Telic Corporation Demonstrates Reuse of Military Facilities Possible

The Telic Corporation which provides support services and manufactures munitions for the U.S. military is planning on taking over the now closing Newport Chemical Depot from the U.S. Army. The depot which was used to make explosives, nerve agent as well as heavy water for nuclear applications is being closed and cleaned up as part of the last round of the Base Realignment and Closure (BRAC) law.

The company plans to move various offices as well as some of their machine tools used to make munitions to the site. The cost of preparing the buildings and moving their facilities and capabilities there will be over $1 million. This kind of action demonstrates that there is desire and ability to reuse even a former site such as this.

Telic is currently has contracts primarily as a sub-contractor to provide management and support services to the U.S. Army, Department of State, Navy and Coast Guard. They are subs to bigger companies such as Fluor and Parsons. As a small, veteran owned business they help those companies meet their small and disadvantaged business goals.

The Department of Defense and Army are cleaning up the former site. Part of this entailed destroying over two million pounds of the nerve agent, VX. Once the site is considered completely clean it will be transferred to a state agency who will look for customers to use it. This is planned for next Summer. Telic will then contract with this Newport Chemical Deport Reuse Authority to use the buildings and move their equipment on. The State of Indiana will provide tax and training credits to the company to facilitate this. The company feels that it could add up to 500 jobs in early 2010 alone.

Telic is familiar with the site as they sub-contracted with Parsons on cleaning up the depot for the Defense Department. This gives them confidence that this is the right move. The only downside for this is that some of the work and equipment will be transferred from another Telic facility in Kentucky. That state will be losing jobs and tax revenue. It might be that Telic plans growth that will offset those losses.

The fact that Telic makes munitions and designs prototypes and fabricates them for other companies helps with the decision to make the move. They are taking over what was an ordnance depot so it is properly designed and laid out to support the work they are doing. This action by Telic shows that they have confidence in their company, the defense budget and the clean up of the Newport facility.