J85_Industry_Day_Brief_PPT_14_December_17.pptx

Defense Logistics Agency - Aviation J85 Holistic Support Small Business Industry Day 03 January 2018

DEFENSE LOGISTICS AGENCY

AMERICA’S COMBAT LOGISTICS SUPPORT AGENCY

WARFIGHTER FIRST

Agenda 0900 – 0915 0915 – 0930 0930 – 0945 0945 - 1100 1100 - 1200 1200 – 1315 1315 – 1400

Opening Remarks & Introductions J85 Background, Support Strategy & Goals Break GE Small Business Partnering Presentation Question & Answer – DLA & GE Lunch Continue Question & Answer (if needed)

WARFIGHTER FIRST

USAF J85 Engine Support for T-38 Aircraft Platform: J85 Engine Problem: Engine Production Shortage DLA approached by SES Gil Montoya/AETC for PBL on T-38 Trainer Engine J85 consumable parts challenge during planned maintenance at the AETC Jet Engine Intermediate Maintenance (JEIM) sites - Laughlin/Columbus.

Current contractor, stops work & claims relief when parts aren’t available No holistic forecasting or metrics included in current maintenance contracts

Performance Baseline: Pop - NSNs 7,878, MA 82%, Back Orders – Lines 1,507, Qty 85,592.

Target Population: GE SS/J85 Unique/MS>75%/FAT = 3,699 NSNs, MA – 71.9% Target Outcome: Improve MA at AETC ERRC JEIM sites to >90% and WW MA to >90% (all BOM buckets) via GE part/engineering support leading to advanced forecasting and increased parts availability for all J85 series engines

Specifically: 1) AETC J85 JEIM sites – no line stoppages and enhanced shop productivity

2) Improved Support for all O & I level sites (AETC = 2 JEIM/3 O Level, ACC = 1 JEIM/3 O level, AFMC = 1 JEIM, GBS = 1 O level)

J85 Engine T-38 Talon

J85 Background 535 J85 Engines in operation

AETC = 431 ~ 81%

DLA overall weapon system material availability = 82% DLA developing sole source contract with GE for J85 support Bundled acquisition GE sole source parts / J85 Unique / MS>75% / FAT

WHITEMAN

HOLLOMAN

VANCE

LAUGHLIN

RANDOLPH

COLUMBUS

NASA- HOUSTON

SHEPPARD

EDWARDS

505 in USAF / 535 Total

Current J85 Operations

TYNDALL

BEALE

LANGLEY 14

NAVY TPS

AETC - 431

ACC – 45

AFMC - 15

NAVY - 10

GBS - 14

NASA - 20

AETC J85R/S

FB3020 - Sheppard AFB FB3022 - Columbus AFB

(JEIM)

FB3029 - Vance FB3089 - Randolph FB3099 - Laughlin AFB (JEIM)

ACC J85M

FB4800 - Langley FB4801 - Holloman (JEIM) FB4686 - Beale FB4819 - Tyndall

AFMC J85S

FB2805 – Edwards (JEIM)

GBS J85M

FB4625 – Whiteman

Aero Turbine (MISTR)

DynCorp International

(JEIM)

L3 Comm (JEIM)

Tinker AFB (JEIM & MISTR Admin)

- AETC moved administration of the JEIM (Jet Engine Intermediate Maintenance) contracts to Tinker AFB for performance at Laughlin and Columbus.

- Tinker also administers the MISTR (Management of Items Subject to Repair) for performance at Aero Turbine.

- Navy J85 support goes through the Columbus contract.

- Repair flows from the O level activities within each Chain of Command to the JEIM sites (I-Level) within the same Major Command Chain of Command.

J85 Desired Objectives & Outcomes Improve J85 weapon system support – AETC ERRCs/World Wide

- Customer Direct Availability >90%

- Link profit to performance - incentives/disincentives

Leverage GE J85 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

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

FAR 19.201(a) It is the policy of the Government to provide maximum practicable opportunities in its acquisitions to small business…. Such concerns must also have the maximum practicable opportunity to participate as subcontractors in the contracts

Small Business Preservation WARFIGHTER FIRST - PEOPLE & CULTURE - STRATEGIC ENGAGEMENT - FINANCIAL STEWARDSHIP - PROCESS EXCELLENCE This Industry Day is your opportunity to learn the requirements for subcontracting with GE and to network with Bethani Clever, GE’s Small Business Liaison Officer and the GE team.

