SoarTech’s CEO, CTO Meet with DoD’s Shyu About Small Business Program

Mike van Lent, Ph.D., SoarTech’s CEO, had the opportunity to meet with Under Secretary of Defense for Research and Engineering, Ms. Heidi Shyu, via Zoom recently to share ideas about ways to improve the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. Attending with Dr. van Lent was SoarTech’s Executive Vice President and Chief Technology Officer, Dylan Schmorrow, Ph.D., as well as representatives from three other small businesses.

“This meeting was important for SoarTech, which is representative of a lot of small businesses that are leaders in innovation,” Dr. van Lent said. “In more specific terms of national defense, the SBIR program supports and encourages technological innovation through investment in federal research necessary to build a strong economy and improve our national security.”

The SBIR/STTR programs have been widely recognized as a highly successful federal government initiative since its establishment in 1982. Despite receiving bipartisan support over the years across the political spectrum the program was briefly in danger of expiring at the end of September.

“The defense industry is typically characterized by significant barriers to entry, which can make it difficult for small businesses to even enter, much less compete in that arena,” Dr. van Lent explained. “And yet, the innovation necessary to satisfy the government’s requirements and ensure national security against peer and near-peer adversaries can often come from small, agile firms. More than any other program, the SBIR/STTR programs have been the on-ramp attracting entrepreneurs and technologists to work in support of national defense.”

Fortunately, late on Sept. 20, the Senate approved the bill reauthorizing the SBIR/STTR programs until Sept. 30, 2025. Then on September 29, two days before the program was set to lapse, the House passed its legislation reauthorizing the SBIR/STTR programs by a vote of 415-9. Some changes to the programs included in the bill call for increased research security to better protect SBIR/STTR-funded technology from adversarial governments. Also, firms that are multiple SBIR/STTR award winners will see increased standards for Phase 1 to Phase 2 transition and commercialization.

Dr. van Lent said he found a receptive audience in Ms. Shyu and her staff. “Prior to our meeting each of the small businesses were asked to answer a series of questions about issues and ways to improve the program. During the meeting Ms. Shyu brainstormed possible solutions regarding these issues and heard our feedback on those solutions.”

Ms. Shyu is known to champion the SBIR program and has previously written to House Small Business Committee members saying that discontinuing the SBIR/STTR programs would impact more than 1200 different efforts that have the potential to benefit service members.

Small businesses don’t always have the resources of huge defense contractors to wade through the complex maze of government rules and regulations, but they have new ideas that can change the world. For 40 years, the SBIR/STTR programs have given these small businesses the chance they need to make a difference. For example, SBIR investments have helped develop the global positioning satellite technology we use when driving in unfamiliar territory.

According to the DoD SBIR-STTR National Economic Impact Study 1995-2018, the SBIR/STTR programs have been responsible for:

-$121 billion in sales of new products and services.

-A 22:1 return on the DoD’s investment dollars. (Each dollar spent results in a $22 dollar return.)

-$28 billion in sales to the U.S. military.

-$347 billion in total economic benefit nationwide.

-1,508,295 jobs (65,578 per year) with average compensation of $73,461.

Only American small businesses with 500 employees or less are eligible to participate in SBIR/STTR programs. These competitive, awards-based programs encourage small businesses to participate in federal research and development with the potential for commercialization.

The SBIR program’s funding amounts are relatively modest, providing $50,000 to $275,000 for Phase I projects, and $750,000 to slightly over $1.8 million for Phase II.

“Phase I SBIRs explore more innovative, out-of-the-box ideas,” Dr. van Lent said. “As with all research, these are learning and exploration projects and sometimes our initial hypotheses about what’s possible don’t turn out to be true. It’s much better to learn that on a $150,000 Phase I grant than on a $50 million indefinite delivery/indefinite quantity contract.”

SoarTech has been fortunate enough to invent, mature and transition multiple technologies and systems for service members with SBIR/STTR support. In most cases, the SBIR/STTR programs fund the entrepreneurial stages of the process, with funding for later stages of maturation and deployment coming from open competition, often against much larger defense contractors.

“Our SBIR/STTR work has resulted in innovations that have proven better than those offered from traditional defense contractors, making our service members more capable and safer than before,” said Dr. van Lent. “These technologies would not exist if not for the SBIR/STTR programs.”

The Small Business Technology Council will provide additional clarification on the new language that will impact the execution of SBIR/STTR contracts. It will also work with the Small Business Administration on what that impact will mean for firms involved in the program, and how those firms can attain the necessary compliance with requirements.

Dr. van Lent said Ms. Shyu came to the meeting with ideas ready to discuss and ready to listen. “It was a good session with someone who had done their homework and understood the concerns of those involved,” he said. “I walked away happy in knowing that she has a role in building solutions for small businesses and defending the small business programs.”

“SoarTech is honored to benefit from the SBIR/STTR programs,” van Lent said. “We’re proud of the work we’ve done, the technologies we’ve developed, and the talent we’ve grown. We strongly believe that the reauthorization of this program is critical to our nation’s defense, keeping our service members safe, and winning the competition against our adversaries.”