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height="9.302083333333334in"}

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# [Message from the Senior Real Property Officer]{.smallcaps}

I am pleased to present the Department of Health and Human Services
(HHS) Real Property Asset Management Plan for FY 2006. This plan is the
result of a highly collaborative effort within HHS and represents a
significant milestone as we move into full implementation of Federal
Real Property Council performance measures, the HHS Automated Real
Property Inventory System (ARIS), and new management processes. The plan
is the result of the hard work of facilities personnel from across all
HHS organizations and I thank them again for their contributions and
professionalism.

The Department is the United States government's principal agency for
protecting the health of all Americans, especially those who are least
able to help themselves, by providing effective health and human
services and by fostering strong, sustained advances in the sciences
underlying medicine, public health, and social services. To strengthen
real property support of this mission, HHS established the Office for
Facilities Management and Policy (OFMP) in July of 2002. In the early
fall of 2002, the Office developed a strategic framework and goals built
around three guiding principles: efficient portfolio management;
fostering mission success through occupant productivity and efficiency;
and appropriate stewardship of HHS owned, leased or otherwise managed
properties.

The issuance of Executive Order 13327, and the addition of Federal Real
Property Asset Management to the President's Management Agenda in
February 2004, reinforced the HHS real property strategic goals and
framework for our 3,828 constructed assets. HHS Operating and Staff
Divisions are working collaboratively with OFMP to achieve the strategic
goals. Specialized teams of technical experts and managers are
developing metrics and implementation methodologies, operating
processes, capital investment and O&M budgetary needs, facility
inventories, and long-term strategies. The schedule is aggressive and
challenging, and is made even more so with the implementation of Most
Efficient Organizations in several Operating Division facility staffs at
the same time.

Our plan is much more than a scorecard deliverable. It is a strategy and
roadmap to what we intend to achieve in Real Property Asset Management.
It is a "living" document that we will update as the world around us
changes. I am extremely proud of the progress we've made in improved
facilities management since the formation of OFMP. I'm thankful to have
been a part of it and I look forward to much more as we implement our
plan.

Bill Stamper /S/

Deputy Assistant Secretary for Facilities Management and Policy

TABLE OF CONTENTS

[**[Message from the Senior Real Property Officer]{.smallcaps}
i**](#message-from-the-senior-real-property-officer)

[Section 1 Introduction 1](#__RefHeading___Toc125787634)

[Section 2 Support of Agency Missions and Strategy Goals
3](#__RefHeading___Toc125787635)

[2.1 Agency Mission 3](#agency-mission)

[2.1.1 Real Property Organization Mission
5](#real-property-organization-mission)

[2.2 Human Capital and Organization Infrastructure
6](#human-capital-and-organization-infrastructure)

[2.3 Real Property Asset Management Decision Making
9](#real-property-asset-management-decision-making)

[2.3.1 Roles and Responsibilities 10](#roles-and-responsibilities)

[2.3.2 HHS Facility Project Review Process
10](#hhs-facility-project-review-process)

[2.3.3 HHS Form 300 (Facility Project Approval Agreement)
13](#hhs-form-300-facility-project-approval-agreement)

[2.3.4 Additional Actions to Improve Real Property Asset Management
Decision Making
14](#additional-actions-to-improve-real-property-asset-management-decision-making)

[2.4 Owner's Objectives 15](#owners-objectives)

[Section 3 Planning and Acquisition of Real Property
17](#__RefHeading___Toc125787645)

[3.1 Capital Plans for Major Projects
19](#capital-plans-for-major-projects)

[3.1.1 Construction Major Projects 20](#construction-major-projects)

[3.1.2 Repair and Improvement Major Projects
22](#repair-and-improvement-major-projects)

[3.1.3 Additional Actions to Improve Capital Plans for Major Projects
22](#additional-actions-to-improve-capital-plans-for-major-projects)

[3.1.4 Acquisition of Leases Above the Prospectus Level
23](#acquisition-of-leases-above-the-prospectus-level)

[3.1.5 Acquisition of Leases Below Prospectus Level
23](#acquisition-of-leases-below-prospectus-level)

[3.1.6 Additional Actions to Improve the Acquisition of Leases
24](#additional-actions-to-improve-the-acquisition-of-leases)

[3.2 Acquisition Performance Measures and Continuous Monitoring
25](#acquisition-performance-measures-and-continuous-monitoring)

[3.2.1 Federal Real Property Council Acquisition Measures
25](#federal-real-property-council-acquisition-measures)

[3.2.2 Construction Acquisition Measures
25](#construction-acquisition-measures)

[3.2.3 Leasing Acquisition Measure 28](#leasing-acquisition-measure)

[3.2.4 Customer Satisfaction Surveys/Measures
29](#customer-satisfaction-surveysmeasures)

[3.3 Acquisition Initiatives 29](#acquisition-initiatives)

[Section 4 Operations of Real Property 31](#__RefHeading___Toc125787659)

[4.1 HHS Real Property Inventory 31](#hhs-real-property-inventory)

[4.1.1 Historic Preservation Requirements
35](#historic-preservation-requirements)

[4.1.2 Energy and Water Conservation Requirements
36](#energy-and-water-conservation-requirements)

[4.2 Asset Documentation 38](#asset-documentation)

[4.3 HHS Asset Management Building Block
38](#hhs-asset-management-building-block)

[4.4 Periodic Evaluation of Assets 39](#periodic-evaluation-of-assets)

[4.4.1 Mission Dependency 41](#mission-dependency)

[4.4.2 Facility Condition Assessment Performance Measures
43](#facility-condition-assessment-performance-measures)

[4.5 Operations and Maintenance Plan
45](#operations-and-maintenance-plan)

[4.5.1 Consideration of Socio-Economic Responsibilities - Environmental
Management Plan
45](#consideration-of-socio-economic-responsibilities---environmental-management-plan)

[4.6 Routine Maintenance and Minor Repair Needs
47](#routine-maintenance-and-minor-repair-needs)

[4.6.1 Additional Actions to Improve Routine Maintenance and Minor
Repair
47](#additional-actions-to-improve-routine-maintenance-and-minor-repair)

[4.7 Capital and Operating Resource Requirements
47](#capital-and-operating-resource-requirements)

[4.8 Operations Performance Measures and Continuous Monitoring
48](#operations-performance-measures-and-continuous-monitoring)

[4.8.1 Federal Real Property Council Measures
48](#federal-real-property-council-measures)

[4.8.2 Agency Specific Measures 51](#agency-specific-measures)

[4.9 Operations Initiatives 51](#operations-initiatives)

[Section 5 Disposal of Unneeded Real Property
53](#__RefHeading___Toc125787677)

[5.1 Tools to Support Decision-making
53](#tools-to-support-decision-making)

[5.1.1 Facilities Utilization Performance Measure
53](#facilities-utilization-performance-measure)

[5.1.2 Identifying Owned Assets for Disposition
53](#identifying-owned-assets-for-disposition)

[5.2 The Disposal Process 54](#the-disposal-process)

[5.3 Disposal Performance Measures and Continuous Monitoring
56](#disposal-performance-measures-and-continuous-monitoring)

[5.3.1 Federal Real Property Council Disposal Measures
56](#federal-real-property-council-disposal-measures)

[5.3.2 Agency Specific Measures 56](#agency-specific-measures-1)

[5.4 Disposal Initiatives 57](#disposal-initiatives)

[Attachment 1 - Federal Real Property Council Mandatory Inventory Data
Elements and Performance Measure Definitions
59](#attachment-1---federal-real-property-council-mandatory-inventory-data-elements-and-performance-measure-definitions)

[Attachment 2 - HHS Organizational Chart and Regional Map
69](#attachment-2---hhs-organizational-chart-and-regional-map)

[Attachment 3 - OPDIV Organization Charts and Functional Statements
71](#attachment-3---opdiv-organization-charts-and-functional-statements)

[Attachment 4 - Annual Capital Facilities Plans (Embargoed Budget
Sensitive Information for OMB Use Only)
82](#attachment-4---annual-capital-facilities-plans-embargoed-budget-sensitive-information-for-omb-use-only)

[Attachment 5 - Sample Constructed Asset Report
84](#attachment-5---sample-constructed-asset-report)

[Attachment 6 - Facilities Assessment Evaluation Checklist
85](#attachment-6---facilities-assessment-evaluation-checklist)

[Attachment 7 - Operations and Maintenance Cost Methodology
88](#attachment-7---operations-and-maintenance-cost-methodology)

[Attachment 8 -- Tactical Real Property Plan
92](#attachment-8-tactical-real-property-plan)

[Attachment 9 -- Disposal Decision Tree
93](#attachment-9-disposal-decision-tree)

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[]{#__RefHeading___Toc125787634 .anchor}**Section 1 Introduction**

This is the Department of Health and Human Services (HHS) Real Property
Asset Management Plan (RAMP), as required by Executive Order 13327,
*Federal Real Property Asset Management*. The RAMP provides implementing
guidance for the HHS Real Property Management Program (RPMP) and the
Department's Automated Real Property Inventory System (ARIS).

The RAMP provides a roadmap for HHS to promote efficient and economical
use of the federal real property resources required to support the
Department\'s missions and strategic goals. It addresses the
Department\'s strategy for implementing these goals through real
property management improvement initiatives and strategic planning. The
plan also documents how HHS ensures maximum use of its portfolio and
identifies who is accountable for maintaining excellence in real
property management.

The Department embraces the Federal Real Property Council's (FRPC) ten
guiding principles applicable to federal real property asset management
and has aligned HHS-specific asset management objectives and
requirements with those principles that include:

  --------------------------------------------- -------------------------
  Objective                                     Section

  Support agency missions and strategic goals   Section 2.1

  Use public and commercial benchmarks and best Section 3
  practices                                     

  Employ life-cycle cost-benefit analysis       Sections 3; 3.4; 4.6

  Promote full and appropriate utilization      Sections 3; 3.2; 4.4;
                                                4.8.1; 5.1.1

  Dispose of unneeded assets                    Section 5

  Provide appropriate levels of investment      Section 2.3

  Accurately inventory and describe all assets  Section 4.1

  Employ balanced performance measures          Section 4.4

  Advance customer satisfaction                 Sections 3.3.2; 3.3.4

  Provide for safe, secure, and healthy         Sections 2.1.1; 3
  workplaces                                    
  --------------------------------------------- -------------------------

This plan addresses the Council's template for agency asset management
plans, which includes:

  --------------------------------------------------- -------------------
  Council's Template                                  Section

  Integrated Guiding Principles                       Section 1; 2.2;
                                                      2.3; 3

  Agency-Specific Owner's Objectives                  Section 3.3.2;
                                                      4.8.2; 5.3.2

  Periodic Evaluation of All Assets                   Section 3.3.4; 4.4

  Prioritized Operations and Maintenance & Capital    Section 3.1; 3.1.1;
  Plans                                               4.6

  Identified Resource Requirements to Support Plans   Section 4.4; 4.5;
                                                      4.6; 4.7

  "Building Block" Asset Management Building Blocks   Section 2.4; 4.3
  in Agency Portfolio Context                         

  Continuous Monitoring and Feedback Mechanism        Section 3.3

  Consideration of Socio-Economic-Environmental       Section 4.5.1
  Responsibilities                                    

  Adequate Human Capital Support of Asset Management  Section 2.2
  Organization                                        

  Common Government-wide Terminology                  Section 4.1
  --------------------------------------------------- -------------------

In practice, these principles serve to support three primary purposes:

1.  Efficient portfolio management,

2.  Fostering mission success through occupant productivity and
    efficiency, and

3.  Appropriate stewardship of HHS owned, leased or otherwise managed
    properties.

![](media/image2.jpeg){width="3.3097222222222222in"
height="2.467361111111111in"}

The section numbers following each of the Council's principles and
template items above provide a cross reference with the Department\'s
RAMP. With the RAMP as the foundation, HHS has implemented a cohesive,
systematic and comprehensive approach for ensuring the appropriate
management of the Department's 3,828 owned, leased and other wise
managed real property holdings. HHS real property will be tracked in
accordance with the Federal Real Property Council's mandatory inventory
data elements (Attachment 1). In this regard, real property is defined
as land, buildings, structures, utilities systems, and improvements and
appurtenances thereto, permanently annexed to land that is owned, leased
or otherwise managed by HHS. \"Asset," "constructed asset," and
"facility" are often used interchangeably and generally refer to
buildings, structures, and other capital improvements to land (including
roads and utilities).

Section 1 -- *[Introduction]{.underline}* provides an introduction and
describes the approach and content of this plan.

Section 2 - *[Support of Agency Missions and Strategic
Goals]{.underline}* addresses the mission of HHS and its real property
support in implementing its missions and strategic goals, its human
capital and organizational structure, decision-making framework, and
owner's objectives.

Section 3 -- *[Acquisition of Real Property Assets]{.underline}*
describes how HHS plans for and acquires real property assets, develops
its capital plan, identifies its prioritized acquisition list each
fiscal year, measures the effectiveness of its acquisition results and
identifies key initiatives to improve financial management and
acquisition performance.

Section 4 -- *[Operations of Real Property Assets]{.underline}*
describes how HHS operates its real property assets, addresses its
inventory system, Operations and Maintenance Plans, Asset Management
Building Blocks or "Building Block" Plans and periodic evaluation of
assets. Additionally, operational measures are described, as are key
initiatives that are underway to improve operational performance.

Section 5 -- *[Disposal of Unneeded Real Property]{.underline}*
describes how HHS disposes of unneeded real property assets, measures
the effectiveness of its redeployment actions and identifies key
initiatives to improve the pace of disposition as well as its ability to
dispose of difficult, environmentally challenged properties.

[]{#__RefHeading___Toc125787635 .anchor}**Section 2 Support of Agency
Missions and Strategy Goals**

Investment, operational, and disposal decisions with regard to agency
real property assets need to be integrated with and supportive of core
mission activities to effectively manage and optimize real property
assets. To facilitate integrating real property asset management
decisions with the agency mission requires two elements -- a clear
understanding of the agency's mission that drives the allocation and use
of all available resources (human capital, physical capital, financial
capital and technology/information capital) and an effective
decision-making framework.

This section discusses the HHS mission, human capital, and
decision-making framework.

## **2.1 Agency Mission**

The Department of Health and Human Services is the United States
government\'s principal agency for protecting the health of all
Americans and providing essential human services, especially for those
who are least able to help themselves. HHS enhances the lives of all
Americans, whether it is in conducting biomedical research, preventing
the outbreak of infectious disease, assuring food and drug safety,
administering the Medicare and Medicaid programs, providing financial
assistance to low-income families, or a myriad of other important health
and human service programs. The Department's employees -- our human
capital -- are a key to accomplishing essential health and human service
programs. Mission accomplishment requires that we align both our human
capital and our real property assets with the Department's strategic
direction.

HHS is comprised of the following Operating Divisions (OPDIVs): Office
of the Secretary (OS); Administration for Children and Families (ACF);
Administration on Aging (AoA); Agency for Healthcare Research and
Quality (AHRQ); Centers for Disease Control and Prevention (CDC);
Centers for Medicare & Medicaid Services (CMS); Food and Drug
Administration (FDA); Health Resources and Services Administration
(HRSA); Indian Health Service (IHS); National Institutes of Health
(NIH); and Substance Abuse and Mental Health Services Administration
(SAMHSA) These HHS organizations with real property management
responsibility perform, to varying degrees, day-to-day execution of the
facilities management program, including master planning; facilities
design, construction, leasing, operations and maintenance, space
utilization; and management programs (environmental management, historic
preservation, energy management, and occupational safety and health).
These organizations develop and implement internal procedures necessary
to comply with Departmental policy and guidance including all statutory
and regulatory
requirements.![](media/image3.jpeg){width="4.159722222222222in"
height="3.067361111111111in"}

HHS includes more than 300 programs, covering a wide spectrum of
activities and over 67,000 employees. Some highlights include:

-   Medical and behavioral research

-   Preventing disease, including immunization services.

-   Assuring food and drug safety.

-   Medicare (health insurance for elderly and disabled Americans) and
    Medicaid (health insurance for low-income people).

-   Health information technology.

-   Financial assistance and services for low-income families.

-   Improving maternal and infant health.

-   Head Start (pre-school education and services).

-   Faith-based and community initiatives.

-   Preventing child abuse and domestic violence.

-   Substance abuse treatment and prevention.

-   Services for older Americans, including home-delivered meals.

-   Comprehensive health services for Native Americans.

-   Medical preparedness for emergencies, including potential terrorism.

See Attachment 2 for The HHS Organization Chart and Regional Map.

HHS ensures that its real property asset management is integrated with
and enables its mission work through a culture known as "One HHS," by
involving mission managers in capital investment decisions, and through
an agency-wide recognition of the importance of the agency primary
mission, through a Departmental Capital Investment Board comprised of
Land-holding Operating Division leaders and HHS Assistant Secretaries
for Budget, Finance, and Technology; Planning and Evaluation and
Legislative Affairs and chaired by the Assistant Secretary for
Administration and Management. This understanding pervades
decision-making at every
level.![](media/image4.jpeg){width="3.807638888888889in"
height="2.407638888888889in"}

The Department has established twenty "One HHS" Department-wide mission
objectives:

> 1\. Transform the Healthcare System
>
> 2\. Strategically Manage Human Capital
>
> 3\. Modernize Medicare and Medicaid
>
> 4\. Complete the FY 2006 Competitive Sourcing Program
>
> 5\. Advance Medical Research
>
> 6\. Improve Financial Performance
>
> 7\. Secure the Homeland
>
> 8\. Expand Electronic Government
>
> 9\. Protect Life, Family and Human Dignity
>
> 10\. Improve Budget and Performance Integration
>
> 11\. Improve the Human Condition Around the World
>
> 12\. Implement the Real Property Asset Management Program
>
> 13\. Broaden Health Insurance and Long-Term Care Coverage
>
> 14\. Achieve Performance Accountability
>
> 15\. Promote Quality, Relevance & Performance of Research and
> Development Activities
>
> 16\. Improve Grants Management Operation and Oversight
>
> 17\. Emphasize Faith Based and Community Solutions
>
> 18\. Consolidate Management Functions and Streamline Administrative
> Operations
>
> 19\. Emphasize Healthy Living and Prevention of Disease, Illness, and
> Disability
>
> 20\. Eliminate Improper Payments

The HHS strategy includes the Secretary's 500-Day Plan.

### 2.1.1 Real Property Organization Mission

The Health and Human Services Office for Facilities Management and
Policy (OFMP) provides Department-wide leadership and direction in
master planning, facilities planning and design, construction, leasing,
operations and maintenance, space utilization, and management programs
(environmental management, historic preservation, energy management, and
occupational safety and health) for approximately 3,828 constructed
assets. These facilities support the missions of more than 300 HHS
programs that cover a wide spectrum of activities and over 67,000
employees. Under provisions of the Public Health Service Act (42 U.S.C.
§238), four of the OPDIVs - Centers for Disease Control and Prevention
(CDC), Food and Drug Administration (FDA), Indian Health Service (IHS)
and National Institutes of Health (NIH) have land-holding authority and
own, lease or otherwise manage approximately 3,400 of the 3,828 HHS
constructed assets. Functional statements and organizational charts for
land-holding OPDIVs' facilities programs are attached (See Attachments 2
and 3).

OFMP provides technical assistance to the HHS Operating Divisions
(OPDIVs) by evaluating the effectiveness of their facilities programs
and policies and fostering creativity and innovation in the
administration of these functions. OFMP serves as the HHS representative
to other federal and non-federal agencies. The OFMP vision is that HHS
facilities and management programs are delivered at peak effectiveness
and through leadership, oversight, policy guidance, and training OFMP
leads the Department to provide best value to the taxpayer in its
functional areas. OFMP will continually strive to deliver products and
services better, faster, cheaper, safer and greener using consistent,
efficient, and effective business processes that are applied across the
Department. Using more consistent business processes will help us best
apply our limited resources to meet the demands of a dynamic environment
and share technical work across geographic boundaries.

All of OFMP's strategic goals address prudent asset management. These
goals are as follows:

-   Establish policies; guidelines; operating procedures; and lines of
    financial authority, delegation, and accountability; and provide
    Departmental oversight and integration for Operating Division/OFMP
    related activities to assure that HHS functions as "one Department"
    in the facilities area.

-   Improve the Capital Planning/Program integration process.

-   Reduce the cost of leasing and real property management.

-   Reduce the cost of acquisition and ownership.

-   Improve safety, security, maintainability, life cycle cost, health,
    and environmental impact by facilitating sustainable design and
    other best practices.

-   Improve the physical environment and reduce operating cost of the
    Hubert H. Humphrey Building (HHS Headquarters) and the Central
    Employment Area.

-   Lead facilities innovation and promote continuous improvement.

![](media/image5.jpeg){width="3.6805555555555554in"
height="2.7604166666666665in"}

HHS will most efficiently succeed in reaching its real property
management goals in collaboration with the many stakeholders we report
to, work for, and work with. Legislative authorities provide direction
and resources. The larger family of federal agencies shares our mission
of implementing federal policies, as determined by the above
authorities, while non-federal groups and individuals participate with
us as joint stewards of our Nation's resources. Stakeholder groups must
be fully considered and we must take advantage of resources available
from higher executive authorities, the Office of Management and Budget,
peer agencies/departments, civilian agencies such as the Department of
Homeland Security and the Environmental Protection Agency; Presidential
Councils such as the Advisory Council for Historic Preservation and the
Federal Real Property Council, Federal Facilities Council; as well as
non-federal stakeholders including State and local governments, tribal
authorities, non-federal sponsors, and interest groups.

## **2.2 Human Capital and Organization Infrastructure**

The HHS *Strategic Human Capital (HC) Management Plan* states that
people are the most significant resource available to leadership in an
organization. The foundation of HHS and the key to its future success is
its workforce. Without an effective workforce, the important
mission-related work of the Department could not be accomplished. The
Department\'s ability to accomplish its mission is directly dependent on
a workforce that capitalizes on its strengths and aligns itself with the
Department\'s mission and strategic goals. In a world of turbulent
change, success depends on the HHS workforce\'s ability to learn and
adapt at rapid speed. The overall challenge for HHS is to develop and
utilize its human capital in a strategic manner. The Department must
build a fully integrated human capital management approach that bridges
the gap between where HHS is today and where HHS needs to be. Therefore,
we must attract, develop, and retain a world-class workforce. We must
identify, develop, maintain and strengthen the technical competencies,
knowledge management and leadership required to provide effective
service to the Department. The Department\'s *Strategic Human Capital
Management Plan* provides the comprehensive approach that will move HHS
forward toward that future vision.

