The Nation’s Combat Logistics Support Agency Established 1961

WARFIGHTER ALWAYS

Supplier Operations 

Commodities Webinar Series

Daniele Kurze, Director Supplier 

Operations Commodities

August 3, 2022
WARFIGHTER ALWAYS WARFIGHTER ALWAYS

Agenda

• Opening Remarks

– Daniele Kurze, Director Supplier Operations Commodities

• Facilitator

– Commander Isaac Ortman, Supply Corps, U. S. Navy, Deputy Director, Supplier Operations Commodities

– Kelvin Goodwine, Division Chief, Supplier Operations Commodities (Vendor Support)

• Presenters

– Ryan Kidd, DCMA Headquarters, DFAS Liaison & Contract Maintenance Co-Lead Performance & Systems

– Sandra Nelson, DCMA Headquarters, Industrial Specialist

– Christopher Ford, DCMA Headquarters, Quality Assurance Specialist

• Open Q&A

– Joseph Levenduski, DCMA Headquarters, Industrial Engineer

– Anita Soo Hoo, Systems Analyst, DLA Headquarters, Logistics Operations 

– Heidi LaCosse, Supervisory Procurement Specialist (Branch Chief), Supplier Operations Commodities

– James “Jim” Glenn, IST Chief, Cables, Electrical and Lighting, Supplier Operations Commodities 

– Jeremy Prince, Contract Specialist Team Lead/Contracting Officer, Airframes and Engines Division, Supplier Operations Commodities

– Morishita Armstead, Supervisory Contract Specialist, Supplier Operations Commodities (Vendor Support)

– Schelica Grant, Supervisory Contract Specialist, Supplier Operations Commodities (Customer Support)

– Tyler Bishop, Product Specialist, Supplier Operations Commodities (Testing Coordinator)

– Lynn Bangs, Lead Financial Liaison (DLA Direct), DLA Aviation

– Christian Lonzon, Lead Financial Liaison (Customer Direct), DLA Aviation

– Steven Powell, Service-Disabled Veteran Owned Program Manager, DLA Aviation

Briefer: Daniele Kurze 2
WARFIGHTER ALWAYS WARFIGHTER ALWAYS

How to Submit a Question

in the Q&A

Briefer: Daniele Kurze 3
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

Presented By:

A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

UNCLASSIFIED

Ryan Kidd, Sandra Nelson & Christopher Ford

DCMA Contracting, Industrial Specialist & Quality Assurance

August 3, 2022

DCMA 101 – An Introduction to DCMA

(Contributing to the DLA Aviation Post-Award (Commodities) Webinar Series)

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 5

UNCLASSIFIED

UNCLASSIFIED

• DCMA Overview

• DCMA Functional Overviews

‒ Contracting 

‒ Industrial Specialist

‒ Quality Assurance Surveillance

Agenda
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 6

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UNCLASSIFIED

DCMA Overview

Mr. Ryan Kidd
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 7

What DCMA Does

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UNCLASSIFIED

https://www.dvidshub.net/video/480264/dcma-does

DCMA Overview Brief
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 8

DCMA Mission, Authority & Functions (DoDD 5105.64)

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• DCMA performs Contract Administration Services for DoD and authorized federal agencies, 

foreign governments, international organizations, and others.

• Specific guidance on roles & responsibilities for Contract Administration functions

• Federal Acquisition Regulation 42.302(a) 

• Defense Federal Acquisition Regulation Supplement 242.302(a)

• 78 functions (normally assigned to DCMA) if DCMA administers the contract • Incorporates broad range of disciplines: Contract Administration, Engineering, Quality Assurance, Financial 

Management and Payments, Higher level Financial Analysis, Project Management, Industrial and Property 

Management, Safety, Aviation, and Accounting

̶ 4 functions must be performed by DCMA

• Negotiation of forward pricing rate agreements 

• Establishment of final indirect cost rates and billing rates

• Determination of contractor’s compliance with Cost Accounting Standards; including disclosure statement 

adequacy & compliance

• Determination of Adequacy of contractor's accounting system
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 9

Mission, Vision, Values

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• Mission

• We are the independent eyes and ears of DoD and its partners, enhancing warfighter 

lethality by ensuring timely delivery of quality products, and providing relevant 

acquisition insight supporting affordability and readiness.

• Vision

• A team of trusted professionals delivering value to our 

Warfighters throughout the acquisition lifecycle.

• Values

• Integrity, Service and Excellence
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 10

Defense Acquisition Community

UNCLASSIFIED

UNCLASSIFIED

Under Secretary of Defense

(Acquisition & Sustainment)

Defense Contract 

Management Agency

Chairman

Joint Chiefs of Staff

Secretary of Defense

Buying Commands

Combat Support Agency

Army

Navy

Air Force

Marines

Contract Administration Space Force

Defense Logistics 

Agency
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 11

Organizational Leadership Chart

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Mobilization 

Assistant

Col Owens

Equal Employment 

Opportunity

Ms. Galimore 

Central Region

COL Mazure

East Region

CAPT Dini

Quality 

Assurance

Mr. Shields

Portfolio 

Management & 

Business Integration

Mr. Eady

International

CAPT Russo

Sr En Advisor

CMSgt Rising

Cost & Pricing 

Mr. Bennett

AIMO

CAPT Carty

Chief of Staff

Mr. Rosenberger

Technical 

Directorate

Mr. Lupone

Corporate 

Operations

Mr. Rosenberger

Aircraft 

Operations

CAPT Gephart

Director

LTG Bassett

Office of Internal 

Audit & IG

Mr. Conforto

Financial & 

Business Ops

Dr. Wilcoxon

General Counsel

Mr. Tremaglio

Information 

Technology

Ms. Schultheis

(Acting)

Total Force

Ms. Butera 

(Acting)

Deputy Director

Ms. Ebright

Special Prgms

Mr. Norris

Contracts

Mr. Morgan 

(Acting)

West Region

Col Kennebrae
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 12

Presence in the U.S.

