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INTERIM REPORT TO THE GOVERNOR AND LEGISLATURE FEDERAL FACILITIES ADVISORY BOARD FEBRUARY 2011

INTERIM REPORT TO THE GOVERNOR AND LEGISLATURE … · proximity to Washington, DC. Although a critical factor, the State’s strong federal community – 58 non-military and 18 military

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Page 1: INTERIM REPORT TO THE GOVERNOR AND LEGISLATURE … · proximity to Washington, DC. Although a critical factor, the State’s strong federal community – 58 non-military and 18 military

INTERIM REPORT TO THE GOVERNOR AND LEGISLATURE

FEDERAL FACILITIES ADVISORY BOARD

FEBRUARY 2011

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Table of Contents

LETTER FROM THE CHAIRMAN

Page

EXECUTIVE SUMMARY

Overview 4-5

Primary Recommendations 6-7

Priority Matrix - Examining the Needs of the State’s Federal Community 8-10

National Cyber Security Center of Excellence 11

I. FEDERAL FACILITIES ADVISORY BOARD BACKGROUND & ACTIVITIES

A. Mission 12

B. Organizational Structure 12

C. Plan of Action 12

D. Workgroup Development – Participant & State Priorities 12

E. Advisory Board Activities 12-13

F. Federal Administration Outreach 13

II. FFAB 2010-11 INITIATIVES 1.1. Cyber Security 14-16

2.1. Technology Commercialization/Research to Acquisition 16-18

3.1. Workforce Development/Education 18-19

4.1. Federal Contract Procurement 19-21

5.1. Infrastructure/Regulatory 21-22

APPENDIX

A. Cyber Assets Survey

B. Federal Workforce Needs Assessment Survey

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Letter from the Chairman

Dear Governor O’Malley,

On behalf of the Federal Facilities Advisory Board (FFAB), we would like to thank you for

the opportunity to assist the State in advancing its exemplary reputation as a leader in federal

business attraction, research and development and advanced technological innovation. Through our

collaboration with the Department of Business and Economic Development (DBED), we are focused

on strengthening the state’s relationship with Maryland’s thriving federal community.

On January 11, 2010, you entrusted the Board with assisting DBED with the development of

recommendations that will ultimately move the needle on federal expenditure growth in the State. As

a result, we have aggressively put forth a plan of action to identify and address deficiencies in

funding and human capital resources; innovative entrepreneurship and federal facility infrastructure

improvements. This process required continual coordination with DBED staff and reaching out to

other State agencies to learn how we could build an effective and sustainable partnership.

Because of this commitment, we have laid the foundation for State, and possibly, nationally

recognized initiatives in areas including cyber security, technology commercialization, federal

contract procurement, federal workforce development and infrastructure improvements. Our goal is

to maintain a steady course of action aimed at bridging the gap between the State, the federal

government and the business community.

The Governor’s Interim Report is an outline of the Board’s preliminary findings and will set

the framework for the Strategic Business Plan for Maryland’s Federal Facilities – a game plan for

guiding the State’s efforts in building sustainable partnerships with its federal community. This

report is slated for completion within the next 12 months.

Again, we appreciate your continued commitment to strengthening the State’s relationship

with its federal community. And although we have a long road ahead, we look forward to continuing

to build a long lasting relationship with the O’Malley-Brown Administration.

Sincerely,

Kevin F. Kelly, Chairman

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EXECUTIVE SUMMARY

Overview

Maryland’s relationship with the federal government is often attributed to its close

proximity to Washington, DC. Although a critical factor, the State’s strong federal community –

58 non-military and 18 military facilities - is also a direct result of its highly-skilled workforce

and a well-suited business environment for providing goods and services to federal agencies.

Over the years, the State aggressively set out to capture federal funding and federal job creation

opportunities. As a result, unprecedented steps were made towards positioning Maryland as a

hallmark for federal R&D and advanced technological innovation.

Maintaining Maryland’s relationship with the federal government is essential to

sustaining its federal community and growing the economy as a whole. For instance, in 2009, the

federal government expended $92.2 billion in the State, an increase from $77.9 billion in FY08

and $70.6 billion in FY07.

Table 1. Note: The total amount includes retirement/disability payments, grants, procurement contracts and

salary and wages.

On the procurement side, in FY09, total federal procurement dollars were $34.3 billion, a

significant increase from $25.6 billion in FY08. With procurement contracts making up the

largest share of federal expenditures, the State’s dependency on the long-term stability of federal

spending is evident. In FY09, Maryland procurement contracts rose by 34% over FY08. Ninety

percent of the increase was from the Department of Defense (DOD), Department of Homeland

Security (DHS), General Services Administration (GSA) and National Aeronautics and Space

Administration (NASA).

Maryland’s $8.8 billion increase from FY08 to FY09 was the 3rd

largest increase

nationally, following Virginia ($27.9 billion) and California ($17 billion). Also in FY09,

Maryland ranked 4th

in total procurement dollars received behind Virginia ($82 billion);

California ($69.1 billion) and Texas ($67 billion).

