Attachment_8_-_HHS_Logisitics_Management_Manual.pdf

HHS Logistics Management Manual (LMM) - Property Policy and Procedures Revised 30 June 2009

HEALTH AND HUMAN SERVICES

LOGISTICS MANAGEMENT MANUAL (LMM)

POLICY and PROCEDURES

MANAGED BY

OS/ASAM/OAMP

DIVISION OF LOGISTICS & POLICY

July 2009

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HHS Logistics Management Manual (LMM) ‐ Property Policy and Procedures

Record of Changes

Change Date Page(s) Section Editors Initials Original 23 Feb 2007

1 30 June 2009 All All PDC/AD

DEVIATIONS/REVISIONS

The Logistics Management Manual (LMM), Code of Federal Regulations (CFR), Title 41, Public Contracts and Property Management and the HHFPMRH/HFMRH are applicable to all HHS operating and staff divisions. They shall not be deviated from, except as specifically authorized by the Department and GSA.

A deviation is considered to be any of the following:

1. Any policy, procedure, method, or practice inconsistent with that prescribed in this manual.

2. Use or alteration of a Standard Form or HHS Form except as authorized by this manual.

Requests for deviation shall state clearly the nature of the required deviation and the circumstances justifying the deviation. Requests should be submitted through administrative channels to the Division of Logistics Policy and Programs (DLP), which falls under the Assistant Secretary for Administration and Management (ASAM), Office of Acquisition Management and Policy (OAMP), and contain the following information:

1. The title and citation of the CFR and or FPMR/FMR provision from which the agency wishes to deviate.

2. The name and telephone number of an agency contact who can discuss the reason for the deviation.

3. The reason for the deviation.

4. A statement about the expected benefits of using the deviation (to the extent possible, expected benefits should be stated in measurable terms).

5. A statement about possible use of the deviation in other agencies or

Government‐wide.

6. The duration of the deviation.

7. Each notice will be serially numbered and will specify the material transmitted, material superseded (if any), filing instructions and distribution codes. When appropriate, background information discussing the reasons for the transmittal will be included.

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After review by DLP, the request for deviation from the CFR and or FPMR/FMR will be forwarded to the Deputy Assistant Secretary, OAMP for appropriate action, or returned for additional information. In the interest of establishing and maintaining uniformity to the maximum extent feasible, deviations from the LMM shall be kept to a minimum.

Executive Summary

The purpose of the HHS Logistics Management Manual (LMM) is to provide the policy, procedures, and guidance to support the implementations and supplements of applicable General Services Administration (GSA), Federal Property Management Regulations (FPMR), Federal Management Regulation (FMR), and Title 41 Code of Federal Regulation (CFR) 101 – 200. Material in this manual is based upon existing laws, executive orders, and mandatory regulations of control agencies, and Departmental policies which are incorporated for use by the HHS Operating Divisions (OPDIVs) and Staff Divisions (STAFFDIVs).

The LMM designates the roles and responsibilities of the Department’s Property Management Officers (PMOs), Property Accounting Officers (PAOs), Budget Officials and Fleet Managers responsible for the "management of property and other programs and activities"; to include ordering, receiving, storing, distributing, accounting for, maintaining, and disposing of supplies and equipment. This includes the Departmental Property Management Information System (PMIS), which is used to track Property Plant and Equipment (PP&E) records. PMIS provides reasonable assurances that funds, property, and other assets are protected against waste, loss, unauthorized use, or misappropriation. The PMIS is the enterprise‐wide PP&E management system as mandated by ASAM) on June 24, 2004.

The LMM is posted on the HHS website for use by HHS personnel and support contractors at http://www.hhs.gov/oamp/policies/index.html.

In efforts to communicate with the system users, the DLP has established the HHS Enterprise Portal‐OAMP/DLP webpage, to capture user feedback and allow the Department to analyze the effectiveness of communication and dissemination of information.

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INTRODUCTION

Overview of Logistics Management

The Department of Health and Human Services (HHS) is an executive agency of the Federal Government of the United States. The Federal Property Management Regulations (FPMR) and the Federal Management Regulation (FMR) were developed by the General Services Administration (GSA) to govern and guide executive agency officials in prescribing regulations, policies, procedures, and delegations of authority pertaining to the management of property and other programs and activities. (Code of Federal Regulations (CFR), Title 41, Public Contracts and Property Management, Chapter 101 Subchapter A, Part 101, Subpart 101‐1 and Chapter 102 Subchapter A, Part 102, Subpart 102‐1).

The "management of property and other programs and activities" is considered to be "logistics." Logistics is more concretely defined as the ordering, receiving, storing, distributing, accounting for, maintaining, and disposing of supplies and equipment.

Controlling and synchronizing these and other interrelated processes in order to accomplish HHS missions and functions is considered “logistics management”.

This manual is the HHS Logistics Management Manual (LMM). It prescribes policies and procedures that are intended to influence the performance of logistics processes and logistics management within the HHS and its OPDIVs and STAFFDIVs.

