RFQ HR001124Q0002 Amendment 01 Attachment 5 Evaluation Criteria.pdf

HR0011-24-Q-0002 Amendment 01

Attachment #5 26 April 2024

EVALUATION CRITERIA AND METHODOLOGY

THE DEFENSE ADVANCED RESEARCH PROJECTS AGENCY (DARPA)

BLANKET PURCHASE AGREEMENT (BPA)

DARPA COMMERCIAL ACCELERATORS

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BASIS FOR AWARD

DARPA anticipates establishing multiple BPAs resulting from this RFQ which represent the best value to the government, price and other factors considered. The evaluation factors for this BPA are 1) Key Performance Indicators (KPIs) and Quote Narrative and 2) Price.

DARPA will evaluate the degree to which vendors demonstrate the ability to accomplish the efforts in the SOW using the evaluation criteria provided. The Government reserves the right to select for award all, some, one, or none of the quotes received in response to this RFQ and to make awards without exchanges with Quoters. The Government also reserves the right to conduct exchanges if it is later determined to be necessary.

EVALUATION CRITERIA

KEY PERFORMANCE INDICATORS (KPIs)

The ultimate goal of the DARPA Commercial Accelerator program is to commercialize DARPA-funded technologies across any number of markets thus assuring the success of the Embedded Entrepreneur Initiative/Minimum Viable Product (EEI/MVP) Performer. The program accomplishes this goal in part by helping DARPA Performers develop product strategies, customer relationships and go-to-market plans, identify non-adversarial funding (investments from rival nations in U.S. companies that could block the DOD from working with them for national security reasons) for growth and scale through capital markets, strategic partnerships, or government awards/contracts, and ultimately secure such customers and funding.

This assistance is to be provided by Senior Commercial Advisors (SCAs) and the Embedded Entrepreneurs (EEs) who work with the EEI/MVP Performers to guide them on their journey to Market.

DARPA Commercial Accelerators are responsible for identifying, assigning, and managing SCAs based on the requirements of each DARPA Performer that can be derived from a combination of the DARPA Performer’s business maturity, product market readiness, and customer access.

DARPA Commercial Accelerators are expected to have the following attributes. Quoters shall discuss these and other qualifications relevant to this RFQ in the narrative response section:

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1. Deep and robust strategies and capabilities for introducing EEI/MVP Performers to private capital networks with the appropriate risk tolerance, the fields of interest, and a focus on early-stage investments.

2. An understanding of the qualifications needed for successful SCAs.

3. A robust, cost-effective capability for providing qualified SCAs and identifying EEs from within their professional network.

4. Track record of supporting entrepreneurs in commercializing their technology.

5. Management and program support tools in place to monitor the progress of their SCAs throughout the DARPA Performer’s EEI/MVP program.

In summary, Quoters should address their ability to provide DARPA Commercial Accelerator services in accordance with the attributes and criteria listed in Table 1 and supporting descriptions below it.

Attribute Criterion Regional Innovation Ecosystem and Estimated Net Economic Benefit

Ranking (see below) for Startups/ Private Investors/ Workforce Talent

Track Record with Startup Performers Number of start-ups funded, funding levels, maturity of portfolio, exits, mergers, and acquisitions

Ramp-Up Time / Scalability / Adoption/

Organization’s agility measured in its ability to put teams in place, velocity of deal flow, and ability to instantiate and grow teams of subject matter experts.

Economics and Financial Performance Number, sizes, and returns for funds

Market Reach and Dual-Use Number of markets addressed and DoD/commercial products and services.

Professional Network

Number of performers in portfolios, connections to other funds, participation in regional development programs, connections to academic institutions and government agencies, etc.

Talent Number of subject matter experts on staff and in network that are potential Senior Commercial Advisor and Embedded Entrepreneur candidates.

Managing Special DoD Requirements DARPA Internal Project Requirements Table 1. DARPA Commercial Accelerator Screening Criteria. This table lists key performance attributes expected of any DARPA Commercial Accelerator and criteria for assessing the Quoter’s fitness for being a DARPA Commercial Accelerator.

