TF34_Small_Business_Industry_Day_Brief.pdf

DEFENSE LOGISTICS AGENCY

AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY

WARFIGHTER FIRST

Defense Logistics Agency - Aviation

TF34 Holistic Support Small Business Industry Day

09 April 2018

WARFIGHTER FIRST

Agenda

• Opening Remarks & Introductions

• Background, Support Strategy & Goals

• GE Small Business Partnering Presentation

• Question & Answer – DLA & GE

WARFIGHTER FIRST 3

TF34 Engine Support for A-10 Aircraft

• Platform: TF34 Engine

• Background: General Electric TF-34 powers the USAF A-10 Warthog and has depot maintenance conducted at Fleet Readiness Center South East (FRC-SE)

• Problem: Consumable parts challenges impacting whole engine repair at FRC-SE and field support at various USAF sites.

• Solution: Outcome based supply chain management and logistics support

• Performance Baseline: GE SS/TF34 Unique/MS>75%/FAT =1,763 NSNs

• Target Outcome: Improve material availability over baseline, decrease engine repair delays due to outstanding consumable requirements, reduce DLA inventory investment, link profitability to performance

TF34 Desired Objectives & Outcomes

• Improve TF34 weapon system support

• Leverage GE TF34 knowledge & engineering expertise

- FSRs – boots on ground – to improve communication and coordination between repair scheduling and consumable parts ordering

- Resolve obsolescence & diminishing manufacturing source issues

• Leverage GE infrastructure and forecasting expertise

• Leverage GE supply chain

- Avoid divided supply chain

• Maintain Significant Small Business Participation

WARFIGHTER FIRST 5

Bundling

WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE

Bundling combines two or more requirements for supplies or services, previously provided or performed under separate smaller contracts… into a solicitation for a single contract …that is likely to be unsuitable for award to a small business concern due to--(i) The diversity, size, or specialized nature of the elements of the performance specified.

FAR 2.101

Bundling Requirements for the Contracting Officer:

Conduct market research to determine whether bundling is necessary and justified and consult the SBA PCR.

Prepare a specific determination that the anticipated benefits justify the proposed bundled contract.

Notify any affected incumbent small business concerns of the intention to bundle the requirement and how the concerns may contact the SBA PCR. Small businesses with contract awards in the last three years were notified by the Contracting Officer about this effort.

Specify actions designed to maximize small business participation as subcontractors

Bundling

• Savings Requirements (FAR 7.107-3)

– 5% or $9.4M (whichever is greater) savings for acquisitions over $94M

– 10% savings for acquisitions under $94M

• Anticipated Government savings

– Inventory investment

– Inventory holding cost

– Set-Up cost

– Workload avoidance

Small Business Preservation

• Sources Sought

• Explored potential SB product support integrators

• No capable SB sources identified

• GE comprehensive subcontracting plan

• Contract specific SB participation goals with disincentives

• Supplier Diversity Manager/SBLO for GE

- How to become a GE qualified supplier

Contact Info

Position Name Email

Contracting Officer Mr. Scott Szczesniak Scott.Szczesniak@dla.mil

Program Manager Ms. Amanda Parker Amanda.Parker@dla.mil

DSCR Small Business Office Mr. John Henley John.Henley@dla.mil

Ms. Crystal Ober Crystal.Ober@dla.mil

Small Business Administration

Mr. Michael Massello Michael.1.Massello@dla.mil

GE Small Business POC Bethani Clever Aviation.suppliercommunicati ons@ge.com mailto:Scott.Szczesniak@dla.mil mailto:Amanda.Parker@dla.mil mailto:John.Henley@dla.mil mailto:Crystal.Ober@dla.mil mailto:Michael.1.Massello@dla.mil mailto:Aviation.suppliercommunications@ge.com

9 / E /

GE Aviation Doing Business with GE

GE Proprietary Information – Subject to disclosure on cover page

GE Proprietary Information

The information contained in this document is GE proprietary information and is disclosed in confidence. It is the property of GE and shall not be used, disclosed to others or reproduced without the express written consent of GE, including, but without limitation, it is not to be used in the creation, manufacture, development, or derivation of any repairs, modifications, spare parts, designs, or configuration changes or to obtain FAA or any other government or regulatory approval to do so. If consent is given for reproduction in whole or in part, this notice and the notice set forth on each page of this document shall appear in any such reproduction in whole or in part. This information is NOT considered subject to US ExportRegulations.

• GE Aviation Overview

• Aviation Sourcing

• Supplier Development Process

• Quality

GE Proprietary Information – Subject to disclosure on cover page

Agenda

Technical innovation … at our core

U.S. jet engine U.S. turboprop engine

High bypass engine

Composite fan blade in airline service

120,000+ lb thrust engine

Modular power tile

FMS-controlled Unmanned Aircraft System

GE Proprietary Information – Subject to disclosure on cover page.

