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Pentagon Spending in New Hampshire

June 15, 2015 | Report

By William D. Hartung

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NEW HAMPSHIRE

SUMMARY:  MILITARY SPENDING IN NEW HAMPSHIRE

 

GENERAL

New Hampshire ranked 38th (USASpending) in the country in terms of Pentagon awards during FY2014, receiving $1.2 billion.  It received $853 in contract awards per capita in FY2014, which ranked 16th among the 50 states. Comparatively, New Hampshire received $1.5 billion in FY2013. As New Hampshire’s GDP (BEA) was $68.7 billion in FY2013, the most recent year for which state GDP figures are available, DoD contracts accounted for approximately 2.2% of New Hampshire’s GDP in 2013. 

 

DEFENSE CONTRACTORS

1) BAE Systems Electronics Division- Headquartered in Nashua, NH. It employs about 12,500 people worldwide, and 4,600 in New Hampshire. Its plants produce defense electronics for flight and engine control, electronic warfare, surveillance, communications, and power and energy management.

2) Kollsman Inc.- Headquartered in Merrimack, NH. Employs 550 people who design and manufacture avionics, electro-optic systems for military markets.

3) Insight Technology Inc.- it’s Warrior Systems and Insight Operations are based in Londonderry, NH. Develops and produces advanced night vision and electro-optical systems and components. Currently, it employs 761 people.

4) Red River Computer Co.- Corporate headquarters are in Claremont, NH. It employs 50-99 people. Provides information technology solutions to the federal government,

MILITARY BASES

1) Pease ANGB (900 personnel) – Home to the 157th Air Refueling Wing of the New Hampshire ANG

2) Portsmouth Naval Shipyard (4,000+ personnel) – One of four remaining naval shipyards in the national; BRAC closure was recommended and then overturned in 2005.  Primary mission is the overhaul, repair and modernization of Los Angeles-class submarines. 

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TOP PENTAGON CONTRACTORS IN NEW HAMPSHIRE 

BAE Systems PLC- $619.3 million (2014, USASpending

The Electronic System Division for BAE Systems is headquartered in Nashua, New Hampshire. The Division “produces commercial and defense electronics for flight and engine control, electronic warfare, surveillance, communications, and power and energy management”. (BAE Systems)

The ES sector spans commercial and defense electronics with its engineering and manufacturing functions mainly in the United States, the United Kingdom, and Israel. (BAE Systems)

The Electronic Systems headquarters employs roughly 12,500 people worldwide with about 4,600 employees at sites in Nashua, Merrimack and Hudson. (Union Leader)  

Former BAE Systems CEO Walt Havenstein said he wants to create 25,000 new jobs in New Hampshire by the summer for 2017 and that he thinks “it’s what some may call ambitious, but I think it’s a very achievable goal”. (Union Leader, 8/4/2014

BAE Systems Electronic Systems Division COO Tom Arseneault assumed the Division’s role as President January 1, 2015, while remaining the COO and a member of BAE Systems’ executive committee. (Washington Business Journal

Their Electronic Systems Division in 2014 earned $2.62 billion in sales 79% of the sales were defense related, with only 21% commercial. (BAE Systems)

Contracts awarded recently:

BAE Systems was awarded a $447,051,113 modification to a contract to increase “the ceiling by the announcement amount for the acquisition of Common Missile Warning Systems and associated parts”. Completion date is expected to be September 29, 2016 and the Army is contracting the activity. (DoD, 5/28/2014)  

BAE Systems was awarded a $221,000,000 contract for F-16 support equipment and related services. Work will be performed in Nashua, New Hampshire and expected to be completed Feb. 4, 2020. The Air Force is contracting this activity. (DoD, 2/9/2015)

BAE Systems was awarded a $7,672,503 modification “for an engineering change proposal for the Digital Electronic Warfare System”. Work will be performed in Nashua, New Hampshire and is expected to be completed by Nov. 30, 2018. The Air Force is the contracting activity. (DoD, 9/10/2014

BAE Systems was awarded a $70,100,000 contract for systems procurement with the estimated completion date Jun. 11, 2016. The work location is to be determined and the Army is the contracting activity. (DoD, 6/12/2014)

