2005 Draper Laboratory Annual Report

Draper Laboratory 2005ANNUAL REPORT

VISIONNational center of excellence in the applicationof technology to the analysis, development,measurement, and control of complex,dynamic systemsMISSIONTo serve the national interest in applied research,engineering development, education, andtechnology transferInnovations in Engineering

Draper Fiscal Year 2005 was marked by the steady growth in Laboratory programs, technologies, and staff that has continuedfor the last five years. Total revenues were nearly $322 million, an increase of over 15% from last year. The combination ofincreased revenues and controlled overhead expenses has resulted once again in a decline of our overhead rate, keeping us ontrack to lower rates steadily in the future.We continued our expanded efforts for the U.S. Navy’s MK6 Missile Guidance System Life Extension effort, which accountsfor the largest revenue source from funded programs. Most other program areas saw significant revenue growth, with SpaceSystems and Special Operations having the greatest rate of growth.Total employment grew to more than 1,100, of whom over 70% are engaged directly in the technical work of the Laboratory.An aggressive hiring campaign coupled with our traditional low attrition has resulted in a net gain of 70 technical staff. Weintend to hire additional staff as needed.Since the development of new technologies is fundamental to Draper’s purpose to serve as a strong research and developmentorganization in the national interest, our primary work remains focused on developing innovative solutions for the futuretechnology needs of the Department of Defense, NASA, and other government agencies. Efforts towards this goal are focusedon future strategic systems concepts and technologies; precision targeting and weapons systems; autonomous air, land, sea,and space systems; information integration, dissemination, and control systems; and distributed sensors and networks.In addition to this, our recent developments in microelectromechanical sensors, low-power electronics, biomedicalengineering, and chemical/biological defense have attracted support from a broader set of sponsors.The Laboratory’s robust Independent Research and Development (IR&D) Program supports these efforts in technologydevelopment. We invested $20 million in IR&D this year.Investments in technology development are paralleled by significant investments in infrastructure. We have streamlinedbusiness operations and made budget, personnel, and programmatic information available on a timely basis through thesuccessful implementation of the Enterprise Resource Planning (ERP) initiative in April.We have begun construction of a new building which will double the size of the Laboratory’s Hill Building at One HampshireStreet. Schlumberger Technology Corporation’s Doll Research Center will occupy approximately half of the total space of thecombined complex; the remainder will be utilized by Draper and other tenants.

2005 DRAPER 2| 32005A LETTER FROM THE CHAIRMAN AND PRESIDENTTECHNOLOGY TRANSFERDraper’s venture capital subsidiary, Navigator Technology Ventures, LLC (NTV), expanded its portfolio through its launchof a new company, RenalWorks Medical Corp., which will leverage Draper-developed intellectual property. RenalWorks willcommercialize micro dialysis units based on Draper’s MEMS technology. NTV’s portfolio also includes Sionex Corporation andFQS International, Draper spin-offs; as well as Polychromix; Actuality Systems, Inc.; Aircuity, Inc.; Tizor Systems; Polnox Corp.;Assertive Design, Inc.; and HistoRx, Inc.The Draper Technology Licensing Office successfully negotiated licenses for Laboratory-generated intellectual property withInvervac, Inc.; RenalWorks Medical Corp.; and Bioengineered Networks, Inc.MEMBERSHIP OF THE BOARD AND CORPORATIONThe stewardship and counsel of Draper’s Board of Directors and Members of the Corporation are invaluable assets to theLaboratory. We thank all the Members for their advice over the past year.Thomas W. Reed, author and former chairman and chief executive officer (CEO) of Quaker Hill Development Corp., retiredfrom the Board this year. We welcomed a new Member to the Board and the Corporation, John A. Gordon, General,U.S. Air Force, (Retired).Kent Kresa, retired CEO of Northrop Grumman Corporation, resigned his membership in the Corporation due to othercommitments. Robert Brown, provost of Massachusetts Institute of Technology, resigned his membership to focus on hisnew post as president of Boston University. Ralph H. Jacobson, Major General, U.S. Air Force (Retired), and George Rabstejnek,Chairman of the Massachusetts Eye & Ear Infirmary, became Members Emeriti. Miriam E. John, Vice President of the CaliforniaDivision of Sandia National Laboratories, and Lester Lyles, General, U.S. Air Force (Retired), joined the Corporation.In closing, we applaud the employees of Draper Laboratory for their accomplishments this year. As we look ahead,we are confident that their talents will be put to effective use in helping to solve some of our nation’s most pressingengineering problems.Vincent VittoPresident and Chief Executive OfficerJohn R. KreickChairman of the Board

STRATEGIC SYSTEMSCLOCKWISE FROM THE TOPA 3-D model of a new guidance design. The model is used formechanical design verification and thermal analysis in advanceof fabricating actual hardware.A cutaway of a MK6 guidance system. It is a 4-gimbal, highlycomplex and compact, inertial guidance system used in theTRIDENT D5 missile.The TRIDENT submarine hosts our nation’s sea-based strategicdeterrent missile systems. The missile’s guidance system wasdesigned by Draper.The Silicon Oscillating Accelerometer, a very small, solid-stateinertial instrument, is being developed as one of the nextgeneration of strategic-grade sensors.

