Managing Government and Contractor Owned Assets at an OCONUS Location Ron C. Lobo, CPPM CF

Many Contractors must provide a process and methodology for accounting/controlling Government owned Property at various OCONUS sites around the world. Most of these sites are considered austere in nature and can present quite a challenge in managing the property. Let’s spend a few minutes talking about the logistics of such a monumental task as well as the complications that can arise throughout the process. We’ll use the “ten outcomes” of Property management as our guide for discussing the particulars.

Presentation Objectives: Discuss Elements of Procedure & Processes for: Authorization & Consent CAP/GFP Shipments & Risk CAP/GFP Receipts & Identification Records Inventories/Self-Audits Relief Of Stewardship Reports Storage & Utilization Maintenance Subcontract Management Disposal/Close-outs In an OCONUS Environment

Authorization & Consent – Contract Agreements Statement Of Work (SOW) – Regulations FAR Clauses Agency Supplement Regulations Publications/Instructions – Statutory Requirements US Laws, Customs & Agreements Host Country Local Laws & Customs

CAP/GFP OCONUS Shipments & Risk – US Export Control (Licenses, Agreement, Authorities) – Host Country Local Laws & Customs – Shipping methodologies/restrictions – Risk Mitigation Corruption Environment Security

OCONUS Shipment

OCONUS Shipments

OCONUS Shipment Risk Probability Criticality Risk Mitigation Reevaluate events and ID new Risk Monitor Activities Consequences

CAP/GFP Receipts & Identification Receipt of GFP & CAP – Matching types and quantities to shipment – Management of any discrepancies incident to shipment – Recording of information necessary to meet the record requirements Identifying GFP & CAP as Government Owned – Stamp, tag, mark, or other identification as required

OCONUS Receiving Area

CONUS Receiving Area

Records – The Contractor shall have a process to create & provide reports of discrepancies; LTDD, Physical Inventory results, Audits & Self-Assessments, Corrective Actions, & other property related reports as directed by the Contract and/or Applicable Regulations – Due to OCONUS environment and conditions Recording Methodologies will vary. Manual (Property Books, Excel files, Etc.) Computerized (Local PC program, WEB Based application)

Elements of a Record “ Property records shall enable a complete, current, auditable record of ALL transactions!” The name, part number and description, National Stock Number Unique-item identifier or equivalent (if available and necessary for individual item tracking). Data elements as necessary and required in accordance with the terms and conditions of the contract. Quantity received, issued, and BOH. Unit acquisition cost/UOM/Location/Disposition. Contract number or equivalent code designation. Posting reference and date of transaction.

Records

Relief Of Stewardship The Contractor shall have a process to enable the prompt recognition, investigation, disclosure and reporting of loss of Government property, including losses that occur at subcontractor or alternate site locations. Date of incident (if known). A statement indicating current or future need. Estimated repair or replacement costs. All known interests in commingled material of which includes Government material. Cause and corrective action taken or to be taken to prevent recurrence and last known location.

Relief Of Stewardship

Physical Inventories & Audits – Cyclic Contract Driven Regulatory – Non-Cyclic ITAR/Etc. AES Hazmats Host Country Customs

Physical Inventories/Audits The FAR said….. – The Contractor shall periodically perform, record, and disclose physical inventory results. A final physical inventory shall be performed upon contract completion or termination. A SOP should include………… – A process for physically locating and counting Government property and comparing it to records of such property, including the posting of findings and adjustments and the reporting of adjustments to the Customer. Outcomes should demonstrate processes that periodically perform, record, and disclose physical inventory results. Physical inventories can be performed upon contract completion, termination or “as specified in a contract.”

CSTC-ACombined Security Transition Command-Afghanistan OIG Office of Inspector General RSORegional Security Officer PMRProgram Management Review PMIAProperty Management Internal Audit

Reports Contractual & Regulatory The preparation and submission of reports reflecting the status of Government property as required by contract or regulation.

Reports – SPOT – PMR – CDRLs – Property Losses – Inventory – Other Agencies

Storage & Utilization Access/Responsible Personnel Secured Storage Facilities Segregation of Property Documented Transactions i.e. receipts, disbursements, consumptions, BOH, etc. Locations

OCONUS Storage & Utilization

OCONUS Storage & Utilization

Maintenance Preventative – Access – Resources Regular – Obtainable Repair – Resources

Subcontract Management Scope Purpose/Service Level provided Oversight Capabilities Reporting Accountabilities Close Out

Disposals & Close-outs – Property Losses – Obsoleted – Disposals PCARSS/DRMO Destruction Abandonment Local Government Donations – Transfers – Security

CONUS Close-Out Inventory

OCONUS Close-Out Inventory

Questions? Please Contact: Ron C. Lobo, CPPM CF ACADEMI, Government Property Asset Manager (C)