Master Subcontracting PlanRR20F0283.pdf

Comoanv

Rolls-Rovce Coro.

Rolls-Royce Defense Products and Solutions, Inc.

Rolls-Royce Defense Services, Inc.

Rolls-Royce North American Technologies, Inc.

Rolls-Royce Controls and Data Services, Inc.

Rolls-Royce Marine North America

Master Subcontracting Plan Submitted on behalf of:

Address 450 S. Meridian Street, MC-N3-03, Indianapolis, IN 46225

450 S. Meridian Street, Indianaoolis, IN 46225

450 s. Meridian Street Indianaoolis IN 46225

PO Box 7162 (x12), Indlanaoolis, IN 46207

8303 McHard Rd, Suite 200, Houston, TX 77053

110 Norfolk Street Waloole. MA 02081

January 1, 2019 - December 31, 2021 cMillan, CDE Jeannine.McMi n@Rolls-Royce.com

Small Business Liaison Officer Rolls-Royce North America

Indianapolis, IN

Plan approved by:

Digitally signed by

STE ELMAN .PH I LI p .M STEELMAN.PHIUP.MILTON.12303

ILTON.1230331681 t~«;!\019.01.2912:29:37-os·oo·

Philip Steelman

Cage Code

63005

3VDZ5

3EY64

020N0

7AWE3

07309

Corporate Administrative Contracting Officer Defense Contract Management Agency

DUNS#

804754141

146882936

121382936

968684944

829860753

001006311

Table of Contents

0.0 Introduction

1.0 Percentage goals

2.0 Subcontracting dollars

3.0 Supplies and services to be subcontracted

4.0 Method used to develop subcontracting goals

5.0 Method used to identify potential sources

6.0 Statement regarding the use of indirect costs

7.0 Duties performed by the Small Business Liaison Officer

8.0 Assurance of equitable opportunities for small businesses

9.0 FAR Flow down

10.0 Assurances

11. O Records

Introduction

This Master Subcontracting Plan is submitted in accordance with the provisions of Public Law 95-507, The Small Business Act, and FAR clause 52.219-9, Small Business Subcontracting Plan. Rolls-Royce Defense has an evolving subcontracting program that assures that Small Business Concerns Including Alaskan Native Corporations (ANC) and Indian tribes, Small Disadvantaged Business Concerns (SDB), HUBZone Small Business concerns (HUBZone SB), Women-Owned Small Business Concerns (WOSB), Veteran-Owned Small Business Concerns (VOSB), Service-Disabled Veteran-Owned Small Business Concerns (SDVOSB), and Historically Black Colleges & Universities/Minority Institutions (HBCU/MI) are thoroughly Investigated and fairly considered before subcontracts are awarded.

Rolls-Royce actively pursues technology partnerships with the small business community through Small Business Innovative Research and Small Business Technology Transfer (SBIR/STTR) programs. Sponsoring Government agencies include the Department of Defense (Air Force, Navy, and Army), DARPA, Missile Defense Agency (MDA), Defense Logistics Agency (DLA), NASA, the Federal Aviation Administration (FAA), National Science Foundations (NSF), and the Department of Energy (DoE). Rolls-Royce considers these small business collaborations as extensions of our Internal research and technology (R&T) efforts. These collaborations also help introduce new technology solutions not currently being pursued by Rolls-Royce. Ultimately, we seek to foster the development of promising SBIR/STTR technologies by aligning with product opportunities and, where appropriate, provide access to technical experts and resources to accelerate advancement. In recent years Rolls-Royce has transitioned a number of SBIR/STTR technologies through becoming a new supplier and licensing to our current suppliers.

Our Defense Purchasing team has collaborated with Human Resources to create a joined up strategy for diversity In general that Includes both the workforce and supply chain. While this cultural change will continue to evolve our Purchasing organization has created a Diversity & Inclusion team to ensure that we embed the proper behaviors In both our leadership and individual contributors. Additionally, Rolls-Royce has created a Diversity Council to ensure that the responsibility for supply chain diversity is accepted throughout the organization and not just within Purchasing.

1.0 Peccentaae aoahi

The goals for SB, SOB, WOSB, HUBZone SB, VOSB, SDVOSB, and HBCU/MI for each Individual subcontracting plan will be based on the total subcontracting dollars for a particular proposal. Goals will be further calculated based on the availability of qualified resources for the forecasted purchases .

2.0 Subcontracting dollars

Total dollars planned to be subcontracted to SB, SDB, WOSB, HUBZone SB, VOSB, SDVOSB, and HBCU/MI will be calculated for each Individual subcontracting plan .