2005 DRAPER 4| 5Draper’s MK6 guidance system modernizationwill lower the Navy’s future maintenance costsand provide flexibility to support new missions.Over the last year, Draper has made significant progresstoward increasing our value to both our Navy and AirForce sponsors.FOR THE U.S. NAVYAs the prime contractor for the TRIDENT D5 Missile guidancesystem, Draper is modernizing the missile’s MK6 inertialguidance system to extend its life to the year 2042.This major modernization effort, called MK6 Life Extension(MK6LE), will lower the Navy’s future maintenance costsas well as provide flexibility to support new missionsand upgrades.Equally important has been our new responsibility tofacilitate and manage the Navy’s Integrated Support Facilityfor repairing existing MK6 guidance systems. This facility,located in Pittsfield, Mass., will become fully operationalin 2007.The Draper team and its major subcontractors also madesignificant progress this year on developing leading-edgetechnologies. In the area of inertial instruments, a newsolid-state, Interferometric Fiber-Optic Gyroscope (IFOG)was proven to be a viable possible replacement for theexisting mechanical gyro for MK6LE. Additionally, wesuccessfully demonstrated a low-noise variant of ourSilicon Oscillating Accelerometer (SOA), which could beutilized for future application to the TRIDENT submarinenavigation system.Our expertise in radiation-hardened semiconductor designhas allowed us to develop common electronic parts jointlywith Lockheed Martin for application to both MK6LEguidance and missile flight control electronics. Of particularinterest is the design team’s innovative repackaging ofcommercial semiconductor technology for MK6LE radiationhardenedmemory. One specific candidate for repackaging,magnetoresistive non-volatile memory, is targeted also forapplication to cell phones.FOR THE U.S. AIR FORCEThis year we successfully demonstrated a GPS/INSinstrumentation package for use in Minuteman III re-entryvehicles. Draper and Northrop Grumman ruggedized anF-22 INS system for the harsh re-entry environment,performed GPS/INS subsystem integration, and developedthe mission software. The capability will help the Air Forcevalidate its aerodynamic models and perform accuracyanalysis to improve surveillance of aging effects.Our SOA and the Flexured Mass Accelerometer (FMA)designs progressed in support of the Air Force ResearchLab’s objective to advance strategic-grade accelerometertechnologies. This year we refined the SOA manufacturingprocess and developed a radiation-hardened electroniccircuit card to read the silicon oscillator data accurately.The SOA is the only extremely accurate, silicon-basedaccelerometer for strategic applications in existence. We alsoare continuing to mature the FMA solid-state design throughprototyping and testing.Lastly, as the original design agent for the Peacekeeperand Minuteman accelerometer, we provide support tothe Air Force in accuracy and reliability analysis, and partsobsolescence, as well as repair for the Minutemanaccelerometer strategic instrument.

SPACE SYSTEMSDraper focuses on the development of autonomous andhighly reliable flight systems to meet the nation’s need foradvanced space capabilities. We are successfully leveragingour extensive experience in human space flight to meetthe nation’s future needs for human and robotic spaceexploration, space science, and military space missions.These needs include advanced guidance, navigation, andcontrol (GN&C) technologies to accomplish an increasinglycomplex and autonomous set of missions for both NASAand the Department of Defense.SPACE EXPLORATIONDraper has been assisting NASA in the design of system andvehicle architectures that will enable safe, sustainable, andaffordable exploration of the moon and Mars. Working withour partners at MIT, we have developed the systemsarchitecture for Mars exploration, developed plans to usethe moon as a stepping stone to Mars, and developedconceptual designs for the Crew Exploration Vehicle (CEV),Lunar Surface Access Module, and other flight elementsrequired for the lunar campaign. Working in partnershipwith industry, Draper is developing the next generation ofGN&C systems for the CEV. Separately, Draper is the GN&Clead for the Hubble Robotic Servicing Deorbit Mission.HUMAN SPACE FLIGHTDraper has a long history of contributions to manned spacemissions, starting with the Apollo Program and continuingthrough operational support for the space shuttle andInternational Space Station. This past year, Draper workedwith NASA to prepare the space shuttle to return to flight byThe XSS-11 spacecraft, built by the Air Force ResearchLaboratory, Lockheed Martin, and Octant Technologies,launched in April 2005, is demonstrating Draper’sautonomous rendezvous and proximity operationsguidance technology for the Air Force.The Draper-MIT Concept Exploration and Refinement Teamdeveloped innovative exploration architectures for the moonand Mars, including transportation, information, and surfaceoperation elements.

2005 DRAPER 6| 7Our extensive human space flight experience ishelping NASA to shape its new moon and Marsexploration program.developing and certifying the complex control techniquesrequired for tile inspection and repair. Draper also hasdeveloped, patented, and implemented the Timelinersoftware that has been used to automate InternationalSpace Station operations.SPACE SCIENCEDraper’s involvement in planetary exploration missionscontinues to expand. Draper is developing avionics andsoftware technology for a Mars airplane; is developing theguidance system design for a demonstration of Mars orbitalrendezvous that will enable robotic return of samples from theMartian surface; and has developed the Inertial StellarCompass, a low-mass, low-power attitude determinationsystem. Our landing programs include development of anadvanced system design for Mars pinpoint landing anddevelopment of the GN&C sensors, software, and humanmachineinterface to support anywhere, anytime landingon the moon.MILITARY SPACEAs the DoD increases its emphasis on developing advancedspace control capabilities, Draper is providing keytechnologies for autonomous satellite space situationalawareness and servicing, and guidance and navigationtechniques for proximity operations. Draper has developedthe mission management software for the Orbital Expressautonomous satellite servicing demonstration and theautonomous rendezvous and proximity operations guidancesystems for the XSS-11 autonomous satellite space situationalawareness mission.Draper is developing and demonstrating landing systemtechnologies for NASA to enable pinpoint landing on themoon, including autonomous detection and avoidanceof hazards.Draper’s Low-Noise Third-Generation Gyro, shown hereon a test stand, is the world’s most precise instrument forthe stabilization and alignment of large space optics.

TACTICAL SYSTEMSCLOCKWISE FROM THE TOPAdvanced planning systems development has enabled significantimprovements in the ability to deliver critical payloads in difficultenvironments from stand-off distances.The Navy’s new precision weapons, shown here in recent flighttesting, utilize Draper’s advanced packaging and real-timesoftware capabilities.The Army’s Personal Navigation System integrates a suite of sensorsusing advanced signal processing techniques. The PNS improvesaccuracy over GPS-based or pedometer-based systems.Draper will improve the effectiveness of Air Operation Centers byintegrating technologies to demonstrate automated planning toolswhile improving affordability through reduced staff and assets.

