CDRL_A006_-_Quality_Control_Plan.pdf

DD FORM 1423-1, FEB 2001

CONTRACT DATA REQUIREMENTS LIST

(1 Data Item)

PREVIOUS EDITION MAY BE USED.

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1. DATA ITEM NO. 2. TITLE OF DATA ITEM 3. SUBTITLE

4. AUTHORITY (Data Acquisition Document No.) 5. CONTRACT REFERENCE 6. REQUIRING OFFICE

7. DD 250 REQ

8. APP CODE

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11. AS OF DATE

12. DATE OF FIRST SUBMISSION

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SUBMISSION

14. DISTRIBUTION

a. ADDRESSEE

b. COPIES

Draft Final

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15. TOTAL

16. REMARKS

17. PRICE GROUP

18. ESTIMATED

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G. PREPARED BY H. DATE I. APPROVED BY J. DATE

Page of Pages

DD Form 1423-1, FEB 2001 Page 2 of 2

CDRL A006, Quality Control Plan (QCP)

The Contractor’s quality control plan shall outline the tasks performed by the Contractor to sustain or improve quality or work and ensure work meets contract requirements.

The Contractor shall include in the plan:

A. Quality Control:

1) Details of surveillance methods to be used.

2) Assigned significance levels for each QC inspection.

3) Identification of the frequency of QC inspections and the process used to determine the most appropriate frequency.

4) Lot and sample size determinations.

5) Criteria for determining conforming vs. non-conforming results.

6) Documentation requirements.

7) How corrective action will be developed, implemented and monitored to correct non-conformances and mitigate future non-conforming outcomes for all QC checklist questions assigned a significance level of critical or major.

8) Preventive action plans to reduce future nonconformance.

9) Lines of communication with QC results will be provided to the

Government within 24 hours of completing a QC inspection.

10) QC Inspection Checklists that include the Internal Controls (Key and

Non-Key identified in Attachment 1, List of Internal Controls and other requirements identified in Attachment J.1, Performance Work Statement and Attachment J.2, Site-Specific Requirements (e.g., Equipment Maintenance, Safety, Security, Training, etc.). All Internal Controls annotated as Key shall be given a significance level of Critical and all Non-Key shall be given a significance level of Major:

NOTE: The Government QA Checklists include the Internal Controls and are annotated in the “Tags” column as Internal Controls (e.g., IC01 is Non-Key; IC02 is Key).

11) Methodology for monitoring and determining trends that may impact APL performance.

12) Roles and Responsibilities and Lines of Authority for the QC Program.

Attachments:

Attachment 1: List of Internal Controls Attachment 2, Monthly QC Report Format Attachment 3: Summary Test Results for Key Controls Attachment 4: Sample Corrective and Preventive Action Request (CPAR)

CDRL A006 Attachment 1, List of Internal Controls

PCM Title Control # Control Title Functional Area Manual/

Automated Type Financial Reporting Objective Risk of Materiel Misstatement/Risk Mitigated Control Activity

Contract Reference for Requirement

P_P2S_7 Distribution Processes

IC 1

Off‐Load and Tally Performed

Receiving Manual ICONO N/A

Freight arrives at incorrect depot and/or with piece count that does not match shipping documentation. Damaged shipments and/or freight with incorrect piece count are accepted without a TDR being filed.

The Distribution Worker performs the following verifications during off‐load and tally and Worker performs a visual inspection of the shipment. If there are discrepancies, such as damage to the materiel, the Distribution Worker will contact supervisory staff for resolution and to begin the Transportation Discrepancy Report (TDR) process if required.

– Check carrier manifest to ensure the Distribution Center or Disposition Location is the correct shipping destination for the materiel

– Verify piece count delivered with piece count on bill of lading

– Check carrier manifest to ensure that the type of materiel and piece count delivered agree with the freight bill

If there are discrepancies, the Distribution Worker will contact supervisory staff for resolution and to begin the Transportation Discrepancy Report (TDR) process.

DLA Distribution SOP 4000.01, Receiving ‐ Offload and Tally

P_P2S_7 Distribution Processes

IC 2

Accountable and Non‐ Accountable Materiel Sorted

Receiving Manual ICONO N/A Non‐accountable materiel is mistakenly receipted into stock or accountable materiel is mistakenly transshipped.

The Distribution Worker reviews shipping documents and label to determine if materiel should be inducted into DSS or staged for further conveyance.

