Atch 2_AF X20.R CSO Customer Memorandum Template.docx

DEPARTMENT OF THE AIR FORCE

<<Air Force Organization>>

<<DATE>>

MEMORANDUM FOR AFWERX/AFRL SBIR TEAM

FROM: <<AF CUSTOMER (also reference Need ID if applicable)>>

SUBJECT: <<AF Customer>> Defense Need and Participation Interest in the Air Force Small Business Innovation Research (SBIR) Program Project under Phase II Commercial Solutions Opening Solicitation for Open Topics No. 19.3

(Email sbir@afwerx.af.mil with the subject “20.R Product Request” for the latest templates. Customer Memoranda based on templates for other Solicitations will not be accepted.

1. Purpose: This Memorandum is executed in furtherance of references (a) and (b) and the applicable Air Force SBIR solicitation, which constitute authority to promote products, services, and enterprises within the meaning of reference (c). The purpose of this Memorandum is to document interest from <<AF Customer>> in working with AFRL, AFWERX, and <<SBIR Company>> on a project considered for Air Force SBIR Phase II award.

2. Defense Mission Need: <<AF Customer>> has a national defense-related mission need in the area of <<Area of Interest>>. Specifically, <<describe the mission need and impact>>. We believe technology development under the subject SBIR topic may eventually contribute to solving this mission need.

3. Project Timeline and Goals: If the SBIR Phase II proposal is selected and awarded, we expect this project to be executed from <<start month>> to <<end month>>. The main goals of our involvement in this project are <<measurable goals>>. The mission impact of this project on the Department of the Air Force and the Department of Defense will be <<impact statements>>.

4. Matching Funds: (DELETE FROM TEMPLATE BEFORE SIGNING: Non-SBIR matching funds are not required under this solicitation. However, Air Force commands may wish to add their own matching funds to SBIR Phase II awards in order to leverage Air Force SBIR funds, up to maximum value in the solicitation, in order to solve the command’s mission problems and enhance SBIR Phase II effort success. Awards of Phase II proposals, including those with matching funds, will be made based on competitive and merit-based procedures. References (a) and (b) authorize adding Federal non-SBIR/non-STTR funds to SBIR Program-funded Phase II awards. DFARS Subpart 204.71, Uniform Contract Line Item Numbering System, contains procedures for applying multiple lines of accounting to a single contract, including modifications. AFI 65-118, Air Force Purchases Using Military Interdepartmental Purchase Requests (MIPRs), with Interim Change 1, contains procedures for reviewing MIPR strategies and packages.

NOTE – The company must also fill out any other matching or milestone form provided in the solicitation, and submit it as part of their Phase II Proposal. This Memorandum is not a substitute for other forms.

If you plan on providing matching funds, use this language:

If a Phase II award is made, <<AF Customer>> commits to providing <<amount of matching funds>> funds at a <<state ratio>> match to <<$amount> of SBIR funds. <<AF Customer Finance Management Office symbol>> concurs with this use of funds. <<AF Customer>> will transfer the funds to AFRL/PK no later than 90 days of Phase II contract award (funds may be transferred early). <<AF Customer>> recognizes, if the funds do not arrive at AFRL/PK within 90 days of Phase II award, the work and corresponding funding will be descoped to the value provided in the solicitation. If <<AF Customer>> provides matching funds and <<SBIR Company>> is not selected for Phase II award, the funds will be returned to <<AF Customer>>.

If you do not plan on providing matching funds, use this language:

No matching funds are provided.

5. Additional agreement: If the SBIR Phase II award is made and if it becomes necessary for project success, <<AF Customer>> would consult with Air Force legal, contracting, and small business personnel on further steps to formalize cooperation between <<AF Customer>> and the SBIR company in the manner that protects the Government’s interests.

Such steps may include, for example:

6. Phase III Interest: Further, if the Phase II project is successful and the mission need remains otherwise unmet, <<AF Customer>> will consider transitioning the resulting innovations to Phase III contracts, subcontracts, or other instruments made through <<contracting office>> with support of <<small business office>>. The transition effort will give due regard to the Phase III transition preference for SBIR-funded technologies set forth in references (a) and (b), based on mission need and optimum small business participation. Phase III plans and awards are subject to applicable acquisition planning, funding availability, security assessments, small business, and legal and other reviews.

If appropriate, we may also work with Air Force SBIR and Technology Transfer personnel to modify the SBIR Phase II award by including any special Phase III procedures that <<AF Customer>> may wish to establish, in its discretion.

7. Milestones: We confirm the proposed milestones in Attachment 1: Schedule of Milestones will provide value to us as Air Force customers, end-users, or operators of the proposed solution. We agree to recommend to AFWERX and to AFRL SBIR Program Manager the approval or rejection of deliverables and solutions from <<SBIR Company>> in accordance with the attached milestones during the proposed SBIR Phase II project.

8. Stakeholders: We understand the successful transition of innovative solutions requires multiple engaged and empowered stakeholders. We have assigned responsibilities to, and received concurrence from, the following stakeholders relative to this SBIR Phase II project:

Required: End-User/Operator/Warfighter - stands to benefit from the solution) Points of Contact for <<AF End-User Organization’s>> Participation in the SBIR Phase II Project

Lead End-User POC (required): <<Name /Rank/Title/ Email / Phone Number / / initials>> Alternate End-User POC (required):

Required: Customer (i.e Acquirer) Points of Contract <<AF Customer Organization’s>> Participation in the SBIR Phase II Project

Lead Customer POC (required): <<Name /Rank/Title/ Email / Phone Number / / initials>> Alternate Customer POC (required):

Name of supporting PEO: (if applicable):

Name of supporting SPO: (if applicable):

Staff Functions (As Applicable) Providing Concurrence:

Finance:

Contracting:

Commander:

Legal:

Small Business:

Information Assurance/Cybersecurity:

Engineering/SPO/Test:

Public Affairs:

Security Office (for CAC, base access, etc.):

<<Insert additional stakeholders here as necessary>>

9. Transition Strategy: (DELETE FROM TEMPLATE BEFORE SIGNING: the SBIR Program is centered around one core goal – increasing the likelihood of “transition” to Phase III (getting to the operator/warfighter for operational use… AKA NOT gathering dust on a shelf). Describe your strategy for transition – answer the question, “if Phase II is proving successful, what will we do next?” and address, at a minimum, Phase III funding sources, the role of Requirements (if applicable), and contract vehicle).

