Aselsan – Sub-Industry Companies Selection and Evaluation Process

Issue 76

Since its establishment, Aselsan has been collaborating with the SMEs and Sub Industry companies and has attached great importance to the development of these companies. Aselsan’s policy of benefiting from the sub industry is based on procuring all commodities and services that could be designed and/or produced domestically through local resources. With the business volume increasing especially in recent years, in parallel with the technological development of the sub-industry companies, the ratio of benefiting from the sub industry companies in the areas of design as well as in production activities have increased. In this way, the sub industry has even attained the system development level beyond sub-system development from the level of unit and device. In order to keep up with the growing workload in accordance with customer expectations, improving the quality and performance of the existing sub-industry companies and adding the qualified sub-industry companies to their approved company portfolio became obligatory.

Aselsan has evaluated the sub-industry companies through a fair and transparent evaluation process while conducting their selection and certification processes. According to this process; a sub-industry company that is willing to team up with Aselsan, accomplishes its official application by filling out the application form at the Aselsan Supplier Portal at Aselsan’s corporate website. The application form gathers general information, production/test infrastructures, personnel infrastructure, design tools, financial and administrative structure, references of the companies as well as their certificates regarding the quality and security. 

After the pre-assessment of all applications, a special username and password is assigned and given to the applicant company. The following updates are conducted via password access. The applications entered into Aselsan’s portal are assessed by the Sub Industry Company Assessment Council that gathers periodically under the presidency of the Central Procurement Directorate. By this council formed by Aselsan’s expert representatives from the procurement, quality, production and design units of Aselsan in addition to the Central Procurement Directorate, every company application is evaluated according to the criteria such as the information on the application forms, preliminary surveys conducted on the company, Aselsan’s business potential in the area applied by the company, number of the existing certified companies. As a result of the evaluation, an investigation delegation is formed for the applicable companies and the consideration is executed at the facilities of the company through the question sets organized in accordance with the activity area of the company. Three different question sets are used in the tests. These question sets are composed of the administrative questions examining company’s financial structure, the importance attached to the occupational health and safety of the company, questions inspecting the references and personnel infrastructure of the company, quality inquiries measuring the quality system implementations and whether or not the quality management system criteria are actively implemented by the company, and technical inquiries specifically designed based on over 30 different areas of activity depending on the company’s area of competency. These questions sets are sent to the company prior to the investigation and the preliminary assessment of the company will be formed and the on-the-spot-investigation is planned in thereafter. Each question set has a different degree and the investigation point of the company is calculated in average according to these various degrees. All data exchange throughout this process is provided by the Aselsan Supplier Portal. As a result of the accomplished evaluation, companies meeting the conditions for approval are selected as Aselsan’s approved sub industry companies.

Initially, a ‘Confidentiality Agreement’ is signed with the approved sub-industry companies and the procurement activities are conducted within the framework of related Aselsan instruction. The performance of our approved companies is measured in respect to both timely delivery and quality aspects for each dispatching they accomplish. Their periodic performance results are assessed and the periodic investigation schedule of the company is determined. As the performance points of a given company increases, the duration between the periodic schedules is extended. The development of the company is monitored through periodic investigations, and the “approved status” of the companies that do not achieve the required development, not adopting the required actions will be annulled. However, a strategic cooperation agreement will be signed with the companies functioning with high performance for a long period and additional privileges are provided in orders placed to the companies in this latter category.  Surveys similar to these inspections accomplished by Aselsan are conducted by other Main-Contractor Defense companies as well. In this case, the sub-industry companies collaborating with multiple Main-Contractor companies would be involved in various investigation processes. In order to transform these investigations into a central and standard structure, the Industry Competency Assessment and Support Program (EYDEP) is launched under the coordination of the Undersecretariat for Defense Industries. The main objective of this program is to identify the instant status of defense industry’s subcontractor companies and provide support to the companies in the required categories. Aselsan has been providing support and contribution to this process ever since its initial formation. Aselsan aims to utilize the EYDEP system for company approval once the EYDEP audit processes are completed. 

Certain support programs are organized to support the development of our approved sub-industry companies. These programs are composed of: free vocational training, equipment grants, technical consultancy, supplier financing agreements with the banks and special purchase agreements. Over 20,000 hours of free vocational training was provided to companies over the past three years.  Also, nearly 300 pieces of equipment in working order which was not utilized by Aselsan was transferred to these companies over the last three years. Aselsan’s engineers provide technical consultancy and convey their experiences to the companies within the scope of the projects. Sub-Contractor financing agreements are made with the banks especially for our sub-industry companies that require support as part of the financing and affordable loan rates without requiring any additional warrants; these are provided through the Aselsan order letter.To date, approximately 80 Million TL ($ 23 million) has been provided to credit facilities to companies within the scope of this model, which includes agreements with 5 banks. Aselsan is managing private arrangements so that sub-industry companies can benefit from the products purchased at a high volume and with affordable prices. 

On the course of its sustainable growth, Aselsan is aware of the contributions of the SMEs and Sub Industry companies and it constantly provides contributions to the development of these companies while continues its activities to seamlessly incorporate new qualified sub-industry companies into its portfolio without interruption