Defense Regulations

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Defense Regulations

• Richard Vinton
• Raytheon Company

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Defense Regulations

• What are we going to cover?
• US DoD Regulations
• Federal Acquisition Regulations (FARs)
• Defense Federal Acquisition Regulations
  Supplement (DFARS)
• GIDEP
• Other Industry Issues

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FARs

• 1.101 Purpose.
• The Federal Acquisition Regulations System is
  established
• for the codification and publication of uniform
  policies and
• procedures for acquisition by all executive
  agencies. The Federal
• Acquisition Regulations System consists of the
  Federal
• Acquisition Regulation (FAR), which is the
  primary document,
• and agency acquisition regulations that implement
  or
• supplement the FAR. The FAR System does not
  include internal
• agency guidance ..

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FARs

• 1.103 Authority.
• (a) The development of the FAR System is in
  accordance
• with the requirements of the Office of Federal
  Procurement
• Policy Act of 1974 (Pub. L. 93-400), as amended
  by
• Pub. L. 96-83.
• (b) The FAR is prepared, issued, and maintained,
  and the
• FAR System is prescribed jointly by the Secretary
  of Defense,
• the Administrator of General Services, and the
  Administrator,
• National Aeronautics and Space Administration,
  under their
• several statutory authorities.

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FARs

• 1.104 Applicability.
• The FAR applies to all acquisitions as defined in
  Part 2 of
• the FAR, except where expressly excluded.
• Basically used for all US Government procurements
• URL (http//www.arnet.gov/far/)
• Volume I contains Parts 1-51 (1130 pages)
• General Structure Subparts
• Volume II Contains Parts 52, 53 index (773
  pages)
• Solicitation Provisions

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FAR vs AS9100

• FAR
• 4.7 Contractors Records Retention
• Part 9 Contractor Qualifications
• 9.405-2 Restrictions on subcontracting.
• Part 42 Contract Admin Audit Services
• Part 45 Government Property
• 46.2-3 Contract Quality Requirements/Clauses
• 46.5-6 Acceptance
• Part 52 Solicitation Provisions and Contract
  Clauses

• AS9100
• 4.2.4 Control of Records
• 7.4 Purchasing
• 7.4.1 Purchasing Process
• 7.4.2 Purchasing Information
• 7.5.4 Customer Property
• 7.2 Customer Related Processes
• 8.2 Monitoring and Measuring
• 7.4 Purchasing

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FAR vs AS9100 and Expectations

• AS9100
• 4.2.4 Control of Records
• A documented procedure shall be established
• to define the controls needed for the
• identification, storage, protection, retrieval,
• retention time and disposition of records
• Records shall be available for review by
• customers and regulatory authorities in
• accordance with contract or regulatory
• requirements.

• FAR
• 4.7 Contractors Records Retention
• This subpart provides policies and procedures
• for retention of records by contractors to meet
• the records review requirements of the
• Government.. contractors shall make
• available records, which includes books,
  documents, .
• (1) 3 years after final payment or, for certain
  records
• (2) The period specified in 4.705 through
  4.705-3, whichever of these periods expires first.

When auditing records, verify the clients
knowledge of FAR requirements for access
retention of records
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FAR vs AS9100 and Expectations

• FAR
• Part 9 Contractor Qualifications
• This subpart prescribes policies, standards, and
• procedures or determining whether
• prospective contractors and subcontractors
• are responsible. (see 9.104 for criteria)

• AS9100
• 7.4 Purchasing
• The organization shall evaluate and select
• suppliers based on their ability to supply
• product in accordance with the organizations
• requirements. Criteria for selection,
• evaluation and re-evaluation shall be
• established.

