Cross-Functional Teaming - ncmahq.org · Cross-Functional Teaming: Contract Property ... • If the overall system is at risk of being found non-compliant, the O issues an “Initial”

Cross-Functional Teaming: Contract Property Touchpoints

Breakout Session #A06Edwin Hoenig – Property Team Supervisor DCMA-AQBYOLuke Wayne – Plant Clearance Team Supervisor DCMA-AQBPE

December 4, 2017 10:00am – 11:15am

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Workshop Objectives

• Business Capabilities Framework• Overview

• How/Where do Property/Plant Clearance Fit?

• Property Administration Touchpoints• Processes

• Actors/Transactions/Outcomes

• Plant Clearance Touchpoints• Processes

• Actors/Transactions/Outcomes

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DCMA's capability framework is a set of high level contractmanagement functions that underpin the Agency's strategic plan and capture the results of the daily, multi-functional activities of our personnel in order to provide actionable insight to the Defense Acquisition Enterprise.

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Four Key Initiatives:

•Maintain functional expertise with multifunctional execution•Separate policy from procedure•Establish value through a capabilities-based approach•Govern the Machine

Leadership Engagement

• Transition from Lines of Service to Business Capabilities• Get the message to the workforce• Create a multi-functional environment• Begin reporting activities as they are associated with Business

Capabilities• Assess the ROI of products that support the acquisition enterprise• Adjust organizational and individual performance measures to

reflect the alignment to Business Capabilities

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The Primary Capabilities are the key mission elements that provide

value. Each requires all job series, and all mission organizations to participate

and share information related to administrating existing and future

contracts

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Contract Property Touchpoints

Contractor Effectiveness

Contract Maintenance

Product Acceptance and Proper Payment

• MRB Scrap (product reject)

• Cancelling Funds (product acceptance)

• Contractor Inventory Disposal

• Contract Closeout• Contract Termination

• Property Management System Analysis

• MMAS and Utilization Audits

• Subcontract Control

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Contract Property Touchpoints

Touchpoint:

An encounter where customers and business engage to exchange information, provide service, or handle transactions. For example, in retail banking the touchpoints include tellers and ATMs.

Actors Transaction Outcome

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The DCMA Property Group by the Numbers

• DCMA administers approximately 340K contracts

• Only 5%, 16,544, are contracts with GP (MOCAS Spec Prov Code E)

• The 16,544 contracts are with 2,169 contractors.

• DCMA has about 230 Property Administrators (PA)• Mostly Itinerant PAs• Some Resident PAs

• Of our 5% (16K) there are about 3% (2K) in closeout

• Of the 3% (2K) in closeout, 2% (264) delayed due to Property

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Property Administration Overview

Mission: The DCMA Property Group is DoD’s subject

matter expert for Contract Property Administration,

around the world. The DCMA Property Group

provides surveillance/oversight to ensure contractors

are providing effective and efficient stewardship of

the Government property in their custody; therefore,

assuring its availability for contract performance,

reducing the risk to our customers, and fulfilling

supporting mission requirements.

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Property Administration Overview

• There are four core tasks a DCMA Property Administrator (PA) performs: • Contract Maintenance

• Contract Receipt and Review • Property Loss Cases• Contract Property Closeout

• Contractor Performance• Property Management System Analysis (PMSA)

• Additionally we can be asked to support:• MMAS Reviews - DCAA driven• Verification of Plant Clearance submissions

• We don’t do customer requested inventories.• We don’t update the services’ records• We don’t sign for things• We have no role to play in transfers, but can be

asked to support complex transfers

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Deciding to Furnish GP or Not

• PGI 245.103-70 Furnishing Government Property to Contractors• The requiring activity (project or program

Manager) is the decision point• Decision must be documented, to the PCO

• The PCO ensures: • In the Government’s best interest

• Economy, standardization, security, expedite production, scarcity, maintain the industrial base, contract type

• Overall benefit must outweigh cost of admin and disposal?

• Gov assumption of risk • Discussed and documented

• Gov requirements can not otherwise be met.

Actors:Program

Manager, PCO

Transaction:Justify need for

GFP

Outcome:Documented Justifications

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Property Management System Analysis (PMSA)

• Government Property Clause – FAR 52.245-1(f) requires contractors to have “plans and systems” to manage Government property in their possession

• Risk Based Surveillance. PMSAs are performed on an Annual, Biennial, or Triennial basis, depending on risk and secondary factors

• The goal of the PMSA is to determine compliance with the 10 Outcomes described in FAR 52.245-1(f) (i) through (x)

• The PMSA Audit Report is the driver behind the Property Management Business System Assessment Summary (BSAS), given to the cognizant CO

Actors:KTR, PA, CO

Transaction:FAR 52.245-1 Compliance

Outcome:BSAS to

Cognizant CO

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PMSA Continued• DCMA has broken out the 10 Outcomes listed

in FAR 52.245-1(f) (i)-(x) into 22 Elements.

