New SCIF Spaces Fortify Maryland’s Defense Industry With Solutions From MEDCO

Image of the Maryland Technology Center, home of a new SCIF station in Charles County, Maryland. Photo Credit: MEDCO

SCIF space in Maryland is more than a necessity—it’s a prized asset. With the surge in mission-critical contract work and the growing number of security-cleared professionals, the demand for Sensitive Compartmented Information Facilities (SCIFs) is skyrocketing across the region. These spaces are essential for enabling secure work environments, ensuring Maryland can retain its skilled workforce and maintain its edge in national security.

Delegate Brian Crosby of Maryland, acknowledging the pressing need, tapped into MEDCO’s expertise as a solutions provider to secure innovative funding to construct these highly technical, secure spaces and keep the state’s competitive position in the defense space. 

Since the State of Maryland cannot apply for Capital Grant funding, MEDCO used its experience and knowledge as a quasi-government entity and Maryland-registered nonprofit to navigate the application process with the Maryland Department of General Services (DGS) on behalf of the state. MEDCO successfully secured $5 million in Capital Grants and, acting as a broker, distributed the funds to enhance public-private partnerships in Southern Maryland’s rapidly expanding defense industry through the establishment of five SCIF spaces. 

“This was a different project for us,” says MEDCO Director of Innovation and Strategic Partnerships Sarah Horta. “MEDCO has a long-standing history in bond refinancing and student housing projects, but we’re truly a solutions provider—in whatever form that takes. In this case, we helped build what we call innovation infrastructure.” She adds, “With the SCIF projects, MEDCO found a creative approach to utilizing government funds to seed public-private investments supporting mission-critical activities, and creating jobs.” 

The initial award of $2.5 million, granted in 2022, funded two pilot projects: one at the Maryland Technology Center (MTC) in Charles County with the United States Bomb Technician Association (USBTA) and another in St. Mary’s County with the Rapid Response Research Group, LLC (3RGI). An additional $2.5 million, granted in 2023, financed three projects in Lexington Park, an industry hub in California, Maryland. 

By partnering with industry hubs and prolific defense companies in Southern Maryland, the SCIF spaces have been strategically placed in locations that are accessible to several contractors. This access widens the scope to benefit the region as a whole and provides valuable access to growing businesses working with mission-critical contracts. 

Horta adds, “While constructing a SCIF might be out of budget for many small contracting companies, this shared sponsor approach—where a contractor builds the SCIF and can share the space with other entities—can help growing companies win contracts and expand their business without having to construct their own secure facility.”

Using the funds allocated by MEDCO, each project can acquire, plan, design, technology, furnish and refurbish their SCIF spaces as needed. Projects cater to various defense sectors from explosive ordnance disposal (EOD) and aviation to general security work. 

3RGI, a custom aircraft, airborne sensors and solutions provider for the Department of Defense (DOD) working in partnership with S. Hunt Aero, LLC., used the grant funds brokered by MEDCO to construct a 1,250-square-foot SCIF in Hangar BB of the St. Mary’s Airport. Built in a shipping container within the hangar, the SCIF provides contractor employees with workstations, a small conference area, and state-of-the-art communications equipment, enabling secure collaboration with DOD entities worldwide.

“To have assets like a SCIF here is another jewel in the [AeroPark] Innovation District,” said Chris Kaselemis, Director of Economic Development in St. Mary’s County. “It is something that allows work to be done outside of the base with private companies who have contracts with the federal government to get their work done in a secure environment that is actually easier to bring different partners together.”

In Charles County, the USBTA, in partnership with Applied Research and Associates (ARA), is using funding to construct a 4,000-square-foot SCIF in the Maryland Technology Center. As a growing hub for EOD and municipal contractors, the SCIF will add a standout resource, enhancing the abilities of the MTC’s organizations and their partners. 

“The capital grant funding that we’ve received from MEDCO has been an accelerator for the USBTA. The impact is going to be long-term and positive,” said Sean Dennis, President and CEO of the USBTA. Construction of the SCIF within the MTC is ongoing, with an anticipated operational timeline of eighteen months.

According to a State of Maryland study, for every dollar invested in SCIF space, another two to three dollars of private, nonprofit or government match is generated, creating an estimated 250 jobs in Southern Maryland. Recognizing its significant economic impact, the Maryland Economic Development Association (MEDA) awarded the project the 2024 Economic Development Program, Small Community award.

Presented during the 2024 MEDA Annual Conference, this video showcases the SCIF projects in St. Mary and Charles Counties. Video Credit: Maryland Economic Development Association (MEDA).

“From these Southern Maryland projects, we’ve gotten a lot of interest from other defense hubs and universities in Maryland about creating SCIF space,” said Horta. “These resources can help prepare the future of the workforce. We want to see the companies grow their enterprise using the SCIF space to bring more talent and opportunity into the area.” 

As more SCIF spaces come online through the advisory support of MEDCO, the defense industry is well-positioned to grow and retain its workforce in Maryland.