Pacific Engineering Inc.: PEI SMART Manufacturing Factory

ID

90

OrgName

Pacific Engineering Inc.

PhysicalAddress

1086 Saltillo Road Suite 2, Roca NE 68430

MailingAddress

Website

www.pacificengineeringinc.com

SocialMediaAccounts

Name

Dexter Myers

Title

Senior Vice President

EmailAddress

dexter.myers@pacificengineeringinc.com

Phone

+1 (626) 379-2282

Team

Yes

TeamExplanation

OrganizationalChart

PEI’s management team is lead by Rear Admiral Osie Combs USN (Ret.) who serves as president and Mr. Dexter Myers the Sr. Vice President. Rear Admiral Combs brings over 50 years of proven, highly skilled technical and management experience of complex systems both within the defense industry and the commercial sector. Mr. Myers has worked in the defense sector for 40 years and brings strong business acumen. Mr. Don Myers is a retired Army veteran and serves as the Chief Financial Officer. Rear Admiral Combs had numerous engineering and management assignments throughout his naval career which included at-sea assignments and industrial shore assignments. Adm Combs led the development of the worlds most advanced submarine the SEAWOLF class. Currently, the executive team leads a team of engineers and scientists in the development of a Corrosion Resistant Composite components for defense and commercial applications. Experienced, senior managers serve at the vice president level who are responsible for product design, development and production. Senior managers include a Mr. Dale Tiller, PE, vice president for engineering, Mr. Pete Perry, a vice president for business development and product transition, Mr. Dennis Simmons, vice president for manufacturing, Dr. Taylor Stockdale, a director for Material development, and Shawn Talley, a director for the computer aided design.

OtherCompletedProjects

PEI successfully designed and manufactured Ready Stow Group (RSG) Torpedo Launchers designed and qualified for the U.S. Navy. PEI’s Torpedo Launcher System featured: 1) High strength steel welded launcher frame, 2) Weight saving Composite materials, and 3) Armor Panels. PEI launchers met MIL-STD-901 Shock requirements. RSG launchers were installed on operational aircraft carriers USS Truman CVN-75 and USS Vinson CVN-77 which sailed around the world with the PEI launchers. PEI designed, manufactured, tested, and delivered completed Composite Launch Canisters for the Navy’s Countermeasure Anti-Torpedo Torpedo (CAT). Over 60 composite launch canisters were delivered to the Navy in support of an urgent operational need to provide anti-torpedo protection for the nation’s aircraft carriers. This special project for the Chief of Naval Operations lead to PEI’s receipt of the Small Business Administration Roland Tibbets Award for Best in Small business in 2014. PEI is currently under contract for other defense products. Examples include: • US Navy MK41 Vertical Launch System composite cell hatch development • US Navy MK41 Vertical Launch System composite uptake hatch development • US Navy Vertical Launch System MK29 composite canister • USMC Ground Based Air Defense (GBAD) composite components • US Army Expandable Command Post using composites Rapid On Demand – Portable Medical Platform (ROD-PMP) is a composite mobile clinic that PEI designed and manufactured in the middle of 2020 in response to COVID-19. The mobile clinics were innovated (designed) to create mobile testing and vaccine implementation centers in rural, tribal, and minority communities. PEI is specifically proud of Nebraska’s first drive-through clinic being placed in the North Omaha community at Metro Community College Campuses. PODs also were installed at the Winnebago Tribe Sovereign Nation, the University of Nebraska-Lincoln, and to the Nebraska Department of Health and Human Services which supported over a dozen sites in total. Based on the success ROD-PMP had in Nebraska, PEI portable clinics were used in underserved communities in Washington DC, Maryland, and Virginia. Over 50,000 people were tested and or vaccinated for COVID-19. PEI has teamed up with United Help Ukraine, a non-profit organization and has sent 2 PODS to the recently liberated regions of war-torn Ukraine. The PODS where full of humanitarian aid supplies and we re-purposed as mobile medical clinics. The key success of ROD-PMP was accomplished by utilizing PEI’s knowledge of composites and creating a lightweight yet sturdy structure that will last up to 40 years without corrosion or breakdown.

