Army SBIR/STTR Programs January, 2016 Office of the Secretary of The Army Office of Small Business Programs

is Small business big business Army! in the Department of the 2

Agenda Mission/Vision What the Army Buys Army SB Achievement SBIR Achievements STTR Achievements SBIR Program Overview STTR Program Overview Topics Tips for a Successful Proposal Helpful Websites/Resources Upcoming Outreach Events Q&A

Mission and Vision 4 Mission Advise the Secretary of the Army and the Army leadership on small business related matters. Spearhead innovative initiatives that contribute to expanding the small business industrial base relevant to the Army mission priorities. Leverage the use of minority serving educational institutions in support of Army Science and Technology Programs. Vision To be the premier advocacy organization committed to maximizing small business utilization in support of rapidly fielding a trained, ready, responsive and capable force that can prevent conflict, shape the environment and win the Nation's wars.

Former Secretary of the Army on Small Business 5 “A critical component of our industrial base is formed by our small business partners, whose contributions drive innovation in the production of goods and services the Army uses. The Army has a strong record of small business partnership that consistently exceeds goals within the Department of Defense.” Former U.S. Secretary of the Army John McHugh letter to former Small Business Administrator Karen Mills

Contact 6 Army Office of Small Business Programs Army Materiel Command (AMC) - Redstone Arsenal, AL Buys: Combat systems, Information systems Small Business AD: Ms. Nancy Small, Website: Army Corps of Engineers (USACE) - Washington, DC Buys: Military/civil works construction projects, Environmental projects Small Business AD: Ms. Grace Fontana, Website: Army Medical Command (MEDCOM) - Ft. Sam Houston, TX Buys: Medical supplies and health care equipment, Professional services Small Business AD: Mr. Pete Hunter, Website: National Guard Bureau (NGB) - Arlington, VA Buys: Base operations, Construction/environmental projects Small Business AD: Dr. Donna Peebles, Websites: Army Intelligence & Security Command (INSCOM) - Ft. Belvoir, VA Buys: Intelligence security information systems Small Business AD: Ms. Harriett L. Burton, Website:

Army Small Business Performance FY13 – FY16 7 Data Source: FPDS-NG Small Business Achievements by Awarding Organization Report, 2015NOV23

Army Small Business Performance FY14 vs. FY15 8 Program FY14FY15 FY15 DoD- Assigned Army Goal Total Small Business Eligible Dollars* $60.63B*$55.48B* Small Business $19.27B$17.52B 26.50% 31.79%31.61% Small Disadvantaged Business $9.34B$8.62B 11.00% 15.40%15.52% Women Owned Small Business $3.46B$3.25B 4.80% 5.71%5.86% Certified HUBZone Small Business $2.11B$1.84B 3.00% 3.47%3.32% Veteran Owned Small Business $3.44B$3.49B 5.67%6.29% Service-Disabled Veteran-Owned Small Business $2.49B$2.64B 3.50% 4.11%4.75% Data Source: FPDS-NG Small Business Achievements by Awarding Organization Report, 2015OCT26

Top 5 Small Business NAICS Codes by Command (FY15) 9 U.S. Army Materiel Command SB Spend: $9.05B U.S. Army Corps of Engineers SB Spend: $5.81B Army National Guard Bureau SB Spend: $1.23B U.S. Army Medical Command SB Spend: $1.04B U.S. Army Intelligence & Security Command SB Spend: $177M Research and Dev. in the Physical, Eng., & Life Sciences (Except Biotechnology) $1.24B Commercial and Institutional Building Construction $2.59B Commercial and Institutional Building Construction $501M General Medical and Surgical Hospitals $133M Translation and Interpretation Services $38.1M Engineering Services $886M Other Heavy and Civil Engineering Construction $1.41B Administrative Mgmt & General Mgmt Consulting $78.1M Offices Of Physicians (Except Mental Health Specialists) $110M Other Scientific and Technical Consulting Services $24.7M Facilities Support Services $657M Remediation Services $652M Advertising Agencies $53.4M Offices Of All Other Miscellaneous Health Practitioners $73.6M Other Computer Related Services $13.4M Commercial and Institutional Building Construction $482M Engineering Services $212M Other Computer Related Services $39.8M Janitorial Services $71.3M Computer Facilities Management Services $10.8M Other Aircraft Parts and Auxiliary Equipment Mfg. $382M Facilities Support Services $181M Other Individual and Family Services $35.0M Surgical Appliance and Supplies Manufacturing $53.4M Office Administrative Services $9.04M Data Source: FPDS-NG Small Business Achievements by Awarding Organization Report, 2015NOV23

