2012 npma fall conference value through professional asset management property 101 track contracts...
TRANSCRIPT
2012 NPMA Fall ConferenceValue Through Professional Asset Management
Property 101 TrackContracts and Records
Presented by:
Robert Giacomi, CPPM CFLockheed Martin Space Systems Company
2012 NPMA Fall ConferenceValue Through Professional Asset Management
Introduction
Contract, as used in this presentation, means all types of agreements or other legally binding document between two parties unless specially stated otherwise
Property professionals should understand the basic terms and conditions of the contract.
Regardless of how the contract was funded, property provisions can be found in the contract
Property professionals should understand their agreed upon requirements for Records and how the data is communicated.
Do you have current and accurate data in your records?This is a two-way conversation.
Participation is welcomed!
2012 NPMA Fall ConferenceValue Through Professional Asset Management
CONTRACTSNow, let’s start with your authority to do something ….
2012 NPMA Fall ConferenceValue Through Professional Asset Management
Contract Types
Type of contract selected by the amount of risk (financial risk) each party is willing to accept.
Each party to a contract evaluates the risk and then
comes to an agreement as to the type of contract they will enter into.• Do you participate in this process?
Are there any “issues/concerns” that need addressing?• Why is it important for you to get this information?
2012 NPMA Fall ConferenceValue Through Professional Asset Management
Contract Types (Cont.)
FAR Part 16 – Types of Contracts Primarily two types of contracts:
• Fixed Price Places the greatest financial risk on the “Seller”.
• Cost-Reimbursement Places the greatest financial risk on the “Buyer”.
2012 NPMA Fall ConferenceValue Through Professional Asset Management
Fixed Price Contracts
Two common characteristics of all fixed-price contracts are:• The Seller is contractually bound to complete the
contracted work per the terms and conditions.• The Buyer is obligated to pay a price equal to the fixed
price specified in the contract.
2012 NPMA Fall ConferenceValue Through Professional Asset Management
Fixed Price Contracts (Cont.)
Advantages:• Minimum administrative burden on both parties.• Maximum incentive for Seller to control costs.• A known monetary obligation.
Disadvantages:• To the Buyer: If there is no competition, the Seller could
inflate costs of contingencies.• To the Seller: There is a risk of loss dealing with
performance of cost difficulties not foreseen in the proposal process.
2012 NPMA Fall ConferenceValue Through Professional Asset Management
Cost Reimbursement Contracts
Suitable for use when uncertainties prevent costs to be estimated with sufficient accuracy• Think Research & Development or similar.
Provides for payment of allowable costs• Seller not borne by all expenses until final
delivery. Results in low risk for both parties
• Your dealing with a mostly known process (history).
2012 NPMA Fall ConferenceValue Through Professional Asset Management
Cost Reimbursement Contracts
Used only when:• Seller has adequate accounting system to determine
costs.• Appropriate oversight is conducted by Buyer and is
acceptable.• A determination and finding has been executed that
shows (a) this type of contract is likely to be less costly; or (b) it is impractical to obtain supplies or services
without this type of contract.
2012 NPMA Fall ConferenceValue Through Professional Asset Management
Comparison - Contract Types
Fixed Price• Firm-Fixed Price (FFP)• Fixed-Price with Economic Price
Adjustment (FPEPA)• Fixed-Price with Prospective Price
Redetermination (FP3R)• Fixed-Price with Retroactive Price
Redetermination (FPRPR)• Firm-Fixed Price Level of Effort (Term)
(FFPLOET)• Fixed-Price Incentive (Firm Target)
(FPIFT)• Fixed-Price Incentive (Successive
Targets) (FP{ST})
Cost Reimbursement• Cost Sharing (CS)• Cost Plus Incentive Fee (CPIF)• Cost Plus Award Fee (CPAF)• Cost Plus Fixed Fee (CPFF)
Others• Indefinite Delivery, Indefinite Quantity• Basic Ordering Agreements • Time-and-Materials• Labor-Hour• Letter Contracts
*** Be aware that you could have a HYBRID contract ***
A combination of contract types under one main document.
2012 NPMA Fall ConferenceValue Through Professional Asset Management
RECORDS
Now, let’s switch directions from your authority to do something to your requirement to document something ….
2012 NPMA Fall ConferenceValue Through Professional Asset Management
Records - Notes
Let’s keep this simple:• Do you know what you have ….?• Do you know where it is ….?• Do you still need it ….?
Your records should be able to answer the questions above. How you get there, is all up to you.
