Original Date: 08/07/1995
Revision Date: 01/18/2007
Best Practice : Supplier Integrated Product Development
Supplier participation in the source selection process employed by Lockheed Martin Tactical Aircraft Systems (LMTAS) is an integral factor to achieving a low risk, cost effective, and affordable program. The Supplier Integrated Product Development (IPD) Source Selection Process provides a well-defined set of program requirements as well as the basis for proposal preparation. It also supports the philosophy that a proposal can be prepared with complete understanding of and agreement with the requirements.
Before Supplier IPD, the source selection process did an inadequate job of defining what the customer wanted, what the product team could provide, and did not permit the supplier to have a clear understanding of the Request for Proposal (RFP). Key deficiencies existing in the previous source selection process included the incapability to rate the differences between bidders and the inability to analyze risk. With Supplier IPD, the supplier becomes a member of the product team whose membership includes all groups with a stake in the program’s outcome. The supplier then has the opportunity to participate in defining program requirements; obtain customer ideas; evaluate alternatives; review the technical approach; conduct risk assessment; identify customer needs; review contract type; and endorse schedules and quantities. The process helps the user determine if a supplier is qualified to receive an RFP. Additionally, the process allows potential sources to review previous input and to influence final RFP requirements.
The final RFP provides a well-defined set of program requirements that is thoroughly understood, mutually agreed to, meets customer needs, is cost effective, and provides a low risk approach. It provides the basis for proposal preparation to do it right the first time, is more cost effective with no best and final offer anticipated, reduces evaluation time, provides a complete understanding of any cost/schedule risk to the program, and defines and agrees to schedules. The proposal can be prepared with complete understanding of and agreement with the requirements.
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