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Improving Property Management. By Veeral Majmudar ICPM Quarterly Meeting October 25 th , 2007. A Case Study in Property Management Program Improvement. Introduction. Veeral Majmudar President, The Savan Group ( ) Management Consulting Firm (Arlington, VA)

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Improving Property Management

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Improving Property Management

By Veeral Majmudar

ICPM Quarterly Meeting

October 25th, 2007

A Case Study in Property Management Program Improvement


  • Veeral Majmudar

    • President, The Savan Group (

      • Management Consulting Firm (Arlington, VA)

      • Federal & Private Sector Clients

      • 8A Certification Pending

      • Primary Focus Areas: Asset Management

  • Guest Speaker at Agency property conferences

  • NPMA Member

Why am I speaking today?

Through my experience…

I learned property management is a critical but undervalued area

I realized there are better ways to manage assets.

I wanted to help people maximize their resources

I wanted to share my experience with others

Why improve property management practices?

Increased management and oversight of property assets could save hundreds of millions of dollars.

- General Accounting Office, 2004

Other questions we all should be asking ourselves…

Do you have asset visibility across systems and processes?

Do you have objective identification of compliance and performance indicators?

Do you have information forensics for auditing the supply chain?

Do you have a risk mitigation plan?

…and as if that wasn’t enough…

There are numerous drivers for improvement

Federal Regulations dictate many of the improvements in asset management

Proper use of taxpayer dollars

President’s Management Agenda Executive Scorecards

GAO Audits of the Property Management Program has occurred at eight agencies in the last 10 years

Potential for Bad Press Coverage

Agency response is key to property program success

Ensuring financial & physical accountability through effective operational oversight

Ensuring cost-efficient use of personal and real property through effective information sharing and training

Removing procurement duplication to avoid unnecessary spending of tax dollars

Mitigating audit risks from internal (IG) and external parties (GAO) through site reviews & audits

Case Study: Agency Property Management

Agency personal property program: Decentralized

  • One Agency Property Management Officer

  • Many Accountable Areas (AA), each consisting of the following:

    • Property Management Officer (PMO)

    • Property Accountable Officer (PAO)

    • Property Utilization Officer (PUO)

    • Multiple Custodial Officers (CO)

    • Board of Survey

  • 25,000 pieces of property (~$400 MM)

Drivers: Several Outstanding Issues

Lack of oversight, guidance, and accountability

Out-dated policy and procedures

Unaccounted for personal property

Insufficient training programs and materials

Inconsistent inventory reporting

Lack of uniform system applications

Lack of internal review/audit programs

Response: Develop four focus areas of improvement

I. Policy and Regulations

Establish a clear and direct policy on agency-specific personal property management in accordance with the federal regulations

II. Learning and Growth

Establish training programs to ensure all property officers are equipped to successfully implement their responsibilities

III. Information Systems

Ensure information systems support property management needs and meet federal requirements for tracking of personal property

IV. Inventory Control

Certify agency property accountability. Maintain an internal audit program that uses systemic control techniques necessary to ensure a clean audit opinion and asset accountability as required by law

Focus Area #1: Policy & Procedures

Focus Area #2: Learning & Growth

Property Pamphlet

Focus Area #3: Information Systems

Property Management System

Focus Area #4: Inventory Control

Inventory Process Map

What was the end result?

Twenty-nine new or revised initiatives

Reduced management cost by 25%

Streamlined operational process

Increased proper disposal of excess inventory by 20%

Improved communication and training programs

Received public recognition from senior level Agency directors and officials

Opportunities exist to parlay the success to other agencies…

Improve your current business processes

Mitigate potential risk of audits

Improve lifecycle management of assets

Enhance training of employees and contractors

Properly utilize available technology to better management property

Before you do anything, however…

  • You must develop a clear, concise, and measurable statement work

  • The problem:

    • Agencies cannot articulate many of the critical details of a solution until they have reviewed the contractor’s proposals

Common mistakes on property specific SOWs

  • Lack of specifics

    • Inconsistency of requirements

    • Vagueness

  • Lack of accuracy

    • Calling a requirement by different names

    • Conflicting or unreasonable time schedules

    • Incomplete description of requirement

  • Lack of performance measures

    • Inventory accuracy improvement rates

    • Loss rates

Importance of an good SOW

To establish performance standards and a contractual baseline

To provide the contractor with a basis of estimate

To communicate effectively

1. Establish performance measures for contractors to use

2. Provide contractor with a basis of estimate

  • Contractors develop cost estimates based on work description in the SOW

  • Provide detailed descriptions of tasks requirements and specific deliverables

  • Request a WBS (work breakdown schedule)

    • Outlines resource allocation for requirement

    • Outlines level of effort in dollars and hours

3. Communicate effectively

  • SOW is ultimately a vehicle for communication

  • It must be understood by all personnel involved in the solicitation process

    • Contractors, legal & technical personnel, accountants, etc.

  • Request a oral presentation on project plan once proposals have been received from potential contractors to ensure consistency with SOW.

The End

Contact Info:

Veeral Majmudar

Savan Group

(571) 527.0901


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