# Presentation: 947210

## The New FAR Property Plan

- Collaboration is Key
- 2007 Eastern Region Seminar
- Pat Jacklets, CPPM, CF

## Agenda

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

**Agenda**

## 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

**FAR Requirement **

**Notes:**
EV

Understand the New FAR that was released on May 15th, 2007!

There were 19 Clauses now just 3:  52.245 -1, -2 and -9

FAR PART 45 – Governments direction

We are going to concentrate on 
45.201(c) (4)
45.202(b)  Pulls in requirement for Prop Mgmt Plans 

52.245-1(f)(1) (f) Contractor plans and systems. (1) Contractors shall 
establish and implement property management plans, systems, and 
procedures at the contract, program, site or entity level to enable 
the following outcomes:

## 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 management*** ***plans***, 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.

**FAR Direction to Government**

**Notes:**
EV

The Government will be looking for us to define what our plan is; VCS’s and ILP’s.

## 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*** . . .

**FAR Direction to Contractor**

**Notes:**
EV

The contract clause is our requirement to perform... 

Need:

Plans, systems and procedures.

Govt – Review our performance to the outcomes

## 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

**Property Plan - What is It? **

**Notes:**
PJ

Start by understanding what a Property Plan is.

Know the outcomes – look at the next chart.

Know the standards

Understand what property is or will be covered by your “PLAN”

## OSD View 

**Systems Analysis**
**Performed by DoD**
**Property Administrator**

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

**Acquisition**
**Receipt**
**Records**
**Physical Inventory**
**Sub-contractor control**
**Reports**
**Utilization**
**Maintenance**
**Contract 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**

**Contract**
**Clause**

**System Corrected, etc.**

**See ASTM Standard **
**2279-03**

**See ASTM Standard E-2219**

- Data
- Elements

**OSD View **

**Notes:**
PJ

This is a notional view that Tom Ruckdaschel put together early in the process of vetting the draft FAR.

Note that he has indicated examples of how this flows:
Contract Award – expectation in the clause
	Reference ASTM Std E2279-03 which is the “Practice for Establishing the Guiding Principles of Property Management”

Refers to the Outcomes described in the 52.245-1 Clause (we’ve added “relief of Stewardship” which is included as an outcome in the Clause.)
	Refers to ASTM Std E2219 – Practice for Management of Moveable, Durable Property”

And finally, the System Analysis, corrective actions, etc.

Really not that much different than you do today....except it has a new wrapper.  That wrapper is your “Property Plan”.

## 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?

**Define It!**

**Notes:**
PJ

Scope – Property currently on hand and FUTURE ACQUISTIONS

Purpose 	-  CONTROL-USE- REPAIR - PRESERVE – PROTECT – 	MAINTAIN
	-  In other words, to comply with the property clause.
	- 
Process Ownership – Cite the Department or Organization Responsible for Property Activities,
	e.g. Property Management Dept.; Asset Management Dept; Contracts Dept; Operations; etc.   This will establish the POC for issues regarding Property!

## 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!

**Define It!**

**Notes:**
PJ

Inventory History:  Use to develop your administrative control threshold based on the ASTM Standard E2221.....  
	Review the Standard
	Review you past history for inventory performance 

This is your opportunity to employ industry leading practices (ILP) and other voluntary consensus standards (VCS)

It is a requirement to identify what practices and standards you are using!
	52.245-1(b)

## Capture It!

- Revise Your Procedures
- Example 1:  Inventory Outcome
- Frequency
- Methods
- Reporting
- Standards
**E2132-01 Standard Practice for Physical Inventory of Durable, Moveable Property**** **

**Capture It!**

**Notes:**
EV

Frequency:

Annual; Biannual: Triannual?

Property Type:  Material; Equipment; (ST/STE/)

## 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!

**Capture It!**

**Notes:**
EV

Part of Receiving Process when looking at DoD Outcomes

Mil-Std-130M applies to UII Labels on property delivered to the Government.  Understand the implication!

	Marking for IUID purposes must meet the Mil-Std-130 requirements
		Durability and Permanency
		Backed by a Process Spec
		Labels or Plates used must be verified and graded 

## 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

**Capture It!**

**Notes:**

EV

DFARS Change is coming.......................

Have you implemented IUID reporting ?
Document the change...............

Have you read the IUID GFP Guide?  Go to www.uniqueid.org

## 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!

**Implement and Measure!**

**Notes:**
EV

You have a Property Control System already!  You are “repackaging” so that you can identify your PCP – Property Control Plan.

## Deliverables for Successful

- 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**

**Notes:**
EV

Know the standards!

There are more than just ASTM Standards.

## 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](http://www.uniqueid.org/)_
- MEV:  _[http://](http://www.acq.osd.mil/me/)__[www.acq.osd.mil](http://www.acq.osd.mil/me/)__[/me/](http://www.acq.osd.mil/me/)_
- DCMA:  _[www.dcma.mil](http://www.dcma.mil/)_
- AIA:  _[http://www.aia-aerospace.org/library/ebusiness/ebusiness.cfm](http://www.aia-aerospace.org/library/ebusiness/ebusiness.cfm)_
- WAWF:   _[www.wawf.eb.mil](http://www.wawf.eb.mil/)__[/](http://www.wawf.eb.mil/)_

**Questions?**

**Notes:**
CHECKLIST?????

## 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

**FAQs on New FAR Rule**

**Notes:**
CHECKLIST?????