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NPMA Federal Center Chapter - Aug. 2011                           Presented by: Don Miller     General Manager, Olgoonik M...
“Value Added PropertyManagement” - What is it? Sounds good – what is it? Value added refers to "extra" feature(s) of an it...
Property or Assets?  Assets: An asset is a resource controlled by the   entity as a result of past events and from which ...
Federal Definitions (FMR) General PP&E (Property, Plant & Equipment) 1. General PP&E consists of tangible assets that meet...
General PP&E also includes:       a. assets acquired through capital leases, including leasehold          improvements (se...
General PP&E examples:       a. Real Property including Land, Land Rights, and          Facilities (includes Buildings, St...
The Federal Acquisition Regulation52-245-1  Property management.  (1) The Contractor shall have a system to manage (cont...
Why do we Manage Property?  XX Regulatory requirement  We dont want our property to become “lovely parting gifts”     fo...
The Problem…     If the fundamental reason your organization is     managing property is to satisfy a regulatory or polici...
The Solution… Demonstrate the “Value Added” If you Google “value added property management” the    first page is all about...
What do we add?  Potential to reuse property rather than disposal  Opportunity to improve utilization of idle equipment ...
Winning Over Management  Managers at all levels have to “see” the benefits  We have to guide and educate them  We have ...
Our Tools – ASTM Standards E2131-09         Standard Practice for Assessing Loss, Damage, or Destruction of Property E2132...
Now What??  We have the tools  We understand the “problem”  We understand the solution Our Next Steps  Understand your...
Example  Big Information Technology Project     Requires new dedicated servers     Requires new software solutions    ...
We suggest…  Displaced workstations from developer be used in the     new lab in lieu of buying new – closer to our curre...
Analysis  Information Technology has a huge budget; is a highly   scrutinized function; and, has enormous visibility for ...
Conclusion  A simple example – but it works at whatever level of   the organization with whom you are working  The IT Pr...
Questions??? Thank You!      Don Miller      General Manager, Olgoonik Management Services LLC      Tel: Office: 703-312-0...
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Value added property management

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A discussion of why the asset manager should view their position as value added to the organization - and then make it so

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Value added property management