– The Distribution Worker inspects the shipping label of tallied items to verify whether a secondary or “Mark For” address is included on the shipping label.

– Materiel with a secondary or “Mark For” address is not inducted into mission stock in DSS. This materiel is staged for further conveyance.

– Accountable materiel is addressed to the Distribution Center without a secondary or “Mark For” address. This materiel will be inducted in DSS.

DLA Distribution SOP 4000.01, Receiving ‐ Offload and Tally

P_P2S_7 Distribution Processes

KC 3

Kind, Count and Condition Verified

Receiving Manual ICOFR

Ensure entered inventory receiving transactions represent economic events that actually occurred and are properly classified (FIAR Guidance, April 2015, Wave 3, FRO 2 (FAM 395B:

1c, 2)). All inventory events that occurred in the current period are entered as transactions in the current period (FIAR Guidance, April 2015, Wave 3, FRO 9 (FAM 395B: 6)).

Risk of Material Misstatement: Inventory does not exist at a given date (FIAR Guidance, April 2015, Wave 3, ROMM 3 (FAM 395B: 4)). Inventory exists but is omitted from the APSR and/or summary schedules (FIAR Guidance, April 2015, Wave

3, ROMM 7 (FAM 395B: 8)).

The Distribution Worker performs a Kind, Count, and Condition (KCC) inspection on materiel by performing the following steps in accordance with DLA Distribution SOP 4000.08: Receiving – Kind, Count, and Condition (KCC):

– Reconciles the kind of materiel with receiving documents

– Verifies the condition code by visually inspecting the materiel for any damage or defects

– Counts the materiel and reconciles quantity and unit of issue with receiving documents

DLA Distribution SOP 4000.08, Receiving – Kind, Count and

Condition (KCC)

P_P2S_7 Distribution Processes

IC 4 NWRM Alert Generated Receiving Automated ICONO N/A NWRM that arrives at the Distribution Center is not identified and is receipted into storage.

DSS displays an NWRM alert on the RI05 screen when an NWRM NSN is entered.

– The alert displays on the RI05 screen:

**** NWRM CONTACT SUPERVISOR/LEAD AND DEPOT COMMAND****

The Distribution Worker verbally notifies chain of command that NWRM has been received and maintains custody of the materiel until the materiel is handed off to personnel with the appropriate clearance to immediately receipt and secure the materiel in the Classified area IAW NWRM SOP 5200.13.

DLA Distribution SOP 5200.13, Nuclear Weapons Related Material

(NWRM)

P_P2S_7 Distribution Processes

IC 5

Materiel Weight and Dimensions Verified

Receiving Manual ICONO N/A Weight and dimensional data for materiel to be stowed are inaccurate, causing inefficient utilization of available storage.

While materiel is in the packaging it will be stored in, the Distribution Worker measures its dimensions and weighs it, then enters weight and dimensions in DSS if required.

– If the dimensions or weight are larger than the size programed into DSS, the Distribution Worker updates the weight and dimensions in DSS. If they are smaller, no changes to the weight or dimensions are made.

DLA Distribution SOP 4000.02, Receiving ‐ Wholesale New

Procurement Receipt and DLA Distribution SOP 4000.03, Receiving

– Non Procurement Receipts

P_P2S_7 Distribution Processes

KC 6 Owner RIC Assigned Receiving Manual ICOFR

Ensure inventory is owned by the reporting entity. The reporting entity has rights to inventory at a given date (FIAR Guidance, April 2015, Wave 3, FRO 5 (FAM 395B:

12, 13)).

Inventory is owned by others because of sale, consignment, or other contractual arrangements (FIAR Guidance, April 2015, Wave 3, ROMM 13 (FAM 395B: 12)).

If a pre‐positioned materiel receipt (PMR) was transmitted to DSS for the materiel being received, then DSS will assign the owner RIC systemically from the PMR. If there is no PMR, the Distribution Worker will assign the RIC in accordance with the following conditions:

– Assign owner RIC from the receiving documents if listed

– If there is no owner RIC listed on receiving documents, assign owner RIC and submit a supply discrepancy report (SDR) in accordance with the following DLA Distribution SOPs:

– 4000.02: Receiving – Wholesale New Procurement Receipt

– 4000.03: Receiving – Non‐Procurement Receipts

DLA Distribution SOP 4000.02, Receiving ‐ Wholesale New

Procurement Receipt and DLA Distribution SOP 4000.03, Receiving

– Non Procurement Receipts

Manual/

Automated Type Financial Reporting Objective Risk of Materiel Misstatement/Risk Mitigated Control Activity

