ELECTRONIC BUSINESS/SECTOR
PROCUREMENT PROCESS REQUIREMENTS
Northrop Grumman System Corporation (NGSC) is comprised of five business units
(sectors) utilizing a variety of unique purchasing systems and processes. This document
is intended to assist potential NGSC eCatalog suppliers in obtaining an understanding of
the complexities that exist today among the various sectors. The following consists of
sector-specific information relating to the various procurement, purchase order
distribution, transportation, and payment methods used throughout NGSC. Corporate
awarded suppliers will be required to support the eBusiness requirements of all NGSC
sectors.
Supplier Request for Proposal (RFP) submittals will be evaluated to determine supplier’s
ability to accommodate the following NGSC eBusiness requirements. This addendum
must be reviewed by supplier eBusiness/eCommerce representatives for proposal
generation purposes. All questions must be directed to the NGSC Corporate Award
Administrator who will obtain and issue all responses on behalf of NGSC.
PROCUREMENT METHODS
All sectors have the capability to process purchase order requisitions and release
approved purchase orders by way of their sector-specific purchasing systems (backend).
At a minimum, all purchase orders reference or contain the following: sector-specific
terms and conditions, the responsible professional buyer, and information relating to
shipping and billing. Sectors may also procure materials and services using blanket
order/long-term service agreements. All long-term agreements will contain specific
terms and conditions relating to how all procurement activity is to be conducted.
In addition, all sectors have approved personnel who have been issued individual
purchasing cards (Pcards/credit cards). Individual purchasing cards may be utilized to
procure materials and services as authorized by and in accordance with sector
Purchasing/Procurement department’s processes and procedures.
PURCHASE ORDER DISTRIBUTION METHODS
The NGSC sectors utilize various methods to distribute approved purchase order
documentation. Purchase orders are issued by way of auto fax, EDI, fax, email, and
regular US mail. Electronic Systems and Aerospace Systems also send purchase orders
and change notices electronically through a web interface, (OASIS), supplier portal.
Northrop Grumman System Corporation established user IDs and passwords are required
to utilize OASIS.
The distribution of eProcurement purchase orders will be discussed under the
eProcurement section of this document.
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TRANSPORTATION PROCESSES/METHODS
Ryder Integrated Logistics is the NGSC third-party logistics (3PL) provider of choice for
inbound and outbound shipments. SCATS (Supply Chain Active Tracking System), a
transportation management system provided by Global Logistics Village, is the NGSC
approved web-based tool that provides enterprise-wide visibility and is utilized by
approved suppliers to:
a) View NGSC purchase order information relating to material shipments,
b) Enter required information relating to the item being shipped,
c) Obtain authorization to ship materials against the applicable purchase order,
d) Obtain an approved receiving bar-code label that must be included with
materials to be shipped,
e) Obtain authorization for premium (i.e. expedited) shipping modes, and
f) Track shipment transportation deliveries and inventory receiving.
To date, the Ryder 3PL initiative has not been implemented at all NGSC sectors. The
Northrop Grumman System Corporation Electronic Systems (NGES), Aerospace
Systems (NGAS) sectors have integrated the use of SCATS for the transportation of
purchased materials. These sectors require all suppliers to utilize Ryder and/or SCATS.
Suppliers are invited to contact Global Logistics Village to receive SCATS training and
upon completion will receive the required user IDs and passwords to access SCATS.
Suppliers with automated shipping systems can also interface with SCATS via file
interface, generating pre-approved receiving barcodes from their internal systems.
Contract award suppliers will benefit from this 3PL initiative. Recognized benefits
include a single point of contact for shipment/delivery information, enhanced visibility
for on-line tracking and web-based access to further include on-line bar coding
capabilities. These solution enhancements provide for timely, accurate, material receipts
resulting in a streamlined payment process.
Corporate Awarded suppliers must utilize Northrop Grumman’s 3PL Logistics
Provider and/or SCATS transportation management system when required by
Northrop Grumman Corporate Procurement or individual NG Operating Elements.
Acceptance of Northrop Grumman Transportation Processes and Methods must be
addressed in your proposal.
PAYMENT METHODS
Northrop Grumman System Corporation sectors utilize various methods of payment as
approved by the applicable sector to include: check payments based on material receipts
(two-way match) and/or receipt of supplier’s invoice (three-way match), electronic funds
transfer (EFT), individual purchasing cards (Pcards), and ghost card accounts. Potential
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corporate award suppliers must be able to accommodate all of the aforementioned
payment methods.
