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Appendix E: Case Studies
Pages 246-336

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From page 246...
... Given the multiple variables at play, the case studies are not presented as any kind of quantitative record, and only a limited number of case studies were completed as part of this study. Rather, they provide qualitative evidence about the individual companies selected, and although they are not intended to be statistically representative of NASA SBIR award winners or their award outcomes, they are, within the limited resources available, as representative as possible of the different components of the awardee population.
From page 247...
... Denver, CO 1982 Honeybee Robotics New York, NY 1982 Intelligent Automation, Inc. Rockville, MD 1987 Paragon Space Development Corporation Tucson, AZ 1993 Monmouth 1980 Princeton Scientific Instruments Junction, NJ Stottler Henke Associates, Inc.
From page 248...
... Because of the continuous condensation of the vapor, the pressure differential from one end of the tube to other is maintained. As heat management systems, heat pipes have obvious benefits.
From page 249...
... Pumped Liquid Cooling Technologies Pumped liquid cooling is a standard approach for cooling systems as varied as automotive engines, avionics, and nuclear reactors. Typically, pumped BOX E-2 Heat Pipe Technology History Heat pipes enable the transfer of heat, often across distances of several meters in length.
From page 250...
... In addition to commercial software tools, ACT has developed in-house models to evaluate the performance of specific applications related to the company's areas of technological and commercial strength such as heat pipes, heat exchangers, two-phase pumped loops, phase separation, and thermal storage. ACT now performs advanced modeling as a service to its government and commercial customers 3.
From page 251...
... ACT has used SBIR awards to fund research in these advanced technology areas. Business Model The market for heat pipe technologies divides into higher volume standardized products and small-scale customized batch production design for individual customers.
From page 252...
... • NASA Glenn Research Center (GRC) • NASA Goddard Space Flight Center (GSFC)
From page 253...
... SBIR Dr. Zuo said that SBIR funding was "very important to the company's success during the early years, and continues to be important today." That importance is reflected in the pattern of SBIR awards.
From page 254...
... ACT's core competence in heat pipes for spacecraft thermal control was developed in collaboration with NASA using SBIR funding. NASA was looking for a second source for thermal control in space craft.
From page 255...
... 10 Constant Conductance Heat Pipes, http://www.1-act.com/products/constant-conductance-heatpipes/.
From page 256...
... Zuo noted that most NASA SBIR awards focused on projects still far from maturity and that the initial $1.2 million non-SBIR award from GRC, although technically successful, focused on a project that NASA subsequently cancelled.
From page 257...
... Currently, CDI is receiving Phase III support from the Department of the Navy to commercialize fully a flight simulation module developed under SBIR. The company is working closely with program officers in Navy and the flight simulation software vendors to improve realism of simulated flight by integrating CDI's core fluid flow technologies into the vendor software, and it is expected that this simulation technology will be transitioned to Navy fleet trainers within the next year.
From page 258...
... According to CDI, CHARM incorporates "landmark technical achievements from a variety of NASA, DoD, and company-sponsored initiatives," 11 including several SBIR awards from NASA in the 1980s and 90s for helicopter wake modeling played a central role. CHARM supports advanced rotorcraft aerodynamic design, as well as research on emerging rotorcraft technologies.
From page 259...
... ] tools." BROWNOUT BROWNOUT is a "standalone/modular software that provides a physics-based model of visual ‘brownout' rendered directly in flight simulation and analysis software when rotorcraft land in sandy/dusty conditions." SOURCE: Continuum Dynamics, Inc., http://continuum-dynamics.com/solution-aertc.html?
From page 260...
... TABLE E-4 Continuum Dynamics, Inc., Revenue Mix (2010-2015) Percent of Company Revenue, by Year 2010 2015 SBIR R&D 50 35 Software Licensing 30 20 Services 20 45 SOURCE: Interviews with CDI Personnel.
From page 261...
... . CDI has received SBIR awards from a number of agencies, including the Department of Agriculture (USDA)
From page 262...
... Accessed October 8, 2015. SBIR – Phase III Through the Technology Assistance Program, the Navy offers additional commercialization support to a small number of successful Phase II projects.
From page 263...
... The have provided transition funding, they've found program offices committed to continuing that funding, and they've introduced us to key flight simulation vendors. There has been a great deal of cross-fertilization." CDI has self-funded some elements in this process, but mostly Navy dollars are supporting it.
