Managing Property on a Program

1. Managing Property on a Program Terry Rochelle, CPPM, CF Jerri Proszek, CPPM,CF The Boeing Company

2. AGENDA Introduction Disclosure What is Program Property Management Roles, Responsibilities, Expectations Where it starts What’s the Plan ? Developing the Plan Working the Program Path forward

3. Disclosure This presentation is based on Department of Defense (DoD) & the FAR and is based on experience at our company. We have made the pitch as generic as possible Foreign Military Sales or Direct Commercial Sales contracts are not addressed. See your company procedures for direction. ASTM Standards are highly encouraged for management of property but have not been referred to in this presentation

4. What is Program Property Management? • It’s the management of government property directly related to a program vs. a ‘centralized’ or ‘core’ function of property management. • Both groups work to FAR requirements and the company Government Property Process Control Document(s) • Program Property Management is a ‘hands on’ approach in the planning and management of the 10 functions of property • Central/Core Property Management oversees the development of Processes and Procedures, Self-Assessment, Records, Systems, Reporting, and Sub-Contract Management (program property focals assist the core function in all these areas)

5. What is Program Property Management? What we do on the program is manage “Acquisition and Utilization “ of equipment to best serve our Customer and the requirements of a Contract, then ultimately disposition that equipment to best serve the Government. A good program plan supports your customer, your program and the overall site company property requirements What you do out on a program supports the overall success of your Property Control System (PCS)

6. Roles, Responsibilities and Expectations • Roles: • Planners – Recognize your requirements • Leaders – Recognize your value of contribution, execute your role • Communicators – Offer your expertise, use the opportunity whenever you can – meetings, email or face to face • Team Players – Multiple functions make a program work, engage and integrate yourself into these areas • Responsibilities: • To provide the planning, guidance and structure to the program in the • daily management of government property to ensure we meet the • contract requirements. • Expectations: • To have a flawless contract execution from Acquisition through Relief • of Stewardship

7. Where it Starts… • Property Management needs to be involved up front! • Beginning with the proposal process, or sometimes earlier, • communicate your role and get involved • Review the proposed contract for proper authorization language and know what needs to be addressed • Contract Type • Right to Title / Rent Free Use • Relief of Stewardship Instructions • ST/STE Delivery, Spares Requirements • Delivery Documentation i.e., DD250, Certificate of Completion, DD1149, etc • Export Requirements

8. Where it Starts… • Identify the required property • Work with engineers to develop the list of hardware, make/buy decision, where used, quantities and need dates for both contractor acquired property (CAP) and government furnished property (GFP) • Work with buyers for suppliers, flow-times and costs (CAP) • Develop the property lists accordingly Equipment List (EL) Government Furnished Property (GFP)

9. Where it Starts… • Price the property • Provide the CAP property list to cost and estimating group for pricing the proposal • Provide the GFP list to Contracts • Authorization • Notification from Contracts providing authorization to proceed • Plan • Create your plan for the management of the property (follow or support your Company Property Plan)

10. What’s the Plan? • The plan is not your daily tasks but your high level • approach to executing your overall requirements and your • approach to communicating it.

11. Developing the Plan • Requires focus up front! • Step through it and take the time to cover it all and plan it • Ensure your plan supports the overall program plan • State what your are going to do • Include the scope and purpose of the plan • Identify the Lifecycle Outcomes (10 Functions) • Identify Self-Assessment • Include System Health Monitoring (scorecard)

12. Execute the Plan • Setting up your Program Property Database • Know what you are working to.... • FAR / Contract Clauses / Deliverables / Schedules / Special Provisions / Policies and Procedures / Self-Assessment / Sub-Contractor Control / Export Compliance • Do you understand them ? • If you don’t understand, then execution is jeopardized. Don’t be afraid to ask the subject matter experts (SME’s) in your organization.

13. Executing the Plan • What functional organizations may be involved with a program? • Supplier Management, Contracts, Finance, Estimating, Engineering, Configuration Management, Production Control, Change Management, Tooling, Core/Central Property Management, Capital Property Management, Quality Assurance, Export Compliance…and there may be others • Acquaint yourself with focals of these organizations…they are your support line as you are theirs!

14. Executing the Plan What systems will you interface with? Program Property Database, Core Property System, Finance, Procurement, Inventory, Shipping, Tooling, Maintenance, Export Control There are many systems to use for information. Gain access as needed and learn to use them. You don’t need to be an expert, but it will save a lot of time and frustration by not waiting for someone else to give you an answer. Knowledge is power. The more you know the better you can perform.

