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MODULE 3 Contract Review and Assessment

MODULE 3 Contract Review and Assessment. 15November2013. Module Objective. After completing this module, the student will be able to determine contractual risks that require Government Contract Quality Assurance (GCQA) surveillance planning. Module 3 Introduction.

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MODULE 3 Contract Review and Assessment

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  1. MODULE 3Contract Review and Assessment 15November2013

  2. Module Objective After completing this module, the student will be able to determine contractual risks that require Government Contract Quality Assurance (GCQA) surveillance planning.

  3. Module 3 Introduction Importance of Contract Review and Assessment

  4. LESSON 1Quality Assurance Contract Technical Review 15November2013

  5. Lesson Introduction Given a contract, students will be able to perform a Quality Assurance (QA) Contract Technical Review (CTR).

  6. Lesson Objectives Upon completion of this lesson, you should be able to: • Relate the importance of a QA CTR to Government Contract Quality Assurance (GCQA) planning. • Outline the CTR process. • Identify the types of contracts received for QA CTR. • Identify the sections of a contract. • Identify customer requirements and direction to DCMA as defined in Quality Letters of Instruction (QALIs) or Letters of Delegation (LODs). • Recognize contract deficiencies that require identification through the Electronic Data Access (EDA) system via a Contract Deficiency Report (CDR). • Record a QA CTR using the CTR eTool.

  7. Lesson Topics This lesson will cover the following topics: • Importance of QA CTR to GCQA Planning • The CTR Process • Types of Contracts Received for QA CTR • Sections of a Contract • Supplemental Requirements • Recognizing Contractual Deficiencies • Recording QA CTRs

  8. WIIFM? This lesson is important because: • CTR is the first process of DCMA’s GCQA process, so it is important to perform CTR correctly. • The output of CTR becomes the input for the Risk Assessment process. • Samples of different types of contracts are provided. • QASs must extract more information and requirements from a contract than other DCMA employees. • DCMA’s eTool is introduced.

  9. Definitions • Inspection and Acceptance (I&A) • Inspection determines whether the product/service conforms to contractual requirements • Acceptance occurs when a basis of confidence exists based on conformance to contract requirements. • Source and Destination (S/D) • Source is the supplier’s (contractor’s) location • Destination is the organization that receives the product • S/D is Source/Destination, S/S is Source/Source, and D/D is Destination/Destination

  10. Importance of qacTR to gcqa planning Lesson Topics: Importance of QA CTR to GCQA Planning The CTR Process Types of Contracts Received for QA CTR Sections of a Contract Supplemental Requirements Recognizing Contractual Deficiencies Recording QA CTRs

  11. Topic 1: Importance of QA CTR to GCQA Planning Contract Technical Review (CTR) more thoroughly analyzes technical aspects of the contract. • Why perform a CTR? • When to perform a CTR. • What to look for in a contract.

  12. CRR and CTR • Both Contract Receipt and Review (CRR) and CTR identify the nature and extent of contract requirements • CTR more thoroughly analyzes technical and quality aspects: • Technical Data Package (TDP) • Statement of Work (SOW) • Quality Assurance Provision (QAP)/Quality Assurance Letter of Instruction (QALI) • Letter of Delegation (LOD) • Other associated documents CRR CTR

  13. Why Perform CTR? To identify: • Critical items • Government’s rights • Processes and characteristics to support risk impact determination • Necessary GCQA actions resulting from risk assessment • Resource and training requirements • Requirements supplier may be unable to fulfill • Contract deficiencies

  14. When To Perform CTR DCMA Policy • On DCMA-administered contracts requiring inspection at the source: • New contracts, upon receipt • Existing contracts, upon modification • Review CTR on contracts for similar items to determine changesin technical requirements • Always document when CTRs are conducted • Note: You cannot view a CTR in eTool unless you are a member of the Contract Management Team (CMT)

  15. What To Look For in a Contract (1 of 3) • Inspection/Acceptance • Foreign Military Sales (FMS)/Military Assistance Program (MAP) • Variations in quantity • QA Plan requirement • First Article Test (FAT) • Ground and Flight Risk Clause (GFRC) • Radio Frequency Identification (RFID)/Item Unique Identification (IUID) • Aircraft Launch and Recovery Equipment (ALRE) • National Aerospace and Defense Contractors Accreditation Program (NADCAP) certified processes • Safety precautions for ammunition, ordnance, etc. • Standard inspection clause

  16. What To Look For in a Contract (2 of 3) • Certificate of Conformance (CoC) • Scheduled contract complete • Critical Characteristics (CCs) • Production Lot Testing (PLT) • Qualified Products List (QPL) • Special processes • Shipment - Continental United States (CONUS)/Outside Continental United States (OCONUS) • Critical Application Item (CAI) • Critical Safety Items (CSIs): • Aviation CSI • Non-aviation CSI • Ship CSI

  17. What To Look For in a Contract (3 of 3) • Commercial contract clause • Higher-level quality requirement • Initial delivery date • Commercial items • International Trafficking in Arms Regulation (ITAR) restrictions • Material Review Board (MRB) authority • Data item descriptions • Foreign Object Debris (FOD) requirements • Combating trafficking in persons

  18. Question and Answer When must a Contract Technical Review (CTR) be performed? • Whenever a contract deficiency is reported. • Only upon receipt of new contracts. • Upon receipt of new contracts and whenever an existing contract is modified. • Upon receipt of new contracts and whenever an in-process inspection is performed.

