EncrypTek Software Inc.

EncrypTek Software Inc. is undergoing a strategic transformation, pivoting its core mandate from legacy software operations to becoming a high-performance developer and manufacturer of flexible Radio Frequency (RF) shielding wearables. This pivot is fundamentally driven by a critical, unmet capability gap within the Department of Defense (DoD) and the broader defense industrial base (DIB): the requirement for flexible, lightweight, and operationally validated electromagnetic interference (EMI) and RF interference (RFI) protection for military personnel and sensitive electronics operating in dense electromagnetic environments 

The company is positioning itself to leverage advanced material science, specifically high-performance conductive textiles. to deliver solutions that function as comprehensive electromagnetic barriers. The strategic objective is to secure federal funding through competitive mechanisms, primarily the DoD Small Business Innovation Research (SBIR) program, to validate product feasibility (Phase I) and transition to full-scale production (Phase II/III). This effort directly supports the 2022 National Defense Authorization Act’s direction to incorporate emerging wearable technologies to enhance operational capability and health for DoD personnel [3]. The company’s physical relocation to Texas is critical, providing immediate strategic access to key defense innovation hubs, regional supply chains, and government support programs such as TMDx 

Full Business Plan 

1.2. Corporate Profile and History (2019 - Present)

 

The company was originally founded in 2019 by Nolan Forbes as a corporation in Florida, bearing the legacy name "EncrypTek Software Inc." While the current mandate is the design and fabrication of physical RF shielding wearables, the continuity of the corporate name requires explicit clarification within the grant proposal narrative. To mitigate potential skepticism from technical reviewers, the company must affirm that the "Software Inc." designation reflects the entity that initially provided the capital, technological foundation, and intellectual property (IP) focused on digital security principles, which are now being applied to physical security—creating a hardware barrier against electromagnetic data exfiltration.

The pivot to hardware manufacturing signifies a deliberate, mission-focused strategy. The subsequent relocation to Texas serves a dual purpose: expanding the domestic manufacturing capacity necessary for scaling production and ensuring strategic access to a robust defense industrial ecosystem. This geographical advantage provides direct access to state-level military innovation initiatives, including the Texas Military Department Joint Innovation Unit (TMDx), which actively assists small businesses with SBIR programs and provides access to defense test environments [4].

 

1.3. Corporate Registration and Federal Readiness

 

Successful pursuit of DoD grants and contracts mandates rigorous federal registration and administrative compliance. The foundational requirements for any SBIR proposal include the collection of mandatory Firm Registration Information and Firm Certifications about the Small Business Concern (SBC) [5]. EncrypTek must ensure its data, including its NAICS code, reflects its primary mission in specialized manufacturing, not legacy software development, to align with the proposed technical work.

A crucial administrative prerequisite for engaging in federal contracting, particularly for grants that involve progress payments, is the implementation of an auditable accounting system. The DoD specifically collects Audit Information from SBCs submitting proposals [5]. This requirement underscores the necessity for EncrypTek to comply with Federal Acquisition Regulation (FAR) subpart 31.2, which governs the determination of allowable costs [6]. Without a Defense Contract Audit Agency (DCAA)-compliant, audit-ready accounting system, costs incurred may be deemed unallowable, jeopardizing the successful execution of Phase II and beyond. The business plan must therefore allocate immediate resources to achieving compliance with invoicing and cost tracking requirements stipulated under FAR 52.216-7 [6]. Readiness in this administrative domain signals corporate maturity and financial responsibility to federal evaluators.

 

Section II: The RF Shielding Wearables Solution and Technical Validation



2.1. Statement of the Technical Problem (EMI/RFI Vulnerability)

 

The modern operational environment, increasingly reliant on wireless communication and functionally dense electronic components, presents a significant risk of electromagnetic interference (EMI) [7]. This risk translates into a dual-threat problem for the DoD: first, external RFI can compromise the integrity and reliability of military systems, inducing malfunctions; second, internal electromagnetic emissions from sensitive or unapproved electronic devices within classified spaces can radiate controlled unclassified information (CUI) or classified data.