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UNCLASSIFIED

DCMA Western Region

Headquarters – Carson, CA

Contract Management Offices

- Carson, CA

- Denver, CO

- Lockheed Martin Denver, CO

- Lockheed Martin

Sunnyvale, CA

- Los Angeles, CA

- Palmdale, CA

- Phoenix, AZ

- Raytheon, Tucson, AZ

- Santa Ana, CA

- Stockton, CA

- NPO

(NASA Product Operations), 

San Antonio, TX

DCMA Eastern Region

Headquarters – Boston, MA

Contract Management Offices

- Atlanta, GA

- Baltimore, MD

- Boeing, Philadelphia, PA

- Boston, MA

- Garden City, NY

-Hampton, VA

- Hartford, CT

- Lockheed Martin,

Marietta, GA

- Lockheed Martin,

Moorestown, NJ

- Lockheed Martin, Orlando, FL

- Manassas, VA

- Orlando, FL

- Philadelphia, PA

- Raytheon, Tewksbury, MA

- Sikorsky Aircraft,

Stratford, CT

- Springfield, NJ

- APO (Aircraft Propulsion 

Operations), Hartford, CT 

- NSEO (Naval Special Emphasis 

Operations), Philadelphia, PA 

DCMA Central Region

Headquarters – Chicago, IL 

Contract Management Offices

- Bell Helicopter,

Forth Worth, TX

- Boeing, St. Louis, MO

- Chicago, IL

- Dallas, TX

- Dayton, OH

- Detroit, MI

- Huntsville, AL

- Lockheed Martin,

Forth Worth, TX

- Twin Cities, MN

DCMA

Headquarters – Fort Lee, VA

Contract Management Offices
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

Overseas Presence

Australia

• Melbourne

• Nowra

• Williamtown

• Amberly

DCMA 

International HQ

Ft Lee, VA

Americas

Ottawa, ON

Canada

• London, ON

• Montreal, ON (3)

• Toronto, QC

• Vancouver, BC

Europe

Wiesbaden, Germany

United Kingdom

• Bristol

• Huntingdon/Wyton

• Samlesbury

Israel

• Herzilya

Italy

• Cameri

• Milan

Middle East

Saudi Arabia, Riyadh Kuwait

• Kuwait City (Arifjan)

Pacific

Singapore

Korea

• Busan

• Daegu

Japan

• Atsugi

• Komaki

• Iwakuni

• Kisarazu

• Mizuho

• Nagoya

• Okinawa

Taiwan 

• Taichung

New Zealand

• Christchurch

Americas

Middle East

Europe

Pacific

Future Locations

Qatar

Greece

• Athens

UNCLASSIFIED

UNCLASSIFIED 

13
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 14

Typical Contract Management Office (CMO)

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Mandatory Structure

Flexible ─ based 

on workload

Contracts Group Quality 

Assurance Group

Engineering/

Manufacturing

Group

Commander/

Director

QA Team Engineering Team Manufacturing Team Contracts 

Team

• Full service on-site support

o Can be either co-located with major contractor or 

geographically oriented 

• On-site eyes and ears of the customers

• Accept products for military services

• Provide business systems insight and ensure compliance

• Analyze contractor performance capability

• Assess contractor progress and authorize payments
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 15

Scope of Work and Span of Control

2QFY22 data

Total Contract Amount $3.92 trillion

Obligated Amount $2.208 trillion

Serviced Contractor Locations 15,482

Active Contracts 226,230

• Contract Unliquidated Obligations $328.6 Billion

• ACAT I (IAC, IC, ID) & II Programs 150

Aircraft Accepted into Service Inventory Q2 268 / YTD 529

Aircraft Acceptance Flying Hours Q2 3,001 / YTD 5,939 

Oversight of Government Property $169.5 billion

Progress Payments $28.2 billion

Performance-based Payments $15.7 billion

Scope of Work Span of Control

Civilians On-Board 10,339

Military (Active Duty – 392, 

Reserve – 175) 567

Budget Authority $1.04 billion

Reimbursable Target $267 million

DCMA authorizes $881.3 million in 

contractor payments each business day 

(FY22 average to date).

e

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A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 16

DCMA Value throughout the Contract Lifecycle 

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A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 17

DCMA Acquisition Workforce

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85%

15%

DCMA Civilian Workforce

Acquisition

Non-Acquisition

35%

30%

13%

7%

3%

3% 2%

7%

DCMA Acquisition Employees

Quality Assurance

Contracting - Cost/Pricing

Engineers

Industrial Specialist

Program Integration

Property Management

Information Technology

Various Other
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 18

From Paper to Product: We Are DCMA

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https://www.dvidshub.net/video/691167/paper-product-we-dcma
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 19

UNCLASSIFIED

UNCLASSIFIED

DCMA Strategic Plan Fiscal Year 2022-2026

More information available at: https://www.dcma.mil/Portals/31/Documents/DCMA_Strategic_Plan-FY22-26.pdf
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 20

UNCLASSIFIED

UNCLASSIFIED

DCMA Strategic Plan Fiscal Year 2022-2026

More information available at: https://www.dcma.mil/Portals/31/Documents/DCMA_Strategic_Plan-FY22-26.pdf
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 21

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DCMA Contracting Overview

Mr. Ryan Kidd
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 22

Agenda

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• Contracts Executive Directorate Overview

• Current Initiatives
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

Contracts Executive Directorate Overview

23

Contracts Executive Directorate

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A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 24

DCMA Contracting (AQ)—Org Chart

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DIVISIONS

DCMAE

Tim Keenan

DCMAC

John Teetsov

DCMAW

Tina Garner

DCMA-PC

Randy Herrera

DCMA AIMO

Paula Merritt

DCMAS

Linda DeVance

(Acting)

DCMAI

Rhonda Daniel 

(Acting)

OPERATIONAL

CONTRACTS DIRECTORS

CONTRACTS 

EXECUTIVE 

DIRECTORATE

DCMA-AQ

CENTERS

Executive Director

Craig Morgan (Acting)

AQA

Strategic Engagement & 

Talent Management

Marc Rabinowitz

AQC

Contracts/Pricing Policy & 

Processes

Sherri Hood (Acting)

AQP

Procurement

Kathleen Lemming

AQPMR

Procurement Management 

Review

COL Joseph Davis

AQPW

Procurement Center

Dewey Faniel

AQI

Performance & Systems 

Management

Erik Mims (Acting)

AQII

FIRM Center

Erik Mims

AQB

Business Operations Center

Robert Brown

AQBP

Plant Clearance Group

Luke Wayne

AQBY

Property Group

Lachance/Salazar/Day

AQS

Subcontract and Small 

Business Compliance Center

Kelli Zagata

AQSA

Contractor Purchasing 

System Review Group

John Foley

AQSC

Small Business Compliance 

Group

Sonny Hatcher

AQSS

Small Business Specialized 

Support Group

Shelly Thomas

AQX

Contract Lifecycle 

Management Center

Johanna Akinfenwa

AQXA

Closeout Production

Group A

Fred Roitz

AQXB

Closeout Production

Group B

Johanna Akinfenwa

AQXT

Terminations Group

Pamela Mitchell

Deputy Director

Patricia McMahon

DAR Council Rep

Robin Gregory
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 25

AQ Divisions/Center—“At A Glance”

