The Space and Naval Warfare Systems Center Atlantic provides information technology solutions for naval, joint, national, and coalition forces. It has over 3,900 employees and works with 9,200 industry partners. SSC Atlantic conducts research, testing, and integration work at its facilities in Charleston. It has a large economic impact in South Carolina and helps develop the state's technology workforce.

12. Silicon
Harbor
The Future of the
Charleston Technology Sector

13. Tech Industry
Create new IP
design software
provide infrastructure
Learn continuously

14. Software developer
algorithm of life
1: pick an amazing city
2: find a sick job
default: start a software
company
Charleston Attracts

16. Software Entrepreneurship
ATD, Blackbaud, Benefitfocus, Bibliolabs, Blue
Acorn, Blue Key, Blue
Ion, BookSurge, Boomtown, CanteyTech, Creat
eSpace/Amazon, Cybersprockets, eGroup, Eth
ority, Good Done Great, Information
Alchomy, Jack Russell, King &
Partners, Mandex, Modus21, PeopleMatter, Sa
wgrass, Social123, SPARC, Visualive.tv, ...
100+

17. Software Sectors
biomedical, healthcare, DOD, defense
contractors, Dept of
Commerce, transportation/logistics, aeros
pace, energy, software
security, banking/finance, big
data/analytics, saas, paas, iaas,... 1x103+

18. Recruiting Tech
Companies
VCs know Charleston is a 2x location
programmer salaries
real estate cost
Young companies incubate

19. Fastcompany, June 2012

20. Paradigm Shifts
Information economy
Cloud computing
Cheap compute cycles
Cheap memory
Information = new oil

21. Computational Thinking

22. Computational Thinking
...in the
US

23. Richard Florida
Creative Class
creates new IP to grow info economy
Service Class
serve the growing high tech
industries

24. Local Assets
Geography (beach, green space, proximity)
Arts (music, art, playhouses, SPOLETO)
Education (CS, Data Science, CITA)
Food (Chefs, beer, bars, coffee)
...but that's not all

25. Tech Fabric
Educational threads
CS @
CofC, Citadel, CSU, Clemson, USC
CodeCamp
CofC Center for Continuing Ed & PD

26. Tech Fabric
Incubation and Acceleration
Flagship – CHS Digital Corridor
The Lowcountry Innovation Center
SCRA MUSC Innovation Center
Mount Pleasant Incubator

27. Tech Fabric
Social threads
Tech Meet ups
Maker labs
User groups
Events

28. Growing Tech Talent
1980-2012: 600 CS graduates from CofC
1987 100 CS undergraduate students
95% exited Charleston
2011 251+ CS undergrads
84% stayed in Charleston

29. 2x Talent Pipeline
Today: 200 unfilled software developer jobs
30-40 CS grads/yr
Tomorrow: 500 undergrads by 2016
100 CS grads/yr by 2016
Digital Media Center 2013

30. Foster the Culture
talent, technology, tolerance
coffee shops, foodies, youth, nightlife in
city
universities and research
live-work-play-work
bandwidth and network ubiquity

31. Foster the Culture
proximity of living
space to work space
lateral job movement
potential
direct flights to VCs
and markets
bandwidth

32. Risks to Charleston
Staying parochial vs. competing
nationally
Ignoring native assets vs. leveraging
them

33. Local challenges
Tolerance
cycling, skate boards, kayaks, sailing
LGBT community
bohemians
internationals

34. Local challenges
alternate Transportation
car sharing / electric plug stations
cycling
buses with GPS data
light rail
pedestrian centric

35. Local challenges
Space
more landing pads
airBnB for startups
new designs for live-work-play
new business models for commercial
space

36. Local challenges
State support for tech
Infrastructure
Incentives
Investors
Angel funds
Venture funds

37. Sense the Urgency
Agility
Adaptability
Timing

38. Silicon
Harbor
Let's move there together

41. Space and Naval Warfare Systems
Center Atlantic
11 October 2012
Commercial Real Estate Mr. Christopher Miller
Market Forecast SSC Atlantic
The Daniel Island Club Executive Director
Statement A: Approved for Public Release. Distribution is unlimited (09 October 2012).

