What is a Contractor Self Assessment, Really?

This blog posted is contributed by Alex Barenblitt, CPPM, MBA. Alex leads the consulting practice for E-ISG Asset Intelligence on Goverment Property Management Business Processes

Are you a Government (Federal Agency or Defense) Contractor or Subcontractor?  Do you manage Government Property (Government Furnished or supplied, or Contract Acquired)?  If so, then you have some form of Property Management System that meets all 10 outcomes that are required to properly manage that Government-owned property.  And you likely have some oversight from either the Government or a Prime Contractor to make sure you’re managing the property well.

If you’ve been through these assessments (DCMA calls theirs a Property Management Systems Analysis, or PMSA) you know that to support these can be expensive and time consuming, and sometimes even painful.

  • Typically this is overhead work which you will be unable to directly charge to a contract unless you can allocate the work to specific contracts
  • if the Government, on their own, finds your Property Management System “inadequate” or “unapproved”, you could have partial payments withheld, or even have contracts suspended

It’s reasonable for the owner of the Property, the Government, to make sure you are managing their property well.  They have to assure themselves that you are using what they own properly and only as they authorize, acquire it properly, know where it is, and dispose of it properly, according to their instructions.  And if you have Subcontractors using Government Property, that you are supervising your Subcontractors well.

So is your overall management of Government Property a low-risk or a high-risk matter for your customer?

In the current Government fiscal climate, one way for the Government to ensure that Government Property is managed well is to assign a degree of risk to contractors, and to hold them accountable.  They can also work together with Contractors by assigning responsibility of doing their own assessments, providing the results to the Government. That’s what a Contractor Self-Assessment (CSA) is.

A CSA is very much like a Property Management Systems analysis, but done either by the Contractor themselves, or at its direction by a Subcontractor.  For a CSA to be considered acceptable, it needs to be done similarly to the way an oversight authority, like DCMA, would do it.  And it needs to be done by properly trained resources that are not directly responsible for the day-to-day property operations for a Contractor.  This ensures the results will be unbiased, without influence. There are some key benefits of a CSA

 

  • If done properly, the results can be “safely” used and depended on by an oversight authority without their having to frequently perform the assessment themselves.
  • Performing a CSA exposes strengths and weaknesses in a Contractor’s Property Management System. It’s a lot better to find them yourself, which allows you to fix what needs to be fixed, before the Government tells you have to.

Government Property Management Business Processes Consulting

We know government contractors need to constantly assess their policies and procedures for managing Government Property. They often engage third party experts to conduct that assessment for credibility when they present the result to government auditors. We are happy to have Alex Barenblitt to lead our team of government property management consultants. Alex and his team can be engaged to provide independent third party assessment,  help to respond to the Correct Action Request from government auditors and train the internal staff on policy and procedures.  To inquire more about the consulting services, you can call us at 1-866-845-2416

 

 

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