1. Chris Medve, Empire State Development
NYSTAR DoD Program
Chris Medve, Empire State Development

2. CONTENTS Defense Industry Overview Defense Industry Assistance Grant
Market Study
Defense Industry Assistance Grant
Current Status
Workshops and Funding
DoD Cybersecurity Grant
DoD Program Future Outlook

3. Defense Industry Assistance (DIA) Grant
OVERVIEW
ESD awarded DoD DIA grant in April of 2017
Assist NY - based DoD 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

4. 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 DoD Supply chain
Outreach and Engagement
DoD focused small and mid-sized manufacturers
Company Assessments
Promote Collaborations and Projects
Defense Diversification Workshops
Funding Opportunities

5. Defense Industry Assistance (DIA) Grant
OVERVIEW
s, Calls, Visits to:
manufacturers with DOD contract revenue
DoD 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 FuzeHub matching calls
assess diversification potential and investment required
access state-of-the-art facilities to test new raw materials and products
build prototypes and improve manufacturing efficiencies (development & redesign)
expand into new markets to compete beyond DOD
train workers as necessary to support new market entry, including export training

6. 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
a decline of approx. $3 billion from $9.5 billion in FY 2010
At .4%, DoD 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 DoD contract dependent employment (18,300 direct, 15,800 indirect)
$117 million in tax revenue for state and local governments
Manufacturing Sector dominates
FY2010-FY % of DoD Contracts
Top of the list is aerospace products and parts manufacturing
Drones are named instead of all aircraft because there was a marked decrease in the following:
defense aircraft (operational and engineering)
Miscellaneous aircraft accessories and components

7. Defense Industry Overview
Takeaways
Electronic and communications equipment
FY FY % of DoD contracts in NY (nation=16%)
Research and Development
FY FY % of DoD 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
Drones are named instead of all aircraft because there was a marked decrease in the following:
defense aircraft (operational and engineering)
Miscellaneous aircraft accessories and components

8. 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
Need to get approval from companies to share and what can/can’t be shared

9. 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 DoD focused manufacturer on a project that helps the manufacturer diversify into a commercial market space
1- DIA Grant– Projects: develop new products or modify existing products, acquire software, hire consultants to retrofit/retool products or assess manufacturing efficiencies to improve product competitiveness
2- RFP for DDA—Projects:
Stage I-Can include market research and analysis, market/business strategy and planning, research and development which result in a diversification plan and/or strategy for Stage II- focus product development and redevelopment and/or on new/advanced technology
Stage II-implementation of Stage I strategy and planning

10. 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 DoD 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
1- DIA Grant– Projects: develop new products or modify existing products, acquire software, hire consultants to retrofit/retool products or assess manufacturing efficiencies to improve product competitiveness
2- RFP for DDA—Projects:
Stage I-Can include market research and analysis, market/business strategy and planning, research and development which result in a diversification plan and/or strategy for Stage II- focus product development and redevelopment and/or on new/advanced technology
Stage II-implementation of Stage I strategy and planning

11. 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.
Need to get approval from companies to share and what can/can’t be shared

12. 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.
Need to get approval from companies to share and what can/can’t be shared

13. 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.
Need to get approval from companies to share and what can/can’t be shared

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

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

16. DOD Cybersecurity Grant
CURRENT STATUS
MVCC-AIM awarded as sub-recipient October 2018
Their goal is to assist more than 30 DoD 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!)

17. 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 DoD
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

18. Link and Contact www.esd.ny.gov/manufacturing-and-defense-grants
Deanine Lena, Program Manager
Christopher Medve, Diversification Specialist