regulatory outlook: where we’ve been; where we’re going presented by: tom ruckdaschel july 25,...
DESCRIPTION
DCMA Mission We provide contract administration services to the Department of Defense acquisition enterprise and its partners to ensure delivery of quality products and services to the warfighter; on time and on costTRANSCRIPT
Regulatory Outlook:Where we’ve been; where we’re going
Presented By:
Tom Ruckdaschel July 25, 2011
The information contained in this presentation represents only the personal views of the presenter and not necessarily those of the United States Government, DoD or DCMA. The information presented should not be construed as changing or modifying any statute, regulation, DoD or DCMA policy or guidance, or any term(s) of any contract with the United States Government or any department or agency of the United States Government. The information presented also does not affect in any way, any on-going or future property management system analysis
DCMA Mission
We provide contract administration services to the Department of Defense acquisition enterprise and its partners to ensure delivery of quality products and services to the warfighter; on time and on cost
Where DCMA Fits Under DoD
Under Secretaryof Defense
(Acquisition, Technology & Logistics)
ChairmanJoint Chief of Staff
ArmyNavy
Air ForceMarine Corps
Secretaryof
Defense
(Combat Support Agency)Assistant Secretary of Defense
(Acquisition)
OperationsDirectorate
InternationalDirectorate
Special Programs Directorate
Office of the Director
Human Capital
Directorate
Finance Business
OperationsDirectorate
Contracts Directorate
Engineering & Analysis Directorate
Quality Directorate
Portfolio Management & Integration Directorate
Information Technology Directorate
Chief of Staff
ReserveAffairs
CorporateSupport
Office of Independent Assessment
AircraftOperationsDirectorate
EEO
General Counsel
StrategicEffects
Eastern Region Western RegionCentral Region
PrimaryCMO
StreamlinedCMO
PrimaryCMO
StreamlinedCMO
PrimaryCMO
StreamlinedCMO
Strategic
Operational
Tactical
Organizational Structure
Our CONUS Presence
Western CMOsHeadquarters – Carson
•Denver•Boeing Huntington Beach•Lathrop•Lockheed Martin Denver•Boeing Long Beach•Los Angeles•Palmdale•Phoenix•Santa Ana•Lockheed Martin Sunnyvale•Raytheon Tucson•NPO
Central CMOsHeadquarters - Chicago
•Chicago•Dallas•Dayton•Detroit•Lockheed Martin Forth Worth•Bell Helicopter Forth Worth•Huntsville•Boeing St. Louis•Twin Cities•AMP•AIMO
Eastern CMOsHeadquarters - Boston
•Atlanta•Baltimore•Boston•Garden City•Hartford•Manassas•Lockheed Martin Marietta•Lockheed Martin Moorestown•Orlando•Philadelphia•Boeing Philadelphia•Sikorsky Aircraft•Springfield•Raytheon Tewksbury•APO•NSEO
Special Programs
•Special Programs East
•Special Programs South
•Special Programs West
Our International Presence
Our Core Functions
• Contract Management• Cost and Pricing• Property and Plant Clearance• Quality Assurance • Engineering and Analysis Support• Delivery Schedule Management• Earned Value Management• Contract Safety • Transportation
FAR 42.302(a)(b)
Property and Plant Clearance
• Four Business Areas:• Property Group(CONUS)• DCMA International (OCONUS)• Contingency Contracting (Iraq/Afghan)• Special Programs
• Ensure contractors meet FAR/DFARS requirements
• Provide effective and efficient oversight & surveillance (property audits)
• Perform reutilization screening (of excess property, as required) [Plant Clearance Group]
• Evaluate contractor reported property loss, damage, destruction, theft
Current Environment
• Government property management continues to evolve• Regulations, policies, standards, procedures• People (competencies, process analyses)• New DAU property course (IND 105)!• Technology
• Regulations (FAR/DFARS) have:• Refreshed• Transformed• Clarified; updated• Improved (and, yes, challenged)
• As 2012 approaches—• Most major “federal” regulatory changes appear complete• New (DoD) rules will seek to improve on established baselines
Observations
• Five year learning curve--beginning with FAR rule 2007 • Understanding the context
• Learning new language and requirements
• Negotiating• Revising procedures to conform
• Resolving• Resolving disputes/interpretation
• Settling down• Agreeing on new baselines
• Improving (moving forward)• Self assessments/new sense of audit protocols
We’re about here!
Observations (cont.)
• We’re now seeing different aspects of Govt property management melding together• Finance, logistics, property accountability• Sustained “thirst for information” from DoD Military
Services/DoD Components• DoD seeking common processes for obtaining standard data
• We see this in:• “Ask a Professor” responses: many “property” questions now
deal with “non” contract property issues; e.g., logistics, finance, UID, Govt property accountability
• New DAU course on GFP (CLC 051) revealed the integrated policy environment; e.g., GFP as it effects program managers, property administrators, and contracting officers
Today’s Regulatory Baseline
• Two property clauses published in the last five (5) years• 52.245-1 (June 2007)• 52.245-1 (August 2010)
• Both stem from the same major reform effort• Four new DFARS clauses now in place:
• 252.211-7007—Reporting GFE to the UID registry• 252.245-7001—Tagging, Labeling and Marking of GFP• 252.245-7002—Reporting Loss of Government Property• 252.245-7003—Contractor Property Management System
• Plus…Procedures, Guidance and Information 2010-001
Baseline (cont.)