From page 264...
... CDI has also been recognized for its contributions to the SBIR program itself. In February, 2011, Senior Associate Todd Quackenbush received a "Champions of Small Business Innovation" Award from the Small Business 17 NASA SBIR Success Stories, "Computational Method for Aeroelastic problems in Turbomachinery, http://sbir.nasa.giv/successes/ss/3-071text.html.
From page 265...
... Improving SBIR and STTR To improve the STTR/SBIR program, CDI management suggests that all agencies emulate the Navy's Technical Assistance Program and also put aside more funding and support for Phase III projects.
From page 266...
... By 1996, the company had 40 employees, largely Ph.D.s, with the work closely centered on robotics, sensors, and remote applications. During this period, SBIR awards opened the door to a number of sponsors especially in DoD and NASA.
From page 267...
... Cybernet is currently building its sixth ATACS for Army. This rapid delivery was made possible in part by the SBIR compete clause, which permitted the Army to sole source the contract to Cybernet based on the competition for the previous SBIR award.
From page 268...
... SBIR award. VSIL According to Cybernet, the Virtual Systems Integration Lab is a virtual prototyping package for modeling "vehicle systems and components, developed by Cybernet and [Army's]
From page 269...
... Cybernet has contracts to build robotic forklifts. The company transitioned its DARPA Urban Challenge technology to build these automated forklifts for the Army.
From page 270...
... . Cybernet received a number of early NASA SBIR contracts to work on force feedback, but this did not immediately lead to large-scale 22 Cybernet Systems Corporation website, http://www.cybernet.com/index.php/products/netmaxrobotics?
From page 271...
... Technology development primarily initiated by NASA funded everything in the force feedback industry. Game controllers would not have been developed without NASA SBIR funding.
From page 272...
... This is critical for non-software technologies: Dotcoms do not need SBIR funding; they have private money. But no private funding is available for small businesses to develop a new kind of plastic.
From page 273...
... • Regarding award size, Dr. Jacobus believes that results would be optimized by keeping Phase I SBIR awards as small as possible, while
From page 274...
... In his view, this would be more useful than commercialization training. o Allocate some SBIR funding via the primes, that is, allow the primes input into the development of topics and the selection of awards.
From page 275...
... Indeed, until 2005 Eltron was a prime example of a "lifestyle" SBIR company, one in which revenues were largely generated from SBIR awards, and where minimal efforts were made to commercialize the results of SBIR-funded research. At Eltron, as at many companies, the previous owners had used SBIR to cover its costs for research, recover overhead and G&A costs related to research, and make a small (4.5 percent)
From page 276...
... It could be changed but the change would be difficult and would be opposed by the many people who benefit from the current program both inside and outside of the agencies administering the programs. At present Eltron Research has approximately 15 employees with PhDs, Masters, and Bachelors in engineering and the sciences.
From page 277...
... Chemicals and Chemical Eltron personnel are also expert in the design and implementation of Processing both ambient and high temperature chemical and electrochemical processes. SOURCE: Eltron Research website, "Company Overview," http://www.eltronresearch.com/ company.html.
From page 278...
... The remainder came in combination from the National Science Foundation, the Environmental Protection Agency, the Department of Health and Human Services, and the Department of Agriculture. 29 To support commercialization of the results of these 333 projects, between 2006 and 2013 Eltron spent an additional $5 million of its own funds trying to secure Phase III funding from industry.
From page 279...
... In 2002, the number of SBIR awards received peaked at 32 awards worth $6.3 million. For the next five years until 2007, Eltron averaged about 17 SBIR awards annually worth on average about $3.4 million.
From page 280...
... Despite substantial internal investment, Eltron had no success interesting companies in funding commercialization of SBIR projects. Even non-SBIR technologies have proven challenging.
From page 281...
... Mr. Grimmer comment, "None of these 31 "Eltron Research & Development and Eastman Chemical Company Team for Joint Development and Pilot Testing of Membrane System for Hydrogen Production and Carbon Capture," (August 4, 2010)
From page 282...
... Furthermore, it has tested the briquettes produced by the process at Colorado's Valmont coal-fueled power plant. 34 Improving SBIR The absence of Phase III funding from industry for SBIR developed technologies is why Eltron left the SBIR program.
From page 283...
... Without need, there is no way industry will support Phase III. Topic list should be developed in partnership with the corporate sector.