FY15 Army Small Business Spending by State Total: $17.52B CT-$150M RI-$27M MA-$199M VT $19M NH-$39M AK $933M AK $933M HI-$234M MD-$1.27B DE-$30M NJ-$612M DC-$116M 10 Data Source: FPDS-NG Small Business Achievements by Awarding Organization Report Adhoc with Vendor State, 2015OCT28 $ 0-50 Million $ Million $ Million $ Million $ Billion $ 1 Billion +

Army’s Percentage of DoD SBIR & STTR Spend Army SBIR awards as a % of DoDArmy STTR awards as a % of DoD Data Source: FPDS,

FY15 SBIR/STTR $$s by Phase ProgramDoDArmyOther DoD SBIR I ACTION $ 178,603,707 $ 64,352,817 $ 114,250,890 SBIR II ACTION $ 708,742,756 $ 165,416,205 $ 543,326,550 SBIR III ACTION $ 779,969,725 $ 88,361,978 $ 691,607,747 Total SBIR $ 1,667,316,188 $ 318,131,001 $ 1,349,185,187 STTR PHASE I $ 35,031,329 $ 8,940,516 $ 26,090,813 STTR PHASE II $ 89,382,978 $ 25,238,455 $ 64,144,523 STTR PHASE III $ 34,983,928 $ 19,679,264 $ 15,304,664 Total STTR $ 159,398,235 $ 53,858,234 $ 105,540,001 Data Source: FPDS,

SBIR FY15 Achievements by Socioeconomic Category Data Source: FPDS,

STTR FY15 Achievements by Socioeconomic Category CaregoryTSBE$SB$SB%SDB$SDB% STTR PHASE I $ 8,940, % $ 599, % STTR PHASE II $ 25,238, % $ 2,739, % STTR PHASE III $ 19,679,264 $ 10,402, % $ 4,655, % Total STTR $ 53,858,234 $ 44,581, % $ 7,994, % Caregory STTR PHASE I STTR PHASE II STTR PHASE III Total STTR SDVOSB$SDVOSB%WOSB$WOSB%HUBZone$HUBZone% $ -0.00% $ 1,049, % $ -0.00% $ 474, % $ 3,998, % $ -0.00% $ (127,467)-0.65% $ 2,607, % $ 3,925, % $ 347, % $ 7,655, % $ 3,925, % Data Source: FPDS,

SBIR Program Overview What is SBIR?

SBIR Program Overview SBIR Program Goals To stimulate technological innovation To meet federal research and development (R&D) needs To foster and encourage participation in innovations and entrepreneurship by socially and economically disadvantaged persons To increase private-sector of innovations derived from federal R&D funding

SBIR Program Overview

Phase I A feasibility study that determines the scientific, technical, and commercial merit and feasibility of a selected concept. Phase I projects are competitively selected from proposals submitted against solicitation topics seeking specific solutions to Army needs. Also called “proof of concept.” 4 volumes: Proposal Cover Sheet, Technical (max 20 pages), Cost, and Company Commercialization Report 6 month effort Up to $100k; with an option for $50k for an additional 6 months Historically, Army receives about 2,000-3,000 proposals and awards about 200 of those each year (10-13% award rate) Technical Readiness Level (TRL) is low -> around 1-4

SBIR Program Overview Phase II Objective: to continue the R&D efforts initiated in Phase I Represents a major R&D effort, culminating in a well-defined deliverable prototype 4 volumes: Proposal Cover Sheet, Technical (max 38 pages), Cost, Company Commercialization Report Prior to FY13, participants must receive an invitation to propose on Phase II; not required after FY12. All Phase I awardees can propose on Phase II. 2-year effort Up to $1M with an option for an additional $500k based on TRL Historically, Army award 50% of the Phase II proposals

SBIR Program Overview Phase III & Commercialization Objective: for entity to pursue commercialization objectives resulting from Phases I and II R&D activities or to make the technology part of the Program of Record (POR) Work that derives from, extends, or logically concludes efforts performed under SBIR Phase I and II funding agreements, but is funded by sources other than the SBIR Program. Army SBIR does not fund Phase III. Funding can come from venture capital, crowdfunding, a federal contract, or support from another business who wants to use the technology, or other sources (family & friends) Commercialization can be either a federal or industry application The Army has instituted several programs to facilitate the transition of Phase II projects to Phase III. These programs include: Technical Assistance Transition Support

