leading innovation - ctc

Annual Report July 1, 2013 – June 30, 2014

Leading Innovation through Engineering, Technology and Services

Dear Colleagues and Friends,

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This annual report highlights the work and events that shaped Concurrent Technologies Corporation (CTC) in fiscal year 2014 (FY14). We enjoyed excellent technical achievements, the implementation of a new organizational structure to better meet the needs of our clients and the overall marketplace through an enhanced alignment of our capabilities and employees, and success with contract awards, even though FY14 was the most challenging year in our Company’s 27-year history.

Nationally, analysts characterize FY14 as turbulent and uncertain due to the roller-coaster ride of federal budget cuts, sequestration, and a government shutdown. Prime contracts issued by the federal government were the lowest dollar amount since 2009, and this is the third consecutive year in which federal contracting dollars declined. Due to the difficulties and unpredictable dynamics of the federal marketplace, CTC’s performance, like that of other government contractors, was below plan.

Transforming, Realigning and Revitalizing Our new organizational structure was implemented, and it is designed to bring us even closer to our clients. We have aligned our work and working relationships around three focus areas: Engineering, Technology and Services.

Our goals are to simplify operations, eliminate the potential for barriers and silos, and reinforce teamwork. Going forward, this organizational structure will create enhanced value through business development, effective teamwork, and an increased effort on Research, Development, Test and Evaluation (RDT&E) business. The teams created within these three focus areas will pursue specific activities with deeper knowledge leading to both increased competitiveness and agility.

Responding to Unprecedented Federal Changes In response to the fiscal challenges imposed by shrinking federal budgets and increased competition, our Company restructured, reduced the number of employees, and became laser-focused on client service. The decision to reduce the workforce is never easy, but these actions were necessary to strengthen CTC’s future and move the Company forward toward sustained growth.

Restructuring, while transparent to our clients, has already proven valuable. In the third and fourth quarters of FY14, CTC experienced funded awards growth as compared to the previous year.

It is not enough just to meet mission requirements. CTC remains determined to continue to perform beyond expectations because of the competitive marketplace and because we want to maintain the kind of long-term business relationships that have been our hallmark.

Howard M. Picking, III, Chairman, CTC Board of Directors (left)

and Edward J. Sheehan, Jr., President and Chief Executive Officer

Our new organizational

structure is designed to bring us even

closer to our clients. We have aligned

our work and working relationships

around three focus areas: Engineering,

Technology and Services.

CTC ANNUAL REPORT Fiscal Year 2014

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Edward J. Sheehan, Jr. President and Chief Executive Officer

Howard M. Picking, III Chairman, CTC Board of Directors

Senior Executive Leadership Team

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Standing left to right

Margaret DiVirgilio, Senior Vice President, Chief Financial Officer

Jerry R. Hudson, Senior Vice President, Engineering Group

Vicki A. Barbur, Ph.D., Senior Vice President, Chief Technical Officer

Michael S. Knapp, Ph.D., Vice President, Intelligence Community Program Development

Seated left to right

Edward J. Sheehan, Jr., President and Chief Executive Officer

George W. Appley, Senior Vice President, Technology Group

David A. Schario, Vice President, Services Group

Increasing Technical Excellence As the recipient of prestigious awards including the Defense Manufacturing Technology Achievement Award and the Deltek Best Intelligence Award, CTC’s work earned national recognition. Additionally, CTC has effectively doubled its efforts and activity in the patenting landscape so as to protect CTC’s intellectual property. We are incredibly proud of these achievements.

In 2014, CTC’s Unclassified Remote Hosted Desktop (URHD) cloud computing system became the first Software as a Service (SaaS) to be authorized by the Federal Risk and Authorization Management Program (FedRAMP SM), the first to deliver a virtual desktop environment, and the first to have an agency sponsor. Earning FedRAMP status well ahead of the June 5, 2014, deadline kept CTC’s SaaS virtual desktop environment well ahead in the marketplace. Our Board of Directors strongly endorses our philosophy of increasing strength and excellence in our major technical focus areas. They support making strategic investments in these areas, even if it means in the short run that we would reduce revenue while we increase attractiveness to our major client base.

For example, our FY14 capital expenditures included a $1 million investment in 3D printing equipment, which will allow CTC to pursue work more aggressively in the high-growth area of additive manufacturing using powdered metals. Other capital expenditures were made for energy technologies, immersive environments, and cloud computing.

Delivering Innovative Solutions This annual report brings to the forefront some of the ways CTC employees are exploring, developing, and sharing new ideas that move science and engineering forward. This year more than any other, our employees have been resilient, and their achievements continue to inspire. We want to thank them for their hard work and staunch commitment to this Company, as well as acknowledge the support and leadership of our Board of Directors.

Our Board of Directors was especially appreciative and proud of all employees who weathered this difficult year and remained focused on the work at hand. Our Board echoes the huge thank you that the Company Leadership expressed.

Together, we will work smarter, find new efficiencies, focus on technical excellence, and remain personally invested in delivering the best total solutions for our clients. Doing this will allow CTC to support our nonprofit mission in the broadest sense.

As we move into fiscal year 2015, we are excited about the future and confident that, thanks to the technical prowess of our employees and the confidence shown in our team by our clients, we are poised for growth and success.

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To meet clients’ mission requirements, our Engineering Group leverages CTC’s competencies in:

• Computer-Aided Engineering• Corrosion Prevention

and Coatings• Energy and Environmental

Analysis• Environmental Science• Industrial Process Engineering• Manufacturing Technology• Power and Energy Engineering

For more than 27 years, CTC engineers havedeveloped and transitioned affordable and innovative energy, environmental, advanced engineering and manufacturing technologysolutions. Our Engineering Group is workingon a variety of projects, advanced concepts and prototypes to ensure the availability ofreliable technology capable of meeting uniquedemands. To meet ever-changing clientneeds, we are broadening and re-focusing ourcapabilities to discover more, reach higher and topour own past achievements.

Representative Client ProjectsAdvanced ManufacturingDeveloped in the 1980s, additive manufacturing, also known as 3D printing, has been in use at CTC for more than 15 years. Today, we not only utilize standard process technology, we also look for ways that conventional technologies, such as friction stir welding, can be leveraged into the digital landscape and can contribute to additive/3D printing competencies.

Ken Sabo, Senior Director, Advanced Concepts Development, [email protected], and the new Selective Laser Melting (SLM) Machine. Our experienced metallurgical engineers are applying a hands-on approach to optimize additive manufacturing and establish standards for clients and the industry.

Additive manufacturing has all of the promise of being ‘the next great thing,’ yet only if the right people are willing to invest significant research and development time and money. CTC has been providing advanced metalworking solutions to clients for more than 27 years and has made the human and capital investment necessary to advance the industry’s knowledge of additive manufacturing.

