Direct Charging Contract Accountable Government Property Management in a Services Environment

1. Direct Charging Contract Accountable Government Property Management in a Services Environment ERIC GEYER HTSI Manager, Contracts and Procurement Support October 13, 2009

2. Introduction • Overview of Honeywell Technology Solutions Inc. • Production Contract vs. Service Contract • GPMSS (Global Property Management Support Services) • DTRA – White Sands Missile Range • TPER (Theatre Provided Equipment Refurbishment) • Indirect Charge vs. Direct Charge • This is what we do. What would you do?

3. Examples of What We Do Control NASA, NOAA & Navy satellites and mission operations Quality Assurance, inspection and audits services Provide logistics provisioning for USMC’s Maritime Prepositioning Force Operate and maintain NASA’s Ground Network Operate and maintain NASA’s Space Network Ensure asset accountability in CONUS & OCONUS Deliver availability of critical aircraft systems on a power-by-the-flight-hour basis Maintain, upgrade,and sustain theAir Force Satellite Control Network Missions of National and Scientific Importance

4. Contract Accountability Federal acquisitions may consist of services or supplies, and the terms and conditions of the related contracts often stipulate the use of Government property.

5. Production Environment • Tangible product • Factory or group of related contractor owned or leased facilities where production takes place • Numerous contracts and production lines for numerous Government customers (and often civilian customers as well) will be in process simultaneously • Standardized supply chain and business disciplines which can be “functionalized” • These costs apply to all contracts, customers and production lines, and are priced out as an indirect cost of doing business • It makes sense to functionalize Government property management, rather than to piece together ad hoc GPMS’s for each contract or product

6. Service Contract (HTSI) • No tangible product • Perform on a customer site • Army base, NASA Center, etc. • Leased facility dedicated to a single contract or program Lease charged to contract(s) • T’s & C’s of the contact stipulate the type of property management application the customer desires, or the customer may even offer or stipulate use of its property management application • With the exception of HQ locations which house common business functions, the sites have a workforce dedicated to one contract vehicle or occasionally several contracts with similar missions for one customer • HTSI has found that direct charging the property management function is a good business decision

7. Global Property Management Support Services (GPMSS) 4 tasks under an IDIQ contract vehicle that consist of property management services for a number of Army units • Operation Iraqi Freedom / Operation Enduring Freedom • CONUS • Training Equipment Set • LBE Europe

8. Operation Iraqi Freedom / Operation Enduring Freedom • In theatre (Afghanistan and Iraq) property management and record maintenance using the Army’s software application PBUSE (Property Book Unit Supply Enhanced) • Although the mission equipment isn’t strictly “contractor accountable”, GFE supplied to perform the mission, as well as direct charged equipment on this T&M contract is subject to FAR 52.245-1 16 locations in theatre on this task alone

9. GPMSS - CONUS Fort Bragg

10. GPMSS - CONUS Ft. Campbell

11. Discussion What would you do?

12. DTRA – White Sands Missile Range • White Sands Missile Range (WSMR) is a rocket range of almost 3,200 square miles (8,300 km2) in area, the largest military installation in the United States • It is the location of the first nuclear test • The contractual obligation: TASK AREA 1 – ADMINISTRATION AND OPERATIONS: The overall objective of this task is to provide general administration and operations support for the overall Instrumentation Support Contract to government GFP, GFF, GFE, and general support

13. In the beginning… Trinity

14. DTRA – Mission and Locations SCOPE: The scope of this acquisition is to provide instrumentation and test support in the areas of conventional and special weapons effects, survivable structures and systems, and systems safety assessments. This support includes all aspects of planning, operation, maintenance, conducting, managing, fabrication, modifying, deploying & fielding, executing, and reporting of test results using the Defense Threat Reduction Agency’s (DTRA’s) equipment and other specialized test support items located primarily at Kirtland Air Force Base (AFB), NM, White Sands Missile Range (WSMR), NM, Nevada Test Site (NTS), NV, Dugway Proving Grounds (DPG), UT, and other locations world-wide as directed by DTRA. The major end items of this acquisition are test support and test data collection & distribution. The DTRA will issue Task Orders (TOs) written within scope of this Statement of Work (SOW) to initiate and clarify all work requirements.

15. DTRA Instrumentation In-house MS Access system with bar code scanning capability used. Developed with customer funding back in the day.

16. Discussion What would you do?

17. TPER - Kuwait

18. TPER-Kuwait C.11 GOVERNMENT SUPPLY SYSTEM. The contractor shall utilize the Army Supply System IAW AR 710-2 and DA PAM 710-2-1 using Theater STAMIS, to requisition, receive and control all Government furnished material. (Government will furnish a DODAAC.) The contractor shall have a dedicated telephone connection to utilize the Government supply system. The contractor shall be responsible for understanding and operating the necessary requisition equipment and software.

19. TPER-Kuwait (FP Contract) C.11.1 In the event the contractor cannot obtain parts through the Government supply system within sufficient time to complete the timely repair of vehicle, the contractor is authorized to locally purchase parts through commercial sources upon receipt of ACO approval. In the event the contractor locally purchases, the contractor shall document all parts costs associated with parts obtained commercially by serial number and provide proper invoicing information. The contractor shall keep records of purchase and running total of expenditures per FAR 45.5 and property control plan. After the contractor exhausts all other means for obtaining the required parts to continue vehicle refurbishment, the contractor may, as authorized by the ACO, utilize parts available from other Government owned vehicles in its possession.

20. Discussion What would you do? (across the board)