volume 24, issue 6 issn-1072-2858 … · special interest Groups NPMA ... Volume 24, Issue 6 NPMA National office 4025 Tampa Road, suite 1203, ... CF. Property Professional. Volume

Property Professionalthevolume 24, issue 6 www.npma.org issn-1072-2858

PLUSAsset management meetsCourse management

Federal Property Accountability:

The Front End of the Property Management Life Cycle

C NNECTto the Real Asset World

ASSET MANAGEMENT 360

Integrated Solutions. One Smart Connection.

Asset Management 360, a true asset management solution, elevates asset management to an entirely new class of enterpriseintegration and visibility. Connecting your physical operations andend users with your ERP/Financial Systems, AM360 ultimately improves asset utilization and operational efficiencies.

SMART/PEMS Property and Equipment Management System providescomprehensive asset tracking, reporting and accountability across theentire enterprise. SMART/AMIIX provides a complementary integratedmobile scanning and tracking solution. SMART/ENCATS EnterpriseCataloging provides a common description language across the enterprise.

Accountability. Utilization. Cost Savings. Now That’s SMART!

By PMSC

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CALIBRATION AND LAB MANAGEMENT...

YOUR CUSTOMERS AND END USERS...

YOUR ERP/FINANCIAL SYSTEM...

WEB BASED ACCESS ANYWHERE IN THE WORLD...

THE CLOUD...

PROPERTY MANAGEMENT AND REPORTING...

www.npma.org | 3

Contents

Departments/Reports National Editor’s Message ...................6 National President’s Message .............7 Special Interest Groups .......................4 Advertisers Index ................................4 Directors, Board & AdvisorsBoard of Advisors ...............................6National Executive Board ....................7 National Directors ...............................7

8

20 Debunking the Myths of telecommuting: not every Day is a Holiday by Kim Donor, CPPMFederal Center Chapter

23Asset Management Meets Course Management: Why Golf is More than “Just a Game”by Collin McKinstrie, CPPSFederal Center Chapter

27Goodnight, iPad: What a Children’s Book Can teach Us About Asset Management by Betsy Tucker, CPPAFederal Center Chapter

CoveR stoRYFederal Property Accountability: the Front end of the Property Management Life Cycle by Steven F. Holland, CPPM, NOVA Chapter

entire contents © Copyright 2012 by the national Property management Association, inc. All rights reserved. Reproduction of the contents of The Property Professional in whole or in part by photocopy-ing, 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 (813) 475-6998.

PosTmAsTeR: send change of address notices to membership Coordinator, national office - nPmA, 4025 Tampa Road, suite 1203, oldsmar, Fl 34677. Phone: (813) 475-6998; Fax: (813) 749-0812. The Property Professional subscription is included in the nPmA member’s annual dues. non-member subscription rate is $35/year.

voLUME 24, ISSUE 6

C NNECTto the Real Asset World

ASSET MANAGEMENT 360

Integrated Solutions. One Smart Connection.

Asset Management 360, a true asset management solution, elevates asset management to an entirely new class of enterpriseintegration and visibility. Connecting your physical operations andend users with your ERP/Financial Systems, AM360 ultimately improves asset utilization and operational efficiencies.

SMART/PEMS Property and Equipment Management System providescomprehensive asset tracking, reporting and accountability across theentire enterprise. SMART/AMIIX provides a complementary integratedmobile scanning and tracking solution. SMART/ENCATS EnterpriseCataloging provides a common description language across the enterprise.

Accountability. Utilization. Cost Savings. Now That’s SMART!

By PMSC


CALIBRATION AND LAB MANAGEMENT...

YOUR CUSTOMERS AND END USERS...

YOUR ERP/FINANCIAL SYSTEM...

WEB BASED ACCESS ANYWHERE IN THE WORLD...

THE CLOUD...

PROPERTY MANAGEMENT AND REPORTING...

4 | the Property Professional | Volume 24, Issue 6

ADVERTISER

INDEXAssetSmart ............ Inside Front Cover, 17

GP Consultants ...................................25

Liquidity Services ..................................5

Metalcraft .................... Inside Back Cover

Northern Apex .....................................13

Radley ................................................. 11

Sunflower .............................. Back Cover

Got Questions? Join an NPMA Special Interest Group to Get Answers! The NPMA professional community is drawn from a broad contingent that spans industry, government, and academia. NPMA Special Interest Groups (SIGs) mirror the diverse backgrounds and interests of our members who communicate and network through online SIG forums.

NPMA SIGs provide valuable professional connections to:• Share common interests, • Participate in discussions, • Tap into knowledge and expertise, • Research solutions, and • Learn about or share issues, trends and best practices

Joining is voluntary and free to NPMA members, and you may belong to as many SIGs as you want. Non-members may participate as guests.

To join a Special Interest Group (SIG) and participate in the online forums, visit the NPMA website at http://npma.org/ForumAccess.aspx. There you will also find instructions on how to access the online forums.

To join a SIG or for more information, visit the NPMA website at

http://npma.org/ForumAccess.aspx. You can start right now!

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.

special interest Groups

NPMA Special Interest Groups Contract Property sIG Issues and interests specific to asset management and property professionals in organizations holding government contracts.

Federal Property Management sIG Issues and interests specific to asset management and property professionals in DOD and other federal government agencies and organizations.

excess Property & Disposition sIG Issues and interests specific to asset management and property professionals managing end-of-lifecycle property.

state & Local Government sIG Issues and interests specific to asset management and property professionals in agencies and organizations within state and local governments.

University, Colleges & other non-Profits sIG Issues and interests specific to asset management and property professionals in institutions of higher learning.

Property Inventory Management sIG Issues and interests specific to asset management and property professionals dealing with inventory management.

Joining is voluntary and free to NPMA members, and you may belong to as many Special Interest Groups as you want. Non-members may participate as guests. To join a SIG and participate in the online forums, visit the NPMA website at http://npma.org/ForumAccess.aspx.

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© 2012 Fritz CommunicationsDo not reproduce without written instruction from Fritz Communications

www.npma.org | 5

Transforming the way business sells surplus capital assets

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500 million items sold – annually $558 million in auction sales revenue – annually Access to 1.7 million registered qualified buyersMarket your surplus assets to online buyers - globallyReduce your supply chain costsHelp you accelerate sustainability initiativesProvide transaction security and buyer vettingConsultative review of your surplus business assets

Increasing revenue through channel optimizationLiquidity Services Inc. – Capital Assets Group has category teams with areas of expertise that provide you with specialized support tailored to your needs: Industrial Group, Network International – Energy Group and TruckCenter.com – Transportation Group.

Let us customize a program for you.Call 480-609-3304 or email [email protected].