The purpose of the HC Plan is to create and implement a human capital
strategy that guides HHS in managing its workforce to achieve Department
strategic goals. It draws together and coordinates efforts that cover
the entire range of human capital activities. The HC Plan has direct
linkage with the Department\'s 5-year Strategic Plan through Objective
8.2 - "Improve the strategic management of human capital." The success
of the HC Plan requires the collective and continued commitment of
senior Department leadership, managers, employees, employee
representatives, and other stakeholders. Through this Department-wide
cooperative effort, HHS will be able to unleash the full power,
productivity and imagination of a world-class workforce.

The HHS real property management workforce includes contract and
civilian employees that contribute to real property asset management
that supports the overall agency mission. HHS understands the importance
of having a competent workforce with the appropriate real property
skills and training to support HHS's core competencies, goals, and
mission. HHS supports continuous learning to strengthen these real
property core competencies and to keep aware of and import applicable
industry trends, benchmarks, and best practices. The support provided by
real property management professionals within the Department (spread
throughout the OPDIVs) is essential to accomplishing health and human
service programs in deliberate alignment with the Department's mission
and strategic direction. We are taking action as noted below to address
any skills gaps or retention requirements in our workforce to ensure
appropriate management of HHS real property assets.

The functional areas necessary to ensure appropriate management of the
Department's current and planned real property assets include:

Real Property Functional Areas:

-   Master Planning

```{=html}
<!-- -->
```
-   Facilities Management

-   Facilities Engineering

    -   Facilities Civil Engineering

    -   Facility Mechanical Engineering

    -   Facility Electrical Engineering

    -   Architectural Engineering

-   Construction Management

-   Real Property Management

-   Facilities Operations and Maintenance

-   Environmental Program Management

-   Energy Program Management

-   Historic Preservation

The competencies necessary for federal real property management to
ensure appropriate management of the Department's current and planned
real property include:

-   Acquisition and Contract Management

-   Acquisition Planning

-   Budgeting Management

-   Business Management

-   Contract Formation

-   Contract Management and Performance Assessment

-   Cost Estimation Analysis

-   Emergency Management

-   Environmental Engineering & Management

-   Environmental Planning/NEPA

-   Environmental Remediation

-   Facilities Engineering and Management

    -   Architectural Engineering

    -   Facility Civil Engineering

    -   Facility Mechanical Engineering

    -   Facility Electrical Engineering

    -   Fire Protection Engineering

    -   Construction Management

    -   Real Property Management

    -   Facilities Operations and Maintenance

    -   Facilities Planning

-   Financial Management

-   Historic Preservation

-   Leadership

-   Legal

    -   General Law

    -   Contracts Law

    -   Personnel/EEO Law

    -   Environmental Law

-   Master Planning

-   Occupational and Environmental Health, Workplace Safety

-   Partnership & Business Development

-   Policy Management

-   Personal Communication

-   Program/Project Management

-   Quality Engineering & Assurance

-   Relationship Management

-   Reliability & Maintainability Engineering & Assurance

-   Risk Management

-   Security & Program Protection

## **2.3 Real Property Asset Management Decision Making**

Real property asset management decisions within HHS are made at both a
Departmental and OPDIV level. The Department employs a capital
facilities programming and project review process that allows for
strategic management of HHS real property assets and informed advice to
the Assistant Secretary for Administration and Management (ASAM), the
Assistant Secretary for Budget, Technology and Finance (ASBTF), and,
through recommendations of the HHS Capital Investment Review Board (HHS
Board), as well as the Secretary on significant OPDIV capital facility
investment issues.

![](media/image6.jpeg){width="3.8097222222222222in" height="2.85in"}

The HHS Facilities Program Manual (currently under construction), sets
forth overall Departmental policy and guidance for HHS personnel who are
responsible for directing and managing HHS facility activities. The
manual is intended to promote excellence in management and good
stewardship of HHS facilities from budget formulation to facility
remediation and disposal. It emphasizes all aspects of real property
management and addresses major federal initiatives and national concerns
such as protecting the environment; sustainable design; historic
preservation; accessibility for persons with disabilities; and value
engineering. The HHS Facilities Program Manual aligns the HHS facilities
program with the HHS mission. The manual can be found at

<http://www.hhs.gov/hhsmanuals/phsmanual.html>.

In addition to aligning facilities guidance with agency mission, the HHS
Facilities Program Manual specifically links real property inventory
information (see Section 4.1) to both the Capital Improvement and
Operations and Maintenance budget decision-making process. A key
inventory element is \"Facility Condition Index\" (FCI). The goal of HHS
is to achieve a reasonable, consistent condition index over time across
its portfolio of assets, to invest in its portfolio to sustain assets to
a 50-year life cycle and to operate assets on a cost-per-square foot
basis that mirrors industry standards. Facility Condition Index, along
with other inventory elements of operating cost, utilization rates and
mission dependency of a facility, provide the data points necessary to
gauge operations and sustainment trends and to drive Capital Improvement
and Operations and Maintenance investment strategies. Emphasis will be
placed on improving the FCI of mission-critical facilities at faster
pace than less critical facilities, and at a higher index. Investments
in sustainment-type projects will be adjusted, up or down, to track to a
50-year life cycle curve.

### 2.3.1 Roles and Responsibilities

At the Departmental-level, the Assistant Secretary for Administration
and Management (ASAM), Office of the Secretary, has been delegated real
property management oversight authority and provides direction to all
HHS OPDIV real property activities. The Assistant Secretary for Budget,
Technology and Finance (ASBTF) is the Department's Chief Financial
Officer (CFO) and directs the formulation and presentation of the
Department's annual budget request to Congress.

The Office for Facilities Management and Policy (OFMP), within ASAM, is
responsible for reporting to OMB and the Federal Real Property Council
(FRPC) on facilities activities and performance. The OFMP Deputy
Assistant Secretary is the HHS Senior Real Property Officer, providing
Department-wide leadership and direction for real property management
programs. Additional information regarding Departmental/OPDIV real
property roles and responsibilities are noted below.

### 2.3.2 HHS Facility Project Review Process

(Refer to Section 3.1.4 and 3.1.5 for a discussion on the HHS direct
leasing program.)

The Department's facility project review process is a three-tiered
structure (*i.e*., pyramidal) supporting the Department's fiscal year
budget formulation process that distinguishes HHS approval authorities
based on the full cost of each project considering all sources of funds.
Exceptions to these established project funding level approval
authorities are contained in specific project-type review authorities
given to the HHS Board. The facility project review process is as
follows:

**2.3.2.1.** **Land-holding OPDIVs** - The Commissioner of the Food and
Drug Administration (FDA), and the Directors of the Centers for Disease
Control and Prevention (CDC), Indian Health Service (IHS), and National
Institutes of Health (NIH) are responsible for approval of construction
and improvement projects under \$1M and all repair projects under \$3M,
that are not otherwise within the purview of the HHS Capital Investment
Review Board ("the Board"). They are also responsible for submission of
projects in the HHS annual budget. Each OPDIV is organized differently
in response to its specific mission and stakeholders. Facilities
programs may be centralized (CDC, FDA and NIH) or decentralized (IHS);
and some programs may be delegated to the Tribes pursuant to a self
governance compact under P.L. 93-638. The Department does require that
each OPDIV, in accordance with the OMB A-11 Capital Programming Guide,
establish an internal process with their stakeholders for identifying
projects, developing and evaluating the business case for each project,
and prioritizing projects for inclusion in their facilities plan.
Projects below the thresholds of \$1M for construction and improvements
and \$3M for repairs are not submitted to the Department for review as
individual projects. These projects are typically funded from the lump
sum appropriations for Repair and Improvements (R&I) or Maintenance and
Improvements (M&I). As an example of an internal process, at NIH the
Facilities Working Group (FWG) was chartered to advise the NIH Steering
Committee, the NIH Institutes and the NIH Director on matters pertaining
to the planning, acquisition, development, and use of land and
facilities. The FWG prioritizes the projects and submits them to the NIH
Director for approval and the approved NIH list is sent to the
Department for the HHS Capital Investment Review Board's action. All
projects not approved by the Board are returned to the appropriate
OPDIV. (See Section 2.3.2.3, HHS Board.)

**2.3.2.2.** **ASAM** - The Deputy Assistant Secretary of the Office for
Facilities Management and Policy (DAS/OFMP), ASAM, approves all HHS
OPDIV facility construction and improvement projects between \$1M and
\$10M and all repair projects between \$3M and \$10M that are not within
the purview of the HHS Board. As part of the OPDIV annual budget
submission to the Department, each OPDIV submits their Annual Facilities
Plan for Buildings and Facilities that identifies projects requiring
ASAM or Board approval, as well as the draft Facility Project Approval
Agreements (FPAA) for those identified projects. OFMP reviews each
project for consistency with the Department's overall facilities program
requirements and policy. For instance, the FRPC performance measures are
included as relevant on the FPAA. The level of pre-project planning
completed to date is defined using the Construction Industry Institute's
Project Definition Rating Index (see also Section 3.1.1); and an
acquisition plan is included in the initial submission. In addition,
planning and programming documents or other documentation are submitted
on an as needed basis to clarify the description and justification for
the project. OFMP clears the FPAA for approval only when all components
of the project are well defined and there is clear articulation that the
project meets the overall mission of the OPDIV and Department.
Disapproved projects are returned to the submitting OPDIV with comments.
Projects requiring Board review are forwarded with an OFMP
recommendation. Once the Board approves a project, OFMP clears the FPAA
for submittal as an original signed document. The Department requires a
FPAA be approved by September 30th for projects funded to start in the
new fiscal year (October 1st). Out-of-cycle projects (whether
necessitated by an emergency, new mission, or changed requirements) are
dealt with on a case-by-case basis using the same process.

**2.3.2.3.** **HHS Board** - The Board is a key body to provide initial
facility program agency strategic plan integration through the
participation of the Assistant Secretaries for Administration and
Management; Budget, Technology, and Finance; and Strategic Planning and
Evaluation. It reviews all other proposed facility projects including:

-   OPDIV investments of \$10M or more and all land acquisitions;

-   Department-wide investments that affect multiple organizations;

-   Investments that have a significant impact on a single OPDIV;

-   OPDIV investments that the Office of the Secretary determines to
    have significant risks; high development, operating or maintenance
    costs; or have high public visibility;

-   Major repair and improvement (alteration and renovation) projects
    more than \$10M; and

-   Other project types as may be designated by the Board.

The HHS Board was established on June 9, 2003, in accordance with Part 7
and Part 8 of OMB Circular A-11. (Part 7 of OMB Circular A-11 states
that agencies must establish and maintain a capital programming process
that links mission needs and capital assets in an effective and
efficient manner.") The Board conducts its review of proposed capital
investment projects using a programming process that documents and
defines how the agency selects capital investments for inclusion in the
agency's capital investment portfolio for funding each year and how
capital investment projects, once initiated, will be controlled to
achieve intended cost, schedule and performance outcome. The Board also
reviews Operations and Maintenance funding and major leasing activities
to be able to balance capital investments, considering plant condition,
reliability, operating cost, and life cycle cost.

The HHS Board makes recommendations for strategic management of HHS real
property assets and advises the Assistant Secretary for Administration
and Management (ASAM) and the Secretary on major facility issues. The
Board is a cross functional executive review committee and provides
advice and makes recommendations to the Secretary, the ASAM and the
ASBTF on a range of issues to include: 1) the development of facility
capital investment guidelines; 2) the development of guidelines to
implement an investment review process that provides strategic planning
for and oversight and guidance of facility investments; and 3) regular
monitoring and proper management of these investments, once funded. One
of the outputs of the investment review process is a regular update of
the HHS investment portfolio or plan that supports HHS strategic
objectives. The Board reviews proposed capital projects and recommends
inclusion of those meeting HHS mission requirements in the Department's
annual budget formulation process.

The Board consists of all OPDIV Heads with land-holding and acquisition
authority and OS Staff Division (STAFFDIV) Heads with oversight
responsibilities that directly involve implementing facilities
functions. At present Board members include:

-   Assistant Secretary for Administration and Management (ASAM) (Board
    Chair)

-   Assistant Secretary for Budget Technology and Finance (ASBTF)

-   Assistant Secretary for Legislation (ASL)

-   Assistant Secretary for Planning and Evaluation (ASPE)

-   CDC Director (or designee)

-   FDA Commissioner (or designee)

-   IHS Director (or designee)

-   NIH Director (or designee) and

-   Three at-large appointments (no term limitation), who are
    recommended by the ASAM and ASBTF and approved by the Secretary.

**FUNDING AUTHORITIES**

### 2.3.3 HHS Form 300 (Facility Project Approval Agreement)

The HHS Form 300 (commonly known as the Facility Project Approval
Agreement or FPAA) has been accepted by the Office of Management and
Budget for facilities project documentation. All projects approved by
ASAM and the Secretary (through the HHS Board) require a binding written
approval agreement between designated officials of the sponsoring OPDIV
and ASAM. The FPAA documents the project's scope and description, basis
of need, funding source(s), total cost from all sources (including
Furniture, Fixtures, and Equipment (F&E)) and project schedule
milestones (*i.e.* planning, design, construction, activation and
operational phases). The agreement represents a commitment by the OPDIV
to the scope, budget and schedule for that project. HHS utilizes Earned
Value Management on all construction projects consistent with Circular
A-11, Part 7 Planning, Budgeting, Acquisition and Management of Capital
Assets. The methodology utilized on all construction projects follows
the "Schedule Variance" approach defined in Appendix Four of the
Supplement to Part 7 -- Capital Programming Guide. The construction
contractor provides a baseline plan for each construction project
reflecting a work breakdown structure, schedule of values and planned
timeline. Each progress payment reflects an update of actual work in
place ("earned value") compared to the baseline. As part of the
contractual relationship with the construction contractor, each
Operating Division retains responsibility for ensuring progress payments
are consistent with the earned value of the project. In evaluating a
request for payment from a contractor, the OPDIV certifies that the
current invoice and its detailed schedule of values reflect actual work
to date. When a Tribe contracts design and/or construction of facilities
under P.L. 93-638, an advance payment schedule is negotiated between the
Tribe and IHS. The Tribe accepts responsibility under P.L. 93-638 for
ensuring that payments to subcontractor(s) do not exceed the earned
value of work in place. HHS does not review and manage the projects
directly. However, through the Quarterly Status Report and frequent
project briefings, each Operating Division updates the Department on the
status of scope, budget and schedule of projects beyond the Operating
Division's approval authority. In addition, the Quarterly Status Report
captures the type of project, the current phase and the obligations to
date. Each project is measured annually against the approved FPAA for
deviations in scope, budget and/or schedule. This is a performance
measure for each OPDIV under the Department's management objectives.
Revisions and changes to the scope, budget and schedule after the
original FPAA approval are addressed in a change to Facility Project
Approval Agreement. Those revisions or changes not within OPDIV approval
authority require submittal of a revised FPAA through OFMP. The OPDIV
shall submit the revised FPAA to OFMP as soon as the revision or change
is identified. OPDIVs are encouraged to advise OFMP of the revision
verbally, then immediately follow up with the documentation. The
revision summarizes the changes to the scope, budget and/or schedule
only and the basis for those changes. It does not reiterate information
on the original FPAA. OMFP follows the same review process for the
revision as outlined above for the original FPAA submittal before
clearing the FPAA for approval. While the FPAA process recognizes that
there will be changes, HHS performance management objectives require
adherence to the "as submitted and approved" budget, scope and schedule
as the standard against which actual performance is measured.

### 2.3.4 Additional Actions to Improve Real Property Asset Management Decision Making

OS under the leadership of the HHS Senior Real Property Officer will
improve real property asset management decision-making by: requiring
OPDIVs to provide Construction Program status through quarterly status
reports indicating performance against budget, scope, and schedule
metrics; issuing HHS draft policy on use of Operating Funds for
facilities construction; requiring OPDIVs to issue their internal budget
guidelines consistent with HHS pre-budget guidance; developing a process
to consider applicable FRPC and HHS metrics in facility planning, budget
development and priority-setting tied to OPDIV/HHS budget process; and
forming a senior-level OPDIV work group and develop draft facility
disposition algorithm.

## **2.4 Owner's Objectives**

HHS has established a set of qualitative and quantitative owner's
objectives specific to its portfolio. These owner's objectives are the
foundation for developing a portfolio or asset level strategy.
Qualitative and quantitative owner's objectives are expressed in HHS's
long-term outcome goals and performance targets discussed in Section 4
of this RAMP. Owner's objectives for HHS
include:![](media/image7.jpeg){width="3.682638888888889in"
height="2.6944444444444446in"}

-   Assets must support the agency's current federal mission need

-   Agency assets must be economically sustainable

-   The assets must meet serviceability standards and customer needs

-   Physical condition will be maintained to reflect market standards

-   Target reinvestment to performing assets

-   Asset Management Building Blocks at the constructed asset level must
    be updated annually

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[]{#__RefHeading___Toc125787645 .anchor}**Section 3 Planning and
Acquisition of Real Property**

Federal capital investment planning and decision-making has undergone
profound changes during the last decade as a result of the Government
Performance and Results Act (GPRA); Clinger-Cohen Act (1996); Federal
Acquisition Streamlining Act (1994); OMB's *Capital Programming Guide*
(Supplement to Part 7 of OMB Circular A-11); Executive Order 13327,
Federal Real Property Asset Management; and other federal initiatives.
In response, HHS developed a comprehensive capital asset planning
process and management strategy. A structure has been developed that
facilitates a comprehensive system-wide integrated capital investment
planning process (see section 2.3.2 HHS Facility Project Review
Process). The fundamental goal of this process is to ensure that all
major capital investment proposals, including high-risk and/or
mission-critical projects, are based on sound business and economic
principles; promote the "One-HHS" vision by linking diverse but
complimentary objectives; align with the overall HHS strategic goals and
objectives; address the Secretary's priorities by emphasizing program
objectives in support of internal goals; and support the President's
Management Agenda.

The mission requirements of HHS drive its planning and acquisition of
real property assets. During the planning phase, the Department's
mission requirements are incorporated into the agency's capital asset
plans. When a real property asset requirement is received or developed,
HHS first looks to use existing Government-owned assets before seeking
to add square footage to the federal inventory. If there are no suitable
existing solutions, HHS has three alternatives: Build a new federal
asset; buy an existing asset; or lease a new asset from the private
sector. The merits of each alternative are analyzed to insure that the
needed real property asset is acquired in the most cost effective
fashion, as well as in time to meet agency needs.

To determine the most appropriate acquisition method, HHS considers such
things as: How many assets are needed; how quickly is the asset needed;
how long will the asset be needed, how specialized is the asset; and how
complicated will the build-out be? This effort is included in the HHS
Pre-project Planning activity, in which HHS employs a disciplined
approach to early (pre-design) decision-making in order to avoid costly
changes after the start of detailed design or construction. HHS has
adopted the industry best practice for Pre-project Planning developed by
the Construction Industry Institute. Pre-Project Planning is a process
for developing sufficient strategic information from which HHS can
evaluate risk and decide to commit resources to maximize the success of
a project. The process has four key components: Organizing for
Pre-Project Planning; Select Project Alternatives; Develop a Project
Definition Package; and Decide Whether to Proceed with the Project.
Acquisition methodologies are assessed early on in project development
and the most appropriate is selected for the planned acquisition. The
process does not dictate the method of acquisition and, in fact,
encourages analysis of all alternatives addressing cost, time,
technology, site characteristics, economics, etc. A thorough analysis
will include consideration of existing renovation versus construction
versus leasing. Once the best alternative(s) is identified, then a
detailed definition package of the project scope, design, controls, and
execution is prepared. The Project Definition Rating Index (PDRI), as
developed by the Construction Industry Institute, is used as a tool to
determine whether the project definition package is adequately defined
to make a decision to move forward with a project.

HHS will be customizing the PDRI tool to more accurately reflect the
specific parameters appropriate for each of our projects. The process
also yields the most critical actions necessary at each planning review
to reduce project risk. Each of these factors is important for
determining logistically feasible alternatives and comparing the
life-cycle cost of those alternatives. The recommendation for satisfying
a mission need through construction, purchase, or leasing is based on
the results of critical analysis. The first level of analysis includes
adherence to OMB Circular A-11, Part 7 requirements for life cycle
costing, alternatives evaluation, and justification and is documented on
the HHS Form 300. The second level of analysis is internal OPDIV budget
and requirements reviews. The third level of analysis is the HHS Review
and Approval process through the Office of the Deputy Assistant
Secretary for Facilities Management and Policy and/or the HHS Capital
Investment Review Board. Lastly, projects that survive the first three
levels are submitted to the Secretary's Budget Council to assess
programmatic tradeoffs and make the final recommendation to the
Secretary for inclusion in the HHS FY Budget Submission

***Benchmarking***

Investment protocols and standards have been developed to provide
guidelines for each major phase/milestone in the life-cycle of a capital
asset. All capital assets are monitored and evaluated against a set of
performance measures (including those that are underutilized and/or
vacant) and capital goals to maximize highest return on the dollar to
the taxpayer.

As the owner of a substantial infrastructure, HHS has the responsibility
to measure the utility, productivity and value of those investments.
Asset performance measurement is a fundamental component of the
following:

-   accountability to the taxpayers;

-   a determination of best practice role models;

-   recognition and incentive for good asset management; and

-   Justification for past and future investment.

At the highest level, asset performance is measured against HHS's
primary asset related goals:

-   Establish policies; guidelines; operating procedures; and lines of
    financial authority, delegation, and accountability; and provide
    Departmental oversight and integration for Operating
    Division/OFMP-related activities to assure that HHS functions as
    "one Department" in the facilities area.

-   Improve the Capital Planning/Program integration process.

-   Reduce the cost of leasing and real property management.

-   Reduce the cost of acquisition and ownership.

-   Improve safety, security, maintainability, life cycle cost, health,
    and environmental impact by facilitating sustainable design and
    other best practices.

-   Improve the physical environment and reduce operating cost of the
    HHH Building and the Central Employment Area.

-   Lead facilities innovation and promote continuous improvement.

HHS has implemented the government-wide real property management
standards promulgated by the Federal Real Property Council (FRPC). The
current first tier measures include Facility Condition Index, Annual
Facility Operating Costs, Facility Utilization Index, and Mission
Dependency measures. These measures will also incorporate industry and
commercial benchmarks where available and appropriate.

HHS is fully committed to using appropriate industry and commercial
benchmarks to gauge the condition and performance of facilities and
expects additional benchmarks will be identified by the FRPC and other
agencies in their asset management plans. HHS will review existing
information for usefulness and ensure future data gathering efforts
support program goals. For example, GSA uses a housing plan detailing
current space assignments and projected needs using cost benchmarks and
project development data on building efficiency, to assess the customer
need and their impact on the assets within a given location. HHS is
exploring whether to adapt and use this plan and benchmarks for its own
purposes.

