National Contract Management Association May 10, 2012 Ronald C. Meldonian Regional Director...
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Transcript of National Contract Management Association May 10, 2012 Ronald C. Meldonian Regional Director...
National Contract Management AssociationMay 10, 2012
Ronald C. Meldonian Regional Director
Northeastern RegionDefense Contract Audit Agency
The views expressed in this presentation are DCAA's views and not necessarily the views of other DoD organizations
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DCAA Organization
DirectorPatrick FitzgeraldDeputy Director
Anita Bales
CentralRegion
Tim CarrVacant
EasternRegion
Paul PhillipsGary Spjut
NortheasternRegion
Ron MeldonianWilliam Adie
Mid-AtlanticRegion
Ken SaccocciaSteve Hernandez
WesternRegion
Donald MullinaxDavid Johnson
General CounselDefense Legal
ServiceSusan Chadick
Assistant Director,Resources
Philip Anderson
Assistant Director,Policy & Plans
Vacant
Assistant Director,OperationsTom Peters
Internal ReviewGerry Reichel
Field Detachment Karen Cash
Terry Schneider
RegionsHeadquarters
Assistant Director, Integrity &
Quality AssuranceDon McKenzie
Executive OfficerJoe Garcia
Executive OfficerJoe Garcia
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Agency Goals/Priorities “One Agency” with a culture of teamwork,
excellence, accountability, mutual respect, integrity, and trust
Deliver high-quality audits and other financial services
Develop the skills of our motivated professionalsDevelop effective working relationships with DCAA
external stakeholdersEnsure the workforce has the right space, the right
equipment and the right technology at the right time to successfully deliver on the mission
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Deliver High Quality Services and Products
Agency will use new Strategic Plan to work audit quality and workforce issues
Established proposal walk-through and early identification of issues/inadequacies
All Raytheon audits under cognizance of one region Issued extensive changes to audit guidance, procedures and
processes Authorized additional management/supervisory positions to
allow more time on audits Holding Agency-wide Field Audit Office (FAO) Managers
Conference annually
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Making a concerted effort to engage with stakeholders: Issued “Rules of Engagement” Initiated regular high level meetings with contracting
communityExecutives participated at speaking engagements with
DoD Procurement and Contractor Associations Issued Joint DCAA/DCMA Directors Memorandums
Established MOU on EVMS Cost Recovery Initiative
Working Relationships with Stakeholders
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Working Relationships with StakeholdersRequirements Workload and Resources
Working with Stakeholders to defer or divest low risk workload - will allow DCAA to focus on higher risk work with larger payback to Warfighter/Taxpayer.
Added 500 new employees over the last 2 years
DPAP Memorandum (1/4/2011), “Better Buying Power: Guidance for Obtaining Greater Efficiency and Productivity in Defense Spending: ‘Align DCMA and DCAA Processes to Ensure Work is Complementary” Increased Thresholds for Price Proposal Audits Forward Pricing Rate Agreements/Forward Pricing Rate
Recommendations Financial Capability Reviews Purchasing System Reviews Contractor Business Systems Rule
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Incurred Cost Initiative
Developed a risk-based approach to working down backlog in a effective manner: Increase staffing Dedicated audit teams (FAO Manager, Supervisors, and
auditors) Developed revised incurred cost audit program Delivering an incurred cost auditing refresher training course Continue working with DoD on strategies to better align the
limited DCAA resources to the higher risk contracting areas
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Other DCAA InitiativesEmphasizing annual program plan meetings with
contracting officer and contractor to discuss priorities
Implementing a project management approach to include detailed milestone plans to facilitate timely completion of audits
Enhancing the role of the prime contract auditor in coordinating major subcontract proposal audits under major procurements.
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Contractor Business Systems
The final Business System Rule was issued on February 24, 2012 Defines contractor business systems as the contractor’s
Accounting System Estimating System Material Management and Accounting System (MMAS) Purchasing System Property Management Earned Value Management System (EVMS)
Currently pilot testing new programs at several contractor locations (accounting system program will be published in the near future).
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Contractor Business Systems
DCAA will report on compliance with the criteria in DFARS
DCAA Reports will identify significant deficiencies – defined by the interim Business System Rule asShortcomings in the system that materially
affects the ability of officials of the DoD to rely upon information produced by the system that is needed for management purposes
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Contractor Support to Facilitatea More Timely Audit Process
Effective contractor proposal walk-throughsAdequate contractor submissions and assertions
Forward Pricing Rate Proposals Adequate Subcontract Proposals Adequate CAS cost impact proposals
Adequate supporting data in a timely manner and timely access to key contractor personnel responsible for contractor support
Real-time DCAA access to contractor systems
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Forward Pricing Proposal Adequacy
Adequate Contractor Proposals – Facilitate Effective Audit Proposed amounts supported by detailed basis of estimate and
supporting documentation Supporting justification/explanation provided for significant
variances between prior buy actual cost data and proposed amounts Consolidated Bill of Material Detailed support for additive factors applied to various cost
elements Indirect Rates supported by contractor budgetary or trend data Adequate Support for Subcontractor Proposals
Adequate prime contactor cost or price analysis Adequate subcontract proposal
Support for commercial item price reasonableness Proposal reflects anticipated accounting changes
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WAY AHEAD
Continue to build on professionally developing our workforce
Reducing learning curve with our new processes and guidance
Build on the changes to increase quality of services and products
Reduce Incurred Cost audit backlog to support contract close-out
Continue to broaden relationship and communication with our stakeholders
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Additional information on DCAA and Points of Contact available at
www.dcaa.mil
Defense Contract Audit Agency