Mission Performance and Logistics Management

The HHS OPDIVs and STAFFDIVs are responsible for accomplishing a variety of complex and challenging missions and tasks. They are provided resources to accomplish these responsibilities, and the prudent management and careful stewardship of scarce resources is an integral part of the OPDIV and STAFFDIV missions and responsibilities.

This manual, therefore, is an important part of the system used by HHS to control its resources and perform its missions. To most effectively and efficiently carry out its responsibilities, HHS must effectively and efficiently manage logistics. A high degree of teamwork and communication between the consumers and providers of logistics services are required to do this. This manual is intended to enhance teamwork and communication.

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Purpose of the Manual

The LMM implements and supplements the applicable portions of the FPMR/FMR.

Material published in the LMM expands upon related material in the FPMR/FMR.

Supplementing material deals with subject matter not specifically covered in the FPMR/FMR. Sections and paragraphs of this manual are cross‐referenced to the FPMR/FMR where and when appropriate. When applicable, cross‐reference citations are made at the end of sections or paragraphs.

Applicability

The material in this manual is applicable to all units of the Department unless otherwise specified.

Authority for Issuance

Authorities for issuing the HHS Logistics Management Manual are 5 U.S.C. 301, 40 U.S.C.

§ 524, and Chapter 2‐500, Title 41 CFR, Public Contracts and Property Management, Chapter 101, Subchapter A, Part 101, Subpart 101‐1 and Chapter 102, Subchapter A, Part 102, Subpart 102‐1. Additional authorities and references include:

• TITLE 18 USC, Section 641, on the Care and Protection of Government Property.

• Federal Acquisition Regulation (FAR), which prescribes policies and procedures for the acquisition of supplies and services with appropriated funds.

• Federal Electronics Challenge Guidance, H supports efforts to continuously improve environmental stewardship of electronic assets government‐wide, including: Executive Order 13423, the Office of Management and Budget Environmental Stewardship Scorecard, and the Federal Electronics Stewardship Working Group.

• Department of Health and Human Services Purchase Card Guide, Version 5.0, dated July 2009, which establish the procedures for using the government purchase card at HHS.

• Department Accounting Manual, which provides guidance regarding accounting principles, standards, and related requirements for agencies to use in development of their accounting systems and internal auditing programs.

• Department of Health and Human Service Acquisition Regulation (HHSAR), issued as Chapter 3, Title 48, the Federal Acquisition Regulations System, which established uniform acquisition policies and procedures within the Department.

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TABLE OF CONTENTS

Logistics Management Manual Pg.

Record of Changes …………………………………………………………………………………………. ii Deviation/Revision ………………………………………………………………………………………… ii Executive Summary ……………………………………………………………………………………….. iii Introduction: Overview of Logistics Management ………………………………………….. iv Overview of Logistics Management ……………………………………………………………….. iv Mission Performance and Logistics Management …………………………………………… iv Purpose of the Manual……………………………………………………………………………………. iv Applicability …………………………………………………………………………………………………… v Authority for Issuance ……………………………………………………………………………………. v Organization of the Manual …………………………………………………………………………… vii

PART I: PERSONAL PROPERTY SYSTEMS …………………………………………………………. 1

PART 2: ACQUIRING PERSONAL PROPERTY AND SUPPLIES ……………………………… 19

PART 3: PROCUREMENT SOURCES AND PROGRAMS ………………………………………. 36

PART 4: MOTOR VEHICLE AND WATERCRAFT MANAGEMENT ………………………… 72

PART 5: AIRCRAFT MANAGEMENT …………………………………………………………………. 102

PART 6: TRANSPORTATION AND FREIGHT MANAGEMENT …………………………….. 104

PART 7: TRANSPORTATION PAYMENT AND AUDIT ………………………………………… 141

PART 8: UTILIZATION AND DISPOSAL OF HAZARDOUS MATERIALS AND

CERTAIN CATEGORIES OF PROPERTY ………………………………………………………………

PART 9: UTILIZATION OF EXCESS PERSONAL PROPERTY …………………………………. 165

PART 10: DONATION OF PERSONAL PROPERTY ………………………………………………. 186

PART 11: SALE, ABANDONMENT OR DESTRUCTION OF PERSONAL PROPERTY … 199

PART 12: UTILIZATION AND DISPOSAL OF PERSONAL PROPERTY PURSUANT TO

EXCHANGE/SALE AUTHORITY …………………………………………………………………………

PART 13: UTILIZATION, DONATION OR DISPOSAL OF ABANDONED AND

FORFEITED PERSONAL PROPERTY ……………………………………………………………………

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PART 14: UTILIZATION, DONATION AND DISPOSAL OF FOREIGN GIFTS AND

DECORATIONS ………………………………………………………………………………………………..

