DoingBusinessWithBoeingWebinar-2011RevI 000

How to Do Business with Boeing
Overview
BOEING is a trademark of Boeing Management Company. Copyright 2011 Boeing. All rights reserved.
Agenda
Overview Boeing Defense, Space & Security (BDS) Boeing Commercial Airplanes (BCA) Shared Services Group (SSG) Small / Diverse Businesses External Reality Boeing Supplier Diversity Program Highlights Getting Started With Boeing What can a Small Diverse Business Do Emerging Capabilities External Technology Needs
Copyright 2011 Boeing. All rights reserved.
What We Do Today
Design, assemble and support commercial jetliners
Boeing 7-series family of airplanes lead the industry Commercial Aviation Services (CAS) offers broad range of services to passenger and freight carriers
Design, assemble and support defense systems

Worlds largest designer and manufacturer of military transports, tankers, fighters and helicopters Support Systems provides services to government customers worldwide
Design and assemble satellites and launch vehicles

Worlds largest provider of commercial and military satellites; largest NASA contractor
Integrate large-scale systems; develop networking technology and network-centric solutions Provide financing solutions focused on customer requirements Develop advanced systems and technology to meet future customer needs
Connect and protect people globally

Lean Enterprise * Our entire enterprise will be a lean operation, characterized by the efficient use of assets, high inventory turns, excellent supplier management, short cycle times, high quality and low transaction costs.
Global Boeing
Customers in more than 90 countries Total revenue in 2010: $64.3 billion 70 percent of commercial airplane revenue historically from customers outside the United States Manufacturing, service and technology partnerships with companies around the world Contracts with 22,000 suppliers and partners globally Research, design and technology-development centers and programs in multiple countries More than 160,000 Boeing employees in 50 states and 70 countries
Partnering worldwide for mutual growth and prosperity

Boeing Global Objective

To increase competitiveness of our International aerospace/defense supply chain in the global market To create/sustain high-quality aerospace/defense jobs both domestic and international To accelerate the maturity of the aerospace/defense technological base To increase the indigenous capability to build and support aerospace/defense platforms To provide operational mentoring to foreign/ domestic companies: test equipment, technical services, tooling, parts, processes, etc.
Create an infrastructure to support international aerospace / defense growth and market access
|6
Boeing Major Business Units

Boeing Commercial Airplanes Engineering, Operations & Technology Boeing Defense, Space and Security
Formed in 2006 2010 revenues of $31.8 billion Approximately 66,000 employees 12,000 jetliners in service 70 percent of Boeing commercial airplane sales outside of the United States Includes Commercial Avionics Services (CAS) Boeing Research & Technology Boeing Test & Evaluation Enterprise Technology Strategy Environment, Health and Safety Information Technology Intellectual Property Management 2010 revenues of $31.9 billion Approximately 66,000 employees Balanced backlog across all markets including a strong mix of development, production and support contracts Networked & Space Systems Boeing Military Aircraft Global Services & Support Phantom Works (formally Advanced Systems)
Boeing Research & Technology
Boeing Defense, Space & Security

VISION
Manned and unmanned military aircraft Intelligence and space systems Integrator and vertical, merchant C4ISR capabilities Network design and integration Integrated security/cyber security system International revenues of 25% by 2013 Boeing and non-Boeing platform support Diversified government and energy services
GS&S PW
BMA
N&SS
The strongest and best partner based on innovation, performance and value
Business Environment
Global Financial Crisis
US unemployment Nation state debt Fragile markets
Western Government Pressures

Constrained budgets Continued threats
Middle East and Asia

Financial strength Aging equipment Increasing needs
Competitive Responses
Differentiated pricing Cutting costs Reshaping portfolios
Challenging Times Demand Targeted Business Actions

