough order of magnitude (ROM) price, a notional schedule and your data rights assertions.
- Receive a Request for Prototype Proposal (RPP) if selected and funding is available. Start your SAM.gov registration now: the CSO says companies "are advised to commence SAM registration upon receipt of an RPP."
- Write and negotiate the full proposal: a technical section with a statement of work and schedule, and a price section.
- Sign the prototype OT with the Agreements Officer, the only official who can bind the government, and register in the government invoicing system (Wide Area Workflow).
- Deliver the prototype, then negotiate a follow-on production contract without a new competition if the prototype is successfully completed.
How to write a DIU solution brief
The CSO recommends, but does not require, a brief of no more than five written pages in 12-point font, or no more than 15 briefing slides. "Unnecessarily elaborate brochures or proposals are not desired," it says, and diagrams are "strongly encouraged." The brief has four parts:
| Section | What to include |
|---|---|
| Title page (not counted) | Company name, title, date, point of contact, email, phone, address, and the AOI you are answering |
| Executive summary (one page) | The technology in plain terms |
| Technology concept | What is unique; whether you are piloting an existing commercial product or adapting one; a maturation path; what is proprietary |
| Company viability | Funding raised to date or revenue, commercialization and go-to-market strategy |
Briefs are scored against the AOI, not against each other, on three criteria: relevance to the AOI, whether the approach is unique or innovative and compelling for the problem, and technical merit and feasibility. DIU warns that it "routinely receives more Solution Briefs than has the resources to award," so a brief can be judged of merit and still not be invited to pitch. Companies may submit several briefs to one AOI if each is a distinct concept, and proposed periods of performance should generally not exceed 24 months.
The pitch and the proposal
Pitches are evaluated on seven factors: relevance, technical merit, company viability, innovation, the ROM price, the schedule and the impact of your data rights assertions. DIU may use outside market research to judge viability. A pitch stays valid for 180 calendar days: if DIU likes the solution but has no money yet, it can still ask for a proposal within that window. After 180 days without funding, the company is no longer eligible for an award under that AOI.
At the proposal stage, the government checks the statutory tests for an OT prototype: that the work is a prototype, that quantities are limited to what is needed to prove feasibility or military utility, that it is relevant to DoD mission effectiveness, and that a nontraditional defense contractor participates to a significant extent. If not, one third of the cost must be shared. Agreements above $5 million include a clause giving the Comptroller General access to records.
How long does the DIU CSO process take?
| Stage | Timing stated by DIU |
|---|---|
| AOI open | Fixed closing date per AOI |
| Response to solution brief | Within 30 days |
| Pitch validity | 180 calendar days from the pitch |
| Posting to award | "Often awarding within 60-90 days" |
| Prototype period of performance | Generally no more than 24 months |
| Follow-on production | Negotiated after successful completion, without further competition |
Sources: DIU, Work With Us: Companies; DIU Open Pathways; CSO Amendment 0001. Sixty to 90 days is DIU's description of what it often achieves, not a guarantee.
From prototype to production: the follow-on
The production follow-on is the reason founders chase a DIU prototype. Under 10 U.S.C. 4022(f), the CSO says, the government and company "may negotiate a follow-on production contract or agreement without further competition" once the prototype is successfully completed, and every AOI and prototype OT must say so. Completion can be declared early for parts of a project that already work, and prototypes can be expanded by mutual agreement to new missions, including for other federal organizations.
Results are mixed. From fiscal 2016 through fiscal 2023 DIU made 450 prototype awards to companies, and it reported that 51% of completed prototypes moved to production, according to a GAO report of February 27, 2025. GAO also found DIU lacked measurable performance goals and made six recommendations, which DIU accepted.
Which startups have won Defense Innovation Unit awards?
Several companies in our directory cite recent DIU selections:
- Swarm Aero, of Oxnard, California, was selected by DIU from a pool of 132 companies for the Autonomous Collaborative Teaming program, reported in March 2026.
- Watchtower Labs, a Seattle logistics-planning software startup, was selected in January 2026 for DIU's Joint Sustainment Decision Tool program, per Military and Aerospace Electronics.
- Mach Industries, of Huntington Beach, California, was chosen in July 2026 to lead aircraft integration and development for the Runway Independent Maritime Expeditionary Strike (RIMES) program, according to The Defense Post.
These selections show the pattern DIU looks for: a company with commercial traction or private funding, a working product, and a clear military use. See more autonomy and AI startups and drone companies in the directory.
What is open at DIU right now?
As of November 14, 2026, DIU's Open Pathways page shows zero open CSO opportunities and zero Bridge openings. One opportunity is open under Challenges and Commercial Acceleration Opportunities: the Autonomous Warfare "Suitable Warfighting Adaptive Payloads (SWAP)-USV Sprint 2," closing November 30, 2026 at 23:59 Eastern. DIU also lists CLASS ACT, a program to expand the number of top secret cleared nontraditional companies, currently seeking entities that help counter unmanned systems in the maritime domain; its instructions are on SAM.gov and every key manager must be a US citizen.
One DIU program has moved: the Blue UAS list of vetted drones transitioned to the Defense Contract Management Agency on December 3, 2025, DIU announced. Drone makers seeking that list now apply to DCMA, not DIU.
Can foreign companies apply to DIU?
Yes. The CSO states that foreign-owned businesses may submit on their own or as part of a team with US-owned businesses, although an award may depend on their ability to obtain the necessary clearances and approvals. DIU says it works with companies "both in the U.S. and internationally, across allied countries." Classified programs such as CLASS ACT carry stricter citizenship rules.
DIU CSO vs SBIR: which route fits?
| Defense Innovation Unit CSO | DoD SBIR | |
|---|---|---|
| Who can apply | Any company, including large and foreign firms | US small businesses with 500 or fewer employees |
| Contract type | Prototype OT agreement | SBIR contract (Phase I, Phase II), then Phase III |
| Money | Set by the project; no fixed ceiling | Phase I up to $335,937 and Phase II up to $2,239,578 without waiver |
| Best for | Products that already work commercially | Earlier technology needing feasibility and prototype funding |
| Path to production | Follow-on production without new competition | Phase III sole source with SBIR data rights |
Many startups use both. See our guides to SBIR award amounts and the AFWERX application process. A DIU selection does not guarantee an award or a production contract.
