The New England Defense Industry

The New England Defense Industry:

Current Profile and Economic Significance

December 2015

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 1 This report includes, for New England and its states:

• Overview

• 2004-2013 trend of DoD/DHS grant and contract awards, and the number of contractors and grantees

• Economic contributions from DoD/DHS grant and contract work performed here

• Top ten industry sectors

• Top ten defense products and services

• Top ten defense contractors

• Top ten defense grant programs

• Top ten defense grant recipients

• Ten-year comparison of the dollar value of work contracted and the amount of work performed here

• Map of defense contract awards by ZIP Code

Underwritten by MassDevelopment for the Commonwealth of Massachusetts Military Asset & Security Strategy Task Force

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 2 Summary of Key Findings

he UMass Donahue Institute’s latest analysis of U.S. defense contracting shows that New England remains an Timportant source of defense-related products and associated services. Businesses and organizations in New England received nearly $27 billion in defense-related grants and contracts during federal fiscal year (FFY) 2013 according to the analysis in this study.

Prepared on behalf of MassDevelopment, this study provides customized analysis based on detailed defense grant and contracting records to characterize strengths in the defense industry in each of the six states in the region, and describes the economic effects flowing from these activities in FFY2013. Economic activity resulting from the production of defense equipment and systems impacts both private and public sector activity in the region, with an estimated total employment impact of more than 218,000 jobs in FFY2013. Contract activities and research grants including Small Business Innovation Research and Small Business Technology Transfer awards benefit a wide range of businesses both large and small — especially manufacturers and research and development organizations — to support economic activity of $48 billion within the region. This activity included more than $22 billion in secondary effects generated through business spending and the household spending of employees.

While more than 4,600 New England firms and institutions receive DoD and DHS funds, the region’s contract awards are concentrated in three industry sectors that show exceptional strength. Nearly half of contract awards go towards transportation equipment manufacturing; twenty-one percent go towards professional, scientific and technical services; and another fourteen percent go towards computer and electronic products manufacturing. Much of this activity requires highly educated and skilled workers, precision manufacturing, and scientific and technical support.

An analysis of trends shows that total value of grant and contract awards have decreased in New England since a peak in 2005, but recent declines in New England have been at a lower rate than declines in the United States. And in spite of downward trends in available funding nationally, the New England region remains competitive, garnering nearly nine percent of total U.S. funding in FFY2013.

This study should not be compared with our June 2012 study. Changes and updates to the IMPLAN multiregional input-output model such as the reorganization of the industry sector scheme, the introduction of new spending patterns, and revisions to the regional data, complicate comparisons between the two analyses. Historical USASpending data are also revised to reflect modifications to grant and contract awards.

For more information contact:

UMass Donahue Institute 100 Venture Way, Suite 9 | Hadley, MA 01035-9462 phone: 413-545-0001 fax: 413-545-3420 www.donahue.umassp.edu or www.MassBenchmarks.org

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 3 New England Summary

The defense industry is a major contributor to the components like the Virginia-class submarine (SSN economy of New England. Over the last ten years, 774 Class), gas turbines, jet engines, Sikorsky UH-60 the region has received one of every twelve defense Black Hawk helicopters, and the DDG 51 Arleigh Burke grant and contract dollars. In 2013, the region received Class AEGIS Destroyer. The professional, scientific, $26.8 billion in Department of Defense (DoD) and and technical services sector (20.6 percent), with Department of Homeland Security (DHS) grants and a strong concentration in Massachusetts, provides contracts, a 31 percent increase since 2004. Defense services for defense electronics and communications and Homeland Security grants and contracting are equipment basic research; research, development, test responsible for more than 218,000 jobs and a total and evaluation programs for submarines; and missile payroll of $17.0 billion across the region. Overall, defense systems. And the computer and electronic the direct, indirect, and induced economic activity product manufacturing sector (14.3 percent), also generated in New England by U.S. contractors and important in Massachusetts, produces systems like grantees is $48.0 billion. the AN/TPY-2 ballistic missile defense radar, integrated combat system software for the Navy’s new DDG-1000 Regional involvement in the industry is widespread: destroyer, and the AEGIS SPY-1 radar for the AEGIS, an 4,600 New England firms and institutions tied to DoD integrated missile guidance system. and DHS funds provide essential equipment, supplies, and technical services in support of defense operations. Two contracts accounted for one-sixth of all New Many activities require highly educated and skilled England contract awards in FFY2013. General workers, precision manufacturing, and cutting-edge Dynamics Electric Boat in Groton, CT, received a $2.5 scientific and technical support. But defense budget billion award to build two Virginia-class submarines cuts and other factors have had impacts within the — South Dakota (SSN-790) and Delaware (SSN-791) — region. The number of DoD/DHS contractors in New the 17th and 18th ships of the class. Construction of England has decreased 19.3 percent since a ten-year Virginia-class submarines is shared between Electric peak of 5,694 in 2005. Boat — the prime contractor — and its teammate, Newport News Shipbuilding. United Technologies Currently, the region’s contract awards are Sikorsky Aircraft in Stratford, CT, received a $1.8 concentrated in three industry sectors. The billion award to supply Black Hawk and Sea Hawk transportation manufacturing equipment sector helicopters. Defense contracting generates economic (48.0 percent), based heavily in Connecticut, Rhode activity throughout the region with more than 90,000 Island, and Maine, produces combat systems and jobs directly supported in New England.

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 4 DoD and DHS Contractors and Payments to New England, FFY2004–2013 ($M)

Contract Dollars Grant Dollars Federal Fiscal U.S. % New N.E. % N.E. % of All New N.E. % N.E. % of All U.S. U.S. U.S. % Year Change England Change Contractors Change England Change Grants 2004 $228,618 $20,089 8.8% $6,851 $360 5.3%

2005 $271,557 18.8% $22,713 13.1% 8.4% $13,357 95.0% $402 11.7% 3.0%

2006 $300,749 10.7% $21,783 -4.1% 7.2% $16,601 24.3% $412 2.5% 2.5%

2007 $331,986 10.4% $25,544 17.3% 7.7% $6,659 -59.9% $481 16.8% 7.2%

2008 $393,661 18.6% $29,802 16.7% 7.6% $8,999 35.1% $685 42.3% 7.6%

2009 $366,271 -7.0% $32,088 7.7% 8.8% $15,532 72.6% $733 7.1% 4.7%

2010 $358,575 -2.1% $29,157 -9.1% 8.1% $12,317 -20.7% $746 1.8% 6.1%

2011 $368,430 2.7% $33,886 16.2% 9.2% $12,214 -0.8% $678 -9.2% 5.5%

2012 $355,239 -3.6% $29,623 -12.6% 8.3% $11,922 -2.4% $1,033 52.4% 8.7%

2013 $302,520 -14.8% $25,938 -12.4% 8.6% $14,930 25.2% $903 -12.6% 6.0%

New England DoD and DHS Contracts and Contractors New England DoD and DHS Grants and Grantees Contract awards are down 23 percent since their 2011 peak Grant awards are down 13 percent since their 2012 peak

$40,000 6,000 $1,200 700

$35,000 600 5,000 $1,000 $30,000 500 4,000 $800 $25,000 400 $20,000 3,000 $600 300 Grantees $15,000 Contractors 2,000 $400 200 Grant Dollars ($M ) Contract Dollars ($M) $10,000 1,000 $200 $5,000 100

$0 0 $0 0

006 006 2004 2005 2 2007 2008 2009 2010 2011 2012 2013 2004 2005 2 2007 2008 2009 2010 2011 2012 2013 Federal Fiscal Year Federal Fiscal Year

DHS Contractors DoD Contractors Contract $ DHS Grantees DoD Grantees Grant $

Economic Contributions from Defense Contract Work Performed in New England, FFY2013 New England defense contracting generated $48 billion and more than 218,000 jobs

Direct Contribution of Work Performed Indirect + Induced Contribution from Total Contribution in New England Work Performed in New England*

Output $25.7 billion $22.3 billion $48.0 billion

Employment 90,064 128,117 218,181

*These indirect and induced contributions to New England result from the purchase of products and services used in defense work performed in other states. Sources: USASpending.gov; data extracts as of November 16, 2014 for contracts and January 2, 2015 for grants; MIG, Inc., IMPLAN System (2013 data).

