Beam Reach

Marine Science and Sustainability School

Business Plan

3/20/06

Prepared by:Scott Veirs, Ph.D., and Michael Dougherty, M.S./E.E.

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1 EXECUTIVE SUMMARY.........................................................................................................................................3

2 PURPOSES..................................................................................................................................................................4

2.1 IMPROVE SCIENCE EDUCATION ........................................................................................................................42.2 FOCUS OCEAN SCIENCE ON CRITICAL MARINE ISSUES ...................................................................................42.3 PROMULGATE A SUSTAINABILITY ETHIC .........................................................................................................42.4 CREATE AN ICON OF SUSTAINABILITY .............................................................................................................52.5 IMPROVE TEACHING AND RESEARCH CONDITIONS AT SEA ............................................................................52.6 UTILIZE THE MARINE AND SCIENTIFIC RESOURCES IN THE PACIFIC NORTHWEST .....................................5

3 LEADERSHIP.............................................................................................................................................................6

4 EDUCATIONAL PROGRAM ...................................................................................................................................7

4.1 EDUCATIONAL PHILOSOPHY AND STRATEGY ..................................................................................................74.2 OVERVIEW OF THE UNDERGRADUATE STUDENT EXPERIENCE ......................................................................84.3 ROUTES AND SCIENCE FOCI...............................................................................................................................94.4 UNDERGRADUATE CURRICULUM......................................................................................................................94.5 ASSESSMENT.....................................................................................................................................................12

5 ORGANIZATIONAL STRUCTURE (6/2004) .......................................................................................................12

5.1 NON-PROFIT CORPORATION ...........................................................................................................................125.2 GOVERNANCE...................................................................................................................................................125.3 ACCREDITATION ..............................................................................................................................................135.4 LAND CAMPUS, EMPLOYEES, AND MARINE OPERATIONS .............................................................................135.5 LEGAL REPRESENTATION................................................................................................................................14

6 ADMISSIONS, MARKETING, AND FUNDRAISING STRATEGY ..................................................................14

6.1 ADMISSIONS AND NON-DISCRIMINATION POLICY .........................................................................................146.2 MARKETING .....................................................................................................................................................146.3 FUNDRAISING ...................................................................................................................................................156.4 VALUE TRIGGERS.............................................................................................................................................16

7 MARKET ANALYSIS .............................................................................................................................................17

7.1 MARKET SIZE ...................................................................................................................................................177.2 POTENTIAL COLLABORATORS AND COMPETITION .......................................................................................17

8 FINANCE ..................................................................................................................................................................18

8.1 KEY ASSUMPTIONS OF FINANCIAL MODEL.....................................................................................................188.2 FINANCIAL MODEL...........................................................................................................................................20

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1 Executive summary

ConceptBeam Reach is a school focused on science, sustainability, and the marine environment. Itscurriculum helps revitalize science education by integrating collaborative inquiry, personal growth,and field observation. Its research addresses critical marine issues faced by cultures in the Pacific,and motivates students to investigate, understand, and value the oceans. Its sailing research vesseldemonstrates innovative technologies and inspires teamwork, preparing Beam Reach graduates tolead a societal transformation to sustainability.

ProgramThe core Beam Reach offering is a full-term accredited program for undergraduates, appropriate forscience and non-science majors alike. Beam Reach students practice scientific inquiry at a beautifulcampus in the Pacific Northwest; they study compelling topics like the endangered resident orcas as theyplan for a 5-week research voyage. They explore the ocean, live close to the sea, and witness renewablepower aboard a fossil-fuel-free catamaran that sails Puget Sound in the summer and the Pacific during therest of the year. They demonstrate sustainable technologies and share their scientific insights throughservice projects and public presentations in ports and on-line. The Beam Reach curriculum connectsthese rich experiences with marine environmental case studies, motivating student research and the studyof core topics: Earth systems science; conservation biology; ocean engineering; and renewable energytechnologies.

StrengthsBeam Reach offers academic credit through the University of Washington (UW), a global leader inmarine science, engineering, and policy. The shore campus is the acclaimed Friday Harbor Laboratories,a unit of the UW that provides a spectacular academic setting, access to top researchers, and proximity topristine marine environments. The sea component lets students experience both the open ocean andcaptivating Pacific destinations: Baja, the Galapagos, Polynesia, Hawaii, and the Pacific Northwest.

The Beam Reach sailboat is an icon of sustainability that embraces the past while demonstrating solutionsto 21st century problems. A large catamaran based on traditional Polynesian design, it is light enough tobe fossil-fuel-free – powered exclusively by the wind and renewable technologies such as turbines, fuelcells, photovoltaics, and biodiesel. While its stability and expansive decks provide a safe and effectiveeducational platform, its elegance and simplicity inspire a sustainability ethic in every port it visits.

FinancialWith its first sailboat, Beam Reach will offer up to 6 undergraduate classes per year, each involving 12students. Charging approximately $10,500 for tuition, room and board, we forecast revenue of $660,000in our first year of operation, with 70% from program fees and the remainder from grants and donations.In year 5 revenue increases to $1.3 million, with 83% derived from program fees.

StatusBeam Reach is incorporated in the State of Washington and has applied for tax-exempt 501(c)(3) status.We currently seek $900,000 of startup funding. Scott Veirs and Michael Dougherty lead Beam Reach.Scott has a Ph.D. in oceanography from the UW, a B.S. in Earth Systems from Stanford, and extensiveboat-based educational experience. Michael has a M.S. in electrical engineering (EE) from the UW forhis study of sperm whale acoustics and a B.S./B.A. in EE and international relations from Yale. He hasmanaged growing organizations and taught high school math/science. Scott and Michael share a passionfor teaching, research, sailing, and sustainability.

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2 Purposes

When sailors travel on a “beam reach” their boat and sails are oriented to maximize progress across thewind. In the cultural winds that prevail today – the sinking of U.S. science educational excellence,oceanic ecosystem collapse, and gluttonous consumption of energy and materials – a Beam Reach is whathuman society needs. Beam Reach focuses on 3 plights in our societal sea: science is too often taughtthrough textbooks and large lectures; ocean research is rarely applied to critical marine problems; andAmerican culture is moving too slowly towards sustainable practices, particularly in the oceans. Studentsadrift in these troubled seas and overpowering winds need a way to make quick progress to moreinnovative waters – where science is taught through inquiry and collaboration, where marine researchfocuses on critical issues, and where fossil fuels are no longer a source of power. Beam Reach is the wayto get them there fast, and to begin transforming society along the way.

