One team one voice delivering global acquisition insight

One team, one voice delivering global acquisition insight that matters. So Now You Have a Contract; DCMA An Overview of Contract Administration Presented By: Steve Abate Administrative Contracting Officer 8 March 2017 Unclassified//For Official Use Only 1

Agenda • Intro to DCMA ü Contract Administration ü Quality Assurance ü Engineering and Manufacturing One team, one voice delivering global acquisition insight that matters. 2

DCMA Boston AOR General Dynamics Saco, ME Manchester, NH DCMA BAE Systems Nashua, NH General Dynamics-IT Westwood, MA General Dynamics-MS Taunton, MA Pease ANGB Portsmouth, NH Textron Systems Wilmington, MA DCMA BOSTON Boston, MA Rev Nov 28, 2016 One team, one voice delivering global acquisition insight that matters. 3

Mission and Vision Statement Mission We are the independent eyes and ears of Do. D and its partners, delivering actionable acquisition insight from the factory floor to the front line…around the world. Vision One team, one voice delivering global acquisition insight that matters. 4

What does DCMA do? We represent the military services, other federal agencies and allied government buying agencies at defense contractors worldwide prior to and after contract award. One team, one voice delivering global acquisition insight that matters. 5

DCMA Job Functions • Contract Management Team (CMT) ü Quality Assurance ü Industrial Specialists ü Cost and Pricing ü Property and Plant Clearance ü Contracting ü Contract Safety ü Transportation • How to Contact Us? ü Located in the Contract Management Team View ü https: //pubmini. dcma. mil/CMT_View_Search. cfm One team, one voice delivering global acquisition insight that matters. 6

Contract Administration • Organization • Team Structure • Who we are and what we do • How we can help you • When to contact us One team, one voice delivering global acquisition insight that matters. 7

DCMA Authority • Administration Functions - FAR 42. 302(a)/DFARS 242. 302 ü 71 Standard Functions ü Normal with delegation for administration q Performed as appropriate to the requirements of the contract ü PCO may retain all except final indirect billing rates, forward pricing rates, CAS approval • Additional Functions - FAR 42. 302 b/DFARS 242. 302 ü 11 Additional Functions Performed when specifically authorized by the Contracting Officer One team, one voice delivering global acquisition insight that matters. 8

DCMA Administered By… One team, one voice delivering global acquisition insight that matters. 9

Why do Contract Administration? • The purpose of contract administration is to ensure the Government receives the supplies and services we are paying the contractor to provide. • We need to ensure: ü The supplies/services delivered meet applicable technical requirements/ specifications; ü The supplies/services provided meet contractual requirements; ü The contractor complies with the terms and conditions of the contract. One team, one voice delivering global acquisition insight that matters. 10

Role of ACO/CA ADMINISTRATIVE CONTRACTING OFFICER & CONTRACT ADMINISTRATOR One team, one voice delivering global acquisition insight that matters. 11

ACO/CA Difference • The ACO and CA share similar roles at DCMA. The ACO and CA work closely on all contract administration functions up until signature. Once a signature is required then only the ACO has authority to do so. • This authority is because of a warrant the ACO received after going through the Warrant Assessment Program. • That authority is given in FAR 1. 603 -1. • This warrant gives the ACO the authority to make related determinations and findings to the extent of the authority delegated to them. One team, one voice delivering global acquisition insight that matters. 12

Role of ACO/CA • PCOs and ACOs can mutually agree to have the DCMA CMO manage more than the 71 functions listed in FAR 42. 302(a) • DCMA is responsible for administering different contracts, awarded by PCOs, with nuances in every contract that make them different than every other contract ü FFP q Fixed Price with Economic Price Adjustment q Time and Material q Fixed Price Incentive q Labor Hour q Fixed Price Level of Effort q Letter Contracts ü Cost Type q Cost Sharing q Cost Plus Incentive Fee q Cost Plus Award Fee q Cost Plus Fixed Fee One team, one voice delivering global acquisition insight that matters. 13

Role of ACO/CA DCMA facilitates payment • Works with DCAA and DFAS • Contract Receipt and Review • ü Post Award Orientation Conferences achieve a clear and mutual understanding of all contract requirements and identify and resolve potential problems. • Approves Final “Public Vouchers” ü Cost, Time & Material, and Labor Hour contracts • Approves & Manages Various Financing Payments ü Progress, Performance Based, and Advanced Payments One team, one voice delivering global acquisition insight that matters. 14

Role of ACO/CA • Performance-Based Payments Administration ü Milestones Establishment (Pre-award) ü Verify Milestone Completion ü Approve & Ensure Payments ü Notification of Delayed Performance • Progress Payment Administration ü Approve & Ensure Proper Payments ü Conduct Periodic Reviews i. e. Cost Incurred to Date, ETC, and EAC ü Notification of Delayed Performance • Public Voucher Administration ü Post-payment Reviews of Interim Vouchers ü Secure, Review & Approve Final Vouchers One team, one voice delivering global acquisition insight that matters. 15

Role of ACO/CA • The ACO along with DCAA and/or Functional Specialists shall: ü Determine the acceptability of the contractor’s business systems ü The ACO approves or disapproves the systems • The Business Systems include: ü Estimating System ü Earned Value Management System ü Material Management and Accounting System ü Purchasing System ü Property Management System One team, one voice delivering global acquisition insight that matters. 16