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 5 New England Summary of DoD and DHS Contracts

Top Defense Industry Sectors in New England, by Dollar Value, FFY2013 Top Defense Products and Services in New England, by Dollar Value, FFY2013 The top three industries accounted for 83 percent of New England Nuclear submarines were the dominant product in New England contract awards

Value of Contracts ($M) Value of Contracts ($M) $0 $5,000 $10,000 $15,000 $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000

Transportation Equipment Manufacturing $12,443 Ships, Small Craft, Pontoon, Docks $5,342 Professional, Scientific, and Technical Services $5,350 Aircraft/Airframe Structure Components $3,986

Computer and Electronic Product Manufacturing $3,708 Engines and Turbines and Components $2,836

Fabricated Metal Product Manufacturing $1,073 Research and Development $2,082

Ambulatory Health Care Services $434 Maintain, Repair, Rebuild Equipment $1.949 Electrical Equipment, Appliance, & Component Manufacturing $428 Aircraft Components/Accessories $1,554

Telecommunications $363 Maintain/Repair Shop Equipment $1,006

Construction of Buildings $247 Electric Wire, Power Distribution Equipment $971

Support Activities for Transportation $243 Support Services (Professional, Administrative, Management) $925

Machinery Manufacturing $231 Electrical/Electronic Equipment Components $847

All Others (Includes N/A) (n=80) $1,418 All Others (Includes N/A) (n=86) $4,438

Top Defense Contractors in New England, by Dollar Value, FFY2013 Work Contracted and Work Performed in New England, FFY2004–2013 With locations in Connecticut, Maine, Massachusetts, New Hampshire, New England received contracts for five percent more work than was performed and Vermont, General Dynamics is the top New England contractor here over the last ten years

Value of Contracts ($M) Value of Contracts ($M)

$0 $2,000 $4,000 $6,000 $8,000 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000

General Dynamics $7,393 2013 $25,938 $25,273 United Technologies $5,208 2012 Raytheon $3,990 2011 General Electric $1,286 2010 Awards to BAE Systems $1,009 New England ear 2009 Contractors Massachusetts Institute of Technology $808 Work Performed Textron $512 2008 in New England The Charles Stark Draper Laboratory $449 2007 Federal Fiscal Y L‐3 Communications $297 2006

MITRE $294 2005 All Others (Includes N/A) (n=4084) $4,692 2004

Top Grant Programs in New England, by Dollar Value, FFY2013 Top Grant Recipients in New England, by Dollar Value, FFY2013 A large proportion of recent DoD and DHS grant awards funded Massachusetts received 46 percent of New England’s DoD and DHS grants with disaster relief efforts, the National Guard, and research and development more than one-third of funding going to colleges and universities

Value of Grants ($M) Value of Grants ($M) $0 $50 $100 $100 $200 $0 $100 $200 $300 $400 $600 $600

Disaster Grants — Public Assistance $176 Disaster Grants — Multiple Recipients $114

National Guard Military Operations and Maintenance $148 Massachusetts Institute of Technology $72 Military Medical Research and Development $114 State of Vermont Transportation $48

Basic and Applied Scientific Research $69 Commonwealth of Massachusetts Military Division $46

Basic Scientific Research $52 Massachusetts Emergency Management Agency $36 Federal Disaster Assistance to Individuals and Households $44 State of New Hampshire $25

Homeland Security Grant Program $44 President & Fellows of Harvard College $23

Air Force Defense Research Sciences Program $38 Massachusetts Executive Office of Public Safety $21

Assistance to Firefighters Grant $37 Vermont Department of Military $20

Hazard Mitigation Grant $33 Connecticut Department Emergency Management $19

All Others (Includes N/A) (n=51) $148 All Others (Includes N/A) (n=447) $477

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 6 FFY2013 Defense Contract Awards in New England by ZIP Code

Contract Awards

$0 $200,000,000

$400,000,000 $600,000,000 MASSACHUSETTS $800,000,000 >$1,000,000,000

Source: USASpending.gov. Data extracts as of November 16, 2014.

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 7 Connecticut Summary

Connecticut has a long history of providing the contractors and 81 DoD and DHS grantees located in military with revolutionary advancements in defense Connecticut. manufacturing and its processes. Ship and submarine building and aircraft production have been major Connecticut’s contract awards are concentrated in activities in the state since the turn of the 20th century. one industry sector, transportation manufacturing General Dynamics Electric Boat produced the first equipment (80.7 percent). The three major industry practical submarine design for the U.S. Navy in 1900 as subsectors of this sector include ship building and well as the first nuclear-powered submarine and the first repairing (35.8 percent), aircraft manufacturing ballistic missile submarine. United Technologies Sikorsky (23.3 percent), and aircraft engine and engine parts developed the first production helicopter in 1943, and manufacturing (17.3 percent). United Technologies Pratt and Whitney revolutionized the aircraft industry with its piston engines in 1925 and Three-quarters of Connecticut’s awards by product now provides engines for the advanced F-22 Raptor and and service are ships, small craft, pontoon, docks (40.7 F-35 Lightning II stealth fighters. percent), aircraft/airframe structure components (19.9 percent), and engines and turbines and components Connecticut is the second-largest DoD/DHS contractor (15.3 percent). The largest amount of funding in in New England and ranks eighth in the nation. Over FFY2013 went towards submarines. Electric Boat the last ten years, Connecticut has received an received full funding for two Virginia-class nuclear average of 3.2 percent of defense grants and contracts submarines and advanced funding for four more. The nationally. The defense industry in Connecticut second largest pool of contracts went towards multiple received $10.3 billion in DoD and DHS grants and versions of the Sikorsky Black Hawk helicopter for the contracts in 2013, representing a 13.4 percent increase U.S. Army and Navy and foreign militaries. The third since 2004. Defense and Homeland Security grants largest amount of funding went towards domestic and and contracting are responsible for 79,000 jobs and foreign contracts for Pratt and Whitney’s F117, F119, a total payroll of $6.5 billion in Connecticut. The and F135 jet engines. These engines are used on the overall direct, indirect, and induced economic activity Boeing C-17 Globemaster III airlifter, F-22 Raptor, and generated in Connecticut by contractors and grantees F-35 Lightning II stealth fighters respectively. is $18.8 billion. In 2013, there were 925 DoD and DHS

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 8 DoD and DHS Contractors and Payments to Connecticut, FFY2004–2013 ($M)

Contract Dollars Grant Dollars Federal Fiscal U.S. % Connecticut CT % of All U.S. % Connecticut CT % of All U.S. Connecticut U.S. Connecticut Year Change % Change Contractors Change % Change Grants 2004 $228,618 $9,042 4.0% $6,851 $64 0.9%

2005 $271,557 18.8% $9,250 2.3% 3.4% $13,357 95.0% $81 25.2% 0.6%

2006 $300,749 10.7% $7,874 -14.9% 2.6% $16,601 24.3% $60 -25.1% 0.4%

2007 $331,986 10.4% $8,778 11.5% 2.6% $6,659 -59.9% $48 -19.6% 0.7%

2008 $393,661 18.6% $12,168 38.6% 3.1% $8,999 35.1% $157 223.0% 1.7%

2009 $366,271 -7.0% $12,244 0.6% 3.3% $15,532 72.6% $86 -45.3% 0.6%

2010 $358,575 -2.1% $11,304 -7.7% 3.2% $12,317 -20.7% $75 -11.9% 0.6%

2011 $368,430 2.7% $12,849 13.7% 3.5% $12,214 -0.8% $102 35.4% 0.8%

2012 $355,239 -3.6% $12,879 0.2% 3.6% $11,922 -2.4% $210 105.5% 1.8%

2013 $302,520 -14.8% $10,132 -21.3% 3.3% $14,930 25.2% $191 -8.9% 1.3%

Connecticut DoD and DHS Contracts and Contractors Connecticut DoD and DHS Grants and Grantees Contract awards are down 21 percent since their 2012 peak Grant awards are down 9 percent since their 2012 peak

