Celebrating 25 Years of Collaboration

25
R&D 100 Awards
53,750
$
286
innovation
+
360
federal
contracts
and grants
student
internships
technology
$5.3
More than
million
scholarships and
fellowships
1,100
education
Federal
contracts
and grants
valued at
more than
million
40research
patents
in scholarships
awarded
Celebrating 25 Years of Collaboration
2014 Annual Report
PRESIDENT’S LETTER
25 Years of Collaboration: OAI’s Silver Anniversary
The Ohio Aerospace Institute (OAI) was founded 25 years ago as the first NASA-associated institute chartered to foster
collaboration between universities, industry and government laboratories. Over the years, we have evolved from our roots
as a small, largely state-funded enterprise outside the gates of the NASA Glenn Research Center, into a diverse research,
education and collaboration aerospace institute with important customer-funded operations in Cleveland and Dayton. Our
industry membership program was expanded to include most of the major aerospace primes and suppliers in Ohio and beyond.
We have won more than 360 federal contracts and grants valued at more than $286 million. Our world-class researchers have
been awarded 40 patents and five R&D 100 Awards – the “Oscar” of technology innovation. Additionally, we have managed
more than 3,750 student internships at aerospace organizations and issued more than 1,100 scholarships and fellowships valued
at more than $5.3 million through the Ohio Space Grant Consortium (OSGC) and other sources. This year, OAI will issue more than
$640,000 in scholarships and fellowships through OSGC. As a neutral, non-profit institute, OAI has successfully managed more than
seven public-private collaborations and consortia involving universities, industry and federal laboratories. OAI’s original purpose was
to foster aerospace collaboration, and we remain true to that purpose today.
OAI faced many challenges throughout 2014. The federal government shutdown and budget sequestration delayed federal contract
awards and reduced revenue from our federal customers. To reposition OAI for future growth and sustained profitability, I streamlined
the company and reduced overhead through a comprehensive reorganization in March 2014. This reorganization improved decision
making and program execution and resulted in a return to profitability in the latter part of 2014.
We increased our engagement with the regional, national and international aerospace communities in support of our members,
customers and stakeholders in 2014. OAI took a leadership role in planning, organizing and conducting the successful 2014
American Institute of Aeronautics and Astronautics Propulsion and Energy Forum, which was held at the new Cleveland
Convention Center and attended by more than 1,000 individuals. We also planned and hosted the 2014 Ohio Science Technology
Engineering and Mathematics Call-to-Action Forum for the Aerospace Industries Association and National Defense Industrial
Association, participated in aerospace trade missions to Brazil, Germany and France in support of the U.S. Department of
Commerce, and hosted advanced space propulsion and CubeSat workshops with leading researchers. OAI was awarded
significant new NASA and Air Force Research Laboratory programs in 2014, and launched a major new collaborative,
industry-funded consortium.
Now equipped with a more effective and responsive business model, the new OAI is positioned for growth in
2015. We are grateful for your continued support of OAI, and we look forward to success in the years ahead.
Sincerely,
Dr. Michael L. Heil
President and CEO
25
In early 2014, OAI took decisive action to improve our value proposition to members, customers,
partners and stakeholders - creating the new Research, Innovation, Technology and Education (RITE)
Team, led by Executive Vice President Ann Heyward, and bringing new collaborative energy, technical
excellence and expertise in aerospace industry, program management and education to the needs
of OAI’s partners. This helped to achieve significant results through new relationships, successful
collaborations and new business opportunities.
RESEARCH
OAI’s researchers advance knowledge and contribute to our customers’ missions,
and their expertise enables us to knowledgeably identify, assess and act upon
opportunities for innovation with our partners. OAI began a new subcontract
with Universities Space Research Association under NASA GRC’s Advanced
Research and Technology Support (ARTS) contract, which has an estimated
total value to OAI of $20 million over the life of the contract, carrying out more
than 20 tasks supporting GRC’s Research and Engineering Directorate. OAI’s
researchers contributed significantly to technical milestones for NASA, the Air
Force, and industry in materials, structures, computational modeling, propulsion,
instrumentation and controls, communications, and aircraft safety, and received
numerous recognitions for their achievements.
achieve. Ms. Linda McCorkle’s microscopy work appeared as the cover photo
of the American Chemical Society’s Journal of Applied Materials and Interfaces
in May 2014.
