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ISSN-1072-2858

12.2016VOL 28 ISSUE 6

PROPERTYP R O F E S S I O N A L

T H E

ALSO IN THIS ISSUE

Asset Intelligence (The Quest for GreaterKnowledge Through Better Data)

Sampling for Property Audits

Ask the Expert

#AssetManagement – Trending Now – "The GFP Attachment"

TURNING STRESS

A PROPERTY AUDIT SURVIVAL GUIDETO SUCCESS

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Any Life-Cycle Transaction or InquiryAny Mobile Device or Web BrowserBarcode Scanners/RFID/IUIDTabletsSMART PhonesConnected or Un-Connected

Presents:Dynamic Asset Management

sales@assetsmart.com 800.775.3968 www.assetsmart.com

(It’s not just inventory anymore!)

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Entire contents © Copyright 2016 by the National Property Management Association, Inc. All

rights reserved. Reproduction of the contents of The Property Professional in whole or in part by

photocopying, entry into a data retrieval system or any other means is strictly forbidden.

The Property Professional is published bimonthly by the National Property Management

Association, Inc. and is mailed third class. The articles, opinions and ideas expressed by the

authors are the sole responsibility of the contributors and do not imply an opinion on the part

of the officers or members of NPMA. Readers are advised that NPMA is not responsible in

any way, manner or form for these articles, opinions and ideas. Readers are urged to exercise

professional caution in undertaking any of the recommendations or suggestions made by

the authors. The NPMA magazine welcomes and encourages contributions and suggestions

from its readers. Editorial policy dictates the right to edit or reject any material submitted for

publication. Advertising rates will be quoted upon request. Contact the National Office for

information at 404-477-5811.

POSTMASTER: Send change of address notices to Membership Coordinator, National Office -

NPMA, 3525 Piedmont Rd., Building 5, Suite 300, Atlanta, GA 30305. Phone: 404-477-5811;

Fax: 404-240-0998. The Property Professional subscription is included in the NPMA member’s

annual dues. Non-member subscription rate is $35/year.

V O L 2 8 I S S U E 6

C O N T E N T S

S O C I A L facebook.com/groups/NPMAAssetManagement linkedin.com/groups/NPMA-1676387 NPMA Asset Management channel

SPECIAL FEATURES

12 Asset Intelligence (The Quest for Greater

Knowledge Through Better Data)

BY JOSEPH PERUZZI, CPPS, FEDERAL CENTER CHAPTER

14 Sampling for Property Audits

BY R. KEVIN PRESTON, ROCKET CITY CHAPTER

REGULAR FEATURES

04 National President’s Column

05 Editor’s Column

07 Special Interest Groups

17 Puzzle Challenge

21 #AssetManagement – Trending Now –

"The GFP Attachment"

23 Ask the Expert

INDUSTRY CHATTER

06 New Thinking on Performance-Based Logistics

07 Tracking Shipping Containers with RFID

18 DCAA Reorganization

20 Improving FAA MRO Oversight

25 Intellectual Property Influences Military Maintenance

25 Incomplete Federal IT Inventories

EDUCATION

19 NPMA's Asset Management Certification Program

22 NPMA's Federal Fleet Certification Program

26 January and February Course Schedule

ADVERTISERS

02 AssetSmart

06 GP Consultants

18 Metalcraft

20 NPMA SES

22 NPMA NES

24 NPMA Fleet Management Ad

28 Sunflower Systems

Turning Stress to SuccessA Property Audit Survival Guide08

COVER STORY

BY BRANDON KRINER, CPPM, CF, LOS ANGELES CHAPTER

4 THE PROPERTY PROFESSIONAL VOLUME 28, ISSUE 6

NATIONAL PRESIDENT CINDA BROCKMAN, CPPM, CF

I wish to thank the Nominating Committee and the membership for electing me President of the NPMA for the next two years. Thank you for your confidence in me. For the last 30 years I have valued the friendships and experiences I have made through NPMA. The present success of the NPMA would not have been possible without the leadership of our outgoing President, Marcia Whitson, for her endless hours of work and contributions to our association over the past 4 years as President. I have some very large shoes to fill.

When people meet me and learn that I became President, they tell me Congratulations, Condolences, or both. Fortunately for me, this year’s members of the Executive Board are energetic, enthusiastic, and excited about working to make our association an even better organization for all of our members. I look forward to working with the new slate of officers:

> Executive Vice President ...................................... Brandon Kriner> Immediate Past President .................................... Marcia Whitson> VP of Administration ............................................. Kim Saeger> VP of Certification .................................................. Iris Thompson> VP of Communication and Marketing ............. Jessica Dzara> VP of Finance ........................................................... Gary Quinn> VP of Membership .................................................. Ivonne Bachar> VP of Parliamentary Procedures ....................... Dr. Douglas Goetz> VP of Professional Development ....................... Tara Miller> Vice President of Central Region ....................... Ken Black> Vice President of Eastern Region ...................... William Franklin> Vice President of Western Region ..................... Robert KaehlerEach one of us holds the key to our personal success as well as the success of our chapters,

our regions and the entire NPMA organization. Throughout the next two years as President, I will strive to continue to provide the leadership and guidance NPMA needs to continue to maintain our Mission [Advance the profession of Asset Management through leadership in education, standards, compliance, and certifications] as well as continue to mentor new members in becoming future leaders of our wonderful organization. When I look back and trace how I got here, I see that I followed all the opportunities towards leadership; there were very challenging moments, but also key people who supported me and pushed me along. And for those who are interested in assuming leadership, my advice is to try all the opportunities presented, listen up for colleagues who are nudging you along, and don’t be afraid to take risks – that’s what it’s all about.

Well I am going to say that during my two-year term as President; we will be using the “F” word a lot! I want my term to be known as the “F” term and I challenge each one of you to help our organization to accomplish this and I can guarantee that we will achieve our goals for the next two years.

So what does this “F” term consist of?“F” for Fun“F” for Family“F” for Friendship“F” for Food

“F” for Fundraising“F” for Fitness“F” for Foundation“F” for Fleet

And you will think of more “F’s” that are important. How many “F’s” can we enjoy in the next two years? The choice is ours!

In closing, it looks to me as though we have a great two years ahead! I hope you all agree and will join in and participate in all that is offered to you through the NPMA. After all, this is your association and it is what you make it!

Thank you.

Each one of us holds the key to our personal success as well as the success of our chapters, our regions and the entire NPMAorganization.”

‘‘

START OFA NEW TERM

WWW.NPMA.ORG 5

This year, at the NES, I was given the Carl Iannacone Tribute Award. Of course, I am honored to receive this award but there is a deeper meaning for me than you would think. You see, I met Carl about 30 years ago at an NES held at the Red Lion in San Jose, California. I was a fairly new member and treasurer of the host chapter (Bay Area). Over the years we served on the EB together as well as numerous committees and project teams and over the years we became friends. If we were anywhere near the south, more often than not you would find us in Sonny’s BBQ … a favorite of both of ours. One of Carl’s last acts was to award me the 2011 Lifetime Achievement Award. It was literally the last award given on the last night of NES 2011 in Las Vegas. My old friend whispered to me that giving me the award made his last year as President worthwhile … soon thereafter he lost his battle with cancer and his Tribute Award was born.

If my service to The Property Professional is part of the reason for this award, then you must know that this magazine is the result of the hard work of a number of people.

• For the past two years, and gratefully at least for the next two years, Jessica Dzara, CPPM, CF (VP Communications and Marketing) has taken an active role. As I said in 2015, she added two new regular features – Ask the Expert and #Asset Management but I failed to mention my personal favorite, “The Puzzle Challenge!” This year she has added the mini news blurbs that highlight things going on around the world in our industry.

• My staff of editors who work diligently to inspire new authors to write for us and then work with them to hone their skills as authors. I must acknowledge the hard work and support given by my editors Betsy Tucker, CPPA (Managing Editor), Barbara Bays, CPPM (CR), Ken Black, CPPM (WR), and Toby Bell, CPPM (ER). These people do all that they do as volunteers … and have done so for years.

• Next I have to acknowledge the quality of workmanship that is demonstrated by our Production Staff at ME (our headquarters). Our magazine is beautifully presented to you six times a year because of the efforts of Jen Sanford, Emily Rhodes, and their Design Team.

This year we published 23 articles, more than any year since 2008 … which had a remarkable 30 articles that year. Next year let’s strive for 30. We hope to add a new regular feature for our colleagues working in fleet management. I managed a fleet and I know there is much we have to learn about property management from the articles that these folks can write.

