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

The New FAR Property Plan

Collaboration is Key

2007 Eastern Region Seminar

Pat Jacklets, CPPM, CF

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

Agenda

• 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

FAR Requirement

• FAR 45.201 – SolicitationThe 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 management plans, methods, practices, or procedures for accounting for property.

• FAR 45.202 – Evaluation procedures(b) 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.

FAR Direction to Government

• 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 . . .

FAR Direction to Contractor

Description of System to Manage PropertyOutcomesStandards Implemented

E2279-03 Standard Practice for Establishing the Guiding Principles of Property ManagementE2221-02 Standard Practice for Administrative Control of PropertyE2452-05 Standard Practice for Equipment Management Process Maturity (EMPM) Model

Self AssessmentProperty CoveredCompany Property; Customer Property; All Property

Property Plan - What is It?

Systems AnalysisPerformed by DoDProperty Administrator

New Process – Relies on Contractor’s own Processes & Procedures – OSD View (T. Ruckdaschel)

AcquisitionReceiptRecordsPhysical InventorySub-contractor controlReportsUtilizationMaintenanceContract close-out

“Contractors shall develop property management plans and systems, at the contract, program, site or entity level that reflect their efforts to obtain best value”

Performance Outcomes

Based on Voluntary Consensus Standards/Industry Leading Practices for Property Management

Systems Analysis

CONTRACT PERFORMANCE

ContractClause

System Corrected, etc.See ASTM Standard 2279-03

See ASTM Standard E-2219

DataElements

OSD View

Scope – Applies to What? Corporation – Sector – Business Area/Unit – SitesGovernment Property? Company Property? Subcontractor Property?

Purpose – Why?Complies with Corporate and Customer RequirementsSarbanes Oxley; FAR; Prime

Process Ownership – Who?

Define It!

Expendable Property - <$5KOperating 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 ProcessSelf Assessment ProgramCollaborate with Your Customer!

Define It!

Revise Your Procedures

Example 1: Inventory OutcomeFrequencyMethodsReportingStandards

E2132-01 Standard Practice for Physical Inventory of Durable, Moveable Property

Capture It!

Example 2: Identification Part of Receiving ProcessType of IdentificationMachine Readable

Linear2D Data MatrixUID Requirement

When is UID applied?For Shipments only?For All GFP?Mil-Std-130 Applies!

Capture It!

Example 3: Reporting

Establish processes to enable the following types of reports:

Reports of DiscrepanciesLoss, Theft, Damage, and DestructionPhysical Inventory resultsAudit and Self-assessment resultsCorrective actionsOther contractually required reports

Capture It!

Implement Processes90% is Probably Already Implemented10% Process ChangesExamples:

Inventory MethodsControl LevelsStandards

MeasureSelf AssessmentsMetricsRisk Assessment

Strive for Best Value!

Implement and Measure!

• 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

Deliverables for Successful Property Plan

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/

Questions?

See FAQ’s 34 through 40 on the Government’s Website:

http://www.acq.osd.mil/dpap/dars/far/attachments/FAQfinal3.pdf

FAQs on New FAR Rule