Date post: | 13-Jan-2016 |
Category: |
Documents |
Upload: | godfrey-booker |
View: | 1,496 times |
Download: | 8 times |
1
WAWF INTEGRATION
PV/DVD CONTRACT RECEIPT ACCEPTANCE
SUPPLY PRC MEETING October 16, 2008
2
BACKGROUND
• DFARS 252.232-7003 clause mandates WAWF– Final rule, March 2008
• WSLM/MSSM Investment Review Board (IRB) – Receipt & Acceptance Condition required for Systems Certification
• Any system performing receipt and acceptance must use WAWF or provide BTA a WAWF Integration Plan
• DPAP Memorandum– Investigate current processes for compliance with FAR 32.905 and
Prompt Payment Act record keeping requirements
• Establish acceptance procedures for DLA originated Prime Vendor/Direct Vendor Delivery contracts where MILSVCs are direct recipients for items delivered
• Identify any issues and associated corrective actions• Develop WAWF transition/deployment plan
3
Policy Issue• Prompt Pay Act mandates government receipt/acceptance as
prerequisite for DoD paying vendors for goods and/or services
• Wide Area Work Flow (WAWF) identified as authoritative source for invoice, acceptance and/or documentation to make payment . . . . DoD wide impact for customer requirements are satisfied via direct vendor shipments requiring destination acceptance.
• Prime Vendor/Direct Vendor Deliveries:
– Financial risk to Supply Source: Lack of timely destination acceptance results in late payment and interest penalties
– Issue: WAWF capability not fully integrated within Service applications pending full deployment under ERP/modernization – variations in implementation by Services, manual workload
4
Interface Functionality
Currently:– MILSVCs systemic interface generates a Material Receipt
Acknowledgement (MRA, EDI 527R) transaction for a Direct Vendor receipt
WAWF Integration Concerns:– MILSVCs warehousing systems do not have an automated interface
with WAWF for receipt acceptance
– DFARS clause 252.232-7003 mandates vendors submit request for payment (invoice and receiving report ) via WAWF
– If a ship-to DODAAC does not have a registered acceptor the vendor cannot submit their request for payment via WAWF
– Some supply chains utilize vendor direct shipments which are initiated/received outside standard ordering and warehousing systems making WAWF integration more difficult
5
Prime Vendor vs. DVD
Total Sum of Shipments: PV vs. DVD
Total PV1,668,37887.29%
Total DVD 242,95712.71%
Total PV Total DVD
Note: Data source: EBS Business Warehouse, count of Customer requisitions. FMS and ‘Vendor to Vendor’ data excluded from total vendor ship data
6
Total Prime VendorTotal PV Sum of Shipments by Service
A483,034
29%
F589,317
35%
M20,294
1%
N367,117
22%
O194,292
12%
Z14,324
1%
A
F
M
N
O
Z
Note: Data source EBS Business Warehouse, count of customer requisitions. FMS and ‘vendor to vendor’ data excluded from total vendor ship data‘O’ = Other Federal Activities ‘Z’ = Coast Guard
7
Total Direct Vendor Delivery
Total DVD Sum of Shipments by Service
A141,431
57%F35,88415%
M 12,306
5%
N49,87521%
O1,7541%
Z1,7071%
A
F
M
N
O
Z
Note: Data Source: EBS Business Warehouse, count of customer requisitions. FMS and ‘vendor to vendor’ data excluded from total vendor ship data‘O’ = Other Federal activities ‘Z’ = Coast Guard
8
Receipt Acceptance Financial Management Regulation:
010109. Acceptance and Receipt. Acceptance is acknowledgment that supplies or services conform to applicable quality and quantity requirements, and may take place before, at time of, or after delivery. The organization(s) responsible for acceptance shall be specified in the contract. Acceptance ordinarily is evidenced by execution of an acceptance certification on an inspection or receiving report form or commercial shipping document or packing list.
Entitlement to invoice payments shall include, as applicable, additional determinations such as proof of receipt and acceptance, receipt of a proper invoice, and verification of all computations.
Source: DOD FMR Vol 10, Chap 1, Mar 2002
9
Receipt Processing Policy
Materiel Management Regulation
“All receipts of material at DoD distribution depots or at other wholesale or retail storage sites, (hereafter referred to collectively as “storage activities”) shall be recorded in DoD total item property records and shall be visible to all requiring activities.
