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PROCURE-TO-PAYTRAINING SYMPOSIUM 2019

Government Furnished PropertyOverview Panel

12019 Procure-to-Pay Training Symposium


Government Furnished Property“Operational Readiness & Auditability”

Presented by: Mindy Rash-GehresDepartment of the Navy, ASN(RD&A)


GFP RequirementsIn order to be fully compliant, we must execute & substantiate the following:

All GFP is justified in writing by the requiring activity All GFP FAR & DFARS clauses are in contract All GFP is listed in contract on proper attachments All GFP is tracked in Government Accountable

Property System of Record (APSR)

All GFP is reported to OSD GFP Module All GFP is tracked in contractor’s system

3GFP MANAGEMENT IS A TEAM SPORT!

GO

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MEN

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NTR

ACTO

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CON

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Dept of Navy Accomplishments

Formed DON-wide working group in 2015 Aligned definitions & terminology Created a family of property accountability & management policies at

SECNAV level SNI 5200.42 Overarching property accountability & management SNI 5200.43 GFP, 13 Jul ‘18 – new policy! SNI 5200.44 OM&S, 29 Mar ‘19 – update of 2014 policy for audit SNI 5200.45 GE, 13 Feb ‘19 – complete rewrite of 2004 policy, + manual

Conducted ~40 GFP familiarization training events Generated & require DON GFP checklists as part of SECNAV policy

4PARTNERSHIP WITH FINANCIAL MANAGEMENT COMMUNITY HAS BEEN CRITICAL

SECNAV Form 5200/2

5

Dept of Navy Challenges Change is hard Competing priorities Property type Collateral duty

Tools aren’t keeping up with audit requirements Workforce turnover Training standardization Bow wave of discovery & capture

6REQUIREMENTS: OPERATIONAL vs AUDITABILITY

Clause Inclusion Compliance

7

All-time high1QFY19 = 99%(for both categories)

MUST GET THE CONTRACTS RIGHT

Dept of Navy Successes: GFE in APSR

8PERSISTENCE: MUST MAINTAIN FOCUS

BSO Lines Pieces Value Lines Pieces Value Lines Pieces Value Target date to load NAVSUP (BSO 23) 0 0 - 0 0 - N/ASSP (BSO 30) 1101 1101 517,535,197.68 0 0 - N/A ONI (BSO 15) 26 114,955.40 120 31-Dec-18RESFORCOM (BSO 72) 0 0 - 0 0 - N/A SPAWAR (BSO 39) 700 727 29,637,078.00 61 61 22,192,383.00 0 0 - 9 more contracts in discovery NAVSEA (BSO 24) 327 327 3,775,573.27 0 0 - 0 0 - N/A NAVFAC (BSO 25) 2,336 2486 22,600,000.00 18 89 12,718,000.00 0 0 - N/A

NAVAIR (BSO 19) 3,506 3506 699,280,541.00 678 678 608,285,149.00 12,569 12,569 797,149,601.00 314 pieces, $639M capital not in ERP continue working through FY19

USFF (BSO 60) 1,756 1,756 151,697,184.00 7 7 145,617,439.00 0 0 - All capital GFE is fully depreciated, so NBV for all GFE is $0 (non-capital is expensed upon purchase)

PACFLT (BSO 70) 3,589 3589 72,841,636.08 68 68 35,029,919.44 12,576 12,576 1,781,642.14

All known GFE not in APSR is below $5k value. PACFLT working to identify solution for reporting GOCO facility property - ECD unknown. **note: value of know GFE not in APSR only represents value of 6,861 of the items.

Total GFE in APSR Known GFE NOT in APSRCAPITAL GFE in APSR

All Navy GFE: 13,518 total pieces – $1.5 B Navy Capital GFE: 903 pieces – $ 824 M

Policy Enforce regulatory & policy requirements Enable “smart” technologies to support (IUID, etc.) Develop useful metrics & reporting structures

Training DON GFP Outreach sessions DON GFP Working Group Local refresher classes, stand-downs, memos, e-mails, etc. OSD Webinars & special event training

Test & Inspection Validate & self report clause compliance Execute metrics & reporting structure FIAR testing Spot checks on site

9

Changing the Culture

WE’VE COME A LONG WAY – MORE TO BE DONE


General Equipment Existence & Completeness Update

Presented by: Mr. Joel L. Lockhart, ASA (ALT), and CW5 Cheryl Bartly, HQDA G4, US Army


2019 Procure-to-Pay Training Symposium 11

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General Equipment Overview

290K General Equipment (GE) Capital Assets

GE Net Book Value = $87.5B

Definitions General Equipment Capital Assets: Supply Classes II, VII

and VIII with a useful life of 2 or more years, not intended for sale in the ordinary course of business, and meeting thecapitalization threshold of $250,000. For assets acquired prior to FY13, a threshold of $100,000 is under review.

Existence: All assets recorded in an APSR exist (Book-to-Floor inventory)

Completeness: All assets are recorded in an APSR (Floor-to-Book inventory)

Valuation: Includes all costs incurred to bring General Equipment to a form and location suitable for its intended use

General Equipment represents the largest major asset class on the Army Balance Sheet

Army Balance SheetTotal General PP&E ($147.6B)

GeneralEquipment

59% ($87.5B)

Other (e.g., Construction-In-

Progress, Software, Leasehold

Improvements, etc.) 2% ($1.9B)

Buildings Structures and Facilities 39%

($58.2B)

Source: FY 2018 United States Army Annual Financial Report

Net Book Value

General Equipment Overview

290K General Equipment (GE) Capital Assets

GE Net Book Value = $87.5B

Definitions

General Equipment Capital Assets: Supply Classes II, VII and VIII with a useful life of 2 or more years, not intended for sale in the ordinary course of business, and meeting thecapitalization threshold of $250,000. For assets acquired prior to FY13, a threshold of $100,000 is under review.

