Exiger Taps Kit Conklin for SVP, Risk and Compliance

Meeting NDAA FY2025 Supply Chain Requirements

January 24, 2025

Article

Introduction

The NDAA FY2025 mandates government agencies and the Defense Industrial Base (DIB) to strengthen supply chains, mitigate vulnerabilities, and ensure compliance across critical sectors.

Below, we focus on the specific NDAA requirements, detail the context, and explain how Exiger’s capabilities simplify compliance for agencies and contractors.

Section 162: Resilience for Small Unmanned Aerial Systems (sUAS)

Requirement:

The Department of Defense (DoD) must:

Dismantle and analyze commercially available foreign drones (e.g., DJI) to identify vulnerabilities and trace the origins of components.
Develop a secure supply chain strategy for sourcing critical sUAS components from domestic or allied sources.
Mitigate risks tied to adversarial suppliers while increasing supply chain resiliency.

Exiger Capability:

Supply Chain Mapping and Component Risk Analysis:
- Exiger’s AI-powered platform processes technical data packages (TDPs) to trace the origin of sUAS components and assess vulnerabilities.
- The Predictive BOM capability maps suppliers and sub-tier networks to pinpoint dependencies on high-risk sources.
Friend-Shoring and Supplier Diversification:
- Exiger identifies and validates suppliers in allied nations, helping shift procurement from adversarial sources to secure alternatives.
- Provides tools to onboard new suppliers while ensuring compliance with sourcing policies.
Critical Component Tracking:
- Tracks materials such as microelectronics and other critical inputs to ensure continuity in sourcing.

How It Helps:

Exiger accelerates compliance by automating the creation of a digital twin of the supply chain by mapping products, parts, and assemblies down to raw material inputs, enabling the DoD and contractors to proactively re-source critical components. This simplifies meeting the NDAA requirement to secure domestic and allied sources of sUAS components.

Section 849: Supply Chain Illumination Incentives

Requirement:

The DoD must incentivize contractors to adopt tools and policies that enable supply chain risk assessment, monitoring, and mitigation. These tools must illuminate risks like single-source dependencies, cybersecurity threats, and regulatory non-compliance.

Exiger Capability:

1Exiger Supply Chain Platform:
- Centralizes supplier and risk data into a single interface, providing a comprehensive view of supply chain vulnerabilities.
- Scores supplier risks across financial health, operational resilience, cybersecurity, and compliance.
Event Monitoring and Scenario Planning:
- Tracks geopolitical tensions, natural disasters, and other supply chain disruptions in real time.
- Provides predictive analytics to simulate the impact of potential risks and develop contingency plans.
Digital Twin for Supply Chains:
- Builds a virtual model of the supply chain, allowing contractors to identify risks, dependencies, and areas for improvement.
Proprietary Risk Model
- Risks are scored based on their impact across multiple dimensions, including financial health, FOCI, cybersecurity, operational resilience, and regulatory compliance.
- Our Risk Model leverages advanced algorithms to screen data across 16,000+ structured and 31M+ unstructured sources, ensuring only high-relevance risks are flagged for attention.
- Removes duplicative or irrelevant risk signals, preventing resource drain from addressing non-critical issues
- The risk model is tailored to fit the risk profile and appetite of the organization to surface the most important and critical risks to reduce noise and provoke action that makes an impact.

How It Helps:

Exiger equips contractors with advanced tools to meet DoD expectations for transparency and resilience, making them eligible for supply chain illumination incentives while reducing operational risks.

Section 850: Pharmaceutical Supply Chain Risk Management

Requirement:

The DoD must:

Report on vulnerabilities in the sourcing of active pharmaceutical ingredients (APIs) and other key materials for pharmaceuticals.
Ensure compliance with domestic sourcing mandates.
Improve visibility into risks such as supply shortages and material disruptions.

Exiger Capability:

ExploreRx Pharmaceutical Supply Chain Platform:
- Maps pharmaceutical supply chains from raw materials to finished products, identifying risks such as reliance on adversarial regions or unstable suppliers.
- Tracks APIs and starting materials to ensure compliance with domestic sourcing policies like the Trade Agreements Act (TAA).
Shortage Tracking and Alternative Supplier Identification:
- Provides real-time alerts for pharmaceuticals experiencing shortages or disruptions, helping contractors address supply risks proactively.
- Identifies and validates alternative suppliers to ensure availability of critical materials.
Supply Chain Resilience Tools:
- Enables contractors to diversify suppliers and implement strategies for managing disruptions.

How It Helps:

Exiger simplifies compliance by providing actionable insights into pharmaceutical supply chains, ensuring uninterrupted drug availability and alignment with sourcing mandates.

Section 162: Strategy for Secure Domestic Supply Chains

Requirement:

The DoD must develop a strategy to secure critical sUAS components from domestic or allied sources while addressing risks tied to adversarial nations.

Exiger Capability:

Embedded Spend Orchestration:
- Aggregates raw material demand across contractors, redirecting procurement to domestic suppliers.
- Secures inputs like titanium, aluminum, and steel by consolidating demand and prioritizing sourcing from trusted suppliers.
Supply Chain Digital Twin:
- Visualizes the entire supply chain, identifying bottlenecks, single-source risks, and geographic dependencies.
Re-Sourcing Support:
- Identifies alternative sources for critical components, ensuring supply chain continuity even in the face of restrictions or disruptions.

How It Helps:

Exiger supports contractors in meeting NDAA requirements by enabling a seamless transition to domestic and allied suppliers while ensuring continuity in critical component availability.

NDAA Alignment with Broader Supply Chain Risk Management Goals

Requirement:

Ensure resilience in defense supply chains by addressing vulnerabilities, mitigating disruptions, and maintaining compliance with regulatory mandates.

Exiger Capability:

Holistic Risk Management:
- Exiger assesses supplier risks across multiple dimensions, including financial stability, cybersecurity, operational capabilities, and compliance.
Event Monitoring and Mitigation:
- Tracks supply chain disruptions, including labor strikes, weather events, and geopolitical tensions.
- Automates supplier engagement to address risks proactively.
Predictive Analytics:
- Uses scenario planning to forecast risks and develop mitigation strategies, ensuring uninterrupted operations.

How It Helps:

Exiger enables contractors and agencies to proactively address supply chain risks, improving operational continuity and reducing compliance complexities.

Summary

Exiger’s capabilities directly align with NDAA FY2025 requirements, offering actionable tools for supply chain mapping, risk illumination, and sourcing compliance.

By simplifying compliance with Sections 162, 849, and 850, Exiger ensures both DIB and government agencies can address vulnerabilities, improve resilience, and meet regulatory mandates efficiently. These tools reduce operational risk, enhance transparency, and support U.S. national security objectives.

More Resources: