Government Furnished Property End-to-End training presentations...Government Furnished Property End-to-End PROCURE ... 3. Train & Educate Workforce 4. ... Continue discovery

Presented by: Carol Vigna, DPAP PDI Colquitt “Quitty” Lawrence, AF/A4LR Mindy Rash-Gehres, ASN(RDA)/DASN ELM

Government Furnished Property End-to-End

PROCURE-TO-PAY DEFENSE PROCUREMENT AND ACQUISITION POLICY

TRAINING SYMPOSIUM

May 30 – June 1, 2017 ● Hyatt Regency Orlando FL 1

Accomplishments Synchronized the Property Policy Established GFP Working Group

• Meets quarterly • Contracting, Program Management, Logistics,

Financial Management, DCMA, Industry representatives

Published updated DFARS Property Policy in 2012 2 2017 Procure-to-Pay Training Symposium

Synchronizing the Policy

DoDM 4140

Material/ Logistics

Equipment/ Accountability

Acquisition/ GFP

DoDM 4140 DoDI 5000.64

DoDI 4161.02

Published February 2014 Updated August 2015

Updated May 2017 Published April 2012

Policies based on 19 business rules ensuring consistency of policy and terminology across organizations

3 2017 Procure-to-Pay Training Symposium 3

GFP E2E Policy and Guidance • FAR 52.245-1

» Establishes core GFP requirement • PGI 245.103-72

» Directs creation and inclusion of GFP Attachment • DFARS 252.211-7007

» Directs contractors to report receipt of ALL GFP » Requires updates for serially managed GFP

• DFARS 252.245-7001 through 7004 » Marking of GFP, Property Loss Tool, Contractor Property Management

System requirements, PCARSS (reutilization/disposal)


GFP Clause Compliance - FAR

5

2014-Q1 2014-Q2 2014-Q3 2014-Q4 2015-Q1 2015-Q2 2015-Q3 2015-Q4 2016-Q1 2016-Q2 2016-Q3 2016-Q4 2017-Q1 2017-Q2

Air Force 88% 88% 80% 81% 92% 93% 94% 89% 95% 97% 90% 86% 96% 95%

Army 83% 66% 79% 73% 84% 86% 81% 80% 76% 81% 78% 77% 76% 87%

DLA N/A* 50% N/A* N/A* N/A* N/A* N/A* N/A* N/A* 0% N/A* N/A* N/A* N/A*

Marine Corps 75% 100% 86% 92% 0% 80% 100% 89% 67% 75% 67% 93% 100% 100%

Navy 83% 72% 76% 62% 86% 71% 78% 69% 84% 82% 80% 79% 86% 92%

ODA 60% 89% 93% 96% 100% 80% 93% 95% 50% 73% 87% 83% 95% 86%

Total 84% 75% 79% 74% 88% 81% 87% 82% 84% 86% 85% 81% 89% 91%

GFP FAR Clause 52.245-1 when Cost Reimbursable

*No cost-type contracts during the quarter.

Scorecard Goal Status Lower Upper

Green 92 100 Yellow 85 < 92 Red 0 < 85

5

New High

Score! 5 2017 Procure-to-Pay Training Symposium

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2014-Q1 2014-Q2 2014-3Q 2014-Q4 2015-Q1 2015-Q2 2015-Q3 2015-Q4 2016-Q1 2016-Q2 2016-Q3 2016-Q4 2017-Q1 2017-Q2

Air Force 38% 45% 57% 65% 67% 72% 73% 78% 89% 92% 91% 88% 90% 95%

Army 17% 16% 36% 32% 41% 41% 43% 44% 45% 57% 48% 45% 61% 48%

DLA 66% 33% 0% 13% 67% 0% 87% 95% 99% 97% 57% 61% 63% 63%

Marine Corps 7% 24% 30% 41% 14% 26% 16% 38% 83% 48% 46% 55% 45% 90%

Navy 20% 20% 33% 28% 40% 16% 72% 86% 97% 95% 86% 81% 92% 94%

ODA 19% 17% 48% 45% 54% 37% 58% 51% 55% 56% 66% 74% 77% 72%

Total 24% 23% 39% 38% 45% 21% 69% 77% 93% 88% 78% 70% 86% 85%

GFP DFARS Required Clauses (All contracts with FAR GFP Clause)

