Guidance

DTEP Frequently asked questions

Updated 28 March 2024

1. Background

Q: MOD policy is to make it easier for SMEs to engage with the procurement process / supply chain - how does DTEP support this?

A: DTEP is aligned to the desire to increase the SME population within the MOD procurement process. DTEP aims to bring new companies in to the Defence supply chain.

Q: Did anyone ask SMEs or an SME forum what they thought before the DTEP model was launched?

A: There was a lot of socialising, both within the Defence Suppliers Forum and wider. The programme has been discussed with and approved by a number of bodies as well as the Research Technology & Innovation Group (RTIG), which is the research technology and innovation cross MOD and industry working group.

Q: Why does DTEP have an industry panel review the proposals, in addition to the MOD assessment?

A: The Industry Project Review Panel includes experts from industry, across a range of defence organisations, representing as wide a range of UK regions as possible. The industry PRP will review the proposal for innovation and alignment to the MOD Enduring Capability Challenges, and will use their knowledge and experience to provide recommendations on the commercialisation potential of the proposal and the likelihood that the collaboration with the higher-tier partner will strengthen the Defence supply chain. The industry panel will provide a recommendation, but will not be involved in the assessment of proposals. MOD assessors will make funding recommendations, assessing the proposal against the DTEP assessment criteria.

2. Capability areas

Q: Where can I get advice about whether my idea fits into the capability areas?

A: We strongly recommend you contact your regional Innovation Partner to discuss the alignment of your idea to the capability areas.

Q: Can outline project proposals be submitted for review even if they do not fit the enduring capability challenges?

A: We are primarily looking for projects that align with the Secretary of State endorsed MOD Enduring Capability areas, and have MOD assessors that are able to review proposals against these areas. However, by exception, if a project can evidence a strong and supported end-user demand and demonstrate a clear commercialisation route, it may be considered within DTEP.

Q: Does DTEP cover security projects as well as defence?

A: No, this is primarily a MOD (defence) funded programme. However, if there is a project area within a supply chain that was appropriate for both defence and security, then this may be eligible.

Q: Dstl has established a portfolio looking in to the same Capability Priority Areas for both Next Generation and Generation After Next. How does DTEP differ to the Dstl Portfolio and/or align?

A: The capability areas are a MOD cross cutting strategic focus. The 5 enduring areas will be seen across MOD for consistency and future demand signals.
Dstl has a different perspective to DTEP, looking at innovations from a low TRL. DTEP is looking at innovations from a supply chain perspective and mid TRL and higher.

Q: We traditionally supply Security, are we able to apply to DTEP?

A: DTEP is an MOD funded programme aimed at Defence, but that does not preclude a security supplier working in the Defence supply chain. We are looking for benefits to the Defence supply chain, but equally we are looking for cross sector use.

Q: How can we know what projects and capabilities are already in progress?

A: Please engage with your regional Innovation Partner. They may not know the answer straight away, but they will know who to ask.

3. Collaboration

Q: When is the Ideas Market Place launching?

A: The DASA Ideas Marketplace is now live. Find out more here. This is a new platform which will become more beneficial as the number of users increases.

Q: Are there any plans for face to face brokerage events where SMEs can pitch to potential higher tier partners looking for collaborators?

A: This is currently under consideration. We will publicise information regarding any regional events when appropriate to do so.

Q: As a single entity working on my own, how can I best engage with any community to learn about where current thinking and technological solutions are?

A: There a number of options:

• We would encourage you to register on to the DASA Ideas Market Place / Collaboration Finder;
• Contact relevant industry trade bodies;
• Contact your regional Innovation Partner;
• Look out for communications regarding future DTEP regional collaboration events.

Q: Is there a lead contact at each Prime that we can approach or engage with?

A: A list of POCs is difficult as bigger companies usually have multiple business units. Please engage with your regional Innovation Partner who might be able to help locate the appropriate POC.

Q: How do we engage with an existing Defence project?

