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FULL REPRINT: The Department of the Air Force announced today the award of an engineering and manufacturing development contract valued at more than $3.5 billion for the KC-46A aerial refueler to Boeing Co. of Seattle, Washington.

The Air Force-led selection effort included experts from the larger Department of Defense community, including the office of the Defense Secretary's staff and independent review teams during each step of the process.

"Many factors were evaluated during the tanker selection process," said Secretary of the Air Force Michael Donley.

Selection "took into account mission effectiveness in wartime and life cycle costs as embodied in fuel efficiency and military construction costs," said Donley, emphasizing that both offerors met all the mandatory requirements.

"The thorough and transparent selection process was marked by continual dialogue with offerors to ensure the Air Force had a clear understanding of their proposals and the companies clearly understood the service's analysis of their offers," said Donley.

"Gen. Schwartz and I are confident in the fact that when our young pilots, boom operators and maintainers receive this aircraft, they will have the tools they need to be successful at what we ask them to do," Donley said.

"To the men and women of our Air Force, today's announcement represents a long-overdue start to a much-needed program," Donley said. "Your Air Force leadership, supported by others throughout the Department of Defense, is determined to see this through, and we will stand behind this work."

The program will deliver the first 18 aircraft by 2017. Basing decisions for the aircraft will take place over the next couple of years.

U.S. Department of Defense
Office of the Assistant Secretary of Defense (Public Affairs)
On the Web: http://www.defense.gov/releases/
Media Contact: +1 (703) 697-5131/697-5132
Public Contact: http://www.defense.gov/landing/questions.aspx
or +1 (703) 428-0711 +1

Tacoma-Pierce County Chamber members are offered a discounted rate of $150 for the day.

Egils Milbergs, Executive Director, Washington Economic Development Commission, shared at the Chamber's Military Affairs Forum, an overview of the latest economic impact report:  Washington State's Defense Economy.

Milbergs' presentation was not one-dimensional, as he cast the defense/military industrial sector within the global challenges between nations and economies.  His drill down thesis was how Washington State was going to be an economic winner in the 21st Century.

In exploring these economic dynamics, Milbergs didn't leave us with a question, but posed the actions for an initiative by the State in pursuing and achieving our economic goals.

The next step, deciding among ourselves and convincing our State's leadership of our challenges, our in-hand assets and our opportunities.

MILITARY AFFAIRS FORUM

Date & Time: WEDNESDAY, Oct. 13, 7:30 – 9:00 a.m.
Place: La Quinta Inn, 1425 E. 27th St., Tacoma 98421
Price: $13.00 pre-paid on or before Oct. 8
$15.00 pre-paid after Oct. 8
$20.00 walk-ins/at the door
Information: Monique Shields, (253) 627.2175
RSVP: DUE 12 noon, Oct. 11 (Monday)
Register: Online Link

Featuring:

Egils Milbergs, Executive Director, Washington Economic Development Commission
“The Impact of the Defense/Military Industry in Washington State”

Mr. Milbergs, Executive Director of the Washington Economic Development Commission, will present the recent report prepared by Berk and Associates for the WEDC: Washington State's Defense Economy: Measuring & Growing the Impact. The purpose of the report is to: 1) Create an updated analysis of the economic impact of Washington's bases and defense-relate economy; 2) Identify new and emerging opportunities for WA-based businesses based on trends in national defense strategy; and 3) Develop recommendations for a statewide economic development strategy building on the military presence and expanding Washington's share of national defense contracting.

The Washington Economic Development Commission is an independent, non-partisan commission charged by the legislature with the mission of creating a comprehensive statewide strategy to guide investments in economic development, infrastructure, workforce training, small business assistance, technology transfer and export assistance. The WEDC membership is comprised of business, labor, academic, associations and government leaders

The report is online at: http://www.wedc.wa.gov/Publications.htm should you wish to review it before the meeting.

ANNOUNCEMENTS

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2010-11 Calendar: as of Aug. 18, 2010

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Once, the military sector was said to represent a third of the economic activity in Pierce County. But it’s grown by one-third, 13,000 soldiers since that 2003 study.

No wonder that the Chamber’s delegation devotes a significant portion of its time during the annual Washington-to-Washington, D.C. trip. One special aspect of the Chamber’s defense agenda is the appointment and briefing within the Pentagon.