While military regulations now permit the use of compliant wearable devices by service members in classified areas [3], the need for effective, lightweight protection remains acute. Current robust shielding solutions are often rigid, such exemplified by RF Front-End Shielding Cans [7]. These solutions are incompatible with the high mobility and low-weight requirements of operational military personnel. Conductive textiles, conversely, offer a superior solution due to their "light weight and flexibility" [2], making them ideally suited for the development of dynamic, body-worn shielding enclosures. EncrypTek’s solution is engineered to function as a seamless electromagnetic barrier, mitigating both incoming interference and outgoing emissions [1].

 

2.2. Product Description and Innovative Approach

 

EncrypTek's product utilizes advanced multilayer conductive textiles (e.g., composites based on silver, copper, or nickel plating) engineered to provide high RF attenuation across critical military frequency spectrums. The design methodology aligns directly with the DoD's strategic push to incorporate emerging wearable technologies, as outlined in the 2022 National Defense Authorization Act [3].

The fundamental innovative approach required for a successful SBIR proposal (Section 1.3.2 of the technical volume [8]) is the technical achievement of translating the rigorous performance standards applied to rigid enclosures, such as shielding cans [7], into a flexible garment. The key engineering challenge lies in developing proprietary and repeatable Electromagnetic Closures [1]. These closures—which include seams, zippers, cuffs, and access points—are classified as Points-of-Entry (POEs) where energy penetration is most likely to occur [1]. EncrypTek’s innovation centers on proprietary POE treatments to maintain the integrity of the electromagnetic barrier even under dynamic stress and movement.

 

2.3. Compliance and Validation Roadmap

 

To transition the product from R&D feasibility to DoD adoption, validation against both federal communication standards and military standards is mandatory.


2.3.1. Federal Communications Commission (FCC) Requirements

The design and eventual manufacturing of an RF shielding wearable require navigation of the FCC equipment authorization procedures. Given the product's function in critical signal integrity and security environments, the most rigorous approval path, Certification (47 CFR Section 2.907), is recommended over the simpler Supplier's Declaration of Conformity (SDoC) [9]. Certification involves evaluation of supporting documentation and test data by an FCC-recognized Telecommunication Certification Body (TCB), based on testing performed by an accredited laboratory [9]. Adopting the Certification path immediately demonstrates high confidence in the technical parameters and provides maximum credibility for dual-use commercial markets.


2.3.2. Mandatory Military Standard Validation: MIL-STD-285

The benchmark for evaluating the effectiveness of the wearable enclosure is the military standard MIL-STD-285 [1]. This standard specifies test methods and procedures for measuring the Shielding Effectiveness (SE) of electrical and electronic enclosures, a requirement critical for ensuring the reliability and security of military systems [1].

Phase I objectives must include adapting and executing MIL-STD-285 protocols. The Shielding Effectiveness is quantitatively calculated as the ratio of electromagnetic energy measured inside the enclosure to the electromagnetic energy measured outside the enclosure [1]. For a flexible textile wearable, the test procedures must address the unique challenges of non-rigid enclosures [1]. Special care must be taken during the test setup to ensure all power lines, RF cables, and other utilities entering the shielded garment (simulating operational conditions) are in place, and measurements are focused around critical POEs, such as access panels and seams [1]. The company must define specific, quantifiable attenuation targets (e.g., 60dB attenuation at 1-10 GHz) as the objective metric for Phase I success [10].

The following table outlines the required strategic mitigation for adapting MIL-STD-285 to flexible wearables:

MIL-STD-285 Shielding Effectiveness Test Parameters for Wearables

MIL-STD-285 Requirement

Engineering Challenge for Wearables

EncrypTek Mitigation Strategy

Enclosure Integrity (Topologically closed surface) [1]

Maintaining closure integrity during human movement and operational stress.

Utilization of advanced conductive closure mechanisms (e.g., shielded zippers, overlapping metallic mesh seams).

POE Treatment [1]

Managing apertures such as cuffs, neckline, and utility entrances (e.g., ports for medical sensors or communication lines).

Designing filtered entries or choke points for penetrating conductors and implementing comprehensive electromagnetic closure at all garment apertures.

Test Setup (Utilities in place) [1]

Simulating operational use, including the routing of power and RF cables into the garment.

Developing repeatable, anthropomorphic test fixtures that simulate human geometry and operational cable paths during MIL-STD-285 testing.

Measurement (Near entrances/access panels) [1]

Identifying and measuring critical leakage points around dynamic seams and joints (shoulders, wrists, neck).

