SAFe Procurement Ian Hastings 2nd Oct 2017

Introduction “ A long term relationship between purchaser and supplier is necessary for best economy” - W. Edward Deming (Deming Institute)

What is a Supplier? A supplier delivers components, subsystems and services that help Solution Trains provide Solutions to their customers Suppliers have competencies, skills and solutions, they are experts in their technology Suppliers participate in most Solution Trains, often treated like an Agile Release Train (ART)

How is SAFe different? SAFe treats suppliers as long term partners SAFe moves the focus away from price towards a focus on value Seeks a more transparent and collaborative commercial relationship SKA computing is going Lean Agile and we want to work with suppliers who share this mindset

Expectations….. Future Suppliers are expected to: Work collaboratively Participate in Program Increment (PI) and post PI Planning Participate in Inspect and Adapt (I&A) in order to constantly improve the value chain Act strategically not transitionally Be able to work in a “trust and verify” environment

Contracting structure What does this all mean in practice? 3 Agile Release Trains (ARTs) = 3 work packages, each administered collaboratively Each ART will have integrated staff from SKA, including a financial coordinator Project cadence will be common across hardware and software An ART can be lead by a commercial supplier or a Member nation (in kind) Each ART will be able to bring in resource from multiple sources (commercial entities, institutions, individual contractors etc.) Insofar as there is progress and budget an ART will be able to issue release purchase orders against agreed framework agreements

Commercial Arrangements ART lead organisations Competitive In Kind agreement or commercial contract “In it for the long haul” Named individuals Possibly target cost incentive fee or cost plus (might require open-book) Shared risk and reward Contract type that builds trust between parties Other Resource Negotiated non-exclusive commercial frameworks Release purchase orders Three monthly blocks of work, no guarantees Very low level risk to supplier

Questions