Contractor Personal Property Management
Contractor Personal Property Management Systems
Mission, Vision, and Strategy
Attachment B
Contractor Personal Property
Management
Balanced Scorecard
FY 1998
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Contractor Personal Property Management Systems
Mission, Vision, and Strategy
The following are the Department’s statements of its highest level purpose, desired
end-state, and methodology for achieving that end-state for its contractor personal
property management systems. All objectives and measures should support these
statements:
MISSION: To provide property management and asset disposal services to support the
accomplishment of the Department’s programmatic goals and objectives.
VISION: To provide property management and asset disposal services in the most
effective and efficient manner that meets customer expectations.
STRATEGY: To utilize innovative, customer driven, and results oriented methods and
mechanisms to provide the highest levels of stewardship for contractor managed
property assets.
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The Contractor Personal Property Management
Balanced Scorecard (BSC) Program
The DOE contractor personal property management BSC is a functional component of
the Departmental business systems performance measurement and management
program issued by the DOE Procurement Executive on October 1, 1997.
In order to achieve Department-wide consistency, this review and assessment program
is based on the personal property policies, standards, and practices outlined in
Department of Energy Property Management Regulations as codified in 41 CFR
Chapter 109. Contractors are expected to achieve the most effective combination of
performance results in accordance with Departmental expectations, customer
requirements, laws, regulations, good business management practices, and the terms
and conditions of their contracts.
The core objectives and performance measures established under this program are
applicable to all DOE contractor personal property management activities. The core
performance measures are exclusive of additional optional measures that DOE expects
its contractors to develop and implement. Cognizant DOE Offices and their contractors
are responsible for determining the best optional measures to use for their specific
situations.
Under the BSC program, performance measures are established and prioritized,
targets are assigned, and measurements taken. Formal, documented self-
assessments are the principal data generating or gathering sources. Measurements
are formulated to report status of performance to management and the customer and
the feedback cycle drives corrective or improvement actions as appropriate.
The core objectives and measures listed in this BSC are to be used by contractor
personal property management activities to monitor their business processes. The
initial step in each area will be to establish a baseline against which future performance
will be compared. The objective should be to measure trends in continuous
improvement affecting the contractor’s performance. To ensure this data is trendable
and reliable, the method used to establish the baseline should also be applied in
subsequent assessments. It is recognized that the results may not be directly
comparable from one contractor personal property management activity to another.
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The BSC Perspectives
Customer Perspective:
The Customer Perspective enables organizations to align their core measures (i.e.,
customer satisfaction) to targeted customers. For this perspective, the primary
objectives are to provide effective service to and establish effective partnerships with
external and internal customers. Effective service and partnership are key ingredients
in assessing the health of any contractor personal property management system.
Internal Business Processes Perspective:
The Internal Business Processes Perspective assures that appropriate contractor
personal property management processes are established and maintained to support
customer needs and to achieve the primary objective of providing effective life cycle
management of Departmental assets. In addition to the primary objective, this
perspective has three subobjectives: the establishment and maintenance of
accountability for Departmental assets; the effective utilization of property; and the
timely disposition of unneeded property. Key processes within a contractor personal
property management operation must be monitored to ensure that the outcomes satisfy
the primary and subobjectives.
This perspective is important because it not only addresses the internal business
processes that must be developed and maintained to meet customer and stakeholder
requirements and expectations, but also the process results that lead to financial
success and satisfied customers. Within each contractor personal property
management organization, there are a number of business processes requiring
focused management attention to ensure requirements and expectations are met as
effectively as possible, while accommodating cost efficiency issues addressed in the
Financial Perspective.
Learning and Growth:
The two objectives under the Learning and Growth Perspective (i.e., having access to
dynamic and strategic information and management systems; and ensuring that
employees are aligned to BSC objectives) promote organizational and individual growth
that will provide long term benefits to the personal property management organization.
These objectives must be achieved if an organization is going to improve its
performance over time. While the objectives in the other perspectives identify where
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the organization must excel to achieve breakthrough performance, the Learning and
Growth objectives provide the infrastructure needed to enable the objectives in the
other perspectives to be achieved. The Learning and Growth objectives are the drivers
for achieving excellence in the other perspectives.
