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MSA-1605307A R1 Attachment 1

of 9

FY16 1

CHPRC Contractor Personal

Property Management Balanced Scorecard Report

FY2016

MSA-1605307A R1 Attachment 2 Page 1 of 12

FY16 2

Introduction/Background The Department of Energy (DOE) Contractor Personal Property Management Balanced Score Card (BSC) is a functional component of the Departmental business systems performance measurement and management program issued by the DOE Procurement Executive on October 1, 1997. The BSC is structured to provide a reliable, credible and documented self-assessment evaluation of contractor personal property management systems Department-wide. In order to achieve Department-wide consistency, this review and assessment program is based on the personal property policies, standards, and practices outlined in DOE Order 580.1A, Chg. 1 Department of Energy Personal Property Management Program, and its Contractor Requirements Document (CRD), which is included in the Mission Support Alliance Contract. The FY 2016 BSC assesses contractor performance in the following two perspective areas:

1. Internal Business Perspective

2. Financial Business Perspective

The FY 2016 objectives, performance measures, targets, and results for each of these perspectives are provided on the following pages.


FY16 3

Internal Business Perspective (Performance Objective #1, Performance Measure #1)

OBJECTIVE MEASURE NATIONAL TARGET

Performance Objective #1: PROPERTY MANAGEMENT ACCOUNTING AND CONTROL - INVENTORY RESULTS/LOSS, DAMAGE AND DESTRUCTION REPORT (LDDR)

Performance Measure #1: Percentage of the following property types subject to physical inventory located during inventory, by item and by cost: • Accountable/Capital

Property Items by 100% wall to wall inventory

• Sensitive/HRPP Items by Population

Property Accuracy Type: Target: Accountable 98% Sensitive 100% Capital 100% HRPP graded

approach

Exceeded Target: CHPRC completes 100% inventories for Accountable, Other Accountable, Capital, and High Risk property annually.

Item Accuracy Equipment, Accountable and High Risk

Equipment Accountable Capital High Risk DOE Target 98.00% 98.00% 100.00% 100.00% Item Accuracy 99.34% 99.28% 97.73% 100.00%

80.00%82.00%84.00%86.00%88.00%90.00%92.00%94.00%96.00%98.00%

100.00%

Equipment Accountable Capital High Risk


FY16 4

Cost Accuracy Equipment, Accountable and High Risk

Equipment Accountable Capital High Risk DOE Target 98.00% 98.00% 100.00% 100.00% Cost Accuracy 98.69% 99.11% 94.51% 100.00%

Due to personnel and facility access issues beyond the control of CHPRC Property, 17 line items of property remain to be verified for the FY2016 100% physical inventory. These items have been consistently inventoried in all previous annual inventories, and CHPRC is confident that the items will be accounted for at the earliest opportunity. With that said, CHPRC has met or exceeded the DOE target in 3 of the 4 categories measured. CHPRC expects to reach the 100% DOE target for Capital items prior to 2016 calendar year end.

80.00%

82.00%

84.00%

86.00%

88.00%

90.00%

92.00%

94.00%

96.00%

98.00%

100.00%

Equipment Accountable Capital High Risk


FY16 5



Performance Objective #2: Personal Management Property Accounting and Control – Property Identification

Performance Measure #1: Measures for sensitive/high risk items, the reporting and recording in the property system within fifteen (15) days after receipt for any sensitive item/high risk acquired by new purchase, acquisition via card purchase, excess acquisition or any other means.

Property Accuracy Type: Target: Sensitive/ High Risk 100%

CHPRC Property does not include any sensitive items and did not procure any High Risk Property in 2016.


FY16 6



Performance Objective #2: Personal Management Property Accounting and Control – Property Identification

Performance Measure #2: Measures for equipment items, the reporting and recording in the property system within thirty (30) days after receipt for any equipment item acquired by new purchase, excess acquisition or other means, to include P-Card.

Property Accuracy Type: Target: Other Accountable 98%

Exceeded Target: In FY16, CHPRC added 40 Equipment property records to the property system. 0 of 40 records resulting in a 100% success rate exceeding the 98% goal. DOE Target 98% Property Type Items >30 Days Accuracy Accountable/Equipment 40 0 100%

80%

82%

84%

86%

88%

90%

92%

94%

96%

98%

100%

DOE Target Accountable/Equipment


FY16 7

Financial Business Perspective (Performance Objective #1, Performance Measure #2)


Performance Objective #1: Property Management Utilization Excellence

Performance Measure #2: Measures the extent to which property assets are utilized through the effective redeployment and use of internal excess property and external excess acquisitions to meet contractor mission requirements.

