property4 the property professional volume 28, issue 4 national president marcia whitson, cppm, cf...

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ISSN-1072-2858

08.2016VOL 28 ISSUE 4

PROPERTYP R O F E S S I O N A L

T H E

FEATURED IN THIS ISSUE

Why Does the Construction Industry Need More Asset Management Professionals?

Mobile Technology: It's Not Just For Inventory Anymore!

Federal Personal Property Disposal

Asset Componentization: What Makes Up the Whole?

WHY WE CONTROL

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Entire contents © Copyright 2016 by the National Property Management Association, Inc. All

rights reserved. Reproduction of the contents of The Property Professional in whole or in part by

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authors are the sole responsibility of the contributors and do not imply an opinion on the part

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C O N T E N T S

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SPECIAL FEATURES

08 Why Does the Construction Industry Need More Asset

Management Professionals?

BY DANIELLE LYONS, CPPS, LOS ANGELES CHAPTER

10 Mobile Technology: It's Not Just for Inventory Anymore!

BY CHRISTOPHER J. CAMPBELL, CPPS, LOS ANGELES CHAPTER

20 Federal Personal Property Disposal

BY DAVID ROBBINS, CPPM, FEDERAL CENTER CHAPTER

24 Asset Componentization: What Makes Up the Whole?

BY KEN BLACK, CPPM, AUSTIN CHAPTER

REGULAR FEATURES

04 National President’s Column

05 Editor’s Column

07 Special Interest Groups

13 Puzzle Challenge

27 #AssetManagement – Trending Now –

"Adoption of the Internet of Things (IOT)"

29 Ask the Expert

INDUSTRY CHATTER

06 Nervous Times in the Defense Business

07 Department of Defense Audit Readiness

18 DOD Fears Foreign Intrusions to Supplier Networks

19 Aerospace and Defense Industry Vital

to U.S. Economy

31 Complacency in Combat Logistics

EDUCATION

19 NPMA's Asset Management Certification Program

30 September and October Course Schedule

ADVERTISERS

02 AssetSmart

06 GP Consultants

17 NPMA FES

18 Metalcraft

28 NPMA NES

32 Sunflower Systems

Why We Control AssetsBelow the Capital Threshold14

COVER STORY

BY GARY C. QUINN, CPPM, AUSTIN CHAPTER

4 THE PROPERTY PROFESSIONAL VOLUME 28, ISSUE 4

NATIONAL PRESIDENT MARCIA WHITSON, CPPM, CF

The practice of “mentoring” can be traced back to ancient history. This dynamic of the teacher/coach to the student/mentee can be very challenging and varied on degree of success. This success or failure is directly linked to the openness, willingness and respect of the Mentor and Mentee. Wikipedia discusses some mentoring techniques that I would like to explore with you.

MENTORING TECHNIQUES:1. Accompanying: making a commitment in a caring way, which involves taking part in the

learning process side-by-side with the learner. * *Challenges to this Technique: To work side-by-side with a mentee can be a serious time

commitment. The mentor would need to fully understand what the mentee is doing or will be doing in the future. The mentee must be willing to open up and listen to the teaching and advice of the mentor.

2. Sowing: mentors are often confronted with the difficulty of preparing the learner before they are ready to change. Sowing is necessary when you know that what you say may not be understood or even acceptable to learners at first but will make sense and have value to the mentee when the situation requires it. *

*Challenges to this Technique: Selling or convincing someone of an idea or truth they can’t yet understand is very challenging. This takes a leap of faith on the part of the mentee to learn and remember things which are not understood nor yet provable. The Mentor has to carefully weigh in future unknowns that may impact what is being taught. Teaching the mentee how to carefully evaluate situations they face and then apply principles they have previously learned would be key in this situation.

3. Catalyzing: when change reaches a critical level of pressure, learning can escalate. Here the mentor chooses to plunge the learner right into change, provoking a different way of thinking, a change in identity or a re-ordering of values. *

*Challenges to this Technique: Hopefully before those pressure or critical times hit, there has been several learning opportunities. If not, this is the time to provide the mentee very specific support, even if it comes from someone other than then Mentor. Most Mentor’s come with not only valuable knowledge and experience, but extensive networking contacts.

4. Showing: this is making something understandable, or using your own example to demonstrate a skill or activity. You show what you are talking about, you show by your own behavior. *

*Challenges to this Technique: This is the most valuable technique used by the mentor, however how do you match the knowledge and experience exactly to the needs of the mentee? Mentors truly are committed to help other, and it is sometimes difficult for them to step back and say they are not the best fit for the mentee. Also the mentee becomes discouraged when they are not learning useful things from the wrong mentor for them.

5. Harvesting: here the mentor focuses on “picking the ripe fruit”: it is usually used to create awareness of what was learned by experience and to draw conclusions. The key questions here are: “What have you learned?”, “How useful is it?” *

*Challenges to this Technique: A long term mentoring relationship is valuable; this gives the mentor the opportunity to evaluate the value of their mentoring. Keeping a relationship with the mentee, even if you have asked others to step in the key mentoring role; provides an opportunity to plan for future needs of the mentee.

The NPMA Consulting Fellows, a group of the most experienced Property Professionals in our Association, are committed to offering to our members a robust Mentorship program. Under the excellent leadership of Pam McFarland, CPPM, CF, this program is being delivered. Watch for information at this year’s NES, and on our website. Sometimes the most valuable opportunities we have are free for the taking. Don’t miss your opportunity.

This success or failure is directly linked to the openness, willingness and respect of the Mentor and Mentee.”

‘‘

THE VALUES OF A MENTOR

WWW.NPMA.ORG 5

Like most non-profit organizations, NPMA relies on volunteers for a wide variety of projects. While NPMA does have a small dedicated staff, there are countless tasks and projects that are done by volunteers.

At the Chapter, Region and National level, volunteers are needed to serve in elected leadership positions, as Directors, and on various committees. The NPMA Special Interest Groups (SIGs) need Chairs to lead the groups, volunteers to come up with continuing education opportunities and individuals to review the discussion boards and respond to questions that are posted. The time commitment for these positions can vary from a few months to 2 years (or more!)

Our certification programs also utilize volunteers to keep the program relevant and ensure that content is valuable to the industry. From SMEs who help write and review the content of the certification manuals and exam questions, to those who volunteer as exam proctors and CPPM exam graders, and the members of the NPMA Certification Governing Board, the NPMA Certification Program requires assistance from a large group of dedicated individuals who believe in the program.

Another area in which NPMA relies on volunteers is this very magazine! All of our authors take time from their busy schedules to write articles to share their knowledge with other members. Our editors work tirelessly to ensure this outstanding member benefit hits your mailboxes every 2 months.

Have you been in the industry for a number of years? Then we need your expertise! Share your time and talents with others to ensure those coming after you, both in the industry and in NPMA, can benefit from all the knowledge you possess. Are you new to the industry? Great! You bring a fresh set of eyes to the table and can provide new perspectives. Whether you run for an elected position, volunteer for a committee, write an article for The Property Professional or answer a question in one of the SIG forums, you are helping to ensure NPMA meets its mission to “advance the profession of Asset Management through leadership in education, standards, compliance and certifications.”

As you can see, NPMA is such a great organization because of our dedicated volunteers. Take some time to thank your Chapter, Region and National level volunteers – it is because of them that you are able to take advantage of all NPMA has to offer!

This issue starts out with “Why Does the Construction Industry Need More Asset Management Professionals?" by Danielle Lyons, CPPS, and “Mobile Technology: It’s Not Just for Inventory Anymore!" by Christopher J. Campbell, CPPS. Our last two features are “Federal Personal Property Disposal" by David Robbins, CPPM, and “Asset Componentization: What Makes Up the Whole?" by Ken Black, CPPM. And in the middle is our cover story, "Why We Control Assets Below the Capital Threshold" by our Central Region VP, Gary C. Quinn, CPPM.

We present Volume 28 Issue 4 of The Property Professional.

VOLUNTEERS - OUR MEMBERS MAKE A DIFFERENCE!

PRODUCTION EDITOR JENNIFER SANFORD

C O N T A C T U S

NPMA NATIONAL OFFICE

3525 Piedmont Rd, Building 5, Suite 300 Atlanta, GA 30305 Tel: 404-477-5811 Fax: 404-240-0998

NPMA NATIONAL OFFICE STAFF

ME PROGRAM MANAGER: Jennifer (Jen) Sanford [email protected] AND MARKETING SENIOR COORDINATOR: Jessie Palmer [email protected] AND EDUCATION SPECIALIST: Lisa Golden [email protected]: Tenez Quarles [email protected] & FLEET CERTIFICATION SPECIALIST: Emily Rhodes [email protected]

THE PROPERTY PROFESSIONAL EDITORIAL TEAM

NATIONAL EDITOR: Billie Jo Perchla, CPPM, CF [email protected] EDITOR: Betsy Tucker, [email protected] EMERITUS: Dr. Douglas Goetz, CPPM, CF [email protected] REGION EDITOR: Barbara Bays, CPPM [email protected] REGION EDITOR: Toby V. Bell, CPPM [email protected] REGION EDITOR: Keith Record, CPPM keith.c.record@L-3com

NPMA EXECUTIVE BOARD

NATIONAL PRESIDENT: Marcia Whitson, CPPM, CFTel: 865-947-3047 [email protected] VICE PRESIDENT: Cinda Brockman, CPPM, CFTel: 858-361-4270 [email protected] PAST PRESIDENT: Cheri Cross, CPPM, CF Tel: 865-574-6046 [email protected] PRESIDENT ADMINISTRATION: Ivonne Bachar, CPPM, CFTel: 650-723-9095 [email protected] PRESIDENT CERTIFICATION: Rosanne (Beth) Green, CPPM, CFTel: 321-751-9014 [email protected] PRESIDENT COMMUNICATIONS AND MARKETING: Jessica Dzara, CPPM, CF Tel: 703-400-3170 [email protected] PRESIDENT FINANCE: Brandon Kriner, CPPM, CFTel: 310-813-4566 [email protected] PRESIDENT MEMBERSHIP: Ken Black, CPPM Tel: 512-416-2312, [email protected] PRESIDENT PARLIAMENTARY PROCEDURES: Dr. Douglas Goetz, CPPM, CF Tel: 937-306-8372 [email protected] PRESIDENT PROFESSIONAL DEVELOPMENT: Cathy Seltzer, CPPM, CFTel: 703-227-2530 [email protected] VICE PRESIDENT CENTRAL REGION: Gary Quinn, CPPMTel: 575-415-3299 [email protected] PRESIDENT EASTERN REGION: Tara Miller, CPPM, CFTel: 321-867-8910 [email protected] PRESIDENT WESTERN REGION: Robert Kaehler, CPPSTel: 925-209-0944 [email protected]

NATIONAL DIRECTORS

AWARDS PROGRAM AND COMMUNICATIONS: Kimberly Saeger, CPPS CERTIFICATION: Iris Thompson, CPPM, CF CERTIFICATION GOVERNING BOARD CHAIR: William Beedle, CPPM, CFCHAPTER SUPPORT – EDUCATION: Kathy Baker, CPPACOUNCIL OF FELLOWS: Pam McFarland, CPPM, CFFOUNDATION ADMINISTRATOR: Raam Vichare, CPPM, CF GROWTH & RETENTION: Sarah WiebensonHISTORICAL ARCHIVES: Nancy Chapman, CPPM, CFJOB AWARENESS: Marlene Lynn, CPPM, CFMARKETING - CHAPTER GROWTH: Matthew Hatam, CPPS MARKETING - SOCIAL MEDIA: Angel Rosario SEMINARS: Mike Showers, CPPMSPECIAL INTEREST GROUPS: Cheri Cross, CPPM, CF


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A May 9, 2016 article written by Sandra I. Erwin posted at National

DEFENSE, concludes that these are nervous times in the defense

business.

