SMART SOURCING INDUSTRY DAY SMART SOURCE OVERVIEW

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SMART SOURCING INDUSTRY DAY SMART SOURCE OVERVIEW
22 March 2002 Mr. Tim Shepley Head Policy and
Process Management Department
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AGENDA

• Smart Source concept
• Smart Source process
• Whats Out?
• Whats in?
• Smart Source webtool
• Summary

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SMART SOURCING AN INTEGRATED APPROACH
Financial
Smart Sourcing Strategy
Long term future Vitality
People
Processes
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Smart Source Concept

• Smart Source is a collaborative NAVAIR CAO/IPT
  Approach
• Identifying NAVAIR Organic Technical
  Capababilities
• Removing Redundant/Competing Organic
  Capabilities
• Provides Understanding of where NAVAIR Dollars
  for Services are being spent

• Smart Sourcing is a pre-decisional sharing of
  information to facilitate Make/Buy decisions

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Smart Source Process

• The Smart Source Process answers several
  questions
• What are NAVAIRs Team-wide Service Needs?
• How do we communicate NAVAIR needs across the
  TEAM?
• How does NAVAIR formalize the make/buy
  consideration?
• How does NAVAIR enhance collaboration between
  Taskowners (requirements) and Resource Owners
  (suppliers) to determine best approach to satisfy
  service needs (Make/Buy decision)

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Whats Not in Smart Source?

• A-76 Commercial Activities (Identified to be
  studied/being studied/currently competing)
• Hardware
• Depot-level repair or modification of aircraft
• Service actions under 75K
• Systems Development Demonstration (EMD)

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Whats In Smart Source?

• Services in excess of 75K
• Services A requirement that directly engages the
  time and effort of a contractor or in-house
  resource whose prime purpose is to perform an
  identifiable task rather than to furnish an end
  item.

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Smart Source Webtool

• The web-based tool facilitates the process and
  documents the final results
• Provides Business Intelligence to where and how
  NAVAIR spends its service dollars
• The Website Access is restricted to NAVAIR
  Government personnel only Contractor access
  prohibited to ensure protection of Procurement
  Sensitive information

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Summary

• Smart Source is an integrated corporate strategy
  which balances
• Financial (budgets, rates, NOR)
• People (skill mix core capabilities)
• Processes (industry Best Practices)
• Smart Source ensures the long-term viability of
  NAVAIR

People will be available to assist you with any
additional questions or comments on this subject