OAI research achievements included
79 NASA, conference and journal
publications/presentations; 12 book
chapters and guest/journal editorships;
3 technical society special awards or
international honors; 35 international
committees, technical society leadership
roles, or service as a conference/
symposium/session chair or organizer;
multiple Air Force “Star Team”
designations, NASA Exceptional Space
Act Awards and Group Achievement
Awards; 2 new patent applications;
service on 1 Ph.D. committee; and
teaching 2 courses.
NASA Glenn Center Director Jim Free
recognizes NASA scientist David
Fischer and OAI scientist Jun Kojima
with Honorable Mention in NASA
Invention of the Year competition.
Photo courtesy of NASA.
INNOVATION AND TECHNOLOGY
OAI engaged with our extensive network of members and partners to continue
and initiate new successful collaborations addressing critical industry needs,
and to create new business opportunities in the aerospace and aviation sectors
for our stakeholders.
First Great Lakes Remote Sensing Workshop at OAI, March 2014.
Mr. Joseph Flatico was recognized by NorTech as a member of the Most Innovative
Technology Team for hyperspectral remote sensing of harmful algal blooms
in Lake Erie. Dr. Jun Kojima and NASA colleagues were recognized with an
Honorable Mention in NASA’s Invention of the Year competition, and nominated
by GRC for the “R&D 100” Award. Dr. Sreeramesh Kalluri delivered the invited
Swedlow Memorial Lecture at the 13th International ASTM/ESIS Symposium on
Fatigue and Fracture Mechanics, and delivered an invited seminar on fatigue
of materials to Air Force Research Laboratory (AFRL) personnel. Dr. Mrityunjay
Singh received the Toledo Glass and Ceramics Award from the American Ceramic
Society, and Distinguished Life Member Award from Alpha Sigma Mu. Dr. Michael
White’s work as public policy chair for the American Institute of Aeronautics and
Astronautics’ Dayton-Cincinnati Section contributed to a first-place win in the
AIAA’s Very Large Section category for Public Policy. Dr. Philip Morgan and Dr.
Daniel Garmann were each members of an Air Force Office of Scientific Research
“Star Team” – a designation only 10 percent of AFOSR-sponsored research efforts
GE Aviation, Honeywell International, Pratt & Whitney, Rolls-Royce North
American Technologies (LibertyWorks), BAE Systems Controls, United Technologies
Aerospace Systems (UTAS) and the government, along with OAI, formed
the DECWGTM Consortium, with funding provided by AFRL. DECWG includes
government liaison representatives from AFRL, NASA Glenn, NAVAIR and the
Army, and an advisory board that comprises Boeing, Lockheed Martin and Northrop
Grumman. DECWG is conducting pre-competitive research and development
to make available the essential building blocks enabling distributed control
architectures for gas turbine engines, with particular focus on cost-effective
solutions for the high-temperature engine environment.
OAI was selected from 34 proposers to receive a $20-million indefinite-delivery/
indefinite-quantity contract from the AFRL for Versatile Affordable Advanced
Turbine Engines III and beyond. Under this contract, OAI and its partners will
develop technologies enabling an order of magnitude increase in turbo-propulsion
affordability over the year 2000 state-of-the-art technology. Initial efforts will
include working with the DECWG Consortium to develop new protocols and
specifications, and carrying out a new Probabilistic Analysis Consortium for
Engines (PACE). These two activities will engage OAI members GE Aviation,
Honeywell, Pratt & Whitney, Rolls-Royce and others.
RESEARCH + INNOVATION + TECHNOLOGY + EDUCATION
Student Chelsea Atkins (far left)
presents her poster at the Ohio Space
Grant Student Symposium.
Ohio Space Grant Consortium
Scholarship and Fellowship recipients
(left) at the 2014 Student Symposium.
