National Education Seminar, 2011

1. National Education Seminar, 2011 Welcome to Las Vegas! And… PROPERTY MANAGEMENT IN THE MARITIME WORLD

2. Durable Movable Property(DMP) • Repair Parts • Sensitive Material • Damage Control • Force Protection • Maritime • Medical • Housekeeping • Directed reimbursable • Furnishings • Technical Documentation • Installed Property • Tools and Test Equipment • Cargo Securing Equipment (Vehicle Lashing Assemblies)* • Cargo Handling Gear • Computers, Hardware/Software

3. DOLLARS AND SENSE • Total Assets In Dollar value: • $28,031,168.00 • Across three contracts - on eleven ships

4. Property Control System Elements Are Tailored to Each Contract • Specific References • Contract • Technical Manuals • Government Supply System Doctrines • The Mighty P-485 • OPNAV Instructions • Command Peculiar Instructions • Federal Acquisition Regulations • ASTM Standards • Standard Terminology for Property and Asset Management • Standard Practice for Physical Inventory of Durable Movable Property • Soon To Be Implemented – ISO 9000 Standard For Asset Management

5. The Property Control System DoD Manual for the Performance of Contract Property Administration – DoD 4161.2-M (Dec. 1991): • DL1.1.94. PROCEDURES • A detailed written description of the contractor's operation for the control, use, and care of property while in the contractor‘s possession • It should identify individuals or components of the contractor's organization having specified and delineated functions and authorities for property management, precisely what must be done and by whom • It should provide coverage for each element of control that applies to the type and use of the property provided under the contract. • Suspense controls should exist for time-phased obligations, submission of reports, time-scheduled maintenance, and/or physical inventory

6. Elements of the Property Control System • Acquisition • Receipt • Identification • Records • Movement • Storage • Physical Inventories • Reports • Consumption • Utilization • Maintenance • Subcontractor and Alternate Location Property Management • Disposition of Government Property • Closure of Contract

7. Assign Responsibility – and Insure Those Responsibilities Are Met • Ship’s Master (Captain) • The ship's Master is the accountable officer for all Government property aboard his/her respective vessel. The Master may delegate custodial responsibilities to Department Heads for the control of Government property; however, the Master shall retain overall accountability to MLL for compliance with MLL directives regarding government material. With regard to the daily management of government property, the Master will perform the following functions: • Oversees the overall control and accountability of Government property and ensures the protection and security of Government property onboard the vessel. • Ensures that all crewmembers understand MLL policies and procedures for the control, safekeeping, and management of government property. • Releases CASREP and NORS requisition messages. • Exercises approving authority for survey documents as necessary. • In conjunction with the Senior MLL property administrator, assists in coordinating logistics visits and property audits conducted aboard the vessel.

8. Responsible Key Personnel • Ship’s Chief Engineer • The Chief Engineer is responsible for ensuring that the inventory control procedures and instructions listed herein are adhered to for the control of Government property under the cognizance of his/her department. With regard to the daily management of government property, the Chief Engineer will perform the following functions: • Ensures the protection of Government property from damage, loss, and improper usage. • - Responsible for assisting the storekeeper in the annual inventory of Government Furnished Material (GFM) under his/her cognizance in accordance with MLL property control procedures. • - Generates and processes SHIPCLIP feedback requests (i.e. CKs, ACRs, FCFBRs) to and through the ship’s Storekeeper for further submission as directed into the Configuration Data Management System. • - Acts as the authorized custodian for sensitive property and special tools held in the Engineering Department. • - Generates reports of Government Property Lost Stolen or Damaged for any missing sensitive items under his/her cognizance.

9. Responsible Key Personnel (continued) • Ship’s First Officer • The First Officer is responsible for ensuring that the proper inventory control procedures and instructions listed herein are adhered to for the control of Government property under the cognizance of his/her department. With regard to the daily management of government property, the Chief Mate will perform the following functions: • Ensures the protection of Government property from damage, loss, and improper usage. • Responsible for assisting the Storekeeper in the annual inventory of Government Furnished Material (GFM) under his/her cognizance in accordance with MLL property control procedures. • Coordinates the management of CBR-D and Force Protection (FP) material, including the monthly inventories. • Acts as the authorized custodian for sensitive property held in the Deck Department. • Generates reports of Government Property Lost Stolen or Damaged for any missing sensitive items under his/her cognizance.

