“Hurry up and wait.” It’s a common refrain among troops and their families frustrated with the bureaucracy that can seep into everyday life in the military.
Waiting isn’t something that commercial tech firms are used to doing. Today, it is causing frustration among tech startups interested in working with the Pentagon as part of the latest defense innovation initiative by Defense Secretary Ash Carter.
The military and its service leaders have not had trouble attracting interest from innovators and entrepreneurs in this region, Silicon Valley or Boston. When our company, Tandem National Security Innovations, recently executed a road show to promote the Defense Advanced Research Projects Agency’s Robotics Fast Track Program, each presentation was standing room only.
The entrepreneurs who attended our events said it wasn’t the size of the potential contract connected to the program, it was the chance to work with DARPA–one of the leading research arms in the military. However, what worried them most was the time it would take to navigate the defense acquisition process and actually receive a check to pay their employees.
The Robotics Fast Track Program and other defense contracting initiatives have sought to eliminate road blocks to get funding to small businesses faster, but as some Silicon Valley CEOs commented last week at an Atlantic Council event, more work needs to be done.
“There’s a speed mismatch” in regards to how fast commercial technology companies move compared to how the military expects to do business, said John De Santis, chairman and CEO of HyTrust, a cloud security automation company.
Mylea Charvat, founder of Savonix, a digital neurocognitive assessment firm, explained how venture capital firms consider the nine to 18-month healthcare sales cycles frustratingly long.
“Just think about that in context to the prime contracting process with the United States government that can take a decade. A decade from now, [venture capital firms] expect us to have exited this company,” Charvat said. She went on to say venture capital firms do not want to hear about possible government projects because they take too long.
Charvat and the two other executives at the Atlantic Council event on April 19 commended the Pentagon’s new Silicon Valley team, the Defense Innovation Unit-Experimental (DIUx) for its outreach to tech firms, especially events setting up meetings with users, or troops in the field. However, Silicon Valley companies want more meetings that come with results and decisions at the end.
“We’ve had a lot of meetings where we talk,” Charvat said about DIUx. “No decisions get made. And that’s where we have a disconnect. I’m looking for a meeting with a decision at the end.”
A prominent House Armed Services subcommittee has also raised questions about how the Pentagon is reaching out to startups and what are often called “nontraditional performers” inside the Pentagon. Members of the Emerging Threats and and Capabilities subcommittee proposed limiting DIUx’s funding in 2017 until Carter issues a report to Congress on how he plans to use future funds.
Much like the Silicon Valley executives, the committee members commended the work done to reach out to new tech companies, but questioned whether enough has been done to streamline the acquisition process to get companies working with the Pentagon.
"The committee is concerned that outreach is proceeding without sufficient attention being paid to breaking down the barriers that have traditionally prevented nontraditional contractors from supporting defense needs, like lengthy contracting processes and the inability to transition technologies," members wrote into 2017 defense budget legislation.
What’s promising is steps have already been taken to do just that and companies have taken notice. Over 200 companies applied to the DARPA Robotics Fast Track program, which worked to get companies under contract with money in their pocket in as little as two months.
In another example, Camron Gorguinpour, the Air Force’s director of transformational innovation, said his service could also get companies under contract in a month using a contract vehicle called Other Transaction Authorities.
Patriots do exist in Silicon Valley, Boston, Washington, New York, and Austin within the startup community. De Santis pointed out at the event that his son is in the Air Force and Charvat said there’s a reason she has engaged with the military.
These companies want to get their advanced tech solutions into the hands of soldiers. The focus needs to stay on working with Pentagon contracting officers to see where risks can be taken to speed up the acquisition process. If not, the Pentagon risks missing out on the goodwill it has built up through the efforts of DIUx, Carter, and the rest of the Pentagon’s innovation teams.
About the Author: Michael Hoffman
Hoffman is the executive editor and marketing chief for Arlington, Va.-based TandemNSI. The firm works to develop a community of entrepreneurs and small businesses that are interested in working on national security projects.
Prior to joining TandemNSI, he worked as a reporter and then editor for Military.com, a defense news publication. Hoffman is a United States Air Force veteran and accomplished journalist that occasionally contributes to DC Inno.