From page 284...
... Ten to 15 years ago, Phase I SBIR funding could be obtained to test a concept. According to Mr.
From page 285...
... He emphasized, "I would bet we received $75 million in SBIR funding, and it was stupid, a complete waste of time. None of the SBIR projects have produced a successful project." Grimmer is not against the concept of government funding for small businesses commercializing technology.
From page 286...
... Irene Yachbes, Director of Technology Development, October 11, 2010, and e-mail exchange with Mr. Kiel Davis, President, October 25, 2015 New York, NY Honeybee Robotics is a privately held company located in New York, New York.
From page 287...
... . In addition to its TABLE E-8 Honeybee Robotics Core Technology Competencies Core Competency Description Systems Engineering To ensure effective project management, Honeybee has invested deeply in systems engineering and has strong capabilities in specification development, requirements flow-down, configuration management, and in the overall management of project costs, timelines, and risk.
From page 288...
... Aerospace and Defense Contractors Lockheed Martin Boeing Hamilton Sundstrand Space Systems SAIC Industry Rio Tinto ConEdison 3M Siemens IBM Academia and Laboratories Cornell University Princeton University UCLA Johns Hopkins University University of California, Berkeley Applied Physics Laboratory (JHU/APL) _____________________ SOURCE: Eltron Research, October 12, 2015.
From page 289...
... . Designed, developed, and manufactured by Honeybee Robotics as a part of NASA's 2003 Mars Exploration project, the RAT uses grinding wheels of diamond dust and resin to gently abrade the surface of Martian rocks.
From page 290...
... Mr. Davis wrote, "The company leverages SBIR/STTR funding in part to pay for product development activities and mission non-recurring engineering." Based on technologies developed during the Mars missions, Honeybee owns two proven actuator technologies -- the ESPA Solar Array Drive Actuator and the MSL Carousel Actuator -- and a range of as yet unproven ones.
From page 291...
... TABLE E-9 SBIR/STTR Awards to Honeybee Robotics by Phase and Source (1983-2015) Phase I to Total Agency Phase II Number of Phase I Number of Phase II Funding Funding as Conversion Phase I Funding Phase II Funding By Agency Percent Rate Agency Awards (Dollars)
From page 292...
... As a result our Phase II proposal quality is higher and Phase II programs are better positioned for success." Another important change, especially for a company focusing on technology commercialization, was the creation of the minimum transition benchmark. As winners of multiple SBIR awards, Honeybee must demonstrate that it has met or exceeded a minimum level of successful commercialization transitions over a moving multi-year window of time.
From page 293...
... Overall, SBIR applications are very time consuming to complete. Honeybee would like the program to better support its efforts to develop relationships with NASA's prime contractors.
From page 294...
... IAI's current core R&D areas include Air Traffic Management, Big Data and Social Media Analytics, Control and Signal Processing, Cyber Security, Education and Training Technologies, Health Technologies, Modeling and Simulation, Networks and Communications, Robotics and Electromechanical Systems, and Sensor Systems. Over its 27 year history IAI has served clients in government agencies, the prime contractor community, and commercial organizations.
From page 295...
... Since 2009, IAI has adopted a more aggressive strategy of developing, funding, and marketing products based on the technologies it develops. Examples include: Technology Description Phase III Funding CybelePro® CybelePro® is an Intelligent Agent Framework $5M+ in NASA licensed by most NASA labs and leading contracts aerospace companies for modeling and simulation of Air Traffic Management related technologies.
From page 296...
... All of these products developed from successful SBIR Phase II projects and benefited from subsequent Phase III funding from the Rapid Innovation Fund, IDIQ contracts, NASA NRAs, DOD BAAs, and DARPA programming/BAA, with augmentation by internal R&D support from IAI. In addition to product development, IAI also integrates SBIR technology into service modules for delivery within custom contracts overseen by prime contractors.
From page 297...
... Big Data Analytics IAI has developed and commercialized innovative data analytics tools. With expertise in data mining, natural language processing, text analytics, and social media analytics, IAI's has developed solutions in scientific data analysis, health informatics and intelligence analysis.
From page 298...
... Wavering joined IAI in 2009 and leads IAI's business development and technology transition activities.
From page 299...
... Having won most of its SBIR awards from NASA and DoD partially explains IAI's approach to contract research during the early years of its existence. IAI has been highly successful in meeting these agencies' research needs, demonstrating that the agencies find significant value in 41 SBA tech-net database.
