GSA Office of Governmentwide Policy

#### REAL PROPERTY POLICYSITE

JUNE 2006 EDITION

#### 

**The Transformation of Asset Management**

-   ***Charting a New Course***

**Office of Real Property Management**

**Real Property Policysite**

2006 June

*Contributing articles by GSA's Public Buildings Service, Public Works
and Government Services Canada, and industry experts.*

This is the thirty-first issue of **Real Property POLICYSITE
Newsletter** and the *[premiere]{.underline}* issue for 2006. This
edition examines the transformation of asset management in the Federal
real estate industry, highlighting the latest technologies, trends and
initiatives shaping the stewardship of the nation\'s assets on behalf of
the American people.

Our mission in GSA is to develop, promote, and assess compliance with
management policies and regulations for the effective and efficient
stewardship of federal real property assets and alternative workplaces.
GSA is a governmentwide leader in asset management, best practices,
inventory reporting, legislative reform, performance measurement,
sustainability, and telework.

This publication was made possible by the generous collaboration of
GSA's Public Buildings Service, Public Works and Government Services
Canada, and Federal and private industry real estate experts.

The POLICYSITE newsletter is a publication of the Office of Real
Property Management (MP), Office of Governmentwide Policy, U.S. General
Services Administration, Washington, DC, led by Deputy Associate
Administrator, **Stanley F. Kaczmarczyk.** The newsletter is produced by
the Regulations Management Division (MPR), **Stanley C. Langfeld**,
Director and Editor-in-Chief.

For more information, comments or input, please contact the Managing
Editor: **Richard Ornburn** in the Regulations Management Division, at
richard.ornburn@gsa.gov, or 202-501-2873. Graphic design provided by
GSA\'s Office of Citizen Services and Communications: Graphic Designer -
David Alexander.

For more information about the Office of Real Property Management, visit
our website: **www.gsa.gov/realpropertypolicy**.

***[Inside This Issue:]{.underline}***

1.  **A Transformation Underway - Executive Order 13327**

-   Scoring High with Asset Management

-   Progress and Perspective on Executive Order 13327

2.  **Data Integrity**

-   One Integrated Solution Meets Challenge

3.  **Federal Asset Disposition - Ways and Means**

-   Federal Asset Sales - One Stop Solution

-   Effective Disposition Metrics for Better Performance

4.  **Federal Transformation Perspectives**

-   GSA\'s Role in the Federal Real Property Council

-   Transformation of Asset Management at DOT

5.  **Geospatial Directions**

-   Geospatial Technology Remapping Government Assets

6.  **International Transformation Perspective**

-   Canada\'s Asset Data Integrity Project: Adding Value To Asset
    Management

-   A Sustainable Showpiece In A Northern Climate

7.  **Performance Measures**

-   A Reality Check - Performance Results 2005

8.  **Sustainable Enterprise**

-   Transforming the Government into a Sustainable Enterprise

-   San Francisco \"Green\" Federal Building

9.  **Workplace Innovations**

-   Alternative Workplace Arrangements \-- Changing With The Times

**REAL PROPERTY POLICYSITE**

JUNE 2006 EDITION

**\"THE TRANSFORMATION OF ASSET MANAGEMENT - *CHARTING A NEW COURSE\"***

**[1. A TRANSFORMATION UNDERWAY - EXECUTIVE ORDER 13327]{.underline}**

**[SCORING HIGH WITH ASSET MANAGEMENT]{.underline}**

\-- The Federal Real Property Asset Management Initiative

(by Karen Miller, Office of Real Property Management,
karen.miller@gsa.gov)

***\"\...the Executive Branch Management Scorecard indicates that the
Administration's increased focus on real property is having an
impact.\"***

**[Background]{.underline}**

The Federal government's real property portfolio is comprised of vast
and diverse assets used for a wide variety of missions. In 2005, the
government's portfolio totaled about 3.7 billion square feet of space -
with a plant replacement value about \$1.3 trillion - and over 234,000
land records. Of its total building area, the government owns and leases
approximately 79% and 12%, respectively. (The remaining 9% is
categorized as "Otherwise Managed," which includes state or foreign
government-owned properties where a U.S. state or 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.)

The Government Accountability Office (GAO) first tagged real estate as a
"high-risk" Federal program in 2003, highlighting the billions of
dollars agencies spend on unneeded space. GAO confirmed what the
government already knew -- that its real property portfolio is
deteriorating and that Federal decision-makers lack reliable data for
improving real property asset management.

