Joe Bocchino CPPA
Honeywell Technology Solutions Inc.
Phoenix, Arizona
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Controls and Records
Purchasing Data
Pre Procurement Activities
Supplier Consignment
Transfers
Evaluation of Subcontractors (Risk
Assessments, Surveillance)
Support Property Administration
CONTROLS AND RECORDS
•The same basic controls for Gov’t Property that are
required by Honeywell will be required of Subcontractors
•Gov’t property stewardship records located at the
Subcontractors will be maintained and controlled by the
Honeywell Site Record Center unless support Property
administration delegation has been issued.
Purchasing Data
•ISC/Sourcing is responsible to ensure that
Subcontractors who possess Gov’t property as
a result of a Purchase Contract will comply with
Contracts Terms and Conditions, Honeywell
Policies and Gov’t Regulations
Pre Procurement Activities
•Sourcing shall obtain a copy of the Supplier’s Gov’t Property Management System
Approval and provide a copy to the Gov’t Property Management Site Coordinator..
•All Purchase Orders must identify the equipment and material to be provided
or fabricated and contain any contract flow down requirements including
adequate instructions, relative clauses, specific agency applications and the
Subcontractors responsibilities.
•Sourcing will include in the P.O. a Requirement that the Supplier notify the
Buyer immediately if their Property Management System is rated inadequate
or Unsat or if the System Approval withdrawn. Sourcing will evaluate the
Circumstances and make recommendation to Property Management and act
In accordance with the direction of Property Management
•If the Supplier does not have an approved Gov’t Property System, Sourcing
shall request a Pre-Procurement Risk Assessment.
Pre Procurement Activities
•These system Risk Assessments are a temporary measure to ensure the
Supplier has the Basic Systems controls in place.
•The Site Coordinator will review the procedures and make the initial
• determination of the Level of Risk
•If the System is determined to be inadequate, the Site Coordinator will
identify areas of non compliance. Sourcing & Site Coordinator shall develop
a risk mitigation plan/corrective action.
•If the risk is significant, Finance should approve the plan. Sourcing will
implement and manage the plan/corrective Action.
•If the Supplier does not have an approved Gov’t Property System,
Sourcing shall request a Pre-Procurement Risk Assessment.
Supplier Consignment
•Property to be provided/fabricated must be clearly identified in the P.O.
along with the terms and conditions.
•Property shall be consigned to a Supplier in the terms of the P.O. as
line items that document the quantity and dollar value of each P/N.
• The Gov’t Property Site Coordinator shall receive copies of all shipping
documents and put them to record.
•The Property Identification Tag Certification & Asset Consignment Form
is used for fabricated or purchased tooling/equipment. Labels will be sent
with instructions for attaching the ID labels.
•The Certification Form is signed and returned to Sourcing and a copy
is forwarded to Property Management. A legible photo of the tool with
part number and U.S. Gov’t markings visible.
ALL CONSIGNED PROPERTY SHALL BE RETURNED TO HONEYWELL OR DISPOSITIONED IN PLACE PRIOR TO THE
P.O. BEING CLOSED.
Transfers
•When the property is transferred from one Supplier to another, Sourcing
must ensure that the receiving Supplier has the appropriate facilities to
control and maintain the property.
•If the receiving Supplier has never had consigned property Sourcing
shall follow Pre-Procurement and Consignment Procedures.
•The Gov’t Property Site Coordinator shall coordinate all matters involving
transfer of Supplier consigned property between contracts, contract
closeout, and use of property procurement on one contract for use on
another.
Evaluation of Subcontractors
•Gov’t Property Site Coordinator is responsible for performing a survey
of Sub Contractors including performing Proper clauses and flow down
reviews, onsite or limited survey results, inventory accuracy and overall
risk assessments at a minimum of biannually.
Evaluation of Subcontractors
(Risk Assessment)
•Risks assessments must be performed to determine whether a
Supplier requires an on-site visit (high risk), limit survey/self
assessment (
or no survey (low risk).
•The Supplier Surveillance Risk Assessment Tool should be utilized
•to determine level of risk and type of survey . This is based on the following:
1.
2.
3.
4.
5.
Type, quantity and value of property in the Supplier’s possession
Type of subcontract and risk-of-loss provisions contained therein
Established policies, procedures, precedence and past performance
Non-responses to inventory/system survey certification
Discrepancies or losses reported during inventory certification.
Evaluation of Sub Contractors
(Sub Contractor Surveillance)
•Full Surveillance requires a Honeywell Representative to perform an
on-site Supplier Survey with a 100% Physical Inventory
• Limited surveillance may be utilized with Suppliers who have
demonstrated sound property management practices. Limited
Surveillance permits the Supplier to perform a self-assessment
utilizing the Honeywell Supplier Surveillance Form.
•No surveillance indicates that the Supplier is not required to complete
a Supplier self-assessment.
•The Gov’t Property Site Coordinator prepares the a Supplier
Correspondence package consisting of a Letter of Notification and
instructions, a current list of Gov’t property at the Suppliers and the
Supplier Surveillance Form.
Sites have the option of delegating Supplier
Surveillance to HIA (Source Inspectors)
to perform either limited surveillance or Supplier
onsite Surveillance when required. This could be
cost effective especially where HTSI technical
specialists perform routine source inspections
at Suppliers in their area.
Questions or Discussions?