Defense Manufacturing Assistance Program (DMAP) The Ohio State University

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1 Defense Manufacturing Assistance Program (DMAP) The Ohio State University

2 Program intent: A three university collaborative for Ohio, Indiana and Michigan to support companies and communities in developing a plan of action to recover from the negative business impact experienced as a result of Defense spending cuts.

3 Participants in the Program: U of Michigan, Prime contract with OEA and will cover Michigan The Ohio State University, Subcontracted to cover Ohio Purdue University, Subcontracted to cover Indiana

4 2 nd Grant Award to be submitted in Feb 2016 ; total grant ~ $5 6M for Ohio, Indiana and Michigan Ohio s portion = $2.24M To serve 60 companies and 12 communities; 20 and 4 in each state 24 month award commenced on June 1, 2016 Grant 1 will conclude on May 31, 2016; ~$3.6M; OSU portion was ~$600k

5 How will companies engage and their benefits Active participation in developing a recovery plan; under NDA a willingness to share core capabilities, desired business/market/product directions, technology needs, etc. Participate in the selection and agreement negotiation of the service provider partner accountable to help the company successfully reengineer resources and/or markets Funding of the recovery plan development will be shared 50% from the grant and 50% from the company, i.e., if the required funds to develop the agreed outcomes plan costs $100k then, at least $50k will be paid from the grant (in some cases companies many qualify for more than 50%) and the balance paid by the company to the service provider accountable for conducting the project. The company will have full rights to the plan and benefits from its implementation.

6 Selection Criteria for Companies* DMAP Overview Must be a prime contractor or 1 st, 2 nd, 3 rd, 4 th, etc...tier subcontractor to the defense industry Loss or imminent loss of at least 5% of sales or production and in employment * Or loss of major product line defined as 25% of total sales or production At least 5% of loss sales/production attributable to defense budget restrictions Data on sales, production & employment must be current as of immediate past months or predicted next 24 months Willingness to work with outside organization on the development of a plan Demonstrated engagement of key stakeholders Willingness to enter into an agreement for technical assistance * Criteria may be adjusted as experience is gained during the program

7 How will communities engage and their benefits Active participation in developing a recovery plan; under NDA a willingness to share core capabilities, community designs and desired business and operations directions, etc. Participate in the selection and agreement negotiation of the service provider partner accountable to help the community successfully re engineer and re design community space and capabilities. Funding of the recovery plan development up to $100k will be paid from the grant to the service provider accountable for developing the plan. For grants over $80k the community will be requested to contribute some cost match. The community will have full rights to the plan and benefits from its implementation.

8 Selection Criteria for Communities* DMAP Overview One or more defense contractor companies in the community to be admitted to the program based on the selection criteria for contractors Confirmed by appropriate state agency that the communities that are identified are recognized by the state as defense dependent and adversely impacted by budget restrictions Willingness to work with outside organization on the development of a plan Demonstrated engagement of key stakeholders Willingness to enter into an agreement for technical assistance * Criteria may be adjusted as experience is gained during the program

9 Metrics Identified for the Grant* Jobs created Jobs retained Technology commercialized IP commercialized/transferred DMAP Overview *Metrics may be adjusted as experience is gained during the program

10 Ohio entities already connected during the preparation of the grant Edison Centers (CIFT, IDCAST, MAGNET, PolymerOhio, TechSolve) MEP Centers JobsOhio regions (6 across the State) SBDC units across the State Columbus State Community College Fisher College of Business (OSU) Knowlton School of Architecture (OSU) OSU Extension Rhodes State College Sinclair community College

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