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Overseas Quality Assurance (QA)

Introduction

The Government Quality Assurance Surveillance (GQAS) topic explains the Defence Quality Assurance Authority (DQAA) policy for Government Quality Assurance (GQA), covering risk based tasking and who is authorised to perform GQAS activities on behalf of the DQAA and overseas governments.

Many MOD contracts are now placed with overseas suppliers; similarly many overseas nations’ defence contracts are placed with UK suppliers. When contracting for quality and managing quality aspects in overseas contracts many of the basic principles are the same as for domestic contracts; however there are key differences that need to be considered and addressed with regard to:

Outgoing requests GQA - asking an overseas nation to undertake GQA on behalf of the UK .
Incoming requests for GQA - when an Authorised MOD Government Quality Assurance Representative (GQAR) organisation and/or individual undertakes GQA on behalf of an overseas nation.

Note: reference to the Integrated Project Team Leader (IPTL) throughout this topic also applies to anyone with delegated authority that originates a tasking request for GQA. For example: Project Manager, Equipment Support Manager, Acquisition Manager, Project QA Focal Point etc.

Policy - outgoing overseas GQA

Constraint

Where the IPTL requires GQA surveillance for contracts / subcontracts placed outside the UK, the IPTL shall:

for NATO countries , arrange GQA through the National Quality Assurance Authority of the country concerned, in accordance with NATO Standardization Agreement (STANAG) 4107.
for non-NATO countries , arrange GQA through the relevant Memorandum of Understanding (MoU).
ensure that the contract and/or subcontract provides for GQAR right of access, see the Standard Quality Assurance Contractual Requirements topic referenced under “Outgoing - overseas contracting” below.

Authoritative guidance

Defence Quality Assurance (DQA) Policy is required to support departmental objectives, and is tasked with measuring the reciprocal nature of overseas GQA. In support of this objective IPTLs and GQARs should follow authoritative guidance and make sure that an information copy of any outgoing request for GQA placed with an overseas nation is sent to the DQA-Helpline, marked for the attention of the International Policy Team. For contact details see Getting Help.

Note: the International Policy Team can provide non-technical assistance with outgoing requests for GQA, which may help with reducing the overall processing time.

Provision of overseas GQA

NATO nations

GQA is provided by NATO nations, on request from another NATO nation. Requests for GQA must be in accordance with STANAG 4107, using the AQAP 2070 GQA procedure and associated templates and guidance. STANAG 4107 invokes the principle of reciprocity to allow nations to provide GQA to other NATO nations without charge provided the resources required to complete the GQA request are not excessive.

Current editions of STANAG 4107 and AQAP 2070 can be obtained from the NATO Standardization Agreement Online Library External link to Internet content webpage.

AQAP 2070 includes a selection of forms designed to support the GQA process and standardise communication between GQA Participants. The use of RIAC, RGQAR, GQACR is mandated. GQA Participants are strongly encouraged to use all of the other forms in order to assure coherence and continuity.

Non-NATO nations

GQA is provided by non-NATO nations on request and where the UK has negotiated an MoU. The MoU should include details of the charging regime to be implemented, and the GQA process to be followed. Recent MoUs tend to follow a similar GQA process to that defined in AQAP 2070, and will typically include a selection of forms designed to support the GQA process and standardise communication between GQA participants. The form can be used for requesting GQA on a repayment basis and for feedback on completion of GQA as outlined in the MoU.

To establish if a required MoU is in place with a particular nation please contact the DQA-Helpline, for contact details see Getting Help.

Outgoing - overseas contracting

When considering placing a contract (at whatever level) with a Non-NATO nation, and where overseas GQA activities may be required, DQA Policy should be contacted early to establish whether the required MoU is in place. If an MoU does not exist, negotiations are likely to take at least six months, therefore DQA Policy welcome early engagement with project staff so that unnecessary delays can be avoided.

Allied Quality Assurance Procedures (AQAPs) and Defence Standards are used in overseas contracts in exactly the same way as for domestic contracts. See the topics: Appropriate Certification and Standard Quality Assurance Contractual Requirements.