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AQA

Strategic Engagement & Talent 

Management Div

• Warrants

• Professional Certifications

• Training

• Acquisition PDs

• FOIA Requests

• DCMA’s GPC program

AQC

Contracts/Pricing Policy & 

Processes Div

• Policy & Processes for Contract 

Management, Cost & Pricing, & 

Financing & Payment

• Contractor Business Systems 

Panels

• Contract Management Board of 

Reviews

• GAO/DODIG responses

• DFARS case/DAR 

subcommittees

• Policy/Process Training

• Audit support

• CAP for RMIC

AQP

Procurement Div

• Solicit, evaluate, & award 

contracts to support DCMA 

mission

• Acquisition Review Board

• Review approve/disapprove 

DCMA purchases of supplies & 

services

• Assist with development of PR 

& PWS

• Provide COR training & support

• DoD Clause Logic Services PM

• DoD Procurement 

Management Review

• DoD Ability One PM

• DoD GPC PM 

AQI

Performance & Systems 

Management Div

• PIEE DCMA PM 

• MOCAS JPMO Tech Lead

• P2P PM

• IO for MCC, MDO, & AQ eTools

•Performance Indicators, baseline 

targets

• Monitors Regional & CMO 

performance against OCPs

• Maintain capabilities & metrics 

reports

• DFAS Liaison

• Sys Admin for FPDS, SPS, CORT 

Tool, CPARS, FedBizOpps, SAFIRE

• MOCAS, PIEE/WAWF, SDW & 

AQ eTools support, testing, & 

development

• Support to operational 

community on AIS

• Serves as Agency 

Admin/Manager for CMT, 

eSAAR, FedCAS/CASD, DoDAAD, 

CAGE, EDI, SAM, FPDS-NG

• DCMA’s Trusted Agent & Direct 

Input PM

• Global Modifications

• Mass Transfers 

AQB

Business Operations Center

• Reutilization, sale, & disposal of 

excess Govt. property

• Evaluate adequacy of 

Contractor’s property 

management system

• Plant Clearance Group

• Proper disposal

• PCARSS

• Demilitarization

• Surplus property

• Property Group

• Monitor & evaluate contractor 

corrective actions

• Investigate Lost, Damaged, 

Stolen, or Destroyed Property

• Support ACOs on property 

matters 

AQS

Subcontract and Small Business 

Compliance Center

• Comprehensive Subcontracting 

Test Program

• Small Business Compliance 

• DoD Mentor Protégé Pilot 

Program

• Review/Approve contractor 

credit agreements & review 

reimbursable agreements

• Oversight & management of 

MPAs

• Perform Surveillance on MPs

•Contractor Purchasing System 

Review

• Evaluates supplier’s 

purchasing system 

• Provide KO BSAS

• Assess contractor’s system to 

avoid counterfeit parts

AQX

Contract Lifecycle Management 

Center

• Accomplish Admin closeout

• Make payments including Final 

Vouchers

• De-obligates excess funds

• Ensures at risk dollars and 

cancelling funds dollars impact 

on services is minimized

• Negotiates settlement of 

contract for T4Cs

• Coordinates settlement 

proposal audits w/ DCAA

• Issues final settlement 

modification

AQ

Contracts Executive Directorate

• Serves as DCMA’s PE & HCA

• Co-Chair of MOCAS JPMO

• Establishes processes & policy 

for Contract Administration 

Services (CAS) IAW FAR 1.3 & 

DFARS 201.3

• DAR Council Rep
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

26

Contracts Directorate - Mission 

Mission: Serves as the principal advisor to the Director of the Agency in the development and deployment of Agency 

Contracting policy and processes for contract administration, services, and procurement.

• Perform all activities within the 

Business Operations, Small Business, 

FIRM, Closeout and Procurement 

Centers

• Award contracts to support the 

Agency mission and maintain 

oversight of outgoing Military 

Interdepartmental Purchase Requests 

(MIPR) 

• Represents DCMA as a permanent 

member on the DAR Council and 

participates in federal acquisition 

rulemaking processes through 

membership on DAR Council 

committees

• Manage the competency and structure of 

the Agency’s contracting and property 

work force; interfaces with Office of the 

Secretary of Defense (OSD) on policies, 

procedures, and other executive decisions 

for strategic changes 

• Develop training materials and tools, in 

order to provide consistent and cost 

effective contract administration services

• Accomplish administrative closeout 

procedures in accordance with the 

Federal Acquisition Regulation and DCMA 

Instructions

• Appoint and warrant contracting officers 

• Coordinate AQ input to and participation in 

various industry association engagements, 

both at the DCMA and OSD/DPC level

• Manage the contracting interface with IT 

and others Directorates on the systems and 

programs where Contracting is a major 

stakeholder

• Establish and perform annual Procurement 

Management Reviews (PMRs) of other 

defense agencies (ODAs) on behalf of the 

Director, Defense Procurement Acquisition 

Policy

• Daily Support to CMO's on Automated 

Information Systems and Complex 

functional/technical problems

26

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A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 27

DCMA Contributes Throughout the Lifecycle

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UNCLASSIFIED

Award
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

CMO 

Contract Administration Team

Contract Administrator

Procurement Technician

Cost/Price Analyst

Quality Assurance Representative

Industrial Specialist

Engineer

Legal Council

CACO/DACO

ACO

Operational Business Support Center

Plant Clearance

Contractor Purchasing System Review

Termination

Property

Functional Information Resource 

Management Center

Functional Support

MOCAS

Trusted Agent

Contract Input

Reveal

WAWF Support

Mass Modifications

Small Business Compliance

Center

Functional Support

Subcontracting Plans Reviews

Mentor-Protégé Program

CSP Program

Contractor’s Small Business

Compliance

The Administrative Contracting Officer (ACO) is supported by a 

team of experts, using their advice and council to make 

professional judgments and decisions. 

The ACO advises and informs the PCO

PCO

Technical Operations Center

Packaging

Contract Safety

Transportation

Flight Operations

The Contract Administration Team

9

28

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A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

The Contract Administration Team 

 Effective contract administration requires knowledge and skill in procurement laws, 

regulations, procedures, price analysis, financial management, systems reviews, negotiation 

techniques, production, property administration, transportation, packaging, quality and 

product assurance, industrial security, and engineering 

 The Contract Administration Team consists of a group 

of experts, whose collective and individual advice and

counsel contribute to the accomplishment of the overall

contract administration 

– Using the advice and counsel of these experts, the ACO 

is able to make a professional judgments/decisions 

– The ACO, as the leader of the Contract Administration Team, must

make and take responsibility for final decisions 

Contract 

Administration 

Team

1

0

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29
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

Contract Team Interaction

 Making professional judgments/decisions (FAR 1.602-2)

– Technical and auditing experts provide advice and council to the ACO 

o Identify issues as soon as possible. Early involvement often results in timely resolution

o Understand the issue and the impact on contract administration

o Identify roadblocks that could delay resolution

o Inform ACO and CMO team leaders about the issue and recommend a resolution

– Using the advice and counsel of these experts, the ACO will

o Analyze the issue and recommend resolution, focusing on the facts (i.e., advisor’s report, contractor’s 

response, other data relative to the issue)

o Organize information and discuss with responsible parties to ensure full understanding

o Explore options and discuss as necessary with advisor’s or others (e.g., legal, other ACO’s, team leader, etc.)

o Understand the consequences (pros and cons) of each option

o Take prompt action and document the basis for the decision

1

2

30

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A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 31

AQ—Delivers Value!