Viable criteria is established to validate a
suppliers capability/probability to fulfill
contractual requirements
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FAR vs AS9100 and Expectations

• AS9100
• 7.4.1 Purchasing Process
• The organization shall evaluate and select
• suppliers based on their ability to supply
• product in accordance with the organizations
• requirements. Criteria for selection, evaluation
• and re-evaluation shall be established

• FAR
• 9.405-2 Restrictions on subcontracting
• ..Protecting the Governments Interests
• When Subcontracting with Contractors
• Debarred, Suspended or Proposed
• for Debarment, contractors shall not enter
• into any subcontract in excess of 25,000
• with a contractor that has been debarred,
• suspended, or proposed for debarment
• unless there is a compelling reason to do
• so. If a contractor intends..

Ensure that the source selection process includes
review of the Excluded Parties List
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FAR vs AS9100 and Expectations

• FAR
• Part 42 Contract Admin Audit Services
• This part prescribes policies and procedures
• for assigning and performing contract
• administration and contract audit services.
• (including surveillance activities)

• AS9100
• 7.4.2 Purchasing Information
• i) right of access by the organization, their
• customer, and regulatory authorities
• to all facilities involved in the order and to
• all applicable records,

Procedures allow right of access, review any
audit surveillance reports, discuss activities
with resident customer reps.
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FAR vs AS9100 and Expectations

• AS9100
• 7.5.4 Customer Property
• The organization shall exercise care with
• customer property while it is under the
• organizations control or being used by the
• organization. The organization shall identify,
• verify, protect and safeguard customer
• property provided for use or incorporation into
• the product. If any customer property is lost,
• damaged or otherwise found to be unsuitable
• for use, this shall be reported to the customer

• FAR
• Part 45 Government Property
• This part prescribes policies and
• procedures for providing Government
• property to contractors, contractors use
• And management of Government
• property, and reporting, redistributing,
• and disposing of contractor inventory.

When Government Property is involved there
additional FAR/DFAR requirements beyond those
cited in AS9100, the Government conducts periodic
surveys of the contractors property system,
check for current reports and/or issues raised.
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FAR vs AS9100 and Expectations

• FAR
• 46.2-3 Contract Quality Requirements/Clauses
• This part prescribes policies and procedures to
• ensure that supplies and services acquired
• under Government contract conform to the
• contracts quality and quantity requirements.
• Included are inspection, acceptance, warranty,
• and other measures associated with quality \
• requirements.

• AS9100
• 7.2 Customer Related Processes
• Determination of Requirements Related to the
• Product The organization shall determine
• a) requirements specified by the customer,
• including the requirements for delivery and
• post-delivery activities,
• b) requirements not stated by the customer but
• necessary for specified or intended use, where
• known,
• c) statutory and regulatory requirements
• related to the product, and
• d) any additional requirements determined by
• the organization.

In addition to verify procedures exist, pull
actual requirements from a contract and validate
compliance
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FAR vs AS9100 and Expectations

• FAR
• 46.5-6 Acceptance
• Acceptance constitutes acknowledgment
• that the supplies or services conform
• With applicable contract quality and
• quantity requirements, except as provided
• in this subpart and subject to other terms
• and conditions of the contract.

• AS9100
• 8.2 Monitoring and Measuring
• Product release and service delivery shall not
• proceed until all the planned arrangements (see
• 7.1) have been satisfactorily completed,
• unless otherwise approved by a relevant
• authority and, where applicable, by the
• customer.

Verify acceptance criteria satisfies contractual
requirements, if not, differences are covered by
waiver/contract mod
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FAR vs AS9100 and Expectations

• FAR
• Part 52 Solicitation Provisions and Contract
  Clauses
• Gives instructions for using Part 52, including
• the explanation and use of provision and
• clause numbers, prescriptions, prefaces, and
• the matrix (b) Prescribes procedures for
• incorporating, identifying, and modifying
• provisions and clauses in solicitations and
• contracts, and for using alternates and
• (c) Describes the derivation of FAR provisions
• and clauses

• AS9100
• 7.4.2 Purchasing Information
• Purchasing information shall describe the
• product to be purchased, including where
• Appropriate (sub paragraphs a-j)
• The organization shall ensure the adequacy of
• specified purchase requirements prior to
• their communication to the supplier.

