IN THE ‘SHARK TANK’


to ask the vendors difficult and detailed questions, delving into a more fluid dis- cussion and evaluation than what would generally constrain the typical contract- ing process.


Te experiment—which resulted in


awards to two nontraditional businesses for prototype equipment—was part of the Army’s first Cyber Innovation Chal- lenge, a model that targets small and micro companies by working through a consortium of nontraditional innovators. Tis little-known approach (almost a lost art) by project managers relies on “other transaction authority” (OTA), which per- mits the Army to enter into agreements with outside entities beyond traditional defense contractors. Used by the Army sci- ence and technology community, NASA, the Defense Advanced Research Projects Agency and several federal departments, the OTA mechanism provides cost-shar- ing, shortens the capability-development cycle and speeds the transition of proto- types to the government.


Te approach is already paying off in the realm of cyber, where the innovators often reside at the small and micro busi- ness level and where we have to move fast to meet changing threats. Over the last few months, the Army has sparked con- siderable interest in the nontraditional vendor community, competitively pro- cured prototype kits for cyber Soldiers and launched a second Innovation Chal- lenge focused on situational awareness.


BACKING NONTRADITIONAL INNOVATORS We don’t always know the nature of the cyber threat we will be facing in a few months, let alone a few budget cycles. But rather than seeking to change the acquisition process or create new policies, our approach at the Assistant Secretary of the Army for Acquisition, Logistics


84


and Technology (ASA(ALT)) Cyber Focal office is to tailor existing acquisi- tion methods to support the demands of cyber, while opening doors for more small businesses to participate.


In 2015, the ASA(ALT) Cyber Focal office took a step in this direction by working through an existing consor- tium community to execute the first Innovation Challenge. A consortium is a voluntary organization with members from industry, academia and government, a mix that allows


the Army to access


technologies resident in universities, private and federal labs, incubators and especially small businesses. Each member pays a small annual fee, and in exchange becomes eligible to pitch its technologies and solutions in response to government requirements—without having to navi- gate the Federal Acquisition Regulation process. While any company can join the consortium, to receive an award the com- pany has to be nontraditional—meaning it has worked with the government very little or not at all.


Te goal is to attract the small and micro companies that have pioneering tech- nologies but don’t have the means


to


meet government contracting require- ments. Trough this model, the company running the consortium does the heavy


lifting of interacting with the govern- ment, but the small or micro company gets the award, minus the consortium fee. Tink of it as a “lightweight” model that promotes agility while maintaining the necessary technical and due diligence rigor for competitive prototype awards.


Te consortium approach also offers a unique procurement structure. Under Section 845 of the National Defense Authorization Act for Fiscal Year 1994, DOD received OTA to carry out select prototype projects. Tis authority per- mits the Army to enter into transactions other than contracts, grants or coop- erative agreements—commonly referred to as “other transaction” (OT) agree- ments—with small businesses and other nontraditional


companies. Using the


OT mechanism, the Army can purchase limited- quantity prototype


from a company that is part of the consortium.


To tailor the consortium-OTA approach to cyber, ASA(ALT) developed the Cyber


solutions from a wide range equipment


Innovation Challenge, a repeat-


able framework that enables the Army to solicit


of sources and quickly evaluate and purchase prototype capabilities using OT agreements. Each challenge, struc- tured to address priority operational


Start to finish, the innovation challenge process takes less than six months. It begins with an industry day and call for white paper submissions, which the ASA(ALT) SoSE&I Directorate evaluates for technical feasibility.


Army AL&T Magazine January-March 2016


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