Attachment 04 Property Management System Procedures.docx

<INSERT CONTRACTOR NAME>

PROPERTY MANAGEMENT SYSTEM

Once the Property Administrator determines that a contractor’s Property Management System procedures are in compliance with contractual terms and conditions and regulatory requirements (e.g. FAR, DFARS), the focus then turns to determining whether or not the contractor is following those procedures. During the PMSA, the Property Administrator is essentially evaluating whether or not the contractor is actually accomplishing its Government Property processes as described/ detailed in its Property Management System procedures. In accordance with FAR 52.245-1(g)(1), the “Government shall have access to the contractor’s premises and all Government Property, at reasonable times, for the purposes of reviewing, inspecting, and evaluating the contractor’s property management plan(s), systems, procedures, records, and supporting documentation that pertains to Government Property.” The Property Administrator should have unrestricted access to any location/facility where Government Property is located.

TABLE OF CONTENTS

V. OUTCOMES

VII. ASSOCIATED DOCUMENTS __

I.PURPOSE

A. Introduction - The purpose of this Property Management System/Property Management Plan is to establish <INSERT CONTRACTOR NAME> formal property procedure with a focus on the management of all categories of property including corporate, government, and customer, assets.

The property function is responsible for establishing an infrastructure that will facilitate property management through the entire life cycle of an asset. This includes developing and implementing detailed policies, procedures, operating guidelines and recordkeeping system(s).

This Plan provides policies and procedures for all property management for <INSERT CONTRACTOR NAME>, its wholly owned subsidiaries, joint ventures where <INSERT CONTRACTOR NAME> has a controlling interest, and its Subcontractors. Program/Project Managers and Subcontractors are required to use this Plan except where inconsistent with law, regulation or contract provisions. Government and k management is the responsibility of all <INSERT CONTRACTOR NAME>’s employees and subcontractors. This Property Management System/Property Management Plan, together with Program Property Plans, ISO, and ASTM Standards cited, guides each employee in this task.

1 Referenced applicable regulations consist of:

Federal Acquisition Regulations (FAR) The Federal Management Regulation (FMR) Department of Defense FAR Supplement (DFARS) Federal Emergency Management Agency (FEMA) NASA FAR Supplement 1845

2. Federal Agency Regulations to include, but not limited to: applicable regulations consist of the Federal Acquisition Regulations (FAR) and Department of Defense FAR Supplement (DFARS).

B. Goals - To provide general guidance on the management of customer and company owned property on or relating to <INSERT CONTRACTOR NAME> contracts.

1. To ensure that all programs and company departments are compliant with a single property management standard across <INSERT CONTRACTOR NAME>.

2. Ensure property management activities of all programs and company departments reflect an integrated global enterprise in concert with overall <INSERT CONTRACTOR NAME> goals and objectives.

3. Review and provide recommendations to senior management regarding all property and sourcing related changes to <INSERT CONTRACTOR NAME>’s property management system.

4. Develop and assist with the implementation of corporate and government property policies and procedures.

C. Standards - <INSERT CONTRACTOR NAME> shall apply voluntary consensus standards (VCS) and/or industry-leading practices (ILP) except where inconsistent with the contract, law or regulation and shall be the guiding principal of this document. Adherence to this property management plan is required by all facilities and programs within <INSERT CONTRACTOR NAME> and should there be a need for a deviation, a request for waiver from this Property Management System/Property Management Plan shall be sent to the Property Director. These procedures will be reviewed and any required updates will be approved and published changes will be identified with a change bar.

The standards applied by <INSERT CONTRACTOR NAME> will include, but are not limited to:

American Society for Testing and Materials (ASTM) Defense Logistics Information Service Standards (DLIS) Industry-Leading Practices (ILP) Voluntary Consensus Standards (VCS) International Organization for Standardization (ISO) 9001

STANDARDS

Contractor shall apply voluntary consensus standards (VCS) and/or industry-leading practices (ILP) except where inconsistent with the contract, law or regulation and shall be the guiding principal of this document. Adherence to this property management system is required by all facilities and programs within <INSERT CONTRACTOR NAME>, and should there be a need for a deviation, a request for waiver from this plan shall be sent to the Property Administrator. This plan will be reviewed and any required updates will be approved and published changes will be identified with a change bar.

The standards applied by Contractor will include, but are not limited to:

American Society for Testing and Materials (ASTM) Defense Logistics Information Service Standards (DLIS) Industry-Leading Practices (ILP) Voluntary Consensus Standards (VCS) International Organization for Standardization (ISO) 9001

D. Changes - All requests for changes shall be forwarded, in writing, to <INSERT CONTRACTOR NAME> Corporate Property for action as required. Major changes requiring improvements, such as software enhancements, new business processes, business requirements, new software features, and new report capabilities that affect multiple programs shall be approved by the Property Director.

