overview of dfars case 2009-d008 presented by: tom ruckdaschel july 2011
TRANSCRIPT
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Overview of DFARS Case2009-D008
Presented By:
Tom Ruckdaschel
July 2011
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The information contained in this presentation represents only the personal views of the presenter and not necessarily those of the United States Government, DoD or DCMA. The information presented should not be construed as changing or modifying any statute, regulation, DoD or DCMA policy or guidance, or any term(s) of any contract with the United States Government or any department or agency of the United States Government. The information presented also does not affect in any way, any on-going or future property management system analysis.
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Where DCMA Fits Under DoD
Under Secretaryof Defense
(Acquisition, Technology & Logistics)
ChairmanJoint Chief of Staff
ArmyNavy
Air ForceMarine Corps
Secretaryof
Defense
(Combat Support Agency)Assistant Secretary of Defense
(Acquisition)
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OperationsDirectorate
InternationalDirectorate
Special Programs Directorate
Office of the Director
Human Capital
Directorate
Finance Business
OperationsDirectorate
Contracts Directorate
Engineering & Analysis Directorate
Quality Directorate
Portfolio Management & Integration Directorate
Information Technology Directorate
Chief of Staff
ReserveAffairs
CorporateSupport
Office of Independent Assessment
AircraftOperationsDirectorate
EEO
General Counsel
StrategicEffects
Eastern RegionEastern Region Western RegionWestern RegionCentral RegionCentral Region
PrimaryCMO
PrimaryCMO
StreamlinedCMO
StreamlinedCMO
PrimaryCMO
PrimaryCMO
StreamlinedCMO
StreamlinedCMO
PrimaryCMO
PrimaryCMO
StreamlinedCMO
StreamlinedCMO
Strategic
Operational
Tactical
Organizational Structure
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Our CONUS Presence
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Western CMOsHeadquarters – Carson
•Denver•Boeing Huntington Beach•Lathrop•Lockheed Martin Denver•Boeing Long Beach•Los Angeles•Palmdale•Phoenix•Santa Ana•Lockheed Martin Sunnyvale•Raytheon Tucson•NPO
Central CMOsHeadquarters - Chicago
•Chicago•Dallas•Dayton•Detroit•Lockheed Martin Forth Worth•Bell Helicopter Forth Worth•Huntsville•Boeing St. Louis•Twin Cities•AMP•AIMO
Eastern CMOsHeadquarters - Boston
•Atlanta•Baltimore•Boston•Garden City•Hartford•Manassas•Lockheed Martin Marietta•Lockheed Martin Moorestown•Orlando•Philadelphia•Boeing Philadelphia•Sikorsky Aircraft•Springfield•Raytheon Tewksbury•APO•NSEO
Special Programs
•Special Programs East
•Special Programs South
•Special Programs West
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Our International Presence
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DCMA Core Functions
• Contract Management
• Cost and Pricing
• Property and Plant Clearance
• Quality Assurance
• Engineering and Analysis Support
• Delivery Schedule Management
• Earned Value Management
• Contract Safety
• Transportation
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FAR 42.302(a)(b)
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Property and Plant Clearance
• Four Business Areas:• Property Center (CONUS)• DCMA International (OCONUS)• Contingency Contracting (Iraq/Afghan)• Special Programs
• Ensure contractors meet FAR/DFARS requirements
• Provide effective and efficient oversight & surveillance (property audits)
• Perform reutilization screening (of excess property, as required) [Plant Clearance Center]
• Evaluate contractor reported property loss, damage destruction, theft
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Important Terminology
• Federal Acquisition Regulation (FAR)• Defense Federal Acquisition Regulations Supplement
(DFARS)• Procedures, Guidance and Information (PGI)• Contractor Inventory (FAR Part 45.101)• Plant Clearance Officer (FAR Part 45.101)• PCARSS: Plant Clearance Automated Reutilization
Screening System
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Current Issues
• Problem statement: “General uncertainty in property disposition/plant clearance; wide swings in policy interpretation; many “myths and legends”
• DoD DFARS Parts 245.5, 245.6/7—in need of substantial update and reform• Obsolete policy and terminology (somewhere between 35 and 40
years old)• Not contractually binding on contractors (no clauses)
• FAR also requires clarification…so:• Two proposed rules in play:
• FAR Case 2009-009• DFARS Case 2009-D008
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DFARS Parts 245.6/7 (cont.)
• Proposed rule published Dec. 3, 2010
• Major change: establishes a DFARS clause for property disposition/plant clearance
• DoD does not have its own clause for property disposition
• Why is this important?• Unlike other life-cycle events, property
disposition authority is mostly statutory
• PCARRS not contractually binding
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• Plant Clearance Automated Reutilization and Screening System
• The “automated Inventory Schedule” [SF 1428]
• Deployment began in 1995• Used by most DoD
contractors
Quick Overview PCARSS
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• Included in the new DFARS clause clause
• Makes clear that contractor use of PCARSS is contractually required
DFARS Parts 245.6/7 (cont.)
“The contractor shall complete SF 1428, Inventory Schedule B, within the PCARSS.”
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Highlights (cont.)
New DFARS 245.107: “Use the clause at 252.245-70XX in solicitations and contracts that contain 52.245-1.”
Bottom line: the new DFARS clause is mandatory for DoD contracts containing the FAR clause
What about legacy contracts? I knew you would ask…
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What’s Changed
• Deletes:• Obsolete special processing requirements
• Industrial Plant Equipment (not since 1994)• Contractor Inventory Redistribution System• Automated Data Processing Equipment
• Obsolete supply condition codes• Inventory Schedule “D”• Modified Plant Clearance language
• Clarifies:• Scrap requirements• Demilitarization requirements• Trade Security Control issues
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Overview: New PGI
• PGI 245.602-70—• Contains procedures in assigning a plant clearance case; establishing a case file • Clarifies use of DLA Disposition Services (“DRMO”)• Provides new direction for Plant Clearance Officers on Trade Security Controls (TSC):
• Ensure prospective buyers are not an ineligible transferee (those on the excluded party list)• Cross reference contractor inventory to an NSN and DEMIL code• Consult with DEMIL Program Office/Trade Security Control Program office (can property be
sold to the public? Is a TSC assessment required?)• Provide end use certificate as required
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Overview: Scrap Disposal
• Revised/update definition of scrap• Scrap procedures
• No requirement for Govt “approval”• Consistent with FAR Case 2010-009
• Procedure should provide for the “effective and efficient disposition of scrap”• Minimize costs• Maximize proceeds• Contain appropriate internal controls (mitigate improper release)
• Commingling of Government owned/contractor owned scrap is “allowed’ with PLCO approval
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Highlights (cont.)
• 245.603-3, Screening• Must be DoD-wide; must take place before sale
• Requiring agency has priority
• 245.604-3, Sale• Informal/formal bids
• 252.245-70XX, new definitions• Commerce Control List Items
• Munitions List Items
• Scrap
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Revised/New Scrap Policy (cont.)
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Fed. Register Notice-Dec 2010
Lists allchanges
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“The Contractor shall demilitarize contractor inventory possessing offensive or defense characteristics, and not required within DoD, in accordance with the terms and conditions of the contract and, consistent with Defense Demilitarization Manual, DoD 4160.21-M-1, edition in effect as of the date of this contract.”
This language makes clear that demilitarizationrequirements should be spelled out –up front
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Summary
• Be aware that:• The rule includes a new clause -- 252.245-70XX
• The clause will require DoD contractors to:
• use PCARSS
• develop a scrap procedure (if applicable)
• ensure proper review of sales buyers
• Also…that the Government has to include demilitarization requirements within contract terms and conditions
• Other discussion items• Export controls• Trade Security Control clearances• Property disposal overseas
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• Review DFARS and FAR proposed and interim rules
• Change Notices:
http://www.acq.osd.mil/dpap/dars/change_notices.html
• Submission input of public comments:
http://www.acq.osd.mil/dpap/dars/out_for_public_comment.html
View public comments on proposed & interim rules
• DFARS rules:
http://www.acq.osd.mil/dpap/dars/out_for_public_comment.html
• FAR rules: www.regulations.gov
• View status of open cases
• DFARS rules: http://www.acq.osd.mil/dpap/dars/case_status.html
• FAR rules: http://www.acq.osd.mil/dpap/dars/far_case_status.html
Useful Information
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