Defense Department, Rep. Betty McCollum seek more Minnesota technology and innovation

Department of Defense officials on Friday told executives from Minnesota's largest companies that the state could play a much larger role in national security and defense projects.

"Minnesota is already involved in our national security, but Minnesota can play a bigger role. The bottom line is Minnesota needs to do more," said U.S. Rep. Betty McCollum while speaking to leaders from 75 defense contractors and other industries.

The event, held Friday at the University of St. Thomas in St. Paul, included remarks from U.S. Defense Undersecretary Heidi Shyu. Her visit to Minnesota aimed to highlight efforts by the Defense Advanced Research Projects Agency (DARPA) to bring together the best technology, academic, business and military minds and to spur innovative products that improve national security.

Officials from Cargill, Stratasys, Northrup Grumman, BAE Systems, Cummins, Calspan, Verterra Energy, Greater MSP and the Minnesota Department of Employment and Economic Development were among those in attendance.

In her comments, Shyu said there is often a disconnect between how the Defense Department operates and how small and large companies traditionally work, develop innovative products and grow.

For example, the Defense Department typically needs to know its inventory purchasing goals five years ahead of time, Shyu said.

Small and large companies, however, often work in annual increments. The contracting decisions, and subsequent defense funds, take too long for many of these companies to transition from prototyping to mass production of products for the department and its allies.

Shyu said the government is working to shorten such delays. It is also investing in Minnesota firms that specialize in renewable energy, energy storage, hypersonic technologies, semiconductors and other micro electronics segments.

McCollum, D-Minn., who chairs the U.S. House Appropriations Subcommittee on Defense, helped pass the House's $762 billion defense spending bill in June.

Company executives asked McCollum and Shyu to help small businesses better understand the government's product needs so they could stop duplicating efforts — or better coordinate with other companies also seeking federal aid for their high tech projects.

Others said they have considered closing the defense product divisions within their companies to focus on commercial customers with simpler processes. Business certainty, others noted, offers their workers steady, consistent employment.

As the defense chair in the U.S. House, McCollum said she often hears similar business challenges and concerns.

Shyu and McCollum spent Friday visiting several Minnesota companies slated to receive defense funds appropriated for fiscal years 2022 and 2023.

At Verterra Energy in St. Paul, founder Ted Christopher explained how his small, portable hydro-electric "energy-pods" are placed in rivers to gather and store energy.

Verterra, which has nine employees working on a portable micro-grid project with the Army Corps of Engineers, is set to receive $18 million in DOD funds.

Shyu saw the need for zero-emissions and safe fuel when she visited Afghanistan and spoke to a U.S. soldier who was badly injured when the fuel tanker she was driving was attacked.

McCollum and Shyu visited the University of St. Thomas' Microgrid Research Center, which is receiving $16.5 million in DOD funds over two years, and the hypersonic testing firm Calspan ASE in St. Paul, which is under consideration to receive $124.4 million in defense funds.

The pair also visited semiconductor chip firm Skywater Technology, which is receiving $18 million in defense funds this year and $25 million more next year.

The "Defense Department is looking for solutions and they are looking for partners [in Minnesota]," said Peter Frosch, CEO of Greater MSP Partnership, "What they heard from this room this morning is that we are ready to work with them and be a partner. Many of the issues and challenges that the DOD has as priorities we are already working to solve. So the timing for this conversation is perfect."