North Carolina Military Business

Center

Military Market and Business Tools

August 9, 2011

Military Impact

• Total DoD annual impact in NC: $23.4 billion

• Second largest sector of economy, 7% of GDP

• 4th highest military presence in nation– 6 major installations

– 116,073 active duty personnel (FY2009)

– 16,000 annual military personnel transitions

• Growth: BRAC and “Grow the Force”

Federal ProcurementFY2009

• Procurement, DoD: $327 billion

• Procurement, DoD in NC (86 Counties):

• Procurement, federal in NC (98 Counties):– $5.40 billion (10,796 Contractors)

$2.69$2.97

$3.64$4.01

$0.00$0.50$1.00$1.50$2.00$2.50$3.00$3.50$4.00$4.50

FY 2006 FY 2007 FY 2008 FY 2009

Dol

lar V

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in B

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SituationDefense Procurement

1. California ($41.7)

2. Virginia ($38.7)

3. Texas ($22.5)

4. Massachusetts ($13.3)

5. Florida ($13.2)

6. Maryland ($12.9)

7. Pennsylvania ($12.3)

8. Arizona ($12.0)

9. Connecticut ($11.8)

10. Missouri ($10.4)

26. North Carolina ($4.0 Billion)

FY09, Dollars in Billions

DoD Procurement in North Carolina

2008 2009 Increase

Army $1,484 $1,739 $255

Navy $1,209 $1,326 $117

USAF $265 $308 $43

DLA $388 $329 - $59

USSOCOM $104 $170 $66

Total DoD $3,647 $4,012 $365

Dollars in Millions

Mission & Goals

MissionTo leverage military and other federal business opportunities for economic development and quality of life in North Carolina

Goals1 - Increase federal business for NC companies

2 - Integrate military/families into workforce

3 - Support defense-related recruitment

NCMBC Programs

NCMBC

TechnologyResourcesProgram

Employment Program

Communications& Outreach

Program

Military Sustainment

Program

Strategic Initiatives Program

Business Development,

Training & AssistanceProgram

Six aggressive, focused programs designed to engage & train businesses & maximize job creation

NCMBC Programs - Business Development

Awareness of Market

Recruitmentto Market

Engagement in Market

Connection to Opportunities

Solicitation Analysis/Decision

Proposal Submission

Win Contract

ExecuteContract

NCMBC Business Development, Training and

Assistance Program

Business DevelopmentTeam

•Create awareness of opportunities, recruit NC firms

•Identify current opportunities, notify NC firms

•Assist firms with solicitations, quotes, proposals

•Pre-position, develop sub-contract opportunities

CY2010 221 Contracts $369.1 - $1,528.8 million

CY2005-2010 1,049 Contracts $2,534 - $5,465 million

As of: 14 JAN 2011

DoD Procurement & NCMBC Business Developers

DurhamAlamanceAlexander

Alleghany

Anson

Ashe

Avery

Beaufort

Bertie

Bladen

Brunswick

Buncombe

Burke

Cabarrus

Caldwell

Caswell

Catawba Chatham

CherokeeClay

Cleveland

Columbus

Craven

DareDavidson

Davie

Duplin

Edgecombe

Forsyth Franklin

Gaston

Gates

Graham

Granville

Greene

Halifax

Harnett

Haywood

Henderson

Hertford

Hoke

Hyde

Iredell

Jackson

Jones

Lee

Lenoir

Lincoln

McDowell

Madison Martin

Mitchell

Montgomery

Nash

New

Hanover

Northampton

Orange

Pamlico

Pender

Person

Pitt

Polk

Randolph

Richmond

Robeson

Rockingham

Rowan

Rutherford

Sampson

Scotland

Stanly

StokesSurry

Swain

Tyrrell

Union

Vance

Wake

Warren

Washington

Watauga Wilkes

Wilson

Yadkin

Yancey

Pasquotank

Chowan

Greater than $50 million

$20 million to $50 million

$10 million to $19 million

Less than $10 millionData as of FY2009

Transylvania

Macon

Moore

Mecklenburg

Guilford

Cumberland

Johnston

Wayne

Onslow

Carteret

MatchForce

• Matches businesses to federal opportunities

• Matches prime contractors to NC subcontractors

• Matches businesses to NC job seekers

• Businesses won >$561 million, 2006-10 contracts

• Currently on MatchForce:

15,734 NC Businesses 35,479 Individuals

5,416 Contract Opportunities 1,336 Job Opportunities

As of: 13 JAN 2011

Resources and Training

• Resource matrices: overcome obstacles (ncmbc.us)– Current: financing, staffing, shipping, proposal matrices

– Developing: legal, accounting matrices

• Market intelligence: future contracts (ncmbc.us)– Current: military construction, IT, textiles

– Developing: logistics, “green,” training, manufacturing

• Training: industry-specific and regional events– Military construction, furniture, transportation, IT, financing,

textiles

Military Workforce Initiatives

• Job matching portal (MatchForce.org)

• Transitioning military database (ncmbc.us)

• “I Hire Military” initiative– www.IHireMilitary.org

– focused on businesses (4-county launch)

• “StayNC” initiative (not yet launched)– focused on military personnel to “StayNC”

Priority Initiatives2010-2011

• Military construction ($5-7 billion) program

• Future opportunities program (Const, IT, Log, Green)

• Subcontracting program: with major primes

• Expand, promote business resources, training

• Support recruitment of defense contractors

• Workforce initiatives (I Hire Military, StayNC)

• Leverage base growth opportunities

Performance Outcomes

• Contracts sourced, BD Team to NC businesses: 11,494 (12/31/10)

• Connections made to NC businesses: 2.814 million (12/31/10)

• Contracts won by NC businesses: 1,049 (12/31/10)

• Value of contracts won: $2.53 - $5.46 billion

• Expenditures by NCMBC, 2005-2010: $6.6 million (12/31/10)

• ROI (contract min value to NCMBC expenditures): 381:1

• Corporate income tax on min. contracts won (6.9%): $174 million

• ROI (corporate income tax to NCMBC expenditures): 26:1

• Jobs, employees engaged ($30,000 per job): up to 84,000

As of: 13 JAN 2011

The Future: Opportunity

• Federal market is booming (high demand)

• Growth at bases in North Carolina

• Defense spending trend down may still favor NC

• Small business opportunities: 23% goal

• Regulatory environment: FAR levels playing field

• Transitioning military & spouse workforce

• Great business capacity in NC (high supply)

The Future: Challenges

• Decline in defense budgets nationally

• Contracting procedural environment

• Consolidation among defense contractors

• Market intelligence, positioning for future wins

• High competition – companies surging to market (and NCMBC services)

What We Need to Do -Together

• Engage existing North Carolina businesses

• Engage DoD prime contractors (subcontracting)

• Expand market intelligence (future contracts)

• Recruit/grow defense prime & subcontractors

• Engage federal buying offices to BuyNC!

• Sustain focus on growing military economy

Success Impact

Federal Market• Booming engine for job creation

• Companies surging to market & NCMBC services

Every $100 million in DoD Contracts:• Up to 3,000 jobs created, retained ($30,000/job)

• $7 million in State corporate income tax; other revenue

• Improved services and quality of life for ALL in NC

Contact Information

• Scott Dorney, Executive Director, 910-678-0190, dorneys@ncmbc.us

• Bill Greuling, Business Development Manager, 910-578-2626, greulingb@ncmbc.us

• Carolyn Bunting, MatchForce Administrator, 252-222-6378, buntingc@ncmbc.us

• Courtney Locus, Communications Specialist, 910-678-0193, locusc@ncmbc.us