“DCMA’s Transition to Fort Lee”

Revision 1, 3/18/2010

Presented By:

Pam Sutton

Deputy, BRAC Program Management Office

March 24, 2010

Agenda

• DCMA -- “Who we are and what We Do”

• BRAC Planning

• Applying “BRAC Lessons Learned”

• “DCMA Forward”

• DCMA’s Future HQs -- BLDG 10500

• DCMA’s “BRAC Challenge”

• Summary

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.

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Worldwide Acquisition ImpactWorldwide Operations

Scope of Work- $2,247B Face Value of Contracts- 18,541 Contractors- 324,451 Contracts- $204B Unliquidated Obligations- ACAT 1 and 2 programs- Flight Operations (1,150 Aircraft/yr)- $112B Gov’t property in plant- $8B Progress Payments- $19B Performance Based PaymentsSpan of Control

- ~10,000 civilian professionals-- ACOs, PI, QA, Engr, Prop

- 800+ locations- 47 major field commands- $1.1B budget authority- $117M reimbursable w/FMS- Combat Support Agency

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Core Processes“The Big Rocks”

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Quality Assurance Delivery and Schedule Management Earned Value Management Engineering Support Software Acquisition Management Acquisition Planning Support Services Property & Plant Clearance Contracting Contract Safety Transportation

Adding Value to theAcquisition Enterprise

Combat SupportMilitary OperationsReadiness of Fielded SystemsModernization of Military EquipmentIndustrial Surge – During Conflict

Provide Customer FocusedContract Management Services

Right Item = QualityRight Time = On-Time DeliveryRight Price Value for Money =

GS-1910 (26%)

GS-1102 (19%)

GS-1101 (14%)

GS-0800 (3%)

GS-1150 (5%)

Occupational serieswidely distributed(33%)

(Contracts & Pricing)

(Gen’l Business)

(Engineering)

(Industrial Specialist)

(Quality Assurance )

as of September 2008

Workforce Demographics

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MFD - Rockwell Collins (Kaiser)

HMD - VSI

Edges-LM Aero- Palmdale

Center Fuse - NG

RIUs - Smiths Aerospace

Driveshaft - Goodrich

LGS- Goodrich

Radar, EO-DAS-NG ES

EOTS -LM Missiles & Fire Control

HPGS - Eaton

Engine -Pratt & Whitney

LEFD, Wing Fold - Moog

ICP Components-Raytheon Systems

Final Assy, Fwd Fuse, Wing - LM Aero-Ft Worth

EPGS - Hamilton Sundstrand

PTMS - Honeywell

Lift Fan - Rolls Royce Allison

CNI -Components Rockwell Collins

VMC- BAE Systems Controls

Alt Engine - GE

EW/CM components- NG

Radome-General Dynamics Marion

EHAS- MoogExt. Lighting - LSI

EW/CM- BAE IEWS

Harris - Common Components

T&S - LMIS

Fuel System-Parker Aerospace

ICP- LMTSAnti Ice - Goodrich

ICP Panel- L3 Comm

LEFAS- Curtiss WrightFire Protection - Kidde

Transparency ATK

ICP- LM Owego

Supply Chain – Honeywell/Cat Alliance

Gun System –General Dynamics

Rudder Pedal Pacific Scientific

Canopy Actuator - MPC

NDB-MTI

INS-Honeywell

CNI Apertures– Ball

TRS-McCormick Selph

Forebody Test Sled Articles – Advanced Technologies

CNI -Components SCIRaytheon –Weapons

Raytheon -GPS

HOTAS - Essex

RF Cables- Times Microwave

Landing Aid Antennas -EDO

Boeing -WeaponsCNI –Northrop Grumman RS

AME - Marvin

TDE -Smiths Aerospace

Stores & Rel Sys- EDO

ADS – Avionics Specialties, Inc.

Insights across the Defense Industrial BaseJSF Team - US Manufacturing Locations – Major Systems

Combat Support-A Mission in Transition-

Afghanistan

Kuwait

Iraq

Qatar

DCMA I/A MISSION: DCMA Iraq/Afghanistanperforms theater wide contingency contract administration services in support of twoTheaters of war throughout the countries ofIraq, Kuwait, Qatar, and Afghanistan.

