Basic Property Management-
Government
Part I
while implementing effective processes.
Presented by:
Skip Adolph CPPM, CF and Ivonne Bachar CPPM, CF
In collaboration with :
Andy Anderson CPPM, CF and Richard Coatney CPPM

• Demands detail
• Requires constant self improvement
• Need to know your work environment
• Must understanding and apply multiple regulations

“Drivers”
Every organization, regardless of size or type, has critical business processes that are an integral part of the success of their organizational mission and objectives.
NPMA Standard Property Book, July 1999
• Fiduciary Responsibility
• Business Management
• Established work efficiencies
3

A few things you’re gonna have to understand!
• Your Business Environment
– What is your “core” product?
– What is the variety of contracts or other awards?
• 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, ILPs or VCSs?

Balancing Property’s “Multiple Hats”
• “Hats”
– Compliance
– Stewardship
– Fiduciary
• Potential conflicting priorities
– Business Mgmt/Asset Management
– Balance and consistency most important
5

Core Team for Property Mgmt.
Property
Management
Office
Sponsors
Program
Management
?????
Property Management Processes
Custodians and
Users
IT Staff
6

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.
7

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

Compliance
(from the previous slide) means…
• Per Merriam-Webster:
– 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

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.
• State and local govt. laws, regulations, policies, procedures
• Foreign governments’ and private industries’ requirements
• Federal law such as SEC, Sarbanes-Oxley, etc.
• The various “green” property management initiatives
• And those words in the contract!!

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

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

Where it all Begins
• Code of Federal Regulations (CFR)
– Title 41, Chapter 101
• Federal Property Management Regulations (FPMR)
– Title 48
• Federal Acquisition Regulations (FAR)

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

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!!!

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

The Composition of a Contract
What makes up a Contract? FAR
15.204-1 Uniform Contract Format says there must be four parts…
1. The Schedule
2. Contract Clauses
3. Lists of documents, exhibits and other attachments
4. Representations and instructions

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 & efficient
– Do not impose non-value added steps to the process
– Write user-friendly regs in plain language

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

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

• Questions?
• Observations?
• See you at the next session!