National Strategy for the Efficient Use of Real Property Fiscal Years 2015 - 2020 I VAN G RAFF Lemont, IL May 6, 2015

National Strategy for the Efficient Use of Real PropertyFiscal Years 2015 - 2020

IVAN GRAFFLemont, IL

May 6, 2015

Agenda• Background• Purpose• Assumptions• Expected Actions

May 6, 2015 FIMS / RE Training 2

Background• Published March 25, 2015• Writers:– Office of Management and Budget (OMB)– General Services Administration, Office of

Government-wide Policy (GSA)• Responds to a Government

Accountability Office (GAO) recommendation [GAO Report 12-645]


Purpose• GAO Recommendation: “Publish a national strategy for

managing federal excess and underutilized real property”– Directed to Chair of the FRPC– In collaboration and consultation with FRPC member agencies

• The National Strategy should include:– A statement of purpose, scope, and methodology;– Problem definition and risk assessment;– Goals, subordinate objectives, activities, and performance

measures, including the milestones and time frames for achieving objectives;

– Resources, investments, and risk management;– Organizational roles, responsibilities, and coordination; and– Integration and implementation plans.


Assumptions• Agencies must:

1. Acknowledge they have too many buildings

2. Curtail their acquisitions3. Consolidate personnel and stored

items4. Must dispose of un- and under-utilized

real property beginning with leased assets

5. Fund this work through their own budgets.May 6, 2015 FIMS / RE Training 5

Expected Actions• Consolidate!– Identify un- and under-utilized office and

warehouse space• Optional: For GSA space, Consolidated

Activities Program [utilization surveys]• Optional: For all spaces, Client Portfolio

Planning (CPP) [utilization surveys]– Consolidate personnel and stored items– Dispose of the emptied buildings


Expected Actions• Reduce! (or at least, Freeze!)– Reduce or at least hold constant the

portfolio of office and warehouse buildings

– Increase the number and rate of asset disposals with GSA’s assistance

– Participate in pilot disposal demonstration initiatives


Expected Actions• Cooperate!– Respond to requests from GSA as it:• Validates and verifies Federal Real Property

Profile (FRPP) data• Migrates the FRPP to a new database



Questions or concerns?Ivan Graff

(202) [email protected]

FIMS / Real Estate Training 10

FREEZE THE FOOTPrINTAn Update

As Presented by Ivan GraffOffice of Asset Management

May 6, 2015


Agenda• A Brief History of the Initiative• The Most Recent Rules• Performance in FY 2013 and 2014• FY 2015: Bridging Past, Present, and Future• A Digest of the New Memorandum• Questions in Need of Answers• Next Steps

May 6, 2015


A Brief History of Freeze the Footprint

Date Who What

05/11/12 OMB M-12-12

12/15/12 DOE FY12 FRPP Submit

03/14/13 OMB MPM-2013-02

03/27/13 GSA Prelim. FY12 Baseline

04/12/13 DOE Internal Info. Request

06/18/13 DOE Submitted Draft Plan

09/03/13 DOE Submitted Final Plan


01/07/14 GSA FY13 Assessment

Date Who What

01/23/14 DOE AAIM Module

04/17/14 OMB Rules Revision Email

04/23/14 GSA Rev. FY13 Assessment

05/21/14 DOE FY13 Self Evaluation

07/15/14 GSA FY14 FRPP Data Dict.


01/06/15 GSA FY14 Assessment

03/25/15 OMB MPM 2015-01

04/09/15 DOE FY14 Self Evaluation

May 6, 2015


The Most Recent Rules• Based on:– Office of Management and Budget email, April 17,

2014– FRPP Data Dictionary, July 15, 2014

• GSA maintains DOE has 498,404 SF as of FY 2014

May 6, 2015

BaselineBaseline Remains

Newly Acquired

Reports of Excess to

GSA


What’s Included? • Office or warehouse assets . . . – Inventoried in the Federal Real Property Profile – As of FY 2012 – Inventoried first as such in FY 2013 or thereafter– For which DOE has GSA occupancy agreements

• Building area recorded in the most recent year– Gross building area for DOE-owned & -leased– Useable building area for occupancy agreements– Land and structures have no building area

• Offsets only for Reports of Excess to GSA for buildings in the FY 2012 inventory

May 6, 2015


What’s Included? • Not relevant –– Usage code changes• From predominant-use office or warehouse • To predominant-use office or warehouse • What matters: The asset’s usage in the baseline or when

first inventoried thereafter– Ownership changes• From DOE-owned or -leased • To DOE-owned or -leased • What matters: DOE-owned & leased, GSA-owned &

leased vs contractor-owned & leased, permits

May 6, 2015


GSA Tabulation Method, Jan. 2015

A.Using the FY 2014 inventory submission:1. Add up the FY 2014 area of all the remaining buildings

included in the FY 2012 FtF baseline.2. Add to this the area of all buildings first inventoried

after FY 2012 with an office or warehouse use code.3. Subtract the area of all buildings with a report of excess

date and an office or warehouse use code.B. Add to this the GSA-supplied usable building area

tally for occupancy agreements.C. Subtract the FY 2012 baseline from this tally.

