Basic Property Management-Government Part II

1. Basic Property Management-GovernmentPart II Meeting 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 Andrew C. Anderson CPPM, CF For National Education Seminar, Las Vegas, 2011 In collaboration with Richard Coatney, CPPM 1

2. 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 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. 2

3. 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 3

4. 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 • Developed by representatives of all sectors that have an interest in the use of the standard—often used as the basis for commercial and regulatory action • 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 4

5. Contractor Outcomes • Acquisition • Receipt • Records • Physical Inventory • Sub-contractor control • Reports • Relief of Stewardship • Utilization • Maintenance • Contract 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” 5

6. 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

7. 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

8. 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.

9. 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?

10. 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?

11. 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

12. 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

13. 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 USGdoes not endorse any one VCS or VCS making body • However, the USG has had creative involvement with ASTM International E-53 Committee 13

14. 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. 14

15. 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

16. E 2131-09 Assessing L,D & D E 2132-07 Physical Inventory E 2135-07 Terminology E 2219-02 Valuation and Management 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 2306-03 Use and Disposal E 2378-05 Recognition of Impaired or Retired Property E 2379-04 Career Dev. E 2452-05 Equip. Mgm’t Process Maturity (EMPM) Model E 2453-05 Determining Life-Cycle Cost of Ownership E 2499-06 Classification of Equipment Phys. Location Info E 2495-07 Standard Practice for Prioritizing Asset Resources in Acq., Util. and Prop Disposal 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. ASTM International Standards for Property 16

17. Another Example of Voluntary Consensus Standards • ISO 9000- aninternational 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 17

18. End of Part II • Want to see you here tomorrow afternoon at 2 PM for our rousing finish!!