Speaking to a room of government contractors recently at an

event organized by the consulting firm BDO USA, defense officials

commented on the changing times and enforcement of government

compliance initiatives on contractors. Contrary to industry perception,

government overseers are not hammers looking for nails, said Deputy

General Counsel for Contractor Responsibility at the Department

of the Air Force Rodney A. Grandon. Grandon made a case that

contractor policing is changing. The emphasis is not on trying to

rack up the numbers of suspensions and debarments, he said, but

on working preemptively with companies to make sure they have

vigorous ethics and compliance programs.

Robert Craig, managing director of government contracting

advisory services at BDO USA, said industry executives appreciate

the collegial tone and positive message of these senior government

officials. But noted that the business climate is much chillier in day-

to-day contracting operations. Enforcement agencies are under

pressure from Congress to show that contractors are being punished

for misconduct. And auditors constantly have to prove they are

challenging vendors over every penny of questionable spending billed

under government contracts.

The full article can be found at: www.nationaldefensemagazine.org/

blog/Lists/Posts/Post.aspx?ID=2172

NERVOUS TIMES IN THE DEFENSE BUSINESS

WWW.NPMA.ORG 7

SPECIAL INTEREST GROUPS (SIGS)

SPOTLIGHT ON THE

The State & Local Government SIG provides the largest networking forum of agency peers exploring the latest voluntary consensus standards, best practices, financial considerations and operational efficiencies associated with property acquired and used by state and local government agencies.

This dynamic group also hosts a variety of webinars that are free, convenient and provide the opportunity to learn from NPMA subject matter experts. What else could you want?

To join the State & Local Government SIG and review discussion forum topics, visit our website http://www.npma.org/group/State-Local-Govt.

NPMA SIGs provide valuable professional connections to:

• Share common interests,• Participate in discussions,• Tap into knowledge and expertise,• Research solutions, and• Learn about or share issues, trends

and best practices.Joining is voluntary and free to NPMA

members, and you may belong to as many SIGs as you want. To view and join an NPMA Special Interest Group (SIG) and participate in the online forums, go to http://www.npma.org and follow the link to the SIG pages via the Groups tab. There you will also find instructions on how to access the online forums.

SPOTLIGHT ON THE STATE & LOCAL GOVERNMENT SIG

GotQUESTIONS?

Start

today!Join NPMA SIGs to be part of a professional community that advances knowledge, as well as leadership, and provides the tools, resources, and opportunities to enhance and support your professional performance.

JOIN NPMA SIGS

S I G SAND THEIR CHAIRPERSONS

CONTRACT PROPERTY

Carolynn Bundy, CPPM, CF

and Shawn Megaw, CPPM, CF

DOE/NNSA & CONTRACTORS

Cheri Cross, CPPM, CF

EXCESS PROPERTY & DISPOSITION

David Robbins, CPPS

FEDERAL PROPERTY MANAGEMENT

Angela Cooper, CPPM

FLEET MANAGEMENT

Russ Johnson

HOSPITALS & MEDICAL FACILITIES

Norman Pugh-Newby, CPPM, CF

NASA & CONTRACTORS

Marjorie Jackson, CPPM

PROPERTY INVENTORY MANAGEMENT

Brian Ross, CPPS

STATE & LOCAL GOVERNEMENT

Patti Eldred, CPPA

SUBCONTRACTOR-HELD PROPERTY

Niki Milsaps, CPPM and

Terri Snook, CPPM, CF

UID

Pat Jacklets, CPPM, CF

and Dan Tully, CPPM

UNIVERSITY, COLLEGE & OTHER NON-PROFITS

Frank Gonazelz, CPPM, CF

and Rick Dillard, CPPM

DEPARTMENT OF DEFENSE AUDIT READINESS

On May 26, 2016, the U.S. Government

Accountability Office released

report GAO-16-383, DOD Financial

Management: Greater Visibility Needed

to Better Assess Audit Readiness for

Property, Plant, and Equipment. The

report addresses the reported status

of DOD’s and the military services

audit readiness assertions for Property,

Plant and Equipment (PP&E) asset

accountability and plans for valuing

PP&E assets.

The report was conducted because

while the Department of Defense

(DOD) has been required to prepare

audited financial statements since

1997, long-standing and pervasive

financial management weaknesses have

precluded DOD from being auditable.

The National Defense Authorization Act

(NDAA) for Fiscal Year 2010 mandated

that DOD develop and maintain a plan

that includes actions needed to ensure

that consolidated financial statements

are audit ready by September 30, 2017.

The NDAA for 2015 was accompanied by

a Senate report including a provision for

GAO to review DOD’s plans to achieve

audit readiness with respects to

its PP&E.

The full report can be found at:

www.gao.gov/products/GAO-16-383


WHY DOES THE CONSTRUCTION INDUSTRY NEED MORE ASSET MANAGEMENT PROFESSIONALS?

By Danielle Lyons, CPPS, Los Angeles Chapter

NOV-15 DEC-15 JAN-16 FEB-16 MAR-16 TOTALS

Private: Non Residential 34,432 33,166 29,836 30,488 31,911 159,833

Public: State & Local 21,907 19,206 16,693 17,148 18,161 93,115

Public: Federal 1,834 1,876 1,587 1,773 1,721 8,791

(numbers in millions) Totals: 58,173 54,248 48,116 49,409 51,793 261,739

The answers are simple, really: to reduce costs and better maintain equipment, therefore optimizing the life of construction projects. I’ve witnessed this first hand throughout my career in construction.

About a year ago, as frightening and unnerving as it was to leave the comforts of a known profession, I embarked on a career change from the Construction Industry to the Asset Management Industry. Anyone who knows anything about construction knows that there are many overlapping functions between the two professions, so it wasn’t as though I was entering a totally new career path without any experience. I had, essentially, been functioning as an Asset Manager for several years on a large scale construction project, so thought I might have some idea of what I was doing. But that didn’t stop me from asking myself if I was crazy to be considering such a change, especially after spending over 15 years in my career.

I rapidly learned that this was one of the best decisions I could have made for myself personally and professionally. What I also learned, which was the impetus for scribing this article, is that the construction industry has a huge deficit in focus on asset management, where it should be a primary focus. Simply put … the construction industry could use more asset management professionals.

CONSTRUCTION COSTS IN THE UNITED STATESi

WWW.NPMA.ORG 9

How can asset management best practices bring value to construction? Let’s look at one relevant, common example. When constructing a new building, the Owner allocates money for new construction or renovation and one or more contracts are issued. Throughout the construction process, the Owner pays for the end product in increments as the project reaches specific milestones. The end product is made up of numerous purchased assets but the Owner is only delivered the building with very little information about the assets or components of that building. But what is the magnitude of this method of delivery and why is it important?

LET’S TAKE A LOOK AT NUMBERSMillions of dollars are spent on construction annually. According

to the Census Bureau $261,730MM was spent on construction in the U.S. from November 2015 – March 2016 (See chart on facing page). While this number reflects total construction cost, a generally accepted percentage of costs spent on non-fixed furniture, fixtures and equipment (FF&E) would be about 15%. Therefore an approximate amount spent on potentially trackable assets in a five month period in the U.S. is $40,000,000. An even larger amount would be represented by fixed assets such as mechanical equipment.

WHY IS THIS SUCH A BIG DEAL? At project construction close-out the Owner is typically

handed a paper binder which includes the following: warranty information for equipment, owner and operational manuals among other construction documentation. Guess where that binder goes. On someone’s shelf in an office to be lost in the shuffle of paper. Technologies such as Building Information Modeling (BIM) are slowly changing this process for fixed assets, however, this technology is still a long way from becoming industry standard, and requires a large amount of change management in an industry that has been paper driven for a very long time.

What is the owner typically NOT given at building turn over? Costs for each piece of equipment and the asset’s recommended useful life, electronic documentation for each asset, or a consolidated list of assets in the building including fixed and non-fixed assets. Ideally this list could include the following: equipment itemization; warranty expiration dates for each piece; required and special maintenance schedules; special requirements (such as if only approved vendors can maintain equipment); purchase information (asset value and purchase information for warranty calls); asset location; and other asset details.

Why is this important for the Owner? Having all this information allows an Owner to do the following: properly maintain their assets; depreciate capital assets appropriately; track sustainable building elements; and perform replacement projections and repair vs. replace analysis. It also allows owners to effectively manage scheduled and preventative maintenance activities on assets. Leaving all of this valuable information in a binder--or as is more often the case, not providing it at all--results in reactive repairs instead of proactive maintenance, which ends up increasing the overall expense for the Owner.

HOW DO WE FIX THE PROBLEM?The construction industry could benefit from turning detailed

asset information over to Owners and by implementing industry best practices to better track their assets. By involving asset

management professionals in the entire project lifecycle, starting with the bidding process through delivery, contractors will have the knowledge necessary to reduce construction waste and better prepare their customer to maintain their purchase for its optimal life. Assets need to be tracked and maintained, and no one knows more about a building going into service than the general contractor who built it.

INNOVATIONS AND PROGRESSThere are quite a few firms making waves in the asset tracking

market. United Rentals is one that uses GPS tracking on their equipment and developed their own software in conjunction with tracking to determine equipment utilization when on-site. The end result is that they can communicate with their customers about the operating inefficiencies during construction with regard to rental equipment. By analyzing utilization metrics and communicating with customers, United Rentals can manage maintenance and rental projections more efficiently.

Other firms are starting to realize the importance of tracking assets and tools during the construction process and are utilizing programs such as AssetZone and AllTrak. RFID technology is used for check-in and check-out, and asset management practices allow contractors to manage cost, utilization, maintenance and eventually asset retirement. Contractors who effectively manage their assets can generally see a large return on big ticket items such as heavy equipment when disposed of in a surplus transaction. Companies who track their assets tend to see less down time due to broken equipment since their scheduled services and maintenance are tracked and performed more frequently.

