D E L I V E R I N G S M A L L B U S I N E S S I N N O V A T I O N T O T H E F L E E T

Department of Navy (DON)SBIR and STTR Program

SBIR/STTR At A GlanceMarch 4, 2014

Jack GriffinDeputy S&T Director

PEO Littoral Combat ShipsDistribution Statement A. Approved for public release; distribution is unlimited

D E L I V E R I N G S M A L L B U S I N E S S I N N O V A T I O N T O T H E F L E E T

DON SBIR/STTR Main Goals

• Use small business to develop innovative R&D that addresses a Navy or Marine Corps need – including energy efficiency improvements and cyber security improvements, as the DON mission evolves.

• Commercialize (Phase III) that technology into a DON platform or weapons/communication system, or for facilities use in expeditionary bases in new “pivot” locales in Africa and Asia.

2

D E L I V E R I N G S M A L L B U S I N E S S I N N O V A T I O N T O T H E F L E E T

NAVAIR24m $.75-$1M

BaseII.5 up to $1.5M Options require matching funds

NAVSEA24m $600K Base

6m, $150K OptionII.5 up to $1.5M

SPAWAR18m $600K Base

6m, $150K OptionII.5 up to $1.5M

MARCOR24m $600K Base

6m, $150K OptionII.5 up to $1.5M

ONR18m, $500K Base

9m $250K Option 118 $750K Option 2(50/50 cost match)

Typical DON SBIR/STTR Phase I and Phase II Funding Landscape

Each SYSCOM has own Phase II guidance (typical amounts shown)

Phase I6m $80K base

6m $70K option

Phase II/II.5Base & Option

vary by SYSCOM

Phase IIINon-SBIR Funding

(Government or Private)

Production/Further R&D

Idea Generation

Prototype Development/Demonstration

Demonstration / Commercialization

3

D E L I V E R I N G S M A L L B U S I N E S S I N N O V A T I O N T O T H E F L E E T

• SBIR/STTR projects derive from SYSCOM-generated Topics announced in quarterly solicitations.

• Over 80% of Navy Topics are selected by PEO/PM/FNC offices and address their specific needs, not just “sponsored by”.

• PEOs get back 90% of their SBIR/STTR “tax” , as Topics. They make Phase I and II selections and have Phase III funding.

• Many contracts monitored by lab employees with Acquisition Office POC involved.

Acquisition Driven Process, withStrong Technology Pull

D E L I V E R I N G S M A L L B U S I N E S S I N N O V A T I O N T O T H E F L E E T

DON SBIR/STTR Supports a Wide Variety of Technology Needs

SSN-774 Virginia-class Submarine

5

D E L I V E R I N G S M A L L B U S I N E S S I N N O V A T I O N T O T H E F L E E T

Generic SBIR/STTR Award StructureDON SYSCOMS tailor this model as needed

Feasibility Study Technology Developmentand Prototype Demonstration

Prototype Testing & EvaluationTechnology Demo & Validation

Phase IPhase I

BasePhase I Option

• 6 Months (SBIR)

• 7 Months (STTR)

• $80K

• 6 Months• $70K

FFP Contract

NTE $150K

Phase II

Phase II Base

Phase II Option 1

Phase IIOption 2

• 18 Months

• ≤ $500K

• 9 Months• ≤ $250K• TTP required • SBIR PM/PO

review for Option 2 at exit

• ~12-18 Months• ≤750K total• 1:1 cost match• ≤ $375K SBIR• ≤ $375K match

• Signed TTA required

• TRL 4 at exit

CPFF Contract

NTE $1.125M SBIR/STTR Funding

Subsequent Phase II

Contingent upon having a successful project with a

committed Transition Sponsor/Path

• Up to 24 months• 1:1 cost match• Signed TTA required• Minimum TRL 4 at entry

CPFF Contract

NTE $1.5M SBIR/STTR Funding

NTE $2.775M Total SBIR /STTR Funding

NOTE: A ‘Subsequent Phase II’ is a Requirements Driven process; i.e., based upon Acquisition program needs.

