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The in-house repair line for two items observed by CRS has been completed.

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The third item has sufficient stock at this time, so no repair line will be opened. In the follow-on contract, develop a specific format for each vendor report, link key reports to payments and improve key contract management information requirements. The efforts to improve vendor reporting went beyond the letter of the recommendation, in that policy was also updated to influence other in-service support contracts.

Follow-up on Internal Audit of the Close-In Weapons System (CIWS) In-Service Support Contracts

For the follow-on CIWS support contract, link payments to Just-in-time materiel delivery, negotiate efficiency gains for new work, use holdbacks or fixed-price incentive per mount overhaul, and consider a value engineering clause. During the negotiations, D Mar P will address the following items: The Procurement Authority will review every milestone on the previous contract to see if we can firm up fixed prices, as there is a long history of the work performed.

Instead of negotiating just-in-time materiel deliveries, there was an opportunity for the vendor to purchase the weapon system upgrade kits in a bulk buy, which reduced the unit cost per kit. The procurement team considered a fixed price basis of payment during negotiations, but determined that a time and materials basis of payment for this particular contract would result in a lower overall cost to DND as the weapons systems are in various states of condition when received by the vendor.

Develop an internal Risk Management Plan and require the vendor to improve the management and the reporting of risk in the follow-on contract. A risk management plan is under development to support the project and link this to the vendor risk management plan in order to improve this issue.

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The internal risk management plan was developed in accordance with the Software Engineering Institute project management principles. The vendor was asked to develop a risk and opportunity management plan and provided this in June The DND contract management team has requested that this plan be even further improved. Footnote 1 Policy on Internal Audit http: Footnote 5 A credit clause allows DND to return a spare part that was recommended by the vendor but was surplus to the actual requirement.

The value of the surplus spare may be used to procure other spares that are in higher demand. The audit findings are summarized as follows: Methodology This audit follow-up is an assessment of the progress made in implementing the MAP. The following methods were used: Review and analysis of key contract documentation that pertained to the MAP. The Indian Air Force has placed a total order of aircraft. HAL is also responsible for after-sales support, snag disposition,.

But the company faces roadblocks to carrying out timely repair, overhaul and maintenance orders for the SuMKI fleet due to the poor supply of required spare parts. Narang noted that the major issue regarding maintenance is not the supply of spare parts but rather the rapidity of repairs of line-replaceable units and shop-repairable units. There's a problem loading this menu right now.

Table of contents for Improving the Army's management of reparable spare parts

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