Mission

Technology Readiness Level	Description
1. Basic principles observed and reported	Lowest level of technology readiness. Scientific research begins to be translated into applied research and development. Examples might include paper studies of a technology's basic properties.
2. Technology concept and/or application formulated.	Invention begins. Once basic principles are observed, practical applications can be invented. The application is speculative and there is no proof or detailed analysis to support the assumption. Examples are still limited to paper studies.
3. Analytical and experimental critical function and/or characteristic proof of concept.	Active research and development is initiated. This includes analytical studies and laboratory studies to physically validate analytical predictions of separate elements of the technology. Examples include components that are not yet integrated or representative.

4. Component and/or breadboard validation in laboratory environment.	Basic technological components are integrated to establish that the pieces will work together. This is relatively "low fidelity" compared to the eventual system. Examples include integration of 'ad hoc' hardware in a laboratory.
5. Component and/or breadboard validation in relevant environment.	Fidelity of breadboard technology increases significantly. The basic technological components are integrated with reasonably realistic supporting elements so that the technology can be tested in a simulated environment. Examples include 'high fidelity' laboratory integration of components.
6. System/subsystem model or prototype demonstration in a relevant environment	Representative model or prototype system, which . is well beyond the breadboard tested for TRL 5, is tested in a relevant environment. Represents a major step up in a technology's demonstrated readiness. Examples include testing a prototype in a high fidelity laboratory environment or in simulated operational environment.
7. System prototype demonstration in an operational environment.	Prototype near or at planned operational system. Represents a major step up from TRL 6, requiring the demonstration of an actual system prototype in an operational environment, such as in an aircraft, vehicle or space. Examples include testing the prototype in a test bed aircraft.

8. Actual system completed and 'flight qualified" through test and demonstration.	Technology has been proven to work in its final form and under expected conditions. In almost all cases, this TRL represents the end of true system development. Examples include developmental test and evaluation of the system in its intended weapon system to determine if it meets design specifications.
9. Actual system 'flight proven" through successful mission operations.	Actual application of the technology in its final form and under mission conditions, such as those encountered in operational test and evaluation. In almost all cases, this is the end of the last "bug fixing" aspects of true system development. Examples include using the system under operational mission conditions.

Transition

The transition of each CWP project is dependent on where each project starts in the development phases of acquisition.  The next step could be one of the following, in order of technology maturity (low to high):
Inform DoD decisions on new or existing programs
Further development by lab
Transition technology to a program manager for integration or further development of a system
Transition technology to a program manager for stand-up of a new program
Transition to a program manager for procurement

As part of the project planning, the Project Team must work to identify committed transition manager(s) who will take the deliverable of the CWP project and conduct the next step of activity in the development process.  Ideally this commitment is supported with existing or planned funding for the follow-on phase, but in some cases, is dependent upon successful testing of the deliverable during the CWP project.

Funding

Use of CWP Funds:  Coalition Warfare Program funding comes from the RDT&E appropriation category.  RDT&E funds can be used for the following types of activities:

•     Personnel costs related to research activities
•     Equipment, material, or computer application software development
•     Development test and evaluation 
•     Initial operational test and evaluation 
•     Operation costs at R&D dedicated installations for specific test events

CWP funds cannot be used for:
•     Training
•     General operational costs of a facility that are not part of a specific CWP project
•     Buying equipment for foreign countries
•     Foreign government participation in a project

 CWP funding should be requested for U.S. activities within a project.  Selected projects will receive one to two years of funding—up to a maximum of $1 million per year—which should be expended within three years.  The request for CWP funding should be a fraction of the cost of the whole project and should be matched or exceeded by the other U.S. resources.  An organization’s commitment to a project is weighed by the financial contributions that are directly applied to the RDT&E effort in the project.  Projects should also show equitable cost sharing between the total U.S. (CWP and other U.S. contributions) and the foreign partners.  Projects requesting the maximum CWP funding must demonstrate responsiveness to critical DoD needs.

CWP prefers funds to be obligated as soon as possible after they are received.  CWP selects projects that provide their proposed solution in 2 to 3 years. Year One projects are advised to plan to and not expect funding before December of the first fiscal year.  CWP typically provides approved projects RDT&E funds in 1 to 2 successive fiscal years.  As RDT&E funds, each year’s funds are available for obligation for 2 years. 

The foreign contractors and academia’s engagements should be part of the contributions from the foreign partners.  However, there have been rare cases where CWP funds were used for foreign activities.  These were dependent on the nature of the project and the applicable international agreements related to it.  Please consult with the CWP Team and the respective Service/Agency international agreement organization before planning on providing any U.S. funds to a foreign entity.

Equitability

CWP projects must share costs among the international partners on an equitable basis.  This means that each partner will contribute the same amount of resources as the United States.  For a bilateral project, the United States’ share would be 50% and the foreign partner’s share would be 50%; for a trilateral project, the United States would contribute 33% of the resources to complete the project and the foreign partners would each contribute 33%. 
The U.S. and the other participants to an international agreement shall contribute their equitable share of the full cost in funds or in defense articles or services needed to execute the cooperative project, and shall receive their equitable share of the results of the cooperative project in the form of defense articles or services.

In certain cases, equitability can be based on the relationship of the contributions provided, in the form of funds, defense articles and defense services, to the benefits received, in the form of defense articles and services.  Do not attempt to make this argument without guidance from an International Program Office.  For more information, consult DoD Financial Management Regulation (Vol. 12, Chapter 9) paragraph 090505.

