A contractor self-assessment (CSA) is a way for contractors to examine the effectiveness of their government property management system and ensure compliance with regulations. It involves creating a review plan, conducting an objective assessment using statistical sampling, identifying areas for improvement, putting systems in place to manage property, and sharing results and taking corrective action. Regular CSAs can help contractors strengthen their processes, save time and money, and avoid penalties from government audits.

2. If you’re like me, just hearing the
word ‘assessment’ makes you
tense up a bit.

3. But contractor self-assessments don’t
have to be nerve-wracking.

4. So, what is a
Contractor Self-Assessment?

5. A contractor self-assessment or CSA is
a way to examine the effectiveness of
your government property management
system.*

6. A contractor self-assessment or CSA is
a way to examine the effectiveness of
your government property management
system.*
*This includes everything from the acquisition/receipt of property through property closeout.

7. Conducting a contractor self-assessment is
critical for complying with government
regulations like FAR 52.245-1.

8. It can also help you avoid the penalties
associated with noncompliance, like receiving
a Corrective Action Request (CAR) during
your next DCMA audit.

9. Ultimately, a CSA can expose
strengths and weaknesses in your
system that, if improved, can result in
time and money saved.

10. Let’s go over the 6 ways you can
ensure your next CSA is a success!
Knowing that…

11. 1 Find an Executive Sponsor

12. Government Property Management is
one of the six mandatory business
systems outlined by the Department of
Defense (DoD).

13. But it’s still rare to find a C-level executive
who is tasked with prioritizing property
management.

14. Our advice is to secure an executive
sponsor.

15. Find someone at a high level who will support
property management initiatives like
Contractor Self-Assessments & ensure
property management receives the attention
and investment it deserves.

16. Find someone at a high level who will support
property management initiatives like
Contractor Self-Assessments & ensure
property management receives the attention
and investment it deserves.

17. 2 Create, Review, and Plan

18. It may sound simple, but your plan is vital
to conducting an effective CSA.

19. Your plan should include the who, what,
where, when, why, and how of your Contractor
Self-Assessment.

20. Make sure you’ve included metrics for each
of the outcomes subject to review as
identified by FAR 52.245-1.

21. This will cover everything from acquisition
through project closeout, and give you a
pretty comprehensive look at your property
management program.

22. Another key consideration here is your
methodology.

23. Will you closely follow processes established
by a governing body (e.g. DCMA), or will you
look to develop your own internal
procedures?

24. Will you closely follow processes established
by a governing body (e.g. DCMA), or will you
look to develop your own internal
procedures?
Both options have their benefits.

25. One method may already be tested and proven,
while developing your own could allow you to
combine the requirements of multiple regulations
(e.g. FAR, DFAR, OMB, GAAP).

26. 3 Keep it Objective

27. A critical component to a successful self-
assessment is keeping it objective.

28. First, the assessment should be
performed by an unbiased source.

29. Options include someone from your own
internal audit function, an uninfluenced
property professional from another site, a
subcontractor, or a third-party
independent consultant.

30. Second (and as a bit of a data junkie I
love this one) the assessment should
leverage appropriate statistical
sampling techniques.

31. Someone once said to me, “You can get 9/10
dentists to agree to anything. You just have to
ask the right 10 dentists.”

32. The same goes for government property
management.

33. The property records for 9/10
assets might be perfect.
You just have to look at the right
10 assets.

34. To ensure you’re evaluating a strong representative
sample of government property, you’ll want to
confirm that your sample size is large enough and
that the sample is randomly generated.

35. 4Watch Out for these Hang Ups

36. When evaluating your property management
program against each of the ten outcomes
identified by the FAR, you will likely identify
some areas for improvement.

37. There are a few places where it can be easy
to get caught up and a few places where
implementing best practices can make a big
difference.

38. For example, be sure the property management
team is involved in the proposal stage.
This will help when it comes to understanding
the requirements of the contract and being
prepared to meet them upon contract
transition.

39. In addition, integrating your government
property management system with your
procurement system can help streamline your
property administration efforts include.

40. This eliminates double data entry and
ensures every entry is being caught.
It also establishes a cross-functional contract
closeout team to help accelerate the process.

41. Download this self-certification whitepaper
for a larger list of high level best practices
and common mistakes

42. 5 Put a System in Place

43. According to the FAR,
contractors are required to:
“initiate and maintain the
processes, systems,
procedures, records, and
methodologies necessary for
effective and efficient control
of Government property.”

44. A system doesn’t necessarily mean technology.
But we’ve seen far too many instances where
not having the right system in place has made it
much more difficult to conduct (and pass) a
Contractor Self-Assessment.

45. One of the most common occurrences is
outgrowing spreadsheets and not realizing it
until it’s too late.

46. Managing 1-200 pieces of government
property in a spreadsheet might be doable.
But as your business grows, suddenly you’re
managing hundreds or thousands of assets
with a larger team.

47. A spreadsheet just isn’t
going to cut it.

48. Implementing an automated system gives
you the opportunity to manage government
property more effectively and efficiently.

49. Features to look for include (but are not limited to)
being able to:
(1) easily search asset records and history
(2) conduct an onsite, physical inventory with
handheld scanners
(3) automate processes like report creation, IUID
registry updates, and DD1149 form generation

50. 6 Share the Results and Take
Action

51. Lastly, there’s not much value in
completing a Contractor Self-Assessment
if you don’t have a plan for sharing the
results and taking action.

52. Government regulation requires the results be
shared not only internally but externally with
your property administrator as well.

53. Taking action can depend on the severity
of the defect.

54. A minor defect that is not systemic may be
handled with an informal plan for corrective
action.

55. A more major or critical defect which
indicates a greater cause for concern or
increased risk to the government should be
handled in a more formal way.

56. The root cause of the problem needs to be
identified and a formal plan of action put in
place.

57. We understand that managing large amounts
of government property can be a challenge.

58. With several regulations guiding how property
needs to be tracked from acquisition through
project closeout, property managers have
their hands full.

59. However, having a flexible, user-friendly
property management system can help!

60. We hope with this new knowledge and a flexible
property management system, your next CSA is a
breeze!

61. Click here to read the full blog post on
Contractor Self-Assessments