Commercialization Pilot Program (CPP)

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Commercialization Pilot Program (CPP)

• Jenny C. Servo
• Lyn Barnett
• DAWNBREAKER

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OUTLINE

• Background
• Navy CPP
• Tiger Team
• NAVAIR
• Air Force CPP
• Army CPP
• More to come

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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.

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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
  priority military requirements of such military
  department.

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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.

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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.'.

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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
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How will CPP effect you?

• Navys Implementation of CPP
• John Williams, Director
• SBIR, STTR, and T2 Programs

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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

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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

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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

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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.

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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

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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.

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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.

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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.

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NAVAIR CPP Experiment

• Selecting and maturing companies and PEO
  relationships

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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 TE work in Phases II and III.

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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.

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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

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FY-07 NAVAIR CPP Selection Process
Phase IIs
Step (2)

• Quad charts reviewed by TPOC
• Mapped to PMAs.
• Topic transition assessment.
• TPOCs 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 SBIRs

• SBIR Portfolio Review
• All (2nd yr) Phase II Topics
• mapped to TPOCs PMAs.
• 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 (A)
AIR 1.0
PEO (W)
JSF
PEO (T)
Step (3)

• PMA
• Endorsed / Ranked Topics
• Briefed to PEOs (if Req)
• PEOs
• 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
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Other Unique Items

• SBIR Phase II Enhancements
• Second Phase II awards
• Indefinite Delivery - Indefinite Quantity (IDIQ)
  awards

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Air Force CPP Initiative

• Richard Flake, CPP
• 937-255-0706, richard.flake_at_wpafb.af.mil

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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

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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

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The Army CPP

• May, 2007

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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

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Implications of CPP

• for you?

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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

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• Other military departments will also have a CPP
  initiative in a relatively short period of time
• The programs will continue to evolve

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Questions?