  19. Question and Answer Contract Technical Review (CTR) is performed to identify which two items? (Select two.) • GCQA surveillance plan • Contract deficiencies • Government’s rights • Supplier’s risk assessment

  20. The CTR Process Lesson Topics: Importance of QA CTR to GCQA Planning The CTR Process Types of Contracts Received for QA CTR Sections of a Contract Supplemental Requirements Recognizing Contractual Deficiencies Recording QA CTRs

  21. Topic 2: The CTR Process CTR is the first process performed in the GCQA cycle and includes a review of: • SOW • Technical items • System requirements • Scheduling and cost • Exhibits • Data packages

  22. GCQA 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. CTR Process 1 2 3 4 5 6 7

  24. CTR Practical Application Reviews should always include: • Contract • Statement of Work (when applicable) • Technical item description/data package • System requirements • Exhibits • Any additional customer guidance or specific direction

  25. Exercise: GCQA Strategy • Students work individually • Complete the GCQA Strategy exercise (CMQ101_M3_L1_E1_gcqa_strategy.pdf) • Match the numbered areas of the diagram with the correct title. • Be prepared to discuss with the class • Time: 5 minutes

  26. Exercise: CTR Process • Students work individually • Complete the CTR Process exercise (CMQ101_M3_L1_E2_ctr_process.pdf) • Fill in the CTR process steps using the provided list. • Be prepared to discuss with the class • Time: 5 minutes

  27. Exercise: Group Discussion • Who has seen a Statement of Work? • What is a technical item description and a data package? • What sort of quality system requirements might a contract require?

  28. CTR Process: Participate in PAOC • Conditions and factors that mandate a QA PAOC are provided in the DCMA Contract Technical Review Policy • If QAS determines that a PAOC is necessary: • Document recommendation for a full PAOC using CRR eTool (linked from CTR) • Submit recommendation to ACO via CRR • If full PAOC is declined, QAS conducts QA PAOC

  29. Question and Answer The Contract Technical Review (CTR) involves the review of the contract, technical item description/data package, system requirements, and what other documentation? • Statement of Work (if applicable) • Drawings • Additional customer guidance or specific direction • All of the above

  30. Types of Contracts Received for QA CTR Lesson Topics: Importance of QA CTR to GCQA Planning The CTR Process Types of Contracts Received for QA CTR Sections of a Contract Supplemental Requirements Recognizing Contractual Deficiencies Recording QA CTRs

  31. Topic 3: Types of Contracts Received for QA CTR There are five procurement types that may be received for a QA CTR. The type is designated in the ninth position of the contract number.

  32. Contract Numbering • Procurement Instrument Identification Number (PIIN) • The contract/Purchase Order (PO) number • 13 characters • Supplementary Procurement Instrument Identification Number (SPIIN) • Commonly known as the Delivery Order (DO) or Call Number • 4 characters PIIN SPIIN SP0400 4402A X X

  33. Contract Numbering Example N00383-06-G-0225-GB05 • PIIN • N00383 - Issuing department/agency office identification [Department of Defense Activity Address Code (DoDAAC)] • 06 - Fiscal year in which the PIIN was assigned • G - Procurement Instrument Identifier (PII); procurement type • 0225 - Serial Number • SPIIN identifies: • Amendments to solicitations • Modifications to contracts and agreements • Calls/orders under contracts, basic ordering agreements, or blanket purchase agreements PIIN SPIIN

  34. Procurement Instrument Types

  35. When to use a BOA or IDIQ? • BOA is not a contract; it is a written agreement between supplier and agency that contains: • Terms and clauses • Supply/service description • Pricing method • Does not identify quantity or delivery schedule • BOAs and IDIQs have associated delivery orders

  36. Exercise: Procurement Types • Students work individually • Complete the Procurement Types exercise (CMQ101_M3_L1_E3_procurement_types.pdf) • Fill in the procurement description using the provided list. • Be prepared to discuss with the class • Time: 5 minutes

  37. Question and Answer Which procurement type is a Basic Ordering Agreement? • Type C • Type D • Type G • Type M • Type P