A: You could approach the Higher Tier partner, or lead Prime and work with them and us to try and identify what level you need to come in to the supply chain. Please engage with your regional Innovation Partner.

Q: How can I go about seeking a Higher Tier supplier to partner with?

A: An existing work relationship or your own current networks. We would anticipate that the majority of collaborations would form in this way.

• By signing up to the new DASA Idea’s Marketplace
• Through guidance from your regional DASA Innovation Partner, who may have suitable contacts
• The SME Action Plan has contact points for the strategic defence suppliers in Annex A. https://www.gov.uk/government/publications/opportunity-and-innovation-the-defence-small-and-medium-sized-enterprise-action-plan/opportunity-and-innovation-the-defence-small-and-medium-sized-enterprise-sme-action-plan#foreword-by-the-minister-for-defence-procurement
• A Trade Association should be able to introduce you to relevant companies in the defence supply chain if you are a member
• The Defence Suppliers Directory will tell you who already supplies complementary products to defence or hosts relevant platforms as a potential partner
• At future DASA collaboration events

Q: What’s the value of a letter of support from a non-defence company?

A: Useful as “evidence of commercialisation opportunities beyond the defence market”. However, it should not overshadow the fact that solution should be “primarily” or “initially” for defence - i.e. if there were some other letters of interest from Defence Primes or others in the Defence market the combination of both would be great.

4. Eligibility

Q: Is DTEP open to the participation of non-UK entities as collaboration partners?

A: Suppliers may collaborate and sub-contract with other SMEs, Research and Technology Organisations (RTO’s) or Academia. Given DTEP’s objective to help the UK expand its competitive, pioneering and world-class defence and security industries, collaborators must also be UK-registered and must carry out project development activity in the UK.

Q: Can a business unit within a larger (non SME) organisation bid as a Lower Tier provided they are a separate legal entity?

A: No. This sort of organisation would likely fail at the Grant stage. The ultimate beneficial owner of such an entity is a large company, and would therefore not be eligible for grants for SMEs.

Q: Is Dstl an eligible Research Technology Organisation (RTO) in the sense of a potential collaborator?

A: Dstl is not eligible as a higher tier supplier as it is part of the MOD.

Q: Are very early stage companies allowed to apply?

A: Yes, this includes everything from micro to upper size of SME. The only restriction is you would need to be a limited company/a legal entity to come in to this programme.

Q: DTEP is looking for a mid-readiness level project. What Technology Readiness Level (TRL) range would that be?

A: Projects should start at Technology Readiness Level between 3-7.

Q: Do we need to hold PhD’s to access this funding?

A: No

5. Funding

Q: What is the difference between project cost, grant funding and Higher Tier contribution? How does this add up?

A: Example breakdown of a £1,000,000 project:

• Lower Tier supplier submits proposal and requests grant funding (at 50% of project value) = £500,000
• Lower Tier supplier raises remaining funds (at 50% of project value) = £500,000
• Higher Tier supplier provides own resources^{[footnote 1]} totalling a minimum of 15% of the grant value (these are non-eligible project costs, but equivalent value of £75,000).

Q: Can Higher Tier suppliers provide the matching 50% of total project expenditure?

A: No. Only the Lower Tier supplier in a DTEP project is eligible to receive grant funding, and must therefore demonstrate the financial resources to cover the remainder of the total project costs. The Higher Tier supplier must provide non-financial support through their own resources, totalling a minimum of 15% of the grant value.

Q: Does the funding qualify against State Aid?

A: Yes, in Northern Ireland and for Subsidy Control in the rest of the UK.

Q: Does the match grant funding apply to all new activities going forward, or can funding that has already been applied to the technology be counted?

A: It would have to be for new activities - if you are applying for £500,000 now then you would have to show match funding for the same activities that you are looking to take on.

Q: Why would an SME apply for DTEP when they can receive more funding from other Innovate UK grants?