10. Responsible Key Personnel - Storekeeper • The following are the duties and responsibilities of the Storekeeper: • Establishes safeguards against all identified risks in supply storerooms and spaces • Responsible for the physical security and condition of supply office and storeroom spaces aboard ship • Retains keys and maintains positive control of keys for all repair parts storerooms. • Processes outgoing requisitions to Maersk Line, Limited for submission to the Navy Supply System or for open purchase • Requisitions will be transmitted via the SALTS transmission system or other method approved by the MLL Property Administrator • Updates the Supply Management (SM5) system as necessary to maintain control of issues, receipts, allowance changes, inventory adjustments, and all other related transactions such that operating contract requirements are met • Performs technical review of part numbers and stock numbers utilizing CD ROM products such as “Haystack” • Reviews configuration change requests and performs supply information to the Chief Engineer for changes to the ships configuration • Submits Allowance Change Requests for required changes in allowance to the Shipboard Configuration and Logistics Information Program (SHIPCLIP) • Processes all SHIPCLIP changes and Feedback Reports • Submits the annual DMP inventory report to the MLL Property Administrator in a timely manner as directed

11. Responsible Key Personnel - Storekeeper, continued… • Implements the MLL Property Control Plan relating to control of Government Furnished Property aboard ship • Assists ships’ crew as necessary to order replacement sensitive property, loose equipment, furnishings, and consumables • Maintains supply and logistics records aboard ship - this includes both paper files and computer files. • Performs inventories, including spot inventories and wall to wall inventories as necessary to maintain proper inventory control • Prepares material expenditure documents and maintains expenditure records for material expended by the vessel • Liaisons with customer representatives, including MSC property administrators, supply specialists, and supply technicians during shipboard visits and audits • Submits all required annual reports to the MLL PA

12. Training • Required Training • Consistent Training • Email Communication • Procedure Updates • Procedures Always Available • New Personnel • Training Visits • Annual Conference • Periodic Purposeful Messages

13. Property Process Flow… Need Material Requirement Identified

14. Inventory • Implement Scheduled Inventories • Enforce • Verify • Require Knowledge, Skill and Ability in Your Personnel • Develop Plans Based Upon Material Disposition • Threshold of Dollar value • Type of Material • Sensitive • Safety • Criticality • Material Subject to Pilferage • Be Prepared for Annual Inventory

15. Reports • DD 1662 DOD PROPERTY IN THE CUSTODY OF CONTRACTOR’S (DFARS 245.505-14) • Insist on direction from your contracting officer regarding definition/specifics of all property descriptions • Example: Block 12, OTHER PLANT EQUIPMENT • What IS “other plant equipment” ? In our case it is all equipment not otherwise identified and covered in any other block on the form – insist on their guidance, and GET IT IN WRITING! • Agree upon calculation formulas from the balance start of period through balance end of period – get guidance in writing as to what calculation method is to be used to capture additions and deletions • Also discuss the quantity column – in units or acres – what does “units” mean? Line items? Aggregate totals? Hmmmmm?

16. Common Sense….. • Make Certain All Contract and Company Specific Information Required On The Form Is Correct • Contract Number • Contract Purpose • Business type • Official name Of Parent Company • Cage Code • Etc…

17. Audits • Conduct up close and purposeful audits • Develop and advertise audit plans and criteria • Encourage self-audits • Require periodic feedback • Follow-up • Demand unacceptable findings be corrected • Provide timeline for corrective actions • Follow through to ensure compliance • Try to have your Senior Management Team support dire consequences if corrections are not made and if consistent failures occur

18. QUESTIONS? • Paul Leon, CPPM (pleon@mllnet.com) • Emmanuel Gamboa, CPPM (egamboa@mllnet.com) • Tidewater Chapter – Norfolk, Virginia and surrounding areas