defense regulations richard vinton raytheon company

Defense RegulationsDefense Regulations

Richard VintonRichard Vinton

Raytheon CompanyRaytheon Company

RMC Auditor WorkshopRMC Auditor Workshop

June 21-22, 2007June 21-22, 2007

Defense RegulationsDefense Regulations

What are we going to cover?What are we going to cover?• US DoD RegulationsUS DoD Regulations

Federal Acquisition Regulations (FARs)Federal Acquisition Regulations (FARs)Defense Federal Acquisition Regulations Defense Federal Acquisition Regulations

Supplement (DFARS)Supplement (DFARS)

• GIDEPGIDEP

• Other Industry IssuesOther Industry Issues


June 21-22, 2007June 21-22, 2007

FARsFARs

1.101 Purpose.The Federal Acquisition Regulations System is establishedfor the codification and publication of uniform policies andprocedures for acquisition by all executive agencies. The FederalAcquisition Regulations System consists of the FederalAcquisition Regulation (FAR), which is the primary document,and agency acquisition regulations that implement orsupplement the FAR. The FAR System does not include internalagency guidance ……..


June 21-22, 2007June 21-22, 2007

FARsFARs

1.103 Authority.(a) The development of the FAR System is in accordancewith the requirements of the Office of Federal ProcurementPolicy Act of 1974 (Pub. L. 93-400), as amended byPub. L. 96-83.(b) The FAR is prepared, issued, and maintained, and theFAR System is prescribed jointly by the Secretary of Defense,the Administrator of General Services, and the Administrator,National Aeronautics and Space Administration, under theirseveral statutory authorities.


June 21-22, 2007June 21-22, 2007

FARsFARs

1.104 Applicability.The FAR applies to all acquisitions as defined in Part 2 ofthe FAR, except where expressly excluded.

Basically used for all US Government procurements URL (http://www.arnet.gov/far/)

• Volume I contains Parts 1-51 (1130 pages) General Structure & Subparts

• Volume II Contains Parts 52, 53 & index (773 pages)

Solicitation Provisions


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June 21-22, 2007June 21-22, 2007

FAR vs AS9100FAR vs AS9100

FARFAR 4.7 Contractors Records

Retention Part 9 – Contractor

Qualifications 9.405-2 Restrictions on

subcontracting. Part 42 – Contract Admin &

Audit Services Part 45 – Government Property 46.2-3 Contract Quality

Requirements/Clauses 46.5-6 Acceptance Part 52 – Solicitation Provisions

and Contract Clauses

AS9100AS9100 4.2.4 Control of Records

7.4 Purchasing

7.4.1 Purchasing Process

7.4.2 Purchasing Information

7.5.4 Customer Property 7.2 Customer Related Processes 8.2 Monitoring and Measuring 7.4 Purchasing


June 21-22, 2007June 21-22, 2007

FAR FAR vsvs AS9100AS9100 and and ExpectationsExpectationsFARFAR

4.7 Contractors Records Retention

This subpart provides policies and proceduresfor retention of records by contractors to meet the records review requirements of the Government….. contractors shall makeavailable records, which includes books,

documents, ….(1) 3 years after final payment or, for certain

records;(2) The period specified in 4.705 through

4.705-3, whichever of these periods expires first.

AS9100AS9100 4.2.4 Control of RecordsA documented procedure shall be established

to define the controls needed for the

identification, storage, protection, retrieval,

retention time and disposition of records

Records shall be available for review by

customers and regulatory authorities in

accordance with contract or regulatory

requirements.

When auditing records, verify the clients knowledge of When auditing records, verify the clients knowledge of FAR requirements for access & retention of recordsFAR requirements for access & retention of records


June 21-22, 2007June 21-22, 2007

FAR FAR vsvs AS9100AS9100 and and ExpectationsExpectations

FARFAR Part 9 – Contractor

QualificationsThis subpart prescribes policies, standards, and

procedures or determining whether

prospective contractors and subcontractors

are responsible. (see 9.104 for criteria)

AS9100AS9100 7.4 PurchasingThe organization shall evaluate and select

suppliers based on their ability to supply

product in accordance with the organization’s

requirements. Criteria for selection,

evaluation and re-evaluation shall be

established.

Viable criteria is established to validate a supplier’s Viable criteria is established to validate a supplier’s capability/probability to fulfill contractual requirementscapability/probability to fulfill contractual requirements


June 21-22, 2007June 21-22, 2007


FARFAR 9.405-2 Restrictions on

subcontracting

..Protecting the Government’s Interests

When Subcontracting with Contractors

Debarred, Suspended or Proposed

for Debarment, contractors shall not enter

into any subcontract in excess of $25,000

with a contractor that has been debarred,

suspended, or proposed for debarment

unless there is a compelling reason to do

so. If a contractor intends..

