Defense Industrial Adjustment:

Operational Assets & Capability Transfer to Support Strengthening Local Communities &

Local Mission Retention

ESOP Advisors, Inc. Reston, Virginia

June 2013

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Success Stories; Transition From Federal to Private Sector

National Marine Mammal Foundation

Environmental

Enterprise Group

is an environmental

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firm committed to

understanding,

servicing and

satisfying our client's

environmental

needs.

New state-of-the-art Battery Innovation Center set to accelerate energy storage and new battery technology

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DIA approaches based on Defense technology transfer and operational assets and capability transfer from federal defense operations and defense contractor operations will support mission retention in the context of budget pressures and potential BRAC◦ Maintain institutional knowledge capacity◦ Soft landing for defense workers and communities◦ Transition to broader customer base

These DIA approaches can support defense industrial adjustment currently in communities that need to strengthen regional economic ties for their military installation that will support the development and expansion of current military missions

DIA approaches will support job creation and retention and regional economic development

DIA will support ancillary defense missions such as employment of military spouses, reintegration of returning veterans into the economy and maintenance of the defense industrial base

Defense Community technical, physical and intellectual assets have significant value outside of their current use.

Defense Industrial Adjustment (DIA) in the BRAC and Pre-BRAC Environment

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DIA can support entrepreneurial activity and business startups, technology hub development, job retention in new business lines for existing contractors, and strategic public private partnerships; Current DoD tools:◦ President’s Manufacturing Initiative◦ Small Business Technology Transfer Program (STTR)◦ Small Business Innovation Research (SBIR) program is a set-aside program (2.7% of an

agency's extramural budget) for domestic small business concerns to engage in Research/Research and Development (R/R&D) that has the potential for commercialization.

◦ Executive Order 13329 Requires SBIR/STTR agencies to give high priority to manufacturing-related research and

development. Tools for managing contracting & personnel issues

◦ MTAC◦ IDIQs◦ IPA◦ TBC

Assessment of the economic development value of federal and contractor intellectual property

Determine your strengths & strategic values and build around them

Defense Industrial Adjustment (DIA) Entrepreneurial Activity & Business Startups

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Early Funding Available to Support DIA in Communities Pentagon Office of Economic Adjustment

◦ Community Economic Adjustment Assistance for Advance Planning and Economic Diversification Section 12614

◦ Community Economic Adjustment Assistance for Reductions in Defense Industry Employment Section 12611

Department of Labor◦ DOL Workforce Innovation Funds

Economic Development Administration◦ Planning, Technical Assistance & Technical Works

Grants

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ESOP Advisors, Inc.◦ 1666 Chimney House Road◦ Reston, VA◦ 20190◦ 703-758-8773

Michael Mendelevitz, Managing Director◦ 703-626-6049◦ mmendelevitz@esopadvisors.com

Roger Neece, President◦ 703-471-7008◦ rneece@esopadvisors.com

Contact: