DCMA

1
DCMAs Strategic Plan - Achieving Contracting
Performance Expectations Partnering with
Industry to Achieve Performance Goals
Presented By Marie Greening Leona
Fitzpatrick Chief Operations
Officer Operations Contracts Director
October 29, 2013
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Overview

• DCMA Mission
• DCMA Strategic Plan Highlights
• Contracting Performance Measures
• Why its important
• Select DCMA Contracting Performance Indicator
  Achievements and Current State
• Partnering for Success

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Overview

• DCMA Mission
• We provide Contract Administration Services to
  the Department of Defense Acquisition Enterprise
  and its partners to ensure the delivery of
  quality procedures and service to the warfighter
  on time and on cost

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Strategic Plan/Balanced Scorecard
STRATEGIC ENDSTATES
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Strategic Plan Implementation

• Performance Management
• Integral component of DCMAs strategic planning
  and management philosophy
• Provides ability to track strategic initiatives,
  assess operations capability
• Performance indicators are the foundation to
  assessing organization performance for DCMA
  processes and supplier performance

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Contracting Performance Measures

• Eighteen Performance Indicators in Eight Main
  Areas

• Contract Closeout

• Final Overhead Rates

• Canceling Funds

• Undefinitized Contract Actions

• Forward Pricing Rate Agreements/Recommendations

• Proposal Pricing

• Contract Audit Follow Up

• On Time Delivery

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Why Its Important

• Each area represents financial interest to both
  government and contractor teams
• 1.8B in Canceling Funds in FY 2013
• 55,000 overage contracts for closeout
• Resolution of questioned costs on DCAA audits
• Undefinitized Contracts Actions

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Operations DirectorateContract Closeout
Timeliness
Contract Closeout Close 90 of Contracts within
FAR Timeline
P.I. 46
Data as of Sep 2013
Operations Directorate POC Eugenia Vinson
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Operations DirectorateContract Closeout
Timeliness
FY 2010-FY 2013
Performance Indicator 46
10
Operations DirectorateContract Closeout Overage
OPERATIONS PERFORMANCE GRAPH Reduce the Number
of Overage Contracts by 10
P.I. 47
Operations Directorate POC Marc
Rabinowitz/Kerri Roberts
Data as of Sep 2013
10
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Operations DirectorateContract Closeout Overage
FY 2010-FY 2013 Performance Indicator 47
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Current State

• Contract Closeout
• Approximately 48,000 overage contracts for
  closeout are coded as awaiting settlement of
  final overhead rates
• Backlog has steadily grown over the last 4 years
• DCAA is using a multipronged approach to address
  incurred cost backlog
• DCMA is focused on ensuring contracts awaiting
  settlement of final overhead rates have all other
  action completed
• Will expedite closeout when audits/rates are
  received
• Partnering with AbilityOne to work closeout
  actions
• DCMA Initiated Contract Closeout Blitz to focus
  on closing contracts within DCMAs control
• Fixed Price Contracts
• Contracts coded as having a paid final voucher
• Reopened contracts

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Current State

• Final Overhead Rates
• Performance Indicator reporting has been
  suspended due to system interface issues between
  DCAA and DCMA
• Information still flows over to DCMA, just not
  necessarily aligned to correct office for PI
  reporting purposes
• DCMA system indicates over 20,000 open overhead
  years
• DCAA increased the number of closed audits in FY
  12 and FY 13
• DCMA systems tracks status/closure of ACO
  determined rates and DCAA audit determined rates
• DCMA and DCAA are ensuring both agencies data is
  congruent to ensure all DCAA closed overhead
  years are accounted for by DCMA
• Facilitates maximum number of closeouts
• DCMA is partnering with DCAA to identify audits
  needed to close the most overage contracts

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Operations DirectorateUCAs Definitized On-Time
AQ UCAs Definitize 80 of UCAs within 180 days
of order issuance or induction of asset
P.I. 50
Operations Directorate POC April Johnson
Data as of September 2013
14
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Operations UCAs Definitized (On Time)
FY 2010-FY 2013 Performance Indicator 50
Percent

• Definitize 80 of UCAs within 180 days of order
  issuance or induction of asset

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Operations DirectorateUCAs Overage
AQ UCAs Reduce Number of Overage UCAs by 10
P.I. 51
Operations Directorate POC April Johnson
Data as of September 2013
16
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Operations UCAs (Overage)
FY 2010-FY 2013 Performance Indicator 51
Number

