Homeland Security

Regional Detroit companies have a proud history of providing vehicles, equipment and services to the nation’s armed forces. As America prepared to enter World War II, President Franklin Roosevelt delivered his famous “arsenal of democracy” speech at the Detroit Arsenal Tank Plant in Warren, Michigan. The Detroit Region’s auto assembly lines soon switched to war production mode, and in 1942 B-24 bombers started rolling off the lines at Ford’s Willow Run Assembly plant in Ypsilanti.

Today, the Detroit Region’s technical expertise naturally lends itself to the demanding requirements of the U.S. military. As the knowledge center of the world’s automotive industry, the Detroit Region has more engineers per capita than any other Region in the United States.

Homeland Security is a rapidly growing in the Detroit Region. In Macomb County, jobs related to the defense industry have grown 72%, from 7,100 in 2000 to 12,200 in 2007. In 2011, more than 1,200 jobs expected to transfer from Rock Island, Illinois in conjunction with the BRAC realignment.

Defense Contract Coordination Center (DC3)

Works in concert with the 12 state Procurement Technical Asisstance Centers (PTAC) to open the door for Michigan companies vying to secure federal contracts. They are charged with promoting and representing Michigan companies before federal buyers for prime contracts. They are focused on increasing the number of prime contracts awarded by the Department of Defense to Michigan companies and identify opportunities and compete as supply chain clusters.

The DC3 is led by U.S. Marine Corps Major General Bradley M. Lott (Ret.) and the DC3 is administered by the Michigan Economic Development Corp. For more information visit www.ptacsofmichigan.org.

Michigan Business Tax Credit

Passed in 2008, the new Defense Contracting Michigan Business Tax Credit will help companies receive federal contracts from the Department of Defense, Department of Energy and the Department of Homeland Defense.

Through the authority of the Michigan Economic Growth Authority, companies awarded federal contracts, may also be awarded a refundable tax credit against the Michigan Business Tax. For information on the requirements to obtain the MBT credit please visit www. michiganAdvantage.org or contact the MEDC at 517.373.9808

TARDEC ATV

STATE PROGRAMS & INCENTIVES

Photos: Courtesy of Selfridge Air National Guard Base.

INTRODUCTION

For more information on doing business in the Detroit Region contact:Dean Johnson 313.596.0406e-mail: djohnson@detroitchamber.com

MAJOR PLAYERS

TACOM, TARDEC and the NAC· The U.S. Army’s Tank Automotive Operations Command (TACOM) is headquartered at the former Detroit Arsenal Tank Plant in the City of Warren and has five satellite locations across the country.

· TACOM is responsible for equipping America’s soldiers with a full range of technology and logistics support systems. TACOM provides state-of-the-art ground combat systems, automotive equipment, marine systems and armament systems.

· TACOM is one of the Army’s largest weapons R&D organizations.

About 97 percent of Army units worldwide use equipment designed, bought and serviced by TACOM. Of TACOM’s 4,141 Detroit Region employees, more than 90% are civilians and include a highly talented team of engineers, researchers and mechanics. In 2011, TACOM will shift roughtly 1,200 jobs to the Macomb facility from Rock Island, Illinois.

· The Tank-Automotive Research, Development and Engineering Center (TARDEC) is located at TACOM, and is the nation’s premier laboratory for advanced automotive military technology.

TARDEC’s mission “is to provide full service life cycle engineering support to the TACOM Life Cycle Management Command, the Program Executive Office for Ground Combat Systems, the Program Executive Office for Combat Support and Combat Service Support, and the Program Manager for Future Combat Systems Brigade Combat Team.”

From researching alternative fuels to sophisticated computer modeling of vehicle performance, TARDEC’s National Automotive Center (NAC) sponsors collaborative efforts between industry, academia and government agencies.

For more information about:

TACOM: www.tacom.army.mil/main/index.htmlTARDEC www.tardec.army.miNAC http://tardec.army.mil/nac.asp

PTACThe mission of the Procurement Technical Assistance Centers (PTACs) of Michigan is to enhance national defense and economic development of the State of Michigan by assisting Michigan businesses in obtaining and performing on federal, state and local government contracts. Currently, the state’s ptacs have 2,472 active client companies. For more information visit www.ptacsofmichigan.org.