Existence: All assets recorded in an APSR exist (Book-to-Floor inventory)

Completeness: All assets are recorded in an APSR (Floor-to-Book inventory)

Valuation: Includes all costs incurred to bring General Equipment to a form and location suitable for its intended use

General Equipment represents the largest major asset class on the Army Balance Sheet

Army Balance SheetTotal General PP&E ($147.6B)

General

Equipment

59% ($87.5B)

Other (e.g., Construction-In-Progress, Software, Leasehold Improvements, etc.) 2% ($1.9B)

Buildings Structures and Facilities 39% ($58.2B)

Source: FY 2018 United States Army Annual Financial Report

Net Book Value

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Key Actions Required to Close Audit Gaps

Improve Capital Asset visibility Significant improvement over past year … 91% of equipment records show accurate locations

(up from 81% in May 18) Reduced number of missing/incomplete data elements in AESIP by 23% 100% of equipment records show acquisition value and date received Although GE asset visibility has improved, our ability to be auditable is negatively impacted by the

unavailability of contract information

Implement system software changes required to address 3 major gaps: DLA-managed Army Inventory

AMC will implement a LMP SIM system change request Plan to exchange serial number (SIM) and project code data with DLA beginning 4QFY20

PM-managed Equipment Required capabilities not developed in LMP to facilitate PM utilization (e.g., warehousing, maintenance,

AIT, Total Package Fielding solution) … Cost for LMP fixes DPAS, with linkages to LMP and GCSS-Army, is an alternative cost solution … to date, DPAS is not charging

Army for system development Government Furnished Equipment (GFE) possessed by Contractors

Not only a PM issue … LOGCAP, Depots and Arsenals possess GFE Corrective Action Plan (CAP) in progress to pull correct data elements for GFE

Emphasize compliance along with improved processes using updated systems

System software changes are needed to close GE visibility/auditability gaps

Key Actions Required to Close Audit Gaps

Improve Capital Asset visibility

Significant improvement over past year … 91% of equipment records show accurate locations (up from 81% in May 18)

Reduced number of missing/incomplete data elements in AESIP by 23%

100% of equipment records show acquisition value and date received

Although GE asset visibility has improved, our ability to be auditable is negatively impacted by the unavailability of contract information

Implement system software changes required to address 3 major gaps:

DLA-managed Army Inventory

AMC will implement a LMP SIM system change request

Plan to exchange serial number (SIM) and project code data with DLA beginning 4QFY20

PM-managed Equipment

Required capabilities not developed in LMP to facilitate PM utilization (e.g., warehousing, maintenance, AIT, Total Package Fielding solution) … Cost for LMP fixes

DPAS, with linkages to LMP and GCSS-Army, is an alternative cost solution … to date, DPAS is not charging Army for system development

Government Furnished Equipment (GFE) possessed by Contractors

Not only a PM issue … LOGCAP, Depots and Arsenals possess GFE

Corrective Action Plan (CAP) in progress to pull correct data elements for GFE

Emphasize compliance along with improved processes using updated systems

System software changes are needed to close GE visibility/auditability gaps

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Way Ahead

Aggressively implement and monitor FY18 Corrective Action Plans

Execute GE E&C and Valuation 5-Year Audit Project Plans and closely monitor performance

Emphasize leader support and engagement – compliance!

Leader support and engagement is key!

Way Ahead

Aggressively implement and monitor FY18 Corrective Action Plans

Execute GE E&C and Valuation 5-Year Audit Project Plans and closely monitor performance

Emphasize leader support and engagement – compliance!

Leader support and engagement is key!

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Government Furnished Property End-to-End – Air Force

Presented by: Colquitt “Quitty” Lawrence,AF/A4LR


Government Furnished Equipment

2018 Procure-to-Pay Training Symposium 15

AFAA Audit identified loss of accountabilityAir Force Material WeaknessFinancial Improvement and Audit Remediation (FIAR)

Current Status• Transitioning to Defense Property Accountability

System (DPAS)• Data cleansing critical; nothing goes in dirty• Begin populating DPAS FY 19

Government Furnished MaterielContractor Inventory Control Point (C-ICP)

• Transitioning to Defense Property Accountability System (DPAS) as Accountable Property System of Record

• Financial Improvement and Audit Remediation (FIAR)Current Status

• Identified 112 confirmed programs; reviewing 3 • Quarterly financial reporting of $11B as of 31 Mar 19• Data cleansing critical; nothing goes in dirty• Begin populating DPAS 4th Quarter, FY 19

16

Government Furnished PropertyChallenges/Opportunities

• Need PCO/ACO help!!!!!!• One contract with 738 loans • Contract selected for visit• Most disposition through PCARS• Some loss with relief granted• No notification to logistics community• This MUST stop!!!!

• We must work together

17


Government Furnished Property Overview Panel Government Furnished Property�“Operational Readiness & Auditability”GFP RequirementsDept of Navy AccomplishmentsSECNAV Form 5200/2Dept of Navy ChallengesClause Inclusion ComplianceDept of Navy Successes: GFE in APSR�General Equipment �Existence & Completeness UpdateSlide Number 11Slide Number 12Slide Number 13Government Furnished Property End-to-End – Air ForceGovernment Furnished EquipmentGovernment Furnished MaterielGovernment Furnished PropertySlide Number 18

government furnished property - ousd a&s - home p2p...sni 5200.42 overarching property...

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