Reports - Mississippi Renewal

118 | DEFENSE AND GOVERNMENT CONTRACTINGdressed in another chapter, the Commissionoffers several recommendationsthat are unique to the needs of the defenseand government contracting sector.■ The governor should seek the supportof the state’s congressional delegationin requesting that the Department ofDefense and other federal agenciespermit, where appropriate, the useof government-controlled propertyas sites for temporary and affordablehousing. The lack of available sitesfor trailers and other manufacturedhousing has been a major factor indelaying their installation. Perhapsproperty owned by Stennis may beused for temporary housing in HancockCounty.■ FEMA should place larger defenseand government contractors in directcontrol of immediate temporaryhousing for their own employees,both now and in the future. TheStennis Space Center (Stennis) hasdemonstrated this arrangement betweentwo governmental entities,NASA and FEMA. The agreementbetween NASA and FEMA providesthat some administrative expense beborne by the defense contractor, butthe federal government is responsiblefor all costs associated with the executionof the temporary housing. Largedefense contractors readily have theresources and management systems toreduce significantly the time line ininstalling temporary housing.■ The larger defense contractors inthe region should become financialpartners in the transitional housingprograms coordinated by FEMA andEmergency Support Function 14(ESF-14). If necessary, the MississippiLegislature and United States Congressshould grant financial incentivesFederaldefense andgovernmentcontracting inMississippirepresents:■ A $6 billion stateindustry, 60 percent ofwhich is focused in theGulf Coast region hardesthit by HurricaneKatrina.■ More than 30,000 jobs.■ An estimated annualpayroll of $1.5 billion,generating millions intax revenue to supportcommunity services,public education,and infrastructuremaintenance.Commission Researchto encourage this program. The contractorwould bear the financial responsibility,but some of the expensescould be offset by governmentalsubsidies, tax incentives, and rentalincome. The contractor would realizeits bigger return on investmentthrough maintaining a workforce andcontinuing production.Addressing the Skills GapThe lack of workers, especially thosewith the required technical skills andprofessional training, directly affects theability of companies to meet contractproduction schedules. This situationthreatens not only current contracts butalso those they may compete for in thefuture. Given the contributions of thissector to the state economy, the skilledlabor shortfall is a significant economicdevelopment issue.The Commission recommends thatthe boards of trustees of the communitycolleges immediately assess currentand future training needs and establishprograms to fill the gap. State funds existfor skill training and should be matchedby the community colleges to specificneeds of these industries.Putting Retired FederalFacilities to New UsesThe Mississippi Army AmmunitionPlant (MSAAP) at Stennis and NavalStation Pascagoula (NSP) are amongfacilities designated for transfer or closureby the Department of Defenseand Congress as a result of the recentround of Base Realignment & Closure(BRAC) studies. For all practical purposes,both have been closed for sometime. The ammo plant has been mothballedfor years, and ships previouslyhome-ported at Naval Station Pascagoulaeither have been decommissioned