Regional Innovation Ecosystem and Estimated Net Economic Benefit (Table 1)

DARPA Commercial Accelerators Quoters should show how they have received development funds, what the impact of these funds have been for their portfolio companies, the net economic benefit created for their region, and how they will leverage all the potential opportunities in their region to promote the success of DARPA Performers in the EEI/MVP program.

With regard to facilitating ecosystem participation for pre-seed, seed, and series A start-ups, researchers, university spin-outs, and other growth-stage companies, describe in detail the following:

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1. Show how many development dollars you’ve received in support of your fund and portfolio companies.

2. Summarize your track record for raising funds from development organizations in your region.

3. How many performers have created a new product or capability that is being used by DoD commercial or both, followed by funds raised (private or govt) and then Merger and Acquisitions (M&A), exit, etc.

DARPA Commercial Accelerators will be in regions with a demonstrated track record of bringing together strategic investment capital, entrepreneurial talent, and commercial and DoD customers in order to ensure the most important DARPA-funded technology is advanced for national and economic security.

Regional ecosystems are ranked by the US Chamber and each regional Chambers of Commerce.

Rankings consider each region’s resources such as diverse employment opportunities, university research, location of federal labs and DoD bases, industry base, ability to attract private investment, and other unique regional infrastructure. Areas with high rankings attract high-tech accelerators and incubators with some regional governments even providing matching funds, development grants, and additional services to keep their region economically competitive.

Track Record with Startup Performers (Table 1)

With regard to facilitating ecosystem participation for pre-seed, seed, and series A start-ups, researchers, university spin-outs, and other growth-stage companies, describe in detail the following:

1. What is your process for building and growing your companies’, stakeholders’, and members’ inclusion and participation in the larger business ecosystem.

2. What is your track record (funds raised, deal velocity, number of exits, etc.) for identifying, funding, and exiting companies in your portfolio(s).

3. In addition to staff, what is your estimated percentage of membership or participation in regional opportunities and resources broken out by DoD, Universities, Investors, Entrepreneurs/Startups, Regional State/Non-profit (i.e. USG Government / DOD/Investor/Entrepreneur/Commercial/University/Non-Profits) etc.

Ramp up, Scalability, and Adoption (Table 1)

With regard to Ramp up, Scalability, and Adoptions and pre-seed, seed, and series A start-ups, researchers, university spin-outs, and other growth-stage companies, describe in detail your track record embedding teams in your portfolio performer organizations, the velocity of your deal flow (percentage of deals to looks, number of performers in your funds, time from first look to term sheet and funding, etc), and ability to identify and deploy subject matter experts in areas outside of or adjacent to your fund strategy.

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Economics and Financial Performance (Table 1)

With regard to capital raised for and products and services created by pre-seed, seed, and series A start-ups, researchers, university spin-outs, and other growth-stage companies, describe in detail your process or past performance in the following areas:

1. The number and type (e.g. VC, Family Offices, Angels, Corporate Venture Funds) of U.S. private sector investors that have been secured as funders.

2. The number and type of commercial products and/or services launched, fielded, or are otherwise currently offered for sale including into which markets or industries they are being sold. Specificity is required (e.g., commercial, domestic and/or international, DoD, or other US State of Federal Government agency). If sales are international, specify market sectors and countries.

3. The number of domestic commercial, DoD, or other US, State, or Federal Government agency adoptions of product and services containing one of the 14 DoD Critical Technologies (See Statement of Work) in excess of over $250M of combined in sales.

4. Track record and expertise for any other successful technology transitions in any of the 14 DoD Critical Technology Areas.

5. The process for vetting investors to ensure problematic adversarial sources of capital are not included in any fund raising.

6. Track record of putting in place mitigation plans if problematic foreign sources are identified.

EEI/MVP Performers must be able to attract commercial interest and investment coupled closely to the future needs of the DoD. Importantly, engagement with commercial interests and pursuit of investment should be focused on non-adversarial sources and consider the fourteen DoD technology areas identified in the SOW.

Market Reach and Dual Use (Table 1)

With regard to market reach and dual-use for and products and services created by pre-seed, seed, and series A start-ups, researchers, university spin-outs, and other growth-stage companies, describe in detail your process or past performance in the following areas:

1. Your process for connecting performers to sources of investment capital (conference sponsorships, pitch events, introductions, etc.)

