A key aspect of Government Contracting is creating processes and business systems that are compliant with the contract requirements. Obviously, maintaining compliance is very important to any serious contractor. But operational efficiency is also — and needs to be — paramount.
Due to the nature of our business, we regularly come across organizations that have signed government contracts in which they have taken possession of Government property (typically when a contract requires FAR 52.245-1) — but they don’t have the business systems in place to adequately and efficiently manage that property.
It is common for organizations to explain to us that they’re managing their Government property with an Excel spreadsheet (or something similar) and then go on to tell us that it’s not working very well. If you’re interested in my opinion on managing Government property with a spreadsheet – please read my recent blogpost. Spreadsheets are not an option.
Managing Government property is complex. You need a complete Government Property Management System to help you manage inventory record keeping and reporting.
Watch this quick 1-minute Government Property Management Explainer video.
FAR 52.245-1
FAR 52.245-1 is the Government Property clause which clearly states that the Contractor shall have a system of internal controls to manage Government property in its possession. It goes on to say that the system must be “adequate” — but, is not entirely clear on what that means. Fortunately, the DCMA has published a guidebook to provide detailed information on a Property Management System Analysis (PMSA).
This DCMA Guidebook is gold for Government Property Managers as it clearly explains what DCMA auditors should be looking for and paying attention to during a PMSA. Here is the shortlist of Government Property Management business system requirements:
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- IUID — All qualifying government property needs to be permanently marked with a globally unique IUID or other asset identifier.
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- Maintain Records — Contractors must maintain an auditable record, along with very specific data elements, of all transactions for all government property accountable to the contract.
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- Physical Inventory — Contractors need to periodically perform, record, and disclose physical inventory results.
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- Reporting — Contractors need to have a process to create and provide accurate, timely and complete reports (for physical inventory and other property related reports) throughout the life of the contract – from acquisition to disposal.
UC! Web is a complete Government Property Management System
Our flagship asset management platform, UC! Web, was purpose-built to support today’s Government Property Managers to help them maintain all of their government property records, automate reporting to government systems, achieve sustained audit readiness and pass a Property Management System Analysis.
The ability to keep track of and account for critical assets and property at all times has become imperative for those doing business with the DoD. Modern Government Property Managers need a robust asset management system to help support their contract compliance objectives. Property managers also need a system that can take advantage of modern technologies to help them move faster and more efficiently in today’s highly competitive marketplace.
If you would like to speak with one of our Government Property Management experts you can reach out to us here.