PART 15: GLOSSARY ……………………………………………………………………………………….. 219

PART 16: APPENDICES

Appendix A: Report of Survey Policy Appendix B: Sensitive Equipment Policy Appendix C: Motor Vehicle Fleet Report (MVFR) Instructions Appendix D: Foreign Excess Personal Property Appendix E: PMIS Interfaces to UFMS Appendix F: Property, Plant and Equipment Policy Appendix G: GSA Bulletins Appendix H: Logistics Management Forms Appendix I: Policy on the HHS Executive Motor Pool Appendix J: Acquisition and Logistics System Unification Appendix K: Motor Pool Policy Appendix L: General Use and Registration of Federal Fleet Vehicles Appendix M: Changes in Regulations Regarding Use of Charter Planes and Other

Government Aircraft and Use of Chartered Aircraft Appendix N: Vehicle Manager Responsibilities in Foreign Countries Appendix O: HHS Logistics Performances Measures Appendix P: LMM Development and Review Process Diagram Appendix Q: Contractor Acquired Property Appendix R: CRS Report for Congress, Federal Tort Claims Act, Order Code 95‐717

(December 11, 2007) Appendix S: Home to Work Policy Appendix T: GSA Fleet and Tribal Organizations Appendix U: PSC Final Event Policy (February 24, 2009) Appendix V: Required Sources for Products

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Organization of the Manual

This edition of the LMM has been extensively reorganized and renumbered. To aid in navigating the new LMM a cross‐reference table outlining the relationship between the old and new numbering schema is provided below:

LOGISTICS MANAGEMENT MANUAL CROSS‐WALK REFERENCE TABLE

NEW LMM STRUCTURE OLD LMM STRUCTURE

Part 1 103‐1 et seq.

Part 2 103‐25 et seq.

Part 3 103‐26 et seq.

Part 4 103‐34 et seq.

Part 5 103‐37 et seq.

Part 6 103‐40 et seq.

Part 7 103‐41 et seq.

Part 8 103‐42 et seq.

Part 9 103‐43 et seq.

Part 10 104‐44 et seq.

Part 11 103‐45 et seq.

Part 12 103‐46 et seq.

Part 13 103‐48 et seq.

Part 14 103‐49 et seq.

PART 1: PERSONAL PROPERTY SYSTEMS

1.1.0 GENERAL

This subpart introduces a system by which the Department of Health and Human Services (HHS) carries out and supplements the Federal Property Management Regulations (FPMR) (41 CFR Chapter 101) and the Federal Management Regulation (FMR) (41 CFR Chapter 102) issued by the General Services Administration (GSA).

1.1.1 FEDERAL PROPERTY MANAGEMENT REGULATION SYSTEM

The Federal Property Management Regulations (FPMR) 41 CFR 101 and the Federal Management Regulation (FMR) 41 CFR Chapter 102 prescribe the Federal policies, procedures, and delegations of authority on the management of property, and other logistics programs and activities. Proposed changes to the FPMR/FMR are published in the Federal Register. Agencies are provided time to review proposed changes and provide their comments. The FPMR/FMR are issued in loose leaf and bound format.

As primary sources of the guidance contained in this manual, copies of the FPMR/FMR should be kept in all OPDIV and STAFFDIV logistics management activities.

1.1.2 STATUTORY PROVISIONS

Material in this manual is based upon existing laws, executive orders, and mandatory regulations of cognizant agencies. The Federal Property and Administrative Services Act of 1949 (FPAS), as amended Title 40, Public Buildings, Property and Works, Section 524(a) (40 USC 524 (a)) states: "Each executive agency shall (1) maintain adequate inventory controls and accountability systems for property under its control, (2) continuously survey property under its control to determine which is excess property, and promptly report such property to the Administrator, (3) promptly report excess property to the Administrator of General Services, (4) perform the care and handling of such excess property, and (5) transfer or dispose of such property as promptly as possible in accordance with authority appointed and regulations prescribed by the Administrator". (United States Code (31 USC, Money and Finance) 31 USC 3511(a)). The Comptroller General shall prescribe the accounting principles, standards, and requirements that the head of each executive agency shall observe (P.L. 97‐258, Sept 13, 1982, 96 Stat. 959). 31 USC 3512 requires that the accounting system of each agency shall include monetary property accounting records. 31 USC 902 requires that administrative controls of each executive agency shall be established to provide reasonable assurances that funds, property, and other assets are protected against waste, loss, unauthorized use, or misappropriation. The Chief Financial Officers Act (CFO) of 1990 (P.L. 101‐576), 31 USC 902, requires that certain activities within HHS prepare auditable financial statements annually. This would include the application of

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The National Technology Transfer and Advancement Act of 1995 (Pub. Law 104‐113, 15 U.S.C. 3701 et seq.) encourages the use of consensus technical standards by Federal agencies. Federal agencies shall consult with voluntary, private sector consensus standard bodies and participate in the development of technical standards

1.1.3 TEMPORARY HHS LOGISTICS MANAGEMENT ISSUANCES

The LMM also includes manual circulars which are interim instructions, each with a fixed effective duration. Interim instructions may be issued in circular form when time or exceptional circumstances do not allow publication of a final policy. The effective dates of the interim instructions will be stated on the circular, with conversion to permanent form made as necessary.

1.1.4 PUBLICATION AND DISTRIBUTION

Material published in the LMM and manual circulars pertaining thereto will not be published in the Federal Register unless it affects the public. The LMM will be posted on the OS/ASAM/OAMP website for use by HHS employees. The FPMR/FMR and LMM are available to HHS employees whose responsibilities require them. They should be directed to all levels of management where determinations regarding logistics, including personal property, supply, transportation and warehousing, etc., are considered.

