LESSON 5 Government Contract Quality Assurance Surveillance Planning

1. LESSON 5Government Contract Quality Assurance Surveillance Planning

2. Lesson Introduction Given a contract with Quality Assurance (QA) oversight responsibilities, you will be able to develop a Government Contract Quality Assurance (GCQA) surveillance plan.

3. Lesson Objectives Upon completion of this lesson, you should be able to: • Identify specialized GCQA surveillance planning requirements. • Articulate the relationship between the Risk Consequence and GCQA scope. • Describe considerations, methods, and factors that must be determined when developing a surveillance plan. • Document a surveillance plan using Risk Profile and Plan Tool. • Track the surveillance planning process for a sample situation. • Describe how to execute and revise a surveillance plan.

4. Lesson Topics This lesson covers the following topics: • Specialized GCQA Requirements • The Relationship Between CTR, Risk Assessment, and GCQA Surveillance Planning • Developing a Surveillance Plan • Documenting a Surveillance Plan • Surveillance Plan Example • Executing and Revising a Surveillance Plan

5. Significance of Quality Cost of Quality

6. WIIFM? This lesson is important because: • Proper surveillance planning and execution is essential to ensuring contract compliance. • It can literally be a matter of life and death. • Surveillance planning is critical to ensuring Defense Contract Management Agency (DCMA) focus is effective in mitigating risk likelihood. • A well-developed surveillance plan isthe output from Contract Technical Review (CTR) and risk assessment.

7. Overview • Analyzing risk information enables the Quality Assurance Specialist (QAS) to: • Determine which surveillance methods to employ. • Define frequency and intensity of surveillance. Frequency and Intensity Increase

8. Policy and Authority • Policy • Federal Acquisition Regulation (FAR) 46.104 • FAR 46.401 • DCMA GCQA Surveillance Policy • Authority • FAR 52.246-2 through -9 • FAR 52.246-11

9. Definition GCQA surveillance plan - The documented methods and techniques to reduce the likelihood of risk causes and to provide a basis of confidence that the supplies meet the quality and technical requirements of the contract.

10. SPECIALIZED GCQA REQUIREMENTS Lesson Topics: Specialized GCQA Requirements The Relationship Between CTR, Risk Assessment, and GCQA Surveillance Planning Developing a Surveillance Plan Documenting a Surveillance Plan Surveillance Plan Example Executing and Revising a Surveillance Plan

11. Topic 1: Specialized GCQA Requirements GCQA exclusions include: • Safety of Flight (SOF) • Naval Special Emphasis Program (NSEP) • National Aeronautics and Space Administration (NASA) • Host Nation Contract Administration Services (CAS)

12. Specialized Requirements: SOF Safety of Flight (SOF) • SOF QA surveillance plan is “above and beyond” separate surveillance plan dealing with SOF characteristics. • SOF is a DCMA-imposed program with specific surveillance requirements. • SOF QA requirements do not preclude standard GCQA requirements.

13. Specialized Requirements: NSEP Naval Special Emphasis Program (NSEP) • NSEP planning is covered in the DCMA NSEP Quality Assurance Representative Instruction (QARI). • NSEPs include Naval Nuclear Propulsion Program (NNPP), Nuclear Plant Material (NPM), Level 1 /SUBSAFE (L1/SS) Program, Navy Propulsion Program (NPP), Deep Submergence System/Scope of Certification (DSS-SOC)Program, and Fly By Wire Ships Control Systems (FBWSCS). • NPP QA Memorandum of Agreement (MOA) defines DCMA’s customer compliance and Program Management requirements for NSEPs.

14. Specialized Requirements: NASA National Aeronautics and Space Administration (NASA) • Surveillance plan requirements must address all requirements specified in: • NASA’s Letter of Delegation (LOD) (NASA Form 1430) • NASA Program Requirements (NPR) 8735.2A • If “insight” is delegated, the QAS must develop and document insight strategy.

15. Specialized Requirements: Host Nation CAS Host Nation Contract Administration Service (CAS) • DFARS 246.406(1)(ii): DCMA follows Standardization Agreement (STANAG) 4107 when performing or delegating QA services for/to North Atlantic Treaty Organization (NATO) Host Nation. • DFARS 246.406(2): DCMA performs ordelegates QA services for non-NATO international military sales contracts.

