SBIR at the Department of Defense (2014) / Chapter Skim
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2 SBIR Awards at the Department of Defense
2 SBIR Awards at the Department of Defense
Pages 25-56
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From page 25... ...
. It reviews Phase I and Phase II awards separately, and discusses each in terms of the distribution of awards by component, by state, and by company as well as describes the participation of women and minorities.
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From page 26... ...
The steady level of awards is also reflected in Phase II funding, which is summarized in Figure 2-2. DoD spent an average of $195 million per year on Phase I awards during the study period.
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From page 27... ...
TABLE 2-1 Phase I SBIR Awards by Component, FY2002-2011 Fiscal Year Reported Component 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total AF 427 449 527 608 577 517 485 602 501 480 5,173 ARMY 282 352 356 705 352 312 305 334 434 301 3,733 CBD 34 25 27 21 17 19 14 31 21 16 225 DARPA 120 90 155 74 25 108 108 288 107 68 1,143 DHP 0 0 0 0 0 0 0 0 0 49 49 DLA 0 0 0 0 0 11 0 9 6 7 33 DMEA 0 0 0 0 0 0 5 6 4 0 15 DTRA 23 7 0 40 23 13 13 12 21 17 169 MDA 522 454 315 240 174 165 159 150 126 122 2,427 NAVY 578 550 585 466 446 567 566 414 675 582 5,429 NGA 4 2 2 2 2 0 4 0 0 4 20 OSD 128 156 83 163 197 242 155 161 144 160 1,589 SOCOM 44 28 25 25 49 28 11 14 23 16 263 Total 2,162 2,113 2,075 2,344 1,862 1,982 1,825 2,021 2,062 1,822 20,268 SOURCE: Data provided by DoD, August 2013. Overall, Air Force (AF)
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From page 28... ...
Based on available data for 2011, the number of applications declined by 15 percent over the study period, peaking at 16,000 in FY2004 and reaching the lowest point of slightly more than 10,000 in FY2011 (see Figure 2-3)
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From page 29... ...
Companies may regard the likelihood of long-term success via the Phase I/Phase II/Phase III pathway as being too remote to justify the effort; they may instead focus their efforts elsewhere. Efforts by DoD to make sure that topics are tightly linked to acquisitions needed may be reducing the number of more research oriented applications Overly specific topics may exclude some companies from participating.
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From page 30... ...
Distribution of Phase I SBIR Awards by State A number of factors affect the shares of SBIR awards by the states, including the overall population of the state, the strength of their science and engineering workforce, and their propensity to apply for SBIR awards. For FY2002-2011, five states collectively received 52 percent of Phase I awards, down slightly from the time period analyzed in the previous National Research Council (NRC)
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From page 31... ...
The Government Accountability Office (GAO) has noted that the distribution of SBIR awards tends to follow the general distribution of government science and engineering awards, which in turn tends to follow the distribution of science and engineering talent.7 Several indicators have been used to normalize state populations for these purposes.
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From page 32... ...
The reasons for the variability are not clear, and are likely rooted in the complex differences in state industry focus, the locations of key firms, as well as other potential variables. Phase I SBIR Awards by Company Table 2-3 summarizes Phase I awards for the top 20 awardees during the study period.
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From page 33... ...
. The number of applications received from WOSBs remained largely flat over the study period (see Figure 2-8)
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From page 34... ...
34 SBIR AT THE DEPARTMENT OF DEFENSE TABLE 2-2 Phase I SBIR Awards and Applications by State, 2002-2011 Applications Awards State Total Total Proposal-to-Award Percentage AK 38 3 7.89 AL 1,769 275 15.55 AR 135 25 18.52 AZ 1,426 203 14.24 CA 12,504 2,031 16.24 CO 2,210 411 18.60 CT 891 143 16.05 DC 94 13 13.83 DE 290 38 13.10 FL 2,246 326 14.51 GA 780 89 11.41 HI 414 56 13.53 IA 70 15 21.43 ID 162 19 11.73 IL 887 166 18.71 IN 542 79 14.58 KS 101 9 8.91 KY 158 13 8.23 LA 155 15 9.68 MA 6,791 1,261 18.57 MD 3,238 449 13.87 ME 110 14 12.73 MI 1,660 216 13.01 MN 675 92 13.63 MO 278 38 13.67 MS 95 11 11.58 MT 157 18 11.46 NC 784 101 12.88 ND 51 3 5.88 NE 156 23 14.74 NH 623 164 26.32 NJ 1,650 240 14.55 NM 809 135 16.69 NV 225 30 13.33 NY 2,323 434 18.68 OH 2,550 432 16.94 OK 192 16 8.33 OR 355 58 16.34 PA 2,111 389 18.43 PR 5 0 0.00 RI 201 36 17.91 SC 177 21 11.86 SD 47 3 6.38 TN 347 54 15.56
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From page 35... ...
Physical Optics 451 42,652,863 Intelligent Automation 297 27,904,077 Luna Innovations 232 21,917,054 Physical Sciences 227 21,364,799 Charles River Analytics 210 21,005,630 Creare 193 18,935,632 CFD Research 165 15,730,878 Aptima 163 16,007,675 Triton Systems 153 14,407,979 Toyon Research 124 12,153,649 Agiltron 124 11,743,975 Lynntech 117 11,061,313 Impact Technologies 115 11,483,998 Infoscitex 115 10,984,018 Foster-Miller 107 9,424,013 Texas Research Institute Austin 106 9,558,590 Progeny Systems 96 8,278,168 Nanosonic 90 8,739,854 Materials & Electrochemical Research 90 8,235,150 TDA Research 89 8,256,214 KaZak Composites 87 7,397,216 Total (20 top companies) 3,351 317,242,745 All Phase I awards 23,224 2,222,884,156 Top 20 companies (percent of total)
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From page 36... ...
