Northeast Indiana Defense Industry Association All-Member Meeting May 16, 2014

NIDIA’s Current State

• 2013 Membership – 70 (up 15% from 2012) • 2 All-member meetings – doubled from 2012 • Spring 2013 Member survey

– On average, 81% of responders indicated “Very Effective” or “Somewhat Effective” for each of the four mission objectives.

• 2014 Priorities – Adapting to a changing market market – Enhancing regional “situational awareness”

Changing Market • In 2009

– Robust defense business climate with 6 large companies represented in NE Indiana that collectively employed ~ 4000

– Forecasting a shortage of ~ 2500 engineers in 5 years – Collaborated with NEIRP to capture grant funding for Talent Initiative:

>1500 Advanced training certifications

Established 6 New Tech High Schools and increased freshman enrollment > 600%

>500% increase in Ivy Tech Advanced Mfg capacity made possible by new capital equipment

Changing Market

• In 2014 – We have a shrinking defense budget with 4 large

companies that collectively employ ~ 3000

2008 DoD Awards U.S.

Navy $94B

Army $153B

USAF $63B

DLA $35B

2008

Total $355B

2008 DoD Awards in Indiana

Navy $785M

Army $5.9B

2008

DLA $600M

USAF $247M

Total $7.5B

Indiana captured 2% of the market in 2008

2013 DoD Awards U.S.

Army $81B

Navy $95B

USAF $58B

DLA $31B

2013

Total $265B

2013 DoD Awards in Indiana

Army $489.5M

Navy $730.4M

2013

USAF $434.6M

DLA $296.5M

Total $1.95B

Indiana captured 1% of the market in 2013

DoD Spending 5 yr trend

DoD Spending USA DoD Spending IN

2008 $355B $7.50B

2013 $265B $1.95B

5 yr Difference $(90B) $(5.55B)

5 yr % Change -25% -75%

How many states have experienced this level of impact in 5 years?

DoD RDT&E Trends

We are on the front end of a pull-back, but RDT&E is still > $100B!

What is NIDIA doing?

NIDIA connects members with Tier 1 organizations

What is NIDIA doing?

NIDIA connects members with economic development resources

What is NIDIA doing?

NIDIA connects members with universities

What is NIDIA doing?

Semi-Annual Networking Events

What is NIDIA doing?

Pursuing Federal Grant OpportunitiesC

What is NIDIA doing?

Curr

ent S

tage

FirstNet Proving Ground

FirstNet will need to stand up a large-scale test and integration facility in the next few years – why not leverage MUTC?

•STATUS •Developed FirstNet contacts

•Ron Dabrowski – Acquisition Executive •Edward Parkinson – Legislative Affairs Director •Jeff Bratcher – Deputy CTO & PSCR Director

•Briefed Muscatatuck capabilities to the above on 1/23/14

•Gary Deckard, Muscatatuck Tech Chief •Christina Trexler, Governor Pence staff lead •Steve Skinner, Indiana DHS •Jeff Uhey, NIDIA Chairman •Dan Owen, Strategic Partners consultant •Matt Konkler, Indiana NCCO

What is NIDIA doing?

NIDIA is working for you!

Agenda 10:00 – Welcome and Attendee Introductions, Jeff Uhey, NIDIA President 10:30 – Carl Drummond, IPFW Vice Chancellor of Academic Affairs 10:45 – Reggie Joslin, Deputy for Small Business, NSWC Crane 11:15 – Brooke Pyne, SBIR Program Manager, NSWC Crane 11:45 – Lunch Buffet, Compliments of the Northeast Indiana Regional Partnership 12:30 – John Sampson, President, Northeast Indiana Regional Partnership (NEIRP) 12:45 – Jerry Hadley, Executive Director, Procurement Technical Assistance Center 1:15 – Sue Ellspermann, Indiana Lieutenant Governor 1:45 – Randy DeCleene, kglobal Senior Vice President 2:00 – Featured Members and Networking Featuring: IPFW, Exelis, Product

Development Technologies, Envisio IT and Huntington North New Tech High School

3:00 – Adjournment

Questions?

Jeff Uhey Chairman Northeast Indiana Defense Industry Association (NIDIA) Jeff.uhey@nidiaonline.org 260 241-8887

“If you don’t like change, you’ll like irrelevance even less..” Ret Gen/Secretary of Veterans Affairs Eric Shinseki

BACKUP

DLA Awards in Indiana

$296.5M 2013

$619.8M 2012

50% decline in one year – why?

DoD Contracting in Indiana

Peak 2008 $7.3B

2013 $1.7B

DoD Contracting has plummeted 75% in only 5 years! www.usaspending.gov

DoD Prime Consolidation

•DoD acquisition community is very concerned about consolidation. •Active push to develop smaller firms to enhance competition

Board of Directors

Mission 1. Develop and improve the local defense community’s ability to develop,

attract, retain the required talent to effectively execute business opportunities.

2. Foster the increased interaction between the defense industry and suppliers in the region.

3. Perform as an advocacy group for the defense industry in the Northeast Indiana region.

4. Provide liaison with local, state and federal governmental agencies, elected officials, legislatures and special groups and committees to advance defense industry opportunities in the Northeast Indiana region to support economic development.

What is NIDIA doing?

• HR 3630 – Middle Class Tax Relief Act – Designated $7 Billion for development of Nationwide Public Safety

Broadband Network (NPSBN) and $135 Million for state and local planning

– $2 Billion authorized now, additional $5 Billion from FCC spectrum auctions

– Governors of each state can “opt-in or opt-out” • Accept FirstNet implementation plan or develop your own

• Public Safety Broadband Network – Nationwide 4G (LTE) cellular data network for first responders and

other public sector entities

The Big Idea

• FirstNet is still in the start-up phase and has not developed a comprehensive test and evaluation strategy

• PSCR in Boulder, CO is not equipped or well-suited for large scale test and integration events

• Texas A&M Disaster City is the only First Responder training facility with a FirstNet test network

• Muscatatuck is 20X the size of Disaster City and is already host to the nation’s largest First Responder Training event – Bold Quest

Now is the time to stake our claim with PSCR and promote Muscatauck as the Nation’s Premier FirstNet Proving Ground