42. We are a Department of the Navy
Information Technology (IT) Command
We rapidly deliver and support solutions that enable information
dominance for our Naval, Joint, National, and Coalition Warfighters.
SSC Atlantic HQ 3,910 Civil Service Personnel
SSC
Command
HQ
127 Military Personnel
9,200 Industry Partners
Strategically located to quickly respond to new threats and develop practical solutions
Statement A: Approved for Public Release. Distribution is unlimited (09 October 2012). 42

43. Joint Base Charleston Major Commands
• Army Strategic Logistics Activity
JBC Weapons Station
Joint Base CHS Charleston (ASLAC)
Total Personnel: 21,800 • Pre-positioning ships
Real Estate: 23,777 Acres • Single point of entry for returning
Assets: $12.2 Billion MRAPs / MATVs
Tenant Units: 53
• Naval Health Clinic
SSC Atlantic (Chs) • Serving 6,915 Navy, 6,000 VA
Personnel: • Naval Nuclear Training Command
2,590 Govt & Mil
82 Buildings (NNPTC) and
1,409,000 Gross sq ft
485,160 sq ft Lab space Naval Nuclear Power Training
11 SCIFs Unit (NNPTU)
• 4,500 Nuclear Propulsion Students
Air Force Base
Joint Base CHS • Navy Munitions Command /
Naval Weapons Station
Charleston AFB Former CHS Naval • 269 Bunkers / 62 million # net weight
Shipyard
• 628th Air Base Wing • 841st Transportation Battalion
• Installation Command and • 35% of all OIF / OEF material;
Expeditionary Combat Forces
leading port for surge
• 437th / 315th Airlift • Naval Consolidated Brig
Wings • Level II Medium Security
• C-17 Direct Delivery anywhere
in the world • SSC Atlantic
• C4ISR for the Warfighter and the Nation
Statement A: Approved for Public Release. Distribution is unlimited (09 October 2012). 43

44. Command History and Workload
6
FY 2011
$5.3
5 Total Obligation
Total Contracting Effort* Available Ceiling
Authority $ Billions
$ Billions
4
$3.52 B $8.3 B 3 1994-2011
Total Contract Actions* Total Small Business *
2
18,775 $955 M 1
*Based upon FPDS-NG data as of 24 JAN 2012
Part of FISC Charleston
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Part of CNSY NCTC Jacksonville
SSC Atlantic
NESEA Washington NCTC Norfolk ( Navy Working Capital
and Mission Funds )
NAVELEX Portsmouth NCTC Pensacola
NESEA St. Inigoes NCTC Washington SSC New Orleans Joint Base
Charleston Standup
NAVELEX Charleston NISE East SSC Charleston SSC Atlantic
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
BRAC1993 BRAC 2005
NavMASSO joined SPAWAR as SSC Chesapeake SSC Norfolk
Statement A: Approved for Public Release. Distribution is unlimited (09 October 2012). 44

45. Today’s Environment:
Constrained Budgets and Uncertain Threats
▼ Fiscally Oil Surges as
Middle East
 Similar to interwar period from 1919-1939 Tensions Escalate
 Difficult choices & opportunities
2 China tech
firms called
▼ Geopolitically spy
 New global competitors suppliers
 Decreasing natural resources
Rising tension
between Syria Cyber Attacks
▼ Militarily and Turkey. Nearing Statistical
Certainty
 Post 9/11
 Evolving military strategy
Panetta: We are
▼ Technology strongly committed to
 Cyber evolving as warfare area strengthening our
 Big Data Challenge defense partnerships
 Digital natives
Statement A: Approved for Public Release. Distribution is unlimited (09 October 2012). 45

