NAVAL POSTGRADUATE SCHOOL

1 NAVAL POSTGRADUATESCHOOLMONTEREY, CALIFORNIAJOINT APPLIED PROJECTA nalysis of the Head of the Contracting Activity (HCA)Oversight Responsibilities within the NAVAL Supply Systems Command(NAVSUP)By:William G. Sproule, Hazel Sumpter, and Kathryn GonzalesDecember 2005 Advisors:Stephen Shapro,E. Cory YoderApproved for public release; distribution is PAGE INTENTIONALLY LEFT BLANK iREPORT DOCUMENTATION PAGEForm Approved OMB No. 0704-0188 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instruction, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of Management and Budget, Paperwork Reduction Project (0704-0188) Washington DC AGENCY USE ONLY (Leave blank)2.

2 REPORT DATED ecember 20053. REPORT TYPE AND DATES COVEREDJ oint Applied Project4. TITLE AND SUBTITLE: Analysis of the Head of the Contracting Activity (HCA) Oversight Responsibilities within the NAVAL Supply System Command (NAVSUP)6. AUTHOR(S) William G. Sproule, Hazel Sumpter, and Kathryn Gonzales5. FUNDING NUMBERS7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) NAVAL POSTGRADUATE SchoolMonterey, CA 93943-50008. PERFORMING ORGANIZATION REPORT NUMBER9. SPONSORING / MONITORING AGENCY NAME(S) AND ADDRESS(ES)N/A10. SPONSORING / MONITORING AGENCY REPORT NUMBER11. SUPPLEMENTARY NOTES The views expressed in this report are those of the author(s) and do not reflect the official policy or position of the Department of Defense or the DISTRIBUTION / AVAILABILITY STATEMENTA pproved for public release; distribution is unlimited/12b.

3 DISTRIBUTION (maximum 200 words)The purpose of this paper is to evaluate the Head of the Contracting (HCA) oversight responsibilities within the NAVAL Supply Systems Command (NAVSUP). Statutes as implemented by the Federal Acquisition Regulation (FAR) (and lower level regulations) mandate the oversight responsibilities of the HCA. This responsibility is further delegated in NAVSUP instructions and policy and other higher-level policy. The objective of this paper is to establish a single source that identifies the regulations, instructions, policies, etc. that promulgate the HCA oversight responsibility within NAVSUP. The end result of the paper is to analyze the challenges associated with implementing the HCA oversight function, whether this oversight is being performed in the required manner, and whether it is delegated to the appropriate level.

4 15. NUMBER OF PAGES13514. SUBJECT TERMSHCA Oversight responsibilities16. PRICE CODE17. SECURITY CLASSIFICATION OF REPORTU nclassified18. SECURITY CLASSIFICATION OF THIS PAGEU nclassified19. SECURITY CLASSIFICATION OF ABSTRACTU nclassified20. LIMITATION OF ABSTRACTULiiTHIS PAGE INTENTIONALLY LEFT BLANK iiiApproved for public release; distribution is OF THE HEAD OF THE CONTRACTING ACTIVITY (HCA) OVERSIGHT RESPONSIBILTIES WITHIN THE NAVAL SUPPLY SYSTEMS COMMAND (NAVSUP)William G. Sproule, Civilian, Department of the NavyHazel Sumpter, Civilian, Department of the NavyKathryn Gonzales, Civilian, Department of the in partial fulfillment of the requirements for the degree ofMASTER OF SCIENCE IN CONTRACT MANAGEMENT from theNAVAL POSTGRADUATE SCHOOLD ecember 2005 Authors:_____William G.

5 Sproule_____Hazel Sumpter_____Kathryn GonzalesApproved by:_____Commander (Retired) E. Cory Yoder, Lead Advisor_____Captain (Sel) Stephen Shapro, Support Advisor_____Robert N. Beck, DeanGraduate SCHOOL of Business and Public PolicyivTHIS PAGE INTENTIONALLY LEFT BLANKvANALYSIS OF THE HEAD OF THE CONTRACTING ACTIVITY (HCA) OVERSIGHT RESPONSIBILITIES WITHIN THE NAVAL SUPPLY SYSTEMS COMMAND (NAVSUP)ABSTRACTThe purpose of this paper is to evaluate the Head of Contracting Activity (HCA) oversight responsibilities within the NAVAL Supply Systems Command (NAVSUP). Statutes as implemented by the Federal Acquisition Regulations (FAR) (and lower level regulations) mandate the oversight responsibilities of the HCA. This responsibility is further delegated in NAVSUP instructions and policy and other higher-level policy.