Shape New and Existing Markets

Expanding our Capabilities
Unmanned Systems Addressable Market: $ 60B
Intel & Security / Cyber Addressable Market: $110B
C4ISR HW/SW Addressable Market: $260B
LogC2 Addressable Market: $40B
Infrastructure Services Addressable Market: $210B
Energy Services Addressable Market: $50B
New Growth & Emerging Opportunities for Hi-tech/Innovative Driven Small & Diverse Businesses
BDS Supplier Management Procurement Commodities

$ 6.1B
Avionics Hydraulics Landing Gear Electrical Systems
$ 1.1B
Propulsion Systems Engines
$ 2.4B
Technical & Engineering Services Customer Support
$14B Annual Spend

$ 1.2B
Major structures Fuselage Flight control surfaces
$ 2.3B
Machined parts Sheet metal parts Raw Materials
*Other- $621M 42% of Defense, Space & Security revenue is subcontracted

Boeing Commercial Airplanes Products and Services
Boeing product strategy is focused on meeting passenger desires and airline requirements Complete market coverage with operational commonality from 100500 seats Environmentally progressive Long-range, fast, reliable Low operating cost Standardization Passenger experience Operational commonality Lifecycle solutions Market-driving Products and Services
Market Forecast Drivers and Considerations

Traffic forecast
Annual growth, 2009 - 2028
WORLD Northeast Asia Europe North America Oceania Central America South America Middle East CIS Southeast Asia Africa Southwest Asia China 5.8 7.5 7.8 5.1 6.6 6.6 3.2 5.1 5.6 7.0 4.3 4.1 4.9
Network development
4 Percentage
Economic growth
Market liberalization
Airplane capabilities
Fuel price
Infrastructure
Environment
$70-90/barrel
High speed rail
Airline strategies and business models
BCA Supplier Management Procurement Commodities

$ 7.2B
Major assemblies Body sections Movable wing sections Doors
$ 2.4B
Materials Management & Spares Technical & Engineering Services Customer Support Internal Non-Production
$ 1.0B
Passenger Seats Cabin Systems Galley Inserts Interiors Cargo Systems
Avionics Flight Systems Hydraulics Wheels & Brakes Landing Gear Environmental Control Systems Electrical Systems
$ 2.4B
$ 3.9B
Machined parts Sheet metal parts Assemblies Tubing Wiring Tooling Raw materials Standards
$ 4.4B
Engines Struts Nacelles
Boeing products present opportunities across the entire corporation

Commercial Airplanes
Focus Areas and Opportunities
Fasteners and Mechanical Standards Processing, both chemical and thermal Hard metal machining (Ti) Composite detail fabrication Castings and Forgings Technology Thrust Environment Align technology requirements Enable dual / multiple use Exportable technology
Shared Services Group

Headquartered in the Puget Sound region of Washington state Provides infrastructure services and support to the companys business units worldwide Employs common processes and services throughout the enterprise Leverages economy-of-scale opportunities to deliver bottom-line results More than 10,000 people worldwide
Services 53.9% Supplies 5.8%
Information Technology 26.5%
Operating Equipment 13.7%
Common services provided in an innovative and cost-effective manner

What SSG Procures

Information Technology
Software Computing hardware Network IT services Peripherals
Site Services
Factory tooling Construction services Transportation services Facility services and equipment Manufacturing and facility tools and supplies
Financial, Corporate & Employee Services

Contract labor Credit card services Training and education Creative services Medical and benefits
Small / Diverse Business
External Realities Impacting Small Businesses

Global Recession New Focus Budget Rebalancing DoD Acquisition Reform
Defense Strategy
Budget Crisis
New Rule
Spot Light on Social Programs
Persciption
Positive & Negative Impact on Small and Diverse Businesses