Actors:KTR, PA, CO

Transaction:FAR 52.245-1

Outcome:BSAS to

Cognizant CO

• Written Procedures• Contractor Self

Assessment• Acquisition• Receiving• Discrepancies

Incident to Shipment

• Identification• Records• Receipt and Issue

System• Physical Inventory• Subcontractor

Awards and Flow Down

• Subcontractor Reviews

• Reports• Relief of

Stewardship• Utilization• Declaration of

Excess• Consumption• Movement• Storage• Storage

Commingling• Maintenance• Disposal• Property Closeout

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PMSA Continued“Why We Do Site Visits”

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PMSA Continued• The PA can perform an on-site Standard PMSA

or a Limited PMSA (a.k.a. Desk Audit).

• Compliant vs Non-Compliant• There is an overall result for the system• There are sub-element results• CARs are issued for non-compliances if not

corrected on the spot.

• CARs and Re-Analysis• A PA can issue a Level I or II CAR for sub-

element non-compliance. • If the PA is recommending that the CO

should consider the overall system to be non-compliant then a Level III is drafted and sent to the CO.

• A Re-Analysis could be on-site or not. It could also be incorporated into the following year’s PMSA.

Actors:KTR, PA, CO


Outcome:BSAS to

Cognizant CO

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PMSA Continued - Timeline• Oct 1st, Internal DCMA FY PMSA schedule created• PA issues a 30-Day Notice to the contractor 30 days

prior to an on-site Standard PMSA • The PMSA is performed• Within 30 days the PA:

• Completes the PMSA Audit Report• Issues Level I or II CARs if needed• Submits a BSAS to the Cognizant CO

• Within 10 days more the CO:• Issues a Determination Letter and updates

CBAR or…

• If the overall system is at risk of being found non-compliant, the CO issues an “Initial” Determination (with Draft Level III CAR) within 10 days and requests a contractor response within 30 days

• If significant deficiencies persist, the CO can disapprove the system and seek remedies in accordance with the Business System clause, DFARS 252.242-7005

Actors:KTR, PA, CO


Outcome:BSAS to

Cognizant CO

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Property Loss Cases• The U.S. Government is a self insurer.

• We do this because we are so large.• We do this to save money, disallowing the

cost of commercial insurance contractors may have.

• We offer Relief of Liability to contactors conditionally.• If they have other insurance or are

otherwise compensated, they must reimburse the government.

• There must not be “willful misconduct or lack of good faith on the part of managerial personnel.”

• Must not have a disapproved Property Management System.

• PAs give relief, COs hold liable.

Actors:KTR, PA, CO

Transaction:Report of LTDD

Outcome:Relief of

Liability or Not

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Property Loss Continued• Property Loss used to be described by the

acronym LTDD, which stood for the Loss, Theft, Damage, and Destruction (LTDD)

• “The contractor shall have a process to enable the prompt recognition, investigation, disclosure and reporting of loss of Government Property.” This is spelled out in 52.245-1(f)(vii) Relief of stewardship responsibility and liability

• Contractors are required to use the Property Loss Etool. PA assistance might be required

• Each report must includes lots of mandatory information about the incident, including• Root cause analysis• Corrective actions taken• An assessment of continued need

Actors:KTR, PA

Transaction:Report of LTDD

Outcome:Relief of

Liability or Not

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Property Loss GFR Clause • The Ground Flight Risk clause, DFARS 252.228-

7001 has unique liability requirements that pertain to and prevail in cases of loss, damage, or destruction of aircraft that occurs • “in the open,” • during “operation”, • and “in flight.”

• Reporting is different. DoD Instruction 6055.07 Mishap Notification, Investigation, Reporting, and Record Keeping” is used in lieu of the Property Loss Etool.

• The Government Flight Representative is responsible for making liability recommendation to the ACO for all incidents involving loss of Government aircraft when DFARS 252.228-7001 is in the contract.

Actors:KTR, Gov Flt

Rep, CO

Transaction:GFR Report and

Assessment

Outcome:Relief of

Liability or Not

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Contract Property Closeout• There are lots of ways to dispose of residual

property on a contract. • The CO can make targeted transfers of

items of property.• Other contracts• Other units/organizations

• With PCO/PLCO permission, the contractor can buy back unused material.

