1. Managing Subcontractors: Yes, there IS an easy way !
Pamela McFarland, CPPM CF
Consulting Property Manager
Raytheon Technical Services Co., LLC

2. AGENDA Statement of Work (SOW) Terms and Conditions Risk Assessment
Site Visits
Liability
Records
Disposition

3. STATEMENT OF WORK
Incorporate requirements into SOW as deliverable line items
Physical Inventory Requirements
Financial Reporting Requirements
Gov’t Property System “Adequate” Letters
Property Plans/Procedure Requirements
Disposal Requirements

4. STATEMENT OF WORK Requires Close working relationship with:
Procurement
Contracts
Engineering
Cost Accounting Managers
Quality (to incorporate possible property audits with quality audits ……cost effective!)

5. TERMS and CONDITIONS
Flow all property requirements (FAR , and NASA or DoD Supplements) into the Terms and Conditions of Every Contract
May seem redundant, but acquisition or furnishing GP/CP may not be known at time of SOW.
Be careful on flowing Limited Risk of Loss.

6. RISK ASSESSMENT
Once the subcontract is in place and property is accountable.
Assessments should consider the following:
Total Dollar Value of property
Is there a Property Plan?
Does the sub have an “adequate” system?
Have they had LDD’s?
Do they have lower tier subs?
Have they implemented UID? (DoD)
Do they have procedures?
Does the sub use Metrics?

7. RISK ASSESSMENT Assessments should be completed annually:
To ascertain surveillance requirements (i.e., “on-site” versus desk surveillance)
Review for support property administration delegation
DCMA is NOT going to approve 99% of the requests for SPA delegation. Oversight is a requirement of the Prime.

8. RISK ASSESSMENT PURPOSE METHODOLOGY KEY ATTRIBUTES
To provide an objective and disciplined risk assessment analysis of subcontractors
METHODOLOGY
Identify areas of vulnerability
Focus on optimal levels of risk
Efficient commitment of resources
KEY ATTRIBUTES
The risk categories and the corresponding measurements have been identified in the following charts

9. RISK ASSESSMENT Total Max Points = 43
Property Clause or Provision Flowed? (Y=0, N=20)
$$ Value of Gov’t Property (<$500K=0, >$500K=4)
Procedures Adequate? (Y=0, N=3)
Inventory Accuracy (>98%=0, <98%=3)
# of Losses during last year (1 point each occurrence with a max of 5 points)
UID Compliant? (Y=0, N=2)
Lower Tier Subs? (N=0, Y=3)
Metrics Maintained by Sub? (Y=0, N=3)
Total Max Points = 43

10. RISK ASSESSMENT

11. SITE VISITS
If the risk assessment determines a site visit is required, prior preparation is essential.
Limit the scope to 5 functional elements or less
Request property listings at least 1 week prior for random sample selection and preparation
Complete audit spreadsheets and entrance briefings prior to start of visit

12. LIABILITY Limited Risk of Loss
If the Prime has limited risk, the potential exists to flowdown these requirements.

15. (c) 2012 GP Consultants USED WITH PERMISSION

16. LIABILITY Remember……………..
If the subcontractor does NOT have the limited risk clause, then YOU, as the prime, are responsible for obtaining payment.

17. RECORDS Subcontractor Records Pros and Cons for both methods
Two methods exist pertaining to records
The subcontractor maintains the record, or ……
YOU, the prime, maintain the record
Pros and Cons for both methods
You must rely on the subcontractor for everything, when the sub keeps the records.
If you keep the records, are they “up to date”? How do you get notified when the property moves, gets issued, or ships?

18. DISPOSITION Program Screening MUST be completed first.
Several Methods of Disposal
PCARSS (Plant Clearance Reutilization Screening System)
Ship back to Prime for retention/reutilization
Ship back to Prime for disposal (Yikes!)

19. MANAGING SUBCONTRACTORS
REMEMBER …………We must reflect the value that property management adds to the company “bottom line”. We must be resourceful and flexible, and we can NOT do it alone. Creating and maintaining a good working rapport with your subcontractor is …….
ESSENTIAL !!

20. Pamela McFarland, Raytheon Technical Services Co., LLC
QUESTIONS
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Thank You
Pamela McFarland, Raytheon Technical Services Co., LLC
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