Add Subcontracts, Stir
Because subcontracted items accounted for 50 percent of the total contract value, suppliers were brought early into the design process and cooperated with engineers to mutual benefit, Abramovici says.
During the SPDM proposal stage, budgets were allocated to each subcontract. The information was validated through previous program experience, quotations and past procurement history. “At this time, potential vendors were identified, and sole-source components were flagged as program risks,” Abramovici says.
Whenever possible, MR Robotics entered into fixed-price agreements with suppliers. However, in one case of ingenuity at work, SPDM engineers suggested MR Robotics develop its own space-qualified camera design in parallel with a struggling supplier. MD Robotics management agreed, and a new project was launched. The cameras turned into a good business opportunity on their own, as the firm won major contracts for more than $13 million.
To ensure the highest engineering and quality standards were maintained throughout the contract, a dedicated subcontracts management team was assigned to each vendor. With smaller vendors, a team was responsible for more than one subcontract.
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