2013 NPMA Fall Conference Value Through Professional Asset Management Disposition Process Best Practices Marcia Whitson, CPPM CF Cheri Cross, CPPM CF November 14, 2013

2013 NPMA Fall Conference Value Through Professional Asset Management Disposal Affects Everyone  End-User / Custodian Want it gone!  Laborer’s / Material Clerks / Transporters Minimize loads Ensure it is not hazardous or dangerous  Disposal Personnel What is it? Is it contaminated, hazardous, special?  Management / Company / Agency Keep COSTS low! 2

2013 NPMA Fall Conference Value Through Professional Asset Management Where are Costs?  Manpower Time and effort  Material & Equipment Material for excess preparation Transportation  Cost of Risks

2013 NPMA Fall Conference Value Through Professional Asset Management Let’s review these Costs further…  Manpower End-User  Preparing item for disposal – Required forms, reviews, surveys – Removing data or hazardous items Laborer/Transporter  Picking-up item and loading onto vehicle  Transporting to central location for disposal Disposal personnel  Reviewing items  Screening and documentation for re-utilization, donation or transfer  Preparing for and conducting sales

2013 NPMA Fall Conference Value Through Professional Asset Management Let’s review these Costs further…  Material and Equipment End-User –  Must set aside an area for excess items  Increased control of accountable items Laborer/Transporter  Material handling and personal protective equipment  Vehicle for transportation Disposal personnel  Office equipment  Packaging materials (tie-downs, skids, boxes)  Material handling equipment (hoists, forklifts, pallet jacks)

2013 NPMA Fall Conference Value Through Professional Asset Management Let’s review these Costs further…  Cost of Risks Release of hazardous or contaminated items Release of data (PII, classified, proprietary, etc.) Release of export-controlled items Personnel injuries handling excess items Public injuries while onsite (inspections, sales, etc.) Items stolen, misappropriated or lost Public perception issues

2013 NPMA Fall Conference Value Through Professional Asset Management National Security

2013 NPMA Fall Conference Value Through Professional Asset Management

2013 NPMA Fall Conference Value Through Professional Asset Management

2013 NPMA Fall Conference Value Through Professional Asset Management

2013 NPMA Fall Conference Value Through Professional Asset Management Where is the balance to minimize both risks and costs?

2013 NPMA Fall Conference Value Through Professional Asset Management Automate Excess = Real Savings

2013 NPMA Fall Conference Value Through Professional Asset Management

2013 NPMA Fall Conference Value Through Professional Asset Management

2013 NPMA Fall Conference Value Through Professional Asset Management How Can You Increase Your Excess Process Savings?  Online, user-friendly form  Immediate feed back to end-user for additional actions required prior to excessing  Automatic notifications to other groups with required actions (IT, Radcon, pick-up, etc.)  Immediate inclusion to reuse program (Prop Shop)  Movement and tracking of items is barcode driven Transfer of custodianship upon pick-up Barcode utilized by Disposal personnel throughout process

2013 NPMA Fall Conference Value Through Professional Asset Management Understanding the Value of Reuse  Maximum return on investment – 100%+ Prevents new procurements Saves resources involved in property disposal (movement, sanitization, documentation, etc.)  Immediate availability  Provides excellent opportunities for staff with funding shortages  Shows management how Property Management is “value added”  Re-use is internal and external TREMENDOUS COST SAVINGS TO YOUR ORGANIZATION

2013 NPMA Fall Conference Value Through Professional Asset Management Do you have a Reuse Program?  Two critical steps: Partner with Procurement Organization - Meet with your Procurement Director and propose that internal procedures direct staff to consider excess property prior to purchasing new items User-friendly system for listing and searching internal excess  Automated/on-line screening system  Periodic listing posted/advertised/ ed  Encourage reuse from Excess Warehouse

2013 NPMA Fall Conference Value Through Professional Asset Management Prop Shop Automatically populated with excess items. Easy, thorough search engine to find items.