0

50

100

20072008

2009

$70.6 $77.9 $92.2

In B

illio

ns

Maryland Federal Government Total Expenditures

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2. Source – U.S. Census Bureau. Consolidated Federal Funds Report: Fiscal Year 2009

The State’s federal (military and non-military) workforce employed over 170,000

workers in 2009 with an average annual income of approximately $90,000. The Maryland

Department of Labor, Licensing and Regulation (DLLR) projects a 3% increase in federal

government employment between 2008 and 2018. This projection will be positively affected by

additional federal growth in-State resulting from new initiatives related to health care reform,

consumer protection guidelines, and federal requirements to consolidate and find new homes for

growing federal agencies.

According to Mission Maryland - Measuring Economic Impact of Maryland’s Military

Installations, a study conducted by the Jacob France Institute at the University of Baltimore, in

2008, seventeen military facilities generated a total of $36 billion in economic activity in the

State and created or supported more than 250,000 jobs. According to DLLR, in FY 2007, the

non-military facilities created $70 billion in economic activity.

Maryland’s economy is significantly strengthened by the federal government’s physical

presence in the State and the tremendous number of procurement and federal R&D opportunities

perfectly positioned for Maryland’s thriving community of innovation enterprises. The addition

of one federal agency to the Maryland economy will not only bring tax revenues and job

creation, but it will be the catalyst for economic development growth that will spawn countless

innovative business ventures, new technological discoveries, world-renowned research and

development opportunities and, more importantly, a better quality of life for Marylanders

throughout the State.

18.4

14.2

11.813.2

34.3

Federal Direct Expenditures or ObligationsState of Maryland 2009

Retirement/Disability

Direct Payments to Individuals and Others

Grants

Salaries/Wages

Procurement

In B

illio

ns

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Primary Recommendations

The following recommendations are initiatives that will require coordination with DBED

staff and other State agencies. Over the next several months, the Board will develop a

comprehensive strategy for implementing these recommendations.

Area of Importance Recommendations Tactic Status

Cyber Security Creation of the National

Cyber Security Center of

Excellence (NCCOE) at the

National Institute of

Standards and Technology

(NIST)

Develop and disseminate a white pager

to the O’Malley-Brown Administration

and the Maryland Congressional

Delegation for the creation of the

NCCOE

In process; Senate Appropriations

Committee approved $10M for the

creation of the center and $15M for

cyber research at NIST in calendar

year 2010. Final action to be

determined in the 112th

Congress.

Technology

Commercialization

Create a Statewide

Technology/Business Fair

Encourage federal laboratories to

highlight their innovation and

technology to the business community.

Invite federal laboratory employees to

participate and present their business

ideas to venture capitalists and

businesses in the region.

On-Going; the workgroup is

further developing the initiative.

Technology

Commercialization

Encourage State/Federal

Small Business Partnership

Leverage the State’s early seed funding

programs such as Maryland Industrial

Partnerships (MIPs) and the Maryland

Technology Development Corporation

(TEDCO), in partnership with Federal

Laboratory Small Business Innovation

Research (SBIR) Programs to support

startup corporations. Phase I SBIRs

could leverage MIPS or TEDCO

support.

On-Going; a tech transfer resource

manual has been developed to

evaluate current resources and

outline how to improve on and

create new programs.

Technology

Commercialization

Create a Federal Venture

Fund

Encourage and incentivize federal

employees to commercialize their ideas

in the state’s incubators. The federal

government should devote resources

that encourage employees to submit

patents and commercialize ideas.

On-Going; coordinating efforts

with University of Maryland

System.

Federal Procurement Develop a “Team Maryland”

Network & Mentoring

Program

The Network will be comprised of

business development professionals

from large, medium and small

Maryland-based companies who

market products or services to the

federal government. It will foster

cooperation between Maryland-based

companies by teaching small

companies best practices and providing

“teaming” opportunities that can

increase federal procurement

expenditures in the State.

Created; 46 companies have signed

up for the Network, including

Lockheed Martin, Northrop-

Grumman, ARINC, Smartronix,

ERT Corp, CSC and Raytheon.

The last planning meeting was held

on February 18, 2011.

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Federal Procurement Develop an online database

with procurement

opportunities specific to the

State of Maryland

The database will be available to

Maryland-based small, medium and

large companies. It will provide

opportunities for participants to “team”

on future projects and exchange leads,

tips, ask questions, etc.

On-Going; Coordinating with

Input.com on the design of

Maryland-only procurement

website.

Workforce

Development

Evaluate the federal

workforce needs for 15 of the

state’s largest and most well-

funded federal workforces.

Survey 15 agencies to better understand

their workforce needs and to develop a

plan for addressing workforce

deficiencies.

On-Going; Currently working to

finalize the survey.

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Priority – Examining the Needs of the State’s Federal Community

In January 2011, the Federal Facilities Advisory Board kicked off an aggressive federal

outreach initiative at the National Institute of Standards and Technology (NIST). Today, the

Board has toured and hosted roundtable discussions at five additional facilities – NASA, Ft.

