Team 80 delves into the DLA SBIR objectives, eligibility requirements, application process, and more, providing valuable insights for small businesses looking to fuel innovation in defense logistics.
The Defense Logistics Agency’s Small Business Innovation Research (DLA SBIR) program is a competitive initiative designed to stimulate technological innovation among small businesses. It plays a pivotal role in meeting federal research and development needs, particularly in defense logistics. As part of the program, eligible businesses can submit proposals in response to DLA solicitations. Successful applicants receive funding to develop their ideas, potentially revolutionizing aspects of defense logistics while achieving commercial success.
Translating ground-breaking ideas into tangible success can often feel like a daunting task, particularly in a field as complex as defense technologies.
Answering the call is the Defense Logistics Agency’s (DLA) Small Business Innovation Research (SBIR) program. This robust initiative, designed specifically to empower small businesses like yours, offers a golden opportunity to contribute to the larger defense mission of the United States Department of Defense (DoD).
Yet, navigating the intricacies of this program can often feel akin to traversing a labyrinth. Fear not, for this comprehensive guide is your beacon, illuminating every step along your journey through the DLA’s SBIR program.
Here, we’ll delve into the program’s structure, objectives, eligibility requirements, application process, and more. Let’s turn your innovative ideas into reality, shaping the future of defense logistics.
Table of Contents
What federal agency is the DLA a part of?
What are the objectives of the Defense Logistics Agency SBIR program?
What are the eligibility requirements?
How do I apply for Defense Logistics Agency SBIR awards?
Can a small business submit more than one proposal to the DLA SBIR program?
Who are the DLA Program contacts?
What are the SBIR topics for the Defense Logistics Agency?
What is the DLA SBIR program?
The Defense Logistics Agency’s Small Business Innovation Research (SBIR) program is a highly competitive initiative, aimed at stimulating technological innovation, while simultaneously supporting scientific entrepreneurship among American small businesses. It recognizes the inventive power of small businesses and their unique capability to address government needs, all the while striving to achieve commercial potential.
But to fully grasp the SBIR program, it’s essential that you understand the role and function of the Defense Logistics Agency (DLA). The DLA is the United States’ largest logistics combat support agency, providing global logistics capabilities to the Army, Navy, Air Force, Marine Corps, Coast Guard, 11 combatant commands, and other federal agencies.
With headquarters in Fort Belvoir, VA, the DLA manages nine supply chains and a vast array of services integral to the military and government functionality. These range from providing food, medical supplies, and energy to troops in the field, to supplying 86 percent of the military’s spare parts and 100 percent of fuel and troop support consumables.
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What federal agency is the DLA a part of?
The DLA is a combat support agency within the United States Department of Defense (DoD) federal agency. With more than 26,000 civilian and military personnel throughout the world, it provides logistics, acquisition, and technical services to the military and several federal agencies.
What is the difference between DLA and DoD?
The DLA is a part of the DoD. The Department of Defense oversees the whole defense system of the United States, including all branches of the military. The DLA, on the other hand, specifically focuses on providing comprehensive logistics, acquisition, and technical services support.
What are the objectives of the Defense Logistics Agency SBIR program?
As a critical government initiative, the DLA SBIR program is designed with several key objectives in mind. It’s an integral part of the broader Department of Defense effort to encourage innovative solutions from the vibrant small business community. Here are the main goals that drive the DLA SBIR program:
- Stimulating technological innovation: The program encourages small businesses to explore their technological potential and provides the opportunity to profit from their solutions. It’s about fostering a culture of innovation that can drive the development of critical technologies needed by the DLA and the Department of Defense.
- Meeting federal research and development needs: The DLA has specific, ongoing R&D needs, many of which are well-suited to the agility and innovation of small businesses. Through the SBIR program, the DLA taps into these companies’ potential to find practical, cost-effective solutions that align with their strategic goals.
- Fostering participation by disadvantaged businesses: The DLA SBIR program actively seeks to involve businesses owned by socially and economically disadvantaged persons. This effort supports the wider governmental aim of ensuring all sections of society have the chance to contribute to, and benefit from, federal R&D.
- Increasing private sector commercialization: A key goal of the DLA SBIR program is to transform the fruits of federal R&D into commercial products. By supporting the transition of SBIR-funded projects into the marketplace, the DLA helps spur economic growth and ensures that taxpayers benefit from the practical applications of funded research.