Comprehensive mapping of Shielding Effectiveness (SE) across flexible seals and high-stress joints using calibrated near-field probes.

 

Section III: Market Analysis, Commercialization, and Defense Strategy



3.1. Global RF Shielding Market Dynamics

 

The market for RF shielding solutions provides a strong foundation for EncrypTek's growth. The global RF Front-End Shielding Can market, a proxy for the broader demand for EMI solutions, reached $1.62 billion in 2024. This market is forecasted to demonstrate a compound annual growth rate (CAGR) of $6.8\%$ through 2033, reaching a projected size of $2.93 billion [7].

This robust growth is fundamentally fueled by the exponential proliferation of wireless communication devices, the ongoing rollout of $5\text{G}$ networks, and increasingly stringent international EMI regulations [7]. EncrypTek is uniquely positioned to capture a significant portion of the wearable and flexible segment of this market, which is necessitated by the densification of electronics across military and industrial applications.

The company must pursue a comprehensive dual-use strategy:

  • Defense Market: The primary focus, addressing immediate operational requirements, data security, and personnel health [3].
  • Commercial/Industrial Market: The secondary market, driven by parallel needs for robust EMI suppression in high-density electronics environments. This includes the automotive industry, where the shift toward electrification and connectivity requires reliable EMI shielding for Electronic Control Units (ECUs) and Advanced Driver-Assistance Systems (ADAS) [7], as well as critical infrastructure and high-security data centers.

 

3.2. Competitive Analysis and Barrier to Entry

 

EncrypTek's key competitive advantage lies in its material science focus—integrating conductive textiles for lightweight solutions [2]—and its commitment to military-grade validation. While competitors exist in the traditional shielding material space, the ability to successfully transition rigid enclosure standards (like those applied to shielding cans [7]) to flexible, body-worn applications represents a significant technical barrier to entry.

This technical advantage is fortified by necessary regulatory compliance. Validation against MIL-STD-285 [1] provides documented performance superiority over commercial-grade materials. Furthermore, the defense-related nature of the technology, designed to safeguard national security, subjects it to the International Traffic in Arms Regulations (ITAR) [11]. Successful ITAR registration and ongoing compliance with technical data export controls themselves serve as a substantial regulatory barrier, protecting the company's proprietary material and design IP from foreign access and establishing EncrypTek as a trusted DIB partner.

 

3.3. Phase II Commercialization Strategy Framework (SBIR Requirement)

 

The commercialization strategy (Section 5 of the SBIR proposal [8]) must demonstrate how Phase I feasibility study results will be transitioned into profitable market penetration. This requires defining objective metrics for measuring success and a compelling business model [10].

The Sustainable Competitive Advantage is quantified by the Intellectual Merit of the solution [10]: the achievement of predetermined, high dB attenuation targets using flexible materials, resulting in a product that provides critical operational benefits (weight reduction, flexibility, security).

For market penetration, the strategy involves:

  1. DoD Transition: Leveraging Phase I/II success to secure Phase III production contracts. This often requires establishing relationships with large prime DoD contractors. The company should proactively explore criteria for the DoD Mentor-Protégé Program (MPP) [12], which facilitates the development of small businesses (Protégés) to perform significant work on DoD contracts [13].
  2. Existing Customer Development: Identifying initial commercial pilots in the high-security or industrial sector that demand high-performance RF shielding (e.g., ADAS component manufacturers or critical infrastructure operators) to demonstrate market viability outside of direct government contracts.

 

Section IV: Government Grant Acquisition Strategy (DoD SBIR/STTR Focus)



4.1. SBIR/STTR Program Suitability and Phase I Objectives

 

The DoD Small Business Innovation Research (SBIR) program is the ideal funding mechanism, as it is specifically designed to finance R&D activities for small businesses, leading to defense and subsequent commercial applications [10].

Phase I Mandate and Objectives: Phase I is focused on determining system requirements, assessing design feasibility, and establishing the foundation for Phase II development [8]. For EncrypTek, the overarching feasibility objective is to demonstrate that flexible, body-worn conductive textiles can achieve the minimum shielding effectiveness specified by the DoD Component, validated against tailored MIL-STD-285 protocols.