$14,000 1,400 $250 120

$12,000 1,200 100 $200 $10,000 1,000 80 $150 $8,000 800 60

$6,000 600 $100 Grantees Contractors 40 $4,000 400 Grant Dollars ($M ) Contract Dollars ($M) $50 20 $2,000 200

$0 0 $0 0 006 006 2004 2005 2 2007 2008 2009 2010 2011 2012 2013 2004 2005 2 2007 2008 2009 2010 2011 2012 2013 Federal Fiscal Year Federal Fiscal Year

DHS Contractors DoD Contractors Contract $ DHS Grantees DoD Grantees Grant $

Economic Contributions from Defense Contract Work Performed in Connecticut, FFY2013

Indirect + Induced Contribution Indirect + Induced Contribution Direct Contribution of Work from Work Performed in from Work Performed in Total Contribution Performed in Connecticut Connecticut* New England*

Output $10.2 billion $7.3 billion $1.3 billion $18.8 billion

Employment 32,075 41,348 5,464 78,887

*These indirect and induced contributions to Connecticut result from the purchase of products and services used in defense work performed in other states. Sources: USASpending.gov; data extracts as of November 16, 2014 for contracts and January 2, 2015 for grants; MIG, Inc., IMPLAN System (2013 data).

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 9 Connecticut Summary of DoD and DHS Contracts

Top Defense Industry Sectors in Connecticut, by Dollar Value, FFY2013 Top Defense Products and Services in Connecticut, by Dollar Value, FFY2013 Connecticut’s contract awards are heavily concentrated in the transportation Nuclear submarines, helicopters, jet engines and related maintenance, research equipment manufacturing sector and development are Connecticut’s top products and services

Value of Contracts ($M) Value of Contracts ($M) $0 $2,000 $4,000 $6,000 $8,000 $10,000 $0 $1,000 $2,000 $3,000 $4,000 $5,000

Transportation Equipment Manufacturing $8,179 Ships, Small Craft, Pontoon, Docks $4,122 Professional, Scientific, and Technical Services $1,203 Aircraft/Airframe Structure Components $2,011

Support Activities for Transportation $242 Engines and Turbines and Components $1,553

Fabricated Metal Product Manufacturing $93 Research and Development $988

Computer and Electronic Product Manufacturing $78 Maintain, Repair, Rebuild Equipment $339 Petroleum and Coal Products Manufacturing $48 Aircraft Components/Accessories $262

Machinery Manufacturing $38 Maintain/Repair Shop Equipment $101

Electrical Equipment, Appliance, & Component Manufacturing $35 Electric Wire, Power Distribution Equipment $71

Waste Management and Remediation Services $29 Support Services (Professional, Administrative, Management) $69

Construction of Buildings $27 Electrical/Electronic Equipment Components $54

All Others (Includes N/A) (n=65) $160 All Others (Includes N/A) (n=86) $561

Top Defense Contractors in Connecticut, by Dollar Value, FFY2013 Work Contracted and Work Performed in Connecticut, FFY2004–2013 United Technologies and General Dynamics received 93 percent of Connecticut contractors are typically awarded slightly more than the amount of Connecticut’s total contract awards defense work actually performed in Connecticut

Value of Contracts ($M) Value of Contracts ($M)

$0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000

United Technologies $5,188 2013 $10,132 $10,096 General Dynamics $4,206 2012 Goodrich $59 2011 Merlin Petroleum $40 2010 Awards to Colt Defense $32 Connecticut ear 2009 Contractors Finmeccanica SpA $31 Work Performed Cabrera Services $27 2008 in Connecticut McLaughlin Research $23 2007 Federal Fiscal Y Sonalysts $23 2006

Gartner $18 2005 All Others (Includes N/A) (n=904) $485 2004

Top Grant Programs in Connecticut, by Dollar Value, FFY2013 Top Grant Recipients in Connecticut, by Dollar Value, FFY2013 In FFY2013, Connecticut received $75M in DoD/DHS grants for defense, security Connecticut universities and private contractors received $46M in DoD/DHS grants and research programs in FFY2013

Value of Grants ($M) Value of Grants ($M) $0 $10 $20 $30 $40 $50 $60 $70 $80 $0 $10 $20 $30 $40 $50 $60

Disaster Grants (Presidentially Declared Disasters) $68 Disaster Grants — Multiple Recipients $55

Disaster Housing Assistance Grant $17 Connecticut Department of Emergency Management $30 National Guard Military Operations and Maintenance $15 Yale University $19

Congressionally Directed Assistance $15 State Civil Preparedness $17

Basic, Applied, & Advanced Research in Science and Engineering $14 Connecticut Military Department $16

Air Force Defense Research Sciences Program $10 City of Waterbury $15

Assistance to Firefighters Grant $9 Sikorsky Aircraft $13

Basic Scientific Research $8 United Technologies $7

Military Medical Research and Development $7 University of Connecticut $7

Homeland Security Grant Program $6 Waterbury Fire Department $3

All Others (Includes N/A) (n=26) $22 All Others (Includes N/A) (n=67) $9

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 10 FFY2013 Defense Contract Awards in Connecticut by ZIP Code

Hartford

New Haven

Bridgeport

Contract Awards

$0 $200,000,000

$400,000,000 $600,000,000 $800,000,000 >$1,000,000,000

Source: USASpending.gov. Data extracts as of November 16, 2014.

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 11 Maine Summary

Maine defense contracting is anchored by shipbuilder Maine’s defense contracting is concentrated in two General Dynamics Bath Iron Works. Bath Iron Works industries, transportation equipment manufacturing laid its first hull in 1890 and has since built 245 military (74.8 percent) and ambulatory health care services ships. Bath Iron Works is building two of the most (16.4 percent). Contract awards are also concentrated advanced warships in the world, the Arleigh Burke Class in two product and service codes: ships, small craft, AEGIS Destroyer and the Zumwalt-class destroyer. The pontoons and docks (69.0 percent); and medical Zumwalt generates sufficient power to allow for future services (16.4 percent). deployment of directed energy beam weapons and the electromagnetic railgun that are under development by Contracting activity in Maine is concentrated: two other New England defense contractors. contractors received 92.6 percent of all Maine awards in FFY2013. General Dynamics Bath Iron Works Maine is the third largest DoD/DHS contractor in New received 76.2 percent and Martin’s Point Health Care England and ranks 31st in the U.S. in contracts received. 16.4 percent. The Navy awarded General Dynamics In 2013, there were 279 DoD and DHS contractors and Bath Iron Works a $2.8 billion contract in FFY2013 57 DoD and DHS grantees. Over the last ten years, for four Arleigh Burke Class AEGIS Destroyers, with Maine has received an average of 0.5 percent of an option for a fifth, and is currently constructing defense grants and contracts nationwide. In total, the two Arleigh Burke Destroyers. Bath Iron Works also defense industry in Maine received $1.8 billion in DoD received funds for the three Zumwalt-class destroyers and DHS grants and contracts in 2013, a 19.4 percent under construction (the first launched in FFY2014). increase since 2004. Defense and Homeland Security Also in FFY2013, Martin’s Point Health Care received grants and contracting are responsible for more than contract awards for $288 million to provide healthcare 22,000 jobs and a total payroll of $1.3 billion across services for active-duty family members, and for the state. The overall direct, indirect, and induced military retirees and their families. economic activity generated in Maine by contractors and grantees is $3.8 billion.