• The PLCO has options the CO doesn’t, beyond targeted transfers for reutilization, which Luke will talk about in detail.

• The PA can not direct the contractor to do anything with the property.

• The PA has the final step of “Perform (MOCAS) Property Administration Contract Closeout.”

Actors:KTR, CO, PLCO,

PA

Transaction: Disposition of Residual GP

Outcome:R-9 55 Code in

MOCAS

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Contract Property Closeout Steps

• At the end of the contract, the contractor performs a final physical inventory of GP on the contract.

• Submits Property Loss cases, if needed, to the PA.

• Notifies the ACO via email of property required on another contract. Simultaneously reporting the same list as a case in PCARSS.

• Reports remaining property items in a separate case in PCARSS Etool to the PLCO for disposition instructions.

• After all Property Loss and PCARSS cases have been closed, the contractor submits a Property Closeout Letter to the PA declaring that no more property remains on that contract.

• The PA enters the R-9 55 Code in MOCAS, typically using the CPAS Etool interface.

Actors:KTR, CO, PLCO,

PA



MOCAS

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Contract Property Closeout Continued

• Causes for contracts being Over-Age due to Property. • It happens, but is not statistically

significant.

• Most often due to decisions made by the Program Office. • They tell the contractor to wait.

• They are aware of a future contract that will need the GP.

• The are unsure about the future.

• What property is normally on the Over-Age list? Expensive reusable uniquely military property

• Most contractors don’t charge for storage, but they could.

Actors:KTR, CO, PM,

PCO, PLCO, PA



MOCAS

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Plant Clearance Overview

Mission:

Provide timely and cost effective reutilization,

sale and disposal of excess government property in

the possession of contractors.

FY 17 by the Numbers

• 13,202 cases processed totaling $3.8 billion in acquisition cost• Over 115,000 line items demilitarized, a sum of $1.7 billion• $1.8 billion reported in useable condition property• $743 million reutilized for future use. 41% Reutilization rate• $3.4 million in sales proceeds

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Disposition Lifecycle

In-Use

Sale

Donation SalesExcess

Disposal at any stage: Non-federal transfers; Abandoned/Destroyed; and Lost

Stage of Asset Life Cycle

Acquisition

(Source of Chart: Robert Holcomb, NPMA NES Presentation)

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PCARSSPlant Clearance Automated Reutilization Screening System

1. Contractor Submission of

GFP/CAP to PCARSS

2. PLCO Reviews, Accepts and

Screens

3. PLCO Issues Disposition

4. KTR completes action(s) and submits docs

5. PLCO reconciles, closes and maintains file

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Inventory Submission• Government Property Clause – FAR 52.245-1(j)

requires submittal of inventory schedules by contractors listing government property excess to their contracts

• Prior to submission the KTR shall internally screen for reuse within their DoD contracts. Best practice is also to prescreen with PCO/Program Office

• FAR 52.245-1(j)(3) – Submission Requirements• 30 days following contractor

determination item is no longer needed• 60 days following completion of deliveries

or services• 120 days following contract termination

(partial or complete)

Actors:KTR, PCO, PLCO

Transaction:Notice of Excess

Outcome:SF1428/PCARSS

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PLCO Review, Accept, and Screen

• PLCO has 10 days to review and accept or reject the schedules per FAR 45.602-1

• Screening of excess property is based on –Type of property (EQ,M, ST, STE)Condition of propertyAcquisitioncost of property

• Standard Screening Timeframes (FAR 45.602-3) –0-20 days screen with Owning Activity and other DoD Agencies21-46 days screen with GSA for Federal Agencies and Donation

• Normally no screening for scrap condition items except scrap aircraft must be screened with GSA (26 days)

Actors:PLCO, PCO, PM

Transaction:Excess Property

Review

Outcome:Reutilization(ROI)

or Clearance to Dispose

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PLCO Issues Disposition Instructions

Actors:PLCO, KTR,

Sub-KTR

Transaction:Flow-down of Instructions

Outcome:Letter of

Instruction < 120 Days

• PLCO must provide disposition instructions to the contractor within 120 days after receipt of inventory schedule IAW the reutilization priorities found in FAR 45.602-2

• Transfer within the Owning Activity or other Federal agency

• Transfer of educationally useful equipment to schools and nonprofit orgs (E.O.12999 & Stevenson-WydlerAct)

• Donation to eligible parties via GSA• Demilitarization• Sales• Scrap• Abandon

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Disposition Completion (Transfer)

• Transfer within the Government –• Requisition received from screening

agency• Owning Agency• Other DoD Activities• Federal Agencies (via GSA)

• PLCO forwards requisition to the contractor

• Contractor prepares items for shipment and transfers in accordance with PLCO direction

• Donations –• Requisition received from GSA to

donate property to eligible donee• PLCO forwards requisition to the

contractor• Contractor prepares items for

shipment and transfers in accordance with PLCO direction

Actors:KTR, Sub-KTR,

Donee, TO

Transaction:Transfer of Title

Outcome:DD1149, SF97

Note: This does not involve a CONTRACT transfer. Only a SF30 can transfer property from one contract to another.