All receipt of materiel at final destination shall be acknowledged by immediate issuance of an electronic material receipt acknowledgment.
Use of other than electronic data interchange to communicate receipt transactions and related documents is authorized only in exceptional circumstances.”
Source: DoD 4140.1R – Paragraph C3.8.1.1:
10
PV/DVD Shipments
• Question asked at OSD SCI Contract Acceptance Procedures meeting: “how are the Services/DLA capturing receiving report/acceptance information?”
• 4 receipt acceptance processes• MILSVC Central Receiving• MILSVC End Customer• Contractor Receipt• DLA Central Receiving
Note: Contract acceptance compliance is achieved when the name, title, phone and address information of the receipt acceptor is provided as described in the FAR 32.905 and Prompt Payment Act
11
Vendor Direct Shipments
• Requirement: Government personnel must be accountable for acceptance
• Today, payment on PV/DVD contracts is based upon evidence of receipt, not acceptance; therefore requirements of 5 CFR Part 1315 not met
• Internal controls need strengthened to ensure contract requirements are met before payment
12
BACK-UP DATA
13
Total Vendor Direct
AV118,944
CE90,538 CT
452
LN50,083
MD1,404,387
MR2,997
SB483
UN494
0
500,000
1,000,000
1,500,000
Sum of Shipments
AV CE CT LN MD MR SB UN
Supply Chain
Total PV Sum of Shipments by Supply Chain
AV CE CT LN MD MR SB UN
Supply Chain Total Sum of PV Shipments
Aviation (AV) 118,944
Construction & Equip (CE) 90,538
Clothing & Textiles (CT) 452
Land (LN) 50,083
Medical (MD) 1,404,387
Maritime (MR) 2,997
Subsistence (SB) 483
Unknown (UN) 494
AV56,459
CE40,450
CT2,511
LN109,707
MD11,213
MR20,212
SB2,402
UN3
020,00040,00060,00080,000
100,000120,000
Sum of Shipments
AV CE CT LN MD MR SB UN
Supply Chain
Total DVD Sum of Shipments by Supply Chain
AV CE CT LN MD MR SB UN
Supply Chain Total Sum of DVD Shipments
Aviation (AV) 56,459
Construction & Equip (CE) 40,450
Clothing & Textiles (CT) 2,511
Land (LN) 109,707
Medical (MD) 11,213
Maritime (MR) 20,212
Subsistence (SB) 2,402
Unknown (UN) 3Note: Data source EBS Business Warehouse, count of customers requisitions. FMS & ‘vendor to vendor’ data excluded from totalvendor shipment data. ‘O’ = Other Fed activities, ‘Z’ = Coast Guard
14
Medical Prime Vendor
PV (medical supply chain) Sum of Shipments by Service
A410,60029.24%
F493,55335.14%
M5,4570.39%
N287,19720.45%
O193,39413.77%
Z14,1861.01%
A
F
M
N
O
Z
Note: Data source: EBS Business Warehouse, count of customer requisitions. FMS & ‘vendor to vendor’ data excluded from total vendor shipment data‘O’ = Other Federal activities ‘Z’ = Coast Guard
15
ARMY
AV 1,335
C&E 22,113
C&T 40
LN 50,069
MD 410,600
SB 823,685
UN 155
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
Sum of Shipments
AV C&E C&T LN MD MR SB UN
Supply Chain
Army PV Sum of Shipments by Supply Chain
AV C&E C&T LN MD MR SB UNARMY
PV DVD
AV 1,335 9,219
C&E 22,113 27,468
C&T 40 1,660
LN 50,069 100,163
MD 410,600 1,513
MR 31
SB 823,685 22,143
UN 155 1,273
AV 9,219
C&E 27,468
C&T 1,660
LN 100,163
MD 1,513
MR 31
SB 22,143 UN
1,273
-
20,000
40,000
60,000
80,000
100,000
120,000
Sum of Shipments
AV C&E C&T LN MD MR SB UN
Supply Chain
Army DVD Sum of Shipments by Supply Chain
AV C&E C&T LN MD MR SB UN
AV Aviation
CE Construction & Equipment
CT Clothing & Textile
LN Land
MD Medical
