Ensure effective prime supplier control of subcontracted work, ensure conformity of high consequence risk subcontracted products and services when that determination can only be made at the subcontract level, or product is direct shipped from the subcontractor location
Process
1. Analyze supplier work requirements and
determine need to delegate - Prime suppliers are responsible for
their subcontractor’s performance. There are instances where
Contract Management Offices (CMOs) may determine DCMA needs to delegate specific commitments,
tasks, or activities to ensure subcontractor performance or to
validate prime supplier controls. DCMA personnel shall
monitor supplier activities associated with their specific functions
and initiate delegations to receiving CMOs at the subcontract and
further sub-tier levels as appropriate to accomplish necessary
contract oversight or the performance of a specific task, function
or performance indicator. These delegations can be
for any of the contract administration services which have been
delegated to DCMA, including business and technical functions.
Contract management at the subcontract level is intended to assure
that the government's best interests are served, not the prime
suppliers' interests. DCMA personnel shall assure that
delegated work is essential to contract performance and that the
surveillance or tasks may only be adequately accomplished through
direct DCMA involvement at the subcontract level. Delegations
shall be issued when surveillance is required at another CMO or when
the activities are required at a different supplier within the same
CMO.
1.1. Functional
Specialist determines workload requirements - Sender shall
analyze work requirement(s) and determine the need for a delegation.
1.1.1. Factors
affecting the need for issuing delegations are addressed in FAR 46.405 to
include:
The item is to be shipped from the
subcontractor's facility to the using activity and
inspection at source is required
The contract specifies that certain quality
assurance functions, which can only be performed at
the subcontractor's facility, are to be performed by
the government
It is otherwise required by the contract or
determined to be in the government's best interest
such as high consequence risk or the surveillance
plan identifies risks associated with:
National
Aeronautics and Space Administration
(NASA) work. All NASA sub-tier
delegations are made in ECARS
Navy Special Emphasis Program
work
Mission critical items (MCI), Critical Safety Items (CSI) and Safety of Flight (SOF) items
(e.g. critical characteristics or
processes that can not be
appropriately verified upon receipt
at the prime supplier’s facility.)
Negative subcontractor
performance history e.g. Product
Quality Deficiency Report (PQDR)
investigations attributable to the
subcontractor, high level of
failures at the prime supplier
caused by subcontracted items, etc.
Surveillance activity for a
process which has high or moderate
risk impact or consequence of
failure and the output cannot be
verified by subsequent monitoring /
measurement or deficiencies affect
operational usefulness and become
apparent only after the product is
in use or the service has been
delivered
Surveillance activities for a
feature / characteristic which has
high or moderate risk impact or
consequence of failure and
conformity can only be determined at
the subcontractor level
When specific customer directed
activities e.g. Quality Assurance Letter of
Instruction (QALI), Memorandum of Agreement (MOA), etc. require DCMA
support
Safety surveillance, pricing reviews, contract
administration, property administration, plant
clearance, and other contract business operations
that are specifically performed at subcontractor
locations
1.1.2. Factors
that may not require delegations:
Non-critical items
Non-complex items
Low risk supplier
Features, characteristics, and processes with
minimal influence/impact on contract performance
Moderate and low risk impact or consequence of
failure with positive subcontractor performance
history
2. Open lines of communication - Sender shall open lines of communication with receiving CMO(s) prior
to delegating to ensure requirements are understood and will
maintain communication throughout the life of the delegation.
2.1. Where a place of
performance is identified in a contract, the sending CMO shall
notify the CMO cognizant of the subcontractor of the contract,
including the contract number and CAGE code or provide a copy of the
contract when not available through Electronic Data Access (EDA) . The CMO cognizant of the subcontractor shall obtain the
contract through EDA. Personnel at both locations shall
communicate to assure that each party clearly understands the
relationship between the prime supplier and the subcontractor and
that all appropriate requirements and responsibilities are
communicated. If there is a need for more specific
instruction to be flowed down to receiving CMOs at these locations,
or where functions beyond QA are necessary at the place of
performance, DCMA sending CMOs shall issue delegations to receiving
CMOs to ensure that activities and mandatory requirements are
complied with and understood.
Note: Place of Performance and
Direct Shipments are not synonymous terms or situations. Place
of Performance contracts may identify line items that are to be
shipped directly to the government. However, irrespective of
the type of contract, direct shipments to the government from a
supplier/subcontractor are not authorized unless specifically
identified in the prime contract.
2.2. Communication should include any resource
estimates that are known prior to the issuance of the delegation and
attempts to resolve any gaps identified.
2.3. The sender and receiver shall make a
determination regarding any special considerations and determine the
specific type of delegation needed. Factors to
consider include, but are not limited to:
2.3.1. Corporation Inter/Intra-Divisional Work Transfer
- Where contract performance is shared between different
divisions within the same major corporate entity, the sending CMO
cognizant of the division that is identified in the contract shall
delegate to the receiving CMO cognizant of the division involved
with performance. Typically, the company will use an
inter-divisional work order to document this transfer of
responsibility between divisions. DCMA Offices at corporate
locations should be aware of this workload and engage with the
supplier to gain insight into those work requirements.