This perspective is important because it promotes individual and organizational growth
- factors that are crucial to future success. Support for this perspective equates to
recognition of the link between top-level strategic objectives and activities for reskilling
and motivating employees, supplying information, and aligning individuals, teams, and
organizational units with the Department’s strategy and long-term objectives. An
analysis of the cause and effect relationships of the measures in this perspective
clearly shows that employee satisfaction, employee alignment, and information
availability are vital contributors to meeting the objectives stated in the other
perspectives.
Financial Perspective:
The objective of the Financial Perspective is to strive for optimum efficiency of
contractor personal property management operations. To achieve that, major
processes need to be analyzed to determine (1) cost and performance trends over time
and (2) process changes that can be implemented that will produce optimum
efficiencies. Success for personal property management organizations should be
measured by how effectively and efficiently these organizations meet the needs of their
constituencies.
This perspective is important because optimizing the cost efficiency of contractor
personal property management operations ensures that the maximum amount of funds
are available for accomplishing the primary missions of the Department and the
organization. Managers must ensure that contractor personal property management
operating costs are optimized in order to meet the challenge of creating business
systems that work better and cost less.
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BSC Objectives, Measures and Targets
General:
Each contractor is expected to develop a BSC that will contain performance objectives,
measures, and targets. The BSC will be based in part on national objectives,
measures, and targets provided by the Department. The Department expects that the
national elements of the scorecard to be supplemented by (1) local objectives that
support the Departmental mission, vision, and strategy; (2) at least one additional
measure for each perspective, negotiated and agreed upon between the contractor and
the local DOE office and taken either from the list of optional measures that are
provided below or from site-specific local measures; and (3) where appropriate, short
term local targets that stimulate progress towards national targets.
Core Measures:
The core measures contained in the Contractor Personal Property BSC are the
measures that the Department expects all contractors to use where applicable. The
formulae and measuring methods should be maintained as standard as practicable
from site to site. Some core measures contain core elements and optional elements.
Core elements are aspects of the contractor personal property management process
that the Department expects all contractors to measure where applicable. Optional
elements are aspects of the contractor personal property management process that the
Department suggests, but does not require, for measurement where applicable.
Optional Measures:
The following is a list of optional measures that may be useful for assessing progress
towards BSC objectives. These measures are suggested, but not required, by the
Department.
1. Customer Perspective
• Percent of initial custodial assignments (individual or organizational) completed
within XX days of receipt.
• Percent accuracy of key property management data elements (e.g., property
control number, nomenclature, part number, model number, and serial number)
where customers maintain/update databases.
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• Percent of excess equipment disposals coordinated by contractor personal
property management operations.
2. Internal Business Processes Perspective
• Percent of subcontractor-held property located during physical inventory.
• Percent and/or value (acquisition cost) of personal property items lost during the
period.
• Value (acquisition cost) of personal property items found during the period.
• Percent of personal property items damaged or destroyed during the period.
• Percent of scheduled property management reviews conducted during period.
• Number of property system processes reengineered during period.
• Number of excess declarations processed as a percent of total transactions
during period.
• Percent of scheduled management walk-throughs completed during period.
• Percent of excess or surplus property shipped within XX days of receipt of
requisitions or transfer orders.
• Percent of usable property with sale value sold within XX days after completion
of required screening.
• Percent of subcontractor-held property disposed within XX days after
subcontract completion.
• Extent to which reliable property, administrative, and financial systems are in
place and integrated.
• Percent of Government equipment issues resolved in a timely (defined locally)
fashion.
3. Learning and Growth
• Number of classes, supporting BSC objectives, provided to personal property
custodians/representatives during the period.
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• Percent of personal property custodians/representatives who attended the
classes that were provided during the period in support of BSC objectives.
• Number of employee suggestions, supporting BSC objectives, that were adopted
during the period.
• Percent of personal property professional staff with professional certifications
related to BSC objectives.
4. Financial Perspective
• Net proceeds from the sale of surplus assets as a percent of asset acquisition
cost
• Dollar value of site-generated excess property reutilized internally at the site.
