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Army Small Business Programs Presented to: University of District of Columbia (DC)

Learn about the Army's small business programs and initiatives, including mentorship, compliance, outreach, training, and the SBIR/STTR program.

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Army Small Business Programs Presented to: University of District of Columbia (DC)

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  1. Army Small Business Programs Presented to: University of District of Columbia (DC) @ Pentagon to the People 12-13 September 2017 Ms. Sharon Morrow SB Liaison for SBIR/STTR; Mentor-Protégé PM Office of the Secretary of The Army

  2. Small business big business is Army! in the Department of the 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.

  4. OSBP Priority Areas Mission Compliance Outreach Training 4

  5. Statutory Requirements: ARMY Small Business ProgramAdvice, Market Research, Training

  6. Statutory Requirements: ARMY Small Business ProgramCompliance, Policy, Reporting

  7. Statutory Requirements: ARMY Small Business ProgramAdvocacy &Liaison, Agency/ Office Operations

  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 15-17 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 12-13 OCT 17, Chantilly, VA • 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

  11. Army Small Business PerformanceFY13 – FY16 Data Source: FPDS-NG Small Business Achievements by Awarding Organization Report, 2016JAN19

  12. Army Small Business PerformanceFY15 vs. FY16 Data Source: FPDS-NG Small Business Achievements by Awarding Organization Report, 2016JAN19

  13. Top 5 Small Business NAICS Codes by Command (FY16) Data Source: FPDS-NG Small Business Achievements by Awarding Organization Report, 2016JAN19

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

  15. FY17 as of September 11, 2017 Army Small Business Spending by State Total 13.4 Billion 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

  18. SBIRProgramOverview WhatisSmallBusinessInnovation Research(SBIR)?

  19. SBIRProgramOverview • SBIRProgramGoals • Tostimulatetechnologicalinnovation • Tomeetfederalresearchanddevelopment(R&D)needs • Tofosterandencourageparticipationin innovationsand entrepreneurshipbysociallyandeconomically disadvantagedpersons • Toincreaseprivate-sectorofinnovationsderivedfrom federalR&D funding

  20. SBIRProgramOverview • PhaseI • Afeasibilitystudythatdeterminesthescientific,technical,and commercialmeritandfeasibilityofaselectedconcept. PhaseI projectsarecompetitivelyselectedfromproposalssubmitted againstsolicitationtopicsseekingspecificsolutionstoArmy needs. Alsocalled“proofofconcept.” • 4volumes: ProposalCoverSheet,Technical(max20pages), Cost,andCompanyCommercializationReport • 6 montheffort • Upto$100k;withanoptionfor$50kforanadditional4months • Historically,Armyreceivesabout2,000-3,000proposalsand awardsabout200ofthoseeachyear(10-13%awardrate) • TechnicalReadinessLevel(TRL)is low->around1-4

  21. SBIRProgramOverview • PhaseII • Objective: tocontinuetheR&D effortsinitiated in PhaseI • RepresentsamajorR&D effort,culminatinginawell-defined deliverableprototype • 4volumes: ProposalCoverSheet,Technical(max38 pages),Cost,CompanyCommercializationReport • PriortoFY13,participantsmustreceivean invitationto proposeonPhaseII;notrequiredafterFY12. AllPhaseI awardeescanproposeon PhaseII. • Uptoa2-yeareffort • Upto$1Mwithanoptionforanadditional$500kbasedon TRL • Historically,Armyawards50%of thePhaseIIproposals

  22. SBIRProgramOverview PhaseIII& Commercialization • Objective: for entity topursuecommercializationobjectives resultingfrom PhasesIandII R&D activitiesor tomakethe technologypartofthe ProgramofRecord(POR) Work thatderivesfrom,extends,or logicallyconcludesefforts performedunderSBIR PhaseIandIIfundingagreements,butis fundedby sourcesother thanthe SBIR Program. ArmySBIR doesnotfund PhaseIII. Fundingcancomefrom venturecapital,crowdfunding,afederal contract,or supportfrom anotherbusinesswhowantstousethe technology,or othersources (family&friends) Commercializationcanbeeither afederalor industryapplication TheArmy has institutedseveralprogramstofacilitatethe transitionof PhaseIIprojectstoPhaseIII. Theseprograms include: • • • • • TechnicalAssistance • Transition Support

