Defense Contract Management Agency

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Defense Contract Management Agency
Agency Realignment

• Executive Director,
• Space and Missile Systems Division
• Executive Director,
• Naval Sea Systems Division
• Executive Director,
• Ground Systems and Munitions Division
• 5 June 2007

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Agenda

• Purpose
• Implementing Directive
• Implementation Guidance
• Product Division Concept of Operations
• Contract Management Office (CMO)
  Concept of Operations
• Overview of Product Divisions
• Space Missile Systems
• Naval Sea Systems
• Aeronautical Systems
• Ground Systems Munitions

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How it all Started

• Looking for ways to improve support to our
  customers
• Driving a performance based culture across the
  Agency
• Moving from thinking about workload processing
  geographically to thinking about customer
  outcomes enterprise-wide
• Establishing an organization and command and
  control structure that enhances our effectiveness

This is not about reorganization its about
realigning to improve our enterprise-wide support
to our customers
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Previous CONUS Alignment Strategy
Time To Change!!

• 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 with redundant
  functions/specialties

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Pre-Realignment Organization
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DCMA Product Aligned Agency
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Concept Of Operations

• Adhere to a Product Division Command and Control
  Model which contains (primarily) three types
  of 06/GS-15 commands
• Product pure (Resident based Plant CMOs)
• Product aligned (Non Resident based Geographic
  CMOs)
• Product preponderance (Team based Product
  workload)
• Align Non Resident CMOs with Product Divisions
  to facilitate the enterprise approach to
  customer service
• Define Organizational Concepts (Wiring Diagram
  for each Product Division)
• Define Command and Control (C2) relationship
  between CMOs within and between Product Divisions

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Nonresident CMO Alignment
AERO
GSM
NSSO
SMS
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Space and Missile Systems Division
Executive Director
Space and Missile Systems Division
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Division Identity
Launch Vehicle
Space Satellite
Missile Ops
Space Sensors Comm
NASA Products
DCMA Northern California
DCMA Denver
DCMA Huntsville
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Space Missiles Systems Division

• Space Missile Systems Division Consists of 5
  Product Operations and 3 Nonresident CMOs
• Five Primary Areas of Customer Emphasis
• NASA Products
• Launch Vehicles
• Space Satellites
• Space Sensors and Communications
• Missiles
• Overarching Concept of Operations
• Each CMO will increase technical and business
  expertise in Customer Area of Emphasis over time
  (e.g., Program Readiness Integrator, Habitual
  Relationships with Customer Liaison
  Representatives)

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Space and Missile Systems Division
Customer Themes

• Mission Assurance and Readiness Number 1
  Priority
• Provide Independent Assessments
• Strengthen Program Support Teams (PST)
  Integrate with entire program team
• Contractor Process Compliance
• Earned Value Management
• Supply Chain Support
• Recognized Workload Increases
• Consistent High Level of DCMA Support
• Increase Quality Assurance Rigor
• Workforce Stability
• Lean Six Sigma
• Increased Quality Assurance and Property Support

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Space and Missile Systems Division
Customer Themes

• Voice of Customer Themes
• Concern Over Supplier Performance
• Mission and Quality Assurance

• Strategies
• DCMA revitalized EVM executive agent role
• Resourcing DCMA PST to increase program
  performance insight
• Technical cost estimating reviews, pricing
  reinvigoration
• Management council reinvoration
• Letter of concern and improvement Plan
• Participation in Space Industrial and Quality
  Improvement Councils
• MDA Quality Assurance delegation and mission
  critical items supply chain mapping
• Mapped NASA-space shuttle main engine and
  external tank critical items
• MDA Software QALI implementation

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Naval Sea Systems Division
Executive Director
Naval Sea Systems Division
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Division Identity
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Naval Sea Systems Division Highlights

• Naval Sea Systems Division Consists of 1 Product
  Focused and 5 Nonresident Contract Management
  Offices (CMOs)
• Three Primary Areas of Customer Emphasis
• Navy Special Emphasis
• Shipboard Systems Integration
• Naval Supply Support
• Overarching Concept of Operations
• Each CMO will increase technical and business
  expertise in Customer Area of Emphasis over
  time

