New Policy to Reduce DCMA Source Inspections on Contracts Less than $250,000
Citing reductions in quality assurance staff, Principle Deputy Under Secretary of Defense Michael Wynn announced a new policy to reduce source/origin inspections by the Defense Contract Management Agency’s Quality Assurance (QA) staff on defense contracts valued at less than $250,000. Under the “new business plan” the contracts will not require a source/origin inspection unless it is approved by an official one level above the contracting officer who must verify that three conditions exist: (1) there are significant technical requirements (e.g. drawing, test procedures) (2) critical product features/characteristics or special acquisition concerns have been identified and (3) the contract is awarded to a manufacturer/producer or to a dealer/distributor and specific government verifications have been identified as necessary and feasible to perform. For contracts failing one or more of these conditions product quality assurance will be limited to destination inspection and/or user determinations of item fitness for use. DCMA will continue to support some inspections requirements in FY 2002 and earlier contractors but DCMA must begin significant QA changes beginning with FY 2003 contracts. DCMA may also apply the reduced QA effort on higher dollar value contracts (April 14 announcement).
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