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 12 DoD and DHS Contractors and Payments to Maine, FFY2004–2013 ($M)

Contract Dollars Grant Dollars Federal Fiscal U.S. % Maine Maine % of All U.S. % Maine Maine % of U.S. Maine U.S. Maine Year Change % Change Contractors Change % Change All Grants 2004 $228,618 $1,447 0.6% $6,851 $50 0.7%

2005 $271,557 18.8% $1,602 10.7% 0.6% $13,357 95.0% $29 -42.2% 0.2%

2006 $300,749 10.7% $916 -42.8% 0.3% $16,601 24.3% $36 24.8% 0.2%

2007 $331,986 10.4% $1,328 45.0% 0.4% $6,659 -59.9% $54 50.4% 0.8%

2008 $393,661 18.6% $708 -46.7% 0.2% $8,999 35.1% $94 74.3% 1.0%

2009 $366,271 -7.0% $1,276 80.2% 0.3% $15,532 72.6% $144 52.9% 0.9%

2010 $358,575 -2.1% $1,308 2.5% 0.4% $12,317 -20.7% $70 -51.3% 0.6%

2011 $368,430 2.7% $5,011 283.2% 1.4% $12,214 -0.8% $64 -8.0% 0.5%

2012 $355,239 -3.6% $1,556 -68.9% 0.4% $11,922 -2.4% $107 66.6% 0.9%

2013 $302,520 -14.8% $1,758 12.9% 0.6% $14,930 25.2% $28 -73.5% 0.2%

Maine DoD and DHS Contracts and Contractors Maine DoD and DHS Grants and Grantees Contract awards are down 65 percent since their 2011 peak Grant awards are down 80 percent since their 2009 peak

$6,000 600 $160 140

$140 $5,000 500 120

$120 100 $4,000 400 $100 80 $3,000 300 $80 60 Contractors

$60 Grantees $2,000 200 40 Contract Dollars ($M) Grant Dollars ($M ) $40 $1,000 100 $20 20

$0 0 $0 0

2005 2006 2010 2012 006 2004 2007 2008 2009 2011 2013 2004 2005 2 2007 2008 2009 2010 2011 2012 2013 Federal Fiscal Year Federal Fiscal Year

DHS Contractors DoD Contractors Contract $ DHS Grantees DoD Grantees Grant $

Economic Contributions from Defense Contract Work Performed in Maine, FFY2013

Indirect + Induced Contribution Indirect + Induced Contribution Direct Contribution of Work from Work Performed in from Work Performed Elsewhere Total Contribution Performed in Maine Maine* in New England*

Output $2.0 billion $1.3 billion $0.5 billion $3.8 billion

Employment 9,393 10,347 2,437 22,177

*These indirect and induced contributions to Maine result from the purchase of products and services used in defense work performed in other states. Sources: USASpending.gov; data extracts as of November 16, 2014 for contracts and January 2, 2015 for grants; MIG, Inc., IMPLAN System (2013 data).

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 13 Maine Summary of DoD and DHS Contracts

Top Defense Industry Sectors in Maine, by Dollar Value, FFY2013 Top Defense Products and Services in Maine, by Dollar Value, FFY2013 Maine’s defense contracting is highly concentrated as nearly three-quarters of contract Maine’s highest value defense product is Navy destroyers (69.0 percent) purchases go towards the transportation equipment manufacturing industry sector

Value of Contracts ($M) Value of Contracts ($M) $0 $500 $1,000 $1,500 $0 $500 $1,000 $1,500

Transportation Equipment Manufacturing $1,315 Ships, Small Craft, Pontoons, Docks $1,212 Ambulatory Health Care Services $288 Medical Services $288

Professional, Scientific, and Technical Services $43 Modification of Equipment $104

Petroleum and Coal Products Manufacturing $38 Fuels, Lubricants, Oils, Waxes $38

Construction of Buildings $23 Research and Development $28 Heavy and Civil Engineering Construction $19 Construct of Structures/Facilities $27

Specialty Trade Contractors $9 Maintain, Repair, Alter Real Property $18

Apparel Manufacturing $5 Maintain, Repair, Rebuild Equipment $7

Machinery Manufacturing $3 Architectual/Engineering Services $7

Administrative and Support Services $3 Clothing/Individual Equipment, Insignia $6

All Others (Includes N/A) (n=45) $10 All Others (Includes N/A) (n=67) $22

Top Defense Contractors in Maine, by Dollar Value, FFY2013 Work Contracted and Work Performed in Maine, FFY2004–2013 General Dynamics Bath Iron Works is the primary defense contractor in Maine The value of contracts performed in Maine is consistently greater than the amount (76.2 percent) of work contracted to Maine contractors

Value of Contracts ($M) Value of Contracts ($M) $0 $500 $1,000 $1,500 $0 $1,000 $2,000 $3,000 4,000 $5,000 $6,000

General Dynamics $1,340 2013 $1,758 $1,974 Martin's Point Health Care $288 2012 City of Bangor $38 2011 CCI Solutions $20 2010 Awards to Reed and Reed $17 Maine ear 2009 Contractors KMK Construction $11 2008 Work Performed Oak Point Associates $6 in Maine Source for Native American Products $5 2007 Federal Fiscal Y

GrafTech International Ltd. $4 2006

Penobscot Indian Nation Enterprises $3 2005

All Others (Includes N/A) (n=265) $27 2004

Top Grant Programs in Maine, by Dollar Value, FFY2013 Top Grant Recipients in Maine, by Dollar Value, FFY2013 The top DoD/DHS grants were for National Guard programs (contract amendments, Contract amendments, corrections or returned funds may result in negative grant corrections or returned funds may result in negative grant and contract values) and contract values

Value of Grants ($M) Value of Grants ($M) ($5) $0 $5 $10 $15 $20 ($5) $0 $5 $10 $15 $20

National Guard Military Operations and Maintenance $14 State of Maine $19

National Guard ChalleNGe Program $4 Maine Department of Defense $8 Homeland Security Grant Program $4 Multiple Recipients $2

Emergency Management Performance Grants $3 Maine Dept of Inland Fisheries and Wildlife $1

Boating Safety Financial Assistance $1 Portland Fire Department $1

Disaster Grants (Presidentially Declared Disasters) $1 Eastern Maine Development Corporation $0

Staffing for Adequate Fire and Emergency Response (SAFER) $1 Maine Agriculture, Conservation & Forestry $0

Assistance to Firefighters Grant $1 Bigelow Laboratory for Ocean Sciences $0

Basic and Applied Scientific Research $0 Emergency Management Agency, Maine $0

Procurement Technical Assistance For Business Firms $0 Maine Department of Environmental Protection $0

All Others (Includes N/A) (n=17) ($3) All Others (Includes N/A) (n=47) ($3)

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 14 FFY2013 Defense Contract Awards in Maine by ZIP Code

Bangor

Augusta

Lewiston Contract Awards

$0 $200,000,000 $400,000,000 Portland $600,000,000 $800,000,000 >$1,000,000,000

Source: USASpending.gov. Data extracts as of November 16, 2014.

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 15 Massachusetts Summary

Massachusetts has been a defense industry leader generated in Massachusetts by defense contractors since 1777, when George Washington selected and grantees is $20.3 billion. Springfield as the site of the nation’s first arsenal. Massachusetts Institute of Technology and its With several strong sectors, Massachusetts’s defense graduates ushered in the modern defense industry industry is the most diversified in New England. Three more than 100 years later, starting early technology major industry sectors were awarded 77.9 percent of companies that provided solutions to problems faced all contracts in FFY2013. Professional, scientific, and by the military in World Wars I and II. In the 21st century, technical services (31.1 percent) is the largest sector, Massachusetts defense companies and universities and computer and electronic product manufacturing continue to invent and innovate, while its colleges and (24.4 percent) and transportation equipment universities continue to attract top faculty and students manufacturing (22.4 percent) are almost tied as second to fuel future product lines and investment. largest. There are several major products and services in the state including concentrations in the following Massachusetts is the top defense contracting state in products and services categories: in research and New England and ranks sixth in the U.S. in contracts development (24.0 percent of total contract values); received. Massachusetts received 3.7 percent of all support services (professional, administration, and DoD/DHS awards over the last ten years. In FFY2013, management) (11.4 percent); engines, turbines, and there were 2,012 DoD and DHS contractors and 206 components (11.1 percent); communication/detection/ DoD and DHS grantees located in Massachusetts. coherent radiation (10.4 percent); guided missiles (8.3 The Commonwealth received $12.0 billion in DoD percent); and fire control equipment (7.4 percent). and DHS grants and contracts in 2013, a 45.4 percent increase since 2004. Defense and Homeland Security grants and contracting support more than 88,000 jobs and a total payroll of $7.3 billion across the state. The overall direct, indirect, and induced economic activity

