Small Business Innovation Research (SBIR)

Science and Technology Directorate&

Domestic Nuclear Detection Office

Program Overview

Frank BarrosDHS SBIR Program AnalystS&T Directorate

27 May 2014

Homeland Security Missions

• Prevent Terrorism and Enhance Security

• Secure and Manage Our Borders

• Enforce and Administer Our Immigration Laws

• Safeguard and Secure Cyberspace

• Ensure Resilience to Disasters

• Mature and Strengthen the Homeland Security Enterprise

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DHS: Percent of Total Budget Authority by Organization

CBP

USCG

TSA

FEMA

ICE

FEMA GrantsUSCIS

NPPD USSS

~ $56.959B in FY2014across all organizations

Percent of Total Budget Authority by Organization, FY2014 President’s Budget

Customs and Border Protection (CBP) 22%

U.S. Coast Guard (USCG) 16%

Federal Emergency Management Agency (FEMA)

17%

Transportation Security Administration (TSA) 12%

Immigration and Customs Enforcement (ICE) 9%

FEMA Grants 5%

U.S. Citizenship and Immigration Services(USCIS)

5%

National Protection and Programs Directorate (NPPD)

4%

U.S. Secret Service (USSS) 3%

Science and Technology Directorate (S&T) 3%

Domestic Nuclear Detection Office (DNDO) 1%

Department Operations (Dept. Ops) 2%

Federal Law Enforcement TrainingCenter (FLETC);Office of Inspector General (OIG); andOffice of Health Affairs (OHA)

1%

Analysis and Operations (A&O) 1%

All others

S&TDNDO

Source: Budget-in-Brief Fiscal Year 2014http://www.dhs.gov

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A Day in the Life of Homeland Security …

AIR Pre-Screen 2 million passengers before they fly into, out of, within, or over the U.S.

Screen 1.8 million passengers and their checked baggage for explosives and prohibited items at 448 airports before they board aircraft

Perform 200 inspections of air carriers and airport infrastructure

SEA Patrol 3.4 million square miles of U.S. waterways Seize 19,040 pounds of drugs at/near U.S. port 448 airports before they

board aircraft of entry Lead 100+ waterborne patrols near maritime critical infrastructure and key

resources Conduct 54 search and rescue cases

… A Day in the Life of Homeland Security

LAND

Screen 100% of cargo and vehicles entering the U.S. from Canada and Mexico

Naturalize 3,200 new U.S. citizens

Verify the identities of 109,000+ applicants for visas or border-crossing cards

Train 350 members of law enforcement, faith-based, academic, and private sector communities to respond to active shooter scenarios

Seize $500,000 in counterfeit U.S. currency before it is introduced into circulation

Canada

Mexico

Process one million, travelers entering the U.S. by air,

sea, and land

… A Day in the Life of Homeland Security

LAND

Train: 5,880+ federal, state, local, tribal, and territorial

emergency management and response personnel 2,100+ officers and agents from 90+ federal

agencies, as well as 125+ state, local, rural, tribal, territorial, and international officers and agents

94 stakeholders from critical infrastructure sectors to identify, mitigate, and respond to cyber attacks

Provide $3.7 million in federal disaster grants to individuals and households, following presidentially-declared disaster declarations

Engage the public every day through “If You See Something, Say Something”

Provide Secret Service protection for an average of 30 U.S. government officials and their families

… A Day in the Life of Homeland Security

CYBER Prevent $6.8 million in potential losses through cyber crime investigations Respond to 70 cybersecurity incidents per month while issuing warnings

for each Issue 20+ actionable alerts for public and private sector to protect their

systems

Data on the “A Day in the Life of Homeland Security” slides is approximate and represents daily averages based on annual Department-wide statistics. “If You See Something Say Something TM” used with permission by the New York Metropolitan Transportation Authority (MTA).

SBIR/STTR Participating Agencies (~$2.3B FY13)

DOD SBIR/STTRHHS SBIR/STTRDOE SBIR/STTRNSF SBIR/STTRNASA SBIR/STTRUSDA SBIRDHS SBIRED SBIRDOT SBIRDOC SBIREPA SBIR

0

5

10

15

20

25

30

35

40

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

DHS SBIR Budget

S&T DNDO

$ in

mill

ions

Note: FY06 includes $3.2M STTR funds7

DHS Components

with SBIR Programs

Organization chart available at: http://www.dhs.gov/xlibrary/assets/dhs-orgchart.pdfLast Updated on: April 10, 2013

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DNDO and its Directorates are oriented towards addressing key mission areas while meeting the functional objectives

outlined in its founding Presidential Directive.

DNDO Organization

DHS DNDO

Chief of StaffRed Teaming & Net Assessments

National Technical Nuclear Forensics CenterOperations Support

Architecture & PlansTransformational &

Applied ResearchSystems Engineering &

EvaluationProduct Acquisition &

Deployment

Office of the Director

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HSARPA Technical Divisions

Borders and Maritime Security Division (BMD) - Prevent contraband, criminals and terrorists from entering the United States while permitting the lawful flow of commerce and visitors

Chemical/Biological Defense Division (CBD) – Detect and protect against, respond to, and recover from potential biological or chemical events

Cyber Security Division (CSD) - Create a safe, secure and resilient cyber environment

Explosives Division (EXD) - Detect, prevent and mitigate explosives attacks against people and infrastructure

Resilient Systems Division (RSD) - Identify and analyze threats, enhance societal resilience, and integrate human capabilities in technology development. Strengthen situational awareness, emergency response capabilities, and critical infrastructure protection

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DHS SBIR – A Three-Phase Program

Phase IScientific and

Technical Feasibility/Study

Funding: $100 K (S&T SBIR); $150 K (DNDO SBIR) Duration: NTE 6 months 33% may be outsourced Up to an additional $5,000 per year may be proposed for

Technical Assistance

Phase IIFull Research/R&D

Prototype Demonstration

Funding: $750K (S&T SBIR); $1 M (DNDO SBIR) Duration: NTE 24 months, generally 50% may be outsourced Up to an additional $5,000 per year may be proposed for

Technical Assistance Potential for additional $250,000 for Phase IIB Cost match potential

Phase IIICommercialization

Stage

Funding: private or non-SBIR government sources. No limit. Duration: No time limit Size standards do not apply For work that derives from, furthers the Phase I/Phase II

effort, or brings to conclusion Sole-sourced; competition determined in Phase I

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DHS SBIR Phase IData* from 26 Competitions through FY14.1

AK4/1

NV26/5 UT

32/8

ID8/0

MT9/2

WY2/0

ND2/0

SD4/1

NE7/1

KS9/1

AR4/0

LA20/2

SC10/1

WV11/1

IA4/0

WI16/2

PR 3/0

WA60/12

OR26/6

CA679/126

AZ59/12 NM

50/7

CO82/15

TX168/26

OK13/4

MO20/3

MN47/7

IL58/7

ME15/2

NY123/31MI

103/14

IN45/5

PA77/11OH

63/2KY

14/1

TN 22/1

MS9/0

AL74/14

GA43/3

FL121/17

NC 35/5

VA306/50

NH 33/6MA 383/89RI 8/1CT 56/9NJ 86/8DE 16/0MD 218/27DC 6/0

HI22/4

Total Phase I Submissions/Awards

3,321/551

VT 10/1

*Includes STTR data

Submissions from 50 states, plus DC and Puerto Rico

Awards in 43 states 12

Component Technical Gap

Con Ops APEX STRAS End-User

BAA SBIR

Short Term Innovative Longer term

Open Market

Government Market

Incremental improvement

Government Market

Alternative Market

iCorps

TDMI

JIFX / EDGE

GTSC / AutoHarvestShark Tank

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DHS SBIR Historical Conversion Rates, FY04 – Present

~ 17% of the 3,321 Phase I submissions received awards

Then, ~ 38% of Phase I awards received a Phase II award

And ~ 35% of Phase II projects receivedPhase III funding ~ $131M (includes DHS internal R&D funds; funding from other government agencies; product sales and private investments)

DHS SBIR is a highly competitive process;award recipients are moving towards commercialization.