• Dollar value of externally generated excess property (i.e., by other DOE sites
and other Federal agencies) utilized by the site.
• Reutilization screening transactions (number and dollar value) completed during
period
Local Measures:
Local measures are site or contractor specific measures that may be identified and
included as part of each site’s BSC.
National and Local Targets:
Each contractor should strive to meet or exceed the national targets contained in the
BSC. If a contractor’s current performance results are below the national target, short
term local targets may be established to drive performance over time towards the
national targets. When acceptable performance levels are achieved, they should be
maintained. However, performance should not be driven beyond what is necessary to
support the organizational mission.
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Customer Perspective
Implementing Guidance
Core Measure #1
Objective: Provide effective service to and establish effective
partnerships with external customers.
Core Measure: The extent to which external customers are satisfied with
specific personal property products and services.1
Core Elements: The process should provide feedback from external
customers regarding their satisfaction with (1) the
timeliness of personal property products and services
they received, (2) the quality of the information and
services provided by personal property functions, and (3)
the degree of partnership that exists between personal
property functions and external customers in terms of
responsiveness, cooperation and level of communication.
National Target: 80% (or equivalent index value) or better customer
satisfaction rating.
Local Target: (1) National target (or equivalent index value) or better if
the most recent rating is below the national target (or
equivalent index value);
or
(2) the most recent rating or better if the most recent
rating is the national target or better.
Suggested Data Sources: Written customer surveys (periodic or point of service),
focus groups, interviews, etc.
Suggested Measuring (1) Identify the external customers who were provided
Method: specific products and services during the period (e.g.,
quarter, semi-annual, annual). Select a statistically valid
random sample from the total external customer
population. Conduct a customer satisfaction survey with
the selected customers. Determine the external customer
1 Products and services may include external reports (e.g.,
motor
vehicle reports, disposal reports) required by contract,
responses
to DOE Headquarters/Field Office requests for information,
correspondence with externally established suspense dates,
externally-driven procedural updates, and property system
enhancements.
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satisfaction rating or equivalent index for the period.
or
(2) Provide a point of service customer survey form with
each product or service provided during the period (e.g.,
quarter, semi-annual, annual). Review each survey form
upon return by the customer and address specific
issues/concerns raised by the customer. At the end of the
period, analyze the survey results or, if volume of surveys
is sufficiently large, select a statistically valid random
sample from the total population of survey forms.
Determine the customer satisfaction rating or equivalent
index for the period.
Results: Compare the customer satisfaction rating (or equivalent
index) with the local target. As necessary, determine the
course of action needed to bring about improvement, to
include addressing and providing candid feedback on
individual external customer concerns and issues raised
during the customer survey process. Consider tracking
the course of action under one of the BSC perspectives,
as appropriate.
B-16
Customer Perspective
Implementing Guidance
Core Measure #2
Objective: Provide effective service to and establish effective
partnerships with internal customers.
Core Measure: The extent to which internal customers are satisfied with
specific personal property products and services.2
Core Elements: The measure should provide feedback from external
customers regarding their satisfaction with (1) the
timeliness of personal property products and services they
received, (2) the quality of the information and services
provided by personal property functions, and (3) the
degree of partnership that exists between personal
property functions and internal customers in terms of
responsiveness, cooperation and level of communication.
National Target: 80%.
Local Target: 80% (or improvement towards 80% over an established
internal customer satisfaction baseline if the baseline is
less than 80%).
Data Sources: Written customer surveys (periodic or point of service),
focus groups, interviews, etc.
Suggested Measuring (1) Identify the internal customers who were provided
Method: specific products and services during the period (e.g.,
quarter, semi-annual, annual). Select a statistically valid
random sample from the total internal customer
population. Conduct a customer satisfaction survey with
the selected customers. Determine the internal customer
satisfaction rating or equivalent index for the period.
or
(2) Provide a point of service customer survey form with
each product or service provided during the period (e.g.,
quarter, semi-annual, annual). Review each survey form
upon return by the customer and address specific
issues/concerns raised by the customer. At the end of the
period, analyze the results or, if the volume is sufficiently
large, select a statistically valid random sample from the
total population of survey forms and analyze the results.