In addition, the development and deployment of the Automated Real
Property Inventory System (ARIS), facility management software will
assist HHS in achieving a major milestone in transitioning from the
traditional single asset management style to corporately managing our
vast portfolio of holdings. The information and data captured by ARIS
will enable OFMP to better understand the agency's assets, as well as
determining where any problems lie by providing increased visibility of
asset performance on an across the board organizational level. Only
through this corporate portfolio perspective can HHS begin to achieve
its overall capital asset business strategy of value management.

## **3.1 Capital Plans for Major Projects**

Each land-holding OPDIV as part of the annual budget cycle develops a
prioritized capital plan. The Annual Facilities Plans for FY2007 are
included in Attachment 4. The Annual Facilities Plans contain those
projects that are recommended for implementation in the Budget year
minus 3 years to the budget year plus 5 years forward. For example, the
2007 plan includes the years 2004 through 2012. Projects in the plan
include construction, repair-by-replacement, major repairs (over \$3M)
and major improvements (over \$1M). Lump sum amounts may be shown for
Repairs and Improvements (R&I) and Maintenance and Improvements (M&I) in
out years. The budget call guidance in the spring asks each OPDIV to
include in their Annual Facilities Plan for Buildings and Facilities all
projects requiring ASAM or Board approval. Projects below the thresholds
of \$1M for construction and improvements and \$3M for repairs, for
which the OPDIVs have approval authority, may be included in the Annual
Facilities Plan at the OPDIVs' discretion. These projects are typically
funded from the lump sum appropriations for R&I or M&I. The Department
requires that each OPDIV have an internal process with their
stakeholders for identifying projects, developing and evaluating the
business case for each project, and prioritizing projects for inclusion
in their facilities plan. HHS requires each OPDIV to program their
requests and approves individual projects and lump sum program amounts
in concert with balancing programmatic priorities and understanding the
impacts of approving or deferring the facility
work.![](media/image8.jpeg){width="3.0555555555555554in"
height="2.3131944444444446in"}

HHS requires capital projects \$10M or more as defined in the HHS
Facilities Program Manual to be submitted to the Capital Investment
Review Board. These projects must be designed and constructed with funds
specifically identified, by project name, for that purpose in the HHS
Buildings and Facilities (B&F) budget process documents, a congressional
reprogramming action or actual line item appropriation. Capital projects
under \$10M that add useable program space must be submitted to ASAM
(OFMP) for review and approval. These projects must be identified, by
project name, for that purpose in the HHS B&F budget process documents,
a congressional reprogramming action or actual line item appropriation.
These projects have a project specific apportionment from OMB. Capital
projects between \$1M and \$10M for improvements and between \$3M and
\$10M for repairs that do not add useable program space must be
submitted to ASAM (OFMP) for review and approval. These projects are
identified by project name in the OPDIV Annual Facilities Plan. However,
they may not have an actual line item appropriation or a specific
apportionment from OMB. These projects are typically funded from the
lump sum R&I or M&I.

### 3.1.1 Construction Major Projects

The construction program addresses program requirements that serve a
federal need that cannot be readily met with existing agency assets or
assets available in the private sector. The prioritization of these
projects is done in close coordination with the OPDIV with the specific
requirement*.* OFMP routinely meets with the facilities staff from each
OPDIV to discuss ongoing projects, pending new requirements and/or
mission initiatives. OFMP collaborates with the OPDIV Facilities
Directors to identify common initiatives and approaches to facilities
management through quarterly meetings. Each OPDIV is a voting
representative on the Capital Investment Review Board and, as such,
assists the Department in the overall validation and prioritization of
the Departmental Building and Facilities program at the annual Board
meeting in June of each year. Beginning with the FY 2005 budget
preparation process, HHS required all projects \$10M or more and land
acquisitions be submitted to the Board for review and concurrence. Each
OPDIV formally presents their prioritized plan before the Board. The
Board then defines action items and provides a recommendation to the
Secretary's Budget Council. From the Board's recommendation and the
Secretary's Budget Council, the final Secretary's decision is issued,
which becomes the basis for the Department's prioritized Capital Plan in
the budget submission to OMB.

In preparing their presentation to the Board, each OPDIV is required to
develop a draft Facility Project Approval Agreement (FPAA). The FPAA is
the project justification, and is submitted as part of the HHS budget
formulation process. The draft FPAAs are submitted for review to OFMP no
later than June 1 each year in preparation for the annual Board meeting
in late June. Prior to execution of the project, a final FPAA consistent
with the decisions of the Secretary's Budget Council is signed by the
OPDIV Board Member, Project Director, and Project Manager. HHS signs off
signifying HQ and Board approval and acceptance of the OPDIV's
commitment to execute the project within the defined requirements,
scope, budget and schedule as presented or modified during the review
process. As signatories to the FPAA, the OPDIV Board Member, OPDIV
Project Director, and OPDIV Project Manager are held accountable for
delivering the approved project within the defined scope, budget and
schedule. Projects are measured annually against the approved FPAA for
deviations in scope, budget and/or schedule. This is a performance
measure for each OPDIV under the Department's management objectives. The
measure is reflected in the internal scorecard HHS provides each OPDIV
under Real Property Asset Management and in the performance plan of the
OPDIV Director. This performance measure flows down to the signatories
on each respective FPAA and has a direct impact on each person's annual
performance rating.

New requirements for projects that occur outside the normal budget
formulation process are submitted for review as soon as the requirement
has been identified. These out-of-cycle projects may be necessary
because of an emergency, new mission, or changed requirements. Funding
comes from reprogramming or lump sum R&I or M&I, as appropriate for the
type of project. OFMP works with the OPDIV to facilitate approval of the
project in a timely manner. Planning and program documents are not
submitted with the FPAA. However, as part of the review process, OFMP
may require the OPDIVs to submit these
documents.![](media/image9.jpeg){width="3.4555555555555557in"
height="2.591666666666667in"}

HHS has identified thorough pre-project planning as a key to successful
project accomplishment. Pre-project planning is a process for developing
strategic information with which an OPDIV can address risk and decide to
commit resources to maximize the chance of a successful project.
Pre-project planning starts with the identification of requirements and
continues through the schematics phase of the project. The pre-project
planning phase establishes the project requirements and concept, and
provides the basis for the project budget and approval. HHS has adopted
pre-project planning as a best practice, and requires the use of the
Construction Industry Institute's (CII) tool, the Project Development
Rating Index (PDRI) to evaluate the ongoing status of a project. The
major stakeholders of the project convene and through input into the
PDRI tool, determine the accuracy and completeness of project
information. The process includes analysis of three specific areas:
Basis of Project Decision, Basis of Design and Execution Approach. As an
example, the Basis of Project Decision rates such elements as the level
of definition of the building use, functions and alternate options; the
driving forces and business strategy that supports the project; the
economic viability of the project; how reliability, maintenance,
operations and design will be considered; evaluation of existing
facilities and specific project requirements. The PDRI is used as an
indication of the project's readiness in terms of its development and
helps determine whether the project should proceed through the budget
cycle, allowing each OPDIV to make the best investments and improve
project success by thinking ahead and planning early. The PDRI tool also
identifies those areas that may need special attention or consideration
in putting together the overall project plan, such as environmental
considerations.

### 3.1.2 Repair and Improvement Major Projects

Beginning with the FY 2005 budget preparation process, HHS required all
Repair projects \$3M or more and all Improvement projects \$1M or more
but less than \$10M to be submitted to the OFMP for review and
concurrence. Each OPDIV presents their Repair (or Maintenance) and
Improvement (R&I/M&I) projects in their Annual Facilities Plan, which is
submitted as part of the budget process documents. Projects below the
thresholds of \$1M for improvements and \$3M for repairs, for which the
OPDIVs have approval authority, may be included in the Annual Facilities
Plan at the OPDIVs' discretion. Projects below the thresholds are not
submitted to the Department for review as individual projects. The
Department requires that each OPDIV have an internal process with their
stakeholders for identifying projects, developing and evaluating the
business case for each project, and prioritizing projects for inclusion
in their facilities plan. As an example of an internal process, at NIH
the Facilities Working Group was chartered to advise the NIH Steering
Committee, the NIH Institutes and the NIH Director on matters pertaining
to the planning, acquisition, development, and use of land and
facilities. This group evaluates NIH programmatic needs, balances
competing priorities, identifies alternative means to meet changing
needs for capital facilities and reconciles them into a rolling
five-year Strategic Facilities Plan, the annual Buildings and Facilities
Plan and an annual Leased Facilities Plan. The annual Buildings and
Space Planning process begins almost two years prior to the budget year
in which capital funds are needed for new building projects or leased
space. The priorities and recommendations developed by the NIH Facility
Working Group are based on its general assessment of future budget
levels, facility condition assessments, knowledge of new NIH initiatives
that could generate a facility or space requirement or new service
demand, and consideration of whether the project's scope and cost are
defined sufficiently to allow it to be included in the plan.

As for major construction projects, each OPDIV is required to develop a
draft FPAA for all repair, maintenance and/or improvement projects that
exceed the thresholds. The FPAA is normally approved by September 30^th^
prior to the fiscal year in which the project is funded. The draft FPAAs
are submitted for review to OFMP no later than August 15 each year. New
requirements for projects and pre-project planning are addressed like
major construction projects.

### 3.1.3 Additional Actions to Improve Capital Plans for Major Projects

OS under the leadership of the HHS Senior Real Property Officer will
improve capital plans for major projects by: holding annual "Lessons
Learned" workshops to discuss the pre-project planning (PPP) process,
improvements to the Facility Project Approval Agreement (FPAA) and
changes to be incorporated in the next budget cycle; establishing a
working group to customize the PDRI tool specifically for HHS projects;
and developing a training module using CII best practice Project
Delivery and Contract Strategy (PDCS). Working with the OPDIVs, OFMP
will also sponsor workshops to train the OPDIV trainers, who in turn
will train OPDIV staff; develop an implementation strategy to assess the
quality of the design and construction process; and conduct a
Department-wide workshop to determine what best practices related to
sustainable design can be responsibly implemented by all OPDIVs. From
the workshop, OFMP will establish a working group to identify
sustainable initiatives and develop recommended practices and policy for
the Department.

### 3.1.4 Acquisition of Leases Above the Prospectus Level

GSA currently performs most of the HHS leased space acquisitions. When
developing their requirements, HHS OPDIVs consider the budget, overall
mission, and organization structure to assure the most efficient and
economical use of space. Before submitting its request to GSA, the OPDIV
surveys the Federal, state, and local organizations that they will be
working with in the area to ascertain whether low- or no-cost space
might be available. The OPDIV also ensures that HHS guidelines, at a
minimum, are followed with regard to space utilization. If after
thorough review it is determined that these utilization guidelines must
be exceeded due to program requirements, then a justification is
prepared and submitted to the Department for approval. As the
Contracting Officer for HHS leases, GSA is responsible for surveying the
availability of space in the local market and for ensuring that leasing
proposals conform to OMB\'s operating lease scoring requirements. The
OPDIV works with GSA to ensure that the timing of their acquisitions
conforms to the schedule by which the space is needed. This includes
terminating those leases or portions of leases in which the space is no
longer needed due to changes in the OPDIV or HHS mission.\" All leases
require HHS Office of the Secretary's (OS) approval with respect to the
Department's space utilization policies, appropriate security level, and
the leasing contract.

HHS ensures that leasing proposals conform to OMB's operating lease
scoring requirements and examines each leasing proposal for consistency
with the portfolio strategy, the availability of space in the local
market, and the appropriateness of timing. OPDIVs are advised to consult
with OFMP regarding scoring rules before executing lease agreements for
real property. OPDIVs are advised of these scorekeeping requirements
both in writing and in forums such as Facilities Directors' Workshops
sponsored by OFMP. OFMP will also sponsor training sessions (conducted
by OMB) for the HHS real property community whenever scoring matters are
modified.

In addition HHS has certain direct leasing authorities, which apply to
Indian Health Service. Legislative authorities include: Section 804 of
the Indian Health Care Improvement (HCI) Act (P.L. 102-357; Section 105
(1) of Public Law 93-68; and Public Law 100-690.

### 3.1.5 Acquisition of Leases Below Prospectus Level

HHS obtains its below prospectus leases in a variety of ways, including
using the General Services Administration, with assistance of private
real estate services firms, or, in-house personnel. The leases are
written and negotiated by the Operating Divisions, following policies
and guidance issued by the Department. The Administrator of General
Services Administration delegated leasing of general-purpose space to
the Secretary of the Department of Health and Human Services, effective
October 14, 1996. HHS has re-delegated this authority to the National
Institutes of Health; Indian Health Service; Centers for Disease Control
and Prevention; Food and Drug Administration; and the Program Support
Center. Prospectuses are required when the total cost of the project
exceeds the threshold established by 40 U.S.C. Section 3307. The 2005
threshold is \$2.29 million.

The Office of the Secretary has overall responsibility for management
and provision of technical and administrative services to all facility
development and operations in support of HHS's mission, including real
estate, acquisition services, property management, design, construction,
facilities planning and environmental protection. The Office of the
Secretary, Office for Facilities Management and Policy (OFMP)
promulgates and enforces overall space policy, including build-out
standards, leasing, and safety policy in Volume II of the Public Health
Services (PHS) Facilities Manual. The HHS Facilities Program Manual will
replace the PHS Facilities Manual. The HHS Facilities Program Manual
Volume I provides overall policy procedures guidance and reporting
requirements for direct lease acquisitions by HHS Contracting Officers
and Real Property Specialists. The OFMP approves all leases to ensure
adherence to standards. Additionally, Office of Public Health Emergency
Preparedness (OPHEP) reviews all proposed locations for the physical
security. OFMP issues written approval of the space acquisition.

In addition, Contracting Officers and Real Property Specialist are
required to follow the guidance outlined by GSA in the Federal Register
on May 25, 2005, which can be accessed at the following link:

<http://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/05-10451.htm>.
This guidance details the HHS responsibilities that stem from the 1996
"Can't Beat GSA Leasing" program.

As noted above in Section 3.1.4, HHS OPDIVs must acquire and utilize
space in accordance with all GSA regulations, as well as applicable laws
and regulations, including, but not limited to, the Competition in
Contracting Act (CICA), Federal Management Regulations (FMR), Executive
Order 12072, Executive Order 13006, the Davis Bacon Act, and the Federal
Acquisition Regulations (FAR) in order to:

1.  Protect the public interest by conservation of property and prudent
    management of resources;

2.  Effectively support the HHS and its missions by assuring facilities
    operation and performance of maintenance at a level of adequacy that
    will continually provide for HHS employees and the public they serve
    attractive and functional facilities and a high quality work
    environment that is comparable to industry, for HHS employees and
    the public they serve.

In addition to federal regulations and Executive Orders, HHS OPDIVs are
required to adhere to the HHS Space Utilization Policy issued on July
14, 2003, and the HHS Facilities Program Manual.

### 3.1.6 Additional Actions to Improve the Acquisition of Leases

OS under the leadership of the HHS Senior Real Property Officer will
improve the acquisition of major leases by establishing a Department
working group of OPDIV representatives (such as Real Property Officers)
as the conduit for assessing the Real Property Leased Space Program
(LSP) and developing performance measures for the LSP. OFMP will develop
a charter for the group, if appropriate; organize recurring sessions
for, among other things, the purpose of promulgating the correct (legal)
way to manage HHS's Leasing Program; form a group to initiate research
on "tools of the trade" (*e.g.* Co-Star and the like); evaluate the
aptness of these "tools of the trade" to HHS's Real Property Leasing
Program and discern opportunities to share software; develop a process
to consider consolidation/collocation of components in the same market
as an ongoing activity; develop and adopt internal controls for the
Leasing Program and evaluate the Warrant Program for Real Property
Leasing Officers with emphasis upon the credentials required for
becoming warranted and the ongoing educational requirements to maintain
the warrant; initiate OFMP-conducted internal audits of
randomly-selected leases; initiate development of Post Occupancy
Evaluations (a.k.a. Customer Satisfaction Survey) to discern if
commercially leased properties meet the mission needs of the
organizational entity; make use of GSA's annual IFMA survey in buildings
under GSA custody and control that are assigned to HHS; and require
OPDIVs to conduct an annual census/bottom-up review to calculate
utilization rates to ensure that organizational entities are
appropriately managing and utilizing space and provide certification to
OFMP as part of the scorecard process.

## **3.2 Acquisition Performance Measures and Continuous Monitoring**

Performance measures and benchmarks provide vital management information
in all phases of the life cycle of an asset. These measures, along with
quarterly management reviews, provide senior management with an
excellent monitoring mechanism and feedback loop. There are
government-wide measures, as proposed by the Federal Real Property
Council, as well as agency-specific measures that are designed to meet
the specific needs of an agency and track performance in achieving
mission requirements.

On the front end of the life cycle it is important to measure the
effectiveness and cost competitiveness of project delivery for
construction and leasing projects. There are currently no
government-wide acquisition measures; however HHS has several
agency-specific measures in place. HHS measures the effectiveness and
cost competitiveness of acquisitions through a series of construction
benchmarks and performance measures. HHS plans to develop cost
benchmarks for construction projects to ensure construction costs are in
line with private sector standards. Only projects that meet these
stringent requirements are considered for construction. Once in the
construction phase, HHS measures the project delivery through a series
of performance measures that assess whether a project is on schedule, on
budget and evaluates the scope and quality of the project. Specifically,
HHS employs three acquisition performance measures: *Changes in Project
Scope; Changes in Project Cost*; and *Changes in Project Schedule*. Each
is described below.

### 3.2.1 Federal Real Property Council Acquisition Measures

HHS will adopt the FRPC acquisition measures once they have been
developed and defined.

### Construction Acquisition Measures

When a Tribe contracts design and/or construction of facilities under
P.L. 93-638, an advance payment schedule is negotiated between the Tribe
and IHS. The Tribe accepts responsibility under P.L. 93-638 for ensuring
that payments to subcontractor(s) do not exceed the earned value of work
in place. Each OPDIV manages the earned value of each project consistent
with the requirements of OMB Circular A-11, Part 7 Planning, Budgeting,
Acquisition and Management of Capital Assets. The methodology utilized
on all construction projects follows the "Schedule Variance" approach
defined in Appendix Four of the Supplement to Part 7 -- Capital
Programming Guide. The OPDIVs track the disbursements on all projects
and ensure that they do not exceed the earned value of materials on site
and work completed. In evaluating a request for payment from a
contractor, the OPDIV certifies that the current invoice and its
detailed schedule of values reflect actual work to date.

Scope, budget and schedule have been defined as HHS specific
construction measures on all projects requiring ASAM or Board review.
The original approved FPAA is the baseline for measurement against a
specific project. Projects are measured annually against the approved
FPAA for deviations in scope, budget and/or schedule. As signatories to
the FPAA, the OPDIV Board Member, OPDIV Project Director, and OPDIV
Project Manager are held accountable for delivering the approved project
within the defined scope, budget and schedule. This is a performance
measure for each OPDIV under the Department's management objectives. The
measure is reflected in the internal scorecard HHS provides each OPDIV
under Real Property Asset Management and is in the performance plan of
the OPDIV Director. The performance measure flows down to the
signatories on each respective
FPAA.![](media/image10.jpeg){width="3.678472222222222in"
height="1.8520833333333333in"}

**Change in Project Scope**

The purpose of this measure is to determine the percent a project
changes in scope from planning through completion. It applies to all
projects that require a Facility Project Approval Agreement (FPAA). This
measure was incorporated into the Department's management objectives and
the OPDIV Directors' performance plans beginning in FY05. All line item
projects in the FY05 Buildings and Facilities (B&F) program were
measured based on their status as of September 30th, and results will be
included in the Q1 FY06 report. Starting in FY06, this measure applies
to all line item and lump sum (R&I, M&I, etc.) projects that require HQ
approval in accordance with the FPAA policy and that are active projects
in FY05 or later, plus FY05 and later projects completed in FY06.

The following procedure is utilized to implement this measure:

1.  Projects shall be measured annually.

2.  Project Scope is defined as described in FPAA, block 13. Project
    Scope is further defined as physical size and characteristics,
    functions, and special features.

3.  The original HHS approved FPAA is the benchmark for project scope.

4.  Annual reporting of this measure utilizes the current approved FPAA
    or HHS Quarterly Status Report whichever is most recent.

5.  Final report of change in project scope occurs when the project
    reaches "Operational" (at "Use and Possession" of a facility).

6.  Deliverable: Reporting of a Change in Project Scope includes the
    benchmark (original) FPAA, subsequent approved FPAA revisions, and
    the most recent FPAA (or Quarterly Status Report) with transmittal
    memo.

7.  Additional explanation sheets submitted with the FPAA may be
    included with a Change in Project Scope.

**Change in Project Cost**

The purpose of this measure is to determine the percent a project
changes in cost from planning through completion. It applies to all
projects that require an FPAA. This measure was incorporated into the
Department's management objectives and the OPDIV Directors' performance
plans beginning in FY05. All line item projects in the FY05 Buildings
and Facilities (B&F) program were measured based on their status as of
September 30th, and results will be included in the Q1 FY06 report.
Starting in FY06 this measure applies to all line item and lump sum
(R&I, M&I, etc.) projects that require HQ approval in accordance with
the FPAA policy and that are active projects in FY05 or later, plus FY05
and later projects completed in FY06.

Each OPDIV is responsible for the following to assure appropriate
implementation:

1.  Each OPDIV will begin testing for full implementation by Q1 FY06.
    Reporting will be part of the testing process for metric
    applicability purposes.

2.  Each OPDIV shall generate a Project Budget Template. Examples of
    project budget templates include:

-   CDC - Budget Worksheet (tab on the excel FPAA form),

-   NIH -- Project Budget Cost Template, and

-   IHS -- Facilities Budget Estimating System (FBES).

The following procedure shall be utilized to implement this measure:

1.  Projects are measured annually.

2.  Project Cost is defined as described in FPAA, block 6.b.

3.  The original HHS approved FPAA is the benchmark for project cost.

4.  An OPDIV generated project budget template will be utilized to
    capture all project costs and cross referenced with the FPAA cost
    data in boxes 9 and 10.

5.  Annual reporting of this measure utilizes the current approved FPAA
    or the HHS Quarterly Status Report whichever is most recent.

6.  Final report of change in project cost occurs when the project
    reaches "Operational" (at "Use and Possession" of a facility).

7.  When submitting final report of change in project cost, provide an
    explanation or notation for:

-   final project costs which are unknown (*e.g.*, pending litigation)

-   projects which are incremental in "Use and Possession"

    1.  Deliverable: Reporting of Change in Project Cost includes the
        benchmark (original) FPAA, subsequent approved FPAA revisions,
        and the most recent FPAA (or Quarterly Status Report) with
        transmittal memo.

