How To Do Business With Northrop

Grumman

November 9, 2011

Tizoc S. Loza Corporate Program Manager SEBP / Government Relations

HEADER / FOOTER INFORMATION (SUCH AS NORTHROP GRUMMAN PRIVATE / PROPRIETARY LEVEL I)

Northrop Grumman Today

• $28 billion sales in 2010

• $47 billion total backlog (post SB Spin-off)

• 75,000 people, 50 states, 25 countries

• Leading capabilities in:

– C4ISR and Battle Management

– Cybersecurity

– Defense Electronics

– Homeland Security

– Information Technology and Networks

– Logistics

– Space and Missile Defense

– Systems Integration

– Unmanned Systems

Focus on Performance

2

Four Operating Sectors

3

Aircraft

Subsystem/Component

Sustainment & Modernization

Aircraft System/Platform

Sustainment & Modernization

Defense and Government

Services

Ground Vehicle

Reconstitution

Integrated Logistics and

Modernization

Irregular Warfare/Quick

Reaction Capability

Live, Virtual and Constructive

Domains

Nuclear Security Services

Technical and

Operational Training Support

Training Solutions

Technical Services

Air Defense Systems

C4ISR Networked Systems

EO/IR Targeting &

Surveillance

Marine & Undersea Systems

Navigation & Positioning

Systems

Propulsion & Power

Generation

Radar Sensors & Systems

RF/IR Countermeasures

Space Sensors

Electronic Systems

Airborne Ground Surveillance / C2

C4ISR

Directed Energy Systems

Electronic Combat

Operations

Environmental & Space Science Satellite Systems

Global / Theater Strike

Systems

ISR Satellite Systems

Large Scale Systems Integration

MILSATCOM Systems

Missile Defense Satellite

Systems

Naval BMC2

Strategic Space Systems

Unmanned Systems

Aerospace Systems

Command & Control

Systems

Communications

Cybersecurity

Enterprise Systems

and Security

Federal, State/Local

& Commercial

Health IT

Homeland Security

Intelligence

Intelligence, Surveillance &

Reconnaissance Systems

IT/Network Outsourcing

Information Systems

Northrop Grumman Products

4

How to Become a Northrop Grumman Supplier

Potential

Supplier

Northrop

Grumman

Socio-

Economic

Business

Office

Direct Any Questions to and Keep In Contact With:

Northrop Grumman Socio-Economic Business Office or

Specific Procurement or Technical Department

Become familiar with

Northrop Grumman

Products & Reqts.

Advise supplier on

potential subcontract

opportunities Evaluation

Submit letter of

introduction and

Company literature to

Small Business Office Input Company

Information into Northrop

Grumman Potential

Supplier Database

Become Familiar With Northrop Grumman Products & Requirements Submit Letter of

Introduction and Company

Literature to Socio-Economic

Business Office

Advise Supplier on

Potential

Subcontract

Opportunities

Evaluation

Forward Materials

to Purchasing/

Engineering/Other

Using Organizations

Do Your Homework

• To Be Effective, Practice the following:

• Basic Marketing Research

– How is the Company Structured?

– What are the Principal Products?

– Does This Company Buy What I Sell?

– How Does the Purchasing Process Work?

– Special Niche Needs

• Logistics / Timing

– Proximity of Supplier to Company?

– Who is My Competition?

– Has the Company Received New Business Contracts?

– When Will Materials / Services be Needed?

Supplier Information Required

• Type of Business

• Number of Employees

• Financial Profile

• Principal Product or Service

• Areas of Product Interest

• Description of Facilities/Equipment/Technical Capabilities

• Quality Assurance Standards (ISO Certification, Lean

Principles, Six Sigma)

• Certifications (HUBZone, Service-Disabled Veteran)

• NAICS Codes

Selection Criteria

• Engineering Or Technical Capability

• Supplier Capacity

• Supplier Manufacturing Diversity

• Previous Experience - Like Companies Or Other Northrop

Grumman Sites

• Past Performance – Quality, Delivery And Cost

• Supplier Location

– Proximity To One Or More Northrop Grumman Sites

Selection Criteria (Continued)

• Small Business Relationship

– Small

– Small Disadvantaged

– Women-Owned

– Service-Disabled Veteran-Owned

– Veteran Owned

– AbilityOne (Formerly Javits-Wagner-O’Day Program)

– HUBZone (Location in Historically Underutilized Business Area)

– Native American

– Native Hawaiian

– Alaska Native Corporation

How Do We Find Suppliers?

• Outreach Events – Program or project specific

– Commodity specific

– Business size specific

• Prospective Supplier Database – https://oasis.northgrum.com/corp/Supplier_Information.htm

• Recommendations from: – Our Customers

– Our Aerospace Counterparts

– Technical and Program Management

• Company Protégés

• Existing Suppliers

Capabilities, Timing, Past Performance,

Relationship Building Are Key Considerations

11

Mentor-Protégé Program

• Current Status:

– GFY 2011, 19 Active Mentor-Protégé Agreements

– 6 Different Government Agencies (DoD, VA, Treasury, State Department , DHS,

State of Texas)

• Program Objectives:

– To be strategic in choosing future protégé firms

– Need to align protégé’s with customers and programs

– Work with work commodity teams to identify current supplier that qualify for the

Mentor-Protégé program

– Identify SBIR firms that can participate in the MPP

12

NG’s Small Business Innovation

Research (SBIR) Program

• Current Status:

– The SBIR program, has been is under a “Continued Resolution” until 18 November 2011, funded at approximately $2.2 billion in FY 2010, is made up of 12 participating agencies

– The DoD SBIR program, funded at approximately $1.14 billion in FY 2011

– Currently tracking approx 50 phase I or II SBIR projects

– Commercialization Pilot Program, with Navy & Air Force

– NGC Sponsored Approximately 6 Major SBIR National Conferences And Supported 6 Agency SBIR Conferences in ‘10

• MDA – Navy – Air Force - DoD – 2 National Conferences

13

Historically Black Colleges Universities/

Minorities Institution (HBCU/MI’s)

• Northrop Grumman works with Historically Black Colleges or

Universities/Minority Institutions (HBCU/MI) that provided systems

support, research and development, conference support and training

• Northrop Grumman engages HBCU/MI schools through its University

Partnerships Initiative

– Increase HBCU/MI awareness of federal subcontracting opportunities

– Increase NG business unit participation with HBCU/MIs by identifying and maximizing

subcontracting opportunities on major programs

– Increase HBCU/MI participation in the Mentor-Protégé Program in order to engage

schools in real-time technical support to small businesses

– Utilize the Small Business Technology Transfer (STTR) program to encourage

HBCU/MI schools to partner with small business concerns and prime contractors to

develop new and innovative technologies to bring to the marketplace

Contact Information

Tizoc S. Loza

Corporate Program Manager

SEBP / Government Relations

Ph: 703.280-4073

Fax: 703.280-4933

E-mail: tizoc.loza@ngc.com

• Review the Northrop Grumman Website

• https://oasis.northgrum.com/corp/business_area.htm

• for Commodities Available For Subcontracting

Review the Northrop Grumman Website https://oasis.northgrum.com/corp/business_area.htm

for Commodities Available For Subcontracting

Summary

Northrop Grumman’s Procurement Strategy Is

Designed to Ensure That Capable Small

Businesses Receive The Maximum

Practicable Subcontracting Opportunities On

Our Programs