From page 300...
... Like many companies dependent on DoD and NASA SBIR funding, in its early years, IAI found it difficult to find a successful model for transitioning and productizing the technologies that it developed. However, since 2009, with its new initiatives and corporate reorganization and focus on productization and transition, IAI now has multiple successful products, productized service offerings, and recently even raised external funding to launch its first spin-off company.
From page 301...
... IAI led the development of the agent architecture design and implementation for ACES and a wide range of modeling and decision support tools. As a member of the ACES team, IAI received the NASA team achievement award and the NASA Space Act Software Release Award for contributions to the development of ACES.
From page 302...
... Small Business Administration, the Administrator's Award from U.S. Small Business Administration, Raytheon Supplier of the Year award from Raytheon, the NASA team achievement award and NASA Space Act Software Release Award from NASA, and the Best of Rockville Award from the City of Rockville for its advances in Aerospace Technology.
From page 303...
... The SBIR program's sole-source provision allows an agency to avoid competitive bidding and give preference to a company with a technology that fully serves the agency's needs when that technology was originally funded through a competitive SBIR or STTR process. Although IAI has had success in identifying Phase III funding for many of its Phase II SBIR projects, IAI has had limited success in using the sole source provision in the SBIR funding program to receive Phase III funding.
From page 304...
... Dr. Manikonda affirmed that SBIR funding provides critical seed funding that allows high-risk, high-value projects to be explored and completed.
From page 305...
... The company provides environmental controls for extreme and hazardous environments, including life support systems and thermal control products for astronauts, contaminated water divers, and other extreme environment adventurers, as well as for unmanned space and terrestrial applications. Paragon is headquartered in a 21,500 square-foot facility near the Tucson International Airport, close to the University of Arizona.
From page 306...
... NASA and DoD SBIR funding help to partially close the R&D gap by providing resources for developing technology. However, this technology is usually attractive only to the small market interested in the directed topic, and, in NASA's case especially, tends to be directed toward meeting the agency's needs, which contributes to the funding cycle problems noted above.
From page 307...
... . Markets/Products Paragon's market is life support and thermal control products and systems, which can be divided into three areas, although systems often include elements of all three areas to provide a complete life support system: 1.
From page 308...
... Paragon and the SBIR Program During its first 7-8 years of existence, Paragon did not apply for SBIR funding; in fact, it operated with more commercial contracts at that time. Among its projects, it worked for a German airship company, and was funded by Japanese research organizations to develop and manage experiments on Mir.
From page 309...
... Problems with Data Rights The SBIR program funded another project to work on a spacecraft radiator. The Phase III for this project was indirectly picked up for the Orion program.
From page 310...
... Recommendations for Improving SBIR Mr. Anderson said that DoD's funding structure works much better for Paragon than does NASA's.
From page 311...
... • Award size. Paragon believes that SBIR awards should be larger in size, even if this means fewer awards.
From page 312...
... Princeton Scientific Instruments (PSI) is a privately held company located in Monmouth Junction, New Jersey.
From page 313...
... Since then, the company has focused on a series of projects, most of which have been successful technically, but anticipated markets have failed to fully materialize. PSI has therefore remained largely a contract R&D company, focused on a series of projects to a considerable degree defined by SBIR awards.
From page 314...
... Some of these applications have also attracted SBIR funding. PSI's LMS system was regally by a Navy SBIR award focused on detect laser activity.
From page 315...
... Therefore years of technically successful R&D at PSI, primarily supported by several SBIR awards from DoD, did not lead to deployment of a commercially successful product. This experience once again illustrates some of the difficulties faced by SBIR companies in matching SBIR technologies to DoD's acquisition needs.
From page 316...
... In all cases, Phase III contracts proved elusive. The awards span more than 20 years, from 1984 to 2008, and average about $800,000 annually, which appears to constitute a significant percentage of PSI revenues.
From page 317...
... All training systems are, for example, customized for each application, but are built on existing software code and applications. SBIR Awards at Stottler Henke As shown in Table E-15, Stottler Henke has been the recipient of more than 100 SBIR awards from several agencies.
From page 318...
... Clearly, Stottler Henke's consistent success in winning SBIR awards from multiple agencies (and especially DoD and NASA) indicates that the company has been highly successful in meeting agency needs by providing these kinds of services.
