Is Cambridge's Draper Laboratory Profiteering From War Research?

According to the tax-exempt and “non-profit” Draper Laboratory Form 990 financial filing for 2015, between June 27, 2015 and July 1, 2016 the Strategic Systems weapons technology development program of Draper Laboratory earned over $67 million more in revenues from its contract work than what it spent to do the contract work; between June 2015 and July 2016, Draper Laboratory’s Strategic Systems program’s revenues exceeded $445 million, while the Strategic Systems program’s expenses were only just under $378 million. Draper Laboratory’s 2015 Form 990 financial filing also noted that its Strategic Systems program has “been responsible for all of the U.S. Navy’s strategic guidance systems and are currently extending MK6 system life to 2042 through an extensive modernization effort that utilizes common processor and other key technical innovations to improve reliability and system performance” and has “also developed the guidance system for the air force peacekeeper ICBM.”

The National Security and Space program of the “non-profit” Draper Laboratory also earned more from its contract work than what it spent to do the work. Between June 2015 and July 2016, for example, Draper Laboratory’s National Security and Space program revenues of over $158 million exceeded its expenses of over $139 million by $19 million.  And Draper Laboratory’s 2015 Form 990 financial filing described the weapons technology development work of its National Security and Space program in the following way:

“Draper delivers national security systems and combat solutions as a highly valued government partner and design agent for our sponsors’ most difficult problems. We provide trusted, reliable mantime intelligence, surveillance, reconnaissance (ISR), extreme miniature solutions for precision engagement, highly accurate guided aerial delivery, soldier-centered solutions, secure electronic and communications, and early intercept guidance for missile defense engagements. We help our sponsors to clarify their requirements, establish government owned designs and create system prototypes…”

From all of its sources of revenues between June 2015 and July 2016 (including income from dividends on the corporate stock it owns, for example), Draper Laboratory’s total revenues were over $676 million; which exceeded its total expenses (that included $1 million spent on lobbying) of over $639 million by nearly $37 million, although Draper Laboratory claims to be a “non-profit” organization. And during the same period, the value of Draper Laboratory’s net assets increased from over $364 million to over $379 million. In addition, between October 2014 and September 2016 the annual dollar amount of Pentagon weapons technology development contracts awarded Draper Laboratory increased from $273 million to $360 million, making it the 73^rd-largest recipient of U.S. war research contracts in 2017.