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AEgis Technologies’ SBIR/STTR

Success Story

Advanced Defense Technology Cluster

AEgis Technologies Group

SBIR Workshop

20 February 2013

Presented by

Steve Hill

President & CEO

The AEgis Technologies Group, Inc.

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SBIR/STTR Program Highlights

• The United States Government Small Business Innovation Research (SBIR) program, coordinated by the Small Business Administration (SBA), reserves 2.5% of the total extramural research budgets of all federal agencies (with research budgets > $100M) for innovative research contracts to small businesses.

• Congress also established the Small Business Technology Transfer (STTR) Program - similar in structure to SBIR and funds cooperative R&D projects with small businesses but requires partnership with not-for profit research institutions (such as universities).

• Annually, the SBIR budget represents more than $1 billion in research funds.

• 50% of the awards to firms with fewer than 25 people, 33% to firms of fewer than 10, and 20% are minority or women-owned businesses.

• Historically, 25% of the companies are first-time winners.

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Phase I, Phase II, Phase III

The SBIR/STTR Programs are structured in three phases. – Phase I (project feasibility) determines the scientific, technical and

commercial merit and feasibility of the ideas submitted.

– Phase II (project development to prototype) is the major research and development effort, funding the prototyping and demonstration of the most promising Phase I projects.

– Phase III (commercialization) is the ultimate goal of each SBIR/STTR effort and the statute requires that Phase III work be funded by sources outside the SBIR/STTR Program.

Three-Phased ProgramSBIR STTR

Phase I: Project feasibility 6 months, up to $150,000 12 months, up to $100,000Phase II: Project development to

prototype2 years, up to $1,000,000 2 years, up to $750,000

Phase III: CommercializationCommercialization of the technology in military and/or private sector markets with non-SBIR/non-STTR funds.

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SBIR/STTR Program Agencies

The following agencies offer SBIR/STTR opportunities:

•NASA •Department of Agriculture•Department of Commerce•Department of Defense•Department of Education•Department of Energy•Department of Homeland Security•Department of Health and Human Services•Department of Transportation•Environmental Protection Agency•National Science Foundation•National Institutes of Health

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SBIR/STTR Award Statistics

• Historically, about 15% of SBIR and STTR proposals are awarded a Phase I contract; approximately 50% of Phase I projects subsequently are awarded a Phase II contract.

• AEgis has received 34 Phase I Awards since 1992.

• AEgis has received 18 Phase II Awards, 7 in the last 2 years.

• As a start up company, the SBIR/STTR program was critical to AEgis developing our initial corporate capabilities and customer base. Today, it is just as critical as we diversify our capabilities into new areas and leverage those into new markets especially in light of flat or declining DoD budgets.

• AEgis’ award rate - higher than the program average.

Phase Industry Average %

AEgis’ %

Nanogenesis Division’s %

AEgis’ SBIR/STTR Revenue

I 15% 26% 34% ~$3.3M

II 50% 58% 88% ~$13M

III ?? ~20% ~60% ~$5M

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AEgis SBIR/STTR Process

• AEgis maintains a formal SBIR/STTR Process from the day topics are released leading to the day of proposal submission.

• The goal is to assist all departments to write the most effective SBIR/STTR proposals.

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AEgis SBIR/STTR Process

Key #1Start early and have disciplined process

Key #2Don’t bid without TPOC

communication and reasonable level of interest

Key #3Treat SBIR/STTR bids

with same rigor as other important proposals

Key #4Be disciplined about AAR lessons learned

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AEgis SBIR/STTR Process

Key #5Be just as disciplined about AAR for winning bids as losing bids

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Commercialization

The government expects a company to be able to turn the R&D from a Phase II contract into a commercially viable product. A small business's ability to successfully “commercialize” and sell its products to the private sector (or the military as a “product”) will determine how favorably its Phase II proposals are evaluated in the future.