46. Strategic Guidance
National CNO’s Navigation Plan
Defense Describes the Navy’s budget
submission for FY2013-2017
Strategy
Increased focus on
PACOM, Cyber, and
Special Operations
CNO’s Sailing
Direction
Guidance on
readiness, teamwork and
winning from the Sea
SPAWAR
Guidance
Delivering core Naval Information Dominance programs that
enable information to become a main battery of our
warfighting capability
Statement A: Approved for Public Release. Distribution is unlimited (09 October 2012). 46

47. Our Work Sourcing Approach
Workforce Composition %
Government
Technical 100
Expertise, Planning & 0 100
Engineering
– Eng & Manufacturing Dev.
– Materiel Solution Analysis
– Production & Deployment
– Technology Development
Government
Enterprise
– Operations & Support
Industry
Contract Strategy that
maximizes competition Monitoring &
and agility Measuring Products & Services
Performance
Core Reusable
Components
100 0
A B C
Program Milestone
Integrated government / Effective, innovative and affordable
industry partner team = solutions for the warfighter
Leveraging Technology Speed to Capability
Statement A: Approved for Public Release. Distribution is unlimited (09 October 2012). 47

48. Facilities – Optimized for Requirements
2.5M sq ft, 125 Buildings Command-Wide National Research Assets:
 RF Test Facility (Poseidon Park)
 Vehicle Integration Solutions Center
 USMC Digital Integration Facility (DIF)
 Service Oriented Architecture (SOA) Test
Enterprise Engineering and
Certification (E2C)
Vehicle Integration Solutions Center Laboratories
 Environmental Test Lab
 Anechoic Test Chamber
 Shock and Vibration Test Capability
 Platform Test & Integration Facility (SCN)
Common Submarine Radio Room SSC Atlantic Data Center
 Commercial and DoD Satellite
Communication (Complex D)
 RDT&E Network
 Air Traffic Control Test Lab
 C4I End-to-end Integration Lab
Air Traffic Control Building Testing and Integration Facility  Multidisciplinary Research Center
Statement A: Approved for Public Release. Distribution is unlimited (09 October 2012). 48

49. Workforce Development
Civil Service Personnel by Competency Acquisition Workforce
Contracts Science & Technology ▼ Bringing down average age
Finance <1%
Corporate  Current Avg Age 44 (from 46 in 2003)
Operations
 242 New Professionals
Program  105 Student Interns
Management Engineering
We are the
largest employer
▼ 2,293 billets (up from 1,889 in FY11)
of electrical
Logistics & engineers in SC ▼ Primary career fields
Fleet Support  IT Specialists, Electronics Engineers,
3000 Computer Scientists, Mgmt &
Bachelors Masters Doctorate Program Analysts, and Elec. Tech
2500 32
26 ▼ Emphasis on training
2000 21 23
 $11M spent in workforce
# Employees
1500 17
19 development in FY12
1000  $2M spent in labor for acquisition
credentials in FY12
500
2011 USD AT&L Workforce
0
2007 2008 2009 2010 2011 2012 Development Silver Award
Statement A: Approved for Public Release. Distribution is unlimited (09 October 2012). 49

50. STEM Outreach:
An Investment in our Nation’s Future
Science, Technology, Engineering and
DimensionU Competition
INSPIRE Mathematics (STEM) education to
the next generation of scientists
and engineers, as well as their improve scientific and Collegiate Cyber Defense Competition
parents and teachers. technology literacy and
the competitiveness of
our nation’s students.
ENGAGE
IT Shadow Days
students build their STEM Cyber
confidence and skills through Security
Syllabi
hands-on learning. Team
SEAPEARCH
Gulf Coast Regional
Challenge
EDUCATE
Robotics Competition
students to be well prepared
for employment in STEM
careers that support the Navy
and Marine Corps.
HBCU Pipeline Project
EMPLOY Science Fair in New Orleans ROTC Engagement
retain and develop naval
STEM professionals. Learn more visit
https://suss.spawar.navy.mil/trqfqe
Statement A: Approved for Public Release. Distribution is unlimited (09 October 2012). 50

