This document discusses government contracting and government property management. It introduces speakers from Dixon Hughes Goodman LLP and Stinger Ghaffarian Technologies to discuss topics including the background of the Business Systems Rule, the definition of government property, FAR Part 45 requirements, the audit approval process, tips for working with auditors, and common missteps to avoid. The presentation aims to provide an overview of managing government property for government contractors.

1. 1government contracting
Government Property
The Forgotten System
Mark Burroughs, Partner DHG
Bill Walter, Partner DHG
Alex Barenblitt, SGT

2. 2government contracting
Speaker Information
Mark Burroughs, Partner
Dixon Hughes Goodman, LLP
(703) 970.0519
mark.burroughs@dhgllp.com
Bill Walter, Partner
Dixon Hughes Goodman, LLP
(703) 970.0509
bill.walter@dhgllp.com
Alex Barenblitt, Corporate Property Manager
Stinger Ghaffarian Technologies (SGT)
alex.barenblitt@e-isg.com
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3. 3government contracting
Topics for Today
• Introductions
• Background of Business Systems Rule
• What is Government Property?
• FAR Part 45
• Audit Approval
• Working with Auditors
• Common Missteps
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4. 4government contracting
Contractor Business Systems
• DFARS Interim Rule issued May 2011; Final issued Feb 24, 2012
• Systems Identified
Accounting MMAS Estimating
EVMS Procurement Property
• 5% maximum withhold per system; 10% max for all systems
• Progress Payments
• Performance Based Payments
• Interim payments under cost, T&M, and labor hour contracts
• Corrective action plans may reduce withholds by 50%
• DCMA tracking status of contractor business systems in
Contractor Business System Analysis Repository
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5. 5government contracting
Contractor Business Systems
• Contractor business systems means:
• Accounting system (252.242–7006)
• Earned value management system (252.234–7002)
• Estimating system (252.215–7002)
• Material management & accounting system (252.242–
7004)
• Property management system (252.245–7003)
• Purchasing system (252.244–7001)
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6. 6government contracting
What is Government Property?
• Contractor Acquired Property
– property acquired, fabricated, or otherwise
provided by the contractor for performing a
contract and to which the Government has title.
• Government Furnished Property
– Government property furnished to the contractor
for performance of a contract.
• Materials versus Property
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7. 7government contracting
FAR Part 45
• General requirements/overview
– Implements fiduciary responsibility for
tracking/maintaining government property
– The government shall conduct an analysis of the
contractor’s property management policies,
procedures, practices, and systems.
• This analysis shall be accomplished as frequently as
conditions warrant, in accordance with agency procedures.
• Criteria
• Thresholds?!
• Liability/Risk
• Subcontract Management
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8. 8government contracting
Audit Approval
• Department of Defense
– DCMA Responsible for Property System
• DCMA Instruction 124
– DCAA may perform audit steps
• MAARS #13 – Purchases Existence and Consumption
• Contractor Self-Assessments
• Civilian Agency Expectations
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9. 9government contracting
Working with Auditors
• Steps for Success
– DCMA
– DCAA
– DOE
– NASA
– Other agencies
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10. 10government contracting
Common Missteps – Recommendations
– DIDN’T EVEN KNOW!!
– Be proactive – test your own “Audit Trail”
– Choose to automate process – eliminate
spreadsheets
– Become familiar with Requirements
– Do the right thing – don’t be afraid to challenge
when you are right
– Ask questions – challenge the urge to change for
the sake of change . . .
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11. 11government contracting
Questions?
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12. 12government contracting
Join Us Next Month
“?”
• Wednesday, February 10th, 11:00 am
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