2005 DRAPER 8| 9Draper continues to advance guidance,navigation, and control capabilities forchallenging missions.Advances in guidance and control technologies continue tocharacterize Draper’s contributions to our military sponsors.Our leadership in precision weapons, manned/unmannedsystems, and missile defense continues to grow as wedemonstrate the application of new systems in the laboratoryand the field.PRECISION ENGAGEMENTDraper’s microelectromechanical technologies, advancedpackaging, and real-time embedded control software haveenabled the recent successful launches of all four of themilitary’s precision munition platforms – BTERM (BallisticTrajectory Extended Range Munition), ERGM (ExtendedRange Guided Munition), Excalibur, and LRLAP (Long RangeLand Attack Projectile). These flights have been crucial tovalidating the military’s objectives for precision munitions.Teaming with Symmetricom, Draper developed a chip-scaleatomic clock that will be used to improve timing in tacticalsystems. Draper’s low-power, novel suspension designwill withstand harsh environments while delivering theperformance needed for these systems.MANNED/UNMANNED SYSTEMSDraper recently demonstrated personal navigation in GPSdeniedenvironments for periods of up to 30 minutes whilemaintaining 5-meter position accuracy. This accomplishmentis critical to addressing the navigation challenges for soldiersin urban environments and buildings.The Army conducted 24 tests of the Precision AirdropDelivery System that demonstrated how autonomous missionplanning technology improves unguided parafoil landingaccuracy by over 60%. For guided systems, Draper isimplementing changes that will reduce landing accuracies toless than 100 meters. Draper-developed mission planningcapabilities currently are being used operationally on alimited scale.In undersea autonomy, we successfully completed a series ofunderwater tests for the Office of Naval Research (ONR) todemonstrate that Draper’s intelligent autonomy architecturecan be deployed effectively in an intelligence, surveillance,and reconnaissance mission. This same autonomyarchitecture is being leveraged by ONR to address thechallenges of heterogeneous integration of air andunderwater assets in tactical environments.Draper’s mission planning expertise is emerging as a keycomponent in addressing the growing command and controlchallenge of heterogeneous assets in the battle space. As thesystems integrator for DARPA’s Joint Air-to-Ground UnifiedAdaptive Replanning (JAGUAR) program, we are developingthe next-generation air operation center (AOC) for theservices. This new AOC will improve adaptation to newweapons, sensors, and tactics while significantly reducingthe number of personnel participating in the process.MISSILE DEFENSEOur reputation as the guidance, navigation, and controlexpert for missile defense activities continues to expand.Initiatives involving the development of discriminationtechniques and the integration of complex sensing andpointing systems for micro-satellite operations are addressingsome of the most difficult challenges confronting themilitary’s newest defensive system.

SPECIAL OPERATIONSDraper’s Special Operations efforts are dedicated toimproving the intelligence and special operations capabilitiesof the United States. Our programs focus on developingtechnology and systems for low-intensity conflict,surveillance, counter-terrorism, and homeland defense.SURVEILLANCE SYSTEMSDraper is investigating communications architectures andprotocols for the satellite links that play an important role inmobile, wireless ad-hoc networks. In order to maintain areliable, connected network over a battlefield, a combinationof either satellites or air vehicles must be used. Bothplatforms experience time-varying capacity limits due todynamic atmospheric conditions and long delays related todistance. Tight, closed-loop control causes either inefficiencyor instability in these systems. We are investigating dynamicrate-control algorithms that yield better performance byreducing closed-loop feedback.SMALL, LOW-POWER ELECTRONICSDraper maintains a leading role in developing very small,low-power electronics with a broad range of potentialapplications for special operations. We are pioneeringmultichip module technology for ultracompact electronicspackaging, including developing novel methods foremploying mixed-signal components in this technology, anddemonstrating unprecedented levels of system integration.Draper continues to pioneer multichip module packagingtechnology into high performance realms not achievableelsewhere in the industry.Draper’s integrated Ultra-High Density (i-UHD)packaging technology promises to reduce dramaticallythe volume of complex electronic modules.

2005 DRAPER 10| 11Draper maintains a leading role in developingvery small, low-power electronics witha broad range of potential applications forspecial operations.This year, Draper developed a technology roadmap for yethigher density systems and has started an initiative to makethis technology practical. Termed integrated Ultra-HighDensity packaging, this technology promises tenfoldreduction in electronics volume.ROBOTICSDraper continues to develop small robotic systems forsurveillance and rescue applications, designed specifically toovercome difficult mobility challenges. These capabilities willbe useful in allowing our forces to be effective while avoidingcertain hazardous urban environments.Draper has developed several new vehicles featuring highdegree-of-freedomarchitectures. These vehicles have beendemonstrated to achieve mobility characteristics that areextraordinary in comparison to simple vehicles of comparablesize. For example, we successfully demonstrated a prototyperobot able to adapt to variable terrain and transform its shapeto negotiate various obstacles. We also demonstrated asnake-like robot able to mimic various means of mobility ofnatural snakes and to achieve other means of mobility notused in nature but highly useful for efficient mobile robots.Draper’s autonomous snake robot propels itself withsnake-like kinematics using 32 degrees of freedomin two planes, which offers unique opportunitiesfor mobility in cluttered, unpredictable environments.

BIOMEDICAL ENGINEERINGCLOCKWISE FROM THE TOPAn enhanced and more-detailed image of edge-field of structuresin 2-D brain slice is produced using Draper innovative processingof associated diffusion tensor magnetic resonance data.Scientists in the Biomedical Engineering group are using MEMSsensor technology to develop biological threat monitoring systemsfor building protection.Engineers at Draper and clinical researchers at MassachusettsGeneral Hospital have designed, built, and tested micromachinedblood-filtering devices for improved kidney dialysis applications.Through NIH and Keck Foundation funding, Massachusetts Eyeand Ear Infirmary and Draper developed a vestibular prosthesisthat marks the vertical for balance-impaired patients.

