11 Basic Property Management-Government Part III Meeting the needs of all our “customers” while implementing effective processes….. Two of the biggest challenges for us today! Presented by: Skip Adolph CPPM, CF and Andrew C. Anderson CPPM, CF For National Education Seminar, Las Vegas, 2011 In collaboration with Richard Coatney, CPPM

Three areas of concern  Physical inventory  Subcontract Control  Liability issues 2

33 Defining a Physical Inventory  The process of physically locating and counting property and comparing it to the record of such property. Includes the posting of findings and adjustments to the appropriate record and reporting it to the designated officials. Sort of Bachar, 2008

44 This thing called a Physical Inventory  Regulatory & Contractual Requirements  FAR (f.)(iv), FMR, OMB and DOE Order  Good Business Practice Of special importance during acquisitions/mergers of organizations  Measure Health of Property System  Utilization  Excess Property Indicators  “Other Factors”

Subcontract control-complex process  The Contracts, Procurement, and Property Management departments must work together to ensure that all applicable property control requirements are incorporated into the subcontract, including identification of property to be provided to the subcontractor and liability provisions. 5

FAR and subcontract administration  FAR (f)(1)(v) Subcontractor Control (cont.): (B) “The Contractor shall assure its subcontracts are properly administered and reviews are periodically performed to determine the adequacy of the subcontractor’s property management system.” 6

Responsibility and Liability for GP  Government generally acts as self insurer  Generally contractors are not held liable for L,D,D and T  Same as previous “Limited Risk of Loss” policy however, note the following: C.O. may revoke the Gov’t’s assumption of risk when the GPA determines contractor’s practices are inadequate and presents an undue risk to the government.

88 FAR  Analysis of contractor’s property management system The Government must conduct an analysis of the business practices used by the contractor in managing and accounting for Government property in its possession The results determine whether the Government or the contractor assumes the risk for any loss, damage, destruction or theft of the Government’s property

Case studies time  Now its time for that ROUSING FINISH we’ve been promising!! 9

First Quiz-the story of the “drunken forklift driver”  Based on the scenario provided is the company liable or does the government bear the risk? 10

Acquisition-Ask yourself  Before acquiring any property, remember to ask yourself the following three questions: Am I authorized to acquire property? What kind of funds should I use to acquire this property? Has the acquisition been authorized and approved by the proper entities? 11

Second Quiz-Joe’s challenge  Joe, a new employee, needs a new oscilloscope in order to perform a particular test on some hardware. During his lunch hour he visits a website to see if any oscilloscopes are available. He gets lucky and finds one with a great price. Knowing the contract budget is tight he considers using his corporate credit card to acquire it immediately as he fears if he waits the thing will be gone. A. Should Joe proceed with the purchase? B. Wait until the purchase it authorized? 12

Questions??? Thank you very much and Good luck!! 13