2.1 Improve science educationThe Beam Reach educational outcomes define a scientifically literate citizen1. Our students learn sciencethrough rigorous experiential education: an intense combination of traditional lectures, innovativeclassroom activities, collaborative exploration in the laboratory, extensive research at sea, and publicpresentation of results in an intercultural public forum. Beam Reach teachers foster student curiosity andmodel scientific skepticism. They help students make a meaningful contribution to a research project thatis relevant to the student. Inquiring alongside professional scientists, Beam Reach students quicklycomprehend the scientific process and have many opportunities to practice it in the field. Repeatedly,they ask their own questions, gather and analyze data, and distill their results into publishable form.

2.2 Focus ocean science on critical marine issuesUnsustainable human use of ocean resources has intensified the need to explore and understand themarine environment and ecosystems2. Beam Reach faculty and students motivate their scientificinvestigations with the goal of realizing sustainable human interaction with the sea. On shore ourstudents and faculty collaborate with researchers at the UW Friday Harbor Laboratories, as well as localand visiting scientists, to study topics that are immediately relevant: from the decline of local marinemammal populations to the rational design of marine protected areas. In the Pacific, our scientificobjectives are determined by the interests of the Beam Reach students and faculty, the talents ofcollaborating researchers, the technologies introduced by visiting engineers, and the most urgent marineissues in each region we visit.

2.3 Promulgate a sustainability ethicThe resolution of marine environmental issues requires citizens who value the ocean and understand howto minimize human impacts upon it. Living aboard any sailboat motivates constant environmentalawareness because the students’ home is immersed in the sea. The vessel itself represents a system inwhich the fate of resources and waste matters. Living aboard the Beam Reach sailboat, students not onlyinteract personally with the ocean, but also are exposed to novel ways of achieving a sustainable humansociety. They research ocean ecosystems and study sustainable marine practices. They witnessrenewable power moving them across the planet, appreciate efficient design, and experiment to improvethe sailboat’s “clean” technologies. In each destination port, they culminate their learning experience bysharing new ways to mitigate or eliminate human impacts on the environment. With guidance frompartner institutions in the western U.S., Mexico, Ecuador, Polynesia, and Hawaii – including studentparticipants from the port communities – Beam Reach students present their scientific results and conduct 1 National Science Standards, National Research Council, National Academy Press, 19962 America’s Living Oceans: Charting a Course for Sea Change. Pew Oceans Commission, 2003

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service projects, like installing photovoltaic panels and wind turbines.

2.4 Create an icon of sustainabilityThe Beam Reach sailboat symbolizes for the world a new American dedication to finding ways toconsume less and cooperate more, without compromising comfort or performance. It is an inspiringcatamaran that carries scientists, students, ideas, and innovations cost-effectively between West Coastcities and Pacific ports, exclusively under renewable power. Both at sea and at the dock, it is emblematicof scientific understanding of natural systems and demonstrates appropriate technological solutions toenvironmental problems. While the Beam Reach sailboat pioneers new technologies and behaviors thatare sustainable, it also embraces the best of human cultural history; it is a modern version of a traditionalPolynesian voyaging catamaran and it is decorated with the motifs that grace the canoes of the FirstNations in the Pacific Northwest.

2.5 Improve teaching and research conditions at seaThe Beam Reach catamaran also sets new standards as a compelling classroom for teaching marinescience and engendering environmental stewardship, personal growth, and collaboration. Compared toother sailing school vessels, it is safer: it is so simple it can be handled by just 2 people; it has a singlewinch and no booms; and it has reduced sail area and no ballast – in contrast to sailing school tall shipswhich too often have been knocked down and rapidly, tragically sunk. Because of its small displacement,it is also more efficient. It is light enough to be powered without fossil fuels and fast enough to fit longPacific passages into standard academic schedules. Finally, it is more conducive to teaching andscientific research because it is quiet, stable, close to the water, and spacious.

2.6 Utilize the marine and scientific resources in the Pacific NorthwestThe logical home port on the West Coast for such a sailboat and the Beam Reach school is Friday Harbor,Washington. The San Juan Islands are a focal point of efforts to address major marine environmentalconcerns – from depleted orca populations to the establishment of new marine protected areas along theU.S./Canadian border. The Pacific Northwest region is also extremely rich in scientific resources andexpertise relevant to the Beam Reach program. The University of Washington in Seattle is a global leaderin study of oceans, fisheries, conservation biology, engineering, and earth sciences. The proximity of theUniversity enables myriad opportunities for student learning, faculty exchanges, technology transfers, andscientific collaboration. It also means logistical benefits for Beam Reach: UW Friday Harbor Labs willprovide Beam Reach access to their facilities as a visiting non-profit organization; the University’soutstanding reputation in the marine sciences will enhancing the marketability of Beam Reach programs;and, the undergraduate program will be approved for UW academic credit.

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3 Leadership

Scott Veirs

Scott completed a doctoral degree in Oceanographyat the University of Washington (UW) in June, 2003,having studied energy fluxes at deep seahydrothermal vents. His passion for environmentalscience and activism is rooted in his experience atStanford University, where he pioneered the EarthSystems major and became its first graduate in 1992.

Scott is a dedicated teacher of both science andsailing. He has taught field and lab components ofintroductory oceanography at San Francisco StateUniversity and has worked with the Sea EducationAssociation teaching oceanography aboard a tall shipin the Atlantic. At the UW he has taught anoceanography lab course and a course in informationtechnology that he designed, served as lead teachingassistant, and given sailing lessons through the yachtclub. He has also served as an instructor and boardmember for a marine research/education non-profit(the Ocean Inquiry Project).

Scott is an accomplished scientist who has strongconnections to the research community. Hisextensive field experience in both the Pacific andPuget Sound and his publications in Nature and theJournal of Geophysical Research qualify him to guidestudents safely through the challenges of research atsea to the publication of meaningful scientific results.

Scott has been sailing for 20 years. He has raced andcruised multihulls and half-cats in coastal waters andoffshore in the Pacific and Atlantic.

