John R Williams Director, Navy SBIR & STTR John.Williams6@navy.mil

24 August 2011

DoD/Navy SBIR/STTR Overview

Small Business Innovation Research (SBIR) Small Business Technology Transfer (STTR)

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1. REPORT DATE 24 AUG 2011 2. REPORT TYPE

3. DATES COVERED 00-00-2011 to 00-00-2011

4. TITLE AND SUBTITLE DoD/Navy SBIR/STTR Overview

5a. CONTRACT NUMBER

5b. GRANT NUMBER

5c. PROGRAM ELEMENT NUMBER

6. AUTHOR(S) 5d. PROJECT NUMBER

5e. TASK NUMBER

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7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) Office of Naval Research ,Code 03TSB,One Liberty Center, 875 NorthRandolph Street ,Arlington,VA,22203-1995

8. PERFORMING ORGANIZATIONREPORT NUMBER

9. SPONSORING/MONITORING AGENCY NAME(S) AND ADDRESS(ES) 10. SPONSOR/MONITOR’S ACRONYM(S)

11. SPONSOR/MONITOR’S REPORT NUMBER(S)

12. DISTRIBUTION/AVAILABILITY STATEMENT Approved for public release; distribution unlimited

13. SUPPLEMENTARY NOTES Presented at the 2011 Navy Gold Coast Small Business Conference, 22-24 Aug, San Diego, CA.

14. ABSTRACT

15. SUBJECT TERMS

16. SECURITY CLASSIFICATION OF: 17. LIMITATION OF ABSTRACT Same as

Report (SAR)

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Standard Form 298 (Rev. 8-98) Prescribed by ANSI Std Z39-18

The SBIR Process

PHASE I Feasibility Research

PHASE III Product

Development for Gov’t or Commercial

Market

Private Sector Investment

Tax Revenue Federal Investment About $2.3B in FY10

PHASE II Research towards

Prototype

Social and

Government Needs

$1M $150K

R&

D I

nves

tmen

t

Non-SBIR Government Investment

$148 billion

The Early Stage “Valley of Death”

Pre-Seed Seed/Start-Up

Early Later Founders,

Friends, Family & Fools

SBIR AWARDS /Angel Investors/ Angel Groups Venture

Funds*

$25,000 $100,000 $1 to 2 million $5 million

Funding Gap

VALLEY OF DEATH

Adapted from: Richard Bendis and

Ethan Blyer, “Creating a National Innovation Framework, Science

Progress, 2009 * Average Venture Investment is $8.3 million

Why would a Small Business Want to Participate in the SBIR/STTR Program ? •  Largest source early stage R&D funds for Small

Business – Fed wide ~$2.5B Navy >$325M •  No dilution of ownership; owners retain control and

retains data rights for 4 years or more (5 for DoD) •  Follow-on awards are contracted non-competitively •  Strong commercialization support •  No repayment is required

–  Government recoupment is through the tax system •  Certification effect draws in additional investment

–  Signal to private investors of technological validity and commercial promise of the innovation

SBIR’s Advantages for Government

•  A low-cost technological probe –  Enables government to explore more cheaply ideas

that may hold promise –  Identifies dead-ends before substantial investments are

made •  Quick reaction capability

–  Solicitations topics can respond rapidly to urgent national needs

–  Anthrax attacks led NIH to seek and get innovative bio-defense technologies

•  Diversifies the Government Supplier-base –  Brings in competition, low-cost solutions, new

approaches to address mission needs

6

Over Two Decades of Consolidation: What was over 100 “name plate” primes in the 80s is now five firms…

1990 1991 1993 1992 1995 1996 1997 1998 1994 2004 2003 2002 2001 2000 1999 2005 2006

Sources: DM&A, Washington Technology, Company reports, and CSIS Analysis. Federal Services Defense Hardware Commercial IT

Raytheon REMCO SA

Hughes Electronics BET PLC's Rediffusion Simulation General Dynamics Missile Division

Magnavox

STC PLC–Navigation Systems TRW-LSI Products Inc.

Corporate Jets E-Systems

HRB Systems Inc. Chrysler Techn. Airborne Texas Instr. El. Defense

Raytheon

Allied Signal, Inc. (Comm Systems) Aerospace Group (Australia)

Boeing Australia Ltd.