The staff of The Property Professional hopes that you and yours have a healthy and happy holiday season that continues into the New Year. May you continue to develop in positive ways as asset managers and members of the NPMA family.

Our final issue of the year, starts out with our Cover Story "Turning Stress to Success- A Property Audit Survival Guide" by your Executive VP Brandon Kriner, CPPM, CF followed by "Asset Intelligence (The Quest for Greater Knowledge Through Better Data)" by Joseph Peruzzi, CPPS. Last we have an exciting read, "Sampling for Property Audits" by Kevin Preston.

Ladies and Gentlemen, I present Volume 28, Issue 6 of The Property Professional.

PAYINGTRIBUTE

NATIONAL EDITOR BILLIE JO PERCHLA, CPPM, CF

C O N T A C T U S

NPMA NATIONAL OFFICE

3525 Piedmont Rd, Building 5, Suite 300 Atlanta, GA 30305 Tel: 404-477-5811 Fax: 404-240-0998

NPMA NATIONAL OFFICE STAFF

ME PROGRAM MANAGER: Jennifer (Jen) Sanford jsanford@meetingexpectations.comMEMBERSHIP AND MARKETING SENIOR COORDINATOR: Jessie Palmer membership@npma.orgCERTIFICATION AND EDUCATION SPECIALIST: Lisa Golden certification@npma.orgACCOUNTING: Tenez Quarles tquarles@meetingexpectations.comEDUCATION & FLEET CERTIFICATION SPECIALIST: Emily Rhodes education@npma.org

THE PROPERTY PROFESSIONAL EDITORIAL TEAM

NATIONAL EDITOR: Billie Jo Perchla, CPPM, CF bjperchla@yahoo.comMANAGING EDITOR: Betsy Tucker, CPPAbtucker@sunflowersystems.comEDITOR EMERITUS: Dr. Douglas Goetz, CPPM, CF dgoetz@att.netCENTRAL REGION EDITOR: Ann Foster, CPPA afoster@sfasu.eduEASTERN REGION EDITOR: Toby V. Bell, CPPM toby.bell@hotmail.comWESTERN REGION EDITOR: Keith Record, CPPM keith.c.record@L-3com

NPMA EXECUTIVE BOARD

NATIONAL PRESIDENT: Cinda Brockman, CPPM, CFTel: 858-361-4270 NPMAPresident@npma.orgEXECUTIVE VICE PRESIDENT: Brandon Kriner, CPPM, CFTel: 310-813-4566 ExecutiveVP@npma.orgIMMEDIATE PAST PRESIDENT: Marcia Whitson, CPPM, CFTel: 865-947-3047 PastPresident@npma.orgVICE PRESIDENT ADMINISTRATION: Kimberly Saeger, CPPSTel: 520-850-2438 VPAdmin@npma.orgVICE PRESIDENT CERTIFICATION: Iris Thompson, CPPM, CFTel: 562-500-0300 VPCertification@npma.orgVICE PRESIDENT COMMUNICATIONS AND MARKETING: Jessica Dzara, CPPM, CFTel: 703-400-3170 VPMarketing@npma.orgVICE PRESIDENT FINANCE: Gary Quinn, CPPMTel: 575-415-3299 VPFinance@npma.orgVICE PRESIDENT MEMBERSHIP: Ivonne Bachar, CPPM, CFTel: 650-723-9095 VPMembership@npma.orgVICE PRESIDENT PARLIAMENTARY PROCEDURES: Dr. Douglas Goetz, CPPM, CFTel: 937-306-8372 VPParlimProc@npma.orgVICE PRESIDENT PROFESSIONAL DEVELOPMENT: Tara Miller, CPPM, CFTel: 321-867-8910 VPProfDev@npma.orgVICE PRESIDENT CENTRAL REGION: Ken Black, CPPM Tel: 512-776-2738 VPCentralRegion@npma.orgVICE PRESIDENT EASTERN REGION: Bill Franklin, CPPMTel: 434-549-8689 VPEasternRegion@npma.orgVICE PRESIDENT WESTERN REGION: Robert Kaehler, CPPSTel: 925-209-0944 VPWesternRegion@npma.org

NATIONAL DIRECTORS

AWARDS PROGRAM AND COMMUNICATIONS: Amanda Jensen, CPPS CERTIFICATION: Tanya Meza-Andino, CPPSCERTIFICATION GOVERNING BOARD CHAIR: Frank Gonzales, CPPM, CFCOUNCIL OF FELLOWS: Pam McFarland, CPPM, CFFOUNDATION ADMINISTRATOR: Patricia Jacklets, CPPM, CF MARKETING - CHAPTER GROWTH: Matthew Hatam, CPPS MARKETING - SOCIAL MEDIA: Angel Rosario MEMBERSHIP - CHAPTER SUPPORT: Kim Kaehler, CPPSMEMBERSHIP - NEW MEMBER ACTIVITIES: Loril Stephens, CPPM, CFSEMINARS: Wes Carter, CPPM, CFSPECIAL INTEREST GROUPS: Shawn Megaw, CPPS

6 THE PROPERTY PROFESSIONAL VOLUME 28, ISSUE 6

“Technical Excellence and Integrity in Contract Property Management”

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4 Educational and Training for System Improvement

4 Property Management System Evaluation

4 Review and Evaluation of Property Management Procedures

4 Subcontract Property Management Applications

For further information contact GP Consultants at gpconsultants@att.net 937-306-8374

According to a September 2016 article by Kevin Deal

in National Defense, Performance-Based Logistics

(PBL) has become a mandatory consideration for

maturing defense industries in many countries around

the World. Much of the PBL responsibility is now

falling on suppliers and has shown great success in

forecasting demand of parts, reducing inventories

on hand, and scheduling repairs. According to recent

studies, the article states that, “When properly

structured and executed, PBL arrangements reduce

the services cost per unit-of-performance while

simultaneously driving up system, subsystem or

component readiness – with an average annual cost

saving or avoidance of between 5 and 20 percent.”

Read the full article at: http://digital.

nationaldefensemagazine.org/i/723231-sep-2016/20.

NEW THINKING ON PERFORMANCE-BASED LOGISTICS

WWW.NPMA.ORG 7

SPECIAL INTEREST GROUPS (SIGS)

WELCOME NEW NATIONAL DIRECTOR OF SIGS

It’s an exciting time for the Special Interest Group (SIG) community. We’ve been integrated into the National homepage and continue to add new groups, allowing us to provide a wider breadth of knowledge to the members. Allow me to start by thanking our Executive VP, Brandon Kriner, for offering me the opportunity to serve as National SIG Director for the next two years, and Cheri Cross for all the hard work and dedication she has shown in getting the SIGs off the ground, and laying the foundation for us to build upon. Finally, I’d like to thank everyone who has contributed (and continues to contribute) to the SIGs. Your questions and requests for advice are the engine that drive the SIGs, and make it the great resource of knowledge that it is.

Quickly looking ahead there is one challenge which has risen above the rest as an impediment to member activity on the SIGs: Anonymity. At NES this year, time and time again I heard this same complaint in conversation about the SIGs. Clearing this hurdle will allow NPMA members to feel safe when asking for advice and posing questions on the boards, resulting in the growth of the knowledge the SIGs have to offer. It is a significant challenge that I hope to overcome during my term as National Director and, together, I believe we can.

I’m looking forward to an exciting 2 years and can’t wait to see what the future brings and what we can accomplish together.

Yours Respectfully, Shawn Megaw, CPPS

SHAWN MEGAW, CPPS

GotQUESTIONS?

Start

today!Join NPMA SIGs to be part of a professional community that advances knowledge, as well as leadership, and provides the tools, resources, and opportunities to enhance and support your professional performance.

