Business Meeting

1
Business Meeting

• January 29, 2008

2
Agenda

• 300 Welcome and review of antitrust guidelines
• 305 CMS Meeting Status
• 315 Overview of USACA major activities
• FY 08 federal budget update
• CCAP and CMC ManTech advocacy
• Energy initiative for FY 09
• May Technical conference program
• Website
• 425 USACA Finances
• 435 Membership update
• 445 Discussion and actions

3
2008 Daytona CMS Meeting Budget

• Total projected expenses 126,870 (15,000 to
  USACA for labor)
• Break even point is around 270 paid registrations
• 7,725 in reserve account.
• 15 fee for 2008 CMS conference could yield
  additional revenue if we get over 282 paid
  registrations

4
Conference Items

• Daytona Beach is proving too expensive and the
  Hilton hotel has been unresponsive. Mark Opeka
  is looking to move the conference back to Cocoa
  Beach for 2009.
• We had a pretty good response to first attempt at
  corporate involvement Student Page Sponsorship
  and sponsorship of breaks.
• Wider email and advertising outreach did not
  attract significantly more attendees.
• Unsuccessful getting an agenda posted earlier.

5
Government Affairs Update

• Congress passed FY 08 non defense budget just
  before Christmas. Agencies will move quickly to
  put funds onto contracts.
• Earmark funds reduced by 25 or more on average.
  Some bills like Energy and Water Appropriation
  had an increase in earmark funding.
• FY 09 budget due to be released in early
  February.
• Earmarks are still very controversial, but there
  is no widespread talk of major reduction from FY
  08 levels.

6
FY 08 Defense Ceramics Programs

• New OSD ManTech line will be funded at 21
  million which will include 5 million for CMCs.
• Industry Wide Propulsion Initiative renamed CMC
  Manufacturing Technology program.
• Ceramics probably not eligible to compete for
  remaining OSD competitive ManTech funds because
  congressional funds will be used to pay for most
  of the 5 million originally planned for CMCs in
  the FY 08 Presidents budget.
• 8.4 million increase for VAATE.
• 85 million appropriated for small business
  technology insertion.
• 25 million to JSF
• 20 million to Future Combat System
• 20 million to Submarine design and 20 million
  to ASW
• 100 million for Prompt Global Strike.
  Propulsion and Thermal protection are subelements.

7
FY 08 Energy Appropriation

• Solar Energy 170 million, 10.6 million over
  2007 and 21.7 million above the Presidents
  request for research, development and
  demonstration projects to make solar energy
  affordable.
• Hydrogen 213 million to fund hydrogen
  technologies, same as the Presidents request,
  with instructions to fund research on solid oxide
  fuel cells for small to medium scale
  applications.
• Vehicle Technology 215 million with
  instructions to provide 45 million for advanced
  combustion engine research and development and
  40,000,000 for materials technology,
• Geothermal Energy restored to 20 million, 15
  million above 2007.
• Fuels and Power Systems 353 million, 107
  million above the Presidents request. Includes
  24 million for Advanced turbines

8
FY 09 USACA Advocacy Goals

• Support expected 5 million budget request to
  continue OSD CMC Manufacturing Technology
  program.
• Position CMC/Ceramics Affordability and
  Producibilty Initiative (CCAP) as Congressional
  Defense Committee plus up.
• Build support for an energy initiative.

9
CCAP and CMC ManTech

• OK to put CCAP in OSD ManTech line
• OSD CMC program can be basis for multi signature
  appropriations request letter that could be spun
  to also support CCAP.
• Request 15 million in FY 09 for OSD CMC program
  (10 million above request) with plan to merge
  CCAP with the ManTech program under the larger
  budget umbrella.
• New York Senators will be asked to take lead to
  circulate request letter. Need at least ten
  Senators to cosigner.
• CCAP needs participating company political
  support.

10
FY 09 CCAP Next Steps

• PBR released week of Feb 4.
• FY 09 funding request paper by Feb 6
• Companies seek clearance to request support for
  project on Capitol Hill
• Multisignature request letter circulated on
  Capitol Hill in mid February
• Briefing to congressional committee staff in
  March after delivery of letter with ten or more
  Senate signatures.