2005 DRAPER 12| 13Draper is demonstrating the impact of biomedicalengineering on the life sciences through enablingtechnologies, novel system concepts, andadvanced prototypes.Draper Laboratory continues to establish a vibrant presencein the field of biomedical engineering in the world’s epicenterof biomedical research, Cambridge, Massachusetts.Collaborations with researchers and clinicians at leadinginstitutions, such as the Massachusetts Institute ofTechnology (MIT), Brigham and Women’s Hospital, andMassachusetts General Hospital (MGH), are producingreal-world solutions to pressing problems in a variety ofareas, including organ-assist and organ-replacementdevices, sensors for clinical diagnostics and biodefense,implantable drug delivery devices, prosthetics, and toolsfor research and discovery.TISSUE ENGINEERINGIn the field of organ-assist and organ-replacement devices,Draper and MGH researchers have constructed a prototyperenal filtration device capable of revolutionizing treatment ofkidney disease. Numerous industrial and venture-backedpartnerships currently are being formed to commercializeapplications in liver and kidney therapeutics and in drugdiscovery. New efforts combine expertise in microfabricationwith understanding of how cells interact with syntheticmaterials and have enabled the development of biomimetic,biodegradable scaffolds for cell growth—a vital step in thepath toward fully implantable organs.SENSOR DEVELOPMENTExpertise in sensor design also is being extended ina wide range of demanding environments. A microelectromechanicalsystems (MEMS)-based DifferentialMobility Spectrometer developed at Draper is being used toidentify molecules present in air at concentrations of partsper-trillion(ppt) or lower. This capability enables continuous,real-time monitoring of buildings for biodefense applicationsand detection of disease biomarkers in exhaled breath at thepatient bedside. Draper’s advanced signal processingtechniques are critical to driving detection limits to suchlow levels.In another project, optical biosensors are being developedfrom fluorescent dyes and polymers. These nanoscale sensorscan monitor and quantitatively report the conditions insideliving cells, making them an invaluable tool for applicationssuch as the screening of drug candidates.In a project joining researchers from Draper with theMassachusetts Eye and Ear Infirmary (MEEI), a prototypemicrofluidic drug delivery device has been built and tested inthe MEEI laboratories for long-term, intracochlear drugdelivery treatment. Draper and MEEI also have demonstratedthe use of a vestibular prosthesis based on inertial MEMStechnology for treatment of patients with balance disorders.

INNOVATION & COMMERCIALIZATIONTo ensure a continuous stream of innovations in support ofcurrent work and future prospects, Draper invests annuallyin R&D efforts within the Laboratory and at universities,particularly MIT. Approximately $20 million was committedthis year to a spectrum of near-term, market-driven andlonger-term, technology-driven efforts. Current research isfocused on guidance, navigation, and control (GN&C);integrated GPS/inertial navigation systems; Ultra-HighDensity electronics packaging; autonomous systems andvehicles; chemical/biological sensors; andmicroelectromechanical systems (MEMS).Investment decisions are made based both on therequirements of potential sponsors’ missions, when novelsystems concepts are defined, and on proposals from staffmembers for emerging technology applications that canenhance system performance. This ensures that leading-edgesystem performance is obtained and that technologydevelopment remains relevant to program needs.Sponsorships of on-campus research and of graduatestudents as Fellows in residence further support these efforts.TECHNOLOGY LICENSING OFFICE (TLO)TLO was established to pursue licensing opportunities forintellectual property generated by our research investments.Licensing is one of a number of strategies for ensuring thatDraper’s technology developments are integrated intocommercial applications.A demonstration of Draper’s nanopatterningcapabilities—90 nm lines spaced at 300 nm etchedinto silicon dioxide and polymer on a wafer, which willenable a variety of applications in communications,imaging, sensing, and bioengineering.Objective Aware Network Planning is an advancedwireless networking technology with integratedalgorithms that proactively collaborate with missionplanning algorithms in real time to configure and monitormission-specific networks.

2005 DRAPER 14| 15Investment decisions are based both on potentialsponsors’ missions requirements and on an assessmentof the value of emerging technologies.Technology transfer and commercialization agreementshave been established for a spectrum of Draper innovations,including GN&C hardware and software, biomedicalengineering projects, chemical and biological sensing, andhigh-speed optical switching. Several agreements are tied tosponsor-funded or jointly funded prototype developments;others have been the foundation of start-up companies, aswell as the basis for new product lines within existing,established companies.NAVIGATOR TECHNOLOGY VENTURES (NTV), LLCwe have created these spin-out companies: Sionex, Inc.,which has commercialized chemical/biological detectiontechnology; Food Quality Sensors International, Inc. (FQSI),which is developing food quality sensing technology; andRenalWorks Medical Corp., which will develop advanceddialysis systems.Other NTV investments in high-tech companies range from3-D visualization systems and telecommunications productsto chemical and environmental sensing and new materials forimproved product performance.NTV is an early-stage venture capital fund established as aDraper subsidiary to commercialize technologies developedby Draper and other research organizations. Through NTV,Draper’s Global Command Control for IntegratedAerospace Operations IR&D project is developing andevaluating concepts of operations for future militaryspace applications.