American Express (AMEX) is currently under contract as the Northrop Grumman
purchasing card. Various sector employees, to include Professional Purchasing Agents,
have been authorized to use the AMEX Corporate Purchasing Card to make procurement
commitments on behalf of the corporation. Pcard transactions may consist of a single
line item or various line items depending on the cardholder’s specific requirement.
Ghost card accounts are AMEX account numbers that are provided to NGSC Corporate
Award suppliers rather than employees. All NGSC eProcurement suppliers must already
be an AMEX Level 3 merchant or agree to become an AMEX Level 3 merchant, and
provide (capture) detailed information that is typically obtained from a supplier’s invoice.
The information to be entered by supplier into the AMEX web-based transaction tools
will vary depending on NGSC sector-specific reconciliation requirements. Sectorspecific AMEX transactional requirements will be provided during the NGSC supplier
activation process.
Participating suppliers will receive one ghost card account number per sector or division
(NGES only). Suppliers will be required to accommodate multiple ghost card account
numbers as an approved method of payment for approved eProcurement purchase orders
and ensure the correct use of all sector/division ghost card accounts.
Corporate Awarded suppliers must accept American Express as an approved
method of payment when required by Northrop Grumman Corporate Procurement
or individual NG Operating Elements. Acceptance of Northrop Grumman Payment
Methods must be addressed in your proposal.
ELECTRONIC PROCUREMENT PROCESSES
Background
Northrop Grumman System Corporation (NGSC) currently utilizes Supplier Relationship
Management (SRM), an e-Procurement solution developed by SAP. The sectors have
branded the tool iBuy.
There are three types of electronic catalogs that are implemented into the NGSC
eProcurement tools: supplier-managed (punch-out/roundtrip), NGSC-managed
(internal/flat file), and 3rd party hosted. Corporate award suppliers that have punch-out
catalog capability must be able to interface with both the SAP and Ketera eProcurement
solutions. To accommodate the internal/flat file and 3rd party hosted catalogs, the
supplier will be required to submit a Microsoft Excel spreadsheet.
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Corporate award suppliers will be required to assign 8-digit United Nations Standard
Products and Services Codes (UNSPSC) to all catalog items. In addition to supporting
all NGSC eProcurement tools, corporate award suppliers will be required to:
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 provide/update products and pricing within catalogs in accordance with
corporate award
 support the aforementioned catalog formats and required fields
 exclude products such as hazardous materials as requested by NGSC
 support NGSC eProcurement units of measures as required by each NGSC
eProcurement tool
 support multiple catalog views for NGSC sectors
 support multiple versions of the UNSPSC code-set
 provide company representatives that will assist in all NGSC eBusiness
implementation planning efforts prior to and after contract execution.
The following is a brief synopsis relating to sector-specific eProcurement requirements.
Electronic Systems (NGES)
Headquartered in Baltimore, Maryland, the Electronic Systems sector (NGES) is
comprised of five divisions. NGES generates and issues the following two types of
eProcurement purchase orders dependent upon specific divisional systems requirements.
 Local purchase orders (PO Series “10”) – purchase orders created within the
iBuy eProcurement tool are made available to corporate award suppliers by
way of a supplier portal owned and operated by Perfect Commerce. Suppliers
are required to register with Perfect Commerce to obtain authorization to:
o receive email notifications relating to incoming NGSC purchase orders
o view, save, and download approved NGSC purchase orders
o acknowledge receipt of the NGSC purchase order.
All local purchase orders have ten-digit purchase order numbers beginning with “10” and
contain specific two-letter divisional identifiers (example: EB – Amherst Systems).
Information relative to the applicable NGSC requestor (name, phone number, email
address, delivery address) is also provided on each approved purchase order. Material
deliveries may be made directly to the shopper (assumed receipt) or delivered to a NGSC
authorized receiving location.
Approved payment method: American Express ghost card (see Payment Methods).
Unique ghost card account numbers are provided for each two-letter divisional identifier.
Ghost card number is not transmitted on eProcurement purchase order.
 backend purchase orders – Items are selected using electronic catalogs, but
approved purchase orders are created and distributed from the sector or
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divisional backend system. Backend purchase orders will be issued to
suppliers by way of (OASIS/MyOASIS), auto-fax or mail. Purchase orders
contain sector-specific terms and conditions as well as instructions relating to
delivery and billing.
Approved payment method: Electronic Funds Transfer (EFT) or check
Corporate Award suppliers will be required to accommodate the receipt and processing of
both types of eProcurement purchase orders in accordance with business unit
requirements. The NGES business units along with the specific types of eProcurement
purchase orders issued and sector codes are described in the below legend.
