Inside DPA Title III

How the U.S. Government Funds Industrial Power Plays

If you’re building advanced materials, defense tech, or critical manufacturing in the U.S., there’s a funding mechanism you need to know about that most founders miss entirely.

Honestly, I've never heard of this, despite being in public sector contracting, funding and tech development for most of my adult life.

One of my Gov Close Certification Program students brought this up on a coaching call, reminding me of how big public sector is, and how many programs are available.

So, selfishly I dug into this. Here's what I found out.

It’s not venture capital. It’s not a government grant in the traditional sense. And it doesn’t dilute your equity.

It’s Defense Production Act Title III funding—and it can be a powerful tool for companies building future-proof industrial capacity.

What Makes DPA Title III Different

Here’s what caught my attention: Title III allows federal agencies to directly invest in American industrial capacity through grants, cost-sharing agreements, loans, or purchase commitments. But unlike typical government contracts, these aren’t just about buying products. They’re about building lasting infrastructure.

The pitch is simple: the government identifies critical gaps in America’s industrial base—things like rare earth processing, advanced composites, or munitions capacity—and then funds companies to fill those gaps. In return, you get:

Non-dilutive capital (no equity given up)

Demand signals (often with purchase commitments)

Strategic alignment with federal priorities that span administrations

Multi-year programs (because infrastructure takes time)

The DoD’s Office for Industrial Base Policy runs most defense-related Title III programs through the Air Force Research Laboratory. Other agencies like HHS use the same authority for their domains.

Why This Matters Now

The U.S. government is increasingly worried about supply chain vulnerabilities and foreign dependencies. Title III is their answer: invest directly in domestic capacity before crises hit.

To qualify, your project must be “essential for national defense” and demonstrate that private markets alone won’t solve the problem fast enough. That’s a high bar, but if you clear it, you’re playing a different game than venture-backed competitors.

Real Money, Real Projects

Let me show you what this looks like in practice:

Solid Rocket Motors (Sept 2024): The Department of Defense announced $33.5M in Title III awards to expand SRM industrial capacity. This wasn’t about buying rockets—it was about ensuring America can manufacture them at scale.

Rare Earth Magnets (2019-2020): Multiple Title III calls focused on rare earth separation and NdFeB magnet manufacturing. The goal: reduce dependence on Chinese supply chains for critical defense materials.

Advanced Composites (2021): Title III funding for ultra-high temperature composites supporting hypersonics and space launch. These materials are essential but commercially unproven at scale.

Critical Chemicals (2022): An open call for proposals to build resilient domestic chemical supply chains, focusing on precursors for energetic materials.

How to Actually Access This

Here’s your tactical playbook:

1. Monitor the Right Channels

If you want to get in front of Defense Production Act Title III investments before everyone else, you need to watch the right streams of information.

The U.S. Department of Defense typically announces Title III opportunities through a mix of funding opportunity channels rather than traditional procurement vehicles.

Start by bookmarking the official DPA Title III “Opportunities” page on the Industrial Base Policy website, which posts active and upcoming calls.

Next, monitor grants.gov, where most Title III Funding Opportunity Announcements (FOAs) are published, and sam.gov, which occasionally lists assistance notices or cooperative agreements tied to critical industrial base projects. If your company operates in R&D or advanced manufacturing, also keep an eye on OTA consortia portals—many projects blend OTA and Title III funding to accelerate scale-up.

Finally, follow DoD press releases, budget justifications, and congressional notifications; Title III projects are often telegraphed months in advance through policy and budget signals before the official FOA drops.

2. Write a White Paper First

Many Title III programs start with white papers, not full proposals. Your white paper should demonstrate:

A critical gap in the industrial base

Why private capital won’t solve it alone

Your technical approach and credibility

Alignment with one of three themes: sustaining critical production, commercializing R&D, or scaling emerging tech

**Note, I checked out some of the portals that are supposed to accept white papers like AFRL. There are some mixed messages like statements that say we're not accepting white papers at this time, but then giving you a link to where you can submit an unsolicited white paper. At least when I tried it, it took me to a site that didn't actually accept white papers. So you might expect a little bit of a run-around and some minor headaches to get to the right spot.