2 Products and services may include internal procedures,
property
system enhancements, internal reports, responses to internal
audits, and internally-driven property system enhancements.
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Determine the internal customer satisfaction rating or
index for the period.
Results: Compare internal customer satisfaction rating or index with
the local target. As necessary, determine the course of
action needed to bring about improvement, to include
addressing and providing candid feedback on individual
internal customer concerns and issues raised during the
survey process. Consider tracking the course of action
under one of the BSC perspectives, as appropriate.
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Customer Perspective
Implementing Guidance
Core Measure #3
Objective: Provide effective service to and establish effective
partnerships with external and internal customers.
Core Measure: Accuracy of Property Assignments. The percent of
property items confirmed by the accountable individuals or
organizations as being properly assigned, computed as
follows:
% Accuracy = Number of Confirmed, Properly Assigned Items
Total Number of Assigned Items
Core Elements: The measure, intended to demonstrate individual or
organizational responsibility and the level of accuracy for
personal property assignments, should provide feedback
for at least the following categories of property:
(1) sensitive items and (2) equipment items.
National Target: 99% or more of all property items are properly assigned to
the responsible individual or organization.
Local Target: (1) National target or better if the most recent item
assignment accuracy rate is below the national target;
or
(2) The most recent accuracy rate (or better) if the
accuracy rate is the national target or better.
Suggested Data Sources: Contractor personal property management databases,
physical inventory documentation.
Suggested Measuring Determine the population size for each category of
Method: property being measured. Select a statistically valid
random sample from each population. Contact the
accountable individual or organization of record.
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Determine if the assignment of record is accurate.
Establish a population accuracy rate based on the
statistical sampling results.
Results: Compare the population accuracy rates established from
the random sampling with the local target. As necessary,
determine the course of action needed to bring about
improvements in the accuracy rates. Consider tracking the
course of action under one of the BSC perspectives, as
appropriate.
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Internal Business Processes Perspective
Implementing Guidance
Core Measure #1
Objective: Establish and maintain effective life cycle management3 of
assets to meet Departmental missions.
Core Measure: Asset Accountability Rate. The percent of property subject
to physical inventory located during physical inventory,
computed as follows:
% Located = Amount Located During Physical Inventory
Amount Subject to Physical Inventory
Core Elements: The measure should provide feedback on the amount of
property (by line item and acquisition cost) located during
physical inventory for each of the following categories of
property: (1) equipment, (2) sensitive property, (3) stores
inventory, and (4) precious metals (for contractors having
$100,000 or more in precious metals)
National Target: Equipment - 99% (acquisition cost) and 98% (items)
Sensitive items - 99% (acquisition cost) and 98% (items)
Stores inventory - 99% (acquisition cost) and 97% (items)
Precious metals - 99% (acquisition cost) and 99% (items)
Local Target: (1) National target or better if property located results
during the most recent physical inventory were below the
national target;
or
(2) the most recent property located rate (or better) if the
most recent physical inventory results were at the national
target or better.
Suggested Data Source: Personal property database, physical inventory results,
and supporting documentation.
Suggested Measuring Using approved physical inventory methods, complete the
Method: physical inventories that are scheduled for the period.
Determine the percent of items that were located during
each inventory (for each category of property whose
3 The effective life cycle management objective includes the
following subobjectives: (1) accountability for Departmental
assets, (2) effective utilization of equipment, and (3) timely
disposition of excess and surplus property.
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physical inventory is conducted using statistical sampling
techniques, calculate an estimated property located
percentage for the entire category using statistical
methods).
Results: Compare the actual (or estimated for statistical sampling
based physical inventories) property located rates with the
local targets. As necessary, determine the course of
action to bring about improvements in the property located
rates. Consider tracking the course of action under one of
the BSC perspectives, as appropriate.
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Internal Business Processes Perspective
Implementing Guidance
Core Measure #2
Objective: Establish and maintain effective life cycle management4 of
assets to meet Departmental missions.