***Executive Order 13327 and the President's Management Agenda***

Acknowledging the government's real property challenges, the President
signed Executive Order (EO) 13327 in February 2004, "**Federal Real
Property Asset Management**," and added real property to the President's
Management Agenda (PMA). For more information on the PMA initiative,
check out the website:
http://www.whitehouse.gov/results/agenda/real_property.html.

EO 13327 directed each Federal land-holding agency to appoint a Senior
Real Property Officer (SRPO), established the Federal Real Property
Council (FRPC), and mandated developing a centralized database for the
Federal real property portfolio. The EO instructs the FRPC to effect
widespread improvements to the government's management of its real
property portfolio through improved inventory management, performance
measurements, and asset management planning. The SRPO executives
comprise the FRPC, which is chaired by the Deputy Director of Management
for the Office of Management and Budget (OMB).

***Executive Branch Management Scorecard***

With a renewed focus on the government's real property portfolio, OMB
added real property to the PMA's Executive Branch Management
Scorecard**\*** to track agencies' performance against the established
governmentwide initiatives.

The [grading system]{.underline} scores agencies in two categories on a
quarterly basis: 1) Overall status in meeting the scorecard standards
for success; and 2) Agency's effort, or progress, in working towards the
deliverables and timelines established for the initiative. Agencies
receive scores of either green for success, yellow for mixed results, or
red for unsatisfactory. Fifteen agencies were most recently scored on
their real property results in December 2005.

(**\***For additional information on the Executive Branch Management
Scorecard, scorecard standards for success, the agencies' scores, and
how the system works, visit:
http://www.whitehouse.gov/results/agenda/scorecard.html.)

**[FRPC Progress]{.underline}**

In December 2004, the FRPC issued "Guidance for Improved Asset
Management" (Guidance), establishing governmentwide standards for agency
improvements on real property asset management. (This Guidance can be
obtained by accessing the following link:
<http://www.whitehouse.gov/omb/financial/fia_asset.html>.)

Major portions of the Guidance are discussed below:

***Guiding Principles***

The FRPC issued 10 strategic objectives ("Guiding Principles") for
improving real property management. Agencies must ensure all real
property initiatives are consistent with these principles:

1.  Support agency missions and strategic goals

2.  Use public and commercial benchmarks and best practices

3.  Employ life-cycle cost benefit analysis

4.  Promote full and appropriate utilization

5.  Dispose of unneeded assets

6.  Provide appropriate levels of investment

7.  Accurately inventory and describe all assets

8.  Employ balanced performance measures

9.  Advance customer satisfaction

10. Provide for safe, secure and healthy workplaces

***Asset Management Plans***

The FRPC also directed each agency to draft an asset management plan. At
a minimum, the plan must address the Guiding Principles and certain
required components, such as agency specific-owner objectives,
prioritized operations and maintenance costs and capital investment
plans, and a periodic evaluation of assets. The Asset Management Plan
Committee prepared a shelf document, containing a template that agencies
can customize with their specific data to create their unique asset
management plans. Agency asset management plans were due to OMB by
December 31, 2005.

***Inventory System***

EO 13327 charged the General Services Administration (GSA) with
developing and managing a new inventory system -- "a single,
comprehensive, and descriptive database of all real property under the
custody and control of all executive branch agencies, except when
otherwise required for reasons of national security." Consequently, the
FRPC's Inventory and Performance Measures Committees identified and
defined 23 mandatory data elements. Included in the 23 data elements are
four first-tier performance measures:

1.  Utilization

2.  Condition Index

3.  Mission Dependence

4.  Annual Operating and Maintenance Costs

The FRPC's goal is for the governmentwide inventory system to:

1)  Lead to an increased level of agency accountability for asset
    management.

2)  Allow for comparing and benchmarking across various types of real
    property assets.

3)  Give decision makers the accurate, reliable data needed to make
    asset management decisions, including disposing of unneeded Federal
    properties.

**[Status of FY 2005 Inventory Data Collection Effort]{.underline}**

As the responsible party for developing the new inventory data, GSA
conducted a cost-benefit analysis reviewing several technology
approaches and determined, with FRPC's approval, that, *enhancing the
existing Federal Real Property Profile* was the most cost-effective
approach for developing a governmentwide real property inventory system.
GSA began collecting the first-round inventory of data in October 2005.
This collection of FY 2005 inventory information ended on December 15,
2005. GSA analyzed the data and submitted preliminary reports to OMB
highlighting data anomalies such as: assets with missing or erroneous
data and assets reported at the installation level and not at the
constructed asset level. OMB used this information prior to issuing the
FY 2006 Q1 scorecard results.