Meade, SSA, NIH and FDA - with facility leaders, business and academic professionals and state

and federal congressional staff. The objective of the tours and roundtable discussions is to:

Understand and examine facility programs in areas including cyber security, technology

commercialization, federal contract procurement, federal workforce development and

infrastructure improvements.

Share best practices for addressing issues in the aforementioned areas and coordinate

efforts to work towards accomplishing the State and facility’s mission objectives.

Initiate the development of public-private partnerships.

Below is a chart outlining several key areas where facility leaders at each site requested

state assistance in accomplishing key mission objectives.

Federal Facility Request for Assistance Status

NIST Workforce Development – Encourage more

alignment between the academic institutions,

including, in particular, community college

infrastructure to make sure NIST is generating the

workforce development programs that are needed.

In July 2010, Senators Mikulski and Cardin

announced the award of two-year, competitive

community-based job training grants to

Hagerstown Community College and the Anne

Arundel Workforce Development Corporation

totaling nearly $7 million. Training will be focused

on in-demand jobs in the high growth fields of

cyber security and clean energy technology.

NIST Technology Commercialization – Develop a direct

working relationship between the State and NIST in

areas of technology development.

Work in progress; As part of the National

Cybersecurity Center of Excellence’s (NCCOE)

FFAB proposal, NIST, working in conjunction

with private industry, academic institutions and the

State, will provide support for the research,

development, evaluation, transfer (from and to

government) and commercialization of cyber

security technologies.

NIST Technology Commercialization – Create an area and

environment where the R&D community can

convene and interact with NIST.

Work in progress; As part of the NCCOE’s

proposal, the Center will provide the necessary

resources for the solicitation of research and

development proposals for cyber technology;

establish a formal body to review research and

development proposals and advocate for funding

through the Federal resources allocation process

for deserving proposals.

NASA Infrastructure – Create a “destination of choice” in Work in progress; Fundraising strategy for the new

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Maryland to attract visitors and inspire the next

generation by assisting as needed on the

development of the Science, Education and

Exploration Center (SEEC), a state-of-the-art venue

attracting 500,000 students, educators and visitors

per year. The SEEC will be located near or on the

Goddard campus to connect SEEC’s visitors to

Goddard’s world-class people, facilities and

capabilities.

Center in formulation.

NASA Infrastructure – Collaborate with NASA on the

implementation of the Goddard Master Plan. NASA

was charged with developing a more modern,

efficient, and environmentally-friendly Goddard that

is an asset and good neighbor to the surrounding

community.

Work in progress; State exploring a formal

partnership with NASA that is complimentary to

that recently announced by NASA and the State of

Colorado.

NASA Infrastructure – Assist Goddard in encouraging

private industry to utilize the facility.

Work in progress; State exploring a formal

partnership with NASA that is complimentary to

that recently announced by NASA and the State of

Colorado to help address this issue.

Social Security

Administration

Infrastructure – Assist where needed in SSA’s

current initiative to replace aging infrastructure,

including the National Computer Center (NCC), and

finding space for 1,700 employees who will not fit

on the current campus.

FFAB coordinated a meeting between U.S.

Senator Ben Cardin; GSA Regional Commissioner

Rob Hewell; SSA Commissioner Michael Astrue

and Baltimore County Executive Jim Smith to

discuss location selection for the NCC. There were

two sites selected – Johnnycake Road in Baltimore

and Urbana in Frederick. GSA selected the Urbana

site.

Social Security

Administration

Workforce Development – Continue to prepare the

Maryland workforce for federal agency employment.

SSA seeks to hire talented individuals to fill existing

and future positions, particularly those vacated by

retiring agency workers.

Work in progress; The workforce

development/education workgroup has developed

a workforce needs assessment survey. Fifteen

federal agencies were identified to participate in

the initiative. Final results will be available during

the next 3 – 6 months.

National Institute of

Health

Federal Contract Procurement – Develop partnering

opportunities in areas including minority business

development and federal procurement initiatives.

Work in progress; Governor’s Office of Minority

Affairs (GOMA) is scheduled to meet with NIH’s

procurement director on February 24th

to discuss

minority business development and procurement

opportunities. Also, NIH participated in DBED’s

Contract Connections event in December

National Institutes of

Health

Technology Commercialization – Develop

partnering opportunities surrounding two programs -

Small Business Innovative Research (SBIR) and

Cooperative Research and Development Agreements

(CRADA).

Work in progress; DBED is coordinating a

meeting with NIH and the Life Sciences Advisory

Board (LSAB). A request was submitted to NIH’s

director Dr. Collin for a formal presentation to the

Board during first quarter 2011.

National Institutes of

Health

Workforce Development – Develop partnering

opportunities with the Maryland Business

Roundtable for Education (MBRE) on STEM

initiatives.

June Streckfus, MBRE Executive Director will

coordinate with NIH on future opportunities to

partner on STEM initiatives.

Food and Drug Infrastructure – FDA is running out of space for Work in progress; FFAB made a request for a

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Administration employees on the White Oak campus. This includes

2-3,000 new employees expected for the tobacco

products center and medical counter-measure

initiative. FDA sent a letter to GSA requesting their

approval to move forward with the next phase of the

renovation in order to address the issue.

letter of support from the Maryland Congressional

Delegation to the Governor’s office in December

2010.