Distribution is made to offices that have requested placement on the manual mailing lists. All Office of the Secretary (OS), Operating and Staff Divisions (OPDIV and STAFFDIV), and Regional Office (RO) logistics offices shall submit copies of their implementing policies and procedures for logistics management to the Office of Acquisition Management and Policy (OAMP) under the Assistant Secretary for Administration and Management (ASAM) for review and approval prior to their issuance.

1.1.5 MAINTENANCE OF ISSUANCES

Recipients of the FPMR/FMR and LMM should file all new material promptly. New policies and procedures requiring implementation or a change in operations should be reported to the appropriate logistics management staff. Changes or additions to the LMM will be forwarded to recipients with a covering transmittal notice. Each notice will be serially numbered and will specify the material transmitted, material superseded (if any), filing instructions and distribution codes. When appropriate, background information discussing the reasons for the transmittal will be included. Upon separation or transfer to other Department positions, employees should leave the LMM for successors. In unusual circumstances, an employee may be permitted to retain copies

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1.1.6 HHS IMPLEMENTATION AND SUPPLEMENTATION OF FPMR/FMR

The LMM implements and supplements the applicable portions of the FPMR/FMR.

Material published in the LMM expands upon related material in the FPMR/FMR.

Supplementing material deals with subject matter not specifically covered in the FPMR/FMR. Sections and paragraphs of this manual are cross‐referenced to the FPMR/FMR where and when appropriate.

1.1.7 PERFORMANCE MEASURES

OS and OPDIV and STAFFDIV Heads shall implement the HHS Logistics Performances Measures to monitor the effectiveness, efficiency, and control of their logistics programs.

1.1.8 HHS PROPERTY MANAGEMENT INFORMATION SYSTEM (PMIS)

HHS logistics OPDIVs and STAFFDIVs shall use the Department’s PMIS as the PP&E System of Record. All other legacy systems are not the System of Record, and shall be decommissioned. We recognize that the system will evolve over time and the PMIS Change Control Board (CCB) will continue to review quarterly and contemplate development of or changes to the Department’s PMIS or HHS logistics business processes and forms. These actions shall first be done through the ASAM/OAMP.

Logistics staff shall use the performance measures developed for the logistical processes when planning any automated systems (i.e., supply, personal property, transportation, etc.).

1.1.9 OFFICIAL USE OF GOVERNMENT PROPERTY

No employee of the Department shall use or authorize the use of Government property for other than official purposes. Each OPDIV and STAFFDIV shall maintain effective personal property accountability and control system that meets the requirements of this manual. The prohibition and the penalty for misuse of government property is: Whoever embezzles, steals, purloins, or knowingly converts to his use or the use of another, or without authority, sells, conveys or disposes of any record, voucher, money, or thing of value of the United States or of any department or agency thereof, or any property made or being made under contract for the United States or any department or agency thereof; or whoever receives, conceals, or retains the same with intent to convert it to his use or gain, knowing it to have been embezzled, stolen, purloined or converted shall be fined under this title or imprisoned not more than ten years, or both. If the value of such property does not exceed the sum of $1,000, the individual shall be fined under

Page | 3 http://www.access.gpo.gov/nara/cfr/waisidx_01/41cfrv3_01.html this title or imprisoned not more than one year, or both. The word “value” means face, par, or market value, or cost price, either wholesale or retail, whichever is greater. (18 U.S.C. 641) Employee misuse of a Department vehicle is subject to disciplinary action which may range from a suspension of one (1) month or, up to and including, removal from Government employment (31 U.S.C 1349). See also Standards of Conduct, 5 CFR 2635.101(a), (11).

1.2.0 RESPONSIBILITIES

1.2.1 GENERAL

This part establishes authorities, roles, and responsibilities within HHS as they pertain to the planned acquisition, efficient utilization, physical/automated property systems accounting, and the appropriate disposition of personal property. This includes the management of supply, aircraft, motor vehicles, and transportation and traffic management.

It is HHS’ policy that each OPDIV and STAFFDIV establish and support logistics management functions in its organization and ensure that the logistics functions meet program needs economically and efficiently, according to applicable Federal statutes, regulations and the Logistics Management Manual (LMM).

1.2.1.1 GOALS

Objectives of the HHS logistics management program are to provide:

• A system to effectively manage Government personal property and supplies in the custody or used by HHS employees, HHS organizations, HHS contractors, and HHS grantee/cooperative agreement organizations.

• Uniform principles, policies, standards, and procedures for economical and efficient management of Government personal property that are (a) sufficiently broad in scope; (b) flexible in nature to simplify adaptation to local needs; and (c) various kinds of operations.

These include:

1. Effective planning and scheduling of logistics requirements to assure that supplies, equipment, and transportation are available to serve operations while, maintaining inventory levels at the lowest practicable level.

2. Assurance through leadership and direction that HHS will:

2.1 Obtain maximum utilization of property for official purpose only.

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2.2 Maintain adequate inventory levels and accountability records and controls.

2.3 Avoid unnecessary costs of acquisition by ensuring use of existing property has been considered prior to acquisition.

