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Slide1
Silicon
Valley Boston Austin Washington, D.C. Accelerating Commercial Innovation for National Defense 08/ 30 / 2017Proprietary Sensitive - Not for Public Release
Colonel
Michael
McGinley
30
August
2017Slide2
“A
lively
experiment”Silicon ValleyBostonAus
tin
Washington,
D.C.
Accelerating
Commercial
Innovation
for
National
Defense
08/
30 / 2017
Proprietary Sensitive
-
Not for Public
ReleaseSlide3
DIUx
accelerates
commercial innovation for national defenseSilicon ValleyBostonAustin
Washington,
D.C.
Accelerating
Commercial
Innovation
for
National
Defense
08/
30
/ 2017Proprietary Sensitive
-
Not for Public
ReleaseSlide4
Commercial
R&D
Outpacing Federal R&D: > 3 to 1 ($bn)DIUxValue Space
Silicon
Valley
Bo
s
t
on
A
u
s
t
i
n
Washington,
D.C.
Accelerating
Commercial
Innovation
for
National
Defense
08/
30
/
2017
Proprietary Sensitive
-
Not for Public
Release
Source:
National
Science
Foundation,
National
Center
for
Science
and
Engineering
Statistics
(NSF/NCSES),
National
Patterns
of
R&D
Resources
(annual
series)Slide5
Breakthrough
Innovations
Relevant to DoDSilicon Valley
Boston
A
u
s
t
i
n
Washington,
D.C.
Accelerating
Commercial
Innovation
for
National
Defense
08/
30
/
2017
Proprietary Sensitive
-
Not for Public
ReleaseSlide6
DIUx
Focus
AreasInformation TechnologyHuman Syste
ms
Spa
c
e
A
u
t
o
n
o
m
y
Artificial
I
n
t
e
lli
g
e
n
c
e
Silicon
Valley
Bo
s
t
on
A
u
s
t
i
n
Washington,
D.C.
Accelerating
Commercial
Innovation
for
National
Defense
08/
30
/
2017
Proprietary Sensitive
-
Not for Public
ReleaseSlide7
How
DIUx
Works
The
toughest
DoD
problems…
Silicon
Valley
Bo
s
t
on
A
u
s
t
i
n
Washington,
D.C.
Accelerating
Commercial
Innovation
for
National
Defense
08/
30
/
2017
Proprietary Sensitive
-
Not for Public
Release
are
given
to
DIUx’ers
with diverse
backgrounds…
…to
find,
pilot,
&
transition
commercial
solutionsSlide8
We
Harness
Innovation Across the U.S.520+ co.’sin 39 states competed for DIUx contracts4 Offices (SV, Boston, Austin, DC)48
Staff (11civilian, 26
military,
11
con
t
r
a
c
t
or
s
)
Silicon
Valley
Bo
s
t
on
A
u
s
t
i
n
Washington,
D.C.
Accelerating
Commercial
Innovation
for
National
Defense
08/
30
/
2017
Proprietary Sensitive
-
Not for Public
ReleaseSlide9
Success
Stories47PILOT CONTRACTS$1.8
bn of
VC
101
MILLION
DOLLARS
60-90
DAYS
TO
SIGN
Silicon
Valley
Bo
s
t
on
A
u
s
t
i
n
Washington,
D.C.
Accelerating
Commercial
Innovation
for
National
Defense
08/
30
/
2017
Proprietary Sensitive
-
Not for Public
ReleaseSlide10
Silicon
Valley Boston Austin Washington, D.C. Accelerating Commercial Innovation for National Defense 08/ 30 / 2017Proprietary Sensitive - Not for Public ReleaseSlide11
Silicon
Valley Boston Austin Washington, D.C. Accelerating Commercial Innovation for National Defense 08/ 30 / 2017Proprietary Sensitive - Not for Public ReleaseSlide12
Silicon
Valley Boston Austin Washington, D.C. Accelerating Commercial Innovation for National Defense 08/ 30 / 2017Proprietary Sensitive - Not for Public ReleaseSlide13
Silicon
Valley Boston Austin Washington, D.C. Accelerating Commercial Innovation for National Defense 08/ 30 / 2017Proprietary Sensitive - Not for Public ReleaseSlide14
“I
enthusiastically
embrace it.”“[DIUx] will grow in its influence on the Department of Defense.”– Secretary of Defense James Mattis, at DIUx
on 10 August
2017
Silicon
Valley
Bo
s
t
on
A
u
s
t
i
n
Washington,
D.C.
Accelerating
Commercial
Innovation
for
National
Defense
08/
30
/
2017
Proprietary Sensitive
-
Not for Public
ReleaseSlide15
Questions?
Silicon
ValleyBostonAustin
Washington,
D.C.
Accelerating
Commercial
Innovation
for
National
Defense
08/
30
/ 2017
Proprietary Sensitive
-
Not for Public
Release
questions@diux.mil
Work
with
Us:
https://diux.mil/Slide16
ADDITIONAL
SLIDES
Silicon ValleyBostonAustinWashington, D.C.
Accelerating Commercial Innovation for
National Defense
08/
30
/
2017
Proprietary Sensitive
-
Not for Public
ReleaseSlide17
How
Traditional Defense Companies Can Work with DIUxSilicon ValleyBoston
Aus
tin
Washington,
D.C.
Accelerating
Commercial
Innovation
for
National
Defense
08/
30
/
2017
Proprietary Sensitive
-
Not for Public
Release
One
or
more
non-traditional
defense
companies
must:
Supply
key
technologies
or
products;
or
Accomplish
a
significant
amount
of
the
effort;
or
Cause
a
material
reduction
in
the cost
or
schedule
or
increase
in
performance.
OR
Enter
into
a
one-third
cost
share
(contributions
of
cash
or
non-cash
items)
IRAD
may
count
towards
this requirementSlide18
Customer
SupportSilicon ValleyBostonAu
stin
Washington,
D.C.
Accelerating
Commercial
Innovation
for
National
Defense
08/
30 /
2017
Proprietary Sensitive
-
Not for Public
Release
“DIUx’s
expertise
in
and
knowledge
of
the
nontraditional
innovation
ecosystem is
unique
in
the
Department,
and
has
been
a
critical
enabler
for
USSOUTHCOM
to
remain
the
security partner
of
choice
for nations in
the Western Hemisphere.” Admiral
K.W.
Tidd,
U.S.
Southern Command
“DIUx’s
expertise
in
3rd
offset
technology,
coupled
with
startup
company’s
sense
of
urgency
and
efficient
use
of
contracting
and resources
has created an extremely effective method for NSW to gain knowledge
and
accelerate
cutting
edge
solutions
into
the
hands
of
my
Naval
Special
Warfare
operators.”
Rear
Admiral Tim Szymanski,
Naval Special Warfare CommandSlide19
Commercial Solutions Opening
(CSO)
VS. Federal Acquisition Regulations (FAR)FARComplicated fbo.gov solicitation 18+ months to award Protestable awardSet payment milestonesGov’t terms/conditions required Stringent IP/data rightsDCAA accounting standards
Sole source
procurement difficult
CSO
Simple
diux.mil
solicitation
<60
days
to
award
Unprotestable
award
Negotiable
payment
milestones
Negotiable
terms/conditions
Negotiable
IP/data
rights
Commercial accounting
standards
Sole
source
justification
for
follow
on procurement
VS
Silicon
Valley
Bo
s
t
on
A
u
s
t
i
n
Washington,
D.C.
Accelerating
Commercial
Innovation
for
National
Defense
08/
30
/
2017
Proprietary Sensitive
-
Not for Public
Release