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1
Team Submarine
SBIR Program Perspective
Richard McNamaraNDIA RMC SBC Workshop
July 1, 2010
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Team Submarine
Vision:Remain the Leader in the Development and Implementation of Innovative Modernization, Acquisition, and Fleet Support Solutions for the Submarine Community.
Mission:Keep America’s Navy #1 in the World by Developing, Acquiring, Modernizing, and Maintaining the World’s Most Capable and Cost-Effective Submarines and Undersea Systems.
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Small Business Premise/Approach
• Premise:– Small business, by its nature, offers Innovation, Agility
and Cost Advantages to Naval Acquisition Programs challenged with affordable and timely development of complex systems
• Approach:– Team Submarine leverages the U.S. Government’s
Small Business Innovation Research (SBIR) Program to access this cache of resourceful businesses and melds the successful companies into our acquisition business model
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PEO SUB and Small Business
•• PEO SUB has a variety of methods for PEO SUB has a variety of methods for contracting with small businessescontracting with small businesses– Small Business Innovative Research (SBIR) Program– Active participant in the Small Business Technology
Transfer Program– Incentivizes contracts to include small business
participation – Host outreach conferences and programs – Advocates for small business outside of NAVSEA – Advertises success stories
PEO-SUB supports small business with a multifaceted approach.
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Team Submarine Approach
• Solicit topics from overall Team Submarine enterprise– Allows small programs to leverage the major
programs (VIRGINIA Class and OHIO Replacement) within Team Submarine
– Utilize Submarine Technology (SUBTECH) Integrated Product Teams to prioritize topics based on current fleet priorities
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PEO SUB SBIR Program History
Since 1988Phase III Awards • PEO SUB has been active in
the SBIR Program since 1991• To Date:
–– 438 contracts awarded to 170 438 contracts awarded to 170 companiescompanies
•• 204 Phase I and II topics204 Phase I and II topics–– Over $1 B in Phase III work Over $1 B in Phase III work
generatedgenerated• Currently
–– 14 companies with Phase III 14 companies with Phase III SBIR contractsSBIR contracts
$1.4 B
$1.6 B
PEO SUB isopen for small business
NAVSEATeam Sub
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Bottom Line
• SBIR Program Offers: – Free funding to Program Managers– Opportunity for Small Business to demonstrate their
capabilities– A unique acquisition dimension which allows Sole
Source follow-on contracts deriving from the SBIR work
To Help Big & Small Programs From Cradle to Grave
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Navy Customers Must Plan For Success
• I Discovered:– P.M.s are surprised when SBIR is successful– Funding & Contracts always behind
• Funding Takes 2+ years to catch up• Contracts take 1+ years to put in place
• Therefore:– A technology insertion funding line established
• Funds SBIRs and other improvements• RDT&E based• OPN dimension
– Developed Contract Templates• TI Based• All colors of funding• Multiple P.M.s can use
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Commercialization Pilot Program
• Pilot Program Specifically Addresses– The problem of funding
• Phase 2 Expansion• Bridges Gap From Phase 2 Phase 3
– Works well recycling Phase II topics
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PEO SUB Provides Broad AP Coverage
•• Covers all Team Sub SBIR ContractsCovers all Team Sub SBIR Contracts
•• Available to all PEO SUB Program Available to all PEO SUB Program OfficesOffices
•• Updated YearlyUpdated Yearly
•• Recognition Some (not all) will go to Recognition Some (not all) will go to Phase IIIPhase III
Enables:• Streamlines Phase III Process • Contract Convenience
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Benefit of SBIR
• Risk reduction• Lower cost• More sophisticated software• Find Small Businesses with niche• Understand program requirements/ needs• Continuous competion
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Plan for Success
Technology Insertion andmodernization budgets
• Develop once use many places• Instant market for SBIR
products/processes
CCSMDarlingtonSCS C4I & IM&M Technology Combined Operations Wide Area NetworkPlanning SystemsGCCS Development & COTS ApplicationsDSRAdvanced Information SystemsSoftware Migration Legacy TrainerPhotonics Mast Workstation
STERN / PROPULSIONMSIArray Improvement
WEAPON LAUNCH, STOWAGE & HANDLINGProgenyTools for VME InteractiveAcoustic Analysis ProcessMulti Tube Weapon SimulatorCommon Weapon Launcher