II. APPLICABILITY

This procedure is applicable to all of <INSERT CONTRACTOR NAME>, its majority-owned subsidiaries and subcontractors possessing or managing customer or company property. In cases where the contract imposes different or more stringent requirements than this procedure, the contract shall take precedence. Program Managers are required to inform <INSERT CONTRACTOR NAME>’s Corporate Property of any conflicts between this procedure and their contract.

III. RESPONSIBILITIES

Program Manager (PM) – The individual who has overall responsibility for all property (Government, Customer) issued to or acquired by <INSERT CONTRACTOR NAME > to perform contract functions assigned to their program.

Must ensure all Property Management Systems and procedures, and associated official records, are maintained under the terms of the contract and that all applicable property controls and procedures are applied to all subcontractors supporting the Program/Contract.

The PM shall appoint a Program Property Manager (PPM), in writing, for the accountability of all property (Government, Customer, and Contractor) under their program, project or field site.

Shall designate a Program Property Manager Alternate (PPMA) for all alternate site locations (remote sites and subcontractors), in writing, for each field site(s) for the program Ensure all written appointments/designations of Program Property Managers and alternate location managers are submitted to corporate property.

Ensure that corporate property is notified of changes to any Appointments/designations within the program within 10 days of said change.

Ensure that the intent of this procedure is met.

Ensure that local procedures/work instructions are created and implemented as necessary to ensure compliance with customer and Contractor property management requirements.

Program Property Manager (PPM) – The individual who is accountable and manages all property for a specific program or contract and establishes and maintains the formal accounting records for <INSERT CONTRACTOR NAME >. This is accomplished in a manner that ensures all Government property regulations and contract requirements are complied with.

Upon appointment to the Program Property Manager position, reviews all property and records and provides a report of the results to the Program Manager with a copy to Corporate Property within 30 workdays. The report shall contain a summary of property by classification and ownership showing the number of line items and the dollar value as detailed in “Reports” of this procedure. A certification of acceptance of the property accounts shall be included as acceptable or with noted deficiencies found.

Establishes and defines program specific property procedures for the management of property (government, customer, and Contractor--owned) within the program in accordance with the specific contract, FAR, DFAR, etc., requirements. New procedures will be submitted to Corporate Property for compliance review.

Ensures all property management procedures, and associated official records, are maintained under the terms of the contract, and that applicable property controls and procedures are applied to all subcontractors, vendors and all customer requirements are achieved.

Ensures all changes to Property Management System, are submitted to Corporate Property for approval prior to implementation.

The PPM must have a strong knowledge of the FAR, DFARS, the US Government Guide Book and Property Management System Analysis (PMSA) process.

The PPM ensures that all property (<INSERT CONTRACTOR NAME>, GP and customer) is recorded on the accountable records for the program to include alternate locations (remote sites and subcontractors). Maintain a list of current property custodians, current signed Hand Receipts and date of last inventory.

Prompt, accurate responses are provided, with the assistance of Contractor Property and assigned Contracts Manager, to all Government inquiries regarding property management issues.

Ensures that all employees for a specific program, assigned custodianship or responsibility for property (Government Property or Contractor-owned) understand their responsibilities and effectively and efficiently implement the Property Management System and that new employees receive instructions on property management procedures during the new employee orientation process.

Ensures maintenance, preventive maintenance and calibration schedules and performance requirements are established and executed on schedule. These requirements are based on Government-published or manufacturer-recommended requirements.

Ensures that property reviews and self-assessments are conducted monthly and that the results are provided to Corporate Property.

Ensure that all excess property is promptly reported as noted in the Utilization, Consumption, Movement and Storage of this procedure.

Periodic physical inventories of Contractor and GFP are scheduled and performed as required by the contract and the Program Property Management System and Program Inventory Plan. The schedule of periodic inventory shall be performed monthly, quarterly, bi-annually and annually, and reviewed prior to submission to the Government Property Administrator through assigned Contracting Officer Representative (COR).

Loss, Theft, Damage, or Destruction (LTDD), DFARS 252.245-7002 covers (1) Items that cannot be found after a reasonable search; (2) Theft; (3) Damage resulting in unexpected harm to property requiring repair to restore the item to usable condition; or (4) Destruction resulting from incidents that render the item useless for its intended purpose or beyond economical repair. Any loss, theft, damage, or destruction should be reported to Corporate Property immediately timely manner in accordance with Reports of Lost, Theft, Damaged, Destruction (LTDD) of Government Property of this Property Management System/Property Management Plan.

Notify Corporate Property immediately of any outside inquiry or audits of the property management function by an outside activity or agency. These inquiries will be passed on to appropriate Government Contracting Officer's Representative (COR), Government Quality Analyst and Government Property Administrator immediately, departments, contracts and government compliance.

Provide written contract close out transition plans to include the transition inventory process to <INSERT CONTRACTOR NAME> Corporate Property for approval 30 days prior to the submission to the Government/customer through assigned contracts manager.