Division
BWI (Homeroom)
Navigation Systems
Marine Systems
Laser Systems
Sperry Marine
Amherst Systems
Headquarters
Baltimore, MD
Woodland Hills, CA
Sunnyvale, CA
Apopka, FL
Charlottesville, VA
Buffalo, NY
Code
ES
ES
ES
EL
EP
EB
PO to be issued
local and backend
local and backend
local and backend
local only
local only
local only
The below location is now a part of the IS sector but will continue to be supported by
NGES until they are migrated over to the IS procurement systems and processes.
Sector
Type of
Division
Headquarters
Code
PO to be issued
Remotec
Clinton, TN
ET
local only
Aerospace Systems (NGAS)
Headquartered in El Segundo, California, the Aerospace Systems Sector (NGAS) is
comprised of four Business Areas with 35 locations nationwide. NGAS generates and
issues “extended classic” backend eProcurement purchase orders beginning with “72”.
Items are selected using electronic catalogs, but approved purchase orders are created and
distributed from the sector backend system.
Corporate Office (NGCO)
Headquartered in Falls Church, Virginia, the NGCO sector is comprised of key locations
in:
 Falls Church, VA
 Irving, TX
 Baltimore, MD
 El Segundo, CA
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 NGCO generates and issues catalog purchase orders which use the
“72xxxxxxxx” series and are routed to Perfect Commerce.
 The sector identifier used to determine NGCO AMEX billing is: “NGCO”
 NGCO has about 250 catalog shoppers.
 Payment vehicle on catalog orders is the AMEX Ghost Card Program. Card
account number is not transmitted on catalog orders.
 Item substitutes are not permitted on NGCO catalog orders.
 If a supplier cannot fulfill a catalog order or a line within that order, the
supplier is required to contact the shopper.
 NGCO uses only USD currency on catalog orders.
Information Systems (NGIS)
Headquartered in McLean, Virginia, the Information Systems sector (NGIS) is comprised
of approximately 200 locations nationwide and abroad.
NGIS generates and issues “extended classic” backend eProcurement purchase orders
“72” series. Items are selected using electronic catalogs, but approved purchase orders are
created and distributed from the sector backend system. Backend purchase orders are
made available to corporate award suppliers by way of Perfect Commerce.
Approved payment method: American Express ghost card (see Payment Methods).
Ghost card number is not transmitted on eProcurement purchase order.
Technical Services (NGTS)
Headquartered in McLean, Virginia, the Information Systems sector (NGTS) is
comprised of approximately 200 locations nationwide and abroad.
NGIS generates and issues “extended classic” backend eProcurement purchase orders
“72” series.. Items are selected using electronic catalogs, but approved purchase orders
are created and distributed from the sector backend system. Backend purchase orders are
made available to corporate award suppliers by way of Perfect Commerce.
Approved payment method: American Express ghost card (see Payment Methods).
Ghost card number is not transmitted on eProcurement purchase order.
NGSC CONTENT MANAGEMENT TEAM
The NGSC Content Management team, consisting of representatives from each NGSC
sector, is responsible for all eProcurement content management initiatives to include:
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 assessing supplier eBusiness capabilities during the Request for
Information (RFI) and Request for Proposal (RFP) stages to assist in
Corporate Award supplier selection,
 electronic catalog implementations and ongoing production catalog
maintenance and support,
 supplier readiness (Perfect Commerce/AMEX/OASIS)
 catalog content reviews,
 electronic catalog testing and problem resolution,
 investigates and resolves electronic catalog-related issues,
 user communications,
 evaluates and pursues all electronic catalog item additions, deletions,
and other modifications upon request.
Supplier may be required to attend pre-scheduled meetings to assist NGSC in its
assessment of supplier eBusiness/eProcurement capabilities upon request. If chosen for a
NGSC Corporate Award, supplier will be required to engage a team of company
representatives that will assist in a timely and expeditious eBusiness/eProcurement
implementation initiative.
Supplier shall present a plan that identifies the following:
 Provide a plan on how their punchout sites, if applicable, will be maintained to
only include items as authorized by NGSC.
 Seller will be required to maintain the Exhibit “A” product listing and provide
any pursuant changes to Buyer, in writing, on a quarterly basis
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Supplier eBusiness Management Representative
Please provide the contact information of your eBusiness Management Lead that may be
contacted to address any questions relating to your eBusiness proposal.
Name:
________________________________________
Title:
________________________________________
Phone:
________________________________________
Email Address:
________________________________________
Corporate Awarded suppliers must agree to establish the Electronic Procurement
Processes as described above when required by Northrop Grumman Corporate
Procurement or individual NG Operating Elements. Acceptance of Northrop
Grumman Electronic Procurement Processes must be addressed in your proposal.
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