AS9100AS9100 7.4.1 Purchasing ProcessThe organization shall evaluate and select

suppliers based on their ability to supply

product in accordance with the organization’s

requirements. Criteria for selection, evaluation

and re-evaluation shall be established

Ensure that the source selection process includes review of the Ensure that the source selection process includes review of the “Excluded Parties List”“Excluded Parties List”


June 21-22, 2007June 21-22, 2007


FARFAR Part 42 – Contract Admin &

Audit ServicesThis part prescribes policies and procedures

for assigning and performing contract

administration and contract audit services….

(including surveillance activities)

AS9100AS9100 7.4.2 Purchasing Information

i) right of access by the organization, their

customer, and regulatory authorities

to all facilities involved in the order and to

all applicable records,

Procedures allow “right of access”, review any audit Procedures allow “right of access”, review any audit surveillance reportssurveillance reports, discuss activities with resident customer reps., discuss activities with resident customer reps.


June 21-22, 2007June 21-22, 2007


FARFAR Part 45 – Government PropertyThis part prescribes policies and

procedures for providing Government

property to contractors, contractors’ use

And management of Government

property, and reporting, redistributing,

and disposing of contractor inventory….

AS9100AS9100 7.5.4 Customer PropertyThe organization shall exercise care with

customer property while it is under the

organization’s control or being used by the

organization. The organization shall identify,

verify, protect and safeguard customer

property provided for use or incorporation into

the product. If any customer property is lost,

damaged or otherwise found to be unsuitable

for use, this shall be reported to the customer

When Government Property is involved there additional FAR/DFAR When Government Property is involved there additional FAR/DFAR requirements beyond those cited in AS9100, the Government conducts requirements beyond those cited in AS9100, the Government conducts periodic surveys of the contractor’s property system, check for current periodic surveys of the contractor’s property system, check for current reports and/or issues raised.reports and/or issues raised.


June 21-22, 2007June 21-22, 2007


FARFAR 46.2-3 Contract Quality

Requirements/ClausesThis part prescribes policies and procedures to

ensure that supplies and services acquired

under Government contract conform to the

contract’s quality and quantity requirements.

Included are inspection, acceptance, warranty,

and other measures associated with quality \

requirements.

AS9100AS9100 7.2 Customer Related ProcessesDetermination of Requirements Related to the Product: The organization shall determinea) requirements specified by the customer, including the requirements for delivery andpost-delivery activities,b) requirements not stated by the customer but necessary for specified or intended use, where known,c) statutory and regulatory requirements related to the product, andd) any additional requirements determined by the organization.

In addition to verify procedures exist, pull actual requirements In addition to verify procedures exist, pull actual requirements from a contract and validate compliancefrom a contract and validate compliance


June 21-22, 2007June 21-22, 2007


FARFAR 46.5-6 AcceptanceAcceptance constitutes acknowledgment

that the supplies or services conform

With applicable contract quality and

quantity requirements, except as provided

in this subpart and subject to other terms

and conditions of the contract.

AS9100AS9100 8.2 Monitoring and MeasuringProduct release and service delivery shall not

proceed until all the planned arrangements (see

7.1) have been satisfactorily completed,

unless otherwise approved by a relevant

authority and, where applicable, by the

customer.

Verify acceptance criteria satisfies contractual requirements, Verify acceptance criteria satisfies contractual requirements, if not, differences are covered by waiver/contract modif not, differences are covered by waiver/contract mod


June 21-22, 2007June 21-22, 2007


FARFAR Part 52 – Solicitation Provisions

and Contract ClausesGives instructions for using Part 52, including

the explanation and use of provision and

clause numbers, prescriptions, prefaces, and

the matrix; (b) Prescribes procedures for

incorporating, identifying, and modifying

provisions and clauses in solicitations and

contracts, and for using alternates; and

(c) Describes the derivation of FAR provisions

and clauses

AS9100AS9100 7.4.2 Purchasing InformationPurchasing information shall describe the

product to be purchased, including where

Appropriate (sub paragraphs a-j)

The organization shall ensure the adequacy of

specified purchase requirements prior to

their communication to the supplier.