JOIN NPMA SIGS

S I G SAND THEIR CHAIRPERSONS

CONTRACT PROPERTY

Carolynn Bundy, CPPM, CF

and Shawn Megaw, CPPM, CF

DOE/NNSA & CONTRACTORS

Cheri Cross, CPPM, CF

EXCESS PROPERTY & DISPOSITION

David Robbins, CPPS

FEDERAL PROPERTY MANAGEMENT

Angela Cooper, CPPM

FLEET MANAGEMENT

Russ Johnson

HOSPITALS & MEDICAL FACILITIES

Norman Pugh-Newby, CPPM, CF

NASA & CONTRACTORS

Marjorie Jackson, CPPM

PROPERTY INVENTORY MANAGEMENT

Brian Ross, CPPS

STATE & LOCAL GOVERNEMENT

Patti Eldred, CPPA

SUBCONTRACTOR-HELD PROPERTY

Niki Milsaps, CPPM and

Terri Snook, CPPM, CF

UID

Pat Jacklets, CPPM, CF

and Dan Tully, CPPM

UNIVERSITY, COLLEGE & OTHER NON-PROFITS

Stan Dunn, CPPM

TRACKING SHIPPING CONTAINERS WITH RFID

Based on an October 2016 article in

the RFID Journal, East Coast Warehouse

and Distribution (ECW), went to passive

RFID to address a challenge they

were having with managing over 1000

shipping containers in their 60-acre

space. The needs of this particular

business include handling the logistics of

certain containers requiring temperature

controlled storage, containers arriving

from foreign companies and requiring

U.S. Customs inspections, and ensuring

empty containers are quickly moved

out to avoid additional fees. The manual

data entry process was not only time

consuming but errors associated with

this process could result in container

misplacement which is costly.

The passive RFID solution, which

applied the tags to shipping containers

via magnets and readers on yard trucks

(switchers), resulted in reduced labor

cost and increased productivity for

ECW. Additionally, ECW has been able

to further utilize this investment to

develop a portal where their customers

can view the status and location of their

containers within the facility.

Read the full article at: http://www.

rfidjournal.com/articles/view?15061

8 THE PROPERTY PROFESSIONAL VOLUME 28, ISSUE 6

BY BRANDON KRINER, CPPM, CF, LOS ANGELES CHAPTER

There is perhaps no single word that strikes more fear into the hearts of

Property Managers than “audit.” You have been hard at work keeping your

property management system in peak condition, striving to stay abreast

of increasingly complex and ever-changing requirements and you’re pretty

sure you’ve got everything in perfect shape … right? Or maybe you know

you have some weak spots or areas of improvement that you haven’t yet

completely corrected. And now your customer, or other external or internal

audit organization, is coming to closely examine your system … carefully

scrutinizing every aspect of what you have worked so hard to build and

maintain, all culminating in a pass/fail exam- the audit. It’s enough pressure

to faze even the most seasoned Property Management veteran.

TURNINGSTRESS

TO SUCCESSA PROPERTY AUDIT SURVIVAL GUIDE

WWW.NPMA.ORG 9

Audits may always be stressful to some degree, but you can maximize your chances of success by following the principles and techniques outlined in this article. We will discuss strategies to:

• Adequately prepare for an audit• Effectively conduct an audit• Respond and recover from audit findings or system

disapproval• Execute a Corrective Action Plan• Arrive at a successful audit outcome

PART 1: AUDIT PREPARATIONAs educator Stephen R. Covey stated in his book The Seven

Habits of Highly Effective People, “Begin with the end in mind.” This principle holds true for the all-important preparation phase, which should begin the moment you receive notification of an audit. Your level of preparation will determine your ultimate success. After all, you wouldn’t perform in a play, deliver a musical performance or run a marathon without extensive practice and preparation, and an audit is no different. This is your time to shine as a Property Manager.

The first step in successful preparation is to understand your auditor’s audit criteria for performing the audit. You must have a firm grasp of contractual or other regulatory requirements. Now is the time to obtain a copy of the contract (if you don’t already have it) and review it carefully to understand all terms and conditions related to property management. This includes title to Government/Customer property, risk of loss, and any special reporting or other requirements. It is also helpful to review any other available audit criteria such as Agreed-Upon Procedures (AUP) or manuals such as Defense Contract Management Agency (DCMA) Instruction 124- Contract Property Management.

It is also important to understand the auditor’s motivations and concerns. There may be particular emphasis on certain elements of the property management system or follow-up on past corrective actions from previous audits. I recommend holding a pre-audit meeting or conference call to understand what “success” looks like from the auditor’s point of view and whether there are particular areas of concern they may have. If possible and appropriate, consider speaking with colleagues who may have had experience with the auditor or the auditor’s organization to gain insight into possible focus areas.

The next step in successful preparation is to gather all of the appropriate documentation for the audit. It is essential to make sure that you have a clear understanding of any documentation that the auditor wants to receive in advance of the audit and the deadline for receiving this documentation. This Request for Information (RFI) is often detailed in an audit notification letter, but it is best to double check with the auditor. Information requested typically includes records populations, policies and procedures, physical inventory results and reports of acquisitions and disposals. To ensure that you are sending the auditor exactly what is needed, consider sending them a small sample of the requested artifacts to confirm that they meet expectations. There are sometimes differences in terminology that create misunderstandings between what is requested and what is expected. Taking the extra step to confirm the correct documentation can avoid a frustrating scramble when the audit begins. Also, allowing the auditor to review this documentation in

advance can reduce non-value-added time during the audit. Some auditors may even pull samples and send them to you in advance, allowing you the opportunity to hone your preparation efforts.

Property Managers sometimes underestimate the time required to gather this information. Consider that you may have to go to multiple departments and data sources outside of your property management system to get what you need. For example, a detailed audit of the process of Acquisition may require:

• A copy of the contract from the Contracts organization• Purchase requisitions and purchase orders from the

Procurement organization• Receiving tickets and reports of discrepancy from the

Receiving department• Vendor invoices and matching invoices to the Government

from Accounts PayableAllowing ample time to gather the documentation can avoid last-

minute panic in the days before the audit. Once you have gathered the required information, create a binder or organized computer file with all of the requested documentation. This will save time during the audit and create the impression of an organized and efficient Property Management organization.

It is important to schedule the audit soon after you receive the notification from the auditor. Check with business stakeholders such as contracts, program management and others to make sure that they are available and that the proposed audit dates do not conflict with testing, shipping or other activities that would prevent an effective audit. At least 30 days’ written notice is required by DCMA instruction 124, and this time frame is also customary for other organizations.

Once the schedule is set and the documentation gathering is under way it is time to manage other pre-audit logistics. Make sure that security access or visitor badges are ready for the audit personnel. If possible, provide reserved parking spaces close to the entrance to the facility. If the auditor is unfamiliar with your facility it may be helpful to provide driving directions along with a list of nearby recommended hotels. Schedule conference rooms for both entrance and exit briefings and arrange adequate work space for audit activities … ideally a conference room or office with access to a computer and telephone. Managing these logistics in advance demonstrates that you respect the auditor’s time and sets the stage for a smooth audit.

Your Property Management organization may be well-versed in audits, but other stakeholders may be new to the process. Make sure to notify these stakeholders, such as Material Management, Program Management, Contracts and Engineering of the planned audit dates and make them aware that you may need to call on them to answer questions during the review. It is important for these individuals to know that you may be contacting them for priority support instead of “business as usual.” Encourage these people to be responsive to auditor questions but not to offer unsolicited, extraneous information when a simple yes or no answer will do. Don’t answer the unasked question!

Once the initial logistics are set it is time to start your detailed preparations. Ideally, you want your level of preparation to be even more rigorous than you expect the audit to be. The goal is to minimize or eliminate surprises - for both you and the auditor - by BY BRANDON KRINER, CPPM, CF,

LOS ANGELES CHAPTER

10 THE PROPERTY PROFESSIONAL VOLUME 28, ISSUE 6

taking advance action. If you haven’t dusted off your procedures recently, now is the time to do so. Have your business processes changed in a way that requires the procedures to be updated? If so, now is the time to update them and disclose significant changes to the auditor. If the procedures are sound but adherence to them has gone by the wayside, now is the time to conduct refresher training for those tasked with performing those processes.

Review your most recent self-assessment results. Are there any significant findings that need to be disclosed to the auditor? It is essential to always disclose significant findings and provide corrective action plans to the auditor in advance. Full disclosure is always the best practice and may avoid a customer-imposed Corrective Action Request (CAR). Attempting to conceal shortcomings or hope that the auditor does not discover them is not an advisable course of action. I recommend preparing a one-page summary of each issue explaining the root cause and any planned or completed corrective actions. Auditors can then clearly understand the issues and refer back to the summary later when preparing the final audit report.

The self-assessment may reveal weak spots in your processes that need to be addressed, even if they are not significant problems. Property records are a frequent audit issue and an obvious area to address. I recommend selecting a statistical sample of the property to be audited and perform an existence (record to floor) and completeness (floor to record) review. You may want to perform a complete physical inventory prior to the audit if the results are not good. Some auditors may provide you with records to floor samples in advance. An obvious step is to make sure those assets are accounted for before the audit.

