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‘SMART’ CLOSEOUT


To determine disposition instructions, the government established a property sub-IPT that included prospective claim- ants, such as government laboratories and other program offices, and provided them the property lists in spreadsheet format as they became available. Te concurrent staffing and spreadsheet format reduced the time required for the government to generate instructions.


OPEN LINES OF COMMUNICATION


In conducting the GMR contract closeout, it was critical to look for efficiencies and strive for open communication. The GMR Program Office established a Contract Closeout Integrated Process Team (IPT) to close out the contract in a manner that avoided direct charges after the performance period. After the government gave disposition instructions to the prime contractor, the prime included subcontractors in the closeout IPT meetings. Here, SPC Todd Charity of 1st Squadron, 2nd Cavalry Regiment programs a radio inside his vehicle Oct. 13 during Exercise Saber Junction 2012 near Hohenfels, Germany. (U.S. Army photo by SSG Jose Ibarra, 2nd Cavalry Regiment)


To minimize correspondence between the government and contractor, the pro- gram office issued “default” disposition instructions for routine or similar items for which there were previous instruc- tions. Tis permitted the contractor to use the default instructions for items that it found after delivering the property lists to the government, rather than having to generate correspondence.


week and providing weekly updates to the program manager helped maintain momentum and schedule.


CHALLENGES IN EXECUTION Te $2 billion GMR SD&D cost-plus- award-fee contract had more than $180 million worth of property—5.4 million items such as radios, special test equipment, and production materials (capacitors, resis- tors, partially built-up circuit cards, nuts, screws, etc.)—that needed to come off the contract within the six months remaining in the period of performance. Property dis- position was the greatest challenge in this closeout effort.


Te IPT identified three critical tasks that drove the schedule for moving the


128 Army AL&T Magazine


property off the contract: 1) obtaining accurate property lists from the contractor, 2) determining and then conveying appro- priate disposition instructions for this property to the contractor, and 3) execu- tion of those instructions by the contractor.


Te contractor estimated it would take two months to provide the “final” property list to the government. In response, the program office directed the contractor to provide property lists as it generated them, rather than wait for the “last item” to be validated. In making this decision to main- tain schedule, GMR assumed the risk that the lists would not be completely accurate. While there were a few instances of dupli- cation or inaccuracies, the impact proved to be minimal.


January–March 2013


Reutilization of property by other gov- ernment contracts at a contractor facility also shortened the schedule, because the contractor could transfer that property immediately to the other contracts. Tis was effective for large items, like envi- ronmental chambers, that were built into contractor facilities; it would cost more to dismantle, dispose, and ship the chamber than the chamber itself cost.


Te program office learned two key lessons concerning the contractor’s dis- position of property.


First, DCMA’s PCARSS system was not designed to dispose of large volumes of property quickly. Te plant clearance process required impound of each item of property, then announcement for other government claims, followed by disposition—a process that would have introduced significant delay. To expedite closeout, the program office used the DLA property turn-in process through DLA Disposition Services (formerly


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