ProposalTitle

PEI SMART Manufacturing Factory

TotalBudget

1603000.0

LB1024GrantFundingRequest

1603000.0

ProposalType

Capital project

BriefProposalSummary

Pacific Engineering plans to build a SMART Advanced Manufacturing Facility at the Enterprise Park site at 16th and Locust Ave. This site is within the QCT outlined in LB 1024. If selected, PEI plan is transformational and will provide long lasting economic growth. PEI’s SMART Advanced Manufacturing facility, equipped with digital manufacturing and 3 D printing equipment. PEI has 7 products that we are developing under defense product research contracts in NE, so there is need to expanded PEI manufacturing equipment to fulfill the production quantities the military needs beginning in 2024. Since the Locust Street site is so close to Omaha airport it will allow key pentagon officials and other industry managers to easily visit PEI and inspect the work being performed. In August 2022, PEI leased and began renovating an existing two-story 3000 sq ft building at 2827 N. Locust Street to create office and training space so we can begin hiring our new staff. PEI also plans to develop mobile training PODs and use them across Nebraska to introduce junior college and high school students to 3D printing and introduce them to Advanced Manufacturing concepts. Over a 15-year period, $875M in new revenue to Nebraska with an expected return on investment of $58.33 for every $1 in state funding will be generated. PEI is planning to use a portion of the funding for 3D printing and digital manufacturing technology. “Digital twins” are identical virtual computer-generated models of the manufacturing equipment PEI will receive. Digital twins allow the hiring and training of staff immediately, using virtual displays. PEI plans to hire 100 employees and provide technical and management training. PEI will also team up with companies located at the iHUB to assist us in vertical spaces we do not possess. Our 3D printing capabilities, we allow PEI to provide low-cost manufacturing for iHUB new starts as needed. PEI jobs will be at an average annual salary of $70,000, thus creating a minimum annual direct economic impact of $1,828,600, an indirect economic impact of $592,400, and an induced economic impact of increased home ownership and revenue for school districts.

Timeline

PEI Proposed Schedule Timeline. July 2023 Grant Funding Received July 2023 Building Permits/Site Development December 2023 Groundbreaking for New Building July 2024 Interior Work on Building (Start) December 2024 Construction Complete January 2025 PEI Move in/outfitting May 2025 Grand Opening

PercentageCompletedByJuly2025

1.0

FundingGoals

Fundamental Change (i.e., a proposal that will continue to elevate North or South Omaha's presence and perception within the region, significantly improving the lives of area residents through physical development) Long-Lasting Economic Growth (i.e., a proposal that will foster gainful employment opportunities and financial investment in the area, leading to the creation of generational wealth and widespread economic vitality in North and South Omaha) Transformational (i.e., a proposal that will help energize, recharge, or spur significant and favorable advancements in North or South Omaha's function or appearance)

Community Needs

Other Sustainable Community (i.e., create or enhance housing, services, education, civic uses, recreation, etc.)

OtherExplanation

SMART Manufacturing Factory will create 100 new skilled jobs

ProposalDescriptionAndNeedsAlignment

PEI SMART factory will provide long-lasting economic growth will lead to long-term vitality in North Omaha. As households increase their wealth the opportunity for household ownership increases, crime decreases, better income for schools and youth growth will continue to lead more successful and prosperous generations. Over future decades of PEI’s growth will leave uncalculatable economic growth and impacts for North Omaha residents. At the average office salary of $70,000 this will begin the process of injecting a higher household income into the neighborhood of North Omaha. With this average household income nearly doubling from the average in North Omaha this will directly and indirectly improve lives. PEI’s manufacturing site will contribute to the transformational change to happen in North Omaha. PEI SMART manufacturing buildings will be a magnet that will draw other manufacturing companies to Nebraska. LB1024 is focused to improving the lives of residents and this begins with adding the proper jobs at scale. With the long-term focus of adding a minimum of 100 jobs we see LB 1024 and the IHUB leading the change from a transformational level.

VisioningWorkshopFindingsAlignment

When reviewing the SWOT analysis summary there are significant areas PEIs facility in North Omaha can help improve weakness points discussed. Based upon failing infrastructure, lack of connected businesses, lack of resources and jobs, these are all areas PEI will be able to continuable to in the community in transformational way. PEI’s current renovations and new manufacturing plan will build upon the need for improved infrastructure. It is evident the neglect over decades that is sorely showing on overall infrastructure. With the ability to bring corporate revenue employing high paying jobs above the $60k number (shown on page A60) North Omaha is a prime market due to the high walkability to employment, especially when reviewing 16th and Locust. Page B24 notes 37% of the working age in North Omaha, over 25,000 people, are the target age range for PEIs employment needs. Within Industry pay for production coming in below the $41k annual average salary, PEIs salary will be 89% higher than the State of Nebraska’s average for production individuals creating significantly more wealth and long-term ownership. This doesn’t include paid internship opportunities with high schools within North Omaha and partnerships with the schools themselves to bring a new level of technology to the classrooms for manufacturing than otherwise may have access to. Additionally, planned partnerships with iHUB, Sankofa Innovation District and Metro Community College, PEI looks to create/expand apprenticeship programs to ready the workforce.