MR Maritime
SB Subsistence
UN Unknown
Note: Data source: EBS Business Warehouse, count of customerrequisitions. FMS & ‘vendor to vendor’ data excluded from total vendor shipment data
16
AIR FORCE
AV 83,980 C&E
11,449
MD 493,553
SB 517,173
UN 209
-100,000200,000300,000400,000500,000600,000
Sum of Shipments
AV C&E C&T LN MD MR SB UN
Supply Chain
Air Force PV Sum of Shipments by Supply Chain
AV C&E C&T LN MD MR SB UN
AV 29,337
C&E 4,133
C&T 249
LN 1
MD 2,009
SB 50,041
UN 8
-10,000
20,00030,000
40,000
50,00060,000
Sum of Shipments
AV C&E C&T LN MD MR SB UN
Supply Chain
Air Force DVD Sum of Shipments by Supply Chain
AV C&E C&T LN MD MR SB UN
Air Force
PV DVD
AV 83,980 29,337
C&E 11,449 4,133
C&T 249
LN 1
MD 493,553 2,009
MR
SB 517,173 50,041
UN 209 8
AV Aviation
CE Construction & Equipment
CT Clothing & Textile
LN Land
MD Medical
MR Maritime
SB Subsistence
UN Unknown
Note: Data source: EBS Business Warehouse, count of customerRequisitions. FMS & ‘vendor to vendor’ data excluded from total vendor shipment data
17
MARINE CORPS
C&E 14,246 C&T
406
LN 12
MD 5,457
MR 1
SB 174,900
UN 5
-
50,000
100,000
150,000
200,000
Sum of Shipments
AV C&E C&T LN MD MR SB UN
Supply Chain
Marine Corps PV Sum of Shipments by Supply Chain
AV C&E C&T LN MD MR SB UN
AV 174
C&E 1,223
C&T 417
LN 9,154
MD 1,124
MR 28
SB 13,299
UN 1
-
5,000
10,000
15,000
Sum of Shipments
AV C&E C&T LN MD MR SB UN
Supply Chain
Marine Corps DVD Sum of Shipments by Supply Chain
AV C&E C&T LN MD MR SB UN
Marine Corps
PV DVD
AV 174
C&E 14,246 1,223
C&T 406 417
LN 12 9,154
MD 5,457 1,124
MR 1 28
SB 174,900 13,299
UN 5 1
AV Aviation
CE Construction & Equipment
CT Clothing & Textile
LN Land
MD Medical
MR Maritime
SB Subsistence
UN Unknown
Note: Data source: EBS Business Warehouse, count of customer requisitions.
FMS and ‘vendor to vendor’ excluded from total vendor shipment data
18
NAVY
AV34,963
C&E42,052 C&T
6LN1
MD287,197
MR2,652
SB319,374
UN195
-50,000
100,000
150,000
200,000
250,000
300,000350,000
Sum of Shipments
AV C&E C&T LN MD MR SB UN
Supply Chain
Navy PV Sum of Shipments by Supply Chain
AV C&E C&T LN MD MR SB UN
AV17,688 C&E
6,973 C&T175
LN50
MD6,073
MR18,362
SB46,742
UN22
-
10,000
20,000
30,000
40,000
50,000
Sum of Shipments
AV C&E C&T LN MD MR SB UN
Supply Chain
Navy DVD Sum of Shipments by Supply Chain
AV C&E C&T LN MD MR SB UN
NAVY
PV DVD
AV 34,963 17,688
C&E 42,052 6,973
C&T 6 175
LN 1 50
MD 287,197 6,073
MR 2,652 18,362
SB 319,374 46,742
UN 195 22
AV Aviation
CE Construction & Equipment
CT Clothing & Textile
LN Land
MD Medical
MR Maritime
SB Subsistence
UN Unknown
Note: Data source: EBS Business Warehouse, count of customer requisitions. FMS and ‘vendor to vendor’ data excluded from total vendor shipment data
19
‘O’ Other Defense Activities
C&E541
LN2
MD193,394
MR344
SB112,582
-
50,000
100,000
150,000
200,000
Sum of Shipments
AV C&E C&T LN MD MR SB UN
Supply Chain
"O" PV Sum of Shipments by Supply Chain
AV C&E C&T LN MD MR SB UN
‘O’ Other Defense Activities
PV DVD
AV 41
C&E
541 256
C&T 8
LN
2 339
MD
193,394 412
MR
344 573
SB
112,582 266,834
UN 371
AV41
C&E256
C&T8
LN339
MD412
MR573
SB266,834
UN371
-
100,000
200,000
300,000
Sum of Shipments
AV C&E C&T LN MD MR SB UN
Supply Chain
"O" DVD Sum of Shipments by Supply Chain
AV C&E C&T LN MD MR SB UN
AV Aviation
CE Construction & Equipment
CT Clothing & Textile
LN Land