While there are some firms that are embracing the concept of asset management in the construction industry, they are few and far between considering the millions of dollars that are spent on construction nationwide. Now that I’ve had the opportunity to witness the benefits that solid asset management practices can bring to any industry, I realize how inadequate, or even non-existent, such practices are in an industry where I spent the majority of my career. The focus in construction is getting the job done (i.e. getting the thing built) as quickly and economically as possible. There is far too little focus on how asset management can positively influence these outcomes, and improve the overall health and sustainability of a construction project over the long term. The bottom line is that good asset management allows firms to be more productive, thus more profitable.

ENDNOTE:

i https://www.census.gov/construction/c30/c30index.html

ABOUT THE AUTHOR:

Danielle Lyons, CPPS, is the President of the Los Angeles Chapter of NPMA. Danielle spent over 15 years in the Construction Industry, where she managed large-scale construction projects, before recently switching her focus to asset management. Danielle is an experienced professional as well as a seasoned triathlete who brings a competitive spirit to all she does.


INTRODUCTION / EXECUTIVE SUMMARYAsset management has always been a job largely performed from

a distance. Cheery folks working in cushy office environments diligently keep records, slice and dice mountains of data into impressive-looking reports and charts, and make key business decisions all day long. In doing so the asset managers are relying almost entirely upon tangled webs of paperwork, spreadsheets, emails and other secondhand information pushed or pulled from other parts of the organization. Meanwhile, out there in the real world of sprawling factories, far-flung remote operations, and global supply-chain networks, assets are being acquired or disposed of, moved around, utilized, broken and repaired at a breakneck pace.

Despite our wishful thinking and the IT department’s promises, it’s a safe bet the Property Professionals and management systems in the back office are not truly connected to the front lines where the real asset action takes place. Property Professionals are routinely required to act upon unverifiable, potentially outdated, secondhand information (at best). Sure, I got that emailed move document saying someone was moving a critical test system from lab 6 to lab 14, but how do I really know it’s in lab 14? That nothing was left behind and nothing extra was disturbed? And that it hasn’t been moved yet again? That lab is 900 miles from here!

Clearly, any asset management process would benefit from tapping-into real-world activities in real-time and close proximity to the actual assets affected. The most effective asset management

MOBILE TECHNOLOGY:IT’S NOT JUST FOR INVENTORY ANYMORE!

By Christopher J. Campbell, CPPS, Los Angeles Chapter

WWW.NPMA.ORG 11

processes and systems encourage and enable the participation of the folks actually using and supporting the property that supports the organization’s mission. In the 1990’s and 2000’s the rapid onset of PC, client/server and web-based software made sophisticated applications much more approachable and affordable to stakeholders beyond the Property Management Office. It became practical to adopt this more progressive management vision. However, increasingly today, our “everyone is an asset manager” credo faces a huge challenge: Global geographic dispersion.

The first type of dispersion is one we have all seen increasing for years, which is that the assets we manage seem to be getting more dispersed physically. As large corporations integrate operations internally as well as extend and optimize supply-chains to specialized vendors or areas of plentiful resources around the world, the result can be hundreds or thousands of smaller satellite locations with personnel and assets the company needs to manage.

Second, workers today are increasingly doing business away from a conventional office, lab or factory and instead are either venturing out in the field frequently or are permanent ‘virtual workers’ with no traditional assigned workplace. Two people, for instance, originally edited this article, on three different devices across at least five locations including a backyard and an airplane. That is professional life today – 2015 estimates indicate over 60% of the U.S. workforce is working “on the move” at least some of the time and this is increasing – a massive surge from around 15% in 2011, and IDC predicts this ratio to near 75% (105 million workers) by 2020.i

Workers today are swimming in technology in their personal lives, and increasingly expect mobile IT support for their jobs. Many people routinely switch between multiple desktop and mobile computing devices depending on the type and location of their work tasks. American workers have on average three network-connectable devices and this is trending upwards. Yet in many organizations, the IT organization is playing catch-up and does not yet have a meaningful mobile capability or strategy.

Mobile devices - specifically cellular phones but tablets as well - have become extremely powerful, sophisticated, secure, portable, and affordable. The release of the first truly mass-market smartphone – the first Apple iPhone in 2007 – is acknowledged as the tipping point.

Today, tens of millions of smartphones and tablets are sold monthly totaling around $400 billion in annual salesii. The devices on the market today have performance that rivals supercomputers and mainframes from the past era, incredibly crisp screens with amazing multi-media capabilities, accurate GPS navigation, great battery life – and easily fit in one’s pocket.

MOBILE TECHNOLOGY PRIMERWe are in the midst of a “perfect storm” of complementary

technologies that are sufficiently available, reliable, secure and user-friendly to be useful for business applications. Before exploring some asset management uses for them, here is a brief explanation of some key enabling mobile technologies.

CLASSES OF MOBILE DEVICESDistinctions between classes have blurred but generally

recognized flavors of mobile devices applicable to business IT uses include:

Laptop PCsA general-purpose computer typically has a physical keyboard, a

clamshell case design, large (10-17”) screen and battery, desktop-class hardware, and desktop-class multi-user/multi-tasking operating system with software such as Windows 10 or Mac OS.

TabletsTablets are dominated by and operated via a mid-sized (6-11”)

touchscreen; nearly all are equipped with Wi-Fi radios but some also have cellular radios and are akin to extra-large smart phones that can even make phone calls. Most tablets also include one or two cameras as well as a Bluetooth radio.

Greater screen real estate facilitates multi-pane/window user interfaces and fit more menu selections and/or data onto a given screen legibly; therefore, tablets can be preferable to smaller smartphones for data-intensive applications such as gathering equipment maintenance details. Note that increasingly the same software apps run interchangeably on smartphones and tablets, and re-arrange their user interfaces to suit the screen size and orientation (portrait, landscape) being used.

Smartphones By now, everyone is familiar with the iPhone story and how

it led to a global explosion in mobile phone technology in 2007. However, did you know the first smartphone is widely recognized to be the IBM Simon announced in 1992, and the brick-sized “dumb” Motorola mobile phone dates back to 1973! Today there are massive and competitive global markets in mobile chipsets and components, actual phone handsets, operating systems, apps, and accessories.

Convertibles/HybridsAn interesting emerging category includes the Microsoft

Surface, iPad Pro and other designs where the keyboard can be detached or swiveled-around to morph the same unit from a tablet form into more of a traditional laptop form. Some of these also support a digital stylus and/or a pressure-sensitive touchscreen thereby enhancing handwriting and free-form drawing support. They are marketed as laptop replacements having the nice aspects of a tablet too, although some run tablet-specific software while others run regular PC type software.

Another one is the so-called “phablet,” slang for an exceedingly large phone such as the Samsung Galaxy Note family with a screen over 6” thereby encroaching on the tablet category and going beyond pocket-sized.

APPLICATIONS FOR MOBILE TECHNOLOGY IN ASSET MANAGEMENT

Here are a couple of real-world scenarios with systems and processes that support some of these latest mobile technologies.

Dave is an instrumentation technician. He’s heading out to meet a customer at Edwards Air Force base to work on one of his company’s instrumentation systems today. His company’s service management system had scheduled this work order on his Exchange calendar a few days prior, so Waze (traffic and navigation App) dings an alert on his Galaxy phone that it is time to leave -- a bit earlier than usual due to extra traffic. Once at


Edwards, Dave signs onto the work order on his iPad, and reviews a write-up of the scope of work plus an engineering drawing of the current system configuration. Then he gets to work. Partway through and dripping in sweat, he needs to reference some third-party technical manuals but that is no problem – before coming, he had logged-into the VPN (virtual private network) from his home PC and copied them to his Dropbox folder. Dave retrieves the docs on his iPad within seconds via his cellular hotspot connection, and quickly reviews his email inbox too.

As he works, Dave takes several photos of his work on his smartphone, because he knows his boss will want to see visuals and they may help next time this complex system needs work. A few hours later, using his smartphone, he uploads the photos to the work order, signs-off the completed job and heads to lunch. Of course, the maintenance history and rack configuration changes also were updated in the asset records. Oh yes, for the customer Dave’s service activity counts as a free inventory-by-touch as well. Before Dave’s truck even leaves the parking lot, his company’s system also finishes emailing the customer contacts a notice of job completion, submits invoice data to Accounting, and updates Dave’s weekly timesheet.

While eating lunch and checking Facebook, a push notification appears on Dave’s smartphone and he recognizes it as an urgent customer equipment down alert. Mind you, no person had sent this alert – it came directly from a critical shop-floor machine that is self-monitoring and network-connected. He had left the iPad locked in the truck but no worry; he clicks the notification on his smartphone, which displays an urgent Work Request. Luckily, the client is on Dave’s way back from Edwards, in Santa Clarita. Dave touches the button acknowledging the Work Request, which causes the system to send an instant SMS (short message services) Text Message to alert his customer that he is on the way.

The customer site is a bit in the backcountry and Dave’s cell signal is shaky and drops once he goes indoors, but while on the job, he is able to continue updating records locally on the iPad since it has a local SQLite (Structured Query Language) database housing most of

the key info downloaded from the servers earlier. As soon as he gets back in network range, the iPad will automatically re-sync with the company servers. Today, that last syncing occurs at Starbucks where Dave stops for a well-needed breather and caffeine infusion before braving rush-hour traffic home.

OTHER MOBILE ASSET MANAGEMENT APPLICATIONS INCLUDE:

• Physical inventory (duh), especially of remote work sites or subcontractors without real-time connectivity back to the network, where “store and forward” mode can be used

• Simply looking up and/or editing any types of asset data• Utilization and/or condition audits• Flagging and/or physically staging assets for closeout/

disposition• Adding items onto a shipment at its origin, capturing progress

updates, as well as confirming receipt at the destination including flagging of any exception line items

• Warehouse functions: Receive, issue, return, transfer, scrap• Cal/Maint/Depot functions: Receive items in or ship back

out, alert/dispatch technician on work order, sign on/off work order for labor hours collection, swap-out failed components in a machine/rack configuration

• Photo/video/audio: Document a machine problem, utilize photos to search for equipment

• Automated GPS directions to navigate to an equipment item, work order location, customer, subcontractor, etc.

• Displaying asset or other data overlaid onto a map or site plan• “Dock to desk” or “Desk to dock” package tracking• Logging calibrated tool/instrument utilization against end-

item products, necessary for full measurement chain traceability and accountability within the Quality Assurance process

• Handheld access to important documents: Policies, procedures, contract clauses, forms

SecurityInformation security must not be taken lightly these days, and

mobile devices add new dimensions to the challenge by widely dispersing potentially sensitive and valuable information across countless copies. Fortunately, well-established measures exist for encrypting data and limiting access to only individuals known to have permission and whose identity has been verified.