15. Working the Program • Let’s review the main functions of CPM vs. PPM while • working a contract…… • We’ll cover these 10 functions of Property Management and the • differences of the core function vs. program property function • Property Management • Records • Acquisition/Receiving/Identification • Physical Inventory • Utilization/Movement/Shipping/Storage • Maintenance • Reports • Subcontract Control • Relief of Stewardship • Contract Closeout

16. Working the Program • Property Management: • Core Property Management (CPM) • Publish and maintain procedures related to property accountability and control that are in conformance with overall company policies and applicable government requirements. • Ensure that adequate property accountability systems exist and are properly documented. • Identify property in a manner that is consistent with the standard for the identification of company-owned, government-furnished, or acquired property. • Provide clear audit trail of all appropriate accountability and accounting transactions throughout the life of the asset.

17. Working the Program • Property Management: • Program Property Management (PPM) • Adheres to the Company and Property Management policies and procedures and the Program Plan • Ensure property controls are maintained through all organizations of the program from Acquisition through Relief of Stewardship. • Provide assistance to CPM for contract closeout

18. Working the Program Records: • CPM: • Ensure the overall property control system enables a complete, current, auditable record of all transactions (official record holder of controlled hardware) • Provide assistance to Self-Assessment group in support of internal and GPA assessments

19. Working the Program Records: • PPM: • Establish program database for receipt/issue, re-allocation, re-work/repair, maintenance/calibration, deliverables • Establish your database for both Contractor • Acquired Property (CAP) as well as the Government Furnished Property (GFP) • At a Minimum: (per FAR) • Part Number, Nomenclature, Manufacturer, Model Number, NSN, • Qty, UII, if available, Unit of Measure, Accountable contract number, • need date, location, date placed in service, posting references, • disposition • Additional Fields: • Export, Maintenance/Calibration, Supplier Need Location, Custodian, etc…

20. Working the Program • Acquisition/Receiving/Identification: • CPM • Review documentation to ensure the authorization and receipt of the hardware during audits and self-assessment reviews • Create Sub-contracts Records • During receipt GFP store personnel resolve any discrepancies such as overages/shortages, damage, paperwork problems • Tag assets as required • Create Accountability Records • Store or issue assets as requested

21. Working the Program • Acquisition/Receiving/Identification: • PPM • Involved with authorization to acquire at the time of proposal or as a result of a program change request • Coordinates MILSTRIP activity if required and other means of acquisition • Resolves receipt discrepancies with storekeeper (quantities, damage, paperwork errors) • Directs location of use or storage • Requests Identification (tagging) • Supports storage/issue of hardware and identifies custodian

22. Working the Program • Physical Inventory: (work-in-process material is exempt from the physical inventory process) • CPM • Work with Self-Assessment group for scheduling inventories • Coordinate with Self-Assessment group for the type of inventory to be performed (cyclical, periodic, by-exception, etc.) • Provide inventory lists as requested by the Self-Assessment group • Provide reports of physical inventory to Government Property Administrator

23. Working the Program • Physical Inventory: (work-in-process material is exemptfrom the • physical inventory process) • PPM • Assist Self-Assessment group during the physical inventory • Assist in Self-Assessment reviews • Conduct periodic inventories (self-review) in labs associated with your work package • Provide report of inventory to CPM to update accountable records

24. Working the Program • Utilization/Consumption/Movement/Storage • Utilization: • CPM: • Provide lists of inventory that have not been updated in PCS, within a procedural time frame, to the program for review • Update PCS from input from programs showing authorized need of assets (requirement exists) • Assist Self-Assessment organization for utilization reviews • Support Self-Assessment organization during PMSA

25. Working the Program • Utilization/Consumption/Movement/Storage • Utilization: • PPM: • Requests screening of assets by the custodians using CPM provided list • Visits labs/shop to ensure property is only used as authorized by the contract • Reports to CPM any incidents of unauthorized use • Requests via Contracts organization, Rent-free use of hardware on another contract • Requests transfers of surplus/excess property when requirement exists on another contract

26. Working the Program • Consumption: (Many companies utilize Material Management Accounting Systems (MMAS) for the consumption of materials) • CPM: • Materials Management (MM) or Property Management (PM) will review issue request documents for authority and item availability • MM or CPM will pull stock and issue and update PCS, will review shelf life items and issue shelf life items as applicable on a First in First out (FIFO) bases and ensure no commingling of company-owned and government owned materials • Assist Self-Assessment organization in reviews of consumption

27. Working the Program • Consumption: (Many companies utilize Material Management Accounting Systems (MMAS) for the consumption of materials) • PPM: • Ensure quantities consumed are reasonable compared to requirements in bills of material, requirements lists, scrap lists and contract specifications. • Assist CPM in Self-Assessment reviews • Ensures unused material is returned to stock prior to contract closeout

28. Working the Program • Movement/Shipment/Storage: • CPM: • Warehouse personnel prepare hardware for movement/shipment/storage • Updates the Property Control System (PMS) via property move order (PMO) for site move or storage • Update PCS when assets ship if no automation from PCS (such as Gold) • Items of storage must have appropriate condition tag affixed to hardware • Assist Self-Assessment organization in reviews of movement/shipment/storage

