Doing Business With device. Select ‘layout’ in the home tab Defence: UK MOD Jim Carter MOD Commercial Director, Supply Chain
1 Defence procurement key facts
UK industry’s largest single customer
Around £21Bn spend in FY 18/19 with over 16,000 suppliers
Planned spend of £186Bn on equipment and support in the next decade
Majority of opportunities to do business with defence exist in our supply chain
2 Our procurement organisations
Information Defence Systems & Services Infrastructure Defence Equipment Organisation & Support
Crown Commercial Defence Science Service &Technology Laboratory
3 Our Strategic Suppliers
4 Our Procurement Approach
• Our procurement processes are based on the principles of fair and open competition and reflect existing EU Procurement Directives
• The Public Contracts Regulations and Defence and Security Public Contracts Regulations will still exist after Brexit
• Several different procedures for use in different circumstances
• We use competition as our default position and do not operate preferred supplier lists
5 Top Tips for SMEs
• Build below the threshold <£100K • Be part of the conversation – look out for Market Engagement events • Answer the exam questions! • Provide evidence to substantiate your bid • Top Tips for Tendering • via DCO at www.contracts.mod.uk
6 Where to find our procurement opportunities
Defence Contracts Online www.contracts.mod.uk Contracts Finder www.gov.uk/contracts-finder ● wider government opportunities ● includes Crown Commercial Services Visit defence contractors’ websites Follow us on Twitter @defenceproc
7 Contact
Doing Business with Defence helpdesk:
8 SME Action Plan
Make it Improve Strengthen Encourage easier to do procurement our supplier innovation business with policy and engagement defence process
9 Innovation
• We want to encourage innovation and attract new and non-traditional suppliers to Defence • Sources of funding for innovation via competitions include: • Defence and Security Accelerator • Innovate UK . Small Business Research Initiative (SBRI) . Open Call for Innovation
10 Preparing your business for Brexit
The UK is leaving the EU. Leaving the EU means your business or organisation may need to prepare for change.
For more information, help and guidance please visit:
https://euexit.campaign.gov.uk
11 Supply Chain overview GENERAL DYNAMICS CORPORATION How is General Dynamics structured? One of top five global defence contractors serving government and commercial customers
Delivering capability and products to customers in more than 120 countries
Aerospace Combat Systems Information Systems Marine Systems & Technology
• Gulfstream • European Land • Information • Bath Iron Works Systems Technology Approximately • Jet Aviation • Electric Boat • Land Systems • Mission Systems 98,600 • NASSCO employees worldwide • Ordnance & Tactical Systems
2018 revenues of $36.2bn
13 02/10/2019 ABOUT GENERAL DYNAMICS LAND SYSTEMS
General Dynamics Land Systems provides:
• Worldwide experience in delivering tracked and wheeled military vehicles
• Specialist knowledge in complex, scalable Electronic Architectures (EA)
• Extensive expertise in Urgent Operational Requirements (UOR) vehicles
• Support and sustainment provision to the customer
Platforms include:
• AJAX family of vehicles
• Abrams main battle tank
• Stryker and LAV wheeled combat vehicles
• MRAP family of vehicles and Ocelot family of vehicles
14 02/10/2019 ABOUT GENERAL DYNAMICS MISSION SYSTEMS
General Dynamics Mission Systems connects users and protects their information across land, sea, air, space and cyber domains.
Ground Systems Maritime & Strategic Systems Space & Intelligence Systems
Land Ground Forces Sea & Air Space & ISR First Responders U.S. Navy, Marine Corps, Air Force NASA, Department of Defence & Intelligence Agencies
International C4ISR Technologies Cyber Systems
Mission Systems–UK Communications Products Cyber Mission Systems–Canada Government, Scientific & Commercial Defense, Intelligence, US Page Europa, Homeland Security & Commercial Markets worldwide
15 02/10/2019 ABOUT GENERAL DYNAMICS UK
General Dynamics UK:
• In the UK for more than 50 years
• More than 1,400 employees
• £440m turnover
Leading supplier to UK MoD in three critical areas:
Armoured Fighting Avionic Tactical Vehicles Systems Communications
16 02/10/2019 WHERE WE ARE
Our locations in the UK.
