dcma program support & program reporting

Oneteam,onevoicedeliveringglobalacquisitioninsight.

PresentedBy:

DCMAProgramSupport&ProgramReporting

EricPalmerDirector,MajorProgramSupportDivisionDefenseContractManagementAgency

January29,2020

Unclassified


•  DCMAProgramSupport/ProgramIntegration– Purpose– Triggers– UnderlyingFARrequirements

•  NewPARformat(effectiveAugust2019)– Changes/NDS– Analysis

•  EVM•  ProductDeliveries•  PrimeControlofSubcontractorsAssessment

Agenda

2

ProgramAssessmentReport(PAR)


DCMAProgramSupport

UNCLASSIFIED/FOUO

DCMAStrategicPlanObjective2.4:InfluenceaffordabilityandacquisitiondecisionsbyleveragingAgencydata

Purpose:ProvideDCMA’scustomerswithtimely,independent,predictive,acquisitioninsightbasedonouruniquefactory-floorperspective.


3


ProgramAssessmentReport

UNCLASSIFIED/FOUO

TheProgramAssessmentReport(PAR)istheprimaryvehicleforreportingprogramrisk,andtheissuesimpactingacontractor’sabilitytodeliverwarfighterproductson-timeandwithincontractualcost.

•  Producedmonthly(published6thbusinessdayofeachmonth)•  Customersinclude:

•  OSD/USD(A&S)•  ServiceAcquisitionStaff•  PEOs•  PMOs•  DoDIG•  GAO•  Congress

4


•  DCMAproducesPARson:§  ACATI/MDAPs+‒  EquivalentMDABallisticMissileDefenseSystem(BMDS)programelements‒  NavyStrategicSystemsPrograms(SSP)‒  Otherhigh-priorityprograms(ifDCMAresourcespermit)

•  PARproducedbyamultifunctionalteamconsistingofaProgramIntegratorandanyofthefollowing:

§  Engineers§  IndustrialSpecialists§  EarnedValueManagement

Analyst§  SoftwareSpecialists§  SafetyMonitors

§  AdministrativeContractingOfficer§  ContractAdministrator§  QualityAssuranceSpecialists


UNCLASSIFIED/FOUO 5


PARPopulation

UNCLASSIFIED/FOUO

48

3533

18

11

12

6

0

10

20

30

40

50

60

NAVY AIRFORCE ARMY MDA

MajorandNon-MajorReportingProgramsbyService

MAJOR NON-MAJOR

163reportingprograms*•  134Majorprograms(ACATI/equivalent)•  29Non-Majorprograms(<ACATI) *DataasofJanuary14,2020

6


FARReportingRequirement

•  FAR42.302(a).ThecontractingofficernormallydelegatesthefollowingcontractadministrationfunctionstoaCAO….–  (31)Performproductionsupport,surveillance,andstatusreporting,includingtimelyreportingof

potentialandactualslippagesincontractdeliveryschedules.–  (67)Supporttheprogram,product,andprojectofficesregardingprogramreviews,programstatus,

programperformanceandactualoranticipatedprogramproblems.

UNCLASSIFIED/FOUO 7


WhyRedesignthePAR?

•  PreviousPARformatdatestoformerOUSD(AT&L)DAESprocess–  DAESstillexists,butDCMAisnolongeractivelyinvolved

•  ChangeofinformationdemandsfromPARconsumers–  OUSD(A&S)emphasisonmeasuringNationalDefenseStrategyachievement–  Preferencefordashboards&metricsoverlengthytextreports–  FormanyPARconsumersquarterlyisnotoftenenough

8

TokeepDCMA’sProgramReportsrelevant,timelyandalignedwiththeinformationOSDisaskingforfromtheacquisitioncommunity


•  ContractCostandScheduleInformation-ExpectedCostattheendofContract-DCMA’sVarianceatCompleteforcontracts-MaximumNumberofMonthsanycontractualeventisDelayed

•  MajorEndItemDeliveryInformation-TotalonContract-NumberDeliveredoftheTotal-PercentOnTimeDeliveryforpast12months-Numberitemsdelayedorpredictedtobedelayed-Maximumnumberofmonthsanitemisdelayed

ContractTableContents

UNCLASSIFIED/FOUO

•  BasicContractInformation(ActiveContractsadministeredbyDCMA)

•  NumberofLevelIIIandIVCARsontheprogram(DiscussedintheRisk,Issue,Observation(RIO)Table)

•  BusinessSystemscurrentlydisapproved(detailsinsection4.0“BusinessSystems”)

11

Oneteam,onevoicedeliveringglobalacquisitioninsight. 12

PARContractTableColorCriteria

Costoverrun/underrunvsExpectedcost


DCMAusesEVMto:•  Provideindependentassessmentofcostandscheduleperformanceagainstthecontract

requirementsandestablishedbaseline•  Quantifycostandscheduleimpactsoftherisksandissuesourfunctionalspecialists

observeduringsurveillance,andto;•  Refinefocusoffunctionalspecialistsurveillanceactivities

