Defense ContractManagement Agency

Procurement Executives Roundtable

Federal Acquisition Conference

____________________________________________________

Presented By:

Mrs. Sallie Flavin

Deputy Director

“One Focus – Customer Focus”“Our Goals – Customer Goals”

We enable the war-fighter to win

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Span of Control- 11,125 Professionals

- 800 Locations Worldwide

- 60 Major Field Commands

-$81M Reimbursable Foreign Military Sales

- DoD Standard Procurement System

- Combat Support Agency

Scope of work- All major weapons system programs

- $860B in Contract “Face Value”

- $116B Unliquidated Obligations

- 320,000 Contracts

- 19,000 Contractors

- Flight Operations (1200 Aircraft/yr)Chart updated Jan 03-FBP

Full Service Acquisition Impact

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Acquisition Support – World-wide

Top 15 MDAP Programs By DCMA Supporting Location (Labor Hours Charged)

DCMA Involvement

DCMA Involvement

*Based on FY03 YTD

C-1

7A

V-2

2 O

SP

RE

Y

F/A

-18

E/F

F

-16

Airc

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F/A

-22

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F-3

5 (J

SF

)

IAV

D

DG

51

JS

TA

RS

T

RID

EN

T

NM

D

Com

man

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TH

AA

D

LO

NG

BO

W

B-2

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AmericasAtlanta # # # # 1 # #Baltimore # # 2 # # # # #Bell Heli Ft Wth # #Birmingham # # # # # # 8 Boeing Canoga Park #Boeing Heli Phila # # # #Boeing Long Beach #Boeing Seal Beach 1 #Boeing Seattle # # # #Boeing St. Louis # #Boston 6 # # # # #Chicago 9 # # # # # # # # 6 # #Cleveland # # # # # 1 # # 8 Dallas # # # # # #Dayton # # # # #Denver # # # # # # 1 Detroit # # # # # # # #GE Lynn #Hartford # # # # # # # # # # #Indianapolis 3 # # # # 2 #LM Denver #LM Ft Worth # # #LM Miss. & Space # # #LM Del Val # # #LM Marietta Ga #LM Owego 7 #Long Island # # # # # 7 # 9 #Middle East

C-1

7A

V-2

2 O

SP

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F/A

-18

E/F

F

-16

Airc

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F/A

-22

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F-3

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DD

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1 J

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AR

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TR

IDE

NT

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OW

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New York 5 Northern EuropeNG Balt # # # # #NG Beth 1 NG El Segundo # # #NGMelb 2 #NG St AugOrlando 5 # # # # # #PacificPhiladelphia 8 # # 2 # # # # 8 Phoenix # # # # # 9 # # 2 #Pittsburgh #Pratt & WhitneyRaytheon # 4 # #Raytheon LA # # # 1 # # #Raytheon Texas #Raytheon Tucson #San Antonio # 3 San Diego 9 # # # # #San Francisco # # # # # # # # # 1 Santa Ana # # # # # # 6 # 2 #Seattle # 7 # # 4 # 4 Sikorsky #Southern EuropeSpringfield # # 1 # # # # 4 # #St. Petersburg # # # # # #Stewart & StevensonSyracuse # # # # # # # # # # #Thiokol #Twin Cities # # # # # # # 5 #Van Nuys # # # # # # # 3 # # #

4

DCMA NG Baltimore

DCMA San Diego TRW

DCMA Pratt & Whitney

East Hartford

DCMA Long IslandEDO

JSF/DCMA Network

DCMA Honeywell Torrance

DCMA GE Aircraft Engines Cincinnati

DCMA LM Fort Worth

DCMA BAE SYSTEMS-Nashua

DCMA LM- Palmdale

DCMA LM Orlando LM Information Systems

DCMA Twin CitiesLM Tactical Systems

DCMA RockfordHamilton Sundstrand

DCMA San FranciscoKaiser & Vision Systems

DCMA BuffaloMoogi

DCMI Northern EuropeBAE Systems – Warton UK

DCMA NG El Segundo

LM Missiles & Fire Control

DCMA Santa Ana Pilkington

DCMA SyracuseBAE Controls

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Business Rule Change

• Aug 2002 DCMA POM briefing: • Direction from Mr. Wynne

• No more resources• Eliminate the imbalance

•DCMA response: stop low-value work (performed at expense of higher-value)

• Focus – remove source inspection on non-critical contracts under 250K • Effective beginning with FY 04 contracts

0

2 0

4 0

6 0

8 0

1 0 0

1 2 0

1 4 0

F Y 9 8 F Y 0 0 F Y 0 2 F Y 0 4 F Y 0 61 0 , 0 0 0

1 1 , 0 0 0

1 2 , 0 0 0

1 3 , 0 0 0

1 4 , 0 0 0

1 5 , 0 0 0

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W o r k lo a d S ta f f in g

FTEULO ($Bs)

Downward glideDownward glide--slope set in the mid nineties slope set in the mid nineties when workload was on a steep decline when workload was on a steep decline ––

workload up nearly 50% since FY98workload up nearly 50% since FY98

Workload

The FutureWidening Workload vs. Resource Gap

• Increased workload

• Reduction in staff

• Need to improve customer service

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Where is The Agency Going?

More Latitude with Requisite Responsibility and

Accountability

Performance Measures Defined

by Customer Success Requirements

More Independent Predictive Analysis –Sooner

SmallerSmaller, More Highly Skilled and Mobile Workforce

Our Path ForwardOur Path Forward

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Earned Value Management (EVM) and Predictive Analysis

• DoD Executive Agent for EVM System Evaluation and Certification System Surveillance

• In Plant Presence Program Surveillance & Support to the PM

Cost, Schedule and Technical Performance Independent Estimates at Completion

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Predictive Analysis (EVM+)

Earned Value AnalysisCAM InterviewsRoot Cause Analysis

Schedule AnalysisCritical Path Analysis

Technical Performance AnalysisProgress Against Technical Performance Measures

Development TestData Evaluation

Other PST Technical/Business Inputs

Synthesis

Synthesis

Blending

Predictive Analysis & Reporting PMO

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Wide Area Workflow (WAWF)

A system for performing electronic acceptance and invoicing on DoD contracts.

•Direct electronic feed to payment system

•Web, EDI or FTP input

•PKI enabled (password too)

•Provides complete transaction visibility

Wide AreaWorkflow

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• 5000 employees trained• More than 1100 contractor trading partners• Over 31,000 transactions processed• For greater than $1.5 Billion

• 99.9% on-time payments• $54.86 in interest paid versus $314,000 for

same value in paper transactions• 90% reduction in acceptance cycle time

DCMA WAWF Deployment & Results

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DCMA Values