1. DCMA’s Strategic Plan - Achieving Contracting Performance Expectations & Partnering with Industry to Achieve Performance Goals
Presented By:
Marie Greening Leona Fitzpatrick
Chief Operations Officer Operations Contracts Director
October 29, 2013

2. 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

3. 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 3

4. 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

5. 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

6. 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 6

7. 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 7

8. Operations Directorate Contract Closeout: Timeliness
Contract Closeout: Close 90% of Contracts within FAR Timeline
P.I. #46
Data as of Sep 2013
Operations Directorate POC: Eugenia Vinson 8

9. Operations Directorate Contract Closeout: Timeliness
FY 2010-FY 2013
Performance Indicator 46 9

10. Operations Directorate Contract Closeout: Overage
OPERATIONS PERFORMANCE GRAPH
Reduce the Number of Overage Contracts by 10%
P.I. #47
Data as of Sep 2013
Operations Directorate POC: Marc Rabinowitz/Kerri Roberts 10

11. Operations Directorate Contract Closeout: Overage
FY 2010-FY 2013
Performance Indicator 47 11

12. 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 12

13. 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 13

14. Operations Directorate UCAs Definitized On-Time
AQ – UCAs: Definitize 80% of UCAs within 180 days of order issuance or induction of asset
P.I. #50
Data as of September 2013
Operations Directorate POC: April Johnson 14
P&N eTool. ad hoc

15. UCAs Definitized (On Time) Performance Indicator 50
Operations
UCAs Definitized (On Time)
FY 2010-FY 2013
Performance Indicator 50
Percent
Definitize 80% of UCAs within 180 days of order issuance or induction of asset 15

16. Operations Directorate UCAs Overage
AQ – UCAs: Reduce Number of Overage UCAs by 10%
P.I. #51
The difference between the total listed above and the total in the eTool are the 8 overage UCAs in the NA category and 1 from the DCMA International. They are being researched for closure.
As of this date, there are 1,408 open UCAs. The CMOs have corrective action plans and root causes identified in Metric Studio at the region levels.
Data as of September 2013
Operations Directorate POC: April Johnson 16
P&N eTool. ad hoc

17. Performance Indicator 51
Operations
UCAs (Overage)
FY 2010-FY 2013
Performance Indicator 51
Number
Reduce Number of Overage UCAs by 10% 17

18. 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 18

19. 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
Operations Directorate POC: Erik Mims
Alternate POC: Rosalind Lanham
Data as of September 2013 19

20. Performance Indicator 54
Operations
Proposal Pricing
FY 2010-FY 2013
Performance Indicator 54
Percent
Ensure 90% of pricing reports completed within 45 days or other mutually agreed upon due date 20

21. 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. 21

22. 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 22

23. 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 23

24. On-Time Delivery Facilities (CAGEs) in the Top 500 Base of Influence
This represents the end of period on-time delivery performance for the focused supplier base population
Poor Performance: <75%
Moderate Performance: 75%-90%
High Performance: >90%
Volume of facilities in the base of influence changes from period to period
Goal is to see an improvement from period to period in the % of suppliers in the moderate (75%-90% range) and high performance (>90%) ranges and a reduction (decrease) in the % of suppliers in the poor performance (<75%) range
Causal Factors:
Actual delinquency
Data discrepancy
Unrealistic contract requirement
Operations Directorate
Jan-Jun 2012
Jul-Dec 2012
Jan-Jun 2013
Period To Date (Jul-Sep 2013)
On Time Performance
# of Facilities
% of Total
> 90% 55
11%
12% 51 62
14%
75%-90%
145
30%
110
24%
129
109
<75%
289
59%
297
64%
256
281
62%
Total
489
462
436
452 24

25. Past Due Delinquency All CAGEs
This represents the posture and trend associated with the volume of delinquent deliverable schedules by deliverable type (supplies vs. services)
As of 30 Sep 2013, the Operations Directorate had a volume of 719,632 open deliverable schedules
Of this total volume, approximately 53% were past due/delinquent (379,751 delinquent deliverable schedules)
The greatest volume and % of the delinquency is associated with non-supply related contractual requirements (237,178 or 62% of the total delinquency)
The trend is up from the end of the previous reporting period by 8.38%
Not pictured but of note is that of the 142,573 delinquent supply schedules, 47% (66,323) are greater than 1 year past due
Operations Directorate
Delinquency Posture - By Volume/Type of Delinquency
Type of Delay
EOP (30 Jun 2012)
% of Del
EOP (31 Dec 2012)
EOP (30 Jun 2013)
Period to Date (30 Sep 2013)
Supply Schedule
135,072
40%
145,307
134,905
39%
142,573
38%
Service Schedule
198,667
60%
217,586
215,463
61%
237,178
62%
Total
333,739
362,893
350,368
379,751 25

26. 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 26