Appendix A - Former Government Property Management Plan from DZI.docx

Day & Zimmermann Lone Star LLC

GOVERNMENT PROPERTY MANAGEMENT PLAN

Day & Zimmermann Lone Star LLC Highway 82 West Texarkana, TX 75505-9100

GOVERNMENT PROPERTY MANAGEMENT PLAN

SCOPE

This Government Property Management Plan applies to Government Furnished Property (“GFP”) acquired under any contract or subcontract (“Contract”) that includes a property clause under FAR 52.245-1.

Day & Zimmermann Lone Star LLC (DZLS) will manage (control, use, report as required, preserve, protect, repair and maintain) all GFP in its possession and will initiate and maintain the processes, systems, procedures, records, and methodologies necessary for effective control of GFP, consistent with voluntary consensus standards and/or industry-leading practices and standards for GFP management except where inconsistent with law or regulation. During the period of performance, DZLS will disclose any significant changes to this Property Management Plan to the appropriate Contracting Agency (“Government”) prior to implementation. If DZLS is a subcontractor to a prime contractor, then the disclosure will be made to the prime contractor (“Prime”).

DZLS’s responsibility extends from the initial acquisition and receipt of GFP, through stewardship, custody, and use until formally relieved of responsibility by authorized means, including delivery, consumption, expending, sale (as surplus property), or other disposition, or via a completed investigation, evaluation, and final determination for lost, stolen, damaged, or destroyed property, and applies to all GFP under DZLS’ accountability, stewardship, possession or control, including its vendors or subcontractors.

Throughout this Plan, reporting and notification will be understood to be to the Government when DZLS is the prime contractor, and to the Prime when DZLS is a subcontractor.

USE OF GOVERNMENT PROPERTY

DZLS will use GFP, either furnished or acquired under the Contract, only for performing the Contract, unless otherwise provided for in the Contract or approved by the Government or Prime.

MANAGEMENT AND ACQUISITION

Under DZLS’ property management system, the Director of Facilities and Operations (DFO) oversees purchasing, receiving and stores, and surplus property functions in accordance with the requirements of FAR 52.245-1 and any additional, applicable contractual and/or legal requirements. The DFO works with the Corporate Management staff to enable the following outcomes:

DZLS will document that all GFP was acquired consistent with its property control operations.

DZLS will receive GFP, document such receipt, record information as defined below, identify the property as Government owned, and manage any discrepancies incident to shipment.

DZLS will notify the Government or Prime when it receives GFP and will provide to the Government or Prime necessary invoices or other documents on how the GFP was acquired. DZLS will track all GFP and provide inventory reports to the Government or Prime as described below.

If overages, shortages, or damages and/or other discrepancies are discovered upon receipt of GFP, DZLS will provide a written statement to the Government or Prime containing all relevant facts, such as cause or condition and a recommended course(s) of action.

For contractor-acquired property, DZLS will take all actions necessary to adjust for overages, shortages, damage and/or other discrepancies discovered upon receipt from a vendor or supplier so as to ensure the proper allocability and allowability of associated costs, and will notify the Government or Prime when such actions impact costs or schedules.

RECORDS AND REPORTS

DZLS will create and maintain records of all GFP and contractor-acquired property accountable to the Contract. Property records will enable a complete, current, auditable record of all transactions and will contain the following:

(1) The name, part number and description, manufacturer, model number, and National Stock Number (if applicable).

(2) Quantity received (or fabricated), issued, and balance-on-hand.

(3) Unit acquisition cost.

(4) Unique-item identifier (if available).

(5) Unit of Measure. (6) Contract number. (7) Location.

(8) Disposition.

(9) Posting reference and date of transaction.

(10) Date placed in service.

DZLS will perform an annual physical inventory of property for which it is accountable to the Government and will report such inventories to the Agency or Prime. Inventories will be performed more frequently if required by the Agency.

DZLS Government Property Management Plan

DZLS will investigate and report all incidents of loss, damage, destruction, or theft of GFP to the Government or Prime. Such reports will include, in accordance with FAR 52.245-1:

(1) Date of incident (if known).

(2) The name, commercial description, manufacturer, model number, and National Stock Number (if applicable). (3) Quantity.

(4) Unique-item Identifier (if available). (5) Accountable Contract number.

(6) A statement indicating current or future need.

(7) Acquisition cost, or if applicable, estimated scrap proceeds, estimated repair or replacement costs.

(8) All known interests in commingled property of which the Government property is a part.

(9) Cause and corrective action taken or to be taken to prevent recurrence.

(10) A statement that the Government will receive any reimbursement covering the loss, theft, damage or destruction in the event the Contractor was or will be reimbursed or compensated.

(11) Copies of all supporting documentation. (12) Last known location.

(13) A statement that the property did or did not contain sensitive or hazardous material, and if so, that the appropriate agencies were notified.

UTILIZATION

DZLS will utilize, consume, move, and store GFP only as authorized under the Contract. DZLS will promptly disclose and report GFP in its possession that is excess to Contract performance.

MAINTENANCE

DZLS will properly maintain GFP and will verify the performance of calibration and routine preventative maintenance and repair at each physical inventory. DZLS will disclose and report to the Government or Prime the need for replacement.

CLOSEOUT

DZLS will promptly perform and report to the Government or Prime property closeout, consistent with contract terms and to include reporting, investigating and securing closure of all loss, theft, damage or destruction cases; physically inventorying all property upon termination or completion of the Contract; and disposing of items at the time they are determined to be excess to contractual needs.

SUBCONTRACTOR CONTROL

If DZLS issues a subcontract under the Contract and provides to the subcontractor property for which DZLS is accountable to the Government, the requirements of this Government Property Management Plan shall flow down to the subcontractor, with all reporting to be made through DZLS to the Government or Prime. DZLS will ensure its subcontracts are properly administered and reviews will be periodically performed to determine the adequacy of the subcontractor's property management system.

AUDIT AND SELF-ASSESSMENT

DZLS’ Purchasing System is operated by the DFO and periodically audited as part of the ISO 9001 certification process by an independent agency. DZLS’ Government Property Control System and Receiving & Stores and Inventory Control & Surplus Property functions are audited periodically by the DZLS Management team. Significant findings and/or results of such reviews and audits pertaining to Government property shall be made available to the Government or Prime.

ACCESS BY GOVERNMENT

DZLS will provide access to the Government or Prime, at reasonable times, to DZLS facilities and all GFP for the purposes of reviewing, inspecting and evaluating DZLS’ property management plan(s), systems, procedures, records, and supporting documentation that pertains to GFP. Records of GFP shall be readily available to authorized Government and Prime personnel and shall be appropriately safeguarded.