GFP Clause Compliance - DFARS

Scorecard Goal Status Lower Upper

Green 92 100 Yellow 85 < 92 Red 0 < 85


iRAPT MCA Contractor Receiver

Items received

IUID Registry

Items received Email notice

Property Accountability

GFP From DoD to Contractor

Property Transfer input can be manual web input or system electronic message

7

This step must happen even if DoD does not enter the shipment

Contract w/GFP

GFP Shipment Notification

Email Notice of Inbound GFP

MCA = Materiel Control Activity 2017 Procure-to-Pay Training Symposium 7

GFP Attachment

GFP Data Flow Architecture

Contract Writing

EDA

IUID Registry

iRAPT GFP Property

Transfer

GFP list as XML

Record of property transfer

GFP Receipt & Shipment Notice Property Transfer

PCARSS/ PLT

Property loss or

disposal Component Accountable

Property Systems

Shipment Notice

Shipment Notice

Contract Deficiency Reports for missing GFP

terms or data DCMA

BI Reports of GFP Status

DLA

DLA

Note: DPAS Operational

DLA

GFP List (attachment

in fillable PDF - TBD

Industry

DoD (Materiel Control Activities)

DoD Supply System

Receipt

DLA

Operational

Distribution Standard System

(reparable return) DLA

Incremental deployment Future Capability

Requiring Systems

CDRs DCMA

8

Challenges • Contractor Acquired Property

– Two break-out sessions on this!

• End-to-End Process Execution • Contracting cannot do this alone- Team Sport!

– DCMA is Key

9 2017 Procure-to-Pay Training Symposium

Air Force

2017 Procure-to-Pay Training Symposium 10

Colquitt “Quitty” Lawrence, AF/A4LR

Government Furnished Equipment (GFE) • Air Force Material Weakness – June 2010

– AFAA Audit identified loss of accountability – Financial Improvement and Audit Readiness (FIAR)

• Current Status – Accountability of 22,457 assets valued at $2.6B – Data call completed Jan-Apr 17 – Conducting analysis to ensure accuracy of data prior

to uploading in APSR – Begin establishing accountability – Jun 17 – FIAR testing this summer


GFE (cont’d) – Published GFE Process Guide – March 2016

• Provides step-by-step processes by functional area (Contracting/Program Office/Logistics/Contractor)

• Cross section of SME’s including OSD – Published Guidance Memorandum – April 2016

• Implemented Process Guide • Under review – ECD: June 2017


Government Furnished Materiel

• Air Force Material Weakness – Contractor Managed & Possessed Material -

June 2013 – No Accountable Property System of Record (APSR) – Financial Improvement and Audit Readiness (FIAR)

• Current Status – Defense Property Accountability System (DPAS) selected as APSR


Government Furnished Materiel (cont’d) – Transactions identified and being added – DPAS modifications on track – ECD: October 2017 – Identification of all Programs – ECD: May 2017 – Currently reporting financial information via quarterly

data call – 30 Programs valued at $11B – Continue data call until DPAS automation – Contractor’s IT systems modifications under review


What’s Next? – Finalize and publish GFP Process Guide – Develop and publish Air Force GFP Policy Instruction – Population of Accountable Property Systems of Record – FIAR testing this summer – Ready for FIAR Audit


Department of Navy Government Furnished Property (GFP)

Accountability & Management GFP Status

Procure to Pay Training Symposium

1 June 2017 Mindy Rash-Gehres ODASN ELM

703-614-8000 [email protected]

GFP Requirements – in Broad Terms In order to be fully compliant, DON must execute & substantiate the following:

Government actions

All GFP FAR & DFARS clauses are in contract

All GFP is listed on GFP Attachment

All GFP is tracked in Government APSR

Contractor action directed by clause

All GFP is reported to OSD GFP Repository/ IUID Registry

All GFP is tracked in contractor’s system

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Cross-Disciplinary Requirements FAR/DFARS

– KOs ensure proper clauses in contracts & solicitations – PMs determine requirement for GFP – Finance conducts FIAR testing against FAR/DFARS requirements

DoDI 4161.02 – “Accountability & Management of Government Contract Property” – KOs ensure GFP reporting clauses & lists are in contracts – PMs maintain accountability in DoD APSRs & GFP Repository – Finance reinforces internal controls through FIAR testing