  1. 1. NPMA Federal Center Chapter - Aug. 2011 Presented by: Don Miller General Manager, Olgoonik Management Services
  2. 2. “Value Added PropertyManagement” - What is it? Sounds good – what is it? Value added refers to "extra" feature(s) of an item of interest (product, service, person, etc.) that go beyond the standard expectations and provide something "more" while adding little or nothing to its cost. (Source: Wiki)8/31/2011 2
  3. 3. Property or Assets?  Assets: An asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity.  Property: A piece of real estate: has a swimming pool on the property. c. Something tangible or intangible to which its owner has legal title:  Something owned; a possession  The right of ownership; title (Source: Google / Wiki)8/31/2011 3
  4. 4. Federal Definitions (FMR) General PP&E (Property, Plant & Equipment) 1. General PP&E consists of tangible assets that meet all of the following criteria: a. have an estimated useful life of two years or more; b. are not intended for sale in the ordinary course of operations; c. are acquired or constructed with the intention of being used or being available for use by the entity; and, d. have an initial acquisition cost, book value, or when applicable, an estimated fair market value … that equals, or exceeds, DoD capitalization threshold. The DoD capitalization threshold is $100,000, except for real property assets. The threshold for real property assets is $20,000. Source: DoD Financial Management Regulation 7000.14-R8/31/2011 4
  5. 5. General PP&E also includes: a. assets acquired through capital leases, including leasehold improvements (see paragraph 060206 of this chapter); b. property under the accountability of the reporting entity even though it may be in the possession of others (e.g., state and local governments, colleges and universities, or contractors); c. land, other than Stewardship Land, with an identifiable cost that was specifically acquired for, or in connection with, the construction of General PP&E; and, d. land rights, which are interests and privileges held by an entity in land owned by others, such as leaseholds, easements, water and water power rights, diversion rights, submersion rights, rights-of- way, mineral rights and other like interests in land. Source: DoD Financial Management Regulation 7000.14-R8/31/2011 5
  6. 6. General PP&E examples: a. Real Property including Land, Land Rights, and Facilities (includes Buildings, Structures, and Linear Structures) b. Construction in Progress c. General Equipment d. Assets Under Capital Lease e. Leasehold Improvements f. Internal Use Software g. Military Equipment Source: DoD Financial Management Regulation 7000.14-R8/31/2011 6
  7. 7. The Federal Acquisition Regulation52-245-1  Property management.  (1) The Contractor shall have a system to manage (control, use, preserve, protect, repair and maintain) Government property in its possession. The system shall be adequate to satisfy the requirements of this clause. In doing so, the Contractor shall initiate and maintain the processes, systems, procedures, records, and methodologies necessary for effective control of Government property, consistent with voluntary consensus standards and/or industry-leading practices and standards for Government property management except where inconsistent with law or regulation. During the period of performance, the Contractor shall disclose any significant changes to their property management system to the Property Administrator prior to implementation.  (2) The Contractor’s responsibility extends from the initial acquisition and receipt of property, through stewardship, custody, and use until formally relieved of responsibility by authorized means, including delivery, consumption, expending, sale (as surplus property) or other disposition, or via a completed investigation, evaluation and final determination for lost, stolen, damaged, or destroyed property. This requirement applies to all Government property under the Contractor’s accountability, stewardship, possession or control, including its vendors or subcontractors (see paragraph (f)(1)(v) of this clause).8/31/2011 7
  8. 8. Why do we Manage Property?  XX Regulatory requirement  We dont want our property to become “lovely parting gifts” for employees  SOX requires some property tracking  Tax laws require tracking  Government regulations require tracking DoD, DHS, NASA, etc.  The FAR requires tracking Does the theme sound like “Cause we have to?”8/31/2011 8
  9. 9. The Problem… If the fundamental reason your organization is managing property is to satisfy a regulatory or policing requirement – they are only going to provide the lowest amount of resources required to achieve the minimum acceptable levels of performance. Why is this? They don’t see property management as having a pay back to the mission or their bottom line.8/31/2011 9
  10. 10. The Solution… Demonstrate the “Value Added” If you Google “value added property management” the first page is all about real property, page two has one entry on intellectual property, and one entry on NPMA Property Management and then more real property… How do we improve recognition of the inherent value we add as property managers?8/31/2011 10
  11. 11. What do we add?  Potential to reuse property rather than disposal  Opportunity to improve utilization of idle equipment  Identify costs of maintaining idle equipment and property in storage  Possibility to reallocate property to meet contingency needs  Keep property from becoming lost, damaged or destroyed  Life Cycle Management helps program when replacements are required and when to program funds8/31/2011 11
  12. 12. Winning Over Management  Managers at all levels have to “see” the benefits  We have to guide and educate them  We have to take the opportunity to “show” how good property management and accounting improves their ability to be:  Responsive  Proactive  Good Stewards  Innovative  Gain more resources (time, money, people and materials)8/31/2011 12
  13. 13. Our Tools – ASTM Standards E2131-09 Standard Practice for Assessing Loss, Damage, or Destruction of Property E2132-01(2007) Standard Practice for Physical Inventory of Durable, Moveable Property E2135-10a Standard Terminology for Property and Asset Management E2279-09 Standard Practice for Establishing the Guiding Principles of Property Management E2306-11 Standard Practice for Disposal of Personal Property E2379-09 Standard Practice for Property Management for Career Development and Training E2452-10 Standard Practice for Equipment Management Process Maturity (EMPM) Model E2453-05 Standard Practice for Determining the Life-Cycle Cost of Ownership of Personal Property E2495-07 Standard Practice for Prioritizing Asset Resources in Acquisition, Utilization, and Disposition E2497-06 Standard Practice for Calculation of Equipment Movement Velocity (EMV) E2499-06 Standard Practice for Classification of Equipment Physical Location Information E2604-09 Standard Practice for Data Characteristics of Equipment Records E2605-08 Standard Practice for Receiving Property E2606-08 Standard Practice for Receipt Notification as a Result of Tangible Property Movement E2607-08 Standard Practice for Cannibalization/Reclamation of Serviceable Equipment Components to Support Demand Requirements E2608-08 Standard Practice for Equipment Control Matrix (ECM) E2631-09 Standard Practice for Physical Placement of an Entity-Controlled Supplemental Identification Label E2671-10 Standard Practice for Defining Movements, Shipments, and Transfers of Tangible Property E2672-09 Standard Practice for Identification and Categorization of Tooling E2674-09 Standard Practice for Assessment of Impact of Mobile Data Storage Device (MDSD) Loss E2675-09 Standard Practice for Property Management System Outcomes E2676-09 Standard Practice for Tangible Property Mobility Index (MI) E2715-09 Standard Practice for Moveable Property Storage E2811-11 Standard Practice for Management of Low Risk Property (LRP) E2812-11 Standard Practice for Uniform Data Management in Asset Management Records Systems Source: http://www.astm.org/COMMIT/SUBCOMMIT/E53.htm 13
  14. 14. Now What??  We have the tools  We understand the “problem”  We understand the solution Our Next Steps  Understand your organizational climate  What is important to the organization?  How does property play a part?  How can improved property performance aid the goals?8/31/2011 14
  15. 15. Example  Big Information Technology Project  Requires new dedicated servers  Requires new software solutions  Requires state of the art developer workstations  Requires new work space  Requires new testing labs  Requires updated training resources8/31/2011 15
  16. 16. We suggest…  Displaced workstations from developer be used in the new lab in lieu of buying new – closer to our current baseline of systems. (Potential to reuse property rather than disposal)  Coordinate direct delivery and concurrent property in- processing to limit impact on setup and development. (Keep property from becoming lost, damaged or destroyed)  Property in storage can meet the requirements to outfit the labs and training areas (Identify [reduce] costs of maintaining idle equipment and property in storage)8/31/2011 16
  17. 17. Analysis  Information Technology has a huge budget; is a highly scrutinized function; and, has enormous visibility for the organization (organizational climate)  We have become part of the solution instead of a hindrance to progress  We have offered them the opportunity to save money on some areas allowing them more money to buy IT “stuff”  We have become “team members” (i.e., value added)8/31/2011 17
  18. 18. Conclusion  A simple example – but it works at whatever level of the organization with whom you are working  The IT Project gained additional resources through cost avoidance  You need to look for the opportunity  Take the lead!8/31/2011 18
  19. 19. Questions??? Thank You! Don Miller General Manager, Olgoonik Management Services LLC Tel: Office: 703-312-0080 Mobile 703-509-3255 Email: dmiller@olgoonik.com8/31/2011 19

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