Government Property: The New Hot Button. Robby Ragos CPPA. This Presentation Will Cover. What is Government Property? 5 Classifications of GP Importance of having an approved Property Management System Frequency of a Property Management System Audit (PMSA) Relevant GP FAR and DFARS Clauses.
Robby Ragos CPPA
Could there be a problem?
YES! The USG pays for those tools to be used on that contract, and that contract alone.Raytheon was charged $18 million by the USAF for working on commercial products
Used tools on a separate contract.
FAR 45.101 States:"Government Property means all property 1. OWNED or 2. LEASED to the Government. Government property includes both Government-furnished and Contractor-acquired Property.”
2.“Stuff” the Government LEASES.
The Government leases and then provides/furnishes to the contractor for use (NOT consumption) .
“Wait, the Government doesn’t have title to that stuff while leasing. How can you say it is Government property?”
The Government wants the contractor to MANAGE, CONTROL AND PROTECT that “stuff” in the same fashion as Government property.
If you loaned me a lawn mower to cut my grass, you would want me to take care of that item as if it were my own, right?
Why? Because, the Government has a responsibility to return it to the leasing company.
Speaking of Management and Control…..
…tangible asset that is functionally complete for its intended purpose, durable, nonexpendable, and needed for the performance of a contract.”
So why should I be concerned with having an adequate property system and stay in compliance with DCMA regulations?
VERY Time Consuming and VERY COSTLY !
How frequently SHALL a Government PA perform a PMS audit??
The primary Government Property Clause at 52.245-1 requires the Contractor to develop property management plans, systems, and procedures at the contract, program, site or entity level to enable the ten outcomes/ processes (listed i to x):
Acquisition of Property
Receiving of Government Property
Regardless of $$ value!!!