Local companies snag defense contracts

metro mode, 11/29/2007

We've seen the future of diversified economy... and it's tanks?

Detroit companies are giving new life to the nickname "arsenal of democracy" with a handful of defense contracts for hefty amounts - Sterling Heights-based General Dynamics Land Systems has scored an $89 million contract to upgrade the 240 M1A2 Abrams tanks, and Automation Alley has gotten two grants that to help match businesses with military needs.

"These programs fit our mission because overall, the goal is to turn auto assets into defense assets," says Charlie DeVries, director of government affairs at Automation Alley. "The two programs focus on early stage research and development and procurement opportunities."

A grant already in place, for $300,000, enables small businesses to work with the Army Automotive Center. The other program, funded by a $2 million grant, is geared toward matching army contacts with suppliers who can produce obsolete parts.

"(The U.S. Army Tank-Automotive Research, Development and Engineering Center) maintains over 3,000 weapons system, keeps them in place for 30 years or more," he says. "The original suppliers may not want to supply parts for that long... these are critical parts they are having difficulty finding suppliers for."

Part of Automation Alley's mission, DeVries says, is to teach local businesses how to navigate a federal contract.

"We need companies willing to build relationships with the army, companies that use rapid prototyoping and are able to meet form, fit and function requirements of the military," he says. "With the deployment of most of our ground vehicles overseas, this is a problem that's only expected to grow - and the parts obsolescence issue is not just affecting the Army but all branches of the military."

Bad news for the military, good news for Michigan.

Source: Charlie DeVries, Automation Alley
Writer: Nancy Kaffer

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