DEFENSE CONTRACTS IN THE DETROIT REGION

Top Ten Contract Categories (Michigan)

1 Combat vehicles2 Services3 All other supplies and equipment4 Weapons5 Textiles, clothing, and equipage6 Non-combat vehicles7 Electronics and communication8 Medical & dental supplies & equipment9 Other aircraft equipment10 Aircraft engines & spares

Prime Contracts by County, 2006

County TotalGenesee 2,078,511Lapeer 1,297,567Lenawee 5,920,555Livingston 15,120,962Macomb 2,619,065,049Monroe 2,352,621Oakland 155,855,584St. Clair 42,356,717Washtenaw 80,942,012Wayne 92,188,935Totals 3,017,178,513

$3,017,178,513 in Department of Defense prime contracts were awarded to Detroit Region companies in 2006, accounting for over 77.4 percent of all defense contracts in Michigan. Prime contracts are contracts valued at over $25,000.

In addition, in 2010 the region is expected to receive $5.7 billion up from the National Defense Authorization Bill to complete several projects.

SELFRIDGE AIR NATIONAL GUARDSelfridge ANGB is located in Harrison Township in Macomb County and dates back to 1917. It is the only open military base in the State of Michigan and more than 150 generals have spent part of their careers at this facility. More than 400 active duty, 1,340 civilian workers and 3,049 reservists and guardsmen work on the base. Projected personnel at Selfridge for mid-fiscal year 2009 is nearly 6,400.

Selfridge is currently one of only two installations in the country with all four Department of Defense services plus Department of Human Services. In addition, Selfridge is the Air National Guard’s largest and most complex base.

The host organization is the 127th Wing of the Michigan Air National Guard. All branches of the military use the facility. In 1971, Selfridge ANGB was credited with being the largest Reserves Forces facility in the United States. The Michigan 127th Wing mission is to provide trained, equipped and motivated tanker, fighter and support resources for the community, state and nation.

The Air National Guard Base is home to the Selfridge Military Air Museum, which perserves the strong tradition of the Michigan Air National Guard. Housing several military artifacts and exhibits, visitors will get a sense of the strong heritage and tradition of the Air National Guard for Michigan as well as all military branches.

Source: Department of Defense Prime Contract Awards Report.

SIC Code Industry Number of

BusinessTotal Sales

($ in millions) Total Site

EmployeesTotal Company

EmployeesManufacturing

3482-00 Small arms ammunition 4 $0.3 7 73482-99 Small arms ammunition, nec 1 $0.1 2 23484-00 Small arms 6 $9.1 74 593484-01 Machine guns and grenade launchers 1 $0.1 1 13484-99 Small arms, nec 5 $1.8 20 253489-00 Ordnance and accessories, nec 5 $24.7 65 653489-01 Guns, howitzers, mortars and related equipment 1 $0.1 2 23711-03 Military motor vehicle assembly 3 $94.8 272 2503721-00 Aircraft 9 $23.3 416 3173721-01 Motorized aircraft 3 $0.4 5 53724-00 Aircraft engines and engine parts 7 $16.9 328 3283724-99 Aircraft engines and engine parts, nec 9 $323.5 932 1,2893728-00 Aircraft parts and equipment, nec 35 $70.2 778 6883728-01 Aircraft body and wing assemblies and parts 1 $0.1 1 13728-02 Aircraft propellers and associated equipment 6 $49.1 310 3503728-03 Aircraft landing assemblies and brakes 1 $0.1 1 13728-04 Military aircraft equipment and armament 2 $8.1 8 1183728-05 Aircraft training equipment 1 $0.1 2 23728-99 Aircraft parts and equipment, nec 5 $37.8 185 1853731-02 Military ships, building and repairing 2 N/A 5 N/A3764-00 Space propulsion units and parts 1 N/A 2 N/A3764-99 Space propulsion units and parts, nec 2 N/A 35 N/A3769-00 Space vehicle equipment, nec 4 $5.2 73 733795-00 Tanks and tank components 4 $4.3 144 533795-99 Tanks and tank components, nec 5 $732.0 2,325 7,3203812-00 Search and navigation equipment 10 $1,018.2 881 7,7933812-01 Aircraft/aerospace flight instruments and guidance systems 4 $4,814.3 4 50,0043812-03 Navigational systems and instruments 3 $0.8 57 73812-05 Defense systems and equipment 2 $2.6 41 413812-06 Search and detection systems and instruments 4 $0.8 14 133829-00 Measuring and controlling devices, nec 75 $239.8 1,641 2,4973829-01 Aircraft and motor vehicle measurement equipment 12 $41.7 304 4843829-02 Geophysical and meteorological testing equipment 1 $2.4 30 303829-03 Surveying and drafting equipment 4 $1.8 19 193829-03 Physical property testing equipment 36 $267.3 1,320 2,6723829-05 Nuclear radiation and testing apparatus 3 $3.9 45 453829-99 Measuring and controlling devices, nec 6 $14.9 148 2723999-12 Identification badges and insignia 1 $1.0 6 6

Retail 5699-01 Uniforms and work clothing 6 $2.1 14 17

Services7699-22 Aircraft and heavy equipment repair services 2 $0.4 6 6

Public Administration8211-02 Private elementary and secondary schools 1 $0.1 9 99711-00 National security 17 N/A 477 119711-99 National security, nec 109 N/A 8,684 N/A

Total 419 $7,814.2 19,693 75,067

Source: Dun and Bradstreet.

DEFENSE RELATED INDUSTRIES - Detroit Region, 2008

MAJOR COMPANIES

AAR Manufacturing Inc.Adaptive Manufacturing SolutionsAdaptive Materials Inc.Advance Turning & MfgAircraft Precision ProductsArvinMeritorAssembly & Test Worldwide Inc.AzentekBadenoch LLCBAE SystemsBarnes Group Inc.Blevins Screw Products Inc.Burtek Inc.Control-Tec LLCCoordinated Defense SupplyDelta Technology Group

Eaton Corp.Enstrom Helicopter CorpEpic MachineFormsprag LLCGE Aviations Systems LLCGeneral Dynamics Advanced Information SystemsGeneral Dynamics Land SystemsGentz Industries LLCGMA Cover Corp.Hart Precisions Products IncHommel-Etamic America Corp.Honeywell International Inc.Hytrol Manufacturing Inc.J.F. Hubert Enterprises Inc.Jedco Inc.Kuka Systems

Defense Companies in the Detroit Region:

Lapeer Industries Inc.Link Engineering Co.Loc Performance Products Inc.Metris USA Inc.Mirror Lite Co.Moeller Aerospace TechnologyMoeller Manufacturing Co. Inc. Niles Precisions Co.Odyssey Industries Inc.Parker-Hannifin Corp.Pratt & Whitney Autoair Inc.PrecisionWerxPromess Inc.Schaller GroupScott Machine Inc.Sika Corp.Steel Tech & Engineering Co.

Talbot QD Mounts Inc.Testek Inc.W IndustriesWoodward FST Inc.

RECENT ANNOUNCEMENTS

New life for Warren and it Arsenal!In preparation for the 1,800 new jobs that will be arriving in 2011 the arsenal has begun construction on a new building. The new 230,000 sq.ft. building will cost about $69 million and accomodate 1,100 TACOM personnel. In addition, The House and Senate approved nearly $30 million for projects at the arsenal which house TACOM and TARDEC.

Lawrence Technological University and TARDEC to collaborate!Lawrence Technological University received a $1.6 million grant to collaborate with TARDEC on a new material to be used in armored vehicles. The research will be completed at Lawrence Tech in the Center for Innovative Materials Research. This grant is in addition to an $800,000 grant recieved earlier that will allow Lawrence Techn to build an extreme conditions testing facility for military vehicles.

General Dyanmics continues to expand! One of the region’s largest defense suppliers is planning to expand their military vehicles testing facility. The new facility will be built at a cost of $8.2 million.

REGIONAL DETROIT COLLEGE & UNIVERSITY RESEARCH CENTERS & PROGRAMS

Eastern Michigan University • Center for Regional & National Security • Coatings Research Institute (CRI) for Military Equipment Protection

Kettering University • Fuel Cell Laboratory for Defense Applications

Lawrence Technological University • Center for Innovative Materials Research (CIMR) for Defense Applications

Oakland Community College • Combined Regional Emergency Services Training (CREST) Center • Information Technology for Homeland Security Program • Macomb Oakland INCubator

Oakland University • Product Development & Manufacturing Center • Fastening & Joining Research Institute

University of Michigan • Michigan Center for Public Health Preparedness • Institute for Advanced Vehicle Systems • MURI Center for Intelligent Electronics • Terrorism & Preparedness Data Resource Center

Walsh College • Information Assurance Center (National Center of Excellence)

Wayne County Community College District • Michigan Institute for Public Safety Homeland Security Certificate Program

Wayne State University • Institute for Information Technology for Homeland Security • Smart Sensors & Integrated Micro Systems

OUTSIDE THE DETROIT REGION

Michigan State University • CyberSecurity Laboratory • Composite Materials & Structures Center for Defense Applications • National Food Safety & Toxicology Center • Center for Remote Sensing & Geographic Information SystemsMichigan Technological University • Remote Sensing & Environmental Monitoring Institute • Blue Marble Security Laboratory

The Detroit Region is home to 10 universities, 13 colleges and 18 community colleges. Major research institutions include the University of Michigan and Wayne State University. The Department of Defense and other federal agencies spend millions on defense and homeland security related research in the Detroit Region. Innovative research in advanced engineering, life sciences and small tech (such as nanotechnology and MEMS) are becoming increasingly important to defense and homeland security.