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© 2012 Fritz CommunicationsDo not reproduce without written instruction from Fritz Communications


NPMA National office4025 Tampa Road, suite 1203, oldsmar, Fl 34677Tel: (813) 475-6998 Fax: (813) 749-0812E-mail: [email protected]

NPMA National office StaffEducation Coordinator: lesley martinE-mail: [email protected]

Education & Events Manager: maria maggio, CmPE-mail: [email protected]

Membership & Certification Manager: Penny ParkerE-mail: [email protected]

PR Communications Manager: Felicia Johnson, APRE-mail: [email protected]

The Property Professional Editorial TeamNational Editor: Chris Thompson, CPPmTel: (202) 344-1842 E-mail: [email protected]

Managing Editor: Billie Jo Perchla, CPPm, CFE-mail: [email protected]

Editor Emeritus: Dr. Douglas Goetz, CPPm, CFE-mail: [email protected]

Central Region Editor: Barbara Bays, CPPmE-mail: [email protected]

Eastern Region Editor: Betsy Tucker, CPPs E-mail: [email protected]

Western Region Editor: Robert Chambers, CPPsE-mail: [email protected]

Production Editor: Felicia Johnson, APRE-mail: [email protected]

Graphic Design: Wendy HummelE-mail: [email protected]

Board of AdvisorsChairperson: ed Winters, CPPm, CFlockheed martin Corporation

Raam vichare, CPPm, CFDimensionR

marsha Campbell, CPPm, CFDeloitte Financial Advisory services

Kathy mcFarland, CPPm, CFHoneywell international

sarah Ball, CPPmDepartment of energy

ivonne Bachar, CPPm, CFstanford university

NPMA Executive BoardNational President: marcia Whitson, CPPm, CF

Tel: 865-947-3047 Email: [email protected]

Executive vice President: Wesley Carter, CPPm, CF Tel: 803-422-7305 Email: [email protected]

Immediate Past President: Carl J. iannacone, CPPs Tel: 757-528-5233 Email: [email protected]

vice President Administration: ivonne Bachar, CPPm, CF Tel: 650-723-9095 Email: [email protected]

vice President Certification: Rosanne (Beth) Green, CPPm, CF


vice President Communications and Marketing: Brian Thompson, CPPm, CF


vice President Finance: Brandon Kriner, CPPm, CF Tel: 202-255-1085 Email: [email protected]

vice President Membership: Jessica Dzara, CPPA Tel: 703-400-3170 Email: [email protected]

vice President Parliamentary Procedures: James Young, CPPm, CF


vice President Professional Development: Patrice Baker, CPPm, CF


vice President Central Region: Gary Quinn, CPPm Tel: 214-648-6060 Email: [email protected]

vice President Eastern Region: Tara miller, CPPm, CF Tel: 321-867-8910 Email: [email protected]

vice President Western Region: Russ Johnson Tel: 206-263-6263 Email: [email protected]

National DirectorsCertification Governing Board Chair: Frank Gonzalez, CPPm

Certification Governing Board Co-Chair: James Begis, CPPm, CFCouncil of Fellows: James Begis, CPPm, CF

Awards Logistics and Administration: loril stephens, CPPm, CFAwards Program and Communications: Kimberly saeger, CPPs

Certification: Cinda Brockman, CPPm, CF Chapter Support – Education: Kathy Baker, CPPA

Chapter Support - Leadership Development: sarah Trinh, CPPm Chapter Support-Leadership Training: Kim Kaehler, CPPs

Historical Archives: nancy Chapman, CPPm, CF Job Awareness: marlene lynn, CPPm, CF

Legislative Affairs: Rick Dillard, CPPm Membership – Administration: Rob Giacomi, CPPm, CF

Membership – Growth: Teri luhmann, CPPm Membership – Retention: Bob mahaney, CPPs

online Courses: Kim Doner, CPPm, CF Seminars: steven Holland, CPPm

Seminars: Wayne norman, CPPm, CF Special Interest Groups: Cheri Cross, CPPm, CF

Standards Development and Utilization: William Franklin, CPPAFoundation Administrator: Richard Wolfe, CPPm

Foundation Assistant Administrator: Cherrie Wolfe, CPPmManaging Editor Property Professional: Billie Perchla, CPPm, CF

National Editor Property Professional: Chris Thompson, CPPm

Merry Christmas and Happy new Year 2013! Welcome to another edition of The Property Professional! It is hard to believe that we are already at the END of 2012!! Lots of activities make time go by quickly! By the time you receive this issue, Christmas will be upon us and New Year’s will be close by! From all of us on the editorial staff to you and yours, we hope you have a Happy and Joyous Holiday Season! I have two topics that I will briefly address in this

editorial. My first topic is writing – It seems we have that same topic for discussion of the same subject that always raises its head within the membership. Underneath the surface of smiling faces in the membership is a given and acknowledged fear of writing. Many reasons can be applied. There is no time for excuses or dancing around the bushes. Bottom line is that the magazine needs and wants authors!! For more information, read my older article on writing and how I got my start in writing of papers and articles. I HATE to sound like begging here, but (I will channel some Doug Goetz, for a moment!) without more authors, it leaves us the least favorite task of figuring how to produce a magazine without adequate article content. We MUST write if we are ever to achieve the true designation as a profession! This is a critical request and one which we cannot continue to ignore. Another topic I will share with you is some of the topics we don’t hear enough about...for example, maintenance of property. The activity of maintenance sits in the center of the property and asset management lifecycle and identifies the health of a piece of equipment. Many times, it also plays a crucial role in funding for new equipment. Sunflower is probably the largest contributor of authors to our magazine and clearly has been keeping our magazine alive. But, we are desperately in need of articles about the technical aspects of property/asset management...such as how that lack of maintenance can have devastating effects during emergency requirements. How about the challenge of considering the technical/fundamental topics in your writings? We have four great articles to share with you in this edition. Kim Donor gives us her opinions on telecommuting in her article, Debunking the Myths of Telecommuting: Not Every Day is a Holiday. Colin McKinstrie describes similarities between golf course management and asset management in his article Asset Management Meets Course Management: Why Golf is More Than “Just a Game”. Betsy Tucker, our Eastern Region Editor, gives us a different viewpoint on Asset Management in her article Goodnight, IPAD: What a Children’s book can teach us about asset management. Finally, Steve Holland gives us his follow-up article Federal Property Accountability: The Front End of the Property Management Life Cycle. Ladies and Gentlemen, I present this edition of The Property Professional!

national editor

Chris Thompson, CPPM

www.npma.org | 7

NPMA Executive BoardNational President: marcia Whitson, CPPm, CF


Executive vice President: Wesley Carter, CPPm, CF Tel: 803-422-7305 Email: [email protected]

Immediate Past President: Carl J. iannacone, CPPs Tel: 757-528-5233 Email: [email protected]

vice President Administration: ivonne Bachar, CPPm, CF Tel: 650-723-9095 Email: [email protected]

vice President Certification: Rosanne (Beth) Green, CPPm, CF


vice President Communications and Marketing: Brian Thompson, CPPm, CF


vice President Finance: Brandon Kriner, CPPm, CF Tel: 202-255-1085 Email: [email protected]

vice President Membership: Jessica Dzara, CPPA Tel: 703-400-3170 Email: [email protected]

vice President Parliamentary Procedures: James Young, CPPm, CF


vice President Professional Development: Patrice Baker, CPPm, CF


vice President Central Region: Gary Quinn, CPPm Tel: 214-648-6060 Email: [email protected]

vice President Eastern Region: Tara miller, CPPm, CF Tel: 321-867-8910 Email: [email protected]

vice President Western Region: Russ Johnson Tel: 206-263-6263 Email: [email protected]

National DirectorsCertification Governing Board Chair: Frank Gonzalez, CPPm

Certification Governing Board Co-Chair: James Begis, CPPm, CFCouncil of Fellows: James Begis, CPPm, CF

Awards Logistics and Administration: loril stephens, CPPm, CFAwards Program and Communications: Kimberly saeger, CPPs

Certification: Cinda Brockman, CPPm, CF Chapter Support – Education: Kathy Baker, CPPA

Chapter Support - Leadership Development: sarah Trinh, CPPm Chapter Support-Leadership Training: Kim Kaehler, CPPs

Historical Archives: nancy Chapman, CPPm, CF Job Awareness: marlene lynn, CPPm, CF

Legislative Affairs: Rick Dillard, CPPm Membership – Administration: Rob Giacomi, CPPm, CF

Membership – Growth: Teri luhmann, CPPm Membership – Retention: Bob mahaney, CPPs

online Courses: Kim Doner, CPPm, CF Seminars: steven Holland, CPPm

Seminars: Wayne norman, CPPm, CF Special Interest Groups: Cheri Cross, CPPm, CF

Standards Development and Utilization: William Franklin, CPPAFoundation Administrator: Richard Wolfe, CPPm

Foundation Assistant Administrator: Cherrie Wolfe, CPPmManaging Editor Property Professional: Billie Perchla, CPPm, CF