Core Measure: Equipment Utilization. The percent of equipment meeting
Federal and/or local usage/issue standards or objectives,
computed as follows:
%= Number of Items Meeting Standards/Objectives
Total Number of Items Subject to Standards/Objectives
Core Elements: The measure, intended to demonstrate the degree of
effective utilization of equipment, should provide feedback
on the utilization of motor vehicles, as a minimum5.
National Target: 90% (or better) of motor vehicles meet Federal and/or
local usage/issue standards.
Local Target: (1) National target (or better) if motor vehicle fleet does
not meet the usage/issue standards;
or
(2) better than the national target if the motor vehicle fleet
meets the usage/issue standards.
Suggested Data Source: Equipment usage/issue records.
Suggested Measuring (1) For each motor vehicle (and motor equipment item if
Method: included under this measure), determine its actual usage/
4 The effective life cycle management objective includes the
following subobjectives: (1) accountability for Departmental
assets, (2) effective utilization of equipment, and (3) timely
disposition of excess and surplus property.
5 Utilization/issue feedback on other equipment (e.g., motor
equipment, equipment pool items, and tool crib items), listed as
optional elements under this measure, is desirable and should
be
considered for inclusion under this measure.
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issue rate for the period.
and
(2) If equipment pool/tool crib items are included under
this measure, determine the population size for each
equipment pool and tool crib reviewed during the period.
For small equipment pools and tool cribs, determine actual
usage/issue rates for the period. For larger equipment
pools and tool cribs, select a statistically valid random
sample. Determine the usage/issue rates for each item in
the random sample. Establish an estimated population
usage/issue rate for the period using statistical methods.
Results: (1) Compare the actual usage/issue rates for motor
vehicles (and motor equipment if included under this
measure) for the period with the established usage/issue
standards or objectives. As necessary, determine the
course of action needed to bring about improved
vehicle/equipment usage/issue rates for items falling below
the standards or objectives. Consider tracking the course
of action under one of the BSC perspectives, as
appropriate.
and
(2) If equipment pool and tool crib items are included
under this measure, compare the actual/estimated
equipment usage/issue rates for the period with the
established standards or objectives. As necessary,
determine the course of action needed to bring about
improved equipment pool/tool crib usage/issue rates for
items falling below the standard or objective. Consider
tracking the course of action under one of the BSC
perspectives, as appropriate.
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Internal Business Processes Perspective
Implementing Guidance
Core Measure #3
Objective: Establish and maintain effective life cycle management6 of
assets to meet Departmental missions.
Core Measure: Timely Disposition. Percent of excess and surplus
property disposed within 180 days, computed as follows:
% = Number of Items Disposed Within 180 Days
Total Number of Items Disposed
National Target: 90% of disposal actions completed within 180 days7 of turn
in for disposition.
Local Target: A local target of less than 180 days may be established.
Suggested Data Source: Excess and surplus property disposal records.
Suggested Measuring Determine the population size for all disposal actions
Method: completed during the period. Select a statistically valid
random sample from the population. Determine the
percentage of sampled disposal actions that were
complete within 180 days. Establish a timely disposal
percentage for the population during the period based on
the statistical sampling results.
6 The effective life cycle management objective includes the
following subobjectives: (1) accountability for Departmental
assets, (2) effective utilization of equipment, and (3) timely
disposition of excess and surplus property.
7 The 180 day Departmental expectation applies to routine
disposal actions. The Department recognizes that disposal
actions involving hazardous materials, radioactive items, High
Risk items, etc. often require extra-ordinary processing (e.g.,
rad
testing) that create delays during the disposal cycle. Delays
attributable to such factors as use of GSA sales services and
implementation of the Economic Development program should
be evaluated to determine if alternative sources of service are
available or program changes are appropriate.
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Results: Review those sampled disposal actions that were not
completed in a timely fashion and determine what caused
the delays. Determine if systemic problems exist affecting
timely disposition that require attention. As necessary,
determine the course of action needed to improve the
timely disposal percentage. Consider tracking the course
of action under one of the BSC perspectives, as
appropriate.
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