Department of Navy DON SBIR and STTR Program

Department of Navy (DON) SBIR and STTR Program SBIR/STTR At A Glance March 4, 2014 Jack Griffin Deputy S&T Director PEO Littoral Combat Ships D E L I VStatement E R I N G S MA. A LApproved L B U S I N Efor S S public I N N O release; V A T I O Ndistribution T O T H E F Lis. E unlimited ET Distribution

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 facilities use in expeditionary bases in new “pivot” locales in Africa and Asia. DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET 2

Typical DON SBIR/STTR Phase I and Phase II Funding Landscape Idea Generation Phase I SPAWAR 6 m $80 K base 6 m $70 K option 18 m $600 K Base 6 m, $150 K Option II. 5 up to $1. 5 M Phase II/II. 5 Prototype Development/ Demonstration Base & Option vary by SYSCOM Demonstration / Commercialization ONR NAVAIR 18 m, $500 K Base 9 m $250 K Option 1 18 $750 K Option 2 (50/50 cost match) 24 m $. 75 -$1 M Base II. 5 up to $1. 5 M Options require matching funds Phase III Non-SBIR Funding (Government or Private) MARCOR NAVSEA 24 m $600 K Base 6 m, $150 K Option II. 5 up to $1. 5 M Each SYSCOM has own Phase II guidance (typical amounts shown) Production/Further R&D DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET 3

Acquisition Driven Process, with Strong Technology Pull • 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. DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET

DON SBIR/STTR Supports a Wide Variety of Technology Needs SSN-774 Virginia-class Submarine DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET 5

Generic SBIR/STTR Award Structure DON SYSCOMS tailor this model as needed Feasibility Study Technology Development and Prototype Demonstration Phase I Base • 6 Months (SBIR) • 7 Months (STTR) • $80 K Phase I Option • 6 Months • $70 K FFP Contract Prototype Testing & Evaluation Technology Demo & Validation Subsequent Phase II Base Phase II Option 1 • 18 Months • ≤ $500 K • • 9 Months ≤ $250 K TTP required SBIR PM/PO review for Option 2 at exit NTE $150 K Commercialization Transition Phase II Option 2 • ~12 -18 Months • ≤ 750 K total • 1: 1 cost match • ≤ $375 K SBIR • ≤ $375 K match • Signed TTA required • TRL 4 at exit Contingent upon having a successful project with a committed Transition Sponsor/Path • • NTE $1. 125 M SBIR/STTR Funding Transition to Acquisition Program • Non-SBIR/STTR $ (Private sector or Non. SBIR Gov. $) Up to 24 months 1: 1 cost match Signed TTA required Minimum TRL 4 at entry • Unlimited POP • SBC Extension of Data Rights and Sole Source Designation CPFF Contract Type Varies Phase III contracts may be awarded without competition after Phase I/II NTE $1. 5 M SBIR/STTR Funding NOTE: A ‘Subsequent Phase II’ is a Requirements Driven process; i. e. , based upon Acquisition program needs. CPFF Contract Phase III No limit on funding (Just Non-SBIR/STTR) NTE $2. 775 M Total SBIR /STTR Funding Phase III – can occur anytime after Phase I and is funded with non-SBIR/STTR$ TRL: 0 - 3 TTP: Technology Transition Plan. D E L I TTA: Technology Transition Agreement 2 - 5 4 - 7 6 - 9 VERING SMALL BUSINESS INNOVATION TO THE FLEET Updated June 6, 2013

What’s New With SBIR/STTR? • SBIR/STTR Reauthorization statute focuses on increased commercialization: – Do. D 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. DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET 7

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 DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET 8

SBIR/STTR Program By The Numbers Total Do. N SBIR Funding per FY Do. N SBIR Topics issued that FY Number Of Phase I Proposals Do. N Phase I Awards from FY Solicitations Avg time to award Navy Phase I contracts Navy Phase II Awards during FY Navy Phase III Awards during FY Amount of Navy Phase III Awards that FY Do. N STTR Funding Per FY Do. N STTR Topics Per Year Do. N STTR Phase I Awards during FY Do. N STTR Phase II Awards during FY FY 09 FY 10 FY 11 FY 12 FY 13 $328 M $342 M $264 M $271 M $231 M 224 233 181 160 149 3555 4098 3282 2533 2227 597 693 483 434 250* 4. 8 mo 4. 5 mo 4. 4 mo 4. 5 mo 267 305 257 279 222 126 131 146 121 ** $362 M $566 M $552 M $725 M ** $40 M $41 M $33 M $36 M $31 M 39 50 39 26 29 125 158 116 62 70 47 46 52 23 41 * Still collecting data ** Data not available yet DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET 9

SBIR/STTR Is Embedded DON-Wide PEO SBIR Technology Managers PM’s SYSCOM John Williams, Director Dean Putnam SBIR Program Manager NAVSEA Elizabeth Madden SBIR Program Manager MARCOR Paul Halloran SBIR, Technical Liaison PEO Land Systems Lore-Anne Ponirakis SBIR Program Manager ONR Elizabeth Altmann SBIR Program Manager SPAWAR Blenda Gately SBIR, Technical Liaison PEO Carriers Janet Mc. Govern SBIR, Technical Liaison NAVAIR (1. 0) Glen Sturtevant SBIR, Technical Liaison PEO Ships Todd Parcell SBIR, Technical Liaison PEO (A) Vacant SBIR, Technical Liaison PEO C 4 I Douglas Marker SBIR, Technical Liaison PEO IWS Bill O’Reagan SBIR, Technical Liaison PEO (T) Victor Gavin SBIR, Technical Liaison PEO EIS Megan Cramer SBIR, Technical Liaison PEO LCS Glenn Menear SBIR, Technical Liaison PEO (U&W) Lauren Pitre SBIR, Technical Liaison PEO Subs Amanda Gentry SBIR, Technical Liaison PEO (JSF) Michelle Willis CRP Program Manager SBIR Field Offices Donna Moore SBIR Program Manager NAVAIR Kim Berche - Deputy Lee Ann Boyer CRP Program Manager Steve Sullivan STTR PM Vacant SBIR, Technical Liaison PEO Space Matt Williams Phase II. 5 Lead Vacant Joe Garcia Jack Griffin Jerry Rubinsky Kimberly Berche Butch Wren Administrating Officer CPP Program Manager Avionics & Sensors NSWC Carderock NSWC Dahlgren NUWC Newport NAWC- AD Patuxent River NAWC-AD Patuxent River Brooke Pyne Nancy Johnson Dr. Mark Husni Dr. Thomas Franz Dr. Michael Seltzer Administrating Officer Administrating Officer NSWC Crane NSWC Indian Head NAVAIR Lakehurst NAWC- TSD Orland NAWC- WD China Lake DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET Reggie Williams Propulsion and Power NAWC-AD 10

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 13 th 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 Po. R’s • The most cost effective method for generating “transition” which requires face to face briefings and discussions DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET 11

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 DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET 12

www. navysbirsearch. com Free! DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET 13

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 (Do. D) Builds credibility of company’s research Follow-on awards are non-competitive DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET 14

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 DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET 15

Questions? DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET 16