2.3.2. Blanket delegations may be
issued where issuance of individual delegations would be an
administrative burden and for a particular group of purchase orders
for:
Surveillance of repetitive processes or tasks in
a facility
Purchases of the same or similar items
Specific efforts in a particular facility
2.3.3. Host Nation
delegations are delegations issued to, or received from a foreign
government for the exchange of contract management services and are
issued by the cognizant DCMAI CMO. DCMA Continental
United States (CONUS) to DCMA
Outside the Continental United States (OCONUS) delegations shall be processed in accordance with this
policy; however, when sending delegations to or receiving
delegations from a foreign government the International
Agreement / International Memoranda of Agreements / Host Nation
Contract Management Services Instruction or the International and
Federal Business Reimbursable and Non-Reimbursable Support Instruction shall take precedence as applicable. Note:
When receiving a delegation from a foreign government, DCMA is the
Host Nation.
2.3.4. Product Quality
Deficiency Report (PQDR) support investigation requests shall be
delegated to the sub-tier location via the Product Deficiency Report
and Evaluation Program (PDREP). 2.3.5.
International Traffic in Arms Regulation / Export Administration
Regulation (ITAR/EAR) are the implementing regulations for export
control laws established by the Arms Export Control Act / Export
Administration Act (AECA/EAA), respectively, that prohibits the
unauthorized transfer of defense articles, defense services, related
technical data, commodities, information, technology, and software
to foreign persons. If export-control requirements are
imposed on the prime contract and the prime supplier intends to
sub-contract to a foreign supplier, the prime CMO shall contact the
prime supplier to determine if, during the performance of the
sub-contract, the sub-supplier will generate or require access to
export-controlled articles or technical data. If
the sub-supplier will generate or will require access to
export-controlled articles or technical data, DCMA personnel at the
prime shall ensure that subcontracts / purchase orders, and
delegations to the CAS component cognizant of the subcontractor
identify ITAR / EAR restrictions, the appropriate DFARS clause, and
the number and expiration date of the applicable export license. Delegating CMOs should send a copy of the export license to the
sub-tier CMO if available. See the Export Control Instructions
(TDP) for additional requirements prior to issuing delegations.
Note: The supplier is responsible for compliance with ITAR / EAR,
not DCMA. However, violations of the ITAR / EAR by DCMA personnel
carry civil and criminal penalties under U.S. law that could include
up to $1 M in fines or up to 10 years in prison. Agency
administrative sanctions are also possible up to and including
termination of employment.
2.3.6. DCMA Centers - Centers
receive delegations from and issue delegations to other Centers and
CMOs. The prime CMO is responsible for identifying other
organizations whose assistance is necessary for contract oversight.
It is the ACO's responsibility to coordinate with the Centers to
understand how work effort is to be delegated to them, because work
is not automatically directed to the Centers in Electronic Document
Workflow.
2.3.7. Additional information and/or
requirements regarding delegations can be found in:
2.4. Communication shall be
documented. Any mode of communication is acceptable.
3. Prepare and Send Delegation - The
delegation shall be sent after initial communications have been
completed whether or not all issues have been resolved.
3.1. Delegations shall include
appropriate documents, e.g., support contracts, purchase orders,
source of Customer Directed Activity (MOA, QALI if applicable),
specific regulatory requirements, or risk statements.
3.1.1. The prime supplier shall be requested to incorporate government
access rights into the applicable subcontract to ensure timely
government access to the subcontractor facility. Assure the access
wording is consistent with the government rights expressed in the
prime contract, referenceFAR 52.246-2 through
8.
3.2. Delegations shall include
specific tasks which shall be performed, e.g. critical
characteristics for CSI, SOF characteristics, post-award financial analysis, and Property
Administration. These tasks shall be the result of the
communication between the sender and receiver. 3.3. Delegations for
Quality Assurance support shall include or reference the location in
the appropriate documents as applicable:
Appropriate quality / inspection system
requirements
Appropriate and accurate technical requirements
or reference thereto
Identification of critical safety items,
critical product characteristics, and critical
processes
System safety risks that may result in
catastrophic failure (i.e. Failure Modes and Effect
Criticality Analysis (FMECA) category 1)
Required personnel, system, process, or material
certifications
Subcontractor/supplier authority relative to
processing waivers and deviations
Requirements relative to subcontractor generated
plans, i.e. quality plans, risk management plans,
frozen manufacturing planning, configuration
management plans, etc.
Requirements relative to frozen/locked
configurations, design reviews, configuration
management requirements and audits, first article
inspection and/or specific testing requirements; and
Instructions related to product release from the
subcontractor's facility
Earned Value requirements
When applicable, ITAR restrictions, appropriate
ITAR DFARS clause, and the number and expiration
date, of the applicable export license
LATEST CHANGE
3.4. The Delegation 1.0 eTool shall
be used to delegate QA functions. The exceptions are those
which utilize the ECARS system, e.g., International and NASA
delegations. 3.5. Delegation of surveillance for
classified programs shall be processed in accordance with
supplemental instructions maintained by the Special Programs
Directorate.