While previous years have made their marks in addressing critical community-installations needs, 2010 set a new benchmark. The Chamber’s delegation was hosted and briefed by Dr. Craig College, Deputy Assistant Chief of Staff for Installation Management, Office of the Assistant Chief of Staff for Installation Management. He was the right man at the right time.

New to the issue table, after having been out of the spotlight, is the need to replace JBLM’s aging wastewater treatment plant. “CH2M HILL’s wastewater engineers were pleased to work with JBLM public works staff in the assessment of their wastewater treatment plant and will continue to support our military as it looks for opportunities to improve infrastructure and better serve soldiers and their families,” said Kathy Hanna, Vice President, CH2M HILL.

Dr. College promised a quick follow-up to the need to replace that plant and suggested the Army should conduct a Utility Privatizitation study to determine the best course. “There are several reasons why this should be pursued—one is of the aging infrastructure, one is capacity and another is the nitrate/nutrient release that could proliferate into 'dead zones.' I encourage them to combine efforts with Pierce County to address the water quality in Puget Sound. And I encourage them to maybe consider partnering with the county as it is essential that the Army or Department of Defense move in the direction that is going to have the maximum benefit protection,” said Pierce County Councilmember Terry Lee.

Of course, the delegation again broached the need for replacement of the aging elementary school facilities on JBLM, owned primarily by the Department of Education, but serviced by the Clover Park School District. Jason Whalen, a council member from the City of Lakewood and attorney with the law firm of Eisenhower & Carlson, PLLC, was pleased with the opportunity to discuss the issue with officials at the Pentagon and with our congressional delegation. "I very much enjoyed the opportunity to continue the discussion of this important issue to our community. I left the meetings, confident that we had been heard. Following our trip, officials from the Office of Economic Adjustment visited JBLM to review the facilities at issue with JBLM, City and School District officials and staff. We are encouraged by the progress made to date," Whalen said.

The Chamber continued to pursue a final resolution of community impacts on the northern Clear Zone at JBLM-McChord Field. After contributions to purchase properties of willing sellers from funds provided by Pierce County, Washington State, Tacoma as matches to Lakewood, Dept. of Defense and Dept. of Air Force dollars, the joint basing action continues to cloud ownership responsibilities. Dr. College promised a renewed dialogue between the Army and Air Force to insure ownership resolution.

The dessert in the ala carte of issues was Lois Bernstein, Senior Vice President for Community Services, MultiCare Health System, who complimented Madigan Army Health Systems for its proactive community role.

This wasn’t just a single shot from the delegation. These issues were carried through in similar meetings with Cong. Norm Dicks, Chairman of the House Defense Appropriations Committee, Cong. Adam Smith who sits on the Committee on Armed Services, Subcommittee on Land and Air Forces, other members of Washington’s Congressional delegation and the Office of Economic Adjustment of the Dept. of Defense.

As in D.C. during the Chamber’s trip, the Chamber will continue its advocacy here on behalf of our local military installations and the branches of the armed services which share our community.

Written By Gary Brackett

In what would be one of the larger commercial construction projects in Pierce County - especially during this prolonged Great Recession, the Army & Air Force Exchange Service (AAFES), proposes to build a new/replacement commercial/retail center on Joint Base Lewis-McChord (JBLM).

Today, Joe Giuffreda, VP, Community Development Initiative, AAFES and Col. Tom Brittain, JBLM Garrison Commander, presented an overview of the project to the Chamber's Board of Directors. This briefing is an update of an earlier presentation to the Chamber's Military Affairs Committee some months ago.

Things have certainly progressed!

AAFES is looking at a market of 129,131 persons from JBLM military and families, civilians and retirees, primarily focused in its daytime, captive (on-base) population. The scope encompasses some 474,000 square feet allocted 58% AAFES, 36% 3rd party (local business and franchises) and 6% Garrison office space. Costs may be as high as $100 million from its corporate, not taxpayer, sources. (AAFES profits fund family services on JBLM.)

AAFES estimates between 850 and 1,000 jobs for construction, support services and stores operations. They also are planning for new business opportunities with new corporate stores, national and regional franchies and independent local businesses. Now, the private-sector businesses on base collect and pay to (unincorporated) Pierce County about $450,000 annually in sales tax revenue. That is projected to increase to several million dollars upon completion of the new lifestyles center.