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The Budget is almost all People Costs- There isn’t much Flexibility -

Other services include: IT, ISSAcontracts (e.g. DFAS, CHRA bills),

and Disability Comp

FY2010 Budget Authority By Accounts$1,202.1M = Direct & Reimb Authority

$1058.7M = Appropriated funds$143M = Reimbursable Authority

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Most of the Agency budget is direct labor dollars and labor related

Impact of Resource ConstraintsResource Concerns Growing More Visible

“One of the concerns that I have that we -- where we

bear a mutual responsibilityis that from 1990 to the

present, the Defense ContractManagement Agency was

reduced from 24,000people to about 9,000 people.”

Secretary Gates during HASCHearing, February 6, 2008

“Since fiscal year 1990, DCMA’s civilian workforce has been reduced 59

percent.”

Gansler Comission ReportOctober 31, 2007

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“One of my Top priorities is to fix DCMA staffing”

Honorable John YoungAT&L Off-site June 13, 2008

1,059731

1,9092,1611,3911,078

905

Total

1,142 927 380 743 2,484 1,940 1,272 282 54 7 3 Total 9,234

24.4% - Retirement Eligible57.6 % - Total Eligible w/Vera

Average Age = 51.5Average Service = 20.5

Age

Retirement eligible rate increased 1.6% over the past year

4th Qtr FY08

Optional Retirement

Early (VERA) Retirement

VSIP (Both)

Compounding the ProblemWorkforce Demographics

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Addressing DCMA’s Resource Challenges

• OSD and Congress have recognized that continuous reductions have severely impacted DCMA’s ability to performcontract oversight and have come forward in support of ourresourcing issues. They have provided:

• Uptick in our Fiscal Guidance• Support for our POM issues• Acquisition Workforce Development Funding (Section 852)• Strong support for our overseas contingency efforts

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Fixing the Staffing Issues- a work still in progress

Sources of Funds for FY10 Uses of Funds

– Traditional O & M~ 8,660$1,058.7M

– Maintain Current Workforce

– Reimbursable Authority~ 874$143M

– Maintain Current Workforce

– Supplemental Funding~ 250 EEs+ 19 Volunteers

– OCO Mission

– Section 852 (Still in Negotiation)

~ 688 (ES) in FY10~ 2900 by FY15

– Addressing the Degradation of the Acquisition Workforce (our share of the planned growth)

BRAC 2005 Law

BRAC 2005 Law applies to DCMA positions duty stationed at Alexandria, VA

“These positions must relocate to Fort Lee, VA not later than September 15, 2011.”

• DCMA Headquarters

• DCMA International Division

• DCMA Special Programs Division

BRAC Planning

DCMA Applied BRAC “Lessons Learned” from Other Activities

TRADOC

CASCOM

AMC

DISA

DFAS

Fort Lee Garrison

Examples of “Lessons Learned”

• EMPLOYEES: Operate from the assumption this is a significant change management effort impacting DCMA employees, their families, and our customers

• Use phased movement approach. • Posture that a large percentage of the population will not move with the workload.

Extensive hiring is required in the Fort Lee area well in advance of September 15, 2011.

• BRAC MANAGEMENT: Use existing DCMA organizations and processes versus creating a large BRAC Program Management Office

• BRAC PLANNING: Establish baseline project plans and review the plans often (Facilities, IT, Movement, and Budget/Spend Plans)

Building 10500Capacity: 625

Move In July 2011

LMR Building, Prince George, VA•Capacity:60•Vacated February 2010. Facility will be renovated and become the DCMA Learning Center

BLDG 10501, Fort Lee, VA•Capacity: 9•Supports BRAC PMO, ITCSO, and Facilities Service Center Representatives

BLDG 4, DSCR, Richmond, VA•Capacity: 46•Shared with DCMA Southern Virginia (12 )

Rivers Bend East Technical Center, Chester, VA•Capacity: 210-230•DCMA’s “Center of Gravity” in the Fort Lee area

Federal Building, Richmond, VACapacity: 40-70 Planned to be available April 2010

“DCMA Forward”

Assumptions:• An estimated 25% of personnel will relocate to Fort Lee. There will

be a loss of critical knowledge, skills and abilities during BRACtransition.

• Many people in senior leadership and key positions will leave the Agency.

DCMA’s BRAC Challenge

“Maintain An Experienced and Capable Workforce”

DCMA’s HR Transition Planning Addresses The Challenge

Summary

• Extensive use of BRAC Lessons Learned

• DCMA already has a presence in the Fort Lee area

• DCMA has strategies in place to support the transition to Fort Lee

DCMA is looking forward to being part of the Fort Lee Community

Redefining DCMA Vision

We are DoD’s leading experts in Quality Assurance: Cost, Schedule, and Supply

Chain Predictability and Contract Administration: enabling our partners to

achieve contract objectives.

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