AIA s Property Management Industry Leading Practices

Transcription

1 AIA s Property Management Industry Leading Practices Kathy McFarland, JD CPPM CF ILP Subcommittee Chair AIA Property Management Committee (PMC) NPMA NES, Las Vegas, July 26, 2011 AIA website

2 AIA Panel Property Management Committee Kathy McFarland Pat Jacklets Rich Culbertson Jim Prusaczyk Cinda Brockman, Chair

3 AIA at a Glance Founded in 1919 Premier trade association representing the nation s major aerospace and defense manufacturers member companies

4 AIA at a Glance Civil Aviation Space National Security Acquisition Policy

5 C AIA at a Glance G O N S E A L S N Establishes industry goals and strategies Committed to consensus on all issues Priority for total membership Promotes free and open discussion S T R A T E G I E S U Ensures all views are heard. S

6 PMC s Objective Initial survey (Phase I ) Continue to conduct surveys of AIA member companies (Phase II complete) Identify property management industry leading practices (ILP) Document and share via AIA Public Website Supported by the Procurement and Finance Committee

7 Why? Government Property clause (Jun 2007) effective control of Government property, consistent with voluntary consensus standards and/or industry-leading practices and standards for Government property management. FAR (b)(1) (Jun 2007). No documented study on ILP s in property management Each company may have a best practice Unique opportunity to establish ILP

8 What is an ILP? Leading Practice: Strategies and processes that are both quantifiably and qualitatively demonstrated to be top performing. * *Tom Ruckdaschel, Focus on the Future, Learn From the Past, presentation at the NPMA Western Region Seminar (Feb 2004).

9 What is an ILP? Best Practices: The marriage of applied behaviors and knowledge that have been demonstrated and validated to yield a competitive advantage for organizations that employ them. * *Tom Ruckdaschel, Focus on the Future, Learn From the Past, presentation at the NPMA Western Region Seminar (Feb 2004).

10 What is an ILP? Industry leading practices (ILP) are generally accepted processes, including best practices, that have been proven throughout related businesses, to be managerially and economically effective, efficient, and successful at meeting particular objectives of a contractor s management system, and where specified, in compliance with the required Government Outcomes.** **Dr. Douglas N. Goetz, Applications of Voluntary Consensus Standards and Industry Leading Practices within the Requirements of the Federal Acquisition Regulation Government Property Clause , NPMA 2007 NES Conference Proceedings (2007).

11 What is an ILP? Industry leading practices (ILP) based on empirical research, evidence and literature pertaining to that business practice, product or system as a leading practice. widely used supporting historical data from an accepted source, e.g., trade publications, literature, etc., repeatable, efficient, measurable, and verifiable.** **Dr. Douglas N. Goetz, Applications of Voluntary Consensus Standards and Industry Leading Practices within the Requirements of the Federal Acquisition Regulation Government Property Clause , NPMA 2007 NES Conference Proceedings (2007).

12 The ILP should be: What is an ILP? A technique, method, process, activity, incentive or reward that is more effective at delivering a particular outcome than any other technique, method, process, etc.*** With proper processes, checks, and testing, a desired outcome can be delivered with fewer problems and unforeseen complications.*** The most efficient (least amount of effort) and effective (best results) way of accomplishing a task, based on repeatable procedures that have proven themselves over time for large numbers of people.*** ***Elaine Frenette, What s a DCMA GPA to Do?, presentation at DCMA s Denver Mtg. (Sept. 2008).

13 What is an ILP? AIA established the following: ILPs and Best Practices are methods, processes, or practices about which one or more of the following pertain: It produces desired results; It leads to exceptional performance; It is recognized by an industry expert or group of industry experts; It is deemed so by an organization's customers; or It is clearly a new or innovative use of personnel, resources, or technology.

14 Participants: Survey Participants

15 Phase II - Survey Topics Managing Alternate Sites 2. Disposition of Computers or Hard Drives 3. Process for Found Property 4. Material Inventories 5. Miscellaneous

16 Process Analysis Data 55 Questions Reached Consensus on 8 ILPs Publish to the AIA Website Present at National Property Management Association NES Conference July 2011 Here we are!

17 Recap Phase I - Five Part Survey Resulting in 42 ILPs Part Phase I Topics 1 General Information 2 Contract Closeout Process 3 Solicitation, Acquisition, Receiving and Identification 4 Records, Physical Inventory, Reports and Relief of Stewardship 5 Subcontractor Control, Utilization (movement and storage), Maintenance, Self Assessments

18 Number Acquisition ILPs 1-01 Provide a Property Management Plan during response to solicitation The Property Management Organization (PMO) is: directly involved in the review of solicitations, proposals, and responses; reviews or provides a property list for the proposal response; part of the program stand up committee or team for a new product, new major contract Property Management Organization (PMO) is notified when a contract is awarded and provided access to contract Unless a contract specifically requires customer authorization, perform cost transfers of excess or available contractor acquired material from one contract to another without customer authorization if managed within a DOD contractually required MMAS or by utilization of a creditdebit system.