National Editor Property Professional: Chris Thompson, CPPm

Membership Is Important Have you ever had the time or taken a moment to reflect what your member-ship in the NPMA can actually do for you? My article this month will focus on the value of your membership and the efforts of our Vice-President of Membership, Jessica Dzara and her team of National Directors. Through the efforts of Kathy Baker, National Director of Chapter Support – Education, every month a professional program is provided by an industry expert to Chapters for use in their Chapter meetings, or in any method that would benefit the members of the Chapter. These valuable presentations provide a great source of information about a variety of timely topics. Don’t miss any of these presentations by visiting the website under Resources>Chapter Presentations. Kathy will also assist your Chapter in finding speakers for events, so if your Chapter is struggling in this area, contact Kathy for assistance. Rob Giacomi, National Director of Membership – Administration is working extensive hours to ensure that our membership data is accurate and up-to-date. He would appreciate if each member would take a few minutes to ensure your profile is current under Member Area>Member Profile. We all want you to receive the valuable information being sent out from the Association; and especially the new digital Property Professional. Kim Kaehler, the National Director of Chapter Support – Leadership Training has organized and hosted several Chapter leadership training webinars that are free for current and aspiring Chapter leaders. Sarah Trinh, National Director of Chapter Support – Leadership Development is committed to creating new tools and programs that will simplify the responsibilities of Chapter leaders. Please keep the feedback coming, she is ready to put your ideas into action. Bob Mahaney as National Director of Membership – Retention is working diligently to ensure members are maximizing their benefits of NPMA membership and desire to continue a long-term relationship and involvement with the NPMA. Bi-monthly Member Orientation webinars are also available at no charge to new and existing members who want to learn more about the value of their NPMA members. Look for these announcements in the weekly Newsflash or contact Jessica Dzara for details. Teri Luhmann, National Director of Membership Growth is further challenged to work toward the growth of membership, to reach the many asset management professionals who have yet to discover the value of being an NPMA Member. If you need help in any of these areas, have questions about the value of NPMA membership or want to roll-up your sleeves and assist any of these National Directors, they would love to hear from you. Simply go on the NPMA website > Members Area >Member Search to find their e-mail and to make contact with them. Whether you are a new member or a longtime member, NPMA is dedicated to member satisfaction. Jessica with her team of National Directors is working very hard to provide many opportunities for every member of the Association.

national President

Marcia Whitson, CPPM, CF


Cover Article

As a Federal Property Manager, have you thought about the federal property accountability requirements from the front-end of the property management life cycle? This is a follow up to my previous article in The Property Professional on Federal Property Accountability: From the Law to the General Ledger. This article covers additional key aspects of federal property accountability. These aspects include acquisition, procurement, delivery, receiving, property identification and classification, records, and accounting. Please continue with me on the

journey through federal property accountability as we explore the front-end of the property management life cycle.

Front-End of the Property Management Life Cycle The front-end of the property management life cycle starts with acquisition and the determination of the need for property. Once the need is determined, planning is necessary to ensure all aspects of the acquisition are addressed so the property can be procured. When the property is received, accountability starts and the

property management life cycle begins. So let’s take the next step along the journey and explore the acquisition process.

Acquisition Acquisition is the process of acquiring quality products to satisfy user needs with measurable improvements to mission capability and operational support in a timely manner and at a fair and reasonable price. An acquisition strategy is developed in the form of a roadmap that enables personnel to follow from program initiation through

FEDERAL PROPERTY ACCOUNTABILITY: THE FRONT END OF THE PROPERTY MANAGEMENT LIFE CYCLE

by Steven F. Holland, CPPMNOVA Chapter

Federal Property Accountability:

The Front End of the Property Management Life Cycle

by Steven F. Holland, CPPMNovA Chapter

www.npma.org | 9

post-production support. The strategy goals include minimizing time and cost of satisfying an identified need; linking program decisions to demonstrated accomplishments in develop-ment, system acquisition, initial production, testing and ultimately life cycle support; as well as tailoring the strategy to meet the specific needs of each individual program.

Acquisition Planning Acquisition planning is the process where the efforts of all personnel responsible for an acquisition are coordinated and integrated into a comprehensive plan that fulfills the agency’s needs in a timely manner at a fair and reasonable price. Acquisition planning begins as soon as the agency need is identified. The acquisition plan is a document that provides the overall strategy for accomplishing and managing an acquisition. It formally documents the approach in filling the need, optimizing resources, and satisfying the policy requirements for the acquisition. The acquisition plan should allow program management flexibility, but be specific enough to give approving officials sufficient technical and business related information to base their decisions. The acquisition plan should also provide sufficient information for someone not familiar with the program to understand what is being proposed. The acquisition plan needs to contain specific content covering the following two (2) key elements (ref: FAR 7.105(a)):

Acquisition Background and Objectives The acquisition background and objectives provides the rationale and justification for the proposed acquisition. The elements involved are the statement of need, applicable conditions, costs, capability, performance, delivery, or performance period requirements, trade-off risks, and acquisition streamlining.

Plan of Action A plan of action includes detailed information within multiple elements. The plan’s elements include sources, competition, source-selection procedures, acquisition considerations, budgeting and funding, product or

service descriptions, priorities, allocations and allotments, contractor versus government performance, inherently govern-mental functions, management information requirements, make or buy, test and evaluation, logistics considerations, government-furnished property (GFP), government-furnished information, environmental and energy conservation objectives, security considerations, contract administration, federal laws, acquisition milestones, and the identification of participants in preparing the acquisition plan. After the plan is finalized, the acquisition proceeds through the acquisition cycle.

Figure 1. Acquisition Cycle


Acquisition Cycle The acquisition cycle includes thirteen milestones that must be met in order to achieve contract award. Figure 1 depicts each milestone this cycle. The key aspect of the acquisition cycle is receiving agency approval of the Acquisition Plan! Without approval of the plan (Milestone “MS” 1), the acquisition cannot proceed into Procurement. When approval is received, the Statement of Work (MS 2) is developed that includes several aspects like: Purpose, Scope of Work, Location of Work, Period of Performance, Deliverables Schedule, Applicable Standards, Acceptance Criteria, Special Requirements, Contract Type, Payment Schedule and Miscellaneous items. The purpose of the acquisition or project defines why the acquisition of a product or service is needed. The scope of work identifies in detail the work that must be completed, and the hardware and software involved. The location of work is where the work will be performed. The period of performance identifies when the work will be started and completed and can include a detailed project schedule. A schedule of deliverables what product (e.g., hardware, software, documentation etc.) is to be delivered to the Government, when and in what format. Standards are also identified in the SOW so the Contractor can ensure compliance. Objective acceptance criteria is defined so that both the Contractor and the Government can confirm if the

product or work is acceptable. The type of contract is stipulated based on the requirements identified in the SOW and the risk to both parties. Depending on the contract type, a payment schedule “progress payments” may be a provision in order for the Government to pay the Contractor as work progresses. There are also miscellaneous or administrative items that arise that may be minor, and cannot be forgotten. One example is Government access to the Contractor’s facility. This cannot be overlooked, especially if the Contractor is acquiring property to manufacture a product, or is provided a significant volume of GFP. Next, specifications (MS 3) are developed that define the requirements the product or service must include. Data requirements (MS 4) include technical reports, status reports, amongst other data or documentation requirements. These data requirements are normally called Contract Data Requirements List (CDRL) line items and are a provision of a contract. When all this documentation is in place, it comprises the acquisition package (MS 5). The requesting organization prepares a purchase requisition (MS 6) to initiate the requirement to procure the product or service. The requestor provides justificat-ion and obtains approval for procurements for other than full and open competition (MS 7). The Contract Specialist issues a synopsis of the procurement (MS 8) and the Contracting

Officer issues a solicitation (MS 9) in the form of a Request for Proposal (RFP). The Contractor prepares their proposal in accordance with the specific instructions listed in the RFP and submits it before the date and time it is due. The Contracting Officer and designated staff evaluate the proposal (MS 10). After the evaluation is completed, negotiations begin (MS11). The negotiation process can be short or it can take several days. After negotiations are complete, the contract is prepared and reviewed by the Contract Specialist, and cleared by the Contracting Officer (MS 12). When the first 12 milestones are complete, the Contracting Officer makes the contract award (MS 13) to the successful offeror (e.g., Contractor)! The product or service is provided by the Contractor in accordance with the terms of the contract.