3. Care for property through proper preservation, preventive maintenance, handling and storage.

4. Assurance that property is available for reassignment to HHS OPDIVs and STAFFDIVs and other Government activities when such property is no longer required for existing or pending projects or programs.

5. Inspection of new property to assure receipt of proper quantities in acceptable condition, and that it complies with specifications and standards.

6. Submission of logistics management reports as required.

7. Conduct of periodic management reviews of logistics activities, including internal control reviews under the FMFIA program for determining compliance with prescribed policies and regulations, and the need for guidance or training. The reviews shall be conducted by qualified personnel preferably assigned positions not directly accountable or responsible for the property in the area reviewed.

1.2.2 ASSISTANT SECRETARY FOR ADMINISTRATION AND MANAGEMENT (ASAM)

The Secretary has delegated to the Assistant Secretary for Administration and Management (ASAM) the authority and primary responsibility for providing direction, leadership, and general supervision in the development and administration of an effective and efficient logistics management system:

1. Under the direction of the ASAM, the Office of Acquisition Management Policy

(OAMP) is responsible for:

• Establishing Departmental policies and procedures satisfying the requirements of law, regulations, and sound management practice in the functional areas of acquisition, logistics and travel.

• Deciding the necessity for, and making the appropriate recommendation to the Secretary regarding the use of Government‐ owned or controlled motor vehicles between home and place of employment by officials and employees of the Department

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2. The ASAM is responsible for developing, promoting, monitoring, administering, coordinating, and evaluating the Department‐wide logistics management program and shall:

2.1 Develop and maintain Departmental logistics management policies, standards and procedures;

2.2 Develop and publish Departmental issuances relating to logistics management;

2.3 Represent the Department with GSA and other agencies on matters relating to logistics management;

2.4 Submit consolidated Departmental reporting to GSA, Congress, and other Federal agencies, as required;

2.5 Provide staff assistance to OPDIVs and STAFFDIVs performing logistics management functions;

2.6 Develop logistics performance measures; provide training, information and procedures to help OPDIVs and STAFFDIVs in managing vital programmatic logistics resources.

2.7 Conduct reviews and appraisals of Departmental personal property, supply, and transportation management functions.

2.8 Oversee and provide executive management guidance with respect to the policies outlined in the Logistics Management Manual (LMM).

3. The ASAM shall also establish the HHS Logistics Management Committee (LMC) to assist in executing the primary responsibilities for logistics management. The LMC is chaired by the Director, Division of Logistics Policy and Programs (DLP) in OAMP.

Members are the incumbents of the senior logistics positions within the OPDIVs and STAFFDIVs. The positions held by LMC members are normally the heads of administrative areas which would include logistics management (i.e. Director, Office of Management Services, Director, Division of Logistics Services, or similar logistics related positions). The LMC has specific responsibility to assist in the planning, development and distribution of policies and related information for Department‐ wide logistics management. The LMC shall meet no less than twice annually.

1.2.3 RESPONSIBILITY OF OPERATING AND STAFF DIVISION HEADS

The heads of OPDIVS and STAFFDIVS have an inherent responsibility to manage all assets under their jurisdiction. Specifically, they are responsible for:

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• The effective utilization of the HHS’ Property Management Information System (PMIS) for all assets within the OPDIV or STAFFDIV. The PMIS shall be consistent with the requirements of this manual and shall be uniformly applied throughout the OPDIV and STAFFDIV community.

• The establishment of an internal standard operating guide or policy that ensures management's accountability at each echelon and provides optimum protection against fraud, waste, misuse, and abuse of Government property during the receipt, use, movement, maintenance, and disposal of equipment.

OPDIV and STAFFDIV guides and/or polices shall not weaken any HHS policies and must be consistent with the requirements of this manual. OPDIV and STAFFDIV Heads will formally appoint a Property Management Officer (PMO). The PMO, in turn, has the discretionary authority to appoint Supply Management Officers (SMO) and/or Property Accountability Officers (PAO), as needed. The Head of the OPDIV or STAFFDIV may act as the Determining Authority or formally appoint someone at the Administrative Officer level or higher to this position so long as it is not the Property Management Officer.

(See Part 16, Appendix A: Report of Survey Policy)

1.2.4 RESPONSIBILITIES OF PROPERTY MANAGEMENT OFFICERS (PMO)

Property Management Officers are the officials assigned to operate logistics management organizations. Their actions and those of their employees support the execution of the responsibilities assigned to the PMO. They work with other members of the activity to coordinate property planning and utilization to ensure effective and economical service in meeting operational needs.

The PMO is the individual who has the knowledge, position and authority to account for the effective control of the acquisition, use and disposal of personal property. The PMO of each OPDIV and STAFFDIV should make program management officers aware of the need to keep him/her fully informed of program objectives and changes affecting logistics management. The PMO is responsible for coordinating his/her analysis of program needs directly with the personnel responsible for the various segments of the total operation such as property accountability, supply, motor vehicle/aircraft, and transportation/traffic management. Their responsibilities include the following:

1. Provide leadership, and guidance in the proper accounting, utilization, care, and disposal of property.

2. Determine the requirements development for property based on a determined need within the program objectives.

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3. Decide property condition, including its serviceability and repairability.