19 Number Receiving and Identification ILPs 2-01 Prior to acceptance, perform a visual review for damage to the outside packaging / container Standard delivery time from receipt to record (excluding unplanned occurrences, priorities, etc) is a maximum of 5 working days Equipment identification numbers are controlled and assigned by one functional organization or system Utilize Barcodes or other automated identification technology (AIT) IDs Use of virtual identification in databases for equipment requiring DoD Unique Item Identifiers (UII).

20 Number Records ILPs 3-01 Assign identification numbers to and establish basic records for equipment incorporated as components (children) of higher level equipment (parent) when removal for calibration or independent use is anticipated Use electronic storage retention for source and other record documents Utilize a property focal point (custodian or coordinator infrastructure) to manage property The association of an equipment parent-child relationship should be annotated in the record system.

21 Number Physical Inventory ILPs 4-01 Use barcode labels & scanning equipment for physical inventory Utilize Inventory by Exception (IBE)/ Transaction Based Inventory Methods Prepare and create a physical inventory plan Report material inventory results by contract at the completion of each inventory cycle Utilize the time factor since last inventory in order to provide an annual loss/overage rate Exempt low risk property from periodic inventories. Any LDD items that fall into this category may be reported upon contract completion, termination, or when needed for continued contract performance.*

22 Number Subcontractor Control ILPs 5-01 Use a Risk Assessment in determining which subcontractors require a "site visit", frequency of visit or a limited survey (i.e. total amount of property, amount of lost property, use of property, new property type, etc.) 5-02 Combine onsite and limited system analysis surveys where more than one company unit has property located at a subcontractor/supplier Use a standard format for Government/contract owned property when requesting reports from subcontractors. (Ref. to AIA Website for Standard Surveillance Template) 5-04 Use a standard format for flowing down Government/contract property requirements, including proper extent of liability for LDD items.

23 Number Reports ILPs 6-01 Utilize a business warehouse/ad hoc report capability concept so the PMO or other users have the ability to query and select data elements by multiple fields or variables Report activity to the IUID Registry a minimum of semiannually in March and September Utilize electronic reporting/correspondence.

24 Number Relief of Stewardship ILPs 7-01 Consider reconcilable material discrepancies prior to generating a final accuracy rate. The final report should reflect post-reconcilable discrepancies Utilize electronic reporting for LDD items 7-03 Calculate LDD loss rates for Government or company property

25 Number Utilization (Including Movement) ILPs 8-01 Include in company's response to an RFP/RFQ, Government assets that may be available for either transfer or on a rent free non-interference basis Request and institute a blanket rent free non-interference authorization for the use of all Government property on all Government contracts Prior to acquiring a new item, the PMO should screen for existing available items Utilize scanners or other electronic sources to record movement either within a building or from building to building (i.e. electronic or automated property pass systems, bar-coding devices)

26 Number Maintenance ILPs 9-01 Utilize the same maintenance policy for Government/customer property as company owned property. (i.e. should be treated the same, transparent) 9-02 When maintenance is performed on an item, the property management record system is updated with the date that this action occurred. Serves as an Inventory By Exception/Transaction Based Inventory point.

27 Number Contract Closeout ILPs Establish a contract closeout team consisting of several functional entities Upon completion or termination of a contract, perform a physical inventory, adequate for disposal purposes, of all property applicable to the contract. A physical inventory at the completion of a contract is not required - When the property is authorized for use on a follow-on contract; and Experience has established the adequacy of property controls and an acceptable degree of inventory discrepancies; and The contractor provides a statement indicating that record balances have been transferred in lieu of preparing a formal inventory list and that the contractor accepts responsibility and accountability for those balances under the terms of the follow-on contract.

28 Number Contract Closeout ILPs Commingle Government owned and Contractor owned scrap Utilize scrap lists in the disposition activity. Number Self Assessment ILPs Perform self assessments Utilize metrics/measurements to assess your system s effectiveness Establish criteria for business process self assessment where a metric is not the best measurement tool.

29 Records 3-05 Found Property on Active Contract 3-06 Found Property on Closed Contract 3-07 Items issued to WIP Physical Inventory 4-07 Material Inventories Use of Cycle Counts Subcontractor Control 5-05 Primary Site Designation w/ Alternate Site s POC Relief of Stewardship 7-04 Sanitization/Disposition of Data Storage Devices 7-05 Qualification of 3 rd Party for Sanitization or Disposal Utilization 8-05 Use of DD Form 1149

30 Records Found Property on Active Contract For items accountable to an active contract, found after declared lost, where the Contractor is not held liable and relief of responsibility has been granted without compensation, the Contractor should: Notify Government/Customer that asset has been located; Reestablish record on contract where loss was reported; Determine use requirements; If excess, process for disposition.