Other DoD Funding

There are many different funding opportunities within the DoD.  Other DoD funding sources should be listed in the nomination.  In cases where multiple programs are approached for funding the same project, the Project Team must make sure to meet all the requirements of the CWP and the other programs.

For example, the CWP and JCTD programs have routinely jointly supported the same project.  However, to receive CWP funding, the CWP proposal must describe a discrete element of the overall JCTD project that can be funded independently of the JCTD.  CWP funding will not be used merely to supplement JCTD funding. 

Non-Financial Contributions

Non-financial contributions can include labor, equipment usage, test range usage, R&D investment, etc.  Non-financial contributions should be given a fair-market estimate as part of a project proposal and will be considered along with financial contributions in calculating the funding leveraged by CWP funds.  As a rule of thumb, new activities are considered financial contributions, and existing resources, e.g., already owned equipment, are non-financial contributions.  Background information is typically considered a “sunk cost”.

Specialized facilities or test ranges typically have a pre-determined use costs, which assume a use rate including the overhead for support personnel, electricity, other support equipment while using that facility.

Use of equipment or platforms to support development or testing should also be valued as a use rate; usually that is the amortized cost based on the cost of the item divided by the expected lifespan of the item.

DoD Funding Plans

Reimbursable orders may be placed with DoD activities or non-DoD federal agencies for goods, materials, equipment, work, or services. Under a reimbursable order, the providing activity uses its own funds to finance the procurement or production of the items or services ordered. The ordering activity’s funds are then used to reimburse the providing activity’s account for these items or services.

Some organizations have specific rules regarding what types of MIPRs they can accept.  Talk to your budget office when filling out the financial documentation and identifying how your project should receive its funding.  CWP does not send suballocations to project offices.  Project funds are disbursed via MIPRs. 

Reimbursable MIPRs are subject to certain limitations.  Please discuss the 51% rule, travel rules, and other limitations with your budget office if you are not familiar with these rules.

Direct citation MIPRs are typically requested when the requesting activity intends to put the funds onto a contract.  Direct Cite orders may also be placed with DoD activities or non-DoD federal agencies for goods, materials, equipment, work, or services.  Direct Cite MIPRs processed for CWP projects MAY NOT be used for government travel. 

Reporting Requirements

Reporting formats are updated from time to time.  For the most up-to-date format for all reports, visit the CWP website: http://www.acq.osd.mil/ic/cwp.html

• After a project is selected for funding, the Project Team must submit:

• A signed acceptance memo indicating the Project Team lead’s agreement to submit the required documentation during the project’s life.
• An updated quad chart.
• Preliminary monthly financial and quarterly status reports.

• Quarterly status reports on the 15th of October, January, April, and July.  Quarterly reports should be submitted even before funds have been received so that the CWP office has an up-to-date description of the project’s status.  Quarterly reports should include updated schedule and POC information for the project.

• Monthly financial reports on the 15th of each month after funds have been disbursed from the CWP office.  Report includes updated information on obligations and expenditures of CWP funds. Reports should be sent to the project’s CWP POC and the CWP Financial POC (FPOC, identified in the selection documentation sent to the Project Team).

• After receiving funds, the Project Team lead must also ensure the CWP office receives:

• Signed MIPR acceptances to the CWP FPOC.

• Copies of contracts or other obligation documents to the CWP FPOC.

• A final report within 60 days of the project’s completion.  The final report is the last of the CWP reporting requirements, even if the project completes earlier than anticipated.  Projects must continue to submit quarterly status reports until they have submitted their final report.  Projects must continue to submit monthly financial reports until all funding documents have zero balances, i.e., the funds have been fully expended or returned to the CWP office.

• Additionally, the Project Team should provide:

• Other available program documentation, including implementation plans, management plans, international agreements, etc.
• Program reviews that consist of presentations on the status of effort, obligation/expenditure of program funds and demonstrations where appropriate.
• Timely notification of any problems with the projects, financial or otherwise.

We ask for complete schedules and project plans, which CWP uses to establish our overall funding plan.  The CWP program budget is graded against DoD Comptroller mid-year benchmarks for obligation and expenditure.  Each CWP project is just one piece of the CWP budget and each has to help CWP as a whole meet the benchmarks.  The CWP budget can be subject to Comptroller cuts if it falls behind.  Timely project financial reporting help the CWP Team identify and correct posting errors before they impact CWP’s overall budget.

The CWP budget reviews grade program performance against the obligations and expenditures that are completed in DFAS’ records.  These records are traditionally behind the reports of the projects’ financial managers offices, and can include reporting errors.  Therefore, we ask you to get the “ground truth” of what funds have been obligated and expended, provide obligation documents, and work closely with your financial managers to make sure the information is correct and can be justified during budget drills.  In preparation for the mid-year review in March, we also ask Project Teams to thoroughly update project plans to make sure we can justify project execution from that point forward.

Funding Reporting

• A "commitment" is the administrative reservation of funds in anticipation of a future obligation.  CWP funds are committed when the MIPR is generated and sent to the budget office.

• An "obligation" is the legal reservation of funds to make a future payment of money. The obligation is incurred as soon as an order is placed, or a contract is awarded for the delivery of goods and performance of services. CWP funds are obligated when:

• For Reimbursable MIPRs, when the accepting budget office forwards the signed acceptance.
• For Direct Cite MIPRs, when the contracting office forwards the signed contract, grant etc.

• An "expenditure" is a charge against available funds.  Expenditures represent the presentation of a check or electronic transfer of funds to the performer of the work.  CWP expenditures are recorded by DFAS when contractor invoices, travel charges, or other bills are paid by the responsible budget office.