Property Administration (PA) Cannibalization of Government Property Presented By: Mr. Ed Hoenig 18 May 2011 Revision #, Date (of revision)

Property Administration (PA) Terminal Learning Objective (TLO): Recognize what cannibalization of Government Property is, why it is allowed, and who is responsible for approving it. Enabling Learning Objectives (ELO): ELO #1 – Define cannibalization of government property. ELO#2 – Recognize the benefits to cannibalizing government property in a contingency environment. Describe the roles of other individuals and organizations that may have responsibility for property other than the PA. ELO#3 – Describe the roles and responsibilities of the GPA and the ACO as it relates to the cannibalization of government property. Learning Point for this slide is: Self explanatory 2 3/31/2017

Property Administration (PA) Definition of Cannibalization 52.245-1  Government Property (a) Definitions. As used in this clause— Cannibalize” means to remove parts from Government property for use or for installation on other Government property Learning Point for this slide is: Cannibalization is to remove serviceable parts from (damaged airplanes, for example) for use in the repair of other equipment. …This! ..This ! From This to….. 3 3/31/2017

Property Administration (PA) Why Cannibalize Government Property? Cannibalization is normally authorized for property that is Beyond Economical Repair (BER) Cannibalization may be authorized in situations based on criticality or urgency of need Parts removed that are not used immediately are to be recorded and properly stored in accordance with the contractor’s Property Management System (PMS) Residual property resulting from cannibalization MUST be placed into disposal process by the contractor Learning Points for this slide are: Cannibalization is normally authorized for assets that are Beyond Economical Repair Candidates for cannibalization maybe come from damaged/destroyed property or Fear Wear and Tear Items Cannibalization is based on need or urgency Parts removed from assets cannibalized are usually consumed immediately Parts not used immediately need to be recorded in the contractor’s property control records. After assets are cannibalized the reminding residual property must be disposed of IAW the contractor’s procedures for disposal of Government Property Candidate for DRMO 4 3/31/2017

Property Administration (PA) What is the benefit of Cannibalizing Government Property? The benefits of cannibalizing government property in a contingency environment are: Cost savings/avoidance measure Keeps mission rolling forward in the absence of spare parts availability. Learning Point for this slide is: Cannibalization is a cost savings/avoidance measure not just in terms of money but time as well it may keep a mission going while waiting for spare parts. “Forward Ho” 5 3/31/2017

Property Administration (PA) Roles and Responsibilities Property Administrator Reviews the contractor’s request to cannibalize government property to ensure: That the item being cannibalized is in fact not useable for its intended purpose Determine how the assets got into that condition i.e. as a result of an LTDD, fair wear and tear etc. Contracting Officer (KO) or ACO ALL CANNIBALIZATION ACTIONS MUST BE AUTHORIZED BY THE CONTRACTING OFFICER PRIOR TO THE ACT Learning Points for this slide are: The Property Administrator’s role and the KO/ACO Role PA reviews documentation and records for adequacy KO/ACO approve contractor requests for cannibalizing government property is to review the request for cannibalization to ensure: Asset can no longer be used for intended purposed i.e. Vehicle damaged to the point it will no longer operate as a vehicle only value is parts to keep other vehicles running. Ensure that the reason the assets got into a BER condition is well documented i.e. LTDD or FWT The request is forwarded to the KO for approval Cannibalization can only be approved by the KO/ACO 6 3/31/2017

Property Administration (PA) Lesson Summary Definition of Cannibalization Government Furnished Property : To take parts from something, especially a machine, in order to use them elsewhere. The benefits to cannibalizing government property in a contingency environment: Cost savings/avoidance measure Keeps mission rolling forward in the absence of spare parts availability. The roles and responsibilities of the GPA and the ACO (as it relates to the cannibalization of government property): PA reviews documentation and records for adequacy KO/ACO approve contractor requests for cannibalizing government property. Learning Point for this slide is: Re enforcement of Lesson objectives Review lessons learned with students Answer any questions students may still have 7 3/31/2017

Property Administration (PA) TEST TIME! Circle your answer for each test item. The test is student graded (trade/pass to your nearest student). correct answers. “X” incorrect answers. All tests are collected at the end of the lesson. Learning Points for this slide are: Make sure students understand that test is just to gage if they have grasp the learning objective Grades are not recorded for or against them Administer the test and go over the answers with students Provide any necessary additional help clarifications to students needing it. 8 3/31/2017

Property Administration (PA) 1. Requests to cannibalize government property are authorized only by the commander of a military unit? (True/False) False 2. Under no circumstances can government property be cannibalized ? True/False) 3. Cannibalization is normally authorized for property that is Beyond Economical Repair (BER)? True 4. Generally parts removed through the cannibalization process are for immediate use on repair efforts? True/False 9 3/31/2017

Property Administration (PA) 5. Residual property resulting from cannibalization should not be placed into the disposal process by the contractor (True/False) False 6. The benefits to cannibalizing government property in a contingency environment are: Cost savings/avoidance measure Keeps mission rolling forward in the absence of spare parts availability. Both of the above C. Both of the above 10 3/31/2017