Procurement Agency Acquisition Regulations Agency Acquisition Regula-tions are regulations whereby an Agency Head may issue to imple-ment or supplement the Federal Acquisition Regulation (FAR). This can include agency policies and procedures, contract clauses, solicitation provisions, and forms governing the agency’s’ contract-ing process or control the relationship between the agency and its prospective contractors. Agency Acquisition Regulations are published in the Federal Reg-ister as required by law. They are also codified with an assigned

www.npma.org | 11


chapter number in Title 48, Code of Federal Regulations. An agen-cy’s regulation that implements a specific part, subpart, section, or subsection of the FAR must be numbered and titled to correspond to the specific citation in the FAR. Agencies must not repeat, paraphrase, or restate material or include language that conflicts with the FAR. Agen-cies must comply with the FAR, except as required by law or provided by an authorized devia-tion (FAR Subpart 1.4, Deviations from the FAR). Agency Acquisi-tion Regulations are assigned un-der Title 48 as listed in Table 1. Agency Acquisition Manual Agency Acquisition Manu-als establish uniform internal operating acquisition procedures that implement or supplement the Federal Acquisition Regula-tion and that Agency’ Acquisition

Regulation, and other statutory requirements. Each agency’ manual confirms to the number-ing system prescribed by FAR Part 1.105. Some Agency Acquisition Manuals are divided into sub-chapters: A) General; B) Competi-tion and Acquisition Planning; C) Contracting Methods and Contract Types; D) Socioeco- nomic Programs; E) General Contracting Requirements; F) Special Categories of Contracting; G) Contract Management; H) Clauses and Forms; and I) Special Contracting Programs. Long established agencies have developed their manuals to con-form to the outline of the FAR. Delivery The delivery is the point in which the vendor’s carrier physi-cally delivers the property to your receiving facility. Upon delivery, the carrier must obtain the receiv-

ing person’s signature on behalf of the organization. Deliveries can be made in complete and partial shipments. A shipment is complete when all products are delivered by the vendor’s carrier to the customer. A partial ship-ment is when only a portion of products are delivered. Partial shipments are made because one or more products are not ready for shipment by the vendor or are back-ordered. After a delivery of property is received it goes through an inspection process. Receiving Receiving is the process of ac-cepting equipment, materials, or supplies in to an organization or facility where the organization’s obligation, liability and account-ability begin. This process starts when the contractor or vendor’s delivery is received at the receiv-ing facility and documentation

Table 1. Agency Acquisition Regulations by Agency that supplement the FAR

www.npma.org | 13

is created to establish physi-cal custody and accountability. Documentation can include a vendor’s packing list or invoice, carrier’s freight bill, or commer-cial or government bills of lading or a DD Form 1149, Requisition and Invoice/Shipping Document. The receiving organization cre-ates a receiving report to coin-cide with the vendor’s packing list or shipping document. This documentation provides multiple organizations such as procure-ment, accounts payable, property management, supply chain man-agement and transportation with information that property has been received. Accountability is established upon proof of receipt and a receiving record is cre-ated. Receiving documentation is valuable, because you demon-strate proof of receipt when you actually received the property into your organization’s custody. Proof of receipt is critical for capitalized and donated property, because the receipt date affects your organization’s general led-ger and property tax reports. There are four critical steps in the receiving process are delivery, inspection and identification, documentation and internal routing and distribution: These steps are discussed more in detail below: Inspection The inspection process consists of four stages: 1) check-ing for any visual damage at delivery; 2) checking for any concealed or internal packaging-related damage, 3) Any higher-level inspection requirements for acceptance; and 4) affixing a

property identification tag that identifies ownership of the property. Usually, Quality Assurance personnel perform the higher-level inspections especially when performance specifications must be verified before acceptance is official. If equipment is received and it fails acceptance testing, it must be returned to the vendor under the terms of the manufacturer’s warranty.

Documentation Complete documentation is essential in supporting the re-ceiving process. When property is received, quantities, model and/or part number and serial numbers are matched against the vendor’s shipping documentation or invoice. This matching process is called reconciliation, making sure what property was shipped against what property was received. Receiving reports are prepared after the reconciliation that clearly indicate the quantity and condition of the property

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at the time of receipt, as well as any discrepancies (e.g. overages, shortages, incorrect items, damaged items or misdirected shipments) noted during the receiving inspection process. Confirmation of Receipt to Procurement and Finance Receiving reports and vendor/carrier documentation are coupled and distributed to the Procurement, Accounts Payable, Property Management, and Inventory Control organizations so the vendor can be paid and internal records can be estab-lished. After the documentation is distributed, the property is routed internally and distributed to the requesting organization for use.

Internal Routing and Distribution After property is received, inspected and accepted, it is routed and distributed internally to the requesting organization for use or placed in storage pending distribution. The internal routing and distribution process is normally quick, less than 24 hours, because the using organization is anxiously awaiting its arrival. Internal delivery documentation is generated by the Receiving organization to document the transfer of physical custody to the using organization. When the property is delivered to the using organization, the recipient must acknowledge acceptance by signing and dating the delivery documentation.

Property Identification and Classification Property Management uses receiving reports and vendor documentation as source documentation to establish property records and the start of life cycle for tagged accountable property in the Property Management System.

Records It is essential that property records be established in an Agency’s Property Management System promptly upon receipt and identification of the property. This is the first step that establishes accountability of the asset and ties it to the Agency’s general ledger. Table 2 lists sample data elements that a federal property record may include. All general Property, Plant and Equipment (PP&E) must be recorded at acquisition cost. The acquisition cost shall include all costs incurred to bring the PPE to a form and location that is suitable for its intended use. The acquisition cost in acquiring PP&E includes, but is not limited to the following cost elements:• Acquisition cost paid to the

supplier;• Transportation charges;• Handling and storage costs;• Labor and direct or indirect

production costs for assets manufactured or constructed; and

• Installation costs.

Table 2. sample Federal Property Record Data elements

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Acquisition costs support the accounting process where official property and financial records are established and maintained.

Accounting Accounting involves the bookkeeping methods in recording and maintaining the property and financial transactions within a business in order to support an agency’s financial statements. The Chief Financial Officer (CFO) for each agency is responsible for the financial accountability for all PP&E and must sign a Statement of Assurance ensuring the accuracy of the financial records and the agency has a clean audit opinion. These requirements are

driven by the CFO Act of 1990. Agency financial accounta-bility for PP&E includes the accounting treatment of establishing capitalization thresholds for all types of PP&E on record within the agency. This brings us to the topic of capitalization as we progress on our journey.