We are applying our rich history in metals and metal processing solutions and making a multi-yearcommitment to explore how to best use additive manufacturing with a wide range of metal alloys.

This commitment includes the purchase of a Selective Laser Melting (SLM) Machine from SLM Solutions. The machine is a universal system with a built-in quality control camera and custom heated build chamber. It can be used for R&D as well as for the manufacture of highly complex components.

Additive Manufacturing

Helping Define New Standards in Metalworking Excellence

• How can you determine if additive manufacturing is the most cost-effective alternative?

• How can you ensure that a single part can be built from multiple alloys...successfully?

• How do you decide if it is better to print a “part” rather than cast and weld the metal?

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The goal of this project is to develop a set ofspecifications and a knowledge base of bestpractices in advancing additive manufacturingmethods to repair aerospace metal components.This includes definition of optimum powderfeedstock characteristics, improvements in processmonitoring and control, and recommendations forpart repair and sustainment applications specifically for the U.S. Air Force.

NDCEE: Collaborative Problem SolvingCTC has proudly operated the National DefenseCenter for Energy and Environment (NDCEE) sinceits inception in 1991. The NDCEE was establishedto help Department of Defense (DoD) installations,ranges, weapon systems and the Warfighter achieveperformance advantages, enhance efficiency andcost effectiveness, and comply with regulations.Its mission is to transition technology solutionsin support of the DoD as it strives to maintainreadiness, meet sustainability goals, and supportWarfighters at home and abroad.

CTC scientists, engineers, and other business professionals conduct research, development, test and evaluation activities on behalf of the NDCEE, which has transitioned more than 300 advanced technology solutions. This result is accomplished by engaging the right mix of subject matter experts, technology providers, and others to ensure that requirements are well understood, the full spectrum of solutions is considered, and tradeoffs are holistically evaluated and addressed.

The following representative projects illustrate the breadth and quality of the work the NDCEE performs in support of priority Environmental, Safety, Occupational Health and Energy (ESOHE) challenges.

Engineering

Dan Markiewicz, Senior Principal Electrical Engineer, [email protected], can be contacted for more information and to discuss your energy storage needs.

CTC believes that energy storage can play a key role in the electric grid of the future. The application of energy storage will address the variable supply from renewable energy sources; improve power quality, stability and reliability; defer equipment upgrades and benefit emergency preparedness.

The Department of Energy has identified four challenges that are keeping energy storage from widespread deployment. They include cost competitive energy storage technologies, validated reliability and safety, equitable regulatory environment, and industry acceptance.

CTC is focusing its resources on developing solutions that address current barriers and challenges that the Department of Energy has identified. Leveraging more than 18 years of experience with energy storage technologies, CTC is investigating electrolyte additives, battery component improvements, and the ability to “level load” plants. These activities include all aspects of inquiry and study from modeling and simulation and prototype development to single-cell testing and stack scale-up.

Investing in Our Nation’s Energy Storage Solutions

• How can energy storage technologies become more cost efficient?

• What innovative advancements can we make to improve safety and reliability?

• How is modeling and simulation applied successfully to our nation’s questions about energy storage?

Energy Storage

Pursuing Net Zero Net Zero is a strategy for reducing and offsetting resource consumption. During the past year, we continued helping U.S. Army net zero pilot sites achieve their respective net zero energy, water, or waste goals. Fort Bliss, Texas, is striving to be net-zero in all three areas by 2020. For that base, we produced an integrated plan so that recommended actions can be implemented based on budgets, personnel installations, and other factors. A similar plan was produced for Camp Buehring, Kuwait.

Detecting Corrosion Under Paint Corrosion destroys equipment, decreasing readiness and reliability while increasing maintenance and other ownership costs. To enable detection of corrosion under paint for military aviation applications, CTC designed and patented a novel standard. We then demonstrated four non-destructive testing techniques. Each technique could detect corrosion under paint within the standards to varying degrees. With non-destructive testing, costly, unneeded repairs and repainting can be avoided without compromising safety.

Reducing Pollution RunoffThe Chesapeake Bay Watershed supports six states plus the District of Columbia. In 2010, we began assisting installations with reducing pollutant runoff to the bay. By 2013, the NDCEE aided 12 installations, representing all of the Services, Arlington National Cemetery, and the Pentagon with identifying best management practices and creating a healthier watershed. Efforts were conducted in coordination with the U.S. Environmental Protection Agency as well as state agencies in Virginia, Maryland, and Pennsylvania.

Improving Situational Awareness With U.S. Army AfricaOur experts are assisting the U.S. Army Africa with improving situational awareness of sites with natural and cultural significance. In coordination with the Combatant Command Cultural Heritage Action Group, we are developing the Consolidated Environmental Resource Database Information Process (CERDIP), a systematic process for identifying and communicating the location of these sites. CERDIP will be demonstrated and validated in five African countries.

NMC: Advanced Metalworking SolutionsThe Navy Metalworking Center (NMC) was established in 1988 as one of the Centers of Excellence of the Office of Naval Research’s Manufacturing Technology (ManTech) program. NMC has been operated by CTC since its inception.

Working with its government and industry partners, NMC drives technologies from research and development to application on U.S. Navy and other military weapon systems. We support the U.S. Navy’s need to reduce acquisition and total ownership costs by developing and transitioning innovative metalworking and manufacturing solutions. In September 2013, Secretary of the Navy Ray Mabus, speaking at Marinette Marine Corporation, said, “The cost of the 10th LCS (Littoral Combat Ship) out of here is going to be about half of the first, and what that means is that you are doing your job really well.” His words underscore the vital work being done by the Navy ManTech Program to improve the affordability of naval platforms critical to the future force, and we are proud of the role that CTC engineers, scientists, and other professionals play through NMC work to advance manufacturing technology.


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The following events and representative projects illustrate the depth and importance of NMC’s work.

Manufacturing Improvements for CVN 79 Weapons Elevator Doors

Manufacturing issues such as weld distortion can have a serious impact on ship production schedule and construction costs. For CVN 78, relatively thin steel plates were used to produce the weapons and stores elevator doors and, after welding and pressing operations, those doors did not consistently meet the required flatness and straightness tolerances. NMC and Newport News Shipbuilding (NNS) employed a prioritized

approach to address these challenges, while significantly reducing labor costs. The project focused on incremental improvements (Interim Corrective Action [ICA] doors) as well as an improved door configuration that uses a balanced weld approach (Permanent Corrective Action [PCA] doors).

With the ICA doors, NMC and NNS applied several manufacturing enhancements, including elimination of the back sheet, use of purchased prefabricated stiffeners, vertical-down welding, improvements in weld sequencing, and introduction of flame straightening. The ICA door was implemented and is now in production for CVN 79.

