Gordon Kranz

Presentation to NDIA Ground Robotics Division

2 September 2010

Agenda • Who We Are • What We Do • Enterprise Initiatives

2

Setting the Strategy Our Mission We provide Contract Administration Services to the Department of Defense Acquisition Enterprise and its partners to ensure delivery of quality products and services to the warfighter; on time and on cost Our Vision DoD’s leading experts in Quality Assurance; Cost, Schedule, and Supply Chain Predictability; and Contract Administration; enabling our partners to achieve contract objectives Our Core Values Integrity, Service, Excellence

3

Worldwide Acquisition Impact Worldwide Operations

Scope of Work

Span of Control

- $2,547B Face Value of Contracts - $1,458B Obligated -18,946 Contractors - 330,532 Contracts -$229B Unliquidated Obligations - ACAT 1 and 2 programs: 182 - Flight Operations (862 Aircraft/yr) - $153B Gov’t property in plant - $9B Progress Payments - $32B Performance Based Payments

- 10,334 civilian professionals -- ACOs, PI, QA, Engr, IS, Prop

- 525 military -409 Active Duty, 116 Reserves -900+ locations - 49 major field commands - $1.2B budget authority - $145M reimbursable target w/FMS - Combat Support Agency

.

HQ DCMA .

4

DCMA Authorities • FAR 42.302 (a), (b), and sometimes (c) • Contracts, Pricing, Rates, Negotiations, Progress Payments, Government Property, Small Business • Engineering, Processes and Technical contract compliance • Systems Engineering, Software Engineering, Manufacturing, Production Readiness, On-Time Delivery

• Quality • Product Acceptance, Quality Management Systems

• DFARS 242.302, OUSD(AT&L) Delegation as EVM Executive Agent

• United States Code, Title 10, Chapter 144 – Major Defense Acquisition Programs; Section 2440 – Technology and Industrial Base Plans

5

New Organization Structure

6

Contracts Directorate (AQ) Contract Executive Directorate (AQ) Executive Director Deputy Director

Mission Support Office

Planning & Performance Assessment Division

Contracts Policy Division

Procurement Division

Procurement Center

DAR Council Property Policy

Cost & Pricing Policy CIPR Center

Small Business Division Small Business Center

Functions Policy, Training, and Tools

Finance & Payment Policy FIRM Center

Procurement Management Review Division

• • • • • • • •

Procurement Mgt Reviews Small Business Program Management Contractor Purchasing System Reviews Contractor Insurance and Pension Reviews Plant clearance Contract terminations Property management Cost and pricing

Business Operations Center

Cost & Pricing Center

CSPR

Proposal Analysis

Plant Clearance

Forward Pricing and Indirect Cost

Terminations

Data Analysis, Training & Recruitment

Property

Corporate Administrative Contracting Officer

7

Engineering & Analysis Directorate (EA) Engineering & Analysis Directorate (EA) Executive Director Deputy Executive Director

Mission Support Office

Systems & Software Engineering Division

Program and Analysis Integration Division

Systems Engineering Branch

Program Integration Branch

Software Engineering Branch

Analysis Integration Branch

• • • • • •

Earned Value Management Center

Earned Value Systems Compliance and Earned Value Training

Industrial Analysis Center

Industrial Base Vulnerability Analysis Defense Infrastructure Criticality List (DIBS)

Manufacturing Engineering and Assessment Division

Manufacturing & Production Branch Supply Chain Predictability Branch

Functions Policy, Training, and Tools Systems Engineering Technical Management and Process and Reviews Software Engineering Technical Process Reviews Manufacturing and Production Technical Process Reviews Predictive Program Risk Assessments (IEAC, Schedule, Technical) Earned Value Management System Compliance Industrial Base Analysis 8

Quality Assurance Directorate (QA)

Quality Assurance Executive Directorate (QA) Executive Director Deputy Executive Director Mission Support Office

Process Management Division

Information Management Division

Resource Management Division

Quality Engineering Division

NASA Audit Division

Logistics Safety Center

Functions Policy, Training, and Tools • Quality Assurance • Product Acceptance • Quality Mgt System Surveillance •

9

Portfolio Management & Integration Directorate (PM&I) Portfolio Management & Integration Executive Directorate (PI) Executive Director Deputy Exec Director

Mission Support Office

Integration Support Division

Army Service Desk

Navy Service Desk

USAF Service Desk

Joint & Non DoD Service Desk

PEO Integraton

Functions • Customer Engagement • Represent Agency in OSD/DAB, DAES Process • Customer Focal Point for OSD and SAE MOAs •

10

Operations Directorate (O) Contracts Division

Quality Division

Operations Directorate

Mission Support Office

Air Operations Division

(DCMAO) SES (2) Tier II/I MIL Dep 0-6 (Rotational)

Engineering Division

Sector Divisions

Eastern Region

Central Region

Western Region

0-6

0-6

0-6

Primary CMO

Primary CMO

Primary CMO

Streamlined CMO

Streamlined CMO

Streamlined CMO

Mission: • Led by the Chief Operating Officer (COO) and Deputy, manages three Regional Commands (Eastern, Central and Western) and four Product/Specialized CMOs (APO, AIMO, NSEO, NPO). • Accountable for the full spectrum of contract management functions, consistent integrated performance management, resource and budget planning. • Accountable to the Agency Director for successful Regional/CMO mission execution and performance. • Will ensure all customer requirements and Agency Performance Indicators are successfully met in cooperation with the appropriate Headquarters Directorate. This involves ensuring adequate strategies and corrective actions are in place to meet customer requirements and Agency goals. 11

New Geographic Alignment

Special Programs • Special Programs East • Special Programs South • Special Programs West