May 6, 2015


Examples

May 6, 2015

2012 2013 2014 Result

# 1EXCESS

Offset

# 2 Ignored

# 3 Included


Examples

May 6, 2015

2012 2013 2014 Result

# 4ADD

No Area

# 5 Included

# 6 No Area

EXCESS


Revised FY 2013 Position

May 6, 2015

PGM DOE O and D GSA OAs Total DOE O and D GSA OAs Total FtF BalanceEA 13,698 0 13,698 13,698 0 13,698 0EE 411,951 70,786 482,737 411,951 91,807 503,758 21,021EM 9,328,626 587,384 9,916,010 9,275,524 582,319 9,857,843 -58,167FE 986,072 10,698 996,770 984,335 8,991 993,326 -3,444FERC 0 508,686 508,686 0 508,686 508,686 0IN 0 15,738 15,738 0 12,920 12,920 -2,818LM 91,687 57,517 149,204 94,705 57,517 152,222 3,018MA 16,824 1,819,305 1,836,129 19,469 1,695,401 1,714,870 -121,259NE 1,171,585 0 1,171,585 1,158,727 0 1,158,727 -12,858NNSA 11,632,999 276,202 11,909,201 11,306,502 274,666 11,581,168 -328,033NR 1,402,206 0 1,402,206 1,529,559 0 1,529,559 127,353PA 1,482,072 551,498 2,033,570 1,772,487 545,465 2,317,952 284,382SC 5,162,126 136,153 5,298,279 5,212,134 166,403 5,378,537 80,258

Total 31,699,846 4,033,967 35,733,813 31,779,091 3,944,176 35,723,267 -10,546

FY 2013 GSA Revision April 23, 2014FY 2012 Baseline Approved by GSA

NOTE: DOE Owned and Leased Assets measured in gross square feet; GSA Occupancy Agreements in useable square feet


FY 2014 Position

May 6, 2015

NOTE: DOE Owned and Leased Assets measured in gross square feet; GSA Occupancy Agreements in useable square feet

FY 2012 Baseline Approved by GSA FY 2014 DOE Based on GSA

PGM DOE O and D GSA OAs Total DOE O and D GSA OAs Total FtF BalanceEA 13,698 0 13,698 13,698 0 13,698 0EE 411,951 70,787 482,738 411,951 16,844 428,795 -53,943EM 9,328,626 587,385 9,916,011 9,279,528 561,032 9,840,560 -75,451FE 986,072 10,698 996,770 984,113 50,324 1,034,437 37,667FERC 0 508,686 508,686 0 508,587 508,587 -99IN 0 15,738 15,738 0 12,920 12,920 -2,818LM 91,687 57,517 149,204 94,705 57,517 152,222 3,018MA 16,824 1,819,305 1,836,129 19,469 1,701,973 1,721,442 -114,687NE 1,171,585 0 1,171,585 1,118,751 0 1,118,751 -52,834NNSA 11,632,999 276,202 11,909,201 11,403,853 263,768 11,667,621 -241,580NR 1,402,206 0 1,402,206 1,672,100 0 1,672,100 269,894PA 1,482,072 551,498 2,033,570 1,196,835 583,621 1,780,456 -253,114SC 5,162,126 136,153 5,298,279 5,147,667 136,153 5,283,820 -14,459

Total 31,699,846 4,033,969 35,733,815 31,342,670 3,892,739 35,235,409 -498,406


FY 2015: A Pivotal Year• Final year of comparison to FY 2012 Baseline• Basis for FY 2016 – FY 2020 Baseline• Would have had to update the “Freeze the

Footprint” plan under MPM-2013-02 . . .• OMB published replacement guidance, MPM-

2015-01, on March 25, 2015

May 6, 2015


Federal Real Property Profile 2015

May 6, 2015


FRPP FtF Related Validation 2015

May 6, 2015

Data Anomaly Universe of Data Anomaly

Lower Threshold

Upper Threshold

FTF SF Decrease

FTF Criteria for All Office and Warehouse assets

None Flag FTF asset where the SF decreased in 2015 compared to 2014

FTF assets Disappear

FTF Criteria for All Office and Warehouse assets

Explain why a FTF asset (based on RPUID) was not reported (missing asset report)

Explain why a FTF asset (based on RPUID) was not reported (missing asset report)


Reduce THE FOOTPrINTAn Introduction

As Presented by Ivan GraffOffice of Asset Management

May 6, 2015


Replacement OMB Policy FY 2016 – FY 2020, Highlights

• Freeze the Footprint for Offices and Warehouses – Baseline from the FY 2015 FRPP submission

• Reduce the Footprint– Reduction targets for owned (a) office, (b)

warehouse, & (c ) all other uses– Document for dispositions . . .

