Presented by: Keith R. Johnson

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SBIR
WORKSHOP
Presented by Keith R. Johnson
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SBIR Workshop Agenda

• Company Introduction
• SBIR Success Story
• Phase III Activities
• SBIR Challenges
• Summary and Discussion

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MISSION
Providing State-of-the-Art Software Products for
Commercial Thermal Analysis
Military Signature Analysis
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HISTORY
1996 ThermoAnalytics Incorporates (spin-off
from MTU) 1997 ? Win 1st Army Phase II SBIR 1998
1st Commercial RadTherm release (through
Ford/TACOM CRADA) ? 2nd Army Phase II
SBIR 1999 1st Dual-Use RadTherm / MuSES
release (via SBIR) 2000 TAI receives Tibbetts
Award and Army SBIR Quality Award ? Marines
Phase II SBIR 2001 TAI awarded Army Prime
Contractor of the Year and MI Commercial
Success Award 2002 Commercial Software Sales
from SBIR/CRADA Product more than Double ?
3rd Army Phase II SBIR plus Navy Phase II
SBIR 2003 ? 4th Army Phase II SBIR plus 2 Phase
Is
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STAFF 5 Offices in USA 26 Employees 12
Hold Advanced Degrees 4 Hold PhDs Sales
Representatives Germany United
Kingdom Japan Korea
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CORE COMPETENCIES

• Radiation Physics
• Computational Fluid Dynamics
• Thermal System Modeling
• Cross-Platform Software Development
• Code Optimization
• Graphical User Interface Design

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PRODUCTS
Systems/Component Level Thermal Modeling
Thermal /IR Signature Modeling
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CUSTOMERS

• DaimlerChrysler
• EDS
• Ford
• General Motors
• Jaguar
• Land Rover
• Mazda
• MSX International
• Opel
• Reiter
• Van-Rob Stamping
• Volvo
• Others

• Boeing
• Flight Safety International
• General Dynamics
• Lockheed
• Los Alamos National Lab
• Northrop Grumman
• Sikorsky
• SAIC
• Teledyne Brown
• Textron
• United Defense
• Army, Navy, Air Force, Marines, Coast Guard,
  NGIC, NAIC
• Others

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CURRENT PROGRAMS - 1
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CURRENT PROGRAMS - 2
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FUNDS FROM DIFFERENT AGENCIES
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PROJECTED GROWTH
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SBIR Workshop Agenda

• Company Introduction
• SBIR Success Story
• Phase III Activities
• SBIR Challenges
• Summary and Discussion

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COMMERCIALIZATION SUCCESS STORY

• Phase III SBIR Commercialization
• Software Product Sales to date
• Industry 1M
• Over 125 Licenses sold plus 250 Licenses in use
  at Ford
• Government 200K
• Export 200K
• Additional Investment
• DOD 1.9M
• DOT 175K
• Industry 668K
• TAI IRD 150K

• Success with Phase II SBIRs
• TACOM / NAC MuSES -1997
• TACOM / NAC HEV -1998
• Marines Vulnerability Ray-Tracer -2000
• TACOM / NAC Vehicle - 2002
• Naval Health Research Center - 2002
• TACOM / NAC Exhaust - 2003
• 2 New Phase I SBIRs - 2003

• Used in DoD Fielded System TAWS
• Current Use in Design of Army FCS, Marines AAAV,
  Navy DD(X)

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First Phase III Project Resulted in Five Awards

• 1. 2000 Phase II Army Quality Award.
• 2. 5th Annual Tibbetts Award from SBA.
• 3. 2001 Regional Prime Contractor of the Year for
  Region V.
• 4. 1st Place - Manufacturing Materials (Thermal
  Management Tool) from FLC-Midwest Region Annual
  Meeting Sep 2001.
• 5. Michigan Investment and Commercialization
  Success Award Nov 2001.

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Economic Impact to UP

• TAI Revenue 3M
• Payroll 1.5M
• Impact on Michigan Tech
• 1M of subcontracts to MTU and KRC to date
• 75K software royalties paid out to date
• Hired 9 MTU grads
• Hire 3-4 part time students per year
• TAI Spin-off from MTU resulted in 2001 Michigan
  Commercialization Success Award
• SBIR Program with Escanabas EMP
• Promoter of Keweenaw Industrial Council and
  Michigan Tech Smart Park
• Employee Ownership through ESOP

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SBIR Workshop Agenda

• Company Introduction
• SBIR Success Story
• Phase III Activities
• SBIR Challenges
• Summary and Discussion

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PHASE III LEVERAGED ACTIVITIES

• Army
• MuSES FCS
• HEV
• ARC
• Mobility
• AFRL
• WIDA Program TAWS
• Marines
• Raytracer for AAAV Vulnerability
• Navy
• DD(X)
• Thermoregulation
• DARPA - UGCV
• Montana DOT
• Road Condition Forecaster
• Big 3 Dual Use

PRIUS HEV Thermal Model
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PHASE III Army SBIR Activities

• TACOM has provided significant additional Phase
  III (topic A96-105) seed money to
• Provide new capabilities for MuSES to support
  the Future Combat Systems (FCS).
• We have completed our 2nd Phase II project
  (A97-080) in which a new design tool for Hybrid
  Electric Vehicles was produced and is called
  HEVsim.
• Attracted interest from the automobile companies
  and are planning a CRADA between one of the Big 3
  and the National Automotive Center (NAC) at
  TACOM.
• DARPA's Unmanned Ground Combat Vehicle primed by
  CMU is using our services and this software for
  its design.

