DIU, Defense Innovation Unit, Steve Blank, Mike Brown, Joe Felter, Technology, Innovation and Great Power Competition, TIGPC, Gordian knot Center

1. Accelerating Commercial Technology for National Security 1
DIU Overview
October 19, 2021
Michael Brown, Director
Michael Madsen, Director of Strategic Engagement

2. Accelerating Commercial Technology for National Security 2
TECH DOMINANCE IS THE
NEW GLOBAL BATTLEGROUND
Success no longer goes to the country
that develops a new technology first, but
rather to the one that better integrates it
and adapts its way of fighting.
2018 National Defense Strategy
Accelerating Commercial Technology For National Security 2
“
Image Source: Center for a New American Security
Game Changing Technologies
● AI
● Quantum
● Hypersonics
● Cyber
● Biotechnology
● 5G
● Space
● Autonomy

3. Accelerating Commercial Technology for National Security 3
U.S. AND DEFENSE SHARE OF GLOBAL R&D FUNDING IS DECREASING
Data Source: Congressional Research Service
Technologies funded by USG
and transitioned to
commercial sector:
■ Microelectronics
■ Touch screen
■ GPS
■ Space launch
■ Satellite imagery
1960s
1960
GLOBAL R&D
EXPENDITURES
2016
GLOBAL R&D
EXPENDITURES
U.S. Defense Related (36%)
Other U.S. & USG (33%)
Rest of the World (31%)
U.S. Defense Related (4%)
Other U.S. & USG (24%)
Rest of the World (27%)
Technologies from
commercial sector and
transitioning to USG:
■ 5G
■ AI
■ Biotechnology
■ Mobile payments
■ Quantum computing
■ Batteries & Power
Systems
2010s-Now

4. Accelerating Commercial Technology for National Security 4
WHY COMMERCIAL U.S. R&D Expenditures by Source: 1953 - 2019
Source: National Science Foundation, National Patterns of R&D Resources
Top Tech
Companies
Outspend
Primes 11x
in R&D
$70.5B
$6.2B
Facebook
Alphabet
Microsoft
Amazon
Apple
Lockheed Martin
Raytheon
Northrop Grumman
General Dynamics
Boeing
$U.S.
Billions
(current)

5. Accelerating Commercial Technology for National Security 5
DIU is a fast-moving, cross-DoD organization
focused exclusively on commercial companies
to solve national security problems.
CORE DIU, NSIN, & NSIC MISSIONS
5
Accelerating Commercial Technology For National Security
ACCELERATE
TRANSFORM
DoD adoption of commercial technology
Military capacity and capabilities
STRENGTHEN
The national security innovation base
National Security Innovation Network:
Builds networks to generate solutions
National Security Innovation Capital:
Stimulates private investment in dual-use tech

6. Accelerating Commercial Technology for National Security 6
INCREASING ADOPTION OF COMMERCIAL TECH
AND GROWING THE NSIB
EARLY STAGE
COMPANIES
VENTURE CAPITAL
INVESTORS
INCUBATORS
RESEARCHERS
NONTRADITIONAL
VENDORS
NSIB
ECOSYSTEM
CONCEPT
STAGE
DEVELOPMENT
STAGE
PROTOTYPE
STAGE
PRODUCTION
STAGE
NATIONAL SECURITY
INNOVATION
NETWORK
● Source new talent
● Commercialize tech from DoD labs,
incubators, and accelerators
● Develop novel solutions for DoD
challenges with startups & academia
NATIONAL SECURITY
INNOVATION CAPITAL
● Invest in critical hardware
● Provide early customer
demand signals to the
market
CORE DEFENSE INNOVATION UNIT
● Provide companies early revenue
● Prototype and transition commercial tech to DoD
within 12-24 months
TRADITIONAL
VENDORS

7. Accelerating Commercial Technology for National Security 7
BEST COMMERCIAL TECH TO DOD
DIU, with DoD partners,
competitively selects the best technology to
prototype, transition, and scale solutions.
● Knowledge of and access to leading technologies
● Competitive prototype process-->proven solutions
● Delivery of capabilities in 12-24 months
● Solutions at commercial cost to save taxpayer $
● Simple process and fast time to award
● Access to large volume defense contracts
● Opportunity to solve high-impact national security
problems
Commercial
Technology
Department
of Defense