A: The 50% match funding does not have to be in the form of money - it could be in the form of time, materials, overheads, labour, travel etc.
DTEP has the Business Relationship Manager function to support suppliers and advice from industry which we see as an added value when applying to DTEP.
Some other Innovate UK grants are more competitive. We anticipate you will have a higher chance of receiving funding through DTEP.

Q: Can other grants (eg NATEP) be used for match funding?

A: No other grant funding can be used as a match. It would need to be either in the form of a cash match (i.e. investment money or company money specifically ring-fenced for the purposes of the project) or, and more usually the case, “in-kind”. This is usually where the company simply funds the other 50% of their project from recurring revenues or money that is coming in via business as usual, and they just claim back 50% of the project work from Innovate.  The following link might also be helpful. https://www.ukri.org/councils/innovate-uk/guidance-for-applicants/costs-we-fund/costs-guidance-for-non-academic-organisations/

6. Higher tier supplier

Q: What is meant by Higher Tier supplier (is this the Prime)? How are they defined?

A: The higher tier supplier is anybody in the supply chain that would be a customer or consumer of the idea that has been developed as part of the DTEP project. It does not have to be a Prime, it could be Tier 1, 2 or 3. The tiers are aimed at developing different things, the Prime typically is the systems integrator, and they bring everything together with the training and through life support for MOD. The Tier 1’s will build systems that the prime will integrate, Tier 2 will build subsystems…

Q: Can I work with a Higher Tier supplier I’m already working with?

A: Yes, provided both parties meet the definitions set out in the guidance.

Q: What is really in it for the Higher Tier?

A: Higher Tier suppliers have early access to new technology, material or novel processes, delivering novel solutions. They are able to collaborate with an SME to undertake R&D that does not have to sit on their own balance sheet (IRAD) and are able to access knowledge and skills to their benefit that may otherwise have been difficult to source. They will be better able to meet the end user and customer requirements by pulling upon a wider pool of expertise, knowledge and technology. DTEP could also help address a specific supply chain issue that the Higher Tier supplier is encountering.

Q: Are there any terms and conditions that a ‘higher tier supplier’ must agree to when a full proposal is submitted?

A: The grant recipient (lower tier supplier) will agree to the Innovate UK terms and conditions.
The higher tier supplier isn’t receiving a grant, so there is no agreement between Innovate UK and the higher tier supplier. A collaboration agreement (specifically around the sharing and division of IP, NDAs etc) needs to be in place between the lower tier supplier and higher tier supplier, and this forms part of the submission.

Q: Does a Collaboration Agreement need to be in place to enter the Outline Proposal Phase or can that be delayed until a successful award of a Grant?

A: At outline proposal stage there is no requirement for a fully formed collaboration agreement. At outline stage, the SME should be able to outline that discussions have taken place with the Higher Tier partner in relation to the collaboration agreement (i.e. that there is a recognition that this is a requirement and that necessary dialogue will take place around matters of Intellectual Property and similar).
By the time of full proposal this collaboration agreement should have been expanded to provide more robust insight and detail. A PDF of the finalised and signed collaboration agreement must be provided prior to Grant Award.

Q: Does the innovation have to flow SME to higher tier supplier or can it be vice versa?

A: The higher tier supplier could provide some access to intellectual property or an innovation as part of their contribution to the project, but fundamentally this is about bringing SMEs in to the defence supply chain, so we would expect the flow to be from SME to higher tier supplier.

Q: Are you aware of ISO 44003 that informs dealings between higher and lower tier enterprises?

A: We are aware of ISO 44003 as example of guidelines for SMEs when entering into collaborative relationships. Our Business Relationship Managers (BRMs) would be able to provide direction towards these and other tools relating to collaborative partnerships for applicants.

Q: Why must an SME partner with a higher tier?

A: Some of the key challenges that we have both in industry and the MOD reside within the resilience and the capability of the Defence supply chain. DTEP has been put together to create a mechanism to attract companies in to develop technologies, processes and materials as part of that supply chain. There is an important focus on commercialisation, which working with a higher tier supplier will help with, as supply chains work hierarchically.

