There was a time when I used to be involved marginally in the SBIR program and, as I recall, moving into phase III with a partner ideally would be negotiated during the course of the Phase II and included in the final report. This of course would be the ideal scenario and few companies met the requirements to move into phase IIIs, which was perhaps the main flaw in the SBIR program as many companies became what is known as "SBIR bandits" in that their intent was never to get to phase III but simply collect from the government many phase Is and phase IIs...
The fact that the SBIR phase II of the CD-137 program has been extended through next August should not necessarily be a signal that a partnership for that can not be struck at any time currently. I do not view GTCB as an SBIR bandit and all the indications are that they are truly trying to comercialize all their programs..