PrioritiesAlignment

When PEI became familiar with LB1024, there was a distinct overlap in how PEI's desire aligns with the strategic priorities of the Bill. PEI’s did an internal SWAT analysis in March 2022 which revealed the need to increase its workforce while realizing that it had to do so in the face of a tight job market. PEI’s strategic development strategy included utilizing the talent within the underserved community like North Omaha. The location of our manufacturing facility within the North Omaha area represents a win-win. PEI believes North Omaha has been ignored for several decades with COVID-19 pushing livability to the threshold. PEI’s desire is to create economic prosperity for the community. As an already established company, we believe grow best by employing residents in North Omaha and injecting as much payroll capital as possible. LB1024 has many other focuses such as affordable housing and non-profit development that PEI is not directly affecting. However, through our efforts, we believe we can indirectly and there being induced benefits that derive from PEI’s efforts.

EconomicImpact

PEI SMART factory will provide long-lasting economic growth will lead to long-term vitality in North Omaha. As households increase their wealth the opportunity for household ownership increases, crime decreases, better income for schools and youth growth will continue to lead more successful and prosperous generations. Over future decades of PEI’s growth will leave uncalculatable economic growth and impacts for North Omaha residents. At the average office salary of $70,000 this will begin the process of injecting a higher household income into the neighborhood of North Omaha. With this average household income nearly doubling from the average in North Omaha this will directly and indirectly improve lives. PEI’s manufacturing site will contribute to the transformational change to happen in North Omaha. PEI SMART Manufacturing Factory will be a magnet that will draw other manufacturing companies to Nebraska. LB1024 is focused to improving the lives of residents and this begins with adding the proper jobs at scale. With the long-term focus of adding a minimum of 100 jobs we see LB 1024 and the IHUB leading the change from a transformational level.

EconomicImpactPermanentJobsCreated

100

EconomicImpactTemporaryJobsCreated

60 temp jobs to build PEI SMART Factory

EconomicImpactWageLevels

70,000.00 - 85,000.00

EconomicImpactAlignProposedJobs

In August 2022, PEI leased and began renovating an existing two-story 3000 sq ft building at 2827 N. Locust Street to create office and training space so we can begin hiring our new staff. PEI also plans to develop mobile training PODs and use them across Nebraska to introduce junior college and high school students to 3D printing and introduce them to Advanced Manufacturing concepts. PEI is planning to use a portion of the funding for 3D printing and digital manufacturing technology. “Digital twins” are identical virtual computer-generated models of the manufacturing equipment PEI will receive. Digital twins allow the hiring and training of staff immediately, using virtual displays.

CommunityBenefit

PEIs expansion would diversify the job availability and with the additional high paying jobs it will indirectly improve the local neighborhoods with more disposable income. We believe through the additional corporate revenue and employee wages the taxes and local spend will be reinvested in North Omaha for the improvement of everyone. PEI SMART manufacturing factory within the community will speak volumes toward community pride and the desire to develop more opportunities.

CommunityBenefitSustainability

Further, PEI's expansion needs the vertical support the iHUB and SANKOFA vision can provide and community leaders to develop holistic community development of building a workforce and generating community wealth.

BestPracticesInnovation

PEI’s SMART Manufacturing Facility provides the current state of the art manufacturing. Digital manufacturing is world class state of the art. PEI factory, staff, and equipment will be on par with major companies such as; Lockheed Martin, Boeing, General Dynamics, Raytheon. As noted above, PEI will use the digital twins to mimic real-world use of manufacturing equipment that will be used in the facility; and, processes that will be used and followed during the manufacturing process. This will allow for training of the workforce.

OutcomeMeasurement

PEI’s approach to paying for our technicians Junior college degree and supporting those wishing to continue their education at a 4-year institution is testament to our commitment to improving education and our commitment to high paying jobs. We will develop modern, marketable, transferable skills. Tracking of the jobs, certificates and degrees obtained will be a key metric that can be tracked.

OutcomeMeasurementHow

Employment and Unemployment stats are currently tracked by state and federal agencies. NDED performs numerous of economic studies and will be able to track improvements to the areas targeted by LB 1024.