JPS Communications, Inc. Solipsys

Honeywell International Corp. (Australia)

Photon Research Associates, Inc.

Boeing Boeing Co. Rockwell

Litton Precision Gear McDonnell Douglas

Hughes Electronics Satellite

SVS, Inc.

Autometric, Inc.

Continental Graphics Corp.

Jeppesen Sanderson, Inc.

Hawker de Havilland Ltd. (Australia)

Conquest, Inc.

Frontier Systems, Inc.

General Dynamics

General Dynamics

Bath Iron Works Lockheed Martin Defense Sys, Armament Sys

Lucent Advanced Technology Systems Computing Devices International, Inc

NASSCO Holdings, Inc. Gulfstream Aerospace

GTE Government Systems Corp. Units Santa Barbara

Primex Technologies Galaxy Aerospace

Motorola Integrated Info Sys GM Defense

SIGNAL Corp. Trident Data Systems

MRJ Technology Solutions

Pacific-Sierra Research Corp. DatumCom Corp.

Veridian Corp. Digital System Resources, Inc.

ERIM International, Inc.

Spectrum Astro, Inc. Tripoint Global Communications, Inc.

Engineering Technology, Inc.

Newport News Shipbuilding TRW

BDM International Inc.

Northrop Grumman

Northrop LTV–Aircraft Operations General Dynamics Space Business

Grumman Westinghouse El. Defense

Syscon Corp. Logicon, Inc.

Applied Technology Associates Geodynamics Corp.

Ryan Aeronautical Kistler Aerospace Corp. Alvis Logistics–EDD Business

Inter-National Research Institute (INRI)

Teledyne Ryan Aeronautical

DPC Technologies, Inc. Comptek Research, Inc.

Federal Sys Grp (Sterling Software, Inc.) Federal Data Corp.

NYMA, Inc. Sylvest Management Systems Corp. Tisoft, Inc.

Technical and Management Assistance, Inc. R.O.W. Sciences, Inc.

Telos Corp.

Taratin

PRC (Black & Decker) General Instruments–Defense Varian–Solid State Devices

Litton Industries Avandale Industries

XonTech, Inc.

TASC (Primark)

Lockheed Martin

Martin Marietta Corp. Lockheed

Space Systems Division (General Dynamics) GE Aerospace

Loral Corp. IBM Federal Systems

Unisys Corp Defense Systems

Honeywell-Electro-Optics Fairchild Weston Systems Inc.

Ford Aerospace Librascope

LTV–Missile Business

General Dynamics–Ft. Worth MEL

COMSAT Corp. OAO Corp.

Affiliated Computer Services, Inc. (ACS)

The SYTEX Group, Inc. STASYS Ltd. (UK)

Sippican Holdings, Inc.

7 :>

Small Business Winners

2%

27%

22%

16%18%

13%

3%

0%

5%

10%

15%

20%

25%

30%

1 2-9 10-24 25-49 50-99 100-249 250-499Number of Employees

•  Small hi-tech firms from across the country •  Many are firms 0 to 3 years old and SBIR funding

first major source of funds

What is unique about the DoD SBIR/STTR Program?

•  Focused on the WARFIGHTER

•  BIGGEST of the Agencies •  Both an investor and a small

business ADVOCATE to the customer

DoD SBIR/STTR Investment Key Technology Areas

0

500

1000

1500

2000

2500

3000

63%

25% 65%

93% 11%

Largest % Growth of Topics from 2004-2009

Source: SBIR & STTR solicitations, FY99-FY09

Num

ber o

f Top

ics

DoD Component Participation The SBIR and STTR programs are executed by 12 and 6 participating DoD

Components, respectively.

Air  Force    

Missile  Defense  Agency  

Special  Opera5ons  Command  

Army  

Defense  Advanced  Research  Projects  

Agency  

Na5onal  Geospa5al  Intelligence  Agency  

Defense  Microelectronics  

Ac5vity  

Navy  

Defense  Threat  Reduc5on  Agency  

Office  of  Secretary  of  Defense  

Joint  S&T  Office  for  Chemical  and  

Biological  Defense  

Defense  Logis5cs  Agency  

SBIR  Program  Only  

SBIR  +  STTR  Programs  

Historical SBIR Conversion Rates, by Program Phase

Based  on  all  Phase  I  and  Phase  II  contracts  derived  from  1996-­‐2005  solicita5ons.    Commercializa5on  data  taken  from  January  2010  DoD  SBIR  Commercializa5on  Database.    

