OUSD(R&E) Critical Technologies Buy-Box

Zigr is actively looking to acquire companies that align with OUSD(R&E) Critical Technologies, that are professionally managed, established self funded and on the brink of exponential growth due to macroeconomic shifts.?

?Financial Health?

$3 MILLION EBITDA or above?

Gross Revenue Exceeding the Proposed Purchase Price?

Consistent Year-over-Year Revenue Growth

Profitability and Positive Cash Flow

Strong Balance Sheet with Minimal Debt

Minimum of 5 Years of Tax Returns?

Limited CapEx for 2025?

Less than 6x EBITDA, and Less than 4x EBITDA at cash at close (Non-negotiable)?

? Business Experience and Reputation

• Strong Industry Reputation and Brand Recognition
• Diversified Customer List Across Various Industries
• Proven Track Record of High Customer Satisfaction and Retention

? Deal Structure and Flexibility

• Willingness to Accept Seller Financing or Earn-Out Agreements
• Flexible Closing Timeline to Accommodate Buyer’s Due Diligence
• Transparent and Willing to Provide Comprehensive Business Documentation
• Open to Transition Period and Seller Support Post-Sale

The OUSD(R&E) works closely with the Military Services, Combatant Commands, industry, academia, and other stakeholders to ensure that the Department's science and technology strategy addresses the key national security challenges- from rising seas to a rising China- that the United States faces today and will face in the future.

Three categories of technology areas recognize the more varied and complex environment for investment, development, and application of technology that characterizes the early 21st century.?

There are 14 critical technology areas vital to maintaining the United States' national security grouped into three categories. While many technologies may cross between these categories, these groupings represent the broad and different approaches that are required to advance technologies crucial to the Department. By focusing efforts and investments into these 14 critical technology areas, the Department will accelerate transitioning key capabilities to the Military Services and Combatant Commands. As the Department's technology strategy evolves and technologies change, the Department will update its critical technology priorities.

? Seed Areas of Emerging Opportunity        

• Biotechnology - Biotechnology is an emerging engineering discipline that uses living systems to produce a wide range of technologies and capabilities. From fighting global pandemics and avoiding surprises to reducing logistics and sustainment costs and increasing energy efficiency, biotechnology can help change the way the Department conducts missions, performs in contested logistics environments, and adapts to major global changes.
• Quantum Science - Quantum Science is the study of physical properties at small, even atomic, scales. Defense applications include atomic clocks, quantum sensors, quantum computing, and quantum networks. Quantum science promises to enable leap-ahead capabilities. Quantum computing can provide unprecedented computational speeds and help solve the Department's hardest analytical problems. Quantum sensors promise the ability to provide unprecedented accuracy in position, navigation, and timing. From more accurate information to faster decision making, to significantly stronger encryption capabilities, quantum science has the promise to deliver cutting-edge technology.
• Future Generation Wireless Technology (FutureG) - FutureG is a suite of emerging wireless network technologies enabled by DoD and commercial industry cooperation to enable military operations and ensure a free and open internet. As Fifth Generation (5G) wireless technology is adopted and provides building blocks for capability, the DoD will also look to FutureG for leap-ahead technologies to lead in creating future standards. The Department will invest in FutureG technology development to lay the groundwork for continued United States leadership in information technology, which is vital for maintaining our economic and national security.
• Advanced Materials - Advanced materials explore innovative new materials and novel manufacturing techniques that can dramatically improve many of the Department's capabilities. Materials that have higher strength, lighter weight, higher efficiency, and can handle more extreme temperatures will have the potential to better protect our service members and enhance their ability to accomplish their missions.

? Effective Adoption Areas        

• Trusted AI and Autonomy - Artificial Intelligence (Al) is the software engineering discipline of expanding capabilities of software applications to perform tasks that currently require human intelligence. Machine learning is an engineering subfield of AI that trains software models using example data, simulations, or real-world experiences rather than by direct programming or coding. Autonomy is the engineering discipline that expands robots' abilities to perform tasks while limiting the need for human interaction. AI holds tremendous promise to improve the ability and function of nearly all systems and operations. Trusted AI with trusted autonomous systems are imperative to dominate future conflicts. As AI, machine learning, and autonomous operations continue to mature, the DoD will focus on evidence-based AI-assurance and enabling operational effectiveness.
• Integrated Network Systems-of-Systems - Integrated Network Systems-of-Systems technology encompasses the capability to communicate, provide real-time dissemination of information across the Department, and effective command and control in a contested electromagnetic environment. Integrated Network Systems-of-Systems capability must enable engagements by any sensor and shooter, with the ability to integrate disparate systems. An interoperable network that leverages emerging capabilities across the electromagnetic spectrum such as 5G, software defined networking and radios, and modern information exchange techniques will allow the Department to better integrate many diverse mission systems and provide fully networked command, control, and communication that is capable, resilient, and secure.
• Microelectronics - Microelectronics are circuits and components that serve as the "brain" to human-made electronic functional systems. Virtually every military and commercial system relies on microelectronics. Diminishing microelectronics manufacturing in the United States and supply chain concerns have highlighted national economic and security risks. Working closely with industry, academia, and across the Government, the Department is addressing the need for secure microelectronics sources and will leverage state-of-the-art commercial development and production for defense microelectronic solutions.
• Space Technology - Space technologies include space flight, Space communication and other technologies needed to maintain space operations. With rising threats and increasing dependence on space-based systems, the Department's space strategy must shift away from exquisite satellites to a more robust and proliferated architecture. Novel space technologies are necessary to enable resilient cross-domain operations. The space strategy must incorporate technologies that enhance the Department's adaptive and reconfigurable capabilities in space situational awareness, space control, communication path diversity, on-orbit processing, and autonomy.
• Renewable Energy Generation and Storage - Renewable energy generation and storage includes solar wind, bio-based and geothermal technologies, advanced energy storage, electronic engines, and power grid integration. Renewable energy generation and storage promises to decrease warfighter vulnerability and deliver new operational capabilities for the Department. From more efficient batteries to diversifying energy sources and reduced fuel transportation risks, renewable energy generation and storage will add resilience and flexibility in a contested logistics environment.
• Advanced Computing and Software - Advanced computing and software technologies include supercomputing, cloud computing, data storage, computing architectures, and data processing. Software is ubiquitous throughout the Department, but the speed at which software develops outpaces the Department's ability to stay up to date. The Department must rapidly modernize its legacy software systems with resilient, affordable, and assured new software that has been designed, developed, and tested using processes that establish confidence in its performance. The Department must migrate to a Development-Security-Operations (DevSecOps) approach in its software development and evolve to a model of continuous development, continuous test, and continuous delivery. The Department must leverage modular open system architecture approaches to isolate hardware from software and enable rapid upgrades to secure processors.
• Human-Machine Interfaces - Human-Machine Interface refers to technologies related to human-machine teaming and augmented and virtual reality. Rapid advancements in this technology will have a multitude of benefits for our service members. Highly immersive realistic training environments provide real-time feedback to enhance warfighter performance. Intuitive 5 interactive human-machine interfaces enable rapid mission planning and mission command by providing a common operational picture to geographically distributed operations.

? Defense-Specific Areas        

Directed Energy - Directed Energy Weapons utilize lasers, high power microwaves, and high energy particle beams to produce precision disruption, damage, or destruction of military targets at range. Directed energy systems will allow the Department to counter a wide variety of current and emerging threats with rapid responses and engagement at the speed of light. High-power lasers and high-power microwave technologies both offer new ways to counter diverse sets of threats.

Hypersonics - Hypersonic systems fly within the atmosphere for significant portions of their flight at or above 5 times the speed of sound, or approximately 3700 miles per hour. Hypersonics dramatically shorten the timeline to strike a target and increase unpredictability. While strategic competitors are pursuing and rapidly fielding advanced hypersonic missiles, the DoD will develop leap-ahead and cost-effective technologies for our air, land, and sea operational forces.

Integrated Sensing and Cyber - To provide advantage for the joint force in highly contested environments, the Department must develop wideband sensors to operate at the intersection of cyber space, electronic warfare, radar, and communications. Sensors must be able to counter advanced threats and can no longer be stove-piped and single function.

?Funding Sources?        