EncryptionWithout getting overly technical, encryption is a method of

protecting information confidentiality and integrity by encoding the data in such a way that it cannot be read by any person or program not having the matching “key.” In this form, the information looks like unintelligible gibberish. There are two critical ways in which encryption is used in the mobile arena: for data “at rest” stored locally within a device (contacts, emails and other records); and for data going across a network connection. (This is usually implemented via SSL – Secure Sockets Layer – a widely supported standard.)

Not all mobile apps or web sites/servers support encryption or SSL so this is an item to investigate carefully during product evaluations.

WWW.NPMA.ORG 13

Welcome to The Property Professional ‘‘Puzzle Challenge.’’ The use of puzzles are great for challenging the working mind in a fun and stimulating way. In this edition, we have given you a word match based on information taken from this issue. Take a look, consider the facts, rack your brain for some of those hidden answers, and good luck!

ANSWERS PAGE 26

TERMS

1. Enterprise Risk Management

2. Accompanying

3. Component

4. Add-ons

5. Catalyzing

6. Internet of Things (IoT)

7. Controlled Assets

Match the following terms to the appropriate definition:

DEFINITIONS

A Serves to form, compose, or make up a unit or a whole

B When change reaches a critical level of pressure, learning can escalate.

C The practice of protecting an organization from financial harm by identifying, analyzing, and controlling risk at the lowest possible cost.

D A commitment in a caring way, which involves taking part in the learning process side-by-side with the learner.*

E Items that are placed on inventory at an initial cost value of less than the capital dollar threshold.

F When uniquely identified objects with network connectivity transfer data over a network without requiring human-to- human or human-to-computer interaction.

G Items that are bought after the main asset was purchased and placed into service.

CONCLUSION

BENEFITS AND VALUE PROPOSITIONThere are obvious benefits in timeliness and accuracy of

information resulting from data collection taking place closer in time and proximity to a real-world asset-affecting event. Therefore, decisions based upon that information should be more timely and optimal as well.

Automated data collection via barcode scanners, RFID, location services, cameras and microphones as well as voice recognition and proprietary input devices will continue to supplant certain categories of manual (typed) input thereby saving huge amounts of time while reducing errors.

COSTS An enterprise-level mobile initiative can entail substantial

investment and recurring costs, so intelligent scoping/phasing, product selections and BYOD policies are vital. Wi-Fi infrastructure, handsets/tablets, cables and charging accessories etc., voice and data plan fees, server-side software, mobile software, loss/theft/breakage, and specialized IT support labor are among the key cost elements.

FUTURE VISIONWe have endeavored to describe the profoundly interconnected

world that we live in today and how some of the mobile tech we take for granted in our personal lives also can play a beneficial role in our work as Property Professionals. If your organization’s IT department is not providing or at least seriously discussing doing some of the things described herein for your asset management functions, then you will be well-advised to inquire about that or else risk being left in the dust.

REFERENCES:

i (www.idc.com/getdoc.jsp?containerId=prUS25705415 )ii (www.statista.com/statistics/237505/global-revenue-from-smartphones-

since-2008/)

ABOUT THE AUTHOR:

Christopher J. Campbell, CPPS, is the President and CEO of AssetSmart. His broad background includes more than twenty-five years of hands-on software engineering and support experience, in addition to management consulting and financial analysis expertise. He has held key roles with AssetSmart for more than twenty years and became the company's President in 2000. He now oversees all aspects of the company's day-to-day operations from the Calabasas headquarters. Mr. Campbell has helped to steer the technology direction of several generations of AssetSmart solutions across mainframe, mini-computer, client/server, web-based and mobile environments. Mr. Campbell earned a BA in Quantitative Economics and Decision Sciences from the University of California San Diego and has completed various continuing education courses at UCLA and the Stanford Graduate School of Business.


WHY WE CONTROL

BY GARY C. QUINN, CPPM, AUSTIN CHAPTER

For almost my entire career I was a control freak thinking that we had to control every asset that

was financially reportable or could possibly be sensitive in nature. As I approached retirement for

the second time, I began to realize how much money is wasted on creating inventory records and

inventorying unimportant assets over and over. Eventually, I saw that we were controlling more

unimportant assets than important ones. Why? Because many of us are control freaks (including

those writing regulatory documents and grants). I now believe that we should focus our efforts

and limited resources on what matters, and that the appropriate work units should do their job

(i.e. Information Resource Management controlling sensitive data and Physical Security controlling

equipment that could harm the public).

ASSETS BELOW THE CAPITAL THRESHOLD

WWW.NPMA.ORG 15

Is there value added to the organization in sending an inventory team once a year to scan the tag of a $300 computer?

Does an annual inventory “control” provide any sense of security for an asset?

If we tag and conduct inventory of assets below the capital dollar threshold, then what does that threshold really tell us?

What is the cost to the organization of controlling “low dollar value” assets?

How do assets below the capital dollar threshold get on the inventory in the first place?

1) Federal, state or organizational guidelines may require certain items be tracked regardless of cost or at a cost above a certain dollar value but below the capital threshold.

2) A contract may require certain items be tracked regardless of cost.

3) A grant may specify that certain items purchased or used on the grant be tracked during the active grant process and/ or that certain items purchased with grant money has specified disposition instructions at a later date.

4) The low cost item may be used to store sensitive data (personal information, proprietary data of the organization, data with restricted access, etc.).

5) Loss of the asset could result in a danger to the public or loss of credibility to the organization.

Examples of the assets that the government or organization consider “sensitive” and desire to have tracked on inventory are weapons, sensitive equipment like state of the art military or communication devices, items that protect health and safety, computers or computing devices that store sensitive data, and any other data storage device that may contain sensitive data.

While other “controls” may be placed on these types of assets, the norm has been to make sure they have an inventory tag on them, record them on the inventory system, and periodically inventory them to ensure that the items are still present and how often they are inventoried. And while additional controls may be placed on certain items by other departments (police, physical security or other internal departments), the burden for the proof of periodic presence has normally fallen on the property management department.

These assets may or may not be included on the financial records of the organization (usually only capital assets are tracked on financial records), but because they are placed on inventory at an initial cost value of less than the capital dollar threshold, they are referred to as “Controlled Assets.”

The common element assumed about all of the Controlled Assets placed on inventory is that Loss of one of these assets has “Risk” associated with it. The cost of the loss is deemed higher than the cost of the asset or the cost of controlling the asset. The cost of the loss may be financial, a loss of reputation to the organization, or result in negative press.

The American College Dictionary defines Risk as, “the exposure to the chance of injury or loss; a hazard or dangerous chance: to run risks.”

When analyzing risks and loss, it is important to understand the differences. The chart below contrasts the two terms to better understand how to deal with the risk of a loss.

Most large organizations have a full time trained and certified Risk Manager. Enterprise Risk Management involves the practice of protecting an organization from financial harm by identifying, analyzing, and controlling risk at the lowest possible cost. Property Managers have inherently become the Risk Managers for many organizations. Remember the saying that former NPMA President Mike Hay coined, “Property Management ain’t no big deal, until it’s a big deal, and then it’s a really big deal!”

Today’s Property Managers are:• Property Managers accounting for the assets on the books• Financial Managers getting the net book value of assets on

the property system to balance to the penny with the accounting records

• Risk Managers helping ensure that losses do not occurHow do “Controlled Assets” fit into the picture? They are the

assets that the organization is required to control or believes they need to control, even if they are not included on the financial statements, because their loss could pose a serious risk to the organization. Management believes the property team has a magical GPS on the assets and can find any asset any time because it has been placed on the inventory.

What is the real value of these controlled assets? For those that attended the 2001 National Educational Seminar in Houston and were present for Curtis Johnson’s presentation, he told an apropos story of the wisdom of Mother Goose: “For want of a nail, the shoe was lost, for want of the shoe the horse was lost, for want of the horse the rider was lost, for want of the rider the battle was lost, for want of the battle the Kingdom was lost, and all for the want of a nail.” So, what is the value of the nail? It tells us clearly that acquisition value does not reflect the value of an asset to the organization. Neither book value nor market value is any better. The value to the organization is based upon its present and future utility.

The example often used to describe the potential value of a loss to an organization can be summed up as follows: A laptop that cost $2,400 two years ago that has a life expectancy of 48 months and an expected residual value of $200 was lost. Accountants will go through their wicked mathematical process to determine a $1,200 net book value, and then the purchasing people can definitely pipe in to say that a replacement computer with the same capabilities would cost $1,850. That entire treatise is lost if one throws in the real concern that the laptop contained sensitive data that is estimated to cost $650,000 to mitigate.

WHY WE CONTROL RISK vs. LOSSLOSS

• Involves actual occurrences

• Changes can be made to avoid future losses

• Involve Current or Past Events

RISK• Involves Possibilities

• Managed to avoid Losses

• Involve Future Events


IF CONTROLLED ASSETS ARE “CONTROLLED,” WHAT DOES CONTROL MEAN?

• Property record created on an inventory system• Periodic Physical Inventory• Verification of Use• Security

OK, BUT WHO CARES IF THEY ARE LOW DOLLAR ITEMS NOT ON THE FINANCIAL RECORDS?

• Property personnel care because they are the lead for the inventory of the controlled assets

• If it is a data storage device storing sensitive data, the whole organization should care but the lead for the security of the data is usually the Information Resource staff, not the property team

• If the controlled item can harm others, again the whole organization should care but the lead for the security of that kind of controlled item is physical security, not the property team

According to Jerry Hanley of the U.S. Department of Energy in a 2007 ASTM magazine article, “Today, protecting IT assets is a top priority for organizational leadership because it is now recognized that failure to do so can result in litigation, the loss of proprietary or sensitive information, violation of statutory or regulatory requirements and perhaps most importantly, a negative impact on national security.” Wow! That was back in 2007, and we have all seen these results over and over again in the news headlines since then, because organizations did not appropriately secure data.

WHAT IS THE PROPERTY TEAM’S ROLE IN SECURING AN ORGANIZATIONS SENSITIVE DATA AND POTENTIALLY HARMFUL ASSETS?

• Placing the asset on inventory with location and identifying who is responsible for the asset

• Periodic inventory

DOES ANYONE BELIEVE THAT THOSE TWO TASKS PROVIDE SECURITY?

Apparently, because the Property Team is usually tasked to place those sensitive assets on inventory and inventory them. It is sad that higher management of many organizations believe this is the only security necessary for securing the data storage devices or other potentially harmful assets.

IT IS OBVIOUS THAT PLACING CONTROLLED ASSETS ON INVENTORY AND INVENTORYING THEM ONCE PER YEAR DOESN’T REALLY DO MUCH FOR THE ORGANIZATIONS RISK MANAGEMENT. WHAT DOES IT COST TO DO THIS MOSTLY UNHELPFUL TASK?

