MOCAS Update. Cassandra McDuff Director, Accounts Payable MOCAS Defense Industry Leaders Conference April 2018

Transcription

1 MOCAS Update Cassandra McDuff Director, Accounts Payable MOCAS Defense Industry Leaders Conference April 2018

2 Agenda Magnitude of Operations Performance Indicators Initiatives New PGI Special Payment Instructions 4/10/2018 Integrity - Service - Innovation 2

3 MOCAS Fundamentals MECHANIZATION OF What is MOCAS? Integrated system supporting post-award administration and contract payment Who uses MOCAS? CONTRACT DCMA DFAS Procurement Offices ADMINISTRATION SERVICES DCAA DTRA WHS Why MOCAS? Pays More Complex Contracts Mixed-Type Multi-Service Multi-Year Multi-Deliverables Foreign Military Sales Foreign Currencies Integrity - Innovation - Service Makes Financing Payments Progress Payments Performance-Based Payments Commercial Item Financing Interim Cost Payments 4/4/2018 2

4 MOCAS Magnitude of Operations FY 2017 Total Contracts by Service Army Other 367,352 Active Contracts 11% 3% 19,339 Active Contractors 642,477 Invoices Processed $2.2 Trillion Obligations Air Force 15% DLA $158 Billion Disbursed 35% Navy 36% Obligation Dollars by Service Army 30% Other 5% Navy 31% DLA 1% 4/4/2018 Integrity - Innovation - Service 4 Air Force 33%

5 MOCAS Magnitude of Operations FYTD 2018 Total Contracts by Service Army Other 374,909 Active Contracts 11% 3% 19,250 Active Contractors 347,414 Invoices Processed $2.23 Trillion Obligations Air Force 15% DLA $81.5 Billion Disbursed 35% Navy 36% Obligation Dollars by Service Other 5% Navy Army 31% 30% DLA 1% 4/4//2018 Integrity - Innovation - Service 5 Air Force 33%

6 Average Days to Process - FYTD 30 ENTITLEMENT AVG DAYS TO PAY 6.00 AVG DAYS TO PREVAL BUREAU VOUCHER COM ITEM FINANCING BUREAU VOUCHER COM ITEM FINANCING COMMERCIAL INVOICE COMMERCIAL INVOICE PERFORMANCE BASED PERFORMANCE BASED PROGRESS PAYMENT SERVICE INVOICE PROGRESS PAYMENT SERVICE INVOICE Contract Input FYTD Type of Input Total Documents Avg Days to Process Contract 25, Modification 43, Total 69, /10/2018 Integrity - Service - Innovation 6

7 MOCAS Voids Overall Downward Trend FY18 Monthly Average 73 FMS Void Reduction Improved DFAS INDY/DSCA coordination Monthly Void Count Top 3 - Void Count October November December January February March October '17 November December January '18 February '18 March '18 '17 '17 FMS Credit Check Over/under pmt 4/10/2018 Integrity - Service - Innovation 7

8 Initiatives Customer Outreach DCMA/Service Customer Roadshows Upcoming ERP Deployments Audit Steadiness Support Fiscal Yearend Planning Promote Interim Final Vouchers Canceling Fund Invoice Submission Deadline Wednesday, August 1 st Last Payment Day Friday, September 28 th Implement New DFAR Special Payment Instructions 4/10/2018 Integrity - Service - Innovation 8

9 PGI Change Summary A DFAS Perspective PGI Payment Instructions Instructions informing the payment office how to allocate and record the amounts paid to each accounting classification cited in the contract Assigned by Contracting Officer Applied at Contract or CLIN level Specific Numbered Instruction in Section G of Contract 12 PGI Payment Instructions. 6 Line Item Specific 5 Contract-Wide 1 Other Old PGI Derived based on PGI Matrix Dependent on Payment Request Type Matrix or Link in Section G of Contract 6 PGI Payment Instructions Line Item Proration Line Item by Fiscal Year Contract-Wide Proration FMS Allocation (PPRB). Specified in Approved Payment Request Other New PGI 4/10/2018 Integrity - Service - Innovation 9

10 Area of Focus - MOCAS MOCAS Contract Population Non-PGI Contracts, 277K, 74% Contracts with PGI, 99K, 26% Total Active Contracts = 376K 99K Meet Criteria for Payment Instruction 1K Processing against PGI 12 Other MOCAS Obligation Values Total Active Contract Value = $2.2T $716B Meet Criteria for Payment Instruction $40B Processing against PGI 12 Other Old PGI Contracts with PGI, $716B, 32% Non-PGI Contracts, $1.5T, 68% New PGI * Data as of March 23, /10/2018 Integrity - Service - Innovation 10

11 Payment Instructions DFAS Systemic Solution Point Forward Approach Existing Contracts Utilize previous PGI codes. New Contracts program MOCAS logic to systemically apply new PGI matrix. Automated Implementation of New PGI Guidance Additional requirements to build CLIN details at interface Prevents Significant Manual Intervention by Contract Input and Recon Promotes API Minimizes Increase to Customer Costs. Concurrent PGI logic Training/Confusion in Application (manual) Potential for Delay in Payment (manual). Integrity - Service - Innovation 4/10/

12 Payment Instructions DFAS Interim Solution Point Forward Approach Existing Contracts Utilize previous PGI codes and system logic New Contracts (12/1/17 Forward) crosswalk to new PGI matrix and CDR as necessary Meets Intent of New PGI Guidance Utilizes Existing Programming Prevents Significant Manual Intervention by Contract Input and Recon Promotes API Minimizes Increase to Customer Costs Concurrent PGI Logic Manual Front End Support by KT Input (Assign PGI) Manual Processing of PBPs and CFIs Training/Confusion in Application Potential for Delay in Payment (manual). 4/10/2018 Integrity - Service - Innovation 12

13 Common Scenarios Encountered 1) Contract issued after 12/1/17 that requires a payment instruction but one is not cited A. DFAS will issue CDR requiring reference to the new payment instruction matrix 2) Contract issued pre-12/1/17 with a CDR on it for not citing a payment instruction A. Contract will be required to reference the new payment instruction matrix and invoices will be paid according to the prescribed allocation methodology for that invoice type. 3) Contract issued pre-12/1/17 that originally didn't require a payment instruction (i.e. was single funded and no financing) but was modified in such a way that a payment instruction is now required A. Contract will be required to reference the new payment instruction matrix and invoices will be paid according to the prescribed allocation methodology for that invoice type. 4) Contract issued pre 12/1/17 that originally cited a previous payment instruction (1-11). Contracting Officer requests to modify the contract to change the payment instruction to a different clause under the old logic. A. These will be handled on a cases by case basis. While the new instructions should be used, Old PGI DFAS will work with the ACO/PCO to determine best way forward. New PGI 4/10/2018 Integrity - Service - Innovation 13

14 PGI 12 (Other) DFARS PGI (d)(12): Other. If none of the payment instructions identified in paragraph b2 of this section are appropriate, the contracting officer may insert other payment instructions, provided the other payment instructions i. provide a significantly better reflection of how funds will be expended in support of contract ii. performance: and are agreed to by the payment office and the contract administration office. A copy of the agreement will be kept in the contract file. Way Forward: Pursuing use of a Memorandum for Record (MFR) Provides justification for why Other is necessary Agreed upon by PCO, ACO, OSD Comptroller and DFAS Kept with the contract file for audit purposes Note use of this payment instruction will require additional manual effort on the part of DFAS. Signature on the MFR indicates customer acceptance of increased cost. 4/10/2018 Integrity - Service - Innovation 14