Eastern CMOs Western CMOs • • • • • • • • • • • • •

Carson (Headquarters) Denver Boeing Huntington Beach Lathrop Lockheed Martin Denver Boeing Long Beach Los Angeles Palmdale Phoenix Santa Ana Lockheed Martin Sunnyvale Raytheon Tucson NPO

Central CMOs • • • • • • • • • • •

Chicago (Headquarters) Dallas Dayton Detroit Huntsville Lockheed Martin Forth Worth Bell Helicopter Forth Worth Boeing St. Louis Twin Cities AMP AIMO

• • • • • • • • • • • • • • • •

Boston (Headquarters) Atlanta Baltimore Garden City Hartford Manassas Lockheed Martin Marietta Lockheed Martin Moorestown Orlando Philadelphia Boeing Philadelphia Sikorsky Aircraft Springfield Raytheon Tewksbury APO NSEO 12

Our International Presence

13

Involvement by Acquisition Phase A

Material Solution Analysis

B

Technology Development

Engineering & Manufacturing Development

DCMA FAR 42.302 Contract Administration

Pre-Systems Acquisition Sustainment

Engr Concept Dev R & D Contracts S/W Design/Dev

Production & Deployment

FOC

FRP DR

Operations & Support

Systems Acquisition

Acquisition Strategy Industrial Assessments Past Performance IPT Pricing Small Bus Plan Program Integration Earned Value Mgt. Systems Review Risk Management Fwd Pricing Rates S/W & Systems Eng.

Acquisition Planning Support & Services

IOC

C

Closeout Final Rates Plant Clearance Quality Assurance Product Acceptance Production Scheduling Property UCAs Payments

Systems Review Final Engr Design Mfg Plan Quality Systems EMD Contracts S/W Dev & Proof

Contractor Depot Maint. Sustainment Critical Spares Supplier Management Repairs

Prod Surveillance Follow On Contract Quality Control Spares Engr Support Upgrades Prod Contracts

14

DCMA Initiatives • Proactive Customer Engagement • Program Office – Monthly Risk Assessment Reports • Contracting Office – Proactive Delivery Status, On-Time Delivery • SAEs / PEOs – Sector Portfolio and Industrial Base Analysis • OSD – Program Assessment Reports to support DAB / DAES • Technical, Cost, and Schedule Risk • Earned Value Trip Wire Analysis

• Integrated Analysis • Cross Functional multi-disciplined contract surveillance resulting in predictive risk assessments providing insight across the supply chain and provided to PMs and other customers to support program execution

15

Integrated Analysis Strategy CMO A

CMO Z

CMO C

Supplier Sub Contract

Supplier

Supplier

CMO B

Sub Contract Supplier

Supplier

Sub Contract

CMO D Sub Contract

Supplier

Integrated Analysis starts by surveillance and assessment of individual contracts

Development contracts -Development Processes -Development Control Mechanisms -Development Deliverables -Business Systems Sustainment Contracts -Delivery Quality and Timeliness -Business Systems 16

Integrated Analysis: Hierarchical Sector Leads - Product Sector Analysis - Cross Company Product Analysis - i.e. Fixed Wing AC, Rotary Wing AC, Ground tactical vehicles, etc) - Supply Chain Analysis - Industrial Base Analysis - Corporate Level Analysis of Contract compliance (Systemic analysis of a corporation) - Capability Assessments

Integrated Analysis depends on establishing structure and relationships between the data elements and leveraging Contract compliance assessments, Program Assessment Reports, Formal and Informal Surveillance Activities

Product Sector Level

Corporate Level

CMOs - Business Systems Surveillance at contractor site level (EV Systems, MMAS, etc) - Technical Surveillance at Contract Level - Program status and assessment reports - Contract Compliance Assessments - Product delivery status - EV Data Analysis of Program Data to identify Risk Areas - Integrated Assessment of EAC, Schedule, and Technical - Capacity Assessments - Contracts progress payments, contract close-out, etc

Contractor Site A Contract An Contract A1

Contractor Site B Contract Bx Contract B1

Contractor Z Contract Zy Contract Z1 Z

17

Integrated Analysis: MDAP View

Prime Contractor

Tier 1 Major Sub-Contractor Supplier

Tier 2 Sub-Contractor / Supplier Sub Contract

Sub Contract

Sub Contract

Supplier

Through Letters of Delegation (LODs) surveillance is done across the supply chain

Tier 3 Sub-Contractor / Supplier Sub Contract

Supplier

Supplier

Supplier

Supplier

18

DCMA Surveillance Program / Contract Surveillance Contract Receipt and Review

Develop Surveillance Plan

Functional Surveillance

Systems Engineering Software Engineering Manufacturing/SCP Earned Value

Collect and Analyze Performance Indicator Data

Develop and Publish Monthly Functional Assessment

Industrial Base Reports Corporate Profile Reprots CMO Commander Reports Integrated Monthly Program Assessment Report

Quality Contracts Program Integration

Business System Surveillance (Annual Risk Based Surveillance) Accounting Estimating Earned Value Progress Payments

Purchasing Property MMAS Billing

DCMA Participation in DoD Initiatives • WSARA • PARCA – Program Assessment Reports and Earned Value Analysis to support root cause analysis • OSD/PSA – Earned Value Assessments and Technical Risk Assessments to support OSD DABs, DAES, and Special Reviews

• AT&L Affordability Initiatives • Director DCMA on Steering Committee • Actively participating in several of the 5 committees

• Sec Def Efficiency Initiatives • Conducting Agency zero based review • Working with AT&L to Identify areas of efficiency improvement within DCMA and across acquisition community

20