OutcomeMeasurementCoinvestment

PEI will work with other parts of the State of Nebraska and Federal government agencies to provide additional funds to support higher education. For example, the SBA has programs that will sponsor underserved participants through their post-doctoral degree programs. Further, PEI will leverage its relationships with Defense programs and large contractors and UNL to support the educational programs.

Partnerships

Yes

PartnershipsOrgs

PEI looks to partner with iHUBs and support the goals and vision of LB450. Collectively, PEI’s efforts and drive to support sustainable economic growth and development is directly in line with LB450. For example, PEI looks to support the efforts of SANKOFA, a 501(c)(3), as an iHUB. As an iHUB comes online, companies who were part of the iHUB would be used by PEI. These innovation hubs could serve as a vital resource for stimulating verticals from small companies needed to support PEI’s manufacturing and other companies. A clear example would be a company that was developed in the iHUB that focused on data analytics could be used to support our SMART manufacturing facility. We would welcome a small company that was grown from the IHUB to be a partner/subcontractor to our efforts. PEI is committed to supporting the growth of those companies, such as, use the small company as a subcontractor on defense bid opportunities. PEI will also partner with Metro Community College to develop and supplement their curriculum to support the educational classes needed for our technology. Other opportunities include supporting secondary schools and Boys and Girls clubs, Community-based programs, and Faith-based programs. Additionally, PEI will augment hands on training using our digital twin technology.

PartnershipsMOU

in progress

Displacement

No

DisplacementExplanation

PhysicalLocation

PEI needs 7-1/2 acres at the Enterprise Park site off of Locust Street. It is in the North Omaha QCT, Tract 8.

QualifiedCensusTract

Within one or more QCTs

AdditionalLocationDocuments

PropertyZoning

Yes

ConnectedToUtilities

ConnectedToUtilitiesConnected

No

ConnectedToUtilitiesUpgradesNeeded

Yes

DesignEstimatingBidding

No

DesignEstimatingBiddingPackageDeveloped

No

DesignEstimatingBiddingCostsDetermined

Initial estimates were derived from average construction costs and land costs based on meetings with Investors Realty.

GeneralContractor

No

GeneralContractorPublicCompetitiveBid

GeneralContractorPublicCompetitiveBidWhyNot

RequestRationale

Pacific Engineering plans to build a SMART Advanced Manufacturing Facility equipped with digital manufacturing and 3 D printing equipment. PEI is planning to use a portion of the funding for purchasing 7-1/2 acres, designing and building a 45,000 sq ft SMART Factory with 3D printing, inspection and digital manufacturing technology. PEI has obtained equipment quotes from manufacturers and along with cost we have invested in the current ROCA NE facility we determined the budget for our request.

GrantFundsUsage

PEI will use the funds to purchase 7 1/2 acres, build 45,000 sg foot factory, train new staff and purchase digital manufacturing equipment. The major equipment is a 5 axis Overhead milling machine center, a 40 foot digital controlled filament winder and a 38 foot autoclave curing pressure vessel.

ProposalFinancialSustainability

Yes

ProposalFinancialSustainabilityOperations

PEI is currently under contract for other defense products. Examples include: • US Navy MK41 Vertical Launch System composite cell hatch development • US Navy MK41 Vertical Launch System composite uptake hatch development • US Navy Vertical Launch System MK29 composite canister • USMC Ground Based Air Defense (GBAD) composite components • US Army Expandable Command Post using composite . These products will be manufactured at the North Omaha Smart Factory.

FundingSources

PEI has several government contracts to develop composite products for the defense of our nation. The senior managers of these contracts are aware of PEI plan to expand to North Omaha and have committed to continue and expand the products they are buying from PEI. This will result in over 800M of revenue over a 15 year period once the SMART Factory is completed and operational.

FundingSourcesPendingDecisions

Non applicable

FundingSourcesCannotContinue

NO

Scalability

This proposal cannot be completed in smaller components.

ScalabilityComponents

Non applicable

FinancialCommitment

PEI is fully committed to invest their profit from the current ROCA operation into the new SMART Manufacturing Factory.

ARPAComplianceAcknowledgment

1.0

ARPAReportingMonitoringProcessAck

1.0

LB1024FundingSourcesAck

1.0

PublicInformation

1.0

FileUploads

Organizational Chart Plans and detailed descriptions, including pictures and a map of the site location/surrounding area Proposal Budget/Sources and Uses Schedule