• Four new property cases in play• FAR Case 2010-009• DFARS Case 2009-D008• DFARS Case 2009-D043 • DFARS Case 2010-D018
Overview: FAR Case 2010-009
• Proposed rule published April 4, 2011; public comment period ended June 5, 2011
• Major changes include:• New/revised definition of unit acquisition cost• Clarification of plant clearance policy• Revision of contractor scrap requirements; including deletion of
requirement for Govt approval of contractor scrap procedures• New/clarified policy on property abandonment• Revised Contracting Officer responsibilities—determine:
• Extent of contractor liability—based upon corresponding damages• Appropriate form and method of recovery, repair, replacement or
other restitution• Deposit of monies (from property loss)--U.S. Treasury unless
otherwise authorized by statute
DFARS Case 2009-D008
• Proposed rule published Dec. 3, 2010• Major change: establishes a
DFARS clause for property disposition/plant clearance
• Includes:• Requirement to use PCARSS• Clarified demil requirements (must be included in contract
terms and conditions) • New PGI for trade security control
clearances
• Plant Clearance Automated Reutilization and Screening System
• The “automated Inventory Schedule” [SF 1428]
• Deployment began in 1995• Used by most DoD
contractors
Quick Overview PCARSS
• DFARS Cases (cont.):• Case 2009-D043: Reporting GFP to the DoD Registry (GFP module)
• Revises current DFARS clause 252.211-7007• Status:
• Proposed Rule published Dec. 22, 2010 [cancelled]• New proposed rule will be published in 2011
• DFARS Case 2010-D018: Responsibility and Liability• Codifies Class Deviation 2010-O0003, Responsibility and Liability for Government Property• Consistent policy for contractor liability (for property loss); negotiated contracts awarded under competitive procedures • Status: Final Rule pending
• Review DFARS and FAR proposed and interim rules• Change Notices:
http://www.acq.osd.mil/dpap/dars/change_notices.html• Submission input of public comments:
http://www.acq.osd.mil/dpap/dars/out_for_public_comment.html
View public comments on proposed & interim rules• DFARS rules:
http://www.acq.osd.mil/dpap/dars/out_for_public_comment.html• FAR rules: www.regulations.gov
• View status of open cases• DFARS rules: http://www.acq.osd.mil/dpap/dars/case_status.html• FAR rules: http://www.acq.osd.mil/dpap/dars/far_case_status.html
Useful Information
Any Questions?
email [email protected] (804) 734-0505
22
BACK UP
Procedures, Guidance & Information
• PGI Case 2010-P001 (245)• Published July 23, 2010• First PGI for Contracting
Officers involving Government Property
• Provides Guidance on:• Furnishing GP• Documentation• Transfers of Acct.• Attachments to solicitations and
awards• Title & Disposition
NEW!
PGI (cont.)
• A companion resource to the DFARS that contains:
mandatory and non-mandatory internal DoD procedures
non-mandatory guidance
Supplemental information
Why a PGI?
• Poor/no implementation of 2007 FAR Part 45 & clause changes• Noncompliance with FAR 45.102(b)• Not obtaining Property Management Plan• Not providing property lists to offerors with required data
• Growing number of audit findings • Get GP right…on the contract• Provide guidance on delivery of CAP
• Furnishing GP (PGI 245.103-70)• Responsibility: Requiring Activity (as a
part of acquisition planning under FAR Part 7)
• Building a business case under FAR Part 45.102:• Element 1: Government’s best interest;• Element 2: Overall benefit to the acquisition;• Element 3: Government’s assumption risk;• Element 4: Requirement cannot otherwise be met
Overview of PGI 2010-001
• Element 1• In the Government’s best interest
• Discussion should be specific & factual• Actual or projected dollars should be addressed
• Discussion should address the following:• Economy – achieves lowest cost or price objective• Standardization – critical need for precise replication• Security – needed for national security reasons• Expedite production – achieving timely delivery• Scarcity – Government is the only source• Maintain the Industrial base – ensure future capability• Contract type – potential for a more favorable contract
Overview (cont.)
• Element 2• Overall benefit to the acquisition must significantly
outweigh the costs of administration• Property in the hands of contractors drives program
costs• Controlling• Managing• Disposal
• Costs must be either less than what the contractor might otherwise incur; or benefit to the Government must outweigh additional costs
Overview (cont.)
• Element 3• Government’s assumption risk• Risk analysis must demonstrate that the Government
is not substantially increasing its risk• Risks must be considered, discussed and
documented
Overview (cont.)
• Element 4• Government requirements cannot otherwise be met• Is the Government property being provided critical
and significant to meeting acquisition plan objectives
Overview (cont.)