Food and Drug

Administration

Infrastructure – Reduce the footprint of people on the

campus by using “hoteling” the practice of providing

office space to employees on an as-needed rather

than on the traditional, constantly reserved basis.

This reduces the amount of physical space that an

enterprise needs, lowering overhead cost while

ensuring that every worker can access office

resources when necessary. In order to do this, FDA

will need to find adequate space either on the current

campus or in leased space in the surrounding area.

Work in progress; Devising strategy with DBED

on the best approaches to tackle future workforce

and space needs with a plan of action anticipated

by the summer of 2011.

Food and Drug

Administration

Infrastructure – Decrease cars on the road by

working with the State to address the lack of public

transportation in the area.

Work in progress; Devising strategy with DBED

on best approaches to tackle future workforce and

space needs; plan of action anticipated by the

summer of 2011.

Food and Drug

Administration

Technology Commercialization – Develop a public-

private partnership.

Work in progress; Currently, the Tech Transfer

workgroup is considering the development of a

State-sponsored technology fair.

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National Cyber Security Center of Excellence – Setting the Standards for Information

Assurance

The Federal Facilities Advisory Board’s first accomplishment came as the result of its

collaboration with DBED on the implementation of the CyberMaryland report recommendations.

In response to the first recommendation – Establish a National Center of Excellence for Cyber

Security – the Cyber Security workgroup, led by James W. Sheaffer, President, Computer

Sciences Corporation - North American Public Sector, presented a white-pager to Governor

O’Malley and the Maryland Congressional Delegation for the creation of a federally - recognized

National Cyber Security Center of Excellence (NCCOE). The center will be located at the

National Institute of Standards and Technology (NIST) in Gaithersburg, Maryland.

Working closely with Governor O’Malley and U.S. Senator Barbara Mikulski, the

initiative passed the Senate Appropriation Committee in July 2010. If approved, it will provide

$10 million to NIST for the establishment of the center and $15 million for research on emerging

cyber security technologies and threats.

The NCCOE will bridge the gap between the public and private sectors and provide

companies with a central hub charged with developing, evaluating and transferring technology. It

will provide support in the following areas:

Tech Transfer – Support for the research, development, evaluation, transfer (from and to

government), and commercialization of cyber security technologies by private

companies, associations, state governments, and academic institutions.

Research & Development – Solicit research and development proposals for cyber

technology; establish a formal body to review research and development proposals and

advocate for funding for deserving proposals through the Federal resources allocation

process.

Information Clearinghouse – Conduct symposia, colloquia, and conferences to explore

cyber security needs that can be addressed by public- and private-sector cyber security

stakeholders; as well as develop and promote information and knowledge-sharing

initiatives among public- and private-sector cyber security stakeholders.

Workforce Development – Support the development of educational requirements for

cyber security and recommendations for cyber security curricula and courses of study.

Testing and certification – Leverage NIST's current work in development of standards

and metrics to drive, measure, and test cyber security technology, serving as a

clearinghouse for test data.

In January, Governor O’Malley launched CyberMaryland, an aggressive strategic plan

that highlights the State’s key role in supporting President Obama’s national cyber initiative;

positions the State as the nation’s epicenter for cyber security and builds on the already enviable

information technology assets that call Maryland home. Led by the DBED, CyberMaryland

incorporated both in-depth research and guidance from more than 50 public and private sector

information technology and cyber security experts in formulating priorities, recommendations

and strategies for Maryland’s cyber security industry.

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I. FEDERAL FACILITIES ADVISORY BOARD BACKGROUND & ACTIVITIES

A. MISSION

To foster greater interaction and collaboration between the State of Maryland, federal facilities

and private companies; to support and strengthen federal mission objectives and to enhance

business opportunities for Maryland companies.

B. ORGANIZATIONAL STRUCTURE

The 19-member Federal Facilities Advisory Board (FFAB) provides a comprehensive evaluation

of key areas that are important to making Maryland’s federal institutions a critical growth

industry in the State. This includes cyber security, technology commercialization/research to

acquisition, workforce development/education, federal procurement, infrastructure/regulation

and federal administration outreach initiatives. Workgroups focused on the aforementioned

areas work towards developing the framework for the Strategic Business Plan for Maryland’s

Federal Facilities – a game plan for guiding the State’s efforts in building sustainable

partnerships with its federal community.

C. PLAN OF ACTION

The first step to creating an effective plan was the development of the FFAB Plan of Action - an

outline of critical issues affecting the federal community and practical approaches to addressing

these issues. The Plan of Action provided the groundwork necessary to assist each workgroup in

developing a scope of work to be further developed over the next 12 months.

Primary Deliverables:

Submit Interim Report to the Governor

Develop Strategic Business Plan for Maryland’s Federal Facilities by January 2012.