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 16 DoD and DHS Contractors and Payments to Massachusetts, FFY2004–2013 ($M)

Contract Dollars Grant Dollars Federal Fiscal U.S. % MA MA % of All U.S. % MA MA % of U.S. MA U.S. MA Year Change % Change Contractors Change % Change All Grants 2004 $228,618 $8,047 3.5% $6,851 $177 2.6%

2005 $271,557 18.8% $9,628 19.6% 3.5% $13,357 95.0% $216 22.2% 1.6%

2006 $300,749 10.7% $10,262 6.6% 3.4% $16,601 24.3% $199 -8.1% 1.2%

2007 $331,986 10.4% $12,391 20.7% 3.7% $6,659 -59.9% $264 32.8% 4.0%

2008 $393,661 18.6% $13,981 12.8% 3.6% $8,999 35.1% $295 11.9% 3.3%

2009 $366,271 -7.0% $15,544 11.2% 4.2% $15,532 72.6% $352 19.3% 2.3%

2010 $358,575 -2.1% $14,161 -8.9% 3.9% $12,317 -20.7% $439 24.7% 3.6%

2011 $368,430 2.7% $13,671 -3.5% 3.7% $12,214 -0.8% $372 -15.3% 3.0%

2012 $355,239 -3.6% $12,460 -8.9% 3.5% $11,922 -2.4% $412 10.6% 3.5%

2013 $302,520 -14.8% $11,544 -7.4% 3.8% $14,930 25.2% $416 1.0% 2.8%

Massachusetts DoD and DHS Contracts and Contractors Massachusetts DoD and DHS Grants and Grantees Contract awards are down 26 percent since their 2009 peak Grant awards are down 5 percent since their 2010 peak

$18,000 3,000 $500 250

$16,000 $450 2,500 $14,000 $400 200 $350 $12,000 2,000 $300 150 $10,000 1,500 $250 $8,000 $200 100 Contractors $6,000 1,000 Grantees $150 Contract Dollars ($M) Grant Dollars ($M ) $4,000 $100 50 500 $2,000 $50

$0 0 $0 0

006 006 2004 2005 2 2007 2008 2009 2010 2011 2012 2013 2004 2005 2 2007 2008 2009 2010 2011 2012 2013 Federal Fiscal Year Federal Fiscal Year

DHS Contractors DoD Contractors Contract $ DHS Grantees DoD Grantees Grant $

Economic Contributions from Defense Contract Work Performed in Massachusetts, FFY2013

Output $11.0 billion $7.9 billion $1.4 billion $20.3 billion

Employment 36,254 46,496 5,705 88,455

*These indirect and induced contributions to Massachusetts result from the purchase of products and services used in defense work performed in other states. Sources: USASpending.gov; data extracts as of November 16, 2014 for contracts and January 2, 2015 for grants; MIG, Inc., IMPLAN System (2013 data).

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 17 Massachusetts Summary of DoD and DHS Contracts

Top Defense Industry Sectors in Massachusetts, by Dollar Value, FFY2013 Top Defense Products and Services in Massachusetts, by Dollar Value, FFY2013 Three-quarters of federal defense spending in Massachusetts goes to three sectors Research and development services is the dominant product in the state but there is a diverse mix overall

Value of Contracts ($M) Value of Contracts ($M) $0 $1,000 $2,000 $3,000 $4,000 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000

Professional, Scientific, and Technical Services $3,591 Research and Development $2,774

Computer and Electronic Product Manufacturing $2,817 Support Services (Prof, Admin, Mgmt) $1,314

Transportation Equipment Manufacturing $2,589 Engines, Turbines and Components $1,281

Fabricated Metal Product Manufacturing $541 Communication/Detection/Coherent Radiation $1,202

Telecommunications $359 Guided Missiles $952

Electrical Equipment, Appliance, & Component Manufacturing $351 Fire Control Equipment $857

Construction of Buildings $166 Ammunition and Explosives $710

Administrative and Support Services $149 Maintain, Repair, Rebuild Equipment $451

Ambulatory Health Care Services $145 Maintain, Repair, Alter Real Property $218

Repair and Maintenance $118 Electrical/Electronic Equipment Components $178

All Others (Includes N/A) (n=79) $717 All Others (Includes N/A) (n=79) $1,606

Top Defense Contractors in Massachusetts, by Dollar Value, FFY2013 Work Contracted and Work Performed in Massachusetts, FFY2004–2013 Raytheon received one-third of all contract awards but an additional 66 contractors The value of contracts to Massachusetts contractors average 13 percent more than received $10 million or more the value of work performed in Massachusetts

Value of Contracts ($M) Value of Contracts ($M)

$0 $1,000 $2,000 $3,000 $4,000 $0 $5,000 $10,000 $15,000 $20,000

Raytheon $3,708 2013 $11,544 $10,734 General Dynamics $1,430 2012 General Electric $1,274 2011 Massachusetts Institute of Technology $808 2010 Awards to Textron $512 Massachusetts ear 2009 Contractors The Charles Stark Draper Laboratory $449 Work Performed MITRE $294 2008 in Massachusetts TASC $285 2007 Federal Fiscal Y L‐3 Communications $149 2006

Brighton Marine Health Center $138 2005 All Others (Includes N/A) (n=1961) $2,496 2004

Top Grant Programs in Massachusetts, by Dollar Value, FFY2013 Top Grant Recipients in Massachusetts, by Dollar Value, FFY2013 Massachusetts received more than $330 million in defense, security Massachusetts colleges and universities received $134 million in DoD/DHS grants and research grants

Value of Grants ($M) Value of Grants ($M) $0 $20 $40 $60 $80 $100 $120 $0 $50 $100 $150

Military Medical Research and Development $105 Massachusetts Institute of Technology $72

National Guard Military Operations and Maintenance $56 Commonwealth of Massachusetts Military Division $46 Basic and Applied Scientific Research $55 Massachusetts Emergency Management Agency $36

Disaster Grants (Presidentially Declared Disasters) $44 President and Fellows of Harvard College $28

Basic Scientific Research $32 Massachusetts Executive Office of Public Safety $21

Research and Technology Development $24 Multiple Individual Recipients $21

Homeland Security Grant Program $22 Massachusetts General Hospital $18

Air Force Defense Research Sciences Program $16 Woods Hole Oceanographic Institution $15

Basic, Applied, & Advanced Research in Science and Engineering $14 Raytheon $13

Assistance to Firefighters Grant $13 Trustees of Boston University $13

All Others (Includes N/A) (n=37) $34 All Others (Includes N/A) (n=194) $133

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 18 FFY2013 Defense Contract Awards in Massachusetts by ZIP Code

MASSACHUSETTS

Worcester Boston

Springfield

Contract Awards

$0 $200,000,000

$400,000,000

$600,000,000

$800,000,000

>$1,000,000,000

Source: USASpending.gov. Data extracts as of November 16, 2014.

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 19 New Hampshire Summary

As in Maine and Connecticut, New Hampshire’s defense New Hampshire’s defense contracting is concentrated industry has been anchored in shipbuilding. Established in three industries: electronic product manufacturing by the federal government in 1800, the Portsmouth (34.9 percent); professional, scientific, and technical Naval Shipyard built, repaired, and overhauled ships until services (27.4 percent); and transportation equipment 1971 when it took on new mission to overhaul, repair, manufacturing (17.5 percent). Contract awards are and refuel nuclear-powered submarines. BAE Electronics concentrated in three major product and service and Systems Integration is now New Hampshire’s categories, communication/detection/coherent dominant defense contractor. radiation (36.4 percent); automated data processing equipment/software/supplies, and equipment (11.7 New Hampshire is New England’s fourth largest percent); and research and development (10.7 defense contractor by dollars awarded and ranks percent). Contracting activity in the state is fairly thirty-fourth in the U.S. in contracts received. In 2013, concentrated with three contractors receiving 81.7 there were 470 DoD and DHS contractors and 43 DoD percent of all New Hampshire awards in FFY2013. BAE and DHS grantees. These contractors have received Systems received 59.8 percent, Red River Computer an average of 0.4 percent of all DoD/DHS contracts 12.4 percent, and L-3 Communications 9.5 percent. over the last ten years. In FFY2013, New Hampshire’s 513 contractors received $1.6 billion in DoD/DHS All three companies provided technology-based grants and contracts, a 102 percent increase since manufactured products. BAE received contracts of 2004. Defense and Homeland Security grants and more than $400 million for electronic countermeasures contracting are responsible for more than 16,500 jobs systems and components; Red River Computer and a total payroll of $1.1 billion across the state. The received $175 million to supply computers, software, overall direct, indirect, and induced economic activity and supplies; and L-3 Communications received almost generated in New Hampshire by contractors and $100 million for night-vision equipment. grantees is $3.1 billion.