Commercialization Achievement Index: 

•This Index is a measure of how effectively commercialization resulting from the proposer's prior phase II SBIR/STTR awards (from 2009 and before) compares with the commercialization resulting from groups of DoD SBIR/STTR projects selected at random from comparable time periods (Commercialization includes both military and private sector markets). The index score is a percentile ranking which ranges from 100 (highest) to 0 (lowest). Its statistical meaning is described in detail at:

http://www.DoDSBIR.net/Submission/CompanyCommercialization/Instructions/DefCAI.asp

•An Index score is only calculated for proposers that have received at least 4 phase II awards in years up to and including 2009.

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• AEgis is committed to developing products with a formal commercialization pipeline having two exit strategies:

(1) working with OEMs or transition partners to realize insertion into commercial markets, and

(2) direct insertion into DoD programs and facilities.

• AEgis leverages the SBIR program and additional IR&D funding to develop products and transition them to the market place. IP protection is critical.

• AEgis is building a dedicated team solely to commercialization and deployment of various technologies most of which are coming out of the SBIR program.

Current AEgisCommercialization Efforts

Agency Timeframe Technology Applications Technology Readiness Level

MDA 2009 Beam Steering Interceptor seekers, telecom, laser guidance, sense and avoid

TRL6

Air Force 2010 Transparent Coatings

Laser eye/sensor/EMI/solar cell protection, transparent RF antennas

TRL6

DARPA 2010 Photonic Band Gap Structures

Solar cell enhancement (efficiency, flexibility, incident angles)

TRL3

Air Force 2011 Directed Energy Testing

High Energy Laser off-board instrumentation, on-board external sensors/instrumentation

TRL5

DARPA 2011 Nonlinear Plasmonics

Optical Switching, Bio-detection, and Spectroscopy

TRL1

Army 2011 Tunable Metamaterials

Photonic circuits, optical computing, solar energy collection

TRL1

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Beam Steering Commercialization

- MDA -

AEgis’ Nanogenesis Division in partnership with Vescent Photonics’ patented technology has designed, built, and successfully tested solid state devices that will lead to miniature, very high-speed, high-reliability, beam steering systems for laser communication, missile interceptor seekers, and laser-assisted sense and avoid for small vehicles such as UAVs.

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Laser Eye Protection Commercialization- Air Force -

AEgis’ Nanogenesis Division has designed, built, and successfully tested Nanophotonic materials that block UV and IR sources yet still provide a high transparency window in the visible spectrum. This patented technology will provide eye protection to war fighters, police, security personnel, commercial airline pilots, and ultimately the public at large from dangerous emerging laser threats.

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Solar Cell Commercialization- DARPA -

DARPA SBIR Phase I and Phase II Contracts for Photonic Band Gap Structures for Solar Energy Generation.

Nanogenesis, A Division of AEgis Technologies, is developing thin, flexible solar cells and nanostructured anti-reflection coatings to improve the efficiency of solar cells (>KW/hr), increase sun light collection through large angle of incidence acceptance (i.e. don’t have to face south), and apply solar arrays to flexible/portable substrates and structures (examples: roll up solar mats, imbedded into tents, etc.). Also, this work has lead directly to other projects with large primes on NASA’s “Ride the Light” program and Thermo Electric and Solar Light Applications (TESLA) initiatives.

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Directed Energy Testing Commercialization- Air Force -

Air Force SBIR Phase I and Phase II Awards for both Directed Energy Detection and Characterization

Instrumentation (DEDCI)and

Measurement of Laser Irradiance on Target for Directed Energy

Weapons (LIMT).

AEgis’ Nanogenesis Division has designed, built, and successfully tested patented MEMS sensors and Nanomaterials that can withstand direct exposure to a High Energy Laser (HEL) weapons. This technology is packaged with custom electronics to create a test instrumentation suite which allows for DE/HEL testing and characterization previously not possible under such very harsh conditions.

