P07 HQ0034269CSO01 - Area of Interest - DIVE - final.docx

Area of Interest (AOI) for Defense Industrial Venture Engagement

Instructions

See the current version of HQ003425CSO2, Section 2. CSO Procedure, 2.2. Phase 1: White Papers

Agreements Specialist mary.b.mcfann.civ@mail.mil

Danny Uhr Agreements Officer danny.j.uhr.civ@mail.mil

Senior Advisor, Contracts osd.pentagon.ousd-r-e.mesg.cso-mbx@mail.mil

Background:

The Department of War (DoW) Office of Strategic Capital (OSC) is responsible for shaping private investment toward national security priorities. To do this effectively, OSC must operate from accurate, timely, and context rich data on emerging technologies, capital markets, and industrial base conditions. Decision speed is constrained today by fragmented information, inconsistent analytic tools, and uneven workforce understanding of the ecosystems driving defense relevant innovation.

Section 230 of the 2025 National Defense Authorization Act (NDAA), provided at the bottom for reference, directs the Department to deepen its understanding of emerging technology and commercial business environments. OSC intends to use this Area of Interest to close these knowledge gaps and accelerate Department readiness.

Problem Statement:

OSC seeks complete innovative solutions that enable personnel of the Department to rapidly understand the technology and business ecosystems shaping the future defense industrial base. Solutions must deliver operational insight, not theoretical analysis, and must reduce time to understanding and deliver skills so Department personnel can effectively contribute and translate between private market companies, especially private credit, and banking professionals. Combined with established military experience and perspective this should result in capabilities to source, assess, and close financial transactions within OSC.

OSC seeks solutions in one or more of the four areas of primary focus:

A. Market Research - understanding of, connectivity with, and access to knowledge about critical and emerging defense industrial base capabilities; and

B. Capital Markets - Understanding of the strategic role that venture capital and private capital play in shaping future, scaling, sustainment and modernization for the defense industrial base. This includes but is not limited to all OSC covered technology areas and Department strategic priorities.

C. Lean Launchpad Methodology - Prototype business processes to rapidly acquire, deploy, and train personnel of the Department on the use of commercial off the shelf software and/or training solutions that enable rapid attainment of the understanding and access mandated by Section 230 of the 2025 NDAA.

D. Placement Assistance – Facilitate placement in qualifying private-sector organizations who have functions and expertise relevant to the responsibilities of OSC, shadow senior leaders within those organizations, and develop meaningful metrics capturing outcomes and effects (e.g., time to competency, number of successful financial transactions, and impact on national security priorities).

Solution Attributes:

A. Understanding of, connectivity with, and access to knowledge about critical and emerging defense industrial base capabilities.

OSC seeks to find and secure the best solutions available from private industry to rapidly develop understanding of, connect with, and access knowledge about critical and emerging defense industrial base and national security capabilities. Compelling solutions will need to demonstrate a structured immersion approach that embeds OSC personnel within relevant technology ecosystems across diverse geographic regions of the United States, and a methodical framework to translate the acquired industry-specific context into actionable intelligence about how venture capital, project financing, and private equity operations are shaping future defense industrial base requirements.

B. Understanding of the strategic role that venture capital, project finance and private equity operations have in shaping future sustainment and modernization requirements for the defense industrial base.

OSC seeks to develop comprehensive insights into how venture capital, project financing, and private equity operations influence the trajectory of relevant technologies and industrial capabilities. Compelling solutions will need to demonstrate a sophisticated analytical framework that maps capital flow patterns to emerging/defense technology priorities, but also a practical methodology for identifying early signals of private investment-driven shifts that will impact future defense industrial base sustainment and modernization requirements.

C. Prototype business processes to rapidly acquire, deploy, and train personnel of the Department on the use of commercial off the shelf software and/or training solutions that enable rapid attainment of the understanding and access mandated by Section 230 of the 2025 NDAA.

OSC seeks innovative approaches to streamline the acquisition and implementation of commercial solutions that accelerate personnel competency in defense industrial base, venture capital, project financing, and private equity decision analysis. Compelling solutions will further the goals of Executive Orders 14271 and 14275 while minimizing integration burdens and accelerating personnel competency in interpreting both technology ecosystem trends and private capital dynamics.

