Government Furnished Equipment (GFE) Overview

Edlouie S. Ortega, MSM, CDFM

Equipment and Technology Management

Medical Equipment and Logistics Solutions

Naval Medical Logistics Command

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Personal Property

Land

PP&E Inventory/OM&S

Real Property Repairables

Facilities

Internal Use Software

Consumables

Equipment

Military Equipment

General Purpose Equipment

Structures

Buildings

Linear

Assets(Financial World)

2017: DoD audit readiness goal!

2017

DoD Concerns

Assets

Personal Property

Land

PP&E Inventory/OM&S

Real Property Repairables

Facilities

Internal Use Software

Consumables

Equipment

Military Equipment

General Purpose Equipment

Structures

Buildings

Linear

Distilled into four (4) types under the Federal Acquisition Regulation

For “Use”

Material Special Test Equip. Special Tooling Equipment

For Repair

Personal Property

1. Equipment (for use or repair)2. Special Tooling3. Special Test Equipment4. Material

Assets

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types of contract property4

The Airframe is the price on the contract

The engines provided as GFE from a different contractor

CAP transferred from Developmental Contract

GFE parts requisitioned from DLA

Cost of an Airplane

Output: Image for Clinical Review

Acquisition Devices

Network Switches

Network

Network Gateway

Network Switches

Repair Parts/ Special Tooling

Cost of Care

MaintenanceMonitoring

System

Baseline information needed – Inadequate data

– No standard method

Do we know:– What is GFE; where it is; and what its worth

Why?– Contracts (especially legacy contracts) do not always contain GFE

listings; listings are often ad-hoc and inaccurate

– DoD Component past practice was to “zero out” equipment (GFE) records

– Little rigor in evaluating contractor need for GFE

The Latest GFE Memo…

OSD memorandum issued on January 7, 2012

Goals– Promote the current clause

requirements

– Demonstrate the relationship betweenthe clauses, the DoD policy, and thesystem capabilities (IUID Registry)

– Get a starting point for equipment already used by contractors• Laptop Computers

• Offsite equipment w/no gov’t representative

– Increase visibility and awareness ofthe “mystery” surrounding GFE

– Highlight the criticality to auditability

The Memo Explained

Based on existing policy– NO NEW POLICY is in this memo

Requires HQ Level coordination– Each DoD Component will take a unified approach

Standardizes DoD practices– Eliminates ad-hoc data calls to contractors

Promotes a common enterprise approach– Use of IUID Registry as master data source for GFE

– Single face to industry

– Consistent with DoD Instruction 8320.4

OSD Methodology Highlights

Create integrated Project Team to execute methodology

– Program Managers

– Acquisition Managers

– Accountable Property Officers, etc. Use IUID Registry to interface with Contractors

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OSD Methodology Highlights

Leverage DCMA’s Property Management System Analysis (PMSA) to validate data:

– “Adequate” record rating & “Low” risk = accept contractor data

– “Inadequate” record rating & “High” risk = Ctr perform wall to wall inventory to validate data, data validated independently

– “Inadequate” record rating & “Moderate” risk = evaluate Corrective Action Plan and use sampling techniques to validate data

Emphasize focus on improving business processes to improve accountability for GFE going forward

Modify contracts to list GFE to bring contracts into FAR, DFARS compliance

Amended contracts to serve as supporting documentation for government’s rights/obligations to equipment

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OSD Expectations

Contracting Officers (Buying Commands)– Use the opportunity to update property clauses (FAR and DFARS)

and other terms and conditions

– Modify contracts with appropriate property info per PGI 245

Program Offices– Work with Accountable Property Officers to establish needed

property records based on risk assessments of contractors

Contractors– Report property per contract terms; utilize the IUID Registry as

appropriate

DOD RecommendedStep by Step

First [immediate]:

– Stop the bleeding.

– No GFE should be furnished without PCO first meeting PGI 245.103-70

Second: [short term]:

– Identify contracts coming to completion within one year Third: [intermediate]:

– Identify contracts going beyond one year

– Modify contracts as needed to add GFE listing Fourth: [long term]:

– Update local policy and procedures; sustainment & compliance

DEMONSTRATION

“How to account for GFE in DMLSS”

HM1 Sherwin Villagracia14

QUESTIONS?

edlouie.ortega@med.navy.mil

(301) 619-3065

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Related Sessions

LO-M-1-F Business Objects Training for Equipment Managers

LO-T-3-B Equipment Management Self Assessment - Conduct Your Own LAV

LO-W-3-C Automatic Identification Technologies (AIT) /IUID and RTLS

LO-W-3-D Equipment Management Process LO-W-3-E Annual Inventory Process and Requirements

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