Search

Oil and gas are nonrenewable energy resources that are strategically under the powers of the state, the Republic of Indonesia. The oil and gas management should optimally be implemented for the purpose of providing people’s prosperity and welfare. The legal issues studied are the regulating profit sharing contract on oil and gas management in Indonesia. The type of the research is a legal research that is used to solve the appearing legal problems, and to prescribe what should be. The research uses primary and secondary legal materials. The result shows that according to Act No. 22 of 2001, the oil and gas management has changed from the centralized and monopolistic management into the decentralized one, so that it becomes better. Article 6 regulates upstream activities in the oil and gas business activities which are applied and controlled through profit sharing contract. The profit sharing contract shall contain at least the following terms and conditions, such as: (a) the ownership of natural resources shall remains on the hands of the government up to delivering them; management controlling operations shall be under the authority of the implementing agency; (b) entire capitals and risks shall be borne by enterprises and permanent enterprises; (c) the change of the statute shall separate upstream and downstream industry of oil and gas; (d) the mining authority shall return to the government not to Pertamina or enterprise; and (e) the enterprise that wants to invest in oil and gas sector shall sign profit sharing contract with the Implementing Agency for Oil and Gas (SKK Migas). Production sharing for oil and gas management in Indonesia is obtained from the production after being deducted with operating costs; the production is shared to the state and the contractor i.e. generally 85% of net oil production to the state and 15% to the contractor, and 65% of net gas production to the state and 35% to the contractor.

This research builds upon the emerging body of knowledge on organizational assessments of contract management processes. Since the development of the Contract Management Maturity Model in 2003, several DoD, Air Force, Navy, Army, and defense contractor organizations have undergone contract management process assessments as a part of their process-improvement effort. The assessments were conducted using the Contract Management Maturity Model (CMMM) as the initial step in a program of contract management process improvement. The purpose of this research is to use these combined contract management process assessment results to characterize the current state of practice of contract management within the Department of Defense and defense organizations. This extended abstract provides the conceptual framework for the Contract Management Maturity Model (CMMM) and discusses the components of the CMMM. The symposium presentation and resulting research report will summarize the CMMM assessment ratings, analyze the assessment results in terms of contract management process maturity, discuss the implications of these assessment results for process improvement and knowledge management opportunities, and provide insight on consistencies and trends in these assessment results to defense contract management.

The Boeing Company's 2002 corporate restructuring, creating today's Integrated Defense Systems (IDS), added tens of millions of dollars to current Army aviation program costs. The new IDS accounting structure enabled the company to shift expenses from inefficient to efficient programs. At the Boeing Philadelphia and Boeing Mesa facilities, where the Army's CH-47F/G (Chinook) and AH-64A/D (Apache Longbow) are built and remanufactured, the additional costs will possibly exceed $68M and $71M, respectively, over a six year period (CYs '03-'08). Within an environment where defense contractors wield increasing power, it is imperative that the Army/DoD exercise due diligence and leverage when required, to ensure the cost protection of Service programs. There are tools available to assist the Services in this undertaking, one such formidable alternative being the proactive application and enforcement of cost accounting standards. Applied appropriately, these flexible standards enable contractor agility while protecting Government interests.

Section 832 of the Floyd D. Spence National Defense Authorization Act of 2001 (the Act) required that I, as Comptroller General of the United States, "convene a panel of experts to study the policies and procedures governing the transfer of commercial activities for the Federal Government from Government personnel to a Federal contractor . . . ." In accordance with the Act, I am pleased to transmit to Congress the report of the Commercial Activities Panel (the Panel) convened to satisfy this statutory requirement. Given the importance of this issue, I elected to chair this Panel and ensured that it was comprised of highly qualified and empowered representatives from the groups specified in the Act and other knowledgeable individuals. A diverse group of high-level members were selected as panelists in order to broaden the scope and enhance the quality of our deliberations, while increasing our chances of success., Original contains color plates: All DTIC reproductions will be in black and white.

The Defense Office of Hearings and Appeals (DOHA) conducts industrial security clearance reviews for Defense contractor employees who appeal the denial or revocation of a security clearance. In December, 1999, USA Today published an article suggesting that DOHA granted security clearances in a manner inconsistent with applicable adjudicative guidelines. The purpose of this study was to assess whether the clearance review decisions reported by USA Today were representative of all DOHA decisions resulting in the granting of a clearance. Results indicated that approximately 72% of DOHA clearance reviews resulted in a security clearance denial/revocation. DOHA denied a security clearance in approximately 86% of cases with issues similar to those presented in the USA Today article. Thus, in cases similar to those chosen by USA Today, DOHA usually denied rather than granted a security clearance.