FAR part 52 is typically contained within a
contractors Terms Conditions TCs should be
reviewed periodically to ensure theyre current,
also query the organization as to why they flow
them to their supply base
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DFARS

• DoD implementation and supplementation of the FAR
  is
• issued in the Defense Federal Acquisition
  Regulation
• Supplement (DFARS) under authorization and
  subject to the
• authority, direction, and control of the
  Secretary of Defense.
• The DFARS contains
• (i) Requirements of law
• (ii) DoD-wide policies
• (iii) Delegations of FAR authorities
• (iv) Deviations from FAR requirements and
• (v) Policies/procedures that have a significant
  effect beyond
• the internal operating procedures of DoD or a
  significant cost
• or administrative impact on contractors or
  offerors.
• http//www.acq.osd.mil/dpap/dars/dfars/

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DFARS - Supplements to FAR

• 11.204 Solicitation provisions and contract
  clauses.
• ( (c) The contracting officer shall insert a
  provision
• Substantially the same as the provision at
  52.211-3,
• Availability of Specifications Not Listed in the
  GSA
• Index of Federal Specifications, Standards and
• Commercial Item Descriptions, in solicitations
  that
• cite specifications that are not listed in the
  Index and
• are not furnished with the solicitation, but may
  be
• obtained from a designated source.

• 211.204 Solicitation provisions and contract
  clauses.
• (c) When contract performance requires use of
• specifications, standards, and data item
  descriptions
• that are not listed in the Acquisition
  Streamlining and
• Standardization Information System database, use
• provisions, as appropriate, substantially the
  same as
• those at
• (i) 252.211-7001, Availability of Specifications,
  
• Standards, and Data Item Descriptions Not Listed
  in
• the Acquisition Streamlining and Standardization
• Information System (ASSIST), and Plans, Drawings,
  
• and Other Pertinent Documents and
• (ii) 252.211-7002, Availability for Examination
  of
• Specifications, Standards, Plans, Drawings, Data
  Item
• Descriptions, and Other Pertinent Documents.

May affect activities associated with 7.2, 7.3,
7.4, 7.5 can take into account
commercial/contractor documents
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DFARS - Supplements to FAR

• 11.204 Solicitation provisions and contract
  clauses.
• ( (c) The contracting officer shall insert a
  provision
• Substantially the same as the provision at
  52.211-3,
• Availability of Specifications Not Listed in the
  GSA
• Index of Federal Specifications, Standards and
• Commercial Item Descriptions, in solicitations
  that
• cite specifications that are not listed in the
  Index and
• are not furnished with the solicitation, but may
  be
• obtained from a designated source.

• 211.273 Substitutions for military or Federal
• specifications and standards.
• 211.273-1 Definition.
• SPI process, as used in this section, is
  defined in
• the clause at 252.211-7005, Substitutions for
  Military
• or Federal Specifications and Standards.
• 211.273-2 Policy.
• (a) Under the Single Process Initiative (SPI),
  DoD
• accepts SPI processes in lieu of specific
  military or
• Federal specifications or standards that specify
  a
• management or manufacturing process.
• (b) DoD acceptance of an SPI process follows the
• decision of a Management Council, which includes
• representatives of the contractor, the Defense
• Contract Management Agency, the Defense Contract
• Audit Agency, and the military departments.

May affect activities associated with 7.2, 7.3,
7.4, 7.5 SPIs are typically used as contract
mods
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UID (7.5.3)