51. Economic benefits to S.C. and the Nation*
More than $9 Billion economic impact in the U.S.
SSC Atlantic In South Carolina
 $2.6 Billion annual economic impact
 Accounts for 21,534 jobs in the
Charleston area
− Responsible for 1 out of every 14 jobs
 One of the fastest growing business ▼ Visitors to SSC
operations
Atlantic, Charleston
− Grew 238% from 2000 through 2009
Office
 Largest employer of electronics
engineers  Bring in $27 Million to
the Charleston area
 One of the top three employers of each year
Knowledge Economy workers
 Support 360 jobs in
* This info taken from economic impact study done by the Division of Research, Darla
Moore School of Business at the University of South Carolina DTD 10.04.2009 tourism
Statement A: Approved for Public Release. Distribution is unlimited (09 October 2012). 51

52. Final Thought
Statement A: Approved for Public Release. Distribution is unlimited (09 October 2012). 52

53. We Make IT Count for the Warfighter
and the Nation
Web: http://www.public.navy.mil/spawar/Atlantic Facebook: http://www.facebook.com/spaceandnavalwarfaresystemscommand
Twitter: http://twitter.com/SPAWARHQ Employment opportunities: www.USAJOBS.gov
Statement A: Approved for Public Release. Distribution is unlimited (09 October 2012).

56. Raymond Owens
October 11, 2012

57. Real Gross Domestic Product
Percent change from previous quarter at annual rate
8 8
7 7
6 6
5 5
4 Q2 4
3 1.3% 3
2 2
1 1
0 0
-1 -1
-2 -2
-3 -3
-4 -4
-5 -5
-6 -6
-7 -7
-8 -8
-9 -9
-10 -10
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Bureau of Economic Analysis/Haver Analytics 57

58. Real Gross Domestic Product
2011 2012
Q2 Q3 Q4 Q1 Q2
CHANGE FROM PREVIOUS QUARTER AT COMPOUND ANNUAL RATE [Percent]:
Gross Domestic Product 2.5 1.3 4.1 2.0 1.3
Personal Consumption Expenditures 1.0 1.7 2.0 2.4 1.5
Nonresidential Fixed Investment 14.5 19.0 9.5 7.5 3.6
Structures 35.2 20.7 11.5 12.9 0.6
Equipment & Software 7.8 18.3 8.8 5.4 4.8
Residential Fixed Investment 4.1 1.4 12.1 20.5 8.5
Exports of Goods & Services 4.1 6.1 1.4 4.4 5.3
Imports of Goods & Services 0.1 4.7 4.9 3.1 2.8
Government Consumption Expenditures & Gross
-0.8 -2.9 -2.2 -3 -0.7
Investment
Final Sales to Domestic Purchasers 1.8 2.2 2.1 2.2 1.4
LEVEL IN QUARTER AT SEASONALLY ADJUSTED ANNUAL RATE [Billions of Chained (2005) Dollars]:
Change in Private Inventories 27.5 -4.3 70.5 56.9 41.4
Net Exports of Goods & Services -399.6 -397.9 -418.0 -415.5 -407.4
Source: Bureau of Economic Analysis/Haver Analytics 58

59. Nonfarm Payroll Employment
Millions of Persons
139 139
138 138
137 137
136 136
135 135
September
134 134 mil. 134
133 133
132 132
131 131
130 130
129 129
128 128
2006 2007 2008 2009 2010 2011 2012 2013
Source: Bureau of Labor Statistics/Haver Analytics 59

60. Nonfarm Payroll Employment
Quarterly average of monthly changes, thousands of persons
500 500
400 400
Q3
300 Avg. 300
200 200
100 100
0 0
-100 -100
-200 -200
-300 Monthly Change -300
-400 Sep. 114 -400
Aug. 142
-500 -500
Jul. 181
-600 Jun. 45 -600
May 87
-700 -700
-800 -800
2006 2007 2008 2009 2010 2011 2012 2013
Source: Bureau of Labor Statistics/Haver Analytics 60