Program Property Manager Alternate Location/Sites (PPMA) – The individual who manages property for a specific program or contract at an alternate location (remote sites) or subcontractor location. This individual is accountable and responsible for all of the program’s property (government, customer, and contractor-owned) at that specific alternate site/location. Works with the PPM and PM to ensure all government/customer property requirements are attained. The PPMA implements the same tasks as identified above for the Program Property Manager as they apply to the alternate location site.

Property Custodian (PC) – Individual who signs for and is responsible for Contractor, government or customer property on a Hand Receipt. Property Custodians may be a contractor employee, subcontractor or government employee and their responsibility extends from the initial signing for receipt of property, through stewardship and use until formally relieved of responsibility by authorized means, including delivery, consumption, expending, disposition or via a completed investigation, evaluation, and final determination for lost, theft, damaged or destroyed property.

Sub-Property Custodians (SPCs) – The PPM/PPMA may authorize Sub-Property Custodians where necessary to maintain a reasonable span of control for the property. The Sub-Property Custodian shall report to the Property Custodian and duties and responsibilities shall be the same as the Property Custodian.

Employees/Subcontractor Personnel – Property Management, whether it is in support of Government, Customer, or Contractor property, is the responsibility of all persons employed by Contractor including subcontractor and temporary employees. This Property Management System (PMS), together with Program PMS, SOPs and ISO procedures guide each employee in this task. Each employee assumes complete responsibility for all property assigned to them, or under their individual area of responsibility, whether via hand receipt or assumed with position responsibility.

IV. DEFINITIONS & ACRONYMS

A. Definitions

Accountability – The obligation to keep records of property, documents, or funds such as identification data, gains, losses, due-ins, due-outs and balances on hand or in use. The obligation imposed by contract, law or regulation and including corporate policy for keeping accurate records of property, documents or funds. The person having this obligation may or may not have actual possession of the property documents or funds.

Approved Scrap Sale – An approved scrap sale is a sale conducted in accordance with General Services Administration standard scrap sale procedures.

Awaiting Maintenance (AWM) – Bits and pieces are ordered, the work center updates Core Automated Maintenance System (CAMS) status to show the repair action is on hold for parts. Awaiting Parts (AWP) occurrences must be included on the AWP validation listing. After bits and pieces are issued, the work center updates CAMS with a new estimated completion date and time; the prime work center maintains and secures all AWP.

Cannibalize – To remove parts from Government property for use or for installation on other Government property.

Capital type Rehabilitation – Work that is clearly above and beyond normal recurring maintenance, such as major repairs, replacement, and rehabilitation of deteriorated property.

Co-location – Locating material, equipment, Special Tooling or Special Test Equipment within the same storage area that is marked and identified by ownership and/or contract/task order.

Commingle material – Storing of material (same part number/NSN) of different ownerships or contracts/task orders in a single bulk bin or container without physical marking of each item by ownership or contract/task order.

Consumption – The process of incorporating government material in quantities that are reasonable compared to requirements such as bills of materials requirement list, or established scrap rates.

Contract Sensitive Property - items designated by the Government / Customer to be controlled as sensitive that do not meet the FAR /DFAR definition of sensitive.

Contractor-acquired property – Property acquired, fabricated, or otherwise provided by the contractor for performing a contract, and to which the Government has title. Ref: FAR 45.101 and 52.245-1(a) Definitions.

Contractor inventory –

(1) Any property acquired by and in the possession of a contractor or subcontractor under a contract for which title is vested in the Government and which exceeds the amounts needed to complete full performance under the entire contract;

(2) Any property that the Government is obligated or has the option to take over under any type of contract, e.g., as a result either any changes in the specifications or plans thereunder or of the termination of the contract (or subcontract there under), before completion of the work, for the convenience of or at the option of the government; and

(3) Government-furnished property that exceeds the amounts needed to complete full performance under the entire contract.

Controlled Property – Property that requires additional controls as designated by customer property accounting requirements.

Corrective Maintenance – Maintenance required that returns property to such condition that it may be effectively utilized for its designated purpose.

DoD Unique Item Identification – A system of marking items delivered to DoD with unique item identifiers that have machine-readable data elements to distinguish an item from all other like and unlike items. For items that are serialized within the enterprise identifier, the unique item identifier shall include the data elements of the enterprise identifier and a unique serial number. For items that are serialized within the part, lot, or batch number within the enterprise identifier, the unique item identifier shall include the data elements of the enterprise identifier; the original part, lot, or batch number; and the serial number. Ref: DFARS 252.211-7003.

Equipment – A tangible item that is functionally complete for its intended purpose, durable, nonexpendable, and needed for the performance of a contract. Equipment is not intended for sale, and does not ordinarily lose its identity or become a component part of another article when put into use. Equipment does not include material, real property, special test equipment or special tooling. Ref: FAR 45.101 and 52.245-1(a) Definitions.

