ASTM Use and Application Cinda Brockman, A2B Tracking, CPPM, CF Tamra Zahn, Boeing, CPPA

The History of ASTM Committee E53 The idea of property Standards took hold, major breakthrough at NES in Santa Fe, New Mexico A dedicated group researched how the process should work Chose ASTM, founded in 1898, as the organization to manage the process of creating voluntary consensus standard ASTM Committee E53 Property Management Systems was formed The first two standard s were issued

E53 Committee - The Present Scope The development, maintenance and dissemination of standard practices and performance standards for asset management systems and the lifecycle management of personal property assets. E-53 “Committee on Asset Management” E53.20 E53.02 E53.04 E53.05 E53.06 E53.10 E53.03 E53.07

Subcommittees E53.01 Process Management E53.02 Data Management E53.03 Financial Management E53.04 Reutilization and Disposal E53.05 Property Management Maturity E53.06 Terminology E53.07 Sustainable Property Management E53.10 Asset Management Activity E53.20 United States Government Contract Property Management

E53 Executive Board Chairman: Bill Franklin, Noblis Inc. Vice Chairman: Cinda Brockman, A2B Tracking Secretary: Rick Shultz, John Hopkins Univ/APL Membership Secretary: Kim Doner, SRA Member at Large: Amber Propert, US Office of Under Secretary of Defense Acq. Tech. and Logistics Member at Large: Richard Culbertson, Retired Member at Large: Mike Showers, NASA Member at Large: Tamra Zahn, Boeing Past Chairman: Bob Holcombe, GSA Staff Manager: Katerina Kaperna, ASTM

NPMA and ASTM – The Relationship ASTM Develops & Publishes Standards NPMA Develops and Presents Educational & Certification Material “Director of Standards and Utilization”

Audience Participation How many of you have incorporated E53 Standards in your policies and processes? For those who did not raise your hand why haven’t you incorporated them? How many of you have been audited (internally or externally) to the standards in your policies and processes?

Utilization Survey – One of E53’s Completed Goals Survey Details: – Utilization survey results to guide development of future standards ASTM Sponsored Survey Sent to 96 of companies 26 Standards were selected 53 Responses received % of the standards were reported as being used according to 49 of the respondents

ASTM E53 Standards Usage Survey Response Summary Do you currently use ASTM E53 standards within your property plan and/or procedure, if Yes please complete the survey, if No please continue to question 8? Response % Response Count Yes79.6% 39 No20.4% 10 Answered question 49 Skipped question 4

Survey Results

Survey Results (continued)

Hot Standards E2279 Standard Practice for Establishing the Guiding Principles of Property Management E Standard Practice for Receiving of Assets E Standard Practice for Inventory Verification: Electronic and Physical Inventory of Assets E Standard Practice for Data Characteristics of Equipment Records E Standard Practice for Determining the Life-Cycle Cost of Ownership of Personal Property E Standard Practice for Addressing and Reporting Loss, Damage, or Destruction of Tangible Property

Not So Hot…. E Standard Practice for Tangible Property Mobility (MI) E Standard Practice for Assessment of Impact of Mobile Data Storage Device (MDSD) Loss E Standard Practice for Calculation of Asset Movement Velocity (AMV) E Standard Practice for Receipt Notification as a Result of Tangible Property Movement E Standard Practice for Physical Placement of an Entity-Controlled Supplemental Identification Label E Standard Practice for Identification and Categorization of Tooling

ASTM E53 Standards Usage Survey Response Summary If your system is audited, does the auditing agency (internal or external) confirm your compliance with the referenced standards in your plans and procedures? Response % Response Count Yes 51.2% 21 No 22.0% 9 N/A 26.8%11 Answered question 41 Skipped question 12

ASTM E53 Standards Usage Survey Response Summary What subject within Asset/Property Management would you want to see developed into a new standard? Response Count 27 Answered question 27 Skipped question 26

On What Topics Would You Like to See a Standard Written? Standard that is solely related to Item Unique Identification (IUID) as required by DFARS Material control guidelines and the practice of ABC inventory methods. Management of Government Furnished Information Subcontract control Transfer of US Government property to foreign countries Internal Self Assessments and Audit of Property Management Functional Elements

Incorporating Standards into your Procedures In whole In part OMB Circular A119 – This Circular establishes policies to improve the internal management of the Executive Branch. Consistent with Section 12(d) of P.L , the "National Technology Transfer and Advancement Act of 1995" (hereinafter "the Act"), this Circular directs agencies to use voluntary consensus standards in lieu of government-unique standards except where inconsistent with law or otherwise impractical. It also provides guidance for agencies participating in voluntary consensus standards bodies and describes procedures for satisfying the reporting requirements in the Act. The policies in this Circular are intended to reduce to a minimum the reliance by agencies on government-unique standards. These policies do not create the bases for discrimination in agency procurement or regulatory activities among standards developed in the private sector, whether or not they are developed by voluntary consensus standards bodies. Consistent with Section 12(b) of the Act, this Circular directs the Secretary of Commerce to issue guidance to the agencies in order to coordinate conformity assessment activities. This Circular replaces OMB Circular No. A-119, dated October 20, Example: E2221 The Standard Practice for Administrative Control of Property