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PHASE II Plus Army SBIR

• We have been awarded a 250K Phase II Plus after
  Attracting Matching Funds from the Navy DD(X)
  Program
• The DD(X) Prime Contractor is having us develop
  a Navy MuSES Code for help with Ship Signature
  and Thermal Design.

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NAVY Structured Sea Surface Model From Army
Phase II Plus
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Automotive Research Center (ARC) Industry Quad
Members TACOM, Clemson, TAI
Leveraged with Army Phase I SBIR

• Thermal Management
• Engine Cooling
• Electronic Cooling
• Advanced Component Design
• Phase Change Materials
• HEV Components
• Heat Pipes, etc.
• Signature Management
• Exhaust Cooling
• Skin Cooling

• These Features are By-Products of the ARC/SBIR
  Programs

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Army SBIR Mobility Vehicle Design Simulation
Demo
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SIMULATION SANDY LOAM - BUMPS
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Fielded System Target Acquisition Weather
Software (TAWS)
Winter's cold may help military track
Taliban 11/04/2001 - Updated 0845 PM ET By Dave
Moniz, USA TODAY .. Two years ago, the Air
Force began employing a sophisticated computer
program known as Target Acquisition Weather
Software, which uses climate models and other
variables to track differences in heat. One Air
Force general says the software can be used
effectively in cold weather because of the
contrast between heat-emitting objects and the
air around them. ..
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MARINES SBIR COMMERCIALIZATION

• Commercial Application Modeling Solar Loading
  through Glass
• Awarded Commercial Contract (30K - 2000) by Ford
  Motor Company as a Result of this SBIR (135K
  Follow-on 2001)
• Pro/E Toolkit Expertise Gained From this Program
  Made Pro/E to RadTherm Plug-in Possible
• RadTherm Commercial Thermal Modeling Tool
• Nov 2002 Software Release with RadTherm v7

Vulnerability Tool Raytracer
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BIG 3 RELATED COMMERCIAL PROGRAMS

• Ford
• 2 CRADAs with TARDEC for RadTherm
• 1M funding from 1994-2001, now free licensing
  agreement
• GM
• Purchased several RadTherm seats since product
  was commercialized
• DaimlerChrysler
• Previously funded us for CTD, now licensing
  RadTherm
• Related Domestic and Foreign Sales

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SOFTWARE DEVELOPMENT PLAN

• Funded by Current Phase II SBIRs
• TACOM / NAC Vehicle SBIR Phase II
• TACOM / NAC Exhaust SBIR Phase II
• Marines Vulnerability Ray-Tracer Phase II
• Naval Health Research Center Phase II
• Funded by Tri-Services Community
• ArmyFCS (TACOM), ARL
• Navy DD(X), SPAWAR, NRL
• Air Force Research Lab
• Other
• Automotive BIG 3
• Product Commercialization Sales

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SBIR Workshop Agenda

• Company Introduction
• SBIR Success Story
• Phase III Activities
• SBIR Challenges
• Summary and Discussion

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SBIR CHALLENGE 1

• Army SBIR Program Phase I Schedule
• Phase I topics are announced in May and Proposals
  due in August with winners announced in the Fall.
• Past years because of Gov Funding, contracts are
  not awarded until following Feb.
• By May, a Phase II proposal is due which means
  only 3-4 months of the 6 month program have gone
  into the study and the proposal.
• This means you really have to hit the ground
  running once the Phase I has been awarded.
• Two Solutions
• Work at risk once you have been informed your
  Phase I has been selected NOT RECOMMENDED
• Since Phase I Base awards are up to 70K (50K
  saved for Option), try to perform most work in
  first 3-4 months by staffing with 2 researchers -
  RECOMMENDED

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SBIR CHALLENGE 2

• Army SBIR Program Phase II Schedule
• Around July, selections for Phase II awards are
  announced with winners eligible to begin work on
  their Phase I Option Task (50K). Contracts
  possibly awarded by Nov.
• This schedule produces a nice transition and
  minimal interruption between Phase I and II.
• Again because of Gov funding, a Nov contract
  award has been unusual these past few years.
• The Phase II lasts for 24 months at a total
  funding level of 730K.
• The Army (and other agencies) have introduced a
  Phase II Plus which provides matching funds of
  250K and an additional 6 months period of
  performance.
• Must attract non-SBIR matching funds
• Must submit proposal before end of Phase II period

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SBIR CHALLENGE 3

• SBIR Program Phase III
• This is by far the most challenging since no
  additional SBIR funds are provided by Phase III.
• What you do get is essentially a sole source
  contract vehicle to extend your work and product
  as long as you can identify non-SBIR funds.
• Challenging to truly achieve full
  commercialization of any product with only Phase
  I and Phase II funds.
• Marketing costs are very high for introducing a
  new product to market
• Phase II and III successes are necessary to
  produce a good company commercialization record
  for future SBIR awards
• Phase II Plus is an excellent program to help
  achieve commercialization

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SBIR Workshop Agenda

• Company Introduction
• SBIR Success Story
• Phase III Activities
• SBIR Challenges
• Summary and Discussion

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SUMMARY

• Commercialization well underway
• Tri-service contracts, CRADAs, commercial
  software licensing, and Phase II/III SBIRs
• First fielded product in AF pilots hands in 2000
• Also supporting FCS, DD(X), AAAV and previously
  Crusader, Future Scout
• Seeking Congressional Plus Up for Phase III

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QUESTIONS?