# Presentation: 723276

**DCMA Small Business Initiatives**
**Presented By:**
**Ms. Barbara Little, Director**
**Small Business Programs **
**October 24, 2005 **

** **

## OUTLINE 

**Who We Were **
**Who We Are Today**
**Small Business Realignment **
**What’s Next **

## Worldwide  Acquisition Impact

**Worldwide  Acquisition***** *****Impact**

**Span of Control**
-  10,479 civilian professionals
- - ACOs, PI, QA, Engr, IS, Prop
-  605 Military (includes reserves)
-  900+ locations
-  50 major field Commands
-  $1.1B budget authority
-  $50M NASA and other Federal Agencies
-  $67M reimbursable FMS

**Scope of Work**
-  $1,812B Face Value of Contracts
-  15,029 Contractors
-  298,678 Contracts
-  $154B Unliquidated Obligations
-  All ACAT 1 and 2 programs
-  Flight Operations (1,150 Aircraft/yr)
-  $92B Gov’t property in plant
-  $7B Progress Payments
-  $16B Performance Based Payments

**as of 7/7/2005  (Parts A & B / Sections 1 – 4) **

**Notes:**
Source:
# Civilians / Locations – People (civ).ppr
# Field Commands - CAS Directory
Budget - DCMA-FBB
Reimbursables - DCMA-FBR
Contracts / Contractors / $ Values - Agency Briefing Data.xls (Query Studio Reports)
Govt Prop / PPRs / PBPs – propertyvalue.imr / ppr1.imr / pbp1.imr  (Query Studio Reports)

## DCMA Today 

**DCMA Today **

**Civilians:                          10,479**
**Military:                               605**
**   **Active                                 425
-    Reserve                              180
**Districts:                                  3**
**Major Commands:               50**
**Subordinate Commands:     80**
**Field Locations:                 900+**

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## Institutionalize a Performance Based culture
Expand enterprise thinking
Focus on what’s important to our customers
Identify ways to remove organizational impediments to customer alignment
Fine tune technical expertise in areas most important to meeting customer requirements

**Expand enterprise thinking**
**Focus on what’s important to our customers**
**Identify ways to remove organizational impediments to customer alignment**
**Fine tune technical expertise in areas most important to meeting customer requirements**

**Our New Roadmap**

**Bottom Line: Eliminate “organizational distractions”  and concentrate on achieving customer outcomes**

## Geographically organized
Diffused Corporate knowledge
Little focus on commodity-specific skill development
No single focal point for major programs or customers
HQs, Districts & Field Offices have redundant functions/specialties

**Geographically organized**
**Diffused Corporate knowledge**
**Little focus on commodity-specific skill development**
**No single focal point for major programs or customers**
**HQs, Districts & Field Offices have redundant functions/specialties**

***Current***** CONUS Alignment Strategy**

- Time To Change!!

## Step #1:  Align PEO portfolio to single executive
Portfolio management for PEO assigned to a specific District Director based on where majority of work is accomplished
Step #2: Realign field offices to districts by PEO lead responsibility
Aeronautical; 
Space and Missiles; 
Ground Systems and Munitions; 
Naval Sea Systems 

- DCMA Boeing St Louis
- DCMA Boeing Mesa
- DCMA Boeing Long Beach
- DCMA LM Fort Worth
- DCMA BHTI
- DCMA NG El Segundo
- DCMA Boeing Wichita
- DCMA Palmdale

_**From East:**_
- DCMA Aircraft Propulsion
- DCMA Boeing Philadelphia
- DCMA LM Marietta
- DCMA LMSI
- DCMA AIMO
- DCMA Sikorsky
- DCMA Long Island

**Step #1:  Align PEO portfolio to single executive**
- Portfolio management for PEO assigned to a specific District Director based on where majority of work is accomplished
**Step #2: Realign field offices to districts by PEO lead responsibility**
- Aeronautical;
- Space and Missiles;
- Ground Systems and Munitions;
- Naval Sea Systems

**New PEO Alignment Strategy**
**Aeronautical**

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## Step #1:  Align PEO portfolio to single executive
Portfolio management for PEO assigned to a specific District Director based on where majority of work is accomplished
Step #2: Realign field offices to districts by PEO lead responsibility
Aeronautical; 
Space and Missiles; 
Ground Systems and Munitions; 
Naval Sea Systems 

- DCMA Huntsville
- DCMA Orlando

**Step #1:  Align PEO portfolio to single executive**
- Portfolio management for PEO assigned to a specific District Director based on where majority of work is accomplished
**Step #2: Realign field offices to districts by PEO lead responsibility**
- Aeronautical;
- Space and Missiles;
- Ground Systems and Munitions;
- Naval Sea Systems

_**From West:**_
- DCMA Raytheon Tucson
- DCMA LM Denver
- DCMA LM Sunnyvale
- DCMA Boeing Space &
-    Missles Seal Beach
- DCMA NASA
- DCMA Denver
- DCMA Dallas
- DCMA Santa Ana
- DCMA Northern California
- DCMA Los Angeles

**New PEO Alignment Strategy**
**Space and Missiles**

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## Step #1:  Align PEO portfolio to single executive
Portfolio management for PEO assigned to a specific District Director based on where majority of work is accomplished
Step #2: Realign field offices to districts by PEO lead responsibility
Aeronautical; 
Space and Missiles; 
Ground Systems and Munitions; 
Naval Sea Systems 

- DCMA Detroit
- DCMA Philadelphia
- DCMA Missiles, Munitions,
-    and Combat Systems
-          -- DCMA Raytheon
-              Boston Missile Ops
-          -- Boeing St Louis
-              Weapons & FCS
-              Team

