1. National 8(a) Fall Summit Changing Landscape in Government Subcontracting Presented by: Susan King October 30, 2013 © BAE Systems 2013 Cleared for Public Release 09/16/20132013 TRIAD Success Spotlight.ppt BAE Systems, Electronic Systems

2. BAE Systems Overview BAE Systems, is a global defense, aerospace and security company with approximately 93,500 employees worldwide. The company delivers a full range of products and services for air, land and naval forces, as well as advanced electronics, security, information technology solutions and support services. Electronic Systems Sector provides electronic warfare systems and electro-optical sensors, military and commercial digital engine and flight controls, next-generation military communications systems and data links, persistent surveillance capabilities, and hybrid electronic drive systems. © BAE Systems 2013 Cleared for Public Release 09/16/20132013 TRIAD Success Spotlight.ppt

3. BAE Systems - Supplier Diversity BAE Systems recognizes the role small businesses play in the development of innovative products / services, creation of new jobs, contributions to the United States economy. We will continue to fully support and commit to small business programs and efforts. BAE Systems has instituted procurement policies/practices to further its commitment to small business utilization resulting in strong performance. Small Business spend 2012 was more than $500M within the Electronic Systems Sector alone. 3 3 © BAE Systems 2013 Cleared for Public Release 09/16/2013

4. Typical Prime Contractor Challenges © BAE Systems 2013 Cleared for Public Release 09/16/2013 2013 TRIAD Success Spotlight.ppt Security – Classified information Understanding FAR / DFARS compliance ITAR- Export Control / US Citizens DMS- Diminishing material / Obsolescence Communications- Public Releases Gifts/Gratuities/Business Courtesies Counterfeit Parts Prevention Specialty Metals DFARS 252.225-7014 Preference for Domestic Specialty MetalsDFARS 252.225-7014 Matching Technology to requirements

5. Changing Landscape for Defense Markets Competitive Environment -Low Cost and Technical Acceptable vs. Best Value -Competition with other Countries vs. other Companies “Award Stagnation” - Longer Award Cycle Times Reduced Quantities and Extended Delivery Schedules Program and Quantity Aggregation, Fewer Programs International Growth focus that include mandated Offsets 130611 SB-National 8a 6

6. Rough Waters Ahead Government Spending / Budget Uncertainties Shifting Priorities More Industry Protests Large Companies bidding on Smaller Projects International Growth Mandated Offsets 7

7. ES-powerpoint-template-2013 7 What we are NOT going to do…………

8. Better Buying Power (BBP) 2.0 8

9. Affordability is the New Normal “When I talk about affordability, I’m really not talking about cost- control, per se…I’m talking about not starting programs that we can’t afford” © BAE Systems 2013 Cleared for Public Release 09/16/2013

10. Information and POC’s Visit our BAE Systems website……http://www.baesystems.com/supplierdiversityhttp://www.baesystems.com/supplierdiversity Sector Descriptions- Intelligence & Security Land & Armaments Support Solutions Electronic Systems  Supplier Diversity Calendar of Events  Small Business Liaison Officer Listing  Supplier Registration  Additional Resources 10130611 SB-National 8a Summer Conference- Anchorage

11. ELECTRONIC SYSTEMS - SUPPLIER DIVERSITY www.baesystems.com/supplierdiversity

12. Thank you! © BAE Systems 2013 Cleared for Public Release 09/16/20132013 TRIAD Success Spotlight.ppt QUESTIONS?