A leading provider of jet engines, systems and services

GE Aviation portfolio 2016 … $26B

Avionics and Digital Systems $0.8 Avionics and Digital Systems $0.8

Power Transmissions Turbo machinery

Avionics Digital Services

BGA and Integrated Systems $1.5 BGA and Integrated Systems $1.5

Military engines and services $3.5–1)

Military engines and services $3.5–1)

Commercial engin services $11.4–1)

$0.9-2)

General aviation engines Power, mechanical, electronics

Commercial engines $8.0–1)

Commercial engines Commercial enginee $8.0–1) services $11.4–1)

-1) Includes CFM and EA revenue, 50-50 JV -2) 2015 external revenue

GE Aviation $26B … 21% of the GE Company

Commercial Engines

31%

Commercial Services

43%

BGA / IS /

Other

7% Avionics

3%

GE Proprietary Information – Subject to disclosure on cover page.

Avio Aero 3%

Military Engines

& Services 13%

50%

75%

Our global military position

4,310

1,245

Proven power for U.S. DoD … Total platforms

Rotorcraft

Marine

Source: Flight Global, GE Analysis

24,200

15,100

13,700 2,200

(a- includes combat trainers

CFM is a 50-50 JV between GE and Snecma RR includes JVs Turbo-Union (~730), Eurojet (~810), and Europrop

(~70) Includes only Western-built, OEM engine manufacturers with an installed base of over 5,000 engines Excludes 2,400 engines produced by other manufacturers

5,700

7,600

Conventional powered surface combatants

Tanker/Transport/Special Mission Turbofan powered

5,347

Combat –a)

67%

2015 installed fleet Engines

Bombers

51%

85%

GE Proprietary Information – Subject to disclosure on cover page. 17 /

GE /

GE powering the world’s military fleets

One-third of global military aircraft are powered by GE … largest single engine provider

3 of every 4 helicopters in the U.S. Department of Defense

8 of every 10 surface combat vessels in the U.S. Navy’s fleet

80% of tankers in the U.S. fleet are powered by GE & CFM

Half of the bombers in the U.S. Air Force

2 out of every 3 fighters in the U.S. Department of Defense

Engine fleet:26,000 *Includes joint venture engines built by CFM

CFM International is a 50/50 JV between GE and Snecma

Combat segment breadth

9,500+ combat engines in service

J85F404/F414

3,300

1,700

TF34 F101

2,800

Today

• F404/414 production 2020+

• F110 strong int’l pipeline

Future (2020+) Next generation propulsion

Int’l military

72%

39% 38%

F110 32%

J79

US DoD

% US DoD

AETP

(Adaptive Engine Transition Program)

• $1B contract award to GE

• USAF/DoD $2B funding plan ‘16-’20

Upgrades F101 upgrade … 2X time on wing

• Began retrofit in 2016 F414 enhanced engine … 1,600+ kit opportunity

F118

Fuel burn

Life Thrust3%

2X 20% F414 baseline

OR

Fuel burn

Rang e

Thrust

5thgen baseline Heat sink

GE Proprietary Information – Subject to disclosure on cover page.

25%

30+% 20% Unrestricted

Leader in rotorcraft propulsion

T700/CT7

T408-GE-400 CH-53K

Apache

T58

• Oct ‘15 1st flight, over 5,000 engine test hours

• 600 engine program of record

Upgrades T700 upgrade

• U.S. Navy and Int’l … 1,500+ kit opportunity

• 10% power … single engine

70%

66% T64

Int’lmilitary

US DoD

% US DoD

(a-excludes RR license built T64 Gnome

Power to weight25% 35%

Acquisition & Maint Cost T700 Fuel 65% baseline

T901 3Kshp

FATE (Future Affordable Turbine Engine)

• NextGen heavy lift

• 80% power

• 35% fuel 5-10kshp

Today 11,800+ engines currently in service today

11,000

Future (2020+)

ITEP (Improved Turbine Engine Program)

• For Black Hawk and Apache

• 6,000 unit opportunity

New product

MH-60S

Tanker/Transport/Special Mission

CFM56/F108

TF39

KC-135R

CFM56-7B … 250+ engines

KC-135R/E-6B

US Navy - 234 engines

Indian Navy - 24 engines

• Australia, Italy … Opportunity

Int’lmilitary

US DoD

84%

78%

CF6/F103

CFM is a 50/50 JV between GE and Snecma

% US DoD

Today 3,100+ engines in service

2,200

Upgrades CFM56-2 time on wing improvement

P-8A

Thrust

Take-off distance 22%

8-20% 30%

TF39 Fuel burn baseline

• 1.5% more fuel savings

• $2B lower cost of ownership

F138 (CF6-80C2) retrofit C-5M … 52 aircraft

Marine fleet growth

~1,300engines in service

LM2500

1,200

LM500

• Serving 34 Navies

• Expanding opportunities in commercial shipbuilding

Littoral combat ship (LCS)

LM2500/LM6000

US DoD application

Int’l military application

Future Marine LM6000

~60%

% US DoD

• For naval applications

Marine GE38

• For patrol boat and generator set applications

Today

GE Proprietary Information – Subject to disclosure on cover page.

