Federal Real Property Asset Management Initiative

1
Federal Real Property Asset Management Initiative

• Federal Preservation Officers
• Monthly Meeting
• June 21, 2005

2
Background

• January 2003 - Government Accountability Office
  (GAO) identified real estate as a High-Risk
  federal program.
• October 2003 GAO testimony concluded that
  Federal real property is deteriorating and
  decision makers lack reliable data.
• February 2004 - Executive Order (EO) 13327
  Federal Real Property Asset Management was
  signed by the President.
• Improved asset management was a new initiative
  added to the Presidents Management Agenda (PMA).

3
Federal Government Real Property Portfolio

• 3.3 billion square feet of space
• 655 million acres of land
• January 2003 GAO report identified
• Governments inventory valued at 328 billion
• DOD spends 3-4 billion annually to maintain
  unneeded facilities
• VA spends 35 million annually to maintain vacant
  space
• Energy spends 70 million annually maintaining
  excess facilities
• April 2005 - OMBs Clay Johnson testifies before
  Congress
• . . . the Government is disposing of 15 billion
  in unneeded government real property and
  redirecting funds to higher priority asset
  management uses . . .

4
Legislative Initiatives for Real Property Reform

• S. 2805 - Federal Property Asset Management
  Reform Act of 2000 106th Congress
• S. 1612 Freedom to Manage Act of 2001 -
  107th Congress
• H.R. 3947 Federal Real Property Asset
  Management Reform Act of 2002 - 107th
  Congress
• H.R. 2548 Federal Real Property Asset
  Management Reform Act of 2003 - 108th
  Congress 6/19/03 Amended and passed by the
  Committee
• H.R. 2573 - Public Private Partnership Act of
  2003 - 108th Congress
• Proposed legislation if enacted would have
  authorized landholding agencies to retain
  proceeds and to use tools, such as
  exchanges/sales and subleases/outleases to
  non-Federal sources.
• Note GSA , OMB , and other landholding agencies
  are in the process of developing a legislative
  strategy allowing for the use of industry
  techniques in the management of Federal real
  property.

5
EO 13327

• Created to promote efficient and economical use
  of the Federal governments real property assets
• Established the position of Senior Real Property
  Officer (SRPO) and the Federal Real Property
  Council
• Directed the SRPOs to develop and implement
  asset management planning process/agency asset
  management plans
• Directed development of performance measures
• Directed the establishment of a governmentwide
  real property inventory database

6
FRPC Guiding Principles

• Support agency missions and strategic goals
• Use public and commercial benchmarks and best
  practices
• Employ life-cycle cost-benefit analysis
• Promote full and appropriate utilization
• Dispose of unneeded assets
• Provide appropriate levels of investment
• Accurately inventory and describe all assets
• Employ balanced performance measures
• Advance customer satisfaction
• Provide safe, secure and healthy workplaces

7
FRPC Committees

• Asset Management - chaired by the General
  Services Administration
• Inventory - chaired by the Department of Defense
• Performance Measures - chaired by the National
  Aeronautics and Space Administration
• Systems - chaired by the Department of Agriculture

8
Office of Governmentwide Policy (OGP) Office of
Real Property Management

• Provides support to the four FRPC Committees in
  developing
• Asset management baseline data
• Inventory standards and database
• Performance measures reporting
• Promotes other tools for effective asset
  management

9
FRPC Accomplishments

• Asset Management
• Developed asset management guiding principles
• Developed a template for an asset business plan
• Developed an asset business plan shelf document
• Inventory
• Formulated management objectives and derived 23
  data elements
• Performance Measures
• Established 4 performance measures to be used in
  conjunction with a disposition algorithm
• Systems
• Established data and other IT standards for the
  federal real property inventory database

10
Asset Management Plan Template

• Each Real Property Asset Management Plan must
  include
• Integrated Guiding Principles
• Agency-Specific Owner's Objectives
• Periodic Evaluation of All Assets
• Prioritized Operations and Maintenance Budget and
  Plan
• Prioritized Capital Budget and Plan
• "Building Block" Asset Business Plans in Agency
  Portfolio Context
• Continuous Monitoring and Feedback Mechanism
• Consideration of Socio-Economic-Environmental
  Responsibilities
• Adequate Human Capital Support of Asset
  Management Organization
• Common Governmentwide Terminology

11
Inventory Data Elements
12
Historical StatusData Element

• Buildings or structures that have one of the
  following attributes 1. Historic Landmark
  (NHL)
• 2. National Register Listed (NRL)
• 3. National Register Eligible
• 4. Non-contributing element of
  NHL/NRL district
• 5. Non Applicable
• Note The collection of these 23 data elements
  is in line with EO 13287s desire to assess the
  current status of the governments historic
  properties inventory, including the general
  condition and management needs of such
  properties.

13
First Tier Performance Measures

• Utilization
• Condition Index
• Mission Dependency
• Annual Operating and Maintenance Costs

14
FY 2005 Inventory Report (Modified FRPP)

• Capture data at the constructed asset level
• Accept data from agencies more frequently than an
  annual submission
• Run a disposition algorithm, currently under
  development, using the 23 data elements
• Provide an automated low-cost data interface to
  the agencies and a web interface for entering
  data for agencies with small asset inventories
• Maintain ability to store historic data from
  initial FRPC submission
• Allow agency staff (end user) to run queries and
  create custom reports
• Run quality assurance checks on data received

15
FY 2006 Inventory Report

• Integrate the performance measures
• Run enhanced standardized reports for performance
  measures, including agency comparisons and
  progress against government-wide targets
• Maintain in the system historical data on assets
  after disposal is completed
• Add edit/validation on data received from
  agencies at a level TBD
• Expand database to capture additional data
  elements as directed by the FRPC

16
Agency Tasks for FY 2005 Inventory Report

• GSA will send out data call to agencies in
  June/July.
• Agencies can begin submitting data in
  September.
• Deadline for data submission is November.
• Note Agencies are required to report data at
  the constructed asset level. Any deviations from
  this constructed asset level must be coordinated
  with OMB.

17
FRPC Future Developments

• Asset Management
• Develop a FRPC communications and website
  strategy
• Develop a legislative reform initiative
• Inventory
• Complete a data dictionary defining the 23 data
  elements
• Assess agencies to determine their ability to
  submit data for FY 2006 inventory report
  stress testPerformance Measures
• Develop additional measures for FY 2006
• Analyze the disposition algorithm/decision tree
  -- pilot test the algorithm
• Systems
• Conduct a cost/benefit analysis
• Develop a System Reference Document -- a guide
  to be used by agencies when developing a real
  property database
• Develop system requirements and timeframe for
  the to be system

18
OGP Office of Real Property ManagementRecent and
Planned Activities

• Issued in February - Real Property Performance
  Results 2004 seventh annual analysis of real
  property performance in the Federal office space
  sector
• Issued in May Real Property Performance Results
  2004 Special Edition pilot study benchmarking
  operating costs of monumental Federal buildings
• Convening Regular Users Group Meetings to discuss
  the modified FRPP
• Hosting a Biannual Meeting in September for the
  Federal Real Property Advisory Group
• Publishing Federal Real Property Profile report
  for FY 2004 inventory (Available online at
  http//www.gsa.gov/realpropertyprofile)

19
OGP Contact

• Dennis Goldstein [phone] dennis.goldste
  in_at_gsa.gov
• View link on GSAs web for FRPC-related
  information www.gsa.gov, policy, real property,
  FRPC