EDUCATIONDraper continued its commitment tograduate, undergraduate, and professionaldevelopment programs in fulfilling itseducation mission during the past year.Students participating as active membersof research teams at the Laboratorysatisfied part of their academic requirementsat their affiliated institutions.This year, the Laboratory supported66 Draper Fellows in the master’s anddoctoral programs at the MassachusettsInstitute of Technology (MIT), BostonUniversity, and Rice University. Ofthese students, 20 were activemilitary personnel.At the undergraduate level, seven MITstudents worked at Draper throughformal internship programs, and eightNortheastern University students wereemployed at the Laboratory through co-opprograms. Dozens of additional studentsfrom MIT and other universities wereemployed at Draper during the year.Draper also continued its sponsorship ofon-campus research projects at variousuniversities. During Draper Fiscal Year2005, $2 million was allocated for thispurpose, supporting 17 projects. Thisyear was the program’s twenty-fourth year.With the MIT Center for OceanEngineering, Draper co-hosted ProfessionalSummer, a six-course program offeringcourses related to ship and submarinedesign. For its thirty-fourth year, theprogram attracted 177 students. Morethan 5,000 students have participatedover the years.The Education Office published The DraperTechnology Digest for 2004, featuringthe winners of the Vice President forEngineering’s Best Paper and Best PatentAwards from the previous year, alongwith a selection of other outstandingpapers and patents.As part of professional developmentopportunities for Draper employees,two Technical Staff members are selectedto pursue a master’s degree in engineeringmanagement each year at TuftsUniversity’s Gordon Institute. Draper’sgenerous tuition assistance programprovided $225,476 during Draper FiscalYear 2004 in support of 64 employeestaking courses to enhance their careersor toward degrees. Of them, 24 wereenrolled in master’s programs and 2 indoctoral programs. Additionally, theLaboratory offered a variety of onsitecourses and workshops for skillsdevelopment and professional training.AWARDS AND ACHIEVEMENTSThe 2005 Charles Stark Draper Prizewas awarded by the National Academy ofEngineering to Minoru “Sam” Araki,Francis J. Madden, Edward A. Miller,James W. Plummer, and Don H. Schoessler“for the design, development, andoperation of Corona, the first space-basedearth observation system.”President Vincent Vitto was honored bythe Department of the Navy with theSuperior Public Service Award for hisnearly 20 years of work on the NavalStudies Board (NSB) of the NationalResearch Council upon his retirement fromthe NSB. Vitto continued to serve as vicechairman of the Defense Science Board(DSB), and he co-chaired a Task Force onIntegrated Fire Support in the Battlespace,on which Tactical Systems DirectorThomas McNamara and Milton Adamsserved as members. McNamara wasappointed as a member of the NSB inJanuary, and he is participating in theNSB’s ongoing study regardingDistributed Remote Sensing for NavalUndersea Warfare. Vice President ofPrograms James Shields supporteda DSB Summer Study on Reducingthe Vulnerability to Weapons ofMass Destruction. Robert Polutchkoserved as a member of the NSB NavalAviation Science and TechnologyOpportunities Study.Member of Draper’s Board of DirectorsJohn Klineberg was elected Fellow of theAmerican Astronautical Society (AAS).Seven Draper employees were among therecipients of a NASA Group AchievementAward presented to the members of theARES Mars Airplane Mission ConceptDevelopment team. Gregory H. Barton,Timothy J. Brand, Sean Buckley,Linda R. Fuhrman, Robert C. Hammett,Joseph A. Kochocki , and Nancy M.Sodano are part of the 50-person team,which includes employees of LangleyResearch Center, Lockheed Martin, AuroraFlight Sciences, and other organizations.George Schmidt was selected as theNATO Research and TechnologyOrganization’s 2005 Von Karman MedalWinner for his “outstanding contributionsto defense science and technology and tothe enhancement of progress in scientificand technological cooperation carried outin conjunction with NATO activities.”Heidi Perry was named one of the2005 Women to Watch by Mass HighTech. The list of ten recognizes futureleaders and innovators in science andtechnology in New England. Perry alsowas presented with the award forSoftware Engineer of the Year by theAmerican Institute of Aeronautics &Astronautics New England Section.Ralph Regner was one of five recipientsof the Dr. Felix Zandman IndustryLeadership Award for outstandingtechnical contributions to the passiveelectronic components industry, presentedat the Electronic Components, Assembliesand Materials Association Capacitor andResistor Technology Symposium.Product Assurance and MediaManagement Division Leader MichaelMalcos received the Boston SocietyAward from the Boston Section of theAmerican Society for Quality.Draper Laboratory earned the numberone ranking this year in the annual listingof AARP Best Employers for WorkersOver 50.