Contract Reference for Requirement

P_P2S_7 Distribution Processes

IC 7 Correct Materiel Stowed Warehousing Manual ICONO N/A Incorrect Materiel is stowed in a warehouse location

Prior to the physical stow of materiel, the Distribution Worker verifies materiel attributes with the putaway label:

– National Stock Number (NSN)

– Quantity After the above checks are complete, the Distribution Worker stows the materiel into the warehouse location listed on the putaway label. If there are discrepancies with the materiel or location, the Distribution Worker will contact supervisory staff for resolution. If the location is unsuitable, a different location will be assigned

DLA Distribution SOP 4145.02, Warehousing Stow

P_P2S_7 Distribution Processes

IC 8 Stow Location Validated Warehousing Manual ICONO N/A Materiel is stowed in an incorrect warehouse location

When the Distribution Worker enters a stow into DSS, the system verifies that the stow location is the same location assigned in the receiving process. Once the location is validated, DSS automatically updates the Quantity by Location (QBL). If the location is incorrect, DSS will alert the worker of the incorrect location. If DSS alerts to an incorrect location, the worker shall contact their supervisor for guidance.

DLA Distribution SOP 4145.02, Warehousing Stow

P_P2S_7 Distribution Processes

IC 9 Correct Materiel Picked Warehousing Manual ICONO N/A Incorrect Materiel is picked to fulfill an MRO

The Distribution Worker picks the materiel requisitioned on the MRO.

Before physically picking the materiel, the Distribution Worker verifies the following materiel attributes of materiel with the pick ticket and its associated Issue Release/Receipt Document, DD Form 1348‐1A.

– National Stock Number (NSN)

– Unit of Issue

– Visual Appearance of Materiel Condition

– Quantity After the above checks are completed, the Distribution Worker picks the materiel from the warehouse location listed on the pick ticket. If there are discrepancies with the materiel or location, the Distribution Worker will contact supervisory staff for resolution

DLA Distribution SOP 4145.001, Pick

P_P2S_7 Distribution Processes

IC 10 Pick Validated Warehousing Manual ICONO N/A Materiel is picked from an incorrect warehouse location

DSS is configured to perform an edit/validation check as part of the pick process to ensure the location of the materiel in the DSS Quantity‐by‐Location (QBL) record matches the location associated with the pick ticket. If the location is incorrect, DSS alerts the user and the pick will not be accepted by the system. If DSS alerts to an incorrect location, the user shall contact their supervisor for guidance. DSS also requires the user to confirm the quantity. User shall confirm quantity when requested.

DLA Distribution SOP 4145.001, Pick

P_P2S_7 Distribution Processes

IC 11 Pack Verified Warehousing Manual ICONO N/A Incorrect materiel is packed for shipment

The Distribution Worker packs the materiel requisitioned on the MRO.

During the pack process, the Distribution Worker verifies the following materiel attributes of materiel with the Issue Release/Receipt Document, DD Form 1348‐ 1A.

– National Stock Number (NSN)

– Unit of Issue

– Visual Appearance of Materiel Condition

– Quantity If there are discrepancies with the materiel, the Distribution Worker will contact supervisory staff for resolution.

DLA Distribution SOP 4145.11, Pack

P_P2S_7 Distribution Processes

IC 12 Foreign Military Sales Warehousing Manual ICONO N/A Incorrect materiel is packed for shipment to FMS customer

Dual‐verification of FMS pack is performed to ensure 100% accuracy of all FMS shipments. The process is as follows:

– The Distribution Worker performs FMS pack in accordance with DLA Distribution SOP 4145.103 Foreign Military Sales (FMS) Packing.

– The Packer will print initials, User ID and date on two copies of the Issue Release/Receipt Document, DD Form 1348‐1A to certify that materiel packed is correct.

– A different Distribution Worker from the Approved Verifier List performs the FMS materiel verification process in accordance with DLA Distribution SOP

4145.103 Foreign Military Sales (FMS) Packing.

– The Verifier will print initials, User ID and date on two copies of the Issue Release/Receipt Document, DD Form 1348‐1A to verify that materiel packed is correct. An additional copy of the DD‐1348 will be made and retained.

If there are discrepancies with the materiel, the Distribution Workers will contact supervisory staff for resolution.