Let’s analyze a typical large state university as an example. The university has a capital asset threshold of $5,000 and requires “Controlled” assets with values under $5,000 to be placed on inventory if they are required by grant stipulations, federal or state regulations, or are deemed as the type of assets that might place the university at risk if lost. This controlled asset list includes weapons, data storage devices, and items costing less than $5,000 that could place the general public at health or safety risk if lost or stolen.

Data storage devices that could contain sensitive data and typically cost less than $5,000 are computers, Tablet computing devices, Smart Phones, printers, copiers and fax machines, compact

disks, digital video devices, and thumb drives. Many organizations only tag the computers and some of the tablets. All the other items are either required to be encrypted or not allowed to be used on campus.

The university has 50,000 total assets on inventory, but only 20,000 of them are capital (costing $5,000 or more). The 30,000 controlled assets consist of 28,000 computers, 750 smart phones and tablets, 350 weapons, and 900 other sensitive devices. Five thousand of the controlled assets are either kept off campus or carried by a faculty member. The Information Resources Department monitors computers that are declared to possibly store sensitive data (about 1,000 of the computers). The police department maintains control of all weapons (issued out and in to an arms room).

Three full time employees are charged with conducting an annual inventory. Inventorying 50,000 assets each year with 3 employees is nearly impossible. In fact, some decentralization (assistance from a few of the larger departments) is required to accomplish the mission. The inventory could be managed in a much better manner if only about half that many assets were inventoried.

WHAT SHOULD BE INVENTORIED? ITEMS THAT COULD BE HARMFUL TO THE UNIVERSITY!

• All 20,000 capital assets (the need for accurate financial reporting)

• The 350 weapons (assets that could harm the public if lost or stolen)

• The 900 sensitive items that could bring harm to the public if lost or stolen

• About 1,000 of the computers that contain sensitive dataPlacing the Controlled Assets on inventory records does not

secure the assets from loss or theft, but does provide a list of which ones are important, the location, and who is responsible for them.

WWW.NPMA.ORG 17

“BUT THAT ISN’T GONNA HAPPEN.” WHY? IT’S THE WAY WE HAVE ALWAYS DONE IT AND GOVERNMENT CONTRACTS AND GRANTS REQUIRE THE INVENTORYING OF MANY OF THE LOW DOLLAR ITEMS.

Twenty years ago we were accounting for everything (file cabinets, chairs, desks, coat and hat racks, printers, fax machines, etc.). Computers were tethered to the wall; there were no smart phones or tablets. Perhaps we need to once again change with the current times.

WHAT NEEDS TO HAPPEN?NPMA members need to educate management about the costs to

maintain accountability of assets that don’t need managing and be prepared to explain why low sensitive controlled assets should be deleted from inventory.

NPMA members need to educate regulatory bodies and grantors about the unnecessary additional accounting costs on low sensitive and cost items.

ABOUT THE AUTHOR:

Gary Quinn, CPPM, is currently retired from full time employment. He now lives in Alamogordo, New Mexico, and is a member of the Austin Chapter of NPMA. Gary has a degree in Accounting from Arizona State University and an MBA in Management from Golden Gate University in San Francisco. He spent his first 23 years after college in the U.S. Army as a logistician, retiring in 1995 when he went to work for Texas Department of Transportation in Austin, Texas. He became their Property Manager in 1999 and accepted a position at UT Southwestern Medical Center at Dallas in 2007 as their Manager of Inventory Control. He officially retired again in March 2014. Gary has been a member of NPMA since 1999. He has contributed leadership to NPMA as the Vice-President and President at the chapter level, Treasurer of Central Region, Director of State and Local Government and Director of Awards at the national level, and is currently the Vice President of Central Region. He has contributed as an instructor for certification training and testing, an author of the current NPMA Intermediate Studies Manual, and made presentations at the national educational seminars since 2001.

2016 Fall Education SeminarNovember 16 & 17 Sheraton Tucson Hotel & Suites Tucson, AZ

Register today!www.npmaconferences.org/fes

FEATURED EDUCATION TRACKS:

Government Contracts

University

Fleet Management


DOD FEARS FOREIGN INTRUSIONS TO SUPPLIER NETWORKS

The full article can be found at: www.nationaldefensemagazine.org/blog/Lists/Posts/Post.aspx?ID=2165

An April 25, 2016 article written by Sandra I. Erwin posted at National DEFENSE, expresses that cybersecurity for the supply chain is becoming a worrisome issue for the Defense Department.

Not only are there fears of conventional attacks against Pentagon suppliers that have access to secret data, but there is also uneasiness about more sophisticated types of espionage, such as the acquisition of American firms that do business with the military. This shines a light on how little control the Pentagon has over non-U.S. ownership of hundreds of corporations that may not be prime contractors or weapons manufacturers but still provide somewhat sensitive products and services to the military. The issue hits home with Gen. Paul Selva, who before his promotion to vice chairman was commander of U.S. Transportation Command, one of the military’s most frequent targets of cyber-attacks, and a command that is heavily reliant on the private sector.

According to officials, about 90 percent of Transcom’s activity takes place on commercial networks.

WWW.NPMA.ORG 19

NPMA’S ASSET MANAGMENT CERTIFICATION PROGRAM

BENEFITS:

> Key to enhanced professional stature> Expanded knowledge> Gain technical competence in property management> National professional recognition> Extensive peer-level communication

Certification Level Minimum Experience

Prerequisite Certification Renewal Period

CPPS Certified Professional Property Specialist None required None required Five years

CPPA Certified Professional Property Administrator Three years CPPS Five years

CPPM Certified Professional Property Manager Six years CPPA Five years

ENHANCE YOUR PROFESSIONAL STATURE BY ACHIEVING CERTIFICATION

Learn more at http://www.npma.org/certification

Certification training coursesare available through NPMA

Visit our website or call 404-477-5811to find the course that’s right for you.

LOOKOUT

According to a study commissioned by The Aerospace Industries Association, the American aerospace and defense industry is a vital component of the U.S. economy, not solely for the role the industry plays in national security, transportation and technological innovation, but also because its influence spans many sectors and every state. Study highlights conclude that in 2015 the U.S. aerospace and defense industry supported 1.7 million jobs, generated $300 billion in economic value, and provided tax receipts to federal, state and local governments of $63 billion.

A press release highlighting the study can be found at: http://www.aia-aerospace.org/news/aia_report_highlights_positive_economic_impact_of_aerospace_and_defense_industry/

AEROSPACE AND DEFENSE INDUSTRY

VITAL TO U.S. ECONOMY


FEDERALPERSONAL PROPERTYDISPOSAL By David Robbins, CPPM, Federal Center Chapter

Hamilton is a hit. And if we didn’t already know that, the recent achievement of 11 Tony awards sort of completed the coronation of Hamilton as today’s Broadway success. So, our founding fathers are cool again. But, if we don’t want to plan a trip to New York and buy tickets months in advance, or pay exorbitant resale ticket prices (some performances on StubHub

are offered at well over $2500), we have to find another aspect of our founding fathers to look at. So, did you know they were into property? Well, enough so that they even wrote it into the Constitution of the United States of America!

WWW.NPMA.ORG 21

ADHESIVES TO ZOOM LENSES …A. Abdominal Machine, Adapter Kit, Adhesive, Air Conditioner, Aircraft Parts, Alarms, All Terrain Vehicle, All Weather Coats, Aluminum,

Anchor, Antennas, Answering Machines

B. Baby Scale, Backhoes, Bakery Display Case, Ball Bearings, Band Saw, Bass Guitar, Basketball Hoops, Batteries, BDUs, Belts, Bicycles, Binoculars, Blankets, Boats, Bookcases, Bowling Balls, Bugle

C. Candy Baskets, Calculators, Camcorders, Cameras, Canteens, Carpets, Cash Registers, Ceiling Fan, Cell Phones, Centrifuge, Chairs, Computers, Copiers, Coveralls

D. Dehumidifiers, Dental Equipment, Desks, Detergent, Dishwasher, Drafting Supplies, Drill Press, Duffel Bags

E. Easel, Edger/Trimmer, Electron Tubes, En amel Paint, Engines, Envelopes, Exercise Bikes

F. Fans, Fax Machines, Fencing, Field Gear, File Cabinets, First Aid Kits, Floor Polishers, Food Service Equipment, Forklifts, Freezers, Fryers, Furniture

G. Gas Mask, Gas Detector, Gages, Gallery Equipment, Game System, Garbage Disposal, Gas Alarm, Gas Chromatograph, Gas Engine, Glass, Globe, Glove, Goggles, Graphics, Grill, Grinder, Guns, Guitar, Gyroscope

H. Hammer, Hand-held Radios, Hand Tools, Hand Truck, Hard Drive, Hardware, Headboards, Helmet, Horse, Hose, Hospital Beds, Household Goods, Hospital Equipment, Hub, Humidifier, Hutch Desk, Hydraulic Fluid

I. Ice Making Machine, Ignition Box, Illumination System, Infant Incubator, Infant Scale, Inflatable Boat, Inkjet, Inertial Navigation, Integration Hardware, Intercom Radio

J. Juke Box Autopilot, Jack, Jacket, Jet Ski, Jewelry, Jig Saw, Joy Stick, Jumpsuits

K. Kayak, Kettle Team Jacket, Key Equipment, Keyboard, Knobs

L. Lab Cart, Label Machine, Ladder, Laminator, Lamps, Landing Gear, Laptops, Laser Printers, Launcher, Law Books, Lawn Equipment, Lead, Lettering Machine, Life Pack, Lift, Locker, Lounge Chair

M. Microfiche Viewer, Mini-van, Monitors, Mower, Machine Gun, Magazine Dispenser, Magnesium Alloy, Magnet Wire, Manifold, Markers, Masks, Mattress, Measuring Equipment, Meat Cutter, Medical Equipment, Microscope, Microwave, Milling Machine, Mirrors, Miter Saw, Mixer, Modem, Monitors, Mowers, Musical Instruments

N. Nameplates, News Gathering System, Night Stand, Nintendo System, Nozzle, Nut

O. O-ring, Office Equipment, Ohmmeter, Oil Pump Assembly, Ophthalmoscope, Optical Equipment, Orthopedic Equipment, Oscillograph, Oscilloscope, Outboard Motor, Oven, Overalls

P. Pallet Jack, Peg Boards, Photographic Equipment, Picture Frames, Pressure Washer, Printers, Pacemaker, Packing Material, Pad, Paddle, Parachute, Pager, Paint, Pallet, Palm Pilot, Paper, Patio Chairs, Periscope, Photographic Equipment, Piano, Pictures, Pistol, Plate, Plotter, Plugs, Pole, Potato Peeler, Power Cords, Power Supply Assembly, Pressure Washer, Printers, Projection Equipment