Consider putting a sign on those assets that instructs users not to move them without contacting you. This also helps you quickly locate those items during the audit. You can also simulate a floor to record review by selecting the asset located to the right (or left/above/below) each sample and checking the record for accuracy. Look around with an auditor’s eye. Are there issues with storage and housekeeping or items not tagged that should be? Fix these issues while there is still time!

PART 2: CONDUCTING THE AUDITAfter exhaustive preparations, audit day is finally here. The

audit typically begins with an entrance conference. This is usually a short meeting that gives the auditor(s) a chance to introduce themselves and explain the agenda and objectives for the audit. Now is the time to clarify any expectations that have not been set during the preparation phase. If possible, hold this meeting in a formal setting, such as a conference room, and include representatives from relevant business functions, including senior management, Program Management, Contracts, Procurement/Supply Chain and Compliance. This shows that your company takes the audit seriously and values the customer.

The audit begins in earnest once the entrance briefing is over. If possible, I recommend conducting record to floor reviews first, with reviews of documentation later in the day or week. Walking around reviewing assets can be physically tiring; it’s best to complete this task earlier in the review when you and the auditor are both fresh. This is especially true if the auditor is traveling a long distance to your facility. Also, completing records reviews without major issues will provide early confidence to the auditor that your processes are sound. Many system problems tend to appear during records reviews. Of course, early records issues may torpedo the rest of the audit, but it is best to learn that early before too much time has been invested by both parties.

As you work through the audit, it is critical to answer all questions honestly and completely without providing extraneous information. Provide the information and support documentation to give the auditor what they need to complete the audit. The auditor will quickly lose confidence in you and your organization if you appear to be concealing “bad news” … it is best to confront issues head on. If you don’t know the answer to a question, say so, and take action to find the answer for the auditor within a defined time frame. It’s a good practice to have one or two people working with the auditor and other people available to research additional information as needed without disrupting the flow of the audit. It’s important to tie up loose ends as quickly as possible and not let them linger beyond the audit time frame where they may turn into findings.

Time management is critical during the audit. I recommend starting the audit one hour after the start and ending an hour prior to the end of your normal work day to give your team time to prepare for the day, research loose ends and catch up on other work. Break for lunch at the auditor’s discretion … a hungry auditor is not to your advantage! Set aside some time at the end of each audit day to summarize the day’s actions, discuss any open issues, and confirm the plan for the next day. Keep your management informally updated on the progress during the audit- don’t let them be caught off guard during the exit briefing if there are any issues.

WWW.NPMA.ORG 11

There may be times when you have a difference of opinion with the auditor over an aspect of your property system. I recommend following another bit of Covey’s wisdom from Seven Habits: “seek first to understand, then to be understood.” Approach the disagreement with a genuine desire to understand and cooperate with the auditor’s perspective. It is easy to become defensive when your property system is criticized, but the auditor is typically representing your customer or other key stakeholder so it is important to be open to feedback. Be honest: is the auditor correct? If so, take action to make the necessary changes. If you still disagree with the auditor’s point of view, state the basis for your difference of opinion along with supporting evidence for your claim in regulations, procedures, or elsewhere. In the end, your customer is (almost) always right, but it is important to challenge without being confrontational.

If you’ve discussed as much as possible with the auditor and still cannot reach a consensus, it may be appropriate to escalate the issue to your management. If you’ve taken this next step and there is still a legitimate difference of opinion, you and your company may decide to appeal to the auditor’s supervisor, the Contracting officer, or other next level authority. This should only be done as a last resort and with the explicit approval and participation of your management. The auditor may feel that you have gone over his or her head, compromising future interactions with that customer. Retaliation is forbidden, but unfortunately it can happen and the burden of proof is high. It is best to choose your battles wisely and use every available means to find common ground.

PART 3: CONCLUDING THE AUDITThe “field work” portion of the audit typically concludes with

an exit conference. The exact timing of this conference can be difficult to pin down as it depends on how long other audit activities take. It is best to attempt to reassemble as many of the participants in the exit conference as possible. This meeting is even more important than the entrance conference. If corrective actions or potential deficiencies are discussed you will want the relevant parties in the room. Listen to the auditor’s comments, take good notes, and ask clarifying questions as needed.

If findings, deficiencies or observations are noted, make sure you are very clear on the nature of the issues. If possible, solicit recommended corrective actions. Make sure you understand the auditor’s expectations of next steps. Perhaps a final report is to be issued, and if there are findings you may be required to complete a Corrective Action Plan (CAP). Regardless of the outcome, make sure to take the time to thank the people who helped you prepare for and conduct the audit.

Any Property Management professional who has experienced a disapproved property system or otherwise “failed” an audit knows how difficult this can be. Take some time to process your emotions before you act or respond … ideally, overnight or over a weekend. You are likely to feel a mix of negative emotions in the immediate aftermath of receiving this news and your judgment and perspective may be clouded. Now is not the time to say or do something you will regret later. Yours is not the first organization to fail an audit, nor will it be the last. As with any negative event in life, how you respond will be remembered far longer than the original issue. Avoid the unproductive “blame game,” come together as a team and resolve to move forward. View the failure

as an opportunity to make your property management system better.

Once you have the facts (and your composure), notify any additional management stakeholders that were not in the exit briefing or copied on the audit report. Take ownership of the problem and share some ideas for solutions. Make sure to ask for management input and resources as needed. Most importantly, get formal written notification of issues to be resolved and a deadline for submittal of a CAP.

Take the time to carefully plan the CAP. It is essential to get the right resources from your organization on the CAP planning team to help drive the desired results. The first step is to perform a root cause analysis. Your organization may have in-house experts on root cause/corrective action (RCCA) analysis that can help facilitate a session to identify the true underlying issues. Use the results of the RCCA analysis to identify possible solutions. It is important to identify the most effective solution that will resolve the issue and not to sign up for something that isn’t achievable. The cost and burden of corrective actions should be commensurate with the significance of the issue.

The CAP you submit to your customer should include the RCCA analysis and the planned containment and corrective actions along with a specific timeline for implementation. Present the CAP to your management and other internal stakeholders and get approval to present it to the customer. With this approval in hand, present the CAP to the customer and gain their concurrence on the root cause analysis and planned corrective actions. The CAP should ideally be presented either in person or over a teleconference instead of a simple email. This presentation will demonstrate your commitment to success and give your customer the opportunity to provide instant feedback.

As you execute your approved CAP, stay on schedule and keep your management and customer in the loop with regular progress updates. If you don’t think you will meet your promised timeline, communicate with your customer in advance to reset expectations. When the CAP is complete, formally present the results to your management and the customer. Finally, determine if a follow-up audit is needed to validate the effectiveness of the corrective actions. After you pass the audit, celebrate your success, but don’t get complacent … there’s always another audit on the horizon.

ABOUT THE AUTHOR:

Brandon Kriner is an Area Lead at Sunflower Systems where he works closely with clients to realize the greatest value from their assets. Previously he was the Director of Property Management for Northrop Grumman Aerospace Systems and the Senior Manager of Enterprise Asset Management at Harris Corporation’s Government Communications Systems Division. Brandon is the NPMA Executive Vice President, the chair of ASTM Subcommittee E53.20 on U.S. Government Property Management, and participates in the NDIA Government Property Systems Committee. Brandon lives in the Los Angeles area with his wife and children.

12 THE PROPERTY PROFESSIONAL VOLUME 28, ISSUE 6

The word “DATA” is a very common word in our lives today, we hear it on TV, read it in the headlines of newspapers, and see it everywhere on the internet. The glamorous and entertaining news is often about a data “breach” or a data “leak” or about illegal methods that were used to obtain data. We know that corporations and government agencies regard their data as their most valuable possession, and thus, they devote a lot of resources to protect it.

Let’s think about some of the ways organizations, and individuals, use data. Insurance companies use it to calculate our premiums. The retail industry uses it to figure out who their customers are, their buying preferences, and even their financial profile. Our doctors are using data to determine what medicine to prescribe and what the possible side effects may be. If we are in the market for a car we will certainly use any available consumer data to inform our decision. The government uses data (any and all data that it can legally obtain) for a whole host of national security purposes.

