Presented By: Pam Gouldsberry, Contracts Group Chief Corlee Brown, ACO Linda Rowe, ACO Shirley Leonard, ACO Risk-Based Initiative for Contract Closeout: One CMO’s Perspective

2 Agenda Background – DCMA VA Closeout Overview from DCMA VA Perspective T&M Initiative Alternative Closeout Approaches –High Risk Contractor –Anteon Closeout Initiative

3 Background – DCMA VA Challenges: Unique Situation Workload Staffing Priorities Aggressive Goals

4 From Physical Completion to Closed Final Incurred Cost Proposal Due 6 Months 4 Months Final Voucher Due 0-12 Months Contractor FY Ends PhysicalCompletion Settlement of Final Rates Varies CLOSED Industry DCAA DCMA DFAS Services Process Payment of Final Voucher Review/Process Final Voucher Varies due to circumstances Months Audit of Final Incurred Cost Proposal Due DCAA Actuals 8 –12 months Flexibly Priced Closeout Timeline DCAA Actuals 30 Days OPRs

5 Contract Closeout Key Players ONE FOCUS Achieving the Goal Together Industry Indirect Cost Props Final Inv/Vchrs Pkg Refund Checks DFAS Reconciliation Final Payment Additional Funding Property Disposition Replacement Funds Acceptance Services Indirect Cost Audits Final OH Rates Subcontract Audit FV Review DCAA DCMA Coordinate all Closeout Actions

6 T&M Initiative What is it? Risk-Based Approach Utilize fixed labor rates Accept provisional G&A rate Streamlines the Contract Closeout Process Settlement of Rates not required Abbreviated Final Voucher Expedites payment and closeout 60% T&M Contracts

7 T&M Initiative – Teaming for Success Contractor Participation DCMA/DCAA Kickoff meeting for initial low risk contractors Lack of individual contract audits is an incentive Communicate conflicting priorities (canceling funds, etc.) DCAA

8 T&M Initiative Process Selection of contractors for participation Performance of risk assessments Getting contractors to participate Timely submission of final vouchers Sampling of final vouchers

9 DCAA  Reduced audit effort on low risk contractors DCMA  Reduced reconciliation effort allowing ACO to focus on active work  Prevents funds from canceling  Contract closes within FAR mandated timeframes Contractor  Abbreviated final voucher process saving time and dollars  Submit Final Voucher before Final Rate Settlement DCAA  Reduced audit effort on low risk contractors DCMA  Reduced reconciliation effort allowing ACO to focus on active work  Prevents funds from canceling  Contract closes within FAR mandated timeframes Contractor  Abbreviated final voucher process saving time and dollars  Submit Final Voucher before Final Rate Settlement Benefits Integrated Effort - DCMA, DCAA, Contractors Partnering Business Judgement Risk

10 Results!!! Contractors approved (low risk) 23/55 High risk contractors (alternative approach) 4 Contracts closed 3,151

11 High Risk Alternative Approach Background –Contractor Cooperative –Billing System Deficiencies –Significant G&A Costs Questioned in prior audits –Contractor unable to generate sufficient volume of final vouchers/monthly basis

12 Overview of Risk-Based Process –Identified 341 IDIQ Delivery Orders with rates settled –DCAA determined increment/decrement factor for each IDIQ contract –Unbilled amount< $50,000 contractor waived payment at Basic Level –All credits were refunded to Government

13 Benefits/Results Contractor –Reduced Final Voucher Preparation –Closeout Backlog Decreased Government –<60 days over 340 Delivery Orders closed Wynne Phase III contracts closed (app. 200) –Replacement funds not required –Excess funds returned to Services

14 Anteon Closeout Initiative Background –Low Risk Contractor –Multiple Acquisitions –Large Number of Overage Contracts with Delinquent Final Vouchers Challenges –Close Large Number of Contracts (2,000+) –Meet Regulatory Requirements –Satisfy DCAA and DFAS Internal Operational Requirements

15 Anteon Closeout Initiative Process –MOA Between DCMA and Contractor –Agreement with DCAA and DFAS –Streamlined Submission Format –Accelerated Cumulative Allowable Cost Worksheet (CACWS) Audit

16 Anteon Closeout Initiative Submission Format –Use Spreadsheet Format (CACWS) –Group Like Vouchers (Credits, Debits, Zeros) –Streamlined Final Documents Form SF1034s, Releases, Assignment of Refunds, Rebates, and Credits) –Deviation for Form DD 1597 (Closeout Worksheet) –Concurrent Audit by DCAA

17 Anteon Closeout Initiative Results –Final Vouchers with Documentation 2,056 Contracts Provided by Contractor in 30 Days –DCMA Reviewed 1,702 Final Vouchers –Currently in Payment Process 734 Contracts –Closed 968 Contracts in 3 Months

18 Questions