Defense Contracting

Data From Top Ten Contracts

FY09 Contract

Dollars Obligated

Est. # of Employees

RRC-MRR (Construction)

$89,465,447

210

JOC (Construction)

$49,027,312

75

JRC (Dining facility, Central Issue, Custodial Recycle Services)

$7,019,617

600

CHESS (Info Tech. Supplies)

$6,868,396

0

RRB Inc (Packing and Crating)

$2,758,320

5

Omega QSE

$2,134,550

20

Guifoyle (Ambulance Service)

$1,797,260

4

PTL (Roofing)

$1,737,835

30

Wright & Wright (supply heavy equip.)

$1,726,000

0

Canon USA (Copier Services)

$1,179,005

1

Source: Industry Profile – MICC DOC Fort Drum FY09 and FY10.

Data From Top Ten Contracts

FY10 Contract

Dollars Obligated

Est. # of Employees

JOC (Construction)

$22,785,754

30

JRC (Dining facility, Central Issue, Custodial Recycle Services)

$13,380,710

130

RRC-MRR (Construction)

$13,239,963

400

CHESS (Info Tech. Supplies)

$3,550,369

0

North Operations and Maintenance

$2,758,320

17

Wireless Services

$2,368,580

0

Guilfoyle

$1,851,434

4

Omega QSE

$1,650,104

15

Divita Enterprises (Lodging)

$1,354,080

0

US Military Corp (Supply Road Salt)

$1,318,000

0

Source: Industry Profile – MICC DOC Fort Drum FY09 and FY10.

FY09

Dollars Obligated

GPC Purchases

27391 Actions

$18, 194,710

FY10

I Oct 2009 – 19 Feb 2010

Dollars Obligated

GPC Purchases

8739 Actions

$5,772,207

Source: Industry Profile – MICC DOC Fort Drum FY09 and FY10.

The Drum Country region has long been defined by Fort Drum, the fourth largest military base in the nation. The base, the personnel stationed there, their spouses and the many civilians working at the base, are significant contributors to the region’s economy. Today, a confluence of changes at both national and regional levels is providing new opportunities to grow the regional economy and support defense contracting industry.

In recent years, the US Department of Defense (DoD) has shifted to a national policy of greater dispersion in originating suppliers, intensifying efforts to outsource work to private industries and increase purchases from the private sector. Today, the DoD procures $200 billion a year of goods and services from the private sector–and Drum Country is ideally situated to take advantage of this shift. As military equipment and systems continue to evolve, changes in the systems and methods used to manufacture and support these changes will open more opportunity.

From our strong telecommunications infrastructure to our evolved support system industries, deep labor pool and key geographic location, Drum Country is becoming a strong player in the defense contracting industries world. This is not just luck–the Ottawa Valley, a center for information technology and communications firm, is just across the St. Lawrence Seaway, and there are positive economic factors encouraging firms from that area to open operations in the Drum Country region: lower taxes and energy costs, broader distribution to US markets, a deep labor pool and expanded contracting opportunities.

Some of Drum Country–and Fort Drum’s–major economic opportunities include:

  • Fort Drum’s role as purchaser of local and national goods
  • Fort Drum’s role as a magnet for defense activities that benefit from proximity to a large military base
  • Fort Drum’s role as a unique asset, providing ideas and even a testing ground for military-related product development and testing

Fort Drum: Purchasing Agent

Recent economic studies show Fort Drum as a major purchasing agent:

  • One preliminary estimate showed $187 million in Army contracts awarded to Tri-County firms in FY2005–and $95 million of that for base operations and maintenance.
  • Corps of Engineers spending in the Tri-County area was $38 million, most or all of which was likely for construction activities at the base.
  • Spending is expected to continue its trend in increasing year over year.

Fort Drum: Magnet for Contracts

Based on an analysis of FY2005 Fort Drum data, it is estimated that firms in the Drum Country region received $90 million in Army contracts not directly related to activity at Fort Drum–meaning the Fort is a magnet for spending on non-base related defense activities (i.e., DoD contracting opportunities), particularly for Army spending. In fact, in 2005, Army contracts for the region accounted for:

  • 91% of the $199 Million in DoD contracts awarded to Jefferson County firms
  • 88% of the $214 million in DoD contracts awarded to North Country firms

As Army spending is projected to continue to increase, and as Fort Drum continues to be a magnet for contracts–particularly Army contracts–businesses in Drum Country will continue to see increased opportunities. Fields estimated to show continued growth in contract opportunities in the region include:

  • manufacturing
  • construction
  • services provided to the base
  • information technology

With today’s higher energy costs, Drum Country’s competitive electric, water and natural gas costs and capacity alone make a compelling case for the region. A Drum Country location strategically positions you within a day’s drive of New York, New Jersey, Toronto and Montreal.

Water and Wastewater: Grow with the Flow

The Development Authority of the North Country (DANC) provides water and wastewater service to Fort Drum and water to Western Jefferson County while providing contract operations and maintenance services to Drum Country. In eastern Jefferson County, the principal source of water and wastewater services is the City of Watertown Municipal System. They City’s Water Plan is rated at 15 million gallons per day.

Business Incentives: Helping Contracting Businesses Profit

Whether you are a start up or expanding business, Drum Country can help you access the following types of incentives:

  • Workforce training programs
  • Real property tax and investment incentives
  • Energy and power discount programs
  • Grants and low interest loan programs

Electricity: Competitive Prices and Energy Efficiency Rebates

National Grid delivers electricity to most of Drum Country, and customers can purchase electricity commodity through third party marketers or brokers.

New York power Authority is the largest state public power utility in the US, a not-for-profit, public benefit authority that produces some of North America’s least expensive electricity. It also operates a transmission system to public and private customers.

The Massena Electric Department is a not-for profit electric utility owned by the Town of Massena. Their service is ranked among the highest nationally by leading indicators and electricity rates for business and resident in the lowest 10% nationally.

Telecommunications: Connectivity with Reliability

Open Access Telecom Network (OATN), completed in 2003, is a carrier-class telecommunications network serving Drum Country and connecting the region to co-location facilities in Syracuse. The OATN is comprised of about 750 miles of fiber optic cable and 14 central offices which contain the electrical and optical equipment that power the network. System characteristics include:

  • Carrier class network reliability
  • TDM based DS1, DS3 and OC-X
  • 10 Mbps, 100 Mbps and Gigabit Ethernet connection speeds, as well as virtual local area networks
  • 24×7 network monitoring and support
  • Redundant connectivity
  • Point-to-point or ring configurations
  • Fast provisioning

OATN is managed by the Development Authority of the North Country.

Major carriers including Verizon and TimeWarner Cable also have fiber optic networks throughout Drum Country. Several wireless broadband providers offer services to more remote areas of the region.