Phase I Phase II Phase IIICommercialization

0

100

200

300

400

500

600551

210

74Num

ber o

f Pro

ject

s

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Statistics on Small Business Special DataPe

rcen

tage

0%5%

10%15%20%25%

Women OwnedSBC

Socially &Economically

DisadvantagedSBC

HUBZoneCertified SBC

22%

14%9%

16%

10%4%

Proposals Submitted Proposals Awarded

Phase I Data: 4.2 through 14.1

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DHS SBIR: Treated as a Federal Procurement Subject to the Federal Acquisition Regulations (FARs)

• Topics are determined by the government

Announcements and solicitations published in FedBizOpps

Federal employee review panels, source selection authority

Firm-fixed price contracts for Phase I and sometimes Phase II contracts

Cost plus fixed fee Phase II contracts subject to a DCAA audit

DHS issues contracts, not grants, for its SBIR awards

•No more Phase II invitations

•Companies that have received a Phase I award are eligible to submit a Phase II proposal.

•A second (follow-on) Phase II

•Phase II-CRPP – getting over the hump; potentially up to $300,000 (this is not cost-match)

•Technical/commercialization assistance

You now make the decision as to whether your Phase I progress is such that you want to spend the effort to submit a competitive Phase II proposal.

Phase II Proposals (Reauthorization Change)

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• Cost Plus Contracts ($750K up to 24 months)• Audits required prior to award of Phase II cost-plus and fixed-price

contracts• Probably will be performed by Defense Contract Audit Agency

– http://www.dcaa.mil/• Determine SBC can properly track and record appropriate costs• Several inexpensive, user-friendly commercial products are normally

acceptable• The audit has been the long tent pole in DHS Phase II awards thus

far

Contracts and Audits

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• Allows small businesses to seek additional funding for Phase II projects from non-SBIR sources

• Minimum of $100,000 to maximum of $500,000 of outside funding• Matched by DHS SBIR up to $250,000 in a 1:2 ratio• Example: $500,000 of outside funding may generate an additional

$250,000– DHS funding = $750,000 (Phase II funding) + $250,000 (matched funds)– Outside funding = $500,000– Total project funding = $1,500,000

• Additional funds require additional scope – need to either add R&D on SBIR contract or other development and commercialization activities (or some of both)

• Cost match is a motivator for, and an indicator of, commercial potential

Cost Match Feature

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The purpose (of the Cost Match feature) is to focus SBIR funding on those projects that are most likely to be developed into viable new products that DHS and others will buy and that will thereby make a major contribution to homeland security and/or economic capabilities.

In other words, the DHS cost match portion is not automatic.

Cost Match (continued)

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21For Official Use Only (FOUO)

6 questions• First product that this technology will go to - DHS operational component, other

government, open market• Your customers – (why does the market need this, market size, market timing)

and your competition – are there comparable technologies already on the market, who developed them and what is their market, how will they react to your entry, what will be your advantage (value proposition)

• Your resources – money (do you have it, do you need to look for it and if so how and where)

• Your company capability – management team, technical team, partners, marketing expertise

• Your IP strategy – is there any, how will it be protected (no lender or investor will touch you if there is a shadow of a doubt on your IP)

• Your manufacturing capability – manufacturing and distribution capability

Commercialization Plan

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• What are you trying to do

• What is current practice and what are the limitations

• What is new in your approach

• Who cares

• If successful, what difference will it make, and how will that difference be measured

• Risks and payoffs

• How much will it cost

• How long will it take

• What are the milestones along the way and how will they be measured

Heilmeier’s Catechism

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• If you are selected to receive a Phase II award, what kind of help can you expect from the DHS SBIR Program? Commercialization Assistance Program funded by the DHS SBIR

Program(commercialization workshop and targeted technology assessment and one-on-one mentoring with Dawnbreaker)

Phase II-CRPP award (up to $300,000)DHS iCorpsDHS Shark Tank Phase III award using a mixture of government (non-SBIR) and private

fundsDiscretionary technical assistance (JIFX/RELIEF,MEP, AutoHarvest,

ASFHS, GTS Coalition, RTI, and others). Must be included as an integral part of the proposal

Transitioning to Commercialization

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Key Web Sites DHS SBIR Points of Contact

Key Web Siteso www.dhs.gov

o http://www.dhs.gov/how-do-i/do-business-dhs

S&T DirectorateElissa “Lisa” SobolewskiSBIR Program Directorelissa.sobolewski@hq.dhs.gov202-254-6768

Francis “Frank” BarrosSBIR Program Analystfrancis.barros@hq.dhs.gov202-254-6966

Program email and website: stsbir.program@hq.dhs.govhttps://sbir2.st.dhs.gov

SBIR Help Desk:dhssbir@reisystems.com, 703-480-7676

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Questions?