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Naval Sea Systems Division
Naval Sea Systems Division
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Naval Sea Systems Division
Customer Themes

• Product Quality Concerns
• DCMA Technical Competency
• Technical Authority Pyramid
• Cost, Schedule, Performance Transparency
• Systems Integration
• Engineering Module Development
• Level I/SubSafe (Product Quality/Material
  Traceability)
• Ship CSIs
• Spare Parts Pricing
• Performance Based Logistics
• Industrial Base Intel

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Aeronautical Systems Division
Executive Director
Aeronautical Systems Division
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Divisional Identity
Raptor D-2

• Unmanned Aerial Systems
• Rotary Wing
• Fixed Wing
• Propulsion
• Programmed Depot
• Maintenance

Blackhawk
Prowler
T700
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Aeronautical Systems Division Highlights

• Aeronautical Systems Division consists of 4
  Operations, 7 Resident, and 7 Nonresident CMOs
• Seven Primary Areas of Customer Emphasis
• Global Strike
• Mobility
• UAV
• Rotary
• Special Use
• Overhaul, Maintenance, and Manufacturing Repair
  (OMMR)
• Aircraft Propulsion
• Overarching Concept of Operations
• Each CMO will increase technical and business
  expertise in Customer Area of Emphasis over time
  (e.g., Program Readiness Integrator, Habitual
  Relationships with Customer Liaison
  Representatives)

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Aeronautical Customer Themes

• Cost - Schedule - Performance - Transparency
• Nunn McCurdy Impact
• Life Cycle Support
• Cost Containment
• GWOT Effects
• OpTempo
• Reset / Preset
• Berry Amendment / Specialty Metals
• Supplier Management

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Ground Systems and Munitions Division
Executive Director
Ground Systems and Munitions Division
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Division Identity
Future Combat Systems
Surface Communications Support Systems
Combat Vehicles
Soldier Support Logistics Civil Augmentation
Program (LOGCAP)
Munitions Support Systems
Tactical Wheeled Vehicles
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GSM Product Division Highlights

• Ground Systems Munitions (GSM) Product Line
  Division Consists of 5 Contract Management
  Offices (CMOs), the Future Combat Systems Program
  Integration Office (FCS PIO) and Severable Teams
• Six Primary Areas of Customer Emphasis
• Combat (Armored) Vehicles
• Tactical Wheeled Vehicles
• Soldier Support LOGCAP
• Ground Communications Support Systems
• Munitions and Support Systems
• Future Combat Systems
• Overarching Concept of Operations
• Each CMO will increase technical and business
  expertise in Customer Area of Emphasis over time
  (e.g., Program Readiness Integrator, Habitual
  Relationships with Customer Liaison
  Representatives)

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GSM Customer Themes

• RESET (High Priority)
• Safe AMMO that performs to specification
• Future Combat Systems EVMS (Earned Value
  Management System) and other adequate systems
• Early notification of potential problems
• Concern about DCMA Realignment
  Cross-Divisional Communication
• Anti-IED Devices/Vehicles
• Sustainment

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PERFORMANCE BASED MANAGEMENT- We Focus on Whats
Important -
Summary

• Increasing missions
• Increasing workload
• Decreasing resources
• We make a difference with less than half the
  people we used to have!

