Government Property: The New Hot Button PowerPoint Presentation

Government Property: The New Hot Button PowerPoint Presentation

2016-04-24 91K 91 0 0

Description

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). ID: 291936

Embed code:

Download this presentation



DownloadNote - The PPT/PDF document "Government Property: The New Hot Button" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.

Presentations text content in Government Property: The New Hot Button

Slide1

Government Property: The New Hot Button

Robby Ragos CPPA

Slide2

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

Slide3

DFARS 252.211-7007 Reporting GFE in the DoD IUID Registry

Slide4

Scenario

Joe Snuffy the engineer works at Sikorsky

He uses special test equipment (STE) and special tooling (ST) to work on

DoD

helicopters

Joe then gets assigned to work on a

commercial

contract, and uses the same STE and ST he used on DoD work

Could there be a problem?

Slide5

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.

Slide6

What is Government Property?

I’m often asked “What exactly is GFE, or GFP, or CAP, etc?”Good question!!

Slide7

What are the requirements to call something Government property?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.”

Slide8

DEFINITIONSGovernment Furnished Propertymeans property in the possession of, or directly acquired by, the Government and subsequently furnished to the contractor for performance of a contract.

TITLE ALWAYS

VESTS IN GOVERNMENT

Slide9

Contractor Acquired Property (CAP)means property acquired, fabricated, or otherwise provided by the contractor for performing a contract and to which the Government has title. NOTE: So when you get right down to it…There is either GFP or CAP!!!

Slide10

To give a general illustration:

GFE (Government Furnished Equipment)

Items such as those used for

testing and evaluation

. (All gadgets and widgets engineers use!)

GFM (Government Furnished Material)

Consumable materials

are expected to be consumed or expended during performance. Once consumed, it’s gone.

GFP (Government Furnished Property) regardless of “stuff” being materials or tools, it’s all the same!

Slide11

Government Property

1.“Stuff” the Government owns.

Items to which the Government has clear TITLE

Title evidencing the issue of OWNERSHIP.

Made available to the Contractor for use or consumption in the performance of the contract.

Slide12

Government Property

2.“Stuff” the Government LEASES. The Government leases and then provides/furnishes to the contractor for use (NOT consumption) . Even though it’s LEASED, it’s still GP!.

Slide13

“Wait, the Government doesn’t have title to that stuff while leasing. How can you say it is Government property?”

Slide14

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?

Of course!!!!

Slide15

Why? Because, the Government has a responsibility to return it to the leasing company.

Slide16

Was this managed and controlled properly?

Speaking of Management and Control…..

Slide17

Classes of Government Property

MATERIAL52.245-1(a)45.101

EQUIPMENT52.245-1(a)45.101

SPECIALTOOLING2.101

SPECIALTESTEQUIPMENT2.101

REAL

PROPERTY

52.245-1(a)

45.101

Slide18

Material

Does not include equipment, ST, or STEConsumed, expended, and incorporatedUses a percentage of the remaining balanceNuts, bolts, screws, washers, batteries, gas, silver, paint

Slide19

Special Tooling

Jigs, dies, fixtures, molds, gauges…Specialized natureUsed to the performance of particular services

Slide20

Special Test Equipment

FAR 2.101 “either single or multipurpose integrated test units engineered, designed, fabricated, or modified to accomplish special purpose testing in performing a contract…”

Slide21

Equipment

…tangible asset that is functionally complete for its intended purpose,

durable, nonexpendable, and needed for the performance of a contract.”

Slide22

Real Property

Land, rights in land (Mineral rights or riparian rights, ground improvements), sidewalks, utility distribution systems, and buildings.Pretty simple, right?

Slide23

So why should I be concerned with having an adequate property system and stay in compliance with DCMA regulations?

Slide24

DFARS 252.245-7005 (FEB 2012)

(d)

Significant deficiencies

(e)…

the Contracting Officer

will

withhold 5% of amounts due from progress payments and performance-based payments…

…direct contractor to withhold 5% from its billings on interim cost vouchers on CR, labor-hour, T&M until the CO has determined that the

Ktr

has corrected…

Slide25

Don’t panic!

Steps need to take place before withholds start happeningDCMA CARS Level I-IV

Slide26

6 Business Systems

The USG expects that every responsible contractor has 6 Business Systems that are competent and auditable to be compliant and do business.6 Business Systems:Material Management and Accounting (252.242-7004)Cost Estimating (252.215-7002)Earned Value (252.234-7002)Contractor Purchasing (252.244-7001)Accounting (252.242-7706)Contractor Property Management System (252.245-7003)

Slide27

Importance of an Approved/Adequate Property System

If the Government revokes assumption of risk,

Contractor is accountable and financially liable for ALL lost, damaged, destroyed or stolen property, at FULL cost to the contractor.

VERY Time Consuming and VERY COSTLY !

Slide28

How often does an audit occur?

Slide29

Authority to Audit

The FAR GP Clause 52.245-1(g) provides us detailed guidance as to the Government’s authorities and the contractor’s responsibilities in regard to a PMSA (Property Management System Audit). It says…..

Slide30

Authority to Audit

The Government shall have access to the contractor’s premises and all Government property,

AT REASONABLE TIMES,

for the purposes of reviewing, inspecting and evaluating the Contractor’s property management plan(s), systems, procedures, records, and supporting documentation that pertains to Gov’t property…..

What constitutes reasonable?

Slide31

Authority to Audit

(g) Systems analysis.(2) Records of Government property shall be readily available (Upon request) to authorized Government personnel and shall be appropriately safeguarded.

