When Pete Lorh was awarded a $150,000 grant from the National Science Foundation, his work caught the attention of an agency that connects North Carolina innovators and researchers with the Department of Defense. Lorh’s company, Advanced Hydrogen Technologies Corp. (AHTC), based in Hickory, developed a process to bond dissimilar metals. A similar process has been around for years, but

the patented technique Lohr developed not only is less expensive, it’s also safer and can be precisely tailored to the customer’s needs.
With potential aerospace, naval and electronics applications, among others, Dennis Lewis, president of N.C. Defense Technology Transition (DEFTECH), was confident that the military would be interested in the new process, known as ‘non-explosive
welding.’

Just as Lorh developed an innovative way to bond metals, DEFTECH was able to meld Lorh’s work with the Department of Defense (DOD), which has led to government contract work for AHTC.
Connecting Tar Heel innovators with the military is the mission of DEFTECH, part of the Fayetteville-based N.C. Military Business Center. Through education, outreach,
networking and acting as a liaison, DEFTECH proactively seeks out individuals and companies whose work potentially addresses complex national security problems.

The state-funded entity works with the DOD, Homeland Security and other federal agencies to make them aware of breakthrough technologies being developed in North Carolina. On a day-to-day basis, DEFTECH scouts the state for new technologies, coaches industry on ways to commercialize new applications and keeps state businesses apprised of the federal government’s technological needs.

The ultimate goal, Lewis told the Greater Fayetteville Business Journal recently, is to increase economic opportunities for North Carolina businesses.

He said that for years most defense-related research and development was performed by the military and a few of its prime contractors. Since the majority of technology-related R&D was happening in the commercial and academic sectors, the government realized it needed better access to those innovators.
Lewis explains, “They (DOD) were getting an assessment that eight of the 10 modernization priorities of the military were in commercial technology areas. So they said, “Why can't we get more commercial technology into the military? A lot of that comes from small business innovators and academia folks.”
But there was a problem. Even though the military was interested in the work of commercial interests, the feeling often wasn’t mutual.
“They found out that one of the reasons that commercial folks didn't want to do business with the Department of Defense is that it was too hard,” Lewis said.
He said companies had multiple concerns, including the possibility that their ideas could be stolen and the overall complexity of working with the military.
“The profit probability was kind of low,” Lewis said. “It cost so darn much to develop these applications and then you had to wait 18 to 24 months to get an award.”
That all changed in 2015, when the DOD established the Defense Innovation Unit, based in California’s research meca, Silicon Valley.
“They started reaching out to small businesses and making it easier for them to do business with the government,” Lewis said.

DOD also began making small businesses aware of the military’s critical needs and asking them if they were developing any technology that could address those needs, Lewis said. If there was a good prospect, DOD made sure the individual or business had an easier way to apply.

Lewis explained how the DOD responded under the streamlined process.
“They would say, ‘Send us a five page white paper. Then if we like it and we think it's a match, we'll call you,’ ” he said. “And then we'll work out a contract and we'll pay you to develop a certain number of total types and give them to us and we'll test them and evaluate them. If we'd like it, we’ll go directly into procurement.’ ”

“Well, this was a whole new model, because that's not how the Federal Acquisition System typically works,” Lewis said. “Under the new system, DOD could put a small business on contract in less than 90 days and the cost of entry was a five-page white paper.”
But with the application process smoothed out, another issue kept potential customers on the sidelines – lack of connection with DOD or even any awareness that the military might be interested in their services. 

When Lewis began working at DEFTECH, one thing was clearly obvious.
“I came back here and I looked at our innovation ecosystem, and we didn't have anybody reaching out to them, connecting non-tradition- al defense contractors with defense problems,” he said. “So with the help and a great support of the Military Business Center, Fayetteville Technical Community College and the N.C. Military Affairs Commission, we established DEFTECH.”
Lewis and his staff – many, like himself, retired military – have experience with military contracting requirements and how the acquisition process works on both ends. They read the initial proposals businesses make to ensure they are making the
strongest-possible argument for their product.
“Our primary mission, when it comes down to it, is this whole idea of educating and informing and connecting our innovator ecosystem with the government,” he said. “We spend half of our time talking to defense agencies that are looking for these types of quick turnarounds on fulfilling requirements, and we spend the other half trying to find all the innovators in North Carolina.”
And it’s all free. 

“We don't charge a nickel for anything that we do,” Lewis said. “We have a lot of expertise. If they were paying us as consultants, it would be pretty expensive.”
DEFTECH also works closely with the state’s research universities, he said.
“I work with the UNC System Office. So they are in our network and we work with Duke University. We share each other's information, so if I get something that's aimed at them and vice versa.”
Davis believes the 400 or so groups and individuals DEFTECH works with only scratches the surface of the state’s potential in the commercial military technology sector.
“We believe North Carolina is the frontline of the future for defense contracting, along with our military bases,” he said. “On average, we have about 18,000 service members in North Carolina transitioning to the commercial workforce every year.”
Those are people with military discipline and a pretty good work ethic and carry those skills into the workplace, Lewis said.
“I think the future is unlimited if people would just stop and consider the Department of Defense marketplace,” he said.