  • Intellectual Merit: The proposal must demonstrate that the activities are creative, well-planned, and conducted by a qualified team, utilizing objective metrics for measuring success (e.g., quantifiable attenuation levels and closure durability) [10].
  • Broader Impacts: The technology offers significant societal benefits beyond immediate defense capability, including improved servicemember safety, enhanced data security protocols, and advanced EMI protection solutions that can filter into commercial sectors [3, 10].

 

4.2. Detailed DoD Phase I Technical Volume Preparation

 

The Phase I Technical Volume must adhere strictly to the mandatory DoD proposal structure [8]. The narrative must be exhaustive, detailing every step required to prove feasibility.

SBIR Proposal Section (DoD Requirement)

Strategic Objective for EncrypTek

Supporting Data/Evidence

1. Identification and Significance of the Problem

Establish critical operational need for secure, lightweight RF shielding to protect CUI and signal integrity.

DoD mandate for operationalizing wearables [3]; EMI market robust growth ($2.93B projected by 2033) [7].

2. Phase I Technical Objectives

Demonstrate feasibility of conductive textiles meeting MIL-STD-285 requirements for dynamic, wearable enclosures.

System requirements determination, configuration assessment, and success metrics definition [8, 10].

3. Phase I Work Plan (Tasks)

Outline precise, time-bound technical tasks for design, POE mitigation, and testing.

Detailed task framework leading to Final Feasibility Study [8]; MIL-STD 285 test adaptation [1].

5. Commercialization Strategy

Define pathway to market penetration via dual-use applications and sustainable competitive advantage.

Global market size [7]; Competitive advantage in flexible materials [2].

The Phase I Work Plan (Section 3 of the proposal [8]) must be task-driven, typically spanning nine to twelve distinct tasks over 6-12 months. Example tasks include: (Task 1) Conductive Material Selection and Characterization; (Task 2) Flexible Point-of-Entry (POE) Closure Design Prototyping; (Task 3) Development of MIL-STD-285 Test Protocol Adaptation for Wearables; (Task 4) Initial Shielding Effectiveness Testing in Accredited Laboratory; (Task 9) Final Feasibility Study and Comprehensive Phase II Plan [8]. Each task must be explicitly budgeted and scheduled.

 

4.3. Leveraging the Texas Defense Ecosystem

 

The move to Texas provides distinct strategic advantages that must be highlighted in the proposal. EncrypTek must explicitly plan collaboration with the Texas Military Department Joint Innovation Unit (TMDx) [4]. This partnership should leverage TMDx’s support programs, which connect industry partners with "People, Facilities, and Equipment," including access to specialized DoD test environments and structured SBIR programs [4]. Documenting planned access to these state-level resources demonstrates a commitment to the defense innovation ecosystem and strengthens the "Facilities/Equipment" section of the proposal [8].

Furthermore, EncrypTek should investigate participation in the Defense Manufacturing Community Support Program, a competitive grant mechanism aimed at strengthening the national security innovation base and aiding small and medium-sized companies in entering the defense sector [14].

 

4.4. DoD Compliance and Relationship Building



4.4.1. Export Control: ITAR Compliance

Because EncrypTek is developing proprietary RF shielding technology intended for defense and national security applications, the technology and related technical data are highly susceptible to regulation under the International Traffic in Arms Regulations (ITAR) [11]. ITAR controls the export of defense articles and services listed on the United States Munitions List (USML) and restricts access to technical data related to these items to "US Persons" unless specific authorization is granted [11].

Action Required: EncrypTek must immediately pursue ITAR registration with the Department of State. Crucially, the business must implement internal compliance protocols governing the access, transfer, and storage of proprietary technical data. Demonstrating this pre-emptive compliance in the SBIR proposal establishes the company's commitment to security and federal readiness, which is highly valued by DoD contracting officers.


4.4.2. Cybersecurity and Controlled Unclassified Information (CUI)

All personnel engaged in DoD contracts, and specifically those interacting with government systems, must comply with requirements for handling Controlled Unclassified Information (CUI). The mandatory DoD CUI Training covers the procedures for accessing, marking, safeguarding, and destroying CUI [5]. All key personnel must complete this training. EncrypTek must also implement cybersecurity protocols (e.g., those specified under NIST SP 800-171) to safeguard CUI, ensuring data integrity and preventing unauthorized disclosure of sensitive project information.