    2.  Additional explanation sheets submitted with the FPAA can be
        included with Change in Project Cost.

**Change in Project Schedule**

The purpose of this measure is to determine the percent a project
changes in schedule from planning through completion. It applies to all
projects that require an FPAA. This measure was incorporated into the
Department's management objectives and the OPDIV Directors' performance
plans beginning in FY06. This measure applies to all line item and lump
sum (R&I, M&I, etc.) projects that require HQ approval in accordance
with the FPAA policy and that are active projects in FY05 or later, plus
FY05 and later projects completed in FY06. The results of this measure
will be included in the Q1 FY07 report.

The following procedure shall be utilized to implement this measure:

1.  Projects are measured annually.

2.  Project Schedule is defined as described in FPAA, block 15.

3.  The original HHS approved FPAA is the benchmark for project
    schedule.

4.  Annual reporting of this measure utilizes the current approved FPAA
    or the HHS Quarterly Status Report, whichever is most recent.

5.  Final report of change in project schedule occurs when the project
    reaches "Operational" (at "Use and Possession" of a facility).

6.  Deliverable: Reporting of Change in Project Schedule includes the
    benchmark (original) FPAA, subsequent approved FPAA revisions, and
    the most recent FPAA (or Quarterly Status Report) with transmittal
    memo.

7.  Additional explanation sheets submitted with the FPAA can be
    included with Change in Project Schedule.

### 3.2.3 Leasing Acquisition Measure

The Contracting Officer for the OPDIV uses firsthand knowledge of the
local commercial rental market combined with whatever benchmarks
(industry standards) that are available to HHS. This body of knowledge
serves to inform the Contracting Officer if the offerors are either
inordinately high or inordinately low. Benchmarks, in and of themselves,
do not set rental rates. Offerors likely have access to the same
industry standards and benchmarks, as do Contracting Officers. Each
owner (offeror) ultimately decides what his best offer is to entities
seeking tenancy in the building. HHS HQ would challenge the Contracting
Officer to defend the proffered rental rate if it were radically
divergent from the published industry standard.

HHS uses various strategies to keep leasing costs at or below market
levels include comparing lease offers to industry benchmarks, using
market surveys to comparison shop for best prices, using published
market sources, such as the Society of Industrial and Office Realtors
(SIOR), CoSTAR and Torto Wheaton, to gain a better understanding of area
markets and to ensure leasing costs are in line with the private sector
market.

As HHS Contracting Officers evaluate best and final offers for a leasing
transaction, the CO makes use of the various tools available including
industry standards. If the offer is radically different (high or low)
the CO will use such information as an evaluative tool and not as an
arbiter of whether the offered rental rate is fair and reasonable. The
comparison of competing offers is the best barometer of the aptness of a
proposed rental rate. Contracting Officers will evaluate offers solely
in accordance with the factors and sub factors stated in the
solicitation for offers. Contracting Officers will evaluate prices and
document the lease file to demonstrate that the proposed rental costs
are fair and reasonable.

Each OPDIV is tasked to assure that OMB A11 requirements are met,
including lease scoring. Further, HHS ensures that all proposed leasing
transactions conform to OMB\'s operating lease scoring requirements
through review of lease transactions and through audits of existing
leases. HHS will have a continuous effort underway to ensure that the
measures it uses to evaluate offers are consistent and in compliance
with all applicable laws, regulations, and guidelines.

### 3.2.4 Customer Satisfaction Surveys/Measures

HHS tracks user/tenant satisfaction with newly constructed assets
through use of post-occupancy evaluation surveys to determine whether
the constructed asset is performing as intended and to determine if the
end users are satisfied with the asset (if requirements have been
successfully met). These surveys are prepared on a "site by site" basis
and are designed to elicit information on whether there is:

1.  Efficient use of space including optimizing square footage and floor
    plan.

2.  Sustainability in terms of

    -   Efficiency of operations and maintenance,

    -   Durability of finishes,

    -   System flexibility, space adaptability,

    -   Technologically current and adaptable,

    -   Energy performance.

3.  Design elements pleasing to occupants and visitors.

4.  Acoustics, lighting, ventilation, thermal control.

5.  Effective exterior design strategies.

6.  Control of storm water.

The data gathered during the project survey is incorporated into a
Post-Occupancy Evaluation Report and furnished to the OPDIV planning
office and the facility manager. This survey report is for information
and use in planning and constructing future health care and research
facilities. Copies of the report are made available to all HHS OPDIVs,
as well as to any office or committee engaged in updating design
criteria for use in HHS health care and research facilities construction
programs.

## **3.3 Acquisition Initiatives**

HHS is striving to improve the delivery of capital projects within
scope, within budget and on time. To accomplish this, HHS has adopted or
developed specific tools to measure performance such as the Facility
Project Approval Agreement, HHS Quarterly Status Report, Pre-Project
Planning as a best practice, and the CII Project Definition Rating
Index. In addition, HHS is encouraging the use of other industry best
practices such as CII's Project Delivery and Contract Strategy (PDCS) to
determine the most appropriate method of acquisition. The acquisition
strategy is an integral piece of the FPAA documentation, and the updated
HHS Facility Program Manual requires the submission of the actual
acquisition plan as part of the project documentation.

![](media/image11.jpeg){width="3.4604166666666667in"
height="2.379861111111111in"}

One of the future initiatives that HHS is developing is sustainability.
The Department has designated a representative to the Federal Green
Building Council, and currently encourages sustainability in design and
construction through energy conservation, indoor air quality, waste
reduction and recycling, and high performance buildings, as outlined in
the HHS Facilities Program Manual. The Department plans to establish a
workgroup with OPDIV members to develop recommended sustainable
practices in construction and issue a formal sustainable design policy
in FY08. The Department requires value-engineering analysis, including
life-cycle cost analysis, on all projects where the construction cost
exceeds \$1M, and requires an independent analysis by a specialized
consultant or Government personnel (not the project's
Architect/Engineer) on projects with a construction cost \$10M or more.
Design-Build as a procurement strategy is inherently a best value
selection process and further value engineering would have minimal
impact. Design-Build projects are exempt from the value engineering
policy. As the OPDIVs report their results, the Department may choose to
develop a specific initiative around using life cycle cost benefit
analysis, and developing a model analysis appropriate.

[]{#__RefHeading___Toc125787659 .anchor}**Section 4 Operations of Real
Property**

The operations phase of HHS real property assets involves making
decisions regarding maintenance and reinvestment, as well as monitoring
administration of leases and servicing agency needs. Critical
information is needed on all assets to support operational
decision-making.

## **4.1 HHS Real Property Inventory**

HHS is implementing a software tool to collect and maintain information
on its inventory' and to create executive-level reports to manage the
portfolio as a whole in a cost effective manner. (This inexpensive
software tool does not replace other systems in place within the OPDIVs,
or systems which have more extensive functionality for facilities
management.) HHS chose HarborFlex, a tool created by Lease Harbor, which
is a subscription software service for the administration of leases and
real property. It has been customized to meet HHS's needs with fields
created to capture the FRPC data fields and additional fields that HHS
has determined are needed to manage its portfolio.

The data from the four landowning OPDIVs is directly linked into
Harborflex and refreshed daily. The data from the smaller OPDIVs, which
do not own land, will be manually updated. There are standard reports
that have been established for HHS, and that are easily run. If needed,
users can also create their own report formats.

There is a computer terminal located at OFMP's office and an
administrator responsible for working with HarborFlex. Because this is a
web-based tool, it is easily accessible to the OPDIVs as well. OFMP will
allow OPDIVs access to the system and has trained staff from all of the
OPDIVs in its use.

***HHS Real Property Portfolio by Occupancy Type***

The HHS national building portfolio consists of some 3,828 constructed
assets that contain over 46 million square feet (SF), with assets
divided evenly between the Washington, D.C./Baltimore area and locations
across the balance of the country. HHS both owns and leases property
itself and occupies space owned and leased by GSA.

**Table 4.1.1 Portfolio Breakdown by Occupancy Type**

  ---------------- ------------------ ----------------- -----------------
  **Occupancy      **\# of            **Rentable SF**   **% of Entire
  Type**           Locations**                          Portfolio**

  Lease Space                                           

  GSA- Leased      342                10,687,162        23.07%

  HHS-Leased       197                2,791,702         6.03%

  Owned Space                                           

  GSA-Owned        117                2,938,849         6.34%

  HHS-Owned        179                27,818,787        60.06%

  Tribally Managed                                      

  HHS Leased       26                 427,762           0.92%

  HHS-Owned        29                 1,656,608         3.58%

  Total            800                46,320,870        100.00%
  ---------------- ------------------ ----------------- -----------------

The largest category of space is property owned by HHS, due to the large
holdings of NIH, CDC and IHS, which total approximately 29.4 million
square feet (SF). The majority of the owned space held by NIH and CDC
are the office and lab facilities located on the main campuses in
Bethesda, Maryland and Atlanta, Georgia, respectively. The majority of
the IHS-owned properties are the health care delivery facilities located
throughout the twelve IHS administrative areas, with most of this
property found in rural areas. A portion of these assets are
tribally-managed, as indicated in the chart below.

**Table 4.1.2 Property Breakdown by Occupancy Type**

![](media/image12.wmf){width="4.824305555555555in"
height="3.2395833333333335in"}

***HHS Real Property Portfolio by OPDIV***

The four largest property portfolios are used by NIH, IHS, CDC and FDA.
Collectively, these groups occupy 41.8 million SF, or 90% of the total
portfolio.

**Table 4.1.3 Portfolio Breakdown by OPDIV**

  ---------- ------------- ------------ ------------- ------------ ------------- ------------
  **OPDI**   **\# of       **Total      **\# of       **DC/Balt    **\# of       **National
             Locations**   Rentable     Locations**   Rentable     Locations**   Rentable
                           SF**                       SF**                       SF**

  OS         15            1,128,654    11            1,127,325    4             1,329

  ACF        25            522,826      4             273,092      21            249,734

  AHRQ       2             135,303      2             135,303      0             0

  AoA        1             45,614       1             45,614       0             0

  CDC        49            7,761,471    2             206,686      47            7,554,785

  CMS        51            1,499,162    5             1,028,591    46            470,571

  FDA        251           6,296,606    35            3,851,180    216           2,445,426

  IHS        412           10,858,806   3             127,714      409           10,730,456

  HRSA       3             444,151      3             444,151      0             0

  NIH        50            16,882,806   42            15,482,839   8             1,399,967

  PSC        30            518,088      10            418,296      20            99,792

  SAMHSA     1             228,019      1             228,019      0             0

  Total      890           46,320,870   119           23,368,810   771           22,952,060
  ---------- ------------- ------------ ------------- ------------ ------------- ------------

**Table 4.1.4 Portfolio Breakdown by OPDIV**

![](media/image13.wmf){width="5.688194444444444in"
height="3.0388888888888888in"}

***HHS Portfolio by Property Type***

The largest property type for the portfolio is "Office" space,
representing 37% of the total, followed by "Laboratory" space at 35%.
The next two categories are roughly equal in size. These are "Other
Institutional," which primarily includes IHS healthcare centers at 8.5%
and "Hospital" space at 8.3%. The fifth largest property type is "Family
Housing," which provides support function for Hospitals at NIH and
housing for IHS employees in remote locations where service is
delivered.

**Table 4.1.5 Property Breakdown by Property Type**

  ----------------- ------------- ------------------- ---------------------
  **Property Type** **\# of       **Rentable SF**     **% of National
                    Locations**                       Portfolio**

  Office            500           17,201,394          37.1%

  Laboratories      57            16,129,821          34.8%

  Hospital          45            3,846,068           8.3%

  Service & Storage 174           2,283,254           4.9%

  Family Housing    75            2,905,046           6.3%

  Other             318           3,955,289           8.5%
  Institutional                                       

                    1,169         46,320,872          100.0%
  ----------------- ------------- ------------------- ---------------------

Notes:

\(1\) Other Institutional includes: post offices, communication systems,
industrial, institutional and other usage types.

  -----------------------------------------------------------------------
  ![](media/image14.png){width="5.252777777777778in"
  height="3.7930555555555556in"}

  *FDA, Muirkirk, Laurel, Maryland*
  -----------------------------------------------------------------------

### 4.1.1 Historic Preservation Requirements

Executive Order 13287, Preserve America, and the National Historic
Preservation Act, require each federal agency to develop a comprehensive
plan to manage and maintain historic properties. HHS is in the process
of improving its comprehensive historic preservation plan to ensure it
will meet these historic preservation requirements, including the
following:

-   OPDIVs have appointed a Historic Preservation Coordinator and
    developed a list of historic properties and are in the process of
    reviewing for possible nomination to the National Register of
    Historic Places.

-   OPDIVs are in the process of finalizing plans to assure protection
    of all identified historic properties that indicate actions they
    need to take to ensure historic preservation requirements are met.
    The Department will ensure these plans are in place.

-   OPDIVs will prepare an Annual Report to the Headquarters of HHS. HHS
    will review and provide feedback to the OPDIVs on their input. HHS
    will develop a Department-wide report and submit the report to the
    Department of Interior every three years, as required.

-   HHS is in the process of reviewing the entire HHS grants program and
    is developing grants language so as to avoid adverse impacts to
    historic properties by grantees. OPDIVs have been provided a due
    date of 2/28/06 to develop plans to include the language in their
    grants packages.

HHS historic preservation program management and oversight is included
under the umbrella of OFMP's Real Property Management responsibilities.
The duties of the Federal Preservation Officer (FPO) for HHS, as
mandated by Section 110(c) of the NHPA, are assigned to an individual in
OFMP. As a result, the FPO for all of HHS is integrally involved in
coordination and consultation, both internally and externally on
historic preservation matters. This individual provides a wide range of
support to the OPDIVs and provides oversight, expertise and coordination
to individuals delegated with Federal Preservation Coordinator (FPC)
duties at the OPDIV level. The HHS FPO also communicates with State
Historic Preservation Officers, Tribal Preservation Officers, and public
and private interest groups as needed, and maintains close
communications with representatives from the Advisory Council on
Historic Preservation. The Department will review all OPDIV Preserve
America Section 3 reports to ensure compliance with executive orders,
policies and regulations.

HHS ensures historic HHS properties are protected and renovations are
completed in accordance with the Secretary of Interior "Standards for
Historic Properties," the National Historic Preservation Act, Executive
Order 13287, Preserve America, and other applicable requirements. HHS
works with external organizations for various assignments, provides
advice and training to OPDIVs on all facets of historic preservation and
finalizes and submits the annual archeological report.

### 4.1.2 Energy and Water Conservation Requirements

In Accordance with the Energy Policy Act of 1992 (EPAct) and Executive
Order (EO) 13123, Greening the Government Through Efficient Energy
Management, OFMP has developed a Department-wide Energy Program. Since
its inception in FY 1995, the HHS Energy Program has evolved into a
multi-faceted campaign aimed at achieving federal energy mandates,
providing technical assistance, disseminating information on federal and
private energy and water programs, promoting energy awareness, and
coordinating the efforts of the ten HHS Operating Divisions (OPDIVs) and
their many diverse facilities.

At the foundation of the HHS Energy Program are the following key
components:

> • The Department will develop the OPDIV guidelines and format for
> annual energy reporting requirements, including both the preliminary
> and final reports, as required by the Department of Energy (DOE) and
> Office of Management and Budget (OMB).
>
> • The Department will summarize the OPDIV energy report submissions
> into the preliminary and final HHS energy reports as required by DOE
> and OMB.
>
> • The Department will provide feedback to the OPDIVs on the content
> and scope of their energy reports, as well as the OPDIV energy and
> water efficiency efforts, offer advice for expanding details in the
> energy report and provide suggestions for energy and water programs or
> projects.

In addition, the HHS Energy Program includes the following:

*Energy Seminar/Training*

> • Arrange energy seminars for HHS energy coordinators, engineers,
> managers, and all other employees involved in energy management.
> Establish the topics, arrange for the appropriate speakers, and manage
> all other logistics of the seminar.
>
> • Coordinate efforts with DOE or the Environmental Protection Agency
> (EPA) to provide additional energy training for HHS personnel in areas
> such as renewable energy, Labs for the 21st Century, etc.

*Energy Newsletters*

> • Publish the HHS Energy News each quarter. The newsletters contain
> articles on OPDIV energy conservation efforts, energy leaders, new
> technologies, recycling, federal and private energy and water
> programs, and tips for energy and water savings.
>
> • Publish the HHS Energy Manager\'s News biannually. The newsletters
> contain articles on energy and water conservation efforts at HHS
> facilities or other federal sites, new technologies, federal or
> private efficiency programs, and current energy and water efficiency
> efforts.

*Awareness Events*

> • Organize awareness events for Earth Day and October Energy Awareness
> Month for the HHS headquarters building or other facility to be named.
> Events promote the HHS Energy Program, workplace and home energy and
> water conservation, and environmental awareness.
>
> • Coordinate and promote efforts of the OPDIVs to hold Earth Day and
> October Energy Awareness Month activities.
>
> • Provide details on the HHS awareness activities to DOE Federal
> Energy Management Program (FEMP) through newsletter articles and
> reports.
>
> • Manage the "You Have the Power" campaign activities and efforts
> between HHS facilities and DOE FEMP.

*Large Scale Energy or Water Efficiency Projects*

> • Perform or assist in the implementation of large scale energy or
> water efficiency projects. The projects may include, but are not
> limited to, renewable energy systems, heat recovery technologies,
> water conservation projects, or HHS Energy Program web-site
> development.
>
> Awards Programs
>
> • Manage the HHS Energy and Water Management Awards program. This task
> includes updating nomination guidelines and award criteria, promoting
> the program and encouraging nominations, reviewing nominations and
> selecting winners, and planning the annual awards ceremony.

*Executive Order 13123 Compliance*

> • Work with the OPDIVs to meet requirements of the Executive Order
> (EO) and establish compliance with initiatives and programs, as
> applicable.
>
> • Ensure compliance with the EO for the HHS agency as a whole.

*Miscellaneous Reports/Memos*

> • Write miscellaneous reports on HHS energy and water efficiency
> efforts as required by DOE, OMB, Congress, the Senate, or others.
>
> • Write memos as required on current event topics, efficiency
> programs, or specific initiatives.

*OPDIV Energy Measurements*

> • The land-holding OPDIVs are required to submit annual energy reports
> to the Department by mid-November. These reports are reviewed by the
> Department and energy measurement charts are developed that compares
> energy consumption at several different levels. The Department
> consolidates these reports into a HHS-wide report for submission to
> DOE.
>
> • Each land-holding OPDIV is required to submit an energy scorecard
> with their annual reports, based on the scorecard that agencies are
> required to submit to OMB. The Department will evaluate those
> scorecards and use as one of the measurement tools of the OPDIVs
> efforts.
>
> • Provide consulting services, both technical and administrative, to
> the OPDIVs on all aspects of the HHS Energy Program, technical
> projects, federal or private conservation programs, performance
> contracting, energy awareness, and EO 13123 compliance.

## **4.2 Asset Documentation**

The HHS asset documentation program (ADP) activities are designed to
provide information and technical consultation to land-holding OPDIVs on
control and management of realty assets/land and fixed improvements
under the administrative jurisdiction of the Department. ADP also
provides guidelines and procedures for the acquisition, utilization, and
disposal of owned and leased realty assets. It is the policy of the
Department to develop, establish, assess, improve, correct, and report
on the effective and economical management and utilization of OPDIV-held
realty. HHS requires land-holding OPDIVs to maintain key documentation
for all real property assets in a local file that includes a map, a copy
of the title, a metes and bounds survey, a legal description of the
property, documented environmental liabilities, historic significance,
an Americans with Disabilities Act (ADA) survey, documented fire life
safety issues, as built or CAD drawings, and a housing plan showing the
tenants within the asset or facility. This information is in electronic
or hard copy formats depending on the age of the facility. Although HHS
maintains this documentation for its assets, it is often not in one
centralized location. However, during, FY2006, OFMP will develop uniform
standards for documentation and filing for its inventory of owned
assets.![](media/image15.jpeg){width="3.4555555555555557in"
height="2.303472222222222in"}

Several laws enacted by Congress require a new level of coordination
between an agency's real property inventory (RPI) and the overall
financial records of the federal agency. These laws are the Chief
Financial Officers Act of 1990, P.L. 101-576, and the Federal Financial
Management Act of 1994, P.L. 103-356. As a result of these Acts, the
Federal Accounting Standards Advisory Board developed Standard 6 --
Accounting for Property, Plant and Equipment (FASAB No. 6). This
standard directs how federal agencies will track realty assets including
those acquired through capital leases and leasehold improvements in its
RPI and requires the reconciliation of these inventories (subsidiary
ledger accounts) with the agency's general financial statements.

OFMP is responsible for the planning, coordinating and evaluation of HHS
realty management and accountability activities. The HHS Automated Real
Property Information System (ARIS) contains all accountable data for
HHS-held facilities. The ARIS is a subsidiary financial ledger to the
HHS general ledger that documents all asset values for land and fixed
improvements. The ledger also includes actions involving acquisitions,
improvements, transfers and disposal. Asset documentation is also
contained in the HHS Asset Management Building Block, which looks at the
facility's life cycle.

## **4.3 HHS Asset Management Building Block**

Each owned HHS site is considered a "building block" for portfolio
management purposes and every site of two independent buildings or more
must have a Facility Master Plan, developed in accordance with Volume I
of the HHS Facilities Program Manual. This Facility Master Plan is the
Building Block Asset Management Plan for multiple-building sites. For
sites occupied by only one building, that constructed asset is the
"building block" for asset business planning. Thus, when the Capital
Investment Plans and Operations and Maintenance Annual Work Plans are
developed for an OPDIV, they are developed first by site (building
block), and then integrated into an overall plan for the OPDIV through
the HHS asset planning and budget process.

Through the web-based software tool Harborflex and the ARIS, which HHS
uses to track its portfolio data, HHS has created a report for
constructed assets with a replacement value in excess of \$500,000. This
is used as a tool by agency real property personnel to maintain
information about a particular asset and to outline the current
performance and expenses for that asset to feed into the asset planning
and budget process. A sample individual constructed asset report (CAR)
is shown in Attachment 5. The format is a work in progress and will be
assessed after the first year to assure its utility in managing HHS
assets. It contains a rollup of all FRPC metrics and will be used to
provide a snapshot of the complete picture for the asset and its
performance against HHS goals, at first primarily the Facility Condition
Index and Utilization Index.