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 20 DoD and DHS Contractors and Payments to New Hampshire, FFY2004–2013 ($M)

Contract Dollars Grant Dollars Federal Fiscal U.S. % NH NH % of All U.S. % NH NH % of U.S. NH U.S. NH Year Change % Change Contractors Change % Change All Grants 2004 $228,618 $772 0.3% $6,851 $32 0.5%

2005 $271,557 18.8% $1,161 50.3% 0.4% $13,357 95.0% $33 1.5% 0.2%

2006 $300,749 10.7% $1,248 7.5% 0.4% $16,601 24.3% $77 133.8% 0.5%

2007 $331,986 10.4% $1,552 24.4% 0.5% $6,659 -59.9% $47 -38.2% 0.7%

2008 $393,661 18.6% $1,725 11.1% 0.4% $8,999 35.1% $51 6.9% 0.6%

2009 $366,271 -7.0% $1,664 -3.5% 0.5% $15,532 72.6% $71 39.5% 0.5%

2010 $358,575 -2.1% $1,101 -33.8% 0.3% $12,317 -20.7% $62 -12.1% 0.5%

2011 $368,430 2.7% $1,260 14.5% 0.3% $12,214 -0.8% $57 -8.9% 0.5%

2012 $355,239 -3.6% $1,667 32.3% 0.5% $11,922 -2.4% $73 29.8% 0.6%

2013 $302,520 -14.8% $1,557 -6.6% 0.5% $14,930 25.2% $68 -7.8% 0.5%

New Hampshire DoD and DHS Contracts and Contractors New Hampshire DoD and DHS Grants and Grantees Contract awards are down 10 percent since their 2008 peak Grant awards are down 12 percent since their 2006 peak

$2,000 700 $90 90

$1,800 $80 80 600 $1,600 $70 70 $1,400 500 $60 60 $1,200 400 $50 50 $1,000 300 $40 40 $800 Grantees Contractors $30 30 $600 200 Grant Dollars ($M ) Contract Dollars ($M) $20 20 $400 100 $10 10 $200

$0 0 $0 0 006 006 2004 2005 2 2007 2008 2009 2010 2011 2012 2013 2004 2005 2 2007 2008 2009 2010 2011 2012 2013 Federal Fiscal Year Federal Fiscal Year

DHS Contractors DoD Contractors Contract $ DHS Grantees DoD Grantees Grant $

Economic Contributions from Defense Contract Work Performed in New Hampshire, FFY2013

Output $1.5 billion $1.1 billion $0.4 billion $3.1 billion

Employment 6,639 8,017 1,879 16,535

*These indirect and induced contributions to New Hampshire result from the purchase of products and services used in defense work performed in other states. Sources: USASpending.gov; data extracts as of November 16, 2014 for contracts and January 2, 2015 for grants; MIG, Inc., IMPLAN System (2013 data).

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 21 New Hampshire Summary of DoD and DHS Contracts

Top Defense Industry Sectors in New Hampshire, by Dollar Value, FFY2013 Top Defense Products and Services in New Hampshire, by Dollar Value, FFY2013 Three industry sectors in the state received four-fifths of all contracts One-third of contract awards were for electronic countermeasures and night-vision equipment

Value of Contracts ($M) Value of Contracts ($M) $0 $100 $200 $300 $400 $500 $600 $0 $100 $200 $300 $400 $500 $600

Computer and Electronic Product Manufacturing $543 Communication/Detection/Coherent Radiation $567

Professional, Scientific, and Technical Services $427 Automated Data Processing Equipment/Software/Supplies & Equipment $182

Transportation Equipment Manufacturing $273 Research and Development $166

Miscellaneous Manufacturing $68 Support Services (Professional, Administrative, Management) $108

Machinery Manufacturing $68 Aircraft Components/Accessories $95

Electrical Equipment, Appliance, & Component Manufacturing $34 Fire Control Equipment $78

Fabricated Metal Product Manufacturing $29 Maintain/Repair Shop Equipment $62

Warehousing and Storage $20 Guided Missiles $46

Repair and Maintenance $18 Electrical/Electronic Equipment Components $33

Construction of Buildings $16 Maintain, Repair, Rebuild Equipment $22

All Others (Includes N/A) (n=50) $62 All Others (Includes N/A) (n=75) $198

Top Defense Contractors in New Hampshire, by Dollar Value, FFY2013 Work Contracted and Work Performed in New Hampshire, FFY2004–2013 BAE Electronics and Systems Integration received 60 percent of all contract awards Over the last ten years, New Hampshire received four percent more work than was performed here

Value of Contracts ($M) Value of Contracts ($M)

$0 $200 $400 $600 $800 $1,000 $0 $500 $1,000 $1,500 $2,000

BAE Systems $932 2013 $1,557 $1,492 Red River Computer $193 2012 L‐3 Communications $148 2011 Elbit Systems $26 2010 Awards to Creare $19 New Hampshire ear 2009 Contractors Fitzhenry‐Guptill $19

DCI $16 2008 Work Performed in New Hampshire The Timken Company $12 2007 Federal Fiscal Y Cobham $10 2006

Minebea $10 2005 All Others (Includes N/A) (n=453) $172 2004

Top Grant Programs in New Hampshire, by Dollar Value, FFY2013 Top Grant Recipients in New Hampshire, by Dollar Value, FFY2013 New Hampshire received $46 million in defense, security and research grants The public sector received 62 percent of all DoD/DHS grants awarded to New Hampshire

Value of Grants ($M) Value of Grants ($M) $0 $5 $10 $15 $20 $25 $0 $50 $100 $150

National Guard Military Operations and Maintenance $23 State of New Hampshire $25

Disaster Grants (Presidentially Declared Disasters) $10 New Hampshire Department of Safety $11 Basic Scientific Research $9 BAE $8

Emergency Management Performance Grants $7 Multiple Recipients $6

Air Force Defense Research Sciences Program $5 Civil Defense Agency $5

Homeland Security Grant Program $4 Trustees of Dartmouth College $5

Military Construction, National Guard $2 Nanocomp Technologies $4

Basic and Applied Scientific Research $2 Laconia Fire Department $1

Military Medical Research and Development $2 University of Notre Dame Du Lac $0

Hazard Mitigation Grant $2 University System of New Hampshire $0

All Others (Includes N/A) (n=17) $4 All Others (Includes N/A) (n=29) $2

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 22 FFY2013 Defense Contract Awards in New Hampshire by ZIP Code

Concord Contract Awards

Portsmouth $0 Manchester $200,000,000 $400,000,000 $600,000,000 $800,000,000 >$1,000,000,000

Source: USASpending.gov. Data extracts as of November 16, 2014.