We are living in a DATA AGE, some may call it the “FACEBOOK AGE,” where there is an overwhelming amount of available data to collect and analyze. Governments and corporations are spending billions of dollars on studies about data and on the analysis of data. Data is being analyzed for commercial purposes, for medical purposes, for National Defense related purposes, for Public Safety purposes and for things that we have not even thought of.

Logically there is very good reason and motivation to study this data and to be able to derive actual intelligence from it. This information can help us make intelligent predictions more informed decisions in a multitude of areas. The use of data in the areas of healthcare (especially life expectancy) and of National Security seems to be the hot topics currently. The subject of “Decision Science” is one that is growing rapidly around the world, and universities are adding specific departments and degrees to

satisfy its growing demand. The purpose for the rant here is to make the point that “Data,” specifically the ability to collect and analyze it, is shaping our lives and society more than ever.

As property professionals, we are great at collecting data!!! That’s what we do! We collect and manage data and perform inventories and as time goes by the quantity of data that we have grows and grows and history is being made! In our day to day work, we witness countless assets being purchased, maintained, utilized, reutilized, maintained some more, retired, and disposed. As this cycle continues, we gain a lot of experience in the form of this data that could be used to answer many valuable business questions. So, our goal should be to uncover some of the untapped business intelligence that we as Property Professionals have access to. Have you ever asked the question, what do we know that the rest of the organization may not? The answer will, of course, vary depending on whether you are managing IT equipment or vials of anthrax in a lab.

Property Professionals at times manage property, but more importantly to this discussion, they manage the data and information about the property. This sounds like one of those very profound statements that may go in one ear and out the other, but it can become extremely important if we have a group of auditors asking questions to understand our data. In this age of compliance and oversight we need to be aware and prepared for those situations that may crop up unexpectedly.

So, the question is, how do we as Property Professionals have any say or control as to what our organization wants or asks for? How can we possibly be prepared for anything that we do not really have control over? In the old days it was all about being organized and having all of your information filed in its place. With the amount of data that we manage today the expectations are a lot higher and the bar has definitely been raised for us.

ASSET INTELLIGENCE(The quest for greater knowledge through better data)

By Joseph Peruzzi, CPPS, Federal Center Chapter

WWW.NPMA.ORG 13

First and foremost, I believe that the following needs to be our core principle: “Data Quality and Integrity.” If we are spending our days collecting and managing data, we may as well do it right. As we consistently collect quality (clean and accurate) data, we need to assume that it will be needed to fulfill a purpose at some point. We always need to remind ourselves that this data is important, relevant, and valuable.

A WORD ON DATA INTEGRITYWith regard to Data Integrity, it is very important for the

organization (as a whole) to decide what data will be collected (and to what level of granularity) and to set a policy on how this will be done. Because, as time passes, years go by, we will only be able to reap what we sow, as they say. Imagine your CEO calls and requests a historical report of all the vehicles ever purchased that use a certain type of fuel. If we have not been collecting that data (fuel type used) this is not going to be any easy request to complete!

Data Integrity is very important to eliminate the “needle in the haystack” approach to retrieving the data that you need. Finding your data when you need it most can be a lot more difficult than it might seem unless the planning and solid policies (and discipline) are in place. If you have people entering data into any system it is going to be very important for that person and others to have the ability to easily retrieve that very data. And if two different users were to enter data on the same item then that data should be exactly the same. This applies to any system --whether a clipboard or a large enterprise system. Your system needs to use the concept of “standardization” for all of its data points. For example, if your system uses the concept of a centralized and standardized “catalog” to identify assets (i.e. make/model/asset category name or type) then it is going to make it easier for the users of the system to identify exactly what they need to correctly enter data, identify the data that they have entered and easily retrieve the data. If we have good data integrity, then User A and User B will be entering data in a consistent way.

When focusing on Data Integrity, here are some of the things that we should try to avoid:

• Data for the sake of data – A large volume of data in itself is not a bad thing as long as data quality is good, and as long as it is uniquely identifiable and accurate. The problem comes when it is inaccurate, incomplete, and/or not uniquely identifiable. Don’t sacrifice quality for quantity. A lot of bad data is helpful to no one.

• Data duplication – We want our data to be well organized in such a way that adding to or viewing the data is unambiguous. We also need our data to fulfill our purpose so there may be some give and take in this area. In the design of our data structures we want to aim for an efficient and intuitive normalization.

• Poor data quality – This is never a good thing at any level. Bad data is worse than no data. If you’re going to make the effort to collect data, make sure it’s accurate, complete, and standardized as much as possible.

So how do we avoid these pitfalls? Planning is important! The way we collect, store, and manage data is going to make a huge difference in how we can do our jobs.

Here are some ideas for us to think about:• Develop a data-driven culture – When it comes to data, get

all involved and do not work in a bubble. If an organization

can get in sync with things such as data standardization it will make it easier if at some point the data is going to be married together for another purpose. It may never happen, or may be years down the road, but always aim to leave open the option of integrating with other data sources. (For example, the larger organization may want to construct a data warehouse and may want to bring your data into it.)

• Identify existing transactional system investments and how these investments can be further leveraged – If your organization has invested in Enterprise Infrastructure you need to leverage what you can from it. You may be able to leverage the “Standardization” and “Data Dictionary” from the larger system.

• Propagate consistent data definitions with associated quality standards – This is where we document the

definitions and standards so that all can follow. Preferably, these have been put together and agreed on by all of the stakeholders.

• Build a maintainable process and plan for the future – To be sustainable we will need to build in flexibility into our systems and processes. Remember, the world is evolving.

CHALLENGE / EXERCISETo test the suggestions put forth here, I challenge you to build

some interesting reports just for the fun of it! Instead of waiting for the day when we get a random data call, for example, we could come up with some useful reports that would WOW our organization. Prepare reports on a high value topic that would create some interest. This could be a report that shows something under a new light that is currently relevant to the organization. These “big value” reports are often very basic but will often generate an interest in the organization to invest more resources in data collection. Some examples of “wow” reports and analysis that can easily be generated from simply data collection may be:

• Loss Data for Law Enforcement Weapons (yes this happens more than you think!) looking for patterns, etc. that could highlight the need for new policies.

• Most efficient vehicles in a fleet from a financial and maintenance perspective.

• Lag time between asset acquisition and recording.• IT equipment with the longest (and shortest) service life.• Report of all smart phones that have a history of catching fire.In conclusion, there is no lull in the excitement for the Property

Management professional. The quest for intelligence through data is a continuous journey and promises to keep any organization on the hunt for the best uses of this knowledge.

ABOUT THE AUTHOR:

Joseph Peruzzi, CPPS, is a Manager at Sunflower Systems where he has over ten years of Asset Management experience focusing primarily on Federal Agencies and specializing in Analytics and “Data Design and Analysis.” Mr. Peruzzi holds an MS in Electrical Engineering/Computer Science from the Stevens Institute of Technology and a BS from the Rutgers College of Engineering. Joe currently resides in Virginia and is a member of the NPMA Federal Center Chapter.

14 THE PROPERTY PROFESSIONAL VOLUME 28, ISSUE 6

Sampling of populations came about to save money and time. If you could make some assumptions about the whole population, then statistical (mathematical) models can be used to select only a sample or a fraction of the whole, that could then be used to make valid generalizations about the population. Even with small populations (a few hundred items) sampling works just as well as checking every item.i

You may be asking yourself why The Property Professional is publishing an article on sampling. At some point you need to evaluate all or parts of your property system. Unless you have a small number of items that you are responsible for, and can do checks for 100%, you may have to resort to the sampling process.

One of the problems with writing about sampling is that there are a lot of mathematics that are used to define the statistical models. Other issues are how to select your sample and sample sizes. I would like to walk through the entire discussion and mathematical derivations to prove the conclusions of this article, but I’m afraid that property people, who would really benefit from this information, would miss the forest for the trees. So, if you want to see the mathematics, I suggest the texts listed in the reference section.

SAMPLING FORPROPERTY AUDITS

By R. Kevin Preston, Rocket City Chapter

WWW.NPMA.ORG 15

One of the things I would like to address right from the start is that using the retired MIL-STD-105, “Sampling Procedures and Tables for Inspection by Attributes” for property is like using a Battleship to go fishing. You can make it work, but using it correctly is not going to be easy or as productive as you would want. MIL-STD-105 was developed during WWII to establish sampling plans to accept or reject a lot or batch consisting of the same items. For example: bolts, rifles, ammo, etc. In order to correctly use MIL-STD-105 you have to know some very specific information about the population. In addition to the population information needed, you have to select consumer and producer risks, then determine sample sizes and accept and reject criteria. The sample sizes would also vary with the population size, actual quality and producer and consumer risks. Determining all these variables is challenging for systems, which fit the models to which the MIL-STD-105 apply. It is impossible to get all these variables for any of the aspects for your property system.

