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Commercialization Pilot Program (CPP)

Commercialization Pilot Program (CPP). Jenny C. Servo Lyn Barnett DAWNBREAKER ®. OUTLINE. Background Navy CPP Tiger Team NAVAIR Air Force CPP Army CPP More to come…. Legislative Background. The 2006 National Defense Authorization Act

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Commercialization Pilot Program (CPP)

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  1. Commercialization Pilot Program (CPP) Jenny C. Servo Lyn Barnett DAWNBREAKER® DAWNBREAKER®, 2007

  2. OUTLINE • Background • Navy CPP • Tiger Team • NAVAIR • Air Force CPP • Army CPP • More to come… DAWNBREAKER®, 2007

  3. Legislative Background • The 2006 National Defense Authorization Act • Section 252: Research and Development Efforts for Purposes of Small Business Research • (1) IN GENERAL- The Secretary of Defense and the Secretary of each military department is authorized to create and administer a `Commercialization Pilot Program' to accelerate the transition of technologies, products, and services developed under the Small Business Innovation Research Program to Phase III,including the acquisition process. DAWNBREAKER®, 2007

  4. Legislative Background • (3) LIMITATION- No research program may be identified under paragraph (2) unless the Secretary of the military department concerned certifies in writing that the successful transition of the program to Phase III and into the acquisition process is expected to meet high prioritymilitary requirements of such military department. DAWNBREAKER®, 2007

  5. Legislative Background • (4) FUNDING- For payment of expenses incurred to administer the Commercialization Pilot Program under this subsection, the Secretary of Defense and each Secretary of a military department is authorized to use not more than an amount equal to 1 percent of the funds available to the Department of Defense or the military department pursuant to the Small Business Innovation Research Program. Such funds-- • A) shall not be subject to the limitations on the use of funds in subsection (f)(2); and • B) shall not be used to make Phase III awards. DAWNBREAKER®, 2007

  6. Legislative Background • (9) the term `commercial applications' shall not be construed to exclude testing and evaluation of products, services, or technologies for use in technical or weapons systems, and further, awards for testing and evaluation of products, services, or technologies for use in technical or weapons systems may be made in either the second or the third phase of the Small Business Innovation Research Program and of the Small Business Technology Transfer Program, as defined in this subsection.'. DAWNBREAKER®, 2007

  7. Kenneth Krieg Memorandum • Memorandum to Secretary of the Navy, Army, Air Force, June 2006 • Army, Air Force, and Navy were the first required to implement a CPP initiative • Requires the identification of SBIR research projects with the potential for rapid transition to Phase III • Projects must meet high military priority • Current SBIR policy requires that 50% of SBIR topics have acquisition community endorsement Under Secretary of Defense for Acquisition, Technology and Logistics DAWNBREAKER®, 2007

  8. How will CPP effect you? Navy’s Implementation of CPP John Williams, Director SBIR, STTR, and T2 Programs DAWNBREAKER®, 2007

  9. Navy CPP and You • Additional awards are being provided at the end of Phase II to facilitate transition • These CPP awards are SBIR awards and NOT Phase III awards • Business services are also being provided - Manufacturing assessments, ITAR, contracting issues • This focus is on a very small subset of Phase II awards DAWNBREAKER®, 2007

  10. Experiments - 1st Year CPP • SAT Program: • SBIR Accelerated Transition (SAT) Initiative - ONR • Awards for up to $1.5 M for up to two years • Matching funds desirable • Clear indication of interest from PEOs TRL 4 at a minimum to start, and TRL 6 when exiting • Identification of Program of Record (PoR) - Identification of key technological and/or programmatic benefits of the technology DAWNBREAKER®, 2007

  11. Information Required in Application • Operational Need • High priority? How determined? • Intended system or Program of Record • Value to Warfighter • Command Roadmap and technology gap • Navy sponsors • Resource sponsor • Requirements officer • Technical Point of Contact • Estimated funding requirements DAWNBREAKER®, 2007

  12. Terms and Definitions • OPNAV Resource Sponsor: • The role of the OPNAV resource sponsor is to provide funding to the various SYSCOMS and their related Program Executive Offices through Program Objective Memoranda (POMs). • Requirements Officer (RO) • The Requirements Officer (RO) is the program sponsor and provides the key interface between OPNAV and the acquisition management structure. DAWNBREAKER®, 2007

  13. Tiger Team Initiative • As part of the CPP initiative, the Navy also undertook a significant review of the SBIR process to examine best practices, as well as strengths and weaknesses • Interviews were conducted with all levels • SBIR firms • PEOs • TPOCs • SBIR Program managers • Others DAWNBREAKER®, 2007

  14. Keys for SBIR Transition Success • Right Topic: Choosing the right topic is essential to transition success. SBIR topics must be timely and relevant to the needs of the customer, the acquisition program and the warfighter • Resources: Sufficient resources and tools must be provided at all levels of program execution. • Effective Management and Processes: Effective management and processes must be in place to support/endorse and execute technology transition. • Prime Contractor Acceptance: Prime contractor and Acquisition Program teams must accept the SBIR project as a viable solution to their problems and needs. DAWNBREAKER®, 2007

