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Defense Regulations

Defense Regulations. Richard Vinton Raytheon Company. 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. FARs. 1.101 Purpose .

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Defense Regulations

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  1. Defense Regulations Richard Vinton Raytheon Company

  2. 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 RMC Auditor Workshop June 21-22, 2007

  3. 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 …….. RMC Auditor Workshop June 21-22, 2007

  4. 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. RMC Auditor Workshop June 21-22, 2007

  5. 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 RMC Auditor Workshop June 21-22, 2007

  6. RMC Auditor Workshop June 21-22, 2007

  7. 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 FAR vs AS9100 RMC Auditor Workshop June 21-22, 2007

  8. 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. 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 vsAS9100 and Expectations When auditing records, verify the clients knowledge of FAR requirements for access & retention of records RMC Auditor Workshop June 21-22, 2007

  9. 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 organization’s requirements. Criteria for selection, evaluation and re-evaluation shall be established. FAR vsAS9100 and Expectations Viable criteria is established to validate a supplier’s capability/probability to fulfill contractual requirements RMC Auditor Workshop June 21-22, 2007

  10. FAR 9.405-2 Restrictions on subcontracting ..Protecting the Government’s 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.. AS9100 7.4.1 Purchasing Process The organization shall evaluate and select suppliers based on their ability to supply product in accordance with the organization’s requirements. Criteria for selection, evaluation and re-evaluation shall be established FAR vsAS9100 and Expectations Ensure that the source selection process includes review of the “Excluded Parties List” RMC Auditor Workshop June 21-22, 2007

  11. 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, FAR vsAS9100 and Expectations Procedures allow “right of access”, review any audit surveillance reports, discuss activities with resident customer reps. RMC Auditor Workshop June 21-22, 2007

  12. 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…. AS9100 7.5.4 Customer Property The organization shall exercise care with customer property while it is under the organization’s 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 vsAS9100 and Expectations When Government Property is involved there additional FAR/DFAR requirements beyond those cited in AS9100, the Government conducts periodic surveys of the contractor’s property system, check for current reports and/or issues raised. RMC Auditor Workshop June 21-22, 2007

  13. 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 contract’s 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. FAR vsAS9100 and Expectations In addition to verify procedures exist, pull actual requirements from a contract and validate compliance RMC Auditor Workshop June 21-22, 2007

  14. 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. FAR vsAS9100 and Expectations Verify acceptance criteria satisfies contractual requirements, if not, differences are covered by waiver/contract mod RMC Auditor Workshop June 21-22, 2007

  15. 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 vsAS9100 and Expectations FAR part 52 is typically contained within a contractors Terms & Conditions – T&Cs should be reviewed periodically to ensure they’re current, also query the organization as to why they flow them to their supply base RMC Auditor Workshop June 21-22, 2007

  16. 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/ RMC Auditor Workshop June 21-22, 2007

  17. RMC Auditor Workshop June 21-22, 2007

  18. 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. 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. DFARS - Supplements to FAR May affect activities associated with 7.2, 7.3, 7.4, 7.5 – can take into account commercial/contractor documents RMC Auditor Workshop June 21-22, 2007

  19. 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. 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. DFARS - Supplements to FAR May affect activities associated with 7.2, 7.3, 7.4, 7.5 – SPIs are typically used as contract mods RMC Auditor Workshop June 21-22, 2007

  20. 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 Government’s unit acquisition cost is $5,000 or more; (2) Items for which the Government’s 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 Government’s 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 (B) The head of the contracting activity for all other programs. (ii) The DoD Unique Item Identification Program Office must receive a copy of the determination and findings required by paragraph (b)(2)(i) of this subsection. Send the copy to DPAP, SPEC ASST, 3060 Defense Pentagon, 3E1044, Washington, DC 20301-3060; or by facsimile to (703) 695-7596. RMC Auditor Workshop June 21-22, 2007

  21. 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. RMC Auditor Workshop June 21-22, 2007

  22. RMC Auditor Workshop June 21-22, 2007

  23. 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. RMC Auditor Workshop June 21-22, 2007

  24. 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! RMC Auditor Workshop June 21-22, 2007

  25. CSI (7.3, 7.4, 7.5) AIA is currently working with Mr. Allen on revising the CSI Handbook RMC Auditor Workshop June 21-22, 2007

  26. RMC Auditor Workshop June 21-22, 2007

  27. 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/ RMC Auditor Workshop June 21-22, 2007

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