61. Civilian Unemployment Rate
Percent
11.0 11.0
10.5 10.5
10.0 10.0
9.5 9.5
9.0 September
FOMC Forecast
9.0
7.8%
8.5 8.5
8.0 8.0
7.5 7.5
7.0 7.0
6.5 6.5
6.0 6.0
5.5 5.5
5.0 5.0
4.5 4.5
4.0 4.0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Notes: FOMC forecast is the central tendency for the Q4 levels, from the September 12-13 meeting.
Source: Bureau of Labor Statistics, Board of Governors, Haver Analytics 61

62. Personal Income & Expenditures
12 Month % Change
6 6
4 Real Personal 4
Income
August
2 2
Real Personal
Consumption Expenditure
0 0
-2 -2
Month over Month % Change
-4 Jun. Jul. Aug. -4
Income 0.2 0.1 -0.3
Expenditures -0.1 0.4 0.1
-6 -6
2006 2007 2008 2009 2010 2011 2012 2013
Source: Bureau of Economic Analysis/Haver Analytics 62

63. Existing Single-Family Home Sales
Millions of Homes
6.5 6.5
6.0 6.0
5.5 5.5
5.0 5.0
August
4.5 4 .3 mil. 4.5
4.0 4.0
3.5 Average Annual Existing Home Sales: 3.5
1990 through 1999
3.0 3.0
2.5 2.5
2006 2007 2008 2009 2010 2011 2012 2013
Source: National Association of Realtors/Haver Analytics 63

64. Private Multi-Family Housing Starts & Permits
Millions of Starts & Permits
0.7 0.7
0.6 0.6
Permits
0.5 0.5
0.4 0.4
August
0.3 1990 – 1999 Average Multi-Family Starts
0.3
0.2 0.2
Starts
0.1 0.1
0.0 0.0
2006 2007 2008 2009 2010 2011 2012 2013
Source: Census Bureau/Haver Analytics 64

65. Real Investment in Equipment & Software
Percent change from previous quarter at annual rate
30 30
25 25
20 20
15 15
Q2
10 10
4.8%
5 5
0 0
-5 -5
-10 -10
-15 -15
-20 -20
-25 -25
-30 -30
-35 -35
-40 -40
2006 2007 2008 2009 2010 2011 2012 2013
Source: Bureau of Economic Analysis/Haver Analytics 65

66. Real Investment in Nonresidential Structures
Percent change from previous quarter at annual rate
40 40
35 35
30 30
25 25
20 20
15 15
10 Q2 10
5 0.6% 5
0 0
-5 -5
-10 -10
-15 -15
-20 -20
-25 -25
-30 -30
-35 -35
-40 -40
-45 -45
2006 2007 2008 2009 2010 2011 2012 2013
Source: Bureau of Economic Analysis/Haver Analytics 66

67. Industrial Vacancies & Rents
United States Charleston, S.C.
Percent Index Percent Index
16 7.5 24 7
Torto Wheaton
15 Real Rent Index
(Right Axis) 7.0
22 6.5
14
13 6.5
20 6
12
6.0
11 18 5.5
5.5
10 Vacancy Rate
Vacancy Rate 16 (Left Axis) 5
9 (Left Axis) 5.0
Torto Wheaton
8 Real Rent Index
14 (Right Axis)
4.5
4.5
7
6 4.0 12 4
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: Torto Wheaton Research 67

68. Manufacturers’ New Orders
Current $, Billions
500 500
August
480 480
460 460
440 440
420 420
Twelve-Month
Moving Average
400 400
380 380
360 360
340 340
320 320
300 300
2006 2007 2008 2009 2010 2011 2012 2013
Source: Census Bureau/Haver Analytics 68

