1. Army Small Business Programs
Presented to: Florida International University
@ Pentagon to the People September 26, 2017
Ms. Sharon Morrow
SB Liaison for SBIR/STTR; Mentor-Protégé PM
Office of the Secretary of The Army

2. Army! Small business big business is in the Department of the
Army leads the federal government in small business contracting. Of the $56.19 billion in federal contracts awarded to small businesses in FY2016, $16.98 billion or percent came out of Army, more than any other federal agency or military service.
That $16.98 billion made up 28.8 percent of total Army eligible dollars for contracts. This percentage has grown steadily over the last few years, up from percent in FY2008.
FY2014 marked the first time that Army surpassed all of its socioeconomic goals. Although the numbers have not yet been finalized, we are on track surpass them again in FY2017 (SB 26.3%; SDB 12.02%; SDVOSB 3.86%; WOSB 5.23%; and HUBZone 1.84% as of 9/10/17) 2

3. Mission and Vision 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.
The success of the Army Small Business Program has been a product of consistent dedication to our mission.

4. Mission Compliance Training Outreach
OSBP Priority Areas
Mission
Compliance
Training
Outreach
We are always looking for ways to improve Army small business utilization. Our foundations are: mission, compliance, outreach, and training.
Our mission was discussed earlier. Our focus on compliance means we are committed to meeting all of the Army’s statutory and regulatory obligations as they relate to small business utilization.
Outreach and training are tools that we use accomplish our mission and compliance objectives
Some examples are:
Outreach
Small Business Seminar at the AUSA Annual Meeting
Serving as speakers and meeting one-on-one with small businesses at events across the country
The Army OSBP website
Training
Ensure a professionally trained and effective small business workforce
The Taylor Building classroom 4

5. Statutory Requirements: ARMY Small Business Program Advice, Market Research, Training
ADVICE 15 U.S.C. §644(k)
Acquisition Planning 15 U.S.C. §644(k)(12)
Market Research 15 U.S.C. §644(k)(12)
Program Review
Set Aside Advice 15 U.S.C. §644(k)(10) & 15 U.S.C. §644(a)
Assist SB to Obtain Late Payments 15 U.S.C. §644(k)(6)
Document the Advice
Consolidation Advice to ASA(ALT) and Senior Procurement Execs 15 U.S.C. §644(k)(12)
MARKET RESEARCH 15 U.S.C. §644(k)(12)
FAR
SB Specialist conducts
Contracting Officer
SBA Procurement Center Rep
Helps identify capability
Guided by SBA regulation
FAR
Program Office Engagement
Learn the client’s business
Be involved in the planning stages
Qualitatively
Good Market Research is thorough
SB and CO need to know the business
Informs decisions
High quality and reliable
TRAINING 15 U.S.C. §644(k)(13)
Internal
Small Business Specialist
Program Manager
SES/GO/SL Training
External
Acquisition Training
Interagency
Small Business Administration
For Small Businesses

6. Statutory Requirements: ARMY Small Business Program Compliance, Policy, Reporting
COMPLIANCE 15 U.S.C. §644(k)(4)
Bundling 15 U.S.C. §644(k)(5)
Consolidation Determinations 15 U.S.C. §644(k)(12)
Procurement Forecast
Subcontracting Plans
FPDS-NG
Fair Share Assessment 15 U.S.C. §644(k)(4) & 15 U.S.C. §644(k)(a)
The Program
Rearview measures
Goals
SES Performance
Dashboard
Education & Outreach
POLICY 15 U.S.C. §644(k)(4)
Policy Development
ARs
FAR/ DFARS/ DoDD/AFARS
Interaction with SBA/ OSD
Partnering/Meetings
ASA(ALT), DASA(P), HQDA/OGC
Army, Navy, 4th Estate
OSD/ OSBP
OSDBU
SBA
Guides
Procurement Guides
SB Handbook
Training Guide
Unsolicited Proposals Guide
SBIR
Mentor-Protégé
Other Documents
DD 2579
REPORTING 15 U.S.C. §644(k)(16)
External Reporting
Goaling Reports
SBA Reporting
Other Reporting
GAO
OMB
OFPP
OSD
Internal Reporting
Periodic/Weekly Reports
SB Specialist Reports
High Level Reporting
Compliance
Other
Short Notice Taskers
Newsletter
Leadership Messaging

