Information Briefing and Reception. Chris Van Metre President, SCRA Applied R&D December 4, 2014

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1 Information Briefing and Reception Chris Van Metre President, SCRA Applied R&D December 4, 2014

2 Overview OT Consortium Business Model Section 845 Other Transactions Agreement DoD Spectrum Enterprise (DSE) National Spectrum Consortium (NSC) Membership Q&A OT specific information is derived from OUSD (AT&L) Other Transactions (OT) Guide for Prototype Projects of January

3 Other Transactions (OT) Consortium Business Model 3

4 What is it? An enterprise partnership between the Government and a consortium of technology developers/providers in a specific domain where. The Government partner can be a single sponsor (program executive officer) or multiple sponsors coordinated through a lead agency The Consortium partner s members can include for-profit, not-forprofit and/or non-profit companies, universities and other academic research organizations The parties are connected through a binding contractual instrument called an Other Transaction that operates outside the normal Federal Acquisition Regulations (FAR) 4

5 What Does It Do? The Consortium business model is designed to facilitate mutually beneficial collaborative research and development activities between the Government and industry/academia. Two distinct agreement models exist, depending on the maturity of the R&D efforts being contemplated: OT for Research: for performing basic, applied, advanced research and development tasks OT for Prototypes: for prototype projects that are directly relevant to weapons or weapon systems proposed to be acquired or developed by the DoD (Note: this authority has been extended beyond DoD to other departments and agencies) 5

6 Features and Benefits FEATURES Open Membership Streamlined Acquisition Collaborative Strategic Planning Targeted Research Investment Non-traditional Entity Participation Resource Leveraging Single-Point Contracting Teaming Opportunity BENEFITS Provides access to a broad range of potential solution providers (large and small businesses, academia and non-traditional contractors) by establishing and maintaining low barriers to entry. Reduces the acquisition administrative lead times for development and fielding of prototype / pilot scale solutions without cumbersome restrictions imposed by FAR-based contracting. Permits Government and Consortium member collaboration in the development of technology roadmaps and strategic investment plans against which subsequent investments can be made. Enables Industry to align their Independent Research and Development resources with Government Border Security/ISR technology needs. Encourages participation by non-traditional sources who bring innovative technologies & solutions to both Government and Consortium members, but who do not have DCAA-approved cost accounting systems. Allows industry to apply cost sharing against a specific contracted effort and leverage Government and Consortium member resources. Reduces proposal preparation, contract award, and Congressional reporting burdens on both the Government and the Consortium. Fosters innovation in proposals by incentivizing traditional contractors to partner / team with small and non-traditional contractors 6

7 Concept of Operations Front End End User communicates capabilities shortfalls Government translates capabilities shortfalls into requirements Consortium Members (industry and academia) develop and submit technical concepts, and join with Government to vet technology readiness and applicability (which serve as critical inputs for Government planning and decision-making) Back End Government, through a single point contractor, solicits proposals from Consortium members on prioritized projects to mature, transition and/or integrate technology to produce prototype solutions Consortium Members dynamically form teams as appropriate to submit responses Government competitively selects teams best suited to perform the work under an OTA Consortium Members deliver solutions 7

8 Section 845 OT for Prototypes *derived from IACs OTA for Energy Industry Day, July 16, 2014 Legal Overview by Denise C. Scott, Chief, RDECOM ARDEC Legal Office, Picatinny Arsenal, NJ 8

9 OT for Prototypes Authority: Section 845 of National Defense Authorization Act of 1994 (PL ), amended by Section 804 of National Defense Authorization Act of 1997 (PL ) Principal focus: Provide access to innovative concepts / ideas / technologies from nontraditional sources (technology providers that previously have not done R&D business with the Government) Requirements on industry/academia participants: at least one non-traditional government contractor participating to a significant extent OR 33% cost share on all projects awarded by the Government 9

10 Key OT Terms Non-traditional Defense Contractor A nontraditional defense contractor means an entity that is not currently performing and has not performed, for at least one year prior to the date of application, any contract or subcontract for the Department of Defense that is subject to full coverage under the cost accounting standards prescribed pursuant to section 1502 of title 41 and the regulations implementing such section; Additional info regarding cost accounting standards can be found here: US/640560/file/69423/CAS%20Coverage%20and%20Disclosure%20Statement%20 Determination.pdf (Note that small business are exempt from CAS and are therefore considered a nontraditional.) Contribution of a Significant Extent or Significant Contribution by a non-traditional Defense Contractor could include: Supplying new key technology or products Accomplishing a significant amount of the effort Causing a material reduction in the cost or schedule, or increase in performance *Updated on 12/17/15 in accordance with legislation change 10

11 Scope OT prototype authority may be used to carry out projects that are directly relevant to weapons or weapon systems, including subsystems, components or technology. Prototype project scopes may include physical or virtual models to evaluate: Technical and/or manufacturing feasibility Military utility of a technology or process, concept, end item or system Performance of a technology or process, concept, end item or system The OT authority will not encompass: Policy Development Operational Concept Development Tactics, Techniques and Procedure (TTP) Development Low Rate Initial Production (quantities developed should be limited to that needed to meet objectives Consortium membership guidelines will be agreed upon by the Government and Consortium Guiding principle Low barriers to entry 11 11