Recording of total original acquisition cost of property redeployed and/or acquired from excess.

Met Target - FY16: Reutilized Redeployment of internal Assets valued at $1,701,307.04 to excess, Other Hanford Contractors and DOE Agencies. Reutilized Redeployment: Declaration of Excess: $ 1,088,825.00 SF122’s (to other DOE offices) $ 104,736.74 Inter-Contractor Transfer Order (to other Hanford Contractors) $ 507,745.30


FY16 8



Performance Objective #2: Property Management Program Improvements

Performance Measure #1: Measures the property management system improvements that are implemented through a variety of processes, including internal self-assessments, benchmarking efforts, lessons learned or related programs. This includes any system improvements resulting more effective use or upgrade of computer technology - software and/or hardware.

At least every two years, the property management system or a component is evaluated and improved, as needed.

Met Target: CHPRC held two Property rep meetings in FY2016 and a similar training session with CHPRC Procurement. The benefit of the CHPRC Property Representatives’ group meetings include offering continuous emphasis on commitments, goals and objectives, process improvement, continuing education and teamwork environment outside of routine day distractions. FY2017 will continue to focus on these objectives as well as provide training in relevant topics and a continued process for sharing and understanding lessons learned.

CHPRC conducted one new assessment in FY2016, which was completed in August 2016. This continuous improvement assessment was to review the current CHPRC property tagging matrix and the proposed clarification statements. The assessment determined that the proposed changes would be effective in explaining the application of the property tagging matrix.

CHPRC participated in a number of continuous improvement initiatives including a collaborative DOE and prime contractor realty and property value engineering study on the data quality of various realty/property management databases. Data quality management will be a continued focus area in FY2017. It is expected that initiatives will commence on identifying, validating, and, if necessary, correcting data within the various realty/property management database tools.

In FY2016, CHPRC F&PM completed work with MSA Fleet Management to develop an automated function that notifies CHPRC when an equipment status is changed in the Vehicle Fleet Management (VFM) system. The VFM system was modified to include an automated email to a central mailbox that CHPRC F&PM uses to validate data accuracy between VFM and the Sunflower Asset Management System. CHPRC F&PM will commence with quarterly reviews of the database information and provide MSA with any known data inaccuracies.

In addition, CHPRC Facilities & Property Management was audited by KPMG. The results of our audit indicate that, except for the findings noted in the audit report, CH2MHill Plateau Remediation Company’s property management system and practices are in substantial compliance with the applicable FAR, DEAR, CAS, contract terms and conditions, and other applicable laws and regulations, and are acceptable for managing and controlling Government property. Alignment including general agreement the findings were continuous improvement and not compliance issues, was reached.


FY16 9

CHPRC updated Property Management procedure, effective date of the update was November 21, 2016. PRC-PRO-PMT-52772 - Property Management Procedure Appendix A – Property Tagging Matrix was updated to include clarification of the noted statement “Any property item that is designated and/or intended to be used in a standalone capacity and is not part of a larger system, >$10k tag”. A footnote was added stating: Example 1- existing HVAC system not working, vendor contract initiated to replace circuit board cost $6500. Tagging required? – NO (cost less than $10k, and part of larger syst.) Example 2- existing HVAC system not working, vendor contract initiated to replace compressor. Compressor cost $12,500. Tagging required? – NO (part of existing larger system) Example 3- vendor contract initiated to add HVAC system to non-climate controlled building. HVAC cost $25,000. Tagging required? – YES (stand-alone equipment, greater than $10k)” Example 4 – Excavator jaw-sets cannot be utilized in a stand-alone mode without the processor, even though the cost may exceed $10k. The Jaw-sets (contact working component) are an integral element to the excavator processor, and with a <2 year life expectancy are considered consumable, whereas the processor (excavator tool extension) may exceed the life expectancy of the excavator. If unable to determine if asset(s) meet tagging requirement, contact F&PM at ^CHPRC Property Management for guidance. CHPRC completed a Work Site Assessment further confirming that the tagging matrix was well understood by the property community. The updated procedure included the following embellishments in addition to those mentioned above.

1) Added notation in Section 3.4.7 –“F&PM will monitor progress of all transfers based on log book entry. Any transactions not completed within 60 days of control number issuance subject to cancellation. In event transfer cancelled, F&PM will contact both releasing and receiving organizations for re-issue instructions”.

2) Added new Step in Section 3.8 – Excess of Property Management Procedure; “MONITOR excess progress. If excess not processed within 30 days of issuance of control number, F&PM will contact originator for status and cancel if necessary, and re-issue if Project requests extension”.

