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Basic Property Management-Government

Part IIMeeting the needs of all our “customers” while implementing effective processes…..Two of the biggest challenges for us today!

Presented by: Skip Adolph CPPM, CF and Ivonne Bachar CPPM, CF

ForNational Education Seminar, New Orleans, 2012

In collaboration with Andy Anderson CPPM, CF and Richard Coatney CPPM

Property System Birds Eye View

Rules & Business NeedsRules & Business Needs Policies & ProceduresPolicies & Procedures

Getting theGoods

(Need thru Acquisition)

PropertyControl

(In-use period)

Reuse, Close-out and Disposal

(Once item is excess)

Tracking – Training – Awareness

Reporting – Reconciliation – Adjustments

Audits – Process Improvements

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Contractor’s Responsibility

It all starts with a plan!!

“Contractors shall develop property management plans and systems, at the contract, program, site or entity level that reflect their efforts to obtain best value”. (Right out of 52.245-1)

Create with using the “Outcomes” as the initial template

Contractor to build a plan using Voluntary Consensus Standards or Industrial Leading Practices.

Government assumes risk as long as the contractor’s practices do not place the Government at risk.

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What is a Property Management Plan?

A strategic look at how best to manage the government’s property holdings (“I am a custodian”) based on best value - Program - Site - Entity

What should the plan provide? - Performance outcomes (Acquisition thru Contract

Closeout) - Using primarily Voluntary Consensus Standards

and Industry Leading Practices

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Contractor Outcomes (New Way)

The new FAR property rules are expressed in performance-based terms, i.e., as desired “outcomes”

Contractors can determine how best to achieve those outcomes—in accordance with: Voluntary Consensus Standards: “Common and repeated use of

rules, conditions, guidelines or characteristics for products or related processes and production methods, and related management systems” OMB Circular A-119

Standards used must be adequate for the contract performance as determined by the Property Administrator

The National Technology Transfer and Advancement Act of 1995 (Public Law 104-119), OMB Circular A-119, and FAR Part 12 all mandate the use of Voluntary Consensus Standards in lieu of

Government-unique standards

Asset LifecycleBusiness Processes

Receiving Identification Records Movement Storage Physical

Inventories Utilization & Reuse Consumption Maintenance Subcontract

Control

““Control, Preserve, Protect and Maintain while Control, Preserve, Protect and Maintain while mitigating risk”mitigating risk”

AcquisitionDisposition

Award Close-out

Property Management Reports Audits

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Contractor Outcomes

AcquisitionReceiptRecordsPhysical InventorySub-contractor controlReportsRelief of StewardshipUtilizationMaintenanceContract close-out

AcquisitionReceiptRecordsPhysical InventorySub-contractor controlReportsRelief of StewardshipUtilizationMaintenanceContract close-out

“ Contractors shall develop property management plans and systems, at the contract, program, site or entity level that reflect their efforts to obtain best value”

This is Property Management

Process Effectiveness Questions: Outcome: Acquisition

Acquisition Authority Contractual provisions and requirements

related to Government Property are flowed down to appropriate contractor acquisition organizations

Material transfers between contracts are adequately documented

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This is Property Management

Process Effectiveness Questions: Outcome: Acquisition

Categorization of Property Categorization of property is correctly

determined before acquisition or fabrication Ordering Practices

Acquisition documents include detailed and accurate description of assets to be acquired and contract or equivalent code designator

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This is Property Management

Process Effectiveness Questions: Outcome: Receiving

Receiving Process Receiving reports are promptly prepared that

document items and quantities received, condition, shipping data, date received, etc.

Incoming property is provided adequate protection and storage during the receiving process.

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This is Property Management

Self Assessment How many Organizations contribute to

an effective PM System? How many Organizations are

responsible for an effective PM System? How many Organizations have the

responsibility to maintain an effective PM System?

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This is Property Management

Self Assessment Historical trends

What’s the track record?

Where have there been weaknesses? Specific processes or functional areas?

Repeat findings Isolated or systemic? Failed or ineffective corrective actions?

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This is Property Management

Self Assessment The Property Management “Process”

Property “Control” System or Property “Management” System? A production line of data Processing data at specific points and passing

it on Produces data generation points The data is used to quantify system

effectiveness

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Functional Flowchart

ORGANIZATION

Org 1

Org 2

Org 3

Org 1

Org 4

PROCESS FUNCTIONINPUT

PROCESSSTEP

PROCESSSTEP

PROCESSSTEP

PROCESSSTEP

PROCESSSTEP

PROCESSSTEP

PROCESSSTEP OUTPUT

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This is Property Management

Self Assessment The use of Industry Leading Practices

and Voluntary Consensus Standards Established references Maintain consistency in measurement Standardized assessment outcomes Consistency in trends and historical

assessments

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Voluntary Consensus Standard

VCS means common and repeated use of rules, conditions, guidelines or characteristics for products, or related processes and production methods and related management systems. Voluntary consensus standards are developed or adopted by domestic and international voluntary consensus standards making bodies. The USG does not endorse any one VCS or VCS making body

However, the USG has had creative involvement with ASTM International E-53 Committee

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Industry leading practices…cont

Industry leading practices (ILPs) are generally accepted processes, including best practices, that have been proven throughout related businesses, to be managerially and economically effective, efficient and successful at meeting particular objectives of a contractor’s management system, and where specified, in compliance with the required government outcomes.

ASTM, Int. and NPMA

American Society for Testing and Materials, International

Joint effort to establish industry standards throughout property world

Should attempt to incorporate into your organizations

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ASTM International Standards for Property

E 2132-07 Physical Inventory

E 2135-07 Terminology

E 2220-02 Establishing Full Valuation of L,D & D During an Inventory

E 2221-02 Administrative Control of Property

E 2279-09 Establishing Guiding Principles of Property Management

E 2378-05 Recognition of Impaired or Retired Property

E 2453-05 Determining Life-Cycle Cost of Ownership

E 2499-06 Classification of Equipment Phys. Location Info

E 2497-06 Standard Practice for Calculation of Equipment Movement Velocity

E 2608-08 Standard Practice for Equip. Matrix

E 2605-08 Practice for Receiving Prop.

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Another Example of Voluntary Consensus

Standards ISO 9000- an international

consensus on good management practices with the aim of ensuring that the org. can deliver: Meet the customer’s quality

requirements, and Applicable regulatory requirements,

while aiming to enhance customer satisfaction, and

Continual improvement

End of Part II

Want to see you here tomorrow for our rousing finish!!

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