How you select your samples will be addressed in a later article, or you can look into this yourself in reference 1 (Section 6.9). For this article, I am going to cover the size of the sample you need. There are some statistical terms that will be used to help determine sample size:

1. Standard Normal Model or Bell Curve2. Central Limit Theorem3. Confidence Limits4. The Wilson Estimator Following is a brief description of each of these terms and how

they are applied to property sampling.

STANDARD NORMAL MODELThe Standard Normal Model may be better known as the “Bell

Curve.” (See Figure 1) Everyone should have run across this at some point in time. Attributes like test scores, cattle weight, tree height, etc. fall very nicely into the standard normal model. In general, attributes can take on a range of values like test scores (0 to 100%) or height of adult humans (21.5 to 108 inches). This model provides some very useful tools for sampling, calculation of means (often called average), medians, modes, standard deviations and confidence limits.

CENTRAL LIMIT THEOREM The Central Limit Theorem (CLT) is a mathematical

determination if your current sample size is sufficient to use the tools that exist for the Standard Normal Model. There are two very similar formulas used to make this determination. With n being the number of items in the sample and p the probability of passing the sample, the formulas are:

np ≥ 10 and n(1-p) ≥ 10 Let’s look at an example on how these formulas are calculated

and used. We pull a sample of 30 items to verify the actual part number matches, which are recorded in our property system. In the sample, 19 items passed (the numbers matched) and 10 items failed (the numbers did not match). Using the formulas above we have 30 * (0.63) = 18.9 and 30 * (1-0.63) = 11.1 since both products are greater than 10 we can use the Standard Normal Model to make generalizations about the whole population.

On the other hand, if our sample had 25 items that passed, the formula above comes up with 25 and 5. Because both of these numbers are not greater than 10, we cannot use the standard model to make generalizations about the whole population.

The bad part of the CLT is that, the better your system (closer to 100%) the more samples you will have to pull to make generalizations about your population. If your sample is 90% good you need to pull a sample of at least 100 and if it is 95% good you would need to pull a sample of 200. Remember, sampling was supposed to save us time and money but the CLT does not seem to be helping us much.

WHY DO WE CARE ABOUT THE CLT?If we meet the CLT requirement, then we can use a formula

for calculating standard error and apply confidence limits on our sample results. We can say things like, based on the sample we are 90% confident that the true accuracy of our part numbers is between 78.3% and 93.4%.

CONFIDENCE LIMITSNow that we have covered the model, let’s discuss confidence

limits. This statistical term is thrown around from time-to-time and, unless you have completed a course in statistics, you may not know what this really means, nor how it should be used when talking about property system attributes.

Confidence limits, or intervals, are based on the standard deviation of the sampled population. The standard deviation is considered to have variations in the process. In recent years, you may have heard the term six-sigma or six-σ in relation to lean processes and statistical process improvements.ii The Sigma (σ) is the symbol used for the standard deviation. Assuming your sampled population fits the standard normal model, then 68.27% of your population fall within one standard deviation of the sampled mean (µ± σ). If you go to two standard deviations (µ± 2σ), this then becomes 95.45%. These intervals are also called confidence intervals. If someone refers to a 95% confidence interval, then the calculation is µ± 1.96σ. As you can see in the Figure 2, when you increase the confidence interval you move the limits out. Moving from a confidence interval from 95% to 99%, you increase the size of the limits from ± 1.96σ to ± 2.58σ. Just raising your confidence limits does not mean you have a better property system; all it means you have moved the limits out to make sure your population fits within those limits.

-4 -3 -2 -1 0 1 2 3 4

Figure 1 – Standard Normal or Bell Curve

16 THE PROPERTY PROFESSIONAL VOLUME 28, ISSUE 6

What makes for a better property system is getting your sample mean (µ) closer to your goal and reducing the standard deviation (σ) or variations in your system.

To recap: if you meet the requirements of the CLT then you can apply confidence limits to your sample. As already pointed out, if the proportion of success is close to 100% you have to pull many samples to apply confidence limits. This presents an issue that has been already been solved by using a model called The Wilson Estimator (TWE). This model takes into account that the majority of these attributes are “good” or acceptable.

MORE DETAILS ABOUT TWEThe Wilson Estimator replaces the sample mean with the

formula shown in Figure 3. In effect, this formula adds two successes and two failures to the sample. If you put this data on a graph, TWE mean is slightly to the right of the sample mean. Also, Figure 4 shows the formula used to calculate TWE confidence limits. Again, what this formula does is expand the confidence limits you have from the Standard Normal Model.

If you want to apply confidence limits to your samples and your sample size, and outcomes do not meet the Central Limit Theorem, then use TWE. Just remember, all TWE does is make adjustments to your sample results so it now meets mathematical (statistical) requirements.

Let’s take a single attribute and work through how TWE works. The model will work for any attribute which can be pass/fail (right/wrong).

We pulled a sample of 30 assets and found that 28 passed and 2 failed for the attribute we were testing. Our calculated p is 93.3% (28/30). Using the CLT formula we calculate values of 28 and 2. Because 2 is less than 10 we cannot use the Standard Normal Model to make generalization about the population. Now, when we use TWE, p changes to p and its value is calculated as 88.2%. With this value, we can determine the 90% confidence limits of 81.1% to 95.3%. What this means is, if we continue to pull an infinite number of samples, 90% of the time the sample mean would fall between 81.1% and 95.3%. If we pick a 95% confidence, the limits change to 77.4% to 99.0%. Note: changing to a higher confidence limit does not change anything about your property management system. All it does is widen the range to ensure your samples would fall between these values.

CONCLUSIONSHere is my recommendation: unless you, and the people that

oversee your property system, are well versed in statistics, drop the confidence limits. It causes confusion and may give a false impression about your property system. With that said, using a true random sample of at least 30 will put you on a solid mathematical basis. You should still apply the CLT and if necessary TWE, so that you can have mathematical certainty about your sample results.

If you have the time and money, a sample size larger than 30 will provide better results in terms of getting your sample mean and standard deviation closer to your population’s true values.

REFERENCES:i Mikel J. Harry et al “Practitioner’s Guide for Statistics and Lean Six Sigma for Process Improvements” John Wiley & Sons © 2010 ISBN:9780470114940, Section 6.4

ii Mark J. Kiemele, Stephen R. Schmidt, Ronald J. Berdine, “Basic Statistics Tools for Continuous Improvement” Air Academy Press & Associates, LLC ©

2000 ISBN 1-880156-06-7

ABOUT THE AUTHOR:

Mr. Preston has a BS in Mathematics from Eastern Kentucky University, a Quality and Reliability Engineering Certificate from the U.S. Army and a MS in Computer Science from the University of Alabama in Huntsville. He has been with Lockheed Martin for 20 years and performing property audits for the last 3 years.

-4 -3 -2 -1 0

95%

90%

99%

1 2 3 4

Figure 2 – Standard Normal Curve showingconfidence interval ranges

Figure 3 – Wilson Estimator for Sample Mean

Note: x is the number of samples thatpassed and n is the total number of samples

(x+2)

(n+4)

Figure 4 – Wilson Estimator for Confidence Limits

Note: z is the standard deviation multiplier

(n+4)

(1- )

WWW.NPMA.ORG 17

ACROSS2. Variations in the process. 2 words

4. Fleet Management Awareness Month is celebrated in which month each year.

10. A statistical model also known as the Standard Normal Model. 2 words

11. Acronym of the second level of Federal Fleet certification.

12. Information that can help us make intelligent predictions.

13. A fraction of the population.

15. Data that is clean and accurate.

16. Observations noted during an audit.

DOWN1. NPMA’s new National President.

3. Provides better knowledge through better data

5. The GFP _______ identifies what property will be provided as GFP.

6. 2017 NES city.

7. Recipient of the 2016 Carl Iannacone Tribute award.

8. FAR 52.245-1 is also known as the Government Property __________.

9. Acronym of U.S. agency responsible for contract administration.

14. RFID tags that do not emit a signal.

PUZZLECHALLENGE

Welcome to The Property Professional ‘‘Puzzle Challenge.’’ The use of puzzles are great for

challenging the working mind in a fun and stimulating way. In this edition, we have given you a crossword puzzle based on information

taken from this issue. Take a look, consider the facts, rack your brain for some of

those hidden answers, and good luck!