2013 NPMA Fall Conference Value Through Professional Asset Management Sufficient information for the potential user.

2013 NPMA Fall Conference Value Through Professional Asset Management Property records updated automatically when items are selected for re-use

2013 NPMA Fall Conference Value Through Professional Asset Management Reuse System/Database  Auto Populate - Automated input of excess into a re-use system (e.g., Prop Shop) saves effort  Power search engine - Allows potential users to search for needed items and see pertinent information about the item (description, model, current location, owner, phone)  Auto Transfer – The ability to claim the excess item and generate an automatic transfer to new custodian  Stats – Automatically capturing reuse statistics for reporting purposes How Can You Increase Your Reuse Savings?

2013 NPMA Fall Conference Value Through Professional Asset Management How Can You Increase Your Reuse Savings? Double Handling – If item is re-used, it is transported to the new owner immediately, eliminating transportation to a central warehouse then to the ultimate recipient. Fewer Clearance Reviews – By staying in the company, there may be less requirements for release, such as surveys, and reviews. MATERIALS & EQUIPMENT Disposal cost low – Asset value high LESS RISK Release Concerns – Since item is not being released to the public a decrease in accidental releases of hazardous, data, or other issues. Cost for Disposal – Tremendous savings on cost of disposal.

2013 NPMA Fall Conference Value Through Professional Asset Management How do you handle Donations/Transfers? Prevents new procurements for recipient  May save tax dollars and / or public funding  May provide opportunity to disposition items which are of a special concern (e.g., export-controlled items)  Excellent PR opportunity for your company and agency – Community Relations TREMENDOUS COST SAVINGS TO OTHER ORGANIZATIONS

2013 NPMA Fall Conference Value Through Professional Asset Management How Can You Increase Your Donation/Transfer Savings?  Implement Screening Days – Targeting specific days for screening allows staff to focus efforts  Automate Selection – implement a barcode driven excessing process - like bridal selections at Target  Automate Processing – Downloaded data can be automatically processed through final disposition and generate necessary forms for approval  Statistics - Utilize statistics to report to management and for PR purposes REMEMBER! Transfers can be incoming also!

2013 NPMA Fall Conference Value Through Professional Asset Management EXAMPLE AUTOMATED FORM

2013 NPMA Fall Conference Value Through Professional Asset Management Do You Use Trade-Ins and Exchange-Sales?  Exchange/sale involves one of the following: Exchange (Trade-In) - exchange of an item that is “owned” to a vendor for monetary allowance (credit) towards a similar item Exchange/Sale - selling an item and using the proceeds to obtain a similar item

2013 NPMA Fall Conference Value Through Professional Asset Management How Can You Increase Your Trade-In Savings?  Excellent form of disposal and investment recovery for items that have special concerns or limited market use (little commercial value)  Vendor may offer more on a trade-in when a new item is being purchased  Ability to reduce profit margin  Established market for used equipment

2013 NPMA Fall Conference Value Through Professional Asset Management How Can You Increase Exchange-Sales Savings?  Basically, perform a sale of property using any established, authorized method  Proceeds are segregated and utilized for replacement property  For Federal and Contractor sites, replacement property must be obtained in the same or next FY  An excellent way to improve your equipment at less cost, such as newer vehicles.

2013 NPMA Fall Conference Value Through Professional Asset Management Increase Savings Using Recycling Contracts  Excellent form of disposal/investment recovery for items that have special concerns or a limited market use (little commercial value)  Vendors that are selling an item to a company may have some flexibility in pricing and can offer more for the trade-in than would be gained in sales.  Less risk, as these vendors know this equipment and understand it’s characteristics.

2013 NPMA Fall Conference Value Through Professional Asset Management Other Types of Sales  Live Auctions  Silent Auctions  Internet Sales  Negotiated Sales  Sealed-Bid Sales

2013 NPMA Fall Conference Value Through Professional Asset Management How to Determine Type of Sale  Type of property  Quantity  Condition  Market Area  Location of property  Transportation requirements and handling costs relative to value  Cost of preparing and conducting sale  Past sales experience  Time and space constraints  Cost of sale versus anticipated proceeds

2013 NPMA Fall Conference Value Through Professional Asset Management Feel free to contact us with your questions! Marcia D. Whitson, CPPM CF (865) Cheri L. Cross, CPPM CF (865)