11
Possible Energy Initiative Topics

• Solid Oxide Fuel Cells
• Support for the DoE SECA program and request
  continued investment in natural gas fuel sources
  in addition to coal.
• Support for deployment of solid oxide fuel cell
  systems for federal facilities.
• New applications for solid oxide fuel cell
  systems.
• Ceramics manufacturing scale up for solid oxide
  fuel cell production
• Gas Turbine
• Collaborate with Gas Turbine Association to
  promote federal funding for combustion technology
  and advanced materials development
• Promote high temperature gas turbines as clean
  energy solution
• Production scale up of ceramics for gas turbines.

12
Possible Energy Initiative Topics

• Industrial Technologies
• Collaborate with the Glass Manufacturing Industry
  Council, National Petroleum Refiners Association,
  American Petroleum Institute, etc to promote
  funding for demonstrations and advanced materials
  development.
• Promote the use of advanced ceramics for energy
  conservation in energy intensive industries
• Promote advanced ceramics for environmental
  controls in industrial processes contributing to
  climate change
• Manufacturing scale up for affordability and
  reliability.
• Promote in-field deployment demonstrations
• Promote tax credits for implementation.

13
Possible Energy Initiative Topics

• Vehicle Technologies
• Collaborate with Automotive and heavy vehicle
  industry associations to promote funding for
  propulsion materials development for use with
  alternative fuels.
• Promote the use of advanced ceramics for exhaust
  after treatment in the presence of alternative
  fuels
• Promote the use of advanced ceramics for hot
  section components in the presence of alternative
  fuels
• Ceramics manufacturing scale-up for cost
  reduction
• Work with govt, academic and nonprofit labs to
  develop databases and models to enable transition

14
Technical Conference

• May 2008 in Washington, DC
• Speakers on Energy and Defense opportunities for
  Ceramics
• Probable Topics
• CMC ManTech program update
• DoE SECA program
• Energy policy and tax incentive analysis
• Implications of Manufacturing Readiness Level
  review for DoD weapon systems
• Global Strike program
• SBIR cluster and Small Business Technology
  Insertion program

15
JSF SBIR Cluster Status

• JSF program office expressed interest in ceramics
  cluster at May USACA Technical meeting
• USACA submitted three cluster topics for
  consideration
• Cluster topics were also submitted to JSF program
  office by engine primes (GE, PW, RR)
• One topic selected for current solicitation.
  Others will be rolled over for consideration for
  future solicitations.

16
NAVAIR JSF SBIR Process
NAVAIR Materials TPOC
JSF Avionics
Industry
JSF Propulsion
JSF ST
Navy PEO Brd
Navy
Air Force
JSF Air Vehicles
Page 16
1020 Nineteenth St. NW Suite 375 Washington, D.C.
20036
17
New Website

• Prototype website available for viewing
• Need feedback on content and access
• Need INPUT from members on company and product
  information
• Need high resolution / quality photos of
  products
• Transition to using website by USACA Technical
  Conference in May

18
USACA 2007 Financial Report

• 2007 Total Income 248,117
• 2007 Income from CMS Conference 101,974
• 2007 Income from Association Dues 145,000
• 2007 Other Income 1,143
• 2007 Total Expenditures 233,072
• Expenses from 2007 CMS Conference 97,708
• 74,003 paid in 2007, 23,705 paid in 2006
• 2007 Association Expenses 135,364
• 2007 Net Income 15,045
• 2007 Percent dues allocated to lobbying 21.25

19
2008 Prepays in 2007

• 2008 Income received in 2007 46,574
• 2008 Association Dues 38,000
• 2008 CMS Conference 8,574
• 2008 Expenses paid in 2007 16,760
• 2008 CMS Conference 16,760

20
USACA 2008 Budget

• 2008 Total Income 286,140
• 2008 Projected Income from Dues 153,000
• 2008 Income from CMS Conference 132,540
• 2008 Other Income 600
• 2008 Projected Total Expenses 277,870
• 2008 Projected Expenditures 151,000
• 2008 Expenses for CMS Conference 126,870
• 2008 Projected Profit 8270
• Plus Potential 15 of CMS Receipts

21
USACA Membership

• 9 Regular Members
• 10 Emerging Members (includes NCDMM)
• 2008 New Member Prospects
• CoorsTek
• Williams International
• Triton