Collaboration during the Solicitation Period

Topic Authors •  Q&A direct during pre-release •  Q&A electronic bulletin board (SITIS) from

pre-release to close

Administrative Help Desk •  Telephone 8am-5pm EST @ 866-724-7457

•  Email 24 hours a day at www.dodsbir.net/helpdesk

SBIR Award Recipient Distribution by Firm Size

2%

38%

29%

13%10%

6%2%2%

33%31%

15%

11%

6%2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

1 2-­‐9 10-­‐24 25-­‐49 50-­‐99 100-­‐249 250-­‐500

Number of Employees

Phase  IPhase  2

Based  on  FY09  Annual  Report;  Firm  Data  taken  from  Company  Commercializa>on  Report  

Based  on  FY09  SBIR  Annual  Report  Data  

Phase I Phase II

SBIR Award Recipient Distribution by Prior Experience

Two main goals of Navy SBIR/STTR Program:

• Use small business to develop innovative R&D that addresses a Navy need

• Commercialize (Phase III) that technology into a Navy platform or weapons system

Navy by the Numbers Metric FY08 FY09 FY10 Total Funding per FY $274M $328M $342M Navy SBIR Topics issued that FY 219 224 233 Number Of Phase I Proposals 2708 3555 4098 Navy Phase I Awards from FY Solicitations 555 597 658*

Avg time to award Navy Phase I contracts 4.5 mo 4.8 mo 4.3 mo* Navy Phase II Awards during FY 272 240 296* Avg time w/o funding between Phase I & II 8.2 mo 7.5 mo 8.6 mo* # Phase II.5’s (>$1M) ending in FY 43 45 63 Navy Phase III Awards during FY 90 126 131 Amount of Navy Phase III Awards that FY $307M $362M $566M SBIR/STTR Projects presented at Forum 172 177 205 Attendees at Navy Opportunity Forum 1,252 1,448 1,367

* Awards still being made On Average 1500 SBIR and 200 STTR Open Contracts to manage

Navy SBIR Organization •  Program Administered by the Office of Naval Research

•  Program Participants •  Naval Sea Systems Command (NAVSEA): Warfare Centers, PEO’s

and Program Managers •  Naval Air Systems Command (NAVAIR): Warfare Centers, PEO’s

and Program Managers •  Office of Naval Research (ONR): Science & Technology Directorates

and Naval Research Laboratory •  Space & Warfare Sys. Command (SPAWAR): Warfare Centers,

PEO’s and Program Managers •  Marine Corps Systems Command (MARCOR): Direct Reporting

Program Managers •  Naval Supply Systems Command (NAVSUP) •  Naval Facilities Systems Command (NAVFAC)

Navy follows TECHNOLOGY PULL APPROACH

•  Over 80% of Navy Topics are selected by PEO/PM/FNC office and address one of their specific needs -- not just “sponsored by”

•  Topics and awards based on their R&D priorities and SBIR funding allocation. The PEO gets back 90% of their tax

•  Many contracts awarded/monitored by lab employees with Acquisition Office POC involved

Year 6

CONTRACT TYPE -

Non-SBIR $

FFP Contract

CPFF or FFP Contract CPFF or FFP Contract Any

TRL - 0-3 2-5 4 7 6-9

NAVY SBIR/STTR Award Structure and Phase II.5 — Transition Strategies

Phase III

variable

Enhancement* ~ 12 mo.

$≤ 750k SBIR

Cont. Dev. 12 – 18 mo.

TP (Transition Project)* ≤ 2 yr.

$≤ 750k SBIR TTA Required

Phase 1 6 mo.

Phase 2 18-24 mo.

TTA Required

$80k $70k Base up to $750K Some Require TTP

$≤ 1.50M SBIR

NTE $150K NTE $1M NTE $1.5M NTE $2.65M

Opt. ~ 9 mo.

