1. Presentation to NDIA Ground Robotics Division 2 September 2010

2. 2 Agenda Who We Are What We Do Enterprise Initiatives

3. 3 Setting the Strategy Our Mission We provide Contract Administration Services to the Department of Defense Acquisition Enterprise and its partners to ensure delivery of quality products and services to the warfighter; on time and on cost Our Vision DoD’s leading experts in Quality Assurance; Cost, Schedule, and Supply Chain Predictability; and Contract Administration; enabling our partners to achieve contract objectives Our Core Values Integrity, Service, Excellence

4. Worldwide Acquisition Impact Worldwide Operations Scope of Work - $2,547B Face Value of Contracts - $1,458B Obligated -18,946 Contractors - 330,532 Contracts -$229B Unliquidated Obligations - ACAT 1 and 2 programs: 182 - Flight Operations (862 Aircraft/yr) - $153B Gov’t property in plant - $9B Progress Payments - $32B Performance Based Payments Span of Control - 10,334 civilian professionals -- ACOs, PI, QA, Engr, IS, Prop - 525 military -409 Active Duty, 116 Reserves -900+ locations - 49 major field commands - $1.2B budget authority - $145M reimbursable target w/FMS - Combat Support Agency.. HQ DCMA 4

5. DCMA Authorities FAR 42.302 (a), (b), and sometimes (c) Contracts, Pricing, Rates, Negotiations, Progress Payments, Government Property, Small Business Engineering, Processes and Technical contract compliance Systems Engineering, Software Engineering, Manufacturing, Production Readiness, On-Time Delivery Quality Product Acceptance, Quality Management Systems DFARS 242.302, OUSD(AT&L) Delegation as EVM Executive Agent United States Code, Title 10, Chapter 144 – Major Defense Acquisition Programs; Section 2440 – Technology and Industrial Base Plans 5

6. New Organization Structure 6

7. Contracts Directorate (AQ) Contract Executive Directorate (AQ) Executive Director Deputy Director Contracts Policy Division Procurement Management Review Division Procurement Division Small Business Division Cost & Pricing Center Business Operations Center Procurement Center Small Business Center Mission Support Office CIPR Center Planning & Performance Assessment Division CSPR Plant Clearance Terminations Property Corporate Administrative Contracting Officer Proposal Analysis Forward Pricing and Indirect Cost Data Analysis, Training & Recruitment Property Policy DAR Council Cost & Pricing Policy FIRM Center Finance & Payment Policy 7 Functions Policy, Training, and Tools Procurement Mgt Reviews Small Business Program Management Contractor Purchasing System Reviews Contractor Insurance and Pension Reviews Plant clearance Contract terminations Property management Cost and pricing Functions Policy, Training, and Tools Procurement Mgt Reviews Small Business Program Management Contractor Purchasing System Reviews Contractor Insurance and Pension Reviews Plant clearance Contract terminations Property management Cost and pricing

8. Engineering & Analysis Directorate (EA) 8 Executive Director Deputy Executive Director Systems & Software Engineering Division Manufacturing Engineering and Assessment Division Program and Analysis Integration Division Mission Support Office Earned Value Management Center Industrial Analysis Center Software Engineering Branch Systems Engineering Branch Program Integration Branch Analysis Integration Branch Supply Chain Predictability Branch Manufacturing & Production Branch Earned Value Systems Compliance and Earned Value Training Industrial Base Vulnerability Analysis Defense Infrastructure Criticality List (DIBS) Functions Policy, Training, and Tools Systems Engineering Technical Management and Process and Reviews Software Engineering Technical Process Reviews Manufacturing and Production Technical Process Reviews Predictive Program Risk Assessments (IEAC, Schedule, Technical) Earned Value Management System Compliance Industrial Base Analysis Functions Policy, Training, and Tools Systems Engineering Technical Management and Process and Reviews Software Engineering Technical Process Reviews Manufacturing and Production Technical Process Reviews Predictive Program Risk Assessments (IEAC, Schedule, Technical) Earned Value Management System Compliance Industrial Base Analysis

9. 9 Quality Assurance Executive Directorate (QA) Executive Director Deputy Executive Director Process Management Division Resource Management Division Information Management Division Quality Engineering Division NASA Audit Division Logistics Safety Center Mission Support Office Quality Assurance Directorate (QA) Functions Policy, Training, and Tools Quality Assurance Product Acceptance Quality Mgt System Surveillance Functions Policy, Training, and Tools Quality Assurance Product Acceptance Quality Mgt System Surveillance

10. Portfolio Management & Integration Directorate (PM&I) Integration Support Division Portfolio Management & Integration Executive Directorate (PI) Executive Director Deputy Exec Director Mission Support Office Navy Service DeskArmy Service Desk Joint & Non DoD Service Desk USAF Service Desk PEO Integraton 10 Functions Customer Engagement Represent Agency in OSD/DAB, DAES Process Customer Focal Point for OSD and SAE MOAs Functions Customer Engagement Represent Agency in OSD/DAB, DAES Process Customer Focal Point for OSD and SAE MOAs

11. Operations Directorate (O) 11 Operations Directorate (DCMAO) SES (2) Tier II/I MIL Dep 0-6 (Rotational) Mission Support Office Contracts Division Engineering Division Quality Division Air Operations Division Sector Divisions Eastern Region 0-6 Western Region 0-6 Central Region 0-6 Primary CMO Streamlined CMO Primary CMO Streamlined CMO Primary CMO Streamlined CMO Mission: Led by the Chief Operating Officer (COO) and Deputy, manages three Regional Commands (Eastern, Central and Western) and four Product/Specialized CMOs (APO, AIMO, NSEO, NPO). Accountable for the full spectrum of contract management functions, consistent integrated performance management, resource and budget planning. Accountable to the Agency Director for successful Regional/CMO mission execution and performance. Will ensure all customer requirements and Agency Performance Indicators are successfully met in cooperation with the appropriate Headquarters Directorate. This involves ensuring adequate strategies and corrective actions are in place to meet customer requirements and Agency goals.