Vita: on-line at www.beamreach.org/vita.

Michael Dougherty

Michael is currently Chief Operating Officer ofAppliance Computing, a Seattle-area startupdedicated to empowering consumers during theresidential real estate transaction process. Michael isalso actively involved with research into Stellar sealion behavioral ecology in southeast Alaska. For thisproject he has led development of a small semi-autonomous boat for remote data collection.

From 2000 to 2003 Michael was Director ofOperations at Coolearth Software, a small supply-chain software company in Seattle. Michael played apivotal role in transitioning Coolearth from a servicescompany to a software provider, helping to establishsales and marketing, development, quality assurance,and support processes. Coolearth was recognized asone of the 100 fastest-growing companies inWashington in 2001 and 2002.

Michael earned a Master’s degree in ElectricalEngineering from UW in 1999. In pursuit of histhesis research on sperm whale acoustics, he ledextended boat-based field trips to northern Norwayand the Caribbean. He was awarded a three-year USDepartment of Defense graduate fellowship in 1996and holds two US Patents related to electronics signalprocessing inventions. Michael earned a Bachelor’sdegree in Engineering and International Studies fromYale University in 1993.

Michael was twice recognized for outstandingteaching at UW. Prior to attending UW, he taughthigh school physics and calculus for a year inWarsaw, Poland.

Michael has been sailing since early childhood.

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4 Educational program

4.1 Educational philosophy and strategyThe Beam Reach educational philosophy is that the interests and talents brought by each student can becombined with the skills and expertise of the teachers to accomplish meaningful, collaborative scienceand service projects. Through the admissions process we ensure that our students arrive with stronginterests in the oceans, science, sailing, sustainability, and/or “clean” technologies. This means that thefocus of our curriculum can be an exploration of student curiosities. The curriculum hinges on studentinquiry and evolves in response to student questions, just as the students’ questions evolve in response totheir teachers, local research opportunities, and the nature of the places they study. This interplay ofinterests, ideas, and resources catalyzes student inquiry into issues that Beam Reach is positioned toaddress. Thus, students practice science both as team members and as individuals throughout theprogram, ultimately acquiring the core concepts and skills that enable them to answer their own questionsscientifically.

All Beam Reach programs involve practicing science that is clearly motivated by important marine andenvironmental issues. Practice occurs in a learning cycle that has 5 essential stages: nurturing curiosity;formulating a question and the means to answer it; gathering new observations; assessing results; andpresenting conclusions – along with new curiosities. These stages characterize both the scientific methodand general problem solving, and each stage naturally encapsulates a Beam Reach learning objective. Wewant our students to be inquisitive, scientific, observant, analytical, and communicative. We also wantour students to understand marine and environmental problems, including their ethical and politicalfacets, and to help solve them by providing scientific insights.

The educational strategy of Beam Reach is to focus primarily on undergraduates, fitting full-termprograms into the academic calendar between September and May (see figure). This not only satisfiesour primary motivation of improving undergraduate science education, but also is strategic because theundergraduate market is best able to support Beam Reach on fee-based revenue; unlike many youngerstudents, undergraduates can devote 10 weeks to an educational experience and will likely find the costacceptable. Beam Reach will partner with other organizations to serve pre-university students on day- to2-week-long excursions in the Pacific Northwest during the summer, and the general public on day tripsin Pacific ports intermittently throughout the year. While the shorter programs are conducted exclusivelyon the Beam Reach sailboat, the 10 week undergraduate program includes both land and sea components.

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Our educational strategy has strong temporal constraints (illustrated in the annual schedule of BeamReach educational programs, above). The timing of activities at sea and on land activities is juxtaposedwith examples of quarter and semester academic schedules as well as the typical usage of Friday HarborLaboratory. While the labs are fully utilized by up to ~100 UW students/faculty during the summer,during the rest of the year housing and teaching facilities are available for Beam Reach students. Thismodel characterizes the Beam Reach schedule in year 5 of operations, during which 6 undergraduateclasses are served (numbered boxes), 1-2 week-long programs occur primarily in the summer, and daytrips or maintenance (M) periods fill the rest of the year.

The Beam Reach educational strategy also mandates that the our curriculum (described in section 3.4)accomplish 4 goals: offer unique, exciting, accredited courses; teach science well, both on land and at sea;yield good faculty work conditions; and maximize revenues by optimizing sailboat use. Each 10 weekterm for undergraduates at Beam Reach is called a passage and yields 17 units of transferable credit. Itbegins with 9 units of training on land at the Friday Harbor Laboratories, segues to 6 units of researchexperience at sea, and culminates in 2 units of service within the community at the destination port.Scientific training during the land component ensures that students are thoroughly prepared to get themost out of their research time at sea. It also enables Beam Reach to hire full-time faculty withoutrequiring them to spend extensive periods at sea; 3 faculty can teach 6 sea components without being atsea more than 10 weeks/year if they work together during any 5-week period – 2 teaching the landcomponent while 1 is at sea. Furthermore, by staggering classes by 5 weeks, Beam Reach doubles thenumber of students it could serve if it had only a sea component; during the first 5 years (when there isonly 1 sailboat), the undergraduate program involves 12 students at sea and another 12 students on land atany given time. The sea component lasts 5 weeks: long enough for significant learning and scientificprogress, development of strong relationships, and personal growth, but not so long that students becomeexhausted or faculty neglect land-bound obligations like family. Finally, keeping our core operations in aprogram that runs a full academic term, we reduce the costs associated with scheduling and preparatorylogistics which would be daunting if day- or week-long cruises filled the entire year.

4.2 Overview of the undergraduate student experienceDuring the shore component, Beam Reach undergraduates live and study at Friday Harbor Laboratories inthe San Juan Islands. Daily activities include classroom sessions, laboratory training, and field work –each integrated in a 3-course curriculum that prepares students to conduct research in the Pacific. Everystudent is given the option of contributing to an on-going research project initiated and guided by BeamReach faculty, or designing their own research project (alone or in a small group). Students join thesailboat directly as it departs Friday Harbor in the fall, or fly to meet it in a Pacific port. They embark ona voyage with their peers in which they execute their research plan under the guidance of the Beam Reachteachers: a captain, chief scientist, and scientist/mate. Each day at sea is filled with science, engineering,sailing, an afternoon class involving all hands, and delicious meals. Watches of 4 students conductscience and run the sailboat in shifts around the clock. Watches train intensively with a teacher for 2weeks, spend 1 week being led by a student member (with the teacher’s assistance), and workindependently during the last 2 weeks (with the teacher only supervising) ultimately delivering scientificresults, educational day-sails, and service projects to the communities in their final port.