The United States of America (US) has a reservation in STANAG 4107 about the use of AQAPs in contracts and this can lead to difficulties when project teams procure items from the US. A set of guidance notes: QA conditions for UK MOD procurement in the US [28KB PDF] is available to help project teams resolve any difficulties with contractual quality conditions when dealing with US contractors.

Non-NATO nations’ and some NATO nations’ governments do not use AQAPs and Defence Standards to specify QA requirements in their contracts. This may lead to some reluctance by overseas contractors to accept some contract conditions specified by the UK. This is not a valid reason for not including them, and where difficulty is encountered guidance should be sought from DQA Policy.

Important note: STANAG 4107, AQAP 2070, and MoUs and/or Implementing Arrangements are not contractual, and must not be invoked in any MOD contracts.

Incoming - overseas GQA

The process

It is important that all incoming requests for GQA are submitted using the correct process, see the section on provision of overseas GQA above.

Only the national receiving authority focal point identified in STANAG 4107 is Authorised to receive and process incoming requests for GQA. Any requests for GQA sent directly to a MOD organisation and/or individual that have not been routed through the national focal point must be returned to the originator with an explanation.

Where the final customer for GQA services is not a NATO nation or organisation, care must be taken to ensure that the work is carried out under the terms of the correct MoU. If no MoU exists with the final user nation, GQA should not be provided. Particular care should be taken when dealing with convoluted subcontract arrangements, and where doubt exists, staff should contact the DQA-Helpline for assistance; for contact details see Getting Help.

Charges

Any charges detailed in the MoU and/or Implementing Arrangement must be levied. JSP 368 controls the financial arrangements embedded in any other document and states unequivocally that charges must be levied whenever a MOD organisation is providing a service for non-MOD bodies. To provide a service that is not covered by the appropriate arrangements may be considered as FRAUDULENT use of MOD resources.

In some cases the Defence Export Services Organisation (DESO) may negotiate deals that provide GQA free of charge or at a reduced rate to the customer. In these cases charges relating to the GQA work will be recouped by the Defence Quality Assurance Group (DQAG) through DESO from the Defence Military Assistance Fund (DMAF). Confirmation that the work can be undertaken must first be sought from Defence Quality Assurance Group Field Force Head before any such agreement can be finalised.

Budget holders may only waive charges with agreement of Director Finance Policy (D Fin Pol). JSP 368 states further, that budget managers have no delegated powers to vary the terms of the charging regimes. This responsibility resides again with D Fin Pol. A decision to waive or forgo receipt is considered the equivalent of a decision to spend money and must be subject to the same considerations and discipline as other forms of expenditure. Any changes to the charging regime must be cleared with D Fin Pol in advance of their implementation.

OCCAR considerations

OCCAR is the multinational organisation for Joint Armament Co-operation established to enable European countries to collaborate on defence equipment procurement in order to compete in the global market and deliver projects more efficiently and economically. For more information see the International Relations Group (IRG) website External link to Ministry of Defence Intranet content on the Defence Intranet.

OCCAR is organised into two main elements; the Board of Supervisors (BoS), and the OCCAR Executive Administration (OCCAR EA). The UK is one of six OCCAR ‘Member States’, and is currently represented on the BoS by the Chief of Defence Materiel (CDM). The other Member States are France, Germany, Italy, Belgium and Spain.

Note: Member States may, or may not be Participating States. Participating States are those nations that have elected to participate directly in a specific OCCAR programme. These may be existing Member States, or other European nations (non Member States) subject to their formal agreement to OCCAR’s principles and policies.

The BoS is the highest decision making level within OCCAR and is the principal vehicle for the Member States to control and monitor OCCAR.

OCCAR EA consists of discrete Programme Divisions (PD) and a Central Office (CO) providing corporate direction, support, and policy and business development. Each PD is a multidiscipline team, headed by a Programme Manager (PM), who is responsible to the OCCAR BoS, through the Director of OCCAR EA, for the efficient management of their respective programmes.

OCCAR is not a NATO organisation or Agent and therefore is not permitted to request GQA services under the STANAG 4107 agreement which only provides for GQA between NATO countries and NATO Agencies.