1. Oakdale and Merthyr Tydfil 2. Bristol 3. Leamington Spa 4. Chippenham 5. Hastings 7 6. Bicester 7. Rotherham 3 6 1 2 4 5
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17 02/10/2019 ARMED FORCES COVENANT
Committed to the Armed Forces Covenant since its launch in 2013 - Supporting employees undertaking Reserve service with up to four weeks’ paid leave and cadet instructors with two weeks’ paid leave - Promoting awareness of the Covenant through visits and briefings by members of the Armed Services - Honouring Armed Forces Day and Reserves Day – Gold Sponsor of Salisbury national Armed Forces Day event - Supporting Service Veterans seeking employment and joining the Company - Encouraging employees’ engagement through an informal Armed Forces Network open to all - Promoting awareness of the Covenant to our suppliers - Contributing to thought-leadership through Whither Warfare events Presented with MoD Employer Recognition Scheme Gold Award in August 2017
18 02/10/2019 GENERAL DYNAMICS UK WORKING WITH SMEs
MoD’s SME Action Plan – MoD published its SME Action Plan on GOV.UK on 29 March – This sets out MoD’s commitment to supporting smaller businesses across the defence supply chain – New set of ambitious targets – MoD to achieve its 2022 target of spending 25 per cent of its direct and indirect procurement budget on SMEs – This is not a challenge for MoD alone, and MoD is relying on the SME champions from its 19 Strategic Suppliers to shape the agenda, develop our own supporting plans and drive improvements.
19 02/10/2019 GENERAL DYNAMICS UK SME CHAMPIONS
Mission Systems
Richard Thomas Head of Supply Chain SME Champion
Land Systems
Alex Nash Supplier Relationship Manager SME Champion
20 02/10/2019 GENERAL DYNAMICS UK SUBSCRIBE TO JOSCAR
Issue – Suppliers and SMEs in particular are facing huge increases in the amount, inconsistency and duplication of information requested from them Benefits – The Joint Supply Chain Accreditation Register (JOSCAR) was launched in 2014 – Provides a central repository of supplier data that is accessed by buying organisations – Suppliers provide a single profile of validated data that is shared, increasing efficiency and reducing resource effort and costs, especially for SMES – General Dynamics UK is the ninth purchaser using JOSCAR as a tool to support third party risk management
21 02/10/2019 GENERAL DYNAMICS UK APPROVED SIGNATORY TO PROMPT PAYMENT CODE 1) Pay Suppliers On Time – within the terms agreed at the outset of the contract – without attempting to change payment terms retrospectively – without changing practice on length of payment for smaller companies on unreasonable grounds 2) Give Clear Guidance to Suppliers – providing suppliers with clear and easily accessible guidance on payment procedures – ensuring there is a system for dealing with complaints and disputes which is communicated to suppliers – advising them promptly if there is any reason why an invoice will not be paid to the agreed terms 3) Encourage Good Practice – by requesting that lead suppliers encourage adoption of the code throughout their own supply chains
22 02/10/2019 EDGE UK INNOVATION SOURCING NETWORK™
Innovative - Visualisation and simulation facility - Collaborative partnerships with academia and industry
Good for UK industry - Promotes and accesses innovation in the supply network - Brings new SME capabilities to market
Customer benefits - Enables customers to deliver best-of-breed technology and innovations rapidly to the user - Helps to ensure that solutions match precisely the customer’s needs - Increases visibility of new and relevant technology - Solution de-risking via realistic demonstrations
23 02/10/2019 ISN TOOLBOX – flexible communication methods to fit all needs
Tech Scout Virtual Tech Ten Talks VTTTs
Our TechScout process will Virtual Tech Ten Talks (VTTTs) - communicates our needs and emerging suppliers record a 10 technical opportunities with min capability presentation. your organisation. TechScout VTTTS are the conversation will be critical to our supply multiplier of your capabilities chain process to source potential across General Dynamics Mission outside solutions. We need your Systems. innovative approaches to build ‘Your talking brochure’ partnerships that solve our customers' greatest challenges
