FEOB/Supplier Diversity

Jeff Krongaard

Missile Systems

SCM Mentor-Protégé & SBIR Mgr

Doing Business With Raytheon

October 4, 2012

Raytheon Company Business Content

Raytheon Company

TaylorLawrence

RickYuse

TomKennedy

Daniel Crowley

LynnDugle

JohnHarris

Space & Airborne Systems

Integrated Defense Systems

Network Centric Systems

Intelligence & Information Systems

Raytheon Technical Services Company

Missile Systems

Bill SwansonChairman and CEO

Missile Systems Leadership

Taylor W. LawrencePresident

Andrew R. AmaroStaff Executive

FinanceFinance

Stephen G.Eggen

Human Resources &Security

Human Resources &Security

Darren Burton

Naval and Area Mission DefenseNaval and Area Mission Defense

Rick M. Nelson

Information TechnologyInformation Technology

Wyllstyne D.Hill

LegalLegal

Scott L.Jones

Business DevelopmentBusiness Development

JamesWolf

Communications& External AffairsCommunications& External Affairs

Robert C. Koch

ContractsContracts

John G.Brauneis

Air & Missile Defense SystemsAir & Missile Defense Systems

WesKremer

Air Warfare SystemsAir Warfare Systems

Harry E.Schulte

EngineeringEngineering

Bernie Merwald

Quality & Mission AssuranceQuality & Mission Assurance

PaulHoff

Supply ChainManagement

Supply ChainManagement

MikeJarrett

Advanced Security and Directed Energy SystemsAdvanced Security and Directed Energy Systems

Michael W.Booen

OperationsOperations

Jason A. Elwood

Advanced Missile SystemsAdvanced Missile Systems

ThomasBussing

TechnologyTechnology

BobFrancois

Program Management ExcellenceProgram Management Excellence

WadeSmith (Acting)

Raytheon Missile Systems – Who We Are2011 sales: $5.6 billion11,900 employees Headquartered in Tucson, ArizonaWorld’s largest developer, producer

and integrator of weapon systems– More than 1 million missiles

produced since 1954Broad weapons portfolio

– Missiles– Smart munitions– Projectiles– Kinetic kill vehicles– Directed energy weapons

Customers: All U.S. military services; allied forces of more than 50 countries

Continuing to grow our international business

International Military SalesInternational Military Sales Cooperative AgreementsCooperative Agreements

Missile SystemsInternational Programs

AMRAAM –35 Countries

Centurion LPWS –1 Country

ESSM –12 Countries

Excalibur –3 Countries

HARM –8 Countries

Javelin –12 Countries

Maverick –33 Countries

Paveway –40 Countries

Standard Missile –GermanyJapanNetherlandsSpain

Stinger –GermanyGreeceNetherlandsNATOSwitzerlandTurkey

Talon –UAE

TOW –SpainSwitzerland

Phalanx –21 Countries

RAM –7 Countries

Sidewinder –53 Countries

Sparrow –20 Countries

Standard Missile –15 Countries

Stinger –18 Countries

Tomahawk –2 Countries

TOW –43 Countries

ESSM –AustraliaCanadaDenmark

GermanyGreeceJapanNetherlandsNorwaySpainTurkey

Excalibur –Sweden

I-SAAM –Korea

NASAMS –Norway

RAM –GermanyKorea

Missile Systems Footprint

Missile Systems Programs

• Advanced Cruise Missile

• AMRAAM• AIM-9 Sidewinder

family• HARM Targeting

System• High Speed Anti-

Radiation Missile• Joint Standoff

Weapon• Maverick• Miniature Air

Launched Decoy• Paveway™ Guided

Munitions• Small Diameter

Bomb II• Tomahawk

Air Warfare Systems

Harry E.Schulte

• Excalibur• Javelin• Laser Guided

Rocket• Serpent• Stinger• TOW

Land Combat

Michelle J.Lohmeier

• Advanced Missile Defense

• European Missile Defense

• ExoatmosphericKill Vehicle

• Missile Defense Targets

• Net Centric Airborne Defense Element

• Standard Missile Family (SM-1,SM-2, SM-3, SM-6)

