L. A. SECTION ENTERPRISE CHAPTER

Ian Cannon, Principal Engineer for Rocketdyne Technical Consulting, spoke to the Enterprise Chapter at the AIAA L. A. Section Offices on February 21, 2006. He described the unique challenges of running a consulting and services provider within a large aerospace corporation, including preservation of the enterprise following a corporate merger. Ian had spoken to our chapter several years ago while part of Boeing, and Rocketdyne has since become part of Pratt & Whitney segment of United Technology Corporation.

The vision of Rocketdyne Tech is to generate new business within Pratt & Whitney Rocketdyne (PWR) without significant new capital outlays, to apply the knowledge of company employees, the capabilities of unique facilities and engineering systems, to new situations, to encourage innovation, and to be profitable without interfering with other corporate programs.

It is extremely important that Rocketdyne Tech, with sales of less $1 million annually, not harm the reputation of the parent company, which has sales 800 times that much. Accordingly, Rocketdyne Tech refuses jobs for which the customer will pay Rocketdyne Tech merely to say what the customer desires. The Engineering Department determines whether the proposed work can succeed technically and whether the necessary skills are available before submitting a proposal. Established Rocketdyne engineering procedures are followed in performing the job. Individual engineers are held accountable for their hourly estimates, honoring commitments, and observing professional ethics.

To keep this business both responsive and nimble, NO GOVERNMENT BUSINESS (PRIME OR SUB) IS ACCEPTED! Government Acquisition and Procurement Regulations are not followed, and a fixed price contract form is used at PWR-specified rates, thereby avoiding costly administrative and auditing delays. A key part of this process is what Cannon calls the "back office" a small team he has organized to process these contracts quickly. Turnaround time between initial discussions and contract signatures are measured in a few days for Rocketdyne Tech, compared with as much as 6 months for large government contractors.

The client financial viability and reputation is screened through Dun & Bradstreet and background checks of principals through Google and other sources. The customer must agree to do business according to terms defined in a Standard Contract, developed by PWR Corporate Counsel and Insurance offices, which covers issues such as indemnification, warranty, insurance, disclaimers, and export.

The job is then discussed, the statement of work (SOW) is defined, and Rocketdyne Tech then prepares an estimate. The candidates to perform the job are assigned with their management’s concurrence regarding schedule and availability. The average candidate has 20-28 years of experience. In preparing the offer, each engineer must generate his own estimate. Ian Cannon does not cut any estimates to meet imagined customer budgets. After the customer signs the Standard Contract, the offer is presented to the customer. No price negotiations are allowed; the client can either afford the job or he can’t. If he can, he signs an acceptance. Rocketdyne Tech then performs the job. Each engineer involved must perform his part of the job, and if he underestimated, he is expected to devote extra hours on his own to meet his commitment. Project management must focus on keeping the work within scope and tracking SOW compliance. Out-of-scope requests, if any, must be monitored closely and the SOW and price must be modified if added work is agreed to. The buyer is invoiced the fixed price upon completion.

These jobs generally result in win-win outcomes. PWR benefits by learning of new market needs to augment current growth plans, and by developing new technologies, products, services, licensing agreements, and potential partnerships. Customers surely benefit with solutions to their problems. Moreover, clients in other industries, such as offshore oil exploration, fuel cell cars, and hydro utilities, learn to apply aerospace practices that are not so mature in their industries, such as quality control of construction material, and failure modes and effects analyses (FMEA’s) to their operations so as to make them more efficient and less costly. The employees are energized; they learn of new applications, expand their knowledge, and savor the personal satisfaction of helping their fellow man.

Ian has had to resell his activity to PWR following the sale of the Rocketdyne Division of Boeing to Pratt & Whitney. In the transition from Boeing to PWR, all legal documents, terms and conditions, expenditure approval gates, manpower thresholds and job durations needed to be reestablished in accordance with the policies and procedures of the new owner. With his business case at the ready to argue as to why the business helps the corporation and to ensure that it does not interfere with PWR’s core business, Ian was able to persuade PWR to continue this business.

Rocketdyne Technical Consulting has a user-friendly web page, optimized for Google and Yahoo, which describes the services they provide in each of their technical areas of expertise. The web site also features related articles, white papers, speeches and video games that are useful to practicing engineers, teachers and students. The site receives about 150,000 hits per month and promotes a favorable image of PWR.

There is little doubt that the success of Rocketdyne Technical Consulting owes a lot to the managerial talents of Ian himself. Leadership roles in program management, proposal preparation, and engine systems hardware manufacturing and familiarity with the company accounting and legal systems have prepared him for the tasks of integrating varied elements of company operations in an effective manner.

Ian’s advice to young engineers who aspire to a position similar to his is to acquire knowledge of as many aspects of the engineering process as possible, including the cost and legal aspects. Move around, make yourself available, take on assignments and do things many others shrink from doing, do them well, and you will be rewarded.

Guido Frassinelli