6 The objective of this paper is to establish a single source that identifies the regulations, instructions, policies, etc. that promulgate the HCA oversight responsibility within NAVSUP. The end result of the paper is to analyze the challenges associated with implementing the HCA oversight function, whether this oversight is being performed in the required manner, and whether it is delegated to the appropriate PAGE INTENTIONALLY LEFT BLANK viiTABLE OF CONTENTSEXECUTIVE OF OF OVERSIGHT MANDATED BY 10 OVERSIGHT REQUIREMENTS IN FAR, DFARS, Acquisition Regulation (FAR).. Federal Acquisition Regulations Supplement (DFARS).. Marine Corps Acquisition Regulations Supplement (NMCARS).. STRUCTURE OF THE NAVY FIELD CONTRACTING SYSTEM (NFCS).

7 IMPLEMENTATION OF THE HCA OVERSIGHT REQUIREMENT WITHIN OF THE HCA OVERSIGHT RESPONSIBILITY WITHIN 00 LETTERS DATED 07 JULY 03 DELEGATING HCA OF AUTHORITY TO THE NFCS IN ACCORDANCE WITH NAVSUPINST NAVY FIELD CONTRACTING SYSTEM AUTHORITY AND RESPONSIBILITY .. Support Activities with Unlimited with Limited Contracting Based Responsible for Certain Commodity Group or Specific Mission for Requesting Contracting of Unauthorized OVERSIGHT MANDATED IN ACCORDANCE WITH NAVSUPINST CONTRACTING AND BUSINESS PROCEDURES AND APPROVALS .. and Approvals (J&A).. Plans (AP).. SCHEDULED OVERSIGHT IN ACCORDANCE WITH NAVSUPINST PROCUREMENT PERFORMANCE MANAGEMENT ASSESSMENT PROGRAM (PPMAP) OF THE NAVY FIELD CONTRACTING SYSTEM.

8 Team Compositions, Selection and On-Site Review (Including Activity Evaluation).. Following a PPMAP On-Site OF SELF-ASSESSMENT 02 CUSTOMER SATISFACTION SURVEY OF THE HCA OVERSIGHT OF THE HCA OVERSIGHT RESPONSIBILITY WITHIN 00 LETTERS DATED 07 JULY 2003 DELEGATING HCA OF THE DELEGATION OF AUTHORITY TO THE NAVY FIELD CONTRACTING SYSTEM (NFCS) IN ACCORDANCE WITH NAVSUPINST NFCS AUTHORITY AND RESPONSIBILITY .. Authority and for Requesting Contracting of Unauthorized OF THE CONTINUOUS OVERSIGHT MANDATED IN ACCORDANCE WITH NAVSUPINST CONTRACTING BUSINESS PROCEDURES AND APPROVALS .. and Approvals (J&A).. Plans (AP).. OF THE REGULARLY SCHEDULED OVERSIGHT IN ACCORDANCE WITH NAVSUPINST PPMAP OF THE NFCS.

9 Of the PPMAP Program and Structure of the Team Composition, Selection and On-Site Review (Including Activity Evaluation) and Actions Following a PPMAP On-Site OF SELF-ASSESSMENT OF THE NAVSUP 02 CUSTOMER SATISFACTION SURVEY AND OF THE HCA OVERSIGHT RESPONSIBILITY WITHIN 00 LETTERS DATED 07 JULY 2003 DELEGATING HCA OF AUTHORITY TO THE NFCS IN ACCORDANCE WITH NAVSUPINST NFCSAUTHORITY AND RESPONSIBILITY .. FOR THE CONTINUOUS OVERSIGHT MANDATED IN ACCORDANCE WITH NAVSUPINST CONTRACTING BUSINESS PROCEDURES AND APPROVALS and Approvals (J&A).. Plans (AP).. SCHEDULED OVERSIGHT IN ACCORDANCE WITH NAVSUPINST PPMAP OF THE NAVY FIELD CONTRACTING SYSTEM .. of the PPMAP OF SELF-ASSESSMENT 02 CUSTOMER SATISFACTION SURVEY Satisfaction Survey Process Recommendations 1 - OF DISTRIBUTION PAGE INTENTIONALLY LEFT BLANKxiLIST OF FIGURESF igure HCA 02 Organizational Structure - Pre-14 November 02 Organizational Structure - Post-14 November 02 PPMAP NAVSUP TIC System Log In PAGE INTENTIONALLY LEFT BLANK xiiiLIST OF TABLEST able Delegated Authority Within NAVSUP Areas of HCA (Activities with SAP Authority).

10 27 Table Above SAP of Authority Under PC Review Responsible for Conducting of Self-Assessment HCA Oversight Team for Increase Contracting System, CRB Log, and CRB Files Actions exceeding $ Run - Actions Exceeding $ Enterprise PMRS Reviews Conducted by NAVSUP Oversight Breakdown for NAVSUP 02 Effectiveness/Level of Importance to the 03 Rating of NAVSUP 02 03 Ratings of Importance to PAGE INTENTIONALLY LEFT BLANKxvACKNOWLEDGMENTSThe authors would like to thank several individuals and the NAVSUP Contracting Management Directorate staff for their assistance in completing this project, specifically, Ms. Jody Johnston, Mr. Mike Evanko, Mr. Todd Hoover, Mr.