MD Medical
MR Maritime
SB Subsistence
UN Unknown
Note: Data source: EBS Business Warehouse, count of customer requisitions. FMS and ‘vendor to vendor’ excluded from total vendor shipment data
20
‘Z’ Coast Guard
C&E137
MD14,186
SB9,664
UN2
-
5,000
10,000
15,000
Sum of Shipments
AV C&E C&T LN MD MR SB UN
Supply Chain
"Z" PV Sum of Shipments by Supply Chain
AV C&E C&T LN MD MR SB UN
C&E397 C&T
2
MD82
MR1,218
SB1,593
-
1,000
2,000Sum of
Shipments
AV C&EC&T LN MD MR SB UN
Supply Chain
"Z" DVD Sum of Shipments by Supply Chain
AV C&E C&T LN MD MR SB UN
PV DVD
AV
C&E
137 397
C&T 2
LN
MD
14,186 82
MR 1,218
SB
9,664 1,593
UN
2 AV Aviation
CE Construction & Equipment
CT Clothing & Textile
LN Land
MD Medical
MR Maritime
SB Subsistence
UN Unknown
Note: Data source: EBS Business Warehouse, count of customer requisitions. FMS and ‘vendor to vendor’ data excluded from total vendor shipment data
21
Definitions – Acceptance WAWF Strategic Plan
Acceptance Evidence• Documentation of the act of assuming ownership of legal title and accountability of goods
tendered and services rendered, excluding Real Property Placed in Service Notification. This serves as proof that the deliverables received or services rendered have been provided fulfilling specified terms and conditions against the previously agreed upon agreement, contract, and/or intra-governmental order between the supplier and the buyer. It also must include information necessary for Asset Valuation (e.g., capitalize vs. expense determinations).
Final Acceptance• The final acceptance process includes the act of an authorized representative assuming
ownership and accountability of existing identified goods tendered or approved specific services rendered. This includes final review and signing of documentation that triggers final payment, asset accountability, inventory record updates, etc.
• For intra-governmental orders, acceptance is deemed to occur constructively, unless otherwise
denoted in the order, on the 7th calendar day after the government buyer receives delivery of supplies or performance of services in accordance with the terms and conditions of the order, unless there is a disagreement over quantity, quality, or compliance with other terms and conditions of the order. The trading partners may specify a longer period for constructive acceptance in the solicitation and resulting order, if required, but must document in the file the justification for extending the constructive acceptance period beyond 7 days. Constructive acceptance for intra-governmental orders will trigger the payment process.
• The definition of constructive acceptance should not be interpreted to conflict with
established/existing FAR or FMR definitions or other regulatory guidance. This definition is strictly to apply to intra-governmental reimbursable transactions only, and occurs after initial acceptance by the government
Source: WAWF Strategic Plan 2007
22
WAWF / Customer Direct / EBS
VendorVendor EDI
GEX
GEX
Vendor FTPVendor Web
Vendor EDI
EBS
WAWF
CustomerDirect
UIDRegistry
ASN 856
Invoice 810
ASN 856/Email Notice to
Receiving Activity
Acceptance Report
861
DAASC
GEX
Acceptance 861
Invoice 810
UID Info
Material Receipt Acknowledgement
527R
AR 861
GEX
DAASC
DAAS(GEX)
ASN 856
Pending DoD-wide implementation of WAWF
RR for inter-Service/Agency
shipments