2013 npma fall conference value through professional asset management disposition process best...
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2013 NPMA Fall ConferenceValue Through Professional Asset Management
Disposition Process Best Practices
Marcia Whitson, CPPM CF
Cheri Cross, CPPM CFNovember 14, 2013
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Disposal Affects Everyone
End-User / Custodian• Want it gone!
Laborer’s / Material Clerks / Transporters• Minimize loads• Ensure it is not hazardous or dangerous
Disposal Personnel• What is it?• Is it contaminated, hazardous, special?
Management / Company / Agency• Keep COSTS low!
2
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Where are Costs?
Manpower • Time and effort
Material & Equipment• Material for excess preparation• Transportation
Cost of Risks
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Let’s review these Costs further…
Manpower • End-User
Preparing item for disposal – Required forms, reviews, surveys– Removing data or hazardous items
• Laborer/Transporter Picking-up item and loading onto vehicle Transporting to central location for disposal
• Disposal personnel Reviewing items Screening and documentation for re-utilization, donation or
transfer Preparing for and conducting sales
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Let’s review these Costs further… Material and Equipment
• End-User – Must set aside an area for excess items Increased control of accountable items
• Laborer/Transporter Material handling and personal protective equipment Vehicle for transportation
• Disposal personnel Office equipment Packaging materials (tie-downs, skids, boxes) Material handling equipment (hoists, forklifts, pallet
jacks)
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Let’s review these Costs further…
Cost of Risks• Release of hazardous or contaminated items• Release of data (PII, classified, proprietary, etc.)• Release of export-controlled items• Personnel injuries handling excess items• Public injuries while onsite (inspections, sales, etc.)• Items stolen, misappropriated or lost• Public perception issues
2013 NPMA Fall ConferenceValue Through Professional Asset Management
National Security
2013 NPMA Fall ConferenceValue Through Professional Asset Management
2013 NPMA Fall ConferenceValue Through Professional Asset Management
2013 NPMA Fall ConferenceValue Through Professional Asset Management
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Where is the balance to minimize both risks and costs?
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Automate Excess = Real Savings
2013 NPMA Fall ConferenceValue Through Professional Asset Management
2013 NPMA Fall ConferenceValue Through Professional Asset Management
2013 NPMA Fall ConferenceValue Through Professional Asset Management
How Can You Increase Your Excess Process Savings? Online, user-friendly form Immediate feed back to end-user for additional actions
required prior to excessing Automatic notifications to other groups with required actions
(IT, Radcon, pick-up, etc.) Immediate inclusion to reuse program (Prop Shop) Movement and tracking of items is barcode driven
• Transfer of custodianship upon pick-up• Barcode utilized by Disposal personnel throughout
process
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Understanding the Value of Reuse Maximum return on investment – 100%+
• Prevents new procurements• Saves resources involved in property disposal
(movement, sanitization, documentation, etc.) Immediate availability Provides excellent opportunities for staff with
funding shortages Shows management how Property Management is
“value added” Re-use is internal and external
TREMENDOUS COST SAVINGS
TO YOUR ORGANIZATION
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Do you have a Reuse Program?
Two critical steps:• Partner with Procurement Organization - Meet with your
Procurement Director and propose that internal procedures direct staff to consider excess property prior to purchasing new items
• User-friendly system for listing and searching internal excess
Automated/on-line screening system Periodic listing posted/advertised/e-mailed Encourage reuse from Excess Warehouse
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Prop Shop
Automatically populated with excess items.
Easy, thorough search engine to find items.
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Sufficient information for the potential user.
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Property records updated automatically when items are selected for re-use
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Reuse System/Database Auto Populate - Automated input of excess into a re-use system
(e.g., Prop Shop) saves effort Power search engine - Allows potential users to search for
needed items and see pertinent information about the item (description, model, current location, owner, phone)
Auto Transfer – The ability to claim the excess item and generate an automatic transfer to new custodian
Stats – Automatically capturing reuse statistics for reporting purposes
How Can You Increase Your Reuse Savings?
2013 NPMA Fall ConferenceValue Through Professional Asset Management
How Can You Increase Your Reuse Savings?
• Double Handling – If item is re-used, it is transported to the new owner immediately, eliminating transportation to a central warehouse then to the ultimate recipient.
• Fewer Clearance Reviews – By staying in the company, there
may be less requirements for release, such as surveys, and reviews.
MATERIALS & EQUIPMENT
Disposal cost low – Asset value high
LESS RISK
• Release Concerns – Since item is not being released to the public a decrease in accidental releases of hazardous, data, or other issues.
• Cost for Disposal – Tremendous savings on cost of disposal.
2013 NPMA Fall ConferenceValue Through Professional Asset Management
How do you handle Donations/Transfers?
• Prevents new procurements for recipient May save tax dollars and / or public funding May provide opportunity to disposition items which
are of a special concern (e.g., export-controlled items)
Excellent PR opportunity for your company and agency – Community Relations
TREMENDOUS COST SAVINGS
TO OTHER ORGANIZATIONS
2013 NPMA Fall ConferenceValue Through Professional Asset Management
How Can You Increase Your Donation/Transfer Savings?
Implement Screening Days – Targeting specific days for screening allows staff to focus efforts
Automate Selection – implement a barcode driven excessing process - like bridal selections at Target
Automate Processing – Downloaded data can be automatically processed through final disposition and generate necessary forms for approval
Statistics - Utilize statistics to report to management and for PR purposes
REMEMBER! Transfers can be incoming also!
2013 NPMA Fall ConferenceValue Through Professional Asset Management
EXAMPLE AUTOMATED FORM
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Do You Use Trade-Ins and Exchange-Sales?
Exchange/sale involves one of the following:
• Exchange (Trade-In) - exchange of an item that is “owned” to a vendor for monetary allowance (credit) towards a similar item
• Exchange/Sale - selling an item and using the proceeds to obtain a similar item
2013 NPMA Fall ConferenceValue Through Professional Asset Management
How Can You Increase Your Trade-In Savings?
Excellent form of disposal and investment recovery for items that have special concerns or limited market use (little commercial value)
Vendor may offer more on a trade-in when a new item is being purchased
Ability to reduce profit margin
Established market for used equipment
2013 NPMA Fall ConferenceValue Through Professional Asset Management
How Can You Increase Exchange-Sales Savings?
Basically, perform a sale of property using any established, authorized method
Proceeds are segregated and utilized for replacement property
For Federal and Contractor sites, replacement property must be obtained in the same or next FY
An excellent way to improve your equipment at less cost, such as newer vehicles.
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Increase Savings Using Recycling Contracts
Excellent form of disposal/investment recovery for items that have special concerns or a limited market use (little commercial value)
Vendors that are selling an item to a company may have some flexibility in pricing and can offer more for the trade-in than would be gained in sales.
Less risk, as these vendors know this equipment and understand it’s characteristics.
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Other Types of Sales
Live Auctions
Silent Auctions
Internet Sales
Negotiated Sales
Sealed-Bid Sales
2013 NPMA Fall ConferenceValue Through Professional Asset Management
How to Determine Type of Sale
Type of property Quantity Condition Market Area Location of property Transportation
requirements and handling costs relative to value
Cost of preparing and conducting sale
Past sales experience Time and space
constraints Cost of sale versus
anticipated proceeds
2013 NPMA Fall ConferenceValue Through Professional Asset Management
Feel free to contact us with your questions!
Marcia D. Whitson, CPPM CF
(865) 241-5120
Cheri L. Cross, CPPM CF
(865) 574-6046