DLA Distribution SOP 4145.103, Foreign Military Sales (FMS)

Processing

P_P2S_7 Distribution Processes

IC 13

Vehicle Load Order Verified

Warehousing Manual ICONO N/A Incorrect materiel or piece count is loaded onto conveyance The Distribution Worker verifies materiel with the vehicle load order (VLO) prior to loading onto conveyance. If there are discrepancies with the materiel, the Distribution Worker will contact supervisory staff for resolution.

Manual/

Automated Type Financial Reporting Objective Risk of Materiel Misstatement/Risk Mitigated Control Activity

Contract Reference for Requirement

P_P2S_7 Distribution Processes

KC 15

Floor‐to‐Book Counts Performed

Warehousing Manual

ICONO/

ICOFR

Ensure all existing assets, as of the reporting date, including property in the custody of third parties, are included in the general ledger (FAM 395B: 8).

Assets of the reporting entity exist but are omitted from the APSR and/or summary schedules (financial statement equivalent) (FAM 395B: 8).

The counter assigned to perform F2B counts will receive the Daily F2B Log Sheet from their supervisor and perform the following verifications at each storage location:

• Location

• NSN

• Quantity

• Visual Appearance of Materiel Condition

• Unit of Issue The verifications performed at each location are matched against DSS records.

Any storage locations that have quantity discrepancies are forwarded to the Distribution Center Inventory Office for a TPIC M inventory to be scheduled in

DSS.

DLA Distribution SOP 4140.27, Completeness Program

P_P2S_6_Physi cal Inventory Process

KC 2 CAV Reviewed Inventory Manual ICOFR

Ensure recorded inventory transactions represent economic events that actually occurred and are properly classified (FIAR Guidance, April 2015, Wave 3, FRO 2 (FAM 395B: 1c, 2)). Ensure all existing inventory, as of the reporting date, including property in the custody of third parties, are included in the general ledger (FIAR Guidance, April 2015, Wave

3, FRO 6 (FAM 395B: 8)).

Recorded inventory do not exist at a given date (FIAR Guidance, April 2015, Wave 3, ROMM 3 (FAM 395B: 4)).

Inventory of the reporting entity exist but are omitted from the APSR and/or summary schedules (financial statement equivalent) (FIAR Guidance, April 2015, Wave 3, ROMM 7

(FAM 395B: 8)).

All inventory adjustments that did not meet the threshold levels for causative research on the P‐118 Table and did not require an Inventory Adjustment Voucher (IAV) are listed in the Consolidated Adjustment Voucher (CAV) report.

On a monthly basis the Reviewing Authority reviews the CAV report for any items that may warrant additional research such as offsetting gains and losses, suspicious items, and/or recurring trends. The Reviewing Authority either approves the voucher listing the adjustments within DSS or reclassifies selected entries as IAVs which will result in Causative Research. The Reviewing Authority will then sign and date the CAV.

DLA Distribution SOP 4140.59, Voucher Management

P_P2S_6_Physi cal Inventory Process

KC 3

Causative Research Performed

Inventory Manual ICOFR

Ensure all existing inventory, as of the reporting date, including property in the custody of third parties, are included in the general ledger (FIAR Guidance, April 2015, Wave 3, FRO 6 (FAM 395B: 8)). Ensure recorded inventory transactions represent economic events that actually occurred and are properly classified (FIAR Guidance, April 2015, Wave 3, FRO 2 (FAM 395B:

1c, 2)).

Inventory of the reporting entity exists but is omitted from the APSR and/or summary schedules (financial statement equivalent) (FIAR Guidance, April 2015, Wave 3, ROMM 7 (FAM 395B: 8)). Recorded inventory transactions do not represent economic events that actually occurred. (FIAR Guidance, April 2015, Wave 3, ROMM 1 (FAM 395B: 1)).

Inventory adjustments subject to further research and verification in accordance with MILSTRAP Chapter 7 regulations may not be properly validated which may result in a misstatement of the Inventory and Related Property on the financial statements.

On a recurring basis, the Inventory Office (IO) performs causative research on inventory adjustments identified for further review in accordance with MILSTRAP Chapter 7 using the Inventory Adjustment Voucher (IAV) generated automatically within DSS. Upon completion of the research, the IO prepares and submits a package for review and approval to a designated authority based on the extended dollar value of the adjustment. The research is a complete review of all transactions (to include supporting source documentation, catalog change actions, and shipment discrepancy files) to be completed within 45 days from the date of the original adjustment. The package is reviewed, signed, and dated by the designated approval authority based on the adjustment amount.