Compared to the cost of CVN 78 doors, this project achieved a net savings on ICA doors fabricated for CVN 79 due to the substantial decrease in fabrication labor relative to the increased material costs for pre-fabricated stiffeners. In addition, the project achieved significant cost avoidance by delivering all CVN 79 doors produced to date on time. Implementation of PCA doors on CVN 80 and follow-on hulls is expected to provide additional cost savings from both labor and material.

NNS began production of CVN 79 doors in March 2013, and as of June 2014, has delivered 31 ICA doors on schedule or early. Implementation of PCA doors is expected on CVN 80 in 2018. The producibility methods and improvements developed in this project can be applied to hatches, other ballistic and fragmentation doors and hull closures, and other applications or platforms.

Reducing Costs Through Improvements in Thin Plate Manufacturing

Ingalls Shipbuilding (Ingalls) is expected to save $5.2 million over five years from improvements in thin plate manufacturing that an NMC project team developed. Thin plates (<3/8 inch) make up almost half of the DDG 51 Class hull panels and will be used heavily in future ship classes. Those thin plates, while lighter, are subject to excessive distortion during handling, storage, plasma cutting and welding. The project team included the DDG 51 Program Office; Ingalls; ArcelorMittal Burns Harbor; ESAB Cutting Systems; the University of New Orleans; and the Naval Surface Warfare Center, Carderock Division.

Team members evaluated the distortion present in thin plate at Ingalls; identified alternative commercial plate manufacturing processes and sources that possess better flatness; identified factors affecting cut part accuracy; and developed rules and guidelines for improved cut part accuracy, reduced cut part distortion, increased productivity, and reduced costs.

Ingalls incorporated the plate specification and plasma cutting guidelines into its DDG 51 construction programs in the third quarter of FY13 in support of DDG 114. The solutions are applicable to other military services and industries that use similar products and processes.

Honoring Achievement in Metalworking Technology

For the third time in the past six years, CTC and key partners earned a Defense Manufacturing Technology Achievement Award, which is given by the Department of Defense Joint Defense Manufacturing Technology Panel (JDMTP). The 2013 award was presented on December 3, 2013,

at the Defense Manufacturing Conference in Kissimmee, Florida. NMC led a project team that developed mechanized tools that replace manual grinding of large plates for weld preparation. General Dynamics Bath Iron Works (BIW) implemented the edge preparation tool in mid-2012 and the surface preparation tool in early 2013 on DDG 51 and DDG 1000 class hulls. The new technology, which removes rust and primer from the edge and surface of large plates, is significantly increasing ship construction productivity, which will save between $2 million and $4 million on the cost of future surface combatants. The tools can be used for a variety of applications, such as ships, submarines, and bridges, as well as other processes. The project team included the DDG 1000 Program Office; Naval Surface Warfare Center, Carderock Division; BIW; Ingalls Shipbuilding; E.H. Wachs; and 3M.

Engineering

Team Wins Technology Award The Defense Manufacturing Technology Achievement Award was presented to the team that developed plate edge and surface preparation tools that will save several million dollars in labor cost on a typical surface combatant. The team includes (left to right): Dan Winterscheidt (CTC), Rob Akans (CTC), Kevin Roosinck (Ingalls), Tim Freidhoff (CTC), Edward J. Sheehan, Jr. (CTC), Paul Sleppy (CTC), Al Baum (CTC), Steve Davis (BIW), and Adele Ratcliff (Department of Defense ManTech Program). Not pictured: Karl Kopija (E.H. Wachs), Gene Franke (NSWCCD), Lance Flitter (DDG 1000 Program Office), John Carney (Office of Naval Research), Greg Woods (Office of Naval Research), Chris Alexion (CTC), and Phil Taylor (BIW).

Assistant Secretary of Navy Tours CTC CTC, on behalf of the Navy Metalworking Center (NMC), was honored to host Assistant Secretary of the Navy (Research, Development and Acquisition) Sean J. Stackley in conjunction with his participation in a defense contracting trade show in Johnstown, Pennsylvania, on May 29, 2014.

On a tour of CTC, staff explained and demonstrated several projects that represent various capabilities, including the NMC’s advancements in friction stir welding. Mr. Stackley is seen with James McHenry, CTC Sr. Mechanical Engineer; Dan Winterscheidt, NMC Sr. Program Director; Paul Essig, CTC Executive Director, Advanced Engineering and Manufacturing; and Jerry Hudson, CTC Sr. Vice President, Engineering Group.


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Richard McMullen, Director, Secure Systems, [email protected], can be contacted to help you with your cloud computing needs.

Our team ensures a security-first approach to innovative cloud technologies that allows clients to move to the cloud with confidence. Drawing upon CTC’s experience as a U.S. Government contractor that is accustomed to top security measures, we provide each client with the same precise, capable, innovative mobile and desktop computing services that we develop for our Department of Defense and Intelligence Community clients.

And we specialize in making your secure cloud solutions accessible. Too often security measures prevent users from easy access to necessary information, and our R&D efforts have focused on ensuring accessibility through multiple mediums—smartphones, tablets, desktops, etc.

Our dedicated team of subject matter experts holds the distinction of having been the first in the nation to deliver a virtual desktop environment that achieved FedRAMPSM authorization. The CTC team is passionate about finding new technologies to ensure user access, identity proofing and security. Current R&D efforts include the development of a client-facing window into cloud usage that will allow clients to see for what they are paying, and also the potential for cross domain guard technologies to provide increased security in the cloud.

Cloud Computing

Ensuring Cloud Security and Accessibility for Clients

• How do I know that my data are secure within the cloud?

• How do I know that I am using all of the cloud resources I purchased?

• How can I be sure that only qualified users can easily access our information using multiple devices, including mobile?

TechnologyCTC ANNUAL REPORT Fiscal Year 2014 CTC ANNUAL REPORT Fiscal Year 2014

To meet clients’ mission requirements, our Technology Group leverages CTC’s competencies in:

• Software Engineering• Information Management• Secure Systems • Sensor Systems Integration

These four competencies are applied in the following core areas:

• Cross-domain solutions• Man-machine interfaces• Cloud computing• Augmented reality • Mobile applications

Accessibility. Reliability.We offer a broad portfolio of competencies to solve clients’ challenges and meet the quickly changing demands of how technology is delivered and utilized. Clients require scalable, secure systems for today and tomorrow. Cloud, mobile and virtual solutions that manage information and keep pace with evolving needs. Integrated, agile software solutions. Better ways to utilize immersive environments. Our Technology Group provides cost-effective innovations, from infrastructure through applications.

Representative Client ProjectsCTC is Now Offering Clients aFedRAMP SM - Approved Cloud SolutionOn December 20, 2013, CTC’s Unclassified Remote Hosted Desktop (URHD) cloud computing system became the first Software as a Service (SaaS) to be FedRAMP SM-authorized, the first to deliver a virtual desktop environment, and the first to have an agency sponsor.

