DCMA’s Strategic Plan - Achieving Contracting
Performance Expectations & Partnering with
Industry to Achieve Performance Goals
Presented By:
Marie Greening
Chief Operations Officer
Leona Fitzpatrick
Operations Contracts Director
October 29, 2013
Overview
• DCMA Mission
• DCMA Strategic Plan Highlights
• Contracting Performance Measures
• Why it’s important
• Select DCMA Contracting Performance Indicator Achievements and
Current State
• Partnering for Success
2
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
Acquisition Enterprise: DCMA’s acquisition customers receive
excellent CAS and the management information needed to make
sound business decisions.
Policies and Processes: Effective policies and process
standards are in place to support delivery of consistent and
cost-effective CAS.
Human Capital: A diverse, agile, high-performing workforce
equipped with the competencies needed to execute current
and future missions.
Stewardship: An ethical organization with well-defined roles,
responsibilities, infrastructure and management controls fully
aligned to effectively and efficiently manage public resources.
4
Strategic Plan Implementation
• Performance Management:
• Integral component of DCMA’s 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
5
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 It’s 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 Directorate
Contract Closeout: Timeliness
P.I. #46
Contract Closeout: Close 90% of Contracts within
FAR Timeline
Data as of Sep 2013
Operations Directorate POC: Eugenia Vinson
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Operations Directorate
Contract Closeout: Timeliness
FY 2010-FY 2013
Performance Indicator 46
105
103
% Closed on Time
101
99
97
95
93
91
89
87
85
Target %
# Closed
# Closed on Time
% Closed On Time
FY10
90
297,019
291,045
98.0
FY11
90
274,385
270,005
98.0
FY12
90
238,328
234,141
98.0
FY13
90
207,895
203,289
98.0
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Operations Directorate
Contract Closeout: Overage
OPERATIONS PERFORMANCE GRAPH
P.I. #47
Reduce the Number of Overage Contracts by 10%
60,000
Total
50,000
Number Overage
40,000
30,000
20,000
Target
10,000
-
Baseline Change
Sep
2012
(Base
line)
Oct12
Target
34590
Overage
38433 39441
Baseline Change #
1008
% Change
2.6%
Data as of Sep 2013
Nov12
Dec12
Jan13
Feb13
Mar13
Apr13
May13
Jun13
Jul13
Aug13
Sep13
34590
40267
1834
4.8%
34590
41532
3099
8.1%
34590
42952
4519
11.8%
34590
45461
7028
18.3%
34590
47120
8687
22.6%
34590
49878
11445
29.8%
34590
51608
13175
34.3%
34590
52276
13843
36.0%
34590
53880
15447
40.2%
34590
54817
16384
42.6%
34590
55603
17170
44.7%
Operations Directorate POC: Marc Rabinowitz/Kerri Roberts
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Operations Directorate
Contract 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
DCMA’s 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 Directorate
UCAs Definitized On-Time
P.I. #50
AQ – UCAs: Definitize 80% of UCAs within 180 days
of order issuance or induction of asset
Data as of September 2013
Operations Directorate POC: April Johnson
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Operations
UCAs Definitized (On Time)
FY 2010-FY 2013
Performance Indicator 50
100
90
80
Percent
70
60
50
40
30
20
10
0
% Definitized On Time
# UCAs Definitized
# UCAs Definitized On Time
FY10
59
2656
1578
FY11
71
3288
2349
FY12
72
3096
2236
FY13
63
2508
1578
• Definitize 80% of UCAs within 180 days of order issuance or induction of asset
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Operations Directorate
UCAs Overage
P.I. #51
AQ – UCAs: Reduce Number of Overage UCAs by
10%
900
800
700
600
500
400
Baseline
Target
UCAs
Data as of September 2013
714
Oct-12
Nov-12
Dec-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
642
642
642
642
642
642
642
642
642
642
642
642
925
848
790
780
712
760
670
649
644
701
672
672
Operations Directorate POC: April Johnson
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Operations
UCAs (Overage)
FY 2010-FY 2013
Performance Indicator 51
1000
900
800
Number
700
600
500
400
300
200
100
0
# Overage UCAs
FY10
490
FY11
592
FY12
925
FY13
672
• 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 Directorate
Proposal Pricing
P.I. #54
AQ – Proposal Pricing: Ensure 90% of Pricing Reports
Completed within 45 days or Other Mutually Agreed Upon
Due Date
Data as of September 2013
Operations Directorate POC: Erik Mims
Alternate POC: Rosalind Lanham
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Operations
Proposal Pricing
FY 2010-FY 2013
Performance Indicator 54
100
95
Percent
90
85
80
75
70
% Target
% Completed On-Time
# Completed
# Completed on time
FY2011
90
92
5,606
5,140
FY2012
90
94
6,595
6,229
FY2013
90
96
7,283
6,998
• 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.
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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
Operations Directorate
On Time Performance
Jan-Jun 2012
Jul-Dec 2012
Jan-Jun 2013
# of Facilities % of Total
# of Facilities % of Total
# of Facilities % of Total
Period To Date (Jul-Sep 2013)
# of Facilities
% of Total
> 90%
55
11%
55
12%
51
12%
62
14%
75%-90%
145
30%
110
24%
129
30%
109
24%
<75%
289
59%
297
64%
256
59%
281
62%
Total
489
462
436
452
Causal Factors:
1. Actual delinquency
2. Data discrepancy
3. Unrealistic contract
requirement
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Past Due Delinquency
All CAGEs
Operations Directorate Delinquency Ratio (Volume and % of Total Delinquent Supply Schedules to Service Line Schedules)
EOP (30 Jun 2012)
EOP (31 Dec 2012)
EOP (30 Jun 2013)
Period to Date (30 Sep 2013)
# of Delinquent Schedules
500,000
8.38% increase
400,000
362,893
10.08% increase
333,739
379,751
350,368
300,000
5.68% increase
237,178
198,667
200,000
135,072
145,307
40%
40%
217,586 215,463
134,905 142,573
100,000
39%
60%
38%
61%
60%
62%
0
Supply Schedule
Service Schedule
Total
Type of Delay (Supply Schedule vs Service Schedule)
Operations Directorate
Delinquency Posture - By Volume/Type of Delinquency
Type of Delay
Period to Date (30 Sep 2013)
% of Del
Supply Schedule
EOP (30 Jun 2012)
135,072
% of Del EOP (31 Dec 2012) % of Del EOP (30 Jun 2013) % of Del
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
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