{"id":40696,"date":"2020-09-11T09:00:00","date_gmt":"2020-09-11T09:00:00","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2020\/09\/11\/analysis-what-does-the-new-afwerx-data-say-about-the-tech-pipeline\/"},"modified":"2026-08-07T23:22:59","modified_gmt":"2026-08-07T23:22:59","slug":"analysis-what-does-the-new-afwerx-data-say-about-the-tech-pipeline","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/commentary\/2020\/09\/11\/analysis-what-does-the-new-afwerx-data-say-about-the-tech-pipeline\/","title":{"rendered":"Analysis: What does the new AFWERX data say about the tech pipeline?"},"content":{"rendered":"\n

The Air Force\u2019s industry storefront and innovation organization AFWERX<\/a> has released information on 1,354 companies that have entered its pipeline. The data provides insight into technology areas and contracting mechanisms not previously available to the public.<\/p>\n\n\n\n

More than 90 percent of AFEWRX contracts have come through open topics, meaning companies come to pitch their ideas rather than respond to a specific requirement. The remaining awards went to topics led by 13 Air Force customers representing missions like cybersecurity, space, battlefield operations and training.<\/p>\n\n\n\n

In terms of classification, the Air Force identified companies with one or more standard technology areas. Information technology was the most common, representing roughly one-quarter of all companies. Within IT, 63 companies delivered cybersecurity solutions, 28 cloud, 21 DevSecOps and 15 for the Internet of Things.<\/p>\n\n\n\n

The second most common category was artificial intelligence, with 290 companies. Just half of those companies were AI-focused. The other half included AI keywords in their technology offerings, particularly in the areas of data and analytics<\/a>; intelligence, surveillance and reconnaissance; autonomous systems; augmented reality; and training.<\/p>\n\n\n\n

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Perhaps unexpectedly, the third most common area was human systems, health care and biotech, which comprised 10 percent of the total. These companies spanned the gambit from biometrics to physical training to suicide prevention. Also healthily represented were companies in autonomy, additive manufacturing, space, augmented reality\/virtual reality, and energy, each comprising roughly 5 percent of the total.<\/p>\n\n\n\n

Underrepresented areas included battle management, weapon systems and robotics at 1 percent each as well as electronics at 3 percent. Only three companies mentioned 5G technologies, 17 mentioned quantum, 18 mentioned blockchain, 19 mentioned hypersonics and two mentioned nuclear.<\/p>\n\n\n\n

A recent Government Accountability Office report<\/a> criticized the defense industry\u2019s lack of alignment between its independent R&D and defense modernization priorities. Compared to traditional defense primes, AFWERX invested more heavily in AI, autonomy and biotech. However, AFWERX was relatively underweight in space technologies.<\/p>\n\n\n\n

For nearly half of all companies listed, the Air Force provided private funding data amounting to $7.7 billion. Nineteen companies took in more than $100 million in cumulative private funding, 10 of which are based around Silicon Valley. By far the largest recipient of private funding was Joby Aviation, with $721 million after a monster $590 million Series C round<\/a> that included Toyota. The company is developing electric vertical-takeoff-and-landing air vehicles, and received its first and only government contract for $49,980 from AFWERX in 2019.<\/p>\n\n\n\n

A novel contracting mechanism that AFWERX has leveraged is commercial solutions openings. As Victor Deal, who devised the CSO tool when he was in government, explained<\/a>: \u201cA CSO-type general solicitation advances two core concepts: modular contracting and merit-based decision-making.\u201d Roughly 46 percent of AFWERX awards used the CSO procedure.<\/p>\n\n\n\n

AFWERX\u2019s funding toolbox involves Small Business Technology Transfer, or STTR, programs, which are often $150,000 awards to startups that were spun out of academic research.<\/p>\n\n\n\t