From page 319...
... However, this metric was of limited relevance in areas such as those addressed by Stottler Henke, where the objective of a Phase II award was to deliver an operational product. Phase III funding was rarely required, as the cases of Aurora and AMP described below indicate.
From page 320...
... NASA Successes Stottler Henke has been highly successful in using NASA SBIR awards to develop tools that the agency has in turn adopted for operational use. These tools have been in use since the early 1990s.
From page 321...
... One user reported performing over 100 planning studies in a year, a task that would have been impossible without AMP." 61 As noted on the NASA SBIR website, automated "scheduling is common in vehicle assembly plants, batch processing plants, semiconductor manufacturing, printing and textiles, batch processing, surface and underground mining operations, and maintenance shops, where scheduling the use of different pieces of equipment that work together impacts production rates and costs." 62 Stottler Henke is marketing this software tool and other related products to industries involved with many resources, activities, and constraints, particularly when it is desirable to plan and project changes for many cycles or years ahead. Aurora Scheduling System 63 The Aurora project originated from KSC and received a Phase I award from NASA in 1999.
From page 322...
... Stottler Henke claims that 64 For more details on Aurora's use at NASA, see NASA, Spin-off magazine 2006, http://www.sti.nasa.gov/tto/Spinoff2006/ct_2.html. Accessed September 10, 2009.
From page 323...
... In 1988 TechnoSciences merged with Systems Engineering, Inc., a company founded by Gil Blankenship and Harry Kwatny. Until the late 1980s, Techno-Sciences was largely a contract research house that used government contracts, including SBIR awards, as a way to fund investigator-initiated research and as a basis for R&D in the U.S.
From page 324...
... Company Structure Prior to its acquisition, Techno-Sciences had three divisions: • SARSAT, which provides ground stations for search and rescue at sea and over land. Techno-Sciences' SARSAT products are now mature systems, backed by an experienced staff with a well-developed process for scoping projects, deploying systems, and following up with effective maintenance and support.
From page 325...
... TRX is now working on location and mapping services for consumer applications using handheld technology. Innovital Systems has leveraged Techno-Sciences' defense-based technologies to design novel medical devices, including an implantable ventilator for people with diminished diaphragm function.
From page 326...
... The MCC is a command and communications system based on a client server structure, which gathers data from satellite ground stations (Local User Terminals) , aggregates and manages the data through its server and proprietary software, and delivers the data for display and analysis in a graphical interface and 3D GIS.
From page 327...
... The sole-source advantage conferred by these SBIR awards had a significant effect on the subsequent decision by U.S. Space and Naval Warfare Systems Command (SPAWAR)
From page 328...
... SBIR projects at Techno-Sciences were treated as standalone projects and were often handed off to staff not yet ready for a major commercial projects. In the course of managing one or two SBIR awards, these staff acquired critical management skills, which were then applied to commercial projects and eventually to the management of entire product lines.
From page 329...
... Blankenship, it typically matched a Phase I award with an additional 50 percent internal funds to ensure that the result was good and that Techno-Sciences had a strong case for a Phase II award. Techno-Sciences' commercialization record for SBIR projects achieved and sustained the maximum rating.
From page 330...
... He has since started two new companies, one working in sleep health and the other in medical devices. Both have received SBIR funding.
From page 331...
... SBIR awards from the Air Force Research Laboratory funded ZONA to integrate its aeroelastic and aeroservoelastic technologies into the ASTROS (Automated STRuctural Optimization System) software which were also included in the commercially available version of ASTROS.
From page 332...
... For ZONA, the SBIR program provides a useful revenue stream and funds the innovation that drives growth for the company, in the form of new technology that can be commercialized. DoD awarded ZONA its first SBIR Phase I award in 1997.
From page 333...
... (See Table E-18.) SBIR awards have significantly affected the company's product development.
From page 334...
... This strategy reflects the company's view that competition for SBIR awards is intense and that ZONA needs every advantage to be successful. SBIR funding allows ZONA to take preliminary ideas and test them to see whether they have traction technically and commercially.
From page 335...
... NASA SBIR contracting continues to be handled at the office level. If SBIR recipients have questions, they will be answered by whoever is available at the office.
From page 336...
... SBIR awards have grown, and fewer awards are being awarded. By reducing the number of awards, this reduces the likelihood of innovation.


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