Original Date: 05/01/2000
Revision Date: 01/18/2007

In the past, the limitation of in-house expertise at Northrop Grumman Defensive Systems Division (DSD) resulted in significant outsourcing of facilities construction projects. Procurement actions were done in a non-competitive manner, while project schedules and costs were loosely monitored during the project’s execution. In 1987, the growth of the Rolling Meadows facility necessitated the development of written policies and procedures to govern how in-house construction projects were to be managed. The development of flow processes and process narratives involved cross-functional input from customers, support organizations, and process experts. This two-year endeavor subsequently evolved into Northrop Grumman DSD’s Facilities Service Manual (FSM).

The company developed the FSM to aid in controlling facilities construction projects from inception to completion. This manual includes information for all aspects of facilities projects including approved contractor listings for source selection, methods for choosing contractors, approval processes and necessary forms, various flow charts indicating the project process, as well as stipulations for weekly status reports and formal project status meetings with process experts, owners, and stakeholders. The FSM also provides guidelines and direction so process owners, stakeholders, and customers know what to expect and what action is required at every step throughout the process.

The FSM provides Northrop Grumman DSD with a well-defined and consistent approach to facilities construction projects. Since implementing the manual, the company has improved customer satisfaction as high as 97% (based on project feedback) and achieved an annual savings of $200,000 to $300,000 as a result of using competitive bidding procurement practices.

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