PRESSURE HULLTKCInnovative ModelingCompudriveElectromechanical Actuator and COMT
AUXILIARY MACHINERY ROOMNoesisHigh Performance Brushes Technology
ProgenyAudio Signals Active Emissions Information AssuranceAN/WLR-1 AI&R Manning ReductionTrident SystemsMobile Computing for Submarine ApplicationsTCNOA Concepts
Acquisition Coverage• Blanket coverage by
Major Ship programs• Local coverage by PMOs
Leadership Commitment• PEO leadership recognizes
value• SBIR is centerpiece of SB
program in TSUB
VIRGINIA Class Submarine
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Innovation: Acoustic – Rapid COTS Insertion Program
Rapid Technology Insertion Results:
– Lowered detection time by 80%
– Increased hold time by 25%
– Reduced false alarms by 40%
– 10 times the processing power
– 89% decrease in per-gigaflop costs
Enhanced Competition Spurs Innovation, Reduces CostEnhanced Competition Spurs Innovation, Reduces Cost
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Timeliness: Implosion Effort
• Using SBIR to shorten a cycle, provides options– Needed empirical implosion data but none existed– Contracted with Small Business in March 2004 and
conducted implosion tests summer 2006– Contract ends April 2007
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Competition: AN/WLY-1 Acoustic Intercept and Countermeasure System
• Large Prime: contracted for ~$100 million over 10 years for R&D– $4 million per shipset– Did not meet specification
• Progeny Systems Corporation: contracted <$8 million over two years for R&D – $2 million per shipset
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Quality: Weapon Power Converters
• Small company supplied weapon power converters for the VIRGINIA Class Program– Used for supplying electricity to
torpedoes and TOMAHAWK Cruise Missiles
– Suffered high failure rate• DTI developed new converter
– Less expensive– Improved performance
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Thank You
For Listening
18
Backup
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Team Submarine Organization Chart
COMNAVSEA
SUBMEPPMr. T. Bassett
Executive Director(PEO SUB-B)Mr. J. EvansProgram Offices
• Strategic/Attack SubmarinesPMS 392 - CAPT K. Sault
• Advanced Undersea SystemsPMS 394 - CAPT G. Dunlap
ASN (RD&A)Program Executive Office,
Submarines (PEO-SUB)RADM W. Hilarides
COMNAVSEA
Undersea Technology (SEA 073)
RDML D. Johnson
Executive Director(SEA 07B)
Mr. S. Schulze
Undersea Warfare Directorate (SEA 07)
RDML P. Brady
PEOSUB
SEA 07
Matrixto Both
Congressional Affairs
Business Planning & Oversight
Personnel Management
FinancialMgmt
Information Management
Technical Director(PEO SUB-TD)
Mr. D. Miskimens
FMSManagement
Acquisition Program Offices
• Submarine Acoustics SysPMS 401 - CAPT R. Nicklas
• Undersea WeaponsPMS 404 – CAPT T. Kearney
• Undersea Defensive Warfare SystemsPMS 415 – CAPT D. Knapp
• Sub Combat and WeaponsControlPMS 425 - CAPT D. Hahn
• Submarine Sensor Systems PMS 435 – CAPT C. Scofield
SEA 073B – Mr. J. SmithSEA 073R – CDR M. DouglassSEA 073RB – Mr. P. Tyler
COMNAVSEACommander, Naval
Undersea Warfare CenterRDML T. Wears
Technical Director, NUWCMr. D. McCormack
LEAN
Acquisition Program Offices
• OHIO Class SSBN ReplacementPMS 397 – CAPT D. Bishop
• VIRGINIA ClassPMS 450 – CAPT M. Jabaley
• International ProgramsMs. A. Birney
• Special Operating ForcesPMS 399 – CAPT D. Duryea
Submarine Matrix Support Division
• Submarine Training SystemSEA 07TR – Mr. C. Haines
• Logistics Mgmt Support SEA 07L – Mr. L. McGowan
• SUBSAFE/Quality Assurance SEA 07Q - CDR J. Szatkowski
• H,M&E Engineering MgmtPMS 392T - Mr. G. Gardner
• Warfare System EngineeringSEA 07W – Mr. S. Lose
20
Team Submarine Shipbuilding Portfolio
Missile CompartmentPropulsion Plant Fwd/Whole ShipMissile CompartmentPropulsion Plant Fwd/Whole Ship
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Team Submarine Combat & Electronic Systems Portfolio
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Getting to Phase 3
Planning for Success
Section 3
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In Summary
• Your Phase 1 & 2 SBIR Contracts Provides:– Small business ability to demonstrate their
capabilities– Understand program requirements/needs – PM opportunity to work with small business– Forum to build confidence between PM & small
business– Insight to Procurement Planning– An opportunity to “market” your product/ process
beyond the specific topic sponsor
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SBIR Rules
• Rules Allow:– A follow-on contract to be awarded to a SBIR
company for work that is a logical extension of or derivation from a product or process accomplished on a Phase 1, 2 or 3 SBIR Contract
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Innovative Products vs. Processes