• Reduce Number of Overage UCAs by 10

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Current State

• Undefinitzed Contract Actions (UCA)
• Navy is largest customer delegating UCAs for
  issuance or definitization
• In FY 13, there was an average of 1,435 UCAs on
  hand
• 744 was typically overage
• Main factors for exceeding the 180 days for
  definitization are
• Non-Receipt of asset
• Late receipt of proposal
• Awaiting additional funds
• Partnering with NAVSUP WSS to develop strategies
  to reduce overage backlog and improve timeliness
• Establishment of priced long term agreements has
  been the most impactful

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Operations DirectorateProposal Pricing
AQ Proposal Pricing Ensure 90 of Pricing
Reports Completed within 45 days or Other
Mutually Agreed Upon Due Date
P.I. 54
Operations Directorate POC Erik Mims Alternate
POC Rosalind Lanham
Data as of September 2013
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Operations Proposal Pricing
FY 2010-FY 2013 Performance Indicator 54
Percent

• Ensure 90 of pricing reports completed within 45
  days or other mutually agreed upon due date

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Current State

• Proposal Pricing
• Over 300 Cost/Price Analysts have been added over
  the past 3-4 years
• Cost Monitoring Program has been reinvigorated
• Corporate Administrative Contracting Officers
  (ACO) and Divisional ACOs aligned into a Cost
  Price Center
• Integrated Cost Analysis Teams have been
  established at largest contractor facilities
  based on government sales
• Combined Business and Technical focus on
  contractor pricing
• Knowledge of cost models, cost estimating
  relationships, etc.

22
Current State

• Forward Pricing Rate Agreements (FPRA)/Forward
  Pricing Rate Recommendation (FPRR)
• Performance Indicator reporting has been
  suspended due to system issues
• Majority of FRPA/FPRRs issued from DCMA Cost and
  Pricing Center
• CACOs and DACOs reside in the Center
• DCMA Operations Directorate has responsibility
  for remainder of FPRA/FPRRs
• In FY 13, about 40 of all contractor divisions
  had FPRA coverage at one time or another
• Majority had FPRR coverage at a minimum
• Based on cost monitoring efforts, FPRAs have been
  pursued in advance of DCAA audit

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Current State

• On-time Delivery and Delinquency Reduction
• Surveillance planning and contractor engagement
  at facilities (CAGEs) represents greatest
  potential to influence and provide positive
  results
• DCMA Top 500
• Seeking total reduction in the volume of
  delinquent schedules across the board
• Affects ability to process contracts 180 days
  past final delivery date
• Focus on delinquent supply schedules greater than
  1 year

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On-Time Delivery Facilities (CAGEs) in the Top
500 Base of Influence

• Causal Factors
• Actual delinquency
• Data discrepancy
• Unrealistic contract requirement

Operations Directorate Operations Directorate Operations Directorate Operations Directorate Operations Directorate Operations Directorate Operations Directorate Operations Directorate Operations Directorate Operations Directorate Operations Directorate Operations Directorate
  Jan-Jun 2012 Jan-Jun 2012   Jul-Dec 2012 Jul-Dec 2012   Jan-Jun 2013 Jan-Jun 2013   Period To Date (Jul-Sep 2013) Period To Date (Jul-Sep 2013)
On Time Performance of Facilities of Total   of Facilities of Total   of Facilities of Total   of Facilities of Total
gt 90 55 11   55 12   51 12   62 14
75-90 145 30   110 24   129 30   109 24
lt75 289 59   297 64   256 59   281 62
Total 489     462     436     452  
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Past Due DelinquencyAll CAGEs
Operations Directorate Operations Directorate Operations Directorate Operations Directorate Operations Directorate Operations Directorate Operations Directorate Operations Directorate Operations Directorate
Delinquency Posture - By Volume/Type of Delinquency Delinquency Posture - By Volume/Type of Delinquency Delinquency Posture - By Volume/Type of Delinquency Delinquency Posture - By Volume/Type of Delinquency Delinquency Posture - By Volume/Type of Delinquency Delinquency Posture - By Volume/Type of Delinquency Delinquency Posture - By Volume/Type of Delinquency Delinquency Posture - By Volume/Type of Delinquency Delinquency Posture - By Volume/Type of Delinquency
Type of Delay EOP (30 Jun 2012) of Del EOP (31 Dec 2012) of Del EOP (30 Jun 2013) of Del Period to Date (30 Sep 2013) of Del
Supply Schedule 135,072 40 145,307 40 134,905 39 142,573 38
Service Schedule 198,667 60 217,586 60 215,463 61 237,178 62
Total 333,739   362,893   350,368   379,751  
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Partnering for Success

• Submit adequate and timely incurred cost
  proposals
• Pursue all contract closeout actions while
  awaiting final overhead rates
• Submit final vouchers in a timely manner
• Submit adequate and timely UCA proposals
• Pursue long term agreements on repetitive repairs
  
• Submit adequate and timely FPRA proposals
• Know what DCMA says your on time delivery rate is