12 How does an OTA differ from FAR? What does not apply under an OTA? Competition in Contracting Act Bayh-Dole and Rights in Technical Data Truth in Negotiations Act Contract Disputes Act Procurement Protest System Procurement Integrity Act Grants and Agreements Regulations (DODGARS) Relief from FAR and supplemental regulations Not required to comply with all of the FAR, DFAR, AFAR but Agreements Officer should consider FAR procedures and clauses along with commercial practices Flexibility to use best practices Costs reasonable, but still requires due diligence to award federal dollars Schedule and other requirements are enforceable Payment arrangements promote on-time performance 12

13 Section 845 OTA is For prototype projects that are directly relevant to weapons or weapon systems proposed to be acquired or developed by the DoD A legally binding instrument requiring at least one nontraditional defense contractor participating to a significant extent OR mandatory one third cost sharing An instrument that allows for negotiation of intellectual property and flexible payment provisions (payable milestones) Tailorable to fit a desired acquisition strategy Other Federal Sponsors (non DoD) can also use the vehicle 13

14 Section 845 OTA is not FAR procurement contract, grant or cooperative agreement For acquisition of production quantities, engineering services, construction, operations & maintenance activities Constrained by previous USG contract practices and conventions Subject to award protest (i.e., no protests allowed) Subject to mandatory cost accounting standards 14

15 DoD Spectrum Enterprise 15

16 DoD Spectrum Enterprise DoD Spectrum Community Overarching Agreement Section 845 Other Transaction National Spectrum Consortium (NSC) OASD, R&E Department of the Army Department of the Navy Department of the Air Force Special Operations Command DARPA DTRA NGA Other Agencies and Departments DSE Defense Contractors Small Businesses Academic Institutions Non Profit Organizations Not -for-profit Organizations Non-Traditional Defense Contractors 16

17 S&T Focus Areas The envisioned collaboration between the Government and Industry focuses on (but is not limited to) the following S&T areas for consideration: 1. Investments in Radar Commercial communications sharing technologies, targeted initially to the 3.5 GHz and 5 GHz bands 2. Investment in use of Millimeter Wave (MMW) and Free Space Optical (FSO) technologies for terrestrial and airground communications and C2/telemetry applications 3. Development and deployment of the Air/Maritime Training Instrumentation (AMTI) waveform 4. Investments in Dynamic Spectrum Access (DSA) and Frequency Reuse (FR) technologies for communications and radar systems 5. Investments in algorithms and approaches for improving spectrum situational awareness (SA) 6. Investments in improvements for modeling and simulation of the Electromagnetic Environment (EME) 7. Investments in Multiple Input, Multiple Output (MIMO) and other communication and radar waveform efficiency technologies 8. Interference tolerance and hardening technologies for communications and radar system 9. Investments in adaptive RF technologies 17

18 What DSE is A self sustaining business enterprise that allows the DoD Spectrum Community, industry and academia to work collaboratively in developing prototype solutions for earlier transition to System Development and Demonstration or Production Programs An enterprise that reduces acquisition lead time, cost and risk in a competitive environment in parallel with establishing FAR based System Development and Demonstration or Production Program contracts, which reduces significantly the overall time from R&D to fielding A way to leverage resources and assets within the U.S. Spectrum Technology Base (DoD, Industry, and Academia) A way to expand the U.S. Spectrum Technology Base by competitively engaging non traditional defense companies (primarily small businesses) possessing innovative ideas and technologies 18

19 What DSE is not Just another contract vehicle A way to get sole source contracts A way to avoid onerous Federal Acquisition Regulation requirements 19

20 Typical OT Consortia Model 20

21 National Spectrum Consortium Membership 21

22 Benefits of Membership Access: Networking opportunities with other industry and academia members, as well as government stakeholders, during annual membership meetings and various other conferences and forums Information: Affords greater visibility into Government needs and priorities; provides increased ability to leverage IR&D investments to meet those needs Market Expansion: Creates a channel for small companies and nontraditional suppliers to identify opportunities and establish customer relationships Speed: Operates through a flexible contracting vehicle capable of multiple taskings with a single set of terms and conditions Revenue: Minimizes cash flow challenges through rapid, single pointcontracting capability of the Consortium Management Firm (CMF) and advanced payments for approved projects from Government to CMF 22

23 Joining the Consortium Who Should Join? Any company, university, or research organization is eligible to join the consortium. Specific industry segments of interest include: Wireless technologies Radars and signal processing Electronic warfare Spectrum monitoring and sensing How to Join. The Articles of Collaboration and Membership Agreement and Application are available at Completed applications can be ed to Annual Membership Dues Annual dues: $1,500 for large businesses and $500 for all others (small businesses, universities, and non profits) Payable once an applicant company has been approved for membership by the consortium's governance body 23

24 Sets forth activities and relationships of the industry and academic members of the consortium Governance Costs associate with participation Assigns roles and responsibilities Establishes rules for relationships among members Single entry point Assigns in charge/focus for USG Of note Articles of Collaboration & Membership Agreement Government will review Articles of Collaboration but is not a party to them Government to consortium relationship is established through the OT agreement Clauses similar to OTA but also includes non OTA terms and conditions Consortium membership and governance is a consortium issue Government does not fund consortium operations 24 24

25 Consortium Success Elements of Successful Consortia Clearly understood governance / rules Consensus among consortium leadership Compromise among members Clear membership guidelines Robust participation/commitment by members Clarity of and open communications Clearly defined technology objectives Defined Focus point for USG 25 25

26 Questions? 26

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