2005 DRAPER 16| 17AWARDS continued...Principal Director of Human ResourcesJeanne Benoit was honored with thePast President Award for Leadershipfrom the Human Resource Council ofMassachusetts. The award recognizedher leadership role as president and theadvancement of the organization duringher three-year term.Public and Employee CommunicationsDirector Kathleen Granchelli waspresented with a Leading Role Awardby Cambridge Community Television.She was commended for her serviceto Cambridge youth through herinvolvement with the CambridgeChamber of Commerce and theKendall Community Group.Angela Zapata was recognized by theCambridge Public Schools for workperformed during her employment as ateacher with a group of Cambridge Rindgeand Latin School students whose scientificproject proposal was chosen by NASA tobe included on a future shuttle mission.Zapata remained a consultant to Draperwhile on leave to work as a teacher, andshe is now at Draper full time.Fifteen patents were issued to DraperLaboratory during the past fiscal year.Current and past employees creditedwith those inventions were Michael Ash,Jeffrey Borenstein, Robert Bousquet,James Connelly, James Cousens,Brian T. Cunningham, Amy Duwel,Gary Eiceman, Harold Ralph Haley,David S. Hanson, Eric Hildebrant,William Kelleher, Anthony Kourepenis,Juha-Pekka Laine, Christopher Lento,Thomas F. Marinis, Shida Martinez,Richard Martorana, Raanan Miller,William Sawyer, Jerome B. Sohn,Joseph W. Soucy, Richard Stoner,Charles Tapalian, Richard P. Tumminelli,Paul Ward, Marc Weinberg, andJohn R. Williams.The 2004 Draper DistinguishedPerformance Award was presented to thedevelopers of the Low Cost GuidanceElectronic Unit at the Annual Dinner forMembers of the Corporation on Oct. 6“for development and flight test of acommon INS/GPS guidance system forthe Extended Range Guided Munitionsand Ballistic Trajectory Extended RangeMunitions” by Chairman of the Board JohnKreick and President Vince Vitto. Therecipients were Timothy Easterly,David Hanson, Marc McConley,Robert Polutchko, and Dane Richter.The 2004 Engineering Vice President’sAwards were given out during NationalEngineers Week. Vice President Eliezer Gaipresented the award for best paper toHoward Musoff (posthumously),Ronald Proulx, and Draper Fellow Lt.Luke Sauter for “Satellite ConstellationDesign for Midcourse BallisticMissile Intercept,” for best patent toJeffrey Borenstein and William Sawyerfor “Method for Fabricating StructuresUsing Silicon-on-insulator Material,”and for Outstanding Task Leader toEdward Lanzilotta for his work onthe MK6LE Sensor Subsystems andValerie Lowe for her work on NextgenerationFastracker.Stephan Kolitz received the inauguralHoward Musoff Student Mentoring Awardpresented in conjunction with theEngineering Vice President’s Awards.This memorial award recognizes andencourages staff members in theirsupervision of Draper Fellows’ professionaldevelopment and research activities.COMMUNITY SERVICEDuring the past year, Draper’sContributions Program provided $110,000in grants to local education programs,human services agencies, and arts andcultural programs, principally benefitingCambridge residents. Draper employeescontributed $176,000 to human serviceprograms and civic organizations inGreater Boston through the United Wayof Massachusetts Bay annual campaign.In response to the tsunami disaster inSoutheast Asia and Hurricane Katrina, theLaboratory organized company-matchedfundraising drives for relief efforts. Nearly$79,000 was contributed to UNICEF andSave the Children for tsunami relief, andalmost $132,000 went to the AmericanRed Cross and America’s Second Harvestfor the Katrina relief effort.Draper also became a sponsor of theUnited Way of Massachusetts Bay’s Math,Science and Technology Initiative and isparticipating on its Advisory Board.Surplus scientific and office equipmentand furniture were donated to localcommunity or civic organizations duringthe past year. Additionally, photocopyingservices were provided.The Laboratory continued its involvementin the Cambridge Chamber of Commerceand its Community Outreach Committee,Associated Grant Makers, CambridgeFunders Group of the CambridgeCommunity Foundation, KendallCommunity Group, Rotary Club ofCambridge, Cambridge YMCA,Cambridge Salvation Army, AdvisoryCouncil of the Rindge School of TechnicalArts at Cambridge Rindge and LatinSchool, and the Superintendent’s ScienceEducation Initiative of the CambridgePublic Schools.

CONSOLIDATED FINANCIAL SUMMARY(Dollars in Millions)Consolidated Balance Sheets July 1, 2005 and June 30, 2004 2005 2004AssetsCurrent Assets:Cash and Cash Equivalents $ 10.3 $ 10.5Accounts Receivable - Sponsors 33.3 12.1Unbilled Contract Costs and Fees 36.1 35.8Other Current Assets 2.9 4.5Total Current Assets 82.6 62.9Long-term Investments 136.3 152.4Property and Equipment, net 119.0 107.7Other Assets 8.8 14.9Total Assets $ 346.7 $ 337.9Liabilities and Net AssetsCurrent Liabilities:Accounts Payable and Accrued Contract Costs $ 26.6 $ 17.1Accrued Compensation and Related Expenses 11.4 10.6Other Current Liabilities 3.9 4.1Total Current Liabilities 41.9 31.8Accrued Post-retirement Benefits 15.8 15.5Bonds Payable 76.3 71.8Total Liabilities 134.0 119.1Unrestricted Net Assets 212.7 218.8Total Liabilities and Net Assets $ 346.7 $ 337.9Consolidated Statements of Activities For the years ended July 1, 2005 and June 30, 2004 2005 2004Operating Revenues $ 321.7 $ 278.3Operating Expenses:Subcontracts 134.3 112.4Compensation and Benefits 120.2 110.5Materials, Services, and Rentals 26.9 24.9Depreciation and Amortization 10.1 9.6All Other Costs 33.6 14.2Total Operating Expenses 325.1 271.6Increase/(Decrease) in Unrestricted Net Assets from Operations (3.4) 6.7Realized Investment Gains/(Losses) 10.6 18.5Gains/(Losses) on Interest Rate Swap (6.2) (0.1)Other Income/(Expense) 1.9 2.2Increase/(Decrease) in Unrestricted Net Assets before Unrealized Gains/(Losses) 2.9 27.3on Investments and Additional Minimum Pension LiabilityUnrealized Investment Gains/(Losses) (0.8) 2.5Additional Minimum Pension Liability (8.2) -Increase/(Decrease) in Unrestricted Net Assets $ (6.1) $ 29.8Consolidated Statements of Cash Flows For the years ended July 1, 2005 and June 30, 2004 2005 2004Cash Flows from Operating Activities:Increase/(Decrease) in Unrestricted Net Assets $ (6.1) $ 29.8Adjustments:Depreciation and Amortization 10.2 10.1Net Realized and Unrealized (Gains)/Losses on Investments (1.4) (19.6)All Other (2.4) (8.9)Net Cash Provided by Operating Activities 0.3 11.4Cash Flows from Investing Activities:(Additions) and Sales of Property and Equipment (22.6) (11.5)(Purchase)/Sale of Investment Securities 22.1 (2.1)Net Cash Used in Investing Activities (0.5) (13.6)Net Increase/(Decrease) in Cash and Cash Equivalents (0.2) (2.2)Cash and Cash Equivalents at Prior Year-End 10.5 12.7Cash and Cash Equivalents at Current Year-End $ 10.3 $ 10.5These condensed, consolidated financial statements are derived from the complete set of Draper FY2005 financial statements, whichwere audited by PricewaterhouseCoopers LLP. Their report expressed an unqualified opinion that the financial statements are presentedfairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Copies of thecomplete audited financial statements are available upon request.

