​NAVY RESPONSIBILITIES FOR THE IMPLEMENTATION OF DODI 5000.72

UNCLASSIFIED
ROUTINE
R 292121Z AUG 17
FM CNO WASHINGTON DC
TO NAVADMIN
INFO CNO WASHINGTON DC
BT
UNCLAS

NAVADMIN 211/17

MSGID/NAVADMIN/CNO WASHINGTON DC/DNS/AUG//

SUBJ/NAVY RESPONSIBILITIES FOR THE IMPLEMENTATION OF DODI 5000.72//



REF/A/DOC/DODI 5000.72//
NARR/REF A IS DODI 5000.72, STANDARDS FOR CONTRACTING OFFICER REPRESENTATIVES 
(COR) CERTIFICATION.//

RMKS/1.  The FY 2015 Schedule of Budgetary Activity Audit found that controls 
over contractor and vendor Pay (CVP) delivered orders for interim cost 
vouchers and direct submit vouchers were not properly designed and the United 
States Navy (USN) may be paying for goods and services that the USN did not 
receive.

2.  This message directs the Navy Wide Implementation of reference (a) for 
the Monitoring and Reporting of Financial Transactions Related to Interim 
Payments for Cost Plus, Time and Materials, and Labor Hour Contracts.  This 
message also requires commands to fulfill the responsibilities as set forth 
in reference (a) and develop an action plan within 60 days that will bring 
the commands in compliance with this guidance.

3.  In accordance with reference (a), CORs that are designated specific 
authority by the Contracting Officer are to conduct contract surveillance and 
report on contractors? performance to verify that the contractor is 
fulfilling contract requirements by: (1) Reviewing interim invoices (e.g., 
cost reimbursement contracts) to make sure charges are commensurate with 
observed performance, and coordinating issues of cost with Defense Contract 
Audit Agency through the Contracting Officer and, (2) Reviewing labor hours 
charged to ensure they are commensurate with level of work performed.  As 
such, Commands must implement monitoring and reporting policies and 
procedures to provide reasonable assurance that costs incurred on interim 
payments represent the work performed and associated costs incurred by the 
contractor.

4.  It is expected that each requiring entity will send an implementation 
plan to the Director, Navy Staff (DNS) point of contact no later than 60 days 
from the date of this message.  Once the plan is received, it will be 
reviewed by DNS Financial Improvement and Audit Readiness (FIAR) Team for 
adequacy.  For those requiring entities that are currently compliant with 
reference (a), a statement from an appropriate official stating that the 
command is compliant, accompanied by the command's policy and procedures 
showing how compliance is being achieved, may be submitted in lieu of an 
implementation plan.  Each implementation plan must include how each 
requiring entity will identify open cost-plus, reimbursable contracts with 
interim payments along with the associated COR assigned to the contract.  
These compliance actions will be completed and subject to testing by 23 
October 2017.

5.  My staff will coordinate with Budget Submitting Office FIAR Managers to 
provide additional examples of sufficient monitoring and reporting 
procedures.

6.  My point of contact is CAPT Terry Morris, available at 202-685-1679 or 
terry.morris(AT)navy.mil.

7.  Released by VADM J. G. FOGGO, Director, Navy Staff.//

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