The Perfect Property Closeout Please use the following two slides as a template for your presentation at NES. Roy De Lauder, CPPM CF Wendy Latimer, CPPM General Dynamics Advanced Information Systems, Inc. Session Title Slide

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Agenda Contract Closeouts 101 Breakout Session What does it mean to close out property? Why is closing out property important? External drivers Internal drivers What are the benefits to your company for closing out contracts? What “tools” do we need to close out property? Breakout Session Create a checklist to take back to work with you! Wrap up Share Checklists Q&A Body of Presentation Slide

Contract Closeouts 101 To close out a contract, FAR 4.804-5 requires the Contracting Officer to collect evidence of the following: Classified information has been disposed of. Contractor provided a FINAL Invoice (including final rates). All deliverables under the contract have been met. Subcontracts are settled by the prime contractor. “Property clearance has been received.” (FAR 4.804-5(a)(6) Patent report is submitted (if applicable).

Contract Closeouts 101 Upon completion of a contract, all property accountable to the contract must be accounted for and disposed of. Transfer Shipment Disposal by Instruction Includes all property, equipment and material. All work locations (including subcontractors). The requirement is to have a zero balance of property. Closing out property is driven by internal and external processes and customers.

Contract Closeouts 101 Why is Closing Out Property Important? Final Payment Final Deliverables/Acceptance What are your customer’s expectations? Customer’s expect us to perform contract closeouts efficiently to protect their interests and free up current year program priorities. What do you have to supply your customer? What does your contract state? Your procedures?

What are the benefits for completing property closeout? Reduces Cost / Saves money! Storage costs. Labor costs. Mitigates risk of property loss, theft, and damage. Audit risks.

What “tools” are useful in closing out property? What has been successful for GDAIS PMO? Developing / Maintaining Metrics. Contract / Subcontract Databases. One Repository – Historical Files. Closeout notices. Closeout Checklists – Short and Long Forms.

What “tools” are useful in closing out property? Why is a closeout checklist important? Drives a company wide standardized approach. Provides simple step by step instructions. Historical record of completed steps taken. (Closeout can take a while) Documentation for audits.

What to include? Contract Data. FAR and Statement of Work Requirements. Point of Contacts. Property Record collection points / Databases. Tasks to be performed. Task assignments. Check-off fields for task completion.

The Checklist For the next 20 minutes we are going to break into small groups. We have assigned a leader for each group, a scribe, and would like everyone to participate. How will your checklist look? What information will you need? Where will you need to look for property?

The Short Form On our property short form we have 6 steps. Run purchase order report. If purchase orders are found, use long form. Check all material and equipment databases, if property is found, use long form.

The Short Form Continued Confirm with PM and CA that there is no property accountable to GDAIS or Subcontractors, if yes, use long form. Submit internal/external documentation Update the database to closed status File checklist and documentation in repository

The Long Form More complex, when we know there is property. 18 steps to closeout property POP Ends, we confirm with PM and CA that the work is complete/we can begin closeout. Update the contracts database to In Closeout status

The Long Form Continued Check for Open PO’s, Review 1149 Log, and check for anything that is out at a vendor’s location. Check for open work orders at Manufacturing locations. Check for property records (5 systems for material and equipment, also check at alternate work locations.

The Long Form Continued Perform a Walkthrough of the Lab/Work Area or have someone do this for you. Conduct Physical Inventory of remaining property or verify waiver. Do your subcontractor’s have property? Screen all residual property. Transfer, Ship, Dispose?

The Long Form Continued 10) For Transfers, request modifications, receive, update all record systems (uid included) 11) Submit excess property listings/inventory schedules 12) Execution – disposal 13) Verify all LTDD cases have been submitted, relieved, and closed.

The Long Form Continued Records – have all systems been updated? UID? Equipment? Material? Subs? Submit required closeout documentation and final reports – to internal and external customers. Update the closeout database File all property closeout documentation in repository.

Group Readouts How many steps did you have? Were there any additional tasks that you have that is unique to your customers or your company? Do you currently have a checklist? Do you think it is a tool that will be helpful to you during the process?

Wrap Up There is no “perfect property closeout” The closeout of the property is only as good as the property specialist performing it and the tools they are using! We hope this course got you thinking about your property closeout process and that perhaps you can use the checklist you created today, when you return home from the NES.

Questions? Please Contact: Wendy Latimer, CPPM Manager, Property Management Organization (c) 240.427.7230 wendy.latimer@gd-ais.com