• Innovative Products– You have to find someone to buy the product– You have to sell many units
• Innovative Processes– Applies to a variety of things– More likely to be successful in getting to
Phase III
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Using Topics
• Near Term Need for a Topic– Not likely to get a Phase I that matches– SBIR Program doesn’t satisfy the near term because
the process takes time, and the topic might not even get approved by DDR&E
– Topics needed to seed future• Utilize Topics in Process
– Recycle topics that don’t get a Phase II or III– Ability to obtain a Phase II contract within a few
months with SBIR or program funds
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Leverage the SBIR Program
Find Unused Phase I Topics• Match Possible Topics to
Existing Phase I Awards• Go from Topic/Idea Straight to
Phase II Contract • Reduce Topic Cycle by 18
Months• Gets Technology to Fleet Faster• Rewards Good Performers• Provides Quick Response to
PM’s NeedsParticular Value
• Risk Reduction Effort• Defer Program Cost to SBIR• Rapidly Establish Competition
Where There is None
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SBIR Basics&
Mechanics
Section 2
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SBIR Program Description
• Continuing U.S. Government Program Authorized by Congress since 1982
• Congressional set aside for Small Business– 2.5% of RDT&E Budgets dedicated and separately administered– Less that 500 people– For-profit companies only
• Navy SBIR is a Mission Oriented RDT&E Program– High priority topics published on DoD solicitation
• Provides small business an opportunity to participate in meeting Navy/DoD needs– Stimulates technological innovation
• Provides direct transition path to acquisition product lines– Phase I: Feasibility Study– Phase II: Engineering development– Phase III:Demonstration/Implementation
• Incentive to commercialize their technology in the private sector
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SBIR Dollar Flow
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SBIR Process Mechanics
• Topic Guidance– Any topic viable – usually related to program needs– Needs to pass “acceptable for using RDT&E funds, about
Technology, and shows Innovation” hurdles
• Topic Release– 3 Solicitation each year– Topics have government Technical Point of Contact (TPOC)
information• Contact Encouraged to Understand Topic• Stops 30 days prior to proposal submission• All topics listed in on-line web page with search engines
– Proposals & Evaluation• All digital submissions & evals• Delivered to evaluation “Desktop”• Program Manager & Technical Evaluations• PEO level decision for award
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SBIR Program Timeline
$70k$70k
$600k
Phase II
Full Scale Development
$150k
Ph II Option
Phase I
Phase III
$30k$30k
Ph I Option
May 09May 09 Nov 09Nov 09 May 2010May 2010 Nov 2010Nov 2010 May 2011May 2011 Nov 2011Nov 2011
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Description of 3 Phases
• Phase I - $80K Base with $70K Option– “Getting to Know You”– Assess ideas & Company Skills– Exercise Option to Write Phase 2 Proposal– 6 Months Duration
• Phase II - $600 Base with $150K Option– “Test Drive” the Company Management/Technical Skills– Develop a prototype
• Hardware, software, component, sample material, etc.– Assess Application Potential
• Phase III – Real Program Contract & Funding– Transition Point to Real Products/Processes– Statute/FAR dictate Sole Source Award
• Based on Successful Phase I & II Competition– Only 1 in 20 Phase I ever get to Phase III in Subs
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Description of 3 Phases (Cont)
Even though Phase 3 transition are rarer than weEven though Phase 3 transition are rarer than we’’d like, d like, some make that transitionsome make that transition…… how?how?
• Plan for Success at Phase II– Assign good technical oversight– Make Phase II produce a useable prototype
• Software modules for example– Make Primes “open” their design
• Early & often design disclosure• Competitive evaluation of products by navy & prime
– Determine if SBIR should be:• Direct Navy Contract, or• Subcontracted to Prime
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SBIR Financial Aspects
• SBIR “Seed Money”– 2½ % of Extramural R&D Funds
• Extramural = R&D funding to Industry (vice gov’t labs)• Only to be spent on SBIR Phase I & II Contracts• Only awarded through SBIR Topic Solicitation• Can fund SBIR Program ADMIN & Topic Costs
– FY2010 NAVSEA SBIR Funding - $90M• PEO SUB Portion Approaches $20M• Congress considering increase to 3.5% over 10 years
– SBIR is a Self Funded Program• Encourages Small Business participation in Big Business• No $$ limit on Phase III Sole Source Contracts