Earning FedRAMP status well ahead of the June 5, 2014, deadline kept CTC’s SaaS virtual desktop environment well ahead in the marketplace, ready to serve clients who are looking for the

security, reliability and customizable accessibility we offer.

The Federal Risk and Authorization Management Program (FedRAMP) provides a standardized approach to security for cloud products and services and is mandatory for any cloud service provider doing business with federal agencies. Federal agencies, too, must have FedRAMP-approved cloud systems. The URHD is the first FedRAMP-approved SaaS cloud computing based virtual desktop that can be leveraged by any federal, state or local government.

Technology Helps FEMA ValidateCredentials During EmergenciesIn conjunction with the Department of Homeland Security Science and Technology Directorate, Homeland Security Advanced Research Projects Agency-Cyber Security Division and the Johns Hopkins University Applied Physics Lab, CTC is developing the Federal Emergency Management Agency (FEMA) Federal, and Mutual Aid, Emergency Response Official (F/ERO) Repository System as an integrated electronic identification, credentialing and validation capability used to achieve multi-jurisdictional interoperability during emergency response situations.

The F/ERO Repository System provides incident scene commanders, access control officials or others with validation requirements (relying parties) the capability to electronically validate F/ERO identities and attributes (qualifications,

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Immersive Simulation

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TechnologyCTC ANNUAL REPORT Fiscal Year 2014 CTC ANNUAL REPORT Fiscal Year 2014

Alan Hoberney, Senior Director, Software Engineering Discipline Lead, [email protected], can be contacted for more information about your immersive simulation solutions.

Immersive simulation augments human capabilities by providing the right information at the right time through our augmented reality (AugmentedEdge) and virtual reality (VirtualEdge) applications. By augmenting human capability, the platform is enabling the ability to live, interact and experience information within a multi-sensory environment.

We are building upon our baseline of immersive multi-intelligence (multi-INT) analysis and visualization capabilities to establish a new framework for developing blended reality solutions to enhance human performance in a variety of domains.

CTC is exploring the use of leading-edge technologies such as computer vision for object detection and recognition, speech recognition, sensor integration, wearable technology, augmented reality glasses, virtual reality glasses and related environments to provide game-changing capabilities to the end user to enhance their ability to process information and make time-sensitive decisions.

Augmenting Human Performance by Combining the Physical and Digital Worlds

• How can you augment human capabilities by blurring the line between physical and digital worlds?

• How can we develop innovative advancements in support of emergency preparedness?

• How can we leverage advancements (wearable technologies, sensors, internet of things, etc.) to progress/augment human capabilities?

authorizations, certifications, and/or privileges), through the use of General Services Administration (GSA)-approved Federal Information Processing Standards (FIPS) 201 credentials, when deployed to expedite transiting to/from the scene, strengthen the decision process for entry into the incident scene, and provide secure electronic manifests of those who respond during an all-hazards, communications-in or-out environment.

CTC developed the software to perform the validation of F/EROs identities. This is achieved through fingerprint data from scanners on mobile validation device scanners. Additionally, CTC developed the capability to read and extract data on Department of Motor Vehicles driver’s licenses in the American Association of Motor Vehicle Administrators format to validate identities.

Of note, CTC has been the lead software integrator of the Federal Identity, Credential and Access Management Backend Attribute Exchange-Security Assertion Mark-up Language (SAML) version 2.0 interface between relying parties and authoritative attribute services into the F/ERO Repository System.

Building Avatar-Based Scenariosfor Pre - Deployment TrainingUnder a contract with the Office of Naval Research (ONR), CTC will develop the Virtual Human Terrain Scenario Training (VHTST) program. VHTST replaces human role players (the actors portraying enemy combatants and local civilians) in a live training environment with computer generated and managed avatars.

Marines require pre-deployment training in areas including urban patrolling, tactical questioning, tank and infantry integration, and other skills necessary for operations. However, traditional live training exercises on these learning objectives—including both lodging and feeding for Marines and role-players—can be costly. This approach, leveraging modern gaming technology, can create training efficiencies.

CTC’s Dave Hockenberry, Principal Systems Engineer, and Dr. Kamal Gella, Senior Director, (from left to right) brief U.S. Senator Jack Reed (D-RI) and U.S. Senator Bob Casey (D-PA) on CTC’s Virtual Human Terrain Scenario Training program.

VHTST provides trainees with the opportunity to obtain richly contextualized human domain awareness by interpreting both human intelligence and activity based intelligence. For example, a simulated scenario would require Marines to interact with key individuals within an operating area to assess the capabilities, limitations, and needs of a village. The collected information would be provided to civil affairs planners for further plan stability and support operations.

VHTST can augment live training by allowing Marines to arrive ready to capitalize and participate more effectively in the highly-coordinated training exercises.

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ServicesCTC ANNUAL REPORT Fiscal Year 2014 CTC ANNUAL REPORT Fiscal Year 2014

To meet clients’ mission requirements, our Services Group leverages CTC’s competencies in:

• Education and Training• Safety • Environmental Health• Logistics• Special Missions

Smart Organizational Strategies Include Lifelong Learning CTC’s scope is broad; its areas of expertise diverse. Education and Training spans them all.

For more than 25 years, CTC has been a proven provider of innovative learning solutions and has served the diverse learning needs of many Department of Defense (DoD) and U.S. Government partners. Our development teams leverage DoD training investments and apply proven learning techniques and technologies to help our clients meet their expanding training requirements.

Our experts have the advanced level of knowledge necessary to deliver innovative blended learning solutions as well as to rapidly develop and operationalize advanced concept learning solutions for individuals and teams. We are training U.S. Warfighters and have successfully instituted small group training within the DoD. Our team develops cost-effective, blended learning solutions that incorporate online, mobile and classroom-based methodologies. These solutions provide learners with the unique educational benefits of each delivery method while also providing instructors tools and techniques to evolve courses and curriculums.

Representative ProjectsEnhancing Student Learningat Uniformed Services UniversitySince 2006, the Education & Technology Innovation Support Office, or ETI, has partnered with USU’s faculty to incorporate innovative technologies and instructional techniques to enhance student learning. CTC staffs the ETI. The following is adapted from an article in Volume 9, Issue 12 of USU’s Pulse newsletter, available online at http://www.usuhs.edu/vpe/pulseissues.html.

ETI has spurred significant innovation across USU’s departments and schools.

“Education in the health professions is undergoing more change than has been seen in fifty years, and free-standing professional schools are at a disadvantage without expertise in curricular design and pedagogical methods. ETI gives our faculty access to widely experienced experts in these areas and so facilitates exploration of new teaching methods and technologies,” said USU’s Dr. Dale Smith, the acting director of ETI.