  23. SBIREligibility • Organizedfor-profitU.S.business,locatedin theU.S. • Atleast51%U.S.-ownedbyindividuals andindependentlyoperated • 500orfeweremployees • PI’s primaryemploymentwithsmallbusinessduringproject PI=PrincipalInvestigator

  24. STTRProgramOverview Whatis SmallBusiness TechnologyTransfer (STTR)? • ACongressionallymandatedprogramacross theFederalGovernment usedtostimulatetechnologicalinnovation • Foster technologytransfer throughcooperativeR&D betweensmall businessandresearchinstitutions • Toincreaseprivate-sectorcommercializationofinnovationsderivedfrom federalR&D • RequireseachfederalagencywithanextramuralbudgetforR&D over • >$1B toset-aside0.40%forArmy STTR; FY16=$28.9M. For 2017, theamountwasincreasedto.45%.

  25. STTRProgramOverview • PhaseI-FeasibilityStudy • AwardGuideline:upto$150K • Duration:upto12Months • PhaseII-FullResearchandDevelopmenttoPrototype • AwardGuideline:$1Mwithoptionforadditional$500kto increaseTRL • Duration:upto24Months • PhaseIII-Commercialization • Derivesfrom,extends,orcompletespriorSTTR fundingagreements • ArmySTTRdoesnotfundPhaseIII

  26. STTREligibility • FormalCooperativeR&D Effort • Minimum40%bysmallbusiness,30%byU.S.researchinstitution • SmallbusinessisPrime,PI canbefromSBorResearchInstitution • U.S.ResearchInstitution • MusthaveanIntellectualPropertyAgreementamongtheSB and ResearchInstitute PI=PrincipalInvestigator

  27. 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 DARPA $75 $10 NGA $0.5 DHP $50 $7 OSD $50 $7 DTRA $8.4 1.2 SOCOM $12.6 $1.75 Navy $254 $35 AF $284 $39 CBD $13 $1.8 DLA/DMEA $5 $.7 MDA $79 $11 Figures are in millions

  28. 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

  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. SBIRinvests 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 • 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) • Management Technical Assistance • CyberSecurityand Secure Systems Product Development • Process Re-Engineering • Quality Management Certifications: ISO 9001:2008 and 2015, ISO 27000, ISO 20000 and ITIL • CMMI Level 2 and 3 certifications • Legacy System Support and Modernization • Business Development • DCAA Compliance Training

  32. Contact • Army Office of Small Business Programs • 703-697-2868 • www.sellingtoarmy.com Twitter: @ArmySmallBiz • Army Materiel Command (AMC) - Redstone Arsenal, AL • Buys: Combat systems, Information systems, Intelligence security information systems • Small Business AD: Ms. Nancy Small, 256-450-7953 • Website: www.army.mil/amc • Army Corps of Engineers (USACE) - Washington, DC • Buys:Military/civil works construction projects, Environmental projects • Small Business AD: Ms. Grace Fontana, 202-761-8789 • Website: http://www.usace.army.mil • Army Medical Command (MEDCOM) - Ft. Sam Houston, TX • Buys:Medical supplies and health care equipment, Professional services • Small Business AD: Mr. Pete Hunter, 210-295-4415 • Website: http://www.armymedicine.army.mil • National Guard Bureau (NGB) - Arlington, VA • Buys:Base operations, Construction/environmental projects • Small Business AD:Dr. Donna Peebles, 703-607-1001 • Websites: http://www.arng.army.mil 32

  33. 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? www.sellingtoarmy.com

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