Northrop Grumman Today November 2015 Voltaire Walker Manager, Global Supplier Diversity Programs Northrop Grumman Electronic Systems Northrop Grumman Today • Leading global security company • $24 billion sales in 2014 • Located in all 50 states and 25 countries • Leading capabilities in: – Unmanned Systems – Cyber – Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) – Logistics Focus on Performance 2 Four Operating Sectors at a Glance Aerospace Systems Electronic Systems Information Systems Strategic Space Systems International Air Defense and Border Security Global Command & Control Systems C4ISR Military Communications and Networks Military and Civil Space Systems Unmanned Systems 3 Technical Services High-Tech Services and Training Systems Logistics and Modernization of Military Equipment Full-spectrum Cyber Radar Systems and Sensors Intelligence, Surveillance & Reconnaissance Systems Manned Aircraft Design, Integration and Manufacturing Electronic Warfare Global Strike Navigation and Positioning Systems Airborne Ground Surveillance Battle Management Propulsion and Power Generation Electronic Attack Space Systems and Sensors Multi-Source Intelligence Integration Health IT Air and Missile Defense Civil Security and Public Safety Systems Identity Management and Biometrics Sustaining Engineering and Support New Innovative Logistics Products Electronic Systems Major Locations Salt Lake City, UT Colorado Springs, CO Cincinnati, OH Boulder, CO Sunnyvale, CA Rolling Meadows, IL Buffalo, NY Sykesville, MD Baltimore, MD Elkridge, MD Charlottesville, VA Woodland Hills, CA Annapolis, MD Azusa, CA Ocean Springs, MS Apopka, FL 4 Melbourne, FL NGES Global Supplier Diversity Program Org Chart * Reports to Director SCM Policy, Development & Compliance Josephine Yau Sector Manager * Electronic Systems Baltimore Voltaire Walker GSDP Manager Electronic Systems Baltimore Cindy McKeever SBLO Baltimore Marissa Lewis SBLO Baltimore COMP PLAN CAMPUSES BALTIMORE TROY HILL ROLLING MEADOWS ANNAPOLIS SYKESVILLE NON- COMP PLAN CAMPUSES APOPKA AMHERST AZUSA WOODLAND HILLS SUNNYVALE CHARLOTTESVILLE CINCINNATI OPEN Donna Duke SBLO Laser Systems Apopka Glenn Shupe SBLO Amherst Systems Amherst SBLO Azusa Woodland Hills Melissa Ozaeta Subcontracts Administrator West Coast Sunnyvale Melissa Poli SBLO Maritime Systems Charlottesville Annapolis Sykesville Brian James SBLO LSPSD (Xetron) Cincinnati Trends, Demand Drivers, Challenges Emerging Trends Demand Drivers • Utilizing enterprise wide agreements to leverage spend • Purchasing at the systems level • Maintaining a smaller supplier base that possesses a wider range of capabilities • Customer Satisfaction • Innovation • Developing products and services that exceed customer requirements Challenges • Locating small, minority and women owned businesses with the capacity to support larger and more complex requirements • Identifying existing suppliers and locating potential suppliers that comply with changing counterfeit electronic parts regulations 6 Areas of Focus / Ongoing Initiatives • Mentor-Protégé Program • Service-Disabled Veterans Program • HBCU/MI Program • AbilityOne (formerly Javits-Wagner O’Day) program • Women’s Business Program • Small Disadvantaged Business Program • Small Business Innovation Research and Small Business Technology Transfer (SBIR/STTR) • Historically Underutilized Business Zones (HUBZone) Program 7 • Outreach to American Indian-Owned Companies • Outreach to Lesbian, Gay, Bisexual and Transgender-Owned Companies • Annual Recognition Program • GSDP Strategy Council Northrop Grumman Tracks Performance and Performs Targeted Outreach In Support of These Initiatives How Do We Locate Suppliers? • Outreach Events – Commodity-Specific – Program-specific – Small Business Category-Specific, i.e., SDB, Vets • Prospective Supplier Database – https://oasis.northgrum.com • Recommendations from: – – – – Customers Other Aerospace Counterparts Technical and Program Management From Various Ethnic Trade Associations • Company Protégés – 6 Protégés in GFY 2014 • Existing Suppliers – Leveraged Across the Enterprise 8 Capabilities, Timing, Past Performance, Relationship Building Are Key Considerations Do Your Homework Before You Make Contact Basic Marketing Research • How is the Company Structured? • What are the Principal Products? • Does This Company Buy What I Sell? • How Does the Purchasing Process Work? • Could my company’s capabilities fit a special niche within this company? • Should I consider teaming with one or more companies to gain access to more opportunities? • How can I add value to this Company? Logistics / Timing • Proximity of Supplier to Company? • Who is My Competition? • Has the Company Received New Business Contracts? • When Will Materials / Services be Needed? Developing the Prime/ Subcontractor Relationship What Works • Credibility • Quality Products / On-time Delivery / Cost Affordability What Doesn’t • Contacting High Level Execs • Demanding Business • Proven Performance • Being Unprepared • Conferences / Trade Fairs • Not Doing Your Homework • Perseverance • Knowing the System Building a Positive Relationship with Potential Customers is Key to a Successful Outcome Tips For Success Team with other small businesses in order to offer expanded capabilities Provide added value by offering additional complementary products and services Develop / nurture customer relationships Allows the supplier to better understand its customer requirements Develop strategic alliances Join industry organizations in order to stay current on new technology and trends Position Yourself in your target industry Understand the Marketplace Create your Niche - Identify what makes you unique in the Marketplace Maintain a strong financial history 11 Length of time in business Strong financial statements Maintain funding resources Financial resources to sustain the company during aggressive growth as well as a market downturn Where to Get Help 12 Resource Website Global Supplier Diversity Programs Offices - Can Provide Information and Materials to Potential Suppliers http://www.northropgrumman.com/suppliers Small Business Administration (SBA)’s Counterfeit Parts Training Module http://www.sba.gov/gcclassroom Procurement Technical Assistance Centers (PTACs) www.aptac-us.org Small Business Development Centers (SBDCs) https://www.sba.gov/tools/localassistance/sbdc Minority Business Development Agency (MBDA) www.mbda.gov National Contract Management Association www.ncmahq.org Industry Associations i.e., Aerospace Industries Association (AIA) www.aia-aerospace.org Business Associations i.e., Women’s Business Enterprise National Council (WBENC) www.wbenc.org Contact Information • For Background Information About Northrop Grumman Corporation: www.northropgrumman.com • Follow us on: Social Media Website Twitter www.twitter.com/northropgrumman Facebook www.facebook.com/northropgrumman Tumblr www.northropgrumman.tumblr.com • Small Business Program Contacts http://www.northropgrumman.com/suppliers 13 Contact Information Gloria Pualani Corporate Director GSDP / Government Relations Ph: 703.280-2386 E-mail: gloria.pualani@ngc.com Review the Northrop Grumman Website http://www.northropgrumman.com/suppliers/Pages/WhatWeBuy.aspx for Commodities Available For Subcontracting 14 Contact Information 15 Summary Northrop Grumman’s Procurement Strategy Is Designed to Insure That Capable Small Businesses Receive The Maximum Practicable Subcontracting Opportunities On Our Programs