Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, January 27, 1993 TAG: 9301270162
SECTION: CURRENT PAGE: NRV-1 EDITION: NEW RIVER VALLEY
SOURCE: MICHAEL STOWE STAFF WRITER
DATELINE: RADFORD LENGTH: Medium
ARMY OUTLINES HOPES FOR NEW WORK AT ARSENAL
The Army will be innovative and aggressive in its efforts to attract commercial business to the Radford Army Ammunition Plant, a contracting officer from the arsenal's headquarters said Tuesday."If we are successful then we will save the Army money, the taxpayers money and keep a viable defense base," said Doug Borgeson, contracting officer for the U.S. Army Armament, Munitions & Chemical Command in Rock Island, Ill.
Borgeson spoke to the Radford Chamber of Commerce and outlined the Army's plans to persuade private companies to use government-owned ammunition plants for production.
Congress passed a defense appropriations bill last year that provides the Department of Defense $200 million for attracting commercial work.
"It's not going to be easy, but I think it can be done here at Radford," he said.
Borgeson said Hercules Inc., the government contractor for the Radford plant, could get up to $2 million to lure commercial work. The Army is expected to announce this week that Hercules will get its first $300,000.
Starting in 1994, Hercules will have a contract allowing it to produce propellant for the Army and do commercial jobs at the same time.
With the Cold War over, the Army's demand for propellant has decreased and Hercules Inc. has laid off more than 1,300 workers in the past two years.
Larry R. Needs, who is heading Hercules efforts to commercialize, said the company hopes to secure contracts to make propellant for foreign countries.
He was tight-lipped with details, but said Hercules also is considering other ways to enter the commercial market.
In addition to Hercules, the defense bill allows other private companies to use Army buildings for commercial use.
"It would be super if we could find one large contractor to come in and use all the buildings we don't want and create thousands of jobs," Needs said. "But that's not going to happen."
So, it's up to the Army to pursuade small companies to expand and relocate onto Army property, Borgeson said.
He said some possible incentives are rent-free use of buildings, free upgrading of buildings, equipment upgrades and loan-guarantee programs.
Borgeson said the Army also will act quickly when a prospect shows an interest in using the Radford plant's facilities.
"We're not supposed to develop a bureaucracy and sometimes that's hard for us guys in the Army," he said.
The Army also won't limit its marketing efforts to companies that make explosive-related products. "If a company wants to locate and make refrigerators, that's fine too."