Export Administration Regulations (EAR) Property – Regulates the export of dual-use and commercial commodities, which are identified in the Commerce Control List (CCL).

Government Furnished Property – Property in the possession of, or directly acquired by, the Government and subsequently furnished to the contractor for performance of a contract. Government-furnished property includes, but is not limited to, spares and property furnished for repair, maintenance, overhaul, or modification. Government-furnished property also includes contractor-acquired property if the contractor-acquired property is a deliverable under a cost contract when accepted by the Government for continued use under the contract. Ref: FAR 45.101 and 52.245-1(a) Definitions. Government Furnished Property also includes property acquired by the contractor via MILSTRIP, FEDSTRIP or FSS.

Government Property – Property owned or leased by the Government. Government property includes both Government-furnished property and contractor-acquired property. Government property includes material, equipment, special tooling, special test equipment, and real property. Government property does not include intellectual property and software. Ref: FAR 45.101 and 52.245-1(a) Definitions.

Government Property Administrator (GPA) – an individual designated by the Contracting Officer to administer Government Property on a contract for the Government/customer.

International Traffic in Arms Regulations (ITAR) property – A set of United States government regulations that control the export and import of defense-related articles and services on the United States Munitions List (USML). Its goal is to safeguard U.S. national security and further U.S. foreign policy objectives.

Local Stock Number – A 13-digit number unique to <INSERT CONTRACTOR NAME> and constructed similarly to a NSN. The first two digits of the NIIN are “__” to identify <INSERT CONTRACTOR NAME> and the remaining seven digits are a unique, sequential number that is not repeated within DSI.

Lot or batch number – An identifying number assigned by the enterprise to a designated group of items, usually referred to as either a lot or a batch, all of which were manufactured under identical conditions Ref: DFARS 252.211-7003.

Low Risk Property - assets that are monitored and controlled at the discretion of asset managers and typically consist of low risk expendables or durable equipment and tooling based on established and disclosed criteria.

Maintenance / Repair – All actions necessary for retaining property in or restoring it to a serviceable condition. Maintenance includes servicing, repair, modifications, modernization, overhaul, inspection, condition determination, and initial provisioning of support items. All supply and repair action to keep a force in condition to carry out its mission. The routine, recurring work required to keep a facility (plant, building, structure, ground facility, utility system, or other real property) in such a condition that it may be continuously utilized, at its original or designed capacity and efficiency, for its intended purpose.

Material – Property that may be consumed or expended during the performance of a contract, component parts of a higher assembly, or items that lose their individual identity through incorporation into an end-item. Material does not include equipment, special tooling, special test equipment or real property. Ref: FAR 45.101 and 52.245-1(a) Definitions.

Movement – Includes relocation of property from the initial receiving point to the end user or ultimate destination. Movement may be within a facility to a different accounting entity or between remote sites/locations to include transfers, transfers to other contracts, reparables and final disposition.

Movement documents – Examples would be one of the following: turn-in documents, move tickets, and shipping orders, site transfers.

National Stock Number – A 13-digit number cataloged in the Federal Logistics Information System (FLIS) identifying an item. The NSN is standardized and consists of the Federal Stock Class in the first four digits and the National Item Identification Number (NIIN) in the next nine digits. The NIIN is comprised of the country code for the country code cataloging the item in the first two digits with the remaining seven digits being a unique number that is not repeated within the FLIS.

Operator Maintenance – Maintenance tasks of a minor nature, including preventive maintenance, performed by equipment operators at the most convenient time; i.e., before, during, and after operations.

Physical Inventories – The process of physically locating and counting property and comparing it to records of such property, including the posting of findings and adjustments and the reporting of adjustments through Corporate Property or an individual designated by Corporate Property, to the Government Property Administrator.

Preventive Maintenance – The care and servicing by personnel for the purpose of maintaining equipment and facilities in satisfactory operating condition by providing for systematic inspection, detection, and correction of incipient failures before they become actual failures.

Property – Tangible property, both real and personal. Ref: FAR 45.101 and 52.245-1(a).

Property Control (Asset) Tags – Contain an identification number assigned and placed on the asset to identify it visually by ownership and link it to the property control and financial and fixed assets accounting records. This is not to be confused with the DoD UID identification and reporting requirement. The contractor is not required to tag, label, or mark Government-furnished property previously tagged, labeled or marked.

Property records – Records created and maintained by the contractor in support of its stewardship responsibilities for the management of Government Property. Ref: FAR 45.101 and 52.245-1(a) Definitions.

Real property – Any interest in land, together with the improvements, structures, and fixtures located thereon (including prefabricated movable structures, such as Butler-type storage warehouses and Quonset huts, and house trailers with or without undercarriages), and appurtenances thereto, under the control of any Federal agency. For exceptions see Federal Management Regulation 102-71.20 (41 CFR 102-71.20). Reference FAR 45.101 and 52.245-1(a).