DoDI 5000.64 – “Accountability & Management of DoD Equipment & Other Accountable Property” – KOs ensure “business rules for establishing receipt and acceptance” are in place (clauses) – PMs maintain accountability in APSR (contractor’s system is not a substitute) – Finance values at full cost (Capitalized) or acquisition cost (not Capitalized)

FIAR Guidance – Finance directs testing – PM/Log conduct inventories & corrective actions – KOs interface with contractor/execute mods as required by Corrective Action Plans

18 No new requirements!

Problem: How to gain accountability of government furnished property DON Approach:

1. Draw “line in the sand” (4 May 15) & get it right going forward 2. Review “legacy” contracts for compliance 3. Train & Educate Workforce 4. Establish SECNAV policy 5. Locate & record GFP in APSR 6. Update systems capabilities 7. HCAs & PEOs self report compliance 8. DASN FO/ DASN ELM test compliance 9. Address gaps & generate Corrective Action Plans

Revised DON GFP Accountability Strategy

19 GFP compliance is a multidisciplinary effort: no new requirements 19

Adde

d st

eps a

re b

old

Guidance – Issued 3 memos to underscore requirements & provide direction

• May 2015: Required review of existing contracts & new contracts using GFP checklist • Dec 2015: Acknowledged progress made & requested HCAs identify audit challenges • Sept 2016: Identified priorities & schedule for data entry; reiterated requirements

– Attend OSD GFP WG & bring back guidance – Convene Monthly DON GFP WG (March 2015) to share lessons learned

Education/Training – Conducted 32 DASN ELM/DASN FO GFP Outreach sessions – Established local training

Policy – Updated NMCARS* to require GFP checklist & quarterly reports – Created SECNAV GFP policy: ready for SECNAV signature process – Developed local instructions

Tools – Drove key system changes to major APSRs – Developed metric/report to measure clause compliance – Added GFP as Special Interest Item to formal contract oversight process

DON GFP Accomplishments

*NMCARS = Navy Marine Corps Acquisition Regulation Supplement

DON Clause Compliance

0%

20%

40%

60%

80%

100%

2QFY15 3QFY15 4QFY15 1QFY16 2QFY16 3QFY16 4QFY16 1QFY17 2QFY1752.245-1 DFARS

21

92% FAR 94% DFARS

DON GFE Metrics

-

500

1,000

1,500

2,000

2,500

-

100,000

200,000

300,000

400,000

500,000

600,000

Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17

Tota

l con

trac

ts

Tota

l lin

e ite

ms

GFP Repository

Serially Managed Items Non-Serially Managed items Total Contracts 22

* GFP repository only captures Acquisition value for UII items. Repository data as of 31 Mar 2017. Data includes GFE + GFM.

Total GFP Capital GFE Only In APSR In Repository In APSR In Repository

DON Total Items 3,096,178 513,842 1,362 5,848

DON Total Value * $1,621.70 M $93,274.93 M $813.66 M $48,056.80 M

GFP Challenges Culture Shift

– PEO/PM had not been held responsible to validate GFP requirements – GFP is a team sport – requirements cross community boundaries

Personnel / Time – Competing FIAR Priorities – Validation/error correction is time consuming – Personnel already fully tasked – these are additional duties – Property management role distributed throughout Program Office – Data entry expected to be labor intensive process – efforts prioritized for Capitalized GFP highest

Cost – Contract cost may increase with no growth in warfighting capabilities – Maintaining records that the contractor is already paid to keep is duplicative & costly

IT System Shortfalls – APSR: GFP tracking capabilities/interfaces to OSD systems – Cost & schedule to identify, develop & implement changes to incorporate requirements is prohibitive

Discovery Ongoing 23

DON Way Ahead Promulgate SECNAVINSTs Continue DON Working Groups

– Share lessons learned/best practices – Address issues

Analyze reports & metrics Continue discovery Test compliance We’re making progress: more work to be done 24

Supply

Property Accountability

Financial

Maintenance

Receipt and Acceptance

Procurement

Government Furnished Property Business Management Environment

Quality Assurance

25

PROCURE PAY TO

TRAINING SYMPOSIUM

May 30 – June 1, 2017 ● Hyatt Regency Orlando FL

DEFENSE PROCUREMENT AND ACQUISITION POLICY

26

Documents

Government Furnished Property End-to-End training presentations...Government Furnished Property End-to-End PROCURE ... 3. Train & Educate Workforce 4. ... Continue discovery