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Disposition Completion (Demilitarization)

• Demilitarization• PLCO directs contractor to demil items

with assigned demil code other than A, B, or Q

• Contractor performs the required demil• Removal/Destruction of Key Points (C)• Total Destruction of Item (D)• Item Manager Direction (E)• Special instructions HAZ (F)• Neutralization of AA&E (G)• Declassification from Original

Classification Authority (P)

• Government witness/certification required when contractor performs the demil

Actors:KTR, Sub-KTR, Vendor, Gov’t Rep, ACO, PCO

Transaction:Destruction and

disposal of sensitive items

Outcome:Demil Cert,

Declass Cert, DD1639, DD1348

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Antiquated training gear “drop-shipped” to contractor as GFP.Demil D

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RQ-15 Neptune TerminationDemil A, B, D

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Aircraft Maintenance ScaffoldingDemil A

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Grumman C-2A GreyhoundDemil C

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Aircraft Ground Maintenance CartsDemil A

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Disposition Completion (Sales)

• Sales (four types) –• Formal Sale• Informal Sale• Negotiated Sale• Auction Sale

• PLCO determines items to be sold

• Contractor conducts the sale based on PLCO direction

• Proceeds collected by PLCO shall be applied IAW FAR 45.604-3:• Contract• Termination• US Treasury Miscellaneous Receipts


PLCO, Sale Vendor, Awardee

Transaction:Efficient Sale of Surplus Gov’t

Property

Outcome:Proceeds ROI,

DD1149

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Negotiated SalesFAR 52.245-1 (j)(2) Inventory Disposal Schedules

(ii) The Contractor may annotate inventory disposal schedules to identify property the Contractor wishes to purchase from the Government, in the event that the property is offered for sale.

• Two types of Contractor Inventory:

1.) Government Furnished Property (GFP)

2.) Contractor Acquired Property (CAP)

• The offer will only by heard by the PLCO when screening is complete. (20-46 days depending on property type and condition)

Note: CAP can be re-purchased at full acquisition cost to avoid the screening period and potential loss to intragovernmental transfer or requisition.

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Negotiated Sales• A Contractor may make an offer to purchase on each

type of property prior to disposition instructions being issued

• There is no guarantee an offer will be accepted

• It is a negotiation

Ways to pay:

• Credit to the contract (via PCO/ACO discretion)• Certified Bank Check/ Money Order made out to

U.S. Treasury sent to PLCO

• Credit Card, ACH withdraw, PayPal, Etc.

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Disposition Completion (Scrap)

• Scrap

• PLCO directs contractor to dispose of items via their approved scrap procedure

• Scrap items from all contracts are co-mingled

• Proceeds credited to overhead in accordance with the contractor’s procedure


Vendor

Transaction:Efficient Sale of Scrap Surplus

Gov’t Property

Outcome:Proceeds,

DD1639 Scrap Warranty

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Disposition Completion (Abandonment)

• Abandonment

• PLCO abandons items that have no sale potential or scrap value to the contractor IAW FAR 52.245-1(k)

• Cannot abandon hazardous or sensitive items without contractor consent

Actors:KTR, Sub-KTR

Transaction:Unilateral or

Bilateral Transfer of Title

Outcome:DD1149, signed

acceptance

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• Contractor completes disposition

• PLCO closes plant clearance case and forwards completed file to the Contracting Officer for incorporation with contract files • ACO - in house contract

• TCO - termination

• Referring PLCO - delegation

• PLCO creates electronic case file and uploads the documents directly into IWMS for retention

Actors:PLCO(s), ACO, TCO

Transaction:Closure and Retention

Outcome:SF1424,

electronic case file

Plant Clearance Case Closure

Contact InformationEdwin HoenigTeam Supervisor, DCMA-AQBYOProperty Administration International Team(804) [email protected]

Luke WayneTeam Supervisor, DCMA-AQBPPlant Clearance International Team(407) [email protected]

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Cross-Functional Teaming - ncmahq.org · Cross-Functional Teaming: Contract Property ... • If the overall system is at risk of being found non-compliant, the O issues an “Initial”

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