Others at USU have also championed the merits of ETI, including Army Lt. Col. (Dr.) Justin Woodson. “The ETI has provided invaluable contributions to the Military Contingency Medicine/Bushmaster course over the last several years...They have helped me build new online products for the students and faculty training program as well as new curriculum evaluation instruments that have proven invaluable to the evolution of the program. They are in the field expertly observing faculty and student learning and teaching dynamics...There is no question that ETI has facilitated a raising of the academic bar for these programs,” said Woodson.

CTC Creates Key Tool for Integrated Parts ManagementDiminishing Manufacturing Sources and Material Shortages (DMSMS) is the loss or possible loss of manufacturers or suppliers of items and includes shortages of raw materials that can occur in any program phase from design to post production, detrimentally affecting schedule and item life cycle cost.

Beginning in 1997, CTC designed and developed the Diminishing Manufacturing Sources Shared Data Warehouse (DMS SDW) to improve the sustainability of DoD weapon systems by reducing the impact of DMSMS through more effective identification and management of materiel obsolescence issues.

The DMS SDW was developed for the Defense Logistics Agency (DLA) and adopted for use by the military Services and various DoD activities. It is recognized as one of the key tools enabling the identification and management of obsolescence and has become the backbone for an integrated parts management environment.

This integrated suite of web-based obsolescence case management modules and common tools provide case resolution and case management, enable work flow, and provide access to disparate critical legacy and current data in support of decision analysis.

Obsolescence managers within the DoD and its industry partners can access this shared information for solutions pertinent to their specific DMSMS problems. In addition to the summary data from the case management modules’ case history files, the Obsolescence Data Repository contains additional solution data from government and industry sources to enable a more diverse and all-encompassing solution set, as well as DoD-wide metrics development and reporting.

Operating the DoD SafetyManagement Center of ExcellenceThe mission of the Department of Defense (DoD) Safety Management Center of Excellence (SMCX) is to create a sustained Safety and Health Management systems capability across the DoD by assisting installations in implementing robust Safety and Occupational Health Management systems—ultimately achieving third-party recognition such as Voluntary Protection Programs (VPP) Star Status from the Occupational Safety and Health Administration (OSHA).

The Diminishing Manufacturing Sources Shared Data Warehouse (DMS SDW) Enterprise has been identified as one of DoD’s key tools enabling the identification and management of obsolescence. The DMS SDW Enterprise provides systematic dissemination of associated data and facilitates a central data repository for DMSMS management within DoD. The core Case Management Modules and Common Use Tools within the DMS SDW Enterprise are the Air Force Module, Defense Logistics Agency Module, Gateway Module, United States Marine Corps Module, DMS SDW Query Tool, DMS SDW Enterprise Portal, and Service Requirements Response Tool. They have become vital tools for the exchange of data; rapid, economical identification of part numbers; and processing of National Stock Numbers (NSNs) potentially affected by obsolescence issues and their associated inventory requirements—ultimately identifying key weapon systems for military services that may be affected.

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This CTC team performed a recertification assessment at McAlester Ammunition Plant. They are, from left to right, Janet Nixon, Kevin Smith, Alyssa Gormish, and Dave Caswell.

CTC has been operating the DoD SMCX since 2006, and our team of highly qualified safety and occupational health professionals works closely with DoD sites to provide guidance and recommendations that help reduce civilian lost day rates and military injury lost time case rates below Presidential and Secretary of Defense goals.

The SMCX provides a combination of onsite technical support and remote/electronic support including various innovative techniques and training targeted at the unique challenges within the DoD.

Over the past year, the SMCX supported more than 300 DoD sites from all Services as well as the Defense Logistics Agency and Defense Health Agency, conducting 137 onsite safety management system assessments and visits at locations around the world. There are currently 55 DoD Star Sites. This year alone, SMCX efforts supported the recognition of three new VPP Star sites, five VPP Recertification Stars, four sites overseas that are

not eligible for OSHA recognition, one Army Safety and Occupational Health (SOH) Star, and five Army SOH Recommended/Pending Stars. DoD Star Sites, supported by the SMCX, highlight a significant return on investment in both reduced injury rates and lower direct and indirect costs associated with injuries at those sites. Overall, the DoD’s Star Sites reported more than a 70% reduction in incident rates. Commanders of these installations are realizing a decrease in non-availability, thus an increase in readiness and sustainability.

To assist DoD sites in documenting and measuring the benefits of VPP within their safety programs, the SMCX continues to host and maintain the Electronic VPP (e-VPP) Tool, which currently has nearly 5,000 registered DoD users. The SMCX continues to document and share the improvements and successes of DoD participants by maintaining a website to promote the benefits of SMS participants, report recent success stories, and serve as a

repository for the innovative tools and training developed in support of the sites’ safety management system efforts.

U.S. Northern Command Uses CTC’s Small Group Scenario TrainerLearning to respond to missions as diverse and critical as those found at North American Aerospace Defense Command and U.S. Northern Command (N-NC) can be extremely demanding, but with CTC’s Small Group Scenario Trainer (SGST) that training challenge has become much less daunting. SGST provides the tools necessary to establish, develop, maintain, and distribute a full spectrum training program allowing individuals and teams to practice operational processes, procedures, and decision making skills in a collaborative, Web-based, scenario-driven training environment.

SGST, developed by CTC from concept to operational use, reaches N-NC’s highest training priorities, from initial qualification training to battle staff, Commander Center, and mission-specific General Officer training. CTC, through SGST, brings flexibility, speed-to-delivery, reusability, and efficiency to maximize mission readiness. SGST exercises are challenging, fast paced exercises and address a wide range of training objectives that provide enriched training outcomes and maximize scarce resources. CTC’s support to N-NC spans exercise planning, design, development, execution, facilitation and After Action Review. Exercise development includes research, script writing, narration, graphics, 2D and 3D multimedia, storyboard development, scenario inject development, content packaging and test and evaluation.

SGST assigns roles to the training audience and quickly immerses them by providing scenario background, tasks to perform and action injects that facilitate the training of staff processes, while maintaining focus on increased staff production and solid decision making skills. SGST brings together technology advancements in multimedia, gaming, training and simulation—coupled with sound learning design—so that small groups and intact teams can train as they operate.

Surveys Help U.S. Army Maintain Safe Shops and InstallationsThe NDCEE, operated by CTC, conducted industrial hygiene surveys at 4,164 shops located on 14 Army installations on behalf of the U.S. Army Public Health command. This effort demonstrated the value and enhanced productivity of mobile industrial hygiene teams to obtain the information needed to improve industrial hygiene reporting to support resource allocation and worker hazard exposure tracking. It demonstrated a standardized

SGST focuses on team collaboration and brings together multimedia, gaming, e-learning and simulation.

survey approach that resulted in more uniform aggregate industrial hygiene data being collected across industrial shops and installations. CTC also delivered a set of 73 objective process descriptions for common activities such as those in motor pools and welding shops for use by the Army and DoD.

