2. Agenda
⢠Overview of the opportunity
⢠UK Government Targets
⢠What's Changing
⢠Direct opportunities
⢠Prime Contractors and OEMâs
⢠Is your business prepared
⢠Ways to identify; compete and win
3. Overview of the opportunity
⢠£8.5 Bn UK Defence Exports (FY 2014)
⢠£19.6 Bn UK MOD spend (FY 2014)
â This represents 40% total Government spend to 3rd
Parties
⢠Only ÂŁ832M direct spend with SMEâs
⢠This was spread between 7000 SMEâs
⢠Average spend of £120K
⢠Value of spend indirectly reaching SMEâs
estimated below ÂŁ3Bn.
4. UK Government Targets
⢠25% target for MOD procurement spend to reach SMEâs
by 2020
â Defence Infrastructure Organisation - DIO
â Defence Equipment and Support â DE & S
â Information Systems and Services - ISS
â Defence Science and Technology Laboratory â DSTL (some
restrictions)
⢠NAO report showed current achievement of 19.4%
â However this report questions the measurement criteria
5. UK Government Targets
⢠Achieving the 25% target relates to circa £5Bn
being spent with SMEâs by 2020 if spend is
equal.
6. What's Changing
⢠SME Policy refresh
â Focus on entire Supply Chain ânot just direct
â Reducing Procurement Bureaucracy
â Simplifying Engagement â âMOD Supply Chain
Development Advocate and Championsâ
7. What's Changing
⢠Review the effectiveness of the Defence Suppliers
Forum - SME
⢠Supplier Engagement Portal â through gov.uk website
â Policy and Process
â Links to research establishments and funding streams
â Increase awareness of how to find opportunities
⢠Abolition of PQQs for contracts below £100k
⢠Creation of Common core PQQ â reusable
⢠Simplified template contracts for values below £250k
⢠Increase in âlottingâ strategies and outcome based
specifications
8. Direct Opportunities
⢠Defence Contracts Online - DCO
â Free service
â All MOD opportunities above ÂŁ10k - www.contracts.mod.uk
â Daily Alerts by email
â Searchable by CPV (Common Procurement Vocabulary) codes, or
standard phases e.g. military vehicles
Example requirements 31/05/16
⢠Industry CPV code 38540000 - Machines and apparatus for testing and measuring. Est value -
between ÂŁ113k - ÂŁ348k
⢠Industry code 19212310 - Canvas Items and Other Soft Trim Accessories. Est value - £700k
⢠Industry CPV code 45223210 â Structural Steel Works. Est value â between ÂŁ870k - ÂŁ4.5m
9. Direct Opportunities
⢠Defence Contracts international â DCI
â Subscription based service
â International Defence contracts
â Market intelligence reports
â Spend Analysis â product; country; business etc.
⢠Contracts Finder Portal
â Central Government and wider Public Sector opportunities above ÂŁ10k -
https://www.gov.uk/contracts-finder
⢠Bluelight Emergency Services e-tendering-
https://bluelight.eu-supply.com
⢠Opportunities below £10k advertised regionally
10. ⢠Major Defence Programmes through Primes and OEMâs
â Example primes â Airbus; BAEs; Thales; Lockheed Martin; Babcock;
General Dynamics etc.
â Example OEMâs - Kelvin Hughes; Ultra Electronics; Cobham; Meggitt
etc.
⢠Two types of requirement
â Standard services & equipment
⢠Usually well established Supply Chain in place.
â Innovative products and processes
⢠Issue to identify route to entry.
Prime Contractors and OEMâs
11. ⢠Traditional challenges for SMEâs
â Unbalanced negotiations
â Identification of opportunities
â Fear of loss of IP
â Flow of Risk
â Unfamiliar contract terms
â Compliance issues to specific standards, quality; safety;
environmental etc.
â Export controls and constraints
Prime Contractors and OEMâs
12. ⢠Changing market
â Primes being incentivised to use SMEâs (UK MOD and others)
â Recognition of specific Engineering and Skills gaps.
â Balancing a stable core capability.
â Moving away from Prime Vendor lock-in
⢠Interoperability
⢠Common standards
⢠Joint operations
⢠Currency of technology
⢠Speed of Innovation
Prime Contractors and OEMâs
13. ⢠This is impacting the business relationship
â More flexibility on terms and conditions
â Support for compliance
â More equitable Risk share
â Security of IP
â Process improvement
â Joint development
Prime Contractors and OEMâs
14. Prime Contractors and OEMâs
⢠Opportunities to Engage
â Defence Events âMeet the Buyerâ / Prime contractor engagement
villages
⢠DPRTE (Defence & Procurement; Research & Technology; Exportability)
⢠Farnborough International
⢠DSEi (Defence & Security Exhibition International)
⢠DVD (Defence Vehicle Dynamics)
⢠Armoured Vehicles
⢠and more
â Meet the Technologist events (UKTI)
â Supplier days Programme specific
15. Prime Contractors and OEMâs
⢠Opportunities to Engage - continued
â Direct contact to bidders, identified through DCO
⢠Shows which companies invited to bid.
⢠Name and details (address, tele, email) of point of contact
â Prime / OEM specific supplier registration routes
⢠E.g. General Dynamics Supplier Registration Portal
https://suppliers.gendyn.com/
â Industry knowledge and contacts â intermediary
â Trade bodies â ADS; FAI; WEDA; NEAA; NDA(EEF); etc.
16. ⢠Do you understand the policies and standard terms
â Access the Commercial Toolkit - www.gov.uk/acquisition-
operating-framework
â Free to use
â Guidance on policy; DEFCONS and DEFFORMS
⢠Cyber Security â are you protected
â Jan 1 2016 Cyber Essentials & Cyber Essential +
Is your business prepared
17. ⢠Do you hold relevant standard accreditations
â Quality; safety; environmental etc.
⢠Are your business processes robust
â Change management
â TLS
â Supply management
â Etc.
Is your business prepared
18. ⢠Are you registered on SID â Supplier Information Database
â Free
â MOD acquisition staff use for sourcing
⢠Do you have access to DCO / DCI
â Experienced in how to use the tools
⢠Existing relationships with Primes / OEMS
Identify, compete and win
19. ⢠Collaborative working
⢠Established proposal management process
⢠Understanding the requirement and drivers
⢠Value proposition â How to help the Prime meet the end
customer needs.
⢠Compelling, economic offering.
â Develop offerings that profitably add value
Identify, compete and win
21. Background
⢠Defence and Aerospace sector since 2003
⢠National and International Bids and Projects
⢠Supported Industry Primes; OEMâs; SMEâs and MOD
â This has provided me the opportunity to understand the cultures,
working practices and issues for both Industry and end
customers.
â Wide network of contacts.
â Currency of Market knowledge.
22. Contact details
Tel: 02036930528
Mbl: 07769907938
Email enquiries@optimatrix.co.uk
OptiMatrix
Alexander House
Wilbury Way
Hitchin
Hertfordshire
SG4 0AP