1. SPAFOA OVERVIEW Kenneth O. Olsen Capitol Hill Briefing Oct 27, 2015

2. Outline SPAFOA mission and history Snapshot of the accelerator market Key issue for US manufacturers

3. SPAFOA Mission “The SPAFOA provides a network for its members with business interests on US Government funded accelerator R&D and siting of large accelerator projects” Member meetings at major SC labs and project sites Monthly Newsletters, bulletins, issue papers Capitol Hill liaison and briefings The SPAFOA is an industry advocacy group fostering open communications between industry and Government, we do no market or consult for individual members

4. SPAFOA Evolution Our 10 year anniversary! Chartered in 2005 as a 501 (c) 6 not-for-profit DC corporation titled the “Linear Collider Forum of the Americas” (LCFOA). Ten original companies. In response to the changes in the ILC program, reorganized in 2008 to the Superconducting Particle Accelerator Forum of the Americas (SPAFOA) Renamed in 2012 to the Superconducting Particle Accelerator Forum of America to reflect 100% US industry membership

5. SPAFOA Meetings Fermilab Nov, 4, 2014 Brookhaven May 21, 2015 SLAC Sept 22, 2015 LBL Sept 23, 2015 All meetings are open, agendas and presentations posted on www.spafoa.orgwww.spafoa.org Average attendance 18 members

6. SPAFOA at SLAC Sept 22, 2015

7. SPAFOA MEMBERSHIP June 2015 COMPANYCITYSTATE Advanced Energy SystemsMedfordNY Air LiquideNewarkDE Amuneal manufacturing Corp.PhiladelphiaPA C. F. Roark Welding and Manufacturing BrownsvilleIN Communication Power Corp.HauppaugeNY Communications Power IndustriesBeverlyMA Diversified TechnologiesBedfordMA Everson TeslaNazarethPA Fermi Research AssociatesBataviaIL General AtomicsSan DiegoCA

8. SPAFOA MEMBERSHIP June 2015 CompanyCityState Keller TechnologyBuffaloNY Lakeshore CryotronicsWestervilleOH Linde CryogenicsTulsaOK Meyer ToolOak LawnIL Micro Communications, Inc.MerrimackNH Muons Inc.BataviaIL NiowaveLansingMI Parsons BrinkerhoffVirginia BeachVA Precision Boring Co.Clinton TownshipMI PHPK TechnologiesColumbusOH Scientific InstrumentsWest Palm BeachFL

9. SPAFOA Industry Diversity Forum represents a cross section of hi-tech accelerator industry SCRF accelerator components and systems Superconducting and high performance magnets Power electronics and instrumentation Materials science Precision manufacturing Civil engineering and construction management R&D lab and project management

10. SPAFOA BOD Oct 2015 Board of Directors is responsible for approving annual budget, meeting locations and agendas, and issue papers. Communications Power Industries Linde Cryogenics Meyer Tool

11. ACCELERATOR MARKETPLACE Accelerators for America’s Future (2009) identified 5 market categories: Energy and the Environment, Medicine, Industry, Security and Defense, and Discovery Science Report states there are about 30,000 accelerators in use today outside of Discovery Science SPAFOA activities are focused on Discovery Science, most member’s business interests go beyond this area Discovery Science accelerators in the US is a Government (one customer) market. The DOE market represent the leading edge technology used in several SC user facilities that require ultra high energy (GeV) machines

12. Industrial Accelerator Applications Survey of beam energy and beam power of industrial accelerators in use at present. Well known medical applications of accelerators shown as reference (Workshop on Energy and Environmental Applications of Accelerators DOE OHEP June 24-16, 2015)

13. Major Accelerator Application Areas

14. Two Facets of the Accelerator Market “Low” Energy (Commercial Customers) Evolutionary market 10% annual growth >10,000 in 1992; >30,000 now >6,000 in medical applications Multiple suppliers for major market segments “High” Energy (Government Customers) Each facility different design Gov’t, university and industry users SC technology showing dominance Leading edge technology No near term significant commercial market A few companies are in both facets

15. Accelerator Stewardship Program The mission of U.S. Dept. of Energy’s Office of High Energy Physics (DOE-HEP) is to broaden its accelerator R&D activities beyond its support of only discovery science to include medicine, energy and environment, defense and security, and industry Basic Research Needs workshops and reports are available applications for: 1. Medical 2. Lasers 3. Energy and Environment SPAFOA supportive, a few of our companies have received R&D funding from recent FOAs Detail overview of plans and progress to be presented by Eric Colby, DOE OHEP, later in this program

16. Discovery Science Market The SPAFOA strongly supports the accelerator stewardship program’s efforts to identify and fund research for markets outside of the Office of Science However while the stewardship program has identified several promising accelerator applications, the R&D funding projections are not adequate to pursue many of them in a reasonable timeframe The DOE Discovery Science market is the major source of near term funding for many high tech accelerator industries and is the foundation for growth and stability for the next 5 years However the appears the majority of this market is being lost to US industries through DOE’s current procurement policies Key question is how essential is a domestic supplier base for current and future DOE SC major science facilities?

17. Discovery Science Market Facts 840 XFEL cavities were manufactured in European companies, US was essentially excluded from bidding, all tooling was provided to the winning companies by DESY TRIUMF in Canada produced the newly operable SCRF accelerator based ARIEL using, as they proudly stated, 100% Canadian industry FRIB at Michigan State and the LCLS-II at SLAC have made major competitive awards to off-shore suppliers in Europe and China It has been very difficult to get substantive feedback for the procurement authorities in the field ISSUE: While highly qualified to produce limited quantities; US does not have an existing industrialization capability to supply several high tech components for future major SC projects and the ILC

18. Summary US industry lacks the manufacturing infrastructure to be competitive with foreign manufacturers for many hi tech components for discovery science facilities DOE SC is the sole customer for these components DOE market has major fluctuations US suppliers add significant value to major DOE science projects: Increased domestic capability and stability Foundation to implement stewardship program priorities Ease of life cycle support during facility operations Eliminate the risk of currency fluctuations ROI to taxpayers: jobs and corporate and personal income taxes

19. Recommendation DOE SC has invested approximately $250M for advanced accelerator component R&D with US industry over the past 10 years, several procurements were within the SBIR/STTR program Feedback from SPAFOA members indicate in the last 12 months over 50% of high tech procurement dollars for major projects for LCLS-II, FRIB and at Fermilab they bid on have been awarded to international companies SPAFOA members represent a subset of all bidders so the above statement may not be a valid statistic for all industry. SPAFOA requests that DOE SC collect and aggregate procurement data on individual purchases of high tech hardware over $50K and summarize by awards by hardware category and country SPAFOA BOD volunteers to assist DOE SC in the design of survey

20. Recommendation (Cont.) The SPAFOA, other industries, and DOE should jointly review the results of the survey to define the issues DOE SC should determine if an “industrialization initiative” is needed to strengthen US industries capability to serve their future discovery science needs If yes, DOE should explore possible options such as its National Network for Manufacturing Innovation (NNMI), SBIR/STTR advanced manufacturing tasks, competitive SC funded RFPs for tooling, CRADAs with labs, Small Business Voucher program etc. to achieve this capability SPAFOA and other members of industry are willing to engage with DOE for this “industrialization initiative”

21. Recommendation (Cont.) DOE SC should include an industrialization plan which maximizes the value added for US industry participation for all new programs as part of the DOE Order 413.2 CD-1 report