The New FAR Property Plan

1. The New FAR Property Plan Collaboration is Key 2007 Eastern Region Seminar Pat Jacklets, CPPM, CF

2. Agenda • FAR Requirement • Property Plan - What is it? • Define it! • Capture it! • Implement and Measure • Deliverables for a Successful Property Management Plan

3. FAR Requirement • One Basic Property Clause for all contractor requirements - FAR 52-245-1 • Part 45 is now strictly limited to requirements placed upon the Government • Contractor managed self-assessment programs and property plans for Government property under their control

4. FAR Direction to Government • FAR 45.201 – Solicitation • The solicitation shall include . . . • (c) (4) The voluntary consensus standard or industry leading practices and standards to be used in the management of Government property, or existing property managementplans, methods, practices, or procedures for accounting for property. • FAR 45.202 – Evaluation procedures • The contracting officer shall ensure the offeror’s property management plans, methods, practices, or procedures for accounting for property are consistent with the requirements of the solicitation.

5. FAR Direction to Contractor • FAR 52.245-1 – Government Property • (f)(1) Contractor plans and systems. • Contractors shall establish and implement property management plans, systems, and procedures at the contract, program, site or entity level to enable the following outcomes . . • Acquisition . . .Property Closeout . . . • (g)(1) Systems analysis. • The Government shall have access to the contractor’s premises and all Government property, at reasonable times, for the purposes of reviewing . . .the Contractor’s property management plans . . .

6. Property Plan - What is It? Description of System to Manage Property • Outcomes • Standards Implemented • E2279-03 Standard Practice for Establishing the Guiding Principles of Property Management • E2221-02 Standard Practice for Administrative Control of Property • E2452-05 Standard Practice for Equipment Management Process Maturity (EMPM) Model • Self Assessment • Property Covered • Company Property; Customer Property; All Property

7. OSD View New Process – Relies on Contractor’s own Processes & Procedures – OSD View (T. Ruckdaschel) • Contract • Clause • Acquisition • Receipt • Records • Physical Inventory • Sub-contractor control • Reports • Utilization • Maintenance • Contract close-out See ASTM Standard E-2219 • “Contractors shall develop property management plans and systems, at the contract, program, site or entity level that reflect their efforts to obtain best value” Systems Analysis Systems Analysis Performed by DoD Property Administrator • Performance Outcomes • Data • Elements • See ASTM Standard • 2279-03 • System Corrected, etc. • Based on Voluntary Consensus Standards/Industry Leading Practices for Property Management • CONTRACT PERFORMANCE

8. Define It! • Scope – Applies to What? • Corporation – Sector – Business Area/Unit – Sites • Government Property? Company Property? Subcontractor Property? • Purpose – Why? • Complies with Corporate and Customer Requirements • Sarbanes Oxley; FAR; Prime • Process Ownership – Who?

9. Define It! • Expendable Property - <$5K • Operating Threshold - $5K? • Conforms to Industry Std for managing Expensed and Capital Assets • Meets “Medium” Risk - E2221 • “6.2 Organizations that have inventory variances of between 2% and 5% are defined as “medium risk” under Practice E2131 and should set their control threshold at $5000.00” • Scrap Process • Self Assessment Program • Collaborate with Your Customer!

10. Capture It! • Revise Your Procedures • Example 1: Inventory Outcome • Frequency • Methods • Reporting • Standards • E2132-01 Standard Practice for Physical Inventory of Durable, Moveable Property

11. Capture It! • Example 2: Identification • Part of Receiving Process • Type of Identification • Machine Readable • Linear • 2D Data Matrix • UID Requirement • When is UID applied? • For Shipments only? • For All GFP? • Mil-Std-130 Applies!

12. Capture It! • Example 3: Reporting • Establish processes to enable the following types of reports: • Reports of Discrepancies • Loss, Theft, Damage, and Destruction • Physical Inventory results • Audit and Self-assessment results • Corrective actions • Other contractually required reports

13. Implement and Measure! • Implement Processes • 90% is Probably Already Implemented • 10% Process Changes • Examples: Inventory Methods Control Levels Standards • Measure • Self Assessments • Metrics • Risk Assessment • Strive for Best Value!

14. Deliverables for Successful Property Plan • Write Up of the Plan • Checklist to Identify • Tasks • Documents • Responsible Org/POC • Date Complete • Covers New FAR Requirements; Industry Leading Practices; Voluntary Consensus Standards; IUID Requirements for marking and Reporting on GFP

15. Questions? • References • ASTM Standards Can be found and acquired at www.astm.org • FAQ’s on DoD DPAP website: http://www.acq.osd.mil/dpap/dars/far/attachments/FAQfinal3.pdf • UID Website: www.uniqueid.org • MEV: http://www.acq.osd.mil/me/ • DCMA: www.dcma.mil • AIA: http://www.aia-aerospace.org/library/ebusiness/ebusiness.cfm • WAWF: www.wawf.eb.mil/

16. FAQs on New FAR Rule See FAQ’s 34 through 40 on the Government’s Website: http://www.acq.osd.mil/dpap/dars/far/attachments/FAQfinal3.pdf