To enable GQA to be requested in support of OCCAR programmes, OCCAR Member States, have jointly agreed a management procedure: OCCAR GQA Policy Document (OMP 7), which describes arrangements for the provision of GQA services for OCCAR Programmes. It is based on AQAP 2070 practices. The OMP 7 can be obtained from DQA Policy, by visiting the Defence Quality Assurance (DQA) webpage External link to Ministry of Defence Intranet content on the Defence Intranet.

Where GQA in support of an OCCAR managed programme is required, the procedures and forms described in OMP 7 are to be used. Under this procedure OCCAR raise and issue the initial request for GQA to the appropriate National Focal Points.

Subsequent sub-contract delegations between Participating nations are to be carried out in accordance with OMP 7. Any requirement for sub-contract GQA in a non Member State or non “ Participating State ” is to be referred back to OCCAR who will make separate arrangements as appropriate.

OCCAR can request Member States to provide GQA for all OCCAR Programmes irrespective of their involvement in the Programme. Where GQA is requested in the UK in support of a Programme in which the UK is not a Participant, confirmation of cost reimbursement is to be obtained prior to GQA commencement. Similarly, where the UK requests sub-contract GQA from a Member State not involved in the Programme and costs are incurred, any reimbursement of the additional cost shall be sought through OCCAR. In such circumstances OCCAR shall agree the cost distribution with Participating States on a case by case basis.

When negotiating a MoU, Programme MoU or other documents detailing quality aspects, no reference to STANAG 4107 must be made.

The OCCAR QA Manager may establish a Quality Assurance Working Group (QAWG) for the exchange of GQA information and the provision of advice on quality assurance matters associated with a specific programme. Terms of Reference for the QAWG are shown at Annex A of the OMP 7 GQA Policy Document.

Further advice or clarification regarding GQA for OCCAR Programmes may be obtained from the DQA Policy International Team. For other information on OCCAR please contact IRG1b.

In summary:

STANAG 4107 is not applicable to OCCAR, and should not be mentioned in any Programme Mandate, MoU or other programme document. These documents should instead make reference to OMP 7.
IPTs should not assume that a non-OCCAR NATO nation would provide GQA under STANAG 4107 or in accord with STANAG 4107 principles for OCCAR programmes.
Requests for GQA in non-OCCAR nations may incur costs.
Any costs incurred may be passed on to the responsible UK IPT.
All OCCAR nations reserve the right to charge for GQA services provided to OCCAR.
Any work performed in the USA on OCCAR programmes will almost certainly not be free. The USA requires by law a separate bilateral agreement, even with NATO nations. The USA does not recognize NATO organisations or OCCAR.
IPTs should discuss GQAR resources with the relevant MOD GQAR and/or GQAR organisation before committing the UK to providing a GQA service. Should GQAR resources not be available when required, this could cause embarrassment to the UK.
If an IPT wishes to conduct GQAR duties itself for OCCAR programmes, the IPT must be Authorised by the DQAA . See the topic Applying For Authorised MOD GQAR Organisation Status for more information.
Where an IPT enters into a MoU and/or Programme Mandate or other agreement which contravenes UK policy, any additional requirements, resources or costs may need to be met / provided by the IPT.

Foreign Military Sales and Government Quality Assurance

The United States Government (USG) operates a system called Foreign Military Sales (FMS) under which eligible foreign governments and international organisations may purchase defence equipment and services from the USG. Under FMS the USG sells equipment from procurement or from stock, at a price based on that paid by the US Armed Forces.

Can additional GQA be requested?

All FMS contracts are subject to automatic GQA by the USG, therefore requests for GQA are not appropriate.

If, during contract performance or upon product receipt, a quality issue arises, it should be brought to the attention of the US Military Department using the Supplier Discrepancy Report (SDR) process. Download the Foreign Military Sales Contracting Process Overview [76KB PDF] for more information and guidance.

Change History

1 July 2010: Guidance download for selecting contractual Quality Assurance conditions for UK MOD Procurement with Suppliers in the United States of America added to the Outgoing – overseas contracting section.
1 August 2009: Topic revised to clarify that the Team Leader is responsible for the fulfilment of the mandated requirements for quality but authority maybe delegated to staff who are competent and have the necessary resources to carry out the tasks delegated to them.; Revised references to forms used for overseas GQA.
1 November 2008: Foreign Military Sales guidance revised.