2. The number and type of fund strategies you employ and the Market sectors you reach including commercial, dual-use, and U.S. Government.

3. The number and type of companies you’ve successfully exited and the Markets they serve including commercial, dual-use, and U.S. Government.

Professional Network (Table 1)

Show how you are connected to the broader regional and entrepreneurial ecosystem by listing the number of performers in portfolios, connections to other funds, participation in regional development programs, connections to academic institutions and government agencies, etc. and

26 April 2024 how you will leverage all the potential opportunities in their region to promote the success of DARPA performers in the EEI/MVP program.

Talent (Table 1)

In this offering, the DARPA Commercial Accelerators will provide SCAs and EEs from their region to work with DARPA EEI/MVP Performers. SCAs and EEs are highly experienced individuals with a demonstrable track record of technical and business success. The ideal regional SCA brings a wealth of knowledge and an extensive network to the EEI/MVP Performers. They have leadership experience in all stages of a successful start-up company including ideation and technology demonstration, productization, raising investment capital (venture, family offices, corporate R&D), executive management, and scale-up.

The SCA must have experience and a network in one or more key markets that can benefit from DARPA commercialization and are likely areas of market opportunity for DARPA Performers participating in the EEI/MVP program (e.g., aerospace, semiconductors, biotech, cyber, pharma, etc.). Moreover, SCAs must have the deep contacts to talent, with the ability to attract top candidates for the EEI/MVP Performer. The SCAs leverage their ecosystem to ensure that DARPA Performer can tap into other value-added services, infrastructure, etc.

In general, SCAs are required to support the tasks shown in Table 2 and selection for a BPA will also be predicated on their ability to support these tasks. In a complementary fashion, EEs are identified and selected based on the specific needs of the DARPA EEI/MVP Performer as identified by a collaboration between the DARPA Performer and the SCA and defined in a statement of work in the Performer’s EEI/MVP proposal.

SCA Task Description Due Diligence Business case analysis for the EEI/MVP investment to be presented to the Deal Team.

EEI Start Pitch SCA presents the business case and the performer’s EEI/MVP draft statement of work.

EE Recruitment The SCA will collaborate with the DARPA Performer to recruit an embedded entrepreneur.

This includes reviewing the EEI/MVP SoW, candidate qualifications, and identifying candidates from within their network.

Review SoW, Tasks, and Transition Events Review the progress of tasking in the Performer’s SoW and report on transition events such as additional government awards, jobs created, products launched, private equity, mergers and acquisitions, and new companies formed.

Coaching and Mentoring The SCA engages regularly with the DARPA Performer throughout the EEI/MVP contract to provide coaching and mentoring as appropriate and necessary.

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Monthly and Quarterly Reporting The SCA provide written monthly status reports to DARPA Commercial Strategy and presents status at in-person Quarterly Reviews.

EEI/MVP Close Out The SCA provides a written final report at the end of the EEI/MVP contract summarizing the performance of the EE and the results of the program.

Table 2. Summary of SCA Tasks. Senior Commercial Advisors play a key role in the EEI/MVP program in supporting the development of the commercial business case for DARPA investment in the DARPA Performer’s EEI/MVP program and in supporting and reporting on the progress of the Embedded Entrepreneur.

Summarize how you will assure that each SCA provides the expected level of support to the DARPA Performer, especially in the later phases of the EEI process such as coaching and mentoring, EEI performance reviews, and support for commercialization events.

Managing Special DoD Requirements (Table 1)

With regard to collaboration between DoD or other US Government agencies and pre-seed, seed, and series A start-ups, researchers, university spin-outs, and other growth-stage companies, describe in detail the following:

1. Any unique capabilities, facilities, and IT infrastructure you have for supporting the unique needs of some DoD and other US Government customers when developing products and/or services (e.g. clearances, secure facilities and networks, etc.)

2. Any restrictions you may have, including lack of facilities and IT infrastructure, that may limit interaction with DoD and other US Government agencies.

QUOTE NARRATIVE

In this section, Quoter shall address how they are a good fit for the DARPA Commercial Accelerator program. This section may include but is not limited to unique capabilities and offering, cultural alignment, managing conflicts of interest, staffing plan, past experience, and any other special considerations as examples. The Government will also evaluate the following:

Unique capabilities and offering: A brief description of capabilities, processes or other specific qualities that make the Quoter uniquely qualified to meet the needs of this RFQ.