These objectives represent the driving force behind the DLA SBIR program, demonstrating its commitment to strengthening the nation’s defense capabilities while simultaneously promoting small business growth and innovation.
What are the eligibility requirements?
To participate in the DLA SBIR program, small businesses must meet certain stringent eligibility requirements. Here are the key eligibility criteria:
- American-owned: The small business must be at least 51 percent owned and controlled by one or more individuals who are citizens of, or permanent resident aliens in, the United States.
- Independently operated: The business should not be dominated in its field of operation or be a subsidiary of a firm or enterprise that is not a small business.
- For-profit organization: The business must be a for-profit entity.
- Size of business: Small businesses intending to participate in the program must have fewer than 500 employees, including affiliates.
- Principal researcher employment: The primary employment of the principal investigator must be with the small business at the time of the award and during the conduct of the proposed research.
- Project work: The work proposed in the SBIR application must be performed in the United States.
- Multiple Applications: A small business may submit more than one proposal to a given solicitation provided each proposal involves a different innovative idea.
- Previous Awards: A small business may win an award for Phase II without having received a Phase I award for that research/research & development, subject to a determination of technical merit, feasibility, and commercial potential.
DLA SBIR Phase I
In the first phase of the DLA SBIR program, small businesses are invited to submit proposals that establish the scientific, technical, and commercial feasibility of their proposed research or R&D efforts. The success rates of Phase I proposals can vary significantly depending on the specific solicitation and topic, but on average, about 15-20 percent of Phase I proposals are awarded.
- How much is the SBIR Phase I award?
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- The standard amount for SBIR Phase I awards is up to $100,000 for a period of up to 12 months.
- How long is SBIR Phase I?
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- The typical duration for SBIR Phase I is approximately 12 months.
DLA SBIR Phase II
Phase II is the principal R&D effort, typically following a successful Phase I project. The success rate for Phase II is generally higher, often reaching around 50 percent, as it usually involves businesses that have already demonstrated their concept’s feasibility in Phase I.
- How much is the SBIR Phase II award?
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- Phase II awards can reach up to $1 million, extending over a period of up to two years.
- How long is SBIR Phase II?
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- The standard duration for SBIR Phase II is roughly 24 months.
- The standard duration for SBIR Phase II is roughly 24 months.
How do I apply for Defense Logistics Agency SBIR awards?
To apply for the DLA SBIR awards, small businesses need to follow a multi-step process designed to ensure that all proposals align with the DLA’s research and development needs. Here are the critical steps involved:
- Identify a topic: Begin by identifying a solicitation topic that matches your business’s expertise and innovation. The DLA releases specific topics with each solicitation.
- Prepare your proposal: Once you’ve chosen a topic, it’s time to prepare your proposal. The proposal should articulate the technical approach, establish its feasibility, and highlight the potential for commercialization. Ensure your proposal meets all the DLA’s guidelines and requirements.
- Submit your proposal: Proposals should be submitted online, via the DOD SBIR/STTR submission portal, by the deadline specified in the solicitation.
- Await review: After submission, your proposal will undergo a rigorous review process (detailed in the next subsection).
Remember: The DLA seeks innovative, commercially viable solutions to its outlined topics. As such, you should be laser focused on creating a proposal that demonstrates technical feasibility, commercial potential, and your team’s ability to successfully complete the project.
What is the evaluation process?
The DLA uses a comprehensive, multi-criteria evaluation process so that only the most promising, feasible, and relevant proposals are funded. The evaluation process generally involves the following stages:
- Compliance check: First, the DLA reviews all submissions for compliance with administrative requirements. Proposals that do not meet these criteria may be removed from consideration.
- Technical review: Proposals passing the compliance check move on to a technical review. A panel of experts assesses each proposal’s technical merit, feasibility, and alignment with the solicitation topic.
- Commercial potential assessment: The panel also evaluates the potential for commercialization of the proposed innovation, including its potential benefits, marketability, and the team’s strategy for bringing the product to market.
- Final decision: After thorough evaluation, the DLA makes final award decisions based on the proposal’s technical merit, team qualifications, commercial potential, and alignment with DLA’s needs.