• Investment costs• Cost reductions over one and seven year periods

• Set a Standard for Office Space Allocation

May 6, 2015


Timeline

May 6, 2015

Date Who What04/14/2015 GSA Draft monitoring and reporting methods and templates04/29/2015 DOE Comments on draft methods and templates05/19/2015 GSA Final methods and templates.07/10/2015 DOE Real Prop. Efficiency Plan (RPEP), FYs 2016 - 2020 – draft final09/10/2015 DOE Real Property Efficiency Plan (RPEP), FYs 2016 - 2020 – final12/31/2015 DOE CFO FRPP accuracy certification letter due to GSA30 days later DOE Receive then comments due on FY 2015 FtF baseline02/13/2016 GSA FRPP data analysis03/15/2016 DOE Real Prop. Efficiency Plan (RPEP), FYs 2017 - 2021 – draft final03/25/2016 DOE Newly Acquired or Renovated Office Workstations Standard60 days later DOE Meet with GSA then finalize RPEP, FYs 2017 - 202112/31/2016 DOE CFO FRPP accuracy certification letter due to GSA02/13/2017 GSA FRPP data analysis03/15/2017 DOE Real Prop. Efficiency Plan (RPEP), FYs 2018 - 2022 – draft final60 days later DOE Meet with GSA then finalize RPEP, FYs 2018 - 202212/31/2017 DOE CFO FRPP accuracy certification letter due to GSA

CYCLE REPEATS TWICE MORE THROUGH FY 2019


Federal Real Property Profile 2015

May 6, 2015


A Closer Look at the Requirements

May 6, 2015

REDUCTIONS FREEZING

Office Warehouse Other Office & Warehouse

DOE Owned? ● ● ● ●DOE Leased, GSA-Owned, & -Leased? ● ● ●

Building Area? ● ● ● ●Building Count? ●

Baseline? ●Annual Net Reduction Target? ● ●

Disposals Only Target? ● Asset Level Attribute Data? ● ●

Summary Level Attribute Data? ● Asset Level Prior Year Cost Data (≥ 2,500 GSF)? ● ●

Summary Level Prior Year Cost Data? ●


Real Property Efficiency Plan (RPEP)• Updated annually, with a rolling five year time

span• Contents– Internal controls• Route acquisition decisions• “Reserve” disposed or excess space for acquisitions• Waive office workstation design standard• Track space acquisitions or dispositions• Prioritize dispositions based on investment return,

mission, etc.

May 6, 2015


RPEP Contents (2 of 4)• Targets for owned –

– Office building area reductions– Warehouse building area reductions– Other building disposals (number and area)

• Narratives on –– Cost effective alternatives to acquisition– Plans to increase the efficiency of office space– Prioritizing consolidations and disposals– Strategies for achieving goals without compromising mission– The project planning and budgeting process– Calculating, retaining, and sharing costs incurred and avoided– Freeze the Footprint successes and challenges (publish)– 3 examples of office or warehouse space reductions (publish)

May 6, 2015


RPEP Contents (3 of 4)• Office and Warehouse– Acquisitions– Expansions– Consolidations– Co-locations– Disposals

• Asset Level Data, Years 1, 2, & 3– RPUID– Use

– Size– Ownership– Location– Est. Disposition Date– Est. Acquisition Date

• Year 4 & 5– Net office building

area changes– Net warehouse

building area changes

May 6, 2015


RPEP Contents (4 of 4)• Documentation of Costs

– Projects completed in the previous fiscal year– One and cumulative seven-year time periods

– Office and warehouse space– Owned and leased– ≥ 2,500 square feet

• Asset-level investment costs• Asset-level cost reductions

– Other space (owned only)• Total investment costs• Total cost reductions

May 6, 2015


Newly Acquired or Renovated Office Workstation Standard (NAROWS)

May 6, 2015

“[A] gencies shall issue a . . . design standard for maximum useable square feet by workstation for use in the design of owned and leased domestic office space, including GSA occupancy agreements, that it occupies.” MPM 2015-01, Section I(2)

“The policy shall apply, at a minimum, to all spacerenovations and new acquisitions for all agency

components. Agency components may implement different standards based upon mission

requirements.” MPM 2015-01, Section I(2)


Questions in Need of Answers

May 6, 2015

Portfolio Optimization

Space Standard

Disposition Targets Documentation

of Costs


Next Steps

1. GSA to finalize guidance and templates by May 19, 2015

2. FISC meetings to answer questions3. SRPO memorandum: Confirming data and

updating AAIM4. Real Property Efficiency Plan draft final due

July 10, 2015

May 6, 2015

FIMS / Real Estate Training 36May 6, 2015

Look for the Updateson PowerPedia:

https://powerpedia.energy.gov/wiki/FTF

Questions:Ivan Graff202-586-8120

[email protected]

Documents

National Strategy for the Efficient Use of Real Property Fiscal Years 2015 - 2020 I VAN G RAFF Lemont, IL May 6, 2015