Subcontracting dollars will be based on the estimated value of the goods or services to be outsourced.

3.0 Supplies and services to be subcontracted

The Individual subcontracting plans will include a description of the anticipated supplies or services to be outsourced. Additionally, the plan will detail the supplies and services planned for subcontracting to SB, SDB, WOSB, HUBZone SB, VOSB, SDVOSB, and HBCU/MI.

4.0 Method used to develop subcontracting goals

The method used to create subcontracting goals for an Individual subcontracting plan is based on the type of item to be procured. Due to the complex nature of our products, long lead-times, and an extensive qualification process, subcontracting goals for spare parts or production engines are based on the bills-of-material for the existing supply chain. The classification of the supplier associated with a component, usage, and cost determine the percentage goal used for a particular spare part or engine.

Subcontracting goals for research or New Product Initiatives are based on a forecasted value placed on the commodity to be purchased along with the size classification of the proposed supplier. Once the goals have been created for an individual subcontracting plan the Program Manger responsible for the delivery of a specific contract will countersign the plan to ensure the goals are properly understood.

s.o Method used to identify potential sources

Successfully Integrating SB, SDB, WOSB, HUBZone SB, VOSB, SDVOSB, and HBCU/MI into our overall supply chain begins with understanding whether or not the commodity or service requires a fully Integrated strategy. If a strategy Is required It generally defines the basis for creating and maintaining competitive advantage within the commodity, how technology leadership will be developed and maintained, the basis for intellectual property ownership and what supplier development act1vit1es will be carried out to support the strategy. Alternatively, there are commodities that, because of the availability of resources (capable suppliers, capacity, etc.) or its use across other industries, a commodity strategy Is not necessary. Currently, our supply chain Is made up of Other Than Small Businesses (OTSB) as well as small businesses Including SDB, WOSB, HUBZone SB, VOSB, SDVOSB, and HBCU/MI for both strategic and non strategic commodities.

From a process standpoint, both strategic and non strategic procurement activities require our Purchasing teams to include SB, SOB, WOSB, HUBZone SB, VOSB, SDVOSB, and HBCU/MI where available. This requirement applies both to Government and Commercial purchases. While this requirement exists, It is understood that small businesses may not compete in all commodities/Industries. In the event a small business does not exist for a specific commodity, the Buyer Is required to document these details via our internal forms.

Several resources are utilized to help identify capable small businesses for purchasing initiatives. Specifically, the teams have been trained to use the Dynamic Small Business Search and the Quick Market Search (via http:/ /dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm). Additionally, the teams are utilizing other means to locate small businesses. For example, pertinent industry periodicals, Engineering expertise, customer and supplier recommendations, trade shows, feedback from peer recommendations, and internet searches.

Our supplier selection process includes understanding and evaluating the capabilities of a potential source. The key drivers In our sourcing decisions are value for money as It relates to quality, cost, and delivery. To ensure compliance with Government subcontracting requirements, the teams are also considering the classification of the business (OTSB-vs-small) when selecting a supplier.

6.o Statement regarding the use of indirect costs

The goals for each subcontracting plan do not Include indirect costs.

7.o Duties performed by the small Business Liaison Officer

Jeannine McMillan administers the Rolls-Royce Corporation small business program.

The primary duties of the SBLO include, but are not limited to:

a) Training the organization In the area of SB, SOB, WOSB, HUBZone SB, VOSS, SDVOSB, and HBCU/MI subcontracting.

b) Participate In the establishment of small business subcontracting goals.

c) Prepare the Individual Subcontracting Report (ISR) and Summary

Subcontract Report (SSR) as required by the FAR.

d) Provide Management visibility as to the progress made towards small business subcontracting goal accomplishment.

e) Issue policy and develop/maintain internal operating procedures relative to the implementation of Public Law 95-507, The Small Business Act, and FAR clauses 52.219-8, Utilization of Small Businesses, and 52.219-9, Small Business Subcontracting Plan.

f) Provide guidance to small businesses seeking to do business with Rolls Royce.

g) Provide assistance and counsel to small businesses regarding procurement procedures within Rolls-Royce.

h) Maintenance of the Internal and external facing Rolls-Royce small business web sites and small business database.

i) Assure that the purchasing processes related to subcontracting with small businesses are followed.

j) Participate In, host, and/or create outreach activities that promote small business subcontracting or development.

k) Manage any active Mentor Protege Programs.