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4.3 Routes and science fociThe annual migration of the Beam Reach sailboataround the Northeast Pacific ocean is designed to bea tantalizing educational experience that issynchronized with traditional academic schedules.The routes and itineraries are optimized for seasonalclimate, ocean currents, weather patterns, sailboatcapabilities, cultural exchange, and scientificopportunities.

Following the lead of migratory marine mammals,Beam Reach moves latitudinally to take fulladvantage of the sun’s power and the patterns ofPacific weather. To remain comfortable aboard asailboat designed to keep us close to the elements,we visit the equatorial zone during the (Northernhemisphere) winter and carefully heed seasonalstorm tracks throughout the Pacific. In travelingbetween U.S. and other Pacific ports, Beam Reachstudents are exposed to new cultures andencouraged to exchange ideas with their peers anddiverse communities.

The exceptional speed of the Beam Reach catamaran allows us to maintain our schedule on routes thatencompass the most exciting scientific opportunities, both on the open ocean and in port. For example,on the first passage of each year – from Friday Harbor to Baja California – Beam Reach research couldfocus on tracking grey and orca whales, investigating deep sea hydrothermal vents off the coast ofOregon, measuring sediment transport across the continental shelf from flooding rivers in northernCalifornia, monitoring sewage outfalls near U.S./Mexico border, and assessing the sustainability of thefisheries near La Paz, Mexico. Comparably rich scientific topics line the other passages: from La Paz tothe Galapagos Islands; from the Galapagos to Polynesia; back across the equator to Hawaii; and back tothe Northwest U.S.

4.4 Undergraduate curriculumThe Beam Reach undergraduate curriculum focuses on students practicing science as they learn aboutcritical marine and environmental issues. This is accomplished by using a learning cycle to structure keyactivities in the curriculum – both the shorter projects on land and the longer scientific pursuits that areplanned on land and accomplished at sea. The learning cycle has 5 basic phases:

Phase 1: Exploration of student interests and discussion of potential research issues. Teacherprovides provocative information, including past student experiences, andconstrains issues to have geographic relevance and logistical feasibility.

Phase 2: Identification of key questions and a plan to address them through scientificinvestigation.

Phase 3: Field research using Beam Reach resources.Phase 4: Analysis of results in collaboration with peers and/or mentors.Phase 5: Presentation of conclusions and new questions in written or oral fora.

With this learning cycle as a foundation, the curriculum can adapt to provide any group of students andteachers with a relevant, rigorous experience of essential scientific processes. As new research or

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learning opportunities arise, the curriculum can be reinvigorated without altering the structure or coreconcepts of the courses. This means Beam Reach students can benefit from a unique route the sailboattakes or leverage the expertise of a visiting scientist, while still meeting the expectations of the courseaccreditation committees.

The curriculum also delivers core science and engineering concepts. These concepts define the BeamReach subject matter and are naturally embedded (often as mini-lectures) in the presentation of marine,environmental, and shipboard issues throughout each 10-week passage. Each phase of the learning cycleyields opportunities for the teacher to provide both background concepts and motivate forays into thescientific literature. The core concepts are organized in 3 topical areas:

Core concept area 1: Earth systemsPhysics of energy; energy on Earth; climate and weather; ocean circulation; the geosphere; hydrologiccycle, weathering, and ocean chemistry; nutrients and plankton; carbon cycle and global warming.

Core concept area 2: Marine and human ecologyBiomolecules; energy and metabolism; photosynthesis and respiration; pollution, bio-accumulation, andtrophic levels; population dynamics; marine ecosystems; natural resources; hunting and aquaculture.

Core concept area 3: Ocean engineering and appropriate technologySensors and signals; energy in the sea (acoustics, light, and waves); hydrodynamics; power andpropulsion; physics of sailing; photovoltaics, wind and water turbines, and generators; fuel cells, batteries,and other energy storage technologies; desalination.

4.4.1 Shore componentFrom the first day a new class arrives at the Friday Harbor Labs, the students begin to practice sciencewithin the context of current marine and environmental issues. On day 1, the students start to follow theircuriosities and tabulate their questions – first during an hour alone observing a local environment, andthen during brief tours and presentations given by scientists who specialize in either the Pacific Northwestor the part of the Pacific the students will traverse during their sea component. In subsequent days,

students prioritize their questions through individualexercises, group activities, and study of the publishedinsights of previous students. With access to themarine environment in the San Juan Islands, the on-campus library, the Internet, and resident scientists,students can efficiently assess the state of science thatrelates to their curiosities.

Each day, a new set of core concepts, activities,excursions, and readings promotes student inquiry.Short lectures, laboratory sessions, and field trips are

taught by Beam Reach faculty and visiting faculty during 2.5 hour-long sessions in the morning andafternoon. Other common experiences include: attending professional science and naturalist talks;utilizing the Lab’s research vessel, the Centennial, and the associated remotely operated vehicle;snorkeling or scuba diving; interning with the Whale Museum, Center for Whale Research, or individualmembers of the commercial whale-watching industry; and traveling to Seattle to visit both the cityaquarium and the labs, oceanographic vessels, and other resources on the main campus of the Universityof Washington.

Throughout this diverse shore period the overarching goals are to practice formulating good questions and

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to learn how to answer them through scientific research. During the first 5 weeks, the Beam Reachlearning cycle is practiced through both the short-term Pacific Northwest research experiences and thelong-term planning for the upcoming sea component. The nature of the Pacific passage is introducedduring the first 2 weeks through discussions, expert presentations, and literature review. Throughinformal daily consultation and required weekly meetings with Beam Reach or other willing mentors,students pursue their curiosities and refine their questions, generating an initial research proposal by theend of week 3. Group activities and mentor meetings provide feedback to individual students in week 4to ensure that methodologies are thorough, backup plans are established, and logistical details areconsidered. Weekly cruise planning sessions culminate in the collaborative composition of a science planfor the cruise during week 5. Thus, by the time the students go to sea, each has experienced the processof posing good questions and preparing to answer them, and is ready to observe.