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 23 Rhode Island Summary

Newport, Rhode Island has been a center of research grants and contracts, a 44 percent increase since and development for undersea warfare since 1869, 2004. Defense and Homeland Security grants and when the U.S. Navy established the U.S. Naval Torpedo contracting are responsible for almost 8,700 jobs and Station on Goat Island in Newport Harbor. The Torpedo a total payroll of $540 million across the state. The Station has since evolved through Navy reorganization overall direct, indirect and induced economic activity and realignment to become the Naval Undersea generated in Rhode Island by contractors and grantees Warfare Center (NUWC). NUWC performs research, is $1.5 billion. development, and in-service engineering for torpedoes and other tactical submarine-launched weapons; anti- Rhode Island defense contracting is concentrated submarine warfare mobile targets; countermeasures; in three industries, computer and electronic unmanned underwater vehicles; sonar and underwater product manufacturing (47.8 percent); professional, fire control; and a wide range of submarine auxiliary scientific, and technical services (17.3 percent); components, such as periscopes and antennas. and transportation equipment manufacturing (12.8 percent). More than half of Rhode Island’s contract Rhode Island is New England’s smallest defense awards are in two product and service categories, contractor by dollars awarded and ranks thirty-fourth in communications/detection/coherent radiation the U.S. in contracts received. In FFY2013, there were (39.0 percent) and support services (professional, 308 DoD and DHS contractors and 47 DoD and DHS administrative, management) (13.3 percent). Raytheon grantees located in Rhode Island. These contractors received almost two-thirds of all Rhode Island DoD/ received an average of 0.1 percent of all DoD/DHS DHS contract awards for various sonar equipment and contracts over the last ten years. In FFY2013, its torpedoes for the U.S. Navy. 355 contractors received $519 million in DoD/DHS

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 24 DoD and DHS Contractors and Payments to Rhode Island, FFY2004–2013 ($M)

Contract Dollars Grant Dollars Federal Fiscal U.S. % RI RI % of All U.S. % RI RI % of U.S. RI U.S. RI Year Change % Change Contractors Change % Change All Grants 2004 $228,618 $345 0.2% $6,851 $16 0.2%

2005 $271,557 18.8% $443 28.3% 0.2% $13,357 95.0% $26 59.5% 0.2%

2006 $300,749 10.7% $456 3.0% 0.2% $16,601 24.3% $18 -30.4% 0.1%

2007 $331,986 10.4% $410 -10.1% 0.1% $6,659 -59.9% $42 131.9% 0.6%

2008 $393,661 18.6% $484 18.2% 0.1% $8,999 35.1% $53 25.0% 0.6%

2009 $366,271 -7.0% $540 11.4% 0.1% $15,532 72.6% $44 -15.5% 0.3%

2010 $358,575 -2.1% $453 -16.0% 0.1% $12,317 -20.7% $81 81.8% 0.7%

2011 $368,430 2.7% $469 3.5% 0.1% $12,214 -0.8% $49 -38.9% 0.4%

2012 $355,239 -3.6% $488 4.0% 0.1% $11,922 -2.4% $43 -12.3% 0.4%

2013 $302,520 -14.8% $449 -8.0% 0.1% $14,930 25.2% $70 61.2% 0.5%

Rhode Island DoD and DHS Contracts and Contractors Rhode Island DoD and DHS Grants and Grantees Contract awards are down 17 percent since their 2009 peak Grant awards are down 14 percent since their 2010 peak

$600 500 $90 60

450 $80 $500 50 400 $70 350 $400 $60 40 300 $50 $300 250 30 $40 200 Grantees Contractors $200 $30 20 150 Grant Dollars ($M ) Contract Dollars ($M) 100 $20 $100 10 50 $10

$0 0 $0 0 6 006 2004 2005 2 2007 2008 2009 2010 2011 2012 2013 2004 2005 200 2007 2008 2009 2010 2011 2012 2013 Federal Fiscal Year Federal Fiscal Year

DHS Contractors DoD Contractors Contract $ DHS Grantees DoD Grantees Grant $

Economic Contributions from Defense Contract Work Performed in Rhode Island, FFY2013

Output $0.7 billion $0.5 billion $0.2 billion $1.5 billion

Employment 3,888 3,932 836 8,656

*These indirect and induced contributions to Rhode Island result from the purchase of products and services used in defense work performed in other states. Sources: USASpending.gov; data extracts as of November 16, 2014 for contracts and January 2, 2015 for grants; MIG, Inc., IMPLAN System (2013 data).

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 25 Rhode Island Summary of DoD and DHS Contracts

Top Defense Industry Sectors in Rhode Island, by Dollar Value, FFY2013 Top Defense Products and Services in Rhode Island, by Dollar Value, FFY2013 Three-quarters of Rhode Island’s defense contracts are in three industry sectors Thirty-nine percent of Rhode Island’s contract awards went towards the purchase of sonar equipment

Value of Contracts ($M) Value of Contracts ($M) $0 $50 $100 $150 $200 $250 $0 $50 $100 $150 $200

Computer and Electronic Product Manufacturing $215 Communications/Detection/Coherent Radiation $175

Professional, Scientific, and Technical Services $78 Support Services (Prof, Admin, Mgmt) $60 Transportation Equipment Manufacturing $57 Aircraft Components/Accessories $38

Fabricated Metal Product Manufacturing $32 Weapons $30

Construction of Buildings $11 Maintain, Repair, Rebuild Equipment $26 Heavy and Civil Engineering Construction $7 Research and Development $26

Electrical Equipment, Appliance, & Component Manufacturing $6 Electrical/Electronic Equipment Components $17

Repair and Maintenance $5 Construction of Structures/Facilities $10

Textile Product Mills $5 Maintain, Repair, Alter Real Property $10

Specialty Trade Contractors $4 Clothing/Individual Equipment, Insignia $9

All Others (Includes N/A) (n=48) $29 All Others (Includes N/A) (n=71) $50

Top Defense Contractors in Rhode Island, by Dollar Value, FFY2013 Work Contracted and Work Performed in Rhode Island, FFY2004–2013 Raytheon received almost two-thirds of all Rhode Island’s defense contracts Over the last ten years, 40 percent more defense contract work has been performed in Rhode Island than was awarded to businesses located there

Value of Contracts ($M) Value of Contracts ($M)

$0 $50 $100 $150 $200 $250 $300 $0 $200 $400 $600 $800 $1,000 Raytheon $281 2013 $449 Systems Engineering Associates $57 $689 2012 Maron Construction $11

J. Goodison $10 2011 Awards to Systems Resource Management $9 2010 Rhode Island ear Ira Green $5 2009 Contractors Network and Simulation Technologies $4 2008 Work Performed Ametek $4 in Rhode Island 2007 Hyman Brickle & Son $4 Federal Fiscal Y 2006 Seacon Phoenix $4 2005 All Others (Includes N/A) (n=296) $59 2004

Top Grant Programs in Rhode Island, by Dollar Value, FFY2013 Top Grant Recipients in Rhode Island, by Dollar Value, FFY2013 Rhode Island received more than $36 million in DoD/DHS grants for defense, The Rhode Island National Guard was the largest DoD/DHS grant recipient security, and research and development

Value of Grants ($M) Value of Grants ($M) $0 $5 $10 $15 $20 $0 $5 $10 $15 $20

National Guard Military Operations and Maintenance $18 Rhode Island Office of Adjutant General $18

Disaster Grants (Presidentially Declared Disasters) $13 Rhode Island Emergency Management Agency $11 Assistance to Firefighters Grant $13 Multiple Recipients $11

Air Force Defense Research Sciences Program $6 Brown University $10

Basic and Applied Scientific Research $5 Pawtucket Fire Department $5 Homeland Security Grant Program $3 Cranston Fire Department $4

Emergency Management Performance Grants $3 University of Rhode Island $2

Hazard Mitigation Grant $2 T.E.A.M., Inc. $1

Basic Scientific Research $2 Rhode Island Association of Fire Chiefs $1

Boating Safety Financial Assistance $1 Rhode Island Deptartment of Environmental Management $1

All Others (Includes N/A) (n=25) $2 All Others (Includes N/A) (n=25) $5

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 26 FFY2013 Defense Contract Awards in Rhode Island by ZIP Code

Providence

Newport

Contract Awards

$0 $200,000,000 $400,000,000 $600,000,000 $800,000,000 >$1,000,000,000

Source: USASpending.gov. Data extracts as of November 16, 2014.