Air & Missile Defense Systems

WesKremer

• Centurion™• Evolved

SeaSparrow Missile• Phalanx• Rolling Airframe

Missile• SeaRAM• SeaSparrow

Naval and AreaMission Defense

Rick M.Nelson

• Advanced Tactical Targeting Technology

• Loitering Weapons• Long Endurance

Vehicles• Unmanned Systems• Urban Warfare and

Small Weapons

Advanced Missile Systems

ThomasBussing

• Active Denial System• David’s Sling

Weapon System• Laser Area Defense

System• Quiet Eyes™• Silent Guardian™• Space• Vigilant Eagle

Advanced Security & Directed Energy

Systems

Michael W.Booen

Performance - Relationships - Solutions

Identify Gaps – Variance in Supply Chain

CastingsCastings

Chemicals & GasesChemicals & Gases

ConnectorsConnectors

Electrical ProductsElectrical Products

Guidance and ControlsGuidance and Controls

Hardware and Bearings Hardware and Bearings

MachiningMachining

Major AssembliesMajor Assemblies

Manufacturing Lab SuppliesManufacturing Lab Supplies

Packaging SuppliersPackaging Suppliers

Wire & CableWire & Cable

Microwave DevicesMicrowave Devices

OpticsOptics

Outside ServicesOutside Services

Passive DevicesPassive Devices

Power SuppliesPower Supplies

Propulsion Warheads & Propulsion Warheads &

PyrotechnicsPyrotechnics

PWBs / CCAsPWBs / CCAs

SemiconductorsSemiconductors

Test EquipmentTest Equipment

Art/ Computer Graphics/ Text ProcessingChemical & Gas ManagementColor Film ProcessingComputer Hardware/ SoftwareConsultantsContract LaborCopier Paper/ Fine PaperCopiers & Print ServicesEnergy BrokeringExpress Air - DomesticExpress Mail - International

Facilities ServicesFaxesFlight Operations ServicesFood and Vending ServicesFormsFreight Payment - 3rd PartyFuels & OilsFurnitureGeneral ConstructionGraphic SuppliesHazardous Waste & Environmental

Household Goods Transportation

International Freight Forwarding & Brokerage ServicesJanitorial SuppliesLease/ Purchase VehiclesLithographyManufacturing/ Laboratory SuppliesOffice and Computer SuppliesPackaging SuppliesProfessional Services-Health & WelfarePurchasing CardReprographicsSecuritySoftware DevelopmentSolid Waste Management and RecyclingSupplies & Services/ Video ServicesTelecommunications - Cell PhonesTelecommunications - PagersTelecommunications Long Distance VoiceTest EquipmentTest Equipment CalibrationTest Equipment RentalTransportation Logistics

Direct Commodity Agreements Indirect Commodity Agreements

Missile Systems Business Mix (2012)

Direct International

11%

Foreign Military Sales 15%

Domestic 74%

Navy 28% Army 15%

International 11%

Other 7%

Air Force 21%

Missile Defense Agency 18%

Engineering 41%

Production 59%

Development and Production

Domestic and International

Customers

ProductsTomahawk 4%

Phalanx 5%Excalibur 3%

Standard Missile (SM) 4%

Withheld/ Other13%

AS&DES 2%

TOW 7%

Javelin 3%

JSOW 2%

EKV 3%ESSM 3%

AMRAAM 12%

RAM 4%

SM3 14%

AIM-9X/AIM-9M

4%

SM6 4%AM&US 2%

Paveway 5%

SDBII 2%MALD 2%

Griffin 1%Stinger 1%

Traditional Supplier Requirements Performance Cost Quality Schedule / Delivery

Contemporary Supplier Requirements Customer considerations Competitive market enablers Supplier life cycle in the value chain

Supply Chain Strategies In Global Competition

Supplier Diversity Integral to Supply Chain Strategy

Supply Chain Process Enablers E-Enabled business transactions

• Internet-based transactions Inventory Management Processes

• Barcode technology• Just-in-time deliveries from suppliers• Supplier managed inventory• Warehouse management

outsourcing Supplier performance management

• Supplier scorecards• Web based supplier communications• Supplier consolidation and

rationalization

Taxpayer dollars

a

a

a

Congress

Source Selection Decisions

DoD

Prim

e

Co

ntr

act

ors

Taxpayer Small, Minority, Women

Business Owners

Congress Approve Budget

ProgramsJobsVotes

DoD and Other Gov Agencies Budget

Program FundingBest Value Solutions

Prime ContractorsWin ProgramsCompetitive SolutionsBest ValueCustomer Requirements

Supplier Diversity = Business Strategy

Support the Customer - Support Growth

Supplier Diversity Focus

Raytheon’s Supplier Diversity Program is designed to drive supplier source selection strategy and ensure compliance with:

Public Law Federal Acquisition Regulations Customer Requirements Company Policy

Concerning the utilization of businesses that are:

Small Small Disadvantaged Woman Owned – Small Businesses Veteran Owned – Small Businesses (including Service Disabled) Small Businesses meeting Hub Zone Criteria (historically under-utilized) Historically Black Colleges, Universities and Minority Institutions Minority and Women-Owned Businesses

Supplier Diversity Built in the Organization

Organized to support supplier diversity objectives

Supply Chain leadership team serves as RTN Supplier Diversity council

…and staffed to develop and executeinitiatives and outreach strategy– facilitate collaboration

…key players in local customer interface and developing goals

Supplier Diversity Leadership Team

National, regional and local events

Focused outreach and networking within strategic business areas

Raytheon business specific events

Emphasis on service disabled veteran and HUBZone businesses

Performance - Relationships - Solutions

Outreach drives supplier diversity performance

Supplier Diversity - Responsibilities Provide assistance for “focus businesses” who are interested in doing

business with Raytheon.

Assist in identifying potential sources for procurement opportunities and sourcing strategies.

Ensure supplier diversity is addressed in all procurements and sourcing strategy activities including proposal support.

Track supplier diversity performance and provide customer and industry reports.

Conduct training to ensure that Raytheon personnel are aware of the Raytheon Supplier Diversity objectives.

Provide outreach as a means of developing and counseling “focus businesses”.

Work with Small Business advocate to clarify requirements.

SmallSmallBusiness Business AdvocateAdvocate

Are you in the position to bid for prime contracts with the right Teaming Agreement?

TeamingTeamingAgreementsAgreements

Joint VenturesJoint Ventures

Diversity Diversity SupplierSupplier

ss

DetermineDetermineStrategyStrategy

Determine significant supply strategies (agreements/programs).

Area ofArea ofExpertiseExpertise

Identify/highlight your areas of expertise and map to target company

IndustryIndustryLeader/Leader/

CompetitionCompetition

Research industry competition. Am I a leader in this field? Who held the last contract?

RiskRiskAssessmentAssessment

Can you afford (time, money, technology) to pursue this business?

NationalNationalRegionalRegionalSupportSupport

Utilize existing or develop strategic alliances/national and regional support requirements.

Supplier Diversity Planning Process

2012 Vision, Strategy, Goals and Values

MISSILE SYSTEMS

VisionBe a global leader in core and next-generation weapon and security solutions to ensure customer success.

GoalsCustomer SatisfactionA trusted partner

GrowthA global business

PeopleA great place to work

ProductivityAn improvement-driven culture

ValuesOur customer

Fulfilling commitments

Quality and performance excellence

Open, direct and timely communication

Trustworthy, respectful and ethical behavior

Security, safety and environmental sustainability

Innovative, informed and empowered workforce

Protect and grow core business with next-generation innovation, value-focused solutions and strong performance

Leverage our domain knowledge and relationships to expand into adjacent and global markets

Retain and attract a diverse and exceptionally talented workforce and promote career growth

Strategy

How We Want You to See Us We are responsive to our

customers– Delivering the Warfighters high

quality, proven products– Supporting customer’s urgent needs,

we are a reliable, committed partner Proactive in helping shape the

future and understanding requirements

We provide innovative weapon system solutions– A full-service contractor;

cradle-to-grave support We are looking to the future

The online supplier registration tool will aid in matching suppliers to opportunity.

RTN Supplier Diversity Website

http://www.Raytheon.com/connections/supplier/diversity

Raytheon Supplier Diversity - Connect With Us

Visit our website to learn about our programs www.raytheon.com

Identify a few target businesses or programs Register

Contact the Supplier Diversity Program for guidance rms.supplier.diversity@raytheon.com– Jo Anne Arvizu, Mgr., Supplier Diversity

– Diane Karl, Supplier Diversity Advocate

– Jeff Krongaard, SCM Mentor-Protégé Manager & SBIR Manager

– David Montgomery, SCM Manager, Louisville, KY

Do Your Homework

ITAR 120.10(5), Non-Technical Data 03/11/2010 VMGomez

Performance - Relationships - Solutions

Outreach to meet potential suppliers

Share Raytheon strategy and objectives

Respond to customer requests

• Significant number of requests to support customer, industry and advocacy organization initiatives and events

Build Relationships