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UNCLASSIFIED

*Please Note: Numbers above are annual unless otherwise denoted

Contractor Management

Contract Administration

Acquisition Support

Delivering value throughout 

the acquisition lifecycle.
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

Current Initiatives

32

AQ—Sample Initiatives

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UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 33

DCMA Lines of Effort (LOE)

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A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

CAS Application Integration into the Enterprise Environment (PIEE) 

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34

• Modernization targeted to improve DCMA processes AND

DOD Acquisition Insights

• Improvements deliver enhanced capability to the Services 

AND Other Defense Agencies 

Future 

Dev Shipping Instructions Requests (SIR)

Contract Property Administration System (CPAS)

Pre-Award Survey System (PASS)

MOCAS Contract Closeout

Modifications and Delivery Orders (MDO) Rel. 2.

Commercial Item Market Research

Contract Management Team (CMT)

Contract Workflow (virtual contract file, CRR, post 

award determination, business system data 

corrections, reporting capability & terminations)

Duty Free Entry (DFE)

Combined Audit Tracking and Action 

Tool (CA-TAT) 

Delivery Schedule Manager (DSM)

In Dev

Purpose Code Management/CASD

Commercial Item Determination (CID)

Property Loss

Shared Data Warehouse (SDW) SSO

Contractor Business Analysis Repository (CBAR)

Plant Clearance Automated Reutilization Screening 

System (PCARSS)

Modifications and Delivery Orders (MDO)

Released
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 35

Leveraging DCMA Data for DoD

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Improved Contract Decision making 

through shared data
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 36

UNCLASSIFIED

UNCLASSIFIED Mechanization of Contract Administration Services (MOCAS)

Problem Statement: Investment Needed to Support Architecture and Infrastructure 

Improvements (Sustainment & Modernization)

• Highly Capable System with Aging architecture

• At risk for evolving cybersecurity standards

• Frequently Labor intensive

• Highly Complex - no COTS alternative

Key Risk/Impact(s):

• System that pays ACQ Progress Payments (Services’ ERPs unable)

• System that pays Mixed Funding (Services’ ERPs unable)

Business Value: Unique DoD System Capability

• Pays and administers complex contracts for 51% of DoD procurement spend

• Integrated DOD contract administration, entitlement and disbursing system

• 281K contracts, $8T total value, FY21 128 days w/ > $1B disbursed

• 8 straight unmodified opinions for the contract pay going back to FY14

• 101 interfaces with other systems

• Cost Effective Alternative – Avoids Costs for Multiple Service Level ERPs development 

of missing Contract Administration and Complex Payment capabilities

Request for information (RFI) to 

industry closed June 17, 2022. 

RFI responses will inform FYDP costs 

for potential future issue paper 

submission.
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 37

UNCLASSIFIED

UNCLASSIFIED

DCMA Industrial Specialist Overview

Ms. Sandra Nelson
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 38

Industrial Specialist Overview

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• The Industrial Specialist (IS) will perform or support assignments to provide technical 

insight and information to a Contracting Officer.

• The IS role can further be distinguished by those recruited to serve as a Defense 

Priorities and Allocations Officer, Preaward Survey Manger, Industrial Analysis 

Manager and Industrial Labor Relations Officer.
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 39

Industrial Specialist Presence

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UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 40

Levels & Responsibilities

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Levels Responsibilities

Headquarters (HQ) Protects the agency from risk by writing, developing, and providing

guidance on policy, tools and training to comply with Federal Acquisition 

Regulation, Defense Federal Acquisition Regulation Supplement and 

other DoD Directives.

Operational Units (OU) Performs oversight of respective Contract Management Offices (CMO) to 

ensure consistent execution and act as a conduit for tactical 

interpretation of policy and guidance. Policy gaps or issues will be 

reported upward (HQ) for resolutions. 

Command Management/Contract

Management Office 

Manages the technical teams, performs Group Lead or Supervisory tasks 

and contributes to mission support. 

Functional Specialist (FS) Serves as a FS and may be in the role of an Industrial Specialist Lead or 

general Industrial Specialist.
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 41

Support to Strategic Plan

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• DCMA personnel are responsible for performance to support the lines of efforts 

outlined in the agency’s strategic plan. Industrial Specialists’ assignments contribute to 

the following efforts:

‒ Improve warfighter capabilities by influencing timely delivery of quality and affordable products

‒ Expand DoD Contract Administration to allow for flexibility and enhanced acquisition decision making

‒ Drive enhanced value and affordability through modern, adaptive and responsive cost and pricing 

capabilities
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 42

Assigned Functions

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UNCLASSIFIED

• IS functions are identified in FAR 42.302 Contract administration functions and 

DFARS 242.1104 (not intended to be all inclusive):

‒ Preaward Surveys 

‒ Industrial Capability Assessments

‒ Post Award Orientation Conference

‒ Production Surveillance Activities

‒ Review and Evaluate Proposals

‒ Performance Based Payments 

‒ Physical Progress Reviews

‒ Defense Priorities Allocations System Reviews

‒ Industrial Labor Relations

‒ Contract Closeout
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 43

IS and Contractor Interactions

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• What are some examples of IS and contractor interactions?

‒ The IS may be required to conduct surveillance visits at the contractor's facility to determine 

the status of the contract requirements.

‒ A request may be required to review and evaluate a contractor's proposal in support of 

negotiations to be accomplished by a contracting officer.

‒ A contracting officer may have initiated a request for a preaward survey.

‒ A physical progress review or performance based payment support requested from the 

contracting officer

‒ A production planning and control system review may be required

‒ It may be necessary to conduct a DPAS briefing and review implementation of criteria
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 44

Production Surveillance

UNCLASSIFIED

UNCLASSIFIED

• Production Surveillance is comprised of activities to be performed in accordance 

with documented procedures utilizing risk management principles.

