U.S. Navy Program Bridges Gap for Innovation in Defense Technologies

The U.S. Navy runs a program that bridges the gap between innovation and contracting for small businesses that develop capabilities for their warfighters.

“The way we do that is we educate the small businesses, because you've got to keep in mind that a lot of these small businesses are very new to working with the Navy or DoD [U.S. Department of Defense],” said Steven Sullivan, manager of the DoD SBIR/STTR Program.

After companies succeed at the small business innovation research (SBIR) or small business technology transfer (STTR) with the Navy, they qualify for the SBIR/STTR transition program (STP). The STP helps small businesses transition their phase two technologies to the Navy or DoD. It offers educational resources, market research and business consulting to guide companies through this process, focusing on overcoming the valley of death by preparing them for additional testing, development and funding opportunities. It also provides networking events to connect companies with potential partners and clients.

The STP supplies business consultants who typically have extensive military or industry experience, enabling them to offer insights into the organization's systems and acquisition processes. The program spans about 11 to 12 months, starting with an invitation and kickoff, followed by continuous support, webinars and networking opportunities. The Navy funds the program, covering major costs, but companies must cover their travel and lodging expenses when they attend events in person.

Participants experience an 18% higher success rate than non-participants, according to Sullivan. The program is driven by specific acquisition needs within the service, focusing on benefits for both the Navy's objectives and the participating small businesses.

“The most value for a small business is in that directed effort of helping you to focus less on the product that you're creating and more on the need that you're trying to fill because that's just kind of like marketing 101,” said Corren McCoy, senior vice president of enterprise engineering and artificial intelligence strategy at STP-participant G2 Ops.

“It's been really powerful as a tool, especially for engineering-minded people,” explained Matt Wilson, corporate vice president for strategic initiatives at SimVentions, a technology company and program participant.

The STP has helped “communicate what we have, not just for the immediate customer or the immediate end user, but also somewhat more broadly,” explained Jim Ong, group manager at Stottler Henke Associates.

Stottler Henke participated two years ago. One of the most important lessons for the company was “having the STP program provide guidance for how we structure our message,” according to Ong.

Among the best lessons for McCoy was tailoring her marketing narratives.

“That's a part of what you learn as you're moving through the transition program, which is the way that you have to position whatever you've created to fit the audience that you're trying to speak to,” McCoy told SIGNAL Media in an interview.

The key skills, according to McCoy, are differentiating groups of people and finding common denominators to communicate, meeting them where they are.

In marketing, storytelling has a specific meaning; it refers to the use of narratives to engage and connect with an audience, conveying a brand's message, values and emotions in a compelling way.

“Part of building that story is understanding what those pain points are and being able to make analogies between the way that you are addressing that pain point for one group versus the way that you address that pain point for another group,” McCoy explained.

Emerging businesses are concentrated in achieving viable versions for market. All program participants SIGNAL Media interviewed stressed the value in the advice and networking opportunities in the program.

“Business is all about trust, and it starts with that initial kernel of trust that you can connect with a customer,” Wilson said, exemplifying how his company started negotiations with the Navy from a project to the delivery of a capability.

Along the way, the DoD increased the size of the purchases, along the lines for small businesses, since the company’s founding by four technical specialists in 2000.

“More resources, to actually turn that capability into something real, and all throughout the whole process you're having to demonstrate trustworthiness and your ability to deliver—and it can start with a really small kernel,” Wilson said.