National Security Technology Accelerator Technology at the Speed of Mission

Current Threat Environment Demands Looking Outside Traditional Defense Technology Channels Technology investment, innovation and commercialization is more distributed and increasingly occurring outside of the Government. Irregular adversaries often have easier access to emerging commercial technologies with the ability to operationalize them than we do. Continued technology superiority in the battle requires exploiting commercial technologies and investments coming from both the traditional defense base and non-traditional providers.

Hurdles to Efficient Public/Private Sector Engagement Misaligned incentives between government and private sector Market vs Mission Difficulty accessing the broad innovation ecosystem Distributed innovation (from labs to garages) Global marketplace Disjointed programs and funding Differing sources for R&D, innovation and commercialization Valleys vs Cliffs Different approaches to and tolerance for risk Private sector can afford risk in innovation Public sector can bear risk in R&D

Barriers for Government The expanding innovation base increases difficulty in technology discovery Lack of an honest broker to distinguish between good and bad technology Difficulty getting solutions on contract in a timely manner Non-traditional entities do not know how to perform effectively on government contracts Barriers for Private Sector Confusing, complicated and costly process with which to engage Poor understanding of landscape and who to engage Inability to determine if opportunity is or ever was ‘real’ Difficulty getting solutions on contract in a timely manner

Addressing Emerging Threats Through Innovation Technology Maturity Existing Ideation Emerging Known Threats Addressing Emerging Threats Through Innovation

NSTXL Overview The National Security Technology Accelerator (NSTXL) is a 501(c)6 Non-Profit membership consortium. Membership spans the entire innovation ecosystem including: companies (from pre-revenue start-up to Fortune 500), public and private laboratories, universities, technology incubators, and investors. NSTXL creates innovative public/private partnerships to match technology solutions to capability gaps. NSTXL Core Functions include: Prospect, vet and develop innovative technologies to match with specific DoD technical requirements. Mentor companies, laboratories, & universities for more successful DoD interactions. Facilitate dual-use opportunities for interaction and deal-flow among universities, companies (large and small), laboratories and the military.

Private Sector Capabilities & Technologies The NSTXL platform bridges the public and private sectors to accelerate the discovery, development and deployment of innovative technology solutions for operational missions and installations of the U.S. Military at home and abroad. Private Sector Capabilities & Technologies Create Bridge Between DoD and Private Sector Define Technology Needs Enable Rapid Technology Discovery Execute Rapid Contracting and Prototyping Through Other Transaction Authority (OTA)

NSTXL Process Overview DOD NSTXL Process Overview Marines Army Step 1: NSTXL identifies and helps to define technology needs from across the Department of Defense. We then disseminate those requirements to our broad membership and network of innovators from small technology start- ups to universities and laboratories. Air Force Navy Step 2: NSTXL prospects cutting edge solutions from the private sector innovation community, vets the technologies and delivers qualifying solutions to the requirements back to the Government. Academia Incubators Step 3: NSTXL utilizes its unique contracting authority to efficiently move money from the Government to the innovator to prototype the solution for military use, helping to oversee the life- cycle of the project. Laboratories Tech Companies Investors

Define Source Develop Transition The NSTXL platform provides support at each phase of the innovation lifecycle and the flexibility to engage selectively depending upon customer needs. Define Source Develop Transition Engage to define technology needs employing Design Thinking methodologies Assist in drafting of Request for White Papers to translate needs to private- sector friendly descriptions Check for relevance of technologies to capability needs Provide access to Global Innovation Ecosystem database of over 400,000 innovation contacts Rapidly identify potential technology solutions (2-4 weeks) Utilize challenge platform and programs to vet technologies Provide rapid contracting vehicle (OTA) to enable prototype development and testing Provide program support for prototype development Provide access to other SME’s as appropriate Provide integration and transition support to move prototype into program of record Create smoother transition to successful prototype to follow-on production contract

NSTXL partners with TechConnect to provide rapid private-sector innovation prospecting aligned with DOD technology gaps.

