1. Government Furnished Property Record Establishment in the DoD
Presented by:
Ms. Amber Barber
June 25,2012

2. Property Accountability Fun Fact
Identify the entity highlighted in yellow:
2011 General Property, Plant & Equipment
(Net, in millions)
Exxon Mobile
Wal-Mart
Chevron
ConocoPhillips
General Motors
General Electric
DoD
Wal-Mart
General Electric
Dept. of Defense
Exxon Mobile

3. DoD and Audit Challenges
DoD is the last federal agency which hasn’t received a “clean audit” opinion.
DoD is comprised of:
3 Military Departments
17 Defense Agencies (DARPA,DLA,MDA)
10 Field Agencies (TRICARE,WHS,DTIC)
8 Other Organizations (DAU,DoDIG,Joint Staff)
9 Combatant Commands
Based on FY 2011 Financial Statements for US Government, DoD represents 71.7% of reported GPP&E

4. Property Accountability Fun Fact
What percent of the United States General Property, Plant and Equipment (GPP&E), does DoD represent?
29%
72%
47%
63%

5. Breakdown of DoD General Property, Plant & Equipment Line Item
DoD GPP&E, Net value is
Approx. $608 Billion

6. How Assets are Aligned
Financial Assets
PP&E
Inventory/OM&S
Real Property
Personal Property
Repairables
Consumables
Internal Use Software
Land
Distilled into four (4) types under the Federal Acquisition Regulation
Facilities
Equipment
Military Equipment
Buildings
Structures
General Purpose Equipment
Linear

7. Cost of an Airplane The Airframe is the price on the contract
CAP transferred from Developmental Contract
The engines provided as GFP from a different contractor
GFP parts requisitioned from DLA

8. Property Accountability Fun Fact
Audit Report stated the Air Force could not account for $22 Billion of GFE. Solve for “X”. “X” equals
$22 B
Air Force
DoD $X
$596 Billion
$1.2 Trillion
$608 Billion
No Idea

9. GFP Record Problem Baseline information needed
Lack of data in DoD accountable systems
No standard method of collecting/establishing records
Communications Breakdowns
Logistics community “out of the loop”
APSR not updated
DoD does not know:
What it has; where it is; and what its worth
Why?
Contracts (especially legacy contracts) do not always contain GFP listings; listings are often ad-hoc and inaccurate
DoD Component past practice was to “zero out” equipment (GFP) records (“surely DCMA keeps those records”)
Little rigor in evaluating contractor need for GFP (“contractor asked for the property”)

10. The “Solution” Everyone wants: This just in: Property lists. Why?
Lists make us happy
Any information (even bad) will quell our fear
A 100% wall-to-wall physical inventory. Why?
Helps us sleep at night
Auditors love them
Lets us “catch up”
This just in:
Property lists are a poor proxy for good records
Physical inventories are usually not necessary and a waste of time if not done effectively (ALSO $$$)
I got my list!
My life will be perfect

11. GFP – Establishing Baseline
OSD memorandum issued on January 7, 2012
Goals
Promote the current clause requirements
Demonstrate the relationship between the clauses, the DoD policy, and the system capabilities (IUID Registry)
Get a starting point for equipment already used by contractors
Increase visibility and awareness of the “mystery” surrounding GFP
Requires
Detailed Plans for implementing to be incorporated into FIPS by 4/6/2012

12. The Memo Explained Based on existing policy
NO NEW POLICY is in this memo
Requires HQ Level coordination
Each DoD Component will take a unified approach
Leverages Property Management System Analysis
Each contractor will have their risk assessment based from this work performed as part of the regular duties of a property admin.
Standardizes DoD practices
Reduces ad-hoc data calls to contractors
Promotes a common enterprise approach
Use of IUID Registry as master data source for GFE
Single face to industry
Consistent with DoD Instruction

13. OSD Methodology Highlights
Create Integrated Project Team
Program Managers
Acquisition Offices
Logistics
Utilize IUID Registry
Interface with Contractors
Leverage DCMA Property Management System Analysis
Adequate & Low = accept contractor data
Inadequate & High = contractor perform wall to wall & data validated independent
Inadequate & Moderate = evaluate CAP and use sampling techniques to validate data
Modify Contract to list GFE
Bring contract into FAR, DFARS compliance
Amended Contract serves as Supporting Documentation
For government’s rights and obligations to GFE

14. Expectations Contracting Officers (Buying Commands) Program Offices
Use the opportunity to update property clauses (FAR and DFARS) and other terms and conditions
Modify contracts with appropriate property info per PGI 245
Program Offices
Work with Accountable Property Officers to establish needed property records based on risk assessments of contractors
Contractors
Report property per contract terms; utilize the IUID Registry as appropriate

15. Step by Step Immediate (1) Stop the bleeding.
(2) No GFP should be furnished without PCO first meeting PGI
Short Term
(1) Identify contracts ending within one year
(2) Plan for property disposal; contractors use PCARSS for excess property
Intermediate
(1) Identify contracts going beyond one year
(2) Ensure GFE reported to IUID registry
(3) Use fillable PDFs for GFE listing
(4) Modify contracts as needed to add GFE listing
Long Term
(1) Update local policy and procedures; sustainment & compliance