7. AGENCY/ OFFICE OPERATIONS
Statutory Requirements: ARMY Small Business Program Advocacy &Liaison, Agency/ Office Operations
ADVOCACY & LIAISON 15 U.S.C. §644(k)(4)
Outreach
Conferences
Industry Days
Website
Materials/ Information
Tie with Market Research
Understand Agency Requirements & SB Capabilities
Inreach
Pentagon Leadership
Commands
ASARC AOIPT Attendance
Procurement Planning Meetings
Dashboard
Communication
Assign SB Technical Adviser – to each SBA Procurement Center Representative Office 15 U.S.C. §644(k)(7)
Consult & Cooperate with SBA on duties – in Sections 8 and 15 of the SB Act 15 U.S.C. §644(k)(9)
Unsolicited Proposal Processing 15 U.S.C. §644(k)(14)
AGENCY/ OFFICE OPERATIONS
Supervisory Authority over Agency SB Personnel 15 U.S.C. §644(k)(7)
Budget
SB Contractor to Civilian Conversions 15 U.S.C. §644(k)(11)
Equipment & Supplies
Schedule, Intake, Tracking
People “Stuff”
Functional Community Leadership

8. FY17 Focus
Small Business(SB) participation in Major Systems Programs through Army Systems Acquisition Review Council (ASARC)
Promote greater involvement of SBs in Army contracts for services
Senior Leader Small Business performance elements
Support of HBCUs & MIs in the acquisition process
Subcontracting plan development and enforcement
SB participation in OCONUS contracts
Staffing of small business offices and development of SB personnel; implementing the new Small Business Career Field
Maximize use of set-aside authority under multiple award contracts
Educate small businesses and institutions about opportunities in the SBIR/STTR programs 8

9. OSBP Update Mission/Compliance (*as of 9/10/17)
Army FY17 socioeconomic goals
Outreach (Q4 FY 17 and Q1 FY18)
Pentagon to the People at UDC 12-13SEP17
Pentagon to the People at FIU, Miami, FL 26-27SEP17
Mid-Tier Advocacy Group SB Industry Event 21SEP17, Washington DC
Society of American Military Engineers (SAME) Conference NOV 17 in Pittsburgh, PA
National Veterans Small Business Engagement (NVSBE) 5-7 DEC 17 in St. Louis, MO
Defense Innovation Summit (DIS) 3-5OCT17 Tampa, FL
TRIAD (subcontracting) 10/11/17 Fairfax, VA
DoD National HUBZone Conference OCT 17, Chantilly, VA
Category
Goal
Current Status* SB
26.00%
26.3%
SDB
11.00%
12.02%
WOSB
4.80%
5.23%
SDVOSB
3.50%
3.86%
HUBZone
3.00%
1.84%
Service Portfolio
43.52%
SAT
68.00%
Training
DoD Small Business and SBIR Training Week annually with supplements from the DoD Components and 4th Estate
Mentor Protégé Program and MP Conference annually
SBIR/STTR/RIF Training for Industry 4th Wednesday 1-3 p.m. (through October)
Concerns/Challenges
Inclusion of Overseas Spend in SB Achievement calculation
HASC PSMs inquiry of GSA Oasis contract vehicle impact on SBs
Fiscal uncertainty
Strategic Sourcing
Subcontracting plan enforcement

