You’re Having a Property
Management System Analysis
(PMSA)…Now What???
Terri L. Snook, CPPM CF
November 13, 2013
Value Through Professional Asset Management
2013 NPMA Fall Conference
About Me
 34 Years in Property Management
Hughes Aircraft Company
Northrop Grumman
Raytheon
Boeing
 19 years – Internal Audit and Subcontractor
Surveillance
Self-Governance
 Retired in Jan 2012
Value Through Professional Asset Management
2013 NPMA Fall Conference
So…..You get a notification
from your Internal (SelfAssessment) or External (GPA)
Auditor that you are scheduled
for a PMSA.
What do you do???
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2013 NPMA Fall Conference
Value Through Professional Asset Management
2013 NPMA Fall Conference
NO!!!
Don’t Panic…
It’s not as big a deal as you think it is.
Value Through Professional Asset Management
2013 NPMA Fall Conference
IF………..
 You’ve been managing your data
 You’ve been working closely with your TEAM
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
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Property Management
Contracts
Program Office
Procurement
Subcontract Control/Subcontractors
Shipping/Receiving
Warehouse
Custodians/Users
Your Customer – ongoing communication…Know your auditor and what is
expected!
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2013 NPMA Fall Conference
FAR 52.245-1 requires that the Contractor has in
place a process to assess it’s Property
Management System via review, audit, or selfassessment.
The Contractor must also make it’s premises
available to the Government for the purpose of
review, inspection and evaluation of the Property
Management System.
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2013 NPMA Fall Conference
 You must determine risks and prepare for a positive
outcome
 You must collaborate with other departments and help
them understand the risks, values and importance of
the analysis to the company. This should be ongoing
throughout contract performance.
A negative outcome can be very costly!
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2013 NPMA Fall Conference
What does the auditor look at?
What does the auditor look for?
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2013 NPMA Fall Conference
Ten Lifecycle Outcomes/Processes
Analyses should be based on the contract and the 10 primary
outcomes, as set forth in FAR 52.245.1
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Acquisition
Receipt
Records
Physical Inventory
Subcontractor Control
Reports
Relief of Stewardship Responsibility
Utilizing
Maintenance
Property Closeout
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2013 NPMA Fall Conference
Additional Processes
Additional processes are embedded within the
Ten (10) Primary Outcomes
 Property Management
 Identification
 Movement
 Storage
 Consumption
 Disposition
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2013 NPMA Fall Conference
OLD FAR
NEW FAR
FUNCTIONS
OUTCOMES
OUTCOMES/FUNCTIONS
1 *Property Management
1 Acquisition
1 Acquisition
2 Acquisition
2 Receipt
2 Receipt
3 Receiving
3 Records
4 Identification
4 Physical Inventory
3 Records
5 Records
5 Subcontractor Control
4 Physical Inventory
6 Movement
6 Reports
5 Subcontractor Control
7 Storage
7 **Relief of Stewardship
6 Reports
8 Physical Inventory
8 Utilization
7 **Relief of Stewardship
9 Reports
9 Maintenance
8 Utilization
10 Consumption
10 Property Closeout
Identification
Movement
11 Utilization
Storage
12 Maintenance
Consumption
13 Subcontractor Control
9 Maintenance
14 Disposition
15 Contract Closeout
10 Property Closeout
Disposition
*Property Management is reviewed within each Outcome.
**Relief of Stewardship is a new Outcome
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2013 NPMA Fall Conference
So, You’ve been notified of your PMSA
date…Where do you start?
 Schedule an Entrance Briefing
 Notify involved organizations/functions
Contracts
It’s VITAL that all organizations and functions
Programs Offices remain involved every step of the way….in
addition to maintaining a continuous
Procurement
relationship at all times! Ensure that all
organization are present at the Entrance
Subcontracts
Briefing.
Custodians
Anyone else pertinent to the audit
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2013 NPMA Fall Conference
Entrance Briefing – ALWAYS!
 Include ALL Affected Organizations
 Be Clear of ALL Ground Rules with the Customer
 Determine
Outcomes to Be Reviewed
Sample Population
 Criteria
Data Required
 Understand ALL requirements BEFORE you leave the
meeting
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2013 NPMA Fall Conference
What’s Next?
Gather Documentation
Current Government Property Policies/Procedures
Company’s Property Plan
Contract SOW (If contract specific)
Last Inventory/Reconciliation
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2013 NPMA Fall Conference
Now let’s look at the specifics of
each of the 10 Outcomes and see
what will be reviewed and what you
will need to ensure SUCCESS!
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2013 NPMA Fall Conference
Outcome 1: Acquisition
 Contractual Authorization
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Statement of Work
CLIN (Line Item in the Contract)
Bill of Material (BOM)
Contract Modification
 Procurement Documentation (Reasonable, Allocable, and Allowable)
 Purchase Orders (CAP)
 DD1149’s/DD1348’s, etc. (GFP)
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
Transferred
Shipped/Delivered in Place
Provided by Customer
 In-house Fabrication Documents
Population is generally those items acquired during the past year.
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Outcome 2: Receipt
 Receiving Documentation
 Purchase Orders
 Packing Slips
 DD1149’s/DD1348’s
 Fabrication Orders
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
Items verified/Counted
Discrepancies documented/reported/Isolated
Receipt documented
Proper distribution is completed
Population is generally those items received during the past year.
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Outcome 3: Records
 Minimal Information FAR paragraph (f)(1)(iii)(A)(1) through (10)
 The name, part number and description, National Stock Number (if needed for
additional item identification tracking and/or disposition) and other data elements as
necessary and required in accordance with the terms and conditions of the contract.
 Quantity received (or fabricated), issued, and balance-on-hand.
 Unit acquisition cost.
 Unique-item identifier or equivalent (if available and necessary for individual item
tracking).
 Unit of measure.
 Accountable contract number or equivalent code designation.
 Location.
Property records shall enable a complete, current, auditable
 Disposition.
record of all transactions
 Posting reference and date of transaction.
 Date placed in service (if required in accordance with the terms and conditions of the
contract).
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Outcome 4: Physical Inventory
 Ensure Inventories are performed in accordance with timeframe established
in the Property Procedures
 Timely Reconciliation
 Inventory Reports/Results to Customer
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Quantity
ID/Stock Number (if applicable)
Description
IUID (if applicable)
Model Number
Serial Number
Location
Utilization
Inventory Date
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2013 NPMA Fall Conference
Outcome 5: Subcontractor Control
 Clearly identify items provided
 Flow down of contract terms and conditions (e.g., extent
of liability for loss of Government property)
 Subcontracts are properly administered
 Periodic reviews to determine the adequacy of the
subcontractor's property management system
 Subcontractor Control Records must be maintained in
accordance with Terms and Conditions contained in the
Subcontract
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Outcome 6: Reports
 Required Reports
 Discrepancies
 Physical Inventory Results
 Loss, Damage, Destruction, and Theft
 Corrective Actions
 Audits/Self Assessments
 Excess Property
 Any Reports requested by the Contracting Officer
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Outcome 7: Relief of Stewardship
 Report All Losses, Damage, Destruction and Theft
 Ensure a thorough investigation is conducted
 Ensure Report is complete
 Ensure Record is adjusted immediately after receiving
relief of liability
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Outcome 7: Relief (Cont.)
 Report Includes
 Date of incident (if known)
 The data elements required under paragraph (f)(1)(iii)(A) of this clause
 Quantity
 Accountable contract number
 A statement indicating current or future need
 Unit acquisition cost, or if applicable, estimated sales proceeds, 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
 A statement that the Government will receive compensation covering the loss of Government
property, in the event the Contractor was or will be reimbursed or compensated
 Copies of all supporting documentation
 Last know location
 A statement that the property did or did not contain sensitive, export controlled, hazardous,
or toxic material, and that the appropriate agencies and authorities were notified
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Outcome 8: Utilization
 Provide documentation to show that Property is utilized,
stored, and moved only as authorized in the contract
Utilization screening
Rent-free use
 Documentation reflecting that all excess property is
reported to the customer
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2013 NPMA Fall Conference
Outcome 9: Maintenance
 Maintenance Program
 Calibration
 Preventative Maintenance
 Routine Repair
 Emergency Repair
 Report to Customer