TTP: Technology Transition PlanTTA: Technology Transition Agreement

Updated June 6, 2013

Phase III

Transition to Acquisition Program

• Non-SBIR/STTR $ (Private sector or Non-SBIR Gov. $)

• Unlimited POP• SBC Extension of Data

Rights and Sole Source Designation

Contract Type VariesPhase III contracts may be awarded without competition after Phase I/II

No limit on funding (Just Non-SBIR/STTR)

Phase III – can occur anytime after Phase I and is funded with non-SBIR/STTR$

CommercializationTransition

TRL: 0 - 3 2 - 5 4 - 7 6 - 9

D E L I V E R I N G S M A L L B U S I N E S S I N N O V A T I O N T O T H E F L E E T

What’s New With SBIR/STTR?

• SBIR/STTR Reauthorization statute focuses on increased commercialization:– DoD services and components must set transition and insertion goals– All Federal agencies may offer increased transition assistance to awardees– Awardees must transition SBIR/STTR projects

• Phase II Transition Rate Benchmark – Applies to firms receiving >20 Phase Is over 5 years: 25% benchmark for winning Phase Iis.

• Commercialization Rate Benchmark– Applies to firms receiving >15 Phase IIs over 5 years: 25% benchmark for winning Phase IIIs.– Period of calculation excludes most recently completed fiscal year.

• Penalty– Awardees failing either benchmark are ineligible for a new Phase I or II award for one year from the time of

determination (June 1). SBA notifies Agencies and ineligible firms, Agencies report denied applications.

7

D E L I V E R I N G S M A L L B U S I N E S S I N N O V A T I O N T O T H E F L E E T

What’s New With SBIR/STTR?

• Statute also focuses on opening access to SBIR/STTR– Federal agencies are required to develop and execute outreach plans to

underserved populations, with emphasis on women and minority entrepreneurs … especially in states with fewer SBIR/STTR awardees

– State-oriented FAST program is reestablished• …. while protecting against potential improprieties

– Federal agencies are expected to offer guidance to SBIR/STTR awardees on fraud, waste and abuse – and to implement methods of curbing abuse

• Statute allows all Phase I awardees to submit Phase II proposals– Agency practices are described in solicitations

• Latest amendments to SBA’s SBIR/STTR Policy Directives may be found in Federal Register of January 8, 2014 at pg. 1303

8

D E L I V E R I N G S M A L L B U S I N E S S I N N O V A T I O N T O T H E F L E E T 9

FY09 FY10 FY11 FY12 FY13Total DoN SBIR Funding per FY $328M $342M $264M $271M $231MDoN SBIR Topics issued that FY 224 233 181 160 149Number Of Phase I Proposals 3555 4098 3282 2533 2227DoN Phase I Awards from FY Solicitations 597 693 483 434 250*Avg time to award Navy Phase I contracts 4.8 mo 4.5 mo 4.5 mo 4.4 mo 4.5 mo

Navy Phase II Awards during FY 267 305 257 279 222Navy Phase III Awards during FY 126 131 146 121 **Amount of Navy Phase III Awards that FY $362M $566M $552M $725M **DoN STTR Funding Per FY $40M $41M $33M $36M $31MDoN STTR Topics Per Year 39 50 39 26 29DoN STTR Phase I Awards during FY 125 158 116 62 70DoN STTR Phase II Awards during FY 47 46 52 23 41

SBIR/STTR Program By The Numbers

* Still collecting data ** Data not available yet

D E L I V E R I N G S M A L L B U S I N E S S I N N O V A T I O N T O T H E F L E E T

SYSC

OM

PM

’sPE

O S

BIR

Tech

nolo

gyM

anag

ers

SBIR

Fi

eld

Offi

ces

John Williams, Director

Dean PutnamSBIR Program Manager

NAVSEA

Donna MooreSBIR Program Manager

NAVAIRKim Berche - Deputy

Elizabeth MaddenSBIR Program Manager

MARCOR

Lore-Anne PonirakisSBIR Program Manager

ONR

Elizabeth AltmannSBIR Program Manager

SPAWAR

Blenda GatelySBIR, Technical Liaison

PEO Carriers

Glen SturtevantSBIR, Technical Liaison

PEO Ships

Douglas MarkerSBIR, Technical Liaison

PEO IWS

Megan CramerSBIR, Technical Liaison

PEO LCS

Lauren PitreSBIR, Technical Liaison

PEO Subs

VacantAdministrating Officer

NSWC Carderock

Brooke PyneAdministrating Officer

NSWC Crane

Joe GarciaAdministrating Officer

NSWC Dahlgren

Nancy JohnsonAdministrating Officer

NSWC Indian Head

Jack GriffinAdministrating Officer

NUWC Newport

Todd ParcellSBIR, Technical Liaison

PEO (A)

