Leveraging NSWC IHEODTD

A Plan for the Charles County Economic Development

Department

19 November 2019

Bob Kavetsky

CEO & President, Energetics Technology Center

A Bit about ETC…

• Established in 2006; 501 (c)(3) organization

• Have brought over $50M in R&D work to Charles County

since 2008

• 25 Employees, 40+ subject matter experts in science,

engineering, policy development

• Revenues - $5M per year

• Headquarters – Indian Head

• Partnership Intermediary w/ Army

and Navy commands

ETC’s Charter - focus on development of science &

engineering activities which support national

security, with an emphasis on energetics R&D

Plan Charter

• Create near-term and longer-term plans to:

1) leverage NSWC IHEODTD interest in creating new programs for

the intelligence community

2) develop a methodology for creating proximity clauses in NSWC

IHEODTD contracts

3) develop a plan for a secure facility in Indian Head (SCIF)

4) leverage NSWC IHEODTD work of interest to the federal, state and

local public security and safety sectors in bomb disposal, EOD, and

first responder-related technologies.

ETC has produced a detailed 50 page report outlining a very specific

proposed plan of action addressing these items

What We Learned – NSWC IHEODTD &

Initiatives Underway in the Town & County

1. NSWC IHEODTD is Huge Economic Driver• Based on output cited in recent State Military Installation study, NSF-IH

may constitute up to 11% of Charles County’s Gross County Product

• NSF-IH generates 6,309 jobs when spin-off jobs are calculated

• $35 million in fiscal impacts in MD, of which Charles is a major beneficiary

• $48.8 million in NSWC IHEODTD Maryland contracts in FY 18

• Federal employment in Charles averages $1,886 per week; overall average

is $881

2. Energetics Renaissance Focus• NSWC IHEODTD led a Navy-wide energetics capability assessment, which

resulted in the delivery of a report: “Need for an Energetic Renaissance:

Naval Energetic Strategy,” the first of its kind within the Navy.

What We Learned –

Leveraging NSWC IHEODTD

The base and the NSWC IHEODTD are major local economic

drivers in Charles County

What We Learned –

Leveraging NSWC IHEODTD

3. Energetics Intelligence• NSWC IHEODTD desires to grow the intelligence-related component of their

business base, from $10M per year to $100M per year.

• Opportunity for start-ups and spin-offs nurtured by an incubator/accelerator

program.

• Outreach to local and State public safety agencies is possible for specialized

training and advisory initiatives.

4. Partnership Opportunities• CITE Designation is proven partnership model

– CITE designation paved the way for two key partnerships: Chemring Ordnance and

NAMMO Energetics Indian Head (NEIH)

– Gray Ops and Silent Spring new opportunities.

Intelligence-related programs represent a significant economic

development opportunity for Charles County

5. Indian Head has taken steps to improve and ready itself for growth:

What We Learned –

Initiatives in the Town of Indian Head

All these efforts are an excellent start to creating a climate that can enable

revitalization. However, continued investment, especially in the areas of

commercial and residential development, are necessary to achieve success.

Fiber Optic Infrastructure Indian Head HUB Zone

Indian Head Rail Trail Sustainable Community Designation

Waterfront & Town Beautification New Comprehensive Plan and Zoning

Strategic Demolitions Opportunity Zone Designation

CSM’s Velocity Center Active MAC

Velocity Park ETC Locating in Indian Head with T4

Recommendations

Recommendation

Create a “Toolbox” of Defense-Focused

Efforts

Defense

Innovation District

Coordinator

Comprehensive

Workforce

Attraction &

Retention Plan

Effective MAC

SBIR/STTR

Program

Energetics Intel

Consortia

Targeted Intel

Marketing

Program

• Establish a Dedicated Defense Innovation District Coordinator

– Enables Charles County to advertise and fully leverage existing programs. This

investment is a “force multiplier”

• Create an “Innovation Hub” in the Velocity Park

– Include a fully funded incubator/accelerator program

• Continue to provide on-going support through the EDD for the

Military Alliance Council (MAC)

– Will be instrumental in the ability to fully leverage NSWC IHEODTD

Recommendations –

Highest Priority

• Create a focused

effort on

commercialization of

NSWC IHEODTD

technology

• Leverage CSM

Velocity Center

Programming

Recommendations –

Leverage NSWC IHEODTD Efforts in Bomb

Disposal, EOD, First Responder Technologies

Recommendations –

Cost & Timeline

• Initial County Investment - $190,000 this Fiscal Year;

$382,000 in FY21. Timing flexible over FY 20 & 21

• FY20 investment focused on:• Intel program marketing plan

• Consortium planning and development

• Developing detailed plans for incubator/accelerator & Innovation

District Coordinator

• Developing criteria for select “Defense Toolbox” items, such as

State enterprise zone application

Preliminary “Return on Investment” calculation indicates

a payoff to the County greater than 5:1

Bottom Line

• The Timing is Perfect for an aggressive effort

– Many existing programs – fertile ground

– Need to coordinate and market available programs and

potentially add additional incentives

• Recommend creating a “Defense-Focused Economic

Development Toolbox”

An unrelenting and comprehensive focus on the NSWC

IHEODTD mission will allow Charles County and the Town of

Indian Head to make significant progress toward realizing a

vision for technology-driven economic development.

4185 Indian Head Highway

Indian Head, MD 20640