North Carolina Military Business Center

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1 North Carolina Military Business Center Military Impact and Organizational Overview March 16, 2010

2 Situation Military Impact Total DoD impact in NC: $23.4 billion 6 major installations 4 th highest military presence nationwide 100,031 active duty personnel (FY2008) 16,000 annual military personnel transitions Growth: BRAC and Grow the Force

3 Situation Defense Procurement Procurement, DoD CONUS: $327 billion FY2009 Procurement, DoD in North Carolina: $4.50 $4.00 Dollar Value in Billions $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 $4.01 $3.64 $2.69 $2.97 FY 2006 FY 2007 FY 2008 FY 2009 FY2009: $5.40b federal, 10,796 Contractors (98 NC Counties)

4 Situation Defense Procurement 1. California ($41.7) 2. Virginia ($38.7) 3. Texas ($22.5) 4. Massachusetts ($13.3) 5. Florida ($13.2) 6. Maryland ($12.9) 7. Pennsylvania ($12.3) 8. Arizona ($12.0) 9. Connecticut ($11.8) 10. Missouri ($10.4) FY09, Dollars in Billions 26. North Carolina ($4.0 Billion)

5 DoD Procurement in North Carolina Increase Army $1,484 $1,739 $255 Navy $1,209 $1,326 $117 USAF $265 $308 $43 DLA $388 $329 - $59 USSOCOM $104 $170 $66 Total DoD $3,647 $4,012 $365 Dollars in Millions

6 DoD Procurement in North Carolina Total Construction Services Med/Dental Sply Electronics/Coms Airframes, Spares Textile/Clothing 2005 $2,949 $843 $769 $137 $232 $103 $ $2,690 $625 $795 $291 $149 $128 $110 Dollars in Millions

7 Mission & Goals Mission To leverage military and other federal business opportunities for economic development and quality of life in North Carolina Goals 1 - Increase federal business for NC companies 2 - Integrate military/families into workforce 3 - Support defense-related recruitment

8 NCMBC Programs Six aggressive, focused programs designed to engage & train businesses & maximize job creation NCMBC Business Development, Training & Assistance Program Military Sustainment Program Strategic Initiatives Program Technology Resources Program Employment Program Communications & Outreach Program

9 NCMBC Programs - Business Development Awareness of Market Recruitment to Market Engagement in Market NCMBC Business Development, Training and Assistance Program Connection to Opportunities Solicitation Analysis/Decision Execute Contract Win Contract Proposal Submission

10 DoD Procurement & NCMBC Business Developers Alleghany Person Warren Northampton Gates Ashe Surry Stokes Rockingham Caswell Vance Granville Hertford Halifax Watauga Wilkes Yadkin Forsyth Guilford Orange Franklin Bertie Mitchell Avery Caldwell Davie Durham Nash Alexander Alamance Madison Yancey Edgecombe Davidson Martin Washington Burke Iredell Wake Wilson Rowan Randolph McDowell Catawba Chatham Buncombe Beaufort Haywood Pitt Swain Rutherford Lincoln Lee Johnston Greene Cabarrus Graham Henderson Jackson Gaston Stanly Moore Harnett Wayne Polk Cleveland Montgomery Lenoir Transylvania Mecklenburg Craven Cherokee Cumberland Sampson Pamlico Clay Macon Anson Richmond Hoke Jones Union Duplin Scotland Carteret Bladen Onslow Robeson Pender Perquimans Currituck Tyrrell Dare Hyde Greater than $50 million $20 million to $50 million $10 million to $19 million Less than $10 million Columbus Brunswick New Hanover Data as of FY2009

11 Business Development Team Create awareness of opportunities, recruit NC firms Identify current opportunities, notify NC firms Assist firms with solicitations, quotes, proposals Pre-position, develop sub-contract opportunities CY2010 CY Contracts 887 Contracts $223.7 million $2, $4,160.4 million As of: 16 MAR 2010

12 MatchForce Matches businesses to federal opportunities Matches prime contractors to NC subcontractors Matches businesses to NC job seekers Businesses won >$554 million, contracts Currently on MatchForce: 15,194 NC Businesses 31,980 Individuals 8,407 Contract Opportunities 27,635 Job Opportunities As of: 16 MAR 2010

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14 Military Workforce Initiatives Job matching portal (MatchForce.org) Transitioning military database (ncmbc.us) I Hire Military initiative focused on businesses (4-county launch) StayNC initiative (not yet launched) focused on military personnel to StayNC

15 Priority Initiatives Military construction ($5-7 billion) program Future opportunities program (ncmbc.us) Subcontracting program: with major primes Sales to foreign militaries: international opportunity Support recruitment of defense contractors Workforce initiatives (I Hire Military, StayNC) Leverage base growth opportunities

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19 Performance Outcomes Contracts sourced, BD Team to NC businesses: 9,748 (12/31/09) Connections made to NC businesses: million (12/31/09) Contracts won by NC businesses: 868 (01/14/10) Value of contracts won: $ $3.94 billion Expenditures by NCMBC, : $5.5 million (12/31/09) ROI (contract min value to NCMBC expenditures): 394:1 Corporate income tax on min. contracts won (6.9%): $149 million ROI (corporate income tax to tax revenue expenditures): 27:1 Jobs, employees engaged ($30,000 per job): up to 72,000 Total awards to NC small businesses*: up 98%, $0.9b to $1.7b Total contract awards to NC businesses*: up 46%, $2.8b to $4.1b (*during lifetime of NCMBC, )

20 Summary: Opportunity Federal market is booming (high demand) Growth at bases in North Carolina Defense spending trend down will still favor NC Small business opportunities: 23% goal Regulatory environment: FAR levels playing field Transitioning military & spouse workforce Great business capacity in NC (high supply)

21 Summary: Challenges Contracting procedural environment centralization in contracting (government) electronic marketplace positive & negative Consolidation in defense contracting big weapon systems, big primes large, Multiple Award, IDIQ contracts major primes have minor presence in NC Market intelligence, positioning for future wins High competition companies surging to market

22 What We Need to Do Together Engage existing North Carolina businesses Engage DoD prime contractors (subcontracting) Expand market intelligence (future contracts) Recruit/grow defense prime & subcontractors Engage federal buying offices to BuyNC Sustain focus on growing military economy

23 Success Impact Federal Market Booming engine for job creation Companies surging to market & NCMBC services Every $100 million in DoD Contracts: Up to 3,000 jobs created, retained ($30,000/job) $7 million in State corporate income tax; other revenue Improved services and quality of life for ALL in NC

24 Contact Information Scott Dorney, Executive Director, , Bill Greuling, Business Development Manager, x4307, Cherie Daniels, Procurement Analyst, , Courtney Locus, Communications and Employment Specialist, ,

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