CPO News – September 2, 2016

Posted by Matthew York on September 2nd, 2016
Stored in Articles, Chief Procurement Officers, General, People

PSEG Names Brian Clark VP of Procurement

On August 22, Newark, New Jersey-based PSEG Services Corp. announced that it has named Brian Clark as its newest Vice President of Procurement, effective August 29. Clark has been with PSEG (Public Service Enterprise Group) for 17 years and, in his last role, served as senior director of SERVCO and Fossil support services. In his new role, Clark will be responsible for developing and executing the company’s procurement strategy, overseeing process efficiencies, and driving cost savings and value from the company’s nearly $5 billion budget. Prior to that, Clark was plant manager at a couple of PSEG plans, as well as manager at a testing center. He earned his BS in Business Administration from the University of South Carolina-Aiken and his MBA from the University of Delaware.

From CPO to… A. Schulman Promotes Miller to COO

Also on August 22, A. Schulman, Inc. (Nasdaq: SHLM), an Ohio-based supplier of plastics, powders, and resins, announced that it has promoted Gary A. Miller, Chief Procurement Officer, to Chief Operating Officer, effective immediately. Since 2008, Miller had served as the company’s Executive Vice President of Global Supply Chain and CPO. Prior to joining A. Schulman, Miller worked with Goodyear Tire & Rubber Company for 39 years, capping his tenure there as Vice President of Purchasing. He earned his Bachelor of Science in Chemical Engineering from the University of Cincinnati, and has undertaken graduate work at Harvard University, the University of Virginia, and Northwestern University.

Khan Named Chief Budget and Procurement Officer for City of Medford

In a bit of local news, Shab Khan, a 20-year public sector procurement professional, was recently named Chief Budget and Procurement Officer for the City of Medford, Massachusetts. In her new role, Khan will oversee budget creation and execution for Medford, as well as the City’s procurement of goods and services, particularly public works and construction. Prior to joining the City of Medford, Khan served as CPO and Director of Contracts Administration for the Massachusetts Department of Conservation and Recreation (DCR). She has also held Director-level positions at the Department of Early Education, Massport, and the Executive Office of Administration and Finance. Khan earned her Bachelor of Arts in Economics from Brandeis University.

UK Ministry of Defence Names New Procurement Minister

Across the pond, the UK’s Ministry of Defence (MoD) recently named Harriet Baldwin as its new defence procurement minister, effective July 18. Baldwin replaces Philip Dunne in the wake of the UK’s decision to exit the European Union (“Brexit”), Prime Minister David Cameron’s resignation, Theresa May’s appointment to the post, and her ultimate reshuffling of the government. Baldwin has a long career in public sector finance. She joined parliament in 2010 and represented constituencies home to major defense contractors. Prior to that, Baldwin worked for the Treasury Ministry and managed pensions.

U.S. Department of Defense Issues Final DFARS Rules to Combat Counterfeit Components

On August 9, the U.S. Department of Defense (DoD) issued its final Defense Federal Acquisition Regulation Supplement (DFARS) rule concerning the sourcing of electronic components by defense contractors and subcontractors, with the aim to combat the spread of counterfeit or malicious components. This is a follow-on rule to DFARS issued in Fiscal Years 2015 and 2012. The 2016 DFARS incorporates suggestions made by the Electronic Components Industry Association (ECIA) to the DoD, including: replacing the term “authorized dealer” with “authorized supplier,” and further defining the term “authorized supplier.” The term, “trusted supplier” was replaced with “contractor-approved supplier” and also further defines that term. The final DFARS rule also establishes a three-tiered approach to the procurement of electronic parts, and defines roles and responsibilities for each party.

U.S. Intelligence Community to Help Fight Corporate Supply Chain Hacking

On August 11, Bloomberg reported on a new initiative by the U.S. Intelligence Community (IC) to assist private sector organizations in the identification, aversion, and mitigation of cyber threats to their supply chains. According to the article, the National Counterintelligence and Security Center, which is a dedicated organization serving directly beneath the Office of the Director of National Intelligence (ODNI), will share classified threat assessments with critical infrastructure companies in the U.S., including telecommunications, energy, and financial businesses, in an effort to prevent states, like China, Russia, and North Korea, and non-state actors, like cyber criminals, from penetrating their systems, extracting information, and or disrupting their supply chains. This IC-led effort mirrors other initiatives taken by the DoD, Department of Homeland Security, and Department of Justice to combat cyber crime within public and private sector organizations that are part of the nation’s critical infrastructure.

Less than two weeks later, the ODNI released an unclassified video to public- and private-sector procurement and supply chain officials warning of the threats that hostile nations pose to their supply chains. According to the video, risks materialize in mission-critical “commercially-sourced information and technologies,” which are eventually passed on to end users in the form of counterfeit or faulty components.

EU Reaches Deal on Conflict Minerals Regulation

Earlier this summer, the Wall Street Journal reported that the EU has reached a deal that will require organizations within the 28-member (soon to be 27-member) union to investigate their supply chains for conflict minerals and prevent their use. Under the framework of the deal, organizations must investigate their supply chains for the presence of tin, tungsten, tantalum, and gold, the so-called 3TG minerals, and determine if they are sourced from any country where its mining, refining, smelting, and trading benefits armed groups or inflames conflict zones. If they determine that they source covered minerals from covered countries, then they must cease the practice. According to the article, these regulations apply to an estimated 900,000 organizations in the EU. Small organizations that provide dental products are exempt from the law, as are organizations that source recycled or existing stocks of 3TG minerals. Penalties for non-compliance have not been set, but will reportedly be left to the discretion of individual nations. Although human rights organizations, like Amnesty International, successfully lobbied to give the regulation teeth, they argue that it ought to cover more minerals, like lithium, that are found in conflict zones, like Afghanistan.

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