**Step #1:  Align PEO portfolio to single executive**
- Portfolio management for PEO assigned to a specific District Director based on where majority of work is accomplished
**Step #2: Realign field offices to districts by PEO lead responsibility**
- Aeronautical;
- Space and Missiles;
- Ground Systems and Munitions;
- Naval Sea Systems

- - PEO-Ammunition
- - PEO-Ground Combat Systems
- - PEO-CS and CSS

_**From West:**_
- DCMA Chicago
- DCMA Stewart & Stevenson

**New PEO Alignment Strategy**
**Ground Systems and Munitions**

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## Step #1:  Align PEO portfolio to single executive
Portfolio management for PEO assigned to a specific District Director based on where majority of work is accomplished
Step #2: Realign field offices to districts by PEO lead responsibility
Aeronautical; 
Space and Missiles; 
Ground Vehicles and Munitions; 
Naval Sea Systems 

- DCMA Ships Systems Ops
-     LMDV MS2
-     Raytheon Boston Ships
- DCMA Springfield
- DCMA Boston
- DCMA Hartford
- DCMA Atlanta
- DCMA Maryland

**Step #1:  Align PEO portfolio to single executive**
- Portfolio management for PEO assigned to a specific District Director based on where majority of work is accomplished
**Step #2: Realign field offices to districts by PEO lead responsibility**
- Aeronautical;
- Space and Missiles;
- Ground Vehicles and Munitions;
- Naval Sea Systems

**New PEO Alignment Strategy**
**Naval Sea Systems**

_**From West:**_
- DCMA San Diego

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## Concept of Operations

**Comprehensive Program:  How our customers feel about our services  **
- Program Managers:
- Lockheed Martin – Micole Stephens
- Boeing – Micole Stephens
- Raytheon, Northrop Grumman ACS/ESS – Luz Vasquez
- Harris, L3, General Dynamics – Elaine Howell
- Sikorsky, Pratt & Whitney, General Electric – Linda Dowers
- Bell Helicopter, Textron, Hamilton Sundstrand, BAE – Willis Jones
- Program Managers will perform full review themselves all year long w/focus on:
- Methodology for developing forecast
- Analysis of how what is subcontracted is changing
- Outreach effectiveness
- Progress on initiatives to improve performance
- Mid-year, year end and 640 reviews still required
- Copy goes to PCO, Military Service and OSD
- Program manager briefs review results to Military Service and OSD
- Objective – Reviews and negotiations done in IPT fashion
** **

## Concept of Operations

**Pre-Award Subcontracting Plan Reviews **
- All customer requests will be honored
- Requests will be sent to Center central receipt point
- Perform detailed review of what is being subcontracted (e.g. Boeing NSM)
- Objective – 100% of reviews completed with new methods Dec 1, 2005

## Concept of Operations

**Feedback to PCO at Contract Completion **
- Mandatory for all contracts assigned** **
- Provide recommendations for any future contracts with this contractor
- Provide results of last compliance review
- Copy to PCO and Military Service Small Business Office
- Objective – Doing this now

## Concept of Operations

**Post-Award Small Business Reviews (FAR 42.302(54)(55), 19.705(a)-(g))**
- Standard is periodic monitoring vs. set schedule
- Review plan established for the year based on value-added customer outcomes
- Use revised 640 Form
- Send copy of report to contractor, PCO and CMO ACO  w/cover ltr of next steps
- Send copy directly to PCO and Military Service Small Business Office
- Survey form will be attached
- One on one engagement with buying commands throughout the year
- Where we Headed
- Customer alignment based on buying activity with Customer Liaisons Reps
- Engage CLRs for intro to all subcontracting plans prior to award and acquisition strategy sessions
- Customer alignment based on other buying activities
- Objective – Complete alignment by Nov 15, 2005

## Mentor-Protégé Major Changes

** ****Develop Protégé Review Form for Annual Review**
** ****Develop Protégé Post Agreement Review Form**
** ****Reviews to provide more analytical data and recommended corrective actions**
** ****DCMA to approve all Credit Agreements **
** ****Division will conduct reviews on both Mentor and Protégé**
** ****More involvement with the Customer on agreements and performance **
**     **

## Subcontracting Performance

## Special Study of Comp Contractors  

**Strategy **
**Determine if small business performance could be improved**
**Transform the way DCMA negotiates with Comp contractors**
**Establish benchmark performance levels**
**Outcome**
**Improve contractor small business performance Improve**
**Metrics **
**Positive improvement on goals negotiated**

## Contractors Reviewed  

**Raytheon**
**Boeing **
**Lockheed Martin  **
**Textron **
**Northrop Grumman ACS**
**GE **

- Not meeting DoD goals        or having negative trends

## Results of Study/Negotiation

## Study Method

**Center for Naval Analysis  **
**Obtained Purchasing Info  **
**Analyzed the Data**
**Made Recommendations **
**Write Final Report**
**DCMA**
**Negotiate SB Goals**
**Share Competitor Supplier Lists with All   **

- WHAT THEY BUY
- AND FROM WHOM

## REVIEW DETAILS 

**Subcontracting forecast**
**Subcontract spend**
**Goal ownership **
**Outreach effectiveness **
**SBIR interface**
**Mentor – Protégé participation **

## Subcontract Purchase History For Past 18 Months

## Subcontract Purchase History For Past 18 Months (Cont’d)

## SMALL BUSINESS USAGE 

## EXAMPLE --THE END RESULT  

## Study Conclusions  

**Contractors performance can be improved**
**DoD goals can be met in most cases**
**Major changes needed in Comp Program **

## QUESTIONS  

- DCMA Small Business Center Toll Free Number:  1-877-662-3960
- barbara.little@dcma.mil