Capitalization Capitalization thresholds for PP&E are established by federal agencies rather than by the Federal Accounting Standards Advisory Board (FASAB). The reason for this is that federal agencies are diverse in size and volume and have a wide range of acquisition costs. Agencies

must consider their financial and operational conditions and the assets life expectancy in establishing an appropriate capitalization threshold. The life expectancy or useful life of an asset is defined by the estimated number of years the asset is expected to be useful. The life of an asset is affected by factors like physical wear and tear and obsolescence. Agency established capitalization thresholds must be consistently applied across all agency organizations. Capitalization thresholds are established for the following types of, but not limited to, personal property. Table 3 identifies sample personal property capitalization thresholds. Once capitalization thresholds for personal property are developed they set the bar for when capitalized property is depreciated. Depreciation PP&E is depreciated over its useful life using the straight-line method with no salvage value. Any improvement made to a capitalized asset, the cost of a single improvement must be at least $50,000.00. An improvement that extends the useful life of the original asset, or significantly enhances, improves capacity or mission capability of the asset must be capitalized and depreciated according to the useful life of the improvement. The cost of the improvement is added to the Net Book Value (NBV) of the original asset and is depreciated over the adjusted estimated remaining

Table 3. sample Personal Property Capitalization Thresholds


useful life of the asset. The Statement of Federal Financial Accounting Standards (SFFAS) prescribes policy that governs the accountability and financial reporting of personal property for a federal agency.

Statement of Federal Financial Accounting Standard

#6 - Property, Plant and Equipment (PP&E) PP&E is defined as tangible assets that have an estimated useful life of two years or more, are not intended for sale in the ordinary course of agency operations, and have been acquired or constructed with the intention of being used, or being available for use by the agency. PP&E includes internally use software as well as property acquired under a capital lease. PP&E excludes consumable and expendable items such as operating materials and supplies. The Federal Government’s investment in PP&E exceeds $852 billion dollars1 and it is used for varied purposes and missions. Table 4 lists the multiple

categories of PP&E defined by this standard.1 GAO, “Financial Statements of the United States Government for the Years Ended September 30, 2011, and 2010”, p45, http://www.gao.gov/financial/fy2011/11stmt.pdf The Statement of Federal Financial Accounting Concepts No.1, defines four reporting objectives for PP&E: 1) Budgetary Integrity; 2) Operating Performance; 3) Stewardship; and 4) Systems and Control. Within these reporting objectives, the Property Manage-ment organization plays a role in stewardship. It reports infor-mation on asset condition of PP&E, changes in quantity or service, cost of PP&E, and acquisi-tion of capitalized PP&E versus acquisition of non-capital PP&E. The systems and controls within federal financial account concepts lead to controls and classification of funds. Funds are uniformly classified through a codification process using Object Classes and Sub-Object Classes in described in OMB Circular A-11.

Object Classes OMB Circular A-11 defines object class codes are uniform classifications that identify financial transactions and obligations of the Federal Government by the nature of the goods or services purchased (e.g. supplies, goods, materials or equipment) without regard to the agency involved or the purpose of the programs for which they are used. There are five major object classes within the classification system: • 10 Personnel compensation and benefits; • 20 Contractual services and supplies; • 30 Acquisition of assets; • 40 Grants and fixed charges; and • 90 Other. Object classes define obligations according to their initial purpose. Obligations are recorded when the Federal Government places an order for a supply (asset) or service by awarding a contract. Object

Table 4. PP&e Categories

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class information must be reported because 31 U.S.C. 1104(b) requires the President’s Budget to present obligations by object class for each account. An object class is one of four types of classification systems within the Federal Government. The remaining three types of classification systems include Program Activity, Functional Class, and Character Class. Object classifications can be found in Section 83 – Object Classification (MAX Schedule O) within OMB Circular A-11. The key major object class that federal property managers need to be concerned with is object class 30, Acquisition of Assets. The following three object class categories that further define assets and they are: • 31.0 Equipment • 32.0 Land and structures • 33.0 Investments and loans

Within this series, as Property Managers we need to concern ourselves with object class 31 – Equipment, because equipment purchased is one element of PP&E. Agencies can further define procurements of equipment by using sub-object class codes. Sub-Object Classes Sub-object class codes are defined by each agency in accordance with the object class categories defined by OMB Circular A-11, Section 83. Agencies define sub-object class codes for accounting purposes. Sub-object class codes are essential to the agency’s central accounting system and they must be entered for every financial transaction. Sub-object class codes are defined with two additional digits. These digits further identify specific groups of objects that are derived from the types of property an agency

procures. Table 5 identifies sample sub-object class codes and their code descriptions. Object and sub-object classes are defined in the agency’s Accounting Classification Code Structure (ACCS) in Figure 2. The ACCS is tied into the agency’s financial system (e.g. Federal Financial Management System (FFMS)) and U.S. Standard General Ledger. Property-related object class and sub-object class codes contained in the ACCS directly relate to the agencies’ standard general ledger through the financial management and accounting process. It is extremely important for Federal Property Managers to work closely with their Federal Financial Managers to ensure that both Property and Financial records exist, and are complete and accurate. When

Table 5. sample sub-object Class Codes and Descriptions

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both Property Management and Financial Management professionals work together, it makes a great team. The team ultimately ensures the CFO that the financial statement and general ledger are accurate and can achieve a clean audit opinion. Conclusion In closing, there are many aspects involved in federal property accountability. The determination of the need for property initiates the acquisition planning and procurement processes. Agencies can develop supplemental regulations to the FAR as long as they do not repeat, paraphrase, or restate material or include language that conflicts with the FAR. When products or services are purchased by an Agency, they must be received, inspected, identified to Agency ownership (e.g. property tagged), recorded in an Asset Management system of record and categorized based on the type and unit acquisition cost of property

procured. All property exceeding an Agency capitalization thres-hold is categorized as “capitalized PP&E” and is depreciated when placed into service. All PP&E is accounted for in accordance with SFFAS #6 in the Asset Management system with capitalized PP&E also being recorded in the Agency Financial System. Capitalized PP&E is recorded in the Agency Financial System under its applicable U.S. Standard General Ledger account. The existence and completeness of Agency property records directly relate to the accuracy of the Agency’s financial records. Both Property and Financial Management professionals must work together as a team to ensure the Agency achieves a clean audit opinion relative to Property and Financial Management and the Agency’s financial statement is accurate every fiscal year. When we recognize the front-end aspects of the property management life cycle, we can foster and improve federal property accountability.

Thank you for joining me on this journey. This article is written in memory of Andrew C. “The Oyster” Anderson. Andy was a dear friend, second Dad, an educator, mentor, patriot and a true gentleman. God bless you, Andy. n BIoGRAPHySteven Holland a member of the Booz Allen Hamilton staff in mclean, virginia. He has 33 years of experience in Asset and logistics management as a contractor employee and consultant. steve has supported several federal logistics and asset management projects for the Department of Homeland security, environmental Protection Agency, and the intelligence Community. His subject matter expertise and implementation of industry leading best practices have led to results that endure. steve’s education includes a Bachelor of Business Administration with concentration in Acquisition and Contract management with honors from strayer university, and holds nPmA CPPs, CPPA, and CPPm certifications. He has been a member of nPmA since 1988 and is a member of the novA Chapter. He also serves as Co-Director of the nPmA Conference series Planning Committee.