• DFAR 211.274-2 Policy for unique item
  identification.
• (a) It is DoD policy that DoD unique item
  identification, or a DoD recognized unique
• identification equivalent, is required for
• (1) All delivered items for which the
  Governments unit acquisition cost is 5,000 or
  more
• (2) Items for which the Governments unit
  acquisition cost is less than 5,000,
• when identified by the requiring activity as
  serially managed, mission essential, or
  controlled inventory
• (3) Items for which the Governments unit
  acquisition cost is less than 5,000, when the
  requiring activity determines that permanent
  identification is required and
• (4) Regardless of value
• (i) Any DoD serially managed subassembly,
  component, or part embedded within a delivered
  item and
• (ii) The parent item (as defined in
  252.211-7003(a)) that contains the embedded
  subassembly, component, or part.
• (b) Exceptions. The Contractor will not be
  required to provide DoD unique item
• identification if
• (1) The items, as determined by the head of the
  agency, are to be used to support a contingency
  operation or to
• facilitate defense against or recovery from
  nuclear, biological, chemical, or radiological
  attack or
• (2) A determination and findings has been
  executed concluding that it is more cost
  effective for the Government
• requiring activity to assign, mark, and register
  the unique item identification after delivery of
  an item acquired
• from a small business concern or a commercial
  item acquired under FAR Part 12 or Part 8.
• (i) The determination and findings shall be
  executed by
• (A) The Component Acquisition Executive for an
  acquisition category (ACAT) I program or

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GIDEP (7.3, 7.4, 8.)

• What is GIDEP?
• GIDEP (Government-Industry Data Exchange Program)
  is a cooperative activity
• between government and industry participants
  seeking to reduce or eliminate
• expenditures of resources by sharing technical
  information essential during
• research, design, development, production and
  operational phases of the life
• cycle of systems, facilities and equipment.
• What does GIDEP have to offer?
• Since GIDEP's inception, participants have
  reported over 1 BILLION in
• prevention of unplanned expenditures. That means
  without GIDEP, participants
• could have potentially realized additional
  expenses of over 1 billion. Proper
• utilization of GIDEP data can materially improve
  the total quality and reliability
• of systems and components during the acquisition
  and logistics phases of the life
• cycle and reduce costs in the development and
  manufacture of complex systems
• and equipment.

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Berry Ammendment (7.4)

• DFAR 225.7000 Scope of subpart.
• (a) This subpart contains restrictions on the
  acquisition of foreign products and services,
  imposed by DoD
• appropriations and authorization acts and other
  statutes. Refer to the acts to verify current
  applicability of the
• restrictions.
• (b) Nothing in this subpart affects the
  applicability of the Buy American Act or the
  Balance of Payments
• Program.
• 225.7002-1 Restrictions.
• The following restrictions implement 10 U.S.C.
  2533a (the Berry Amendment). Except as provided
  in
• subsection 225.7002-2, do not acquire
• (b) Specialty metals, including stainless steel
  flatware, unless the metals were melted in steel
  manufacturing
• facilities located within the United States. (For
  guidance on dealing with noncompliance with this
  requirement,
• see PGI 225.7002-1(b).)
• See DoD Class Deviation 2006-O0004, Restriction
  on Procurement of Specialty Metals, issued on
  December
• 6, 2006. This deviation is effective until
  incorporated into the DFARS or rescinded.

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RoHS (7.3)

• The RoHS Directive stands for "the restriction of
  the use of certain hazardous substances in
• electrical and electronic equipment".  This
  Directive bans the placing on the EU market of
• new electrical and electronic equipment
  containing more than agreed levels of lead,
• cadmium, mercury, hexavalent chromium,
  polybrominated biphenyl (PBB) and
• polybrominated diphenyl ether (PBDE) flame
  retardants.
• Manufacturers need to understand the requirements
  of the RoHS Directive to ensure
• that their products, and their components,
  comply.
• Studies of the effect of lead free in
  Aerospace has been and is
• still ongoing!

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CSI (7.3, 7.4, 7.5)
AIA is currently working with Mr. Allen on
revising the CSI Handbook
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Referenced Web Sites

• Federal Acquisition Regulations (FAR)
• http//www.arnet.gov/far/
• Defense FAR Supplememnt (DFAR)
• http//www.acq.osd.mil/dpap/dars/dfars/
• Excluded Parties List (Debarred)
• http//www.epls.gov/
• ASSIST Data Base
• http//assist.daps.dla.mil/online/start/
• GIDEP
• http//www.gidep.org/