Newsletter: Air Force is a small business contracting powerhouse

Welcome to Friday and your latest Dayton Business newsletter.

Thank you once more for reading. This newsletter is for you. You can reach me at tom.gnau@coxinc.com and (937) 681-5610. Drop me a line, tell me what’s going on. Here’s me on Twitter, Facebook and LinkedIn.

I doubt there was ever any doubt about this, but in case there is: Air Force Materiel Command (AFMC), anchored at Wright-Patterson Air Force Base, is a small business contracting powerhouse. That’s contracting with a “B,” as in billions.

Our first story has the numbers to back that up.

Air Force Materiel Command hits record, spends nearly $10B on small businesses

Headquarters, Air Force Materiel Command. Air Force photo

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The AFMC Small Business program had a record year in fiscal 2023, with $9.7 billion in awards, representing a $1 billion increase over fiscal 2022, AFMC said this week.

Bottom line: The AFMC contracting team obligated $64.3 billion this year and completed 58,600 federal acquisition regulation (FAR)-based contract actions in fiscal 2023.

These numbers represent 72% of total Air Force spending and 52% of all Air Force contract actions, the command said this week.

And speaking of small business-military connections ...

Ohio named ‘Mission Accelerator Center’ hub

Dennis Andersh, president and chief executive of Parallax

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Ohio has been chosen to host a defense innovation hub called Mission Accelerator Center to help get technology from small businesses in the state to the military quickly.

Parallax Advanced Research, a nonprofit research institute in Beavercreek, has been awarded $1.9 million from the Department of Defense to establish the hub that will be part of a national network, orienting small businesses toward national defense needs.

Jobs: The grant is for one year. If funding continues over a number of years, then 20 to 40 new jobs could be created, not all of them directly with Parallax, said Michael Gessel, vice president of federal government programs at the Dayton Development Coalition.

Lawn care company expanding with new $8M Dayton area facility

Oasis Turf & Tree headquarters at 897 Loveland Madeira Road in Hamilton County’s Loveland. The company is constructing a similar facility in Miami Twp. between Byers Road and Interstate 75. CONTRIBUTED

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A fast-growing Hamilton County-headquartered company is planning to grow its presence by opening a new Dayton area location, Reporter Eric Schwartzberg told us this week.

Construction has started on a $8 million facility for lawn care company Oasis Turf & Tree at 9600 Oasis Way, co-owner Angela Reindl said. The new facility is a 16-acre site on the east side of Byers Road, south of Benner Road and north of Old Byers Road, according to plans approved by the Miami Twp. Zoning Commission.

Growth: The building will add about 80 jobs once it reaches full capacity, resulting in an annual payroll of more than $4 million.

“We’re at 93 (employees) right now at our current facility and we’re overflowing,” Reindl said.

Franklin plant where Trotwood woman died in accident has had ‘significant issues,’ OSHA says

Faurecia Emissions Control Systems has entered into a settlement agreement with the Occupational Safety and Health Administration that calls for the auto parts manufacturer to abate hazards cited in July 2019 at its Franklin plant and pay penalties of $188,329. FILE PHOTO

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The Occupational Health and Safety Administration is investigating the death of a 26-year-old Trotwood woman who died just after midnight on a shift this past weekend at the Forvia (formerly Faurecia) auto parts manufacturing plant.

Ken Montgomery, area director of the federal OSHA area office in Cincinnati, told Reporter Ed Richter the woman climbed underneath a machine for a job-related task when the machine was activated.

Issues: Montgomery said Forvia has had “significant issues” over the years. Since 2013, there have been five reports requiring OSHA intervention and inspection, according to OSHA.

Dayton envisions Flight Line housing corridor

A man on a bicycle rides over a vacated rail line in East Dayton that the city of Dayton hopes to acquire and turn into a recreational trail. CORNELIUS FROLIK / STAFF

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“Long-shot” federal funding could fuel the development of a “Flight Line” housing corridor, city hall Writer Cory Frolik has reported.

Dayton is trying to buy an unused rail line that it wants to turn into a recreational trail called the “Flight Line,” and the city also is making a play for millions of dollars of federal funds to help improve housing along and near the track.

Why it matters: “It would be beneficial for housing in many, many East Dayton neighborhoods if the Flight Line truly comes to fruition,” said Tony Kroeger, Dayton’s division manager of planning and land use. “That presumes the acquisition successfully occurs, and we believe that it will.”

Family to sell storied Hartzell Aviation in Piqua to equity firm

James Brown, left, Hartzell Propeller Inc., executive vice president, and Joseph Brown, Hartzell president, stand next to the largest propeller the Piqua company still maintains. THOMAS GNAU/STAFF

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This story was a bit of a surprise.

A private equity firm is poised to take control of a company that boasts a history of more than 100 years — Hartzell Aviation. Hartzell Aviation operates Hartzell Propeller, which may be the more familiar name locally.

Why it matters: The company was born in 1917 when Orville Wright — a friend of Robert Hartzell, son of business founder George Hartzell — suggested that the Hartzells use walnut wood to build airplane propellers. Soon, with one employee, the older Hartzell was doing just that, according to the company’s history.

Jim Brown Jr. — father of James and Joseph Brown — bought Hartzell in 1987.

“As investors exclusively focused on critical suppliers to critical industries, Hartzell’s portfolio of flight-critical propeller and engine subsystems for a large and long-lived installed base fits perfectly with Arcline’s strategy,” the private equity firm said in a release.

Terms were not disclosed.

Quick hits

Coffee in Lebanon? Natalie Jones says that can be arranged.

Dayton barbecue? That also can be arranged.

Popcorn with your church service: Reporter Eric Schwartzberg explains.

Balance of power: It may shift on Dayton City Commission, Reporter Cory Frolik tells us.

Buckeyes: Marvin Harrison Jr. talks Penn State.

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