BAE Systems is being awarded a $45,098,569 modification to a contract for the procurement of 1,601 advanced precision kill weapon systems. 70 percent of the work will be performed in Nashua, New Hampshire and is expected to be completed in September 2016. The Naval Air Systems Command is the contracting activity. (DoD, 12/29/2015)

Kollsman Inc.- $30.2 million (2014, USASpending

Headquartered in Merrimack, NH and owned through Elbit Systems of America, a subsidiary of Elbit Systems. (Wikipedia)

The Merrimack, NH Operations is a preferred supplier of Northrop Grumman Aerospace Systems and has around 550 employees. (Airframer profile)

Kollsman Inc. “designs and manufactures avionics, electro-optic systems for commercial and military markets”. (Bloomberg)

Contracts awarded recently: 

Kollsman Inc. was awarded a $73.4 million contract to build 1,500 hand-held, laser-guided rand-finders. The project completion date is expected for 2020 with all the work done in New Hampshire. The contracting service was the Navy. (Union Leader, 3/16/2015)

Kollsman Inc. was awarded a $56,887,669 contract for the repair of four weapons repairable assemblies to support the AH-1W helicopter. The work will be performed in Merrimack, NH and is expected to be completed July 2019. NAVSUP Weapons Systems Support is the contracting activity. (DoD, 6/17/2015)

Kollsman Inc. wins a $3,572,182 modification contract for fire control equipment by the US Marine Corps. (Bloomberg, 4/9/2015)

Insight Technology Inc.- $4,348,393 (2014, USASpending

“L-3 Warrior Systems is a world leader in the development and production of advanced night vision and electro-optical systems and components. Warrior Systems supports all branches of the United States military, including elite military units, law enforcement, first responder agencies, allied nations, and consumers by developing and delivering laser aiming and illumination devices, laser rangefinder systems, handheld and clip-on thermal imaging and fusion systems, holographic weapons sights, and advanced components.” (L-3 Warrior Systems

Warrior Systems and Insight Operations are based in Londonderry, NH. (L-3 Warrior Systems)

List of military Warrior Systems products here

Last May 13% of the branch’s New Hampshire workforce lost their jobs due to a decreased demand “for certain military products”. The company now has 761 employees. (Union Leader, 5/1/2014

Contracts awarded recently:

L-3 Communications Corp. was awarded a $49,500,000 contract for binocular night vision devices to provide “enhanced surveillance, identification, recognition, and detection in all light and weather conditions”. Work will be performed in New Hampshire and is expected to be completed by January 2020. The Naval Surface Warfare Center is the contracting activity. (DoD, 2/4/2015)

L-3 Communications Corp. was awarded a $12,449,000 contract for spare parts for night vision goggles. Work will be performed in Londonderry, New Hampshire, and is expected to be completed by March 2018. The Naval Surface Warfare Center is the contracting activity. (DoD, 3/15/2013)

Red River Computer Co.- $148.7 million (2014, USASpending

Red River, established in 1995, is a leading provider of information technology solutions to the federal, state, and local government, higher education, and the health care marketplace.

Corporate headquarters are in Claremont, NH while the company has offices throughout the United States. (RedRiver)

The company employs a staff of approximately 50 to 99 employees. (Manta)

Contracts awarded recently: 

Red River Computer Co. was awarded a $6,900,000,000 contract along with multiple other contractors for Network Centric Solutions-2 (NETCENTS-2). The location of the work is unknown. The Air Force is the contracting activity. (DoD, 8/26/2013)

MILITARY BASES

Pease Air National Guard Base (Air National Guard

Home to the 157th Air Refueling Wing of the New Hampshire ANG.

Called on to help with ice storms, flooding, and other situations. 

Provides air fueling support to United States Air Force, Navy, Marines, and allied nation aircraft. 

Current base population is 380 full-time military personnel and a “monthly surge” of up to 950 military personnel. (Wikipedia)

Portsmouth Naval Shipyard (Portsmouth Naval Shipyard

Employs approximately 4,700 civilian employees with about 100 naval officers and enlisted personnel assigned to the shipyard. 

Shipyard Commander Captain William Greene stated that “we will grow our workforce from 4,700 to 5,200 civilian employees”. (Portland Press Herald)

It is one of four remaining naval shipyards in the nation.

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