Responsibility – The obligation for the proper custody, care, and safekeeping of property or funds entrusted to the possession or supervision of an individual. Any person (employee, subcontractor, vendor) having <INSERT CONTRACTOR NAME>.property, government property or the obligation for the customer’s property in their custody or under their supervision, assumes a corporate and/or public trust that the property will be used only for its intended purpose and as authorized by contract, law or regulations.

Sensitive property – Property potentially dangerous to the public safety or security if stolen, lost, or misplaced, or that shall be subject to exceptional physical security, protection, control, and accountability. Examples include weapons, ammunition, explosives, controlled substances, radioactive materials, hazardous materials or wastes, or precious metals. Ref: FAR 45.101 and 52.245-1(a) Definitions. See also “Contract Sensitive Property”.

Serially-managed item – An item designated by DoD to be uniquely tracked, controlled, or managed in maintenance, repair, and/or supply systems by means of its serial number. Ref: DFARS 252.245–7001 Tagging, Labeling, and Marking of Government-Furnished Property.

Special Tooling (ST) – Special tooling” means jigs, dies, fixtures, molds, patterns, taps, gauges, and all components of these items including foundations and similar improvements necessary for installing special test equipment, and which are of such a specialized nature that without substantial modification or alteration their use is limited to the development or production of particular supplies or parts thereof or to the performance of particular services. Special tooling does not include material, special test equipment, real property, equipment, machine tools, or similar capital items.

Special Test Equipment (STE) – STE is single or multipurpose integrated test units engineered, designed, fabricated, or modified to accomplish special purpose testing in performing a contract. It consists of items or assemblies of equipment including foundations and similar improvements necessary for installing special test equipment, and standard or general purpose items or components that are interconnected and interdependent so as to become a new functional entity for special testing purposes. Special test equipment does not include material, special tooling, real property, and equipment items used for general purposes or property that with relatively minor expense can be made suitable for general purpose use.”

Stewardship – Stewardship is defined as the ‘careful and responsible’ management of operations and property within one’s care.

Storage – The act of storing, the state of being stored, or the keeping or placing of property in a warehouse, shed, or open area. Storage is a continuation of the receiving operation and is preliminary to the shipping or issuing operation.

Suitable Substitute – An item that has the same form, fit and function which is identified in the FLIS data base as a suitable substitute or in <INSERT CONTRACTOR NAME> Catalog system.

Surplus property – Excess personal property not required by any Federal agency as determined by the Administrator of the General Services Administration (GSA). Ref: FAR 45.101 and 52.245-1(a) Definition.

Suspended (In Work) – Material identified on inventory control record but which has been turned over to a maintenance facility or contractor for processing.

Suspended (Reclaimed Items Awaiting Condition Determination) – Assets turned in by reclamation activities which do not have the capability (e.g., skills, manpower, or test equipment) to determine the material condition. Actual condition will be determined prior to induction into maintenance activities for repair/modification.

Utilization - The use of an item of equipment in connection with setup and tear down, calibration, test, maintenance, repair or performing its functional purpose.

B. ACRONYMS

AA&E Arms, Ammunition & Explosives ACO Administrative Contracting Officer AECA Arms Export Control Act AOG Aircraft On the Ground ASTM American Society for Testing and Materials AWM Awaiting Maintenance AWP Awaiting Parts BAT Business Area Team CAMS Core Automated Maintenance System CAP Contractor Acquired Property CCL Commerce Control List CDRL Contract Deliverable Requirements CFR Code of Federal Regulations CO Contracting Officer DAU Defense Acquisition DCAA Defense Contract Audit Agency

USG AGENCY

DFARS Department of Defense FAR Supplement DLIS Defense Logistics Information Service Standards DoD Department of Defense DoS Department of State DRMO Defense Reutilization and Marketing Office EAR Export Administration Regulations EEI Electronic Export Information filing EPM Enterprise Property Manager FAR Federal Acquisition Regulations FEDSTRIP Federal Standard Requisitioning and Issue Procedures FEMA Federal Emergency Management Agency FLIS Federal Logistics Information System FMR Federal Management Regulation FSS Federal Supply Source FTR Foreign Trade Regulations GAO United States General Accounting Office GBL Government Bill of Lading GEM Governance & Execution Model GFE Government Furnished Equipment GFM Government Furnished Material GFP Government-Furnished Property GP Government Property GPA Government Property Administrator GSA General Services Administration GSAXcess GSA Excess Reporting System IAW In accordance with ILP Industry-Leading Practices ISO International Organization for Standardization ITAR International Traffic in Arms Regulations IUID Item Unique Identification LSN Local Stock Number LTDD Lost, Theft, Damage, Destruction (of Government property) MILSTD Military Standard MILSTRIP Military Standard Requisitioning and Issue Procedures MMAS Material Management Accounting System NASA National Aeronautics and Space Administration NIIN National Item Identification Number NMCS Not Mission Capable Supply NSN National Stock Number OFAC Office of Foreign Assets Control Regulations PA Property Administrator PC Property Custodians PCARSS Plant Clearance Automated Reutilization Screening System PCO Procuring Contracting Officer PCPD Property Career Development Program PLCO Plant Clearance Officer PM Program Manager PMP Property Management Plan PMS Preventive Maintenance PMSA Property Management Systems Analysis PO Purchase Order PPM Program Property Manager PPMA Program Property Manager Alternate PPMP Program Property Management Plans QAR Quality Assurance QCC Quality Consolidation Center ROD Report of Discrepancy SF Standard Form SKU Stock Keeping Unit SMI DoD Serially-Managed Item SOP Standard Operating Procedure SPC Sub-Property Custodians ST Special Tooling STE Special Test Equipment UID Unique Item Identifier (used interchangeably with IUID) UII Unique Item Identifier USML United States Munitions List VCS Voluntary Consensus Standards WebFLIS Web Based Federal Logistics Information System application