Q. Quad Assembly, Quad Comparator, Quartz Crystal

R. Refrigerator, Rabbit Rack, Rack, Radar Set, Radiator, Radio, Rail, Reactor, Reader, Recorder, Relay, Remote Control Unit, Resistor, Retainer, Rings, Rivet, Robot, Rotor, Rowing Machine, Rhythm Processor

S. Shelving Storage, Sound Recording, Saddle, Safe, Safety Boot, Sander Belt, Satellite Dish, Saw, Scanner, Screw, Seal, Sewing Machine, Shelf, Shelter-tent, Shield, Shipping Case, Shock Absorber, Shovel, Simulator, Sleeping Bag, Speakers, Spectrometer, Storage Case, Stretcher, Surgical Equipment, Switch Assembly, Synthesizer

T. Tables, Telephones, Trucks, Tractor, Tabulating Paper, Tachometer, Tanks, Tape Drive, Television, Teletypewriter, Temperature Indicator, Tent, Textiles, Thermometer, Tires, Toner Cartridge, Tool Box, Torch, Towels, Tractor, Trailer, Transceiver, Transformer, Transistor, Transmission Set, Transmitter, Treadmill, Truck Lift

U. U. V. Exposure Unit, U-Tank, Ultrasonic Equipment, URO Pump, Utility Cart

V. Vacuum, Vail, Valve, Van, Vaporizer, VCR, Ventilator, Vest, Video Equipment, Vital Monitor, Vision System, Voltage

W. Washer, Walk-in Freezer, Wall Units, Water Fountain, Water Gage, Water Purification, Wattmeter, Waveguide Assembly, Wax Machine, Weather Computer, Weather Radar, Weight Set, Welding Machine, Wheel Chair, Windshield, Wire, Wooden Desk, Wood Burning Stove, Wool, WorkStation, Wrench

X. X-ray Equipment, Xylophone

Y. Yoke Assembly

Z. Zinc Anodes, Zip Drives, Zoom Lens


UTILIZATIONWhen items are no longer needed by an agency, they are

determined to be excess in accordance with Federal Management Regulation 102-36 and are reported to GSA for possible transfer to other Federal agencies. Government regulations mandate that Federal agencies, to the fullest extent practicable, use excess personal property as the first source of supply in meeting their requirements. Excess personal property is any personal property that is no longer required by the holding agency for the discharge of its responsibilities. Each year, hundreds of millions of taxpayer dollars are saved by managers who acquire excess property instead of purchasing new property.

In the Federal Disposal Program, we handle everything you may have or need, from A to Z, alphabetically, and everything in between … see page 21.

Savings are achieved because transfers between Federal agencies are normally made without charge for the property itself. Care, handling, and transportation are paid by the receiving agency. Occasionally, there is still depot excess stock, so its possible agencies might even be able to acquire brand new, unused equipment at no cost!!!!!!

So, how can you find excess property? GSAXcess® (www.gsaxcess.gov) is the screening program where excess property is offered for screening for Federal agencies and other authorized users to view available excess property and submit requests for property. Upon approval, GSAXcess® will generate the transfer order as well.

Of course, before excess property can be screened for reuse, GSA has to know it exists. This is the process of reporting excess property. Excess property is reported to GSA using either the GSAXcess® on line reporting function, by batch file transfer from your agency’s property system, or, as last option, by manually preparing an SF 120, Report of Excess Personal Property, and submitting it to the Personal Property Management Office responsible for the geographic area in which the property is physically located. All excess property is to be reported to GSA for utilization and donation screening.

The following organizations are eligible to obtain excess property:

• Federal agencies, including wholly-owned government corporations

• Cost-reimbursable government contractors • Federal cooperatives and project grantees • District of Columbia municipal government • Architect of the Capitol, U.S. Congress • Federal judicial agencies • Mixed-ownership corporations as defined in the Government

Corporation Act

DONATIONThe Federal Surplus Personal Property Donation Program

enables certain non-Federal organizations to obtain property that the Federal government no longer needs. Title 40 of the United States Code provides for the transfer of surplus personal property to State Agencies for Surplus Property (SASPs) for donation to eligible activities within the United States.

In accordance with the law, SASPs have been established by each state, the District of Columbia, Puerto Rico, the U.S. Virgin Islands,

We’re often told that property is never thought of in our agencies and companies, and that often seems to be the truth. But, our founding fathers thought enough about property to include it in the governing document for our new nation, which continues as our basic guideline even today. So, while the Federal Disposal Program, as a property management program, has evolved over time it can trace its roots all the way back to the Constitution of the United States of America.

Article IV, Section 3 of the Constitution, reads, in part, “The Congress shall have Power to dispose of and make all needful Rules and Regulations respecting the Territory or other Property belonging to the United States …” And Congress has passed laws establishing the basis of what we today recognize as the Federal Disposal Program. The most noteworthy of these laws is the Federal Property and Administrative Services Act of 1949, as amended (Property Act). This law established the U.S. General Services Administration (GSA) and authorizes the Administrator of General Services to transfer excess personal property, donate surplus personal property, sell surplus personal property, write regulations addressing these, exchange/sale, forfeited and lost property, and supervise and direct the disposal of surplus property. Pretty much, the Property Act established the parameters of the disposal program we have still today.

Details of those parameters, the guidelines by which we operate, are in the regulations written and issued by GSA, known as the Federal Management Regulation; these are codified in Title 41 of the Code of Federal Regulations at:

Subchapter B Personal PropertyChapter 102—Federal Management Regulation Part 102-35 Disposition of Personal Property Part 102-36 Disposition of Excess Personal Property Part 102-37 Donation of Surplus Personal Property Part 102-38 Sale of Personal Property Part 102-39 Replacement of Personal Property Pursuant to

the Exchange/Sale Authority Part 102-40 Utilization and Disposition of Personal Property

with Special Handling Requirements Part 102-41 Disposition of Seized, Forfeited, Voluntarily

Abandoned, and Unclaimed Personal Property Part 102-42 Utilization, Donation, and Disposal of Foreign

Gifts and DecorationsIn a nutshell, these are the services that GSA offers federal

agencies in the current Federal Disposal Program:Utilization - excess property is offered for reuse within theFederal government;Donation - surplus property is offered for use by state and localgovernments, eligible non-profit organizations, and more; andSales - remaining surplus property, exchange/sale property, andforfeited property are offered to the general public for sale.

Personal property that individual activities of the Federal government no longer need includes all types and categories of property except land or other real property, certain naval vessels, and records of the Federal government. It embraces such items as hand and machine tools, office machines and supplies, furniture, appliances, medical supplies, hardware, clothing, motor vehicles, boats, airplanes, construction equipment, textiles, communications and electronic equipment … and even sometimes animals.

WWW.NPMA.ORG 23

SALESUnlike utilization and donation, which are statutory and

regulatory programs mandated for all Federal agencies, the Federal agencies have a choice to have GSA act as their sales agent. There are a limited number of competing Sales Centers approved to sell personal property on behalf of agencies.

Public sale is the next step in the sequential disposal process. Property that remains available after the utilization and donation processes can be offered for public sale. Other property, such as exchange/sale and forfeited property, can be sold without going through the full, formal utilization and donation process.

So, again, almost anything the government uses, and sometimes even property it doesn’t use, can be offered to the general public for sales. Most GSA personal property sales are conducted through our online GSA AuctionsSM sales site, www.gsaauctions.gov. At this site, citizens can access property offered for sale, bid, and purchase … and even pay online.

Of course, Internet sales are not the only sales method available, but they are the predominant method of sale used today. At an agency’s request, we may still consider live auctions and sealed bid sales. We also use negotiated sales authority when the circumstances of the property or sale deserve such attention.

Employees in GSA’s Property Management Program are always dealing with the wide variety of property used by our customer agencies. Associates in the field, working directly with customer agencies reporting excess and exchange/sale property as well as utilization and donation customers, learn about the commodities most prevalent in their geographic areas. Our staff, unfortunately, does not have an opportunity to specialize in any one property category, but instead develops a broad range of commodity knowledge to assist all of their customers with all of their property management needs.

All within the program, we take great pride in the accomplishments of the Property Management Program. We have a direct impact on spending and taxpayer expenditures by furthering use of government property. And, when it can no longer be used, we directly see a return to the U.S. Department of the Treasury or to agencies who can recoup funds for continued operations. In the past few years, we have averaged over $1 billion in transfers of property to authorized users via utilization, donation, and Computers for Learning program transfers. And we have generated over $110 million in sales proceeds, with over 75% of these proceeds reimbursed to the owning agencies for authorized use.

The success and value of this important, but sometimes overlooked, program is recognized by our customers, large and small, day in and day out. Personal property disposal is not merely a disposal program; it is key to the agency’s logistics program and provides important benefits to each of us as taxpayers each and every day.

ABOUT THE AUTHOR:

David Robbins, CPPM, is the Director of the Office of Personal Property Management at the U.S. General Services Administration. David has over 35 years’ experience working with federal property and in his current position, David manages the Federal Disposal Program, supporting all agencies nationwide.

the Commonwealth of the Northern Mariana Islands, Guam and American Samoa to distribute surplus personal property. The SASPs advise applicants of eligibility requirements and procedures to be followed in acquiring Federal surplus personal property and of the conditions and restrictions placed on the property. Most SASPs operate on a self-sustaining basis and assess recipients a service charge to cover handling, transportation, and administrative expenses.

Clear title to donated property is not granted until a specified period of time has elapsed and the donee has fulfilled all Federal and state restrictions imposed on the property. Federal restrictions require that all property be placed into use by the donee within one year of acquisition and be used for at least one year thereafter. Additional requirements for usage before title passage, or restricting title passage, are in place for aircraft, firearms, foreign gifts, NASA artifacts, and vessels over 50 feet. Additionally, GSA has authority to place restrictions, as appropriate, on other property, as appropriate.

The major categories of eligible recipients are:• Public agencies • Non-profit educational and public health activities, including

programs for the homeless and/or impoverished• Non-profit and public programs for the elderly • Public airports • Educational activities of special interest to the Armed

Services • Veterans service organizationsGSA works closely with the SASPs to ensure that the maximum

amount of property is available to them for distribution within each state and territory, furthering the benefit to taxpayers from their investment in property.

The donation program is of great value to the states and the many active participants in the program. The savings to state and local governments are significant as is the contribution to the benefit and welfare of citizens throughout the nation. Although the dollar savings do not always sound significant, for many small communities, surplus property can be a real budget saver.


