1. SAFe Procurement
Ian Hastings
2nd Oct 2017

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

3. 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)

4. 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

5. 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

6. 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

7. 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

8. Questions