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One team, one voice delivering global acquisition insight that matters.

Online Aerospace Supplier Information System (OASIS) Pilot Program Update

Michael E. Shields, Jr.

DCMA Executive Director, Quality AssuranceMarch 2018

One team, one voice delivering global acquisition insight that matters. 2

From Vice Admiral David Lewis, DCMA Director:

• Prime contractors are responsible for controlling their subcontractors. Our actions are

diluting the prime's sense of accountability and responsibility and confuses our oversight role

• Intent is to hold the prime contractor accountable, under the terms of their contract with the

Government, and to begin to discontinue the practice of writing letters of delegations (LODs)

unless they meet the intent of the FAR guidance for doing so

• This shift will include a renewed, strong focus on surveillance of the prime contractor's

controls over their subcontractors, to include how they are selected, risk rated and managed

Detection to Prevention (D2P):

a. Supports Better Buying Power

b. Industry/DCMA Collaboration is Critical to Success

DCMA Strategic Direction


Guidance

DCMA Strategic Plan

Goal 1: Inform and contribute to affordability decisions

• Objective 1.4: Transition oversight activities from detection to prevention

by focusing limited Agency assets earlier in the acquisition value stream

and by identifying cost saving areas in order to deliver better acquisition

insight.

o Initiative 1.4.2: Leverage 3rd party Quality Management System (QMS) certification

audit results to reduce duplicative DCMA oversight and labor costs allowing DCMA

to refocus limited assets on other high risk areas.


Problem Statement

•Decomposition indicated industry has a self-governing Quality Management

System (QMS) certification system

•QMS certification results maintained in Online Aerospace Supplier Information

System (OASIS) system

•Confirmed duplicative system level audits currently being performed by:

o DCMA

o Contractor

o Certification Body

o Buying Command

o Prime – Sub Contractor

Initiative 1.4.2 Decomposed


OASIS Pilot Initiative

OASIS Pilot - Leveraging 3rd party QMS audits

• Established several pilots in collaboration with Primes and Major Subs

• Created consensus measures with suppliers that drive improvement

• Using objective supplier / DCMA process and product performance data

o Drive preventative actions, reducing failure costs, improving outgoing quality and

delivery performance


OASIS provides QMS contractor certification information, allows for

Customer and Supplier Monitoring & Feedback to Assessors

• DCMA use of Industry Controlled Other Party (ICOP)/OASIS for Risk

Actualization/Reduction

• ICOP approval provides significant industry insight/oversight

• Reaches sub-tier organizations

• OASIS Watch List of Changes in Approvals

• Feedback process use for DCMA Observations

OASIS Concept


Pilot Results to Date

Pilot Site activity execution results to date:

• Significant efficiency improvement trending

• Enterprise wide – art of possible:

o 90% improvement

• We believe there is an immediate improvement in the cost of major QMS corrective

actions via OASIS

Baseline DCMA Audit Costs :

• Significant amount of Agency expenditures for AS9100 QMS audits that can be directed

back to DCMA

• Contractor labor costs due to DCMA involvement can be directed back to the contractor,

and may produce customer savings over time


DCMA/DCMA Customer Benefits:

Risk Based, focused LODs or LOD avoidance based on DCMA Prime Contract

Management Office (CMO) supply chain data analysis utilizing OASIS as a data

element

Risk Based QMS audit planning using OASIS Level 2 data as an element of QMS

risk assessment in lieu of DCMA QMS audit

CB engagement with CMO during the planning of the onsite

Certification/Recertification and Special Focus audits

CB executed or assisted Corrective Action Verification

Direct feedback

OASIS Benefits


OASIS

• Reaches sub-tier suppliers

• DCMA use of 3rd party surveillance for risk actualization and reduction

Supporting Better Buying Power (BBP) and Superior Supplier Incentive

Program (SSIP) initiatives

• Via analysis of supplier risk, based upon 3rd party reviews

o Workforce multiplier

o Mitigation of duplication of effort and cost

o Improved contractor insight and capability analysis

OASIS Impact


Success Objectives / Deliverables

Completed:

Gained insight into industry QMS health, confidence and status

Reduced DCMA follow-up and special emphasis audits

Identified QMS risk and adjust oversight strategies

Leveraged OASIS for DCMA Oversight Balance/Reduction

Mitigated DCMA QMS concerns through the use of OASIS

Improved labor ROI by elimination of redundant activities

In-Process:

• Harmonized and Institutionalized Industry and Government Best Practices

• Updated DCMA Policy and Industry Command Media

• Use of ICOP process data generation for Supply Chain QMS performance


• Improved technical and business base forecasting

• Increased accountability for accuracy and predictability of technical

support and rates

• Enhanced responsiveness to OSD requests

• Ability to rapidly respond to customer requests for should cost

Unintended Benefits


Opportunities

BLUF: Next Phase Is To Eliminate Redundant Audits at the Sub Level

• Expand and Institutionalize DCMA OASIS Pilot programs

• Industry awareness training (OASIS feedback) for DCMA

• Collaborate with the contractor concerning QMS audits and reviews

• Create Agency level process which includes OASIS feedback

• Standardize QMS Data Collection and Analysis/QMS Risk assessment tools

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