Real Property Asset Management

1
Real Property Asset Management
Eduard A. Dailide, P.E. Deputy Director,
Facilities and Infrastructure Office of
Engineering and Construction Management
February 19, 2004
2
DOE Real Property Portfolio

• Land 2.6 Million Acres (Yucca may add 0.75-0.5M)
• Buildings
• Owned 127.0 million Gross Sq Feet
• Leased 24.0 million Gross Sq
  Feet
• Laboratories 30.5 million Gross Sq Feet
• Production 44.6 million Gross Sq Feet
• Office 17.47million Gross Sq Feet
• Total Replacement Value of Improvements 73.1
  Billion
• (Not including land)
• Annual Facilities and Infrastructure budget over
  3 billion

3
Perspectives

• Weakness in the acquisition and management of the
  Departments real property assets have been
  highlighted by
• Congress
• General Accounting Office
• National Academies of Sciences and Engineering
• DOE Inspector General

4
GAO Reports

• GAO-03-122, Jan 2003, places Federal Real
  Property as a High Risk Area due to
• Deteriorated and outdated property portfolio
• Excess and underutilized inventory
• Lack of quality facility data
• No comprehensive and integrated planning
• GAO-03-100, January 2003, Major Management
  Challenges and Program Risks, Department of
  Energy
• DOE faces major challenge in revitalizing
  infrastructure

5
Facility Data
FY 2003 was funded at 1.2 of RPV
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Departmental Responses

• Issued
• DOE Order 413.3, Program and Project Management
  for the Acquisition of Capital Assets, October
  13, 2000
• DOE Manual 413.3-1, Project Management for the
  Acquisition of Capital Assets, March 28, 2003
• DOE Order 430.1B, Real Property Asset Management
  (RPAM), September 24, 2003
• Combined they
• Put the Department on the path to improve the
  acquisition and management of its real property
  assets over the life-cycle.

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Real Property Asset Management
RPAM DOE O 430.1B
DOE O 413.3
Integrated plan within a geographic area that
supports Departmental and Program guidance
8
DOE Project Management Process
Range of Alternatives
Cost Range
Transition/Closeout Phase
Initiation Phase
Definition Phase
Execution Phase
PED funds
Project funds
Operating funds/ Program funds
PED funds
Operating funds/ Program funds
Performance Measurement Earned Value (for
projects over 20M)
CD-1 Approve Alternative Selection and Cost Range
CD-2 Approve Performance Baseline
CD-4 Approve Start of Operations or Project
Closeout
CD-0 Approve Mission Need
CD-3 Approve Start of Construction
Critical Decisions
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Ten Year Site Plans

• Ten Year Site Plan Features
• Integrates functional components of land use,
  facilities and infrastructure acquisition,
  maintenance, recapitalization, safety security,
  and disposal plans into comprehensive site-wide
  management plan.
• Links Facilities and Infrastructure resource
  requirements to Ten Year Site Plans to Mission.
• Requires assessment of past performance and
  projected future outcomes.
• Strengthens communication and accountability
  between programs / sites / and tenants.
• Requirements Driven.

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Communication of Requirements
DOE Strategic Plan Planning Guidance
Program Guidance
Tenant Requirements
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Resource Requirements
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Performance Measurement

• RPAM establishes three corporate outcome measures
  for real property asset management
• Asset Condition Index (ACI)
• Asset Utilization Index (AUI)
• Quarterly Maintenance Budget Execution versus
  Plan
• Norm for annual maintenance is 2-4 of
  Replacement Plant Value per the National
  Academies of Sciences and Engineering and
  industry standards.
• Project Management Order and Manual establish the
  Earned Value Management System as the performance
  measure for acquisitions.
• Programs and site managers should develop
  additional metrics to measure attainment of
  program goals.
• Ten Year Site Plans should establish requirements
  and expected outcomes for performance
  measurement.

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Summary Statistics
The DOE target for FY04 is that 90 of projects
have Green status both by number and dollar
value.
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FI Summary Statistics
SAMPLE
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Facility Information Systems

• Facility Information Management System (FIMS)
• Departments official real property asset
  database.
• Repository for real property inventory /
  condition assessment / maintenance data / LTS
  requirements.
• Feeder into Departments financial reporting
  systems.
• Data source for TYSPs, management analysis,
  assessments, and outcome measures.

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Executive Order 13327Federal Real Property Asset
Management

• Directs executive branch departments and agencies
  to
• Recognize importance of real property resources
  through increases management attention.
• Establish clear goals and objectives.
• Improve levels of accountability.
• Establishes Federal Real Property Council at OMB.
• Requires agencies to develop and submit asset
  management plans.
• New Program intiative Federal Real Property
  Asset Management added to Presidents Management
  Agenda

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Executive Order 13327Federal Real Property Asset
Management
Executive Order Policy to promote the efficient
and economic use of Americas real property
assets to assure management accountability for
implementing Federal real property management
reforms.
DOE Order 430.1B Objective to establish a
corporate, holistic and performance-based
approach to real property asset management that
links real property asset planning, programming,
budgeting, and evaluation to program mission
projections and performance outcomes. Order
identifies requirements and establishes reporting
mechanisms and responsibilities for real property
asset management
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Executive Order 13327Federal Real Property Asset
Management
RPAM
Executive Order

• Develop implement agency asset management plan.
  
• Identify all agency real property
• Prioritize actions to manage real property
  inventory

• RPAM establishes corporate asset management plan
  linking assets to mission to outcomes. (1.)
• Facilities Information Management System (FIMS)
  is the corporate database for real property asset
  info. (4.b.(8).(a))
• Ten Year Site Plans (TYSP) must address how real
  property assets support DOEs strategic plan and
  missions. (4.a.(3))

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Executive Order 13327Federal Real Property Asset
Management
RPAM
Executive Order

• Managers shall assess application of Value
  Engineering to achieve essential functions at
  lowest life-cycle costs. (4.f)
• Asset Utilization Index and Asset Condition Index
  are the corporate measures for real property
  asset management. (4.g)
• Ten Year Site Plans (TYSP) must address how real
  property assets support DOEs strategic plan and
  missions. (4.a.(3))
• FIMS is the corporate database for real property
  asset info. (4.b.(8).(a))

• Life-cycle cost estimations
• Identify asset management performance measures
• Manage assets consistent with agencys strategic
  and asset management plan
• Provide real property asset inventory

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Challenges

• Successful implementation dependent upon
• Clear definition and communication of
  requirements and expectations.
• Effective communication at all levels.
• Integration of multi-program requirements.
• Valid data.
• Qualified facility management staff.
• Federal government employees.
• Contractor facilities managers.

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Backup Slides
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Roles Responsibilities

• Departmental
• Policy / Oversight
• PPB E
• Metrics

OMBE
OECM
LPSO
CSO/PSO
HQ Coordination
Mission / Program
Mission / Program /
Requirements / Resources TYSP ( Program / Support)
Infrastructure
Requirements / Resources TYSP ( Program /
Infrastructure)
Field Program Office
Site

• Site Manager
• Geographic Area Coordination
• Host for tenant Programs / Activities
• Infrastructure Support Provider
• TYSP Coordinator