V. OUTCOMES TO BE ACHIEVED

<INSERT CONTRACTOR NAME> will utilize the current FAR Property Management Systems Analysis (PMSA) process and outcomes to review, inspect and evaluate <INSERT CONTRACTOR NAME> and subcontractor’s property management plans, policies, procedures, practices and systems to ensure they are in compliance with contractual requirements, laws, regulations, VCS, and industry leading practices.

Outcomes are the required measurements of proper property management. All employees are to ensure that customer and<INSERT CONTRACTOR NAME> property is maintained and managed to achieve the following outcomes.

A. Acquisition - [Contractors are required to have a process for the acquisition of Government Property (which includes both Contractor Acquired and Government Furnished). In accordance with FAR 52.245-1(a) the objectives of evaluating the acquisition of property or materials are: verifying that the contractor had contractual authority to provide the items,(2) items and quantities acquired can be supported by requirements documents, such as bills of materials, material requirements list, work order, or similar documents, (3) items were properly classified – Equipment, Material, Special Test Equipment, Special Tools – prior to acquisition. Include timeframes for placing requisitions, i.e., how many days upon receipt of request? Verification and approval is done and records updated by whom, within how many days? What dollar value requires KO approval vs. Company Director?]

The process of acquiring property (government and/or company) either through requisition or transfer from Government sources or through purchase. <INSERT CONTRACTOR NAME> documents should provide outcomes that show all property was acquired consistent with its engineering, production planning, and material control operations, and disclosed practices. Insert the person’s job title that will be acquiring items and insert the number of days, i.e., within ____ days.

Example: Supply Technician will purchase items from GSA or local purchase within ___ days of request.

Who: Supply Technician What: Purchase items How: thru GSA or local purchase When: Within 5 days of request, unless it is an emergency

Purchase, Transfer, Fabrication. <INSERT CONTRACTOR NAME> shall meet the terms of property acquisition via purchase, transfer or fabrication to ensure contract performance, compliance and uphold accountabilities. Acquisition is designed to control the processes from the time a requirement is determined and until time of consumption or disposition.

Purchase is the most common method of acquisition. Prior to generating an electronic Purchase Request (PR), personnel shall screen on-hand inventory to determine if items are available prior to purchase. If not, the requestor shall identify potential sources per the Approved Vendor List (AVL) for new item(s) and estimated costs through each source. Purchasing department shall generate Purchase Order (PO). Items acquired shall be charged to each specified project and accountable within the PMS.

Acquisition via Transfer moves accountability between projects or contracts. Transfers can be completed at no-cost or at-cost as determined by the Contracting Officer (KO). Transfers are completed via contract modification or DD1149 authorizing transfer of property to be provided as Government Furnished Property (GFP) categorized as Government Furnished Equipment (GFE) or Government Furnished Material (GFM).

FAR 52.245-1(f)(1)(i).

B. Receiving – [Contractors are required to show the proper receipt of Government Property. This process shall also cover the requirement to properly identify Government Property (GFP and CAP) in a manner appropriate to the type of property (e.g. stamp, tag, mark). What process is taken once an item is received by Company? The objectives of evaluating the receipt of Government Property are ensuring that the contractor documented the receipt verifying that the item and quantity received is the same as the item/quantity ordered or furnished. It should be noted, how many days the contractor requires for this action to take place.]

The process of government property initially being entered into <INSERT CONTRACTOR NAME>’s custody. <INSERT CONTRACTOR NAME>’s outcomes should demonstrate: the receipt of (government and/or company) property. (FAR 52.245-1(f)(1)(ii).

Example: Supply Technician will record receipt of items within 48 hours of receipt.

Who: Supply Technician What: Receiving items How: Insert whatever system Contractor uses to keep track of purchases When: Within 48 hours of receipt

All Government Property shall be received into system at the designated location as referenced on support receiving documentation and processed within X days of delivery.

