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So you want to 

Sell Your Technology to the Military?

$816.7 billion

That’s how much funding was allocated for the Department of Defense in fiscal year 2023.

With a budget like that, it’s time for any company with commercial traction to consider the DoD as a potential sales channel to achieve non-dilutive funding for your technology.

The Procurement

Getting started

When getting started in the process of selling your technology to the military, there are two procurement pathways to consider.

Learn more about how Long Capture can help you through this process HERE.

Competitive

In competitive contracts,

the DoD solicits proposals from multiple vendors and selects the best proposal based on a set of criteria.

From our experience, this is a difficult and less lucrative pathway for companies looking to go to market with the DoD.

Non-Competitive

Non-comeptitive contracts are awarded to a single vendor without soliciting proposals from other vendors. This is our preferred pathways of operation.

In many cases, this can be done using sole-source authority, which is one of the exceptions to the requirement for full and open competition in the procurement process.

The Customer

Are you looking to sell to the...

Army, Navy, Marines, Air Force, or Space Force?

With the right strategy, you may be able to sell your technology to more than just one branch. A successful process may look similar no matter the pathway, each starting with one key launch pad: sole-source authority.

This can be achieved through SBIR, a program once primarily utilized by the Air Force and Space Force.

However, the SBIR Reauthorization Act of 2022 now requires each branch to participate.

The Process

When looking to go to market with the DoD via competitive contracts...

We recommend this path forward for your best chance of success.

1

Strategize

The road through the DoD is a tedious one  with plenty of pitfalls and wrong turns if you do not a have a clear strategy to guide you. It is important to consider obstacles such as the valley of death, and ensure that your strategy has a clear path through these from the beginning.
2

Develop Government Relationships

The relationships you build in this sector plays a huge role in your success with federal, and failure to make these connections can ruin your chances before you even begin. This is why we hold this step so high in the process.

Some key relationships to consider include: End users, TPOCs, and Customer Memorandums.

3

Sole-Source Authority

As mentioned before, sole-source authority is really your ticket to non-competitive contracts. We think of sole-source authority as an on-ramp to the whole market.  This can be achieved with a SBIR/STTR Phase I or Direct to Phase II award, and it opens the door to all other opportunities down this road.
4

Seek Additional Supplemental Funding

As mentioned in step one- there are many barriers to the process, especially at the transition to a Phase III. These are key things to consider in your overall strategy. In this step, we’ll actually face these barriers. Fortunately, there are many supplemental funding options, such as STRATFI/TACFI, APFIT, and ARMY SBIR CATALYST to support companies in this transition by awarding additional dollars. 
5

Pursue Phase III Contracts

A common issue we see a lot of companies make when pursuing federal funding, is they get caught up in the SBIR world. Time after time, we see companies perfectly happy with a $75k here and $150k there and they never work to leverage their SBIR win to actually pursue the greater contracts with the DoD. At Long Capture, Phase III is the goal, and despite its common association, these contracts are no longer apart of the SBIR program.
6

Go to Market

And why Phase III? Because that is where you can actually go to market with the DoD! At this point, the government is one of your costumers and you are supplying regular solutions to the warfighter. This benefits both the country’s national security, and your general revenue stream. We see this as a major win-win!

Why Sell to the Department of Defense?

They have a large budget for innovation

When is the last time you worked with a company that had an annual budget of $817 B?

Not only do most companies not realize how large the annual DOD budget actually is, but they also don’t understand that the DoD is looking for innovative new technologies, and they have programs in place under this budget to help small business technologies reach the war fighter.

They always pay their bills

This is pretty simple. While it may take longer to actually secure a contract, once you have it secured, it will get paid.

Every.Single.Time.

All this to say, this world is moving fast, and you never know what tomorrow will bring for your business. With that in mind, the federal government is not a bad customer to have in your revenue stream.

Help the warfighter and increase national security

Most importantly, in our opinion… your technology is needed to help the war fighter and increase our nations security.

This budget and these programs are in place because there is a need for the nations best technologies to be on the front lines.