4.4.2 Sea componentWhile at sea, 12 students and 3 teachers collaborate on 1 or more research projects, as well as theoperation of the sailboat. Teachers include a captain, chief scientist, and a scientist/mate, while a visitingscientist provides additional content and assistance. Each day is divided into shifts, with each watchtaken by 4 students and a teacher. During any given watch, the students and teachers prioritize sailingand science objectives together. Students and staff prepare meals and maintain the boat together.

The scientific objectives for each cruise are agreedupon by the participating students and teachers priorto the cruise. While the captain and chief scientistmay encourage serendipitous science, the mainendeavor of each passage is achieving the scientificobjectives before reaching the destination port. Eachstudent meets weekly with their mentoring teacher toassess individual progress, revise their personalgoals, and adjust their plans. Teachers and studentpeers provide special assistance when each studentundertakes data collection and analysis. While theBeam Reach boat automatically acquires continuousoceanographic data (enabling change to be detectedon our repeat routes), students are involved in such acquisition and analysis only if they are interested orit benefits their scientific training.

Students and teachers gather daily to assess their progress toward scientific and personal objectives duringa 2-hour-long afternoon class session. In a typical class at sea, off-duty watch members present anddiscuss personal developments, science (position, environmental conditions, recent research results,discoveries, etc.), engineering systems (power, fuel, food, water, etc.), and safety (weather, navigation,risk mitigation, group drill practice, etc.). During the same period, Beam Reach teachers deliver corecontent, model scientific processes, and orchestrate class activities.

4.4.3 Service componentUpon arrival in the destination port, students prepare their scientific results and present them in a publicforum. The students also give educational tours of the Beam Reach sailboat, either demonstrating theirsailing and science skills with a public day sail, or showcasing the ship’s “clean” technologies. Theaudience includes members of the port community: friends and family of participating students; teachersand students in partner institutions; representatives of government and non-profits; and the general public.Language barriers will be overcome with translators and/or bilingual students and teachers. In addition to

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providing such informative services to the port community, students may choose to work with localpartners to implement a service project. For example, a Beam Reach group may collaborate with a localschool to study, design, and install a photovoltaic power system. As a long-term goal, Beam Reach willseek scholarships and adopt admissions policies that enable students from the local community toparticipate throughout the term and help guide the service project.

4.5 AssessmentBeam Reach strives to assess students and staff authentically, judging student success relative to learningobjectives and staff performance relative to organizational goals. The results support our on-goingaccreditation, guide our long-term improvement, and define our reputation. Assessment during and at theend of each term gives students and staff a clear perspective on their progress, strengths, and short-comings, helping them to learn and grow as much as possible from the Beam Reach experience.

Both on land and at sea, teachers assess student work by applying rubrics to each activity in thecurriculum. A rubric is a list of desired learning outcomes and rating criteria for an educational activity,be it experimental design, collaborative data collection, analysis, presentation, or publication. Facultygive the rubrics to the students prior to each major activity to clarify expectations and establish cleargoals. After each activity, numerical ratings are provided for all rubric categories and are discussed(along with any associated written comments) in a private formative evaluation – one that helps studentsassess their progress during the term and set goals for doing better. Each student receives 2 summativeevaluations: first, as the land component ends an involved faculty member reviews and summarizes thestudents formative evaluations, adding written comments concerning overall student progress; second,after the sea component, a similar review is generated by each teacher who has led the student’s watch.After completing an exit survey and teacher evaluations at the end of the term, the students get both oftheir summative evaluations as well as a letter grade for each course (based on how much theirperformance improved during their Beam Reach passage).

Each class of students, as well as participants in the public projects in each port, assesses the degree towhich Beam Reach accomplishes its educational and operational objectives. Students complete an exitsurvey regarding key program attributes that is utilized by Beam Reach staff in annual planning meetingsto refine and improve the program. Students assess staff performance at the end of both the land and seacomponents. The evaluations are primarily designed to aid the staff in improving their individualperformance, but are also compiled for reference during tenure and advancement reviews.

5 Organizational structure (6/2004)While the details of the Beam Reach organizational structure are still being determined, existing anddesired elements are presented below.

5.1 Non-profit corporationBeam Reach is currently incorporating as an independent 501(c)(3) non-profit. It has filed its articles ofincorporation with the State of Washington, has obtained a federal Employer Identification Number, andis preparing to file an application for tax-exempt status from the IRS. Non-profit status is importantprimarily because Beam Reach intends to solicit tax-deductible donations from individuals, foundations,and corporations. These donations may include funds, vessels, scientific instruments, and “clean”technology. Non-profit status is also critical because it is a prerequisite for all visitors who wish to useusing the UW Friday Harbor Laboratories (FHL), including classrooms, housing, and dock space.

5.2 GovernanceBoard of Directors: Beam Reach considers board development a top priority and is actively recruiting a

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mix of board members that can maximize contributions of expertise, financial resources, and contacts.Please contact us to learn who has agreed to serve, to express interest in assisting us, or to recommend anindividual who may be interested in furthering the Beam Reach mission.

Advisors: Beam Reach has already made good use of official advisors and continues to solicit advicefrom strategic partners and experts. Advisory committees will have 4 foci: Academic Affairs(accreditation, admissions, and curricula); Marine Operations and Safety (ship maintenance, safetytraining, and risk mitigation); Science (research priorities, opportunities, and partnerships); andSustainability (environmental science and technologies, partnerships, market channels, public education,and service project coordination).

Co-directors: With equal passion for the Beam Reach mission and complimentary skill sets, MichaelDougherty and Scott Veirs plan to lead the organization through its start-up phase. After the start-upphase we anticipate that Scott will focus increasingly on teaching and academic affairs while Mike willfocus primarily on administration and business concerns.

5.3 AccreditationUW Educational Outreach (EO) partnership: Beam Reach is negotiating a partnership with the UW foraccreditation and possibly additional services through Educational Outreach. Since November, 2003, wehave discussed Beam Reach with representatives of the UW Colleges within which accreditationcommittees will most likely be formed. As of May, 2004, we are working directly with Vice-ProvostDavid Szatmary to define the accreditation process and move toward a formal agreement. Dr. Szatmarycan be contacted with questions [phone: (206) ; email: ].