69. Office Vacancies & Rents
United States Percent
Charleston, S.C. Index
Percent Index
18 30 16 23
Office Vacancy Rate
17 (Left Axis) 29 Torto Wheaton
14 Real Rent Index 22
16 28 (Right Axis)
15 27
12 21
14 26
13 25 10 20
12 24
8 19
11 23
Torto Wheaton
10 Real Rent Index 22
(Right Axis)
6 Office Vacancy Rate 18
9 21 (Left Axis)
8 20 4 17
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: Torto Wheaton Research 69

70. Net Absorptions & Employment
Thousands of Employees, Quarterly Averages Millions of Square Feet
250 50
200 40
150 30
100 20
50 10
0 0
-50 -10
-100 -20
Net Absorptions,
-150 Office Buildings Changes in -30
(Right Axis) Employment
(Left Axis)
-200 -40
-250 -50
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012
Notes: Office employment is the sum of employment in information, financial activities, and professional and business
services.
Source: Torto Wheaton, Bureau of Labor Statistics, & Haver Analytics 70

71. Consumer Price Indexes
12 Month % Change
6 6
5 All Items 5
4 4
3 3
August
2 2
Core CPI
1 1
0 0
-1 -1
Jul. Aug.
CPI: All Items 1.4% 1.7%
-2 Core CPI 2.1% 1.9% -2
-3 -3
2006 2007 2008 2009 2010 2011 2012 2013
Source: Bureau of Labor Statistics/Haver Analytics 71

72. TIPS Inflation Compensation
Percent
4.5 4.5
4.0 4.0
3.5 5-Year October 3.5
5 Years Ahead 5th
3.0 3.0
2.5 2.5
2.0 2.0
5-Year
1.5 1.5
1.0 1.0
0.5 0.5
0.0 0.0
-0.5 -0.5
-1.0 -1.0
-1.5 -1.5
-2.0 -2.0
-2.5 -2.5
-3.0 -3.0
2006 2007 2008 2009 2010 2011 2012 2013
Source: Board of Governors/Haver Analytics 72

73. Monetary Policy Instruments
Percent
7.0 7.0
6.5 6.5
Federal Funds Target Rate
6.0 6.0
5.5 5.5
5.0 5.0
4.5 4.5
4.0 4.0
3.5 3.5
3.0 Primary Credit Rate
3.0
2.5 2.5
2.0 2.0
1.5 1.5
October 5th
1.0 Discount Rate 1.0
(discontinued) Federal Funds Rate
0.5 Target Range 0.5
0.0 0.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Source: Board of Governors/Haver Analytics 73

74. Federal Reserve System Assets
$, Billions
TALF: $2 Term ABS Lending
3000 Total: $2,867 Facility (TALF): $1 Total: $2,847
AIG & Bear
Foreign
Stearns: $4
2800 Currency
Miscellaneous: $258 Miscellaneous: Swaps:
AIG & Bear $264 $13
2600 Foreign Stearns: $2
Currency
Swaps: $20
2400 Agency MBS: $843 Agency MBS: $835
2200
2000
1800
Agency Agency
Debt: $87 Debt: $83
1600
Treasury Securities: Treasury Securities:
1400 $1,652 $1,648
1200
1000
9/12/2012 10/3/2012
Notes: Discount Window lending is less than $1 bln. as of 1/25. Foreign Currency Swaps were less than $1 bln. until 10/19/11.
Source: Board of Governors/Haver Analytics 74

75. Capital Market Rates
Percent
10.5 10.5
9.5 9.5
Corporate BBB
8.5 Bond Rate
8.5
30 Year
7.5 Conventional 7.5
Mortgage Rate
6.5 6.5
5.5 5.5
4.5 4.5
3.5 3.5
October 5th
Corporate AAA
2.5 10-Yr. Treasury 2.5
Bond Rate
Bond Rate
1.5 1.5
0.5 0.5
2008 2009 2010 2011 2012 2013
Source: BofA Merrill Lynch, Board of Governors, Haver Analytics 75

82. Ready-to-use Web Content
Download copies of the reports
(and more commercial research
resources!) at
CharlestonRealtors.com/CID