10. Current Army Small Business
Spending Performance
As of 31 July 2017
Program
FY17 Spend Thru 7/31/2017
FY17 Actual
FY17 Goal
% of Goal Achieved
Trend
FY16 Spend Thru 7/31/2016
Small Business
$11,048,869,057
26.25%
26.0%
100.95%
25.15%
Small Disadvantaged Business
$5,174,957,410
12.29%
11.0%
111.76%
12.22%
Women-Owned Small Business
$2,096,303,102
4.98%
4.8%
103.75%
4.84%
Certified HUBZone Small Business
$786,953,813
1.87%
3.0%
62.31%
2.14%
Service-Disabled Veteran-Owned Small Business
$1,630,044,588
3.87%
3.5%
110.63%
3.74%
Program
Current Spend Thru 7/31/2017
Goal
% of Goal Achieved
Trend
FY16 Spend Thru 7/31/2016
SAT
61.57%
68.00%
90.55%
62.32%
Portfolio
39.54%
43.52%
90.85%
37.45%

11. Army Small Business Performance FY13 – FY16
Data Source: FPDS-NG Small Business Achievements by Awarding Organization Report, 2016JAN19

12. Army Small Business Performance FY15 vs. FY16
Program 
FY15
FY15 DoD-Assigned Army Goal
FY16
FY16 DoD-Assigned Army Goal
Total Small Business Eligible Dollars*
$55.61B*
$62.76B*
Small Business
$17.56B
26.50%
$17.99B
26.00%
31.58%
28.67%
Small Disadvantaged Business
$8.62B
11.00%
$8.71B
15.50%
13.88%
Women Owned Small Business
$3.25B
4.80%
$3.33B
5.85%
5.31%
Certified HUBZone Small Business
$1.84B
3.00%
$1.56B
3.32%
2.49%
Veteran Owned Small Business
$3.49B
 --
$3.51B
6.28%
5.59%
Service-Disabled Veteran-Owned Small Business
$2.64B
3.50%
$2.81B
4.75%
4.47%
Data Source: FPDS-NG Small Business Achievements by Awarding Organization Report, 2016JAN19

13. Top 5 Small Business NAICS Codes by Command (FY16)
U.S. Army Materiel Command
SB Spend: $10.29B
U.S. Army Corps of Engineers
SB Spend: $6.37B
Army National Guard Bureau
SB Spend: $1.18B
U.S. Army Medical Command
SB Spend: $927M
U.S. Army Intelligence & Security Command
SB Spend: $114M
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
$1.66B
Commercial and Institutional Building Construction
$2.11B
$283M
$137M
Translation and Interpretation Services
$27.7M
Engineering Services
$1.30B
Other Heavy and Civil Engineering Construction
$1.02B
541611 Administrative Management and General Management Consulting Services
$70.6M
Offices Of Physicians (Except Mental Health Specialists)
$89.1M
Other Scientific and Technical Consulting Services
$18.1M
Facilities Support Services
$744M
Remediation Services
$623M
624190 Other Individual and Family Services
$56.2M
561720 Janitorial Services
$77.8M
541990 All Other Professional, Scientific, and Technical Services
$16.9M
$397M
$247M
334210 Telephone Apparatus Manufacturing
$47.6M
622110 General Medical and Surgical Hospitals
$62.7M
Computer Facilities Management Services
$9.3M
Other Aircraft Parts and Auxiliary Equipment Mfg.
$396M
$230M
561110 Office Administrative Services
$37.5M
$57.3M
541512 Computer Systems Design Services
$8.9M
Data Source: FPDS-NG Small Business Achievements by Awarding Organization Report, 2016JAN19