SBIR Program Overview Army Participating Organizations U.S. Army Research, Development & Engineering Command U.S. Army Corps of Engineers, Engineer Research & Development Center Army Research Institute U.S. Army Test & Evaluation Command Medical Research & Materiel Command U.S. Army Space and Missile Defense Command Program Executive Offices

STTR Program Overview What is STTR? A Congressionally mandated program across the Federal Government used to stimulate technological innovation

STTR Program Overview Goals: Foster technology transfer through cooperative R&D between small business and research institutions To increase private-sector commercialization of innovations derived from federal R&D Requires each federal agency with an extramural for R&D over >$1B to set-aside 0.40% for Army STTR FY15 = $21M

STTR Program Overview Program facilitates similar to SBIR Phase I (Feasibility): $100K for 6 months with option for additional $50K for up to 6 months. Phase II (Prototype): $1M for 2 years with an option for additional $500k to increase TRL Phase III (Commercialization): not funded with STTR $$s. This is the commercial or government application of the fully developed technology. No limit to the contract amount.

Topics Advanced Materials & Manufacturing Microelectronics and Photonics Sensors and Information Processing Simulation and Modeling for Acquisition, Requirements, and Training (SMART) Engineering Sciences Advanced Propulsion Technologies Power and Directed Energy Biological, Chemical, and Nuclear Defense Life, Medical, and Behavioral Sciences Environmental and Geosciences Army Key Technology Areas

Solicitation Schedule Army Wide Announcement Includes: DoD Proposal Submission Instructions Army Specific Proposal Submission Instructions Topics SBIR 16.1 STTR 16.A Pre-Release 12/11/15 Open 1/11/16 Close 2/17/16 SBIR 16.2 STTR 16.B Pre-Release 4/11/16 Open 5/10/16 Close 6/8/16 Each year the Army issues three SBIR solicitations and three STTR solicitations.

Eligibility Organized for-profit U.S. business, located in the U.S. At least 51% U.S.- owned by individuals and independently operated 500 or fewer employees PI’s primary employment with small business during project SSBIR STTR Formal Cooperative R&D Effort Minimum 40% by small business, 30% by U.S. research institution Small business is Prime, PI can be from SB or Research Institution U.S. Research Institution Must have an Intellectual Property Agreement among the SB and Research Institute PI = Principal Investigator

Tips for a Successful Proposal Start the registration process six to eight weeks in advance Read and follow solicitation instructions Assemble an effective team (technical and business expertise) Know your customer Take advantage of the pre-release period Emphasize your innovative approach Clearly answer who, what, where, when, how, and why If there are technical barriers…address them! Don’t underestimate commercialization Precisely state assumptions. Don’t leave that to the proposal evaluator Anticipate questions, concerns, and skepticism about the proposal Ensure that the proposed solution is a reasonable, realistic and feasible path to market and growth If resubmitting, address all previous review comments

Submitting a Proposal Overview Search archives (topics and awards) Search current topics Solicitation information Contact topic authors (SITIS) Start a proposal FAQs, HelpDesk, and training videos SITIS = SBIR Interactive Technical Information System

How to Submit a Proposal Click ‘Solicitations’ on the top menu to view instructions for each component. Instructions provide proposal submission and eligibility guidelines SBIR/STTR topics for each Component

Helpful Websites & Resources Army SBIR/STTR Program website: DoD SBIR/STTR Small Business portal: DoD SBIR/STTR website: Small Business Administration (SBA) SBIR/STTR Program website: Private site with SBA Policy Directive change information:

Upcoming Outreach Events April 2016 Taking the Pentagon to the TSU, Nashville, TN May 2016 National SBIR/STTR Conference in Washington, DC 27 April 2016 SBIR/STTR Training for Army OSBP Training Facility, Arlington, VA (Crystal City) – will be offered the 4 th Wednesday of each month September 2016 Beyond Phase II Conference, venue TBD October 2016 National SBIR/STTR Conference West, Mountainview, CA December 2016 (dates TBD) DITAC in Austin, TX

Warrior Ethos I will always place the mission first. I will never accept defeat. I will never quit. I will never leave a fallen comrade. Questions? I will always place the mission first. I will never accept defeat. I will never quit. I will never leave a fallen comrade. Questions?

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