Records in this context does not necessarily mean one system, module or hard-card. It is an all inclusive statement.
Requirement (extremes of scope)• As simple as a 5x7 Filedex Card; hand written; different colored ink.• As complex as a (you name the company) software package• Whatever works for you and your situation!
Do you have some contractual requirements?• Is your customer requiring you to do something you don’t normally do?• Are you being asked to work in a system as an integrator?• Do you have the right person(s) in place to handle this?
2012 NPMA Fall ConferenceValue Through Professional Asset Management
Records - References
Federal Acquisition Regulations (FAR)• Supplements (Government Agencies way of adding their “stuff” to FAR)• DFAR, NFS, DEAR and so on.• http://www.fedaccess.com/agency-supplements.htm
American Society for Testing and Materials, International (ASTM)• E53 Committee
E53.01 E2499 Classification of Equipment Physical Location Information E53.01 E2672 Identification and Categorization of Tooling E53.02 E2604 Data Characteristics of Equipment Records E53.02 E2812 Uniform Data Management in Asset Management Records
Contract / Agreement Company Command Media Internal Work Instructions
2012 NPMA Fall ConferenceValue Through Professional Asset Management
What Needs a Record?
Everything that you are responsible to report!(What does the contract say?)• Material• Equipment• Repairs• Facility• Other?
Key Elements• Back-up “documentation”• Acquired vs Furnished• Sensitive Property• Classified Property• Others?
Can you follow the property life cycle with your records? Are you able to support any type of audit?
2012 NPMA Fall ConferenceValue Through Professional Asset Management
Records – ASTM Standard Perspective
• Essential data elements that shall be used in equipment record(s). They are: Identification number
(unique or equivalent), Description, Receipt date, Unit acquisition cost, Location.
• Optional data elements that shall be used in equipment record(s). They are: Model number, Manufacturer, Disposal information, Physical inventory date, Owner, Unit of measure, Maintenance, Manufacture date, Part number, Serial number, User, Additional identification
E53.02 E2604-09 Data Characteristics of Equipment Records
2012 NPMA Fall ConferenceValue Through Professional Asset Management
Records – DOD Perspective
FAR 52.245-1(f)(1)(iii), Records of Government Property• (A) Property records shall enable a complete, current, auditable record of all
transactions and shall, unless otherwise approved by the Property Administrator, contain the following:
(1) The name, part number and description, National Stock Number, and other data elements as necessary and required in accordance with the terms and conditions of the contract.
(2) Quantity received (or fabricated), issued, and balance-on-hand. (3) Unit acquisition cost. (4) Unique-item identifier or equivalent. (5) Unit of measure. (6) Accountable contract number or equivalent code designation. (7) Location. (8) Disposition. (9) Posting reference and date of transaction. (10) Date placed in service.
2012 NPMA Fall ConferenceValue Through Professional Asset Management
Records – OMB Perspective
OMB Circular A-110, SUBPART C, Property Standards• (f)(1) Equipment records shall be maintained accurately and shall include the
following information (i) A description of the equipment. (ii) Manufacturer's serial number, model number, Federal stock number,
national stock number, or other identification number. (iii) Source of the equipment, including the award number. (iv) Whether title vests in the recipient or the Federal Government. (v) Acquisition date (or date received, if the equipment was furnished by
the Federal Government) and cost. (vi) Information from which one can calculate the percentage of Federal
participation in the cost of the equipment. (vii) Location and condition of the equipment and the date the information
was reported. (viii) Unit acquisition cost. (ix) Ultimate disposition data, including date of disposal and sales price or
the method used to determine current fair market value where a recipient compensates the Federal awarding agency for its share.
2012 NPMA Fall ConferenceValue Through Professional Asset Management
Let’s Review
For Contracts:• What a contract/agreement is.• What type of contract/agreement you have.• The difference between FP & CR
For Records:• What is a record• What are the requirements
And finally ……
2012 NPMA Fall ConferenceValue Through Professional Asset Management
A Thought …..
Take care of your THOUGHTSbecause they become WORDS.
Take care of your Wordsbecause they will become ACTIONS.
Take care of your Actionsbecause they will become HABITS.
Take care of your Habitsbecause they will form your CHARACTER.
Take care of your Characterbecause it will form your DESTINY,and your Destiny will be your LIFE.
Words of wisdom by Dalai Lama
2012 NPMA Fall ConferenceValue Through Professional Asset Management
Thank You!!Any questions?