D. WORKGROUP DEVELOPMENT: PARTICIPANT & STATE PRIORITIES

Workgroups were formed to address critical issues and gaps in resources and performance. In

addition, workgroups were charged with developing a suitable course of action in the following

areas: cyber security, technology commercialization/research to acquisition, workforce

development/education, federal procurement, infrastructure/regulation. Members were surveyed

to determine their collective recommendation for the State’s federal priorities. As a result of the

survey, 43% of the respondents recommended that the State focus primarily on technology

commercialization/research to acquisition and workforce development/education. These

areas of concentration were followed by cyber security, infrastructure/regulation and federal

contract procurement, respectively.

E. ADVISORY BOARD ACTIVITIES

Since January 2010, the newly established Federal Facilities Advisory Board has made

significant steps toward assisting the State’s efforts in strengthening federal mission objectives

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and enhancing federal business opportunities for Maryland companies. The expertise of the 19

member Board has provided valuable information and insight on key areas of importance.

Over the last twelve months:

The Board has held six working meetings (January, March, May, July, October and

December) and met with the following State and quasi-government agencies to discuss

how the State is currently interfacing with the federal government:

o Department of Business of Economic Development (DBED)

o Department of Transportation & State Highway Administration (MDOT/SHA)

o Department of Environment (MDE)

o Maryland Higher Education Committee (MHEC)

o Department of Planning (MDP)

o Department of Labor, Licensing and Regulation (DLLR)

o Maryland Technology Development Corporation (TEDCO)

o Maryland Business Roundtable for Education (MBRE)

The Board toured and participated in roundtable discussions at six federal facilities:

o National Institute of Standards and Technology (NIST)

o NASA Goddard Space Flight Center

o Fort Meade

o Social Security Administration

o National Institutes of Health

o Food and Drug Administration

F. FEDERAL ADMINISTRATION OUTREACH

A critical part of the FFAB’s mission is assisting the State in fostering greater interaction and

collaboration with its’ federal community. As outlined in the Board’s Plan of Action, the

members developed an outreach initiative that required the coordination of facility tours and

roundtable discussions between federal agency leaders, board members, state elected officials,

surrounding county executives and local business and education leaders.

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II. FFAB 2010-11 INITIATIVES

1.1. CYBER SECURITY WORKGROUP James Sheaffer, President, CSC, North American Public Sector, Workgroup Leader Dr. Lloyd B. Minor, Provost and Senior Vice President, The Johns Hopkins University James Pitts, Corporate Vice President, Northrop Grumman Belkis Leong-Hong, President/CEO, Knowledge Advantage, Inc.

Goal. Collaborate with DBED to implement CyberMaryland recommendations, including:

Marketing the State as the National Epicenter of Cyber Security by developing initiatives

to strengthen the cyber brand and cataloging current assets and growth opportunities;

Implementing an economic development strategy by developing public-private

partnerships to address barriers to business growth;

Assisting in the development of economic development initiatives aimed at attracting and

retaining cyber security businesses in the State.

Strategy. To generate a recommended action plan regarding the creation of a National Cyber

Security Center of Excellence and to create and implement a survey of Maryland businesses to

establish a baseline of the cyber security services and assets that are currently available in

Maryland.

WHITE PAPER: NATIONAL CYBER SECURITY CENTER OF EXCELLENCE | PLAN OF ACTION

Concept Description

o Idea # 1: Recommend the creation of the National Cyber Security Center of

Excellence (NCCOE)

The NCCOE will be located at the National Institute of Standards and Technology

(NIST) in Gaithersburg, Maryland.

Benefits o Tech Transfer – Support for the research, development, evaluation, transfer

(from and to government), and commercialization of cyber security technologies

by private companies, associations, state governments, and academic institutions.

o R&D – Solicit research and development proposals for cyber technology;

establish a formal body to review research and development proposals and

advocate for funding for deserving proposals through the Federal resources

allocation process.

o Information Clearinghouse – Conduct symposia, colloquia, and conferences to

explore cyber security needs that can be addressed by public- and private-sector

cyber security stakeholders; as well as develop and promote information and

knowledge-sharing initiatives among public- and private-sector cyber security

stakeholders.

o Workforce Development – Support the development of educational requirements

for cyber security and recommendations for cyber security curricula and courses

of study.

o Testing and certification – Leverage NIST's current work in development of

standards and metrics to drive, measure, and test cyber security technology,

serving as a clearinghouse for test data.

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Development Process

o The FFAB Cyber Security Workgroup prepared a white paper designed to

influence state and federal action toward the establishment of the National Cyber

Center of Excellence.

o Delivered the white paper to Governor O’Malley in June 2010.

Outcome/Next Steps

o On July 29, 2010, U.S. Senator Barbara A. Mikulski (D-Md.) and Governor

Martin O’Malley announced the first step in the creation of a National Cyber

Security Center for Excellence (NCCOE). Senator Mikulski, Chairwoman of the

Senate Commerce, Justice and Science (CJS) Appropriations Subcommittee,

confirmed that this year’s CJS bill will include $10 million for the National

Institutes of Standards and Technology (NIST), to develop the NCCOE. The bill

also includes $15 million for NIST to conduct research on emerging cyber

security technologies and threats. Final action to be determined in the 112th

Congress.