FAR part 52 is typically contained within a contractors Terms FAR part 52 is typically contained within a contractors Terms & Conditions – T&Cs should be reviewed periodically to & Conditions – T&Cs should be reviewed periodically to ensure they’re current, also query the organization as to why ensure they’re current, also query the organization as to why they flow them to their supply basethey flow them to their supply base


June 21-22, 2007June 21-22, 2007

DFARSDFARSDoD implementation and supplementation of the FAR is issued in the Defense Federal Acquisition Regulation Supplement (DFARS) under authorization and subject to the authority, direction, and control of the Secretary of Defense. The DFARS contains—(i) Requirements of law;(ii) DoD-wide policies;(iii) Delegations of FAR authorities;(iv) Deviations from FAR requirements; and(v) Policies/procedures that have a significant effect beyond the internal operating procedures of DoD or a significant cost or administrative impact on contractors or offerors.

http://http://www.acq.osd.mil/dpap/dars/dfarswww.acq.osd.mil/dpap/dars/dfars//


June 21-22, 2007June 21-22, 2007


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DFARS DFARS - - Supplements toSupplements to FAR FAR211.204 Solicitation provisions and contract

clauses.

(c) When contract performance requires use of

specifications, standards, and data item descriptions

that are not listed in the Acquisition Streamlining and

Standardization Information System database, use

provisions, as appropriate, substantially the same as

those at—

(i) 252.211-7001, Availability of Specifications,

Standards, and Data Item Descriptions Not Listed in

the Acquisition Streamlining and Standardization

Information System (ASSIST), and Plans, Drawings,

and Other Pertinent Documents; and

(ii) 252.211-7002, Availability for Examination of

Specifications, Standards, Plans, Drawings, Data Item

Descriptions, and Other Pertinent Documents.

11.204 Solicitation provisions and contract clauses.

( (c) The contracting officer shall insert a provision Substantially the same as the provision at 52.211-3, Availability of Specifications Not Listed in the GSA Index of Federal Specifications, Standards and Commercial Item Descriptions, in solicitations that cite specifications that are not listed in the Index and are not furnished with the solicitation, but may be obtained from a designated source.

May affect activities associated with May affect activities associated with 7.2, 7.3, 7.4, 7.5 – can take into 7.2, 7.3, 7.4, 7.5 – can take into account commercial/contractor account commercial/contractor documentsdocuments


June 21-22, 2007June 21-22, 2007

DFARS DFARS - - Supplements toSupplements to FAR FAR211.273 Substitutions for military or Federal

specifications and standards.

211.273-1 Definition.

“SPI process,” as used in this section, is defined in

the clause at 252.211-7005, Substitutions for Military

or Federal Specifications and Standards.

211.273-2 Policy.

(a) Under the Single Process Initiative (SPI), DoD

accepts SPI processes in lieu of specific military or

Federal specifications or standards that specify a

management or manufacturing process.

(b) DoD acceptance of an SPI process follows the

decision of a Management Council, which includes

representatives of the contractor, the Defense

Contract Management Agency, the Defense Contract

Audit Agency, and the military departments.

11.204 Solicitation provisions and contract clauses.

( (c) The contracting officer shall insert a provision Substantially the same as the provision at 52.211-3, Availability of Specifications Not Listed in the GSA Index of Federal Specifications, Standards and Commercial Item Descriptions, in solicitations that cite specifications that are not listed in the Index and are not furnished with the solicitation, but may be obtained from a designated source.

May affect activities associated with May affect activities associated with 7.2, 7.3, 7.4, 7.5 – SPIs are typically 7.2, 7.3, 7.4, 7.5 – SPIs are typically used as contract modsused as contract mods


June 21-22, 2007June 21-22, 2007

UID UID (7.5.3)(7.5.3)DFAR 211.274-2 Policy for unique item identification.(a) It is DoD policy that DoD unique item identification, or a DoD recognized uniqueidentification equivalent, is required for—(1) All delivered items for which the Government’s unit acquisition cost is $5,000 or more;(2) Items for which the Government’s unit acquisition cost is less than $5,000,when identified by the requiring activity as serially managed, mission essential, or controlled inventory;(3) Items for which the Government’s unit acquisition cost is less than $5,000, when the requiring activity determines that

