2007 North Carolina PTAC Supplier Diversity Workshop

1. 2007 North Carolina PTAC Supplier Diversity Workshop Rhys Sueur Senior Manager Procurement Systems and Compliance General Dynamics Armament and Technical Products

2. SBLO DUTIES Inform and assist Buyers in locating and using appropriate Small Business concerns as sources of supply. Respond to inquiries from potential suppliers and ensure they are brought together with Buyers and other appropriate personnel who may be able to use their products and/or services. Review subcontracts potential for Small Business participation. Advocate for Small Business content in all "make-or-buy" decisions

3. SBLO DUTIES (cont) Participate in establishment of relevant subcontract goals and monitor performance. Collect data and report on achievements as required. Attend trade fairs and seminars for the advancement of Small Business concerns . Assist in development of programs to expand contacts.

4. US Government Regulations and Policies

5. GOVERNMENT SMALL BUSINESS POLICY It is the policy of the United States that small business concerns, veteran-owned small business concerns, service-disabled veteran-owned small business concerns, HUBZone small business concerns, small disadvantaged business concerns, and women-owned small business concerns shall have the maximum practicable opportunity to participate in performing contracts let by any Federal agency, including contracts and subcontracts for subsystems, assemblies, components, and related services for major systems. It is further the policy of the United States that its prime contractors establish procedures to ensure the timely payment of amounts due pursuant to the terms of their subcontracts with small business concerns, veteran-owned small business concerns, service-disabled veteran-owned small business concerns, HUBZone small business concerns, small disadvantaged business concerns, and women-owned small business concerns.

6. FAR AND DFARS 52.219-8 � Utilization of Small Business Concerns US Government policy and the requirement for prime contractors to follow it 52.219-9 � Small Business Subcontracting Plan Requirement and content of plans SF 294 and SF 295 submittal Record keeping requirements concerning Small Business activities

7. FAR AND DFARS (cont) 52.219-16 � Liquidated Damages- Subcontracting Plans Failure to make a good faith effort to attain the goals in the subcontracting plan An amount equal to the actual dollar amount by which the contractor failed to achieve each subcontract goal 252.219-7003 � Small, Small Disadvantaged and Woman-Owned Small Business Subcontracting Plan (DoD Contracts) Supplements FAR 52.219-9

8. GOALS BY PUBLIC LAW Small Business 23% SDB 5% Woman Owned 5% HUBZone 3% SDV 3% Vet BE HBCU BE

9. CERTIFICATION PROCESS HubZone � SBA SDB � SBA Small Business � Self Woman Owned � Self Veteran � Self Service Disabled Vet - Self

10. Subcontracting Plans and Small Business Reporting

11. TYPES OF SUBCONTRACTING PLANS Commercial Plans � All the elements including goals have been negotiated for the Contractor�s fiscal year based on their estimate of commercial sales (294s not required). Comprehensive Plans � DOD test program. All the elements including goals are negotiated on a company wide basis for all defense contracts (294s not required).

12. TYPES OF SUBCONTRACTING PLANS (cont) Master Plans � All the elements in the Subcontracting Plan have been negotiated except for the goals (294s required). Individual Plans � All the elements including goals are negotiated for each required contract (294s required).

13. INDIVIDUAL SMALL BUSINESS SUBCONTRACTING PLANS Required for all contracts and subcontracts over $550,000 at any tier Based on domestic subcontracting effort Exceptions for small businesses, commercial products, personal service contracts, and contracts performed outside the United States with no subcontracts to US sources. An SF 294 must be submitted for each individual plan in April and October

14. CONTENT OF PLAN Solicitation or Contract Number Name of PCO/ Command/ Fax number Percentage Goals and Subcontract $ Small Business HUBZone Small Business Small Disadvantaged Business Women-Owned Small Business Veteran- Owned Small Business Service-Disabled Veteran-Owned Small Business Historically Black Colleges or Universities or Minority Institutions

15. CONTENT OF PLAN (cont) If public law goals are not proposed in the plan, an explanation is required to include Why the goals were not met or why the procurement did not lend itself to SB/ SDB What efforts were utilized to attempt to meet the goals Why these efforts were not successful Future plans to include more small businesses in subcontracting opportunities

16. CONTENT OF PLAN (cont) Planned Supplies and Services List all commodities planned to be subcontracted to Small Businesses and their corresponding dollar amounts List the dollar amounts and commodities by the individual small business categories in the plan Methods used to develop subcontracting goals Method used to identify potential sources Treatment of Indirect Costs Name of plan administrator