The U.S. Army Public Health Command provides operational support worldwide for programs that include occupational health, industrial hygiene, and environmental health to help ensure a safe and healthy workplace for Soldiers and Department of the Army civilian employees. The Command consolidates data into one authoritative DoD management information system, the Defense Occupational and Environmental Health Readiness System–Industrial Hygiene (DOEHRS-IH). The NDCEE effort populated the DOEHRS-IH with existing data and fresh data collected through surveys of shops. The surveys and data entry demonstrated a 40% gain in efficiency for mobile industrial hygiene teams over the existing model of assets in place.

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PeopleCTC ANNUAL REPORT Fiscal Year 2014 CTC ANNUAL REPORT Fiscal Year 2014

We believe that collaboration leads to innovation, and a great work environment inspires both.

Working at CTC means putting clients first and making the way we do business a market differentiator. We work hard to understand clients’ needs and go the extra mile to make enduring business relationships the standard, not the exception.

A Best for Vets EmployerEmploying veterans allows CTC to better understand the needs of U.S. Warfighters whom we serve. In 2013, 54 percent of CTC’s new employees were veterans. Veterans make up 22 percent of our workforce.

Military Times named CTC a “Best for Vets” employer in 2014—the fourth time our Company has earned that distinction. CTC ranked

eleventh on this year’s list, which recognizes companies whose

policies, procedures and corporate cultures support vets, offering an environment for success.

As a member of the 100,000 Jobs Mission, a coalition of more than 140 companies committed to hiring at least 100,000 veterans by 2020, we have already exceeded our goal. A total of 161,752 veterans were hired as of June 30, 2014. The coalition is now committed to hiring 200,000 veterans by 2020.

An Engaged WorkforceNew to CTC this year is the Employee Advisory Committee. Its mission is to accelerate our culture around employee engagement and promote 360-degree open communication throughout the company. It is based on the vision that CTC will be a place where employees are fully engaged and enjoy open communication.

To acknowledge as well as encourage volunteerism, a recognition program allows employees to register their volunteer hours online. Through CTC Volunteers!, one winner is chosen by random drawing each month. The winning employee receives a gift certificate and is profiled on the company’s intranet. Stories ranging from emergency medical technicians to mentors and marksmen provide diversity and interest while encouraging volunteerism and charitable giving.

A Passion for Ethical ConductJohn Bartholomew, CTC’s Chief Ethics & Compliance Officer, reminds us frequently that our employees’ commitment to ethics and compliance is foremost and integral to our corporate culture. CTC’s ethics and values guide all decisions and are central to who we are as well as how we do business. Our ethics program is very visible and includes a “Meet the Ethics Officer”series

and video, online flash quizzes that are educational requirements, and an ethics booklet that was distributed in hard-copy format to every employee this year. A new Ethics app provides quick and easy access to various ethics resources.

A Commitment to LearningSince CTC University’s launch in 2006, this site for virtual learning has experienced exciting growth. Many courses are now developed in-house. During the past year, CTC employees completed more than 68 college and university courses under the tuition reimbursement program and completed

294 SkillSoft courses that are part of CTC University.

During the past fiscal year, 357 CTC employees participated in 36 Brown Bag sessions, which are voluntary educational sessions offered during the traditional lunch hour.

Effective Environmental Health and Safety ProgramsPositive impacts from CTC’s own environmental programs serve as an example to companies we serve.

For example, the volume of paper that CTC recycled in FY14 was equivalent to 788 trees. Using water refilling stations has eliminated more than 120,000 plastic water bottles on CTC campuses. During a one-day event hosted by our Johnstown office, we collected 13 tons of household Hazardous Waste—a total of 100 tons over the past eight years. The event is organized by the Pennsylvania Resources Council in collaboration with the Cambria County Solid Waste Authority.

Employees are also making impressive strides in reducing carbon footprints through better travel practices. Our business carpooling program saved $28,280 because employees carpooled on 471 trips, which resulted in 707 fewer rentals. Moreover, they saved 155,540 miles, which represents nearly 6,000 fewer gallons of gas.

Commuters who carpool saved 5,222 miles per week. Using 27 miles per gallon as an average, they saved 193 gallons of gas, or about $705 a week.

Carpooling for the EnvironmentAl Baum (driver) and Timothy Kennedy travel about 45 minutes each way to work and find carpooling saves wear and tear on their vehicles. They have been sharing the ride and saving money for many years.

10th Annual Take Our Daughters & Sons to Work Day Nearly 80 youngsters joined their parents at work this April for Take Our Daughters & Sons to Work Day. In the CTC Lab, students experimented with lava lamps, dancing spaghetti, dry ice and the ever-popular electric pickle.

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Sculpture Erected by Volunteers“Celebration of Life,” a stainless steel sculpture by the late John Stallings, was completed and erected in Johnstown, PA, three years after the artist’s death. The project was led by CTC’s Bruce Williams, Principal Custom Fabrication Lead. Pictured below are CTC welders Mark Czyrnik and Troy Lamar. In addition to CTC, Bo Whittle, Fred Miller and Oppy’s construction volunteered to complete the assembly of this 20-foot, polished stainless steel artwork.

Giving Through the United Way As one of the largest contributors to the United Way of the Laurel Highlands, CTC employees work hard to make a difference by giving to those in need. This year, Raymond Myers, pictured with John Ford, our United Way Coordinator, won an

iPad in a random drawing for donors.

Professional ExcellenceWhen top employees are honored by their respective professional organizations, we celebrate along with them and recognize their achievements on the CTC intranet. Here are a few of the employees whose work was recognized nationally during the past fiscal year.

Safety Professional AwardCiting her willingness to “accept any challenge and any new responsibility,” the American Society of Safety Engineers (ASSE) Council on Practices & Standards awarded Lori Schroth a 2014 Safety Professional

of the Year Award, in the Public Sector Practice Specialty. Lori is a Safety and Occupational Health Professional at CTC who also was named a Rising Star of Safety by the National Safety Council.

Industrial Hygiene AwardBraxton Lewis, an Industrial Hygienist at CTC and adjunct professor at West Virginia University, is a founding member of the team that earned one of three Outstanding Project Team awards given this year by the

American Industrial Hygiene Association (AIHA).

Margaret DiVirgilio Earns Award for Distinguished Service to the NDIA’s Procurement Division In May 2014, CTC’s Senior Vice President

and Chief Financial Officer Margaret DiVirgilio earned the Howard H. Cork Memorial Award for her distinguished service to the National Defense Industrial Association’s (NDIA’s) Procurement Division. The NDIA is America’s leading defense industry association promoting national security. Margaret (left) accepted the award from Debbie Thurman, Vice President, Contracts & Procurement, URS Federal Services, and Chair, NDIA.