permanent identification is required; and(4) Regardless of value—(i) Any DoD serially managed subassembly, component, or part embedded within a delivered item; and(ii) The parent item (as defined in 252.211-7003(a)) that contains the embedded subassembly, component, or part.(b) Exceptions. The Contractor will not be required to provide DoD unique itemidentification if—(1) The items, as determined by the head of the agency, are to be used to support a contingency operation or to facilitate defense against or recovery from nuclear, biological, chemical, or radiological attack; or(2) A determination and findings has been executed concluding that it is more cost effective for the Government requiring activity to assign, mark, and register the unique item identification after delivery of an item acquired from a small business concern or a commercial item acquired under FAR Part 12 or Part 8.(i) The determination and findings shall be executed by—(A) The Component Acquisition Executive for an acquisition category (ACAT) I program; or(B) The head of the contracting activity for all other programs.(ii) The DoD Unique Item Identification Program Office must receive a copy of the determination and findings required by paragraph (b)(2)(i) of this subsection. Send the copy to DPAP, SPEC ASST, 3060 Defense Pentagon, 3E1044, Washington, DC 20301-3060; or by facsimile to (703) 695-7596.


June 21-22, 2007June 21-22, 2007

GIDEP GIDEP (7.3, 7.4, 8.)(7.3, 7.4, 8.)What is GIDEP?GIDEP (Government-Industry Data Exchange Program) is a cooperative activity between government and industry participants seeking to reduce or eliminate expenditures of resources by sharing technical information essential during research, design, development, production and operational phases of the life cycle of systems, facilities and equipment.

What does GIDEP have to offer?Since GIDEP's inception, participants have reported over $1 BILLION in prevention of unplanned expenditures. That means without GIDEP, participants could have potentially realized additional expenses of over $1 billion. Proper utilization of GIDEP data can materially improve the total quality and reliability of systems and components during the acquisition and logistics phases of the life cycle and reduce costs in the development and manufacture of complex systems and equipment.


June 21-22, 2007June 21-22, 2007


June 21-22, 2007June 21-22, 2007

Berry Ammendment Berry Ammendment (7.4)(7.4)DFAR 225.7000 Scope of subpart.(a) This subpart contains restrictions on the acquisition of foreign products and services, imposed by DoD appropriations and authorization acts and other statutes. Refer to the acts to verify current applicability of the restrictions.(b) Nothing in this subpart affects the applicability of the Buy American Act or the Balance of Payments Program.225.7002-1 Restrictions.The following restrictions implement 10 U.S.C. 2533a (the “Berry Amendment”). Except as provided in subsection 225.7002-2, do not acquire—(b) Specialty metals, including stainless steel flatware, unless the metals were melted in steel manufacturing facilities located within the United States. (For guidance on dealing with noncompliance with this requirement, see PGI 225.7002-1(b).)

See DoD Class Deviation 2006-O0004, Restriction on Procurement of Specialty Metals, issued on December 6, 2006. This deviation is effective until incorporated into the DFARS or rescinded.


June 21-22, 2007June 21-22, 2007

RoHS RoHS (7.3)(7.3)The RoHS Directive stands for "the restriction of the use of certain hazardous substances in electrical and electronic equipment". This Directive bans the placing on the EU market of new electrical and electronic equipment containing more than agreed levels of lead, cadmium, mercury, hexavalent chromium, polybrominated biphenyl (PBB) and polybrominated diphenyl ether (PBDE) flame retardants.

Manufacturers need to understand the requirements of the RoHS Directive to ensure that their products, and their components, comply.

Studies of the effect of “lead free“ in Aerospace has been and isStudies of the effect of “lead free“ in Aerospace has been and is still ongoing!still ongoing!


June 21-22, 2007June 21-22, 2007

CSI CSI (7.3, 7.4, 7.5)(7.3, 7.4, 7.5)

AIA is currently working with Mr. Allen on revising the CSI AIA is currently working with Mr. Allen on revising the CSI HandbookHandbook


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June 21-22, 2007June 21-22, 2007

Referenced Web SitesReferenced Web Sites

Federal Acquisition Regulations (FAR)Federal Acquisition Regulations (FAR)• http://www.arnet.gov/far/http://www.arnet.gov/far/

Defense FAR Supplememnt (DFAR)Defense FAR Supplememnt (DFAR)• http://www.acq.osd.mil/dpap/dars/dfars/http://www.acq.osd.mil/dpap/dars/dfars/

Excluded Parties List (Debarred)Excluded Parties List (Debarred)• http://www.epls.gov/http://www.epls.gov/

ASSIST Data BaseASSIST Data Base• http://assist.daps.dla.mil/online/start/http://assist.daps.dla.mil/online/start/

GIDEPGIDEP• http://www.gidep.org/http://www.gidep.org/

defense regulations richard vinton raytheon company

Documents

far system

disposition of records

retention of records

rmc auditor workshop

control of records

available records

contractors records

certain records