DLA Distribution SOP 4140.52, Causative Research

P_P2S_6_Physi cal Inventory Process

KC 4

Open Causative Research List Reviewed

Inventory Manual ICOFR

Ensure all existing inventory, as of the reporting date, including property in the custody of third parties, are included in the general ledger (FIAR Guidance, April 2015, Wave 3, FRO 6 (FAM 395B: 8)).

Inventory of the reporting entity exist but are omitted from the APSR and/or summary schedules (financial statement equivalent) (FIAR Guidance, April 2015, Wave 3, ROMM 7 (FAM 395B: 8)). Invalid inventory adjustments may not be reviewed and properly reversed, which may result in a misstatement of the Inventory and Related Property balance on the financial statements.

The Reviewing Authority is required to determine all adjustments have been reviewed for completeness and timeliness by reviewing, approving, and signing on a monthly basis that all Causative Research packages are completed within 45 days.

DLA Distribution SOP 4140.52, Causative Research

Contractor Letterhead

DATE

MEMORANDUM FOR CONTRACT SPECIALIST

FROM:

SUBJECT: CDRL A006 QC Report (Month Year)

1. IAW CDRL A006, Quality Control Plan, the following data elements are provided for

Month Year.

a. Scheduled vs Completed QC Inspections:

o Scheduled QC Inspections:

o Completed Inspections:

o Explanation for QC Inspections Not Completed:

b. Conforming vs Non-Conforming QC Inspections:

o Number of Conforming QC Inspections:

o Number Non-Conforming QC Inspections:

c. Corrective and Preventive Action Request (CPAR) o List CPARs attached (Functional Area/Significance) and attach as to cover letter

2. Contact information.

Signature cc: COR

Attachments:

Summary Test Results for Key Controls CPARs

Attachment 2

Summary Test Results - Distribution Sites

(Results for DLA Distribution:

PCM

Control Number

Number of Samples Tested

Passed

Failed

Deficiency Summary

Warehousing 9 Key

Warehousing 12

Receiving 6

Physical Inventory

Physical Inventory

Attachment 3

Defense Distribution Center…………………….

Corrective and Preventive Action Request (CPAR) Form

Corrective Action Preventive Action

Surveillance Report No.

Quality Control Evaluator Surveillance Date Significance

Requested as a result of Scheduled QC Check Management Request External Audit Finding Prior Nonconformance Internal Audit Finding Customer Advisor

Problem Description:

Identified Root Cause:

Corrective/ Preventive Actions:

Supervisor Signature Implementation Date:

QC Follow up Date:

All Corrective/Preventive Actions IMPLEMETED: Yes No If NO, please explain below:

All Corrective/Preventive Actions EFFECTIVE: Yes No If NO, please explain below:

QC Signature: Date:

Submit a final site specific QCP not later than 45 calendar days prior to the end of transition that details the Contractor's process for a quality system that is a pre-vention based outlook and an approach to customer satisfaction that is proactive to meeting the objectives through all areas of performance IAW C-5.1.4. The Contractor's QCP shall be maintained throughout the life of the contract and shall include the Contractor's procedures to routinely evaluate the effectiveness of the plan to ensure the Contractor is meeting the performance standards and require-ments of the contract. Subsequent submission shall be submitted with the Contractor updates or revised the QCP within 30 calendar days of the change.

See page two for QCP requirements.

Submit Monthly NLT 5 working dates after the end of the month a QC Report detailing:

1. Scheduled vs Completed QC Inspections and explanations for QC Inspections not completed that were scheduled

2. Conforming vs Non-conforming QC Inspection Results

3. Summary Test Results for Key Controls

4. A copy of all QC Corrective Action Plans and status of implementation and maintenance to mitigate future occurrences of same non-conformance

Items #1 and #2 above shall be submitted on Contractor letterhead (see Attachment 2). Item #3 shall be submitted using the format at Attachment 3. Item #4 shall be submitted using the attached Corrective and Preventive Action Request (CPAR) Form (see Attachment 4).

Additionally, copies of all completed non-conforming QC inspection reports shall be submitted within 24 hours to the addressees in Block 14.

Block 7 - Inspection and acceptance requirements:

The KO will review and accept the QCP and updated after coordination with the COR, J-3 Depot Operations and J-4 Policy & Procedures. The accepted plan and subsequent revisions will be incorporated into the contact by modification. The COR will review and accept the monthly QC Report.

Block 14 - Distribution - Contractor will submit original to Contract Specialist and copy to COR.