2013 NPMA Fall Conference Value Through Professional Asset Management You’re Having a Property...
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Transcript of 2013 NPMA Fall Conference Value Through Professional Asset Management You’re Having a Property...
2013 NPMA Fall ConferenceValue Through Professional Asset Management
You’re Having a Property Management System Analysis
(PMSA)…Now What???
Terri L. Snook, CPPM CF
November 13, 2013
2013 NPMA Fall ConferenceValue Through Professional Asset Management
About Me 34 Years in Property Management
Hughes Aircraft CompanyNorthrop GrummanRaytheonBoeing
19 years – Internal Audit and Subcontractor SurveillanceSelf-Governance
Retired in Jan 2012
2013 NPMA Fall ConferenceValue Through Professional Asset Management
So…..You get a notification from your Internal (Self-
Assessment) or External (GPA) Auditor that you are scheduled
for a PMSA.
What do you do???
2013 NPMA Fall ConferenceValue Through Professional Asset Management
NO!!!Don’t Panic…
It’s not as big a deal as you think it is.
2013 NPMA Fall ConferenceValue Through Professional Asset Management
IF……….. You’ve been managing your data You’ve been working closely with your TEAM
Property Management Contracts Program Office Procurement Subcontract Control/Subcontractors Shipping/Receiving Warehouse Custodians/Users Your Customer – ongoing communication…Know your auditor and what is
expected!
2013 NPMA Fall ConferenceValue Through Professional Asset Management
FAR 52.245-1 requires that the Contractor has in place a process to assess it’s Property Management System via review, audit, or self-assessment.
The Contractor must also make it’s premises available to the Government for the purpose of review, inspection and evaluation of the Property Management System.
2013 NPMA Fall ConferenceValue Through Professional Asset Management
You must determine risks and prepare for a positive outcome
You must collaborate with other departments and help them understand the risks, values and importance of the analysis to the company. This should be ongoing throughout contract performance.
A negative outcome can be very costly!
2013 NPMA Fall ConferenceValue Through Professional Asset Management
What does the auditor look at?
What does the auditor look for?
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Ten Lifecycle Outcomes/ProcessesAnalyses should be based on the contract and the 10
primary outcomes, as set forth in FAR 52.245.11. Acquisition2. Receipt 3. Records 4. Physical Inventory5. Subcontractor Control6. Reports 7. Relief of Stewardship Responsibility8. Utilizing9. Maintenance10. Property Closeout
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Additional ProcessesAdditional processes are embedded within the Ten (10) Primary Outcomes Property Management Identification Movement Storage Consumption Disposition
2013 NPMA Fall ConferenceValue Through Professional Asset Management
OLD FAR NEW FAR
FUNCTIONS OUTCOMES OUTCOMES/FUNCTIONS
1 *Property Management 1 Acquisition 1 Acquisition
2 Acquisition 2 Receipt 2 Receipt
3 Receiving 3 Records Identification
4 Identification 4 Physical Inventory 3 Records
5 Records 5 Subcontractor Control 4 Physical Inventory
6 Movement 6 Reports 5 Subcontractor Control
7 Storage 7 **Relief of Stewardship 6 Reports
8 Physical Inventory 8 Utilization 7 **Relief of Stewardship
9 Reports 9 Maintenance 8 Utilization
10 Consumption 10 Property Closeout Movement
11 Utilization Storage
12 Maintenance Consumption
13 Subcontractor Control 9 Maintenance
14 Disposition 10 Property Closeout
15 Contract Closeout Disposition
*Property Management is reviewed within each Outcome.
**Relief of Stewardship is a new Outcome
2013 NPMA Fall ConferenceValue Through Professional Asset Management
So, You’ve been notified of your PMSA date…Where do you start?
Schedule an Entrance Briefing Notify involved organizations/functions
ContractsPrograms OfficesProcurementSubcontractsCustodiansAnyone else pertinent to the audit
It’s VITAL that all organizations and functions remain involved every step of the way….in addition to maintaining a continuous relationship at all times! Ensure that all organization are present at the Entrance Briefing.
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Entrance Briefing – ALWAYS! Include ALL Affected Organizations Be Clear of ALL Ground Rules with the Customer Determine
Outcomes to Be ReviewedSample Population
CriteriaData Required
Understand ALL requirements BEFORE you leave the meeting
2013 NPMA Fall ConferenceValue Through Professional Asset Management
What’s Next?
Gather DocumentationCurrent Government Property Policies/ProceduresCompany’s Property PlanContract SOW (If contract specific)Last Inventory/Reconciliation
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Now let’s look at the specifics of each of the 10 Outcomes and see what will be reviewed and what you will need to ensure SUCCESS!
