Managing Government and

Contractor Owned Assets at an OCONUS

Location

Ron C. Lobo, CPPM CF

Many Contractors must provide a process and methodology for accounting/controlling Government owned Property at various OCONUS sites around the world. Most of these sites are considered austere in nature and can present quite a challenge in managing the property. Let’s spend a few minutes talking about the logistics of such a monumental task as well as the complications that can arise throughout the process. We’ll use the “ten outcomes” of Property management as our guide for discussing the particulars.

Presentation Objectives:•Discuss Elements of Procedure & Processes for:

• Authorization & Consent• CAP/GFP Shipments & Risk• CAP/GFP Receipts & Identification• Records• Inventories/Self-Audits• Relief Of Stewardship• Reports• Storage & Utilization• Maintenance• Subcontract Management• Disposal/Close-outs

In an OCONUS Environment

Authorization & Consent– Contract

• Agreements• Statement Of Work (SOW)

– Regulations• FAR Clauses• Agency Supplement Regulations• Publications/Instructions

– Statutory Requirements• US Laws, Customs & Agreements• Host Country Local Laws & Customs

CAP/GFP OCONUS Shipments & Risk

–US Export Control (Licenses, Agreement, Authorities)–Host Country Local Laws & Customs–Shipping methodologies/restrictions–Risk Mitigation

• Corruption• Environment• Security

OCONUS Shipment

ECO weighs-in on License requirements

ECO weighs-in on License requirements

OCONUS Shipments

Recipient Receives/Verifies Shipment

Risk Identification Risk Impact

Assessment

Risk Tracking

Risk Mitigation

PlanRisk Analysis

OCONUS Shipment Risk

Probability

Criticality

Risk Mitigation

Reevaluate events and ID new Risk

Monitor Activities

Consequences

CAP/GFP Receipts & Identification•Receipt of GFP & CAP

– Matching types and quantities to shipment– Management of any discrepancies incident to

shipment– Recording of information necessary to meet the

record requirements

•Identifying GFP & CAP as Government Owned– Stamp, tag, mark, or other identification as required

OCONUS Receiving Area

CONUS Receiving Area

Records– The Contractor shall have a process to create &

provide reports of discrepancies; LTDD, Physical Inventory results, Audits & Self-Assessments, Corrective Actions, & other property related reports as directed by the Contract and/or Applicable Regulations

– Due to OCONUS environment and conditions Recording Methodologies will vary.

• Manual (Property Books, Excel files, Etc.)• Computerized (Local PC program, WEB Based

application)

Elements of a Record“Property records shall enable a complete, current, auditable record of ALL transactions!”

•The name, part number and description, National Stock Number Unique-item identifier or equivalent (if available and necessary for individual item tracking).•Data elements as necessary and required in accordance with the terms and conditions of the contract.•Quantity received, issued, and BOH.•Unit acquisition cost/UOM/Location/Disposition.•Contract number or equivalent code designation.

•Posting reference and date of transaction.

Records

Relief Of Stewardship•The Contractor shall have a process to enable the prompt recognition, investigation, disclosure and reporting of loss of Government property, including losses that occur at subcontractor or alternate site locations.

•Date of incident (if known).•A statement indicating current or future need.•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 and last known location.

Relief Of Stewardship

Relief Of Stewardship

• Physical Inventories & Audits– Cyclic

• Contract Driven • Regulatory

– Non-Cyclic• ITAR/Etc.• AES• Hazmats• Host Country Customs

Physical Inventories/Audits•The FAR said…..

– The Contractor shall periodically perform, record, and disclose physical inventory results. A final physical inventory shall be performed upon contract completion or termination.

•A SOP should include…………– A process for physically locating and counting Government

property and comparing it to records of such property, including the posting of findings and adjustments and the reporting of adjustments to the Customer. Outcomes should demonstrate processes that periodically perform, record, and disclose physical inventory results. Physical inventories can be performed upon contract completion, termination or “as specified in a contract.”

CSTC-A Combined Security Transition Command-AfghanistanOIG Office of Inspector GeneralRSO Regional Security OfficerPMR Program Management ReviewPMIA Property Management Internal Audit

Reports

Contractual & Regulatory

•The preparation and submission of reports reflecting the status of Government property as required by contract or regulation.

Reports

– SPOT– PMR– CDRLs– Property Losses– Inventory– Other Agencies

Storage & Utilization

• Access/Responsible Personnel • Secured Storage Facilities• Segregation of Property• Documented Transactions i.e. receipts,

disbursements, consumptions, BOH, etc.• Locations

OCONUSStorage & Utilization

OCONUSStorage & Utilization

Maintenance•Preventative

– Access– Resources

•Regular– Obtainable

•Repair– Resources

Subcontract Management•Scope•Purpose/Service Level provided•Oversight Capabilities•Reporting•Accountabilities•Close Out

• Disposals & Close-outs– Property Losses– Obsoleted– Disposals

• PCARSS/DRMO• Destruction• Abandonment• Local Government Donations

– Transfers– Security

CONUS Close-Out Inventory

OCONUS Close-Out Inventory

Questions? Please Contact:

Ron C. Lobo, CPPM CFACADEMI, Government Property Asset

Manager(C) 252.384.3312

rlobo@academi.com