MODULE 1 Quality Assurance and the Defense Contract Management Agency

1. MODULE 1Quality Assurance and the Defense Contract Management Agency 15November2013

2. Module Objective After completing this module, the student will be able to recognize the basic role of Quality Assurance Specialist (QAS) in the acquisition process.

3. LESSON 1Introduction to Government Contract Quality Assurance 15November2013

4. Lesson Introduction Given the fundamentals of Government Contract Quality Assurance (GCQA), the student will be able to distinguish the roles and responsibilities of a Quality Assurance Specialist (QAS) within the Defense Contract Management Agency (DCMA).

5. Lesson Objectives Upon completion of this lesson, you should be able to: • Identify GCQA-related definitions. • Recognize acquisition participants. • Identify DCMA’s GCQA Program concepts. • Identify basic QAS responsibilities. • Recognize situations in which the QAS must contact the Contract Integrity Center. • Apply the 14 Principles of Ethical Conduct to the QAS’ daily work and non-work behaviors.

6. Lesson Topics This lesson will cover the following topics: • Key Terms • Acquisition Participants • GCQA Concepts • Basic QAS Responsibilities • Ethics and the QAS

7. WIIFM? This lesson will: • Explain the impact your role has on U.S. servicemen and servicewomen. • If a soldier flies it, drives it, wears it, or shoots it, then there’s a good chance that DCMA will have some involvement or oversight on it. ~Denise Schumacher, DCMA Senior Staff QAS • Describe the reasons behind DCMA’s processes and procedures.

8. Languages of Quality Assurance Four Languages of Quality Assurance

9. Key terms Lesson Topics: Key Terms Acquisition Participants GCQA Concepts Basic QAS Responsibilities Ethics and the QAS

10. Topic 1: Key Terms • Key terms include: • Quality Assurance Specialist (QAS) • Staff QAS • First Line Supervisor (FLS) • Government Contract Quality Assurance (GCQA) • Contract Quality Requirements • Acceptance

11. Quality Assurance Specialist (QAS) • Designates all positions classified as the official Office of Personnel Management (OPM) 1910 series • General term that applies regardless of the specific assignment • Sometimes referred toas Quality Assurance Representative (QAR)

12. Staff QAS • Responsible for a specialized Quality Assurance (QA) area • Assigned at Headquarters, Operations, or a specific Region • Function as Subject Matter Experts (SMEs), such as: • Commodity SME • Process SME • System Subject SME

13. First Line Supervisor (FLS) • Designates all positions identified as the initial level of supervision • Generic term that applies regardless of the specific assignment • Even the Deputy at a Contract Management Office (CMO) functions as an FLS

14. Refers to the various functions, including inspection, performed by the Government to determine whether a contractor has fulfilled the contract obligations pertaining to quality and quantity Government Contract Quality Assurance (GCQA)

15. Contract Quality Requirements • Include: • Clauses prescribing inspection and other quality controls incumbent on the contractor • Technical requirements related to quality • Ensure the product or service conforms to contract requirements

16. Acceptance Acceptance refers to the act of an authorized representative of the Government by which the Government, for itself or as an agent of another, assumes ownership of existing identified supplies tendered, or approves specific services rendered.

17. ACQUISITION participants Lesson Topics: Key Terms Acquisition Participants GCQA Concepts Basic QAS Responsibilities Ethics and the QAS

18. Topic 2: Acquisition Participants • Acquisition participants include: • Purchasing Office • Customer • Supplier • Contract Administration Office (CAO) • Contract Management Team (CMT)

19. Purchasing Office • Also referred to as the buying activity • Only authority able to establish/change the terms and/or requirements in the contract • Establishes necessary requirements (including quality requirements) within the contract

20. Customer • Customers may include: • Purchasing Office • Technical Activity/Engineering Support Activities (ESA) • End User Purchasing Office Technical Activity/ESA End User

21. Supplier • Has the legal obligation to carry out all terms and conditions of the contract • Includes all contractual quality requirements • Offers to the Government for acceptance, only conforming supplies/services • Also referred to as “contractor” • DCMA-INST 219, Supplier Risk Management Through Standard Contract Surveillance

22. Contract Administration Office (CAO) • Manages and monitors contract from initiation through final acceptance of product/service • Assesses degree of supplier compliance with contractual requirements, including quality • Customer can assign contract administration or retain control • If DCMA is selected, contractis assigned to a CMO, and a QAS may be assigned

23. Contract Management Team (CMT) • Various DCMA functions responsible for specific Contractor and Government Entity Code (CAGE) codes • Minimum members identified, Administrative Contracting Officer (ACO) and QAS; other functional specialist may be identified

24. GCQA Concepts Lesson Topics: Key Terms Acquisition Participants GCQA Concepts Basic QAS Responsibilities Ethics and the QAS

25. Topic 3: GCQA Concepts • Risk-based, systematic verification of significant objective evidence • Process-based approach • Product acceptability based upon confidence in the supplier’s quality management system or inspection system

26. Risk Management • DCMA’s risk assessment process is derived from the Department of Defense’s (DoD’s) risk management concepts • Original DoD model released in 1994 • DCMA involved since then • Process updated several times since inception

27. GCQA is a process-based management system that: Is a framework of processes and procedures Ensures the agency fulfills all tasks required to achieve DCMA’s Vision, Mission, and Commitments DCMA GCQA Program