Slide32

Requirements for Performing Audits

FAR 45.105 address the

GOVERNMENT’S REQUIREMENT

to audit the contractor.

FAR 52.245-1 addresses the CONTRACTOR’S REQUIREMENT to assess their PMS.

How frequently SHALL a Government PA perform a PMS audit??

IT DEPENDS!!

Slide33

Frequency of PMSA

The Risk Assessment and Rating affect how FREQUENTLY the Government PA will perform a PMSA: The type of PMSA they will perform,The Processes subject to review if a PMSA is performed

Slide34

Levels of Risk

High Risk.  

Perform a Standard PMSA at least

annually

until such time as the contractor improves to at least the moderate risk level and the PA determines that the status of the contractor's system justifies a reduced level of oversight.

Moderate Risk. 

Perform a Standard, Limited PMSA or site visit as frequently as conditions warrant, but at least

once every two years

Low Risk. 

Perform a Standard, Limited PMSA or site visit as frequently as conditions warrant, but at least

once every three years

http://guidebook.dcma.mil/34/INDEX.CFM

Slide35

Frequency of PMSA

Criteria for assignment of a risk category may include:Dollar value of Government Property accountable to that contractor (Higher value, higher risk).Historical occurrences of Loss, Theft, Damage, or Destruction.Physical inventory adjustmentsUnauthorized use of Government Property(Scenario 1!)

Slide36

Processes and Outcomes

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 PropertyReceiving of Government PropertyRecordsPhysical InventorySubcontractor ControlReports

Slide37

Processes and Outcomes

Relief of Stewardship Responsibility (Liability)DispositionCannibalizationShippingUtilizationStorageConsumption of MaterialMovementMaintenanceProperty Closeout

Slide38

Acquisition

Far 52.245-1 (f)

(

i

)

Acquisition

of Property. The Contractor shall document that all property was acquired consistent with its engineering, production planning, and material control operations.

Is the

Ktr

following the

PROCESS

for managing the

ACQUISITION

of

PROPERTY

that

IS

or

BECOMES

Government Property??

Slide39

Receiving

Far 52.245-1 (f)

Are you adjusting for overages, shortages, damages/discrepancies discovered upon receipt?

How are you handling hazardous materials?

Properly qualified personnel handling it?

Are you properly documenting all incoming deliveries?

Slide40

Records

FAR 52.245-1(f)Records of Government Property. The Contractor shall create and maintain records of ALL Government property accountable to the contract, including Government-furnished and Contractor-acquired property.

Regardless of $$ value!!!

Slide41

Physical Inventory

Physically locating and counting Government property?Comparing the results to the records?Posting the findings and adjustments?Reporting the adjustments to the PA (ND and DCMA)?

Slide42

Subcontractor Control

Important!!!

The

flow down of proper clauses, provisions, and requirements

, e.g., the requirements of the GP Clause FAR 52.245-1.

Proper liability provisions

- either the FULL risk of loss or the LIMITED risk of loss requirements depending upon the type of contract,

listings of GFP

, etc.

The adequacy of the

prime contractor’s system of surveillance

incorporated in its PMS and applied throughout the life of the subcontract.

Slide43

Relief Stewardship (Liability)

DispositionLTDD(Loss, Theft, Damage, Destruction) incidents been reported IAW 52.245-1?Cannibalization-NOT the eating of human fleshShippingProper paperwork documented? (DD Form 1149)

Slide44

Utilization

Storage

GP separate from

NON

GP??

Adequate facilities? (Temperature, size, security, labeled, etc.)

Consumption-materials

Disclose and report if in excess of contract performance?

Movement

Contractor moving GP that is authorized only under the contract it’s authorized for?

Slide45

Maintenance

Identification, disclosure, and performance of normal and routine preventative maintenance and repair?Disclosure and report to the Property Administrator the need for replacement and/or capital rehabilitationSee the difference?

Slide46

Property Closeout

Reporting, investigating, and securing closure of all LTDD (Loss, Theft, Damage, and Destruction) cases.

Physically inventorying all property upon termination or completion of the contract.

Disposing of items at the time they are determined to be excess to contractual needs.

Slide47

Relevant FAR Property Clauses

9.104-1 (e)

Ktr

must have adequate systems

30.201 Cost Accounting Standards (disclosure statements)

31.201-2, -3 &-4 Determining reasonableness,

allowability

and

allocability

45.104&107 Which property clause to use

52.244-2 Subcontracts (ACO approval requirements to subcontract)

Slide48

Relevant FAR Property Clauses

52.245-1 Limited risk of loss52.245-1 Alt 152.245-9 Use and charges

Slide49

Relevant DFARS Property Clauses

245.107 When to use DFARS property clauses

252.211-7007 Reporting GFE in the DoD IUID Registry

(JANUARY 2014!!!!) Word Document

252.245-7001 Tagging, labeling, and Marking of GFP

252.245-7002 Reporting Loss

of GFP

252.245-7003 Contractor PMS Administration

252.245-7004 Reporting, Reutilization, and Disposal

252.242-7004 Material Management and Accounting System

Slide50

Was this movement done with “law & regs” in mind?

Slide51

Questions????

Slide52

Slide53

Slide54

Slide55

Slide56


About DocSlides
DocSlides allows users to easily upload and share presentations, PDF documents, and images.Share your documents with the world , watch,share and upload any time you want. How can you benefit from using DocSlides? DocSlides consists documents from individuals and organizations on topics ranging from technology and business to travel, health, and education. Find and search for what interests you, and learn from people and more. You can also download DocSlides to read or reference later.