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What To Know About Corrective Action Requests

Posted by James Lusk on Tue, Mar 7, 2017 @ 11:03 AM

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Recently, we have had many discussions with Department of Defense suppliers about corrective action requests (CARs) and how to address them.  In fact, we have heard more about CARs recently than we have in our last 11 years of service. Our DoD approved software can help.

What is a Corrective Action Request (CAR)?

A Corrective Action Request (CAR) is commonly defined as, “A formal notification sent to a supplier, where an item or process is in nonconformity and a remedy is required.”

CAR’s ask that the cause of nonconformities of a product, process, or service be eliminated, with the objective of preventing recurrence and are normally determined during quality assurance activities. These non-conformances are resolved through corrective actions. Each organization will have its own specific CAR form, process and procedures.

Levels of Corrective Action Requests

The DoD has four levels of CARs. The level depends on the severity of the nonconformity and the level of supplier management visibility required to properly address corrective actions, according to ACQ Notes.

Level 1

  • Issued for a nonconformity that can be corrected immediately and where no further corrective action response is necessary.  
  • The issue is not considered systemic, significant or recurring. 

Level 2

  • Issued when contractual nonconformity cannot be corrected right away.
  • Problems that involve Critical Program Impact items, Safety of Flight or critical safety items are determined a Level 2 CAR, at a minimum.
  • CARs should be directed to the supplier management level responsible for initiating corrective actions.

Level 3

  • Issued to the supplier’s top management to call attention to serious contractual nonconformity.  
  • Because of the severity of a Level 3 CAR, the supplier must acknowledge receipt and understanding with a due date.
  • There may be contractual remedies involved, such as reductions of progress payments, cost disallowances, business management systems disapprovals or more.

Level 4

  • Issued to the supplier’s top management when a Level III has been ineffective.
  • May also be issued if the contractual nonconformity is serious enough to warrant contractual remedies, such as suspension of progress payments or product acceptance activities.

How To Overcome Corrective Action Requests

DoD suppliers are constantly challenged by evolving requirements. The data associated with these requirements, and coupled with the demands of unrelated governmental websites, often leads to nonconformities and CARs, and it diminishes the profits of a DoD supplier’s business. 

We believe that today’s DoD commerce requires an IT platform that can make sense of requirements and provide an automated environment to easily react and respond in real-time.  Our DoD approved software provides the peace-of-mind that companies need to complete DoD transactions.

 The Odyssey platform offers fully-scalable solutions for organizations of all sizes and structures including:

  • Small businesses
  • Non-profits
  • Large publicly traded companies

To learn more about how your organization can overcome and avoid this all too common problem, please CLICK HERE.  We offer many services that will help you take corrective actions immediately.  If you are a supplier wrestling with DoD Commerce, please contact us to learn more about the Odyssey platform, designed specifically for DoD suppliers.       

 

Topics: DoD approved software, corrective action requests, CARs, department of defense, dod compliance