OAI also continued its Aeroacoustics Research Consortium for a 14th consecutive
year, bringing together Boeing, Honeywell, NASA GRC, Pratt & Whitney and
Rolls-Royce to sponsor cutting-edge efforts in jet engine noise prediction and
mitigation. OAI also applied its consortium and collaboration expertise to support
America MakesTM (National Additive Manufacturing Innovation Institute, NAMII)
in developing membership agreements and intellectual property management
approaches. America Makes, Lockheed Martin, Magellan, Kent State University,
Baldwin-Wallace University, Cuyahoga Community College and 13 new small
businesses joined OAI as members.
Aeroacoustics Research Consortium industry members and researchers.
OAI conducted a successful workshop on Market Access – Ohio’s MegaBillion-Dollar Aerospace, Aviation and Defense Industry. OAI and member PCC
Airfoils, Inc. hosted the Center for e-Design’s Industry Advisory Board, followed
by a visit from OAI and NASA GRC personnel to explore technology collaboration
opportunities with PCC Airfoils. OAI brought its members to meetings in
Washington, D.C. with the Ohio Congressional Delegation to discuss areas of
interest, and hosted an Aerospace Roundtable discussion with Rep. Brad Wenstrup
(R-OH-2) at Belcan Corporation. OAI held its 4th Annual OAI Industry Members’
Forum, engaging more than 100 attendees, exhibitors and presenters. OAI
Innovation Awards were presented to Crane Aerospace & Electronics, GrafTech
International, Precision Made Products and Innovative Developments, LLC.
OAI also worked to expand export opportunities for its members, hosting
educational seminars through the Department of Commerce’s Market Development
Cooperator Program, on topics such as trade finance and practical tips for suppliers
of civil aircraft and aircraft parts. OAI and industry members participated in
international trade missions in Brazil and Canada, forging new international
relationships and expanding customer networks. OAI engaged with small
businesses through its collaboration with Jumpstart’s Entrepreneurial Network,
funded through Ohio’s Third Frontier Program. OAI also hosted seminars and
webinars for small businesses on SBIR/STTR proposal preparation for NSF, DOD,
DOE and NIH, and commercialization planning.
EDUCATION AND WORKFORCE PREPAREDNESS
OAI vigorously pursues workforce preparedness for the aerospace and aviation
sectors, providing career development for professionals, supporting students and
faculty in higher education, engaging students and teachers through aerospacefocused K-12 programs, and advocating for aerospace/aviation focused STEM
workforce development initiatives.
OAI co-chaired the Ohio Aerospace and Aviation Council’s Workforce and
Education Committee, and collaborated with the Aerospace Industries Association
and National Defense Industrial Association to plan a statewide STEM Call‑toAction Forum at OAI in October 2014 to engage aerospace industry professionals
and educators in sharing best practices. OAI played a key role in updating and
improving safety and mission assurance curriculum content in NASA’s Agencywide SATERN Learning System. OAI hosted eight OAI Distinguished Lectures,
many in partnership with the Northern Ohio Section of the AIAA, presenting
topical lectures from diverse organizations such as Virgin Galactic, the Fraunhofer
Institute, the Institute for Defense Analysis, SpaceX, Hypercube Corp., and the
University of Toledo. OAI also hosted two educational workshops in partnership
with AIAA.
We continued to support NASA’s One Stop Shopping Initiative (OSSI), with a
leading role in process and outcome documentation and NASA Education’s
program evaluation efforts in the Office of Education Infrastructure Division. The
Ohio Space Grant Consortium (OSGC) awarded 76 undergraduate scholarships and
graduate fellowships – impacting more than 1,176 students to date. OAI hosted
12 summer faculty at NASA GRC, and 15 GRC Academy students (six Aeronautics
and nine Space) under its contract with ParagonTEC, Inc. OAI’s innovative AFRL
“Senior Capstone” project added eight student projects and was renewed due to
its effectiveness in producing low-cost solutions and bringing students and Air
Force mentors together. OAI placed
20 Cleveland State University
students at internships in ten
companies. OAI’s OSGC partnership
won support for a new, innovative
program, Community College –
STEM Training and Retention of
Students! (CC-STARS!), which will
OAI President and CEO Mike Heil
increase the number of community
delivers introductory remarks at the
college/technical school students
AIA/NDIA STEM Call-to-Action Forum.
engaging in STEM disciplines. OAI
led community and volunteer support for the 13th Buckeye Regional FIRST Robotics
Competition, involving more than 1,500 high-school students. OSGC supported
teacher pre‑service training and K-12 learning activities designed to draw students
into STEM disciplines. OAI also teamed with NASA GRC to host a Microgravity
Educator Workshop with 13 teachers from six high schools.