2005 DRAPER 18| 19BOARD OF DIRECTORSGeorge A. AshurManaging Director, Fixed Income,Fortis InvestmentsGordon B. BatyFounder and Retired Partner,Zero Stage Capital Company, Inc.;Chairman of the Board,Navigator Technology Ventures, LLCDonald L. CromerRetired President, Hughes Space andCommunications CompanyDelores M. EtterDistinguished Chair in Science andTechnology, Electrical EngineeringDepartment, U.S. Naval AcademyJohn A. GordonGeneral, U.S. Air Force (Retired);Former President’s Homeland SecurityAdvisor and Assistant to the PresidentJohn M. KlinebergRetired President, Space Systems/LoralJohn R. KreickChairman of the Board, DraperLaboratory; Former President, Sanders;and Former Officer, LockheedMartin CorporationKenneth C. MalleyVice Admiral, U.S. Navy (Retired);Former Corporate Vice President,In-Flight Systems Division, ARINC Inc.Kenneth R. RatcliffePresident, The Ratcliffe GroupPeter C. ReadFinancial Consultant; Retired ExecutiveVice President, Bank of BostonMaxine L. SavitzRetired General Manager,Honeywell Technology PartnershipsC. Bruce TarterDirector Emeritus, Lawrence LivermoreNational LaboratoryVincent VittoPresident and Chief Executive Officer,Draper LaboratoryWm. A. WulfPresident, National Academyof EngineeringOFFICERS OF THE CORPORATIONJohn R. KreickChairman of the BoardVincent VittoPresident and Chief Executive OfficerEliezer G. GaiVice President for EngineeringJames D. ShieldsVice President for ProgramsJoseph M. Wolfe, Jr.Treasurer and Vice Presidentfor Finance and AdministrationJoseph F. O’ConnorSecretaryEdna L. TorgersonAssistant Secretary