I) Participate in Rolls-Royce selected organizations that support the small business community.

m) Work with the teams to help Identify small businesses for new Initiatives.

n) Work with the Quality organization to deploy resources to assess the capabilities of potential small business suppliers.

s.o Assurance of equitable opportunities for small businesses

As a general practice, individuals involved in the solicitation process are aware that extra effort is to be exercised when seeking qualified small businesses. The extra effort includes:

a) b) c)

d) e)

Engineering assistance (blueprint interpretation, product design, model and die design, etc.

Quality control assistance ( quality system activities, development of quality manuals, inspection processes, etc.

Financial assistance (Immediate payments, purchase and consignment of materials, etc.

Instructions on preparation of proposals.

Any additional assistance consistent with the programs mission.

In addition to the efforts Identified above, our purchasing procedures have been updated to require the utilization of small businesses. While the teams are required to seek capable small businesses our vision remains consistent; To have the best performing supply chain delivering mutual competitive advantage to Rolls-Royce, its customers, and Its suppliers.

9.0 FAR Flowdown

Except for those contracts that will be performed entirely outside of any State, territory or possession of the United States, District of Columbia, or the Commonwealth of Puerto Rico, Rolls-Royce will include FAR 52.219-8, Utilization of Small Business Concerns, In all Government subcontracts that offer further subcontracting opportunities. Additionally, Rolls-Royce requires that OTSBs that receive government subcontracts in excess of $700,000 ($1,500,000 for the construction of a public facility with further subcontracting possibilities) adopt a subcontracting plan consistent with the required elements of the FAR.

10.0 Assurances

Rolls-Royce will:

a) Cooperate In any studies or surveys as may be required.

b) Submit periodic reports so that the Government can determine the extent of compliance with the subcontracting plan. This includes the submission of the ISR and SSR in the Electronic Subcontracting Reporting system (eSRS) at http://www.eSRS.gov.

c) Ensure that our subcontractors with subcontracting plans agree to submit the ISR and SSR or equivalent reports.

d) Make a good faith effort to acquire articles, equipment, supplies, services, or materials, or obtain the performance of construction work from the small business concerns that were used in preparing the bid or proposal, In the same or greater scope, amount, and quality used in preparing and submitting the bid or proposal. Responding to a request for a quote does not constitute use in preparing a bid or proposal.

e) Provide the Contracting Officer with a written explanation If the Contractor fails to acquire articles, equipment, supplies, services or materials or obtain the performance of construction work as described in (d){l2) of this clause.

This written explanation must be submitted to the Contracting Officer within 30 days of contract completion.

f) Not prohibit a subcontractor from discussing with the Contracting Officer any material matter pertaining to payment to or utilization of a subcontractor.

g) Rolls-Royce will pay Its small business subcontractors on time and In accordance with the terms and conditions of the underlying subcontract, and notify the contracting officer when the prime contractor makes either a reduced or an untimely payment to a small business subcontractor (see 52.242-5).

h) Rolls-Royce will provide Its prime contract number, Its unique entity Identifier, and the email address of the Offeror's official responsible for acknowledging receipt of or rejecting the ISRs, to all first-tier subcontractors with subcontracting plans.

i) Rolls-Royce will require that each subcontractor with a subcontracting plan provide the prime contract number, its own unique entity identifier, and the email address of the subcontractor's official responsible for acknowledging receipt of or rejecting the ISRs, to Its subcontractors with subcontracting plans.

11. o Records

Rolls-Royce will maintain records for review that demonstrate compliance with the Subcontracting Plan. These records will Include, but are not limited to:

a) Source lists for SB, SOB, WOSB, HUBZone SB, VOSB, SOVOSB, and HBCU/MI.

b) Organizations contacted for the purpose of Identifying SB, SOB, WOSB, HUBZone SB, VOSB, SDVOSB, and HBCU/MI.

c) Records on each subcontract solicitation resulting in the award of more than

$150,000, Indicating:

I. Whether SB, SDB, WOSB, HUBZone SB, VOSS, SDVOSB, and

HBCU/MI were solicited and If not, why not.

ii. If applicable, the reason an award was not made to a small business concern.

d) Records of any outreach efforts including :

I. Trade associations

ii. Business development organizations Iii. Conferences and trade fairs to located SB, SOB, WOSB, HUBZone SB, VOSS, SDVOSB, and HBCU/MI.

iv. Veteran service organizations.

e) Records of Internal guidance and encouragement provided to buyers through:

I. Workshops, seminars, training, etc.

II. Monitoring performance to evaluate compliance with the program's requirements.

f) On a contract-by-contract basis, records to support award data submitted by

Rolls-Royce to the Government, Including the name, address, and business size of each subcontractor.