14. Army Small Business Spending by State
FY16
Army Small Business Spending by State
Total: $17.96B ME
$11M WA
$444M SC
$179M
PA $433M
NC $396M UT
$159M NY
$459M WY
$29M AR
$90M IL
$295M
TN $138M OR
$133M CA
$944M NV
$44M ID MT
$35M CO
$384M AZ
$252M NM
$181M
Texas
$1.19B ND
$46M SD
$20M NE KS
$205M OK
$288M MN
$66M WI
$327M IA
$54M MI
$320M MO
$255M
IN $99M KY
$346M
MS $194M AL
$2.15B GA
$783M FL
$541M OH
$164M VA
$2.46B WV LA
$362M
NH-$48M
VT $31M
MA-$209M
RI-$15M
CT-$66M
NJ-$474M
DE-$16M
MD-$1.30B
DC-$234M AK
$351M
$ 0-50 Million
$ Million
$ Million
$ Million
$ Billion
$ 1 Billion +
HI-$235M
Data Source: FPDS-NG Small Business Achievements by Awarding Organization Report Adhoc with Vendor State, as of 2016

15. Army Small Business Spending by State
FY17 as of September 11, 2017
Army Small Business Spending by State
Total 13.4 Billion
<$ 8 Million
$ Million
$ 20 – 60 Million
$ 60 – 200 Million
$ 200 – 600 Million
> $ 600
Data source: FPDS-NG as of Sep 11, 2017

16. DC Small Business Spending
**As of Sept 2017

17. Opportunities for HBCU/MIs
Small Business Innovation Research (SBIR)/Small Business Technology Transfer (STTR) contracts
The Army Mentor-Protégé Program
Army Material Command (AMC) Historically Black Colleges, Universities and Minority Institutions Program
Full and Open solicitations in the HBCU’s core competencies
1.SBIR/STTR Programs
-Congress established the Small Business Innovation Research (SBIR) program in 1982 to fund research and development (R&D) by U.S. owned and operated businesses of less than 500 employees. The SBIR Program is the nation's largest source of early-stage technology financing.
-Congress established the Small Business Technology Transfer (STTR) program in Similar in structure to SBIR, STTR provides up to $850,000 in early-stage R&D funding directly to small companies working cooperatively with researchers at universities and other research institutions. The programs have 3 Phases: 1) Phase I = Feasibility or Proof of Concept Phase for $ k; 2) Phase = development of a working prototype for $1-1.5M; 3) Phase III (not funded with SBIR/STTR funds) = Commercialization
2.The purpose of the Mentor-Protégé Program is to provide incentives for DoD contractors to assist protégé firms in enhancing their capabilities and to increase participation of such firms in Government and commercial contracts. The Army Mentor-Protégé Program seeks mentors that have an active involvement of HBCUs/MIs with a minimum subcontracting goal of 5%. Additional consideration will be given to proposals that demonstrate the mentor significantly exceeding the HBCU/MI 5% subcontracting goal.
3. Army Material Command (AMC) Historically Black Colleges, Universities and Minority Institutions Program has a new direction and new support. This culturally diverse program seeks to inform and inspire the Army acquisition or requirements community to always consider the capabilities of HBCUs/MIs in all higher education acquisitions. The program also assists HBCUs/MIs to develop their faculties and students’ business, engineering and science talents.

18. What is Small Business Innovation Research (SBIR)?
SBIR Program Overview
What is Small Business Innovation Research (SBIR)?

19. 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

20. 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 4 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

21. 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.
Up to a 2-year effort
Up to $1M with an option for an additional $500k based on TRL
Historically, Army awards 50% of the Phase II proposals

22. 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

23. SBIR 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
PI = Principal Investigator

24. What is Small Business Technology Transfer (STTR)?
STTR Program Overview
What is Small Business Technology Transfer (STTR)?
A Congressionally mandated program across the Federal Government used to stimulate technological innovation
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 budget for R&D over
>$1B to set-aside 0.40% for Army STTR; FY16 = $28.9M. For 2017, the amount was increased to .45%.