OPDIVs will update data annually as part of the planning and budget
process. This CAR is currently in the implementation stage, and HHS
plans to use it for capital planning and reporting purposes at both the
OPDIV and headquarters levels. It is necessary for the OPDIVs to develop
their annual work plans in order to be able to populate the CAR. Annual
Work Plans (AWPs) are a new requirement being placed on OPDIVs in our
"three year timeline" and HHS will enter an AWP cycle for the FY08
budget cycle in order to have data available in late 2006. The HHS RAMP
will contain a sample CAR. The CAR for any specific asset will be
available through an ARIS query.

The CAR is a report at the constructed asset level, which includes
fields with the following information:

-   Building Number

-   Building Name

-   Location

-   Replacement Value

-   FRPC Metrics on FCI, Operating Costs, Utilization and Mission
    Dependency

-   5-Year Capital Investment Plan for Major Repair, Renovation, or
    Replacement

-   Annual Operating Budget

-   Operations-funded Maintenance and Repair projects

-   Historic Preservation Status

## 

## **4.4 Periodic Evaluation of Assets**

HHS performs periodic evaluation of its real property assets by using
government-wide measures as well as other agency specific measures
designed to monitor performance in utilization, financial performance,
physical condition, and operational efficiency. HHS also has several key
performance measures designed to track financial performance. HHS
examines its operating expenses on a facility-by-facility basis. HHS
uses the Facility Condition Index (FCI) and a goal of 2-4% of the
functional replacement value (FRV) for reinvestment.

In the last phase of the asset's life cycle, HHS tracks the cycle time
for disposal. HHS also uses a measure of projected disposals versus
actual to ensure that underutilized assets are quickly redeployed from
the inventory.

As fiduciary agents, HHS performs cyclical evaluations of its real
property assets on a one-to-five-year basis. The evaluation cycles are
determined based on the criticality of the facilities, significant
events from weather or incidents, and the overall condition indexes. HHS
tracks the value of its assets in several ways. HHS tracks Functional
Replacement Value and Book Value as indications of the relative value of
the portfolio. All FRPC performance measures will be updated annually.
The Condition Index measure will be updated once every five years (at a
minimum) by way of a visual assessment of the facility. For each of the
remaining four years of the five-year cycle Condition Index will be
calculated by way of a desk-top analysis based on such information as
age of the facility, actual repair costs, current replacement value,
etc.

The assessment process begins with determining what elements of a
facility need to be evaluated. Elements include above and below-grade
physical systems (*e.g*., architectural, civil, mechanical, electrical),
as well as other parameters such as space utilization, air quality, code
compliance and esthetic parameters. The steps associated with a typical
evaluation are provided in Attachment 6. A facility's total score
(*e.g*., poor, fair, good), is a function of the minimum threshold for
deficiencies, what priorities were assigned to the deficiencies and the
range of the grading scale. HHS is in the process of developing policy
that will standardize the assessment process across HHS. This policy
will be published June 2006, in Volume II of the HHS Facilities Program
Manual

HHS tracks performance indicators described in this plan for its
portfolio of assets and for each individual asset. Current performance
is compared against performance goals from private sector benchmarks,
previously established performance criteria, or individual performance
measure goals.

HHS uses the data from these assessments to update Asset Management
Building Blocks and facility management strategies. A key element
determined from these assessments is \"Facility Condition Index\" (FCI).
The goal of HHS is to achieve a reasonable, consistent condition index
over time across its portfolio of assets, to invest in its portfolio to
sustain assets to a prudent life-cycle and to operate assets on a cost
per square foot basis that mirrors industry standards. Facility
condition index, along with other inventory elements of operating cost,
utilization rates and mission dependency of a facility, provide the data
points necessary to gauge operations and sustainment trends and to drive
Capital Improvement and Operations and Maintenance investment
strategies. Emphasis will be placed on improving the FCI of
mission-critical facilities at a faster pace than less critical
facilities, and at a higher index. Investments in sustainment-type
projects will be adjusted, up or down, to track to a prudent life-cycle
curve. Actual operations and maintenance costs will be compared to
industry standards to assist in Capital Improvement decisions, and to
determine where/when to apply best business practices in lieu of
renovating, replacing or abandoning a facility.

HHS will provide OPDIV-specific investment strategy guidance in the form
of pre-budget guidance that will be issued in January, 2006. OPDIVs will
translate this guidance into Asset Management Building Blocks, which are
used to develop OPDIV budgets that are submitted in June of each year.
The budget submissions will be reviewed to ensure alignment with
pre-budget guidance and consideration of any emergent requirements and
necessary mitigations. The Asset Management Building Blocks will be
included as input at all levels of the HHS process described in Section
3 of this document. Thus they will be considered by OPDIV managers and
various levels at HHS Headquarters. They are also considered by energy
managers and other OPDIV personnel responsible for leadership and
management in specific functional areas. The strategy then becomes the
basis for formulating the annual operating budget and capital
reinvestment plan.

### 4.4.1 Mission Dependency

HHS measures the "mission dependency" of each of its real property
assets. The purpose of this measure is to determine the value an asset
brings to the performance of the mission, as determined by the OPDIV in
the categories of Mission Critical, Mission Dependent -- Not Critical,
and Not Mission Dependent.

Mission dependency applies to each facility for each OPDIV. The
applicability of this metric extends to all properties leased and/or
owned and operated by the OPDIV.

Each OPDIV is responsible for the following to assure appropriate
implementation:

1.  Each OPDIV will begin testing for full implementation by Q1 FY06. To
    test the measure, each OPDIV will apply the measure to 100 percent
    of the facilities in its inventory by Q1 FY06. Reporting will be
    part of the testing process for metric applicability purposes.

2.  Each land-holding OPDIV will utilize an electronic asset inventory
    system that feeds into the HarborFlex system. The OPDIV is to ensure
    that the inventory system has a data field called "Mission
    Dependency," allowing for the input of one of the Mission Critical
    letter designations identified in the procedures below.
    Additionally, a text field must be provided for use in providing an
    explanation for any assets designated as Not Mission Dependent. The
    OPDIVs will ensure this system is coordinated with HHS prior to
    implementation.

When full implementation begins, the OPDIVs will utilize the following
procedure:

1.  Each OPDIV will initially evaluate the functions within each of its
    assets and place each of the assets in one of the following
    categories:

> **Mission Critical** - Space or facilities that house activities such
> as health and social science research; preventing disease, including
> immunization services; assuring food and drug safety; Medicare (health
> insurance for elderly and disabled Americans) and Medicaid (health
> insurance for low-income people); health information technology;
> financial assistance and services for low-income families; improving
> maternal and infant health; Head Start (pre-school education and
> services); faith-based and community initiatives; preventing child
> abuse and domestic violence; substance abuse treatment and prevention;
> services for older Americans, including home-delivered meals;
> comprehensive health services for Native Americans; and medical
> preparedness for emergencies, including potential terrorism are
> mission critical.
>
> **Mission Dependent** - Space and facilities that support the above
> mentioned activities are mission dependent.
>
> **Not Mission Dependent** - Mission is unaffected by the elimination
> of the constructed asset.

2.  Each asset will receive only one category designation. Where there
    are multiple functions for a facility, then the highest applicable
    mission dependency category should be utilized.

3.  The evaluation will be based on the facilities function under normal
    operations, not a catastrophic scenario.

4.  The initial categorization for each asset will be entered into the
    OPDIV's asset inventory system using the following designations:

    -   Mission Critical

    -   Mission Dependent

    -   Not Mission Dependent.

    5.  Where any asset is designated as N (Not Mission Dependent), the
        OPDIV will complete the text field to provide the explanation
        for this designation. OPDIVs are generally utilizing assets for
        work that is important to their missions. Identifying a property
        as *Not Mission Dependent* will lead to an assessment of the
        property and its use.

    6.  On an annual basis in the first quarter of each fiscal year, the
        OPDIV will review the asset categorizations and update the asset
        inventory system with any changes. This information is the
        initial flag for the OPDIV to consider whether or not the real
        property asset should be retained or a plan of disposal
        developed. A 'Not Mission Dependent' categorization triggers a
        detailed analysis of the property function and utilization and
        its link to the overall mission. If analysis shows the asset
        should be retained, re-categorization may be appropriate. If
        not, a decision is made by the OPDIV Director as to whether the
        building use should be reevaluated or if a proposal is to be
        forwarded to the HHS Senior Real Property Officer for an
        assessment of other Departmental need for the property or to
        initiate disposal actions.

> In developing proposed projects and monitoring existing facilities,
> the categorization of the facilities will be used to determine the
> highest priorities at the OPDIV level. Submittals to the Department
> will reflect these priorities in the OPDIV's Annual Facilities Plan.

  -----------------------------------------------------------------------
  ![](media/image16.jpeg){width="6.499305555555556in"
  height="3.265277777777778in"}

  *FDA Jefferson Labs, Arkansas*
  -----------------------------------------------------------------------

### 4.4.2 Facility Condition Assessment Performance Measures

HHS uses various metrics to assess the physical condition of its
facilities and the reliability of associated data. Mandatory metrics are
*Facility Condition Index (FCI)* and *Backlog of Maintenance and Repair
(BMAR).* Optional "best practices" metrics include *Assessment Freshness
Index (AFI), Inventory Quality Index (IQI) and Sustainment Rate (SR).*
Each is described below.

***Facility Condition Index (FCI)***

The HHS definition for FCI is based on FASAB Standard Number 6 (1996),
as reported in Federal Facilities Council Technical Report No.141:
Deferred Maintenance Reporting for Federal Facilities, 2001.

FCI is the ratio of repair needs (including BMAR) to asset value and,
when multiplied by 100, is expressed as a figure where high values
indicate better condition (with 100 being the best condition). 'Repair
need' is a response to deferred maintenance (i.e.: maintenance that was
not performed when it should have been or was scheduled to be and which,
therefore, is put off or delayed for a future period). 'Asset value' is
defined as "plant replacement value" (*i.e*. cost in current dollars to
replace existing facility with new construction supporting existing
functions).

FCI is to be applied to each HHS owned and operated facility. All four
HHS land-holding OPDIVs already use a form of FCI. HHS effort is
underway to standardize the calculation of FCI and its associated
thresholds. OPDIV specific implementation strategies are being developed
and will be "operationalized" by August 2006 so that resultant data and
benchmarks are available in time for HHS pre-budget guidance to OPDIVs
for the FY09 budget build. Existing data collected in FY05, and notional
benchmarks to be established 1Q06, will be used by HHS to develop
pre-budget guidance to the OPDIV's for their FY08 budget build. The
implementation of FCI, the facility assessment program that feeds it and
its link to the investment decisions that flow from it are considered to
be evolutionary in nature. The more budgets that are built with an eye
on FCI, the more refined the facility assessment process will become,
the more knowledgeable of their inventory HHS and OPDIVs will become,
leading to a more effective allocation of resources.

Each OPDIV is responsible for the following to assure appropriate
implementation:

1.  Each land-holding OPDIV will, by mid-year 2006, begin moving towards
    a standardized assessment program (as is the process being jointly
    established by HHS and the OPDIVs) to identify facility system and
    component renewal projects that need to be completed within any
    given year, and to calculate and report FCI (in accordance with the
    standardized program being jointly developed).

2.  Each OPDIV will record FCI in their local electronic asset inventory
    system. HHS does not require a specific system, only that the system
    is capable of exporting FCI values to the HHS Automated Real
    Property Information System. OPDIVs and HHS have coordinated systems
    in conjunction with HHS implementation of ARIS.

3.  Annually, in the last quarter of each fiscal year, the OPDIV will
    update their facility assessment information, calculate FCIs and
    export FCIs to ARIS. HHS will use this information to develop
    pre-budget guidance for FY+2. Pre-budget guidance will be provided
    each January. OPDIVs will use this guidance to prepare their June
    budget submit for FY+2. HHS will review and approve budgets in late
    June.

***Backlog of Maintenance and Repair (BMAR)***

Land-holding OPDIVs use BMAR as a mandatory facility condition metric.
BMAR indicates the level of repair and maintenance that was not
performed when scheduled and that was delayed until a future time. BMAR
is an indicator of potential shortening of the useful life of facilities
and likely increase of long-term maintenance and repair costs. BMAR is a
useful data point at the OPDIV level in the development of its budget
submission. HHS does not use BMAR in the development of pre-budget
guidance to OPDIVs since FCI provides sufficient macro-level visibility
into whether an OPDIV's facilities are deteriorating, improving or
remaining the same.

Federal Accounting Standards Advisory Board (FASAB) Standard No. 6, as
amended, requires federal agencies to annually report their total dollar
amount of deferred maintenance. The FASAB standard defines deferred
maintenance as "maintenance that was not performed when it should have
been or was scheduled to be and which, therefore, is put off or delayed
for a future period" (FASAB, 1996). HHS collects and reports BMAR as an
independent, once-a-year effort, as opposed to requiring OPDIVs to
export BMAR data to ARIS. There is no value in OPDIVs exporting BMAR to
ARIS, when HHS relies on FCI as a macro-level indicator of an OPDIV's
asset management performance.

To calculate deferred maintenance, HHS land-holding OPDIVs and
components, through condition assessments, systematically itemize and
estimate costs for facility system level, non-routine repair
requirements. These costs are then aggregated and prioritized at the
OPDIV level. BMAR requirements drive OPDIV asset-based
strategies/decisions, which in turn drive budget submissions. Funding is
sought for these requirements through a variety of methods and
appropriations. As agencies do not necessarily obtain sufficient funds
to address all the maintenance and repair requirements, BMAR indicates
the shortfall in funding required to raise overall condition levels to
an acceptable target standard and is compared to the asset replacement
value to calculate the Facility Condition Index. It is Condition Index
that HHS may monitor for internal scorecard and performance evaluation
purposes.

Each OPDIV or other HHS component is responsible for the following to
assure appropriate implementation:

1.  Each land-holding OPDIV will begin implementing an annual assessment
    process consisting of an OPDIV-specific combination of strategic
    ("desk-top") and tactical ("visual") assessment methods. These
    methods will identify repair and maintenance projects for each HHS
    owned and operated facility that need to be completed within any
    given year. The combination of methods will be a function of OPDIV
    resources, with no facility going longer than five years without a
    visual inspection.

2.  Each land-holding OPDIV utilizes an electronic asset inventory data
    processing system, such as Microsoft Access database. HHS does not
    require a specific system, only that the system is capable of
    automatically totaling, storing and reporting BMAR values (among
    other data points). OPDIVs and HHS have coordinated systems in
    conjunction with the implementation of the HHS ARIS. Data in OPDIV
    systems is exportable to ARIS, (although for reasons as previously
    discussed, BMAR is not one of the exported items).

3.  Annually, in the last quarter of each fiscal year, the OPDIV will
    update their assessment information, review their BMAR figures,
    assess BMAR driving factors and associated risk, adjust their
    asset-specific strategies and prepare their budget submission so as
    to meet or exceed FCI objectives over time.

## **4.5 Operations and Maintenance Plan**

HHS intends to improve Operations & Maintenance (O&M) resource planning
by linking O&M requirements to the budget-decision making process. O&M
planning is a key sub-element of OPDIV Asset Business Plans (ABPs),
which feed budget submissions. Other sub-elements of ABPs include
Capital Improvement plans, Environmental plans, Safety plans, and
Cultural Resource plans. By closely monitoring Facility Condition Index,
with an eye on other indicators such as Operations Cost, Utilization and
Mission Dependency, HHS will develop pre-budget guidance each January to
better align OPDIV O&M investment plans and strategies with HHS
"portfolio" goals and objectives. Additionally, the HHS portfolio
management approach will drive O&M costs towards industry
standards/common benchmarks, which in turn will aid in applying
lessons-learned and best business practices across OPDIVs. In late
September 2005 OFMP added a Senior Staff Engineer to review facility
metrics, to analyze trends and anomalies and to translate such analysis
into OPDIV-specific pre-budget guidance.

### 4.5.1 Consideration of Socio-Economic Responsibilities - Environmental Management Plan

EO 13327 requires each agency to develop an asset management planning
process and associated plan, which encompasses many different program
areas. Environmental quality and compliance is one of those areas of
socio-economic consideration. The Department has found that the
Environmental Management System (EMS) model outlined in EO 13148:
Planning, Implementing, Monitoring/Measuring, Management Review and
Continual Improvement feeds into the overall business model required by
EO 13327, improvement of real property asset management. The EMS is a
business management practice, which allows an organization to
strategically address a particular set of issues. System implementation
reflects accepted quality management principles based on the "Plan, Do,
Check, Act," model, using a standard process to identify goals;
implement these goals; determine progress and make improvements to
ensure continual improvement.

The management system's elements include:

-   A Policy that is endorsed by top management and states the
    organization's commitments.

-   Planning activities by identifying issues and related legal and
    other requirements; and, developing objectives and targets to
    control and improve performance related to these issues.

-   Implementing activities and operations, including training and
    documentation, to achieve the objectives and maintain control over
    issues.

-   Monitoring and measuring the status of relevant parameters, status
    of objectives and targets and the stability of the system itself,
    and providing procedures for corrective action in cases where data
    indicate non-conformance.

-   Management review of information for action, including enhancing the
    system towards the goal of continual improvement.

The Department fully supports the implementation of EMSs at our
landholding OPDIVs (CDC, FDA, IHS and NIH) appropriate facilities and
has published several policy directives mandating EMS implementation. A
total of 18 appropriate facilities have been identified. EMSs are
currently being developed at several locations. EMS will be implemented
in varying stages by several facilities by December 31, 2005. Progress
regarding the degree to which OPDIVs have accomplished EMS
implementation will be reported to EPA in the required annual report in
the spring of 2006. Landholding OPDIVs are also incorporating their EMSs
into their real property management plan. The Department participates in
the interagency EO 13148 workgroup, which is developing EMS performance
metrics. Once finalized, these metrics will be applied to all
appropriate facilities EMSs. Performance against these metrics will be
included in the annual EO 13148 report to EPA. The Office of the Federal
Environmental Executive (OFEE) and EPA outline the implementation
metrics which agencies must meet annually. We respond to these metrics
via the annual EO 13148 report. From that report, EPA produces a
scorecard identifying how well both the Department and the agencies have
met the implementation metrics.

The Department's current and near term actions in supporting this plan
includes:

-   Complete mandated reports.

-   Conduct gap analysis to identify gaps and make recommendations for
    corrective action.

-   Recently filled a GS-028/819-14 position, so work can begin to
    correct actions identified in gap analysis.

-   Provide training or workshops to OPDIV environmental personnel
    regarding EMS, its purpose, elements and benefits.

-   Develop an EMS Audit Strategy and plans for auditing appropriate
    facilities. OPDIVs will review their EMSs at least once annually and
    will also perform audits.

## **4.6 Routine Maintenance and Minor Repair Needs**

The HHS operating budget request and OPDIV annual operating
appropriation consists in part of operating funds specifically allocated
for maintenance and associated minor repairs of existing facilities.
This process is monitored by the HHS Senior Real Property Officer using
FCI metrics. Routine maintenance is defined as recurring work to keep a
real property asset in a useable state or condition, and may include
replacement of constituent parts, materials or equipment, inspection,
adjustment, cleaning, resurfacing, etc. This may include salaries,
service or maintenance contracts, and equipment and stock items. Minor
repairs are defined as those repairs incidental to routine maintenance
and of lesser value than the maintenance work; for example replacing a
limited amount of sheathing as part of resurfacing a roof. Annual
operating appropriations include funds, which should be sufficient to
perform routine maintenance and minor repairs. Unless otherwise
identified in an appropriation, OPDIVs are to perform routine
maintenance and minor repair of existing facilities, including related
engineering and inspection services, with annual operating funds.

Routine maintenance and minor repair projects are not subject to the
\$3,000,000 threshold requiring ASAM approval under the Capital
Investment Review Board policy. Routine maintenance and minor repair
projects do not add value to the underlying real property asset. This
work does not require review or approval by the Department. The OPDIVs
are responsible for determining the requirements for routine maintenance
and minor repairs of existing facilities, identifying priorities as
needed, and requesting funding through the budget process, to satisfy
facility stewardship requirements (i.e. FCI) when a guideline is set by
the Department.

### 4.6.1 Additional Actions to Improve Routine Maintenance and Minor Repair

OS under the leadership of the HHS Senior Real Property Officer will
improve routine maintenance and minor repair by: convening a working
group of OPDIV representatives to discuss strengths, weaknesses,
threats, opportunities and objectives and develop a prioritized short
list of best practices to consider, and come to a consensus as to the
estimated savings that best practices may yield (*e.g.* 3%-5% of total
operating cost); develop notional implementation strategies and better
estimate potential costs and savings; assess need for contractor
support; OFMP will evaluate progress against strategy as part of
Facilities Scorecard review; and OFMP will assess lessons-learned
relative to best business practice strategies and issue pre-budget O&M
guidance annually.

## **4.7 Capital and Operating Resource Requirements**

HHS has multiple appropriations from which operating expenses are
funded. Expenses include all of the contract costs for leases and
operating expenses in the O&M Plan for facilities/assets such as
cleaning, maintenance, and utilities. It also includes additional
contractual obligations for purchase contracts and all overhead items
such as salaries, training, travel, IT, and other contracts necessary to
help HHS run its business. The head of each OPDIV is responsible for the
development of the Agency Annual Facilities Plan that identifies capital
and operating resource requirements. Each Plan is developed jointly by
the agency\'s program planning, budget, environmental, and facilities
staffs and should include all facilities projects that will be requested
in the forthcoming annual budget process. OPDIVs are encouraged to
submit Annual Facilities Plans that show all requirements, regardless of
anticipation of funding.

## **4.8 Operations Performance Measures and Continuous Monitoring**

HHS utilizes performance measures to track the effectiveness of its
operations phase of its asset management. The measures include;
Condition Index, Utilization Index, Operating Cost, and Mission
Dependency. These measures are consistent with the Council's First Tier
Measures for operations.

### **4.8.1 Federal Real Property Council Measures**

*Condition Index*

\"HHS uses the Facility Condition Index (as described in Section 4.4.1)
for owned assets.\" Condition surveys are performed on a recurring basis
to help quantify the maintenance and repair needs of the facility. These
needs are then compared to the current Replacement Value of the
facility. This process is fully integrated into the operations at NIH,
IHS and CDC for owned buildings. The condition survey and replacement
value of facilities is being integrated into the operations of FDA and
should be fully functioning when the three-year cycle is completed in
2008. HHS is working toward full integration of the condition index.

HHS is not responsible for the condition of any facilities that HHS
commercially leases directly. HHS is responsible for operations and
maintenance of the Humphrey Building, a GSA-owned space. HHS reports
annual operating costs to GSA.