28. GCQA is a process-based management system that: Is a framework of processes and procedures Ensures the agency fulfills all tasks required to achieve DCMA’s Vision, Mission, and Commitments DCMA GCQA Program (cont.) Process - set of interrelated or interacting activities which transform inputs into outputs Procedures - specified way to carry out an activity or a process

29. Process-based approach provides: Government determination of product acceptability based upon confidence in the supplier’s quality management system or inspection system developed through a risk-based systematic verification of significant objective evidence. GCQA Concept

30. System/Process Integration

31. Basic QAS responsibilities Lesson Topics: Key Terms Acquisition Participants GCQA Concepts Basic QAS Responsibilities Ethics and the QAS

32. Topic 4: Basic QAS Responsibilities QAS must follow certain processes when performing GCQA beginning with a Contract Technical Review (CTR) and ending with Product Acceptance. Contract Technical Review Product Acceptance

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

34. Time & Labor Documentation Defense Agency Initiative (DAI) Oracle Time & Labor (OTL) • Document all GCQA activity (hours) in the DAI OTL system • Account for QA efforts to appropriate labor accounting code(s) • Refer time charging questions to Supervisor Number One Charging Rule:Charge to the Process(es) you are supporting!

35. ethics and the qas Lesson Topics: Key Terms Acquisition Participants GCQA Concepts Basic QAS Responsibilities Ethics and the QAS

36. Topic 5: Ethics and the QAS • QAS important role in: • Preventing/Reporting fraud • How • Who • What • 14 Principles of Ethical Conduct for Federal Employees Principle Integrity Trust Commitment

37. Intent of Policy • Fraud and misconduct: • Results in increased costs to the Government • Presents hazards for military personnel and other end users of manufactured equipment or services • DCMA personnel have an important role in: • Preventing and detecting fraud • Reporting suspected misconduct • Preventing fraud helps assure that warfighters receive quality products and a fair price

38. Contract Integrity Center • DCMA personnel must report instances of possible fraud or misconduct to the Contract Integrity Center (CIC): • https://home.dcma.mil/DCMAHQ/center_Y/FOF/index.cfm • (617) 753-4343

39. Reporting Fraud and Misconduct • Am I required to report suspected fraud? • Yes! Presidential Executive Order 12731 requires all federal employees to disclose suspected waste, fraud, abuse, and corruption, including instances discovered through DCAA audit.

40. How to Report Fraud • Is this covered in the DCMA Policy/Publications? • Yes. See DCMA Policy Publications on Fraud, Waste, and Abuse. • How much information must I have to make a report? • Very little. An initial report is often nothing more than an alert to a suspicious situation. • Can I remain anonymous? • Yes. FraudNet provides a mechanism to make anonymous reports.

41. To Whom You Should Report Fraud • Is reporting my suspicions to my supervisor sufficient? • No. In addition to being required to report any suspicion of fraud to the CIC, you are also encouraged to notify your chain of command. • Should I notify the supplier of my suspicions and ask for an explanation? • No, definitely not! Discussing your suspicions with the supplier may compromise an investigation. Consult with your CIC counsel and investigators if you think contact is necessary.

42. What to Report Defective products/services Failure to conduct required tests Pre-award survey irregularitiesBilling for non-delivered supplies Bribes and gratuities Cost mischarging Progress payment irregularities Payment of kickbacks Defective cost and pricing data Improper solicitations for employment Conflicts of interestTheft or misuse of Government property Falsification of documentsSuspected/Actual occurrences of counterfeiting

43. Question and Answer A QAS is in a facility and sees supplier personnel using parts from a known lot of nonconforming parts previously rejected. What should the QAS do in this situation? • Immediately confront the supplier’s personnel. • Note the observation and tell his/her supervisor upon returning to the office. • Immediately report the supplier to the CIC and notify the supplier’s upper management. • Notify his/her supervisor of the supplier’s behavior and report it to the CIC.

44. 14 Principles of Ethical Conduct for Federal Employees, 1-3 Public service is a public trust, requiring employees to place loyalty to the Constitution, the laws, and ethical principles above private gain. 1 No conflicting financial interests. 2 No financial transactions using nonpublic Government information. 3

45. 14 Principles of Ethical Conduct for Federal Employees, 4-6 No improper acceptance of gifts. 4 Put forth honest effort in duty performance. 5 No unauthorized commitments or constructive changes. 6

46. 14 Principles of Ethical Conduct for Federal Employees, 7-9 No public office for private gain. 7 Employees act impartially and do not give preferential treatment. 8 Protect and conserve federal property. 9

47. 14 Principles of Ethical Conduct for Federal Employees, 10-12 No conflicting outside employment. 10 Disclose fraud, waste, abuse, and corruption. 11 Satisfy just debts. 12

48. 14 Principles of Ethical Conduct for Federal Employees, 13 and 14 Adhere to Equal Employment Opportunity (EEO) laws. 13 Employees endeavor to avoid any actions that create the appearance they are violating the laws or ethical standard set forth in the Standards of Ethics conduct. 14

49. Summary Having completed this lesson, you should now be able to: • Identify GCQA-related definitions. • Recognize acquisition participants. • Identify DCMA GCQA Program concepts. • Identify basic QAS responsibilities. • Recognize situations in which the QAS must contact the Contract Integrity Center. • Apply the 14 Principles of Ethical Conduct to the QAS’s daily work and non-work behaviors.

50. QUESTIONS