MEMBERS OF THE CORPORATIONLew Allen, Jr.**Retired Chairman of the Board,Draper Laboratory; Retired Director,Jet Propulsion LaboratoryGideon ArgovChief Executive Officer, EntegrisGeorge A. Ashur*Managing Director, Fixed Income,Fortis InvestmentsPenina AxelradProfessor and Associate Chair,Colorado Center for AstrodynamicsResearch, Department of AerospaceEngineering Sciences, Universityof ColoradoWilliam F. Ballhaus, Jr.President and Chief ExecutiveOfficer, The Aerospace CorporationCecile BarkerFormer Chairman and ChiefExecutive Officer, OAO CorporationGordon B. Baty*Founder and Retired Partner,Zero Stage Capital Company, Inc.;Chairman of the Board, NavigatorTechnology Ventures, LLCLewis M. Branscomb**Aetna Professor in Public Policy andCorporate Management Emeritus,John F. Kennedy School ofGovernment, Harvard UniversityRobert H. Cannon, Jr.**Charles Lee Powell Professor, andPast Chairman, Department ofAeronautics and Astronautics,Stanford UniversityRobert P. CarenFounder and Member of the Boardof Directors, Litex, Inc.; FormerCorporate Vice President of Scienceand Engineering, LockheedCorporationAshton B. CarterFord Foundation Professor ofScience and International Affairs,John F. Kennedy School ofGovernment, Harvard UniversityJohn F. Cassidy, Jr.Retired Senior Vice President,Science and Technology, UnitedTechnologies CorporationVincent W.S. ChanJoan and Irwin Jacobs Professorof Electrical Engineering andComputer Science, and Aeronauticsand Astronautics and the Director,Laboratory for Information andDecision Systems, MassachusettsInstitute of TechnologyJoseph V. Charyk**Retired Chairman of the Board,Draper Laboratory; RetiredChairman and Chief ExecutiveOfficer, Communications SatelliteCorporationGlenwood Clark**Vice Admiral, U.S. Navy (Retired);Former Senior Vice President,Systems Planning & Analysis, Inc.Lynn A. ConwayProfessor of Electrical Engineeringand Computer Science Emerita,The University of MichiganEdward F. CrawleyProfessor, Aeronautics &Astronautics and Executive Director,CMI, Massachusetts Institute ofTechnologyDonald L. Cromer*Retired President, Hughes Spaceand Communications CompanyRuth A. DavidPresident and Chief ExecutiveOfficer, Analytic Services, Inc.William P. DelaneyDirector’s Office Fellow,Massachusetts Institute ofTechnology Lincoln LaboratoryBruce DemarsAdmiral, U.S. Navy (Retired);Partner, RSD, LLCRobert A. Duffy**Retired President and ChiefExecutive Officer, DraperLaboratory; Brigadier General,U.S. Air Force (Retired)Delores M. Etter*Distinguished Chair in Science &Technology, Electrical EngineeringDepartment, U.S. Naval AcademyDaniel J. Fink**President, D.J. Fink Associates, Inc.Robert R. Fossum**Senior Research Scientist, Instituteof Advanced Technology, TheUniversity of Texas at AustinJohn S. Foster, Jr.**Chairman, Technology Strategies &AlliancesCharles E. FranklinVice President, Raytheon CompanyEvaluation TeamRobert A. Frosch**Senior Research Fellow, BelferCenter for Science and InternationalAffairs, John F. Kennedy School ofGovernment, Harvard UniversityRobert A. Fuhrman**Senior Advisor, Lockheed MartinCorporationJoseph G. Gavin, Jr.**Retired Aeronautical Engineer andCorporate Executive, GrummanCorporationArthur GelbPresident, Four Sigma CorporationRalph M. Ghormley**Rear Admiral, U.S. Navy (Retired);Retired Communications Engineer,JAYCORJohn A. Gordon*General, U.S. Air Force (Retired);Former President’s HomelandSecurity Advisor and Assistant tothe PresidentRobert J. HermannRetired Chairman of the Board,Draper Laboratory; Senior Partner,Global Technology Partners, LLCRalph H. Jacobson**Retired President and ChiefExecutive Officer, DraperLaboratory; Major General,U.S. Air Force (Retired)Miriam E. JohnVice President, California Division,Sandia National LaboratoriesAnita K. JonesLawrence R. Quarles Professor ofEngineering & Applied Science,Department of Computer Science,University of VirginiaFrank S. Jones**Ford Professor Emeritus of UrbanAffairs, Massachusetts Institute ofTechnologyJohn M. Klineberg*Retired President, SpaceSystems/LoralJohn R. Kreick*Chairman of the Board, DraperLaboratory; Former President,Sanders; and Former Officer,Lockheed Martin CorporationLester LylesGeneral, U.S. Air Force (Retired)David M. MaddoxGeneral, U.S. Army (Retired)Kenneth C. Malley*Vice Admiral, U.S. Navy (Retired);Former Corporate Vice President,In-Flight Systems Division,ARINC Inc.Forrest S. McCartney**Lt. General, U.S. Air Force (Retired);Retired Vice President LaunchOperations, Lockheed MartinCorporationKenneth G. McKay**Retired Chairman of the Board,Draper LaboratoryJohn N. McMahon**Retired President and ChiefExecutive Officer, Lockheed Missiles& Space Company, Inc.John T. MitchellRear Admiral, U.S. Navy (Retired);Senior Vice President, BechtelNational Inc.Robert R. Monroe**Vice Admiral, U.S. Navy (Retired);Senior Counselor, BechtelNational, Inc.Earll M. MurmanProfessor, Aeronautics andAstronautics, MassachusettsInstitute of TechnologyRuth L. NovakRetired Vice President, NavyProjects, Hercules AerospaceCompanyMalcolm R. O’NeillVice President and Chief TechnicalOfficer, Lockheed MartinCorporationBradford W. ParkinsonProfessor Emeritus, Aeronautics andAstronautics, Stanford UniversityJohn A. ParrishChairman and Chief, Departmentof Dermatology, MassachusettsGeneral Hospital and HarvardMedical SchoolCourtland D. Perkins**President Emeritus, NationalAcademy of EngineeringAllen E. Puckett**Chairman Emeritus, Hughes AircraftCompanyGeorge J. Rabstejnek**Chairman, Massachusetts Eye andEar InfirmaryKenneth R. Ratcliffe*President, The Ratcliffe GroupPeter C. Read*Financial Consultant; RetiredExecutive Vice President,Bank of BostonThomas C. ReedAuthor; Former Chairman and ChiefExecutive Officer, Quaker HillDevelopment CorporationMaxine L. Savitz*Retired General Manager,Honeywell Technology PartnershipsHarrison H. SchmittBusiness, Technology, and PolicyConsultantRobert C. Seamans, Jr.**Professor Emeritus, Aeronauticsand Astronautics, MassachusettsInstitute of TechnologyJeffrey H. ShapiroDirector, Research Laboratory ofElectronics, Massachusetts Instituteof TechnologyEdward C. StoneDavid Morrisroe Professor ofPhysics, California Instituteof TechnologyWilliam O. StudemanPrivate Consultant; Former VicePresident and Deputy GeneralManager for Intelligence andInformation Superiority, NorthropGrumman Mission SystemsC. Bruce Tarter*Director Emeritus, LawrenceLivermore National LaboratoryLydia W. ThomasPresident and Chief ExecutiveOfficer, Mitretek Systems, Inc.Waneta C. TuttlePresident, Southwest MedicalVentures, Inc.Vincent Vitto*President and Chief ExecutiveOfficer, Draper LaboratoryRobert H. Wertheim**Rear Admiral, U.S. Navy (Retired);Consultant, Science ApplicationsInternational CorporationRobert M. White**Principal, The Washington AdvisoryGroup, LLC; Senior Fellow,University Corporation forAtmospheric ResearchWm. A. Wulf*President, National Academyof Engineering* Director** Member Emeritus

The views and opinions contained in this report are those ofThe Charles Stark Draper Laboratory, Inc., and should not beconstrued as reflecting those of the Department of Defense orother office or agency of the U.S. Government.DESIGN:www.GillFishmanDesign.comPHOTO CREDITS:Lockheed Martin Corporation: page 6 (left); Mason Morfit:cover, inside front cover (top row, middle center & right,bottom right), pages 2, 4 (top, middle right), 6 (right), 7,10 (left), 11, 12 (middle row, bottom), 14 (right), 15, insideback cover (middle); United States Navy: pages 4 (bottom),8 (middle right); United States Army/ Natick Soldier Center:page 8 (top); all other photos provided by Draper Laboratory.COVER IMAGE:A view of the inner complexities and precision tolerancesin a MK6 Guidance System.

HEADQUARTERSThe Charles Stark Draper Laboratory, Inc.555 Technology SquareCambridge, MA 02139-3563Phone: 617.258.1000Fax: 617.258.1131E-mail: communications@draper.comWeb: www.draper.comBUSINESS DEVELOPMENTPhone: 617.258.2124WASHINGTON AREA OFFICESSuite 5011555 Wilson BoulevardArlington, VA 22209Phone: 703.243.2600Fax: 703.528.5918SUBSIDIARYNavigator Technology Ventures, LLCFour Cambridge Center2nd FloorCambridge, MA 02142Phone: 617.494.0111Fax: 617.225.2080E-mail: info@ntven.comWeb: www.ntven.com