Cultural Alignment: DARPA Commercial Accelerator must articulate how their culture aligns and track record aligns to the basic principles of DARPA culture. DARPA explicitly reaches for transformational change instead of incremental advances. DARPA is also collaborative, working within an innovation ecosystem that includes academic, corporate and governmental partners, with a constant focus on the DoD and National Security. This vibrant, interlocking ecosystem of diverse collaborators has proven to be a nurturing environment for the intense creativity that DARPA cultivates, and this same set of cultural tenets and practices extend to both the DARPA Commercial Strategy organization and DARPA Commercial Accelerators.

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MANAGING CONFLICTS OF INTEREST (Appendix)

With regard to conflicts of interest between the Quoter and DoD or other US Government agencies and pre-seed, seed, and series A start-ups, researchers, university spin-outs, and other growth-stage companies, describe in detail the following:

1. Your process for identifying conflicts of interest between your company, fund partners, SCAs, EEs, the U.S. Government, academia, business relationships, other sources of investment, partnerships, and /or other potential sources of conflicts not listed here including adversarial capital, if any, within your fund.

2. Your process for resolving conflicts of interest between your company, fund partners, SCAs, EEs, the U.S. Government, academia, business relationships, other sources of investment, partnerships, and /or other potential sources of conflicts not listed here including adversarial capital, if any, within your fund.

3. Your experience in the past in identifying and resolving any conflicts of interest listed above.

BPA Holders, to include all subcontractors, will be required to establish an OCI mitigation plan with DARPA if the BPA Holder is a former, current, or potential future DARPA Performer on DARPA research contracts. BPA Holders will be permitted to establish an OCI mitigation plan with DARPA for this purpose.

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PRICE QUOTE

Your price quote must be a separate document, Volume II, and shall include pricing and basis for pricing for the following. Pricing for SCA Tasks shall be per DARPA Performer/technology nomination.

Period CLIN Description

SOW

Tasks Complexity

CLIN

Type Price

Year 1 0001 Stand-up Activities A – E N/A FFP Year 1 0011 Election Form/Deal Team 0 – 3 N/A FFP Year 1 0021 Coaching and Mentoring 4 – 9 Simple FFP Year 1 0022 Coaching and Mentoring 4 – 9 Moderate FFP Year 1 0023 Coaching and Mentoring 4 – 9 Complex FFP Year 2 1001 Stand-up Activities A – E N/A FFP Year 2 1011 Election Form/Deal Team 0 – 3 N/A FFP Year 2 1021 Coaching and Mentoring 4 – 9 Simple FFP Year 2 1022 Coaching and Mentoring 4 – 9 Moderate FFP Year 2 1023 Coaching and Mentoring 4 – 9 Complex FFP Year 3 2001 Stand-up Activities A – E N/A FFP Year 3 2011 Election Form/Deal Team 0 – 3 N/A FFP Year 3 2021 Coaching and Mentoring 4 – 9 Simple FFP Year 3 2022 Coaching and Mentoring 4 – 9 Moderate FFP Year 3 2023 Coaching and Mentoring 4 – 9 Complex FFP

N/A 0030 Travel and Expenses N/A N/A T&M

NTE $800,000.00

*Historically each SCA would spend approximately 200, 300, 400 hours per DARPA Performer for simple, moderate and complex projects respectively. These level-of-effort (LOE) estimates are inclusive of all SCA Tasks (Tasks 0-8) over a 12-month effort.

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EVALUATION METHODOLOGY

Volume I – Key Performance Indicators (KPIs) and Quote Narrative: The government will first evaluate the KPIs for all quotes. The Government will then identify the quotes that prove to have the best opportunity for success and only those quotes will be evaluated on the Quote Narrative. The Government will evaluate the quotes to determine the extent to which the Quoter demonstrates its technical capability, understanding and approach to the SOW requirements. The proposed approach must reflect a demonstrated understanding of the requirements and a sound, practical, and feasible method to accomplish all tasks, acceptable methods for ensuring the quality of deliverables.

Volume II – Price: Pricing will be evaluated for reasonableness and fairness.