• Surveillance activities ensure contractors:

‒ Have adequate manufacturing systems in place for contract execution

‒ Have established a detailed manufacturing plan for contract execution 

‒ Have adequate resources for plan execution

‒ Monitor their performance to plan, take corrective action or make adjustments as necessary
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 45

Production Surveillance Components

UNCLASSIFIED

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 46

Production Surveillance Activities

UNCLASSIFIED

UNCLASSIFIED

• Examples of Activities:

‒ Conduct on-site meetings

‒ Organizational structure and key personnel

‒ Facilities and core competencies

‒ Products and product lines

‒ Product flows and processes

‒ Manufacturing systems

‒ Performance history

‒ Strengths and weaknesses
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 47

Production Surveillance Activities

UNCLASSIFIED

UNCLASSIFIED

• Engage with the contractor

‒ Establish relationships at varying levels of the contractor’s organization

‒ Gather information from appropriate sources

‒ Get involved directly

‒ Ask questions face-to-face

‒ Be a visible and an active participant
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 48

Production Surveillance Activities

UNCLASSIFIED

UNCLASSIFIED

• Attend meetings

‒ Program Management Reviews

‒ Manufacturing Reviews

‒ Quality Reviews

‒ Preliminary and Critical Design Reviews

‒ Supplier corrective action or material review board meeting

• Meetings can provide information regarding potential risk areas warranting 

surveillance efforts
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 49

Conclusion

UNCLASSIFIED

UNCLASSIFIED

• In conclusion, the IS provides support to Contracting Officers, DCMA or external 

DoD activities, by performing assigned tasks that result in reporting, notifications or 

recommendations to provide acquisition insight. 

• The IS can also be valuable to a contractor by educating representatives on why 

performance is monitored or evaluated, interpreting contract requirements and 

obtaining support from other contract management team members, when 

necessary.
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 50

UNCLASSIFIED

UNCLASSIFIED

DCMA Quality Assurance Surveillance Overview

Mr. Christopher Ford
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

What is DCMA’s Mission?

We are the independent eyes and ears of DOD and its partners, enhancing 

warfighter lethality by ensuring timely delivery of quality products, and 

providing relevant acquisition insight supporting affordability and readiness.

What are DCMA’s Values?

INTEGRITY - Committed to the highest standards of ethical and moral behavior 

at all times. 

SERVICE - Working for the benefit of our nation and putting professional 

responsibilities before self-interests.

EXCELLENCE - Committed to exceptional performance in everything we do.

51

DCMA Mission & Values

UNCLASSIFIED

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

• DCMA QA surveillance activities are predicated by FAR/DFARS requirements an applicable clauses 

contained in the contract. The two most common QA clauses are:

- FAR 46.104 “Contract Administration Office Responsibilities”

- FAR 52.246-2 “Inspection of Supplies-Fixed-Price”

- FAR 52.246-11 “Higher-Level Contract Quality Requirement”

• DCMA supports the acquisition process by ensuring the quality of purchased 

goods and services in accordance with all QA & technical requirements 

outlined in the contract.

- Adapts to meet customer-specific requirements when requested to do so by Quality 

Assurance Letter of Instruction (QALI)

52

Introduction

UNCLASSIFIED

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

• Contracting Command needs 100 chock blocks for wheeled vehicles.

• Standard Inspection System (FAR 52.246-2)

• 2 critical characteristics found in contract/drawing:

- 45 deg angle

- 12 inches tall

• What actions will the QAS take?

53

Example

UNCLASSIFIED

UNCLASSIFIED

12

45
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

• QA surveillance closely mirrors the 

industry-recognized Plan-Do-Check-Act 

(PDCA) cycle.

• Surveillance is summarized by six steps, 

with a seventh interacting with all steps 

of the process.

1. Assess Risk

2. Plan Surveillance

3. Execute

4. Document Results

5. Identify & Address Deficiencies

6. Evaluate Surveillance Plan

• Data Collection & Analysis occurs 

throughout surveillance.

54

QA Surveillance - Overview

UNCLASSIFIED

UNCLASSIFIED

Data Collection 

and Analysis

Assess Risk

Plan 

Surveillance 

Execute

Document 

Results

Identify and 

Address 

Deficiencies

Evaluate 

Surveillance 

Plans

PLAN

CHECK DO

ACT
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

• How does DCMA define risk? Risk is a measure of 

future uncertainties, comprised of 3 parts:

1. A future root cause;

• E.g. Is it a process? Is it a characteristic? If it is a characteristic is it 

classified as critical, major, or minor?

2. a likelihood of that risk occurring;

3. and the consequence associated with that risk occurring.

• Risk impact/consequence of the item or weapon system 

failing cannot be influenced by DCMA surveillance. We 

seek to reduce the likelihood of the risk occurring 

during manufacturing.

• Risk assessment is based on objective evidence (data 

collection & analysis).

55

Assess Risk

UNCLASSIFIED

UNCLASSIFIED

Assess 

Risk
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

• QA surveillance is risk-based.

- High risk processes and characteristics will be surveilled at a 

greater frequency and intensity. AQL is an example of 

“intensity”

- Low risk will be surveilled at a lower frequency and intensity.

- High risk will be prioritized with regards to schedule.

• QA plans surveillance using 3 methods. They are:

- Deliverable Product / Service Evaluation (DPE or DSE)

• Actual inspection of the goods or services required per contract.

- Process Evaluation (PE)

• An evaluation of a process of which the output is the identified high 

risk. E.g. a machining process associated with a critical characteristic.

- Contractor Technical Assessment

• An audit of the contractor’s quality management system.

56

Plan Surveillance

UNCLASSIFIED

UNCLASSIFIED

Plan

Surveillance 
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

• QA surveillance is executed using a variety of 

techniques that define the action’s taken. Examples 

include:

- Inspect: Inspect the product or service for conformity. (Labor 

intensive, used only when absolutely necessary)

- Test: QAS conducts portions or all of a contractually-required 

test through physical operations of the product, system, sub- system, etc...

- Witness: 100% oversight of the entire event to confirm 

occurrence. (Labor intensive, not preferred)

- Verify: Determine or confirm the level of conformity through 

objective evidence such as inspection records or test results.

57

Execute

UNCLASSIFIED

UNCLASSIFIED

Execute
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

• “If it isn’t documented, then it didn’t happen.” – Unk.

• Surveillance results are documented and become an 

official record.

