Defense Cost and Resource Center Contractor Cost and Software Data Reporting: An Update Ron Lile May 2006

2 CSDR Overview IT activities focused on increased automation and efficiency Training activities shifting to smaller, more frequent, “hands-on” Analytical activities –Significant improvement in compliance since January st Round (end March 2004): –44 Red/Yellow Advisory –10 Yellow –4 Green/Green Advisory Currently (April 2006): –1 Red/Yellow Advisory –14 Yellow –57 Green/Green Advisory Earlier CSDR planning from Pre-MDAP Programs –Still have problem programs –Underlying issues still not addressed Policy/Outreach Activities –Engaging DCMA and DPAP –Finalizing Manual, formats, and DIDs

3 Recent DCARC Actions re Manual Transfer DD 2794, CSDR Plan, and DD and instructions from Manual to DCARC website Delete duplicative items found in both in Manual and DIDs –NDIA agreed but also noted desirability of retaining CSDR processing procedures in Manual

4 NDIA Comments General –Prime and subcontractor reporting Concern about cost differences when subcontractor reports direct Consider requiring subcontractor to notify PM (e.g., ) total subcontract cost data (CWBS level 1) Unclear about how direct reporting facilitates DCARC report processing Foreign reporting: Provide option of reporting through prime because of reporting difficulties

5 NDIA Comments General (cont’d) –Raise reporting thresholds (e.g., $100M versus DCARC approach to align with CPR thresholds –SRDR: Definition of software release Do a major block release and subsequent minor changes/corrections require additional report? –Use of contract award or definitized contract award as baseline for dictionary and report submissions Full CSDR like reporting or Modified CSDR using temporary accounts and “booked costs” –Next versions of 1921 and DIDs?

6 NDIA Comments Definitions –Recurring/Nonrecurring issues have been deferred to FG Working –Group – when is the meeting? –Change RAM Chapter 3 Stakeholder Responsibilities –Validation checklists and software – available dates? –Should DCARC goal of 15 days to validate be included in responsibilities? Chapter 6 Reporting Guidance –Ongoing issue: FFP suppliers will not provide actual costs or EACs –Separate cost reporting by model or version is difficult and costly – can this be limited to cost separation levels that are reasonable and practicable? –Is requirement to insert zeroes still in effect when no dollars to report? Chapter 7 DACIMS –Feasibility of interim advisory notice to contractors before CSDR report rejection?