GSA is responsible for determining and reporting other FRPC metrics. HHS
and its OPDIVs are working to develop a scale relative to condition
index scale so as to link condition index to the budget decision-making
process. The goal for the OPDIVs will be to achieve, over time, a
minimum condition index for their portfolio of assets. The value of
repair needs associated with the actual condition index will be compared
to the value of the repair needs associated with the target index.
Investment strategies will be developed to close the gap over time.
Mission criticality, utilization and operating cost are all used in the
development of the annual facilities program and are considered in the
prioritization of budget request. HHS budget guidance to the OPDIVs in
the spring of 2006 will include further guidance on the use of these
measures to strategically manage our assets.

*Facility Utilization Index*

HHS tracks utilization of its five major property types in conformance
with FRPC guidance. HHS has provided guidance to the OPDIVs for
reporting facility utilization. The information is reported and kept
current in the Automated Real Property Information System. HHS utilizes
a Facilities Utilization Performance Measure to determine the extent of
facilities utilization in five major property types occupied by HHS. The
performance measure applies to each HHS office, warehouse, laboratory,
hospital and residence (as defined by the Federal Real Property
Council). Applicability extends to all properties leased and/or owned
and operated by HHS, but not properties owned by the HHS and operated by
others, such as the IHS properties operated by tribes.

For office space, HHS employs its pre-existing office space utilization
rate and requires that OPDIVs prepare an annual census of employees for
calculating the measure. The pre-existing rate was determined in 2003
when HHS set a policy for Office and Related Space Utilization Rate, in
accordance with 41 CFR Part 102-79, titled "Assignment and Utilization
of Space", which required agencies to promote maximum utilization of
space, consistent with mission requirements, to maximize its value to
the government. HHS set a policy that the maximum space allowable for
planning and occupancy purposes was 215 usable square feet per person.

For warehouse space, HHS compares its warehouse use to the design
capacity (in usable square feet) of the facility to use as the basis of
its measurement. If there are assets for which design capacity is
unknown, the OPDIVs will determine design capacity through such means as
engaging an architectural firm to provide the data.

HHS determines its utilization of its hospitals by comparing Patient
Load data to the number of fully staffed beds at each hospital. "Fully
staffed beds" equals the number of staff required to care for each bed
annually.

OPDIVs will report on the utilization of labs as "utilized" if the space
is assigned and occupied with staff, equipment, instrumentation and
specimens.

Each OPDIV or other HHS component is responsible for the following to
assure appropriate implementation:

1.  Each OPDIV or HHS component will begin testing for full
    implementation by Q1 FY06. Each OPDIV or other HHS component will
    test 100% percent of its relevant portfolio using this measure by Q1
    FY06. Reporting will be part of the testing process for metric
    applicability purposes.

2.  Each OPDIV or HHS component will utilize an electronic asset
    inventory system. The OPDIV or HHS component is to ensure that the
    inventory system has data fields for the relevant property types and
    for the categories "Over Utilized, Utilized, Under Utilized and "Not
    Utilized," allowing for the input of one of the Facilities
    Utilization letter designations identified in the procedures below.
    The OPDIV or HHS component will ensure this system is coordinated
    with OFMP prior to implementation.

When full implementation begins, each OPDIV or HHS component will follow
the procedures below to determine the utilization of each property type
as Over Utilized, Utilized, Underutilized or Not Utilized, in accordance
with the table below.

  ------------ --------- ----------- ---------- ------------ --------------
  Rate         Office    Warehouse   Hospital   Laboratory   Housing

  Over         \>95%     \>85%       \>95%      \>85%        N/A
  Utilized                                                   

  Utilized     75-95%    50-85%      70-95%     60-85%       85-100%

  Under        \<75%     10-50%      25-70%     30-60%       \<85%
  Utilized                                                   

  Not Utilized N/A       \<10%       \<25%      \<30%        N/A
  ------------ --------- ----------- ---------- ------------ --------------

OFFICE

> One employee/ 215 usable square feet, following the existing HHS
> policy.

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  ![](media/image17.jpeg){width="6.496527777777778in" height="2.2375in"}

  *FDA WEAC Facility -- Winchester, Massachusetts*
  -----------------------------------------------------------------------

> Each OPDIV will base its measurement on an annual census taken as of
> May 15 of each year. The census will count each staff person who both
> holds an HHS (or OPDIV) ID and occupies HHS (OPDIV) facilities.
> "Staff" includes HHS (OPDIV) employees (FTEs), contractors, guest
> researchers, research fellows, tenants (such as day care centers and
> retail spaces) and volunteers. No distinction is made between
> part-time and full-time employees, each of whom is counted as a whole
> number. The census counts people in all facilities, leased or owned.

WAREHOUSE

> Each OPDIV or HHS component will compare its warehouse use to the
> design capacity (in usable square feet) of the facility to use as the
> basis of its measurement. If there are assets for which design
> capacity is unknown, the OPDIVs or HHS component will determine design
> capacity through such means as engaging an architectural firm to
> provide the data.

HOSPITAL

> The Indian Health Service will determine its utilization of its
> hospitals, including the inpatient and clinic components of the
> hospitals, by comparing Patient Load design capacity to the number of
> patient visits in a given year.

LABORATORIES

> OPDIVs will report on the utilization of labs as "utilized", if the
> space is assigned and occupied with staff, equipment, instrumentation,
> and specimens.

HOUSING

> The percent that individual units are occupied will be measured
> through a review of the annual reports on utilization prepared by
> property managers.

The initial categorization for each facility will be entered into the
OPDIV's or other HHS component's asset inventory system using the
following designations:

> O Over utilized
>
> U Utilized
>
> N Underutilized
>
> V Not Utilized

On an annual basis in the last quarter of each fiscal year, the OPDIV
will review the facility categorizations and update the asset inventory
system with any changes.

***Operating Costs***

In accordance with FRPC guidance, HHS developed and is implementing an
operating cost measure which captures annual operating cost (recurring
maintenance and repair, utilities, custodial and grounds) at the
constructed asset level. HHS has provided guidance to the OPDIVs for
reporting operating costs (Attachment 7). The information is reported
and kept current in the Automated Real Property Information System.

***Mission Dependency***

HHS requires that all OPDIVs and components provide an annual
categorization of all assets into FRPC standard categories of Mission
Critical, Mission Dependent and Not Mission Dependent and has provided
guidance for making this determination. The measure is recorded and kept
current in the Automated Real Property Information System. (See Section
4.4.1).

### 4.8.2 Agency Specific Measures

(See Section 4.4.2)

## **4.9 Operations Initiatives**

HHS is pursuing several initiatives to enhance the operation and
management of its real estate portfolio. The major steps involved in
creating the RAMP include:

1.  Compiling a inventory of accurate and complete data regarding the
    HHS portfolio to insure that the FRPC developed metrics are being
    applied against accurate data ,

2.  Assessing the space needs of HHS and its Operating Divisions (OPDIV)
    to better determine whether the agency assets are being optimally
    utilized, and

3.  Outlining a Tactical Real Property Plan (Attachment 8) for real
    estate activity for the next five-year period, defined as the period
    through December 2010, to provide better management and oversight of
    agency real property assets.

Related activities include the following:

1.  HHS developed performance measures to use in managing its portfolio.
    The measures include Mission Dependency, Utilization, Facility
    Conditions ~~(~~Facility Condition Index and Backlog of Maintenance
    Repair) and Operating Expenses. HHS also developed some measures
    pertaining to construction projects, including Change in Project
    Scope, Change in Project Cost, and Change in Project Schedule.

2.  HHS has implemented a software tool -- HarborFlex \-- for executive
    reporting purposes. The software will enable the HHS Office of
    Facilities Management and Planning (OFMP) to mine real estate data
    from the OPDIV systems for portfolio planning, measuring performance
    and budgeting purposes. In addition to the FRPC-required fields, HHS
    has added fields that it will use to manage the portfolio,
    including, among other fields, information to populate the Asset
    Management Building Block.

HHS has made significant progress in completing the key steps and
related activities for the RAMP. These include the following:

1.  A data inventory was compiled;

2.  Real estate market research was completed for various property types
    and for the major markets and sub-markets in which HHS is located in
    order to project leased space costs over the planning period and to
    analyze various housing scenarios;

3.  Portfolio data was segmented to analyze it geographically, by HHS
    component and by ownership type (HHS-owned, HHS-leased, GSA-owned,
    and GSA-leased);

4.  Scenarios were created and analyzed to evaluate housing options that
    included leased space versus construction of new owned space. HHS
    intends to use these scenarios in shaping its plan for the pending
    budget year cycle (FY08) and beyond;

5.  Scenarios were created and analyzed to determine the most effective
    way of housing those HHS components that need leased space,
    including scenarios that address co-location of some OPDIVs. HHS
    will use these scenarios in developing a plan and prospectuses for
    leased space, which will be done in tandem with the capital plan
    noted above; and

6.  A template for the tactical plan was prepared and will be fully
    populated as soon as HHS selects its preferred housing options from
    the scenarios analyzed. This may include some restructuring of the
    leased and owned portfolios to achieve cost savings. Selected
    strategies will be presented to the Board. The board will accept
    those strategies it wants to pursue in time for them to be reflected
    in the FY08 Budget call guidance.

    []{#__RefHeading___Toc125787677 .anchor}**Section 5 Disposal of
    Unneeded Real Property**

## **5.1 Tools to Support Decision-making**

### 5.1.1 Facilities Utilization Performance Measure

The primary tools relied upon by HHS in decision-making concerning asset
disposal issues is a "Retention/Disposal" Analysis. This analysis is
supplemented by the Facilities Utilization Performance Measures
contained in Section 4.8.1 of this RAMP. The "Retention/Disposal"
analysis considers such factors as:

-   Current and long term HHS mission needs;

-   Considerations and planning objections of the local community;

-   Stewardship issues such as historic preservation requirements;

-   Available alternative housing solutions; and

-   Costs associated with retaining and operating the existing facility
    versus acquiring a replacement facility and disposing of the asset.

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  ![](media/image18.jpeg){width="4.558333333333334in"
  height="1.7729166666666667in"}

  *FDA Warehouse, Davisville, Rhode Island*
  -----------------------------------------------------------------------

In addition to the above described tools and analysis, HHS evaluates the
environmental and safety impacts associated with asset disposition. The
closure requirements of the Comprehensive Environmental Response,
Compensation, and Liability Act (CERCLA) and the Resource Conservation
and Recovery Act (RCRA), are addressed. Environmental documentation that
is prepared, at a minimum, includes the following:

-   *Environmental Baseline Survey* (EBS) -- The EBS is an environmental
    "due diligence" that reviews the operational history of the real
    property to identify potential environmental issues including, but
    not limited to, hazardous substance activities, equipment containing
    polychlorinated biphenyls, asbestos containing materials,
    underground storage tank systems, wetlands, and floodplains.

-   *National Environmental Policy Act documentation* to assess
    potential environmental impacts of the action. In accordance with
    the National Environmental Policy Act, an Environmental Assessment
    or Environmental Impact Statement may be required.

### 5.1.2 Identifying Owned Assets for Disposition

HHS owned assets are initially identified for disposition through the
land-holding OPDIVs' facility master planning and budget processes. Each
OPDIV is required by the HHS policy (HHS Facility Program Manual) to
develop and maintain a facility master plan. These plans assure the
orderly development of HHS sites and properties. Each OPDIV uses the
retention/disposal analysis discussed above as part of the master
planning process. Part of every master plan is the identification of
both short-term (*i.e*. 5 years or less) and long-term (*i.e.* 20 years
or more) development needs. A key to having a good master plan is its
linkage to the strategic plan of the OPDIV and the Department. The new
Disposition Decision Tree (Attachment 9) recently approved by the
Federal Real Property Council is being incorporated into the
identification process to provide an initial candidate list for
disposition.

After the master plan analysis is complete, disposal identification
enters the HHS budget process. If a facility is being disposed through
the GSA, the costs of that process are included in the OPDIV budget
request. Similarly, if the facility is proposed for demolition and
replacement with a new structure, the cost of that capital investment is
included in the OPDIV budget request. When the funds needed for the
disposition or demolition are approved, the identification cycle is
complete.

## **5.2 The Disposal Process**

The final stage of the capital life-cycle is disposal. HHS does not have
direct authority to dispose of its excess real property assets.
Therefore, HHS complies with the applicable provisions of the Federal
Property and Administrative Services Act of 1949, as amended, 40 U.S.C.
§§471 *et seq*. This Act established the General Services Administration
as the agency responsible for the disposal of federal assets. GSA has
promulgated regulations, specifically the Federal Property Management
Regulations (FPMR), 41 FPMR Chapter 102-75, that detail the procedures
and forms required by a federal agency requesting disposition of federal
real estate.

Prior to disposition of HHS real property, the following criteria must
be met:

-   Real Property must be in excess to the needs of the agency;

-   "All requirements of the GSA disposal regulations are then followed.
    This includes reporting to GSA on environmental, historic and other
    factors known about the land."

It is the responsibility of the landholding OPDIVs to apply this process
to properties identified for disposal. Candidate properties are then
cleared through OFMP to assure that there is no Departmental need. If
there is none, OFMP prepares a "Report of Excess" (ROE) and submits the
ROE to GSA's Office of Real Property Disposal for further processing.
The ROE contains salient "due diligence" information such as:

1.  A description of the property;

2.  The date title to the property vested in the United States;

> 3\. All exceptions, reservations, conditions and restrictions relating
> to the title acquired by the United States;
>
> 4\. Detailed information concerning any actions or circumstances since
> acquisition that may have affected the right, title and interest of
> the United States to the property, together with copies of opinions or
> comments that may be contained in the file concerning the described
> actions or circumstances. If no such action or circumstance occurred,
> then a statement to that effect should be included in the report under
> this element;
>
> 5\. The status of the legislative jurisdiction of the real property;
>
> 6\. Information concerning any known flood hazards or flooding of the
> property and whether located in a flood plain or wetlands, as well as
> a listing or citation to the uses that are restricted under identified
> federal, state or local laws and regulations, as a consequence;
>
> 7\. Identification of any fixtures or related personal property that
> have possible historical significance or artistic value;
>
> 8\. The historical significance of the property, if any, and whether
> the property has been listed or is eligible for listing in the
> National Register of Historic Places, or is in proximity to such a
> historic property. Whether the public, or interested parties, are
> making any effort to have the property listed should also be included
> in the report;
>
> 9\. The identification of the type, location and condition of any
> asbestos known to be incorporated into the buildings, and/or
> structures on the property. Available estimates of the cost and time
> to remove the asbestos contamination should also be included in the
> report;
>
> 10\. With respect to any hazardous substance activity on the property:

i.  A statement indicating whether any hazardous substance activity (as
    defined by 40 CFR §373), took place on the property;

ii. If such activity took place, include information on the type and
    quantity of such hazardous substance, and the time when such
    storage, release, or disposal took place. The report should also
    note if all remedial action necessary to protect human health and
    the environment has been taken before the property was declared
    excess. If no remedial action has been taken, or completed, then
    state when the action will take place;

iii. If no hazardous substance activity has taken place on the property
     (as defined in 40 CFR §373), then the report should include the
     following statement:

> "The \[reporting agency\] has determined, in accordance with
> regulations issued by the Environmental Protection Agency at 40 CFR
> Part 373, that there is no evidence to indicate that hazardous
> substance activity took place on the property during the time the
> property was owned by the United States."

In addition, all title evidence documents, any appraisal reports and a
certification that the property does not contain any PCB transformers or
other equipment regulated by the Environmental Protection Agency under
40 CFR Part 761 is included.

Thereafter, disposal of HHS excess property by GSA follows a four-step
process:

-   Screening of federal agencies for possible continued federal need by
    another agency;

-   Screening for specific Public Benefit Conveyance opportunities for
    the property's reuse (*i.e.,* Homeless, Education, Correctional
    facilities, self-help housing, public health, or fire and/or police
    training);

-   Negotiating with the local community based on highest and best
    future reuse of the real property in question; or

-   Taking the real property to the market to sell by sealed bid, public
    outcry auction, or Internet sale.

Section 203(k) of the Federal Property and Administrative Services Act
of 1949 (FPASA), as amended, authorizes the Secretary of the Department
of Health and Human Services (HHS) to convey surplus federal real
properties to eligible applicants for approvable public health purposes
at public benefit discount.

*Title V of the Stewart B. McKinney Homeless Assistance Act*

Title V of the Stewart B. McKinney Homeless Assistance Act directs the
Secretary to include as a permissible public health use, within the
meaning of section 203(k) of FPASA, the transfer of surplus federal real
property for facilities to assist the homeless. In accordance with Title
V of the McKinney Act, organizations that provide services to the
homeless receive priority consideration in the use of federal surplus
real property.

Eligible organizations include states, and their political subdivisions
and instrumentalities, tax supported institutions, and nonprofit
organizations. The Surplus Property Program is administered by this
Department\'s Program Support Center (PSC). Entities interested in
acquiring federal surplus property for public health uses obtain an
application instruction packet from the PSC. The PSC develops an annual
report to Congress on all federal property conveyed for public health
and homeless reasons.

## **5.3 Disposal Performance Measures and Continuous Monitoring**

### 5.3.1 Federal Real Property Council Disposal Measures

***Disposal Index***

As the Council, in coordination with OMB, further defines its version of
the disposal index, HHS will work to ensure consistency with the
Council's standards.

### 5.3.2 Agency Specific Measures

***Disposal of Leases***

As noted earlier, HHS uses both leases managed by GSA and leases managed
directly by HHS. In the past, most OPDIVs began discussing plans for
existing leases approximately 24 months in advance of the lease
expiration, based on a review of the user's business plans and future
space needs. There are some cases where the long term housing plans call
for HHS to relinquish leases back to GSA or a third party landlord, such
as in the case of the FDA groups moving from leased space to the White
Oak campus. In such a scenario, the HHS group works closely with GSA to
minimize leasing and moving costs by tracking the lease terms against
the target move-in date for the new space.

HHS, with the development of its RAMP and related tactical plan, is
improving the process for assessing the potential disposal of leases.
The RAMP has a minimum time horizon of five years, but HHS has analyzed
the leased portfolio through 2014, given the impact of the new campus at
White Oak on long term leasing plans. The new planning process draws on
real estate market projections and the development of housing scenarios
to determine the most effective housing solutions for leased and owned
assets. Through such analyses, HHS can determine if there are
opportunities for OPDIVs to backfill leased space that may be vacated by
other OPDIVs and whether there are opportunities for OPDIVs to
co-locate.

***Disposal of Owned Assets***

HHS policy regarding retention of owned assets lays out conditions where
real property may be retained and directs OPDIVs and components to
dispose of properties that do not meet those conditions. HHS policy also
clearly enumerates steps that are taken to dispose of properties that
are excess or otherwise do not meet the conditions for retention. The
policy is described in Section 5.4, below.

IHS has received properties from the Bureau of Indian Affairs
(Department of the Interior) that were directly related to the delivery
of health services. Through a Memorandum of Understanding and subsequent
Delegation of Authority, Indian Health Service may re-transfer to the
Department of the Interior any properties that are excess, where the
Bureau of Indian Affairs has expressed an administrative need.
Properties transferred must meet certain conditions, are transferred
without compensation and are held in trust in favor of the Indian tribes
within whose boundaries such excess property is located. IHS transfer of
properties is reviewed for conformance with provisions of laws governing
such transfers.

## **5.4 Disposal Initiatives**

HHS is striving to expedite the disposal of unneeded and non-performing
assets. There are various methods and actions for disposal of
non-performing, excess, outdated or obsolete properties within the
portfolio.

NIH and CDC operate on campuses that contain little or no land available
for expansion or construction of new facilities to meet demand. NIH and
CDC evaluate existing buildings with life cycle cost analyses, which
compare major renovation and security upgrades to replacement costs.
Where it is economically advantageous, obsolete assets are demolished
and replaced with new state of the art buildings capable of functioning
at the highest level. Where the life cycle cost analyses reveals that
renovation yields the best economic returns to the agency, the assets
are renovated to provide further service.

The HHS Facility Program Manual provides policies for disposition of
excess properties. Property or interests therein are usually disposed of
by or through the General Services Administration (GSA) after being
declared to be excess to the needs of HHS (having custody and
accountability for the property). OPDIVs, after appropriate internal
clearances/approvals are received, shall report excess real property to
HHS for screening as to other possible Departmental needs. In addition
to GSA's assistance, excess assets controlled by Indian Health Service
are transferred to the Department of the Interior for direct tribal use.

HHS is developing policy initiatives to further the goal of disposition
of excess assets. HHS intends to use the disposition decision tree being
proposed by the FRPC Performance Measures Committee as one initial
identifier of facility candidates for disposition. Because of
significant budget growth in landholding OPDIVs over the past several
years associated with new missions in biodefense, concerns over drug
safety, discovering new treatments for disease, and treating a growing
Native American and Alaska Native population; HHS over the past few
years has outgrown its space in many areas. Further, HHS disposed of its
largest underutilized facility, St Elizabeths Hospital West Campus, to
GSA in early 2005. In order to assess consolidation, integration and
disposition opportunities, HHS developed a draft "Tactical Housing Plan"
in 2005 to provide housing scenarios. The tactical plan will be annually
updated as part of the HHS budget process to annually identify any
disposition opportunities.

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# Attachment 1 - Federal Real Property Council Mandatory Inventory Data Elements and Performance Measure Definitions

***NOTE: Data Elements that are also Performance Measures will indicate
the Performance Measurement number parenthetically.***

1.  Real Property Type

Definition: Indicates one of the following types of real property:

1.  Land;

2.  Building; or

3.  Structure.

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2.  Real Property Use

Definition: Indicates one of the following real property uses:

> A. Land Predominant Use:

1.  [Agriculture]{.underline}: Land under cultivation for food or fiber
    production.

2.  [Grazing]{.underline}: Conservation lands primarily administered to
    preserve, protect, manage, or develop grass and other forage
    resources suitable for livestock. Exclude Wilderness Areas from this
    classification.

3.  [Forest and Wildlife:]{.underline} Conservation lands primarily
    administered to preserve, protect, manage, or develop timber,
    wildlife, watershed, and recreational resources. Exclude Wilderness
    Areas from this classification.

4.  [Parks and Historic Sites:]{.underline} Land administered for
    cemeteries, memorials, monuments, parks (national, historical,
    military, memorial, and national capital), sites (battlefield and
    historic), parkways, and recreation areas. Exclude Wilderness Areas
    from this classification.

5.  [Wilderness Areas:]{.underline} Land designated by Congress as a
    part of the National Wilderness Preservation System.

6.  [Office Building Locations]{.underline}: Land containing office
    buildings or future planned office buildings, to include military
    headquarters buildings.

7.  [Training Land]{.underline}: Land containing training buildings, or
    land that is used to conduct outdoor training, such as firefighting,
    weapons training, or other military training activities.

