Office of Small Business Programs for the Department of Defense Northern Virginia SAME Small Business/ Industry Forum

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Office of Small Business Programs for the
Department of Defense Northern Virginia SAME
Small Business/ Industry Forum

• Victor Ciardello
• Director, Small Business Technology and
  Industrial Base
• September 6, 2007

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DoD Office of Small Business Programs

• DoD FY2006 Small Business Performance
• BRAC
• The Need for Small Business
• Mentor-Protégé Program
• SBIR STTR Programs

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Department of Defense FY2006 Prime Contract
Awards
Total Eligible Dollars Small Business Dollars Small Business Percentage
235 51.3 21.8
SDB Dollars SDB SDVOSB Dollars SDVOSB WOSB Dollars WOSB HUBZone Dollars HUBZone
14.7 6.3 1.6 0.7 6.90 2.9 4.7 2.0
Source SBA Goaling Report
Billion
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Department of Defense FY2006 Subcontract Awards
Total Eligible Dollars Small Business Dollars Small Business Percentage
106.6 39.6 37.20
SDB Dollars SDB SDVOSB Dollars SDVOSB WOSB Dollars WOSB HUBZone Dollars HUBZone
5.1 4.80 0.7 0.70 5.80 5.50 1.8 1.70
Source SBA Goaling Report
Billion
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DoD Office of Small Business Programs

• DoD FY2006 Small Business Performance
• BRAC
• The Need for Small Business
• Mentor-Protégé Program
• SBIR STTR Programs

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Comparing BRAC Rounds
(TY B) Major Base Closures Major Base Realignments Minor Closures and Realignments Costs1 (B) Annual Recurring Savings 2 (B)
BRAC 88 16 4 23 2.7 1.0
BRAC 91 26 17 32 5.2 2.3
BRAC 93 28 12 123 7.5 2.7
BRAC 95 27 22 57 6.6 1.9
Total 97 55 235 22.0 8.0 3
BRAC 05 24 24 765 30.8 4.0
Note 1 As of the FY 2008 Presidents Budget
(February 2007) through FY 2001 for prior BRAC
Rounds and through FY 11 for BRAC 2005. Note 2
Annual recurring savings (ARS) begin in the year
following each rounds 6-year implementation
period FY96 for BRAC 88 FY98 for BRAC 91 FY00
for BRAC 93 and FY02 for BRAC 95. These numbers
reflect the ARS for each round starting in 2002
and are expressed in FY 08 dollars. Note 3 Does
not add due to rounding.
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Overall Perspective

• Recommendations became law November 2005
• Current effort focused on key milestones
• NEPA
• MILCON
• Moving personnel
• Completing implementation actions
• Challenges
• Congress appropriates funding annually
• Big program (30B)
• Funding slower than anticipated
• Complexity of recommendations
• Joint plans breaking new ground require
  management attention

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DoD Office of Small Business Programs

• DoD FY2006 Small Business Performance
• The Need for Small Business
• Mentor-Protégé
• SBIR STTR Programs

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Over Two Decades of Consolidation What were
over 100 name plate primes in the1980s are now
five firms
Sources DMA, Washington Technology, Company
reports, and CSIS Analysis.
Federal Services
Defense Hardware
Commercial IT
Chart supplied by the Center for Strategic
International Studies (CSIS)
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The Need for Small BusinessImperatives demand
technology Challenges make it harder to get

• Need for speed flexibility to address emerging
  and evolving threats
• Consolidating industrial base
• Budget pressures
• Less RD investment in industry
• Increasing emphasis on/need for joint capability
  acquisition

The Central Challenge Where will innovation
come from and how will we get it?
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(No Transcript)
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Mentor-Protégé Program Eligibility

• A Qualifying Mentor must be
• Performing under at least one active approved
  subcontracting plan negotiated with the DoD or
  another Federal agency
• be eligible for award of Federal contracts
• A Qualifying Protégé must be one of the
  following
• A Small Disadvantaged Business (SDB) concern
  certified by SBA, or
• A qualified organization employing the severely
  disabled, or
• A Woman-Owned Small Business (WOSB)
• A Service-Disabled Veteran-Owned Small Business
  (SDVOSB)
• A Qualified HUBZone Small Business Concern

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Mentor-Protégé ProgramTypes of Developmental
Assistance

• Types of Developmental Assistance
• Technical Transfer
• Business Infrastructure Development
• Award of subcontracts under DoD contracts on a
  non-competitive basis
• Progress payments (up to 100)
• Advance payments
• Loans
• Investments in the protégé firm that have a need
  in exchange for ownership interest (10 or less)

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Military Services and Defense Agencies
Participation (July 2007)
91 Reimbursable Agreements 57 Credit Agreements
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Participation by State FY07 Active Mentor and
Protégé Participants