The primary goal of the Acquisition Review Quarterly (ARQ) is to provide practicing acquisition professionals with relevant management tools and information based on recent advances in policy, management theory, and research. ARQ addresses the needs of professionals across the full spectrum of defense acquisition, and is intended to serve as a mechanism for fostering and disseminating scholarly research on acquisition issues, for exchanging opinions, for communicating policy decisions, and for maintaining a high level awareness regarding acquisition management philosophies.

The F/A-18E/F is currently undergoing development flight testing as part of its engineering and manufacturing development (EMD) phase of the acquisition cycle. The development flight test program is under the responsibility of the integrated Test Team, which consists of Navy and contractor personnel. The team also receives support from the Navy's Operational Test and Evaluation Force. The F/A-18E/F development flight test program began in February 1996 at the Naval Air Warfare Center, Pattixent River Naval Air Station, Lexington Park, Maryland. The integrated Test Team is using the seven test aircraft provided by Boeing (formerly McDonnell Douglas) under the EMD contract. The seven aircraft consist of five single-seat E models and two 2-seat F models. Boeing has also built 3 ground test article aircraft to use in conducting tests at its St. Louis, Missouri, facility, and General Electric Corporation, Lynn, Massachusetts, has delivered 21 engines for flight testing.

DOD'S Office of Small and Disadvantaged Business Utilization (OSADBU) is responsible for the mentor protege program. A signed mentor protege agreement for each mentor protege relationship must be submitted to OSADBU and approved before developmental assistance costs may be incurred. OSADBU has reimbursed mentors through cooperative agreements where both the government and a contractor work together to achieve a common purpose. OSADBU also approved credit agreements that were negotiated on a nonreimbursable basis. In addition, the services and the defense agencies requested OSADBU's approval of mentor protege agreements that reimbursed mentors pursuant to separate contracts or line items in DOD contracts. OSADBU is to conduct periodic performance reviews of the progress and accomplishments realized under approved mentor protege agreements. This report is one of a series we have issued on the mentor protege program. In our first report, we recommended, among other things, that DOD develop and implement adequate internal controls in the application and approval process and in the oversight of protege development. In our second report, we were not able to recommend that the pilot program be extended because sufficient information was not available to determine whether the program's purposes could be achieved or whether reauthorization and extension were warranted., Report to Congressional Requestors.

This study addresses the potential for wartime host nation support (WHNS), contingency contracting, and other forms of external support to either reduce the current shortfall in Army combat service support (CSS) forces or to reduce the overall requirement for CSS forces. This study is based on two different analytic efforts. As a first step IDA investigated the Army's use of external support in the Gulf War and estimated the units that would have been required had that support not been available. In the second step, IDA analyzed the troop list the Army developed for its Total Army Analysis for the year 2003 (TAA03) and made estimates of the levels of external support that might be achieved in Southwest Asia and Northeast Asia given a vigorous effort at obtaining WHNS agreements and contingency contracts. The study concludes that more aggressive planning for external support could reduce the demand fo support forces for all Services and could reduce the demand for strategic lift assets that would otherwise be required to deploy American support forces to a contingency.

We are providing this report for your information and use. The audit was requested by the Commander, Defense Contract Management Command International (DCMCI), to ensure that all contracts that required delegation to DCMCI - Europe and the Middle East for administration were appropriately delegated by the contracting organizations. The DCMCI is a subordinate command of the Defense Contract Management Command and is responsible for providing management direction and control over contract administration services (CAS) at contractor facilities outside the continental United States.

The overall audit objective was to determine whether DoD contracting officers were taking adequate measures to provide reasonable assurance that the prices of intracompany transfers were fair and reasonable. The audit also evaluated the adequacy of applicable management controls established at DoD contract administration offices.

This study assembled the experiences of the contracting professionals who supported Operations Desert Shield and Desert Storm from their continental United States based Department of Defense offices. The results of the study show that these professionals actively supported the conflict just as much as the contingency contracting officers who were deployed to the Middle East. No major differences in contracting methods appeared among the different agencies studied. However, the study does suggest that certain regulations should be considered for changes or waivers that go into effect during military contingencies. Also, there are specific training requirements that contracting professionals should receive in order to support a military contingency properly.