24 02/10/2019 OUR FUTURE BUSINESS / TECHNOLOGY REQUIREMENTS
MISSION SYSTEMS • Artificial intelligence and machine learning in order to increase decision making tempo • Defensive and offensive cyber operations for Tactical Communications and Information Systems (TacCIS) • Resilient communications to enable manned unmanned teaming
LAND SYSTEMS • Next generation Armoured Fighting Vehicle – first fully digital, ‘open’ electronic architecture • We want to hear innovative ideas for new capabilities that takes advantage of this open architecture, eg: • Better ways of processing or displaying sensor information that minimise cognitive burden • Additional sub-systems that improve platform survivability or mobility
25 02/10/2019 INNOVATION SOURCING NETWORK™ Mission Systems
Charlotte Vitalini Supply Chain Manager EDGE UK Ambassador [email protected]
Mission Systems
Andy Lillie Strategic Technology Director
Land Systems
Steve Bingley AJAX Future Business [email protected]
26 02/10/2019 ENGAGING WITH GENERAL DYNAMICS UK
General Dynamics UK
General Dynamics UK
@defenceproc @gduknews
@gdukrecruitment Virtual Tech Ten Talks @gduknews Tech Scout
27 02/10/2019 Team Leidos (LCST)
DSEI September 2019
Jaynie Davies LSL & CSS Director Team Leidos (LCST)
Proud to have been awarded the MOD’s Logistic Commodities and Services (Transformation) contract
©2017 LEIDOS. ALL RIGHTS RESERVED. Key Inherited Statistics
Annual Spend Over 600 £280m Suppliers
182 Commodity c. 45,000 NSN’s Supply ‘On Contract’ Contracts
c.110 TUPE c. 28,000 NSN’s Employees v’s ‘Off Contract’ 210 Posts
©2017 LEIDOS. ALL RIGHTS RESERVED. Team Leidos - LCST
Prime Contractor
Support chain integration Information Systems / Business Intelligence Customer Relationship Mgmt
Storage, Distribution & Freight Commodity Support Services
Inventory management of: Procurement - All commodity Storage, Distribution and Defence clothing. Food. Oils vendor agreements Freight worldwide Lubes and gases. Medical Contract management supplies. General commodities Supplier Relationship Mgmt
31 ©2017 LEIDOS. ALL RIGHTS RESERVED. CSS & SD&F within LCST
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32 ©2017 LEIDOS. ALL RIGHTS RESERVED. Supplier Management & Development
Leidos Supply Limited (LSL) manages tender processes from advertisement through to contract award LSL provide supplier information through its esourcing website Tender processes governed by the Public Contract Regulations (PCR2015) − Focus on compliance and treaty obligations – equal treatment; non-discrimination; transparency; proportionality; mutual recognition − LSL is contractually obliged to comply with the Regulations − Tender opportunities advertised on Defence Contracts Online (DCO) Tenders Electronic Daily (TED) and Contracts Finder (CF) − Specific used media for niche markets; The Grocer − All tender responses are facilitated by an eProcurement tool which will be moving to Jaggaer in late 2019. https://www.leidos-supply.uk/esourcing
33 ©2017 LEIDOS. ALL RIGHTS RESERVED. Supplier Engagement & Development
Supplier Day Events to attract all suppliers – UK/EU/RoW Engage the market to ensure understanding of re-let plan Review procurement strategy, where appropriate ‘lot’ effectively to attract SME’s Migrate ‘off-contract’ procurement to ‘on-contract’ regardless of value/volume Develop the most cost effective procurement model; volume/production Continuously engage through constructive debriefs No. of suppliers Develop clear technical requirement specifications Educate suppliers in eProcurement processes Through life contract management & support 431, 52% 396, 48% Effective procurement modesl. SME
Non - SME
34 ©2017 LEIDOS. ALL RIGHTS RESERVED. LCST Commodities Re-let
35 ©2017 LEIDOS. ALL RIGHTS RESERVED. Team Leidos @ DSEI
Team Leidos - delivering the UK MOD’s Logistics, Commodities and Services Transformation (LCST) programme applying an integrated solution, transforming the defence supply chain including:
• Procurement, Inventory, Commodity, Category, Storage and Distribution of MOD materiel
Stand S4 154 • Managing Food, Clothing, Packed Fuels, Batteries, Medical and General Supplies.
‘ Transforming our Supply Chain – Sustainably ’
36 ©2017 LEIDOS. ALL RIGHTS RESERVED. Richard Lock - Supplier Management & Procurement
Questions
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