25. STTR Program Overview Phase I-Feasibility Study
Award Guideline: up to $150K
Duration: up to 12 Months
Phase II-Full Research and Development to Prototype
Award Guideline: $1M with option for additional $500k to increase TRL
Duration: up to 24 Months
Phase III-Commercialization
Derives from, extends, or completes prior STTR funding agreements
Army STTR does not fund Phase III

26. STTR Eligibility 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

27. Figures are in millions
DoD SBIR/STTR Budget
DoD SBIR/STTR Budget
SBIR was 3.0% of RDT&E in FY16
STTR was .40% of RDT&E in FY16
STTR was increased to .45% in FY17
DoD is >50% of Federal SBIR Budget
DoD Budget FY15
SBIR: $940M STTR: $130M
($M)
SBIR
STTR
Army
$150
$21
Navy
$254
$35 AF
$284
$39
DARPA
$75
$10
OSD
$50 $7
DTRA
$8.4
1.2
SOCOM
$12.6
$1.75
CBD
$13
$1.8
DLA/DMEA $5
$.7
NGA
$0.5
DHP
$50 $7
Department of Defense (DoD) has awarded over $31 billion in SBIR/STTR contracts since the beginning of the programs.
Army has budgeted $150 million FY16 for SBIR contracts and $21 million for STTR contracts FY16.
As you can see, the Army has a significant budget dedicated to these contracts. These are dollars that you as institutions have access to and gives you monies in addition to grants.
MDA
$79
$11
Figures are in millions

28. Army Key Technology Areas
Topics
Army Key Technology Areas
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
Advanced Materials & Manufacturing
-Intelligent visual inspection of manufacturing components
-Developments in cooperative robotics
Microelectronics and Photonics
-Laser capture microdissection studies
Sensors and Information Processing
-Automated target recognition for the sensors directorate
-Distributed wireless sensor networks
Simulations and Modeling for Acquisition, Requirements, and Training (SMART)
-Modeling and simulation of dynamic systems
Engineering Sciences
-Human robot interfaces
-Wireless network security
Advanced Propulsion Technologies
-Jet propulsion technologies
Power and Directed Energy
-Research to create sustainable energy through agriculture
-Hybrid energy systems
Biological, Chemical, and Nuclear Defense
-Biological control of fire ants
-Agricultural bio-security
Life, Medical, and Behavioral Sciences
-Reducing cancer disparities among minorities in the Middle Tennessee region
-Possible implications of Alzheimer’s disease
Environmental and Geoscience
-Methods for recycling solid wastes
-Environmental biology
-Maximizing turbine engine performance

29. Why Small Businesses Participate
1. Largest source of Federal R&D funds for small businesses
5. Follow-on Phase III awards can be sole sourced
2. SBIR invests more than VC community in pre-seed and early stage technology
6. Company may maintain ownership of equipment purchased under Phase I and II
7. Builds credibility of company’s research while learning government contracting processes to become a supplier
3. No dilution of equity
4. Company retains data rights for 4 years (5 years in DoD)
8. State economic development programs, angels, and VC use SBIR as a pre-qualifier for their investment

30. How DoD Benefits from SBIR/STTR
Safe way to try out high-risk R&D
Small businesses are often more cost effective and innovative than large primes (i.e., agile, niche)
Test drive new companies while they establish a track record
Allows Acquisition programs to establish 2nd source/method to augment ongoing programs (risk management)

31. Developmental Assistance HBCU’s Provide on MPP
Management Technical Assistance
CyberSecurity and Secure Systems Product Development
Process Re-Engineering
Quality Management Certifications: ISO 9001:2008 and 2015, ISO 27000, ISO and ITIL
CMMI Level 2 and 3 certifications
Legacy System Support and Modernization
Business Development
DCAA Compliance Training
Business/Marketing/Strategic Guidance Development
PMP Training
Contract Management Support
Proposal & Capture Management Training
Development of Mobile Applications for Army priorities
Interns to work on special projects and to develop software applications
Other protégé firm employee training (HR, Leadership Development, etc)

32. Contact Army Office of Small Business Programs 703-697-2868
Army Materiel Command (AMC) - Redstone Arsenal, AL
Buys: Combat systems, Information systems, Intelligence security 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: 32

33. Questions? 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?