Oklahoma program pays primes for job creation

In the fight to attract companies and create jobs, Oklahoma has launched the PrimeWIN program to give federal contractors incentives to bring work to the state.

The Boeing Co. is the first participant in the program in which the state offers a rebate to prime contractors who hire subcontractors working in Oklahoma.

“We’ve made it easier for federal prime contractors to increase their profitability and cost competitiveness while benefiting from quality subcontractors with small and mid-sized Oklahoma businesses,” Gov. Mary Fallin said in a statement at the 11th annual Oklahoma Aerospace Summit and Expo in Tulsa.

The state will pay prime contractors a cash rebate of up to 2 percent of the Oklahoma workforce qualified labor costs. The rebate is paid quarterly for up to 10 years.

The prime contractor does not need to be located in the state, only use subcontractors working in Oklahoma.

Under the program, Boeing is expected to subcontract aerospace engineering work on the E-4B National Airborne Command Post aircraft in Oklahoma City. About 34 engineers and support personnel will qualify, the state said.

“Having a solid and reliable supply chain is very important in our business,” said Mike Emmelhainz, Boeing's Oklahoma City site director. “We must meet schedule requirements for critical defense aircraft, as well as keep them ready to fly for our U.S. Air Force customer, and we rely on our subcontractors to help us meet those deliveries and standards,”

State officials estimated that 600 to 700 companies are qualified to work as subcontractors to federal primes in areas such as aerospace, defense, IT and telecommunications.