Public property management occurs when a third-party contractor oversees the daily operations of government real estate.
According to the definition, public property encompasses all substantial property owned by the government. Leased assets are also included. There are two types of leased assets: those leased by the Administration and those leased by the contractor.
In reality, the Administration does not own the land it leases to a company. When the Administration leases property and then delivers it to a contractor under a contract, it instructs the contractor to treat the property as if it were the property of the Administration for the duration of the contract.
These assets must be managed, regulated, safeguarded, and conserved in accordance with the contract agreement and the contractor’s asset management system.
The government must give disposal instructions when the contract expires or when the rented property is no longer desired. Depending on the conditions and circumstances of the lease contract, the leased assets may be delivered to the leasing company or purchased.
Assets rented by the contractor and subsequently used in the execution of the project are not included in the definition of “government assets,” even if the Administration pays the rental fee. The terms of the lease contract that the contractor has with the leasing company bind him.
Property management agencies may be subject to sections or all of this provision, with associated administrative costs depending on the type of contract and the contractual environment.
In many ways, the management of public property is as perplexing and full of potential pitfalls as the accounting for public contracts.
How many types of public property are there?
Public property includes special tools, equipment, materials, special testing equipment, and real property.
Examples of public property
Public property is any real property owned by the Administration or one of its agencies rather than a private entity or corporation.
Public property belongs to the general public. Examples of public property are streets, thoroughfares, libraries, promenades, playgrounds, and schools, which are often used by the general public.
Public property management plan
The GP clause requires contractors to develop and implement property management plans, methods, and processes, regardless of the type of contract, to safeguard the interests of the Administration and prevent risks. The following significant aspects of the strategy must be addressed:
- Acquisition of goods
- Records of receipt of State property
- Physical inventory of public property
- Control of subcontractors
- Reports
- Use of public property
- Conservation and maintenance
- Real Estate Closing
Services offered by public property management agencies
Evaluations
Identifying and addressing deficiencies in a property management system can be the difference between a successful management audit and a failed one. We can evaluate the gaps in your current real estate system and provide you with a list of compliance issues and ideas for improvement.
Implementation
The team works with you to adopt best practices, standards, and protocols while teaching and training your staff to manage the system independently, whether you are new to the process or need help updating the existing system.
Policies
Developing sufficient guidelines and procedures is the initial step to good property management. Some professional public property management agencies can draft their property manuals with procedures consistent with policies.
Contractor Self-Assessment (CSA)
A functional property management platform should conduct annual internal self-assessments of its structure. They conduct CSAs for contractors of all sizes to help you meet this obligation. To fulfil your need for a yearly CSA, staff will visit your location, conduct these audits, and provide a report that you can submit to the DCMA.
Training
Our training can be completed online or even at your premises, and we offer courses tailored to the specific needs of your property. We focus on educating your staff about your FAR and DFARS compliance standards, processes, and needs.