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Our Business 10 Global Supply Chain Our suppliers play a critical role in our ability to deliver the quality products and services our customers expect. We expect them to uphold the same high standards that we uphold ourselves. This means our suppliers are expected to act as good corporate citizens with sustainable business practices and to honor our ethical treatment of employees and customers, including acting with integrity, honesty and respect for others. Collaboration Our businesses work together to create value across supply chains. As a result, we have developed best-in-class supply chain relationships and processes. Below are examples of ways we promote continuous improvement and enhance our companywide collaboration. Supply Chain Management Council: The Council includes experts from across our businesses who share ideas, best practices and business processes. Individual businesses are able to leverage resources, create shared tools and enjoy the benefit of scale. Multiple subcommittees focus on specific areas to improve and achieve cost and time savings, such as travel and transportation and use of e-tools. Innovation Networks: Our virtual innovation networks allow members to collaborate in a community environment so we can deliver new technologies and innovative capabilities to our customers rapidly. Our mission with these networks is to create and maintain an open environment where partners, suppliers and customers can share, develop and deliver current and emerging technologies and capabilities. Supplier Diversity General Dynamics is committed to working with small and diverse businesses. In fact, more than 5,000 of our business partners are minority-, women- or veteran-owned enterprises. These businesses are a vital part of maintaining our competitiveness in the global marketplace. Our supplier diversity program operates under a framework based on four pillars: compliance, early engagement, small business innovation and community outreach. We partner with small disadvantaged businesses, women-owned small businesses, veteran-owned small businesses, service-disabled veteran- owned small businesses, SBA-certified HUBZone small businesses, Native American-owned small businesses, minority-owned companies and Ability One organizations. In the year following the outbreak of the COVID-19 pandemic, we advanced more than $2 billion in accelerated cash payments to thousands of companies in our supply chain, most of them small businesses. These advances provided our suppliers with essential liquidity during an uncertain time, ensuring they could meet their obligations to their stakeholders. In 2020, we increased the dollar amount of contracts awarded to small businesses by 12% over 2019.

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