ASSESSING THE CYBER SECURITY INDUSTRY | CYBER SECURITY ASSET SURVEY

Concept Description o Develop a survey to be distributed to businesses throughout Maryland which will:

Assess the cyber security industry and catalogue the work being

performed throughout the State.

Identify the baseline of what cyber security services are being provided

and what is available to be provided beyond that baseline.

Promote cyber security tech transfer and commercialization (Priority 2 of

the CyberMaryland Report)

Encourage research/collaboration from the results.

Benefits o Visibility into the needs and provisions of Maryland businesses and future

requirements for successful operation (Priority 10 of the CyberMaryland Report).

o Provides ability to analyze where gaps exist and where the State can assist

business growth (Priority 5 of the CyberMaryland Report).

o Promotes understanding of workforce requirements and allow educational

initiatives to align (Priority 4 of the CyberMaryland report).

Development Process o Cyber committee representatives have worked directly with Patrick Tonui at

DBED to develop the survey.

o Developed several draft surveys, received feedback from key individuals in

DBED regarding the content of the survey.

o Designed the survey online through DBED’s account on surveymonkey.com.

Outcome/Next steps

O On June 22, 2010 the Cyber Assets Survey (see Appendix A) started collecting

responses. It was circulated to hundreds of Maryland IT companies through the

Cyber Maryland Blog (found on the ChooseMaryland.org website); state-wide

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businesses, innovative incubator and regional technology council affiliates. The

results will be included in the Board’s final report.

2.1. TECHNOLOGY COMMERCIALIZATION | RESEARCH TO ACQUISITION WORKGROUP Dr. Ray O. Johnson, Senior Vice President and CTO, Lockheed Martin Corporation, Workgroup Leader

Dr. Larry Arthur, President, SAIC – Frederick, Associated Director, AIDS Vaccine Program

Dr. Richard Roca, Director Emeritus, The Johns Hopkins University Applied Physics Lab

Dr. Darryll Pines, Farvardin Professor and Dean, A. James Clark, School of Engineering, University of Maryland

Goal. Work with area research institutions, universities/colleges and the private sector to develop

a strategy for connecting researchers with federal and State resources and funding opportunities

to aid new business development.

Recommend practical steps to improving the success rate of new business development

by identifying programs aimed at bridging the gap between researchers, the State and

federal government;

Evaluate existing funding programs and new funding opportunities;

Review patent and licensing requirements and recommend steps to help streamline

processes;

Recommend improving the coordination of federally sponsored research with acquisition

activities at Maryland based federal facilities.

Strategy. The Workgroup believes that the pathway to increased technology commercialization

involves better connections between academia and industry working in a partnership to secure

additional federal and state research and development funds. Many of today’s most challenging

global problems require both invention and innovation. Invention is strongly supported by

academic institutions and innovation is best supported by industry. Additionally, federal and

state resources must be increased to fund the invention-to-innovation process.

It is the experience of several members of the Workgroup that commercialization usually

falters on the business side, not on the technical side. For this reason, it is important to be

innovative in all aspects of the business model, not just in the technology component. This

innovation, in all aspects of the business model, requires every component of the business model

to participate in the innovation process (e.g., legal, finance, business development, contracts,

etc.)

INVENTION-TO-INNOVATION | IMPROVING THE SUCCESS RATE OF NEW BUSINESS

DEVELOPMENT

Workgroup Observations

o The innovator is often captured by his or her invention and is oblivious to the

applications that potential users really care about. On the surface, the innovator is

aware of applications, but when one digs, one often finds that the innovator has

cast the application to fit the technology and has ignored real-life constraints such

as the operational aspects.

o Absent an infrastructure to support innovation, such as that which exists in Silicon

Valley, innovators can often do well enough to survive, but only barely do so. The

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State must be willing to make much larger investments if the results are to be

thousands of jobs created.

o Breakthrough innovations seem to be rare and more anecdotal than planned. As in

a baseball game, there are more outs than hits, and more hits than homeruns.

Unfortunately, all too often, nurturing homeruns doesn’t seem repeatable. How

many programs have repeat megahits versus one?

o Another trap is that the technology transfer operatives get caught up in the

excitement of business planning and negotiation and forget their purpose. If they

are not careful, they can focus on the excitement of negotiations and business set-

up and forget the underlying purpose of successfully launching an enterprise.

Concept Description

o Idea # 1: Create a DBED Statewide Technology/Business Fair

Encourage federal laboratories to highlight their innovation and technology to the

greater business community. In addition, invite federal laboratory employees to

participate and present their business ideas to venture capitalists and businesses in

the region.

o Idea # 2: Encourage State/Federal Small Business Partnership Leverage the State’s early seed funding programs such as MIPs, TEDCO, and

others in partnership with Federal Laboratory SBIR Programs to ensure that

startup corporations are able to transition beyond the valley of death. Phase I

SBIRs could leverage MIPS or TEDCO support.

o Idea # 3: Federal Venture Fund Encourage and incentivize federal employees to commercialize their ideas in the

state’s incubators. The federal government should devote resources that

encourage employees to submit patents and commercialize ideas. A federal

venture fund would be one way to incentivize employees to launch businesses in

the State of Maryland.

Benefits

o The benefits of increased technology commercialization to the State are more jobs

and increased revenue. Additionally, as technology is commercialized to develop

solutions to global problems, Maryland is increasingly seen as a technology

innovator and leader.

Development Process

o The Workgroup will review the following technology commercialization entities

to support the development of lessons learned, findings, and recommendations:

Maryland Department of Business and Economic Development (DBED)

Technology Development Corporation (TEDCO)

Maryland Biotechnology Center

Maryland Technology Institute (MTECH)

Maryland Industrial Partnership Program (MIPS)

Manufacturing Advancement Program (UMMAP)

Venture Accelerator

TAP Incubator & Other State-Based Incubators

State-Based Funding Programs for Small Businesses

Maryland Venture Fund

Outcome/Next Steps

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o The Workgroup has started the collection of best/worst practices data from

organizations including TEDCO. In the coming months, DBED will work with

the group to further develop the aforementioned ideas and to design an effective

approach to tech transfer.

o The workgroup has developed a tech transfer resource manual.

3.1. FEDERAL WORKFORCE DEVELOPMENT | EDUCATION WORKGROUP Dr. Natalie Eddington, Dean, University of Maryland School of Pharmacy, Workgroup Leader

Douglas L. Britt, President & Chief Operating Officer, Dynamac Corporation

Jingli Yang, CEO, ERT, Inc

Goal. Assess internal and external factors affecting workforce development to include the

attraction of new talent and the sustainability of the State’s highly-skilled, highly-educated

federal workforce.

Identify federal workforce barriers to growth and conduct comprehensive needs analyses

for key industries;

Develop public-private partnerships aimed at preparing Maryland workers for federal

jobs;

Work with four year colleges/universities, community colleges and other programs (i.e.

P-20 Leadership Council) to develop pathways to success for Maryland students.

Strategy. The Workforce workgroup is focused on collecting and analyzing information on the

federal, state and private industry workforce to ensure the alignment of the needs of the

expanding workforce with the education/career pathways and programs supported by the State’s

academic and training programs and institutions.

FEDERAL WORKFORCE NEEDS ANALYSIS | SURVEY AND EVALUATION

Concept Description

o The Workgroup will survey the top 15 federal agency employers in the State. The

survey data to be collected from the agencies will include, but is not limited, to the

following:

Geographical barriers to the state and the government agency

Economic issues (to attract new talent) i.e. environment, school system, tax

status, health care benefits, etc.

Education issues (workforce preparedness, skills levels)

Current and future needs of a highly skilled workforce

Required skill sets

Use of and current/future needs of contractors with certain skill sets

Identification and data collection from contractor organizations that support

the mission of the federal facilities

Turnover rates of employees in the federal facilities

Benefits

o The Workforce Development/Education Workgroup will provide the following

deliverables:

Develop comprehensive needs analyses for key industries

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Identify barriers and recommend methods to grow the federal workforce

Develop workforce training initiatives for prospective workers at each level

(high school, college, etc)

o This information will guide and inform growth in the following areas:

Types of new workforce demand trends required to support the expanding

workforce

Types of academic/training programs, degrees and or certificate programs to

support the growing workforce needs

Public-private partnerships to support workforce development

Best practices from federal facilities or private industries that foster academic

preparedness, or on-the-job training

Development Process

o A survey incorporating questions related to the concept stated above has been

developed by the workgroup which will be sent out to the top 15 federal facilities

in the State (see Appendix B)

Outcome/Next Steps

o The Workgroup will be sending the survey within the next few weeks.

o The group will also collaborate with existing State education and workforce

development programs including the Maryland Business Roundtable for

Education, the Governor’s Workforce Investment Board and the Maryland Higher

Education Commission to determine the best course of action.

4.1. FEDERAL CONTRACT PROCUREMENT WORKGROUP John Belcher, Chairman & CEO, ARINC, Workgroup Leader

John C. Parris, Chief Executive Officer, Smartronix, Inc.

Charles H. Atwell, President, Innovative Business Interiors, Inc.

Goal. Develop initiatives to increase federal procurement expenditures in the State. Procurement

contracts, which totaled $34 billion in FFY 2009, are both the largest category of federal

expenditures in the State and the most volatile.

Develop initiatives to increase federal procurement expenditures in the State;

Identify the State’s federal procurement resources and develop a plan to make these

resources more readily available;

Identify methods of better positioning Maryland businesses, especially small and

minority businesses, for procurement opportunities.

Strategy. The Federal Contract Procurement Workgroup will develop an action plan to increase

and improve the total federal contract procured by Maryland companies.

TEAM MARYLAND NETWORK | BUILDING ALLIANCES TO SECURE FEDERAL

PROCUREMENT GROWTH

Concept Description

o Idea # 1: Develop a “Team Maryland” Network

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The Network will be comprised of business development professionals from

large, medium and small Maryland-based companies who market products or

services to the federal government.

o Idea # 2: Create a Team Maryland Mentoring Program The Program will foster cooperation between large and small Maryland-based

companies:

Teaches small companies best practices in competing for federal

opportunities.