3. Get Ready

Before you apply:

Financial readiness: Most awards require cost-sharing or matching funds

Partnership strategy: Small companies often win by partnering with primes or joining consortia

Credibility markers: Existing DoD, NASA, or DOE contracts help significantly

Long-term commitment: These are multi-year programs with serious reporting requirements

4. Understand the Timeline

This isn’t fast money. Title III programs are infrastructure plays, often spanning 3-5+ years. You need strong project management, compliance capabilities, and audit readiness from day one.

The Bottom Line

If you’re building in advanced materials, critical manufacturing, clean energy tech, or defense-adjacent markets, DPA Title III represents a fundamentally different capital source. It’s patient, strategic, and aligned with America’s long-term industrial priorities.

The trade-off? Higher administrative burden, stricter requirements, and longer timelines than VC funding.

But for companies building hard infrastructure in strategic sectors, that’s exactly the point. You’re not just building a company—you’re building national capability.

Who’s Actually Winning These Awards?

A standout example is MP Materials, which in 2020 received a $9.6 million Title III investment to reinitiate rare-earth separation in the United States. In 2022, it secured an additional $35 million from the U.S. Department of Defense to build heavy rare earth processing capacity at its Mountain Pass facility in California.

Most recently, MP entered a major public-private partnership with DoD that includes significant federal investment to accelerate U.S. magnet manufacturing capacity. This series of awards has positioned MP as a cornerstone of America’s rare earth supply chain—an area previously dominated by China.

Meanwhile, Lyten, a lithium-sulfur battery innovator, has publicly advocated for Title III support but has not been confirmed as a recipient to date (at least not by me). Claims of Rocket Lab receiving Title III funding for carbon composite production remain unverified in publicly available DoD releases and budget documents. These distinctions matter—true Title III awards are documented in official DoD announcements, budget justifications, and industrial base reports.

The Numbers You Need to Know

Here’s what the data actually shows:

Award Sizes: Title III awards typically range from $5M to $150M+, with most falling between $10M-$50M. This isn’t seed money—it’s scale-up capital.

Matching Requirements: Expect to contribute 30-50% cost share, though this varies by program and company size. Some programs allow in-kind contributions (facilities, equipment, staff time) toward the match.

Timeline Reality: From white paper submission to award, plan for 9-18 months minimum. Some programs take 24+ months. If you need money in 6 months, this isn’t your path.

Success Rates: While exact data is hard to find, industry sources suggest roughly 15-25% of white papers advance to full proposals, and about 30-40% of those receive awards. Translation: It’s competitive, but not impossible.

Program Duration: Most Title III projects span 3-5 years, with some extending to 7+ years for major infrastructure builds.

The Insider Playbook: What Actually Gets Funded

After analyzing dozens of awards and talking to people who’ve won them, here are the patterns:

What Review Committees Look For:

Critical bottleneck identification: You need to show a specific, quantifiable gap in the industrial base. “We can make this cheaper” isn’t enough. “There are only two global suppliers and both are in China” is compelling.

Demand validation beyond DoD: The strongest proposals show commercial applications alongside defense needs. Dual-use is the magic word.

Technical credibility: You need proof the technology works. TRL 4-6 is the sweet spot (lab validation to prototype demonstration). Too early and they’ll say “come back later.” Too mature and they’ll ask why private capital isn’t sufficient.

Manufacturing realism: Hand-waving about “building a factory” won’t cut it. You need facility plans, equipment specifications, workforce strategies, and supply chain maps.

Risk mitigation: What happens if your primary approach hits a wall? Having backup plans shows maturity.

