National 8(a) Fall SummitChanging Landscape in Government

Subcontracting

Presented by: Susan KingOctober 30, 2013

© BAE Systems 2013 Cleared for Public Release 09/16/2013 2013 TRIAD Success Spotlight.ppt

BAE Systems, Electronic Systems

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.

33© BAE Systems 2013 Cleared for Public Release 09/16/2013

Typical Prime Contractor Challenges

© BAE Systems 2013 Cleared for Public Release 09/16/2013 2013 TRIAD Success Spotlight.ppt

• 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

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

ES-powerpoint-template-2013 7

What we are NOT going to do…………

Better Buying Power (BBP) 2.0

8

Affordability is the New Normal

“When I talk about affordability, I’m really not talking about cost-

control, 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 & SecurityLand & ArmamentsSupport SolutionsElectronic Systems

Supplier Diversity Calendar of EventsSmall Business Liaison Officer ListingSupplier RegistrationAdditional Resources

10 130611 SB-National 8a Summer Conference-Anchorage

ELECTRONIC SYSTEMS - SUPPLIER DIVERSITY

www.baesystems.com/supplierdiversity

Thank you!

© BAE Systems 2013 Cleared for Public Release 09/16/2013 2013 TRIAD Success Spotlight.ppt

QUESTIONS?