D. Placement Assistance – Facilitate placement in qualifying private-sector organizations who have functions and expertise relevant to the responsibilities of OSC, shadow senior leaders within those organizations, and develop meaningful metrics capturing outcomes and effects (e.g., time to competency, number of successful financial transactions, and impact on national security priorities).

OSC seeks to establish a structured immersion program that creates pathways for Department personnel to gain direct experiential learning within qualifying private-sector organizations. Compelling solutions will need to demonstrate a systematic approach to identifying and securing high-value placement opportunities within organizations that have functions and expertise relevant to the responsibilities of OSC, but also a robust performance measurement framework that quantifies both individual competency development and organizational capability enhancement resulting from these placements in terms of tangible national security outcomes.

Solution Maturity:

Only complete solutions will be accepted. Solutions should be sufficiently mature and may be expected to be deployed as a minimum viable product as soon as 30 days after award. An individual company is not limited to involvement in only one proposed solution (i.e. White Paper submission), so long as each solution is substantively unique. Partnerships and teaming arrangements are encouraged. Only complete solutions will be accepted; partial solutions will not be considered.

Prior Demonstration and Usage:

When applicable, companies should provide evidence demonstrating capability in relevant and/or representative environments and show experience in successfully fielding solutions into operations. White papers should annotate to what extent specifications and attributes included in the White Paper have been verified (e.g., usage in commercial environments, testing within academia, etc.).

Companies currently performing on an existing DoD contract should highlight the unique, innovative, and/or previously under-utilized aspects of their solution submitted in response to this area of interest to be considered for an award.

Eligibility:

Requirements for participation include being able to deliver the technical attributes and capabilities described in the Area of Interest along with satisfying at least one of the conditions for eligibility outlined in the CSO HQ003425CSO02 Section 1.4. Eligibility. All relevant submissions received in accordance with the instructions in this AoI and the CSO will be evaluated, including those fully or partially produced outside of the USA.

Procedures:

Any award resulting from this AOI shall be in accordance with the CSO procedures detailed in HQ003425CSO02. The instructions in the CSO, and any additional instruction as specified in this AOI posting, must be followed. The Government intends to conduct this AOI in two phases as detailed in the CSO. To enter into a prototype OT agreement, solutions must satisfy the definition of a “prototype” as defined in 10 U.S.C. 4022(e)(5) and at least one of the following conditions found at 10 U.S.C. 4022(d).

Response:

White papers submitted in response to this AoI shall be submitted to the CSO POC at osd.pentagon.ousd-r-e.mbx.cso@mail.mil no later than the date and time listed in the “White Papers Due” block in the table at the top of this AoI. The Government may extend the response date by amending this AoI. Companies are responsible for monitoring SAM.gov for amendments to this AOI posting.

Questions:

Questions should be sent to the CSO POC at osd.pentagon.ousd-r-e.mbx.cso@mail.mil. Please be advised submitted questions and answers may be posted to SAM.gov.

Section 230 of the 2025 National Defense Authorization Act

SEC. 230. AUTHORITY FOR TEMPORARY ASSIGNMENT OF EMPLOYEES OF THE OFFICE OF STRATEGIC CAPITAL TO CERTAIN PRIVATE-SECTOR ORGANIZATIONS.

(a) AUTHORIZATION. Using the authority provided under section 1599g of title 10, United States Code, the Secretary of Defense, acting through the Director of the Office of Strategic Capital, may carry out a program under which the Director arranges for the temporary assignment of an employee of the Office to a qualifying private-sector organization.

(b) OBJECTIVES. The objectives of the program under sub section (a) shall be---

(d) QUALIFYING PRIVATE-SECTOR ORGANIZATION DEFINED. In this section, the term "qualifying private-sector organization" means a private-sector organization that has functions and expertise relevant to the responsibilities of the Office of Strategic Capital, which may include organization such as a venture capital firm, private equity firm, or other such organizations as determined appropriated by the Director of the Office.