Figure 2. Accounting Classification Code structure


Feature

Anyone who works in or near a metropolitan area has undoubtedly had to deal with the daily grind of commuting and traffic woes. Imagine how much more time you’d have if you didn’t have to sit in traffic or wait for public transportation to take you to and from the office? It turns out that while professionals all over the country have been battling commutes for years, the concept of “telework” has just recently begun to gain support in both the public and private arenas. People can be more productive during time that would otherwise be spent commuting, and as an added

bonus, telecommuters are contributing to environmental preservation which is a large reason the practice has garnered support among organizations nationwide. However, I find that there are many misconceptions around telecommuting and what it requires. I have been telecommuting for the past ten years and I am often asked how I can possibly be as productive working from home as I am when working in a conventional office setting. There is no one answer to this question. While it is important to have a dedicated space with the necessary IT equipment; phone, fax,

computer, printer, scanner, etc., I find successful telecommuting requires much more, namely discipline, the ability to manage tasks and expectations, and most importantly – communication. Working from home is an adjustment. I know to most it sounds wonderful. I can work in my pajamas, I don’t have to drive to and from the office, fight traffic, pay for dry cleaning, or buy special work clothes. The list of “pros” goes on and on. However, as the title of this article suggests, not every day is a holiday simply because my home doubles as my office. There are some

by Kim Donor, CPPMFederal Center Chapter

Debunking the Myths of Telecommuting: Not Every Day is a Holiday

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downsides to telecommuting as well. There is often a feeling of being disconnected and a lack of socialization. Telecommuters tend to work on days when they would not normally go in to the office due to illness, weather, or overtime, and they begin to dread talking on the phone since they log so much phone time during “working” hours. Based on my own personal experience and confirmation from others who telecommute, I think that there is an adjustment period where you learn to work independently and to manage your time, decidedly the two factors that contribute most to a telecommuter’s success. I often find myself checking email after business hours and working into the night when I get on a roll with a project. The negative side of working during “off” hours is that you often must wait on others to take actions or reply to requests which can slow progress. This can be frustrating. I have also had to learn important communication skills that I probably would not otherwise have as a result of being a telecommuter. It is sometimes not adequate to communicate only via email and phone calls. In addition to basic office skills, I frequently use instant messaging and web meetings. Many of my fellow telecommuters also use Skype

or other video programs. I have resisted these “video” methods because I do not want to be on camera (as I mentioned earlier, I often work in my pajamas!) Luckily, my employer has not made this a requirement. As a telecommuter, it is important to feel confident about operating the technology that will allow you to communicate as successfully as possible. And as mentioned earlier, effective methods of communication are the most important tools for a successful telecommuter. There is an inherent danger of emails and instant messages being misinterpreted by a recipient who doesn’t have the benefit of hearing voice inflections and tone. Communication starts becoming less transparent even when talking over the phone, especially on multi-party teleconferences. You can miss the nuances of body language, gestures and whispered asides. Sometimes you wind up talking over others or not talking at all if you are not asked to speak. You must be professional at all times because you have no way of knowing who is on the other end of the phone line. In addition to considerations around effective communication, the cultural, managerial, and interpersonal implications of telecommuting merit considera-

tion. Not all employees will be successful at telecommuting. From a cultural perspective, the telecommuter must be a self starter that understands what is expected of him or her. A telecommuter must work well independently, be able to manage his or her time and effectively, and effectively communicate with managers, coworkers, and clients. Telecommuters must be prepared to be “out of the loop,” especially when it comes to social activities and office politics. Some telecommuters who won’t adapt well to the less social environment can become less productive. There are certain personality types that will not thrive outside the social office environment. The brainstorming, inventiveness, and energy that drive innovation can diminish when people are not interacting with others on a regular basis. Because of the lack of physical interaction, there is a general assumption around telecommuting that somehow, home is going to be a friendlier, easier, quieter place to work than the office. That is not always the case. There are both distractions and expectations that exist at home that don’t exist in the workplace. I cannot count the number of times I have heard, “But surely you have time to volunteer, you work from


home, it is not like you have a real job.” Telecommuters have to be prepared to face these misconceptions. Managers can also have a direct impact on the success or failure of a telecommuting program. I am fortunate that my manager and my client trust me to produce the quality products, a result of their understanding coupled with my hard work and consistent results. They do not have to constantly check on me to see if I am sitting at my desk typing away at my keyboard! However, I know other telecommuters who are not quite so fortunate. Some managers are concerned that employees are not working if they can’t validate that by seeing them. For any telecommuting initiative to be productive, managers must learn to trust employees and to find other tangible ways to measure productivity. They can best do this by clearly setting objectives and deadlines, assigning well-defined tasks, and setting standards to measure productivity. Performance measures must be clear and measurable. Managers also need to establish communication expectations with their telecommuters. Weekly or monthly status reports identifying progress toward milestones and completed tasks are always a good idea. However, like workers in an office, telecommuters should not be expected to account for every minute of every day. Most importantly, I would suggest that mangers be clear in their expectations. Here are questions that managers and telecommuters

should discuss before telecom-muting begins: 1. Do you have a quiet place to work? 2. Do you have the appropriate computer equipment at home to successfully telecommute? If not, will the company provide it to you? 3. Do you have the necessary office supplies at home including a speaker phone, copier, scanner, and fax? 4. Who will provide the required software? Do you have the appropriate security software? 5. Who will pay for office supplies? 6. Will there be any reimburse- ment for phone, electricity, or other home office expenses? 7. Do you have high speed internet service? 8. Will you have a dedicated phone line for work? 9. How reliable are your internet service and phone providers? 10. Can you work with minimal supervision? 11. How well do you multi-task? 12. Are you good at prioritizing tasks? 13. Are you confident in your work products or do you feel that they need to have others review them before present- ing them to a manager or client? 14. Do you always meet deadlines? 15. How do you handle distractions? 16. What do you expect to be your biggest challenge in telecommuting?

Getting answers to these questions at the outset ensures that management, clients, and

employees set clear expectations which will result in a successful telecommuting partnership. In summary, telecommuting is not for everyone. It’s not for those who thrive on daily human interaction and wither without it. It’s not for those who are in positions that necessitate frequent in-person meetings and collaboration. And it’s certainly not for people who are easily distracted and can’t manage their time effectively, knowing when to “turn it on” and equally as important, “turn it off.” However, the benefits of telecommuting made me consider it years ago, and ten years later, I still feel it was the right decision for me. My car is one less car on the road, I’ve been able to regain several hours of my day, and my productivity has not decreased, in fact, much the opposite. Consider these things if you have the opportunity to switch to the telecommuting lifestyle. Like anything, it has its pros and cons, and a measure of the benefits based on your individual personality and needs will be the determining factor. n

BIoGRAPHy Kim Doner, CPPM, is employed by sRA international as contractor support to the Federal Aviation Administration (FAA). Kim is responsible for interpreting policy as it pertains to excess and surplus personal property and drafting process and procedure guides for FAA property personnel. she worked as a federal employee for nineteen years including nine years at the us Army logistics management College as an instructor in property accountability and disposal. Kim is currently the membership secretary of the AsTm Committee e53 on Property and Asset management standards and a member of the us TAG to PC251.

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Feature Article

It’s Sunday, September 22, 2013 at the Tour Championship in Atlanta, Georgia. The young golf phenom Rory McIlroy currently holds a 5-stroke lead over the competition and looks to be unstoppable. With a victory, he will be guaranteed the FedEx Cup and the $10 million winner’s purse. During his warm-up on the practice green, he is debating whether to use the new Titleist Vokey wedge provided by his corporate sponsor or “old trusty” (his old, trusty wedge). After making the decision to go with the new wedge and finishing his warm-up, he leaves his clubs with his caddy and mentally prepares for one of the most important rounds of his life. The crowd roars as he approaches the tee, he acknowledges with a wave of the cap and a smile. The crowd now silent, Rory sets-up and delivers a

310-yard drive down the middle of the fairway on what looks to be one of the most lucrative days of his life. Playing solid golf, he is even through two holes and holding off the competition. While he waits at the third hole for the group in front to clear the fairway, he is terrified when he realizes that “old trusty” was never removed from his bag thus putting him over the official club limit. USGA Rule 4-4 states that a player must not exceed 14 clubs and will incur a 2-stroke penalty for each hole played with additional clubs in his or her bag. Rory is crushed by the penalties even though he still holds a one-stroke lead. With the confidence in himself and his caddy in question, he goes on to suffer a crushing defeat that could have easily been avoided through proper management.

