Ministry of Defense introduces new contract system for emerging companies to utilize cutting-edge technology

The Ministry of Defense announced on the 25th that it will introduce a new contract system and begin soliciting applications from October 2nd, in order to utilize the cutting-edge technologies of emerging companies such as unmanned aerial vehicles (UAVs). A distinctive feature of this system is that examinations are conducted at each stage, such as the creation of a development plan and verification, and the necessary expenses are paid each time. The company hopes to incorporate superior technology and flexible ideas into defense equipment by paying attention to emerging companies that are struggling with cash flow.

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The system to be introduced is the Small Business Innovation System (SBIR), which has already been implemented by the Ministry of Internal Affairs and Communications and the Ministry of Health, Labor and Welfare. The Ministry of Defense has set the R&D themes for public recruitment as (1) low-cost UAVs that use as many domestically produced parts as possible, (2) improved operational efficiency and labor savings in supply warehouses, and (3) reduced aircraft noise to improve the working environment at bases.

Under SBIR, contracts are entered into with multiple companies at the same time, and expenses are paid based on the progress of the submitted plans. Through the screening process, companies are narrowed down to companies that are more in line with the Ministry of Defense's requests. Developing defense equipment took several years, and in many cases the costs were paid only after the project was completed.