Profile of Pentagon Spending in Massachusetts

William Hartung, Center for International Policy, December 2012

Note: These profiles were assembled by Natalie Peterson, Daniel Resnick, and William D. Hartung

GENERAL

Massachusetts is 6^th in the country in Pentagon prime contract awards, receiving more than $11 billion in FY2011. It is 9^th in the country for $1,730.54 in contract awards per capita.  Prime Pentagon spending accounted for 3.2% of Massachusetts’s overall GDP in 2011.

MILITARY BASES

1)  Hanscom AFB (nearly 5,000 personnel) – An Air Force Life Cycle Management Center (AFLCMC) for Air Force Materiel Command (AFMC), providing services for 125,000 over a seven state region

2)  U.S. Army Soldier Systems Center – R&D and management of soldier items, in order to be a one-stop soldier support organization

CONTRACTORS

Raytheon – 12,000 employees, corporate headquarters, and division headquarters for the Integrated Defense Systems division are in MA.  Recent contracts for NSN’s for Patriot Missile System and electronic equipment

General Electric – Performs engine assembly, development, & testing; and produces parts and combustors for various aircraft

Massachusetts Institute of Technology – MIT Lincoln Laboratory is a DoD R&D laboratory primarily working on sensors, information extraction, communications, and sensing and decision support

General Dynamics – Pittsfield facility expected to hire 500 between 2011-6 for work on Littoral Combat Ships.  Taunton facility under a nearly $3 billion contract through 2013 for Common Hardware Systems

Charles Stark Draper Laboratory – Works on guidance, navigation, and control systems; under contract to provide materials for the Trident II Guidance System

MASSACHUSETTS MILITARY BASES

*Note: Aug. 2012 report on “Economic Contribution Analysis and Overview of MA Military Installations, for further reference provides further/other information…

1 – Hanscom AFB – (2,724 total in 2009:  991 active duty and 1,733 civilian)

 

• Mission:  “Hanscom AFB manages the development and acquisition of electronic command and control systems. These systems gather and analyze information of potentially hostile forces, enabling commanders to make quick decisions and rapidly pass them on to their forces. Hanscom helps to direct the muscle of America’s air-power to the right target at the right time.”
• “Today, acquisitions excellence is Hanscom’s primary mission. Hanscom is currently an Air Force Life Cycle Management Center (AFLCMC) for Air Force Materiel Command (AFMC), providing operating support and services to the Battle Management and C3I&N Directorates and the 66th Air Base Group.  Hanscom serves 125,000 people in a seven state region with over 300 GSU’s.” (DOD, Hanscom AFB)
• Numbers as of Dec. 2011, posted Aug. 2012:  Total estimated economic impact: ~$6.2 billion
  • Primary Hanscom jobs:  5500+
  • Secondary jobs created: 14,500+ (Hanscom fact sheet)

 

Community:

• Hanscom AFB is in Middlesex County, MA, and touches the towns of Bedford, Concord, Lincoln and Lexington.  Hanscom is approximately 20 miles northwest of Boston, MA.
• DOD:  “Active Duty 931; Civilians 1,767; Contractors 2,086; Total Workforce 4,784 … Base personnel live in six states.”

 

Hanscom AFB website

2 – Natick – (1,422 total in 2009:  82 active duty and 1,340 civilian)

• “The U.S. Army Soldier Systems Center (SSC), located in Natick, Massachusetts, is the Army’s one-stop Soldier-support organization.  SSC is responsible for researching, developing, fielding, and managing food, clothing, shelters, airdrop systems, and Soldier support items.”
• “NSSC’s goal is simple: Provide America’s Soldiers with the best equipment in the world. To achieve this goal, the Natick team has consolidated full life-cycle management of Soldier items into a one-stop, Soldier support organization.” (Natick)  SSC partners include:
  • SSC’s Science and Technology Centers:   Natick Soldier Center
           U.S. Army Research Institute of Environmental Medicine
           U.S. Navy Clothing and Textile Research Facility
           U.S. Coast Guard Clothing Design and Technical 
  • Program/Project/Product Management: 
           Product Manager – Force Sustainment Systems
           Elements of Product Manager – Clothing & Individual Equipment  (military.com)
• NSSC estimated to contribute $4.4 billion+ to the state’s economy (AP article, June 2012)

                Community:

• The NSSC is located in Natick, MA.  Natick has a population of 33,000, is 15 miles west of Boston, and is considered part of the Greater Boston area.

