
NextGen Federal Systems is a classic Phase III federal contracting success story. This article spotlights NextGen and explores how APEX helped it navigate the ‘Valley of Death.’
In the rolling hills of Morgantown, West Virginia, a company called NextGen Federal Systems is quietly making waves in the defense technology industry.
Founded on principles of innovative service, NextGen develops modern IT and software solutions tailored to military defense and national security programs. Focusing on cutting-edge technologies like machine learning and artificial intelligence, NextGen is advancing the U.S. military’s capabilities and proving that groundbreaking innovation isn’t limited to Silicon Valley or the nation’s capital – it’s thriving right here in Appalachia.
While NextGen’s expertise can’t be overstated, the guidance and resources provided by the Academic Partnership Engagement Experiment (APEX) program and, in turn, Vertx Partners, have enabled this small business to overcome the daunting challenges of federal contracting and secure a pivotal Phase III Small Business Innovation Research (SBIR) contract.
This article spotlights NextGen and explores its relationship with APEX. Read on to discover how that partnership led to NextGen’s largest federal contract yet.
NextGen’s MO & Staring Down The ‘Valley of Death’
Headquartered in Morgantown, NextGen built a reputation for developing advanced tech solutions for the Department of Defense (DoD). From machine learning platforms that forecast weather patterns to simulation tools that extend radar coverage, NextGen’s innovations are transforming how the U.S. military approaches mission-critical tasks.
Chetan Desai, Chief Operating Officer of NextGen, describes the company’s focus: “NextGen develops modern, cutting-edge IT/software solutions for military defense and other national security programs.” These solutions, developed through Small Business Innovation Research (SBIR) contracts, have been integral to the U.S. Air Force’s operations, underscoring NextGen’s role as an emerging player in national defense.
Advanced tech isn’t the only angle NextGen approaches national security; the human element is just as important.
“NextGen pursues opportunities and capabilities that help analysts, warfighters, and soldiers become smarter, faster, safer,” stresses NextGen Senior VP JP Lapps. “I grew up on military bases most of my life. As someone who watched their father ship off and leave me as the man in charge of the home, I can put myself in a lot of people’s shoes who are worried about that loved one overseas.”
Even with groundbreaking technology in hand and a worthy mission, NextGen faced a common hurdle for small businesses in the defense sector: transitioning from SBIR Phase II to Phase III. This transition, often called the ‘Valley of Death,’ is where many innovations falter. This is due to a lack of funding and contracting opportunities necessary for full deployment.
“Over the past 6 or 7 years, we’ve won many Phase I and Phase II SBIRs,” explains Desai. “But we didn’t have the experience to work those into a Phase III.”
This is where the APEX program and a partnership with Vertx, practical next-door neighbors to NextGen, came in handy.
APEX & Vertx Partners: Bridging the ‘Valley of Death’
Vertx Partners’ mission is to support small businesses like NextGen navigate the complexities of federal contracting. Vertx supports Ohio-based Parallax Advanced Research. Parallax itself forms a partnership with the Department of the Air Force (DAF) called APEX (the Academic Partnership Engagement Experiment).
APEX and Vertx, founded to help bridge the gap between Appalachian businesses and federal opportunities, provided NextGen with the strategic insight needed to overcome the challenges of the Phase III SBIR process.
JP Lapps highlights the impact of APEX through Vertx’s involvement: “What Vertx provides us is a clear path and understanding of how to leverage all avenues in a Phase III SBIR. They’ve helped us understand where we may have made a misstep in the past and been able to correct that misstep. They’ve also given us a very good understanding of how to direct our customers toward alternative paths that they may not have been thinking about when we originally engaged them.”
“Phase III should be the goal of any SBIR company. Not to be stuck in that Phase I, Phase II loop and just innovating for the sake of generating new technologies,” says Jeremy Loomis, VP of Engineering at NextGen. “A company like Vertx Partners helps us focus on that fielding, that operationalization of our technologies, by bringing it to our warfighter customer.”
Real Results
This guidance was crucial in helping NextGen secure additional funding mechanisms. Mechanisms such as AFWERX’s Tactical Funding Increase (TACFI) and Strategic Funding Increase (STRATFI) advanced their machine-learning platform from development to operational deployment. The result? A 4-year, $16.5 million Phase III contract with the U.S. Air Force, marking the largest contract award for NextGen’s Research and Development (R&D) Division to date. Recently, this contract’s total was raised to $22.3 million. NextGen also won an open competitive contract with the U.S. Army as a follow-on to an AF Phase II SBIR – worth $22 million.
The Phase III contract involves deploying the Weather Machine Learning Operations (Wx MLOps) platform along with the Global Synthetic Weather Radar (GSWR) Real-Time System (RTS). Both of these technologies provide accurate weather intelligence to support U.S. strategic programs. (Check out NextGen’s press release for more details.)
“Normally, you hire consultants. In this case, APEX was funded already,” says Chetan Desai, detailing APEX and Vertx’s nontraditional business model. “Through Vertx and APEX, we were able to understand the Phase III process, which is now a big part of our business development.”
Vertx Partners: Catalyzing Appalachian Success
With NextGen’s technological expertise laying the foundation, Vertx Partners’ strategic support built a bridge over the dreaded ‘Valley of Death.’
As part of its broader mission and origin within the APEX program, Vertx Partners leverages its team’s federal contracting acumen and its network of industry experts to empower Appalachian businesses, ensuring that companies broaden innovation beyond coastal tech hubs.
“Innovation doesn’t just happen on the coasts. It doesn’t just happen at active military bases,” says JP Lapps. “It happens in places like West Virginia.”
For Vertx Partners, the success of companies like NextGen speaks to the power of strategic partnerships and the importance of providing small businesses with the tools they need to succeed. By offering targeted support, Vertx helps companies secure contracts and plays a critical role in ensuring that they fully realize and operationalize their innovations.
“Vertx is this springboard that turns into a force multiplier for small businesses like NextGen,” says Lapps. “Up until this point, it’s the Lockheeds or the large companies out there that are looking to subcontract NextGen. The future is NextGen taking that step to be that prime contractor and lead those programs.”
Conclusion
The collaboration between APEX, Vertx Partners, and NextGen Federal Systems exemplifies the transformative power of strategic partnerships in the federal contracting landscape. With the proper support, Appalachian small businesses can overcome the challenges of the SBIR process. That means transitioning their innovations from research to operational deployment and playing a critical role in national defense.
“APEX and Vertx helped educate us on the nuances of the Phase III program,” explains Jeremy Loomis. “Putting it in understandable language, focusing on the values, flexibility, and benefits. Not just to us as a company, but to our customers, showing them why a Phase III program would bring value.”
“I would recommend that companies interested in SBIRs use APEX not just to be successful, but to evaluate whether they’re a company set up to benefit from SBIRs,” says Chetan Desai. “From that perspective, they’re a great resource for any company interested in the SBIR program.”
In the case of NextGen, the guidance APEX and Vertx provided was key to securing a significant Phase III contract and ensuring its cutting-edge technologies landed in the hands of the U.S. Air Force. As more companies in the region follow in NextGen’s footsteps, Vertx Partners will continue to be a driving force, helping to shape the future of innovation in West Virginia and beyond.
Interested in learning more? Visit the APEX site and contact Vertx Partners to begin your SBIR journey today!