16. Question and Answer Which programs have specialized GCQA surveillance planning requirements? • Body of Armor • Ammunition • Safety of Flight • All of the above

17. The Relationship Between CTR, Risk Assessment, and GCQA Surveillance Planning Lesson Topics: Specialized GCQA Requirements The Relationship Between CTR, Risk Assessment, and GCQA Surveillance Planning Developing a Surveillance Plan Documenting a Surveillance Plan Surveillance Plan Example Executing and Revising a Surveillance Plan

18. Topic 2: The Relationship Between CTR, Risk Assessment, and GCQA Surveillance Planning • GCQA concept • System/Process integration • GCQA process-based system • DCMA strategy • Contract Technical Review • Risk assessment concept Contract Technical Review GCQA Surveillance Planning Risk Assessment

19. GCQA Concept GCQA is a process-based approach for Government determination of product or service acceptability based upon confidencein the supplier’s Quality Management System (QMS) or inspection system developed through a risk-based systematic verification of significant objective evidence. Contract Technical Review GCQA Surveillance Planning Risk Assessment

20. System/Process Integration Mandated by DoD Issued via Headquarters (HQ) instructions Captured by QAS

21. GCQA Process-Based System Direct GCQA and Support Processes GCQA Program ALRE CSI CTR CAR CSI Cust. Compl (PQDR) DC&A Del Surv FAT FLS Rev GCQA Surv Plan NCM PAOC Proc Review Prod Accept/Rel Prod Exam QA Dev QAE Hdbk QA Stamps QA Sys Audit Risk Assess SOF Std Insp Intl Agree

22. DCMA Strategy Contract Technical Review (CTR) Data Collection and Analysis (DC&A) is part of the Plan, Do, Check, Act (PDCA) cycle. Risk Assessment DC&A SOW GCQA Surveillance Planning Tech. Item Consequence Records Perform Surveillance System Req. Performance • QA Surveillance Methods • System Audit • Process Review • Product Exams Schedule/Cost Causes Product Release Exhibits Likelihood Data Pkg.

23. Process-Based Approach 1 2 3 4 5 6 7 OUTCOME = Accept product on behalf of Government

24. Contract Technical Review • CTR: • Identifies the nature and extent of the customer’s requirements associated with procurements. • Includes a complete review of Technical Data Package (TDP), Quality Letters of Instruction (QALIs), LODs, and any other associated documentation.

25. QA Risk Assessment Concept

26. Question and Answer Which two statements accurately describe DCMA’s GCQA approach? (Select two.) • GCQA relies on a risk-based systematic verification method. • GCQA relies on a risk-based random selection verification methodology. • Determination of acceptability is based on confidence in the supplier’s ability to address CARs. • Determination of acceptability is based on confidence in the supplier’s QMS or inspection system.

27. Developing a Surveillance Plan Lesson Topics: Specialized GCQA Requirements The Relationship Between CTR, Risk Assessment, and GCQA Surveillance Planning Developing a Surveillance Plan Documenting a Surveillance Plan Surveillance Plan Example Executing and Revising a Surveillance Plan

28. Topic 3: Developing a Surveillance Plan • Types of surveillance plans • Surveillance methods • Surveillance factors

29. When is a Surveillance Plan Required?

30. Types of Surveillance Plans • Surveillance plan is contingent upon a risk profile. • Risk profile, along with associated levels of risk, determine extent of planning. • Three types of surveillance plans: • Facility-wide basis (covers all contracts associated with a particular facility) • Based on a specific program, product, or product line • Contract-by-contract basis • Do not confuse the three types of surveillance plans with the three surveillance methods: • Product examination • Process reviews • System audits

31. Surveillance Methods: System Audit • Risk causes requiring system audit: • Quality Management System (QMS) • Specific QMS clause(s) • Document: • Which clauses and sub-clauses are to be audited (partial audit) • Schedules and/or frequency of planned audits • Initial (baseline) a full QMS audit within two years. • Subsequent QMS audits based on risk. • IfQMS processis identified as the risk cause, see Process Review Method.

32. Surveillance Methods: Process Review • Document the type: • Single event (full) • Incremental • Process reviews shall be scheduled at intervals of no greater than one year when: • Identified risk cause is a special process. • Process is associated with a High impact risk statement. • Frequencies must be semiannual (at a minimum) when: • Risk cause likelihood is Moderateor High. • Process review is the only surveillance method used.