AAFES will seek approval by its Board this August, with construction starting Fall 2011 and its completion in Summer 2013.

The Chamber Board referred a question of Chamber support to its Executive Committee. If you wish to know more about the project, or provide input into the decision-process of the Chamber's Executive Committee, contact Gary Brackett or 253-627-2175.

The Department of the Army announced today the planned activation of the National Center for Telehealth and Technology at Joint Base Lewis-McChord, Wash.

This stationing action represents an increase of eight military and 67 civilian authorizations and is expected to be completed in April 2010.

The mission of the National Center for Telehealth and Technology is to foster, develop, research, and deploy technology solutions for psychological health and traumatic brain injury and deliver relevant, evidence-based applications for our warriors, veterans, and their families.

This force structure action complies with the recommendations of the President's Commission on Care for America's Returning Wounded Warriors (Dole/Shalala Report) and the assistant secretary of defense (health affairs) memorandum, Defense Center of Excellence for Psychological Health and Traumatic Brain Injury.

Point of contact for this notification is Lt. Col. Lee M. Packnett, 703-614-2487, Office of the Chief of Public Affairs, Office of the Secretary of the Army.

Special Military Discount for the annual Washington Innovation Summit being held in Tacoma for the first time:

The Chamber testified again today about SB 5041, a bill encouraging Washington state contracts with veteran-owned businesses.  The Chamber's Gary Brackett said that over 87,000 vets are in Pierce County and that 1 in 7 vets own their own business, which means over 12,000 vet-owned businesses are here.

The testimony, before the House State Government & Tribal Affairs Committee, was very positively received by its Chair Representative Sam Hunt who predicted easy committee passage on to the House Ways and Means Committee.

Concern was raised over the fiscal note attached to the bill, estimating an expense of $60,000, although today's posting set costs at $35,000.  The original sponsor, Sen. Derek Kilmer said he has been working with state agencies to reduce costs and John Lee, Director of Washington's Department of Veterans Affairs, said he carried a very sharp pencil as they supported the bill too. 

Ahead will be action by the House Ways and Means Committee to determine its inclusion in the state budget.

The Chamber testified this afternoon for Sen. Derek Kilmer's SB5041, a bill to encourage advocacy in state government contracting and purchases from veteran-owned businesses (VOB).

In speaking, Gary Brackett, Manager, Business and Trade, Tacoma-Pierce County Chamber noted that the most recent Census of Business identified 2 million US firms with one or more US military vets as majority owners.  That's 12.2% of small businesses, of which over half (51.8%) operated from a home.  A quarter of vet-owned businesses had paid employees and 7% vet business owners were service-disabled.

Just last week, the Chamber referred a DoD prime contractor at Fort Lewis to the veteran-owned business registry of the Washington Department of Veteran Affairs.

The National Veteran Owned Business Association (NaVOBA) notes that vets (1 in 7) are twice as likely to own a business as the general populace (1 in 14). 

The Army announced today the planned activation of the 4th Battalion, 1st Special Forces Group.

This force structure action represents a net increase of 432 military authorizations and four civilian authorizations at Fort Lewis, Wash., and two civilian authorizations at Yakima Training Center, Wash.

Implementation of these changes is expected to be completed in August 2011.

With the best performance of any industry, the military-defense growth in Pierce County has been not just an economic stabilizer, but a growth engine.

Yesterday's presentation by David Bugher, Assistant City Manager, City of Lakewood to the Chamber's Military Affairs Committee, showed the community how economic development infrastructure can support an expansion of this industry here.

Recently, the City of Lakewood, commissioned a study of the Woodbrook Business Park area of American Lake Gardens. Primarily now a low-income residential area, the City is extending public infrastructure to an area that could support economic development. While thorny challenges still remain as to social equity in affordable housing supplies, the maximum development option could provide up to 3,500 jobs and an assessed present value of $33,044,900 increased up to $184,258,800.

Although in the early stages of Lakewood's evaluation of this part of their community, military contractors serving Fort Lewis are a definite potential target for recruitment for such a business park. The continuing development of the post generates a greater opportunity outside the fence and areas available within become more scarce.