3) Clarification to section 3.2 “Official Use Standards for Government Motor Vehicles” ride home/drop off transportation to a personal residence.

4) Embellished vehicle repair section of Procedure by adding a new Section 3.4.2.1 “Maintenance and Repair of Government Vehicles/Equipment”. The PRC J.3 Matrix, Interface 38, states that MSA will “perform vehicle and equipment repair and modification services as required” for the Hanford site. Clarified CHPRC does not perform routine preventative maintenance on fleet equipment. When a new piece of equipment is acquired, MSA Fleet Services establishes the maintenance baseline/ schedules/ frequencies in the VFM database based on manufacture’s recommendations. This process is carried out throughout the life cycle of the equipment. Once the equipment and other accountable property is delivered on site, MSA will send out notices to the CHPRC Project Manager or Custodian for the scheduled maintenance. It is the CHPRC Project Manager or Custodian’s responsibility to arrange transportation of the equipment to MSA and arrange for pick-up or return to the Project. Additionally added clarification for recently added RCCC 324/610/ERDF projects. CHPRC performs vehicle and equipment repair and modification services as required either by self-performing or utilization of third-party service providers. CHPRC Transportation Services establishes the maintenance baseline, schedules, and/or frequencies in the VFM database based on minimum service frequencies. CHPRC Transportation Services will send notices to the designated manager for the scheduled maintenance. Updated Section 3.4.3.h “Controlled


FY16 10

Substances, Hypodermic Needles, Syringes and Potable Alcohol” clarification to management and physically controlled items. b) Potable Alcohol is a high proof alcohol that is drinkable. Liquors such as Everclear fit in this category. Often potable alcohol is used for cleaning items such as pipes, where regular alcohol or denatured alcohol would be harmful if ingested. Potable Alcohol IS a controlled substance. c) Denatured alcohol, also called methylated spirits, is ethanol that has additives to make it poisonous, extremely bad tasting, foul smelling or nauseating, to discourage recreational consumption. In some cases it is also dyed. Denatured alcohol is NOT a controlled substance and is not subject to extraordinary controls.

5) Updated Section 3.4.5 “Marking, Tagging, and Identification of Property” to clarify MSA shall provide for delivery of inventory items to on-Site locations managed by other contractors. MSA performs all property quality control verification and affixes the applicable tags based on CHPRC’ s Property Tagging Matrix, Appendix A of the Property Management Procedure, at the MSA receiving dock, in the field or at the MSA fleet warehouse.

6) Embellished Section 3.4.7.b “External Transfers to Other Offices, Contractors, and Other Federal Agencies “, to include ICTO or SF-122 forms are completed for all external and PC Nationalization transfer of property. Once the ICTO form (Site Form A-6004-893) is completed, it must be signed by the Releasing Manager, Receiving Manager, and CHPRC F&PM. If a SF-122 form is used to document the transfer, both the Receiving and Releasing DOE OPMO must approve and sign the form. For transferred property, it is the responsibility of the Receiving Organization to: (1) arrange for transportation of the property and (2) update SAMS to reflect the change in custody and location.

7) Embellished Section 3.8 “Disposal of Excess Property” to clarify occurs when CHPRC no longer needs the property and/or it is deemed excess. CHPRC will initiate the excess process by completing a Declaration of Excess (DOE) form and obtaining a Document Control Number from CHPRC F&PM. Once the DOE form (Site Form A-6004-825) is completed, CHPRC F&PM will sign the form indicating the DOE form is complete. It is the Project Manager’s responsibility to arrange for the transportation of property to the excess receiving area (MSA Excess Lot). All CHPRC disposal of surplus property is processed through the MSA. MSA is responsible for: (1) signing the DOE form confirming receipt of the property and (2) updating the SAMS to reflect the property has been excessed. MSA will forward CHPRC F&PM a copy of the completed DOE form.


Page 10 of 12

FY16 11



Performance Objective #3: Property Disposal

Performance Measure #1: Measures the amount of property made available as excess and transferred to another entity, which can be measured by either acquisition cost or number of items excessed and transferred.

90% of the five (5) year average i.e. (0.90) Times (Amount of Property Excessed for Last 5 Years Divided by 5)

Reference MSA Balanced Score Card


Page 11 of 12

FY16 12



Performance Objective #3: Property Disposal

Performance Measure #2: Measures the percent of property sold within 60 days of being offered for sale by the contractor.

90% of sales items are sold within 60 days of being offered for sale internally.

CHPRC does not perform any sales of surplus property.


Page 12 of 12

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