8.  [Miscellaneous Military Land (not covered elsewhere)]{.underline}:
    Department of Defense (DoD) and U.S. Coast Guard (USCG) controlled
    land used for military functions that cannot be classified
    elsewhere.

9.  [Airfields]{.underline}: Land used for military air bases or air
    stations, and military or civilian landing fields.

10. [Harbor and Port]{.underline}: Land used for harbor and port
    facilities.

11. [Post Offices]{.underline}: Land used in conjunction with a Post
    Office and used predominately as a general service and access area.

12. [Power Development and Distribution]{.underline}: Land used for
    power development and distribution projects.

13. [Reclamation and Irrigation]{.underline}: Land used for reclamation
    and irrigation projects.

14. [Flood Control and Navigation:]{.underline} Land used for flood
    control and navigation projects.

15. [Vacant]{.underline}: Land not being used.

16. [Institutional]{.underline}: Land used for institutional purposes
    such as hospitals, prisons, schools, libraries, chapels, and
    museums.

17. [Housing]{.underline}: Land used primarily for public housing
    projects, military personnel quarters, and dwellings for other
    federal personnel.

18. [Storage]{.underline}: Land used primarily for supply depots and
    other storage.

19. [Industrial]{.underline}: Land used for physical plants engaged in
    producing and manufacturing ammunition, aircraft, ships, vehicles,
    electronic equipment, chemicals, aluminum, magnesium, etc.

20. [Research and Development]{.underline}: Land used directly in basic
    or applied research such as in science, medicine, and engineering.

21. [Communications Systems]{.underline}: Land used for telephone and
    telegraph lines, data transmission lines, satellite communications,
    and other communications facilities or towers.

22. [Navigation and Traffic Aids]{.underline}: Land used for aircraft
    and ship navigation aids, such as beacon lights, antenna systems,
    ground control approach systems, and obstruction lighting.

23. [Space Exploration]{.underline}: Land used in direct support of
    space exploration and utilization, including launch and test sites,
    emergency landing sites (not airfield), and astronaut training.

24. [Other Land]{.underline}: Land that cannot be classified elsewhere.

> B. Buildings Predominant Use

1.  [Office]{.underline}: Buildings primarily used for office space or
    military headquarters.

2.  [Post Office]{.underline}: Buildings or portions of buildings used
    as a Post Office.

3.  [Hospital]{.underline}: Buildings used primarily for furnishing
    in-patient diagnosis and treatment under physician supervision and
    having 24-hour-a-day registered graduate nursing services. This
    category also includes medical laboratories used for routine
    testing. This category excludes buildings used directly in basic or
    applied medical research.

4.  [Prison (Government-owned only)]{.underline}: Buildings under the
    jurisdiction of the Department of Justice or Department of Defense,
    used for the confinement of federal or military prisoners.

5.  [School]{.underline}: Buildings used primarily for formally
    organized instruction, such as schools for dependent children of
    federal employees, Indian schools, and military training buildings
    including specialized training facilities.

6.  [Other Institutional Uses]{.underline}: Buildings used for
    institutional purposes other than schools, hospitals, and prisons,
    such as libraries, chapels, museums, and out-patient clinics. This
    category also includes food preparation and dining facilities,
    buildings housing entertainment and recreational activities, and
    visitor's centers.

7.  [Family Housing]{.underline}: Buildings primarily used as dwellings
    for families/dependents. Includes apartment houses, single houses,
    row houses, public housing, military personnel housing, federal
    employee housing, and housing for institutional personnel.

8.  [Dormitories/Barracks]{.underline}: Buildings primarily used as
    dwellings for housing individuals (without families/dependents).

9.  [Warehouses]{.underline}: Buildings used for storage, such as
    ammunition storage, covered sheds, and buildings primarily used for
    storage of vehicles or materials. Also included are underground or
    earth covered ammunition storage bunkers and magazines. This
    category excludes water reservoirs and POL storage tanks which are
    storage structures.

10. [Industrial]{.underline}: Buildings specifically designed and
    primarily used for production or manufacturing, such as the
    production or manufacture of ammunition, aircraft, ships, vehicles,
    electronic equipment, fish production, chemicals, aluminum, and
    magnesium. Included are buildings that house utility plants or
    utility system components such as pump stations or valves.

11. [Service]{.underline}: Buildings used for service activities, such
    as maintenance and repair shops, dry cleaning plants, post exchange
    stores, airport hangars, and buildings primarily used for vehicle
    maintenance and repair.

12. [Laboratories]{.underline}: Buildings used directly in basic or
    applied research in the sciences (including medicine) and in
    engineering, such as medical laboratories; meteorological research
    laboratories; and buildings used in designing, developing, and
    testing of prototypes and processes for chemistry and physics. This
    category excludes medical or industrial laboratories used for
    routine testing.

13. [Communications Systems]{.underline}: Buildings used for telephone
    and telegraph systems, data transmission, satellite communications,
    and/or associated with radio towers or other communications
    facilities.

14. [Navigation and Traffic Aids]{.underline}: Includes buildings that
    house aircraft or ship navigation and traffic aids, such as beacon
    lights, antenna systems, ground control approach systems, and
    obstruction lighting.

15. [All Other]{.underline}: Buildings that cannot be classified
    elsewhere.

> C. Structure Predominant Use

1.  [Airfield Pavements]{.underline}: Runways, helicopter landing pads,
    taxiways, and aprons.

2.  [Harbors and Ports]{.underline}: Docks, piers, wharves, jetties and
    breakwaters, and other harbor, port, or coastal facilities.

3.  [Power Development and Distribution]{.underline}: Hydroelectric and
    other power development projects that produce power for resale
    (generally consisting of dams and powerhouses). Include transmission
    lines that are an integral part of federal power development, even
    if the power is produced by another federal agency.

4.  [Reclamation and Irrigation]{.underline}: Canals, laterals, pumping
    stations, storage, and diversion dams.

5.  [Flood Control and Navigation]{.underline}: River improvements,
    revetments, dikes, dams, and docks.

6.  [Storage (other than buildings)]{.underline}: Storage tanks, silos,
    igloos, underground vaults, and open storage improved areas. This
    category includes water reservoirs and POL storage tanks.

7.  [Industrial (other than buildings)]{.underline}: Structures and
    facilities (other than buildings) used for production or
    manufacturing, such as sliding shipways, retaining basins, and
    pipelines.

8.  [Service (other than buildings)]{.underline}: Structures used for
    maintenance and repair, such as underground fueling systems, vehicle
    washing and greasing facilities, aircraft bore sight ranges, guided
    missile maintenance facilities, and ship repair structures.

9.  [Research and Development (other than Laboratories)]{.underline}:
    Structures and facilities used directly in basic or applied research
    in science, medicine, and engineering, such as facilities used in
    the design, development, and testing of prototypes and processes and
    space and aeronautics research and development. Excludes facilities
    used for routine testing.

10. [Recreational (other than buildings)]{.underline}: Outdoor
    recreational structures such as athletic fields and courts,
    stadiums, golf courses, and ski slopes.

11. [Utility Systems:]{.underline} Heating, sewage, water, and
    electrical systems when they serve several buildings or other
    structures of an installation. When these systems serve a single
    building that is reported separately, include the utility systems'
    cost in the cost of the building. Includes heating plants and
    related steam and gas lines; sewage disposal plants; storm and
    sanitary sewer lines; water treatment plants, wells, pump houses,
    reservoirs, and pipelines. Also includes electrical substations,
    standby or auxiliary power plants, lighting structures, and
    conduits.

12. [Space Exploration Structures]{.underline}: Structures used in
    direct support of space exploration and testing, including test
    structures, and specialized associated structures that cannot be
    classified elsewhere.

13. [Communications Systems]{.underline}: Telephone and telegraph lines,
    data cables, radio towers, and other communications-related
    structures.

14. [Navigation and Traffic Aids (other than buildings)]{.underline}:
    Structures for aircraft and ship navigation aids, such as beacon
    lights, antenna systems, ground control approach systems, and
    obstruction lighting. Includes demarcation lighting along runways,
    taxiways, and other airfield pavements.

15. [Roads and Bridges]{.underline}: Federally-owned highways, roads,
    related culverts, and connecting bridges. Includes surfaced and
    unsurfaced roads within national parks and forests, military
    installations, and other federal installations.

16. [Railroads]{.underline}: Tracks, bridges, tunnels, and fuel or water
    stations servicing railroads.

17. [Monuments and Memorials]{.underline}: Federal monuments, memorials,
    and statues.

18. [Weapons Ranges]{.underline}: Ranges where weapons are fired, and
    areas where explosives are detonated.

19. [Miscellaneous Military Facilities]{.underline}: Structures and
    facilities of DoD and USCG used for military functions that are not
    included in any other classification.

20. [Parking Structure]{.underline}: Independent structures for
    non-residential parking of more than two vehicles.