2014
YEAR ENDED
JUNE 30,
financial report
REVENUE
STATEMENT OF FINANCIAL POSITION (AUDITED)
25
ASSETS
FEDERAL
PRIVATE
STATE
CURRENT ASSETS
Cash and investments
$ 742,096
Funds held for others
43,471
Net receivables and deposits 1,498,405
Total current assets 2,283,972
NET PROPERTY AND EQUIPMENT - AT COST 6,116,228
$8,400,200
20
15
LIABILITIES AND NET ASSETS
10
$ MILLIONS
5
0
YEAR
90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
As illustrated above, total OAI revenue declined for a third
consecutive year, primarily due to delays in federal program
awards. Still, OAI has maintained an average total annual
revenue growth rate of nearly 10 percent since its inception in
1990. OAI’s cumulative surplus operations during that period
allowed us to endure these recent program reductions without
sacrificing mission accomplishment.
OPERATING REVENUES $11.476M (AUDITED)
$0.6$0.6
Membership/
Membership/
Consortia
Consortia
$0.7$0.7
Other
Other
Federal
Federal
$2.2$2.2
AFRL
AFRL
OPERATING EXPENSES $12.042M (AUDITED)
$0.3$0.3
Building
Operations
Building
Operations
$0.3$0.3
$0.3$0.3 Other
Other
Office
Services
Office
Services
$0.3$0.3
Federal
NonNon
Federal
CURRENT LIABILITIES
Accounts payable and accrued expenses
$ 1,001,833
Funds held for others
43,471
Deferred revenue 1,033,960
Total current liabilities 2,079,264
NET ASSETS
Unrestricted:
Operating 104,708
Board designated 100,000
Net investment in equipment/improvements
879,272
1,083,980
Temporarily restricted - net building investment 5,236,956
Total net assets 6,320,936
$ 8,400,200
$0.3$0.3
Travel/Meetings
Travel/Meetings
$7.1$7.1
NASA
NASA
$0.2$0.2
Supplies/
Supplies/
Equip/Maint
Equip/Maint
$1.0$1.0
Student
Support
Student
Support
$0.9$0.9
Professional/
Professional/
Admin
Admin
$1.1$1.1
Research
Research
Subcontracts
Subcontracts
$8.2$8.2
Salary/
Salary/
Fringe
Fringe
FY2014 BOARD OF TRUSTEES
FY2014 MEMBERS
OAI BOARD CHAIRMAN
IND US TRY S PONS OR S Airbus Group
Alcoa, Inc.
America Makes
ARES Corporation
Battelle Memorial Institute
Belcan Corporation
Cobham plc
Crane Aerospace & Electronics
GE Aviation
GrafTech International
Honeywell International, Inc.
L-3 Communications Cincinnati Electronics
Lockheed Martin
Magellan
Materion Corporation
Meggitt Aircraft Braking Systems
NetJets, Inc.
Northrop Grumman Aerospace Systems
Parker Hannifin Corporation
PCC Airfoils, LLC
Pratt & Whitney
Rolls-Royce/Liberty Works
RTI International Metals, Inc.
The Boeing Company
The Timken Company
UTC Aerospace Systems
Salvatore J. Miraglia, Jr.
Independent Trustee
Robert Bianco, Ph.D., FASM
Manager, Materials R&D,
Central Engineering
UTC Aerospace Systems
Steven E. LeBlanc, Ph.D., P.E.
Professor and Interim Dean
College of Engineering
The University of Toledo
Donald J. Campbell
Independent Trustee
Lester McFawn
Director
Wright Brothers Institute
Gary Cates*
Senior Vice Chancellor, Innovation
and Enterprise Development
Ohio Board of Regents
Lee Ann Cochran
Vice President and Manager
Battelle Memorial Institute
Jeffrey L. Duerk, Ph.D.