Common Rejection Reasons:

Insufficient national security justification: “This would be nice to have” loses to “adversaries can cut off our supply tomorrow”

Market solution exists: If private capital is already flowing to your space, you’ll struggle to justify Title III

Technology too immature: If you’re still proving basic feasibility, you’re too early

Unclear path to sustainability: What happens when Title III funding ends? They want self-sustaining businesses, not permanent dependents

Weak team credentials: First-time founders with no manufacturing experience face an uphill battle

The Pre-Proposal Conversations That Matter

Smart applicants don’t submit cold. They:

Attend industry days: AFRL and other agencies host these regularly. Show up, network, understand priorities

Request one-on-ones: Program managers often make themselves available for pre-submission discussions. Use these to pressure-test your concept

Study incumbents: Look at who’s won recent awards in your sector. What did their white papers emphasize?

Join consortia early: Groups like NDIA, EPIC, and sector-specific alliances can provide intel and connections

How Title III Compares to Other Paths

Here’s when to pursue Title III vs. other funding mechanisms:

Choose SBIR/STTR when:

You’re in the R&D phase (TRL 2-5)

You need smaller amounts ($150K-$2M per phase)

You want to maintain maximum flexibility

You’re a small business (required for SBIR/STTR)

Choose DIU when:

You have a commercial product ready now

You want speed (60-90 day awards possible)

You’re targeting dual-use applications

You’re comfortable with non-traditional contract structures (OTAs)

Choose traditional defense contracts when:

You’re selling existing products/services

You can handle FAR-based contracting

You want recurring revenue, not infrastructure investment

Choose Title III when:

You’re building manufacturing capacity, not just products

You need $10M+ for capital equipment and facilities

You can wait 12-24 months for funding

Market failure is clear and documented

You’re solving a strategic industrial base gap

The Catch-22s

The Scale Paradox: Many Title III programs want to see existing capacity before funding expansion. But you often need Title III funding to build that initial capacity.

Solution: Start with SBIR Phase III or other programs to build your pilot line, then use Title III for production scale-up. Or partner with an established manufacturer who has capacity but lacks your technology.

Foreign Ownership Restrictions: If your company has foreign investors or owners, you may face FOCI (Foreign Ownership, Control, or Influence) restrictions. Some Title III programs are fine with this if you set up proper mitigation (proxy boards, etc.), but others exclude foreign-owned entities entirely.

Solution: Address FOCI proactively in your white paper. Show you understand the issue and have mitigation plans. Better yet, structure your cap table early to minimize foreign ownership of entities bidding on Title III.

IP and Data Rights: The government will typically get at minimum “government purpose rights” to IP developed under Title III. For some companies, this is a dealbreaker.

Solution: Clearly delineate background IP (yours) vs. foreground IP (developed under the program). Structure the project to protect your crown jewels while giving the government what they need to ensure multiple sources of supply.

The Matching Fund Trap: You commit to 40% cost share, then hit technical delays that extend the program. Your matching obligation extends too, potentially straining your finances.

Solution: Build contingency into your matching fund commitments. And be realistic about technical timelines—padding your schedule isn’t weakness, it’s wisdom.

Post-Award Reality: What Actually Happens

Winning a Title III award is just the beginning. Here’s what months 1-36 look like:

The Compliance Burden

Expect quarterly technical reports, financial reconciliations, and program reviews. You’ll need:

A dedicated contracts administrator

Project management systems (EVMS for larger awards)

Cost accounting systems that separate Title III work from commercial

Security compliance if handling controlled information

One program manager told me: “Companies underestimate the administrative load by 50%. Budget accordingly.”

The Slow Money Reality

Title III awards often come in increments tied to milestones. You might win a $30M award but only receive $5M upfront. The rest comes as you hit technical and schedule gates.

This means your matching funds also deploy in stages—but your facility lease and equipment purchases might not wait. Cash flow management is critical.

The Pivot Problem

What happens when your technical approach hits a wall 18 months in? Title III programs are less flexible than VC-backed pivots. You’ll need formal modification requests, which can take months.

Best practice: Build modularity into your initial proposal. Show Phase 1, 2, 3 with clear decision gates. This gives you structured opportunities to adjust course.