Provides small companies with access to opportunities.

Encourages teaming amongst Maryland companies before looking outside

State.

Develops State backed financial incentives to encourage Mentoring and Team

Maryland activities.

o Idea # 3: Develop an online database with procurement opportunities specific

to the State of Maryland The database will be available to Maryland-based small, medium and large

companies. It will provide opportunities for participants to team on future projects

and exchange leads, tips, ask questions, etc.

Benefits

o Provide visibility into the size of the federal procurement opportunity within

Maryland.

o Leverage current resources within the State and business community to increase

success rate.

o Provide new opportunities for small companies to learn, work and grow through

new relationships with established medium and large companies operating in this

market.

Development Process

o To develop a “Team Maryland” network of business development professionals,

the Federal Procurement Workgroup:

Utilized the initial FFAB Member roster to build the foundation for the group.

Initial members will be tasked with identifying three additional members.

DBED will assist in identifying gaps in procurement opportunities from the

State’s perspective.

o To develop the online database specific to Team Maryland, the Workgroup and

DBED staff has:

Met with Input.com representatives to discuss the development of the

database. Input.com is an on-line database that provides comprehensive,

online market intelligence information and tools, coupled with personalized

research and industry analysis, to help companies find, strategize, bid, and win

federal, state and local government business.

Outcome/Next Steps

o On August 26, Input.com made a formal presentation to the Federal Procurement

Workgroup and DBED staff. The company is now preparing material on ways to

create a cost-effective database that will be available to companies within the

State.

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o On September 29, 2010, Team Maryland held its first meeting at the World Trade

Center. The following companies participated– ARINC, Space Telescope Science

Institute, CSC, Dynamac Corp., Northrop Grumman, Smartronix, ERT Corp. and

Lockheed Martin.

o The next meeting was held on February 18, 2011 at the UMBC TechCenter.

5.1: INFRASTRUCTURE/ REGULATORY WORKGROUP Tom Sadowski, President & CEO, Economic Alliance of Greater Baltimore, Workgroup Leader

Martin T. Neat, President, First Shore Federal Savings and Loan Association

Matt Mountain, Director, Space Telescope Science Institute

Goal. Identify and address infrastructure needs to developing a federal community that is

economically and structurally viable.

Identify land-use and environmental challenges on a county-by-county basis;

Work with the appropriate agency to develop ways to address issues relating to critical

infrastructure needs including transportation and technology;

Identify defense and non-defense growth-impacted communities and growth-related

projects;

Identify permitting and regulatory hindrances to major project development and

recommend steps to address each issue.

Strategy. The work of this group will address the following core areas:

Roads

Public Transportation

Water & sewer

Power grid access/ power adequacy, cost and redundancy

Communications/fiber/broadband

Improvement of building conditions and “greening” of Maryland’s federal facilities and

installations

Permitting and Regulation

FEDERAL PROJECTS | NEEDS ASSESSMENT AND INVENTORY

Concept Description

o The Infrastructure Work Group will study and offer potential solutions to existing

needs related to:

Immediate road improvements

Immediate to short-term need for improvement and expansion of utility

service capacity

Enhanced public transportation network and related services

Lack of federal, state and local funding for capital and service improvements

Benefit

o To promote future adequacy and improvement of said infrastructure serving

Maryland’s critical Federal Facilities.

Development Process

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o Issue Requests for Information (RFIs) to Maryland’s Federal Facilities, BRAC

Sub-Cabinet and the local communities and utility providers serving them. The

RFIs will be the mechanism by which to answer questions relative to:

Adequacy of service to the subject facility(s)

Plans for improvement

Timing of desired or necessary improvements

Funding availability, source and scheduled allocation of funds

Legislative action required AND/OR any difficulty or barriers to execution of

the required improvements.

Outcome/Next Steps

o The Infrastructure Workgroup will work with the appropriate State agencies to

coordinate and implement the initiative.

FEDERAL PROJECTS | FUNDING OPPORTUNITIES

Concept o The Infrastructure Work Group will work on identifying traditional and non-

traditional funding opportunities such as public-private partnerships.

Benefits

o The ultimate goal is to increase access to funds earmarked for infrastructure

improvements.

Development Process

o Encourage structural changes to federal, state or local programs to include:

The Defense Access Road (DAR) Program - provides a means for the military

to pay their fair share of the cost of public highway improvements necessary

to mitigate an unusual impact of a defense activity.

Federal Highway Bill

Green and/or energy conservation funding sources or financing mechanisms

Enhanced Use Leasing

Special Taxing Districts or Tax Increment Financing initiatives

Transit Oriented Development (TOD) projects

Outcome/Next Steps

o Work with DBED’s Office of Military and Federal Affairs (OMFA) to identify

gaps in funding opportunities and to develop a strategic plan of action.

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APPENDIX

A. Cyber Assets Survey

B. Federal Workforce Needs Assessment Survey