Company property is received IAW Contractual requirements, FAR and DFARS. Company Property Management shall oversee accuracies of receipt records to ensure system integrity of the following:

Upon delivery/dock date, receiving personnel shall ensure carrier has dropped-off shipment at correct facility to prevent unloading at wrong location and to avoid additional handling. Receiving personnel shall ensure appropriate handling of any hazardous or sensitive property. The carrier freight bill or pack slip shall be verified against product delivered. All incoming property shall be visually inspected for condition and count. Part numbers, descriptions and serial numbers shall be verified to match corresponding paperwork. Once verified, signature/initials and date shall be recorded on the receipt documentation. A Certificate of Conformance (CofC) must accompany all Government Property receipts. Any Property Discrepancies and/or damage, overages and/or shortages shall be noted on support documents with notification to Point of Contact (POC) and the purchasing department for vendor notification and any necessary actions. Delivery time and condition of parts shall be maintained for vendor performance ratings. This is accomplished by entering the dock date into the receipt record in system.

Once product is verified and required documentation accounted for, receiving personnel shall initiate a receipt transaction against the PO or other support receipt paperwork to establish the record in System. Pack slip, freight bill, CofC and the receipt traveler generated from System establishes the receiving record and packet. Product, with Receipt Packet, is staged for incoming Quality Inspection (QI).

QI shall further inspect property for correctness of part number, model number, serial number, National Stock Number (NSN), part markings against drawings, if applicable. Inspectors will accept or reject with system entries. If accepted, product is staged for notification to Inventory Control and retrieval for stock. If rejected, QI shall notify purchasing, the Project POC, place product in an On-Hold location and complete Nonconforming Material Report (NMR). Property will remain in secure on-hold NMR cage until discrepancies are corrected. If purchasing directs Return to Vendor (RTV), a record supporting this action shall be established in system to prevent vendor payment.

Receiving personnel shall notify POC of incoming receipt and stage for pick-up.

Receipts shall be established to the Contract Delivery Order by using an alpha character to establish ownership under an Inventory Abbreviation in system: [Ensure that each receipt can be tied to a request for acquisition – and the receipt can be read by Property Admin team in English] “C” – Cost Plus Fixed Fee – Firm Fixed Fee Fixed Fee “F”- Firm Fixed Price “G” – Government Furnished “P” – Fabricated/Build-to-Print Property “S” – Government Property acquired on an SES Purchase Order “SF” – Firm Fixed Price Property acquired on an SES Purchase Order Equipment Government equipment shall be assigned a government barcode tag. The tag number, with all information, shall be entered into the system IAW FAR 52.245- 1 and Property Plan.

Equipment where the barcode tag may affect form, fit or function, etching or permanent marker shall be used with the next barcode numbered tag.

Material Government material shall be identified by affixing a Lot Label, or equivalent, and records established in system. If material has a shelf life, the expiration date shall also become part of the receipt record. All shelf life material must have at least 50% life remaining at time of receipt, or an approved process deviation. A Safety Data Sheet (SDS) must accompany all hazardous material. SDS and chemical labeling must comply with Global Harmonized System of Classification and Labeling of Chemicals (GHS) requirements.

Any Government Property with a serial number shall also be recorded in the receipt record. Company PO Receipts for Contractor Acquired Property purchased as direct charge to the contract shall be processed in the system against the Purchase Order, which should be referenced on the pack slip. The dock date will be written on the pack slip and entered into the Notes field. Property shall be received against the owning delivery order to the accountable inventory abbreviation(s). Should there be any issues related to the receipt, property will be received into a frustrated cargo location to ensure traceability of both receipt and vendor performance to include property missing a Certificate of Conformance (CofC) or Certificate of Analysis (CofA) or Saefty Data Sheets (SDS) documents, if applicable.

SES PO Receipts for Contractor Acquired Property (CAP) purchased as direct charge to the contract shall also be processed into Company system for Government property that has moved from SES facilities into Company facilities with accompanying SES Receipt Traveler, if applicable to ensure complete traceability. Property will be received as a Miscellaneous Receipt in system. The SES PO Number, SES receipt transaction ID, QI Initials, and Dock Date will be entered into the Notes field of the record. Transaction ID generated by system, initials, and date will be written at the bottom of the first page of the SES Receipt Traveler. Lot numbers shall be written next to the corresponding part number for each item received.

If items are received in a Company facility from SES that have not been accepted by Quality Inspection, the items shall be received into “QC” location and stage for incoming inspection. Upon QI acceptance, the items will then be staged for inventory pick up.

1. Fabricated/Build-to-Print Property shall be entered into System via Miscellaneous Receipt. Support documents will be the front page of the manufacturing router or equivalent to ensure complete traceability. All items should be accompanied by a router and quality acceptance tag. Items shall be received into an on-hand location. Property in this category shall be received accountable to the inventory abbreviation with the alpha “P”. Transaction ID generated from System, initials and date shall be noted at the bottom of support documentation by receiving personnel.

