Docstoc

OUSD AT DPAP EVM Status and Issues

Document Sample
OUSD AT DPAP EVM Status and Issues Powered By Docstoc
					OUSD(AT&L)DPAP
EVM Status and Issues


             Michael Pelkey
             OUSD(AT&L) Defense Procurement
             & Acquisition Policy
             4 February 2010
                                        1
  Agenda



EVM Status Update

DFARS Proposed Rule on
 Business Systems


                          2
  EVM Status Update
27 Aug 09 – Dick Ginman, Dep. Dir.
 DPAP, designated DoD
 Ombudsman for EVM Issues
2 Nov 09 – DoD EVM Report
 transmitted to Congress
4 Jan 10 – Gary Bliss designated
 Director, Performance
 Assessments & Root Cause
 Analyses                         3
  DFARS Proposed Rule
Business Systems-Definition and
 Administration
 (DFARS Case 2009-D038)
 » Applies to any contract, of any type,
   with a requirement to maintain an
   approved system for Subcontracts,
   Government Property, Cost Estimating,
   EVM, MMAS, or Accounting system.



                                           4
   Background
 Aug 09 - Commission on Wartime Contracting
  (CWC) hearing on the adequacy of contractor
  business systems
 Sep 09 – CWC published Special Report on
  Contractor Business Systems, “Defense
  agencies must improve their oversight of
  contractor business systems to reduce waste,
  fraud, and abuse.”
 Nov 09 - CWC found that contractual
  mechanisms to enforce compliance with FAR
  and DFARS through payment withholding are
  inconsistent and, in some cases, completely
  lacking for key business systems.
 15 Jan 10 – DFARS Proposed Rule published
  for public comment.
                                                 5
       Business Areas/Systems
DCAA internal control audit         DCMA-administered Business
Business Areas                      Systems
 Control Environment and Overall    Accounting System
  Accounting System Controls
 Purchasing (subcontracting)        Purchasing System
  Controls                           Estimating System
 Indirect and Other Direct Cost
  Controls                           Material Management and
 Compensation System Controls        Accounting System (MMAS)
 Billing System Controls            Earned Value Management
 Budget and Planning System          System (EVMS)
  Controls
                                     Property Management System
 Estimating System Controls
 Material Management and
  Accounting System Controls
 Labor System Controls
 IT General System Controls


                                                               6
  DFARS Proposed Rule
Adopts the 6 business systems
 defined in the FAR/DFARS
Makes changes to EVMS clause,
 new or revised clauses for other
 business systems
New “Business Systems” clause
 provides for payment withholding
 of 10% or 5% for deficiencies in
 each of 6 Business systems
                                    7
  EVMS clause changes
Requires ACO notification of
 system deficiency
Requires contractor response
 within 30 days of notification
If ACO determines that the EVMS
 contains a deficiency, the ACO will
 withhold payments IAW the
 Business Systems clause.
                                   8
   Payment Withholding
 Upon determination that a deficiency in a
  Business System exists, ACO will withhold 10%
  of contract payments
 Upon receipt of an acceptable corrective action
  plan (CAP) within 45 days, ACO will reduce
  withholding for that Business System deficiency
  to 5%
 If the ACO determines that the contractor fails to
  follow the CAP, withholding reverts back to 10%
 Cumulative withholding across all Business
  Systems shall not exceed 50% of payments due,
  except where deficiencies:
  » Are highly likely to lead to improper contract payments
    being made, or
  » Represent an unacceptable risk of loss to the
    Government
                                                              9
Questions?




             10

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:3
posted:10/20/2012
language:Latin
pages:10