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Advanced Nanophotonic Concepts– DARPA / Army -

• Nonlinear Plasmonics – DARPAOur team is designing and fabricating arrays of sub-wavelength Surface Plasmon (SP) structures in metal films and combining these structures with EO polymers to understand the interaction with the enhanced electric fields of the plasmons. This bleeding edge technology has to potetnial to substantially advance the state-of-the art for optical switching, biodetection, and spectroscopy.

• Dynamically Tunable Metamaterials, ArmyCombining nonlinear optical materials with plasmonic structures to create new devices that can be used in photonic circuits, optical computing and solar energy collection.

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Department POC Phone Email

Department of Agriculture (USDA) Dr. Charles F. Cleland 202-401-6852 ccleland@csrees.usda.gov

Department of Commerce (NOAA) Ms. Kelly K. Wright (301) 713-3565 x292 kelly.wright@noaa.gov

Department of Commerce (NIST) Ms. Mary Claque (301) 975-4188 mclague@nist.gov

Department of Defense (DoD) - Air Force Mr. Gus Vu (800) 222-0336 Augustine.vu@wpafb.af.mil

Department of Defense (DoD) - Army Mr. John Smith (703) 806-2085 aro-sbir@hgamc.army.mil

Department of Defense (DoD) - SOCOM Mr. Shawn Patterson (813) 826-1176 spatterson@socom.mil

Department of Defense (DoD) – Navy Mr. John Williams (703) 696-0342 williajr@onr.navy.mil

Department of Defense (DoD) – DARPA Ms. Susan Nichols (703) 526-4162 snichols@darpa.mil

Department of Defense (DoD) – DTRA Mr. Robert Swahn (703) 767-2915 dtrasbir@dtra.mil

Department of Defense (DoD) - MDA Dr. Doug Deason (256) 955-2020 doug.deason@mda.mil

Department of Defense (DoD) - NGA Mr. Stephen Sturtz (703)-735-2752 sbir@nga.mil

Department of Defense (DoD) - OSD Mrs. Theresa Puretz (703) 693-0458 puretzm@acq.osd.mil

Department of Energy (DOE) Mr. Carl Hebron (301) 903-1414 carl.hebron@science.doe.gov

Department of Education Mr. Edward Metz (202) 208-1983 edward.metz@ed.gov

Department of Homeland Security (DHS) Ms. Elissa I. Sobolewski (202) 254-6768 elissa.sobolewski@dhs.gov

Department of Transportation (DOT) Ms. Leisa Moniz (617) 494-2051 leisa.moniz@dot.gov

Environmental Protection Agency (EPA) Dr. James Gallup (202) 343-9703 gallup.james@epa.gov

National Institutes of Health (NIH) Ms. Debbie Ridgely (202) 690-7300 debbie.ridgely@hhs.gov

National Science Foundation (NSF) Ms. Cheryl Albus (703) 292-7051 calbus@nsf.gov

National Aeronautics and Space Administration (NASA)

Dr. Gary C. Jahns (650)-604-6595 Gary.C.Jahns@nasa.gov

SBIR/STTR Program Managers

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• SBIR Gateway SBIR/STTR Phase I Solicitation Finder www.zyn.com/sbir/scomp.htm

• Federal Business Opportunities www.FedBizOpps.gov

• SBIR Newsletter Announcements on SBIR workshops and upcoming solicitations barbara.j.stoller@lmco.com

SBIR/STTR Resources

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• The SBIR/STTR program can be a tremendous technology advancement tool for the government and your small business.

• Substantial information, infrastructure, and many helpful people exist to support your technology pursuits.

• Requires a disciplined, systematic approach to be successful.• A small business must take some risk and “be all in” to achieve

commercialization success.

• Questions?

POC data: Steve Hill, President and CEOAEgis Technologies, 256-922-0802, shill@aegistg.comCamille Gardner, Director, Corporate Business & Proposal DevelopmentAEgis Technologies, 256-922-0802, cgardner@aegistg.comGeorgina Chapman, SBIR/STTR Program CoordinatorAEgis Technologies, 256-922-0802, gchapman@aegistg.com

Summary