16 350 WOSB Percent Share of Phase I SBIR Awards Number of Phase I SBIR Awards to WOSB 14 300 12 250 10 200 8 150 6 100 4 2 50 0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Fiscal Year Reported Number of Phase I SBIR Awards to WOSB WOSB Percent Share of Phase I SBIR Awards FIGURE 2-9 Phase I SBIR awards and award share for woman-owned small businesses (WOSB)
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From page 37... ...
SOURCE: DoD awards and applications database. 350 Number of Phase I SBIR Awards to WOSB 300 250 200 150 100 50 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Fiscal Year Reported Other WOSB Big 3 FIGURE 2-11 Distribution of Phase I SBIR awards among woman-owned small businesses (WOSB)
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From page 38... ...
. This decline mirrors the overall decline in applications experienced at DoD during the study period (see Figure 2-13)
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From page 39... ...
, FY2002-2011. SOURCE: DoD awards and applications database.
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From page 40... ...
Number and Size of Phase II SBIR Awards The overall number of Phase II awards exhibits no substantial longterm trend over the study period at about 1,000 awards annually (see Figure 215)
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From page 41... ...
As with all agencies, SBA policy guidance does provide DoD with some flexibility to fund Phase II awards beyond the standard amounts. Table 2-6 shows, however, that this flexibility has been rarely used: about 10 percent of awards were $2 million or more, and about 1 percent were $4 million or more.
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From page 42... ...
1,200 Phase II SBIR Funding (Millions of Dollars) 1,000 800 600 400 200 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Fiscal Year Reported FIGURE 2-16 Phase II SBIR funding, FY2002-2011.
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From page 43... ...
Phase II SBIR Applications and Success Rates Until fairly recently, Phase II applications required an invitation from DoD, so only projects deemed appropriate for Phase II by the Technical Point of Contact (TPOC) and the decision-making officers at the various components were eligible for Phase II funding.
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From page 44... ...
. 2,000 1,800 Number of Phase II SBIR ApplicaƟons 1,600 1,400 OSD 1,200 CBD SOCOM 1,000 DTRA MDA 800 DARPA Air Force 600 Navy Army 400 200 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Fiscal Year Reported FIGURE 2-18 Phase II SBIR applications by component, FY2002-2011.
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From page 45... ...
SOURCE: DoD awards and applications database. Distribution of Phase II SBIR Awards by State As with Phase I awards, companies in some states have a consistently stronger record in receiving Phase II awards.
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From page 46... ...
Both Physical Optics and Intelligent Automation -- the top two awardees -- show conversion rates that are far below the average. Phase II SBIR Award Demographics Woman-owned Small Businesses As with SBIR Phase I, the number of Phase II applications received from WOSBs remained largely flat across the study period, averaging 12.5
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From page 47... ...
. On average, MOSBs accounted for 7.8 percent of Phase II SBIR awards, with a peak of 11.5 percent in 2008 to a known low of 6 percent in 2010.
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From page 48... ...
26 companies are included, as 2 companies were awarded 32 Phase II awards. SOURCE: DoD awards database.
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From page 49... ...
16 14 12 WOSB Percent Share 10 8 6 4 2 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Fiscal Year Reported WOSB Share of Phase I Awards WOSB Share of Phase II Awards FIGURE 2-22 Woman-owned small business (WOSB) shares of Phase I and Phase II SBIR awards, FY2002-2011.
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From page 50... ...
14 MOSB Percent Share of Phase II SBIR ApplicaƟons 200 Number of MOSB Phase II SBIR ApplicaƟons 180 12 160 10 140 8 120 100 6 80 4 60 40 2 20 0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Fiscal Year Reported MOSB Percent Share of Phase II SBIR ApplicaƟons Number of MOSB Phase II SBIR ApplicaƟons FIGURE 2-24 Phase II SBIR applications by minority-owned small businesses (MOSB)
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From page 51... ...
This may be explained by changes in the national rate of small company formation, which has declined over the period.13 In addition, the number of companies with program experience continues to grow, and the pool of qualified companies that have not received an award may not be increasing, at least not at a rate sufficient to maintain the percentage. It is worth noting that new companies receive a higher percentage of Phase II awards than Phase I, which suggests that the quality of proposals from new companies is higher.
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From page 52... ...
It is worth noting that the companies winning the most Phase I awards almost uniformly had below average Phase II conversion rates, as discussed above. TABLE 2-11 Companies Receiving Phase II SBIR Award for First Time, by Fiscal Year Fiscal Year Reported Number of 1st Phase II SBIR/STTR Percentage of All Companies 2002 170 36.0 2003 304 40.3 2004 299 36.1 2005 260 33.7 2006 310 35.7 2007 175 26.8 2008 223 29.8 2009 183 27.0 2010 202 26.5 2011 158 25.2 SOURCE: DoD special tabulation
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From page 53... ...
TABLE ANNEX 2-1 Phase I SBIR/STTR Awards by State, State Population, and Scientists and Engineers in State Workforce Number of State Percentage of Scientists Phase I Population and Engineers Number of Phase I Awards per in Millions in State Workforce SBIR Awards (2002- Million in State (2012)
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From page 54... ...
SOURCE: DoD awards database; NSF Science and Engineering Indicators 2012, table 834; U.S. Census.
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From page 55... ...
CHAPTER 2 55 TABLE ANNEX 2-2 Phase I-Phase II Conversion Success Rate, by State (1999-2012) State Phase I-Phase II Conversion Success Rate (Percent)
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From page 56... ...
SOURCE: DoD awards database.
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