4. Coordinate the process of board‐of‐survey actions according to instructions contained in the LMM (see section 1.2.2.) to the point of completion.

5. Ensure through staff leadership and technical assistance that prescribed property accountability and property inventory records are maintained and that controls on property are made known (where their supervisor's jurisdiction encompasses one or more accountable property areas).

6. Assure that property accountability records are reconciled by periodic inventories of property.

7. Establish policies and procedures that satisfy LMM requirements and the various laws and regulations referenced therein.

8. Ensure effective utilization of the HHS’ PMIS for all assets for which they have been designated the property management officer.

9. Ensure that proposed acquisitions are reviewed for satisfying requirements through potential reutilization or required source methods and application of use standards outlined in the LMM (see section 1.2.)

10. Ensure the establishment, training, and maintenance of the logistics management network comprised of all appointed and re‐appointed positions. (see sections 1.2.9 to 1.2.11)

11. Ensure review, study, evaluation, and improvement of the logistics program, functions, operations and procedures.

12. Provide technical advice and assistance to OPDIVs/STAFFDIVs on matters pertaining to logistics management and serving as the point of reference with the Department and external agencies on logistics matters.

13. Develop and implement inventory schedules for OPDIVs/STAFFDIVs, monitoring inventory progress, and providing assistance to support headquarters activities.

14. Ensure that required reports are provided.

15. Appoint, in writing, a Property Accountable Officer (PAO) to account for and control personal property assigned within his/her jurisdiction.

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16. Ensure that management and or organization supervisors designate in writing, applicable Inventory Managers (IM), Inventory Clerks (IC) and Asset Center Representatives (ACR) to assist the PAO in accounting and controlling personal property in his/her asset area.

17. In the absence of a designated representative for an asset area, designate in writing a manager or supervisor to assume interim responsibility for assets until a permanent IM, IC or ACR is designated.

18. Function as the coordination point for reuse and disposal of excess personal property which includes providing property staff with disposition instructions in accordance with the FPMR/FMR.

19. Ensure that excess personal property is deleted from the PMIS.

20. Assist OPDIV/STAFFDIV management in the development and operation of internal control systems and ensure their compatibility with Departmental programs and policies.

21. Coordinate with the Executive Officer on all matters pertaining to effective management and control of OPDIV and STAFFDIV personal property located in the regional offices.

1.2.5 RESPONSIBILITIES OF PROPERTY ACCOUNTABILITY OFFICERS (PAO)

Property Accountability Officers, as appointed by a PMO, are responsible for:

1. Ensuring effective administration and maintenance of a property accountability and control system within the accountable area for which they have been designated.

2. Determining the definition of asset areas within the accountable area;

recommending the designation of an Inventory Manager (IM) for each asset area;

ensuring that IMs have current records of the property for which they are responsible; that physical inventories are taken; that property is protected and maintained; and that survey reports for lost, damaged, or destroyed property are promptly prepared and processed.

3. Sharing joint responsibility with the OPDIV/STAFFDIV Financial Management Officer for personal property reports, and as necessary, in reconciling personal property accounting records and financial accounting records.

4. Providing reports as necessary to provide indicators of status, success, and/or weaknesses in the property management program.

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1.2.6 RESPONSIBILITIES OF SUPPLY MANAGEMENT OFFICERS (SMO)

The Supply Management Officer is principal official appointed by the OPDIV and STAFFDIV head and is responsible for providing functional management, leadership and assistance in the implementation of an effective supply management program including:

1. Ensuring that procedures related to this manual are developed, implemented and maintained.

2. Managing the OPDIV supply management system in accordance with this manual and with financial management policies.

3. Determining items to be designated for control in a supply management system.

4. Designating storage areas and supply points which provide for the preservation and protection of supply inventories.

5. Sharing joint responsibility with Financial Management Officer for supply fiscal reports, and as necessary, in reconciling inventory records and financial records.

6. Ensuring that the OPDIV is kept advised of significant supply matters.

7. Assisting OPDIV in the development and operation of internal control systems and ensuring their compatibility with Departmental programs and policies.

8. Conducting reviews and assessments of materials inventory management activities and reporting findings, facts and trends to appropriate OPDIV/STAFFDIV management officials.

1.2.7 TRANSPORTATION AND TRAFFIC MANAGEMENT OFFICER (TMO)

The Transportation and Traffic Management Officer is designated by the OPDIV and STAFFDIV Head and has responsibilities for all phases of freight transportation and traffic management. The Transportation and Traffic Management Officer is responsible for:

1. Interpreting, adapting, and implementing Federal traffic and transportation regulations through development of policies and procedures, and directives designed to establish an effective freight transportation and traffic management program.

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2. Developing specific guidelines for packing, crating, and consolidation of shipments to assure safe and economical transit to destinations.

3. Maintaining a close liaison with Federal regulatory agencies, carrier representatives and HHS employees to accomplish the required objectives of the transportation and traffic management program.

4. Considering type and purpose of each shipment, handling required to meet speed and convenience requirements, carrier dependability and ability to render special services, etc.

