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Basic Property Management-GovernmentPart I

Meeting the needs of all our “customers” while implementing effective processes…..Two of the biggest challenges for us today!

Presented by: Skip Adolph CPPM, CF and Andrew C. Anderson CPPM, CF

ForNational Education Seminar, Las Vegas, 2011In collaboration with Richard Coatney, CPPM

A very quick version of Property Management

Demands detail Requires constant self improvement You need to know the environment

you are working in Must have an understanding of the

various regulations

A few things you’re gonna have to understand!

Your Business Environment What is your “core” product? What is the variety of contracts?

Your Company Policies What are your Policies on PM? Do they comply with FAR or other requirements? What are your Policies on Contracting?

Your PM Business Rules How do your processes comply to Policy? How do your processes comply with regulatory

requirements?

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Words to Consider

Accountability-answerable -Two types of contractual accountability -Financial -Logistical Fiduciary-third party “financial” relationship -Taxpayer, USG and User Materiality-having real importance -Criticality of the asset or individual piece of

property based on a number of issues: cost, security, hazardous or risk, etc.

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Benefits Gained from an Effective System

Provides an effective management tool

Maximizes return on investment Ensures effective stewardship Enables compliance Increases reutilization Increased cooperation &

collaboration

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Compliance (from the previous slide) means…

Merriam-Webster tells us it means conformity to official requirement

In essence it is understood to satisfy the requirements of a sponsor or regulation

It can also mean satisfactorily following organizational policies, procedures and operational guidelines

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The Compliance “Umbrella” (Just a bit of that detail stuff ya’ gotta worry about)

Office of Management & Budget (OMB) Circulars Federal Property Management Regulations (FPMR) Federal Management Regulations (FMR) Governmental Accounting Standards Board (GASB) Federal Acquisition Regulations (FAR) Agency-Specific Supplements (DFARS), (DEARS), etc. Federal law such as SEC, Sarbanes-Oxley, etc. State and local government laws, regulations, policies

and procedures Foreign governments’ and private industries’

requirements The various “green” property management initiatives And those words in the contract!!

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The Legal and Statutory Basis for Property Management

The property organization must be familiar with the source and authority of all property management laws, rules, and regulations

Federal Property Policies and Regulations United States Constitution Statutory Law Relating to Property

Management Regulations, Executive Orders, OMB Circulars

and Standards Agency property management regulations

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The Constitution

Article IV, Section 3, paragraph 2 reads, Empowered Congress to dispose of property

and to make needed rules and regulations regarding property belonging to the United States

In 1815 Congress enacted the first legislation for the disposal of surplus naval stores remaining from the War of 1812

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Where it all Begins

Code of Federal Regulations (CFR)

Title 41, Chapter 101 Federal Property Management Regulations

(FPMR)

Title 48 Federal Acquisition Regulations (FAR)

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Federal Property Management Regulation (FPMR)

Created by Federal Property and Administrative Services Act of 1949

63 Statute 378: P.L. 152 aka “The Act” Started today’s world of

Accountability

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Federal Acquisition Regulation (FAR)

Public Law 93-400 Office of Federal Procurement Policy (OFPP) Act of

1974

Amended by Public Law 96-83 and OFPP Letter dated August 19, 1985

Our roots are found in LAW!!!

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What is a contract?

A contract is “An agreement between two or more parties, creating obligations to do or not to do something, that are enforceable or otherwise recognizable at law…”

Black’s Law Dictionary, eight edition, 2004

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The Composition of a Contract

1. The Schedule2. Contract Clauses3. Lists of documents,

exhibits and other attachments

4. Representations and instructions

What makes up a Contract? FAR 15.204-1 Uniform Contract Format

says there must be four parts…

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FAR’s Guiding Principles FAR 1.102: Statement of Guiding Principles for the

Federal Acquisition System:

Deliver on a timely basis the best valued product or service to the customer, while maintaining the public’s trust.

Philosophy for Reg. Writing: Avoid imposing requirements unless law demands Assume contractors are honest and wish to be

capable and efficient Do not impose non-value added steps to the process Write user-friendly regs. in plain language

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Subpart 45.107

Introduces the property clauses: 52.245-1 Government Property which will be

used on all Fixed Price, Cost Reimbursable, time and material and labor hour contracts.

52.245-2 Government Property (Installation Operations for Services) to be used when contracts are being performed on a government installation.

52.245-9 Use and Rental Charges

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Regulatory Requirements(Terms & Conditions)

Office of Management & Budget (OMB) Circulars A-21 (2 CFR 220)

Cost Principles for Educational Institutions A-110 (2 CFR 215)

Uniform Administrative Requirements for Grants and Cooperative Agreements with Institutions of Higher Education, Hospitals, and other Non-Profit Organizations

A-133 Audits of Institutions of Higher Education & Other Non-Profit

Institutions

End of Part I

We wanna see you back here at 2:30 this afternoon for more enlightenment and fun-it’s Skip’s turn then!!!

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