15

16

14

1312

11

9

8

4

2

1

5

3

6 7

10

ANSWERS PAGE 23

18 THE PROPERTY PROFESSIONAL VOLUME 28, ISSUE 6

DCAA REORGANIZATIONBased on a May 2016 Government Contract Services update

published by Ernst & Young’s Government Contract Services (GCS) practice, the Defense Contract Audit Agency (DCAA) formally announced an internal restructuring that has been underway since January 2016. The reorganization is focused on improving efficiencies, communication, collaboration, and customer service throughout the agency. Change highlights include seven large multi-business-unit contractors being aligned into four separate Corporate Audit Directories (CADs). The corporate organizations include Northrop Grumman, Raytheon, General Dynamics, BAE, Boeing, Honeywell, and Lockheed Martin. In addition to instituting the CAD concept, DCAA also announced that it is going from five geographical regions to three in order to balance workload across the country. The full report can be downloaded at www.ey.com by searching “DCAA Reorganization Announced.”

WWW.NPMA.ORG 19

NPMA’S ASSET MANAGEMENT CERTIFICATION PROGRAM

BENEFITS:

> Key to enhanced professional stature> Expanded knowledge> Gain technical competence in property management> National professional recognition> Extensive peer-level communication

Certification Level

Minimum Experience

Prerequisite Certification Renewal Period

CPPS Certified Professional

Property SpecialistNone required None required Five years

CPPA Certified Professional

Property Administrator

Three years CPPS Five years

CPPM Certified Professional

Property ManagerSix years CPPA Five years

ENHANCE YOUR PROFESSIONAL STATURE BY ACHIEVING CERTIFICATION.

Learn more at http://www.npma.org/?page=Certification

Certification training courses are available through NPMA.

Visit our website or call404-477-5811 to find the course

that’s right for you.

ASKUS

CPPA Updates Coming!

LOOKOUT

THE NEW INTERMEDIATE MANUALS WILL BE RELEASED

JANUARY 1, 2017

20 THE PROPERTY PROFESSIONAL VOLUME 28, ISSUE 6

According to an August 16, 2016 article posted by Juliet Van Wagenen posted on Avionics Today, a new U.S. Government Accountability Office (GAO) report indicates that additional airline data and performance metrics could benefit Federal Aviation Administration (FAA) Maintenance, Repair, and Overhaul (MRO) stations. The report examines airlines’ maintenance contracting practices and FAA’s oversight of domestic and foreign repair stations. The report highlights missed opportunities by the FAA to improve oversight and operations by collecting airline data concerning the amount of work performed at repair stations and suggests lagging supervision at foreign MRO’s. The full article can be read at:

http://www.aviationtoday.com/av/commercial/GAO-to-FAA-Look-for-Airline-Performance-Metrics-to-Improve-MRO-Oversight_88436.html

IMPROVING FAA MRO OVERSIGHT

WWW.NPMA.ORG 21

is authorized to MILSTRIP, e.g. the non-reimbursable section items are GFP and the reimbursable section are items the contractor is buying from the government and will pay the government for them.

The Government has just released (17 September 2016) a new GFP Attachment that has combined the two attachments into one: “Government Furnished Property.” This new form removed the “reimbursable section” on the “Requisitioned GFP” attachment. They also added data elements such as delivery information; attachment date, multiple files, POC information for feedback; item name and notes. Some data elements have been removed: marking instructions; nomenclature, part or identifying number and type designation.

In addition, the government has refined the conversion process and the IUID Registry display of the Attachment into a recognizable format. It is accessible by all Government personnel and to contractors for those contracts under their CAGE (Commercial and Government Entity) code.

It is important to note that the creation of the Attachment is a responsibility of the Contracting Officer. It may be delegated to someone else in his or her office and the Government may seek the assistance of the contractor especially for contract transfers. The form contains Required (R), Conditional (C), and Optional (O) fields and is fully explained in a new GFP Attachment Tutorial that may be accessed by all through the DoD Procurement Toolbox at www.dodprocurementtoolbox.com under the Government Furnished Property tab; attachment information. Both Government and contractor personnel will benefit from reviewing this tutorial. Enjoy!

One of the most important tools of a property professional’s job is access to the contract. Anyone who has ever heard me speak on any topic has heard me say “Do you have a copy or access to your contracts?” If you do not, you cannot do your job!

Why, you ask? Because you would not have the knowledge that is needed for you to meet the requirements of the Government Property Clause, FAR 52.245-1, for starters. FAR 52.245-1(b)(1) states, “The Contractor shall have a SYSTEM of INTERNAL CONTROLS to manage … Government property in its possession. The system shall be adequate to satisfy the requirements of this clause …” Section (1)(f )((iii) says, “The Contractor shall create and maintain records of all Government property accountable to the CONTRACT, including Government-furnished and Contractor-acquired property.” How do you know what to expect? Or how would you know what other clauses are in the contract? The Government has worked hard to help us know what government furnished property is expected by providing the information in the Government Furnished Property (GFP) Attachment in the contract.

The GFP Attachment identifies what property will be provided as GFP or authorized for requisition in the contract and indicates what is or is not serially managed for reporting purposes under DFARS 252.211-7007 Reporting. It is the authorization to have the property in your custody. Your contracts may have two attachments. The attachments are “Scheduled GFP” and “Requisitioned GFP.” The Scheduled GFP attachment identifies the GFP that will be furnished or pushed to the contractor. The Requisitioned GFP attachment lists items that a contractor

ABOUT THE AUTHOR:

Pat Jacklets, CPPM, CF is an Asset Management consultant with A2B Tracking Solutions, Inc. She has more than 35 years of experience in property and asset management. She received the prestigious “Property Person of the Year Award” in 2006 and an Individual Contributor Award from the DoD IUID Program Office in 2009. She is a frequent presenter at NPMA seminars.

#ASSETMANAGEMENTTHE GFPATTACHMENT

By Pat Jacklets, CPPM, CF, Long Island Chapter

#AssetManagement is a regular column in The Property Professional that highlights innovative trends in the world of asset management that can be applied to new and exciting fields.

Share Your Story

HAVE YOU HEARD OF A NEW AND

EXCITING TREND IN THE WORLD OF

ASSET MANAGEMENT?

We want to hear from you. Email vpmarketing@npma.org

to share your story.

EMAILUS

22 THE PROPERTY PROFESSIONAL VOLUME 28, ISSUE 6

NPMA’S FEDERAL FLEET CERTIFICATION PROGRAM

BENEFITS:> Key to enhanced professional stature> Expanded knowledge> Gain technical competence in fleet management> National professional recognition> Extensive peer-level communication

CERTIFICATION LEVEL MINIMUM EXPERIENCE

PREREQUISITE CERTIFICATION RENEWAL PERIOD

CFFS Certified Federal Fleet Specialist None required None required Five years

CFFA Certified Federal Fleet Administrator One year CFFS Five years

CFFM Certified Federal Fleet Manager Three years CFFA Five years

ENHANCE YOUR PROFESSIONAL STATURE BY ACHIEVING CERTIFICATION

Learn more at http://npma.site-ym.com/?page=Fleet

Fleet Certification training courses are available through NPMA. Visit our website or call 404-477-5811

to find the course that’s right for you.

LOOKOUT

SAVETHE

DATEFOR NPMA’S BIGGESTEVENT OF THE YEAR!2017 NATIONAL EDUCATION SEMINAR

Phoenix, AZ • July 31-August 3, 2017 JW Marriott Desert Ridge Resort & Spa

Plan now to join your asset management peers from around the world for networking, education (with the opportunity to earn CEUs), pre-conference certification courses, exhibits highlighting cutting-edge products and services, chapter meetings, receptions and more.

EARLY REGISTRATION IS OPEN. Visit npmaconferences.org/NES for information on how you can attend, present or exhibit!

WWW.NPMA.ORG 23

DEAR EXPERT PANEL,I learned from a recent seminar workshop

that a physical inventory can also be a very effective and detailed self-assessment of a property management system.

Understanding that the results of a physical inventory reports assets inventoried along with assets not inventoried, what else would need to be reported?

