Status of Aerospace Industries Association Government

Property Systems Committee

Terry Marcinko Asst. VP, Acquisition Policy, AIAChair – Tamra Zahn, CPPA

Vice Chair – Pam McFarland, CPPM

NPMA NES, Orlando, FL July 29, 2013

Participants

Participants:

AIA at a Glance• The Premier Aerospace and Defense Association

– Founded in 1919 to represent aerospace and defense manufacturers– More than 152 full members/230 associate members– Led by a Board of Governors – Comprised of the Chief Executive

Officers of our members

• Business Areas– Defense/Homeland Security (includes cyber security)– Space– Civil Aviation– Acquisition Policy– Communications– International Affairs– Legislative– Technical Operations– Supplier Management

AIA at a Glance• Procurement & Finance Council

• Executive Committee• Procurement Techniques• Legal • Intellectual Property• Government Property Systems• Cost Principles• Cash Flow Advisory

• Chief Financial Officers Council• Aerospace & Defense Controllers

AIA at a Glance• Issues Covering

– Acquisition Policy

– International

– National security

– Space & Civil Aviation

• Establishes industry goals and strategies • Committed to consensus on all issues

– Priority for total membership

– Promotes free and open discussion

– Ensures all views are heard.

AIA Update• Contractor Compensation Caps

• Counterfeit Parts

• Conflict Minerals

• Sequestration

AIA website http://www.aia.aerospace.org

Government Property Systems Committee

• Responsible for activities, laws, and regulations affecting facilities and property (both contractor and government) of member companies.

• Name Change: Government Property Systems Committee to better emphasize our important role as one of DoDs 6 Business Systems.

AIA GPS Committee

• Meets face to face quarterly to work on relevant hot issues– Meet with DCMA leadership– Strong corporate community representation

across industry

• Bi-weekly telecoms to status issues in process

Current Committee News

• Actively involved with providing input for the Industry UID Registry Requirements

• Responsible for providing comments to proposed DFARS and FAR Cases

• Provided comments on the DCMA new CAR policy• Open discussion on the BSR Guidebook IFB 308• Open discussion on PCARSS and Transfer of

Accountability capability

UID Highlights

CAR Policy Highlights• Incorporates Property Management CARs into

process• If contractor self-identifies deficiencies, and is

working to a CAP, CAR should not be issued• Industry & Government have raised concerns on

issuance of CARs at Subcontractors– Meetings held between Industry & Government – Possible Working Group to be created between

Government & Industry to address concerns

Industry Leading Practices

ILP

Customary Commercial

PracticeBest Practice

Aerospace Industries Association ILPs

Aerospace Industries Association - Industry Leading Practices

Version 1.0.2 – 6/8/12

51 ILPs published

Subcontractor Terms & Conditions Guideline

http://www.aia-aerospace.org/resource_center/resources/property_management_etools/

NEW

Industry Leading Practice Performance Outcome - Subcontractor Control

SubcommitteeChair – Michelle HinderksMembers – Major subcontractors

2/2012 6/2012 1/2013

Reviewed prime contractors’ requirements

• Outdated• Above regulations• Members- prime contractors joined

Survey distributed to GPM committee

members

ILP 5-06 PO Property Management

T&C

7/1/2013

4/2012

Responses due

Analyze survey responses• Develop draft standardized T&Cs• Congruent with FAR 52.245-1 flow

down requirements

Presented to PMC

PMC much discussion and many revisions

Industry Leading Practice#5-06

COMPANY XYZ

PURCHASE ORDER TERMS AND CONDITIONS

(PROPERTY MANAGEMENT)

1. Title

2. Processes and Procedures

3. Oversight

4. Special Tooling, Special Test

Equipment and Equipment

5. Records

6. Identification and Tagging

7. Excess and Residual Property

8. Reporting

9. Access

10. Additional Buyer Requirements

DOD Working Group

• Continuous Support to Ensure Win-Win– Meetings Supported:

• May 2012• June 2012• January 2013• May 2013

• Accomplishments:– Mitigate Additional On-Site Reviews “just to collect data”

• Partnered with OSD P&EP for Data Elements Required for APSR

– Phased Approach for New UII/Non-UII Reporting– Enhanced Use of PCARSS:

• Update UID Registry for Disposals• Utilize as Contract Transfer Vehicle - in process – Tom Ruckdaschel POC

DOD Working Group

• Still to come– Tying it all together

• Query GP software suppliers– Define data flow to Government UII database– Standardize requirements and data fields– Determine cost to implement– Determine timeframe to compliance

DFARS 2013-D016•Limitation on Use of Cost Type Contracts•06/05/2013 DARC received Systems Acquisition Cmte draft interim DFARS rule. Will discuss draft interim DFARS rule on 6/19/2013.

DFARS 2013-D006 •Approval of Rental Waiver Requests•05/29/2013 DAR editor sent draft final DFARS rule to OIRA. OIRA reviewing. Rcd comments from OIRA [OFPP] on 5/30; forwarded to CM for resolution. Responded to OIRA comments on 6/14.

DFARS Update

DFARS 2012-D055 •Detection and Avoidance of Counterfeit Electronic Parts•05/16/2013 Published proposed DFARS rule in Federal Register (78FR 28780). Public comment period ends 07/15/2013.

DFARS 2012-D042•Business Systems Compliance•05/08/2013 Case on hold at the direction of DARC Deputy.

DFARS 2011-D055•Item Unique Identifier Update•08/29/2012 DARC Director tasked Contract Placement Cmte. to draft final DFARS rule. Report due 10/3/2012. Report Due extended to 6/19/2013.

DFARS Update

FAR Updates

2013-013 Flowdown of GP Liability•05/13/13 Case closed without action..

Breakout SessionsMon, 7/29

1. Counterfeit Parts @ 1:15 – Pam, Kathy, & Marlene

2. Case Study on Material Adjustments @ 2:30 – Tamra, Rich, Russ

Tues, 7/30

3. How Much Are Your Capital Assets Really Costing You? @ 9:00 – Brandon

4. New Asset Mgt Professionals – A Panel Discussion @ 1:00 – Wayne

5. Acquisition of Property Under an MMAS System @ 2:45 – Rich, Wayne

Wed, 7/31

6. Reconciling Asset Accountability & Auditability: The Property Mgrs. Role & Responsibility @ 1:00 – Marsha

7. AIA Panel Discussion on Subcontractor Liability @ 2:15 – Wayne, Brandon, Pam

AIA Property Management eTools

AIA website http://www.aia.aerospace.org

AIA website http://www.aia.aerospace.org

Questions?