Sometimes trying to decipher a purchase request to find out what assets are in it can be very frustrating. Quite often, everything will be rolled up into one line on the request. Sometimes the opposite happens and you’ll get a request with a hundred or more lines. Well don’t let yourself get mired down determining all the pieces that make up a capitalized asset. Instead, take a logical approach when deciding if equipment, or other property, should be componentized and assigned individual numbers or if they should be rolled up as a single asset. Considerations must be given to the capitalization threshold, the independence of an item as well as its purpose.

Asset Componentization:

What Makes Upthe Whole?

By Ken Black, CPPM, Austin Chapter

WWW.NPMA.ORG 25

Considerations for componentizing real property are somewhat different and are determined by a combination of state, GASB, and federal rules. For example, if a state agency or institute of higher education in Texas receives federal funds for its programs, it must componentize buildings if their fair market value is $1 million or greater. All real property improvements must be valued per asset (building, facility, land, infrastructure), per project, per fiscal year. For example, the cost of a restroom renovation project that covers multiple buildings cannot be combined as a single asset. It must be broken down by building and component asset numbers will only be assigned if the threshold is met per each building’s renovation cost. When a total project cost meets the threshold and is for a single building, however, each component will be capitalized and receive an asset number. Property managers must ensure that construction contractors provide a statement of values that clearly identifies the project costs per building by asset class. Real property projects that replace an existing component with an item of the same quality or performance and do not increase the useful life or add value to the asset are considered maintenance and expensed.

Most asset management personnel are familiar with many types of property and equipment. A poorly written description on a purchase request, however, can leave us needing more information. Individual item descriptions, costs and functions are critical in determining if they will be componentized or not. The vendor quote is normally a better source for a complete break-down of the assets and systems being ordered. If the quote doesn’t clarify things, check with the staff in the requesting program that are familiar with the equipment. The bottom line is – don’t second guess!

Use the following tables as guides for determining if new assets should be componentized or not. They are based on all the considerations that were discussed so far. The process applies to all items being purchased that are part of a complete system including accessories. The cost of items not assigned asset numbers will be rolled into the main asset.

Before looking at actual examples, let’s define what a component is. One dictionary states that a component serves to form, compose, or make up a unit or a whole. Managing fixed assets fits in perfectly with that definition. There are many types and categories of assets that this applies to. The following table lists the most common categories and we will look at several of them in this article. How to handle replacement components will also be covered.

The first thing to consider is the capitalized threshold and the rule is simple. If the cost of an individual component is less than the threshold it will not be assigned its own asset number. Its cost will be rolled up into the main asset cost. Some exceptions apply to real property which is covered later in this article. Many asset management systems allow you to make separate cost rows for each component but they are not assigned individual asset numbers if their costs are below the threshold. Capitalized thresholds vary with the type of property. For example, the threshold for most categories in Texas government entities is $5000. Real property, however, is much higher except for land which is capitalized at any cost. The threshold for buildings, facilities and their improvements is $100,000. Infrastructure is $500,000. Software has multiple thresholds, with purchased at $100,000 and internally developed at $1,000,000. Most organizations also have controlled item thresholds for items considered sensitive or pilferable. The controlled threshold for most items in Texas agencies is $500 but weapons are controlled at any cost.

Item independence is the next thing to consider when determining if an item should be componentized or not. Every item adds a necessary function to the operation of the primary asset but most items are not able to function on their own. Those are considered to be dependent items. Independent items are those that are capable of functioning on their own. In most cases, a dependent item will not be assigned its own asset number. An independent item can be considered for an individual asset number, but only if it meets the threshold and is likely to be repurposed as discussed in the next paragraph.

Considering the purpose of an item is also important, especially determining the likelihood of an item being repurposed. For example, chassis server systems are initially purchased and outfitted with multiple blade servers. The blades have a fairly high likelihood of being pulled and repurposed into another server system as needs (missions) change. Consider assigning individual asset numbers to these items if they meet the capitalized threshold.

TYPES/CATEGORIES OF ASSETS

> Furniture & Equipment • Lab & Medical Equipment • IT Equipment • Telecommunications Equipment • Conventional & Modular Furniture

> Vehicles> Real Property

> Software

LIQUID HANDLER (Lab Equipment)

Item Cost Threshold Independent RepurposeAssign

Number

Base Unit $15,977 Yes N/A N/A Yes

PosID Mod $12,765 Yes No No No

Safety Shield $2291 No No No No

Computer $1440 *Yes Yes Yes Yes

Software $7963 No No No No

Installation $4856 No N/A N/A No

*Meets the controlled item threshold of $500

CHASSIS SERVER SYSTEM (IT equipment)


Number

Base Chassis $7952 Yes N/A N/A Yes

Blade Servers $7951 Yes Yes Yes Yes

Hard Drives $349 No No Yes No


Two other areas to determine if componentization is required are add-ons and asset replacements. Add-ons are items that are bought after the main asset was purchased and placed into service. They are not treated as replacements because they are adding to the function and value of an existing asset. The consideration factor for an add-on is simple. If the cost meets the threshold, assign an individual number. If it doesn’t meet the threshold, expense it. Add-ons are depreciated separately because they were not purchased with the main asset.

Replacement components can occur for several reasons including warranty replacements. An item that is under warranty is normally replaced at no cost to the organization and therefore does not affect total asset cost or depreciation. Do not assign an individual asset number to a warranty replacement unless it is replacing an existing tagged component. When it does replace an existing tagged item, keep the same asset number whenever possible. Simply update the serial number in your asset management system if the replacement is the same model. Update both the serial number and model if the replacement is a different model. Non-warranty replacements can occur when a component is worn out, damaged or the technology is outdated. If a non-warranty replacement item meets the threshold, assign it an individual asset number.

Hopefully this information will help you to determine when to componentize an item, when to roll the costs into a single asset and when to expense. Always gather enough information to make the correct decision and remember that the threshold is not the only determining factor.

ABOUT THE AUTHOR:

Ken Black, CPPM, is the Asset Management Branch Manager for the Texas Department of Transportation in Austin, Texas. He oversees the property management and recycling operations for the agency headquarters and 25 district offices and maintenance facilities. Ken has 33 years of experience in the property management field. He started his property career while serving in the army for 20 years with various assignments in supply, property book and logistics. Ken joined NPMA in 2005 and has presented at NES and region seminars, and taught numerous certification review classes at the chapter level. Ken is currently serving as the National Vice President of Membership.

MODULAR FURNITURE


Number

30 Workstations $29,880 *No N/A N/A No

10 Power Poles $1600 No No Yes No

Installation $3750 No No Yes No

*Modular furniture is only capitalized if an individual item (workstation or accessory) meets

the threshold. In the first line of this example, the product (panels, work surfaces, cabinets,

etc.) to erect 30 workstations was ordered. Even when combined with the total cost of all three

lines, the individual workstation cost is only $1174 when divided by 30 workstations. Therefore,

the individual cost is under the threshold and will not be assigned asset numbers.

VEHICLES AND BOATS


Number

Truck Chassis $29,233 Yes N/A N/A Yes

Trk Upgrades $597 No No No No

Cargo Box $10,385 Yes No No No

26’ Bay Boat $134,713 Yes N/A N/A Yes

Motors $17,602 Yes No No *Yes

Trailer $16,243 Yes No No *Yes

*COMPUTER SOFTWARE


Number

Purchased (commercial off the shelf) – Threshold $100,000

Lab Mngt System

$320,000 Yes N/A N/A Yes

Env Sci Module $240,618 Yes No No No

Chem Lab Module

$154,500 Yes No No No

Internally Generated – Threshold $1,000,000

Development $315,000 No N/A N/A No

Integration $130,000 No No No No

Testing $15,000 No No No No

REAL PROPERTY

Building Item Cost ThresholdAssign

Number

HVAC System Upgrade

509 Replace System $345,952 Yes Yes

510 Replace System $170,093 Yes Yes

594 Replace System $83,725 No No

Mitigate Ligature Points – Patient Safety

784 Plumbing System $101,474 Yes Yes

784 Electrical System $11,565 No *Yes

784 Interior Finish $42,561 No *Yes

*Boats, motors & trailers are registered and titled individually, therefore should not be

combined as a single asset.

*Purchased software includes the base package plus additional modules. Internally generated

software includes the cost of application development stage activities (design, coding, testing,

etc.). Book internally generated software to construction in progress (CIP) if the estimated

project cost meets the capitalized threshold & the completion time crosses multiple fiscal years.

*Although these individual component costs are below the capitalized threshold, the total cost

for this single building project ($155,600) is more than the threshold. Therefore each component

is capitalized.

1. C2. D3. A4. G

5. B6. F7. E

ANSWERS FROM THE

PUZZLEChallenge

WWW.NPMA.ORG 27

from specific points of interest which then broadcast unique identifiers for consumption. The data collected is then shared with approved recipients from the Beacons via SITA’s Common Use Beacon Registry. The data stored in the Common Use Beacon Registry (commonly used in the Air Transport Industry) is then used by airports, airlines, restaurants, and shops to improve the customer experience by tailoring goods and services based on their habits. The comfort and location of the pet described was tracked using a combination of GPS and wireless technology. Additionally, Smart Luggage is an innovation that has been adopted by many companies and includes a variety of features depending on the manufacturer such as location tracking, alerts, and fingerprint protected locks that can all be controlled from a smartphone.

WHAT DOES THE IOT HAVE TO DO WITH ASSET MANAGEMENT?

Asset managers are in a unique position when it comes to the IoT. We’re already tracking uniquely identified assets, we understand what actions are required and the data to be captured to support a longer asset life, and after years of physical inventories we can map out our facilities in our sleep. We’re also experienced and/or knowledgeable about advanced technologies such as RFID that support the functions we’re responsible for while minimizing the need for human intervention and have the resources to educate ourselves when there is something new. We have an opportunity to reach out to all departments within our organization, increase our network, gain support of the asset management program, and learn about their pain points and how we can help by integrating technology across

I’m wearing flip flops and new sunglasses, have a cute little dog in tow, and suitcases filled to the brim in anticipation for my Caribbean vacation. After the transportation I effortlessly arranged from my smartphone drops me off curbside, I whip out another handy app and prepare to breeze through the airport. My app tells me how to swiftly get to my destination, find a quick bite, and keeps me posted on my flight status so I can stay on schedule but still relax. Once I am seated on the plane, I inquire about the comfort of my pup and am assured that she’s resting calmly in a comfortable 68 degrees. After landing, I follow my app to baggage claim and check in on my smart luggage which tells me it’s now approaching carousel 12, let the fun begin! Is this a dream you ask? No.

This scenario has become a reality and the possibilities are only getting started. Thanks to evolving technology and companies using data obtained through the Internet of Things (IoT), our experiences are becoming simpler and more personalized and the companies that leverage the data collected are increasing efficiency and profitability.

WHAT IS THE IOT?When uniquely identified objects with

network connectivity transfer data over a network without requiring human-to-human or human-to-computer interaction, you get the IoT. Many businesses utilize this technology to add value to the services they already provide.