FROM, IDA INVENTORY

DEAR IDA INVENTORY,

It depends, primarily on your inventory “plan” and the level of effort to reconcile the inventory results. There should be a variance report of “shortages” (assets on record but not inventoried) and “overages” (assets inventoried but not on record).

Beyond just that report however, the reconciliation should be looking into reasons “why” the shortages and overages occurred. Looking hard at those reasons may reveal areas in business rules and processes that are in need of review and improvement. But don’t confuse this with a formal Self-Assessment Program as may be required by contract.

FROM, YOUR EXPERT PANEL

DEAR EXPERT PANEL,What is the purpose of placing an

“ownership” label on assets versus placing an identifying barcode on assets?

FROM, OWEN OWNER

DEAR OWEN OWNER,

Based on regulatory requirements, business rules, policies and procedures, there may not be the need to serially identify all assets. A requirement to “track and report” assets may only apply to specific asset types or categories. With the serial identification, assets are normally assigned Ownership by record in a Property Management database. In absence of tracking and reporting, there may be a requirement to identify Ownership. This would be a basic label giving visual reference to ownership or title of assets in use but not being recorded in a Property Management database.

FROM, YOUR EXPERT PANEL

BY YOUR NPMA ‘EXPERT’ PANEL

ASK THEExpert

Questions

DO YOU HAVE A BURNING QUESTION for our panel of experts? We want to hear from you. Email hq@npma.org to submit your question.

ASKUS

ACROSS2. STANDARD DEVIATION4. JANUARY10. BELL CURVE11. CFFA12. DATA13. SAMPLING15. QUALITY16. DEFICIENCIES

DOWN1. BROCKMAN3. INTELLIGENCE5. ATTACHMENT6. PHOENIX7. PERCHLA8. CLAUSE9. DCMA14. PASSIVE

ANSWERS FROM THE

PUZZLEChallenge

24 THE PROPERTY PROFESSIONAL VOLUME 28, ISSUE 6

SAVE THE MONTH! JANUARY IS

FLEET MANAGEMENT

AWARENESS MONTH

Free opportunities to network and learn will be available to all

throughout the entire month.

www.npma.org/FMAM

WWW.NPMA.ORG 25

INTELLECTUAL PROPERTYINFLUENCES MILITARY MAINTENANCE

INCOMPLETE FEDERAL IT INVENTORIES

According to an October 11, 2016 article by Sandra I. Erwin in National Defense Magazine, the Defense Department is challenging manufacturers of military equipment to loosen their grip on intellectual property so the military can take over routine maintenance and repair work currently done by contractors.

In recent years, the military services have been working to secure “data rights” for equipment they buy from suppliers. The rights to the designs of thousands of pieces of hardware and software used by the armed forces are owned by manufacturers. Defense officials have become increasingly frustrated by IP restrictions because they are obligated to hire the original manufacturer of a system for logistics support and upgrades. With the Pentagon under pressure to cut spending on contractors, changing how the services manage data rights has become a top priority.

This issue has ignited a tense controversy as manufacturers fear that the Pentagon’s efforts could upend the lucrative aftermarket services business. The full article can be found at:

http://www.nationaldefensemagazine.org/blog/lists/posts/post.aspx?ID=2327

According to a September 30, 2016 article by Chase Gunter posted on Federal Computer Weekly and a September 29 Government Accountability Office report, most big federal agencies do not have complete inventories of their IT assets, are missing opportunities to identify savings, are creating security risks, and are not complying with Federal IT Acquisition Reform Act. Federal IT spending accounts for more than $80 billion of the budget, and much of it goes to maintaining legacy systems. Application rationalization (the process of streamlining a portfolio by reducing complexity and redundancy) can save money. But, to streamline their portfolios, agencies must first have a complete inventory of their assets. Challenges cited by agencies for not fully completing their IT asset inventories included focusing on major and high-risk investments instead and a lack of automated processes which makes collecting and cataloging inventory information difficult. The full article can be found at:

https://fcw.com/articles/2016/09/30/gao-it-inventories.aspx?s=fcwdaily_031016

26 THE PROPERTY PROFESSIONAL VOLUME 28, ISSUE 6

WHERE IN THE FAR (WORLD) IS PROPERTY MANAGEMENT AND HOW DOES IT AFFECT ME?

JANUARY 23 - 26 // MELBOURNE, FLORIDAGovernment property administration can be very complicated

to understand. If you’re asking yourself, “How can I help my company understand the application of FAR,” this is the class for you! This class is for the property professionals involved with the management of Government property. Sometimes Government property regulations are confusing and complicated to understand. This course goes through the FAR clauses. It is essential for property professionals who are seeking solutions by learning techniques within Government contracting for the resolutions of everyday problems. Also, provided within this class you will receive guidance on how to cope with the changing world of rules and regulations. This five-day course presents a detailed map of the FAR and will help with application of the regulations. This course is essential if you work in property management, procurement, shipping and receiving, contract management, procurement, subcontractors, warehousing, and disposal.

FUNDAMENTALS OF PERSONAL PROPERTY MANAGEMENT

JANUARY 23 - 25 // WASHINGTON, DCEvery organization, regardless of its size or type has critical

business functions that are integral parts of meeting its objectives and accomplishing the mission. Property management is first and foremost a general management assignment no different than the management of any other resource such as money, personnel, or facilities. Personal property managers are directly accountable to a higher authority for the acquisition, use, redistribution, and disposition of personal property. As stewards of our company or agency’s personal property, we have a fiduciary responsibility to manage property in a prudent and compliant way. The Fundamentals of Personal Property Management course is designed to teach the basics of property management, cradle-to-grave, including how to effectively manage personal property. The Fundamentals of Personal Property Management manual is included as part of this course.

COURSE Schedule

Register today for an NPMA

course!

BY ATTENDING AN NPMA course, you’ll gain the knowledge and skills you need to succeed on the job. Don’t wait, register today! Seating is limited!

IF YOU HAVE QUESTIONS about NPMA courses, call 404.477.5811 or email education@npma.org. For more information or to register, visit the website at www.npma.org and click on the Education tab.

DON’T WAIT

WWW.NPMA.ORG 27

NPMA CERTIFICATION REVIEW & TESTINGThe NPMA Certification Program is designed to elevate

professional standards and enhance individual performance for those who demonstrate a high level of competence that is essential to the practice of property management. If you have made a commitment to a career in property management, you should consider obtaining your NPMA certification. Join a distinguished group of peers worldwide who have chosen to attain this high level of excellence.

For information about NPMA certification, visit the website at www.npma.org/pages/certification.htm

CPPS CERTIFICATION REVIEW & TESTING

JANUARY 23 - 25 // WASHINGTON, DC

FLEET MANAGEMENT – CERTIFIED FEDERAL FLEET SPECIALISTJANUARY 28 - 30 // WASHINGTON, DC

The NPMA, in partnership with Mercury Associates, is proud to offer the first Certification for the Federal Fleet Manager. The CFFS level training is designed for persons who have basic Fleet Management responsibilities or dual roles such as the vehicle control officer. Course subjects include Basic Fleet Management, Fleet Information Management: Regulations, Systems and Data, and Optimizing the Fleet. Certification testing will be performed during the 3-day course.

FLEET MANAGEMENT – CERTIFIED FEDERAL FLEET ADMINISTRATOR

JANUARY 28 - 30 // WASHINGTON, DCThe NPMA, in partnership with Mercury Associates, is

proud to offer the first Certification for the Federal Fleet Manager. The Certified Federal Fleet Administrator (CFFA) level training is designed for persons who have successfully completed the Certified Fleet Specialist training. Fleet Management responsibilities or dual roles such as the vehicle control officer. Course subjects include, Fuel Management, Leased Fleet Management, Asset Management and Disposal Management. Certification testing will be performed during the 3-day course.

GOVERNMENT PROPERTY BASICS

FEBRUARY 13 - 17 // PHOENIX, ARIZONAWhen it comes to managing assets, understanding the

complexities of government regulations is a vital first step. This five-day course presents a detailed analysis of life cycle asset management in government property systems. In addition to the fundamentals of property management and the regulatory requirements of property management; this course includes an overview of the Federal Acquisition Regulations (FAR) and other appropriate regulations used in federal government procurement of supplies and services. This course is essential if you work in property management, supply-chain, logistics, quality assurance, contract management, procurement, subcontract administration, program management or internal auditing.

J A N U A R Y – F E B R U A R Y

Visit www.npma.org to register

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USER DEFINED MENUSCreate links to yourfrequently used functions.