FAR 9.601 “Contractor team arrangement,” means an arrangement in which—(2) A potential prime contractor agrees with one or more other companies to have them act as its subcontractors under a specified Government contract or acquisition program.

Small Business Preservation Sources Sought – August 2017 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

Government Participants / Contact Info Contracting Officer Acquisition Specialist Strategic Acquisition Division Chief Program Manager Program Management Support Office of Counsel DSCR Small Business Office

Small Business Administration GE Small Business POC Ms. Mary Smith Ms. Schyla Howe Mr. Randall Dortch Ms. Amanda Parker Mr. Tim Colyer Mr. Michael Chiffolo Mr. John Henley Ms. Crystal Ober Mr. Michael Massello Ms. Bethani Clever Mary.L.Smith@dla.mil

Schyla.Howe@dla.mil

Randall.Dortch@dla.mil

Amanda.Parker@dla.mil

Timothy.Colyer.ctr@dla.mil

Michael.Chiffolo@dla.mil

John.Henley@dla.mil Crystal.Ober@dla.mil

Michael.1.Massello@dla.mil aviation.suppliercommunications@ge.com

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GE /

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 Export Regulations.

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)

-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 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 J85 F404/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 Thrust 3% 2X 20% F414 baseline

OR

Fuel burn Rang e Thrust

5th gen 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’l military US DoD % US DoD (a-excludes RR license built T64 Gnome

Power to weight

baseline

T901 3K shp

FATE (Future Affordable Turbine Engine) NextGen heavy lift 80% power 35% fuel 5-10k shp 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’l military 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%

baseline 1.5% more fuel savings $2B lower cost of ownership F138 (CF6-80C2) retrofit C-5M … 52 aircraft

Marine fleet growth

~1,300 engines 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 maintenance teams 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

26 /

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.

27 /

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

Suppliers 11,000 domestic 2,500 global

Supply Chain Division Engines + Systems + Services

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

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

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 Setup

33 /

GE /

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

Supplier Setup

Inquire Potential Source

RFQ/Purchase Order

Search Screen

Supplier of Choice

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

•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

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

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 S1000

AS9100

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

Supplier Portal

Source substantiation and first article data input Yellow Pages – where to go for approved processes and materials Mechanism for exchanging proprietary data

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

Everyone of us … everyday image5.png image1.png image2.png image6.jpeg image7.png image8.png image9.png image10.png image11.png image3.jpg image12.jpg image20.png image13.png image14.png image15.png image16.png image17.png image18.png image19.png image29.png image21.png image22.png image23.png image24.png image25.png image26.png image27.png image28.png image38.jpg image39.png image40.png image41.png image42.png image43.png image44.png image45.png image46.png image47.png image30.png image48.jpg image49.jpg image50.png image51.png image52.png image53.png image31.jpg image32.jpg image33.png image34.jpg image35.png image36.jpg image37.jpg image62.png image63.png image64.png image54.png image55.png image56.png image57.png image58.png image59.png image60.png image61.png image73.png image74.png image75.png image76.png image77.png image78.png image79.png image80.png image65.png image66.png image67.png image68.png image69.png image70.png image71.png image72.png image81.png image82.png image83.png image92.png image93.png image94.png image95.png image96.png image97.png image98.png image99.png image100.png image101.png image84.png image102.png image103.png image104.png image85.png image86.png image87.png image88.png image89.png image90.png image91.png image113.png image114.png image115.png image116.png image117.png image105.png image106.png image107.png image108.png image109.png image110.png image111.png image112.png image126.png image127.png image128.png image129.png image118.png image119.png image120.png image121.png image122.png image123.png image124.jpg image125.png image130.png image131.png image132.png image133.png image134.png image135.png image136.png image137.png image138.png image139.png image140.png image141.png image142.png image143.jpg image144.png image152.png image153.jpg image154.jpg image155.png image156.jpg image157.jpg image158.jpg image159.png image160.png image161.jpg image162.jpg image163.jpg image164.jpg image165.jpg image166.png image167.png image168.png image169.jpg image145.jpg image146.jpg image147.jpg image148.png image149.png image150.png image151.png image177.png image178.png image179.png image180.png image181.png image182.png image170.png image171.jpg image172.png image173.jpg image174.png image175.png image176.png image183.png image184.png image185.png image186.png image187.png image188.png image189.png image190.png image191.png image192.png image193.png image194.png image195.png image196.png image197.png image198.png image199.png image200.jpg image201.jpg image202.jpg image203.png image204.jpg image205.jpg image4.jpg