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Outcome 1: Acquisition Contractual Authorization
Statement of Work CLIN (Line Item in the Contract) Bill of Material (BOM) Contract Modification
Procurement Documentation (Reasonable, Allocable, and Allowable) Purchase Orders (CAP) DD1149’s/DD1348’s, etc. (GFP)
Transferred Shipped/Delivered in Place Provided by Customer
In-house Fabrication Documents
Population is generally those items acquired during the past year.
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Receiving Documentation Purchase Orders Packing Slips DD1149’s/DD1348’s Fabrication Orders
Items verified/Counted Discrepancies documented/reported/Isolated Receipt documented Proper distribution is completed
Outcome 2: Receipt
Population is generally those items received during the past year.
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Outcome 3: Records Minimal Information FAR paragraph (f)(1)(iii)(A)(1) through (10)
The name, part number and description, National Stock Number (if needed for additional item identification tracking and/or disposition) and other data elements as necessary and required in accordance with the terms and conditions of the contract.
Quantity received (or fabricated), issued, and balance-on-hand. Unit acquisition cost. Unique-item identifier or equivalent (if available and necessary for individual item
tracking). Unit of measure. Accountable contract number or equivalent code designation. Location. Disposition. Posting reference and date of transaction. Date placed in service (if required in accordance with the terms and conditions of the
contract).
Property records shall enable a complete, current, auditable record of all transactions
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Outcome 4: Physical Inventory Ensure Inventories are performed in accordance with timeframe established
in the Property Procedures Timely Reconciliation Inventory Reports/Results to Customer
Quantity ID/Stock Number (if applicable) Description IUID (if applicable) Model Number Serial Number Location Utilization Inventory Date
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Outcome 5: Subcontractor Control Clearly identify items provided Flow down of contract terms and conditions (e.g., extent
of liability for loss of Government property) Subcontracts are properly administered Periodic reviews to determine the adequacy of the
subcontractor's property management system Subcontractor Control Records must be maintained in
accordance with Terms and Conditions contained in the Subcontract
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Outcome 6: Reports Required Reports
DiscrepanciesPhysical Inventory ResultsLoss, Damage, Destruction, and TheftCorrective ActionsAudits/Self AssessmentsExcess PropertyAny Reports requested by the Contracting Officer
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Outcome 7: Relief of Stewardship
Report All Losses, Damage, Destruction and Theft Ensure a thorough investigation is conducted Ensure Report is complete Ensure Record is adjusted immediately after receiving
relief of liability
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Outcome 7: Relief (Cont.) Report Includes
Date of incident (if known) The data elements required under paragraph (f)(1)(iii)(A) of this clause Quantity Accountable contract number A statement indicating current or future need Unit acquisition cost, or if applicable, estimated sales proceeds, estimated repair or
replacement costs All known interests in commingled material of which includes Government material Cause and corrective action taken or to be taken to prevent recurrence A statement that the Government will receive compensation covering the loss of Government
property, in the event the Contractor was or will be reimbursed or compensated Copies of all supporting documentation Last know location A statement that the property did or did not contain sensitive, export controlled, hazardous,
or toxic material, and that the appropriate agencies and authorities were notified
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Outcome 8: Utilization
Provide documentation to show that Property is utilized, stored, and moved only as authorized in the contractUtilization screeningRent-free use
Documentation reflecting that all excess property is reported to the customer
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Outcome 9: Maintenance Maintenance Program
CalibrationPreventative MaintenanceRoutine RepairEmergency RepairReport to Customer
Capital type rehabilitation Replacement
Property is marked with Last Performed and Next due dates
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Outcome 10: Property Closeout Closeout Documentation
LDDT Cases Investigate Report Secure closure
Physical Inventory Reconciliation
Disposal of all Property upon receipt of instructions Excess Transfer to Follow-on Contract
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Exit Briefing
Include ALL Organizations involved in the PMSAReview and understand each
finding/observation BEFORE you leave the meeting
Agree on timeframe/submittal of Corrective Action Plan (CAP)
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Corrective Action Understand what needs to be done
Determine the causeLook at long term/permanent fixDon’t bandaid the errorUpdate Procedures, if necessary
Develop a Milestone plan Complete all actions on time
Do what you Say You’re Going to Do!
2013 NPMA Fall ConferenceValue Through Professional Asset Management
General Rules of Thumb… Establish all ground rules at the Entrance Briefing Be Prepared Don’t volunteer information NOT asked for Provide documentation in a timely manner
This can vary with each auditor, and should be determined in the entrance briefing.
Provide complete Corrective Action Plan in a timely manner Complete actions ON TIME Be COURTEOUS Be PROFESSIONAL Be HONEST!!!
2013 NPMA Fall ConferenceValue Through Professional Asset Management
The ???
Ensure that your Property Management TEAM includes all the other organizations…
*Maintain continuous and open communication…
*Maintain accurate and complete records of all actions
*Know your Customer and what’s expected…
SUCCESS!
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Questions???Contact:
Terri Snook, CPPM CF
310-910-4925
Thank you for your time!