3 – Boston – (1,033 total in 2009:  502 active duty and 531 civilian)

• Boston Military Entrance Processing Command (MEPS) is one of 65 stations of the United State Military Entrance Processing Command (USMEPCOM).
  • “The mission of USMEPCOM and the 65 MEPS stations is to process individuals for enlistment or induction into the armed services, based on DoD-approved peacetime and mobilization standards.” 
  • “Three primary areas are considered in determining applicants’ qualifications for enlistment:  Aptitude for military service, Physical qualification, Background evaluation screening”  (MEPS)
• Boston MEPS has enlistment responsibility for 14 counties in Massachusetts and five counties in New Hampshire and all of Rhode Island.                                 
• Boston MEPS lists facilities and security, meals and lodging, medical support, payroll (military and civilian), supplies and services, and testing support as its expenditures.  Identified impact to local area listed as $4,705,649 (MEPS financial impact info)

Community:

• Boston MEPS is located within Boston, on the entire fourth floor of an office building.

Boston MEPS website

MASSACHUSETTS CONTRACTORS

1 – Raytheon Company — $4,471,720,000 in 2009

• “Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services.”  71,000 employees worldwide, $25 billion in 2011 sales. (Raytheon)
• Corporate headquarters are based in Waltham, MA, since 2003
  • 5,302 employees at this branch                (Jigsaw company profile)
  • Or 450.                (Manta company profile)
• Headquarters for the Integrated Defense Systems division is in Tewksbury, MA.
  • “Its broad portfolio of weapons, sensors and integration systems supports its global customer base across multiple mission areas including air and missile defense systems, missile defense radars, early warning radars, naval ship operating systems, robotics and other advanced technologies.” (Raytheon)
  • There are also branches in Andover, Billerica, and Woburn, MA.
    • 100 employees at Andover location. (Manta company profile)
• There is a branch of Raytheon Technical Services in Burlington, MA.
• Branches of Network Centric Systems in Marlborough and Cambridge, MA.
• Also facilities in Bedford, Lexington, Marlborough, and Sudbury.
• 2006 and 2010 articles: 12,000 employees in MA (Boston business journal, 9-25-06)
• 2010 article on importance of Raytheon specifically to MA economy: “Total defense-related economic activity in Massachusetts increased from $10.6 billion to $26 billion between 2001 and 2009. Payrolls generated by Bay State defense companies now total a record $8.93 billion……” Raytheon does business with 1750 in-state suppliers                (Eagle Tribune, 12-7-10)

Contracts awarded recently:

• In FY2011, Raytheon was awarded $4,032,964,093 for DoD-related work in MA.  This was 95.6% of the federal contracts they received for work in MA.
• For Defense Logistics Agency:
  “Raytheon Company, Andover, Mass., was awarded contract SPRRA2-11-D-0012/P00001. This delivery order is for fifteen additional NSN’s being added to the basic firm fixed price, indefinite delivery and indefinite quantity contract with a maximum $37,607,589 in support of the Patriot Missile System. There are no other locations of performance. Using service is Army. The date of performance completion is May 1, 2014                “ (DOD, 9-30-11)
• For Missile Defense Agency:
  “Raytheon Company, Integrated Defense Systems, of Woburn, Mass., awarded of a cost plus fixed fee and firm fixed price contract modification to under contract # HQ0147-12-C-0006. The total value of this award is $27,399,020 increasing the total contract value from $336,625,457 to $364,024,477. Under this contract modification, the contractor will provide one electronic equipment unit and one cooling equipment unit. The work will be performed in Andover, Massachusetts for the electronic equipment unit and in Chesterfield, Michigan for the cooling equipment unit. The performance period is from Oct. 1, 2012 through Nov. 30, 2014. Fiscal 2012 procurement funds will not expire at the end of the current fiscal year. This is not a Foreign Military Sales acquisition.” (MIC.com, 9-28-12)
• List of FY2011 transactions

