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Government Furnished Equipment (GFE) Overview

Government Furnished Equipment (GFE) Overview. Edlouie S. Ortega, MSM, CDFM Equipment and Technology Management Medical Equipment and Logistics Solutions Naval Medical Logistics Command. DoD Concerns. Assets (Financial World). Inventory/OM&S. PP&E. Real Property. Personal Property.

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Government Furnished Equipment (GFE) Overview

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  1. Government Furnished Equipment (GFE) Overview Edlouie S. Ortega, MSM, CDFM Equipment and Technology Management Medical Equipment and Logistics Solutions Naval Medical Logistics Command

  2. DoD Concerns Assets(Financial World) Inventory/OM&S PP&E Real Property Personal Property Repairables Consumables Internal Use Software Land 2017: DoD audit readiness goal! Facilities Equipment 2017 Military Equipment Buildings General Purpose Equipment Structures Linear

  3. Assets Inventory/OM&S PP&E Real Property Personal Property Repairables Consumables Internal Use Software Land Distilled into four (4) types under the Federal Acquisition Regulation Facilities Equipment Military Equipment Buildings General Purpose Equipment Structures Linear

  4. Assets Personal Property 1 Equipment Material Special Tooling Special Test Equip. 4 3 2 For Repair • 1. Equipment (for use or repair) • 2. Special Tooling • 3. Special Test Equipment • 4. Material For “Use” 4 types of contract property

  5. Cost of an Airplane The Airframe is the price on the contract CAP transferred from Developmental Contract The engines provided as GFE from a different contractor GFE parts requisitioned from DLA

  6. Cost of Care Output: Image for Clinical Review Repair Parts/ Special Tooling Network Switches Network Acquisition Devices Network Gateway Network Switches Maintenance Monitoring System

  7. Baseline information needed • Inadequate data • No standard method • Do we know: • What is GFE; where it is; and what its worth • Why? • Contracts (especially legacy contracts) do not always contain GFE listings; listings are often ad-hoc and inaccurate • DoD Component past practice was to “zero out” equipment (GFE) records • Little rigor in evaluating contractor need for GFE

  8. The Latest GFE Memo… • OSD memorandum issued on January 7, 2012 • Goals • Promote the current clause requirements • Demonstrate the relationship betweenthe clauses, the DoD policy, and thesystem capabilities (IUID Registry) • Get a starting point for equipment already used by contractors • Laptop Computers • Offsite equipment w/no gov’t representative • Increase visibility and awareness ofthe “mystery” surrounding GFE • Highlight the criticality to auditability

  9. The Memo Explained • Based on existing policy • NO NEW POLICY is in this memo • Requires HQ Level coordination • Each DoD Component will take a unified approach • Standardizes DoD practices • Eliminates ad-hoc data calls to contractors • Promotes a common enterprise approach • Use of IUID Registry as master data source for GFE • Single face to industry • Consistent with DoD Instruction 8320.4

  10. OSD Methodology Highlights • Create integrated Project Team to execute methodology • Program Managers • Acquisition Managers • Accountable Property Officers, etc. • Use IUID Registry to interface with Contractors

  11. OSD Methodology Highlights • Leverage DCMA’s Property Management System Analysis (PMSA) to validate data: • “Adequate” record rating & “Low” risk = accept contractor data • “Inadequate” record rating & “High” risk = Ctr perform wall to wall inventory to validate data, data validated independently • “Inadequate” record rating & “Moderate” risk = evaluate Corrective Action Plan and use sampling techniques to validate data • Emphasize focus on improving business processes to improve accountability for GFE going forward • Modify contracts to list GFE to bring contracts into FAR, DFARS compliance • Amended contracts to serve as supporting documentation for government’s rights/obligations to equipment

  12. OSD Expectations • Contracting Officers (Buying Commands) • Use the opportunity to update property clauses (FAR and DFARS) and other terms and conditions • Modify contracts with appropriate property info per PGI 245 • Program Offices • Work with Accountable Property Officers to establish needed property records based on risk assessments of contractors • Contractors • Report property per contract terms; utilize the IUID Registry as appropriate

  13. DOD RecommendedStep by Step • First [immediate]: • Stop the bleeding. • No GFE should be furnished without PCO first meeting PGI 245.103-70 • Second: [short term]: • Identify contracts coming to completion within one year • Third: [intermediate]: • Identify contracts going beyond one year • Modify contracts as needed to add GFE listing • Fourth: [long term]: • Update local policy and procedures; sustainment & compliance

  14. DEMONSTRATION “How to account for GFE in DMLSS” HM1 Sherwin Villagracia

  15. QUESTIONS? edlouie.ortega@med.navy.mil (301) 619-3065

  16. Related Sessions LO-M-1-F Business Objects Training for Equipment Managers LO-T-3-B Equipment Management Self Assessment - Conduct Your Own LAV LO-W-3-C Automatic Identification Technologies (AIT) /IUID and RTLS LO-W-3-D Equipment Management Process LO-W-3-E Annual Inventory Process and Requirements

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