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NEWS & EVENTS

Hicks Establishes SBIR/STTR Due Diligence Policy and Implementation Guidance

NEWS RELEASE: May 24, 2024

Deputy Secretary of Defense Kathleen Hicks signed a memorandum to establish policy and provide implementation guidance for the Defense Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Due Diligence Program May 13.

In accordance with the SBIR and STTR Extension Act of 2022, the goal of the Due Diligence Program is to mitigate security risks when small business concerns (SBCs) with ties from any foreign country of concern seek SBIR/STTR funding.

Under Department of Defense policy, the Office of the Under Secretary of Defense for Research and Engineering (OUSD(R&E)) ensures consistent application of common minimum standards across all DoD services and components making SBIR/STTR awards to small businesses. The Defense SBIR/STTR Program, oversees DoD services’ and components' establishment and implementation of their SBIR/STTR Due Diligence Programs.

“We value the innovations and technologies derived from SBCs that enhance warfighter capabilities to support the DoD mission,” said Gina Sims, Defense SBIR/STTR Program director. “Working closely with the R&E leadership and DoD services and components, we will successfully implement this plan to vigilantly protect taxpayer funds and small businesses from foreign influence.”

In early 2023, Defense SBIR/STTR Program worked with the services, components, and key stakeholders to coordinate and plan the Due Diligence Program’s rollout. Additionally, DoD worked closely with the Small Business Administration to revise SBIR/STTR policy to incorporate due diligence requirements. As a result, all proposals submitted to the Defense SBIR/STTR Innovation Portal (DSIP) must include forms that assess security risks. Proposals without these forms are non-compliant and will not receive an evaluation.

To assist small businesses, the department introduced an online course on foreign ownership, control, or influence (FOCI), which defines the issue, explains what being under FOCI means, and details FOCI’s effect on a company seeking a SBIR/STTR award.

“As we strengthen our Due Diligence Program policy and implementation guidance, we want to assure small businesses that we are with them every step of the way and will provide the necessary support to ensure success,” Sims said.

To sign up for the FOCI course, visit https://www.projectspectrum.io/#/signup. For information on the Defense SBIR/STTR Program, visit www.defensesbirsttr.mil or follow the program’s LinkedIn page at: www.linkedin.com/company/dodsbirsttr.

About USD(R&E)

The Under Secretary of Defense for Research and Engineering (USD(R&E) is the Chief Technology Officer of the Department of Defense. The USD(R&E) champions research, science, technology, engineering, and innovation to maintain the United States military's technological advantage. Learn more at www.cto.mil, follow us on Twitter @DoDCTO, or visit us on LinkedIn.

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