**[Conclusion]{.underline}**

The Federal Real Property Asset Management Initiative continues to
attract a great deal of attention and interest. In January 2005, GAO
issued an update to its high-risk reports, noting that the underlying
conditions and obstacles that led to GAO's initial high-risk designation
still exist. In addition, as recently as January 2006, OMB's Deputy
Director for Management, Clay Johnson, discussed the Federal Real
Property Asset Management Initiative at the White House Summit on
Federal Sustainable Buildings. He referenced the potential \$15 billion
in savings that could be achieved over a 10-year period or sooner by
disposing of unneeded Federal real property and redirecting funds to
higher priority asset management uses. Finally, in February 2006, GAO
submitted testimony to the Senate Committee on Homeland Security and
Governmental Affairs. This testimony identified *excess and
underutilized property* *problems* as one of the major reasons the real
property area remains at high risk, explaining that the "overall risk to
the government and taxpayers could be substantially reduced if an
effective transformation strategy is developed and successfully
implemented . . ."

Since the signing of EO 13327 and the inclusion of real property on the
PMA's Executive Branch Management Scorecard, the FRPC has made
significant progress in working to address the issues and long-standing
challenges associated with the Government's real property portfolio. The
FRPC has established requirements for: 1) Developing a centralized real
property database; 2) Measuring real property performance; and 3)
Developing an agency asset management plan \-- all of which support
improved decision-making on the acquisition, maintenance, and disposal
of real property assets. According to the Executive Branch Management
Scorecard, the Administration's increased focus on real property is
having an impact. The December 31, 2005, scorecard results show a number
of agencies scoring green for progress, with GSA being the first and
only agency to score green for current status.

Ultimately, collecting reliable real property data will support and
assist agencies in meeting the governmentwide asset management goals by
reducing operating costs, improving asset utilization, recovering asset
value, improving facility conditions, creating more productive
workplaces, and enhancing safety and security.

***\"The December 31, 2005, (Executive Branch Management) scorecard
results show a number of agencies scoring [GREEN]{.underline} for
progress\...\"***

**[PROGRESS AND PERSPECTIVE ON EXECUTIVE ORDER 13327]{.underline}**

(By David Baxa, President and CEO, VISTA)

***\"\.....a pillar of the President's Management Agenda (PMA) -- is the
development of an Asset Management Plan (AMP)\...\"***

Executive Order 13327 on Federal Real Property Asset Management (EO
13327) celebrated its second anniversary this past February 4. One of
the cornerstones of compliance with this order --a pillar of the
President's Management Agenda (PMA) -- is the development of an Asset
Management Plan (AMP) that provides insight as to how a department or
agency will manage its portfolio, including plans for identifying excess
property for disposition.

VISTA has had the unique opportunity to participate in, at a minimum,
the internal review process of several executive Departments that have
submitted their AMPs to the Office of Management and Budget (OMB). From
this unique perspective, we have concluded that there is considerable
variation in how departments and agencies are approaching this work and
requirement. Under pressure to comply with the Order as part of further
compliance with the PMA, many are plunging ahead without fully
appreciating the management paradigm shift that must accompany the plan.

A Departmental or agency asset management plan cannot be a simple
repackaging of the organization's "Proud to Be" statements with an
explanation of how business is conducted by their Departments today.
Goals and objectives are fine as guiding principles, but OMB is looking
for sustainable process and structure.

***THERE IS MORE TO AN AMP THAN SIMPLE DOCUMENT PREPARATION.***

There must also be a change in perspective as it relates to business
processes, and an understanding of the cost of preparing and documenting
real property asset data as it applies to supporting the key initiatives
of the AMP. Most importantly, there must be some understanding of the
potential return on investment on the AMP initiatives -- in other words,
the Department must consider the cost of its intended initiatives
through the useful life of affected facilities. They must also
anticipate and measure the returns on that investment.

This article will first address the common stumbling blocks encountered
by Departments and agencies in preparing their AMPs. It also will
provide several recommendations as to how Departments and agencies can
create better processes and better environments to develop AMPs that
comply with EO 13327.

# [Common Stumbling Blocks]{.underline}

***Decentralization:*** Departmental decision-making is often
decentralized as it relates to real property asset management. In many
cases, authority has been delegated (sometimes by legislation) to
sub-Departmental organizations, resulting in no single point of
visibility or control at the agency level.

