Dean.baker

Mission Assurance Audits Evolution –Ensuring NRO Mission Success

Mr. Dean Baker

NRO/SED/MSE

Chief, Mission Assurance Audits

February 2012

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NRO Enterprise Mission Assurance Audits

NRO Objective

U.S. Government Oversight Authorities

3-phased approach to establish an NRO MA audits capability• Research• Collaboration• Implementation

Current and planned implementation activities

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Objective

Develop an NRO enterprise-wide mission assurance supplier assessment and surveillance management capability for the NRO program offices to promote improvement in supply chain knowledge and management for reducing escapements, failures and anomalies.

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(U) White House MemorandumPresident Obama

Contractor oversight is imperative

Moreover, it is essential that the Federal Government have the capacity to carry out robust and thorough management and oversight of its contracts in order to achieve programmatic goals…

Improved contract oversight could reduce such sums significantly.

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(U) Blue Ribbon Commission President Reagan

Recommended minimizing duplication of effort and data sharing associated with audits

A. Department of Defense Auditing and Oversight

Oversight of defense contractors must be better coordinated among DoD agencies and Congress. Guidelines must be developed to remove undesirable duplication of official effort and, when appropriate, to encourage sharing of contractor data by audit agencies. The new Under Secretary of Defense (Acquisition) should establish appropriate overall contract audit policy.

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(U) Code of Federal RegulationsCommerce and Foreign Trade

Federal Law mandates coordination, participation and conduct of joint audits

Federal agencies should:a. Coordinate its conformity assessment activities with

those of other appropriate Government agencies and with those of the private sector to reduce unnecessary duplication (Sec 287.1(a))

b. Participate in efforts designed to improve coordination among governmental and private sector assessment activities (Sec 287.4(g))

c. Conduct joint supplier audits and share conformity assessment information among agencies (Sec 287.4(h))

d. Use the results of private sector or other governmental conformity assessment activities to schedule audits more effectively (allowing agencies to reduce the number and extent of audits conducted at companies which are performing in accordance with contract specifications and which are under review by a third party or another agency and to concentrate agency audit efforts on companies which have shown problems in conforming to contract specifications (Sec 287.4(e))

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(U) Federal Acquisition Regulation

Government authorized to conduct inspections

Agencies shall ensure that-

(a) Contracts include inspection and other quality requirements, including warranty clauses when appropriate, that are determined necessary to protect the Government's interest;

(d) No contract precludes the Government from performing inspection;

.

.

.

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(U) Interagency Cooperation for Mission Assurance MOU

3. Scope. This MOU and attached Mission Assurance Strategic Intent provide to SMC, NRO, MDA, and NASA the context and framework for collaboration efforts to work across a common industrial base to achieve mission success.

4. Roles and Responsibilities. Each organization will apply best effort to:

a. Develop and share best practices.

b. Share lessons learned.c. Consider health of the industrial base

in space systems acquisitions.

d. Participate in mission assurance fora

SignatoriesNRO: Director Carlson signed 09/20/10SMC: Lt Gen Sheridan signed 09/01/10MDA: LTG O’Reilly signed 12/01/10NASA: Mr. Bolden signed 02/02/11

NRO Audit Capability founded on this MOU

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(U) Mission Assurance Strategic IntentMOU Attachment

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(U) Mission Assurance Instruction (CBPI 130-9)

MA Audits mandated in NRO CBPI 130-9

MA audits are conducted after the program is on contract. MSE/MA provides auditors in coordination and in support of POs. They can be used by POs to ensure compliance and assess the effectiveness of a contractor’s overall internal policies, procedures, processes, organization, and personnel to assure that the product/service meets contractual requirements.

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(U) MDA Quality, Safety and MA Audit Program SOP

NRO Audit participation referenced in MDA’s SOP

6.10 Other Designated Government Activities and Support Contractors Designated representatives from other government activities (i.e., National Aeronautics and Space Administration (NASA), National Reconnaissance Office (NRO), AMRDEC, etc) and MDA/QS support contractors are responsible for:

• Providing audit personnel to perform MDA/QS audits, including CAAs, upon request

• Responding to other requests in support of the MDA/QS audit program

“Research”

Research Space Community Audits –

Resources, Procedures, Best Practices, and Lessons Learned

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NRO MA Audit Perspective

Current NRO Mission Assurance Audit capability• Primarily reliant upon prime contractors to conduct audits• Program-specific ad hoc audits conducted/observed by program office• Limited interaction with rest of audit community

• Schedule sharing• Periodic observation of DLA audits

• Inefficient and limited data sharing throughout enterprise

Minimal enterprise-wide MA Audit capability

“Collaborate”

Space Community Best Practices and Lessons Learned –

Joint Audit Collaboration Initiative

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Collaboration Across the Community

Space Community

PM Challenge Supply Chain

Mgmt Forum

JAPC QLF

ORG

ORG

ORG

3rd Party

COMM SIGINT

IMIN

TGED

NRO

AS&T

SED

MSE OCE

JMAC SQIC

MA SummitSIBC

Out

reac

h

Integrated Audit

Schedule & Data

Joint

Audits

Training

Data Analysis

NRO AuditEleme

nts

ORG

ORG

ORG

Defense Auditing

“Implementation”

Resources, Procedures, Tools,

Templates, Checklists, Standards

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NRO Audit Elements

• Maintain NRO Integrated Audit Schedule• Outreach to Space Community schedule

forums (e.g. NEPAG and JAPC)• Maintain NRO Joint Audit Schedule

• NRO audit awareness training• Audit certification training• Risk awareness training• Audit video(s)• Space Community training

events and scheduling

• Document, maintain & coordinate NRO Supply Chain Map

• Outreach to Industrial Base forums

• Participate in joint audits• Plan & execute NRO-led joint audits• Plan & execute NRO audits• Corrective action follow up• Review NRO Audits process annually

• Coordinate partner Audit Letters of Intent

• Maintain Audits “Rolodex”• Outreach to enterprise

• Maintain NRO audit official records • Conduct audit Results Review and Analysis (RRA)• Communicate audits RRA • Monitor “key” risk follow up

Out

reac

h

Integrated Audit Schedule & Data

Joint

Audits

Training Sup

ply

Cha

in M

ap

Data Analysis

NROAudit

Elements

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NRO MA Audit Tools

Existing and proven tools selected to promote Space Community

collaboration and data sharing

Virtual Supplier Assessment & Analysis Modules

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(U) VSAAM Capabilities

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ORG

Integrated Audit Schedule Process

Past

• Contractor List • Contractor List.

•Obtain audit report(s)

•Analyze and discernkey risks•Communicate risks•Follow up

Future

•Participate in joint audit•Attend last day of audit•Observe audit•Obtain report(s)•Conduct NRO audit

Provide situational and risk awareness to NRO Program Offices

Filter

OptionsPost-Audit Actions

ORG OR

G

ORG

ORG

ORG

3rd Party

Community Audit Schedules

Audits of NRO Enterprise Interest

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Closing

NRO enterprise mission assurance audits capability maturing:• Leverage audit best practices and lessons learned• Participate in Space Community collaboration forums• Establish new audit finding sharing partners• Improve audit procedures, processes, and tools• Educate audit personnel to improve expertise and experience

Industrial Base Audits Evolution• Space Community Common Understanding• NRO Mission Success Imperative• Cost Savings Initiative• Collaborative Journey

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Space Community Commitment toMission Assurance Cooperation

24UNCLASSIFIED