Status of Aerospace Industries Association Government Property Systems Committee Terry Marcinko Asst. VP, Acquisition Policy, AIA Chair – Tamra Zahn, CPPA Vice Chair – Pam McFarland, CPPM NPMA NES, Orlando, FL July 29, 2013

Participants Participants:

AIA at a Glance The Premier Aerospace and Defense Association –Founded in 1919 to represent aerospace and defense manufacturers –More than 152 full members/230 associate members –Led by a Board of Governors – Comprised of the Chief Executive Officers of our members Business Areas –Defense/Homeland Security (includes cyber security) –Space –Civil Aviation –Acquisition Policy –Communications –International Affairs –Legislative –Technical Operations –Supplier Management

AIA at a Glance Procurement & Finance Council Executive Committee Procurement Techniques Legal Intellectual Property Government Property Systems Cost Principles Cash Flow Advisory Chief Financial Officers Council Aerospace & Defense Controllers

AIA at a Glance Issues Covering –Acquisition Policy –International –National security –Space & Civil Aviation Establishes industry goals and strategies Committed to consensus on all issues –Priority for total membership –Promotes free and open discussion –Ensures all views are heard.

AIA Update Contractor Compensation Caps Counterfeit Parts Conflict Minerals Sequestration AIA website

Government Property Systems Committee Responsible for activities, laws, and regulations affecting facilities and property (both contractor and government) of member companies. Name Change: Government Property Systems Committee to better emphasize our important role as one of DoDs 6 Business Systems.

AIA GPS Committee Meets face to face quarterly to work on relevant hot issues –Meet with DCMA leadership –Strong corporate community representation across industry Bi-weekly telecoms to status issues in process

Current Committee News Actively involved with providing input for the Industry UID Registry Requirements Responsible for providing comments to proposed DFARS and FAR Cases Provided comments on the DCMA new CAR policy Open discussion on the BSR Guidebook IFB 308 Open discussion on PCARSS and Transfer of Accountability capability

UID Highlights

CAR Policy Highlights Incorporates Property Management CARs into process If contractor self-identifies deficiencies, and is working to a CAP, CAR should not be issued Industry & Government have raised concerns on issuance of CARs at Subcontractors –Meetings held between Industry & Government –Possible Working Group to be created between Government & Industry to address concerns

Industry Leading Practices ILP Customary Commercial Practice Best Practice Aerospace Industries Association ILPs

Aerospace Industries Association - Industry Leading Practices Version – 6/8/12

51 ILPs published Subcontractor Terms & Conditions Guideline NEW

Industry Leading Practice Performance Outcome - Subcontractor Control Subcommittee Chair – Michelle Hinderks Members – Major subcontractors 2/20126/20121/2013 Reviewed prime contractors’ requirements Outdated Above regulations Members- prime contractors joined Survey distributed to GPM committee members ILP 5-06 PO Property Management T&C 7/1/2013   4/2012 Responses due Analyze survey responses Develop draft standardized T&Cs Congruent with FAR flow down requirements  Presented to PMC   PMC much discussion and many revisions

Industry Leading Practice #5-06 COMPANY XYZ PURCHASE ORDER TERMS AND CONDITIONS (PROPERTY MANAGEMENT) 1.Title 2.Processes and Procedures 3.Oversight 4.Special Tooling, Special Test Equipment and Equipment 5.Records 6.Identification and Tagging 7.Excess and Residual Property 8.Reporting 9.Access 10.Additional Buyer Requirements

DOD Working Group Continuous Support to Ensure Win-Win –Meetings Supported: May 2012 June 2012 January 2013 May 2013 Accomplishments: –Mitigate Additional On-Site Reviews “just to collect data” Partnered with OSD P&EP for Data Elements Required for APSR –Phased Approach for New UII/Non-UII Reporting –Enhanced Use of PCARSS: Update UID Registry for Disposals Utilize as Contract Transfer Vehicle - in process – Tom Ruckdaschel POC

DOD Working Group Still to come –Tying it all together Query GP software suppliers –Define data flow to Government UII database –Standardize requirements and data fields –Determine cost to implement –Determine timeframe to compliance

DFARS 2013-D016 Limitation on Use of Cost Type Contracts 06/05/2013 DARC received Systems Acquisition Cmte draft interim DFARS rule. Will discuss draft interim DFARS rule on 6/19/2013. DFARS 2013-D006 Approval of Rental Waiver Requests 05/29/2013 DAR editor sent draft final DFARS rule to OIRA. OIRA reviewing. Rcd comments from OIRA [OFPP] on 5/30; forwarded to CM for resolution. Responded to OIRA comments on 6/14. DFARS Update

DFARS 2012-D055 Detection and Avoidance of Counterfeit Electronic Parts 05/16/2013 Published proposed DFARS rule in Federal Register (78FR 28780). Public comment period ends 07/15/2013. DFARS 2012-D042 Business Systems Compliance 05/08/2013 Case on hold at the direction of DARC Deputy. DFARS 2011-D055 Item Unique Identifier Update 08/29/2012 DARC Director tasked Contract Placement Cmte. to draft final DFARS rule. Report due 10/3/2012. Report Due extended to 6/19/2013. DFARS Update

FAR Updates Flowdown of GP Liability 05/13/13 Case closed without action..

Breakout Sessions Mon, 7/29 1.Counterfeit 1:15 – Pam, Kathy, & Marlene 2.Case Study on Material 2:30 – Tamra, Rich, Russ Tues, 7/30 3.How Much Are Your Capital Assets Really Costing 9:00 – Brandon 4.New Asset Mgt Professionals – A Panel 1:00 – Wayne 5.Acquisition of Property Under an MMAS 2:45 – Rich, Wayne Wed, 7/31 6.Reconciling Asset Accountability & Auditability: The Property Mgrs. Role & 1:00 – Marsha 7.AIA Panel Discussion on Subcontractor 2:15 – Wayne, Brandon, Pam

AIA Property Management eTools AIA website

Questions?