Leonard Case Professor
of Engineering
Dean, Case School of Engineering
Case Western Reserve University
Robert E. W. Fyffe, Ph.D.
Vice President, Research
and Graduate Studies
Wright State University
Neil R. Garrigan
Executive Manager –
Advanced Technology
Systems, Programs and Strategy
GE Aviation
Michael L. Heil, Ph.D., P.E.
President and CEO
Ohio Aerospace Institute
Anthony Howard*
Universities & Business
Partnerships Manager
Ohio Development
Services Agency
Erik A. Paulhardt
Vice President, Aerospace Division
The Timken Company
Raman Ras, Ph.D.
Director of Engineering
and Technology
Parker Hannifin Corporation
Heidi R. Ries, Ph.D.
Dean for Research
Air Force Institute of Technology
Jerzy T. Sawicki, Ph.D.
Vice President for Research
Cleveland State University
Robert Tanner
Vice President,
Government Relations &
Corporate Responsibility
NetJets, Inc.
David B. Williams, Ph.D.
Dean, College of Engineering
The Ohio State University
Director*
NASA Glenn Research Center
* Liaison/Non-voting Trustee
CLEVELAND
22800 Cedar Point Road
Cleveland, OH 44142
440.962.3000
DAYTON
WWW.OAI.ORG
Wright Point 2 – Suite 308
5100 Springfield Pike
Dayton, OH 45431
937.424.3483
EXECUTIVE STAFF
Follow
@OhioAerospace
Dr. Michael L. Heil
President and CEO
Ann O. Heyward
Executive Vice President
Tony H. Smith, Sr.
Vice President, Finance and Operations
S M A L L B US INES S NETW OR K
Alphaport, Inc.
Anderson Aerospace, LLC
APB & Associates
Art & Logic, Inc.
Asymmetrical Technologies
Balance Inc.
Catacel Corporation
Cincinnati Control Dynamics
Cincinnati Thermal Spray, Inc.
Clark Testing
Cleveland Electric Laboratories
Ellison Surface Technologies
Elyria Manufacturing Corporation
EWA Government Systems, Inc.
Gearing Solutions, Inc.
Gosiger, Inc.
Great River Technology
GVI
Info Solution, S.p.A
Innovative Developments LLC
Insurance Partners Agency
ITAC, LLC
LakeShore Cryotronics, Inc.
Lakewood Controls, Inc.
LOC Precision
MesoCoat, Inc.
Mohawk Innovative Technology, Inc.
Mold Masters International
N&R Engineering
Nanotech Innovations, LLC
Nastec, Inc.
NobleTek
Orbital Research, Inc.
Paulo Products Co.
PHASTAR Corporation
Powdermet, Inc.
Pragmatic Consulting, Inc.
Precision Made Products, LLC
Precision Metalsmiths, Inc.
Projects Unlimited
Quantus Software
Reed Integration, Inc.
Rhinestahl Corporation
Schneller
Sea Air Space Machining & Aerospace
Siderval Sales U.S.A.
Sierra Lobo, Inc.
Spectral Energies, LLC
Spectre Corporation
Sporian Microsystems, Inc.
Stride Tool
Sumaria Systems, Inc.
Teaching Science and Technology Inc.
Techmetals, Inc.
Terasphere LLC dba Aequant Group
The Champion Company
The Composites Group
The Mifsud Group
The Trident Group
Thogus
Tipton Design and Engineering
UES, Inc.
USM Precision Products
Vantage Partners
Valtronic (USA), Inc.
Xact Spec Industries
Yormick & Associates Co. LPA
ZIN Technologies, Inc.
UNIV ER S ITY M EMBE RS
Air Force Institute of Technology
Baldwin-Wallace University
Case Western Reserve University
Cleveland State University
Cuyahoga Community College
Kent State University
Ohio University
The Ohio State University
The University of Akron
The University of Toledo
University of Cincinnati
University of Dayton
Wright State University
F ED ER A L L A B OR AT O RY
NASA Glenn Research Center