Where the Money’s Flowing in 2025-2026

Based on recent solicitations and geopolitical trends, these sectors are hot:

Critical Minerals & Materials (highest priority)

Rare earths (especially heavy rare earths for magnets)

Lithium processing and battery materials

Tungsten, cobalt, graphite alternatives

Why: China dominance + EV/defense demand

Munitions & Energetics (highest priority)

Solid rocket motors

Artillery shell production capacity

Propellant and explosive precursors

Why: Ukraine conflict exposed production bottlenecks

Advanced Manufacturing (high priority)

Microelectronics packaging

Ceramic matrix composites

Additive manufacturing for defense

Why: Hypersonics, space, and next-gen platforms need these

Pharma/Bio Production (moderate priority)

API (active pharmaceutical ingredients) for critical drugs

Biomanufacturing capacity

Medical countermeasures

Why: COVID exposed pharmaceutical supply chain fragility

Space Industrial Base (moderate priority)

Launch vehicle materials

Satellite components

Propulsion systems

Why: Space Force priorities + commercial space growth

Semiconductors/Microelectronics (moderate priority but crowded)

Advanced packaging

Legacy chip manufacturing

Compound semiconductors

Why: CHIPS Act adjacent but Title III fills different gaps

Your Next Steps (Tactical Checklist)

If you’re serious about pursuing Title III, here’s what to do in the next 30 days:

Week 1: Self-Assessment

Does your technology address a documented industrial base gap?

Can you articulate why private capital isn’t solving this?

Do you have proof your technology works (TRL 4+)?

Can you commit matching funds (30-50% of project cost)?

Can you handle 12-24 month fundraising timelines?

If you answered yes to all five, keep reading.

Week 2: Intelligence Gathering

Set up alerts for DPA Title III solicitations in your sector

Download and study at least 3 white papers from similar past awards (use FOIA requests if needed)

Identify which agency manages Title III in your domain (DoD/AFRL, HHS/ASPR, DOE, etc.)

Week 3: Relationship Building

Find upcoming industry days or proposers’ conferences

Request informational meetings with relevant program managers

Join relevant industry associations (NDIA, EPIC, sector-specific groups)

Identify potential partners (primes, complementary small businesses, research institutions)

Week 4: Preparation

Draft a 2-page concept paper (even if no solicitation is open)

Map your financial capacity for cost-sharing

Assess FOCI risks if you have foreign investors

Start documenting the industrial base gap (data, reports, expert opinions)

Resources & Community

Essential Websites:

BusinessDefense.gov - Primary Title III portal

SAM.gov - Active solicitation listings

DIBMIS.gov - Industrial base assessments

AFRL Title III Office - DoD programs

Don’t Navigate This Alone

Title III funding can transform your company’s trajectory—but the process is complex, competitive, and constantly evolving. You need real-time intelligence on opportunities, expert guidance on positioning your application, and a network of people who’ve successfully navigated this path.

That’s why we built GovClose.

GovClose helps deep tech companies like yours:

Track active opportunities - Get alerts on new Title III solicitations before your competitors see them

Decode requirements - Understand what agencies actually want (not just what they say)

Optimize applications - Review your white papers and proposals with people who’ve won before

Build relationships - Connect with program managers, primes, and other founders in your sector

Plan strategy - Figure out if Title III is the right path, or if SBIR/DIU/other mechanisms fit better

We work with founders building the critical infrastructure America needs: advanced materials, defense tech, manufacturing capacity, energy systems, and supply chain resilience.

Visit GovClose.com to see current opportunities and get started.

The companies building America’s next industrial base won’t all be VC-backed unicorns. Many will be Title III-funded manufacturers solving strategic problems at scale.

Is that you?

About the Author

Richard C. Howard, Lt. Col. (Ret.) managed $82 billion in Air Force contracts before founding Federalytics and GovClose. Recognized as Air Force Analyst of the Year, he’s produced hundreds of Federal Market Blueprints guiding companies from Silicon Valley startups to Wall Street investors in scaling federal revenue. His market intelligence reaches audiences across the GovClose YouTube channel and podcast.Nothing in this post constitutes legal or financial advice—consult qualified professionals before pursuing Title III funding.