Capital type rehabilitation
Replacement
 Property is marked with Last Performed and Next due dates
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2013 NPMA Fall Conference
Outcome 10: Property Closeout
 Closeout Documentation
 LDDT Cases
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

Investigate
Report
Secure closure
 Physical Inventory

Reconciliation
 Disposal of all Property upon receipt of instructions


Excess
Transfer to Follow-on Contract
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2013 NPMA Fall Conference
Exit Briefing
Include ALL Organizations involved in the PMSA
Review and understand each
finding/observation BEFORE you leave the
meeting
Agree on timeframe/submittal of Corrective
Action Plan (CAP)
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2013 NPMA Fall Conference
Corrective Action
 Understand what needs to be done
Determine the cause
Look at long term/permanent fix
Don’t bandaid the error
Update Procedures, if necessary
 Develop a Milestone plan
 Complete all actions on time
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2013 NPMA Fall Conference
General Rules of Thumb…
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Establish all ground rules at the Entrance Briefing
Be Prepared
Don’t volunteer information NOT asked for
Provide documentation in a timely manner
 This can vary with each auditor, and should be determined in the entrance
briefing.
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Provide complete Corrective Action Plan in a timely manner
Complete actions ON TIME
Be COURTEOUS
Be PROFESSIONAL
Be HONEST!!!
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2013 NPMA Fall Conference
The
???
Ensure that your Property Management TEAM includes all
the other organizations…
*Maintain continuous and open communication…
*Maintain accurate and complete records of all actions
*Know your Customer and what’s expected…
SUCCESS!
Value Through Professional Asset Management
2013 NPMA Fall Conference
Questions???
Contact:
Terri Snook, CPPM CF
310-910-4925
[email protected]
Thank you for your time!
Value Through Professional Asset Management
2013 NPMA Fall Conference