Client Names Mark FriedmanEmployee of the Quarter Mark Friedman, CTC Advisor Technologist, was recently recognized

as Employee of the Quarter by Joint Knowledge Online (JKO). Mark (at right, receiving the award from Matt Sprull of ECS, Inc.) works at the client site in Suffolk, Virginia.

AUSA Awards CTCPatriotic Service Award

For continuing support to “the warrior community,” CTC was awarded the Patriotic Service Award from the Association of the United States Army (AUSA) Fort Pitt Chapter. Accepting the honor for CTC on May 2, 2014, in Pittsburgh, Pennsylvania, was our President and Chief Executive Officer, Edward J. Sheehan Jr. In this photo are (left to right) Lieutenant General Roger Thompson (3-Star, Retired) – Vice President of Membership and Meetings for AUSA; formerly Director of the Army Budget, Deputy Commander and Chief U.S. Transportation Command and Board of Directors Force Protection Industries; Mr. Sheehan; Henry F. Zolla – President First Region of AUSA (North East U.S.) and current Director Raytheon Integrated Defense Systems; and Carlos Carmona – President Fort Pitt AUSA (Western PA), U.S. Army (Vet) and Engineered Plate Lead for Allegheny Technologies Inc.

CTC Team Wins Deltek’sBest Intelligence Award

On October 15, 2013, the CTC team accepted Deltek’s Best Intelligence Award. Winners of Deltek’s annual Project Excellence Awards have improved business processes and performance, driving compliance and increasing profitability. Pictured from left to right are CTC’s Margaret DiVirgilio, George Appley, Jason Klonicke, and Matthew Howard, who accepted the award from Deltek CEO Mike Corkery.

Golfing For CharityIt was a gorgeous day for golf and giving. Employees from our Crystal City and Annapolis Junction offices participated in the most recent KidsRFirst Charity Golf Tournament, where the record turnout will enable the charity to support 22,000 kids with backpacks and school supplies. Pictured here are Collin Reed, Dan Reinhard, and Rick Gamertsfelder. Erik Carlson also golfed but is not pictured.

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Software Application Awarded U.S. PatentCTC earned a patent for an application framework that includes a collection of mutually-compatible software components for the Reactive Information Propagation and Planning for Lifelike Exercises (RIPPLE). RIPPLE is a software application that helps training facilitators design the complex scenarios—including fictional biographies, intelligence, and timelines, of live-action training events needed for pre-deployment Soldiers, Sailors, and Marines.

Realistic, role-player based training is critical for our nation’s armed forces. CTC developed and patented the RIPPLE software application to help with skills like interviewing, urban patrolling, and reacting to evolving—and often emotionally and politically loaded—situations. The scenarios are as realistic as possible and can save funds because planners avoid the high costs of organizing multi-day events using paid actors.

The CTC team members who developed and patented the Reactive Information Propagation and Planning for Lifelike Exercises (RIPPLE) are (from left to right): Don May, Jr., David Hockenberry, Dr. Kamal Gella, John Wass, Jeremy Snyder, Dr. Vicki Barbur, and Dr. Michael Knapp.

Interns Appreciate Hands-On Learning

Through a 12-week summer initiative that combines the development of the future workforce and an exploration of key technology areas, CTC has graduated its fifth group of Participative Internship Program (PIP) interns. Left to right are: Logan Weber and Collin Coker, Chemical Engineering students at Rose-Hulman Institute of Technology in Terre Haute, Indiana; CTC President and CEO Edward J. Sheehan, Jr.; CTC Sr. Vice President and Chief Technical Officer Dr. Vicki Barbur; Keith Cheng and Dale Shin, Computer Science students from the University of Maryland, Baltimore County.

Adopting a FamilyOur Procurement and Subcontracting Departments adopted a family for the holidays to make life a little easier for people in need. They located the family through Mom’s House and relished the task of making the season brighter for others!

Making CTC Securefor Clients and EmployeesKeeping our work environment safe and secure can only be achieved through teamwork and commitment. In May, our Enterprise Security team hosted CTC Security Days to promote awareness and remind employees of the importance of following basic security procedures. Their message is clear: By working together, we are continuing to build a solid record of security performance that enhances our competitive edge.

Employee Appreciation Day

CTC takes the time to recognize our employees’ innovation, passion and drive, which is the bedrock of our success. Here, Ray Shrift, Executive Director, Contracts & Procurement (left), thanks Stephen Mitchell, Senior Information Assurance Subject Matter Expert, at one of CTC’s Johnstown, PA, facilities.

Celebrating Safety

June is National Safety Month, and our team celebrated Safety Days with training, demonstrations, contests and prizes. Here, left to right, Margaret DiVirgilio, Senior Vice President, Chief Financial Officer, and Ed Sheehan, Jr., President and Chief Executive Officer, look at a lobby display about hazard control with Heidi Wildauer, Software Engineer. A successful safety program depends on all employees being involved with spotting hazards before they can do harm.

Fashion Fun:Denim Days for Charity

During Denim Days, employees dress casually in jeans in exchange for a donation to a specific charity. Employees love Denim Days because they recognize that CTC is completely committed to helping those in need and giving back to the communities we serve.

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Enterprise Ventures Corporation (EVC) is CTC’s technology commercialization arm and is organized as a wholly owned for-profit affiliate of CTC. EVC is focused on building the systems and capabilities to transfer technologies from CTC to various markets. Together, CTC and EVC provide full life-cycle support services to clients, from concept through disposition.

EVC’s three main areas of business are production, non-technology development professional services, and non-technology development consulting services.

Production Division EVC turns CTC’s and other organizations’ Research, Development, Test and Evaluation (RDT&E) designs into products to be sold to government and commercial clients.

For example, EVC is marketing the highly successful Advanced Robotics Laser Coating Removal System, a multi-award winning technology advancement that was developed by CTC and Carnegie Mellon University’s National Robotics Engineering Center. The system uses a continuous wave laser to strip paint and other coatings from aircraft in an efficient, automated manner that eliminates the release of harmful waste products. Sales of the device are targeted for the

Enterprise Ventures Corporation

CTC Foundation

government and commercial market. Commercially, Maintenance Repair Operations (MROs) can use the system to decoat, and in the future, it is anticipated it will be used for other tasks, such as inspections and even recoat.

EVC is also the prime contractor for the manufacture of the U.S. Navy’s Carriage, Stream, Tow, and Recovery System (CSTRS), which operates from the MH-60S Helicopter. In FY14, EVC received follow-on funding to build 10 shipsets. Following an upcoming live government test of a release mechanism for the unmanned underwater vehicle (UAV), EVC looks forward to receiving orders to produce additional CSTRS units.