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Questions
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Back Up Slides
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CMO Support Organization
Technical Product Performance Group

• Product Readiness Integrators
• Number, location, and positional responsibility
  varies depending on size of supported community
• Sharing of Product specific knowledge and
  information
• Product performance analysis and improvement
• Customer coordinator for outcomes
• Customer single entry point for readiness

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Product Readiness Sustainment Concept of
Operations

• Nonresident CMOs deal primarily with readiness
  sustainment
• Nonresident CMO alignment with product Divisions
  as follows
• AERO BOS, LI, TWC, DAY, DAL, SEA, STA LA
• NSS HFD, VA, ATL, SAN, MD,
• GSM PHL, DET, PHX, SPR, CHI
• SMS HVL, DEN, NCA
• Nonresident CMO boundaries adjusted as follows
• Orlando (minus) combined with Atlanta
• Seattle (minus) combined with Twin Cities
• Use of Product Readiness Integrators (PRIs)

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Division Overview
Ten (10) PEO Portfolios NASA ACAT I 56, ACAT
II 17, ACAT III 8, NASA 4 Total - 85
Programs
Division M-OC M-CS-Sp Staff Centers CR-K FB-AC
HRA
Division Director/Deputy
SSO
LVO
MO
SSC
NPO
Product CMOs - 5
No California
Huntsville
Denver
Sustainment CMOs - 3
Aligned by Products - Satellites, Launch,
Missiles, Sensors Comm
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• Why realign?
• To better meet the needs of our customers
  to position the Agency to provide our
• customers with the best possible service
• What changed?
• Better service to Program Executive Officers
  program managers
• Four new product divisions that focused on
• Aeronautical Systems
• Ground Systems and Munitions
• Naval Sea Systems
• Space and Missile Systems
• How did these changes impact personnel?
• Our goal all along was to make changes as
  resource neutral as possible, with no
  increases in budget or personnel
• While this changed reporting chains, the impact
  to Contract Management
• Offices (CMOs) was minimal

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Timeline

• Initial Integrated Process Teams July 04
• (IPTs) chartered
• Centers IPTs chartered
• Commodity IPTs chartered
• Realignment IPTs chartered
• Realignment decisions Sep
  05
• Implementation Nov 05 May 06

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CMO Support Group

• Optimizes synergy needed in new performance based
  management system outcomes and
  resources linked
• Link budget, planning, and execution
• Link training and execution
• Link data analysis and corrective action
• Position and personnel management planning
• New work assignment procedures require us to
  modify our planning,
  execution, assessing, adjustment functions
• Budget planning
• Performance planning and execution
• Performance and budget analysis
• Corrective action
• We must also build a core of product specific
  SMEs
• Business (Product knowledge)
• Technical (Product skills)
• Nonresident Product Readiness Integrators
  (Product integration)

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Inter-CMO Command Control Relationships Defined

• When a major program is managed by a CMO
• Use a "dotted line" relationship between Product
  Divisions and CMOs for
  major programs
• Division Directors flow PEO outcomes to Product
  Divisions and CMOs
• The Product Divisions have the lead interface
  role for the Agency Director
• The Prime CMO Commander "negotiates" program
  level customer outcomes with the PM
• Negotiated outcomes are flowed across the
  enterprise via outcome based Memorandums of
  Agreements (MOAs) and Letters of Delegation
  (LODs)
• CMOs defer to the Product Divisions to provide
  program start-up and technical expertise
  regarding identification of product, program
  risks, and lessons learned.
• Product Divisions serve as the conduit up to
  Program Executive Officer (PEO) and down to
  primary CMO Commander
• Program Integrator is the entry point into the
  resident CMO
• Product Readiness Integrator is the entry point
  into the non resident CMO

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Supported Supporting CMO-Flow Chart
Same Different Product Divisions
When a major program is supported by a CMO
Supporting CMO signs MOA/LOD
Step 2
Step 3
Step 1
YES
Lead CMO passes outcomes to supporting CMO
Supporting CMO agrees can support
Lead CMO negotiates Customer outcomes
Lead modifies MOA/LOD, support signs MOA/LOD
Step 4
YES
Supporting CMO suggests alternate spt lead
agrees
NO
YES
Step 5
Discussions between prod division, lead sptg CMO
Resources moved w/in Prod Div work perfd
YES
NO
Major Program resides in same product division
Step 6
NO
Step 7
Work not performed
Step 6
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Concept of Operations
Product Division-Internal Commands Schematic
Product Team
Technical Product Performance Group (Technical
advice and management support)