1. Government Furnished Material shall be received into System via Miscellaneous Receipt following visual inspection, count and condition is performed. Property in this category shall be received accountable to the inventory abbreviation with the alpha “G”. Lot numbers will be recorded on receipt documents, along with Transaction ID generated from System, initials and date by receiving personnel written at the bottom of the first page of any support receipt document. Any discrepancies will be noted on support documentation and the Project POC notified for resolution.

C. Records – [System generated or manual listing of all Government Property. Excel preferred. Should match GFP smart tool listing in PIEE – specific data is required IAW FAR 52.245-1. During PMSA, the evaluation of records for Government Property is ensuring that the contractor’s system adequately accounts for each item of property in accordance with the terms and conditions of the contract. Records should be current and organized in a manner that allows the Property Administrator to sufficiently assess the efficiency and effectiveness of a contractor’s recordkeeping.] The records maintained by <INSERT CONTRACTOR NAME> to show status and to manage all property (government and/or company) furnished to or otherwise acquired by <INSERT CONTRACTOR NAME> must create and maintain records of all property accountable to each contract, including Government-furnished and Contractor-acquired property. Records should enable a complete, current, auditable record of all transactions, unless otherwise agreed to by the Government Property Administrator (GPA). Property system analyses should include reviews comparing "records to property" and "property to records." GPAs normally validate, on a random basis, the contractor’s stewardship records. (FAR 52.245-1(f)(1)(iii) Example: Receiving clerk will create a record of item received within 48 hours of receipt.

Who: Receiving Clerk What: Record items received How: Insert whatever system Contractor uses to keep track of items received When: Within 48 hours of receipt

D. Physical Inventory – [Contractor is required to have a process for conducting physical inventory of Government Property. During PMSA, the objectives of evaluating the physical inventory of Government Property are ensuring that the contractor has scheduled and conducted physical inventories of property in accordance the contractor’s property management system procedures and to determine the effectiveness of contractor’s physical inventory process.]

The process of physically locating and counting property and comparing it to records of such property, including the posting of findings and adjustments and the reporting of adjustments through Corporate Property. The <INSERT CONTRACTOR NAME> Property Management System/Property Management Plan contains direction to periodically perform, record, and disclose physical inventory results. A final physical inventory is performed upon contract completion or termination. The GPA may waive this final inventory requirement, depending on the circumstances (e.g., overall reliability of the <INSERT CONTRACTOR NAME>’s system or the property is to be transferred to a follow-on contract). (FAR 52.245-1(f)(1)(iv).

Example: Technician will perform physical inventories quarterly/monthly/bi-annually/annual.

Who: Technician What: Perform Inventories.

How: Manual/Automated – however, you do inventories When: quarterly/monthly/bi-annually/annual

E. Subcontractor control – [Contractors are required to have a process for the subcontractor control of Government Property. Subcontractors are normally external businesses that a prime contractor “hires” to perform a portion of the overall contract scope. For the review of the Subcontractor Control outcome, internal businesses or “alternate locations” of the prime contractor should also be included. Large contractors often let internal “subcontracts” to their “alternate locations” to perform part or all of a contract scope.]

The process of the prime contractor’s control over subcontractors in possession of contract and Government Property. <INSERT CONTRACTOR NAME> awards subcontracts that clearly identify assets to be provided and ensure appropriate flow down of contract terms and conditions (e.g., extent of liability for loss, theft, damage, or destruction of any property). <INSERT CONTRACTOR NAME> assures its subcontracts are properly administered and reviews are periodically performed to determine the adequacy of the subcontractor’s property management system. (FAR 52.245-1(f)(1)(v).

F. Reports – [The objective of evaluating the reports of Government Property is ensuring that the contractor is submitting adequate property related reports in accordance with the terms and conditions of the contract.]

The preparation and submission of various reports reflecting the status of Government/Customer property as required by contract or regulation. (FAR 52.245-1(f)(1)(vi).

Example: Site manager will prepare and submit reports to the COR, as needed.

Who: Site manager What: Prepare and submit reports How: However, you do inventories When: quarterly/monthly/bi-annually/annual

G. Relief of Stewardship - [Contractor’s are required to have a process for the relief of stewardship responsibility and liability of Government Property. The objectives of evaluating the loss of Government Property. Include timeframe for notifying the Contracting Officer and Property Administrator of any loss or excess.]

Unless the contract provides otherwise, the Contractor shall be relieved of stewardship responsibility for Government property when such property is (A) Consumed or expended, reasonably and properly, or otherwise accounted for, in the performance of the contract, including reasonable inventory adjustments of material as determined by the Property Administrator; or a Property Administrator granted relief of responsibility for loss, theft, damage or destruction of Government property; (B) Delivered or shipped from the Contractor’s plant, under Government…