• Just like contractor records, they may be:

- Completed Inspection Records (Qty. inspected vs Qty. 

rejected)

- Completed Checklist (Often used for processes)

- Corrective Action Request (CAR)

58

Document Results

UNCLASSIFIED

UNCLASSIFIED

Document 

Results

If it isn’t documented, then it didn’t happen. - Unknown
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

• Deficiencies are documented on a Corrective Action 

Request. There are 4 levels of CARs that increase in severity 

by level:

- Level I

• Deficiency related to the outcome or product of a process

- Level II

• Deficiency in a contractor process such as calibration or 

configuration management

- Level III

• Multiple major deficiencies in a system affecting contractor’s 

ability to meet cost, schedule, or performance requirements.

- Level IV

• Deficiency is serious in nature that requires attention from top 

management, or a Level III CAR has been ineffective. May 

suspend product acceptance.

59

Identify and Address Deficiencies

UNCLASSIFIED

UNCLASSIFIED

Identify and 

Address 

Deficiencies
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

• QA surveillance plan is a “living document” and is 

constantly updating as risks change and evolve.

• Several trends or events can influence and adjust a 

surveillance plan:

- Customer complaints such as Product Quality Deficiency 

Reports (PQDR) or Supply Discrepancy Reports (SDR)

- Contractor’s internal audit results

- Consistent satisfactory or better contractor performance

- Contract modifications

- Customer request

60

Evaluate Surveillance Plans

UNCLASSIFIED

UNCLASSIFIED

Evaluate 

Surveillance 

Plans
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

• Data Collection & Analysis occurs throughout the 

surveillance process, and is required by DFARS 246.470-

2.

• Relies on 3 sources of data:

- Government: Data developed through contract quality 

assurance surveillance and contract administration

- Customer: Information provided by the Procuring Agency, 

Program Offices, and Users

- Contractor: Data developed by the Contractor during 

performance

• Great emphasis is placed on reliance on contractor QA 

data once validated.

61

Data Collection & Analysis

UNCLASSIFIED

UNCLASSIFIED

Data 

Collection 

and Analysis
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

• QAS will make a recommendation for a Post Award Orientation Conference 

(PAOC) as soon as possible after contract award when contract contains:

- FAR 52.209-3 First Article Approval-Contractor Testing

- FAR 52.209-4 First Article Approval-Government Testing

- DLAD 46.291 Production Lot Testing (PLT)

- DLAD 46.292 Product Verification Testing (PVT)

• If the recommendation is not taken and circumstances exist that warrant it, 

then the QAS will coordinate with other functional team members to ensure 

coverage. 

• The PCO is kept informed and up-to-date throughout these processes.

62

FAT / PVT / PLT

UNCLASSIFIED

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

• Prior to acceptance, the QAS ensures:

- Planned surveillance is complete IAW the established surveillance plan

- All contractor inspections and tests are complete

- Supplies/services meet contractual requirements and are conforming

• The contract and Cognizant Administration Office (CAO) may also authorize an 

Alternative Release Procedure, such as:

- Certificate of Conformance (CoC) (FAR 52.246-15)

• CoC is authorized in writing by the CAO.

- Alternative Release Procedures IAW DFARS 246.471

• ARP is authorized in writing by the CAO.

63

Product Acceptance and Release

UNCLASSIFIED

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

• Acceptance of supplies or services is 

done electronically through Wide 

Area Workflow (WAWF) found in the 

Procurement Integrated Enterprise 

Environment (PIEE) via a:

- WAWF Receiving Report (WAWF-RR)

- WAWF Reparables Receiving Report 

(WAWF-RRR)

• Acceptance may be accomplished 

manually through the use of the 

Form DD-250 Material Inspection and 

Receiving Report (MIRR)

64

Product Acceptance and Release

UNCLASSIFIED

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

• Contracting Command needs 100 chock blocks for wheeled vehicles.

• Standard Inspection System (FAR 52.246-2)

• 2 critical characteristics found in contract/drawing:

- 45 deg angle

- 12 inches tall

• What actions will the QAS take?

65

Example

UNCLASSIFIED

UNCLASSIFIED

12

45
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

• Option 1: The QAS may elect to wait until all 

100 items are manufactured and then inspect 

the critical characteristics.

• Option 2: The QAS may witness the contractor’s 

inspection of the characteristics.

• Option 3: The QAS may conduct a process 

evaluation on the manufacturing process that 

produce those two critical characteristics.

• Option 4: A combination of all 3...

66

Example

UNCLASSIFIED

UNCLASSIFIED

12

45
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 67

UNCLASSIFIED

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

BACK-UP

68

UNCLASSIFIED

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 69

Contract Administration Fundamentals

UNCLASSIFIED

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 70

FAR Part 2 Definition of Contracting Officer –

“a person with the authority to enter into, administer, and/or terminate contracts and make related 

determinations and findings. The term includes certain authorized representatives of the contracting officer acting within the limits of their authority as delegated by the contracting officer. “Administrative contracting officer (ACO)” 

refers to a contracting officer who is administering contracts. “Termination contracting officer (TCO)” refers to a 

contracting officer who is settling terminated contracts. A single contracting officer may be responsible for duties in 

any or all of these areas. Reference in this regulation (48 CFR Chapter 1) to administrative contracting officer or 

termination contracting officer does not –

1. Require that a duty be performed at a particular office or activity; or

2. Restrict in any way a contracting officer in the performance of any duty properly assigned.”

• Certificate of Appointment 

• Provides authority to legally bind the Government

• Issued at the Buying Activity or Agency

• Reference FAR 1.603 for contracting officer selection and appointment policy

• NOTE: Most DCMA Warrants are Unlimited (unique distinction among DoD)

Procuring Contracting Officer

•Enter into contracts

•Administer contracts

•Terminate and settle 

terminated contracts

•Make related 

determinations and findings

Administrative Contracting 

Officer

•Administer contracts

Termination Contracting 

Officer

•Settle terminated contracts

•DCMA TCO’s authorized to 

settle contracts terminated for 

convenience (PCO settles 

contracts terminated for 

default)

Contracting Officer

UNCLASSIFIED

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 71

• FAR Part 42 and DFARS Part 242 provide regulation 

regarding contract administration and delegation 

• FAR 42.202 states that contracting officers “may delegate

contract administration or specialized support services, either 

through interagency agreements or by direct request to the 

cognizant CAO listed in the Federal Directory of Contract 

Administration Services Components.”

• DFARS 242.202 states that “DoD activities shall not retain any 

contract for administration that requires performance of any 

contract administration function at or near contractor facilities, 

except contracts for .... (list (A) through (R))”

This is the basis for geographic assignment of CMO workload!

Delegation of Contract Administration

UNCLASSIFIED

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 72

• FAR 42.203 states DCMA is responsible for maintaining the 

Contract Administration Services (CAS) Directory. DCMA HQ’s 

Functional Information Resource Management (FIRM) Center 

maintains the directory at: 

(https://wawf.eb.mil/pcm/xhtml/unauth/index.xhtml) 

• Basic Contract Administration Assignment Rule – Contractor 

(CAGE/FSCM) can only be administered by one CMO – One 

Face to Industry! 