4.4.3. Utilizing the DoD Mentor-Protégé Program (MPP)

A strategic path for transition to Phase III (production) is participation in the DoD Mentor-Protégé Program. EncrypTek qualifies as a small business concern seeking to enhance the critical capabilities of the defense supplier base [12].

Action Required: EncrypTek must proactively identify a major defense contractor (Mentor) currently performing under a DoD subcontracting plan and draft a white paper for consideration [12]. Successful participation in the MPP provides EncrypTek with essential technical and business development assistance, facilitating a smooth transition from R&D (SBIR) to operational contracting (Phase III).

 

Section V: Operational Readiness and Implementation Plan



5.1. Key Personnel and Facilities Documentation

 

The success of the Phase I R&D depends entirely on the technical team. Key Personnel (Section 6 of the proposal [8]) must include expertise spanning RF engineering, advanced material science (textiles), and federal contracts management. Nolan Forbes's role must be defined as leading the strategic vision and program management, supported by engineers capable of executing the MIL-STD-285 test adaptation.

The proposal’s Facilities/Equipment section [8] must document the current Texas operational base and, critically, list the specialized equipment and test environments that will be accessed through strategic partnerships, such as those provided by TMDx [4]. This demonstrates that the company possesses the necessary resources without requiring extensive capital expenditure on infrastructure during Phase I.

 

5.2. Subcontractor/Consultant Strategy (Including Testing Laboratories)

 

Due to the specialized nature of the validation requirements, a robust subcontractor and consultant plan is essential (Section 8 of the proposal [8]).

  1. Technical Consultants: Engagement with specialized textile manufacturers or material characterization experts may be necessary to define the optimal conductive fiber construction [2].
  2. Compliance and Testing: Budgeting must include contracts with FCC-recognized accredited testing laboratories [9] that are experienced in military electromagnetic compatibility (EMC) testing. These labs will execute the tailored MIL-STD-285 [1] validation and provide the independent data required for both FCC Certification and the Phase I feasibility report. Pre-identifying these partners significantly strengthens the Phase I Work Plan.

 

5.3. Financial Planning and Funding Timeline

 

Financial planning must align precisely with the detailed Phase I Work Plan tasks. The budget should prioritize R&D, specialized material acquisition, personnel costs (for qualified engineers), and mandatory compliance activities (ITAR registration, CUI training, specialized accounting consultancy).

To demonstrate long-term viability, the plan must project funding requirements through Phase II and beyond. While Phase I/II grants provide initial capital, EncrypTek must define a strategy for integrating private capital, such as securing matching funds or venture investment post-Phase I success. This strategy proves that the business model is self-sustaining and not solely dependent on government grants, meeting the criteria for Commercial Impact [10] and enabling the necessary scaling for high-rate production (Phase III transition). Compliance with FAR subpart 31.2 is the governing framework for all financial reporting and invoicing under the grant [6].

 

Conclusion

 

EncrypTek Software Inc. possesses a high-potential, innovative product that addresses a critical need within the DoD—flexible, operationally viable RF shielding for personnel and classified environments. The pathway to securing government funding is highly prescriptive, demanding strict adherence to both technical and administrative compliance standards.

Recommendations for Success:

  1. Administrative Foundation: Immediately allocate resources to implement a DCAA-audit-ready accounting system to ensure compliance with FAR 52.216-7 and allowable cost requirements [6]. Simultaneously, initiate ITAR registration and mandatory CUI training for all personnel [5, 11].
  2. Technical Validation: Dedicate Phase I objectives entirely to demonstrating the feasibility of the flexible textile enclosure by achieving measurable Shielding Effectiveness (SE) targets against MIL-STD-285, specifically focusing on the integrity of Points-of-Entry and Electromagnetic Closures [1].
  3. Strategic Leverage: Explicitly integrate planned collaborations with the Texas Military Department Joint Innovation Unit (TMDx) into the Facilities/Equipment and Phase I Work Plan sections of the SBIR proposal [4].
  4. Long-Term Transition: Proactively engage in relationship-building activities aimed at securing a DoD Mentor-Protégé Program agreement to facilitate the transition from SBIR R&D to Phase III production contracts [12].

Successful execution of this plan establishes EncrypTek not merely as a grant recipient, but as a fully compliant, validated, and essential member of the Defense Industrial Base, poised to capitalize on the $2.93 billion global RF shielding market [7].