NYSTAR Do D Program Chris Medve Empire State

NYSTAR Do. D Program Chris Medve, Empire State Development 1

CONTENTS • Defense Industry Overview – Market Study • Defense Industry Assistance Grant – Overview – Current Status – Workshops and Funding • Do. D Cybersecurity Grant – Overview – Current Status – Workshops and Funding • 2 Do. D Program Future Outlook

Defense Industry Assistance (DIA) Grant OVERVIEW • ESD awarded Do. D DIA grant in April of 2017 • Assist NY - based Do. D contractors with diversification, sustainability, and growth • Ensure the resilience of the warfighting supply chain to fluctuations in government defense spending • Foster innovation and growth in NY State 3

Defense Industry Assistance (DIA) Grant OVERVIEW How? By promoting growth of the NY State Defense Ecosystem to support small and mid-sized manufacturers that are currently engaged in the Do. D Supply chain Outreach and Engagement • Do. D focused small and mid-sized manufacturers • Company Assessments Promote Collaborations and Projects • Defense Diversification Workshops • Funding Opportunities 4

Defense Industry Assistance (DIA) Grant OVERVIEW Emails, Calls, Visits to: – manufacturers with DOD contract revenue – Do. D SBIR/STTR Awards winners Provide: – Initial assessment and vetting – information on funding and events Connect companies to NYSTAR Resources: – At workshops and solution forums – Through Fuze. Hub matching calls 5

Defense Industry Overview New York Defense Industry Market Study – By Chmura Economics & Analytics (Richmond, VA) KEY Points – FY 2017 $6. 4 billion in federal contracts in NY State • 6 a decline of approx. $3 billion from $9. 5 billion in FY 2010 – At. 4%, Do. D contract dependence in NY is lower than the nation but some regions are higher • Long Island= 4. 8% and Finger Lakes=3. 4% – 34, 199 jobs are Do. D contract dependent employment (18, 300 direct, 15, 800 indirect) – $117 million in tax revenue for state and local governments – Manufacturing Sector dominates • FY 2010 -FY 2017 68% of Do. D Contracts • Top of the list is aerospace products and parts manufacturing

Defense Industry Overview Takeaways Electronic and communications equipment • FY 2010 - FY 2017 26% of Do. D contracts in NY (nation=16%) Research and Development • FY 2010 - FY 2017 19% of Do. D contracts in NY (nation=12%) Drones, Sensors, and Automation • Increase in contracts performed by product service code: 1) aircraft, fixed and rotary wing 2) radio and tv equipment airborne 3) electronic countermeasures and quick reaction equipment 7

Defense Industry Assistance (DIA) Grant CURRENT STATUS - FUNDING • Have engaged 260 Manufacturers for the Defense Diversification Workshops • 8 Companies selected for funding assistance 7 - DIA Grants up to $50, 000 1 - Stage I Funding: up to $20, 000 • 2 Funding Deadlines Approaching 8

Defense Industry Assistance (DIA) Grant CURRENT STATUS - FUNDING Defense Industry Assistance Grant – October 24, 2018 (additional dates as required until funding is exhausted) – Multiple awards up to $50, 000 – For non-profits working with an eligible Do. D focused manufacturer on a project that helps the manufacturer diversify into a commercial market space 9

Defense Industry Assistance (DIA) Grant CURRENT STATUS - FUNDING RFP for Defense Diversification Assistance – December 14, 2018 – Multiple awards up to $70, 000 (Stage I - $20, 000; Stage II - $50, 000) – For eligible Do. D focused manufacturers working with a non-profit that can assist them with diversification planning and market strategy – Only Stage I Applicants that complete their projects will be eligible for Stage II funding 10

Defense Industry Assistance (DIA) Grant CURRENT STATUS - FUNDING Examples of Projects: Designs and manufactures flexible PV solar structures and wearable products. The company has enlisted the help of RPI’s Center for Automation and Technology Systems (CATS) to assist them with the redesign and redevelopment of an automated tent structure, originally a product for the DOD market, to meet the demands of the commercial market (DIA Grant). The automated tent structure would minimize the time and effort needed to set up such a shelter. They are looking to incorporate solar power into future redesigns to power the setup/breakdown or small electronics. 11

Defense Industry Assistance (DIA) Grant CURRENT STATUS - FUNDING Designs, develops, manufactures, and markets advanced nanoprobing solutions for imaging, electrical measurement, and testing of thin film materials and semiconductor devices. They are partnering with Cornell University, the Sandia National Laboratory, and the Brookhaven laboratory on the Phase I Grant. They are developing a next generation nanoprobe for identifying defects during semiconductor device manufacturing which would allow them to find defects within multiple layers at a more efficient rate enabling them to target markets which use microscopy for testing quality of production. 12

Defense Industry Assistance (DIA) Grant CURRENT STATUS - FUNDING PHOEBUS OPTOELECTRONICS LLC Custom designs and commercialization of advanced light and radiation controlling and detecting materials and devices (i. e. Imaging, Sensing, Detecting, Filtering). They have partnered with Clarkson University on their DIA Grant. The company is redesigning a portable biosensor device in two ways: replacing the currently used glass substrate with a nanofabricated plasmonic metasurface, and making the device suitable for commercial markets outside of the DOD applications. 13

Defense Industry Assistance (DIA) Grant CURRENT STATUS- WORKSHOPS Past August 2018 - Saratoga, NY • 16 Resources, 14 Companies attended • 75 connections made* • 30 projects with high potential for collaborations* *Reported by resources attending 14 Upcoming November 13, 2018 Rochester, NY January 2019 - TBD

DOD Cybersecurity Grant OVERVIEW • ESD awarded Do. D/OEA Cyber Assistance Grant in June 2018 • Assist NY-based Do. D focused manufacturers with cybersecurity requirements detailed in DFARS/NIST 800 -171 • Compliance with DFARS/NIST 800 -171 will reduce the risk of companies and their suppliers losing defense industry business due to non-compliance 15

DOD Cybersecurity Grant CURRENT STATUS • MVCC-AIM awarded as sub-recipient October 2018 • Their goal is to assist more than 30 Do. D focused companies across New York State with cybersecurity compliance • Projects will consist of assessments, in some cases implementations, and a final assessment with a formal letter of compliance, if passing • MVCC-AIM will also be hosting cybersecurity workshops and training (stay tuned!) 16

DOD PROGRAM FUTURE OUTLOOK • Continue to engage and grow the NY State Defense Ecosystem • Identify new technologies and products that will be of interest to the Do. D • The Market Study projects that an uptick in defense spending which will be attracting companies that want to break into the defense industry or increase their presence 17

Link and Contact • www. esd. ny. gov/manufacturing-and-defense-grants • Deanine Lena, Program Manager deanine. lena@esd. ny. gov • Christopher Medve, Diversification Specialist christopher. medve@esd. ny. gov 18