Protecting Your Property
Management System and
Its Most Valuable Asset –
YOU
Keith C. Record
Session Objectives
• 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.
What is a System
• “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 Property Management
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 an Asset?
• “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
You are the most valuable 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
How well is your property
management system protected?
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?
Business Continuity Plan (BCP)
• “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
BCP Alternate Process Matrix
Timeband
Bldg OK,
Partial
Entire
No System Facility or
Facility
Access
System
Destroyed
Availability
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
1g, 2g, 3j
1f, 2f, 3i
1f, 2f, 3i
Third
Party
Out
• Each number/letter corresponds to an action
step written below the matrix
• Each organization/function fills out a matrix
Business Continuity Plan
• 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.
A Major Threat -- Pandemic
• 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?
BCP Alternate Process Matrix Addition
Timeband
Bldg
Partial
Entire
OK, No Facility or
Facility
System
System
Destroyed
Access Availability
Third
Party
Out
Employee
Vacancy
1 Day
1a, 2a, 3a
1a, 2a, 3a
1b, 2b, 3b
1a, 2a, 3a
1b, 2b, 3b
5-10 Days
1c, 2c, 3c
1c, 2c, 3c
1d, 2d, 3d
1c, 2c, 3c
1d, 2d, 3d
1-4 Weeks
1c, 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
How Secure is Your Data?
• 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 accurate are your bids and
budgets?
• 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?
Summary
• 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
Questions or Comments?
Please Contact:
Keith C. Record, CPPM
Property Administrator
L-3 Communications
(801) 594-2594
Keith.C.Record@l-3com.com