17. CONTENT OF PLAN (cont) How Small Business Concerns have equitable opportunity to compete for subcontracts Flowdown of FAR clauses Cooperate in Studies Submit SF 294 and SF 295 reports Description of record keeping Source lists Subcontract solicitation and award for orders over $100K Outreach efforts

18. SF 294 Required to be submitted to the cognizant DCMA and the customer by April 30th and October 31st Type of Report � Regular, Final, Revised Current Goal in $ and % are the goals in the accepted Small Business Subcontracting Plan Actual Cumulative $ and % are the totals of all the domestic subcontracts in the performance of the contract Final reports must include an explanation of why goals not achieved and Optional Form 312 on breakdown of SDB participation

19. SF 295 Required to be submitted to the cognizant DCMA by April 30th and October 31st Company Information including Duns Number Cumulative Fiscal Year Subcontract Awards Name of SBLO Signed by senior person in the company

20. DCMA Oversight

21. BARBARA LITTLE�S DCMA REVIEW POINTS Discuss current FY performance Provide a comprehensive briefing on your 2006 forecast from bottom up Strategic Sourcing Team that assists in forecasting Goals for the current FY Goals for the last three years 3 year performance against goals

22. BARBARA LITTLE�S DCMA REVIEW POINTS (cont) Effectiveness of outreach program. New small businesses that have been added as the result of outreach in the last two years Sole source procurements that are Government/ contractor directed Ensure the Small Businesses are able to compete in high-tech procurements Small Business can find out what your company plans to procure

23. BARBARA LITTLE�S DCMA REVIEW POINTS (cont) Successes in redirecting business from Large to Small Businesses Access to subcontract spend data in detail Type of procurement system Analysis of the subcontracting spend

24. SMALL BUSINESS REVIEW Normally annually Conducted by the DCMA office where you send your SF 294s and 295s DCMA Form 640 Company statistics on amount of DOD contracts 294 analysis 295 analysis Company Small Business policies and procedures Outreach efforts

25. SMALL BUSINESS REVIEW (cont) DCMA Form 640 (cont) Subcontracting Plans Compliance with FAR clauses Company Small Business Policy Statement SBLO appointment letter Management involvement with Small Business Program Small Business supplier lists

26. SMALL BUSINESS REVIEW (cont) Outstanding � exceeded at least one goal and met all others on all final SF 294s for the review period Highly Successful � met all goals on all final SF 294s for the review period Acceptable � demonstrated good faith effort to meet all goals and all reporting is complete and accurate Marginal � deficient in meeting key subcontracting plan elements, reporting is not correct or accurate, failed to comply with corrective action plan. Corrective plan required and ACO must be notified

27. SMALL BUSINESS REVIEW Unsatisfactory � non compliant with the public laws, FAR regulations, and reporting requirements. Management does not show interest in attaining an acceptable level. Corrective plan required and ACO must be notified

28. Best Practices

29. DCMA BEST PRACTICES OF PRIME CONTRACTORS Establish team or working group to assign advocates that act as extension of Supplier Diversity program office Utilization of Manufacturing Engineer to visit SDBs that had contacted SBLO regarding business opportunities Publication of supplier diversity news Appointment of business advocate for each diversity group SBLOs formed a committee to better prepare subcontractors to do business with their companies

30. DCMA BEST PRACTICES OF PRIME CONTRACTORS (cont) Inclusion of small, disadvantaged and women-owned businesses in every procurement Identification of where expenditures occurred so everyone, not only the buyer, knew to be on the lookout for small business sources in those areas Approval to award to SDBs that were not the low bidder Formation of re-sourcing team to establish policy and procedures to resource material from one supplier to another Technology utilization

31. OTHER SUGGESTIONS Diary of all inquiries that come to SBLO Retained records of all Small Business Subcontracting Plans Spreadsheet Email template to respond to suppliers on how to do business with GD Supplier review boards Commodity specific Review and qualify suppliers Identify diverse suppliers

32. OTHER SUGGESTIONS (cont) Internal website for buyers Central repository of potential suppliers Frequently asked questions Points of contact All internal employees have access External website for suppliers Government contract provisions Terms and Conditions Quality Codes IUID Marking Instructions

33. HANDOUTS The Business Class Representation Form � sent to Suppliers for size certification and includes the FAR sites and definitions Size Status Matrix � used to document solicitation and award to Small Business concerns How to do Business with General Dynamics Armament and Technical Products � given to Small Business suppliers to help them through the process