4. Acknowledge the delegation - The
receiver shall analyze delegated work requirement(s) and assign a
lead for a multi-functional delegation. Once requirements are
determined at the functional level, the receiving CMO shall Accept,
Accept with Limitations, or Reject Delegation. Decisions shall be
made within 10 work days. Each CMO should identify
the level within the organization to accept or reject delegations. The Commander, Director, or designee shall be informed of
the rationale for limited acceptance or rejection. The
reference to designee for limited acceptance or rejection of
delegations is operationally defined as the individual formally
identified in writing by the Commander/Director to act with the full
authority of the Commander/Director. 5. Rejection of Delegation - Where
receiving CMO resources are limited in functional areas, limited
acceptance of the delegation should be discussed and negotiated with
the sender. Only the receiving CMO Commander/Director or
Center Director or their designee can reject a delegation.
CMOs should assess workload across their organization and prioritize
new delegations against existing workload. If a mutual
agreement is reached on a limited delegation, further escalation is
not required. The applicable Regional Commander(s) and HQ
Operations Directorate shall be informed of any delegation which is
rejected.
5.1. The following additional
steps shall be taken when a delegation is rejected for resource
related issues:
CMO Commander/Director or designee elevates to
Regional Commander or their designee of their
inability to support the delegation request
Region determines if the required resources and
skills are available within the Region
Region determines if FTE can be reallocated,
temporarily or permanently, to CMO requested to
perform delegation.
If Region can not support delegation, elevate to
HQ Operations Directorate level to determine if
assets are available from other Regions or HQ assets
5.1.1. If required, inform Customer of inability of
DCMA to support workload.
5.2. When a rejection occurs for
reasons other than resource related, e.g., the factors referenced in paragraph 1.1, the applicable issue shall be
elevated to the HQ Operations Directorate and copied to the Regional
Commander or designee.
6. Re-delegate - The receiving CMO can
re-delegate throughout the supply chain, as required. The
same process as described in paragraphs 1- 5 shall be followed with
the initial delegating CMO.
7. Execute the delegation - The receiver shall perform the delegated work requirement(s) in
accordance with applicable agency mission policies. When the delegated DCMA surveillance activity is the same as the
prime supplier representative's activity, e.g., mandatory
inspection point, DCMA's effort should be after the prime supplier's
representative has accomplished the activity and accepted the
result.
8. Manage delegated workload - The sender
shall manage the workload including tracking the status of open
delegations and performance, and identifying required changes to the
delegation. The receiver shall manage, track, and measure work
accomplished.
Latest Change
8.1. For blanket delegations, the
need for continued support shall be determined and the delegation
updated in Delegation 1.0 eTool at least annually to document that they are still appropriate.
8.2. Close the delegation - The
receiver closes the delegation and informs the sender that efforts
have been completed, including any lessons learned not already
identified. Records of work performed in support of the
delegation shall be retained in accordance with Records
Management instruction. 8.3. Provide feedback - The
receiver shall communicate with the sender on a regular basis,
keeping them informed of performance status, significant issues, and
concerns. After the delegation is completed, the receiver and sender
shall discuss any lessons learned.
Competencies/Certifications
Current DCMA QA certification requirements are addressed in the PA
Competencies and Certification. CMOs may authorize personnel to
perform surveillance tasks for which they are qualified whether or
not the individual meets certification requirements.
Prior to assigning QA personnel to work this process, the first
level supervisor is responsible to ensure QA personnel are qualified
to perform the tasks defined in this policy as it relates to the
assigned facility, contract, or product.
To meet the full competency requirements for this instruction:
QA personnel who have not previously taken or
received an equivalency for Quality Assurance
Fundamentals ( S-01) need to take government
Contract Quality Assurance (QUAL-101).
QA personnel who have previously taken or
received an equivalency for Quality Assurance
Fundamentals ( S-01) need to take government
Contract Quality Assurance
Advanced/Update(QUAL-201).
Both QUAL-101 and QUAL-201 are currently listed
in CTMS (DCMA Training) and should be added to
individual eIDPs as appropriate
Training Matrix
Delegate
Surveillance-Quality Assurance Training Matrix
What TASKS are
required to
accomplish this
process?
Methods of training
On-the-Job Training (OJT)
Computer Based Training (CBT)
Course (Commercial, College/ Vocational)
Contractor Sponsored Training
Guidebooks
DCMA Developed
Administrative Task (The task is wholly enabled by
the contents of the instruction and requires no training
intervention)
Electronic Contract Administration Request System
(ECARS) eTool - All non-DoD delegations,
including NASA, other federal civilian agencies
and foreign customers must be entered into ECARS
upon receipt. In addition, delegations and
re-delegations must be distributed through ECARS to
receiving activities. ECARS will automatically route
the delegation to the cognizant CMO (contract
receipt point) based on the CAGE code of the
supplier performing the work.