Public Law 101-510 established the pilot Mentor-Protege Program. This is a voluntary program designed incentives for major Department of Defense contractors to furnish disadvantaged small business concerns with assistance designed to enhance their capabilities to perform as subcontractors and suppliers under both Government and commercial contracts. This study was undertaken to assess the environment for program implementation by analyzing the perceptions of one large DoD contractor and the small disadvantaged business community regarding the Mentor-Protege program and DoD's implementing guidance. The results of this study indicate: There is generally a positive impression of this program and the assistance offered by this program would be effective in improving the capabilities of small disadvantaged businesses. There are, however, several barriers present that could prevent program implementation or limit its effectiveness.

The 1986 Omnibus Diplomatic Security and Anti-Terrorism Act has caused the State Department's facilities acquisition to grow swiftly to a program of over $2 billion. That growth, together with the Department's decision to comply with all terms of the Federal Acquisition Regulation, has led to major policy and procedural changes, and those changes have resulted in some inefficiencies in construction acquisition. The Acquisitions Division would be more effective if it were organized along functional instead of geographic lines. Moreover, the projected workload for the division supports a staffing of 41 positions, uo to 28 today. However, the Acquisitions Division needs a phased plan to strengthen its management controls. The division should increase its level of automation, implement a system to track contract actions and report their status to the division's customers, and establish performance standards. In addition, the division should improve document control of contract files and request the Procurement Executive to adopt the standard contract numbering system recommended by the General Accounting Office.

The objectives of the audit were to determine the extent to which the Military Departments rely on contractors for emergency-essential services during overseas crises or hostile situations and to evaluate the extent to which these vital services should be provided by civilian contractors. We generally excluded civilian contractor support of overseas intelligence activities. The audit also followed up on Recommendations B.1. and B.2. in Inspector General, DoD, Audit Report No. 89-026, "Retention of Emergency-Essential Civilians Overseas During Hostilities," November 7, 1988. Because of a lack of policy and guidance at the OSD level on the continuation of emergency-essential contractor support during a crisis or hostile situation, we did not assess the adequacy and the effectiveness of applicable internal controls. The audit showed that DoD relies on contractors to provide services related to defense systems vital to the DoD mobilization and wartime mission. The Assistant Secretary of Defense (Force Management and Personnel) issued DoD Instruction 3020.37, "Continuation of Essential DoD Contractor Services During Crises," November 6, 1990, to address that dependency. The Instruction should strengthen DoD's ability to ensure that emergency-essential services provided by contractors are continued during crises or hostile situations. However, the Instruction needs revision to provide additional assurances of continued performance. The results of the audit are summarized in the following paragraph, and the details, recommendations, and management comments are in Part II of this report.

Provisioning is the management process of determining and acquiring support items necessary to initially operate and maintain an end item such as an aircraft. For provisioning of spares, the Army Materiel Command (AMC) required its contractors to recommend the items needed for initial support of a given end item and determine whether items were already stocked by DoD or were new candidates for procurement. Contractors were also required to provide predictions of maintenance factors and other management data for development of spares requirements. Army Commodity Support Commands used contractor recommendations to determine quantities of parts to be procured for new systems. Initial and follow-on provisioning of spare and repair parts for the Army's Apache helicopter totaled about $500 million for FY 1985 through FY 1990. The audit objective was to determine if the Army was receiving adequate and timely data on provisioning of spares from contractors to serve as a sound basis for initial purchase of parts for new weapons systems. We also determined the effectiveness of internal control procedures in place to review and evaluate the quality of contractor estimates and forecasting data before approving procurement of the initial quantities. To accomplish the audit within available resources and a reasonable period, the objective was narrowed to a specific weapons system - the Apache helicopter.

This document provides guidelines and procedures for assessing the ability of potential DoD contractors to develop software in accordance with modern software engineering methods. It includes specific questions and a method for evaluating the results.

This note concerns itself with the problem of accomplishing valid economic comparisons between contract and in-house performance of public works services. It does this by applying economic principles to correctly identify relevant costs. There is a detailed discussion of each type of cost commonly incurred in public works services. A method for accomplishing routine cost comparisons without excessive labor is proposed. (Author)