Remember: It’s not only about what’s the most innovative and technically sound, but also what has the most potential to be commercially successful!
Can a small business submit more than one proposal to the DLA SBIR program?
Absolutely. Small businesses are encouraged to submit more than one proposal to the DLA SBIR program. This feature of the program offers companies multiple avenues to bring their unique solutions to the DLA’s complex logistical challenges.
Here are a few key points to remember if you’re considering submitting multiple proposals:
- Different topics: Each proposal must address a different solicitation topic, as a diverse range of ideas is welcome to address the challenges presented in the solicitations.
- No duplicate submissions: Duplicate submissions under the same topic are not accepted. Each proposal must present a unique, innovative idea.
- Quality over quantity: Remember that the review process is competitive and rigorous. It’s crucial to focus on the quality of each proposal rather than simply the number of submissions. Every proposal should articulate a feasible technical approach, potential commercial value, and your team’s ability to deliver.
- Resource management: It’s important to consider your business’s capacity to handle multiple projects if more than one proposal is accepted. Carefully assess your resources, timelines, and the potential impact on your business before submitting multiple proposals.
While submitting multiple proposals can increase your chances of winning an award, each proposal must be well researched, carefully crafted, and align with your business’s capabilities and strategic direction.
What are the SBIR topics for the Defense Logistics Agency?
Every year, the DLA publishes a list of SBIR topics that represent the agency’s unique research and development needs for the upcoming year. The topics are comprehensive and encompass a broad range of areas where small businesses can contribute innovative solutions.
While a complete list of the 2023 topics can be found on the official DLA SBIR site, here’s an overview of the general areas of interest for the DLA in 2023:
- Advanced manufacturing: This includes developing technologies to improve manufacturing processes, enhance product quality, and reduce costs. For example, innovative proposals might address additive manufacturing techniques, smart factory solutions, or cutting-edge materials processing methods.
- Energy efficiency and sustainability: Given the DoD’s emphasis on energy security and reducing environmental impact, proposals in this area might focus on improving the efficiency of energy use in military operations, developing renewable energy technologies, or creating solutions for waste management or pollution reduction.
- Logistics information technology: As the DLA manages extensive supply chains, topics in this category might encompass solutions to improve the tracking and coordination of logistics, using technologies such as blockchain, AI, machine learning, or advanced analytics.
- Healthcare and human systems: This could include innovative approaches to medical supply chain management, healthcare technologies for military personnel, or human performance optimization technologies.
- Materials and components: Topics in this area could include the development of advanced materials for military equipment, or novel components that enhance the functionality, durability, or cost-effectiveness of military systems.
Who has won a DLA SBIR Phase II award?
The DLA SBIR program boasts many proud success stories of companies who have achieved a Phase II award for their hard work and innovation. Here are merely a few of those success stories:
Revolutionizing Manufacturing with AMSENSE®
Under multiple contracts with DLA, an innovative collaboration took shape. The University of Dayton Research Institute (UDRI), ARCTOS, Honeywell Aerospace, Macy Consulting, and Open Additive joined forces to solve a significant challenge in additive manufacturing (AM)—for part quality and performance that equals or surpasses conventionally forged parts.
Together, they developed AMSENSE®, a multi-modal sensor platform designed to enable certification of individual Laser Powder Bed Fusion (LPBF) builds, irrespective of part suppliers, machine manufacturers, and process parameters.
This game-changing technology aligns with industry standards and real-world manufacturing line requirements. It’s designed to be a standalone product compatible with all commercial LPBF machines, requiring minimal modifications for installation.
The advent of AMSENSE® has vast implications for the DoD supply chain. By accelerating the certification of LPBF AM parts, it enables faster, cost-effective manufacturing. AMSENSE® is currently being commercialized by Open Additive, and has been installed at several NASA locations, research institutes, and on the production lines of two original equipment manufacturers (OEMs). This innovation showcases how DLA SBIR collaborations can lead to breakthrough solutions that revolutionize the defense logistics landscape.
Reimagining Fuel Cell Technology with Response Technologies
Response Technologies LLC, a subsidiary of Bell Textron, offers another noteworthy example of the impact of DLA SBIR collaborations. They harnessed the power of additive manufacturing to modernize a critical military technology—the flexible fuel cell.