Alternative accreditation relationships: To maintain a reasonable bargaining position with UW/EO and asinsurance if the UW/EO partnership fails, Beam Reach has initiated contact with alternative accreditationagencies, including Boston University which accredits both the Sea Education Association and the Schoolfor Field Studies.

5.4 Land campus, employees, and marine operationsFriday Harbor Lab (FHL) affiliation: In late 2003, Beam Reach was invited by FHL Director DennisWillows to use various facilities (dock, dormitory, classroom, dining hall) during the fall, winter, andspring months in exchange for the standard fees charged to any educational non-profit uses the Lab on avisiting basis. A new director of FHL, Ken Sebens, was hired in 2004 and we believe it is likely that hewill value field research and undergraduate education and will therefore welcome Beam Reach as a non-summer visitor.

Upon formal accreditation of Beam Reach through UW Educational Outreach, the undergraduate programmay apply to use the facilities on a non-visiting basis. A longer-term agreement approved by the FHLAdvisory Committee (which meets annually in late May) could reduce planning uncertainties for BeamReach. In the event that the FHL affiliation becomes impossible, we have formulated a list of alternativecampuses and are researching the feasibility of each.

Faculty and staff: Prospective faculty and staff have been contacted. Seasonal workers, includingcaptains and mates/scientists, may be obtained through joint ventures and networking with other non-profits involved in sailboat-based education. A specific employment scenario is described in the financialmodel assumptions, including the hiring sequence from years 1–10.

Marine operations: Although the details must await procurement of a particular sailboat, a Beam Reachadvisory committee will be devoted to instituting a regular schedule of vessel maintenance (at least 2 yard

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periods per year), Coast Guard inspections and certifications, risk assessment and mitigation, and safetytraining.

5.5 Legal representationBeam Reach is currently seeking pro bono legal counsel.

6 Admissions, marketing, and fundraising strategy

6.1 Admissions and non-discrimination policyThe Beam Reach admissions process resembles that of many universities. Interested students submit anapplication that includes current transcripts, health information, and an essay expressing theirmotivations. The Beam Reach staff and the Academic Affairs advisory committee use these materials toselect candidates for interviews that are conducted in person or by phone. Beam Reach then selects aclass of students, with proper consideration of non-discrimination and affirmative action policies, as wellas review with the accreditation committee. The entire process is facilitated by Beam Reach admissionscounselors who are dedicated to answering student and parent questions, assisting with financial aid, andmaximizing enrollment in each class.

This admissions and marketing strategy reflects Beam Reach’s primary focus on university-levelprograms. Summer programs for high school and other students will pursue the same marketingapproach, but will generally rely on increased sales and marketing effort from partner institutions.

The Beam Reach non-discrimination policy is published prominently in all material utilized in ouradmissions process, as well as other Beam Reach activities, and is stated in the corporate Bylaws (ArticleVI, Section 3):

“Beam Reach considers applicants and admits students of any race, gender, sexual preference, nationality,or ethnicity to all the rights, privileges, programs, and activities generally accorded or made available tostudents at the school. Beam Reach does not discriminate on the basis of race, gender, sexual preference,religion, nationality, or ethnicity in administration of its educational policies, admissions policies,scholarship and loan programs, and athletic and other school administered programs. Beam Reach valuesand seeks diversity in its directors, administrative staff, and faculty, as well as its student body.”

6.2 Marketing

6.2.1 OverviewBeam Reach marketing will attract top students to its programs, communicate its core values, andestablish and reinforce Beam Reach as an institution of excellence. Across all media, messaging willemphasize to students and parents the core characteristics of Beam Reach:

• Focus on interesting, relevant, high-impact science• Opportunity to explore renewable energy, and other “clean” technologies• Unique Beam Reach sailboat and the ideals that it embodies• Extended exploration at sea• Chance to travel to attractive international destinations• Exceptional resources of the land campus in Friday Harbor• Availability of transferable academic credit• Excellent preparation for graduate studies• Encouragement of personal growth• Emphasis on safety

Beam Reach will market through a variety of channels, as described below.

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6.2.2 Marketing channelsRelationships with host universities: To recruit undergraduates, Beam Reach will develop relationshipswith colleges and universities through the following activities:

• Spreading awareness among faculty and counselors that can recommend Beam Reach to students• Cultivating ties to offices that facilitate and coordinate off-campus experiences• Negotiating agreements to ensure that Beam Reach credits transfer to the home institution• Arranging for Beam Reach to be listed in university course catalogs, web pages, etc.• Presentations by former students at their home institution• Presentations by Beam Reach faculty/staff at other universities• Developing relationships with relevant campus interest groups

Partner and affiliate institutions: Partner institutions such as the accrediting institution and the FridayHarbor Laboratories will provide critical marketing support. UW Educational Outreach, for example,currently markets to 80,000 students annually. The excellent reputation and attractive location of FHLlends credibility to the Beam Reach programs. These 2 marketing channels are especially important earlyon when the reputation of Beam Reach is becoming established. Beam Reach will also partner with othercolleges and universities, and will affiliate with non-profit organizations, foundations, and corporations.Marketing support from partner institutions will include sharing mailing lists, as well as featuring BeamReach in web pages, printed material, and course catalogs.

Web page: Beam Reach uses its web page (beamreach.org) to educate, inform, attract, communicate, andcoordinate the admissions process. The web site exhibits “live” updates from the sailboat at sea to allowfriends and family to follow and share in the voyages and to provide prospective students with an excitinginsight into the Beam Reach program. After Beam Reach has conducted its first programs, the web sitewill also feature student/parent testimonials.

Direct mail: Beam Reach employs targeted direct mail campaigns to reach prospective students. Mailinglists include those of partner institutions and others to be purchased.

Print advertising: Beam Reach advertises in printed publications: magazines that relate to sailing,science, renewable energy, or conservation; scientific journals; and university campus publications.

Publicity: Beam Reach seeks free publicity in various publications, television/film productions, etc.Public interest will stem from the unique nature of the sailboat, the advanced use of renewable energytechnologies, and the high-profile nature of the scientific and conservation issues explored by theprogram. For example, we will bring scientific information and rigor to local debates regarding thedecline of resident orca whales and the hunting of migrating grey whales by Makah tribal members.