HOW DO THESE ‘THINGS’ KNOW SO MUCH?

In the scenario described, the companies are using a combination of technologies such as Apple’s iBeacon technology which uses Bluetooth® Low Energy (LE) technology to transmit unique signals

organizational functions. The potential is huge but implementation

may not be simple. There is a lot of elaborate technology out there and it can be easy to go overboard. Start with your end goal and determine how you will measure success. Define what you need to capture to achieve your goal and work backwards to develop a solid achievable plan.

SOURCES:http://www.cio.com/article/3074125/internet-of-things/how-the-internet-of-things-improves-air-travel.html

https://www.sita.aero/pressroom/news-releases/passengers-airlines-and-retailers-to-benefit-as-miami-international-and-sita-cover-the-airport-with-beacons

ABOUT THE AUTHOR:

Jessica Dzara, CPPM CF is the NPMA National Vice President of Communications and Marketing. Ms. Dzara is a Manager at Sunflower Systems where she has over nine years of asset management experience focusing primarily on Federal Agencies and specializing in software implementation and data analysis as well as the development of business processes, documentation and training programs. Ms. Dzara holds a BS in Graphic Communications from Clemson University and resides in Virginia.

#ASSETMANAGEMENTADOPTION OF THE INTERNET OF THINGS (IOT)

By Jessica Dzara, CPPM CF, NOVA Chapter

#AssetManagement is a regular column in The Property Professional that highlights innovative trends in the world of asset management that can be applied to new and exciting fields.

Share Your StoryHAVE YOU HEARD OF A NEW AND

EXCITING TREND IN THE WORLD OF

ASSET MANAGEMENT?

We want to hear from you. Email [email protected]

to share your story.

EMAILUS


Nashville

See You innashville!

2016 National Education Seminar (NES) AUGUST 29 - SEPTEMBER 1, 2016Gaylord Opryland Resort, Nashville, TNwww.npmaconferences.org/nes

OVER 80 SESSIONS ORGANIZED INTO THESE LEARNING TRACKS:

• Contract Property• Basic Property Management

(Intro, Intermediate and Advanced)

• Fleet• Medical (New!)• Standards & Regulations• Professional Development• University• General

PLUSValuable networking opportunities and pre-seminar training and certification courses.

WWW.NPMA.ORG 29

Nashville

See You innashville!

2016 National Education Seminar (NES) AUGUST 29 - SEPTEMBER 1, 2016Gaylord Opryland Resort, Nashville, TNwww.npmaconferences.org/nes

OVER 80 SESSIONS ORGANIZED INTO THESE LEARNING TRACKS:

• Contract Property• Basic Property Management

(Intro, Intermediate and Advanced)

• Fleet• Medical (New!)• Standards & Regulations• Professional Development• University• General

PLUSValuable networking opportunities and pre-seminar training and certification courses.

DEAR EXPERT PANEL,We recently passed an audit with an

Observation made about our Government Property Records. Understanding the need to maintain the Audit Trail throughout the asset life cycle, the Observation was about making changes, edits, or corrections to data entries without a “posting reference.” Not sure what is required here when there was no actual “transaction” performed that changed an asset’s accountability record. What posting reference is necessary for correcting input mistakes?

FROM, POLLY POSTER

DEAR POLLY POSTER,

Yet another question to which the response begins “it depends.” The Audit Trail should take into account a complete, current, and auditable record of all transactions (sound familiar?) to the Government Property record. Edits and corrections to asset records are (depending on perspective) actually record transactions. To address these, it’s a good business rule to have a unique Posting Reference answering the question, “Why was this record update made?” A simple document reference that, by procedures of course, is applied to the update supporting that the change was a “correction” to the asset record asked.

FROM, YOUR EXPERT PANEL

DEAR EXPERT PANEL,The latest DFARS UID clause now

requires all GFP be serially managed regardless of unit-acquisition cost. My

Property Management group understands that to mean any GFP that has a serial number. I’m not sure that’s what the clause requires. Might you have any insight that would help our understanding and debate?

FROM, SERIAL SAM

DEAR SERIAL SAM,It depends on if you know the answer to

the following question: How do you read a contract clause? Answer: From the first word to the last word. If you read the DFARS Clause 252.211-7007 “Reporting of Government-Furnished Property,” in its entirety, you will find the (a) Definitions. As used in this clause -- “Serially managed item” means an item designated by DoD to be uniquely tracked, controlled, or managed in maintenance repair, and/or supply systems by means of its serial number. Your DoD contract will “designate” those items to be serially managed by appending your contract with a list of items. That list is what you are required to serially manage and report.


DEAR EXPERT PANEL,We are continuously storing contract

property no longer in use, until the contract goes into Closure. Seems to me, if the property is no longer needed then it’s excess and should be disposed of, but our Program Office always says they “may” need it. Is this a common practice or are there rules that say what can be stored and for how long?

FROM, COMMON CODY

DEAR COMMON CODY,It depends on your Procedures and

how they define “requirement.” There are only two “categories” of a contract requirement: Current or Future. Once an asset has fulfilled the current contractual requirement it’s available for any future contractual requirement, which may include future efforts in the current contract or a related follow-on contract. In the absence of any current future requirement the asset is excess to contract performance and reported for disposal. If you hold or store government assets for the “future requirement,” get that requirement in writing.f Your Program Office has the authority to establish the requirement; Property Management has the responsibility to document the requirement. What do your procedures say?


BY YOUR NPMA ‘EXPERT’ PANEL

ASK THEExpert

Questions

DO YOU HAVE A BURNING QUESTION for our panel of experts? We want to hear from you. Email [email protected] to submit your question.

ASKUS


INTERMEDIATE PROPERTY MANAGEMENT STUDIES

SEPTEMBER 20-22 // HERNDON, VIRGINIA This course takes the property professional from the beginning

life-cycle stages of property operations into the broader value-added world of organizational partnering and strategic property management concepts. Attendees will experience an in-depth examination of property management topics ranging from voluntary consensus standards, requirements determinations, contracting and assistance, risk, consumables, and fleet management to value-added solutions and environmental considerations. If you have at least one year of property management experience, this course provides the tools to succeed as a professional property manager.

FUNDAMENTALS OF PERSONAL PROPERTY MANAGEMENT

SEPTEMBER 28-30 // HERNDON, VIRGINIA Every organization, regardless of its size or type has critical

business functions that are integral parts of meeting its objectives and accomplishing the mission. Property management is first and foremost a general management assignment no different than the management of any other resource such as money, personnel, or facilities. Personal property managers are directly accountable to a higher authority for the acquisition, use, redistribution, and disposition of personal property. As stewards of our company or agency’s personal property, we have a fiduciary responsibility to manage property in a prudent and compliant way. The Fundamentals of Personal Property Management course is designed to teach the basics of property management, cradle-to-grave, including how to effectively manage personal property.

The Fundamentals of Personal Property Management manual is included as part of this course.

FLEET MANAGEMENT – CERTIFIED FEDERAL FLEET SPECIALIST

OCTOBER 11-13 // WASHINGTON, DCThe NPMA, in partnership with Mercury Associates, is proud

to offer the first Certification for the Federal Fleet Manager. The CFFS level training is designed for persons who have basic Fleet Management responsibilities or dual roles such as the vehicle control officer. Course subjects include Basic Fleet Management, Fleet Information Management: Regulations, Systems and Data, and Optimizing the Fleet. Certification testing will be performed during the 3-day course.

COURSE Schedule

Register today for an NPMA

course!

BY ATTENDING AN NPMA course, you’ll gain the knowledge and skills you need to succeed on the job. Don’t wait, register today! Seating is limited!

IF YOU HAVE QUESTIONS about NPMA courses, call 404.477.5811 or email [email protected]. For more information or to register, visit the website at www.npma.org and click on the Education tab.

DON’T WAIT

Visit www.npma.org to register

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NPMA CERTIFICATION REVIEWS & TESTINGThe NPMA Certification Program is designed to elevate

professional standards and enhance individual performance for those who demonstrate a high level of competence that is essential to the practice of property management. If you have made a commitment to a career in property management, you should consider obtaining your NPMA certification. Join a distinguished group of peers worldwide who have chosen to attain this high level of excellence.

CPPS CERTIFICATION REVIEW & TESTING

SEPTEMBER 28-30 // HERNDON, VIRGINIA

CPPA CERTIFICATION REVIEW & TESTING

SEPTEMBER 20-22 // HERNDON, VIRGINIA

CPPM CERTIFICATION REVIEW & TESTING

SEPTEMBER 23 // HERNDON, VIRGINIA

100 WORST MISTAKES IN PROPERTY MANAGEMENT

OCTOBER 29-21 // WASHINGTON, DCAfter 40 years of combined experience and networking with

Property Professionals, the “100 Worst Mistakes to Make in Property Management” have been compiled. Bill Beedle and Cheri Cross tell it all, leaving no story untold despite the embarrassment. During this informative four day course, you will learn what common mistakes are made, the possible consequences of repeating them, and tips for avoiding these blunders all together. Every phase of the property life cycle will be examined, including best practices and guiding principles.

“100 Worst Mistakes to Make in Property Management” is a great refresher course for seasoned professionals who can draw on the mistakes of others. For new professionals, the course will provide the framework and examples to ensure common mistakes can be avoided. Every attendee will receive a copy of the material covered for future reference. This course is for every Property professional and is one you and your company can’t afford to miss!

S E P T E M B E R - O C T O B E R

COMPLACENCY IN COMBAT LOGISTICS

An April 22, 2016 article written by Sandra I. Erwin posted at National DEFENSE, highlights the concerns of a senior Pentagon official about complacency in combat logistics.

As troop numbers come down and the Pentagon shifts its focus from massive ground wars to leaner operations, it is not paying enough attention to logistics support, warns Vice Chairman of the Joint Chiefs of Staff Air Force Gen. Paul J. Selva. “In lean years we cut things that we think don’t contribute to combat power,” Selva said April 20 at the National Defense Industrial Association’s annual logistics forum in Washington, D.C. When money is tight, the military services concentrate resources on combat forces, often at the expense of support units, and this could be a dangerous trend, said Selva. “I worry about the logistics workforce.” The logistics infrastructure becomes an easy target when the services are looking to buy more “combat power,” Selva said. As a consequence, “We’re getting leaner on logistics enablers and heavier in relative terms on combat power.” As vice chairman of the joint chiefs, he noted, “I like combat power. But I also ask the questions: Have we addressed the tail that comes with combat power?

Have we addressed the depots, the logistics, training and sustainment infrastructure? If the answer is no, the combat power is going to be irrelevant.”

The full article can be found at: www.nationaldefensemagazine.org/blog/Lists/Posts/Post.aspx?ID=2164

866.209.3516 | [email protected] | www.sunflowersystems.com

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