Monthly:•  EvaluatequalityofIPMR/CPR•  PSTevaluatesvariancestoidentifycostdrivers,includingrootcause,correctiveaction,

andimpact(RIO)

Quarterly:•  Developbottoms-upEACDCMAandECDDCMA,incorporatingPST-identifiedrisk

adjustments

ProgramEVMAnalysis

UNCLASSIFIED/FOUO 13


•  EvaluatequalityofIPMRtoensuredataisacceptableforEVMAnalysis–  Qualityindicators–  CDRL/DIDcompliance

•  Reviewtrippedindicators•  RecommendtoPMOtoaccept/rejectCDRL•  IssueCorrectiveActionReport(CAR)for

contractualnoncomplianceofmissing/lateEVMCDRLdeliverableorincorrectCDRLdata

•  DiffersfromEVMSystemSurveillancecompliancereviewsandbusinesssystemCAR

EVMQualityIndicators-Monthly

UNCLASSIFIED/FOUO

CostQualityIndicators ScheduleQualityIndicatorsBCWSCUM>BAC Logic-MissingPredecessors

BCWPCUM>BAC Logic-MissingSuccessors

ACWPCUM(NoBAC) Dates-IncorrectStatus-Start

ACWPCUR(NoBAC) Dates-IncorrectStatus-Finish

NegativeBACorEAC Dates-PlannedStartinthePast

NegativeBCWS Dates-PlannedFinishinthePast

NegativeBCWP Dates-ActualStartintheFuture

BCWP(NoACWP) Dates-ActualFinishintheFuture

100%CompwithETC Dates-RidingData

Incompletew/oETC MilestoneswithDuration

ACWPon100%Comp MissingWBS

ACWP>EAC

BCWP(NoBCWS)

14


•  ApplycontractthresholdsforVarianceAnalysisReporting–  Ensurereportingmeetscontractrequirements

•  IdentifyWBSelementsthatsignificantlycontributetooverallcontractvariances•  PSTevaluatessignificantvariances

–  Adjustsurveillance–  Provideinsighttorootcause,correctiveaction,andimpact

EVMVarianceAnalysis-Monthly



•  Contract%Completecalculatedinoneofthreeways:� Costexpended� Timespent� MajorEndItemsdelivered

•  IthastoaccountforprogressonEVMandnon-EVMCLINs•  CLINlevel%CompleteisrolleduptotheContractlevelusingaweightedaverage

ProgramEVMAnalysis



ProgramEVMAnalysis

UNCLASSIFIED/FOUO

•  ExpectedCostiscombinationof:� TotalAllocatedBudget(EVMKt)orContractValue(non-EVMkt),and;� DCMA-projectedVarianceatCompletion(Contracts/CLINwithEVM)� DCMA-projectedOverruns(Contracts/CLINwithoutEVM)� IfattheCLINlevel,rolleduptocontractlevel

•  DCMA%VACiscalculatedusingtheDCMA-projectedVarianceatCompletionandnon-EVMOverruns

17


•  DevelopingtheEACDCMA

•  Bottoms-upEAC,attheWBSlevel:–  Applyperformancefactortocalculatemost-relevantEAC–  Applyquantifiedriskadjustments,providedbythePST–  ConsiderTCPI/CPIrealismandrangeofEACbystandardPerformanceFactors

•  Rolluptocontractlevel

ProgramEVMAnalysis:Quarterly



•  DevelopingtheEACDCMA,cont:•  AttheContractlevel:

–  EvaluateMRconsumption,andapplyprojectedMRusage

–  Applyquantifiedriskadjustments,providedbythePST(notalreadyattheWBSlevel)

•  EvaluateEACRealism:–  CPI/TCPIratio–  rangeofEAC–  CVtoVAC





UNCLASSIFIED/FOUO

•  MonthsDelayedistheworst-caseDCMAprojectionof:•  MEIdeliverydelays•  ContractualMilestone/EventEVMscheduleanalysisdelays

20


•  DevelopingtheECDDCMA1.  ApplyPSTassessedimpactsattaskleveltoscheduleanalysistool

2.  RunsimulationstodetermineDCMA-projectedCompletiondate(contract/milestone/contractualeventlevel),thisexampleshowsa2.5monthsliptocontract




MajorEndItem(MEI):AtermadaptedbyDCMAfordeliveryanalysisfocusingonproductionunitsofanitem,definedsetofitems,kit,oracompletesystemthatembodiesthecorepurposeorcapabilityoftheprogramandisdeliveredforoperationaluse(e.g.aircraft,missile,unmannedaircraftsystem).MEIstypicallydonotincludesupportitemssuchastestarticle,spares,trainingequipmentortechnicalservices.