Conferences: Beam Reach faculty, staff, and students participate in conferences related to scienceeducation, outdoor education, marine conservation, marine research, etc. Staff maintain an informationalbooth at key gatherings, while faculty enhance the scientific reputation of Beam Reach throughpresentation of their educational research and marine science results.

Scientific publications: Faculty and students affiliated with Beam Reach will publish their work inscientific and other journals. This will reinforce Beam Reach’s scientific and educational credentials, andhelp build general awareness.

6.3 FundraisingThe Beam Reach fundraising strategy consists of a sequence of distinct objectives and correspondingorganizational phases. The first of these phases is the startup period, during which Beam Reach must

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raise funds sufficient to acquire a sailboat, pay initial salaries, and cover marketing and other startupcosts. During this phase Beam Reach will solicit funds and materials primarily from individuals, privatefoundations, and corporations. Messaging will seek to inspire potential donors with the Beam Reachvision and opportunities to help realize it. In the case of corporations, positive public relations angles willalso be emphasized.

The second phase supports ongoing program operations. Although Beam Reach intends to achievefinancial self-sufficiency from program fees, 2 important objectives underpin fundraising during thisstage: make Beam Reach programs more accessible to students in financial need, and supplementprogram fees with scientific research funding. Scholarships and other student financial aid will besolicited primarily from individuals, foundations, and corporations; scientific research funds will besought from government grant agencies. During both efforts, Beam Reach will emphasize its establishededucational and research strengths and track record.

A third stage (which may be concurrent with the second) seeks endowment and capital budget funding.The target donors and messaging will be similar to the startup phase, but we will emphasize BeamReach’s proven abilities and accomplishments.

6.3.1 External sourcesBeam Reach will solicit funds primarily from individuals, foundations, corporations, government grantingagencies, and partners and affiliates. We will seek additional donations of equipment and/or materials(e.g. solar cells, sailboat construction materials, scientific instrumentation) from corporations, and willrequest other in-kind donations (e.g. accounting and legal services) from individuals, corporations, andboard members.

6.3.2 Role of the boardThroughout its fundraising efforts, Beam Reach will look to its board as a source of financial resources,contacts, advice, and other assistance.

6.3.3 AlumniBeam Reach recognizes that a strong alumni community has great financial, marketing, andprogrammatic value, and will strive to develop such a community. As Beam Reach students becomealumni, their experience will stand out as a highlight of their undergraduate endeavors and a critical partof their transition into adulthood. Moreover, the intensity and challenge of time at sea tends to catalyzethe formation of long-lasting friendships and allegiance to the Beam Reach vision and community. Webelieve similar off-campus programs (Sea Education Association, School for Field Studies) haveestablished strong alumni bases in part because the educational experience they offer is memorable andbuilds lasting social bonds.

Beam Reach does not expect significant revenue from its alumni until roughly 10 years after programinception. However, even before alumni can provide financial resources, they will help coordinateregional recruiting efforts and alumni activities, serve as Beam Reach faculty or staff, and contributeenergy, ideas, and enthusiasm through annual reunions. Beam Reach will lay the foundation for a vibrantalumni community from the beginning of its first program. Newsletters, alumni gatherings, dedicatedalumni cruises, online discussion forums, etc. will all help to strengthen and enhance the Beam Reachalumni community.

6.4 Value triggersKey components of Beam Reach’s value proposition to donors and grantors mirror those for its targetcustomers: education, particularly inquiry-based science; marine conservation; sailing and the sea;

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renewable energy; and inter-cultural exchange. Like its marketing materials, Beam Reach’s fundraisingmessaging will consistently emphasize its core values, excellence, and unique ability to deliver on itsvalue proposition.

7 Market analysis

7.1 Market size

7.1.1 Overall market for undergraduate education.The US market for undergraduate education is vast. In the fall of 2000, full-time undergraduateenrollment exceeded 7.9 million students, with over 1.2 million bachelor’s degrees granted in 2000-2001.Total overall revenues in post-secondary educational institutions exceeded $278 billion in 2001-2002.

On average, the ratio of enrollment at public versus private institutions is 2:1. Annual fees—tuition, roomand board—paid by full-time students at public 4-year universities averaged $9,953 in 2001-2002. Atprivate 4-year universities, this figure reached $29,120.

Fees for undergraduate education already rank as one of the most significant expenditures many familiesface. Moreover, academic fees continue to outpace inflation. Over the 10 years from 1991-92 to 2001-02, inflation-adjusted tuition and fees at public institutions rose by 21 percent; at private institutions thisfigure was 26 percent. (Source for above data: National Center for Education Statistics)

7.1.2 Estimate of market size for off-campus experiences.We are currently researching the overall market size for off-campus undergraduate learning experiences.Two organizations appear to play a significant role in coordinating such programs: the InternationalStudent Exchange Program (ISEP) and the Council on International Educational Exchange (CIEE). Bothfocus on traditional study abroad arrangements, but should help give an idea of the general market sizeand dynamics for off-campus programs. Meetings with off-campus program offices, both at UW andelsewhere, will help understand market size and dynamics.

We estimate (conservatively) that approximately 1% of undergraduate students participate in off-campusprograms each year. Using the NCES figure of approximately 8 million undergraduates yields anestimated 80,000 students per year. In year 10 of its current financial plan, Beam Reach aspires to workwith approximately 150 undergraduates—a figure that represents less than 0.2% market share.

7.2 Potential collaborators and competitionWhile there are many boat-based marine science education programs in the United States, theorganizations that serve undergraduates and are most similar to Beam Reach are the Sea EducationAssociation (sea.edu) and the School for Field Studies (fieldstudies.org), both of which are describedbelow. At the first annual meeting of the Board of Directors of Beam Reach, these and other potentialcollaborators and competition will be analyzed and incorporated into a 5-year, phased strategic plan.

7.2.1 Sea Education Association (SEA)Beam Reach is modeled after SEA in many aspects, but is distinct in its emphases on environmentalscience and technology, as well as a service project and public education in the destination ports. WhileSEA takes students back 150 years by blending oceanography with maritime studies and nautical skillsappropriate to a tall ship, Beam Reach launches students forward, helping them explore the ocean, newtechnologies, and environmental issues central to the 21st century.

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Founded in 1971 as a sail training school, SEA gives about 150 undergraduates per year (in groups of 24)a 6-week shore component at their inland campus in the town of Woods Hole, MA, and a 6-week seacomponent aboard the 134’ tall ships Corwith Cramer (in the Atlantic) or Robert C. Seamans (in thePacific since 2001). SEA has a $5 million operating budget, staff of 75, more than 20 university affiliatesacross the U.S., and nearly 6,000 alumni. They intend to expand their Pacific operations and arecollaborating with Stanford University’s Hopkins Marine Station every other spring (since 2003).

7.2.2 School for Field Studies (SFS)Beam Reach is most similar to the SFS in its emphasis on community-focused environmental field work.While SFS has some programs that focus on the marine environment, they make minimal use of boat-based education and were recently forced to close their field station in Bamfield, British Columbia onVancouver Island for lack of student interest. Informed by an initial conversation with their Dean ofStrategic Initiatives, the most likely collaboration would be to exchange access to the Beam Reachresearch vessel at the SFS station in Baja Mexico for access to established SFS market channels. WhileSFS will compete with Beam Reach for environmental studies students, it is not positioned to attractstudents who want to go to sea or who seek a rigorous experience in marine science at an establishedresearch laboratory.

Based in Salem, MA, and founded in 1980, the SFS has served over 9,500 college and high schoolstudents through Fall and Spring semester programs and 30-day summer courses at field study centers inAustralia, Kenya, the British West Indies (Turks and Caicos) , Costa Rica (inland), and Bahia Magdalena,Baja Mexico. They squeeze a 14-week curriculum into a 12-week experience for undergraduates at aremote field station. Student field work emphasizes interdisciplinary study and hands-on collaborationwith members of the local community.

8 Finance

8.1 Key assumptions of financial modelSingle sailboat: Years 1 through 5 of the current model assume a single catamaran, approximately 65 feetin length, which carries 12 students and 4 staff. Beam Reach ultimately aims to operate with 2 or moresailboats of this size. Multiple sailboats will enable more diverse program offerings and more flexiblescheduling; they will also provide Beam Reach with economies of scale that allow it to more effectivelyutilize on-shore resources such as faculty, administration, an admissions team, and the land campus. Thefinancial summary of the 2-sailboat program is depicted in year 10 of the model.

Tuition and fees: The financial model employs a price of $10,500 for tuition, room, and board for a 10-week Beam Reach program. This price is comparable to or less than the price of similar sailboat-basedprograms and to the cost of attending most private universities for an equivalent time period. To theextent possible, Beam Reach seeks to provide access to its programs regardless of financial means. Tothat end, Beam Reach will attempt to keep fees low and to raise funds to subsidize students in need.Travel expenses will vary according to point of dis/embarkation and will be borne by the student, and aretherefore not included the financial model.

Startup cost financing: A central assumption is that Beam Reach raises the funds required to acquire orbuild and fully outfit a sailing catamaran (estimated maximum cost of $525,000). We also assume thatBeam Reach will raise funds to cover startup costs such as salaries, sales/marketing, and other expensesthat precede revenue generation from program services, grants, or other donations. Overall, Beam Reachexpects to incur startup costs of roughly $950,000.

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Co-founders help to underwrite startup costs: The model includes a pay scale for both co-founders thatstarts with reduced salaries but provides for annual increases, subject to Beam Reach meeting financialand programmatic objectives stipulated by the Board of Directors.

Use of Friday Harbor Laboratories (FHL) as a land campus: As described earlier in this plan, BeamReach plans to use the University of Washington’s Friday Harbor Laboratories as a visiting, non-UWentity. The FHL facilities are expected to include dock space and access to classrooms, laboratory space,dormitories, and the dining hall on a fee basis.

Portion of revenues owed to accreditation partner institution: Beam Reach is currently investigatingvarious forms of partnership with the University of Washington. Although currently the structural,financial, and programmatic implications of such a relationship are undetermined, Beam Reach estimatesthat at minimum, it will need to divulge a portion of its revenues to any partner institution that providescollege academic credit. This is currently modeled at 5%, although it could vary significantly from thisfigure.

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8.2 Financial modelNote: voyage is a 10-week passage; seminars are 1-2 week excursions; field trips are basically day sails.

Y01 Y02 Y03 Y04 Y05 Y10

REVENUESProgram Service Revenue

voyage -$ 393,120$ 545,126$ 708,664$ 884,413$ 2,152,047$ seminar -$ 74,880$ 109,025$ 161,980$ 168,460$ 286,940$ field trip -$ 6,000$ 9,000$ 9,000$ 9,000$ 18,000$ total -$ 474,000$ 663,152$ 879,645$ 1,061,873$ 2,456,987$

Other Revenue

Grants -$ 75,000$ 100,000$ 125,000$ 150,000$ 250,000$ Donations 900,000$ 100,000$ 50,000$ 50,000$ 50,000$ 100,000$ Alumni contributions -$ -$ -$ -$ 5,000$ 50,000$ In-kind contributions 10,000$ 10,000$ 10,000$ 10,000$ 10,000$ 20,000$ total 910,000$ 185,000$ 160,000$ 185,000$ 215,000$ 420,000$

Total revenues 910,000$ 659,000$ 823,152$ 1,064,645$ 1,276,873$ 2,876,987$

EXPENSES

Program Services 81,050$ 309,037$ 413,002$ 506,015$ 589,370$ 1,307,522$ % 9% 47% 50% 48% 46% 45%

Management and General

Admissions 118,845$ 135,803$ 172,360$ 237,670$ 297,980$ 427,815$ General and administrative 68,745$ 89,468$ 96,225$ 123,900$ 132,510$ 223,275$ total 187,590$ 225,270$ 268,585$ 361,570$ 430,490$ 651,090$

% 21% 34% 33% 34% 34% 23%

Fundraising 96,385$ 107,420$ 113,455$ 153,510$ 160,890$ 287,570$

% 11% 16% 14% 14% 13% 10%

Vessel construction 525,000$

Total operating expenses 890,025$ 641,727$ 795,042$ 1,021,095$ 1,180,750$ 2,246,182$

EXCESS OR DEFICIT 19,975$ 17,273$ 28,109$ 43,549$ 96,123$ 630,805$

STATEMENT OF PROFIT AND LOSS