Numerous Small Business Legislations (House & Senate) Introduced in 2011

S.1082 Temporary extension of SBA programs H.R. 598 & S.236 Eliminate preferences for Alaska Native Corporations H.R. 743 & S.367 Hire a Hero Act of 2011 H.R. 744 Womens Business Ownership H.R. 924 Jobs for Veterans Act of 2011 H.R. 1050 Small Business Health Fairness Act of 2011 H.R. 1070 Small Capital Formation Act of 2011 H.R. 1137 Small Business Credit Card Act of 2011 H.R. 1180 Small Business Start-Up Savings Account Act H.R. 1244 Private Employee Ownership Act of 2011 H.R. 1249 America Invents Act H.R. 1304 Small Business Jobs Act Technical Corrections Act of 2011 H.R. 1425 Improve STTR and SBIR programs H.R. 1657 Penalties for misrepresentation of a small business H.R. 1661 Small Business Tax Relief H.R. 1663 Work Opportunity tax credit for small businesses H.R. 1730 Small Business Start-up Savings Act H.R. 1732 Innovative Technologies Incentive Act H.R. 4 1099 Taxpayer Protection H.R. 25 Fair Tax Act of 2011 H.R. 105 Empowering Patients First Act H.R. 117 HELP Veterans Act of 2011 H.R. 132 Create Jobs by Expanding the R&D Tax Credit H.R. 133 Creating Jobs From Innovative Small Businesses H.R. 240 Promote jobs for veterans H.R. 244 Protecting Jobs in Your State Act if 2011 H.R. 417 Small Business Tax Relief Act of 2011 H.R. 447 SBIR Enhancement of 2011 H.R. 448 Small Business Innovation Enhancement Act H.R. 449 STTR Enhancement Act of 2011 H.R. 502 Clean Energy Technology and Export Assistance H.R. 527 Regulatory Flexibility Improvements Act of 2011
H.R. 1770 Small Business Paperwork Relief Act H.R. 1812 Small Business Growth Act H.R. 1984 Small Business Banking Improvement Act S. 239 Innovate America Act S. 256 American Opportunity Act of 2011 S. 361 Seven Point Plan for Growing Jobs Act S. 364 Establish a new Small Business Savings Account S. 370 Notify small business included in offers S. 474 Small Business Regulatory Freedom Act of 2011 S. 493 SBIR/STTR Reauthorization Act of 2011 S. 633 Small Business Fraud Prevention Act of 2011 S. 532 Patriot Express Authorization Act of 2011 S. 825 Job Creation Through Innovation Act S. 1110 Counting contracts toward contracting goals
Do you know how these rules, (if passed) will impact your business directly?
H.R. 585 Small Business Standard
Significant Small Business Legislations Highlights Introduced in 2011

Repeal 3% Withholding Tax
Will require 3% withholding on all Federal/State Contracts IRS Delayed current implementation date to January 1, 2013 Repeal has been unsuccessful due to jurisdiction & scoring problems Attempts to place in SBIR/STTR reauthorization bill unsuccessful
Permanent Reauthorization of SBIR

Current program expires 31 September 2011 - 14th extension since last reauthorization Last December, Senate passed long-term reauthorization that included agreement by all sides of contentious issues. House declined to consider prior to the end of the 111th congress. Senate passed bill died. This year, senate re-introduced agreed to bill. Failed in the senate due to imposition of non-germane amendments
Export Control Requirements

ITAR 122-Aerospace and Defense,1 Registration requirements Any person who engages in the USA in the business of either mfg or exporting defense articles/services required to register with the Directorate of Defense Trade Controls. EAR, Commercial Aircraft
For more Information http://www/dticmil/ndia/2011smallbusiness/201 1smallbusiness.html (this link will be active in about a week)
For a summary, current status, and/or the full text of each bill, go to:
http://thomas.loc.gov/home/thomas.php
Click on: Bill Number, enter the bill you are looking for and click on search
Why Do We Subcontract With Small and Diverse Businesses?

Our Government customers require itand its the law It is on President Obamas scorecard and is an airline customer metric Builds our industrial and talent base Can be an award fee element Small and Diverse businesses are some of our best suppliers Competitive factors: Competitors vying for recognition in the small business and employment arena Commercial contracting/enterprise impact Goodwill and favor of government decision makers Corporate citizenship Develop and maintain a global supply base
Supplier Diversity is smart business; Reinforced in Policy 15

Strong Focus on Supplier Diversity

Involve Small and Diverse Suppliers Up Front In Acquisition Process Identify Strategic Opportunities and Leverage Across Boeing Participate In Targeted Outreach Events/Activities Establish Stretch Goals Competition Advocates, Bidder Boards Develop, Educate And Mentor our Small/Diverse Suppliers Utilize Sourcing Tools for Small and Diverse Suppliers External SupplierGATEWAY:
https://app.suppliergateway.com/boeing
Affiliations
23 9/20/2011
Boeing Supplier Diversity Performance 2010

Spent over $4.8B (17%) with payments to 8,600 small businesses Spent over $1.6B with Minority Business Enterprises / Women Business Enterprises Spent approximately $17M with contracts to 16 AbilityOne agencies (National Institution for Blind / National Institution for Severely Handicap NIB / NISH) Spend with Strategic Initiative Businesses Historically Under Utilized Business Zone Businesses - $85M Native American Businesses - $131M Service Disabled Veteran-Owned Small Businesses - $95M Historical Black Colleges & Universities/Minority Institutions $4.6M (not included in total subcontracting $s above) Corporate Headquarters Placed $3.5B with Money Management Minority Business Enterprises (e.g., capital planning / finance / venture capitalist) Proposal Support 183 total Individual Subcontracting Plans - estimated value approximately $67B Legislative & Regulatory Support Over 32 proposed congressional bills in FY2010 that affect SB Programs.
Boeing continues to be a leader in the industry

Strategic Initiatives
Historically Underutilized Business Zone HBCU/MI and SBIR Mentor Protg Supplier Development Technology Roadmap Small Disadvantaged Business Minority Business Enterprises
AbilityOne
Provide Supplier Diversity Solutions and Leadership Across Boeing
Small and Diverse Business In reach/Outreach
Affiliations and Boards Veteran Owned Small Business/ Service Disabled Veterans Women Owned Businesses
Shareholder value, customer satisfaction, and competitive advantage are enhanced through relationships with small and diverse suppliers
9/20/2011
What Can Small & Diverse Businesses Do to Succeed in this Changing Business Environment?
Expectations of Our Suppliers

Boeing is looking for suppliers who: Do their homework to understand how their products and services can directly benefit Boeing Are Innovative and Responsive Share our commitment to performance excellence in terms of cost, quality and delivery Are financially healthy and are continuously focused on improving affordability and efficiency through Lean operations Share their knowledge for how we can all better manage our businesses and deliver value and solutions Are Customer Focused
We need suppliers who are looking toward the future with us

Performance Measurement Thresholds

High Performing
Gold Exceptional
Quality -100% Acceptance Delivery -100 % On Time GPA - > 4.8 AND no Yellow or Red
Silver
Very Good
Quality 99.8% Acceptance Delivery -98 % On Time
GPA - < 4.8 but > = 3.8 - Red AND no Yellow or
Bronze
Satisfactory
Quality 99.55% Acceptance GPA - < 3.8 but > = 2.8 AND no Red Delivery -96 % On Time
(no Yellow or Red at GPA Summary Level)
Yellow
Improvement Needed
Quality 98% Acceptance Delivery -90 % On Time
GPA - < 2.8 but > = 1.0
Red
Unsatisfactory
Quality -< 98% Acceptance Delivery - < 90% On Time
GPA - < 1.0
Composite and GPA assessment ratings are numerical average of applied values. Additional rules apply to low performing scores as referenced on matrix: Applied Numerical Value: Gold = 5 Silver = 4 Bronze = 3 Yellow = 1 Red = 0
Understand Our Procurement Practices

Boeing procurement policies govern the purchase of materials Procurement actions are based on conformance with all applicable laws Each Boeing business unit determines its own requirements Suppliers and potential suppliers must make their contacts through the Supplier Management organizations Our company emphasizes the importance of competitive bidding as a good business practice Boeing is committed to the use of e-enabling tools and services to share information
Suppliers are key to our team's agility, integrity and competitiveness

Understand Our Quality Requirements

Visit Boeing Quality Management System Requirements for Suppliers http://www.boeingsuppliers.com/supplier/index.html Aerospace Quality Management System (AQMS) Suppliers are encouraged to obtain (AQMS) certification/registration from an accredited industry controlled other party (ICOP) to show compliance to these requirements Additional information is provided on: Approved Process Sources National Aerospace and Defense Contractors Accreditation Program (NADCAP) accreditation as a pre-requisite of Boeing approval First-Article Inspection Requirements Quality Assurance Standard for Digital Product Definition Terms, Conditions and Provisions Quality clauses
Getting Started with Boeing

Visit the "Doing Business with Boeing" website
http://www.boeing.com/companyoffices/doingbiz Becoming a Supplier
What Boeing builds and buys Boeing's expectations Our procurement practices Register your company Supplier diversity at Boeing News and events Awards and recognition Size and diversity classifications Resources
Supplier Diversity
Register on Boeing's "Supplier Gateway"

https://app.suppliergateway.com/boeing/Login.aspx
Register as a Potential Supplier if you dont have an existing account It is very important that we know your business size classification Identify what commodity area your product or service falls into Complete your profile by including information on your products and services
Defense & Commercial businesses well-positioned for future growth

Registration Websites for Small and Diverse Suppliers

U.S. Government Websites
Central Contractor Registration/ProNet Small Disadvantaged Business (SBA approval required) SBA 8(a) Business Development (SBA approval required) Small business concerns in HUBZones (SBA approval required) Service-Disabled Veteran Owned Business Veteran Owned http://www.ccr.gov/ http://www.sba.gov/sdb/ http://www.sba.gov/8abd/ https://eweb1.sba.gov/hubzone/internet
http://www.sba.gov/vets/ http://www.vetbiz.gov
Non-Government Websites
Womens Business Enterprise National Council National Minority Supplier Development Council National Institute for the Blind National Institute for the Severely Handicapped http://www.wbenc.org/certification/ http://www.nmsdcus.org/whoweare/certification.html http://www.nib.org http://www.nish.org
Success Tactics
Keep Current on Business Trends and support Know your customer or potential customer (e.g. Boeing) better that we know ourselves Terms and Conditions Quality Requirements Performance Requirements Financial Requirements Stay connected Up-to-date website let people know who you are Register for online RFP applications (e.g. Exostar) If already a Boeing supplier, make sure your performance data is current Buyers prefer high-performing suppliers
Small business owners are admired for their ingenuity and aggressiveness. Embrace it and use that mindset to find your customers
Emerging Capabilities
Unmanned Vehicles
Technology Requirements
Electric Power and Generation Prognostics and Health Management Electric Flight Controls Non-linear Controls Motor Drives Motor Controllers Integrated Thermal Management
Homeland Security & Intelligence

Technical Requirements
Cyber & Information Solutions
Develop solutions to protect information and networks from cyber intrusion
Digital Receiver Technology

Develops communications surveillance, portable modem processing gear, & Digital Signal Processor (DSP) based equipment design Products include the miniature test receiver and wireless test transceiver (many products are not advertised due to sensitivity) Applications include Pioneer Data Collection Tool and network coverage application Offers engineering consulting services, design services, and on/off-site training
Global Security Systems

Provides border, transportation and critical infrastructure security solutions for global
customers
Mission Operations
Integrates, deploys, transitions, operates, and sustains satellite ground systems across the Intelligence Community, DOD, Civil, and Commercial customers - Expertise in systems, software, network, and infrastructure engineering and operations
Mission Systems
Provides the subject matter expertise, technical excellence, and operational experience required to lead Boeing's effort to support the horizontal integration of the Intelligence Community (IC).
Energy Technology
Capabilities Requirements
Demand management and response Information, analysis and visibility Energy storage Electricity distribution command and control Micro-grid renewable integration Electricity flow control Smart substation Meters (hardware, software and monitoring expertise) Information-based commissioning and intelligence agents
External Technology Needs
Global Technology: Technology Sourcing, Evaluation & Integration

18 External Technology Needs
Autonomous Systems and Operations: world modeling (learning, adaptive); ultra-precision navigation; vehicle health management (fault-tolerant, prognostic models, self-healing); distributed algorithms for unmanned vehicles (teaming, swarming) Security: semantic information management; communication and data distribution; biometrics and tracking; baggage and cargo screening and tamper warning; information assurance (quantum cryptography, multi-layer security, intrusion detection/prevention, role-based access control, insider threat detection Information Technology: high-performance and scalable systems; grid and hybrid networks; mobile and wearable computers; autonomic; ontologies and reasoning; multimedia semantics; data mining and intelligent agents; distributed data collection Communications, Effectors, Sensors: dynamic and fault tolerant; scalable data fusion; sensors (wireless; biological/chemical; biomimetic optical, for example, vision; biomaterials and interfaces); actuators (large and small; piezoelectric; reduce hydraulic-e.g., piezoelectric, electro-mechanical, electrohydrostatic, plasma)

Human-Systems Interaction: decision aid/support (situation awareness, decision visualization, cognitive performance model); interface (virtual/augmented reality, speech synthesis/recognition, 3D monitoring (retinal scanning, hand/eye tracking, human error/performance prediction); ergonomic tools (human modeling, anthropometric population databases); bioeffects safety (chemical-biological gear/air filtration, visual systems protection); supportive clothing for warfighters/astronauts Systems of Systems: air-traffic management; spares and network logistics; information management (FFID services, integration, mobile and ad hoc, advanced displays); distributed resources management (e.g., sensors); scalable quality of service networks (laser and optical communications, low-cost phasedarray antenna, bandwidth effective modulation, video compression) Electronics Equipment and Applications: open systems architecture; reassignable; certification upon replacement; software (reusable, upgradeable, provably correct); anti-tampering; high temperature electronics; fault tolerant & autonomic Warfare Technology: automatic target recognition; directed-energy weapons; non-lethal effects weapons; low observable technologies; rocket propelled grenade and high-caliber ballistic protection; light weight ballistic materials and structures; high-altitude, long endurance; biological/chemical threat mitigation

Electrical Power: variable frequency power; high temperature, high voltage; increased energy efficiency; distributed power (energy harvesting-hear, vibration; federated power-fuel cells, batteries); conductors (polymers, superconductors); fault-free connectors and arc-fault circuit breakers; advanced lighting (interior, exterior) Environment: energy efficiency (reduce fuel use, alternate fuels, alternative energy sources); interior and exterior noise reduction; air traffic management; green produce life cycle (design and manufacturing environmental footprint, operations environmental footprint, recycling/reuse of obsolete products); reduce carbon footprint Infrastructure: maintenance, repair, and testing (structures; propulsion and power; electronics; sensors, communications, and effectors; in-service nondestructive evaluation and inspection); obsolescence management; training; data support for network systems (analysis, fusion)

Engineering: Modeling, analysis, and simulation (material properties, e.g., nano; structural integrity and damage tolerance; aging structures; system reliability/failure modes; system of systems architecture; integrated assembly); knowledge-centric organization; geometry optimization; visualization; conferencing with large data sets and outside the firewall; reverse engineering (e.g. maintenance/mods of non-Boeing platforms; parts obsolescence); rapid prototyping (e.g. whole systems, structures, platforms); lifecycle single source product data; design for assembly; design for maintenance Materials: ultra-high strength-to-weight; long life-corrosion, fatigue, tires; noise dampening; light weight, moisture-resistant insulation; halon replacements; recyclable materials; anti-icing and scratch resistant coatings; radiation protection; multi-functional materials; conductive composites (thermal electrical); printable electronics Thermal Management: eliminate thermal waste (aerodynamic, chemical, electrical, directed energy, hydraulic, mechanical, solar); insulating materials and coatings; thermally conducting polymers; high-temperature and non-metallic; thermal electrical cooling; extreme heat tolerant brakes Structures: integrated wiring and sensors; health monitoring; weight; loads; seal-healing; reconfigurable/morphable; space debris armor

Passenger Experience: people friendly (lighting, audio, aroma, food-improved tasted, nutrition, appearance, choice); improved baggage handling; integrated seats; antimicrobial; demographics (e.g. special needs, disability accommodation) Manufacturing: capacity planning; digital factory (generative numerical control and robotics); minimal hard tooling; material placement; non-autoclave composites; enhanced forming and fatigue; joining coating, and painting; nondestructive inspection and shortened test cycles; predictive maintenance; large structures and scale-up Propulsion: active and passive noise control; fuel-efficient engines; fuels (high energy density; high heat sink; alternative fuels; reduced fuel hazards); extending engine life
Summary
Boeing aspires to be the strongest and best integrated aerospace company in the world To achieve this goal, it must operate more efficiently and effectively as one company
Efficiency and effectiveness are the primary goals of program and functional excellence Program and functional excellence are being pursued through common systems, processes, and training across the enterprise
Enterprise growth and productivity initiatives are helping the businesses establish this common, one-company approach
Maximizing Boeings growth and productivity, a one-company approach will build a brighter future for all including small and diverse suppliers

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How to Do Business with Boeing

Copyright 2011 Boeing. All rights reserved.

Design, assemble and support defense systems

Design and assemble satellites and launch vehicles

Connect and protect people globally

Copyright 2011 Boeing. All rights reserved.

Partnering worldwide for mutual growth and prosperity

Boeing Global Objective

Copyright 2011 Boeing. All rights reserved.

Boeing Major Business Units

Boeing Research & Technology

Copyright 2011 Boeing. All rights reserved.

Boeing Defense, Space & Security

Western Government Pressures

Middle East and Asia

Challenging Times Demand Targeted Business Actions

Shape New and Existing Markets

Unmanned Systems Addressable Market: $ 60B

Intel & Security / Cyber Addressable Market: $110B

C4ISR HW/SW Addressable Market: $260B

LogC2 Addressable Market: $40B

Infrastructure Services Addressable Market: $210B

Energy Services Addressable Market: $50B

BDS Supplier Management Procurement Commodities

$14B Annual Spend

*Other- $621M 42% of Defense, Space & Security revenue is subcontracted

Boeing Commercial Airplanes Products and Services

Market Forecast Drivers and Considerations

High speed rail

Airline strategies and business models

Copyright 2011 Boeing. All rights reserved.

BCA Supplier Management Procurement Commodities

Engines Struts Nacelles

Boeing products present opportunities across the entire corporation

Copyright 2011 Boeing. All rights reserved.

Shared Services Group

Information Technology 26.5%

Operating Equipment 13.7%

Common services provided in an innovative and cost-effective manner

What SSG Procures

Financial, Corporate & Employee Services

Copyright 2011 Boeing. All rights reserved.

Small / Diverse Business

External Realities Impacting Small Businesses

Spot Light on Social Programs

Positive & Negative Impact on Small and Diverse Businesses

Numerous Small Business Legislations (House & Senate) Introduced in 2011

H.R. 585 Small Business Standard

Significant Small Business Legislations Highlights Introduced in 2011

Permanent Reauthorization of SBIR

Export Control Requirements

Copyright 2011 Boeing. All rights reserved.

Why Do We Subcontract With Small and Diverse Businesses?

Supplier Diversity is smart business; Reinforced in Policy 15

Strong Focus on Supplier Diversity

Copyright 2011 Boeing. All rights reserved.

Boeing Supplier Diversity Performance 2010

Boeing continues to be a leader in the industry

Provide Supplier Diversity Solutions and Leadership Across Boeing

Small and Diverse Business In reach/Outreach

Expectations of Our Suppliers

We need suppliers who are looking toward the future with us

Performance Measurement Thresholds