29. Working the Program • Movement/Shipment/Storage: • PPM: • Coordinates movement with custodian and/or fills out the PMO for the move. • Notifies transportation for movement of property • Creates a DD1149 for shipments • Coordinates with Export organization (when required) • Updates program database (if not automated) when moved or shipped • Works with warehouse or stores personnel regarding movement/storage/shipment when required • Provides CPM any contract specific storage instructions

30. Working the Program • Maintenance: • CPM: • Ensures a standard maintenance program will be established to perform and document maintenance actions. • Assist Self-Assessment organization for reviews of maintenance • Updates PCS accordingly to track maintenance/calibration transactions (Warehouse Personnel) • Prepares property for movement/shipment (Warehouse Personnel)

31. Working the Program • Maintenance: • PPM: • Ensures program database provides traceability for maintenance/calibration for visibility to program • Notify CPM to disclose and report to the Property Administrator the need for replacement and/or capital rehabilitation • Coordinates and works with the custodian regarding any maintenance/calibration issues • Updates database when maintenance/calibration dates change

32. Working the Program • Reports: • CPM: • Provides reports of Loss, Theft, Damage, Destruction (LTDD) to Property Administrator (PA) • Notifies Property Administrator (PA) as soon as damage is known • Submits Physical Inventory Reports • Reports Government-Furnished Equipment in the DOD Item Unique Identification (IUID) Registry • Assist Self-Assessment organization in Report reviews

33. Working the Program • Reports: • PPM: • Investigates all LTDD reports submitted by program • Contact CPM in incidents of damage immediately • Submits reports of LTDD to CPM for submission to PA • Submit Reports of Discrepant, Deficient or Late GFE • Provides availability of hardware to program via 30, 60, 90 day look-ahead reports • Provide reports of hardware located at suppliers for repair/upgrade • Support CPM in Self-Assessment reviews

34. Working the Program • Sub-Contract Control: • Prime CPM: • Update sub-contract control database upon notification of property located at supplier or other company sites • Ensure proper clauses have been flowed down to supplier • Ensure supplier records of property comply with requirements of flow down clauses • Coordinate with PPM and or Supplier Management (SM) on requests for modifications of GP located at supplier • Perform periodic physical inventory per procedures for compliance • Update records for movement, shipment, transfer, physical inventory and disposition • Report LTDD, Physical Inventory and Corrective Actions to PA as required • Assist Self-Assessment organization with reviews

35. Working the Program • Sub-Contract Control: • PPM: • Update program database with government property located at supplier • Update database for completed movement, physical inventory and utilization/disposition activity • Coordinate with CPM and or Supplier Management (SM) on requests for modifications of GP located at supplier • Report LTDD to CPM • Investigate reports of LTDD with SM and CPM • Assist CPM in Self-Assessment reviews

36. Working the Program • Relief of Stewardship: • CPM: • Assist Self-Assessment organization in reviews to validate: • Consumed or Expended material in the performance of the contract • Adjustments of material were reasonable • LTDD’s granted relief from PA • Delivered or shipped property (per government direction) from facility (not to other site or supplier) • Process SF 1428 disposal schedules for GFP and CAP that is no longer required in performance of contract • Process scrap through PCARSS or Contracting Officers direction • Assist in other means of disposal (transfer to another contract, purchase ,supplier buy-back, donation or bid sale)

37. Working the Program • Relief of Stewardship: • PPM: • Update program database for property delivered or shipped (per government direction) from facility (not to other site or supplier) • Report deliveries / shipments to program team • Request transfer of property if applicable • Request buy-back to supplier via SM for excess • Ensure scrap is disposed of per company procedures • Assist CPM in Self-Assessment reviews

38. Working the Program • Contract Closeout: • CPM: • Receive notification of closure or termination from Contracts • Check PCS for existing property on contract • Request program organizations and SM to begin screening and perform physical inventory of government property at locations, including suppliers, holding the property • Request Relief of Stewardship actions/Final Disposition

39. Working the Program • Contract Closeout: • PPM: • Receive notice of contract closeout from CPM • Receive inventory list of property accountable to the contract • Review contract for pre-disposition instructions • Notify and work with custodians for physical inventory of property • Assist CPM in Self-Assessment reviews

40. Property Management on a Program • Path Forward • Do your best to produce an environment that allows communication, and enjoyment. A positive attitude will enhance how you can make a difference each day and bring value from that day • Manage your daily tasks, find your rhythm, set your goals, and execute to your goals • Continue to create and develop an open environment of communication • Asking for help will not bring the attention to you, it will only provide the path forward to the ultimate team decision and successful conclusion

41. Property Management on a Program • QUESTIONS?