31 Records Found Property on Active Contract Rationale: 93 % of the companies responding utilize this method Government retains title Industry and Government long term practice

32 Records Found Property on Closed Contract For Found property determined to be: Accountable to a closed contract with NO previous established record and NOT reported as a loss Screen for potential use Report to the customer and Follow their instructions

33 Records Found Property on Closed Contract Rationale: 100% of the companies responding utilize this notification method. 81.8% screen for potential use prior to notification Takes into consideration that the contract under which the item was acquired, may be closed. Eliminates creating original record. Provides customer option of transferring, shipping or reporting through PCARSS.

34 Records Items issued to WIP Items (equipment or material), regardless of serialization or dollar value, that are issued with the intention of integration into a higherlevel assembly/item, are considered WIP material and are not tagged, and are no longer recorded, tracked, or reported in the contractor s Government property records system. The end-item deliverable, which may include general purpose components (ref. ILP # 3-01) is tagged, recorded and reported upon completion.

35 Records Items issued to WIP Rationale: 100% of the companies responding utilize this method. Consistent with FAR definitions of equipment/material Does not assign ID # or establish records for items & their components not yet completed (e.g. in process of being fabricated or waiting for further processing).

36 Physical Inventory Material Inventories Use of Cycle Counts If wall to wall material inventories are not performed, cycle counts may be performed, instead of or in addition to, provided they include bin location count to record methodology

37 Physical Inventory Material Inventories Use of Cycle Counts Rationale: 60% of the companies responding perform periodic wall to wall material inventories 40% of the companies responding utilize the Cycle Count method in lieu of, or in addition to, wall to wall. Reduces resource burden of complete wall to wall physical inventories while assuring all parts in all bins are geographically inventoried - floor to record process. Note: Inventory terms are defined in NPMA Fundamentals of Property Management (2006), Chapter 8, page 8-4.

38 Subcontractor Control Primary Site Designation with Alternate Site s Point of Contact The primary site (the Cage Code identified in the contract), should establish one or several points of contact with the alternate (secondary) site and report to the primary site.

39 Subcontractor Control Primary Site Designation with Alternate Site s Point of Contact Rationale: 93% of the companies responding establish a single primary POC or several points of contact for property management responsibility at an alternate/secondary site where work is being performed. The customer holds the primary site responsible for property located at sites other than the primary site.

40 Relief of Stewardship Sanitization/ Disposition of Data Storage Devices Sanitization or destruction of non-classified data storage devices, taking into consideration subject matter, by the following methods: Sanitization by overwriting or degaussing (demagnetizing); Physical destruction by removal of hard drive and subject to physical force or application of an abrasive substance or acid.

41 Relief of Stewardship Sanitization/ Disposition of Data Storage Devices Rationale: DoD Memorandums dated 5/29/01 & 6/4/01 providing acceptable methods 71% of companies responding destroy or impair beyond reasonable use (physically damaging the medium). 53% of companies responding also utilize degaussing method rendering data unreadable.

42 Relief of Stewardship Qualification of 3 rd Party for sanitization or disposal of data storage devices Qualify third party employed for sanitization or destruction of data storage devices and require a certification of compliance or disposal.

43 Relief of Stewardship Qualification of 3 rd Party for sanitization or disposal of data storage devices Rationale: 60% do not outsource the sanitation of data storage devices. However those that do, all require supplier qualification and a certificate of compliance or disposal. Assures that qualified individuals and companies perform this process. Increases confidence that end of life electronic equipment will be dealt with in a secure and responsible manner.

44 Utilization Use of DD Form 1149 Utilize the DD Form 1149 to document No cost transfers of accountability from one contract to another, with proper authorization (e.g., contract modification); Shipment of Government owned property to other contractors, subcontractors, or may also be used for alternate/secondary locations of the primary site.

45 Utilization Use of DD Form 1149 Rationale: Long time practice throughout industry 100% of companies responding utilize this method. DoD M Appendix 5, (Dec 1991), Instruction for the Use, Completion, and Distribution of DD Form 1149, Requisition and Invoice/Shipping Document.* Note: This manual is continually used for reference material although on 2/22/08, the Deputy Executive Director, Contracts Directorate issued a Rescission of Instruction for this Manual stating that this Manual is now obsolete.

46 ILP Implementation Establish a Property Management System Management Plan Similar to finance s cost disclosure statement States how you do business Policies and Procedures Specify ILPs* Processes Manage property in accordance to the above Continuous process improvements

47 AIA Link to Property Management Tools

48 AIA Property Management etools AIA

49 ASTM Intl. References Slide 20 Physical Inventory - Consistent with ASTM Std. E (Reapproved 2007) (Standard Practice for Physical Inventory of Durable, Moveable Property) - Consistent with ASTM Std. E2811 (Approved 2011). (Standard Practice for Management of Low Risk Property (LRP) For referenced ASTM standards, visit the ASTM website, or contact ASTM Customer Service at service@astm.org. For Annual Book of ASTM Standards volume information, refer to the standard's Document Summary page on the ASTM website.

50 QUESTIONS????