21. [All Other:]{.underline} Sidewalks, parking areas, fences, and
    walking trails that cannot be readily classified under the above
    categories. Includes improvements to public domain lands, such as
    drainage, grading, and landscaping.

```{=html}
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```
3.  Legal Interest

Definition:

> 1\. Owned: The Federal Government has fee simple interest for the real
> property.
>
> 2\. Leased: The rights to use the real property have been assigned to
> the Federal Government by a private entity or a non-federal government
> entity for a defined period of time in return for rental payments.
>
> 3\. Otherwise Managed:
>
> A. State Government-Owned -- A U.S. state government holds title to
> the real property but rights for use have been granted to a Federal
> Government entity in other than a leasehold arrangement.
>
> B. Foreign Government-Owned -- A foreign government holds title to the
> real property but rights for use have been granted to a Federal
> Government entity in other than a leasehold arrangement.

4\. Status

Definition: Buildings, structures and land parcels will have one of the
following attributes:

-   Active: Currently assigned a mission by the reporting agency.

-   Inactive: Not currently being used but may have a future need.
    Includes real property in a caretaker status (closed pending
    disposal, for example facilities that are pending a BRAC action) and
    closed installations with no assigned current federal mission or
    function.

-   Excess: Formally identified as having no further program use of the
    property by the

> landholding agency.

-   Outgranted/Outleased: Use has been granted to another entity.

5\. Historical Status

Definition: Buildings and structures that have one of the following
attributes:

1.  National Historic Landmark (NHL);

2.  National Register Listed (NRL);

3.  National Register Eligible (NRE);

4.  Non-contributing element of NHL/NRL district; or

5.  Non Applicable (N/A).

6\. Reporting Agency

Definition: Agency reporting the property to the Government Services
Administration (GSA). (Use the Agency Bureau Code list maintained by
GSA).

7\. Using Organization

Definition: Agency occupying the property. (Use the Agency Bureau Code
list maintained by GSA.)

8\. Size

Definition: The size of the item of real property.

-   For [land]{.underline}, the unit of measure is *acreage* and is
    designated as either *rural* or *urban*.

-   For a [building]{.underline}, the unit of measure is *square feet*
    and designated as *gross square feet*.

-   For [structures]{.underline}, the units of measure are as follows:

  --------- -------------------------------------------- ---------------------
  **No.**   **Structure Name**                           **Unit of Measure**

  1         Administrative Structure (other than         Each
            buildings)                                   

  2         Aircraft Pavement                            Square Yards

  3         All Others                                   Each

  4         Communication Lines                          Miles

  5         Distribution Lines                           Linear Feet

  6         Fences and Walls                             Linear Feet

  7         Fish and Wildlife Structures                 Each

  8         Open Storage                                 Square Yards

  9         Outdoor Recreational Facilities              Each

  10        Piers, Wharfs, and Bridges                   Square Yards

  11        POL Pipelines                                Miles

  12        PowerStation                                 Each

  13        Railroad Lines                               Miles

  14        Roads                                        Lane Miles

  15        Sidewalks and Parking Lots                   Square Yards

  16        Storm Drainage                               Linear Feet

  17        Training Ranges                              Each

  18        Treatment Plants -- Water, Sewer, Industrial Each

  19        Water Storage                                Each

  20        Waterworks -- Dams, Locks, Canals, Seawalls, Each
            etc.                                         
  --------- -------------------------------------------- ---------------------

9\. Utilization (Performance Measure #1)

Definition: The state of having been made use of, i.e., the rate of
utilization. Utilization will be captured as a percent utilization on a
scale of 0% to 100%. The following categories and percent utilization
will be used to determine the rate of utilization.

  ---------------- --------------- --------------- -------------- ----------------- ------------
  **Rate**         **Categories                                                     
                   and Percent                                                      
                   Utilization**                                                    

                   ***1.           ***2.           ***3.          ***4.             ***5.
                   Offices***      Warehouses***   Hospitals***   Laboratories***   Housing***

  ***Over-         \>95%           \>85%           \>95%          \>85%             N/A
  Utilized***                                                                       

  ***Utilized***   75-95%          50-85%          70-95%         60-85%            85-100%

  ***Under-        \<75%           10-50%          25-70%         30-60%            \<85%
  Utilized***                                                                       

  ***Not           N/A             \<10%           \<25%          \<30%             N/A
  Utilized***                                                                       
  ---------------- --------------- --------------- -------------- ----------------- ------------

1.  *Offices* -- ratio of occupancy to current design capacity.

2.  *Warehouses* -- ratio of gross square feet occupied to current
    design capacity.

3.  *Hospitals* -- ratio of occupancy to current design capacity.

4.  *Laboratories* -- ratio of active units to current design capacity

5.  *Housing* -- housing will be measured as a percent of individual
    units that are occupied. The housing utilization rate does not need
    to be reported at the individual housing unit level; however, the
    manner in which it is measured and reported by the agency should be
    determined in consultation with OMB.

Initially, Utilization will need to be reported only for the five real
property categories listed above. Agencies should report the utilization
category (over-utilized, utilized, under-utilized, or not utilized) to
the government-wide database. Agencies should maintain the percent data
for each asset for future reference.

Agencies will have flexibility in judgment for determining current
design capacity. Current design capacity is defined as the maximum
capacity of which an asset, facility or system can operate, regardless
of statutory, regulatory, contractual or other conditions or
restrictions.

Agencies may use their best judgment for determining utilization of
laboratories when the data is not available to calculate utilization in
accordance with the definition stated above.

10\. Value

Definition: The functional/plant replacement value; the cost of
replacing the existing constructed asset at today's standards.

Formula: Value = Unit x Unit Cost x Overhead Factor

The result is adjusted by area cost and inflation, as appropriate. Only
buildings and structures will be required to have a functional/plant
replacement value reported in the inventory.

11\. Condition Index (Performance Measure #2)

Definition: The Condition Index (CI) is a general measure of constructed
asset condition at a specific point in time.

CI is calculated as the ratio of repair needs to plant replacement value
(PRV) (also known as functional replacement value). The CI will be
calculated annually, will be reported on an Agency or Department-wide
basis, will be reported as a "percent condition" on a scale of 0% to
100%, and will be calculated as **(1 - \$repair needs/\$PRV) x 100**.
The higher the CI the better the condition the constructed asset is in.

"Repair needs" is the amount necessary to ensure that a constructed
asset is restored to a condition substantially equivalent to the
originally intended and designed capacity, efficiency or capability.
Agencies/Departments will initially determine repair needs based on
existing processes, with a future goal to further refine and standardize
the definition.

"Plant replacement value" (or functional replacement value) is the cost
of replacing an existing asset at today's standards.

Target CI levels will initially be set by the agencies/departments in
consultation with OMB.

12\. Mission Dependency (Performance Measure #3)

Definition: The value an asset brings to the performance of the mission
as determined by the governing agency in one of the following
categories:

1.  [Mission Critical]{.underline} -- without constructed asset or
    parcel of land, mission is compromised;

2.  [Mission Dependent, Not Critical]{.underline} -- does not fit into
    *Mission Critical* or *Not Mission Dependent* categories; or

3.  [Not Mission Dependent]{.underline} -- mission unaffected.

13\. Annual Operating and Maintenance Costs (Performance Measure #4)

Actual costs will be reported annually.

Definition: Annual operating and maintenance costs include:

1.  Recurring maintenance and repair costs;

2.  Utilities (includes plant operation and purchase of energy);

3.  Cleaning and/or janitorial costs (includes pest control, refuse
    collection and disposal to include recycling operations); and

4.  Roads/grounds expenses (includes grounds maintenance, landscaping
    and snow and ice removal from roads, piers and airfields).

14\. Main Location

Either of the following will be reported for the constructed asset or
parcel of land:

1.  Street address; or

2.  Latitude and longitude (if no security concerns).

15\. Real Property Unique Identifier

Definition: A code that is unique to an item of real property that will
allow for linkages to other information systems.

The Real Property Unique Identifier is assigned by the Reporting Agency.

16\. City

17\. State

18\. Country

19\. County

20\. Congressional District

21\. ZIP Code

22\. Installation and Sub-Installation Identifier

Use existing structure identified in the *GSA Customer Guide to
Reporting Real Property Inventory Information*.

Definitions:

> ***Headquarters Installations*** -- Land, buildings, other structures,
> and facilities, or any combination of these. Examples of installations
> are a national forest, national park, hydroelectric project, office
> building, warehouse building, border station, base, post, camp, or an
> unimproved site.
>
> ***Sub-Installation*** -- Part of an installation identified by a
> different geographic location code than that of the headquarters
> installation. An installation must be separated into sub-installations
> (and reported separately) when the installation is located in more
> than one state or county. However, an agency may elect to separate an
> installation into sub-installations even if the installation is not
> located in more than one state or county.

23\. Restrictions

Definition: One or more of the following values will be reported for
each building, structure and parcel of land:

1.  Environmental Restrictions (cleanup-based restrictions, etc.);

2.  Natural Resource Restrictions (endangered species, sensitive
    habitats, floodplains, etc.);

3.  Cultural Resource Restrictions (archeological, historic, Native
    American resources, etc.);

4.  Developmental (improvements) Restrictions;

5.  Reversionary Clauses from Deed;

6.  Zoning Restrictions;

7.  Easements (including access for maintenance rights, etc.);

8.  Rights-of-Way;

9.  Mineral Interests;

10. Water Rights;

11. Air Rights;

12. Other; or

13. Non Applicable

# Attachment 2 - HHS Organizational Chart and Regional Map

![](media/image19.jpeg){width="7.360416666666667in"
height="6.0465277777777775in"}

**HHS Region Map**

![](media/image20.png){width="6.665972222222222in"
height="5.000694444444444in"}

# 

# Attachment 3 - OPDIV Organization Charts and Functional Statements

![](media/image21.wmf){width="9.0in" height="6.4in"}

**CDC Buildings and Facilities Office (BFO)**

\(1\) Operates, maintains, repairs, and modifies CDC\'s Atlanta area
plant facilities and conducts a maintenance and repair program for
CDC\'s program support equipment;

\(2\) carries out facilities planning functions for CDC, including new
or expanded facilities, and a major repair and improvement program;

\(3\) develops services for new, improved, and modified equipment to
meet program needs; and

\(4\) conducts CDC's real property and space management activities,
including the acquisition of leased space, the purchase and disposal of
real property, and provides technical assistance in space planning to
meet programmatic needs.

\(5\) Plans, directs, and coordinates the functions and activities of
the Buildings and Facilities Office (BFO);

\(6\) provides management and administrative direction for budget
planning and execution, property management, and personnel management
within BFO;

\(7\) provides leadership and strategic support to senior managers in
the determination of CDC's long term facilities needs;

\(8\) coordinates the operations of BFO staff involved in the planning,
evaluation, design, construction, and management of facilities and
acquisition of property;

\(9\) provides centralized VE services, policy development and
coordination, and global acquisition planning for BFO;

\(10\) develops and maintains IFMS system to process data for management
and control systems and develop reports and analyses; and

\(11\) assists and advises senior CDC officials in the development,
coordination, direction, and assessment of facilities and real property
activities throughout CDC's facilities and operations, and assures
consideration of facilities management implications in program
decisions.

![](media/image22.wmf){width="9.0in" height="4.929861111111111in"}

**FOOD AND DRUG ADMINISTRATION**

ORGANIZATION - OFFICE OF THE COMMISSIONER

OFFICE OF MANAGEMENT

OFFICE OF SHARED SERVICES

OFFICE OF REAL PROPERTY SERVICES

1\. OFFICE OF REAL PROPERTY SERVICES

> a\. Provides leadership and guidance to Agency components for all
> aspects of real property management functions.
>
> b\. Directs the management of programs and systems leading to the
> acquisition, alteration, maintenance, and utilization of leased and
> owned facilities nationwide, except for the acquisition of buildings
> for the White Oak Headquarters Consolidation.
>
> c\. Directs building operations functions for all FDA facilities
> nationwide.
>
> d\. Manages the program and provides direct interface with General
> Services Administration (GSA) for lease acquisition and lease
> management for all Agency facilities nationwide.
>
> e\. Serves as liaison with the Department of Health and Human Services
> (DHHS) and GSA for general facilities management issues and
> specifically for the efficient management and operation of facilities
> occupied by FDA programs nationwide
>
> f\. Directs and manages over a \$100 million dollar appropriation for
> the acquisition, operation, construction, maintenance for the
> Agency\'s nationwide real property portfolio.
>
> g\. Provides leadership and direction to assure the efficient and
> effective utilization of FDA\'s resources dedicated to engineering
> design, facility improvements, and new construction of FDA facilities
> nationwide.
>
> h\. Establishes management structure and dialog with GSA and
> architectural engineering design and construction contractors to
> ensure FDA program needs and concerns are fully addressed.
>
> i\. Ensures meaningful and continuous communication with community
> leaders and associations, State and local governments, and business
> leaders in areas where FDA proposes new facilities.
>
> j\. Develops and implements program plans, policies and procedures
> designed to create and maintain a safe and healthful environment for
> FDA employees, visitors, and guest workers, and to protect the
> environment.
>
> k\. Develops Agency plans, policy and procedures consistent with new
> environmental health and safety regulatory requirements and Agency
> needs.
>
> l\. Provides fire protection, safety engineering, and environmental
> health consultation to the Agency\'s program managers and engineering
> offices.
>
> m\. Leads the Agency\'s decommissioning efforts to close FDA
> laboratories and offices from an environmental, safety and health
> perspective.
>
> n\. Consults with program officials on safety matters pertaining to
> changing and emerging research programs.
>
> o\. Recommends special technical studies to increase the knowledge of
> the relationship between occupational safety and environmental health
> and the laboratory programs of FDA.
>
> p\. Provides support to the FDA Safety Advisory Board and conducts the
> FDA Safety and Health Council meetings.
>
> q\. Develops and implements a safety management quality assurance
> program for the Agency\'s multiple work sites nationwide. Develops and
> implements a similar headquarters program consistent with the FDA
> Safety Advisory Board recommendations and approval.

2\. DIVISION OF PORTFOLIO MANAGEMENT

> a\. Plans and develops the Agency Annual Facilities Plan that includes
> forecasts for long and short term and immediate space needs and annual
> facilities budgets for rent, operations and maintenance and building
> and facilities.
>
> b\. Develops multiple strategies for addressing FDA\'s long and short
> -range facility plans.
>
> c\. Develops Agency standards and enforcement of occupied and vacant
> space utilization. Prepares reports and space management analysis of
> the Agency\'s real property holdings. Analyzes Agency housing plans
> and performs real property occupied and vacant space customer
> analysis.
>
> d\. Provides cost analysis support to agency components concerned with
> leasing, construction, and finance costs.
>
> e\. Manages the policy, acquisition, management and administration of
> the Agency's leased real property portfolio.
>
> f\. Provides guidance and assistance to the Agency operating
> activities on a variety of nationwide real estate management issues.
>
> g\. Serves as liaison with DHHS and GSA for all lease acquisition and
> lease management of FDA nationwide facilities.
>
> h\. Conducts Agency facility studies and develops specific long-range
> facility plans for both Headquarters and Field operations.
>
> i\. Directs, or participates in, the preparation of the Program of
> Requirements for new construction projects.
>
> j\. Coordinates the Agency\'s compliance with the National
> Environmental Policy Act, Resource Conservation and Recovery Act, and
> related laws.

3\. DIVISION OF FACILITIES OPERATIONS

> a\. Coordinates building operations and facilities management
> functions for all FDA owned facilities within the Washington
> metropolitan area which includes: Module 1 (MOD 1), and the Beltsville
> Research Facility (BRF). Through special delegations of authority from
> GSA, maintains responsibility for the total management, operation, and
> maintenance of Federal Building 8 (FB-8) and Module 2 (MOD 2).
>
> b\. Oversees and directs a variety of commercial contracts to ensure
> smooth and efficient delivery of services.
>
> c\. Participates in the development of Agency policy involving
> building management and operations.
>
> d\. Provides guidance and assistance to the Agency operating
> activities on a variety of facilities operations issues.
>
> e\. Coordinates office and laboratory relocations and provides
> technical assistance to programs regarding effective space
> utilization.
>
> f\. Provides guidance to program personnel in identifying or
> developing alternatives or emergency procedures during scheduled and
> unscheduled maintenance interruptions.
>
> g\. Administers agency contracts for moving services and preventive
> maintenance for government owned property.
>
> h\. Manages and coordinates the GSA Delegations of Authority program
> for FDA nationwide. Responds, reviews, and analyzes existing and
> proposed Delegation agreements, Interagency Agreements, Memorandums of
> Understandings regarding the Agency\'s nationwide property holdings
> for operational planning processes and improvement.

4\. DIVISION OF ENGINEERING SERVICES

> a\. Manages and directs design and construction requirements for
> facility acquisitions within the Agency. These requirements may
> encompass the following activities singularly or in combination:
> Preparation of proposals, preparation of functional requirements,
> program of requirements and criteria, architect and engineer liaison,
> space design and planning, functional and technical reviews,
> preliminary site selections, and project management for facilities
> construction, renovation and improvement projects.
>
> b\. Provides engineering guidance and support for all activities
> related to maintenance, alterations, and repairs for Agency facilities
> nationwide.
>
> c\. Directs and coordinates all Agency facilities programs concerned
> with equipment specifications and installation associated with
> facility acquisitions. Assists the program staffs in developing
> compatible facilities and equipment systems for the Agency.
>
> d\. Provides overall engineering services including: feasibility
> studies, design criteria, concept, analysis, and estimates; schedules
> and tracks building and facilities projects, manages project designs.
>
> e\. Manages the FDA energy management program; develops Agency policy
> relating to the program; develops and enforces supporting Agency
> standards that comply with stated goals of the Department.
>
> f\. Oversight of structural, architectural or mechanical modifications
> to accommodate specific requirements in the existing FDA portfolio.
>
> g\. Prepares computer-aided design (CAD) drawings for the Agency and
> maintains file of master drawings for FDA portfolio.
>
> h\. Administers agency contract for renovations/alterations of office
> space.
>
> i\. Provides space and alterations project management for existing FDA
> space to program components.
>
> j\. Develops, implements and manages integration of facilities
> technologies.

![](media/image23.wmf){width="9.241666666666667in"
height="4.799305555555556in"}

**Functional Statement-Indian Health Service,**

Office of Environmental Health and Engineering

The Indian Health Service (IHS) provides a comprehensive health services
delivery system for American Indians and Alaska Natives with opportunity
for maximum tribal involvement in developing and managing programs to
meet their health needs. The mission of the IHS, in partnership with
American Indian and Alaska Native people, is to raise their physical,
mental, social, and spiritual health to the highest level. The goal of
the IHS is to ensure that comprehensive, culturally acceptable personal
and public health services are available and accessible to all American
Indian and Alaska Native people. The foundation of the IHS is to uphold
the Federal Government obligation to promote healthy American Indian and
Alaska Native people, communities, and cultures and to honor and protect
the inherent sovereign rights of tribes.

To support the above, the mission of the Office of Environmental Health
and Engineering (OEHE) is to:

-   Providing optimum availability of functional, well maintained health
    care facilities and staff housing;

-   Providing technical and financial assistance to Indian tribes and
    Alaska Native communities (tribes) to promote a healthy environment
    through the cooperative development and continuing operation of safe
    water, wastewater, and solid waste systems and related support
    facilities; and

-   Assisting each American Indian tribe and Alaska Native community to
    achieve its unique goals for obtaining health care facilities and
    establishing and maintaining a healthy environment.

The Office of Environmental Health and Engineering provides expertise in
the following specific areas:

-   Health care facilities engineering and construction,

-   Health care facilities program development,

-   Health care facilities engineering management support,

-   Real property management,

-   Sanitation facilities construction and environmental engineering,
    and

-   Environmental health services.

![](media/image24.wmf){width="9.125in" height="5.245833333333334in"}

**Functional Statement-NIH, Office of Research Facilities Development
and Operations**

The Office of Research Facilities Development and Operations (ORF) is an
organization whose sole focus is planning, developing, and managing
world class research and research support facilities. ORF was created in
April 2003 to improve overall management of the NIH facility program by
providing a single focus and single point of accountability for all NIH
facility activities and streamlining information flow and decision
making on research and research support facility issues. Like other
central service organizations, ORF is a critical member of the NIH
research support team. Juanita Mildenberg is the Acting Director. The
primary responsibilities of the Office of Research Facilities are:

-   Planning, development, and management of owned and leased research
    and research support facilities.

-   Assisting the NIH Director with the formulation and execution of the
    buildings and facilities appropriation.

-   Developing and maintaining policies and standards governing the
    development and use of real property.

-   Planning and directing services that provide master planning;
    capital facility project management; real property management,
    including architecture and engineering, maintenance, space and
    facility management; and the acquisition of leased facilities,
    architecture and engineering services, construction, and facility
    maintenance and operations related services.

The Office of Research Facilities is comprised of the Office of the
Director and six functional divisions.

**Division of Facilities Planning -- Acting Director, Ron Wilson**

Master and facilities planning, real property development and
management, space needs assessments, environmental planning and energy
conservation, and transportation management.

**Division of Capital Project Management -- Director, Anna Franz**

Planning, design, acquisition, leasing , construction, and commissioning
of complex, high risk facilities.

**Division of Property Management - Acting Director, Glen Stonebraker**

Operation of leased and owned real property including facility
management, operations, maintenance, repair, renovations, and utility
operations.

**Office of Acquisition-ORF -- Director, Melissa Richardson**

This Office is a central service reporting to the head of NIH
Contracting. It is located within ORF to support all contracting NIH
contracting needs for architecture and engineering, construction, real
estate, leasing, and facilities.

**Division of Policy and Program Assessment -- Director, Farhad
Memarzadeh**

Policies, procedures, guidelines and standards for real property,
facilities, construction, and space management; quality assurance
surveillance; program of requirements and project budget review.

**Division of Environmental Protection - Director, Kenny Floyd**

Environmental protection, pollution control, resource conservation,
environmental assessments.

# Attachment 4 - Annual Capital Facilities Plans (Embargoed Budget Sensitive Information for OMB Use Only)

Sample 1:

![](media/image25.wmf){width="6.490277777777778in"
height="7.154166666666667in"}

Sample 2:

![](media/image26.wmf){width="6.489583333333333in"
height="7.430555555555555in"}

# Attachment 5 - Sample Constructed Asset Report

![](media/image27.wmf){width="8.998611111111112in"
height="5.334027777777778in"}

# Attachment 6 - Facilities Assessment Evaluation Checklist

**FACILITY CONDITION ASSESSMENT**

(Typical Steps)

1\. ACQUIRE ALL BUILDING HISTORY AND BACKUP INFORMATION

> Visual condition assessments do not purely consist of looking for
> physical deficiencies. Information provided on drawings and in
> specifications can provide clues to potential defects, and project and
> maintenance history may provide information that indicates potential
> issues.
>
> In addition, the following information should be obtained and
> organized if available.

-   Drawings & Specifications

-   Previous Project History

-   Maintenance History

> Any missing back-up information should be collected or viewed on site
> prior to starting a visual assessment.

2\. REVIEW STRATEGIC ASSESSMENT INFORMATION FOR ACCURACY, COLLECT
ADDITIONAL STRATEGIC INFORMATION, AND UPDATE STRATEGIC ASSESSMENT
INFORMATION AS APPROPRIATE

> Part of the visual assessment should include a review of the current
> strategic assessment information for accuracy. This will benefit
> future assessments and should reduce future strategic assessment
> costs. In addition, supplement or update strategic information in the
> following areas:

-   Inventory

-   Estimated Useful Life

-   Remaining Useful Life (Age)

> Any missing or inaccurate strategic information should be gathered and
> recorded.
>
> Later in the process, information gathered in the tactical visual
> assessment should be used to update the strategic assessments.
>
> Finally, review all available strategic information on a
> building-by-building basis to determine if a tactical assessment is
> required.

3\. PERFORM VISUAL CONDITION ASSESSMENT (LOOK FOR DEFICIENCIES)

> Once the back-up information has been collected and reviewed and basic
> facility information has been checked for accuracy, perform a visual
> assessment of the facility. Gather information to update the strategic
> assessments and obtain any information that is missing from the
> strategic assessment. This should include modifying remaining useful
> life values to more-accurately reflect physical conditions so that the
> strategic assessment values do not rely purely on age.

4\. FROM DEFICIENCIES, IDENTIFY REPAIR/RENEWAL PROJECTS, PROVIDE
SUFFICIENT INFORMATION TO DEVELOP PROJECT SCOPE

> Based on observed conditions and deficiencies identified, identify
> repair or renewal projects. While the full scope of work need not be
> identified at this stage, it will be important to make sure that
> sufficient information is gathered and reported to allow a separate
> design professional to prepare future scope of work documents.

5\. ESTABLISH PROJECT COSTING APPROACH AND GATHER COSTING INFORMATION

> If available, historic replacement costs tend to be more reliable than
> costs calculated using RS Means or costs generated from unit rates.
> Therefore use historic costs before unit rate guides when identifying
> anticipated project costs.
>
> If historic costs are available, update these to reflect current costs
> and use these to forecast project costs
>
> If historic costs are not available, using a standard pricing guide to
> identify project costs. Ensure that the latest edition of RS Means is
> used each year to reflect current costs.

6\. PROVIDE OPINION OF COSTS FOR IDENTIFIED PROJECTS

> Identify repair or replacement costs for each defined project.

7\. PRIORITIZE PROJECTS ACCORDING TO PRE-DEFINED STANDARDS

> Using the prioritization standards, rank each project according to
> need using a standardized, parametric scoring system that reflects the
> mission, organizational and operational priorities of the OPDIV or HHS
> component.

8\. CALCULATE PLANT REPLACEMENT VALUE USING STANDARD PRICING GUIDE

> Using RS Means standard new construction rates (latest edition),
> calculate a replacement cost for each facility, using location and
> building type factors. In order to calculate this value, assume that
> the existing facility will need to be completely replaced, starting
> from an open green-field site.

9\. SUM TOTAL OF PROJECTS CREATED FROM OBSERVED DEFICIENCIES

> For each year of the forecast, sum the capital expenditure for all the
> replacement projects identified in that year.

10\. CALCULATE FCI

> At the start of each year, for each building, identify which projects
> identified in tactical visual assessments are required in that year
> and calculate the total combined value of these projects.
>
> Add to this value, the total combined value of all projects from all
> previous years that have been identified that have not been performed
> due to lack of funding. Adjust these values by inflation to reflect
> current costs (Note -- costs for incomplete projects from earlier
> years need to adjusted more for inflation).
>
> This resultant value is the total amount of deferred maintenance.
> Divide this value by the plant replacement value to provide the FCI
> metric. Since this is a time-dependent metric, it is only valid at the
> time it is created and will become out of date as soon as previous
> overdue projects are completed or new projects become are identified.
>
> The FCI formula is:
>
> (1 - (\$ Deferred Maintenance / \$ Plant Replacement Value)) x 100%

11\. PREPARE CONDITION ASSESSMENT PROCESS DOCUMENTATION AND REPORT TO
DEPARTMENT

> Report the overall results for each facility to HHS and prepare a
> report describing the overall methodology that was used and if and how
> it varied from this requirements document.

12\. REVIEW INDIVIDUAL OPDIV OR HHS COMPONENT RESULTS

> HHS will review the FCI values and methodologies used and agree with
> the OPDIV or HHS Component if any process modifications are required.

13\. SUMMARIZE MULTIPLE OPDIV OR HHS COMPONENT RESULTS

Overall results will be summarized by HHS and reported to OMB.

# 

# Attachment 7 - Operations and Maintenance Cost Methodology

**I. [Purpose]{.underline}**

The purpose of this measure is to identify uniform procedures for each
OPDIV or other HHS component to follow in reporting total operating and
maintenance costs on a by building basis.

**II. [Applicability]{.underline}**

This performance measure applies to all HHS-owned buildings. The
operating and maintenance cost measure is made up of four component
costs:

A.  Recurring maintenance and repair costs.

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A.  Utilities (includes central plant operation and purchase of energy).

B.  Cleaning and/or janitorial costs (includes pest control, refuse
    collection and disposal to include recycling operations), and

C.  Road/grounds costs (includes grounds maintenance, landscaping and
    snow and ice removal from roads, piers and airfields).

**III. [Responsibilities]{.underline}**

1\. Each OPDIV or other HHS component is responsible for the following
to assure appropriate implementation:

A.  Each OPDIV or HHS component will begin testing for full
    implementation by Q1 FY06.  Each OPDIV or HHS component will input
    the data on its operating and maintenance costs for FY 2005 for each
    building by January 1, 2006. Data for all subsequent fiscal years
    will be inputted by the following January 1.

B. Each OPDIV or HHS component will utilize a computer system (with
appropriate backup data) to report on the four operating and maintenance
component costs at the building level.

**IV. [Procedures]{.underline}**

1.  The data in the computerized system will contain the following
    information, with costs for measured on a cost per gross square foot
    (GSF) basis.

  --------- ---------- ------------- --------- --------------------- --------- ------- ----------
  Site      Building   Recurring     Utility   Cleaning/Janitorial   Roads and Total   Comments
            Number     Maintenance   Costs     Cost                  Grounds           
                       and Repair                                    Costs             
                       Costs                                                           

  Site xx   Building   \$ xxxx       \$ xxxx   \$ xxxx               \$ xxxx   \$ xxxx 
            xx                                                                         

  Site xx   Building   \$ xxxx       \$ xxxx   \$ xxxx               \$ xxxx   \$ xxxx 
            xx                                                                         

                                                                                       

  Total                \$ xxxx       \$ xxxx   \$ xxxx               \$ xxxx   \$ xxxx 
  Site xx                                                                              
  --------- ---------- ------------- --------- --------------------- --------- ------- ----------

Currently, not all cost information is available at the building level.
In that event, costs may be allocated using an algorithm. OPDIVs shall
be able to describe the algorithm applied for each measure but need not
include that explanation in the database. The algorithms used by NIH
attached are for illustrative purposes. That algorithm uses weighting
factors to allocate costs by building type for Recurring Maintenance and
Repair, Utilities, and Cleaning/Janitorial costs. Roads and Grounds cost
do not need to be weighted.

Where some of the operating and maintenance function are performed by
contractors and the costs are not allocated at the building level, the
OPDIVs should revise the contract format to capture actual costs at the
building level when the requirement is re-solicited.

Explanations for measuring the four components of the operating and
maintenance costs are described below.

1\. Recurring Maintenance and Repair Costs (\$/GSF):

A.  Includes the following building systems and/or components:

    a.  HVAC systems to include building automation system.

    b.  Electrical systems to include uninterruptible power systems,
        emergency power, and emergency generators.

    c.  Plumbing systems to include restroom fixtures, domestic water,
        sanitary sewer, reverse osmosis, natural gas, and compressed
        air.

    d.  Chilled water systems.

    e.  Steam and condensate systems.

    f.  Fire protection to include fire alarm systems, sprinkler
        systems, exit lights, fire stopping, cooking hoods, rated walls
        and rated doors.

    g.  Architectural components to include flooring, doors with
        associated hardware, ceilings, painting, wall coverings,

    h.  Refrigeration for cold rooms and DX systems.

    i.  Card access systems to include readers, panels, and software.

    j.  Medical gas systems.

    k.  Nurse call systems.

    l.  Building structure and components.

    m.  Laboratory fume hood exhaust systems.

    n.  Roofs, downspouts and gutters.

    o.  Predictive maintenance monitoring equipment.

    p.  Perimeter fencing and gates.

    q.  Elevators, escalators and lifts.

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A.  Includes labor and materials for the following services:

    a.  Preventive or predictive maintenance procedures on building
        equipment and components.

    b.  Service or trouble calls related to HVAC, electrical, plumbing,
        architectural components such as doors, floors, and windows,
        lighting, fire alarms, and any other component directly related
        to the safe operation of the building.

    c.  Miscellaneous repairs less than \$10,000.

    d.  Facility management services.

    e.  24/7 emergency response (15 minutes).

    f.  Day to day operations function of routine checking of critical
        equipment or problem areas.

    g.  Maintaining an accurate building equipment inventory and
        accurate building drawings.

    h.  Operating support for program related upgrades or capital
        repairs to include shutdowns as well as providing basic
        information about the building and associated systems.

    i.  Associated support for all operations and maintenance services
        such as vehicles, vehicle maintenance, training, computer
        equipment, maintenance related software systems, office
        supplies, copiers, fax machines, phones, radios, IT support, and
        supervision.

B.  Does not includes the following:

    a.  Facility condition assessments.

    b.  Loading dock management services.

    c.  Animal care cage wash equipment maintenance and repair.

    d.  Other miscellaneous program related equipment maintenance and
        repair.

    e.  Telecommunication systems maintenance and repair.

    f.  Portable equipment such as refrigerators, freezers, and
        laboratory equipment.

2\. Utilities Costs (\$/GSF):

A.  Includes the following utility distribution systems and Central
    Utility Plant equipment:

    a.  Primary domestic water distribution system including fire
        hydrants.

    b.  Primary sanitary sewer distribution system.

    c.  Primary natural gas distribution system.

    d.  Primary compressed air distribution system

    e.  Primary chilled water distribution system.'

    f.  Primary steam and condensate return distribution system.

    g.  Primary electrical distribution system.

    h.  SCADA System.

    i.  Metering systems.

    j.  Central Utility Plant equipment to include boilers, chillers and
        air compressors.

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A.  Includes labor and materials for the following services:

    a.  Preventive or predictive maintenance procedures and repairs on
        all Central Utility Plant equipment.

    b.  Repair of all primary utility distribution systems.

    c.  Operation of Central Utility Plant.

    d.  Maintenance and repair of metering systems, and meter reading.

    e.  Purchase of all utilities to include electricity, natural gas,
        water/sanitary sewer, propane, and fuel oil.

    f.  Maintaining an accurate Central Utility Plant equipment
        inventory and accurate primary utility systems distribution
        drawings.

    g.  Operating support for program related upgrades or capital
        repairs to include shutdowns as well as providing basic
        information about primary utilities systems.

    h.  Associated support for all operations and maintenance services
        such as vehicles, vehicle maintenance, training, computer
        equipment, maintenance related software systems, office
        supplies, copiers, fax machines, phones, radios, IT support, and
        supervision.

3\. Cleaning/Janitorial Costs (\$/GSF):

> A. Includes the labor and materials for the following services:

a.  Custodial cleaning services to include offices, laboratories,
    restrooms, corridors, stairwells, building entrances, conference
    rooms, and break rooms.

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a.  Trash/Refuse collection.

b.  Window washing.

c.  Recycling operations.

d.  Pest control operations.

> B. Does not include the following:

a.  Removal of hazardous waste.

4\. Roads/Grounds Costs (\$/GSF):

Roads and Grounds costs shall be allocated based on the GSF of a
building. Because the size of campuses and the build-out per campus can
vary substantially, the cost per acre can be included in the comment
field if that helps to explain costs that might seem high as compared to
a building located off campus or on a densely developed campus.

> A Includes the following services:

a.  Maintenance of landscaping to include grass cutting, tree trimming,
    shrub trimming, mulching, fertilizing, application of herbicides,
    shrub bed maintenance, flower planting, tree planting, shrub
    planting and removal of leaves.

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a.  Snow and ice removal from all roads, parking lots, sidewalks and
    building entrances.

b.  Maintenance and repair of exterior and transportation signage and
    electronic control devices.

c.  Maintenance and repair of roads, sidewalks, parking lots, bridges,
    pavement marking and street lights.

d.  Removal of litter.

e.  Street sweeping.

f.  Parking garage cleaning, striping, lighting, and washing.

> B. Does not include the following:
>
> a\. Any new construction of roads, sidewalks, or parking lots.
>
> b\. Purchase and maintenance of interior plants.
>
> c\. Setting up for special events held outdoors.
>
> d\. Work required to comply with changes in security color codes.

# 

# Attachment 8 -- Tactical Real Property Plan

The Tactical Real Property Plan (TRPP) consists of the primary document
with several appendices. The document is too large to include here in
hard copy format (hundreds of pages). However it is available
electronically on CDs included with official hard copies of the HHS
RAMP. See the following files on CD -

[Attachment 8: Tactical Real Property Plan,
National_DCreport_final.pdf](../Att%208,%20%20Tactical%20RP%20Plan,%20National_DCreport_final.pdf)

[Attachment 8a: Appendices to Tactical Real Property
Plan.pdf](../Att%208a,%20Appendices%20to%20TRPP.pdf)

# Attachment 9 -- Disposal Decision Tree

![](media/image28.wmf){width="8.497222222222222in"
height="6.070833333333334in"}