BAE Systems, Electronic Systems National 8(a) Fall Summit Changing Landscape in Government Subcontracting Presented by: Susan King October 30, 2013 © BAE Systems 2013 Cleared for Public Release 09/16/2013 2013 TRIAD Success Spotlight.ppt BAE Systems Overview • BAE Systems, is a global defense, aerospace and security company with approximately 93,500 employees worldwide. The company delivers a full range of products and services for air, land and naval forces, as well as advanced electronics, security, information technology solutions and support services. • Electronic Systems Sector provides electronic warfare systems and electro-optical sensors, military and commercial digital engine and flight controls, next-generation military communications systems and data links, persistent surveillance capabilities, and hybrid electronic drive systems. © BAE Systems 2013 Cleared for Public Release 09/16/2013 2013 TRIAD Success Spotlight.ppt BAE Systems - Supplier Diversity • BAE Systems recognizes the role small businesses play in the development of innovative products / services, creation of new jobs, contributions to the United States economy. We will continue to fully support and commit to small business programs and efforts. • BAE Systems has instituted procurement policies/practices to further its commitment to small business utilization resulting in strong performance. Small Business spend 2012 was more than $500M within the Electronic Systems Sector alone. 3 3 © BAE Systems 2013 Cleared for Public Release 09/16/2013 Typical Prime Contractor Challenges • • • • • • • • • Security – Classified information Understanding FAR / DFARS compliance ITAR- Export Control / US Citizens DMS- Diminishing material / Obsolescence Communications- Public Releases Gifts/Gratuities/Business Courtesies Counterfeit Parts Prevention Specialty Metals DFARS 252.225-7014 Preference for Domestic Specialty Metals Matching Technology to requirements © BAE Systems 2013 Cleared for Public Release 09/16/2013 2013 TRIAD Success Spotlight.ppt Changing Landscape for Defense Markets • Competitive Environment -Low Cost and Technical Acceptable vs. Best Value -Competition with other Countries vs. other Companies • • • • “Award Stagnation” - Longer Award Cycle Times Reduced Quantities and Extended Delivery Schedules Program and Quantity Aggregation, Fewer Programs International Growth focus that include mandated Offsets 130611 SB-National 8a 6 Rough Waters Ahead • Government Spending / Budget Uncertainties • Shifting Priorities • More Industry Protests • Large Companies bidding on Smaller Projects • International Growth • Mandated Offsets 7 What we are NOT going to do………… ES-powerpoint-template-2013 7 Better Buying Power (BBP) 2.0 8 Affordability is the New Normal “When I talk about affordability, I’m really not talking about costcontrol, per se…I’m talking about not starting programs that we can’t afford” © BAE Systems 2013 Cleared for Public Release 09/16/2013 Information and POC’s Visit our BAE Systems website……http://www.baesystems.com/supplierdiversity •Sector Descriptions- Intelligence & Security Land & Armaments Support Solutions Electronic Systems Supplier Diversity Calendar of Events Small Business Liaison Officer Listing Supplier Registration Additional Resources 10 130611 SB-National 8a Summer ConferenceAnchorage www.baesystems.com/supplierdiversity ELECTRONIC SYSTEMS - SUPPLIER DIVERSITY Thank you! QUESTIONS? © BAE Systems 2013 Cleared for Public Release 09/16/2013 2013 TRIAD Success Spotlight.ppt