This observation was validated by a joint survey conducted by the
Federal Real Property Association (FRPA) and VISTA, the findings of
which were presented in October 2005. Over half of the respondents
believed that their agency's Senior Real Property Officer (SRPO) lacked
the authority to influence compliance across all subordinate
organizations. In particular, some respondents indicated that regional
and field operations have "too much autonomy and do not report to the
SRPO in any way." What's more, in some Departments, real property asset
management as a function is not always directly aligned under the
Departmental CFO. (This survey was taken in September 2005. A copy of
the joint FRPA/VISTA survey findings can be downloaded via the Internet
by visiting **www.vistatsi.com**)

To be successful in preparing as well as implementing an AMP,
responsibility and authority must be regained at the Departmental level
and with sufficient sustainable effort to provide measurable benefit.
The challenge in doing so, however, will be to manage the control of
real property asset decisions while maintaining a certain level of
management autonomy at the subordinate levels.

***Repackaging of Current Business Processes:*** AMPs cannot merely
describe the way an agency or Department currently does business.
Rather, an AMP must be a forward-looking document, providing
transparency in understanding and visibility of cash flow commitments to
each constructed asset managed by that particular organization. This can
be a time- and cost-intensive exercise that requires significant
commitment from senior financial executives. Unfortunately, because
compliance with the Executive Order is, for now, an unfunded mandate,
the highest echelons in some agencies are reluctant to make that type of
time and budgetary commitment.

***Insufficient Data:*** One key to a solid AMP is to have the document
reflect a process for maintaining comprehensive and validated data on
the current inventory of a Department's real property assets.
Unfortunately, in many cases such high-quality data currently does not
exist -- nor is it sustainable, to ensure accuracy of the plans through
subsequent iterations of implementation. Compounding that difficulty is
the issue of whether, as an unfunded initiative, agencies are willing to
invest in maintaining such data, even if the maintenance can be done at
a reasonable cost.

Congress is working on developing incentives to help facilitate
comprehensive real property asset data collection. The latest version of
HR 3134, a five-year pilot legislation from the House of
Representatives, would allow agencies to keep as much as 10 to 20
percent of the proceeds after expenses arising from disposition of
surplus assets. The challenge here, however, is to understand that there
may not be as many surplus owned assets as Congress may believe. In
preparing real property asset data, and the AMPs on which they are
based, it may be in a Department or agency's best interest to look for
opportunities to consolidate or dispose of leased space as well.

# [Recommendations]{.underline}

What is the best course of action, from a cost-effective perspective, to
develop a useful and workable AMP?

***Buy-in from the Top:*** The commitment to a new way of looking at
business processes must come from the highest Departmental level. SRPOs
must have the power to affect change and the domain expertise to be able
to impose such change from a knowledgeable perspective. Visible and
sustainable executive leadership is essential for success -- and success
in compliance with EO 13327 means success in meeting a key President's
Management Agenda initiative, as well.

***SRPO Support:*** In VISTA's experience, those organizations that have
been most successful in their AMP preparation have established an
internal Real Property Council within their Departments. This council
includes representation from key sub-Department stake-holders, supports
the SRPO, and is empowered to consider issues of process, policy,
procedures and compliance, creating consensus-based direction on how the
Department overall will be run and managed.

***Understanding of Financial Impact:*** A Department's compliance
efforts with EO 13327 must be understood in the context of
cross-functional financial implications. As one example, compliance
ought to be tied to the tenets of OMB Circular A-123, which calls for
repeatable and verifiable disclosure methods for reporting financial
assets and transactions. Because real property assets are among the most
significant of a Department's holdings, true fiscal responsibility under
OMB A-123 demands a comprehensive inventory of data on owned and leased
property. The more complete this inventory, the more readily real
property can be transformed from a "must-pay" bill to a bottom line
benefit.

***Inter-Departmental Consolidation:*** To fully realize the benefits of
compliance with EO 13327, regional master plans ought to be considered,
by way of inter-Departmental consolidation in real property portfolio
holdings. Ideally, these master plans ought to be refreshed on a rolling
three-year basis, to parallel recommendations from OMB.

Regional master planning would enable optimized space utilization among
all agencies with a regional presence. A useful inventory of real
property assets can be established readily by examining current
facilities utilization at the regional level, and comparing lease
agreements against the life expectancy of those facilities.

This inventory would not only enable a Department or agency to optimize
its utilization of owned and leased properties, it also would provide a
framework for continuing real property requirements, which are sure to
be handed down on a recurring basis. This information, when profiled
against validated facilities requirements, can form a baseline for
planning, consolidation, intra-Departmental assignment of assets, and
Department-wide financial performance improvement.

By avoiding the stumbling blocks outlined here and taking action on the
subsequent recommendations, a Department or agency's AMP stands a much
greater chance of earlier approval by OMB. In addition, long-term
compliance with this important PMA initiative is much more likely to be
achieved.