Bill O’ReaganSBIR, Technical Liaison

PEO (T)

Glenn Menear SBIR, Technical Liaison

PEO (U&W)

Amanda GentrySBIR, Technical Liaison

PEO (JSF)

Janet McGovern SBIR, Technical Liaison

NAVAIR (1.0)

Dr. Mark HusniAdministrating Officer

NAVAIR Lakehurst

Dr. Michael SeltzerAdministrating OfficerNAWC- WD China Lake

Jerry RubinskyAdministrating Officer

NAWC- AD Patuxent River

VacantSBIR, Technical Liaison

PEO Space

Butch WrenAvionics & Sensors

NAWC-AD Patuxent River

Paul HalloranSBIR, Technical Liaison

PEO Land Systems

Reggie WilliamsPropulsion and Power

NAWC-AD

Dr. Thomas FranzAdministrating Officer

NAWC- TSD Orland

Kimberly BercheCPP Program Manager

NAWC- AD Patuxent River

Steve SullivanSTTR PM

Michelle WillisCRP Program Manager

Matt WilliamsPhase II.5 Lead

Lee Ann BoyerCRP Program Manager

VacantSBIR, Technical Liaison

PEO C4I

Victor GavinSBIR, Technical Liaison

PEO EIS

SBIR/STTR Is Embedded DON-Wide

10

D E L I V E R I N G S M A L L B U S I N E S S I N N O V A T I O N T O T H E F L E E T 11

The Navy Opportunity Forum is the Navy's Premiere Small Business Technology Event

• Forum is culmination of 11 month Transition Assistance Program (TAP) and in its 13th year

• Directly supports Legislation requiring DON to develop programs that help firms transition/ commercialize SBIR funded technology

• Supports USD AT&L, SECNAV and DON RDA directives and policy memos

• Wins documented praise by Congressional Armed Services and Small Business Committees

• Documented record of Success of non-SBIR funding from DON PoR’s

• The most cost effective method for generating “transition” which requires face to face briefings and discussions

D E L I V E R I N G S M A L L B U S I N E S S I N N O V A T I O N T O T H E F L E E T

SBIR/STTR Homepage: www.navysbir.com

Learn about:• SBIR/STTR phases

(funding, timelines, requirements, etc.)• Solicitation schedules• Links to SYSCOM sites• Program POCs• Submitting proposals• Getting started, getting

paid

12

D E L I V E R I N G S M A L L B U S I N E S S I N N O V A T I O N T O T H E F L E E T 13

www.navysbirsearch.com

Free!

D E L I V E R I N G S M A L L B U S I N E S S I N N O V A T I O N T O T H E F L E E T

Why SBIR/STTR?

• Government’s incentives– Test drive small business capability– Proactive risk reduction– Early/high-risk S&T with SBIR/STTR funding– Competing approaches open up additional technology alternatives– Non-competitive follow-on awards– High level of matching funds

• Small Business’ incentives– Largest source of early stage R&D funds for small firms– Company retains data rights for 5 years (DoD)– Builds credibility of company’s research – Follow-on awards are non-competitive

14

D E L I V E R I N G S M A L L B U S I N E S S I N N O V A T I O N T O T H E F L E E T

Tips for Succeeding with Navy SBIR/STTR

Just getting started?– Research topics consistent with your business strategy– Current and past solicitations identify Navy technology needs– Know Navy structure– Submit proposals for problems you can solve– Prepare to be innovative

Already have a Phase I?– Know your target platform/system for insertion– Build strategic partnerships (Primes, Universities, Acquisition

Program Managers-Tech Directors-Requirements Officers)– Plan commercialization path early with TPOC

15

D E L I V E R I N G S M A L L B U S I N E S S I N N O V A T I O N T O T H E F L E E T 16

Questions?