Protecting Your Property Management System and Its Most Valuable Asset –

YOU

Keith C. Record

• View your property management system and its assets from an expanded perspective.

• Determine some property management issues that may need to be addressed by management.

Session Objectives

• “A regularly interacting or interdependent group of items forming a unified whole” (Merriam-Webster Dictionary)

• All systems have subsystems and are part of a larger system

What is a System

• FAR 52.245-1 (b)(1) (April 2012)– The Contractor shall have a system of

internal controls to manage … – The Contractor shall initiate and maintain

the processes … • P4 - People, Places, Processes, Physical

items

What is a Property Management System ?

• “A useful or valuable thing, person, or quality“ (Oxford Dictionary)

• Financial Balance Sheet:Assets - Liabilities = Equity

• “True” assets– create value or– help other assets increase or maintain

their value• An asset can be a “true” asset or a liability

What is an Asset?

• There are correlations between the human lifecycle and the ten property outcomes

• You can increase your productivity • You have the ability to evaluate and plan • You can “initiate and maintain”• You can create, appreciate and add value

You are the most valuable asset!

For the ten property management outcomes (acquisition, receipt, records, physical inventory, subcontractor control, reports, relief of stewardship, utilization, maintenance, closeout):• Who, what, where, when and how is each

performed?• What are each outcome’s possible threats?• What are your planned threat responses?

How well is your property management system protected?

• “All L-3 Divisions shall have a Business Continuity Plan that establishes measures to protect the Company’s employees, processes, and information.” (L-3 Corporate Policy 308)

• Some BCP components are:– Risk Assessment– Emergency Action Plan– Communications Plan– Alternate Processes– IT Disaster Recovery Plan– BCP Maintenance Plan

Business Continuity Plan (BCP)

BCP Alternate Process Matrix

Timeband Bldg OK, No System

Access

Partial Facility or

System Availability

Entire Facility

Destroyed

Third Party Out

1 Day 1a, 2a, 3a 1a, 2a, 3a 1b, 2b, 3b 1a, 2a, 3a

5-10 Days 1c, 2c, 3c 1c, 2c, 3c 1d, 2d, 3d 1c, 2c, 3c

1-4 Weeks 1c, 2c, 3e 1c, 2c, 3e 1d, 2d, 3f 1c, 2d, 3e

1-3 Months 1f, 2f, 3g 1f, 2f, 3g 1g, 2g, 3h 1f, 2f, 3g

>3 Months 1f, 2f, 3i 1f, 2f, 3i 1g, 2g, 3j 1f, 2f, 3i

• Each number/letter corresponds to an action step written below the matrix• Each organization/function fills out a matrix

• If there was a loss, how accurate would your inventory records be in determining exactly what was lost?

• What is the replacement value of the different classes of property in your inventory? (book or market value)

• Who pays for each property class loss?• Bottom line: Know what is stated in your

contracts and insurance policies.

Business Continuity Plan

• One scenario: 30% or more of your workforce is out due to illness, death or caring for others

• A pandemic would affect your company, organization, suppliers and customers

• How would your company and organization handle a pandemic?

A Major Threat -- Pandemic

BCP Alternate Process Matrix Addition

Timeband Bldg OK, No System Access

Partial Facility or

System Availability

Entire Facility

Destroyed

Third Party Out

Employee Vacancy

1 Day1a, 2a,

3a 1a, 2a, 3a 1b, 2b, 3b 1a, 2a, 3a 1b, 2b, 3b

5-10 Days1c, 2c,

3c 1c, 2c, 3c 1d, 2d, 3d 1c, 2c, 3c 1d, 2d, 3d

1-4 Weeks1c, 2c,

3e 1c, 2c, 3e 1d, 2d, 3f 1c, 2d, 3e 1d, 2d, 3d

1-3 Months 1f, 2f, 3g 1f, 2f, 3g 1g, 2g, 3h 1f, 2f, 3g 4a

>3 Months 1f, 2f, 3i 1f, 2f, 3i 1g, 2g, 3j 1f, 2f, 3i 4a

• After a complete computer system loss, what would be the most difficult to replace – hardware, software or data?

• What data safeguards and backups do you have?

• What would you do if your computers crashed and no data could be recovered?

How Secure is Your Data?

• Where are you on the org chart?• Do you charge direct hours (to a contract,

program, project, grant, task order, etc)?• Who bids your hours in a proposal?• How are those hours determined?• After winning a contract, who determines

the budget and spread of hours over the life of the contract?

How accurate are your bids and budgets?

• How do you handle a “completed” or closed contract having remaining material (with no funds left for disposition)?

• Are your bid hours based on current, complete and accurate data?

• Are your hours allowable and allocable under FAR and CAS (Cost Accounting Stds)?

• How accurate are the bid to budget to actual charged hours?

How accurate are your bids and budgets?

• You are the most valuable asset in any property management system

• Verify your company has a Business Continuity Plan (BCP)

• Ensure your organization/function/property management system is included in the BCP

• Keep your data secure and backed up• Have accurate bid/budged labor hours• Talk with management about any of the

above concerns

Summary

Questions or Comments?

Please Contact:

Keith C. Record, CPPMProperty Administrator

L-3 Communications(801) 594-2594

Keith.C.Record@l-3com.com