• Most Assignments are based on geographic location of the 

contractor

– EXCEPTIONS FOR COMMODITY BASED ASSIGNMENTS AND PLANT 

RESIDENT OFFICES

• Changes in CMO Cognizance – Changes are executed by DCMA 

General Orders (signed by the Director of DCMA)

• CAS Directory assists the contracting officer in selecting the 

appropriate DCMA CMO and Payment Office

Contract Administration & Payment Office

UNCLASSIFIED

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 73

• FAR 42.3 and DFARS 242.3 provide regulation regarding Contract 

Administration Office (CAO) functions.

– FAR 42.302(a) states “The contracting officer normally delegates the 

following contract administration functions to a CAO. The contracting

officer may retain any of these functions, except those in

paragraphs (a)(5), (a)(9), (a)(11) and (a)(12) of this section, unless the

cognizant Federal agency (see 2.101 definitions) has designated the 

contracting officer to perform these functions.

– The FAR lists 71 CAO functions and the DFARS lists 5 additional functions 

(S70 – SPI, S71 – EVMS, S72 – SPOT, S73 – Combating Trafficking in 

Persons, S74 – Approve/Disapprove Contractor Business Systems) that 

are normally delegated to the CAO.

Delegation of Contract Administration Functions

UNCLASSIFIED

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 74

• Full Delegation: When the contracting officer does not retain any

function, the contract is “fully delegated” to the CAO for

administration. Full delegation contracts require multiple functional

specialists to administer the contract.

• Partial Delegation: When the contracting officer decides to

delegate a specific function to the CAO (e.g., property only,

payment only, quality assurance only, etc.), the contract is

considered to be “partially delegated” for administration.

• Reimbursable Delegation: When DCMA is requested to support

customers that are normally exceptions (ref DFARS 242.202(a)(i)(A)

through (R)) or for non-DoD organizations, a formal workload

acceptance agreement must be created.

– CMO’s notify the Division when such requests are received

– DCMA is usually reimbursed for such delegations

Delegation of Contract Administration Functions

UNCLASSIFIED

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 75

• Contract Administration Functions:

– Certain functions are performed at

the “Contractor” level and others at

the “contract” level

– Many of the “Contractor” level

functions impact whether or not a

contractor will receive an award (e.g.

business systems that are not

compliant with FAR/DFARS and CAS

may prevent the award of a contract)

(5) Negotiate forward

pricing rate agreements*

Example of 

“Contractor” 

Level 

Function

(9) Establish final indirect

cost rates and billing rates*

(11) Cost Accounting

Standards*

Business System Reviews:

(1) Compensation structure

(2) Insurance plan

(50) Purchasing system

(4)(A) Estimating system

(4)(B) material management

and accounting system

(S-71) EVMS

(3) Conduct post-award

orientation conference

Example of 

“Contract” 

Level 

Function

(4) Review and evaluate

contractors’ proposals

(13) Make payments

(26) Perform property

administration

(31) Perform production

support, surveillance,

and status reporting

*PCO may not retain these CAO functions

Delegation of Contract Administration Functions

UNCLASSIFIED

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 76

Overview of basic FAR/DFARS responsibilities for each contract 

administration team member

• ACO:

– Responsible for ensuring that the functions listed in FAR 42.302 and

DFARS 242.302 to the extent that they apply to the contract or

contractor, except for the functions specifically withheld, are

performed.

– Keep the PCO advised of required contract status and major problem

areas

– Make contractual determinations and decisions that legally bind the

Government

– Oversee work of contract administrators

• Contract Administrator

– Support the ACO in the management of assigned contracts

– Perform FAR 42.302 and DFARS 242.302 functions, up to the point of

ACO signature

The Contract Administration Team

UNCLASSIFIED

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 77

• Industrial Specialist:

• Perform production support, surveillance, and status reporting, including timely

reporting of potential and actual slippages in contract delivery schedules

• Perform pre-award surveys

• Advise and assist contractors regarding their priorities and allocations responsibilities

and assist contracting offices in processing requests for special assistance and for

priority ratings for privately owned capital equipment

• Quality Assurance Representative

• Ensure contractor compliance with contractual quality assurance requirements

• Review quality assurance plans

• Perform inspection and acceptance

• Engineer

• Perform engineering surveillance to assess compliance with contractual terms for

schedule, cost, and technical performance in the areas of design, development, and

production

• Review and evaluate for technical adequacy the contractor’s logistics support,

maintenance, and modification programs

• Perform engineering analyses of contractor proposals

• Assist in evaluating and make recommendations for acceptance or rejection of waivers

and deviations

The Contract Administration Team

UNCLASSIFIED

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 78

Contract Award and 

Delegation of Contract 

Administration

Acquisition Plan

Describe Agency Need

Review Qualified 

Contractor

Solicitation

Award Contract

Distribute Contract

Delegation of Contract 

Administration

Active Phase (Section 1 

of MOCAS)

•Contract Receipt and

Review

•Issue Necessary CDR

•Post Award Orientation

•Delegation of Support

Contract Administration

•Contractor

Performance

•Delivery

•Invoicing

•Payment

•Evidence of Final

Delivery

Physically Complete Phase 

(Section 2 of MOCAS)

•Contract Performance

Complete

•Disposition of Property

•Disposition of Classified

Material

•Deobligation of Excess

Funds

•For Cost Type

Contracts:

•Settlement of Indirect

Cost Rates

•Submission of Final

Invoice and Closeout

Documentation

•Final Payment

•Close Contract in

MOCAS and EDW

Closed Phase 

(Sections 5/8/9 of 

MOCAS)

•Contract Retention

Period

•Contract Closed

Database

The following actions may take place at any time during the life of the contract:

•Legal Issues, e.g. bankruptcy, contract litigation, etc. (Section 3 of MOCAS)

•Reconciliation of Contract Payment (Section 4 of MOCAS)

Contract Lifecycle (w/ MOCAS Sections)

UNCLASSIFIED

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 79

Contract Administration Processes

UNCLASSIFIED

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 80

Contract Receipt and Review

• Review incoming contracts for accuracy and correct assignment

• Issue contract deficiency reports (CDR) to notify buying activity of errors, conflict in terms, or omissions

in the contract that may cause delay in delivery or payment issues

─ Volume of CDRs is approximately 3% of DLA contracts issued

─ Primary reasons for CDRs: 