WA P-6 M-2
ME
MT P-2
ND P-1
VT
MN P-1
NY P-2 M-1
NH
OR

SD P-3
WI P-1
MI P-2 M-1
AK P-5
RI M-1 CT P-2, M-4
ID

WY
MA P-3, M-3
PA P-5
OH P-1 M-1
IA

NJ P-3, M-3
NE P-2 M-1
NE P-1 M-1
NV
IN M-2
MD P-12, M-5
IL P-3 M-2
IN
UT P-2 M-1
VA P-18, M-16
WV P-2
WV
CO P-4 M-3
KS P-2 M-1
MO P-2 M-1
DC P-4, M-1
CA P-25 M-6
KY
NC P-3
NC
TN P-4, M-1
OK P-1
AZ P-4 M-1
AR
SC P-2 M-1
AR
NM P-1 M-1
GA P-1 M-1
AL P-12 M-6
MS
TX P-7 M-6
LA P-1 M-1
HI P-1
FL P-11 M-3
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Mentor-Protégé Robotics Initiative

• Active Robotics Protégés
• AnthroTronix
• Epsilon
• Geodetics
• Kuchera Defense
• RE2
• Stratom
• Sullivan
• Mesa Robotics
• Referentia
• Potential Robotics Protégés
• Holman Industries
• Defense Technology Solutions, LLC
• Photon-X
• Shee Atika Technologies LLC
• Digital Artefacts
• Lorimar

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Service-Disabled Veteran-Owned Veteran Owned
Protégés

• 15 firms entered program as
• SDVOSB Protégés

Alliance of Architects and Engineers EnVetCo Regulus Corporation
Brigadier Construction Services, LLC Information Innovators, Inc. Stratom, Inc.
Chequamegon Bay Engineering, LLC Maintenance Inspection Services (MIS) Tompco, Inc.
Damar Machine Company Oak Grove Technologies Veterans Construction Inc.
Defense Manufacturing Supply (DMS) QTechnology International, Inc Washington Square Associates, Inc.

• In addition there are
• 7 additional SDVOSBs protégés that entered the
  program as an SDB
• 35 veteran-owned Protégés

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Nunn Perry Protégé Awardees Revenue growth
()(Cumulative)
Nunn-Perry Award Year
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Nunn Perry Protégé Awardees Employee growth
()(Cumulative)
Nunn-Perry Award Year
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SBIR-STTRProgram Eligibility Criteria

• SBIR
• Organized for- profit U.S. business, located in
  the US
• At least 51 U.S.- owned by individuals and
  independently operated
• 500 or fewer employees
• Principal Investigators primary employment with
  small business during project
• STTR
• Formal Cooperative RD Effort (Minimum 40 by
  small business, 30 by U.S. research institution)
• U.S. Non-profit Research Institution (College or
  University other RD center)
• Intellectual Property Agreement - Allocation of
  Rights in IP and Rights to Carry out Follow-on
  RD and Commercialization

Broad purpose Ensure small businesses receive
share of federal RD and leverage the unique
innovative character of small business
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SBIR/STTR Program Structure
SBIR/STTR Funds
SBIR/STTR Does Not Fund

• Phase III Commercialization in Military and/or
  Private Sector
• Sale of product or service
• Additional RD of technology
• Manufacturing/production start-up
• Marketing start-up/marketing
• Training workforce to manufacture or sell new
  products

• Phase I Project Feasibility
• Generally 6 months, not exceeding 100,000
• Phase II Project Development to Prototype
• Generally 2 years, not exceeding 750,000

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Key Technology Areas Focus of SBIR Investments
Number of Topics
Source SBIR STTR solicitations, FY02-FY06
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SBIR Resource Centerwww.dodsbir.net
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DoD Office of Small Business Programs (703)
604-0157 www.acq.osd.mil/osbp DoD Mentor-Protégé
Program www.acq.osd/sadbu/mentor_protege DoD
SBIR Program www.dodsbir.net
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• BACKUP SLIDES

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Type of MPP Agreements

• Direct Reimbursed MP Agreements
• Direct Reimbursement of cost of developmental
  assistance
• Identify Specific Contract Vehicle/Contracting
  Officer Endorsement
• Minimum of 50 Technical Transfer
• Required use of an HBCU/MI/SBDC/PTAC
• Direct cost reimbursement of allowable costs
  outlined in Appendix I, including
• Direct labor costs (for assistance by Mentor firm
  employees)
• Assistance provided by HBCUs/MIs/SBDCs/PTACs
• Other costs
• Detailed Cost Breakdown
• Military Services/Other Defense Agencies may have
  additional requirements
• Military Services/Other Defense Agencies Approval

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Type of Agreements

• Credit MP Agreements
• Credit toward SDB subcontracting goals
• No Military Service or Other Defense Agency
  approval required
• More focused on business infrastructure/business
  development
• Costs incurred under Credit Agreement
• May be applied (in the following
  multiples)towards the SDB subcontracting goal
  under any Federal Agency Subcontracting plan
  (FAR 19.703)
• 4x for assistance provided by HBCUs/MIs/SBDCs/PTAC
  s
• 3x for assistance by Mentor firm employees
• 2x other costs

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Protege Share of Total DoD Prime Contract Awards
FY2003-FY2006
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Protege Share of Prime Contract Awards to Small
Business FY2003-FY2006
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Protégé Share of Prime Contract Awards to Small
Disadvantaged Business FY2003-FY2006