by John Beckner
In 2019, Orbital, via an Antares 230, facilitated the launch of the first of the UK IOD programs (In-Orbit Demonstrator), run by the Satellite Applications Catapult.
The satellite carried Colorado-based Orbital Micro Systems’ (OMS) payload to detect micro-weather via a space-based microwave radiometer sounding spectrometer, retrieving temperature data in eight vertical atmospheric layers. OMS is also teamed with Lockheed Martin UK, and provides the blueprint on how successful Public/Private partnerships work as they enter the lucrative GeoInt market.
This mission is proof that the UK’s approach on incentivizing US/UK industry to work with government in getting cutting edge technology deployed and in operation quickly is working. The UK model of Public/Private partnerships in aerospace differs from the that of the US but offers lessons to the US and other Western powers.
The IOD-1 GEMS launch proved that the government supported innovation schemes can play a key role in the West’s attempt to compete with China; economically and militarily. As pointed out in a recent paper by Stanford’s Cyber Policy Center, Dr. Anthony Vici, the former CTO at the NGA (National Geospatial Intelligence Agency), noted that “Simply increasing national security funding or R&D spending will not ensure victory against a competitor able to outspend the United States. Instead, we will need once again to revolutionize public-private partnerships to meet the challenge, harnessing more efficient ways of developing and implementing new technology.”
Anthony’s paper lays out a number of excellent suggestions on how public/private partnerships can be harnessed in the US to get private companies to move technology from TRL (Technology Readiness Level) -1 (Basic Research) up to TRL-8 (System Test, Launch, and Operation) much quicker than before, companies (like those in Silicon Valley) into DoD acquisition system and fielded.
With an R&D budget of $55.4 Billion (CY 17), the DoD is in a vastly different position than a much smaller European country like the UK. As stated above, it’s very clear that there is a “technology race” on with China. China doesn’t need innovation from private firms (which it lacks, in any case). It fuses commercial/military intelligence gathering to its topflight (often Western-educated) military R&D centers, and spends whatever is required to move ahead with new military technology; read AI, cryptography, hypersonic air vehicles, etc.
In the US, the first step to using non-traditional private industry to assist the DoD came with the formation (under the Obama Administration) of the DIU agency in 2015. While not a true Public/Private partner as the UK IOD program, it has proven to be a strong “first step” in getting non-traditional commercial companies to provide accelerated dual technology to the DoD.
Sample TRL (Technology Readiness Level) Chart
According to Mike Madsen, the DIU’s director of strategic engagement (in a recent issue in National Defense),”we start with the DoD customer with a DoD problem, and put it out to the tech sector to help solve our problems.”
Recently the DoD gave DIU new contracting authorities in order to cut through the bureaucracy. In total, DUI has awarded about 150 contracts to 122 non-traditional vendors, with 66 being first-time suppliers to the military.
The beauty of the DIU approach is that, due to its locations in Mountain View and Austin, it can easily reach out to the commercial sector and VC investors to find the most appropriate commercial technology needed by the DoD. Currently, the top five DIU focus areas are AI/Machine Learning, Autonomy, Humans Systems, Space, and Cybersecurity.
However, according to a recent Federal New Network article, “Since 2015, millions of dollars have been invested in the DIU, and the agency watched as some of its projects fell flat. Only about 23% the organization’s completed projects ended up in the hands of troops.”
Innovative counter-cyber and counter-drone technologies were a major part of the 23 percent, and these programs, despite some turmoil, have produced results. On the downside, Congress isn’t particularly thrilled with the 77 percent of programs that didn’t make it to contract.
The individual services in the US are not being left behind, either. The US Air Force Research Lab and AFWERX have partnered to form the U.S. Air Force Small Business Innovation Research (SBIR) program whereby small companies can obtain initial USAF funding outside of the traditional DoD system.
Artistic rendition of Horizon Technologies’ Amber smallsat. Image is
courtesy of the company.
Established in 2017 by the Secretary of the Air Force, “AFWERX is a catalyst for agile Air Force engagement across industry, academia, and non-traditional contributors to create transformative opportunities. The core mission of AFWERX is to improve Air Force capabilities by connecting innovators, simplifying technology transfer, and accelerating results.”
AFWERX teams together with the Air Force Research Laboratory (AFRL), which works to streamline the SBIR process. The AFWERX/SBIR process defines requirements and technologies of interest to the USAF and gives small businesses the chance to get into market and start generating revenue. The AFWERX program has awarded $220 Million since 2018 in contracts to small business.
The EU has not yet embraced the public/private partnership technology route. The EU does have its own program to (1) start competing with China and Russia as well as (2) become more technology independent of the US and at the same time supporting competitiveness and innovation in the military/aerospace sector.
On June 7, 2017, the European Commission officially launched the European Defence Fund. This Fund has the goal of financing military R&D from an overall EU perspective. The main priorities are autonomous systems including UAVs, ISR, cyber and maritime security.
The budget for this program is €590 million from 2017 until 2020, and then €13 billion from 2021 until 20217. Unfortunately, with Europe’s far less advanced high-tech technology startup culture, this funding is expected to go to the traditional European defense players. While more defense spending by the EU is certainly a good thing, the EU program simply does not incentive or unleash European commercial high-tech innovation.
It’s very clear that there is an emerging awareness in the US and, with its Allies, that it has to use high-tech commercial base better to compete in a very challenging multi-polar world. To quote David Lloyd George, “Don't be afraid to take a big step if one is indicated. You can't cross a chasm in two small jumps.”
Unfortunately, compared to the Chinese threat, many of the efforts listed above are too small, conform too much to existing traditional government procurement practices and don’t engage the power of the small tech innovators. Yes, they are attracting new companies to the field, and that is certainly a positive step. However, there should be more “leaps” from TR-X to TR-9. In this, the US DIU and UK IOD satellite programs stand out. They should be emulated.
On a recent panel discussion as part of DGI 2020 where we recently participated, Dr. Vici used a fitting historical example for the way forward in harnessing technology via public/private partnerships. He cited the UK wartime program to crack the German Enigma encryption devices (themselves, ironically, a commercial product developed outside the 1920’s Reichsmarine procurement channels) during World War 2.
A typical World War II Liberty Ship. Photo is courtesy of the Library
of Congress.
The UK government went outside their normal MoD channels to recruit all sorts of people “outside the system” (civilian crossword puzzle experts, Oxford dons, chess masters etc.) who helped crack German Enigma messages. That is the spirit which is needed today; using non-traditional personnel and methods for military gain.
A broader historical example is President Franklin Roosevelt, against tremendous bureaucratic resistance, appointing Bill Knudsen from General Motors to go outside of the War Department and head military/defense production in 1940 before America was in the war. In simple terms, the US used its world-leading commercial production techniques and applied them to military/industrial procurement on a massive scale. The US Navy could never have built “Liberty Ships” on such a vast scale, and so quickly, without private industry taking the lead; public/private partnership at its finest.
With the Chinese tech threat increasing, it is imperative that the United States, the UK and the West find development and procurement models which harness the innovation and agility of small commercial companies and allow them to leapfrog technologies to keep us at the forefront of this technological race.
The only way to do this is with Public/Private partnerships under a model which allow private industry to offer dual-use technologies to the military while retaining their IP, and their commercial rights.
In the end, I’m convinced “High tech capitalism” will beat state-targeted technology development, technology theft and spying.
John Beckner is the CEO of UK-based Horizon Technologies. Horizon Technologies is under contract to launch the UK’s first SIGINT CubeSat constellation, Amber, as part of a public/private partnership sponsored by the UK Government.
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