10. Installation Access: <<SBIR Company>> <<will/will not>> require access to military installations to perform the proposed work under Phase II. (DELETE FROM TEMPLATE BEFORE SIGNING: if they will require CAC/Base Access, include the following) <<Security Office>> confirms that, if Phase II is awarded with the requisite terms and conditions for installation access by government contractors, they will permit/support such access.

11. Conclusion: We are very committed to this project’s success, and hope that the above information is helpful in making a selection. Please feel free to reach out with questions.

Enclosure: Attachment(s)

Attachment 1: Schedule of Milestones

ATTACHMENT 1:

SCHEDULE OF MILESTONES

(DELETE FROM TEMPLATE BEFORE SIGNING: This NOTE applies to Matching Funds only. If matching funds are received in full before the Phase II proposal deadline, include TWO sets of milestones. One scoped to include matching funds, and one with no matching funds to plan for unexpected circumstances, e.g., Continuing Resolution.

The following chart should be used to detail the milestones, which represent completion of measurable RDT&E events. Status reports cannot be milestones. Describe the method to determine each is demonstrably completed. Associated payments for each must reflect the actual, full costs to complete. If applicable, identify proposed base and option efforts.

TASK

(Maximum 10 Milestones)

NOTE – the first task (to include all 5 columns ) must be verbatim. All other milestones below are examples.

01 - Finalize customer requirements for adaptation and prepare R&D plan

Attachment 2: Non-Proprietary Work Plan

ATTACHMENT 2:

NON-PROPRIETARY WORK PLAN

(NOTE: The intent of having this section in the MOU is to allow the Air Force Stakeholders to see the Work Plan before they sign their names against the effort. This is to avoid the scenario where an Air Force Stakeholder signs a Customer Memorandum based on the content of the deliverable schedule in ATTACHMENT 2, only to have the details surrounding that work changed in the Work Plan. This also allows us to easily incorporate the Work Plan into the subsequent award of the Phase II, rather than referencing the proposal which limits distribution.)

Attachment 2: Phase III Transition Resources – delete before signing

ATTACHMENT 2:

Phase III Transition Resources

Examples of actions that AF Customer can take in transition strategies include, but are not limited to, the following:

· AF Customer would consider transitioning the SBIR technology by pursuing one or more specific transition strategies, such as an acquisition program transition plan, found in Equipping Warfighter with Small Business Ingenuity: The Air Force SBIR/STTR Phase III Desk Reference (v. 2.0, JAN 2019). Transition plans may be focused on risk reduction, insertion of new technologies, increased competition, replacement of obsolete equipment, etc. The Desk Reference contains several examples of approaches to transition strategies. The Desk Reference is found on the website of the Air Force Office of Small Business Programs (SAF/SB): https://www.airforcesmallbiz.af.mil/Portals/58/Phase%20III%20Desk%20Reference%20V%202%200%20PhaseIII_BookletV2-JAN2019-88ABW-2016-0636-low-res.pdf.

· AF Customer would consider transitioning the SBIR technology by awarding (or by using an assisted acquisition agreement to award) the SBIR company a Phase III contract via the Phase III special acquisition preference (sole source) and/or via the sole source authority of Section 8(a), HUBZone, WOSB, or SDVOSB programs. This Phase III contract may be for further development, testing, and evaluation, or for production and delivery.

· AF Customer would consider transitioning the SBIR technology by granting the SBIR company a Phase III special acquisition preference (short of sole source) in specific upcoming competitive acquisitions.

· AF Customer would consider transitioning the SBIR technology via assistance and incentives available under the Air Force Commercialization Readiness Program (CRP).

· AF Customer would consider transitioning the SBIR technology into AF Customer’s acquisition program(s) via competitive or noncompetitive subcontracts using tools such as the Phase III special acquisition preference, SBIR technology transition goals, and SBIR transition incentives under small business subcontracting plans of prime contractor(s) supporting AF Customer, as provided in Reference (b) and DoDI 5000.02T, Operation of the Defense Acquisition System (07 January 2015, Incorporating Change 6, 23 January 2020, Enclosure 1, Table 3).

· AF Customer would consider transitioning the SBIR technology by awarding the SBIR company a slot on, or setting aside work under, AF Customer’s Phase III multiple-award contract authorized by FY2018 NDAA, Public Law 115-91, Section 1710, Pilot Program for Streamlined Technology Transition from the SBIR and STTR Programs of the Department of Defense.

· AF Customer would consider transitioning the SBIR technology by awarding the SBIR company (or a team including the SBIR company) a Phase III non-procurement instrument with or without a follow-on procurement (e.g., grant, cooperative agreement, or other transaction agreement with or without a follow-on production contract).

· AF Customer would consider transitioning the SBIR technology by supporting funding and/or other assistance for the SBIR company under the Rapid Innovation Program (RIP), the Defense Production Act (DPA), and/or the Mentor-Protégé Program (MPP) of the Air Force or of any other Federal agency.

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