Role of ACO/CA Track and Monitor Mechanization Of Contract Administration Services • As an integrated contract administration and payment system, MOCAS is designed to provide DCMA and the Defense Financial Accounting Services (DFAS) with electronic information necessary to accomplish their mission of contract and payment administration MOCAS provides – ü Payment, management, financial, and delivery data to customer buying offices, funding offices, and inventory managers ü Payment to contractors or their designee ü Reports to the military departments for transmission to the Office of the Secretary of Defense (OSD), the Treasury, or the General Accounting Office (GAO) ü Closed contract information, as prescribed by the Federal Acquisition Regulation (FAR) and the Defense Federal Acquisition Regulation Supplement (DFARS) One team, one voice delivering global acquisition insight that matters. 17

Role of ACO/CA • Determine if contract is physically complete • Request DD 882 from contractor and coordinate patent clearance through patent office. • Resolve Admin/Pay Issues • Cancelling Funds • Definitization of undefinitized contracts • Novations and/or Change of Name Agreements • Notify PCO of Actions, i. e. additional funds • Settle Incurred Costs ü Work with DCAA through an Incurred Cost Audit or Low Risk Memo One team, one voice delivering global acquisition insight that matters. 18

DCMA Boston Pricing Group One team, one voice delivering global acquisition insight that matters. 19

DCMA Boston Pricing Group • What we Do ü Provide Pricing Assistance to support the Do. D Community ü Support the ACO with Financial Analysis for Progress Payments, Audit Support, and Indirect Rate Support • What is Pricing Assistance? ü Applying Business Expertise to determine if a proposal to the US Government is Fair and Reasonable and in accordance with applicable laws and regulations One team, one voice delivering global acquisition insight that matters. 20

DCMA Boston Pricing Group • How we can help you ü Good resource to understanding contract costs; from pre-award to settling of indirect rates ü Knowledge of Business Systems, Cost Accounting Standards and Audit Procedures • When to contact us ü Proposal submitted to the Government and PCO needs assistance on pricing ü If you have a question on contract costs, such as allowability One team, one voice delivering global acquisition insight that matters. 21

Quality Assurance • Defining Quality • How does DCMA Quality do their job? • Additional Resources One team, one voice delivering global acquisition insight that matters. 22

What is DCMA Quality? Quality Assurance is a systematic process for assuring the development, production, and delivery of products and services are meeting contractual requirements. Quality Assurance Specialists at DCMA are responsible for assuring contract technical performance and for the inspection, testing, and acceptance of products, supplies, and services being produced by the nation’s defense contractors. One team, one voice delivering global acquisition insight that matters. 23

Technical Skillsets • Technical Skillset ü Aircraft ü Ammunition ü Clothing and Textiles ü Chemicals ü Electronics ü Mechanical ü NASA required skillsets ü Non-Destructive Testing (NDT) ü Packaging *Not all inclusive One team, one voice delivering global acquisition insight that matters. 24

QA Tools and Methods • Contract Technical Reviews • Product Exams • Process Reviews • Data Collection and Analysis • Corrective Action Requests One team, one voice delivering global acquisition insight that matters. 25

Engineering and Manufacturing • Overview • Program Integration • Systems and Software Engineering • Earned Value • Industrial Specialist One team, one voice delivering global acquisition insight that matters. 26

Program Support Team “BOOTS ON THE GROUND” • Program Integrator • Systems Engineer • Software Engineer/Specialist • Admin Contracting Officer • Contract Administrator • QA Specialists • EVMS Specialists • Industrial Specialists Matrixed as needed • Property • Pricing • Transportation Provides direct support to Program Management Office counterparts. On-site “eyes and ears” of the Government. One team, one voice delivering global acquisition insight that matters. 27

Program Integrator Roles and Responsibilities • Eyes and ears of the PM, OSD and DCMA • Coordinates the activities of the PST team and the monthly reporting. • Functions as the primary DCMA representative to the customer, Program Office • Predicts future performance • Involved during all critical phases of the program life cycle • Makes actionable recommendations related to future programmatic efforts • Main communicator with the customer One team, one voice delivering global acquisition insight that matters. 28

Industrial Specialist The purpose of the Industrial Specialists is to determine a contractor’s capability of meeting contract delivery requirements INDUSTRIAL SPECIALIST - FAR 42. 1101 • Production surveillance is a function of contract administration used to determine contractor progress and to identify any factors that may delay performance. Production surveillance involves Government review and analysis of ü (a) Contractor performance plans, schedules, controls, and industrial processes; and ü (b) The contractor’s actual performance under them. One team, one voice delivering global acquisition insight that matters. 29

Industrial Specialist Core Functions: • Perform Manufacturing Supplier Risk Assessments (MSRA) on all contractors with Surveillance Criticality Designator (SCD) A & B Contractors • Perform Production, Planning and Controls (PPC) System Risk Assessments ü Master Production Scheduling, Rough Cut Capacity Planning, Material Requirements Planning, Capacity Requirements Planning, Shop Floor Control • Risk Rate, Develop and Execute Facility and Program Surveillance Plans • Perform Defense Priority Allocation Systems (DPAS) Risk Assessments and ensure contractors compliance with 15 CFR 700 • Delay Reporting (via Revised Delivery Forecast, RDF) One team, one voice delivering global acquisition insight that matters. 30

Industrial Specialist Core Functions (continued): • Perform Customer Requests ü Buying commands request of proactive contract status • Support Progress Payment Reviews ü Evaluation and validation of contractor progress towards deliveries • Pre-Award Surveys ü Manage, Conduct and determine the recommendation or non-recommendation of contract award • Recommend and Participate in Post-Award Conferences The INDUSTRIAL SPECIALIST and QUALITY ASSURANCE SPECIALIST work hand in hand to share knowledge about possible manufacturing delays or subsequent late shipments One team, one voice delivering global acquisition insight that matters. 31