Online Aerospace Supplier Information System (OASIS) Pilot Program Update Craig Bennett DCMA HQ May2018

DCMA Strategic Direction From Vice Admiral David Lewis, DCMA Director: Prime contractors are responsible for controlling their subcontractors. Our actions are diluting the prime's sense of accountability and responsibility and confuses our oversight role Intent is to hold the prime contractor accountable, under the terms of their contract with the Government, and to begin to discontinue the practice of writing letters of delegations (LODs) unless they meet the intent of the FAR guidance for doing so This shift will include a renewed, strong focus on surveillance of the prime contractor's controls over their subcontractors, to include how they are selected, risk rated and managed

Guidance DCMA Strategic Plan Goal 1: Inform and contribute to affordability decisions Objective 1.4: Transition oversight activities from detection to prevention by focusing limited Agency assets earlier in the acquisition value stream and by identifying cost saving areas in order to deliver better acquisition insight. Initiative 1.4.2: Leverage 3rd party Quality Management System (QMS) certification audit results to reduce duplicative DCMA oversight and labor costs allowing DCMA to refocus limited assets on other high risk areas.

Initiative 1.4.2 Decomposed Problem Statement Decomposition indicated industry has a self-governing Quality Management System (QMS) certification system QMS certification results maintained in Online Aerospace Supplier Information System (OASIS) system Confirmed duplicative system level audits currently being performed by: DCMA Contractor Certification Body Buying Command Prime – Sub Contractor

OASIS Benefits DCMA/DCMA Customer Benefits: Risk Based, focused LODs or LOD avoidance based on DCMA Prime Contract Management Office (CMO) supply chain data analysis utilizing OASIS as a data element   Risk Based QMS audit planning using OASIS Level 2 data as an element of QMS risk assessment in lieu of DCMA QMS audit CB engagement with CMO during the planning of the onsite Certification/Recertification and Special Focus audits CB executed or assisted Corrective Action Verification Direct feedback

Pilot Results to Date Pilot Site activity execution results to date: Significant efficiency improvement trending Enterprise wide – art of possible: 90% improvement We believe there is an immediate improvement in the cost of major QMS corrective actions via OASIS Baseline DCMA Audit Costs : Significant amount of Agency expenditures for AS9100 QMS audits that can be directed back to DCMA Contractor labor costs due to DCMA involvement can be directed back to the contractor, and may produce customer savings over time

Success Objectives / Deliverables Completed: Gained insight into industry QMS health, confidence and status Reduced DCMA follow-up and special emphasis audits Identified QMS risk and adjust oversight strategies Leveraged OASIS for DCMA Oversight Balance/Reduction Mitigated DCMA QMS concerns through the use of OASIS Improved labor ROI by elimination of redundant activities In-Process: Harmonized and Institutionalized Industry and Government Best Practices Updated DCMA Policy and Industry Command Media Use of ICOP process data generation for Supply Chain QMS performance

Opportunities BLUF: Next Phase Is To Eliminate Redundant Audits at the Sub Level Expand and Institutionalize DCMA OASIS Pilot programs Industry awareness training (OASIS feedback) for DCMA Collaborate with the contractor concerning QMS audits and reviews Create Agency level process which includes OASIS feedback Standardize QMS Data Collection and Analysis/QMS Risk assessment tools