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Panel V: Lessons Learned
Pages 140-145

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From page 140...
... He had sold the company to General Dynamics about 19 months previously, when it had significant Phase III awards, which the new owner was using to compete in the marketplace. He said he was also closely involved with the reauthorization of the SBIR program in 1992.
From page 141...
... How to Fund Phase III He said that he was still working to improve Phase III and involved in debates on how to fund Phase III activities, which "remains one of the most significant issues in the program." There was discussion about the Senate and the House Armed Services bill in 2005 that dealt with the subject. He brought to the conference several charts to illustrate the process of producing defense contracts, including purchasing and acquisition pathways, as well as other science and technology activities throughout the agency.
From page 142...
... Another is program manager and Program Executive Officer pull, as well as a plan to transition from Phase II to Phase III before beginning Phase II. This means that a funding pool and insertion plan is needed for each projects.
From page 143...
... The Navy SBIR program has evolved to a point where the people who control the money for SBIR awards -- the Program Executive Offices -- are the people who plan the Phase III transition; and, their acquisition program offices directly influence the flow of Phase III dollars. He recommended that the most important metric should be Phase III funding to the SBIR firm, and that those SBIR-managing Navy offices that generate significantly more Phase III follow-on funds should be rewarded.
From page 144...
... In one sense, this does not appear to be a serious expense -- within 20 months of the program, participating firms average $3 million in Phase III awards, so the return on investment is almost a hundred-to-one. Nevertheless, he noted that it is still difficult to find additional dollars to put on a SBIR project to encourage commercialization because of Title 301 in the 1992 legislation, which describes what funds could be used for technical assistance.
From page 145...
... This, he said, is "the way the real world, the commercial world, actually operates," and that government should try to follow the lead of the computer industry, which produces new models at lower cost every two or three years. A New Metric to Gauge Phase III Success .

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