Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
Contract Closeout Update
Ms. Anita Bales, DCAAMr. Timothy Callahan, DCMA
Ms. Rebecca Beck, DFAS
Overview
2
Contract Life Cycle
Industry
Common Barriers
Glide Paths
Agency Material Weakness
Contract Closeout
Financial Impacts
Closeout Initiatives
Appropriation Life Cycle
Tri-Agency Working Group
Department-Wide Initiatives
Contract Lifecycle: Procure to Pay Overview
3
Contract Lifecycle: Pre-Award
4
Buying Command
Document Relevant Information in
CBAR
Analyze/Audit submission
and Negotiation
ACO
DCAA
Requirement
Solicitation
Source Selection
Award
Funding
Forward Pricing Proposals and Rates
DFAS
Set up LOA & Financial Record
Provides acquisition insight on business intelligence
Pre-Award Accounting
Contract Lifecycle: During Performance
5
Buying CommandACO
DCAA
Annual Audit of Incurred Cost
DFAS
Pay Vouchers
Process Contract
ModificationsAdjust Funding & Monitoring
Process Vouchers/ Perform Payment ReviewsMaintain Gov.
Financial Record
Monitor FundingAccept Deliveries
Monitor Funding
Accounting/Billing System Audit –
Process Withholds
Billing Rates
Contract Lifecycle: Closeout
6
Audit of Incurred Cost
Pay Final Voucher
Process Contract Modifications
Reconcile Quantity –before accepting final
voucher
Reconcile and Close Accounting
File
Accept Final Delivery
Preliminary ULO Review,
reconcile payment
differences
Reconcile and Close Out ContractResolve remaining funds
Confirm all Audits are Complete and
documentation is submitted
Consider Quick Close Out Process
Support Quick Close Out Procedures
Provide Final CACWS or Evaluation of Final Voucher
Sign & Process Final Voucher
Buying Command ACO
DCAA
DFAS
Industry
7
• Subcontract management
• CACW
• Yearend rate adjustments
• Final inventory
• Final voucher
• Timely and adequate incurred cost submissions
• Closing Statement
Industry’s Role
Common Barriers and Recommendations
Barriers to Closeout
• Contractor Submission Delays
• Delayed Negotiation of Overhead Rates
• Final OH Rates
• Direct Cost Audits
• Complex Contracts
• Cancelled Funds
• Reconciliations Issues
Recommendations to Mitigate
• Submission of Cumulative Allowable Cost Worksheet (CACWS)
• Timely Submission of Final Voucher
• Monitor Cancelled Funds
• Standard, Clear and Simplified Payment Instructions
• Limit Contract Financing Rates
8
DCAA Incurred Cost Years Completed
9
10
DFAS Aged Reconciliation Inventory
11
12
Agency Material Weakness
13
FY16: Updated material weakness criteria to address KTS in DCMA’s control
- 20% reduction of overage cost contracts
- 20% reduction of obligated value of overage cost contracts
- Defined burn down plan for firm fixed price contracts
Nov 15: MOCAS automated closeout threshold
increased to $500K
Jul 16: Established FY 17 closeout goals
- Cost: 43,075 / $144.9B
- FFP overage: 869
2nd QTR 17: Working towards
obligated value; Fixed Price met
FY 18: Baseline/Goal will be
recalculated to account for new
audits issued
Agency Material Weakness
Contract Closeout
14
• Contract closeout importance to audit readiness• Affects Dormant funds• Reduces contingent liability
• Other benefits• Reduces liability to use current year funds • Frees expired funds for use elsewhere• Reduces actions to address canceling funds
Contract Closeout
15
• What we’re working on…..• Predictable battle rhythm• Predictive capability for when audits and
rates will be completed • Resolution of systems issues that “reopen”
closed contracts• Prioritization of funds reconciliation actions • DoD IT solution that has shared visibility and
common status reporting for key players• Improving final voucher timeliness
Financial Impacts
16
Army
$1.4B
Air Force
$1B
Navy
$760M
Marine Corps
$77M
Defense Agencies
$53M
MOCAS Cancelled
Unliquidated ObligationsFY17 Contract Pay (YTD)
• 371,229 Active Contracts
• 19,398 Active Contractors
• 356,423 Invoices Processed
• $2.177 Trillion Obligations
• $77.9 Billion Disbursed
Appropriation Life Cycle
Appropriation Types
Available Expired Cancellation Date
O & M = 1 Year + 5 Years = September 30th of the 6th year
R & D = 2 Year + 5 Years = September 30th of the 7th year
PROC = 3 Year + 5 Years = September 30th of the 8th year
MILCON = 5 Year + 5 Years = September 30th of the 10th year
17
Current/Available Expired Cancelled
Available for Obligationand Payment
Must ObtainNew Funding
Available for Payment
Appropriation Life Cycle
Tri-Agency Working Group
18
Targeting FY17 & FY18
cancelling funds
Tri-Agency Working Group
19
Goal: Strategically align priorities across all three Agencies for contract closeout actions
Aligns DCMA’s closeout strategy and DCAA’s audit plan with the service’s financial records maintained by DFAS
Focus: Targeting FY17 and FY18 cancelling ULO balances in MOCAS
Priority being being given to contractors (DCAA) and contracts (DCMA/DFAS) with the highest cancelling ULO $ balances
Results: Reduced FY17 and FY18 cancelling ULO balance by $820M
1,709 DCAA contractor audits were matched to MOCAS FY17 cancelling ULO balances
• Represents 12,964 contracts for $4.1B in FY17 cancelling ULO
• DCAA: 1,233 audits are complete or not required; 476 being worked
• DCMA: Prioritizing administrative closeout actions across impacted CMO's for closed audits
• DFAS: Issued FY17 year-end cancelling year invoice instructions to assist with receiving and processing cancelling year transactions prior to the funds cancelling
Future: Follow the same process for future years cancelling ULO balances
Department-Wide Initiatives
20
• Contracts Prior to FY2000
• No Further Deliverables
• Unreconcilable
Legislative Relief
• Data Lake Project• Posting Contract
Closeout Notices• Increase Simplified
Acquisition Threshold• Simplified Payment
Instructions
DPAP Initiatives
Open Discussion
21
Mr. Anita Bales, DCAA
Mr. Timothy Callahan, DCMA
Ms. Rebecca Beck, DFAS