33. Surveillance Methods: Product Examination • Risk causes requiring product examination: • Product characteristics • Product features • Product examination should be planned and performed as early in the product realization process as practicable. • The specific characteristics to be verified must be identified in the: • Surveillance plan • Inspection records The surveillance plan must also define the intensity andfrequencyof planned product examinations.

34. Surveillance Methods: Product Examination (cont.) The surveillance plan records must identify the product examination technique: • Inspect • Test • Witness • Verify • The QAS can verify multiple characteristics of the same productusing product examinations with different: • Techniques • Frequencies • Intensities

35. Surveillance Factors Scope Intensity Frequency • Customer-directed requirements • Contractual requirements • Confidence for product/service acceptance

36. Consequence Influences Scope Higher RiskConsequence = Broader Scope Lower Risk Consequence = Narrow Scope The consequence of the risk statement influences the scope of GCQA surveillance.

37. Likelihood Influences Frequency and Intensity Higher RiskLikelihood of Cause Occurring LowerRisk Likelihood of Cause Occurring Likelihood of risk cause drives the frequency and intensity of GCQA surveillance.

38. Question and Answer Which type of Risk Profile and Plan is usually considered the most efficient for the QAS? • Program-based plan because it covers a variety of products/services • Product or product line-based plan because it is customized to a specific type of item. • Contract-based plan because it is specific to each contract a supplier is fulfilling. • Facility-wide based plan because it is a more cost effective GCQA strategy.

39. Question and Answer If the likelihood of a risk cause occurring is high, the surveillance methods and techniques used _________________________. • Increase in frequency but decrease in intensity • Increase in both frequency and intensity • Decrease in frequency but increase in intensity • Decrease in both frequency and intensity

40. Surveillance Work Environment - Safety When planning Surveillance, consider workplace hazards Noise Eyes Chemicals/Solvents Hazard exposures Complete Job Hazard Analysis (HA) form outlining potential hazards….Update as required based on process changes, new processes/methods, etc. Ref: DCMA Job Hazard Analysis form Safety Gram: Process Change? Revise Your JHA

41. Documenting a Surveillance Plan Lesson Topics: Specialized GCQA Requirements The Relationship Between CTR, Risk Assessment, and GCQA Surveillance Planning Developing a Surveillance Plan Documenting a Surveillance Plan Surveillance Plan Example Executing and Revising a Surveillance Plan

42. Topic 4: Documenting a Surveillance Plan Use the Risk Profile and Plan Tool to document risk: • Information • Statement(s) • Cause(s) • Likelihood(s)

43. Documentation Benefits • Increased effectiveness • Proactive vs. Reactive • Provides a basis for (and can more easily make) adjustments • Improved efficiency • Everyone knows the plan: • QAS • CMO • Supplier • Backups, successors, and delegates (Detection to Prevention) • When necessary, share the plan with the customer to: • Report status • Solicit input • Garner confidence

44. Document Risk Profile and Plan The planning tool contains a Risk Profile and Plan tab in which the QAS documents risk information.

45. Document Risk Profile and Plan (cont.) • In this section of the tool, the QAS documents: • The nature of the risk (Risk Statement and associated consequence). • Risk Causes (and associated likelihood).

46. Risk Results Feed Surveillance • In this section of the tool, the QAS documents surveillance methods used to manage risks, including: • Planned and scheduled surveillance activities. • Location of surveillance records.

47. Surveillance Plan Example Lesson Topics: Specialized GCQA Requirements The Relationship Between CTR, Risk Assessment, and GCQA Surveillance Planning Developing a Surveillance Plan Documenting a Surveillance Plan Surveillance Plan Example Executing and Revising a Surveillance Plan

48. Topic 5: Surveillance Plan Example Vehicle armor example Randy Wright (left), DCMA Atlanta lead QAS, Space and Naval Warfare Systems Command, and Robert Rhett (right), lead QAS, SPAWAR, reviewing MRAP vehicle.

49. Surveillance Plan Example: Risk Results Feed Surveillance (1 of 2)

50. Surveillance Plan Example: Risk Results Feed Surveillance (2 of 2)