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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DoD Concerns
Assets
(Financial World)
Inventory/OM&S
PP&E
Real Property
Personal Property
Land
Internal Use
Software
Facilities
Equipment
Buildings
Structures
Linear
Military
Equipment
General Purpose
Equipment
Repairables
Consumables
2017: DoD audit readiness goal!
Assets
Inventory/OM&S
PP&E
Real Property
Personal Property
Land
Internal Use
Software
Facilities
Equipment
Buildings
Structures
Linear
Military
Equipment
General Purpose
Equipment
Repairables
Consumables
Distilled into four (4) types under
the Federal Acquisition Regulation
Assets
Personal Property
1
Equipment
Special Tooling
For Repair
2
Special Test Equip.
3
Material
4
For “Use”
1. Equipment (for use or repair)
2. Special Tooling
3. Special Test Equipment
4. Material
4 types of contract property
Cost of an Airplane
The Airframe is the price on the contract
The engines
provided as GFE
from a different
contractor
GFE parts
requisitioned
from DLA
CAP transferred from
Developmental
Contract
Cost of Care
Output: Image for Clinical Review
Repair Parts/
Special Tooling
Network Switches
Network
Acquisition Devices
Network
Gateway
Maintenance
Monitoring
System
Network
Switches
 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 between
the clauses, the DoD policy, and the
system 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 of
the “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 Recommended
Step 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 Villagracia
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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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