Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, April 30, 1993                   TAG: 9304300237
SECTION: BUSINESS                    PAGE: B4   EDITION: METRO 
SOURCE: MICHAEL STOWE STAFF WRITER
DATELINE:                                 LENGTH: Medium

PEACE-DIVIDEND SHARING MIGHT TAKE A SCRAMBLE

\ Companies hoping to get a share of the government's $472 million peace dividend were told Thursday they'd better act fast.

Officials from defense-related companies across Southwest Virginia, meeting at the Roanoke County Administration Center, also were told the money will be tough to come by.

The federal program, called the Technology Reinvestment Project, is designed to help companies transfer defense technology into commercial markets.

The Clinton administration announced the program in March, but this was the first chance local companies have had to find out how to apply for the money.

"This is going to be a very competitive program," said Alistair Brett, director of Virginia Tech's technology transfer program. Brett was one of three state representatives to explain the program.

Proposals for the defense-conversion program must be completed by July 23.

"It's a big rush," Brett said. "I wish it wasn't happening so fast, but it is."

The program is divided into four areas: $193 million for technology development; $224 million for deployment of the technology; $48 million for engineering education with a manufacturing focus; and $7 million for small-business innovative research.

Brett said the main focus is to encourage companies to team up with federal labs or universities to develop technology for a commercial market.

The government won't finance a company's entire project; companies will have to share at least 50 percent of the cost, Brett said. "And that money has to be real green," not in-kind contributions, he said. "This obviously is going to be a restraint for some of us."

Even so, Western Virginia officials remained optimistic about the program.

Jerry Fouse, the Southwest regional manager for the state Department of Economic Development, said he's hoping Hercules Inc. will team up with Virginia Tech and get some of the money.

Hercules, which runs the Radford Army Ammunition Plant, has laid off more than 2,000 workers in the past year. Hercules representatives weren't at Thursday's meeting because they had received a private briefing on the program.

Neil Gallagher, president of ITT Corp.'s Roanoke County plant, said his company will definitely submit a proposal, though he was a little concerned that ITT would have to provide matching funds.

ITT is hoping to find new markets for its night-vision goggles and develop other commercial products, Gallagher said.

Gerald Ward, evaluation analyst with Virginia's Department of Planning and Budget, said the state is looking for money to help companies pay the matching funds.

"We're looking in the corner and under all the rugs, but there isn't much around," he said.

David Dickson, director of community and business services for the state, said there will be a meeting in Richmond next Thursday to help companies write proposals.