8. Accelerating Commercial Technology for National Security 8
UNIQUE PROJECT LIFECYCLE - FAST & COMPETITIVE
Problem Curation
& Diligence
● Receive, understand, and evaluate DoD partner problem
● Confirm commercial market exists to address problem
Commercial
Solutions
Opening (CSO)
Phase 1 ● Solicit digital proposals in response to a problem statement
Phase 2 ● Evaluate proposals and invite a short list of bidders to pitch
Phase 3 ● Select contract awardee/s and negotiate agreement
Prototyping ● Execute prototype project
Transition
● Award non-competitive follow-on agreement to successful performers
● Deliver and scale solution to transition partner/s and beyond
5-100+
5-20
1-5
1-5
1-2
Approximate Number of
Vendors Participating
~10 business days
60-90 days to
contract award
(goal)
12-24 months

9. Accelerating Commercial Technology for National Security 9
STRENGTHENING THE NATIONAL SECURITY INNOVATION BASE
2300+ companies in 46 states & DC
competed for DIU contracts
180+ companies in 24 states awarded
DIU contracts
● 65 to first-time DoD vendors
● 165 to non-traditional vendors
DIU Locations

10. Accelerating Commercial Technology for National Security 10
TECHNOLOGY FOCUS AREAS
AI/ML Autonomy Cyber Human Systems Space
Advanced Energy
& Materials
Where the Commercial Sector is in the Lead

11. Accelerating Commercial Technology for National Security 11
AI FOR PREDICTIVE MAINTENANCE
Improving Mission Readiness
Solution
● Integrate all relevant data: sorties, operator
comments, maintenance logs, oil samples, etc.
Impact
● Transitioned to production contract with $95M
ceiling to enable access across DoD
● Increased readiness by anticipating equipment
failures, ensuring available supply, and optimizing
maintenance schedules
● Projected 3-6% mission capability improvement
and up to 40% unscheduled maintenance
reduction
DoD/USG Partners Commercial Vendors
● USAF (U-2, F-16) (F-35 PO)
● Undersecretary of the Army
● Army Aviation PMO
● NAVSEA 05
● Bradley PMO
● USMC
● NEXLOG
● C3.ai (transitioned)
● Uptake (prototyping)
Problem
Curation
Diligence CSO Process Prototyping Transition
Problem
● Distributed global logistics operations
● Legacy systems with maintenance challenges
● Performance data volume
E-3 Sentry C-5 Galaxy
F-16 Fighting Falcon
Black Hawk
Apache
Bradley
M88 Hercules
F-35 Lightning II
Aircraft Carriers

12. Accelerating Commercial Technology for National Security 12
xVIEW 3
Synthetic Aperture Radar (SAR) for Dark Vessel Detection
Partners Open Source
● USG: USCG, DHS, NOAA,
NRL, NIWC, NMIO, DoS,
SOUTHCOM, INDOPACOM
● Nonprofit: Global Fishing
Watch
● Open Source Competition
● Government Purpose Rights
● Evaluation Only Competition
● Award IAW 10 U.S.C. § 2371b
Problem: Malicious actors in maritime domains operate
dark vessels (DVs) that do not broadcast AIS or VMS
signals, which makes it difficult to rapidly detect these
vessels that support illegal activities such as drug
smuggling, illegal, unreported, and unregulated (IUU)
fishing, and human trafficking.
115 m, 12 kts, 179°
Solution
● Host a public prize competition to develop
machine learning models that automatically
detect DVs’ location, size, and speed.
● Source data from persistent, space-based
synthetic aperture radar (SAR) satellite images.
Impact
● Validate commercial SAR detection for DVs
despite cloud cover or bad weather.
● Decrease response time to intercept DVs.
● Optimize deployment of U.S. and partner country
assets.
Planning
Prize
Competition
Downselect
Select
Winner(s)
Deploy
Solution

13. Accelerating Commercial Technology for National Security 13
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