Traditionally, fuel cell manufacturers employed WWII-era subtractive manufacturing processes, which fell short in harnessing modern manufacturing techniques and efficiencies. The result was fuel cells that were expensive, provided less protection, and took considerably long procurement lead times.
On the other hand, Response’s cutting-edge approach gave birth to a seamless, crashworthy, ballistically-tolerant, and self-sealing fuel cell. This fuel cell is universally fuel compatible and environmentally sustainable, marking a significant advancement in fuel cell technology. The modernization introduced by Response presents numerous benefits, including weight reduction, a decrease in total ownership and future procurement costs, a reduction in manufacturing lead time from months to mere days, and more.
This success story underscores the significant potential of the DLA SBIR program to foster innovations that can redefine technology landscapes within defense logistics.
Breathing New Life into Missile Components
In collaboration with DLA and the U.S. Air Force, Parts Life, Inc. showcases the power of modernized manufacturing processes in their production of the Elevon Barrel Seal, a small but crucial component used in the Air Launched Cruise Missile (ALCM) platform.
Their remarkable achievement was the successful completion of two contracts, totaling 415 units, delivered to DLA all within a year. This accomplishment was realized through several stages.
The Elevon Barrel Seal, a stainless-steel bracket made from high strength, corrosion-resistant stainless steel, required meticulous attention to detail. Using the original equipment manufacturer’s (OEM) partial technical data, Parts Life converted the documents into modernized material and finished the specifications. These drawings were recreated in Solidworks 3D modeling software, improving both tolerancing and clarity for manufacturability.
To ensure quality, Parts Life used advanced tools, such as X-ray fluorescence and fourier transform infrared material scanners, to verify the chemical composition of the metal and rubber samples before assembly. Further, a Keyence 3D Optical Measurement Machine was used to inspect the first pieces for precise accuracy.
Following several engineering modifications, Parts Life managed to mass-produce the elevon seals. Their process involved forming the metal bracket, passivation of the stainless-steel component, adhering the specialized silicon rubber onto the assembly, part marking, and custom packaging.
What are the accounting requirements for DLA SBIR?
Winning a SBIR grant can be a thrilling milestone for your small business, but it also brings new responsibilities—particularly in the area of accounting. The DLA, like all federal agencies, requires meticulous financial tracking and reporting for SBIR awardees. Here are some of the primary accounting requirements:
- Project cost tracking: Recipients must have a system in place for tracking all project costs separately from other projects and expenses. These costs include direct labor, direct materials, subcontractor costs, equipment costs, and indirect costs.
- Consistent time reporting: Labor charges must be supported by reliable timekeeping records that reflect the actual time an employee spends on different projects. The records should be updated in real time, or at least weekly.
- Indirect rate proposal: Awardees must develop indirect cost rates for overhead expenses and fringe benefits, which must be consistently applied to all government contracts and grants.
- Financial reporting: Recipients are expected to generate timely financial reports, including invoices and expenditure reports, that accurately reflect the use of SBIR funds.
- Audit readiness: Awardees should be prepared for potential audits by maintaining detailed and accurate financial records.
- Cost principles: All costs charged to the SBIR project must comply with Federal Acquisition Regulation (FAR) Part 31 and the Cost Accounting Standards.
Meeting these requirements can be daunting, especially for businesses new to federal grants and contracts. That’s why Team 80 stands at the ready. We specialize in government accounting, ensuring that you can meet all these requirements without getting bogged down in the financial details.
With Team 80 on your side, you can:
- Track project costs accurately: We set up project-specific accounts in your accounting system to ensure that all costs are tracked separately and accurately.
- Manage time reporting: We can implement effective timekeeping systems to ensure all labor costs are captured and allocated accurately.
- Develop indirect rate proposals: We assist in developing and implementing indirect rate structures that comply with government regulations.
- Prepare financial reports: We provide the necessary financial reporting, including the preparation of invoices and expenditure reports.
- Maintain audit readiness: We ensure that all your records are audit-ready, providing you with peace of mind.
- Ensure cost compliance: We help you understand and comply with FAR Part 31 and the Cost Accounting Standards.
With Team 80 handling your accounting requirements, you can stay focused on what you do best—driving innovation for the defense logistics of the future.
Connect with Team 80 and let us set your accounting records straight!