 Administration Office cited is incorrect for CAGE/Awardee location

 Inspection Acceptance site is wrong, ambiguous, or missing

 Clauses are missing

─ Issue corrective administrative modification when coordinated with the PCO

• Delegated to DCMA under FAR 42.302(a)(43), (57), (59) and DFARS PGI 204.270-2

• Work spread across all DCMA sites (in-plant and geographic CMOs)

More information available at: https://www.dcma.mil/Policy/

DCMA Manual available at: https://www.dcma.mil/Portals/31/Documents/

Policy/MAN_2501-01r_(C1)_(20220201)_V508C_03012023.pdf

UNCLASSIFIED

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 81

Contract Modifications

• Prepare, execute, and distribute unilateral or bilateral modifications as assigned, within the scope

of the requirements, administrative delegations, and warrant authority IAW FAR 42.302

─ Examples of Modifications Include:

 Administrative changes

 Transportation

 Delivery

 Property

 Excess funds

 Spare parts and provisions

 Terminations

 Change orders

 Definitizations

 Over and above actions `

• Serve as responsible Administrative Contracting Officer IAW with FAR 42.12 for Novations or

Change-of-Name Agreements for a contractor

─ Evaluate the proposal of sale or Change-of-Name 

─ Determine whether it is in the best interest of the Government to recognize a successor in interest to the Government 

contract in accordance with FAR 42.1204(a), (c), (d), and (h) 

─ Prepare, execute, and distribute Novation or Change-of-Name Agreements and mass modifications

0

500

1000

1500

2000

2500

2018 2019 2020 YTD

ADMIN MODS EXECUTED BY DCMA FOR DLA*

DCMA Manual available at: https://www.dcma.mil/Portals/31/Documents/Policy/MAN_2501-02r_REWRITE_(20211220).pdf

*EDA Data (Admin By = a current DCMA DoDAAC, Contract Number or Delivery Order Number starts with 'SP' (denoting DLA), Contract Mod starts with 'A' (denoting ACO mod), Sorted by Year)

UNCLASSIFIED

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 82

Contract Payments

DCMA Manual available at: https://www.dcma.mil/Portals/31/Documents/Policy/MAN_2101-02_C1_20211220.pdf

• Administrative Contracting Officer/Contract Administrator (ACO/CA) determines if appropriate clause is

included in contract

─ FAR 52.232-32, Performance Based Payments

─ FAR 52.232-16, Progress Payments

─ FAR 52.212-4, Contract Terms and Conditions—Commercial Items

• ACO/CA evaluates contractor’s capability to perform and performs risk assessment

– Contractor’s experience, performance record, reliability, financial strength, business systems, adequacy of controls established by the contractor

• ACO/CA reviews payment request to verify amounts claimed by contractor are commensurate with the

contract’s terms and conditions

– Performance Based Payment event completion verification

– Progress payment validation of costs incurred and

estimates to completion

• ACO/CA verifies funding is available for payment

• ACO approves/disapproves payment request

• DFAS processes/disburses payment

• ACO/CA verifies disbursement data (as required)

─ FAR 52.216-7, Allowable Cost and Payment (Public Vouchers)

─ FAR 52.232-7, Payments under Time & Material/Labor Hour Contracts

─ FAR 52.232-25, Prompt Payment

– Commercial advance payment, interim payments, delivery payments

– Final voucher review of cost vouchers

UNCLASSIFIED

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

DCMA Manual available at: https://www.dcma.mil/Portals/31/Documents/Policy/DCMA-MAN_2501-12_C1_(04-22-2020).pdf & https://www.dcma.mil/Portals/31/Documents/Policy/MAN_2501-04r_C2_(20220103).pdf

83

Government Property Management

• DCMA’s Property Administrators (PA) ensure contractor’s property management systems control,

use, preserve, protect, repair and maintain the Government property in their possession

• PAs perform Property Management System Analysis (PMSA) to ensure compliance with terms and

conditions of the contract

• PAs investigate losses and damage to Government property and determine liability

• DCMA’s Plant Clearance Officers (PLCO) provide disposition instructions for excess Government

property in the possession of contractors

• PLCOs also conduct allocability reviews of Termination Inventory, as required by FAR 49.105. This is

a critical aspect of validating contractor settlement proposals

• Plant Clearance

─ Complies with FAR 45.6 Reporting, Reutilization, and Disposal for the reutilization, including transfer and donation, of 

Government property no longer required for continued performance of the contract

─ Maintains the Plant Clearance Automated Reutilization Screening System (PCARSS) to facilitate screening and disposition of 

excess contractor inventory, equipment, special tooling, etc...

─ Key contributor for development of disposition capability within the PIEE GFP Module, scheduled for deployment in 2021

UNCLASSIFIED

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle 84

Funds Lifecycle Management 

• Return excess funds to DoD buying activities throughout the funds lifecycle and prevent funds from

canceling

─ Review contract funds status and notify the contracting office of any excess funds the ACO might deobligate

─ Deobligate funds when authorized by the PCO

─ Validate commitments, obligations & disbursements against data system records

• May be delegated to DCMA under FAR 4.804-5(a); FAR 42.302(a)(70); FAR 42.302(b)(4)

• Work spread across all DCMA CMO sites (in-plant and geographic CMOs)

More information available at: https://www.dcma.mil/Policy/

DCMA Manual available at: https://www.dcma.mil/Portals/31/Documents/Policy/DCMA-MAN-2501-03.pdf

UNCLASSIFIED

UNCLASSIFIED
A team of trusted professionals delivering value to our Warfighters throughout the acquisition lifecycle

Contract Terminations 

• DCMA’s Terminations Contracting Officer (TCO) and Terminations team provides full and

comprehensive support:

─ Active engagement upon DLA request for support

─ Coordinates initial conference and meetings for information gathering

─ Evaluates termination factors and establishes a path forward

─ Determines if a no cost modification will be established, or moves forward with preparing a negotiation 

position for settlement

─ Collaborates with functional specialists; i.e. DCAA for audit assistance, if needed, DCMA Plant Clearance 

for proper disposition terms and conditions

─ Negotiates entire termination settlement and makes a determination based on outcome of negotiation

─ Prepares final settlement modification and all memoranda to document termination actions

─ Ensures records management per policy guidelines

─ Upon termination settlement, arranges and confirms proper transfer of record to the Administrative 

Contracting Officer (ACO) for final closeout actions

─ Performs and participates in internal control evaluation of processes; creates and updates policy and 

guidance based on evaluation outcomes

More information available at: https://www.dcma.mil/Policy/

DCMA Manual available at: https://www.dcma.mil/Portals/31/Documents/Policy/

MAN_2501-06_C1_V508C_06212023.pdf

85

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WARFIGHTER ALWAYS WARFIGHTER ALWAYS 86