2 – General Electric Company — $1,758,268,000

• “GE Aviation is a world-leading producer of commercial and military jet engines and components as well as integrated digital, electric power, and mechanical systems for aircraft.” (GE Aviation)
• 2010 revenues: $17.6 billion.  Total worldwide employment: 39,000.  80+ locations worldwide
• Location in Lynn, MA:  manufacturing. (facilities)
  • Engine Assembly: F414, F404, T700/CT7, CF34-3A/B
  • Engine Development & Testing: CFE738
  • Rotating Parts & Spares: T700/CT7, CF34, CFM56-3, F414,LM6000, LM2500, LM2500+ Structural Frames, Cases and Nozzles (Compressor & LPT):T700/CT7, CF34, CFM56-3, CFM56-7, F414, F404, F110, CFE738
  • Combustors (All Engine Programs)

Contracts awarded recently:

• In FY2011, GE Aviation was awarded $1,535,731,829 for DoD-related work in MA.  This was 99.9% of the total federal contracts GE Aviation was awarded for work in MA.  [fedspending.org]
• “General Electric Aviation, Lynn, Mass., is being awarded a six-month extension of a performance-based logistics contract in the amount of $58,436,679 for repair, replacement, consumables support, and program support for the F414 engine used on F/A-18 E/F, and EA-18G aircraft.  Work will be performed in Lynn, Mass. (96 percent), and Jacksonville, Fla. (4 percent), and is expected to be completed by June 2011.  Funding is provided by Navy Working Capital Funds and contract funds will not expire before the end of the fiscal year.” (DOD, 1-6-11)
• “General Electric Aviation, Lynn, Mass., is being awarded an $8,831,994 order against a previously issued basic ordering agreement (N00019-09-G-0009) for the F404 Component Improvement Program to include engineering and engine system improvement support.  Work will be performed in Lynn, Mass., and is expected to be completed in December 2012.  Contract funds will not expire at the end of the current fiscal year.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.” (DOD, 2-13-12)

3 – Massachusetts Institute of Technology — $1,749,057,000

• MIT’s work with the DoD appears to be based primarily or solely at MIT Lincoln Laboratory, in Lexington, MA. 
• “As a Department of Defense Research and Development Laboratory, MIT Lincoln Laboratory conducts research and development aimed at solutions to problems critical to national security. […] The areas that constitute the core of the work performed at Lincoln Laboratory are sensors, information extraction (signal processing and embedded computing), communications, and integrated sensing and decision support, all supported by a broad research base in advanced electronics…Research at the Laboratory includes projects in air and missile defense, space surveillance technology, tactical systems, biological-chemical defense, homeland protection, and communications and information technology. The Laboratory takes projects from the initial concept stage, through simulation and analysis, to design and prototyping, and finally to field demonstration.” (MIT)
• The Lexington complex includes a microelectronics lab, optical systems test facility, antenna and radar cross-section measurements (RF) facility, integrated weather and air traffic control decision support facility, airborne test bed facility, polymer laboratory, environmental test laboratory, and machine shop.  The Lincoln Space Surveillance Complex is located in Westford, MA. (facilities)
  • For further overview of each “mission area” (e.g. “air and missile defense technology;” “tactical systems”), click here
• The lab employs ~3700 people, and about 1700 technical staff members work on “research, prototype building, and field demonstrations.” (employment)
• Note:  Apr. 2012 article: “MIT is awaiting congressional approval to build a significant new research facility at Hanscom AFB in Bedford, MA.” This facility would be run by Lincoln Laboratory and 3200 lab employees would transfer their work to the new facility instead. Plan was approved by DoD. (MIT release, 4-25-12)
• Great FY2011 annual report breaking down funding for each “mission area” for last 5 years, etc.  88.57% of Lincoln Laboratory’s research expenditures are funded by DoD — $714 million 

Contracts awarded recently:

• In FY2011, MIT was awarded $878,727,129 for DoD-related work in MA.  This was 98.8% of the total federal contracts MIT received for work in MA. (fedspending data)
• Although federal contracts seem difficult to find, a list of products/services sold in FY2011 provides some insight on government spending for MIT’s products. (fedspending) 