Q: Have Primes and Tier 1 suppliers signed up to support DTEP? What is their incentive?

A: As part of our consultation with industry we socialised this widely with the Primes and Tier 1 suppliers and they are absolutely supportive of DTEP. There are a number of reasons for this: DTEP helps with their outreach programmes; DTEP helps resilience and industrial capability within the supply chain; Primes and Tier 1 suppliers benefit ultimately because they rely on their supply chain to develop elements of products they are integrating that they onwards sell to the MOD.
We are also working with the Primes and Tier 1 suppliers to understand MOD demand signals down through the supply chains in order to encourage new companies to engage with those supply chains to develop the technologies which are required to create the capabilities needed by UK MOD.

Q: Can an SME be the Higher Tier supplier?

A: Yes. Although we have said that the lower tier is primarily aimed at SMEs (to encourage new SMEs in to the supply chain and enable them to develop their companies) there is no reason an SME cannot be the higher tier supplier.

Q: Are the Higher Tier suppliers’ costs such as time, facilities etc. accounted against the project value? Can it count towards the remaining 50%?

A: The higher tier costs and facilities should be part of that additional minimum 15%, which is on top of the value of the project. It does not make up the project value, it is in addition.

Q: Is it necessary that a Higher Tier partner be a current vendor to the defence sector? For example if an SME has engaged with other companies who are involved in securities who could be of assistance in the project but do not currently supply to the British military.

A: An existing vendor in the Defence supply chain is a stronger partner proposition as they already have a route to commercialisation. However any suppliers who are not yet vendors to the MOD but believe they could create a new supply chain to the MOD as a result of the product/solution you’d make with them could be eligible. However you would need to make a strong case backed up by some robust evidence (i.e. vendor information supporting their assertion that they are in a good position to supply MOD). However the majority, if not all of those who have currently moved from Outline to Full Submission have existing Defence vendors as partners.

7. Intellectual property

Q: How is our IP protected during assessment?

A: There will be suitable non-disclosure agreements in place as required to protect your IP.

Q: How can I make sure my IP is protected when working with the Higher Tier partner?

A: As with any commercial and technical discussion, both the parties should follow standard business practice and process. The Business Relationship Manager can support the consortium in these areas.
In each of the projects there will be a mandated collaboration agreement if they are successfully pulled through to grant funding.
In the course of the development of projects, both at outline stage and full proposal, SMEs will be guided and sign posted around appropriate IP protection mechanisms, both registered and un-registered and what makes a strong IP protection portfolio.

Q: Will MOD have any rights to our intellectual property?

A: No.

Q: What level of confidentiality is the information within an outline application kept (i.e., is it public etc) and how much information on or materials and manufacturing methods and IP intellectual property are applicants expected to share?

A: Confidentiality - nothing is public at all. Information is submitted into the DASA portal and would be kept secure within that platform. For assessment and review, all assessors and industry panel members are held to robust NDAs, and we as civil servants are all bound by the Official Secrets Act. In short, nothing is disclosed that would be proprietary without relevant protections in place. The only public exposure is if you were successful with DTEP and an abstract of your project goes online. But even this is a) kept high level and b) written by you.

8. Process

Q: Will this have Innovate UK monitoring officers presiding over quarterly reviews like NATEP? Will there be anything over and above that?

A: Yes an Innovate UK Monitoring Officer will be assigned to each successful proposal. There would be a kick-off meeting, quarterly meetings thereafter and a final closeout.
DTEP will also have the Business Relationship Manager (BRM) function. They are not a formal monitoring officer but would be another person who would be staying in contact with the suppliers throughout the project.

Q: How long do you anticipate the application process to be from launch to first decision release?

A: Assuming we receive submissions into both the first outline and full submission cycles, we hope to release the decisions (which will be subject to review and credit check by Innovate) to the first round of applicants in Summer 2023 (c. 9 months).

Q: What will the submission process be?