5. Recommending alternatives for movement of freight to meet emergency situations such as time limits, breakdowns in carrier schedules, excessive temperature variations, etc.

6. Studying and analyzing of the many factors that affect traffic management services;

e.g., tariffs, rates, routes, carriers' operating practices and equipment, freight movement patterns, safety requirements, shipping facilities, packing and loading methods, and receiving functions.

7. Investigating cases of lost or damaged shipments, processing of claims for loss, damage, excessive charges, etc., and negotiation with carriers for settlement.

8. Evaluating, analyzing and consolidating report data.

1.2.8 DEPARTMENT FLEET MANAGEMENT OFFICER (FMO)

The Department Fleet Manager, located in the Assistant Secretary for Administration and Management (ASAM), Office of Acquisition Management and Policy (OAMP), is responsible for establishing and monitoring the Departmental motor vehicle program, including developing adequate accounting and reporting of motor vehicles.

1.2.8.1 OPDIV FLEET MANAGEMENT OFFICER (OPDIV FMO)

The OPDIV Fleet Manager is designated by the OPDIV Head and is responsible for:

1. Implementing HHS policy and direction.

2. Developing and implementing local policy guidance to the OPDIV's local motor vehicle managers.

3. Providing advice and guidance to the OPDIV's local motor vehicle managers.

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4. Investigating reports of vehicle misuse.

5. Analyzing vehicle usage to assure maximum economies are achieved

6. Reviewing national vehicle operations to assure FPMR/FMR and HHS requirements are carried out.

7. Planning and executing Departmental Transportation Management programs and procedures as detailed in Executive Orders, (e.g. EO 13423 Strengthening Federal Environmental, Energy, and Transportation Management) and/or Code of Federal Regulations 41 C.F.R. 102‐117.

1.2.9 RESPONSIBILITIES OF INVENTORY MANAGERS (IM)

The IM is designated by the OPDIV and STAFFDIV Head for the immediate physical custody of all personal property under their control. The designation as IM may or may not correspond to the individual's official job title. The IM is responsible for:

1. Maintaining current inventory records for all in‐use accountable personal property within their assigned asset area(s).

2. Initiating or processing documents affecting accountability or custody of equipment.

3. Ensuring that all movement of accountable and non‐accountable personal property into or out of the asset area is documented, and that documentation is provided to the PAO.

4. Continuing surveillance to ensure that property is accorded proper maintenance and protection, and is used only for official purposes.

5. Identifying and reporting to the PAO any property which is not required for use in the asset area.

6. Ensuring that property determined to be missing is promptly reported to the security office.

7. Ensuring the prompt submission of a Report of Survey for Lost, Misused, Damaged, or Destroyed Property.

8. Assisting the OPDIV or STAFFDIV property management office in the taking of a physical inventory and conducting his/her own personal physical inventory when deemed appropriate.

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9. Assisting in exit clearance procedures including accounting for all assigned property.

10. Conducting periodic utilization surveys to ensure compliance with prescribed use standards and to screen for excess property;

11. Ensuring that additions, transfers, and deletions are fully supported and entered in the HHS’ PMIS in a timely manner.

1.2.10 RESPONSIBILITIES OF INVENTORY CLERKS (IC)

The IC is an optional function designated by the Property Management Officer1 to assist the designated organization’s IM or other established authority for the immediate physical custody of all the personal property in one or more specific areas under their control. The designation as IC may or may not correspond to the individual’s official job title. (Not all organizations will require this role, the size of the organization will determine if this position is necessary.) The IC is responsible for:

1. Maintaining current inventory records for all in‐use accountable personal property within their assigned asset area(s).

2. Initiating or processing documents affecting accountability or custody of equipment.

3. Ensuring that all movement of accountable and non‐accountable personal property into or out of the asset area is documented, and that documentation is provided to the PAO.

4. Continuing surveillance to ensure that property is accorded proper maintenance and protection, and is used only for official purposes.

5. Identifying and reporting to the PAO any property which is not required for use in the asset area.

6. Ensuring that property determined to be missing is promptly reported to the security office.

7. Ensuring the prompt submission of a Report of Survey for Lost, Misused, Damaged, or Destroyed Property.

1 Establishment of a Property, Plant & Equipment (PP&E) Inventory Clerk (IC) shall be determined by the Property Management Officer (PMO) in consultation with the OPDIV Head based upon the size and complexity of the OP/STAFF Division’s PP&E portfolio

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8. Assisting the OPDIV or STAFFDIV property management office in the taking of a physical inventory and conducting his/her own personal physical inventory when deemed appropriate.

9. Assisting in exit clearance procedures to ensure that all assigned property is accounted for.

10. Conducting periodic utilization surveys to ensure compliance with prescribed use standards and to screen for excess property.

11. Ensuring that additions, transfers, and deletions are fully supported and entered in the personal property control system in a timely manner.