SBIR/STTR (Small Business Innovation Research / Small Business Technology Transfer)

1. Who It's For:

• SBIR: Aimed at U.S.-based small businesses (under 500 employees) working on innovative R&D with commercialization potential, especially those in technology-driven sectors.
• STTR: Focuses on small businesses collaborating with non-profit research institutions, promoting tech transfer and collaboration.

2. Levels of Funding:

• SBIR: Phase I typically offers up to $275,000 for feasibility studies (6-12 months); Phase II can provide up to $1.8 million for R&D (up to 24 months); Phase III relies on private or non-SBIR funding to scale and commercialize.
• STTR: Similar funding structure to SBIR, with a required partnership with research institutions.

3. Period of Performance:

• Phase I (typically 6-12 months), Phase II (up to 24 months), with open timelines in Phase III as companies shift to commercialization.

4. Overall Takeaways:

• SBIR/STTR programs offer pathways for small businesses to develop and commercialize cutting-edge technology, supporting them through initial R&D stages to full-scale market readiness. Ideal for early-stage companies looking to develop high-risk, high-reward technologies.

TACFI/STRATFI (Tactical & Strategic Funding Increase)

1. Who It's For:

• Small businesses with demonstrated potential to transition technology to the Department of Defense (DoD). Typically awarded to Phase II SBIR/STTR companies showing promising results and DoD alignment.

2. Levels of Funding:

• TACFI: Supports rapid development and prototypes, with awards typically ranging from $375,000 to $1.9 million.
• STRATFI: Larger funding amounts, often between $3 million and $15 million, to support strategic scaling and adoption within DoD.

3. Period of Performance:

• Typically covers a span of up to 24 months, with variations based on project complexity and funding structure.

4. Overall Takeaways:

• TACFI/STRATFI provides targeted funding to help bridge the gap between SBIR/STTR research phases and full DoD acquisition. This program is ideal for companies needing support in maturing technologies to be field-ready.

APFIT (Accelerate the Procurement and Fielding of Innovative Technologies)

1. Who It's For:

• Geared toward companies with ready-to-field technologies that align with immediate DoD needs, APFIT is for businesses that are not necessarily in the R&D stage but have completed product development.

2. Levels of Funding:

• Provides funding up to $50 million per project, designed to streamline the fielding of technologies without extensive development costs or time commitments.

3. Period of Performance:

• Designed for rapid deployment, with most funded projects completed within 12-18 months.

4. Overall Takeaways:

• APFIT accelerates the deployment of mature, commercially available technologies into operational use. It’s ideal for companies ready to scale and deploy innovations quickly to meet DoD demands.

OTA (Other Transaction Authority)

1. Who It's For:

• Open to a wide range of non-traditional defense contractors, including startups, small businesses, and academic institutions, interested in fast-tracked DoD projects without the constraints of FAR-based contracts.

2. Levels of Funding:

• Funding varies widely, from a few hundred thousand to multi-million dollar awards, depending on the scope and innovation level required by the DoD or other government entities.

3. Period of Performance:

• Typically offers flexible performance periods, ranging from a few months to several years, depending on project demands and milestones.

4. Overall Takeaways:

• OTA is an ideal funding mechanism for rapid prototyping and iterative development. Its flexibility in terms, timelines, and regulations makes it particularly appealing for innovative companies and non-traditional defense players.

Private Equity/Venture Capital

1. Who It's For:

• Private Equity (PE): Targets established businesses with proven models, typically in need of capital for expansion, acquisition, or restructuring.
• Venture Capital (VC): Focuses on early-stage startups with high growth potential, often in technology, life sciences, and other high-risk, high-reward industries.

2. Levels of Funding:

• PE: Investment amounts range from $10 million to billions, depending on the company size, industry, and growth potential.
• VC: Typically provides between $100,000 and $10 million, depending on the funding stage (seed, Series A, etc.).

3. Period of Performance:

• PE: Investments are generally held for 5-7 years, with the goal of substantial returns through strategic exits (e.g., IPOs, acquisitions).
• VC: Often structured in shorter cycles (3-5 years), allowing for multiple funding rounds as startups hit growth milestones.

4. Overall Takeaways:

• PE/VC funding offers businesses capital in exchange for equity, allowing for strategic growth and development. PE is best suited for mature businesses looking to scale, while VC caters to early-stage startups needing initial growth funding and mentorship.