A: Please see the guidance document for full details

Q: Can I resubmit an idea I’ve previously proposed to DASA?

A: Yes, as long as you’ve met the criteria of DTEP, as set out in the guidance.

Q: What happens if the project fails? Will I have to repay the grant?

A: No, assuming that the grant terms and conditions have been met.

Q: Is it possible to submit more than one proposal in parallel?

A: Yes, although the capacity of an SME to support more than one project at once would be part of the assessment process for whether to award more than one grant to a single organisation. We anticipate Higher Tier partners might be able to support multiple projects, but they wouldn’t receive the grant funding.

Q: What do you see as the typical timeline from identification to grant award?

A: The quickest it could be is around 9 months, we are running in quarterly cycles.
As an example this would be: submit outline proposal at the end of a quarter, receive feedback, submit a full proposal in to the next quarter, which would go through a pitch panel and MOD assessment. If successful it would then go in to the grant submission with Innovate UK, which could take up to 90 days.

Q: As well exploiting the project outcome in the UK, can it also be exploited overseas, concurrently or subsequently?

A: Yes, the project can be exploited overseas either concurrently or subsequently.

Q. Are there fixed application windows or is it an open application process for the 3 year term?

A: The application window is permanently open but proposals will be reviewed in quarterly cycles.

Q: With regards to the available funding in DTEP, is it £16m per year or is it £16m for the 3 years ?

A: £16m for the 3 years.

Q: Can we have some guidance on the Exploitation Plan required by Innovate UK Plan?

A: This plan will be used by Innovate UK to help monitor successful projects and is required during Project Set Up. The content will come from your Commercialisation plan already submitted to DASA. It should cover:

• Identification of the gap in the current Defence supply chain and explain how the innovation could be integrated into existing systems and capabilities.
• The main outputs/technical achievements of the project. Outputs/achievements should be quantified and supported by specifics where appropriate e.g. TRLs, etc.
  *Explanation of how the consortium would scale up the innovation and the opportunities for the project partners to exploit those achievements (per project output/ per partner), including competition and changes in competitive landscape during the project. Competitive landscape should include the IP landscape and barriers and should provide information on IP protection as appropriate. It will be important to update this over the duration of the project if successful.
• Specific information on the potential customer base and the business model e.g. licencing, manufacturing, direct sales etc. Project partners should show how the project fits within their development programme and with other projects. Technology development and market roadmaps are helpful.
  *The potential impact of that exploitation on the project partners and wider defence.
  *Outline of how the Lower Tier supplier would take the solution to market on completion of the project through integration with the Higher Tier supplier.
  Route to market – specific actions to be taken post project by each of the project partners to get from the end of the project to successful market exploitation (short, medium and long-term).
  Large projects need to ensure that benefits to UK PLC, such as potential future impact on the UK defence supply chain and how that will be achieved, are included as well as the impact on the project partners.
  Short-term route to market might be further development, in which case specific information on what and how it will be funded should be provided.
  *Dissemination activities.
  Projects should not include highly commercially sensitive information that companies would not normally transmit by email outside of their organisation.

9. Support

Q: What support will be available for innovators?

A: We strongly advise you initially contact your regional Innovation Partner (via the website). The Innovation Partners are located throughout the UK and are available to help you understand opportunities across the Defence and Security community. A DASA Business Relationship Manager will be available to give you guidance on forming an effective consortium as well as working with you throughout the submission process.

Q: Is there assistance to create list X facilities?

A: We see the higher tier supplier being able to provide access where a lower tier does not have those facilities. By facilities we mean list X facilities that would allow companies to work in a secure environment and access to being able to be sponsored to get clearances were necessary. That could be part of the give from the higher tier supplier.

Q: Will receiving a grant award guarantee success in future Defence procurement? Is there a direct pull-through?

A: No. Whilst receiving a grant and collaborating with a higher-tier supplier will enable you to develop your business and capabilities, DTEP is limited to providing support to research and development.

1. example resources could be staff time, equipment, facilities etc. ↩