Recent Industry Prospecting Clients: Over 50% of Fortune 500 Tech Companies have used TechConnect Innovation Prospecting Services in last four years. TechConnect annually facilitate over 2000 One-on-One meetings between Corporate, Investment, and Agency Prospectors with vetted Innovators.

TechConnect Innovation Development Partners US/Canada Academic: 1141 - Research Universities 300  - Federal Labs 3338 - Academic Institutes/Departments/Centers  309 - Tech Transfer & Commercialization Offices 579 - Incubators (Academic & Private) Non US/Canada Academic: 3625 - Research Universities/Institutes/Departments/Centers  523 Tech Transfer & Commercialization Offices (Global)

TechConnect Agency Innovation Development Partners

Upcoming TechConnect Innovation Prospecting Events Co-located with

Challenge Platform Top submitted technologies across designated technology need areas are invited to pitch in a shark tank style sessions Challenge session topics include: Energy and Resilience Cyber Security Space Technologies Medical and Biotech Electronics and Systems 2016 Challenge Stats: Total Attendees: 9,647 (1,540 gov’t) Technologies Submitted: 1,893 Technologies Showcased: 917 Technologies Pitched: 360

NSTXL Other Transaction Authority (OTA) NSTXL currently manages an OTA contract vehicle under the Defense Technical Information Center (DTIC) to accelerate the R&D cycle of prototypes for research and development efforts. Rapid acquisition instrument for prototype projects providing flexibility from traditional FAR requirements to ease access to innovative technologies Current authority up to $100M total value over 3 years OTA Scope: Innovative technologies, processes, methods, facilities, and capabilities to identify, develop, test, provide access to and improve operational and installation energy-related systems and components

Benefits of OTA include: Flexibility under FAR to ease access to innovative technologies Encourages increased participation from non-traditional defense contractors Competition only to maximum extent practicable (CICA not applicable) Cost flexibility No mandatory cost accounting standards/reporting No certified cost and pricing data Government program managers retain full project control

Additional Benefits of DTIC/NSTXL OTA: Ability to get on contract in less than 100 days Ability to accept any color of money Ability to accept multiple MIPRs for a single project Projects can be incrementally funded Contracts can be multi-year (up to 5 years) NSTXL management fee is flexible and set on a per contract basis IP and data rights negotiable on a per contract basis NSTXL provides backend support for non-traditional contractors

OTA vs FAR You Might Be Here

Template DTIC/NSTXL OTA Process & Timeline 1.0 Technology Discovery 2.0 Funding 3.0 Project Proposal 4.0 Award & Execution Government Program Office   DTIC ACC-NJ NSTXL Innovation Ecosystem Government 1.1 Call for White Papers 1.2 Assign Record Number 1.8 Evaluate & Select Technology 1.3 Prepare & Issue RWP 1.4 Distribute RWP 1.5 Prepare White Paper Response 1.6 Submit White Paper to Gov’t 1.7 Accept White Paper 2.1 Obligate Funding for Project 2.2 Process Funding 2.3 Receive Funding; Held Until Step 4.6 3.1 Develop Statement of Work 3.2 Record & Track 3.3 Prepare and Issue RFIP 3.4 Review RFIP 3.5 Prepare and Finalize Initiative Proposal 3.6 Submit & Facilitate Proposal 3.7 Evaluate Proposal 3.8 Evaluate Proposal & Finalize Contract 4.1 Initiative Agreement with NSTXL 4.2 Initiative Agreement with Member 4.3 Execute Work per Initiative Agreement 4.4 Invoice to NSTXL 4.5 Invoice to Government 4.6 Distribute Funding Private Sector 4-6 Weeks 1 Week 3-6 Weeks

NSTXL represents a new approach to OTAs Only OTA consortium to exist as a non-profit consortium first One of the few, if not the only, consortium that is run entirely out of the non-profit Background of team more heavily favors innovation and commercialization, as opposed to contracting Utilize broad technology discovery process First OTA to utilize a robust technology challenge platform Designed to be ‘everyone’s’ OTA

9 12 $95M FY17 by the Numbers New Prototype Contracts Total Project Value 12 Program Offices Supported