  38. Sections of a Contract Lesson Topics: Importance of QA CTR to GCQA Planning The CTR Process Types of Contracts Received for QA CTR Sections of a Contract Supplemental Requirements Recognizing Contractual Deficiencies Recording QA CTRs

  39. Topic 4: Sections of a Contract Widely used contract formats: • Uniform Contract Format (UCF) • Organized into four main parts • Sections within parts facilitate locating specific information • Standard Contract Format • Sections similar to UCF

  40. Uniform Contract Format Part I: Schedule Sections A – H Part II: Contract Clauses Section I Part III: List of Documents and Attachments Section J Part IV: Instructions Sections K – M

  41. Part I: Schedule Part I: Schedule Section A: Solicitation Form, SF 33 Section B: Supplies or Services Section C: Description/Specifications Section D: Packaging and Marking Section E: Inspection and Acceptance Section F: Delivery and Performance Section G: Contract Administration Data Section H: Special Provisions

  42. Part I: Schedule, Section A Part I: Schedule Section A: Solicitation Form, SF 33 • Usually first page • Contains admin data: • Contract number • Issuing office • Administrative office • Payment office • Effective date • Signatures • Table of Contents (TOC) • Brief description of schedule/services Section B: Supplies or Services Section C: Description/Specifications Section D: Packaging and Marking Section E: Inspection and Acceptance Section F: Delivery and Performance Section G: Contract Administration Data Section H: Special Provisions

  43. Part I: Schedule, Section B • Provides descriptions, costs, quantity, and measurements • May also contain: • Accounting Classification Reference Number (ACRN) • Inspection point • Acceptance point • Free On Board (FOB) point • Receiving activity address • Delivery schedule • Delivery date • National Stock Number (NSN) Part I: Schedule Section A: Solicitation Form, SF 33 Section B: Supplies or Services Section C: Description/Specifications Section D: Packaging and Marking Section E: Inspection and Acceptance Section F: Delivery and Performance Section G: Contract Administration Data Section H: Special Provisions

  44. Part I: Schedule, Section C Part I: Schedule Section A: Solicitation Form, SF 33 Section B: Supplies or Services • Description of procured items • Includes specifications and SOW supplier will use for guidance Section C: Description/Specifications Section D: Packaging and Marking Section E: Inspection and Acceptance Section F: Delivery and Performance Section G: Contract Administration Data Section H: Special Provisions

  45. Part I: Schedule, Section D Part I: Schedule Section A: Solicitation Form, SF 33 Section B: Supplies or Services Section C: Description/Specifications Instructions for special packaging and marking of procured items Section D: Packaging and Marking Section E: Inspection and Acceptance Section F: Delivery and Performance Section G: Contract Administration Data Section H: Special Provisions

  46. Part I: Schedule, Section E Part I: Schedule Section A: Solicitation Form, SF 33 Section B: Supplies or Services Section C: Description/Specifications • Specifies location and responsibility for inspection of supplies and services • Defines acceptance point • Identifies required reports • Quality requirements/ clauses Section D: Packaging and Marking Section E: Inspection and Acceptance Section F: Delivery and Performance Section G: Contract Administration Data Section H: Special Provisions

  47. Part I: Schedule, Section F Part I: Schedule Section A: Solicitation Form, SF 33 Section B: Supplies or Services Section C: Description/Specifications • Identifies: • Delivery location • Delivery date(s) • Quantities required for each delivery • FOB point • Stipulates Government’s required delivery schedule Section D: Packaging and Marking Section E: Inspection and Acceptance Section F: Delivery and Performance Section G: Contract Administration Data Section H: Special Provisions

  48. Part I: Schedule, Section G Part I: Schedule Section A: Solicitation Form, SF 33 Section B: Supplies or Services Section C: Description/Specifications • Contains financial data for the contract • Includes: • Accounting data • Appropriation data (including ACRN) • Provides instructions for preparing payments Section D: Packaging and Marking Section E: Inspection and Acceptance Section F: Delivery and Performance Section G: Contract Administration Data Section H: Special Provisions

  49. Part I: Schedule, Section H Part I: Schedule Section A: Solicitation Form, SF 33 Section B: Supplies or Services • Requirements for: • Transferring items • Moving items • Invoicing items • Instructions for awarding option items to the contract • Warranty information • Protection of technical data [International Traffic in Arms Regulations (ITAR)] Section C: Description/Specifications Section D: Packaging and Marking Section E: Inspection and Acceptance Section F: Delivery and Performance Section G: Contract Administration Data Section H: Special Provisions

  50. Part II: Contract Clauses Part II: Contract Clauses Section I: Contract Clauses • Lists clauses that govern contract performance • Clauses are taken from: • Federal Acquisition Regulation (FAR) • Defense Federal Acquisition Regulation Supplement (DFARS)

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