Military Equipment Procurement Supplier Quality Assurance

ASQ Presentation06 November 2015

Breakout Speaker

• Vernon Purcell– Quality Assurance Manager Calgary– Department of National Defence

• Directorate of Quality Assurance– Calgary Workcentre

Outline

• Military equipment procurement process;• Contract Clauses - Quality;• Risk management and quality assurance at

supplier facilities; and• Current trends in weapon system management

& long-term in-service support contracts• Question period

Participants

• Your information needs?• What role do you perform in your

organization?

Military Procurement

Operations

• Navy• Army• Air Force• Joint Deployments

Equipment Program Management Support

• Navy (Maritime), Army (Land), Air Force

• Major Project Delivery• International & Industry

Programs

Military Procurement

• Department of National Defence buys a wide range of supplies and equipment

• Basic Supplies– Buy direct from Industry– Use Acquisition Cards, Local Purchase

Orders and Standing Offers• Military Equipment Spares & Supplies

– Within financial limit - Direct from Industry

Military Procurement

• Military Equipment over Financial Limit– Equipment Program Management processes– $$, Funds Approval, Technical Details, Quality

Details, Supply & Logistics Details – Defence creates requisition– Defence sends the requisition over to Public

Works & Government Services Canada (PWGSC) for the contracting process

Military Procurement

• PWGSC deals with Industry• Electronic “Buy and Sell” Process • Requests for quotation, proposals,

contract award• PWGSC Web Site has very detailed information

Military Procurement

• Major Defence Equipment Procurement• Ships, Vehicles, Aircraft, Weapons

– Senior Level Strategy– Canada First Defence Strategy– Defence Acquisition Guide– Several other Government Departments

involved – Treasury Board, PWGSC, Industry Canada, Regional Agencies

Military Procurement - SummaryUser / Operational Need

Equipment Program Management Requisition Process

PWGSC Contracting Process

Contract Awarded to Defence Industry Contractor

If QAC “Q” Quality Assurance at Source of Supply

DND QA will be conducted at contractor facility

Military Procurement

• Any comments or questions?

Contract Clauses - Quality

• Contracts awarded to Canadian Industry– Basic supplies

• subject to receipt inspection at receiving Unit or Depot

– Military Supplies ~ non-complex• Quality Assurance Code “C”• Compliance with ISO 9001:2008• Provide evidence of conformance (~ C of C)• Subject to inspection & verification at receiving

Unit or Depot

Contract Clauses - Quality

• Contracts awarded to Canadian Industry– Military Supplies and Equipment ~ Complex – Quality Assurance Code “Q”– Subject to Quality Assurance at the contractor

(or subcontractor) facility– Standard Acquisition Clauses and Conditions

(SACC) Manual Clauses• D5510C DND QA at Source of Supply• D5540C Compliance with ISO 9001:2008• others (Packaging, Marking, Delivery, C of C)

Risk Management & Quality Assurance

• Canadian Contracts with QAC “Q”• Foreign Defence Contracts with Quality

Assurance at the source of supply – USA, NATO, other Nations with agreements– Canadian Personnel will represent the

Foreign Defence Departments• No direct cost to contractor supplying products /

services

Risk Management & Quality Assurance

HalifaxMontreal

Toronto

Vancouver

Victoria

Edmonton

Calgary London

Kitchener

Gatineau

NATIONAL HQ

Quebec City

Mirabel

Longueuil

Winnipeg

.

..

.

Kingston

Risk Management & Quality Assurance

• Government Quality Assurance– Contract review and post award meeting– Risk analysis– Quality audit planning– Quality auditing

• System audit, Process audit, Product audit

– Corrective Action – Product Release / Delivery

Risk Management & Quality Assurance

• Risk Management– Follow Project Management Guidelines

• Product Risk• Supplier (Contractor) Risk

• Quality Assurance Auditing– ISO 9001:2008– ISO 19011 Auditing Guidelines– NATO Allied Quality Assurance Publication

2070 Mutual Government QA

Risk Management & Quality Assurance

• Goal of DND Supplier Risk Management and Quality Assurance auditing

– Establish Confidence in the supplier

– Maintain Confidence in the Supplier

Trends

• Longer Term Contracts• Optimized Weapon System Support

Contracts• In-service Support Contracts• Standing Offer Contracts• Supply Arrangements (Basic Ordering

Agreements)

Trends

• ISO 9001:2008 to ISO 9001:2015• Quality Management System Registration

Certification not mandatory to bid– Focus is on compliance to Standard

• Value versus Lowest Price• Build longer term supplier relationships• Commercial versus military specification

Trends

• Military use of Quality Management Systems– Defence Suppliers – ISO 9001– Fleet Maintenance Facilities – ISO 9001– 202 Workshop – ISO 9001– Major Supply Depots – ISO 9001– CF Recruiting – Process Manual – ISO 9001– Air Maintenance Squadrons – AF9000+ and

Airworthiness Accreditation

Questions???