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 27 Vermont Summary

Vermont’s Robbins and Lawrence Armory in Windsor, Security grants and contracting are responsible for now a museum, once produced thousands of rifles for almost 3,500 jobs and a total payroll of $205 million the Union Army using a new manufacturing process across the state. The overall direct, indirect, and induced where interchangeable parts were made by machines economic activity generated in Vermont by contractors instead of by hand. Replacement parts no longer and grantees is $569 million. had to be custom-made and fitted, a manufacturing process adopted by other industries that led to the The majority of Vermont defense contracting (75.4 mass production of goods. Vermont is also home to percent) awards went to the fabricated metal product Norwich University, the oldest private military college manufacturing sector. Contracting awards by product in the U.S. and the birthplace of ROTC, the Reserve and service category were more diverse. Three-quarters Officers’ Training Corps. of Vermont’s contracts in FFY2013 were in three categories: ammunition and explosives (39.3 percent); Vermont is New England’s fifth largest defense weapons (22.4 percent); and machine gun barrel kits contractor by value of contract awards and ranks forty- (12.8 percent). General Dynamics dominated Vermont’s seventh in the U.S. In FFY2013, there were 233 DoD defense contracting in FFY2013, when it received five- and DHS contractors and 33 DoD and DHS grantees sixths (83.4 percent) of the state’s awards for a total located in Vermont. When compared to states with of $416 million. Only fourteen Vermont contractors major defense industry involvement, Vermont’s activity received more than $1 million in FFY2013. overall is not large: its contractors received an average of 0.2 percent of all DoD/DHS contracts over the last ten General Dynamics received large contracts for Hydra years. However, in FFY2013, its 266 contractors received Rockets; machine gun barrel kits; Aegis gun and $628 million in DoD/DHS grants and contracts, a 38 guided-missile directors; director controllers; and percent increase since 2004. Defense and Homeland associated material and engineering services.

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 28 DoD and DHS Contractors and Payments to Vermont, FFY2004–2013 ($M)

Contract Dollars Grant Dollars Federal Fiscal U.S. % VT VT % of All U.S. % VT VT % of U.S. VT U.S. VT Year Change % Change Contractors Change % Change All Grants 2004 $228,618 $436 0.2% $6,851 $20 0.3%

2005 $271,557 18.8% $630 44.3% 0.2% $13,357 95.0% $17 -12.9% 0.1%

2006 $300,749 10.7% $1,026 63.0% 0.3% $16,601 24.3% $22 27.5% 0.1%

2007 $331,986 10.4% $1,085 5.7% 0.3% $6,659 -59.9% $25 14.6% 0.4%

2008 $393,661 18.6% $735 -32.2% 0.2% $8,999 35.1% $35 39.6% 0.4%

2009 $366,271 -7.0% $821 11.6% 0.2% $15,532 72.6% $36 1.9% 0.2%

2010 $358,575 -2.1% $829 1.1% 0.2% $12,317 -20.7% $19 -48.6% 0.2%

2011 $368,430 2.7% $625 -24.6% 0.2% $12,214 -0.8% $33 76.1% 0.3%

2012 $355,239 -3.6% $573 -8.4% 0.2% $11,922 -2.4% $186 469.0% 1.6%

2013 $302,520 -14.8% $499 -12.9% 0.2% $14,930 25.2% $129 -30.7% 0.9%

Vermont DoD and DHS Contracts and Contractors Vermont DoD and DHS Grants and Grantees Contract awards are down 54 percent since their 2007 peak Grant awards climbed significantly in 2012 but declined 31 percent in 2013

$1,200 350 $200 80

$180 70 $1,000 300 $160 60 250 $140 $800 50 $120 200 $600 $100 40 150 $80 Contractors 30 Grantees $400 100 $60 Contract Dollars ($M) Grant Dollars ($M ) 20 $40 $200 50 $20 10

$0 0 $0 0 6 006 2004 2005 2 2007 2008 2009 2010 2011 2012 2013 2004 2005 200 2007 2008 2009 2010 2011 2012 2013 Federal Fiscal Year Federal Fiscal Year

DHS Contractors DoD Contractors Contract $ DHS Grantees DoD Grantees Grant $

Economic Contributions from Defense Contract Work Performed in Vermont, FFY2013

Output $0.3 billion $0.2 billion $0.1 billion $0.6 billion

Employment 1,813 1,276 380 3,470

*These indirect and induced contributions to Vermont result from the purchase of products and services used in defense work performed in other states. Sources: USASpending.gov; data extracts as of November 16, 2014 for contracts and January 2, 2015 for grants; MIG, Inc., IMPLAN System (2013 data).

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 29 Vermont Summary of DoD and DHS Contracts

Top Defense Industry Sectors in Vermont, by Dollar Value, FFY2013 Top Defense Products and Services in Vermont, by Dollar Value, FFY2013 Seventy-five percent of awards were to the fabricated metal product manufacturing Vermont provides large amounts of small rockets to the military industry sector

Value of Contracts ($M) Value of Contracts ($M) $0 $100 $200 $300 $400 $0 $50 $100 $150 $200 $250

Fabricated Metal Product Manufacturing $376 Ammunition and Explosives $196

Computer and Electronic Product Manufacturing $54 Weapons $112

Transportation Equipment Manufacturing $29 Gun barrel kits $64

Furniture and Related Product Manufacturing $12 Fire Control Equipment $36

Professional, Scientific, and Technical Services $8 Aircraft Components/Accessories $23

Machinery Manufacturing $7 Aircraft/Airframe Structure Components $10

Construction of Buildings $3 Household/Commercial Furnishings/Appliance $9

Electrical Equipment, Appliance, and Component Manufacturing $2 Instruments and Laboratory Equipment $7

Educational Services $2 Research and Development $5

Merchant Wholesalers, Durable Goods $1 Mechanical Power Transmission Equipment $4

All Others (Includes N/A) (n=41) $5 All Others (Includes N/A) (n=66) $33

Top Defense Contractors in Vermont, by Dollar Value, FFY2013 Work Contracted and Work Performed in Vermont, FFY2004–2013 General Dynamics received 83 percent of all DoD/DHS contracts Over the last ten years, 37 percent more work has been contracted in Vermont than was performed there

Value of Contracts ($M) Value of Contracts ($M) $0 $100 $200 $300 $400 $500 $0 $200 $400 $600 $800 $1,000 $1,200

General Dynamics $416 2013 $499 $288 Goodrich Corporation $23 2012 Simmonds Precision Products $16 2011 New England Woodcraft $11 2010 Awards to Preci-Manufacturing $4 Vermont ear 2009 Contractors Vermont Aerospace Manufacturing $3 Work Performed Revision Military $2 2008 in Vermont Norwich University Applied Research Institutes $2 2007 Federal Fiscal Y Small Dog Electronics $2 2006

Plasan North America $2 2005 All Others (Includes N/A) (n=216) $18 2004

Top Grant Programs in Vermont, by Dollar Value, FFY2013 Top Grant Recipients in Vermont, by Dollar Value, FFY2013 Vermont received more than $29 million in DoD/DHS grants for defense, security The Vermont National Guard received $21.1 million in DoD grants in FFY2013 and research and development

Value of Grants ($M) Value of Grants ($M) $0 $10 $20 $30 $40 $50 $0 $10 $20 $30 $40 $50 $60

Federal Disaster Assistance $44 State of Vermont Transportation $48

Disaster Grants (Presidentially Declared Disasters) $39 Vermont Department of Public Safety $24 National Guard Military Operations and Maintenance $21 Vermont Department of Military $21

Hazard Mitigation Grant $12 Multiple Recipients $20

Homeland Security Grant Program $4 Division of Emergency Services $8

Emergency Management Performance Grants $3 University of Vermont and State Agricultural $2

Basic, Applied, & Advanced Research in Science and Engineering $2 Blue Mountain Union School District $2

Air Force Defense Research Sciences Program $1 University of Vermont $1

Basic Scientific Research $1 St. Johnsbury Fire Department $0.5

Boating Safety Financial Assistance $1 Vermont Economic Housing and Community Development $0.4

All Others (Includes N/A) (n=15) $3 All Others (Includes N/A) (n=18) $0.5

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 30 FFY2013 Defense Contract Awards in Vermont by ZIP Code

Burlington

Montpellier

Rutland

Contract Awards

$0 $200,000,000

$400,000,000

$600,000,000

$800,000,000

>$1,000,000,000

Source: USASpending.gov. Data extracts as of November 16, 2014.

The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 31 The New England Defense Industry: Current Profile and Economic Significance, FFY2013 | 32