12. 12 Western CMOs Carson (Headquarters) Denver Boeing Huntington Beach Lathrop Lockheed Martin Denver Boeing Long Beach Los Angeles Palmdale Phoenix Santa Ana Lockheed Martin Sunnyvale Raytheon Tucson NPO New Geographic Alignment Central CMOs Chicago (Headquarters) Dallas Dayton Detroit Huntsville Lockheed Martin Forth Worth Bell Helicopter Forth Worth Boeing St. Louis Twin Cities AMP AIMO Eastern CMOs Boston (Headquarters) Atlanta Baltimore Garden City Hartford Manassas Lockheed Martin Marietta Lockheed Martin Moorestown Orlando Philadelphia Boeing Philadelphia Sikorsky Aircraft Springfield Raytheon Tewksbury APO NSEO Special Programs Special Programs East Special Programs South Special Programs West

13. Our International Presence 13

14. 14 Material Solution Analysis Technology Development Engineering & Manufacturing Development Production & Deployment Operations & Support ABC IOCFOC Pre-Systems AcquisitionSystems Acquisition Sustainment FRP DR Acquisition Planning Support & Services Engr Concept Dev R & D Contracts S/W Design/Dev Systems Review Final Engr Design Mfg Plan Quality Systems EMD Contracts S/W Dev & Proof Prod Surveillance Quality Control Engr Support Prod Contracts Follow On Contract Spares Upgrades DCMA FAR 42.302 Contract Administration Acquisition Strategy Industrial Assessments Past Performance IPT Pricing Small Bus Plan Program Integration Earned Value Mgt. Systems Review Risk Management Fwd Pricing Rates S/W & Systems Eng. Quality Assurance Product Acceptance Production Scheduling Property UCAs Payments Contractor Depot Maint. Sustainment Critical Spares Supplier Management Repairs Closeout Final Rates Plant Clearance Involvement by Acquisition Phase

15. DCMA Initiatives Proactive Customer Engagement Program Office – Monthly Risk Assessment Reports Contracting Office – Proactive Delivery Status, On-Time Delivery SAEs / PEOs – Sector Portfolio and Industrial Base Analysis OSD – Program Assessment Reports to support DAB / DAES Technical, Cost, and Schedule Risk Earned Value Trip Wire Analysis Integrated Analysis Cross Functional multi-disciplined contract surveillance resulting in predictive risk assessments providing insight across the supply chain and provided to PMs and other customers to support program execution 15

16. Integrated Analysis Strategy 16 Sub Contract Supplier Sub ContractSupplier CMO B CMO C CMO D CMO Z CMO A Integrated Analysis starts by surveillance and assessment of individual contracts Development contracts -Development Processes -Development Control Mechanisms -Development Deliverables -Business Systems Sustainment Contracts -Delivery Quality and Timeliness -Business Systems

17. Contract Zy Contract Bx Contract An Integrated Analysis: Hierarchical 17 Contract A1 Contract B1 Contract Z Contractor Site A Contractor Site B Contract Z1 Contractor Z CMOs - Business Systems Surveillance at contractor site level (EV Systems, MMAS, etc) - Technical Surveillance at Contract Level - Program status and assessment reports - Contract Compliance Assessments - Product delivery status - EV Data Analysis of Program Data to identify Risk Areas - Integrated Assessment of EAC, Schedule, and Technical - Capacity Assessments - Contracts progress payments, contract close-out, etc Sector Leads - Product Sector Analysis - Cross Company Product Analysis - i.e. Fixed Wing AC, Rotary Wing AC, Ground tactical vehicles, etc) - Supply Chain Analysis - Industrial Base Analysis - Corporate Level Analysis of Contract compliance (Systemic analysis of a corporation) - Capability Assessments Corporate Level Product Sector Level Integrated Analysis depends on establishing structure and relationships between the data elements and leveraging Contract compliance assessments, Program Assessment Reports, Formal and Informal Surveillance Activities

18. Integrated Analysis: MDAP View 18 Sub Contract Supplier Prime Contractor Tier 1 Major Sub-Contractor Tier 2 Sub-Contractor / Supplier Supplier Sub ContractSupplier Tier 3 Sub-Contractor / Supplier Through Letters of Delegation (LODs) surveillance is done across the supply chain Sub Contract

19. Industrial Base Reports Corporate Profile Reprots CMO Commander Reports DCMA Surveillance Systems Engineering Software Engineering Manufacturing/SCP Earned Value Program Integration Contract Receipt and Review Develop Surveillance Plan Functional Surveillance Quality Contracts Collect and Analyze Performance Indicator Data Develop and Publish Monthly Functional Assessment Integrated Monthly Program Assessment Report Program / Contract Surveillance Business System Surveillance (Annual Risk Based Surveillance) AccountingPurchasing EstimatingProperty Earned Value MMAS Progress PaymentsBilling Business System Surveillance (Annual Risk Based Surveillance) AccountingPurchasing EstimatingProperty Earned Value MMAS Progress PaymentsBilling

20. DCMA Participation in DoD Initiatives WSARA PARCA – Program Assessment Reports and Earned Value Analysis to support root cause analysis OSD/PSA – Earned Value Assessments and Technical Risk Assessments to support OSD DABs, DAES, and Special Reviews AT&L Affordability Initiatives Director DCMA on Steering Committee Actively participating in several of the 5 committees Sec Def Efficiency Initiatives Conducting Agency zero based review Working with AT&L to Identify areas of efficiency improvement within DCMA and across acquisition community 20