4 – General Dynamics Corporation — $1,150,447,000

• GD Advanced Information System facility in Pittsfield, MA. 
  • May 2011 article: GD has added 108 to facility; currently employs 1100 and expected to hire 500 new over five years for work on Littoral Combat Ships. (article)
• Jet Aviation in Boston/Bedford.  For overview of services, click here                                     
• GD Information Technology facility in Needham, MA
• GD Advanced Information Systems facility in Pittsfield, MA (GD annual report, 2011)
• Gulfstream Aviation (division of GD Aerospace) in Westfield, MA.  Located at Barnes Municipal Airport (BAF); corporate aircraft includes Hawker, Falcon, Challenger, Gulfstream (sites)
  • 100 employees at this facility
• GD C4 Systems facility in Taunton.
  • Employs around 1000 people. Several sources cited that about 100 workers may be laid off in the summer of 2012.   Sen. Brown frequently quoted regarding layoffs. (Boston Globe, 6-28-12)
• GD AIS was named as a bronze winner for 2011 Team MA Economic Impact Awards, awarded annually by MassEcon, for outstanding contribution to MA economy, due to its hiring 220 new employees since 2010 and $12.6 million facility upgrade. (article, 10-7-11)
• Note: GD is the second “top defense contractor” in the state, according to example Boston Business Journal article, 8-3-12 (referring primarily to the number of employees and overall money distribution)
• Annual report
• GD has 3,000 workers in MA in total (Boston Business Journal, 8-3-12)

Contracts awarded recently:

• In FY2011, GD was awarded $1,326,086,479 for DoD-related work in MA.  This was 99.89% of the total federal contracts GD was awarded for work in MA. (fedspendingdata)
• “General Dynamics Advanced Information Systems, Inc., Pittsfield, Mass., is being awarded a $95,956,445 cost-plus-incentive-fee, cost-plus-fixed-fee, fixed-price incentive contract to provide fiscal 2012 and fiscal 2013 United States and United Kingdom Trident II Strategic Weapons Systems SSBN Fire Control Subsystem, SSGN Attack Weapons Control Subsystem, and United States SSBN replacement and United Kingdom SSBN successor common missile compartment engineering support.  This contract contains options, which, if exercised, will bring the contract value to $$225,038,227.  The work will be performed in Pittsfield, Mass., and is expected to be completed Sept. 30, 2012.  With options exercised, the work will continue through April 14, 2016.” (DOD, 11-23-11)
• “General Dynamics C4 Systems, Inc., Taunton, Mass., was awarded on Oct. 19 a $187,000,000 firm-fixed-price contract.  This is a firm-fixed-price modification to contract DAAH01-03-D-0029 to raise the ceiling from $2,498,000,000 by $187,000,000 to $2,685,000,000.  Items to be procured under this contract are ‘Common Hardware Systems – 3.’  Work is to be performed in Taunton, Mass., with an estimated completion date of May 30, 2013.” [DOD, 10-22-10]

5         – Charles Stark Draper Laboratory — $437,214,000

• An independent, non-profit R&D organization founded by an MIT professor and separated from the university since 1973.  “Focused on the design, development, and deployment of advanced technological solutions.  Our expertise includes the areas of guidance, navigation, and control systems; fault-tolerant computing; advanced algorithms and software solutions; modeling and simulation; and MEMS and multichip module technology.” (Draper)
• Headquarters/primarily based in Cambridge, MA, and adjacent to main campus of MIT.
• The U.S. Navy Integrated Repair Facility is located in Pittsfield, MA.
  • About 1300 employees nationwide (April/May 2009 article)

Contracts awarded recently:

• In FY2011, Charles Stark Draper Laboratory was awarded $397,592,654 for DoD-related work in MA.  This was 97% of the federal contracts Charles Stark received for work in MA. (fedspendingdata)
• For the Navy: “Charles Stark Draper Laboratories, Inc., Cambridge, Mass., is being awarded a $120,818,538 modification (PE0003) under previously awarded firm-fixed-price, fixed-price-incentive, cost-plus-incentive-fee contract (N00030-11-C-0014) to provide Trident II (D5) Guidance System micro circuit wafers and Strategic Systems Programs alterations materials.  Work will be performed in Pittsfield, Mass. (83.5 percent) … Work is expected to be completed Dec. 31, 2015.” (DOD, 12-2-11)
• For the Army:  “Charles Stark Draper Laboratory, Cambridge, Mass., was awarded an $8,751,371 cost-plus-fixed-fee contract.  The award will provide for the services in support of the Joint Precision Airdrop System 2K.  Work will be performed in Cambridge, Mass., with an estimated completion date of July 23, 2017.” (DOD, 8-26-12)