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Defense Contract Management Agency
(DCMA) Brief
Presented By:
Mr. Syd PopeDirector, Contract Tech [email protected] 07, 2002
• DCMA Focus What we do, Where we are, How we do it!
• Topics to Brief Risk Management Earned Value Management (EVM) and Technical
Performance Measures (TPMs) National Aerospace and Defense Contractor
Accreditation Program (NADCAP) Pilot Study
AGENDAAGENDA
DCMA Focus
• Who is our customer? Taxpayer Civilian Customers War-fighter Program Office
• What is our authority? Federal Acquisition
Regulations Memoranda of Agreement
• What do Program Offices want? Predictive data analysis and mitigation of program cost,
schedule, and technical risks
What We Do
Provide Customer Focused Contract Management Services
Right Item = Quality Right Time = On-Time Delivery Right Price = Value for Money
Combat Support Agency Military Operations Readiness of Fielded Systems Modernization of Military Equipment Industrial Surge – During Conflict
Achieve Customer Expectations
DCMAW
DCMAE
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AmericasSouthernEurope
Northern Europe
SaudiArabia
Pacific
5 International Contract Management Offices covering 21 Countries and 566 Fuel Sites
Where We Are: Worldwide Operations
Three Districts:- Eastern U.S.- Western U.S.- International
60 U.S. Field Contract Management Offices
CAS Life Cycle Involvement
PRE-AWARD
COMPLETION
PERFORMANCE
AWARD
81 FunctionsPricing / NegotiationCore Contract AdminProgram Technical SupportQuality AssuranceEngineering SurveillanceProduction SurveillanceProperty ManagementSmall Business
FAR 42.302(a) Standard Functions DFARS 242.302(a)NASA Standards
FAR 42.302(b) Additional Functions DFARS 242.302(b)NASA Mandatory Inspections
How We Do ItHow We Do It
Supplier Risk ManagementSupplier Risk Management
CONCEPT TYPICAL FOCUS
Risk Management
Processes•Quality•Manufacturing•Software•Engineering
Systems•Earned Value•Purchasing•Property•Estimating
Collaborative Approach•Buying Activity•Supplier•DCMA
Supplier Risk Management
Key Steps•Understand customer requirements•Focus on Key Processes / Systems•Predictive Analysis for customer•Adjusting risk based on risk changes
RISK DOCUMENTATION
• Required for ALL elements of risk...including UPDATES!
Risk Management Plans should reflect the operating environment: Current, accurate, and complete Basis for Customer decision-making Focus should be on the quality and succinctness of the information
Where are the risks and what is the risk mitigation strategy?
• Method of Communication to all Stakeholders
Coordination with Supplier required
Coordination with Supplier required
Supplier Risk Management
• Effective Risk Management ensures program success:
Provides real-time supplier information in risk-based terms.
Provides visibility on where to focus attention.
Permits partnering with ALL stakeholders.
Supplier Risk Management
Earned Value Management
• Work Breakdown Structure (WBS)* Used to organize collection and analysis of detailed
costs. Establishes a structure for identifying products,
processes, and data. Is a product of the systems engineering process.
• Earned Value Reporting system that tracks cost and schedule progress. Projected performance is based on WBS.
*Systems Engineering Fundamentals, Defense Systems Management College, January 2001
Technical Performance Measures and EVM
• Metrics and Earned Value* Technical Performance Measures (TPMs).
Traceable to WBS elements are preferred.
When combined with product metrics, earned value is a powerful tool
*Systems Engineering Fundamentals, Defense Systems Management College, January 2001
TPM Discussion: Risk Vs Problem
Preventive Corrective Action
May occur Has occurred
Problem
Strategic Tactical Thinking
Long Short
Time horizon
Manage Risk and Future Issues
(TPM Emphasis)
Is it a Risk …………………………or a Problem
Manage Problem and Future Impact
(EV Emphasis)
Link works in “slide show” mode only
TPM Pilot
• Desired end state… ultimate goal? Predictive analysis of cost/schedule/performance problems Integration of TPMs with WBS, EV, and Risk Management
• Did we get there? Needed program(s) with good traceability between WBS
elements, EV control accounts, requirements, and TPMs Needed to show predictive success and/or an
enhancement in program and risk management
TPM Pilot: Results• Pilot program was a challenge:
TPMs not on contract; contract problems Rqmts not defined; inadequate WBS
• But there were many benefits:
Greater understanding of contract/system requirements Better insight into risk assessment Forces a systematic approach to analyzing performance
• Next step is to approach industry and PMOs Working with Northrop Grumman; making joint presentation
at Lean Aerospace Plenary in March May work with Army Excalibur and Air Force JSF programs
National Aerospace and Defense Contractor Accreditation Program (NADCAP) Pilot Study
• DCMA Test Sites: DCMAE - CMO Baltimore, CMO Syracuse,
and CMO Detroit DCMAW - CMO Chicago, and CMO Van
Nuys• Test Areas: Welding, Heat Treating, NDT
Purpose: To test the feasibility and effectiveness of relying on NADCAP Data to eliminate redundant surveillance to the maximum extent possible.
• Results to date: Limited success due to the very small ratio
of active contractors currently certified. Unsuccessful in doing a comprehensive data
analysis of NADCAP audit findings for most common problems
• Current actions: Working with NADCAP staff to restructure database for more effective data analysis
• Current Plans: Continue membership in the 3 areas.
NADCAP Pilot study
Summary
Provide Customer-Focused Contract Management Services
Right Item = Quality Right Time = On-Time Delivery Right Price = Value for Money
DCMA is Focused on Customer Needs!
Teaming with NASA, Military Services, and Defense
Contractors to ensure that tax dollars achieve mission
requirements
Questions?
Closing