Golf is a game of inches that requires meticulous attention to detail at every turn, and it is governed by rules that demand absolute compliance. In the world of professional golf, a quarter inch to the left or right of the cup, or as we saw in the scenario above, a minor rules infraction, could mean the gain or loss of hundreds of thousands of dollars. But behind every PGA Professional and Tour Champion is an unsung hero, otherwise known as the caddy. A professional caddy is responsible for maintaining and accounting for a player’s equipment including clubs, towels, balls, tees, rain gear, etc. They are asset managers for a one-man operation. A caddy’s main objective is to provide their player with the tools and guidance to accomplish their

Asset Management Meets Course Management:

Why Golf is More than “Just a Game”by Collin McKinstrie, CPPS, Federal Center Chapter


mission: to win. Professional golfers rely heavily on their caddies to know precise yardages, potential hazards, green speed and slope, as well as any other factors that will have an influence on the outcome of their score and ultimately their edge over the competition. At the end of the day, a large part of a golf caddy’s charge is to be an asset manager. Let’s take a look at how some basic aspects of asset management are exemplified by this close companion of the professional golfer, the caddy.

“The Right Thing, in the Right Place, at the Right Time” Maintaining accurate asset records is one of the funda-mentals of asset management. An asset management system can only be as good as the data it contains. Asset records are like moving organisms that require attention to the acute details and constant upkeep in order to reflect clean and accurate data. Core asset information such as manufacturer, model, and serial number may allow asset managers to identify an asset, but it is the ownership information such as managers, custodians, users, and locations that enables asset managers to track down an individual asset at any time. An asset manager must account for the meticulous details -- in golf, the amount of break in a putt, in conventional asset management, the asset’s serial number -- to ensure the accuracy of the record. Attention to detail is not only necessary, but critical in both golf and asset management. If a professional golfer finds himself

in a deep sand-trap with only a few yards of green to work with, he needs one particular asset, specifically his 60-degree wedge, but what if his caddy errantly left it in the clubhouse? Instead of having the extra loft the player needs to control the distance and spin, he is stuck using a 56-degree wedge (the wrong tool for the job), thus creating a longer putt and consequently costing the player a stroke. The consequences for an asset manager can be far more severe. What if an employee of an organization suffers a heart attack on the job? Immediately, an AED (Automated External Defibrillator) must not only be located, but it must be properly functioning in order to revive the victim. For a caddy, the wrong tool could cost their pro a stroke and their job; but for an asset manager, it could cost a life.

Maintenance In the world of asset management, ensuring that assets are properly maintained and stored is of the utmost importance. Consider what might happen to a vehicle that never had preventative maintenance like an oil change or tire rotation? Or to a spectrometer that wasn’t calibrated at regular intervals? Many assets, especially valuable or sensitive ones, require periodic maintenance to function efficiently, and golf clubs are a perfect example. There are essentially three parts to a golf club: the shaft, the club head, and the grip. The club shaft will usually last a lifetime, but grips tend to only last 40-rounds or roughly a year, since the exterior of the grip will wear and eventually cause a player’s grip

to slip. The club head on the other hand is carefully milled with grooves that act as the main mechanism for creating spin when striking a golf ball. If not properly cleaned and maintained, dirt build-up can eventually harden, eliminating an important competitive advantage that professional golfers require to succeed. Using the example of the AED, if the battery was not properly tested and replaced after its useful life, an asset manager runs the risk of not being prepared when a dire situation presents itself. Types of maintenance and timing will vary based on the particular asset, but it is important to capture pertinent maintenance information on asset records to ensure that they are properly maintained and to avoid potential catastrophes.

Storage Along with maintenance, proper storage (and storage con-ditions) is a fundamental aspect of asset management, whether assets are idle or in use. For in-stance, in order to operate ef-ficiently and without downtime, servers must be kept in designat-ed rooms where a certain temper-ature and humidity level must be maintained. Many of these rooms are even equipped with sensors so that people can be alerted to a change in these conditions that might affect the machine’s performance or “up” time. Sensi-tive assets, especially those con-taining Personally Identifiable Information (PII) such as laptop computers or personnel files must be stored properly to ensure that data is safeguarded while the assets are not in use. Similarly,

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along with maintenance, storage of golf equipment may be the most important aspect of a caddy’s job. Since their salaries directly correlate with their play-ers’ performance, they are heavily invested in the tools that enable them to earn a living. Storage is a major consideration when prop-erly maintaining golf equipment to keep it performing at an optimal level. Let’s take a look at two factors that can impact golf club performance, tempera-ture and humidity, to illustrate this point. Since the club heads are attached to the shaft using a compound forming epoxy glue, increased temperature (like that of a trunk of a car) can cause the compound to breakdown,

thereby allowing the club head to become loose. Even the slightest movement at impact can cause increased deviation in a precision sport like golf. Humidity, on the other hand, will affect the grip of the golf club. The club grip is attached to the shaft using double-sided grip tape and an adhesive solvent that when combined must set overnight to allow the water to evaporate and create a secure bond. Introducing water particles back to the bond through humidity (like that of a garage) can cause the grip to slip during a player’s swing, which could significantly affect how a player strikes the ball. Like all assets, the potential risks and hazards of the external environ-

ment must be factored into the proper storage selection of golf equipment. Improper steward-ship can have a large impact on a player’s performance, and ultimately, winnings. “Fore”Thought Asset managers must continu-ally assess their inventories in order to properly forecast future needs to meet organizational goals; being proactive rather than reactive makes for a more prepared asset manager. Under-standing the useful lives of assets and when replenishment is nec-essary can put a property profes-sional at a distinct advantage when preparing for future needs and demands. In order to be an effective asset manager, the


proper tools and materials need to be readily available to service/repair assets in order to mitigate the risk of downtime and poten-tially putting a project behind schedule. Tracking peripheral ma-terials and tools becomes equally important as tracking the core asset in the case of the golf club as well. It is not only about hav-ing the main asset components (shaft, club head, grip), but it is also about having the materials (grip tape, solution, epoxy glue) and tools (vice, straight-edge-blade, blow-torch) necessary to provide complete maintenance. In the event that a player’s shaft breaks three days into one of golf’s four “Major” tournaments; a professional caddy must have the necessary components, materials, and tools to restore the asset to optimal condition. Asset managers also need to be aware of internal and external environ-mental risks to help them plan for the unknown. Similarly, a golf caddy must account for external risks such as bunkers, hazards, and OB (out of bounds) and internal risks such as a player’s confidence, thought process, and aversion to risk when assessing the next stroke. Rules and Regulations Just as asset managers must be proficient in the ever evolving rules and regulations that govern asset management, so must golf caddies be knowledgeable about the rules and regulations associated with their profession. Asset Managers may depend on the FAR to guide our policies and procedures, while caddies depend on the USGA Rules of Golf for this guidance. Much like getting “dinged” for an audit finding,

a player incurs penalty strokes or disqualification based on the severity of any infraction of these rules, as we saw in the scenario outlined in the introduction to this article (which, while hypothetical, has occurred on many occasions in the past). In a sport where a majority of victories are decided by one-stroke, an error in judgment or misinterpretation a rule can be extremely costly. Caddies must be acutely aware of any new rule or regulation that will have an impact on their player in order to make on-the-spot decisions and ensure compliance, just as asset managers must keep current on the ever-changing environment in which they operate.