$≤ 250k SBIR

Year 1 Year 2 Year 3 Year 4 Year 5

Feasibility Technology

Development and Prototype Demo.

ACTIVITY - Prototype Testing & Evaluation Technology Demonstration & Validation

SBIR FUNDS -

Option 6 mo.

Navy SBIR/STTR Website www.navysbir.com

Navy SBIR I STTR Home

The 2010 Navy Opportunity Forum June 7- 9, 2010

Hyatt Regency* Crystal City, VA

Upcoming Navy SBIR/ STTR sol icitations

The Navy SBIR/STTR solicitations are released as part of the DoD SBIR/STTR solicitat ion process. On average, the Navy and DoD release 3 SBIR solici tations per fiscal year. The Navy STTR program generally part icipates in only 1 solicitation per year, normally released in January .

Browse Phase I Sel ections

I SOIA 2010.1 ::::J ~

Quick Search Recent Abstracts

I FY-GG. I bad< to FY.()4 ::!J ~

estvargd StJ!"d!

Tips for Succeeding w/Navy Just Getting Started? •  Research topics consistent with your business

strategy. Current and past solicitations identify Navy technology needs. Know Navy structure.

•  Submit proposals for solicitations your company can solve. Prepare to be innovative.

Already have a Phase I? •  Know your target platform/system for insertion. •  Build strategic partnerships (Primes, Universities,

Acquisition Managers, Program Managers). •  Plan commercialization path early with TPOC.

How To Search Current SBIR/STTR Solicitations

Federal Wide www.zyn.com/sbir

DoD Only

www.dodsbir.net Good for get list of all topic titles but ZYN

is better as topic search tool

Search project inventory www.navysbirsearch.com

Search

General Search DTIC Categories

Enter Query Text: New Query

m icrobial fu el cell

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• Navy Awards (2560)

addition to this important . civil ian markets • cost effective • directed energy . electrical

power . eleclroactive polymers . military and commercial . novel material

• oxidation process . Physical Sciences . potential commerc ial . service life • Army Awards (81)

• A ir f orce Aw ards (93)

• Other OoO Awards (58) • shipboard w astewater • significant market for the resultant . surface ships • 1..11dersea vehicles

• waste disposal • wastewater treatment . Water Contaminants

Displaying 1 -15 out of 2792 Total Results Next > >

96.62% Benthic 1\'licrobial Fuel Cells Engineered for High Power Density Summary: Benthic Microbial Fuel Cels Engi'leered for High Power Density. This vvill be accomplished by selective preemptive colonization of electrodes with natl..l'aly-derived marine or s ecimentary microbial popuk:rtions that most effectively gener ate electrical current . Anti~ated

benefits of the benthic fuel cell-based power device as c ompared to existi"lg marine power s oiSces, such as s ea water batteries ..

Topic llumber: NOS-T028

Firm tlame: Scribner Assoc iates Incorporated

Phase: I

Award Start Date: 06!23!2008

Award End Mod Oo1c: 0 710812000

Source: Navy Awards

96.62% High Power Density Sediment Microbial Fuel Cell for Powering Seafloor Sensors Summary: High Power Density Sediment Microbial Fuel Cell for Pow ering Seafloor Sensors. To reach the Navys target power density for sedime~ary fuel eels a dramatic ifTl)rovement in rrJcrobial fuel eel electrode currert densiy must be actjeved . Lynntech , in collaboration w ith Texas A&M universiy , proposes to solve these problems l.tilizing novel materials and unique biomimetic electrode designs to great ..

Topic llumber: NOS-T028

Firm tlame: l ynntech, lnc.

Phase: I

Award Start Date: 06!23!2008

Award End Mod Date: 0412412009

Source: Navy Awards

96.62% Rapid Bioelectrochemical Monitoring Shipboard Effluent Summary: Rapid Bioelectrochemical Monitoring Shipboard Effluent. To address the Navys need for real time monitoring of orgarjcs in wastewater tr eatment systems , Lynntech proposes a rricrobial fuel eel based sens or for monitoring Biological Oxygen Demand (BOD) of shipboard effk.lents . By providing near real-time feedback about the performance of marine saniation devices , crew members can adjust the

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