Upgrades LM2500 Integrated Electronic Control (IEC)

• Improved reliability

• Increased efficiency

Repair & overhaul

• Engines, modules and components

• Augment depot capacity and capability

Field service & Tech Support

• Timely and proactive solutions to technical queries

• Direct link to GE engineering

Logistics Support

• Optimal material availability

Intermediate & Flight Line Maintenance

• Onsite troubleshooting, tech support and maintenanceteams

Training

• Engine operation

• Troubleshooting

• Maintenance

• Logistical support

Fleet Management

• Maintenance planning and configuration tracking to balance performance and reliability

• Trend monitoring and diagnostics to enhance safety and optimize time on wing

• Latest configurations

• OEM support

• GE quality

Digital Solutions

• Powerful statistics and physics-based modeling

• Powered by Predix - GE’s industrial internet platform

Expanding Military Services … full life cycle support GE genuine parts

Aviation Sourcing Overview

22 /

Supply Chain Division Engines + Systems

It takes 18 million parts to build engines for our customers each year.

It takes 147.5 million parts to build the system products for our customers each year.

23 /

PartnersEngines&Systems 35 engine component /repair shops 14 engine assembly, test & overhaul sites 25 systems manufacturing & service sites 4 joint ventures

Suppliers 11,000 domestic 2,500global

Supply Chain Division Engines + Systems + Services

GE Proprietary Information – Subject to disclosure on cover page

• 83 facilities

• 19 countries

• 27,000 employees

• 6 joint ventures

• 4 full partners

Aviation Sourcing nd services

General

GEProprietary Information For Internal Use Only

GEAviation A global provider of engines, systems a

Segments

• Commercial

• Military

• Business&

Aviation

GEAviation 2/ 19/2011

GEAviation 2/ 19/2011 nd services

Segments

• Commercial

• Military

General

GEProprietary Information For Internal Use Only

• Business & Aviation

GEAviation A global provider of engines, systems a

Doing Business with GE Supplier Diversity / Small Business Program:

GE Aviation Small Business Policy statement: Buyers must give maximum practicable consideration to small, women-owned small, small disadvantaged, veteran-owned small, service-disabled veteran-owned small, and HUBZone small business concerns, and are obligated to solicit and use their best efforts to place purchase orders with such concerns except where competitive conditions, timely delivery, and efficient performance of the contract do not permit it. (522.05) Janice Lin, GM Sourcing

Minimum Quality Requirements: Please note that the minimum quality requirement for Engines and Systems flight hardware is AS9100 certification. NADCAP certification is required for special processes. GE does not do open bidding.

Quality and financial stability assessments will be completed before becoming a supplier. Terms will be C64 http://www.geaviation.com/company/doing-business-with-aviation/.

Business Class Definition: GE Aviation uses the Federal Government’s definitions for Small, Disadvantaged, Woman, Veteran, Service Disabled Veteran, and HUBZone, as stated in Far Part 19. The primary NAICS codes for Engines, Engine Services, Avionics and Power, and Systems Hardware and Research are NAICS 336412, 336413, and 54172. A small business must have less than 1,500 employees.

Indirect: Indirect Goods and Services are purchased through GE Global Operations. This includes all material and services that do not go into making flight hardware (engineering, apparel, office supplies, cleaning, training, and transportation).

If you are interested in working with GE Aviation: Please complete the survey located at https://supportcentral.ge.com/esurvey/GE_survey/takeSurvey.html?form_id=18446744073709687157. The sourcing organization will review the submissions.

