DPAP | Program Development and Implementation | Unique Identification | Working Groups | Joint Aeronautical Commanders Group (JACG) | SPI Concept Paper

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SPI Concept Paper Template

[Use a discrete subject title that concisely captures the nature of the process being proposed].

[Identify the existing contractual requirement that will be replaced/modified].
[Describe the proposed process improvement (e.g., replace Military Standards/ Specifications with commercial performance standards)].
[Provide background information on existing process and purpose of proposed change (e.g., reduce packaging material cost and labor hours through implementation of the bulk quantity packaging process)].
[The descriptions should be in sufficient detail so the Government can determine if a detailed cost impact proposal for current contracts will be required].

[An accurate list of affected contracts]
[A clear description of the process change(s) being proposed]
[A description of the methodology to move to the proposed single process and a schedule for transition]
[An explanation of how the contractor will implement the process (i.e. how the contractor proposes to maintain quality and schedule during the transition)]
[A description of the proposed metrics that will be used to measure effectiveness and compliance. How will the contractor demonstrate acceptability and reliability of the process?]
[A rough order of magnitude cost benefit analysis, including estimated: implementation costs (if any), cost savings on existing contracts and future cost avoidances]
[An explanation of required regulatory/contractual changes]
[A list of cage codes for the affected facilities.]
[Ensure paper contains full text or referenced documents as attachments, e.g., internal policies.]
[Include proposed MOA language]
[ACO and DCMA technical point of contact phone numbers, FAX numbers and E-mail addresses.]
[Contractor technical point of contact, telephone numbers, FAX, E-mail address, etc.]
[PCO and technical point of contact phone numbers, FAX numbers and E-mail addresses.]

[Develop methodology to move to the proposed common process and a schedule for transition].

[Identify proposed metrics to measure the effectiveness and compliance with the proposed change (e.g., Reports of Discrepancies from customers, feedback on packaging problems, and successes that have been achieved)].
[Describe how acceptability and reliability (Technical Feasibility) of the process will be demonstrated].

[Perform analysis without requesting certified cost or pricing data].
[Present a rough order of magnitude analysis, which includes current and future cost and savings (show net cost savings as there may be initial costs associated with implementation)].
[Determine if implementation is advantageous (cost effective) to the Government.]
[Base information on empirical data].
[Identify requirements to be deleted along with an estimated annual savings to existing contracts; if the impact on a particular contract or program is material, provide details by contract or by customer].
[Include an estimate of annual future savings forecasted for the period covered by contractor's indirect expense rate forecast (usually five years)].
[Break down estimated costs and savings by normal direct and indirect cost elements and identify recurring costs vice non recurring costs and savings].
[Will the Government recognize savings in the way of lower overhead rates to be used in pricing products in future years?].
[Will forward pricing rate agreements be affected?].
[If monetary costs do not exceed implementation costs, identify how change will benefit the Government (e.g., increased quality, faster deliveries, etc.)].
[Usually, the same information prepared by the contractor to obtain management approval for the proposed change will suffice].

[Describe the impact (program risk), i.e., on existing and future contracts, to the Government and the contractor if the proposal is approved or disapproved].
[Identify contracts and customers impacted if the paper is approved].
[Include all prime contract numbers if they can be identified at the time the concept paper is developed].
[The contracts listed should include candidate Government contracts for change implementation on which the contractor is a subcontractor; identify the applicable prime contractors, the subcontract numbers, and the cognizant ACOs) and indicate that the concept paper is being submitted to prime contractor customers for review so that "parallel processing" can be performed].
[Explain the impact on existing contracts and an assessment of future impacts on such areas as quality, delivery schedules, performance milestones, product shipments, warranty provisions, maintenance, life cycle costs, etc.].

[Include an assessment of changes required in the Government's involvement in the process (for example, will the change result in reduced Government oversight or less time spent in contract negotiations?)].

[Explain any required statutory/regulatory/contractual changes (include specific verbiage to be added and identify language to be deleted)].
[Work in coordination with legal and the HQ Process Manager in preparing a FAR/DFAR case].

[Provide names and telephone numbers of the contractor and DCMA subject matter experts who can be contacted to address technical questions regarding the proposed process change].

This page last updated: April 30, 2008