1.2.11 RESPONSIBILITIES OF THE ASSET CENTER REPRESENTATIVE (ACR)

The ACR is designated by the PMO or other established authority to assist the designated organization’s IM for the immediate physical custody of all personal property under their control. The designation as ACR may or may not correspond to the individual’s official job title. (Not all organizations will require this role, the size of the organization will determine if this position is necessary.) The ACR is responsible for:

1. Maintaining current inventory records for all in‐use accountable personal property within their assigned asset area(s).

2. Continuing surveillance to ensure that property is accorded proper maintenance and protection, and is used only for official purposes.

3. Identifying and reporting to the IM and/or PMO any property which is not required for use in the asset area(s).

4. Ensuring that property determined to be missing is promptly reported to the security office.

5. Assisting the OPDIV property management office in the taking of a physical inventory and conducting his/her own personal physical inventory when deemed appropriate.

6. Conducting periodic utilization surveys to ensure compliance with prescribed use standards and to screen for excess property.

1.2.12 RESPONSIBILITIES OF REGIONAL OFFICES (RO)

HHS OPDIVs have the authority to organize themselves into multiple geographic Regions

Page | 14 in order to better execute their statutory duties. Within said Regions, the Director of each Region in turn is authorized to designate a Regional PMO (RPMO). Notice of such designation shall be forwarded to the Director of Logistics Branch (DLB), Program Support Center (PSC) and ASAM/OAMP/DLP. The RPMO is the individual appointed within each Region who has knowledge, stature, authority, and accountability required to control and provide periodic assurance that the logistics management actions of all components, including regional Operating and Staff Divisions, located in their respective Region are being correctly performed.

In addition, the RPMO shall provide status reports to the PSC, to assure that all logistics management actions of the entities in their respective Region are being performed correctly. RPMOs are responsible for the following logistics functions:

1. Implementing, administering and maintaining the logistics management program within the region.

2. Supporting the region's logistics management network, comprised of PAOs, IMs, Boards of Survey, and coordinating the regions logistics activity.

3. Training the region's PAOs, IMs, and Boards of Survey, and providing assistance as necessary.

4. Submitting the proper paperwork or data for any property, that has been approved as excess by an OPDIV, to the General Services Administration.

5. Managing the HHS’ PMIS and control the assignment of bar code labels or other identifiers to personal property items.

6. Scheduling inventories and utilization walkthrough surveys, monitoring inventory progress, providing guidance and assistance as required, and reporting the status of inventories to the Director, PSC, and ASAM.

7. Reviewing the acquisition process to assure compliance with regulations pertaining to supply sources and to maximize the use of excess property.

8. Developing and maintaining logistics management operations procedures.

9. Submitting annual reporting requirements to the DLP.

10. Keeping ASAM advised, quarterly or more frequently if warranted, of the progress being made to resolve deficiencies where findings of material weaknesses, management letters, or other serious problems within the property management areas have been uncovered based on HHS Inspector General, Government

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Accountability Office, law enforcement, or independent audit findings

1.2.13 BOARDS OF SURVEY (BOS) AND SURVEY OFFFICERS

PMOs, having been designated the authority by OPDIV heads (see Part 16, Appendix, A) to appoint, either permanently or on an as‐required basis, Boards of Survey (BOS) consisting of three or more members or a Survey Officer to review and investigate incidents involving loss, damage, misuse, or destruction of Government property. The Board of Survey or Survey Officer will also make recommendations to the appropriate Office of the General Counsel with respect to any financial liability for such property and provide authorization for removal of items from official property records. Procedures and actions to be taken are found at Part 16, Appendix A, "Report of Survey Policy".

Responsibilities of the BOS include:

1. Investigating circumstances surrounding the reported loss, theft, damage, or destruction of personal property.

2. Providing recommendations regarding proposed cannibalization, scrap, salvage, abandonment or destruction of personal property having a unit acquisition cost of $1,000 or more. In the event the ROS is for an item with a unit acquisition cost less than $1,000, the Survey Officer can provide recommendations without convening a

BOS.

3. Determining if reported loss, damage or destruction of Government property was the result of employee negligence, misconduct or reckless disregard for the property and providing findings and recommendations of employee liability to OGC and the appropriate line managers.

4. As appropriate, forwarding reports with findings and recommendations to legal and investigative offices for further review and action.

1.2.14 RESPONSIBILITIES OF CONTRACTING OFFICERS AND GRANTS MANAGEMENT

OFFICERS (CO & GMO)

Contracting Officers in coordination with the OPDIV logistics office shall assure that all contracts that involve government furnished property contain the applicable Federal Acquisition Regulation (FAR) property clause; and assure that contractors' property control systems are reviewed, appraised, and approved as provided in FAR

45.104. See also, Part 16, Appendix O.

Grants Management Officers shall ensure that any Government property acquired by a commercial organization under an HHS grant or cooperative agreement is administered in the same manner as contractor held property. (See HHS Grants Administration and 45

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CFR Part 74 et seq.).

1.2.15 HHS EMPLOYEES

Each HHS employee who has use of, supervises the use of, or has control over Government property is responsible for that property. The responsibility may take either or both of the following forms:

1. Supervisory responsibility, in which an officer‐in‐charge, an administrative officer, or supervisor is obligated to establish and enforce necessary administrative and security measures to ensure proper preservation and use of…