General Inquiries can be sent to aviation.suppliercommunications@ge.com

GE Proprietary Information – Subject to disclosure on cover page http://www.geaviation.com/company/doing-business-with-aviation/ mailto:aviation.suppliercommunications@ge.com

Machining & Fabrications -Small, Med, Large -Structural and rotating parts -High Temperature alloys -Hot Forming -Simple to Complex -Milling, Turning, Lathing Composites -Bonded structures

-RTM, VARTM

-Woven fabrics/resins -New technologies -Nacelles

Commodity Types - Direct

Raw Materials

- Sheet, bar, coil, wire

- Powders, pastes

- Forgings/Castings

- Precious metals

- Distributors

Direct Materials

Controls and Installations

- Tubes, hoses

- Accessories

- Gearboxes

- Fuel nozzles

- Services, repair

Electronics and Actuations

- Small assemblies

- Circuit card assemblies

- Displays

- Avionics

Special Processes

- Coatings

- Special machining

- Peening, marking - Inspection

Hardware

- Rivets, shims, standards

- Bearings, screws, fasteners

Tooling

- Special Tooling

GE Proprietary Information – Subject to disclosure n cover page

Supplier Development Process

Search Screen Inquire Supplier Setup

Supplier Development Process

The Road to a Partnership Begins Here

• Objectives:

• Strategic Fit

• Value

• Long Term Relationship

• Growth Potential

• Mutual Investment

• The Road to a Partnership Begins Here

RFQ/Purchase Order

Screen Inquire RFQ/Purchase Order

Why?

• Strategic importance

• Capability/Technology

• Capacity

• Small Business Initiatives

• Value

Initial Identification methods:

• Other GE recommendations

• Supplier Survey •Supplier Recommendations

• State Office/Econ Development

• Business Fairs & Advertising

First Look: Capability, Compliance, Reputation

Search Looking for Sources

Supplier Development Process Supplier

29 /

Potential Source

Information Gathering

• Market Reputation

• Website Reviews

• Complexity of Hardware

• Factory Locations and Services Provided

• Capability / Equipment / Processes

• Current Customers

• Financials

• Quality Review: ISO/AS9100/NADCAP

Inquire RFQ/ Purchase Order

Supplier Development Process

ScreenSearch Supplier

Supplier SetupInquire

Potential Source

RFQ/Purchase Order

Supplier Development Process

Search Screen

Supplier of Choice

GE Proprietary Information – Subject to disclosure on cover page.

Quality

Quote Analysis & Agreement

• Responsive

• Competitive

• Technical understanding

• Specifications can be met

• Aerospace Qualification

• Value Analysis

• Terms and Conditions

Request for Quote (RFQ)

• Denied Party Screen

• Proprietary Information

Agreement (PIA)

• RFQ package/ Study Quote

- Scope of Services or Product Needed

Capacity

Manufacturing Capability Delivery

Performance

Price

Active Source

Supplier Setup •Financial Stability Review •Denied Party Review •Terms and Conditions are C64

• Supplier Code issued

• GE System Access granted

• Quality Audit (beyond AS9100)

•Production hardware •Special Processes (NADCAP Required)

Inquire

Supplier Development Process

Search Screen Supplier Setup

RFQ/ Purchase Order

Denied Party

GE Proprietary Information – Subject to disclosure on cover page.

Financial Stability

Quality Audit S1000

Special Process

Audit

Active Source

Contract Award

• New RFQ/ quotes

• Negotiation

• Price Analysis

• Purchase Order Award

• Begin NPI Cycle

Inquire

Supplier Development Process

Search Screen Supplier Setup

RFQ /

Purchase Order

Offer Capability or Service that matches GE’s strategic needs.

Have a reputation of Integrity and Compliance.

Meet stringent Quality requirements both in processes and products.

Consistently Deliver On-time to support GE’s customers.

Be Responsive and Communicative at all levels.

Be globally Cost Competitive and offer the best overall Value.

Summary

Quality Expectations

Supplier Qualification

……be certified to both

S1000AS9100

What is AS9100?

AS9100 is a globally harmonized aerospace standard for quality assurance in design, development, production, installation, and service based on the ISO 9001:2000 quality management system.

What is S1000?

S1000 is a GE Document that establishes minimum quality system requirements for suppliers.

ADDITIONALLY

Identified Special Processes have additional quality system requirements

Maintaining approved source status requires successful audits on scheduled frequency. New suppliers are audited 2 times in the first year.

DSQR signoff IS required. Unitek is our approved 3rd party DSQR Service

GE Proprietary Information

Supplier Portal

•Source substantiation and first article data input

•Yellow Pages – where to go for approved processes and materials

•Mechanism for exchanging proprietary data

GE Proprietary Information

Supplier Relationships GE’s relationships with suppliers are based on lawful, efficient and fair practices. We expect our suppliers to obey the laws that require them to treat workers fairly, provide a safe and healthy work environment and protect environmental quality. Following GE guidelines helps ensure that our supplier relationships will not damage

GE’s reputation. Regulatory Excellence Today’s regulatory environment is becoming more and more challenging. GE is subject to a growing number of regulations and enforcement activities around the world.

This environment demands that every employee and leader be aware, knowledgeable and committed to regulatory excellence.

The Spirit & The Letter Integrity…the right thing to do

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Everyone of us … everyday