EVC also produces:

CSTRS Trainer – This simulator is used to train naval personnel operating the mine countermeasure-configured MH-60 Helicopter.

H-60 Bridge Tool Kit – This kit is used to alleviate maintenance problems, reduce damage to critical components, and lessen maintenance time on the H-60 aircraft forward and aft bridge assemblies.

Quick Skive Removal Tools – These tools are used to remove materials from delicate, scratch-prone surfaces.

EVC is marketing the highly successful Advanced Robotics Laser Coating Removal System, a multi-award winning technology advancement that was developed by CTC and Carnegie Mellon University’s National Robotics Engineering Center.


Incremental Sampling Tool – The CTC-developed soil stick and Teflon® plungers are used to collect soil increments.

Edge Prep Tool – Utilized for the removal of surface rust and pre-construction primer from steel plates prior to welding during ship fabrication, this tool helps ensure a quality weld.

Alternate Brazing Tool – A small, lightweight brazing system that CTC developed for shipboard use, the alternate brazing tool is an alternative to the traditional hand-held torch flame brazing process to join pipe and fittings. It provides higher quality joints and reduces the rate of additional labor to repair faulty joints.

Professional Services Division EVC’s Professional Services Team specializes in acquisition logistics, acquisition management, administrative support, analysis, education and training, facilitation, financial management, information technology strategy, and program management. For example, EVC is providing education and training development support to the U.S. Navy’s Center for Personal and Professional Development (CPPD) and the Naval War College-College for Distance Education. EVC develops curriculum content in multiple mediums—instructor-led, computer-based, and Web-based—utilizing the ADDIE model (analysis, design, develop, implement, and evaluate).

Consulting Services Division Sales doubled for EVC’s Consulting Services Division in FY14, exceeding $1.5 million. This division provides management consulting and technology adoption services and conducts software sales, especially related to Lean Six Sigma for healthcare and other packages that help improve clients’ productivity. Also available for purchase from EVC is the FedRAMP SM-authorized Unclassified Remote Hosted Desktop cloud computing system. It is the first Software as a Service (SaaS) to be authorized by FedRAMP, the first certified SaaS with a virtual desktop environment, and is a sound platform for federal agencies and providers looking for secure connectivity to the cloud.

CTC’s wholly owned affiliate, CTC Foundation, is a conduit for giving.

In Fiscal Year 2014, CTC Foundation provided $260,000 in community support to charitable organizations to help improve the quality of life of residents. Giving is diverse; $23,000 went to educational institutions, $46,000 went to the arts, and $191,000 went to charitable and community-service groups throughout the United States.

Education

Arts

Charity/ Community

$23,000

$191,000

$46,000

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Board of DirectorsPublications and Presentations

Representative Technology and Collaborative PartnersCTC joins with other outstanding nonprofit, research-based organizations and universities to develop innovative solutions and to solve our clients’ technology challenges. A representative list of the organizations with whom we have partnered is available on www.ctc.com.

CTC personnel continued to enhance the technical reputation of the Company through their publications, authoring chapters in internationally recognized reference books, published papers in peer-reviewed journals and proceedings, and presentations at national society and technical meetings.

Complete listings are available on www.ctc.com.

CTC’s Todd Hillegass, Cloud Solution Architect, (second from left) participated in a Networking, Security, and Cloud discussion

panel at the Citrix Mobility Event, June 2014, in Washington, D.C. Todd discussed the challenges of providing a virtual

workspace in an off-premise cloud solution, the myriad of options to consider when deploying this capability, and

the impacts each has on performance and security.

Front Row (left to right)

Mark E. Pasquerilla

E. Jeanne Gleason

Howard M. Picking, III, Chairman

Edward J. Sheehan, Jr., Vice Chairman

Margaret DiVirgilio

Conway B. Jones, Jr.

Albert L. Etheridge, Ph.D.

Back Row (left to right)

Robert J. Eyer

Jerry R. Hudson

John F. Phillips

Dale M. Mosier


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Consolidated Financial Highlights

Honor RollJoin us in honoring our colleagues who were on Active or Reserve duty in the past fiscal year.

Joseph M. Biberston

Oliver G. Bugarin

Daniel R. Curry

Shanna L. Denny

Johnathon L. Dulin

John E. Forté

Daniel M. Frank

Kevin D. Hillegas

Gregory M. Jablunovsky

Scott A. McClucas

Richard F. McMullen

Todd V. Riviezzo

Ronald H. Schaedel, Jr.

Bryan R. Young

The information below depicts a few of the audited financial highlights that CTC and its Affiliates experienced at the close of Fiscal Year 2014 (FY14).

Revenue from Operations: $189MDirect Labor: $45MTotal Net Assets: $59M

CTC ended FY14 with 137 new contracts. These new contracts represented a total gross value of $353 million and contributed $28 million to revenue in FY14. This is a 12 percent increase in the number of new contracts as compared to the prior year and a 60 percent increase in the total gross value of those new contracts as compared to FY13. CTC is excited about the innovation we develop and the success we are experiencing, and we have set several aggressive goals in order for us to successfully continue growing our Company in the future.

CTC ANNUAL REPORT Fiscal Year 2014

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100 CTC Drive • Johnstown, PA 15904Phone: 1-800-282-4392

www.ctc.com

Concurrent Technologies Corporation (CTC) is an independent, nonprofit, applied scientific research and development professional services organization providing innovative management and technology-based solutions to government and industry. As a nonprofit organization, CTC conducts impartial, in-depth scientific and technology-based assessments and delivers reliable, unbiased solutions that emphasize increased quality, enhanced effectiveness, and rapid technology transition and deployment.

CTC identifies and creates breakthrough technologies and applies them through an integrated business and technical approach to produce transformative solutions. We are a true partner to our employees and clients and are personally invested in their successes. Our bottom line is helping every client achieve their mission and providing our employees with unique and challenging professional opportunities.

Copyright 2014, Concurrent Technologies Corporation. All rights reserved.

CTC is an Equal Opportunity Employer, M/F/D/V.

A publication of CTC Corporate Communications.

Approved for Public Release.

Printed on recyclable paper with soy-based ink.

Cover PhotosDan Markiewicz, Senior Principal Electrical Engineer, with an electrochemical test cell used for determining redox potentials of our electrolyte advancements. The electrolyte is then tested in the single cell unit in the background.

CTC’s Todd Hillegass, Cloud Solution Architect, (second from left) participated in a Networking, Security, and Cloud discussion panel at the Citrix Mobility Event, June 2014, in Washington D.C.

Lori Schroth, CTC Safety and Occupational Health Professional, (at right) accepts the National Safety Council’s Rising Star of Safety award from Janet Froetscher, President and CEO of the Council.

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