16. Implementation of Memo Guidance
Components to develop detailed project plans showing activities and dates for validating their GFE Baseline and incorporate into their FIP
Current Results
Not all Components have adequately satisfied this requirement
Financial Improvement Plans (FIP) have not been updated to reflect GFE plans
Difficult for DoD Senior Leadership to support GFE baseline efforts or monitor progress.
DoD Senior Leadership unable to determine whether corrective plans will be met by specified dates
Suggested GFE metrics provided to Components must be delayed due to lack of response
Actions
Components must develop a project plan that is specific to their approach for validating a GFE baseline and incorporate into FIP as appropriate
Components must be prepared to report progress against project plan and explain how they’re assessing progress using the scorecards provided previously
Components to report project status via scorecards at next GFP Working Group

17. DOD Actions to Improve GFP Accountability
Enhancing the IUID Registry
Adding property transfer capability to WAWF
Existence and Completeness testing
Gap Analysis of process flows
Pilot Program with the USMC for electronic property transfer actions
Increased accountable property records
Air Force: +64,000; $1,226,000,000
Missile Defense Agency: +64,500; $4,685,000,000
(Total: 128,000 new records for property worth $5.9 Billion)

18. Accountability for GFE
Key Control Points
Government APSR
Must have a Property Record for all GFE
While in possession of Contractor, property record shows location, condition of asset and authorizing contract
Asset uniquely identified and tagged/marked clearly distinguishing as government property
Upon return or disposal of asset, APSR updated appropriately
Contract
Prior to furnishing government property, cost/benefit analysis must be performed justifying GFE
Specific assets furnished to Contractor must be listed in the Contract in accordance with PGI
Contract is the authorizing document allowing proper use of Government Property by a contractor, not a hand receipt, DD1149, or other miscellaneous form
Contractor
Must maintain control and stewardship for GFE in their possession
Must only use GFE for authorized purposes
Responsible for notifying Government of Loss, Theft, Damaged or Destroyed GFE by using the LTTD eTool
Responsible for notifying Government of excess or surplus assets via PCARSS eTool
Implement timely and effective corrective action plans to address control deficiencies
Contracting Officer/Property Administrator
Periodically review contractor property management system for controls
Review adequacy of corrective action plans to address any Property Management system deficiencies
Does NOT maintain accountable property records
Is appropriate personnel for contractor relief of liability or accountability

19. GFP Process Flow – Govt to Contractor
Contract w/GFP
Items being sent
Items being sent
Contractor Receiver
WAWF Property Transfer
Material Control Activity
Items received
Items received
Custody updated
Custody updated
Property
Accountability
UID Registry
Organization data can be manual web or system electronic formatted message

20. USMC/DPAS Enhancements – GFP & WAWF
Issue
Resolution
Conditions
If asset is in DPAS but transfer to Contractor has NOT been designated in DPAS, WAWF transfer transaction is ignored/discarded by DPAS
Add DPAS functionality to process WAWF Transfer Transaction according to the following conditions
If Contractor and contract number established in DPAS, execute property record update
If contractor and contract not in DPAS, add asset to DUE-IN Process and require DPAS user intervention
If asset is not in DPAS but transfer is received via WAWF, WAWF transfer transaction is ignored/discarded by DPAS
Modify DPAS to process the WAWF Transfer Transaction.
Asset placed in “Due-In” process
DPAS user intervention required to execute Asset Receiving Process
Process streamlined when Catalog, USMC NSNs, Contractor and Contract reside in DPAS
USMC Catalog in DPAS does not contain all standard USMC NSNs
Update DPAS with all USMC standard NSNs from FLIS
USMC to identify NSNs that are USMC controlled.
DPAS to create an update file for loading into USMC catalog
When transaction received DPAS will search & find NSN and enable processing of transfer transaction
DPAS does not search FLIS database of NSNs using Part Number. When assets are first introduced to USMC, they do not have NSNs but are identified by Part Number
DPAS to subscribe to DLIS’s MFG Part Number subscription or request GEX to subscribe to service to obtain Part Number
DPAS will add Part Number to Master FLIS “MFG Part NBR” table
DPAS would compare DPAS user catalog to MFG Part NBR table and populate Part Numbers for NSNs that match.
When a new stock number added, DPAS will auto-populate the MFG Part NBR table with all MFG Part Numbers associated with the Stock Number
Not Applicable, no conditional processing required

21. Working to Solving The GFE “Mystery”
Evaluate Existing Environment
Identify Accountability Gaps
Modify Policy & Instruction
Process Improvement
APSR Up To Date with GFP Status
Warfighter has more resources to accomplish mission!

22. Property Accountability Fun Fact
What key action item was due within 90 days from issuance of GFE memorandum dated January 7, 2012?
Create Plan to address GFE
Adhere to PGI
DCMA is key Stakeholder
Wall to Wall is first action

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Thank You! 23