Winning After all, what is a game all about? It’s ultimately about winning. In both worlds, there are objectives and milestones that must be met in order to achieve the ultimate goal. An asset manager’s job could be as simple as being the custodian responsible for 50 assets, or as complex as overseeing an asset management system with millions of assets. No matter what end of this spectrum an asset manager is on, his or her objective should remain the same as the golf caddy: to win. The definitions of winning in golf and asset management, while different, have a striking similarity. For an asset manager, to “win” may mean positively affecting an organization’s bottom line by properly equipping it with the tools to meet its mission most efficiently and effectively. To the golf caddy, to “win” may mean

positively affecting his player’s bottom line by leading him to a championship. As we have seen, to win requires much planning and consideration of a number of factors, only a few of which I have discussed in this article. Both the asset manager and the golf caddy must be vigilant in maintaining all of the aspects of their job to put them in the best position to win. In golf, Rule number 13 of the USGA Rules of Golf states “Play it as it lies.” This simply means that the ball must be played without improvement to the spot in which it lands. The “lie” becomes a variable that cannot be changed. The “lie” can represent a snap-shot of an organization at a point-in-time. Like an organization, a player and caddy must determine a plan of attack using the variables that can be controlled: club selection, stance, and stroke. The club selection represents the proper tool(s), or the overall asset management system. The stance represents the proper setup and plan of action, or the organizational policies and procedures. The stroke represents the execution of both the club and stance working in agreement to propel the ball towards the target, or the execution of the day to day tasks. If these factors are optimized and executed with minimal flaws, the player and the asset manager win, every time. n BIoGRAPHyCollin McKinstrie, CPPS is a Consultant with sunflower systems located in Arlington, virginia. Collin has over two years of consulting experience working with the federal government. His focus are as are RFiD technology and general systems support. Collin is a member of the nPmA Federal Center Chapter.

www.npma.org | 27

Feature Article

Goodnight, iPad: What A Children’s Book Can Teach Us About Asset Management

by Betsy Tucker, CPPAFederal Center Chapter


While wandering through a book store a few months back, my eyes were drawn to a shelf showcasing a classic children’s book that most of us all recognize by illustrations alone, without even reading the title. But a smile came across my face and a spontaneous chuckle escaped from my mouth when I unexpectedly read the words “Good Night, iPad”. I immediately purchased a copy of this amusing parody on the children’s classic “Good Night, Moon”, penned by the author known as “Ann Droyd.” Never more than at that moment was I reminded that we live in an age when even infants are embracing technology-so much so that they are just as comfortable unlocking a smart phone or tablet PC as they are shaping figurines out of silly putty. We live in an age that is seeing the youngest of us, the most senior among us, the naysayers, and the self-proclaimed “tech dummies” embracing technology because, to put it simply, the alternative is to operate at a significant disadvantage. I began thinking about the impacts of this explosion of technology on the asset management industry and more importantly, the opportunities that it brings to us as asset management professionals. Whether or not you agree with the proposition that a toddler should have a $600 toy, you can’t argue that technology today is providing people of all ages with access to knowledge and tools that simply weren’t available to previous generations. For grandparents, it’s “Skype®” which allows them to converse in real-time with their grandchildren despite the

thousands of miles separating them, therefore making them more “connected”. For the toddler, it might be a word game or a number counting application for the iPad® that results in stronger performance in reading and mathematics once school age is reached. That same type of competitive advantage is available to us as asset management professionals if we choose to embrace technology as these populations have done. In recent years, we have seen significant advancements in the way we track assets because of technology. First our industry saw a shift away from Excel spreadsheets and the “tick and tie” physical inventory method towards mature asset management software solutions which decreased the number of resources and the amount of time needed to track assets, while increasing data accuracy and integrity. Then technology brought us mobile solutions and the ability to track our assets without being tethered to a desk, which saved even more time and further streamlined asset management activities. Now we see advancements being made in radio frequency identification (RFID) technology so that we can get information about our most sensitive, most costly, and highly mobile assets by the second. Today, we can get an immediate email alert when an asset moves from one room to another thanks to RFID technology. Ten years ago, we had to rely on someone knowing the item was moved, recording the new information on a piece of paper, shuttling that piece of paper back to a desk where a system could be updated and a notification sent out; a lot of moving parts, any

one of which could easily fail due to human error. And if we want to take it one step further, we can even report on trends as they relate to asset activity so that we can make wiser strategic decisions. This technology may seem new and scary, and it certainly can be seem pricey--just as talking into a computer screen at first seems frightening for grandparent, or the hundred dollar price tags on “techie toys” for kids seem a large expense for the parent—but technology is here, and to not embrace it is to operate at a significant competitive disadvantage. There are several obvious parallels that we can draw between the scenario of a toddler with an iPad and the asset manager with new technology tools, such as RFID readers. Both items are “neat”. Both are available at a cost that may seem high to prospective buyers. Both are examples of cutting-edge technology. Both require a learning curve for the user. But I think the two most interesting similarities are these:

ONE: There is a measureable return on investment. We all know that asset management technology and solutions aren’t given away for free, just as iPads or similar devices come with a price tag. But as with all expenditures, it’s necessary to consider the return on investment (ROI) and how quickly it will be seen. Spending some extra dollars on a tool that can enhance and facilitate a child’s learning experience can pay dividends once the child enters a more conventional classroom environment.

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Similarly, organizations that embrace technology and stay ahead of the innovation curve can perform asset management tasks in less time with greater accuracy and efficiency, so spending those up-front dollars to invest in asset management solutions means more accurate data, cleaner audits, fewer mistakes that need corrective action, and more useful information to drive strategic, cost-saving decisions.

TWO: As technology advances, it becomes more accessible and more affordable. Consider the different types of items that are starting to crowd a market that didn’t even exist just a few years ago, such as Ama-

zon’s Kindle Fire®, which offers much of the same functionality as an iPad at a much lower price point. In the asset management industry, there isn’t just one software option, one provider of mobile hardware, or one type of RFID reader or reporting solution. Multiple solutions now exist soon after the technology was devel-oped. Why? Because a diverse population of asset management professionals with different needs have embraced it, used it, and de-manded it, just as tablet users de-manded options that were more suited to their needs (and wal-lets). Asset management solutions are becoming more accessible and more tailored so that all types of organizations can find the right fit without being overwhelmed by the latest and greatest tools. It’s important to keep

in mind however, that even as technology advances, fundamentals remain crucial both to the early learner and the asset management professional. Educational tools are not meant to replace the fundamentals of early childhood learning, they are meant to enhance them, just as technology in the asset management arena is meant to enhance, not replace, our fundamental practices. We aren’t totally changing the way we do things, we are adapting to the times and marrying our best practices with tools that enable us to meet present-day challenges in a more creative, innovative, and efficient way. Children will always learn how to count first by ones, then by tens, then by hundreds. They will always learn to speak by “sounding

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out” words, then putting them together to form sentences. But now, regardless of how a child learns, there are tools that can make that learning easier since children learn in very different ways. The same principles apply to the asset management professional. We still have a need to know the who, what, when, and where about our assets; these are the fundamentals. Technology is certainly enabling us to do that in a more efficient and accurate way, but that simply won’t cut it anymore. Technology is also empowering us to use that information to make wiser strategic decisions. It is elevating the asset management industry so that it’s about more than “knowing where your stuff is”. And, as intimidating as it might seem at first, those of us who

embrace the technology and tools available to us will find ourselves realizing a return on our initial investments, keeping ahead of the innovation curve, and most importantly, remaining competitive in an economic environment where that is more crucial than ever before. So don’t be intimidated by the latest technology or most cutting edge devices in asset management: learn as much as you can about them and how to use them. Just as an iPad comes with an instructional manual and 24-hour technical support, so should any new technology you’re considering investing in. The NPMA can be a fantastic resource as it places a strong emphasis on educating its members so that we can be armed with the knowledge and

tools we need to be successful, so take full advantage of the publications, conferences, online forums, certification courses, and other learning tools that are provided. In today’s environment of rapid innovation, to shy away from the latest tools because of a lack of knowledge or information is to operate at a significant disadvantage. Plain and simple, we must embrace technology to compete. n

BIoGRAPHyBetsy Tucker, CPPA is a manager with sunflower systems located in Arlington, virginia. Betsy has over eight years of consulting experience with most of her work focusing on federal agencies. Her focus areas in property management include systems enhancement, program operations and environmental initiatives. Betsy is a member of the nPmA Federal Center Chapter and serves as the eastern Region editor.

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volume 24, issue 6 issn-1072-2858 … · special interest Groups NPMA ... Volume 24, Issue 6 NPMA National office 4025 Tampa Road, suite 1203, ... CF. Property Professional. Volume