Incorporating Standards into your Procedures OMB Circular A119OMB Circular A119 Section 6 a. Your agency must use voluntary consensus standards, both domestic and international, in its regulatory and procurement activities in lieu of government- unique standards, unless use of such standards would be inconsistent with applicable law or otherwise impractical. In all cases, your agency has the discretion to decline to use existing voluntary consensus standards if your agency determines that such standards are inconsistent with applicable law or otherwise impractical. (1) "Use" means incorporation of a standard in whole, in part, or by reference for procurement purposes, and the inclusion of a standard in whole, in part, or by reference in regulation(s). (2) "Impractical" includes circumstances in which such use would fail to serve the agency's program needs; would be infeasible; would be inadequate, ineffectual, inefficient, or inconsistent with agency mission; or would impose more burdens, or would be less useful, than the use of another standard.

In Part-Example E2221 Administrative Control of Property Incorporate All property should have been entered into the formal accountable records and inventories are to be performed in accordance with the administrative control thresholds of the organization. Inventories should be performed by personnel other than the custodians of the property and inventory results should be independently verified. The results of the inventory should be analyzed and discrepancies reconciled with the property records and the financial control records. Not Incorporate Acceptable Thresholds for Administrative Control Organizations that have inventory variances of 5 % or greater are defined as “high risk” under Practice E 2131 and should set their control threshold at $ Organizations that have inventory variances of between 2 % and 5 % are defined as “medium risk” under Practice E 2131 and should set their control threshold at $

Incorporating Standards into your Procedures

Incorporating Standards into your Procedures (continued) Inventories should be performed by personnel identified in the PI Plan and inventory results should be independently verified unless otherwise agreed upon and documented in the PI plan. (Ref. ASTM E )

In Part-Example E Standard Practice for Receiving Property Incorporate Locate the incoming documentation. In most cases, incoming documentation will accompany the shipment (that is, packing slip, shipping document, and invoice). If no documentation is present, the receiving entity shall either contact the shipping entity requesting documentation or generate a document listing the following information: through Note any damage or discrepancies, or both, on the incoming documentation Receiving tangible property against a purchase order could involve other functions within your organization. The receipt of tangible property will differ depending on your organizational structure for acquiring and issuance of payment for property received An organization should establish a standard processing time for tangible property being received and delivered. Needs, types of property and its characteristics, requirements, and capabilities should be considered before setting this time frame. This time frame may vary based upon the type of property and its characteristics. Incorporate 5.8 Ensure what was shipped was ordered and what was ordered was received. Reconcile the incoming documentation against the authorizing document. This information shall be accessible to receiving personnel at the point of receipt Damage or discrepancies, or both, shall be reported immediately to the appropriate organization within your organization for resolution. 5.9 The receiving of sensitive or hazardous materials, or both, may require special handling and safety precautions Ensure the tangible property is inspected in accordance with the quality requirements of the contract or customer, if required. Not Incorporate 5. Procedure for Receiving Incoming Tangible Property, 5.1 through Reports

In Part-Example E Standard Practice for Physical Inventory of Durable, Moveable Property Incorporate A physical inventory is an assessment or audit. An effective physical inventory provides information of value that equals or exceeds the cost of the activity. For the results to be valid and useful, complete the physical inventory by consistently applying written procedures. As physical inventories generally measure performance over a period of months or years and results are often trended, it is desirable to repeat past inventory practices in order to make results comparable Population 3.7 Validation techniques – determine the validation and data gathering techniques permissible for the inventory. Validation techniques may include: barcode scanning, radio transmission, owner validation, validation by an independent individual, two-signature validation… 4. Procedure Not Incorporate 2. Significance and Use As physical inventories are generally efforts involving significant time, resources, complexity, and personnel, appropriate project management techniques should be employed. Address 3.2 through 3.13 when planning. 5. Results 6. Interpreting Physical Inventory Results

Examples of Whole Standards Being Used E Standard Practice for Data Characteristics of Equipment Records Question: Why is this one an easy one to incorporate into your processes? Answer: Because under Data Elements there are only 5 essential data elements that shall be used in equipment records: 1.Identification number (unique or equivalent), 2.Description, 3.Receipt date, 4.Unit acquisition cost, and 5.Location

Examples of Whole Standards Being Used (continued) E2135 Standard Terminology for Property and Asset Management Question: Why is this one an easy one to incorporate into your processes? Answer: Because it would be a lot easier if all of your terminology throughout your processes and procedures were the same as what is defined in E2135. Being consistent is a good thing!

Audience Participation What hesitation if any, do you have with incorporating standards into your procedures? What benefits have you reaped from incorporating standards? Questions?