  15. Keys for SBIR Transition Success • Reliable SBIR Supplier: SBIR companies must be reliable suppliers, capable of establishing and sustaining production of their product. • Mature and Relevant Technology: Technology must be mature and useable in the context of its proposed application. • Effective Policy: DoD and Navy policy must effectively facilitate technology transition. DAWNBREAKER®, 2007

  16. Keys for SBIR Transition Success • Contracting: Contracting process must be straight forward and timely. • Outreach and Education: Value stream participants must be empowered and knowledgeable of SBIR program objectives, policies, process execution, and transition requirements within the context of the acquisition process. DAWNBREAKER®, 2007

  17. NAVAIR CPP Experiment Selecting and maturing companies and PEO relationships DAWNBREAKER®, 2007

  18. Additional Sec. 252 Highlights • Requires involvement of PEOs and PMs in SBIR topic development, and Phase III transition planning and approval. • Allows use of 1% of SBIR funds for CPP administration. • Requires annual reporting of CPP and SBIR commercialization activities by PEOs, PMs and primes. • Ties into SBIR law Executive Order 13329, which encourages manufacturing innovation. • Allows for T&E work in Phases II and III. DAWNBREAKER®, 2007

  19. NAVAIR CPP Approach • Improve CPP pipeline by implementing improvements in the topic development process and strengthening PEO/PMA/Prime involvement. • Better coordination between PMA Acquisition Plans, the Requirements community, and linkage to SBIR technology Maturation. • Bureaucracy busting and process improvement through proactive action throughout the NAVAIR SBIR process. • Supplier Risk Identification & Risk Mitigation Assistance to CPP Phase II projects with potential for rapid transition. DAWNBREAKER®, 2007

  20. NAVAIR CPP Implementation • Establish outreach with PEO/PMAs/Primes • Improve link up of requirements and topics • Early ID of potential CPP companies and technologies • Early ID of potential transition roadblocks • Improve coordination with all parties • Proactive teaming to share investment/funding of SBIR technology transitions • Participate in the Advanced technology Review Board (ATRB) process to promote SBIR technologies DAWNBREAKER®, 2007

  21. FY-07 NAVAIR CPP Selection Process Phase II’s Step (2) • Quad charts reviewed by TPOC • & Mapped to PMA’s. Topic transition assessment. • TPOC’s coordinate PMA topic • review and transition assessment. • Topic Transition Assessment: • (one of five categories selected • by PMA) • Support • Endorse • Interest • Pass • Concern • PMA Topic Ranking • Level of matching non-SBIR • funds (if known) • Endorsed Topics priority ranked Step (1) ELIGIBLE Phase II SBIR’s • SBIR Portfolio Review • All (2nd yr) Phase II Topics mapped to TPOC’s & PMA’s. • All Phase II (enhancements) • SAT Companies not recommended for SAT 06 funding but flagged “of interest” • ATRB SBIR Endorsed Topics SBIR firms • Prepare Quad Charts PMA-207, 202 etc. PMA-263, 280 etc. PMA-231, 241 etc. PMA-257, 275 etc. JSF PEO (W) JSF AIR 1.0 PEO (T) PEO (A) Step (3) • PMA • Endorsed / Ranked Topics • Briefed to PEO’s (if Req) • PEO’s • Select / Prioritized /Endorse • CPP Projects • Requirements • PM funding • PMA Endorsement • Transition to POR Step (4) Endorsed "CPP" Candidates • PEO/SBIR PM Final Selection • Budget constraints • NAE Requirements prioritization • Multi Platform applicability Step (5) Deal Due Diligence Endorsed "CPP" Projects DAWNBREAKER®, 2007

  22. DAWNBREAKER®, 2007

  23. Other Unique Items • SBIR Phase II Enhancements • Second Phase II awards • Indefinite Delivery - Indefinite Quantity (IDIQ) awards DAWNBREAKER®, 2007

  24. Air Force CPP Initiative Richard Flake, CPP 937-255-0706, richard.flake@wpafb.af.mil DAWNBREAKER®, 2007

  25. Air Force Challenges • Establish links between the Air Force Research Laboratory, the Acquisition Program Offices, and the Prime Contractors in developing Phase I topics • Assure Phase II topics meet needs of Program of Record • Include SBIR topics in technology insertion roadmaps • Cut down on cycle time for SBIR process from topic generation to Phase I contract award DAWNBREAKER®, 2007

  26. Impact on you? • The Air Force is hosting networking events to bring companies and primes together • No services or financial awards at this time. • Focus is on alignment DAWNBREAKER®, 2007

  27. The Army CPP May, 2007 DAWNBREAKER®, 2007

  28. Venture Focused • Newest of the CPP programs • Has a fund that will be administered by MILCOM Venture Partners • Appears that focus will be on companies that have matching funds DAWNBREAKER®, 2007

  29. Implications of CPP for you? DAWNBREAKER®, 2007

  30. Raising the bar • Although relatively few companies will receive CPP funding, this initiative raises the bar in terms of what you need to do in order to be successful in Phase III • Greater sophistication and understanding of the warfigher, primes, and DoD will required DAWNBREAKER®, 2007

  31. Other military departments will also have a CPP initiative in a relatively short period of time • The programs will continue to evolve DAWNBREAKER®, 2007

  32. Questions? DAWNBREAKER®, 2007

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