MajorEndItem


•  RIOsidentifythetoprisksandissuesdrivingthecostandscheduleprojections,provides:

Risk,Issue,Observation(RIO)

•  Contractor-identifiedRootCauseandCorrectiveAction•  DCMAassessmentoftheContractorRootCauseandCorrectiveAction

DCMAprojectedImpactPSTprovidesWBS/TaskLevelimpactEVMAnalystappliesthePST-providedimpactanddeterminesthecontract-levelImpact

24


•  Identifythecontractimpactforrisks,issues,andopportunities(note:costimpactssameatWBSandcontractlevel,scheduleimpactsrequireanalysis)

Risk,Issue,Observation(RIO)

UNCLASSIFIED/FOUO

1:TakePSTassessedimpactsatTaskLevel

2:Applytoscheduleanalysistoolandrunsimulation

3:Identifythecontractlevelimpact

25


Approach:

1.  Primecontractorownsresponsibilityformanagingitssubcontractors

2.  DCMAownsresponsibilityforensuringPrimecontractorhaseffectivemanagementsystemsandprocessesinplacetomanageitssubcontractors

PrimeControlofSubcontractorsAssessment(PCSA)



•  ThePCSAJobAidisdesignedtoprovidethetechnicalspecialistwiththepropertoolsnecessarytodeterminewhetherthePrimehascontroloversubcontractors.

•  ThePCSAJobAidisbasedontheInternationalAerospaceQualityGroup(IAQG)supplierselectionmaturitymodel.

•  TheIAQGmaturitymodelisbasedontheAS9100standard.

•  PCSAJobAidfieldedtohelpCMOsbetterunderstandandassessthematurityandeffectivenessofanygivenprimecontractorsuppliermanagementprocesses.





UNCLASSIFIED/FOUO

TheJobAidincludesthesesixsurveillanceprocesses:

§  SourcingStrategy§  PurchasingProcess§  WorkTransfer§  SupplierPerformanceMonitoring§  SupplierSurveillance§  ContinuousAssessment

EachofthesesixprocesseshavefourBusinessDomainso  Process,o  PeopleandOrganization,o  ToolsandData,o  PerformanceMetrics

24TotalElements

Industrial Specialist Late Deliveries

Quality

Non-Conforming Material ACO/CA

Contract Modification

Engineering Configuration Management

Software

Late Deliveries, Non-Conforming Material, Configuration Management

Functional Specialist’s Key Indicator Examples

28


PCSAJobAidGeneralFormat

Oneteam,onevoicedeliveringglobalacquisitioninsightthatmatters.

ThesearethesixareasthatDCMAevaluatesrelatedtoacontractor’ssubcontractmanagementprocessesandsystems:

Notmeanttocovereverycontractor’sprocess(i.e.,theremaybemultiple‘systems’or‘processes’involved)butareadaptedtofollowthoseprimarycategoriesaddressedintheAS9100standard.

Ø  SourcingStrategy-Makeorbuyprocessandmappingofthesupplychainresponsibilities,includingpartners,suppliers…;Sourcing,Negotiating,&ContractinginlinewithMakeorBuystrategyandApprovingsuppliers

Ø  PurchasingProcess-Managingreviewandflowdownofcontractrequirementsfromthecustomers,throughallfunctionsinternallyandtosuppliers

Ø  WorkTransfer-WorkTransfer,bothinternalandexternal,includingpartners,suppliers…;Sourcing,Negotiating,&ContractinginlinewithWorkTransferstrategyandApprovingsuppliers

Ø  SupplierPerformanceMonitoring-ReviewandcontinualimprovementofSupplyChainperformance;overallprocessmanagementtomeetcustomersatisfactionandbusinessobjectivesthroughoutLifeCycle.

Ø  SupplierSurveillance-Operationalmonitoring&surveillanceofsupplierstoensurepurchasedproducts/servicesmeetcustomerrequirements.Workingwithsupplierstomeasure&continuallyraisetheirperformancelevels.

Ø  ContinuousAssessment-Assessmentofprimecontractorcorrectiveactionprocess

PCSA:SixSurveillanceProcesses

29



UNCLASSIFIED/FOUO

Step#1–ReadandunderstandwhatthePrimeContractor’sCommandMediasaysabouteachoftheProcesses.Assessthematurityofthoseprocessesagainsttheabovematuritylevels.Step#2–HowwelldoesthePrimeContractor’sworkforceperformtothatCommandMedia,asdeterminedbysurveillance?

30


•  PCSAscores<3resultinRIO(s)detailingwhattheprimecontractorfailedtodo•  OptionaltoappearinthePAR

•  ResultsfromPCSAshavebeenusedinPMOCPARS




PARStorageandAccess?

DoD’sAcquisitionInformationRepository(AIR)https://www.dodtechipedia.mil/dodc/plugins/AIR/airdocuments.action

34


AIRDocumentSearch

PermitssearchonDocumentMetadata:•  Service,Program,DocumentType,etc

35

Oneteam,onevoicedeliveringglobalacquisitioninsight. 36

PARDistribution

ForU.S.Governmentuseonly•  U.S.militaryservicemembers•  U.S.Governmentcivilians•  DCMAdoesnotauthorizedistributiontosupportcontractors


Backup

37

Questions?

37

dcma program support & program reporting

Documents