1. DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET 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 Distribution Statement A. Approved for public release; distribution is unlimited

2. DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET 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

3. DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET Typical DON SBIR/STTR Phase I and Phase II Funding Landscape Each SYSCOM has own Phase II guidance (typical amounts shown) Phase I 6m $80K base 6m $70K option Phase II/II.5 Base & Option vary by SYSCOM Phase III Non-SBIR Funding (Government or Private) Production/Further R&D Idea Generation Prototype Development/ Demonstration Demonstration / Commercialization 3

4. DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET 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, with Strong Technology Pull

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

6. DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET Generic SBIR/STTR Award Structure DON SYSCOMS tailor this model as needed Feasibility Study Technology Development and Prototype Demonstration Technology Development and Prototype Demonstration Prototype Testing & Evaluation Technology Demo & Validation Prototype Testing & Evaluation Technology Demo & Validation NTE $2.775M Total SBIR /STTR Funding NOTE: A ‘Subsequent Phase II’ is a Requirements Driven process; i.e., based upon Acquisition program needs. TTP: Technology Transition Plan TTA: Technology Transition Agreement Updated June 6, 2013 Phase III – can occur anytime after Phase I and is funded with non-SBIR/STTR$ Commercialization Transition Commercialization Transition

7. DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET 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

8. DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET 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

9. DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET 9 FY09FY10FY11FY12FY13 Total DoN SBIR Funding per FY$328M$342M$264M$271M$231M DoN SBIR Topics issued that FY224233181160149 Number Of Phase I Proposals35554098328225332227 DoN Phase I Awards from FY Solicitations597693483434250* Avg time to award Navy Phase I contracts4.8 mo4.5 mo 4.4 mo4.5 mo Navy Phase II Awards during FY267305257279222 Navy Phase III Awards during FY126131146121** Amount of Navy Phase III Awards that FY$362M$566M$552M$725M** DoN STTR Funding Per FY$40M$41M$33M$36M$31M DoN STTR Topics Per Year3950392629 DoN STTR Phase I Awards during FY1251581166270 DoN STTR Phase II Awards during FY4746522341 SBIR/STTR Program By The Numbers * Still collecting data ** Data not available yet

10. DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET SYSCOM PM’s PEO SBIR Technology Managers SBIR Field Offices John Williams, Director Dean Putnam SBIR Program Manager NAVSEA Donna Moore SBIR Program Manager NAVAIR Kim Berche - Deputy Elizabeth Madden SBIR Program Manager MARCOR Lore-Anne Ponirakis SBIR Program Manager ONR Elizabeth Altmann SBIR Program Manager SPAWAR Blenda Gately SBIR, Technical Liaison PEO Carriers Glen Sturtevant SBIR, Technical Liaison PEO Ships Douglas Marker SBIR, Technical Liaison PEO IWS Megan Cramer SBIR, Technical Liaison PEO LCS Lauren Pitre SBIR, Technical Liaison PEO Subs Vacant Administrating Officer NSWC Carderock Brooke Pyne Administrating Officer NSWC Crane Joe Garcia Administrating Officer NSWC Dahlgren Nancy Johnson Administrating Officer NSWC Indian Head Jack Griffin Administrating Officer NUWC Newport Todd Parcell SBIR, Technical Liaison PEO (A) Bill O’Reagan SBIR, Technical Liaison PEO (T) Glenn Menear SBIR, Technical Liaison PEO (U&W) Amanda Gentry SBIR, Technical Liaison PEO (JSF) Janet McGovern SBIR, Technical Liaison NAVAIR (1.0) Dr. Mark Husni Administrating Officer NAVAIR Lakehurst Dr. Michael Seltzer Administrating Officer NAWC- WD China Lake Jerry Rubinsky Administrating Officer NAWC- AD Patuxent River Vacant SBIR, Technical Liaison PEO Space Butch Wren Avionics & Sensors NAWC-AD Patuxent River Paul Halloran SBIR, Technical Liaison PEO Land Systems Reggie Williams Propulsion and Power NAWC-AD Dr. Thomas Franz Administrating Officer NAWC- TSD Orland Kimberly Berche CPP Program Manager NAWC- AD Patuxent River Steve Sullivan STTR PM Michelle Willis CRP Program Manager Matt Williams Phase II.5 Lead Lee Ann Boyer CRP Program Manager Vacant SBIR, Technical Liaison PEO C4I Victor Gavin SBIR, Technical Liaison PEO EIS SBIR/STTR Is Embedded DON-Wide 10

11. DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET The Navy Opportunity Forum is the Navy's Premiere Small Business Technology Event 11 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 PoR’s The most cost effective method for generating “transition” which requires face to face briefings and discussions

12. DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET 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

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

14. DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET 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

15. DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET 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

16. DELIVERING SMALL BUSINESS INNOVATION TO THE FLEET Questions? 16