*(David Baxa is president and CEO of VISTA, a Herndon-based company
specializing in real asset management planning for government. Mr. Baxa
can be reached at 703-561-4100, or by email at
<david.baxa@vistatsi.com>. For more information, visit
www.vistatsi.com)*

**[2. DATA INTEGRITY]{.underline}**

**[ONE INTEGRATED SOLUTION MEETS CHALLENGE]{.underline}**

(by Dennis Goldstein, GSA Office of Real Property Management,
dennis.goldstein@gsa.gov)

***\" \..... key decision makers lack reliable and useful data for real
property strategic asset management\...\"***

(October 1, 2003, GAO testimony)

**[Background]{.underline}**

\"\... long-standing problems in the Federal real property area include
\...**unreliable real property data** \...\" according to the GAO report
High Risk Series, Federal Real Property, (GAO-03-122), January 30, 2003.
\"These factors have multibillion dollar cost implications and can
seriously jeopardize the ability of Federal agencies to accomplish their
missions. Federal agencies also face many challenges securing real
property due to the threat of terrorism.\"

(graphics\--charts)

In addition, Federal real property is at an alarming state of
deterioration, a significant repair restoration and maintenance backlog
exists, key decision makers lack reliable and useful data for real
property strategic asset management, and the government is becoming
increasingly reliant on costly leasing, concluded the October 1, 2003,
GAO testimony numbered GAO-04-119T and titled \"Federal Real Property -
Actions Needed to Address Long Standing and Complex Problems.\"

**[EO 13327 Charts a New Course\
]{.underline}**\
In response to these GAO reports citing weaknesses in Federal real
property asset management and the High-Risk designation assigned to the
Federal infrastructure in 2003, Executive Order 13327 was signed on
February 4, 2004 and Federal Real Property Asset Management was added to
the Presidents Management Agenda.\
\
The Executive Order, which was created to promote the efficient and
economical use of the Federal Government\'s real property assets,
directs the heads of all executive branch departments and agencies
covered by the Executive Order to designate a Senior Real Property
Officer (SRPO) among their senior management officials. The Executive
Order also established a Federal Real Property Council (FRPC) within the
Office of Management and Budget (OMB) for administrative purposes that
shall be composed exclusively of all agency SRPO\'s, the OMB Controller,
GSA Administrator, and any other Federal officials or employees deemed
necessary by the Chairman of the Council who shall be OMB\'s Deputy
Director for Management. The FPRC is responsible for developing
guidance, serving as a clearinghouse for best practices, and
facilitating the efforts of the SRPO. The FRPC has established four
Committees including, most importantly \--**Inventory.**

**[One Integrated Database Provides the Answer\
]{.underline}**\
The Executive Order also directed GSA, in consultation with the FRPC, to
establish and maintain a single, comprehensive, and descriptive database
of all real property under the custody and control of all executive
branch agencies except when otherwise required for reasons of national
security. Under the direction of the FRPC and its Committees, the Office
of Real Property Management is developing the technical requirements for
the governmentwide descriptive real property database.

**[Inventory Architecture\
]{.underline}**\
The FRPC Committees have made a great deal of progress on this
initiative. For instance, the FRPC approved an asset management template
and 23 data elements to be captured in an inventory system. These data
elements are:

1\. Real Property Type\
2. Real Property Use\
3. Legal Interest\
4. Status\
5. Historical Status\
6. Reporting Agency\
7. Using Organization\
8. Size\
9. Utilization\
10. Value\
11. Condition Index\
12. Mission Dependency\
13. Annual Operating Costs\
14. Main Location\
15. Real Property Unique Identifier\
16. City\
17. State\
18. Country\
19. County\
20. Congressional District\
21. ZIP Code\
22. Installation and Sub-Installation Identifier\
23. Restrictions

Additionally, the FRPC decided that agencies will submit their data,
starting in October 2005, for the data elements listed above. Due to
budgetary resources and timing, the FRPC decided that the architecture
of Federal Real Property Profile (FRPP) inventory system should be
modified to accept the 23 data elements in FY 2005. The modified FRPP-IA
will have the following capabilities:

1\. Capture data at the constructed asset level for all assets addressed
by the EO. Initially agencies, may report at a level higher than the
constructed asset. The goal, however, is to capture data at the
constructed asset level at each agency.\
\
2. Accept data from agencies more frequently than on an annual basis.\
\
3. Use in conjunction with a disposal decision tree model, developed by
the FRPC.\
\
4. Provide for an automated data interface that is low cost to the
agencies and a web interface for entering data for agencies with a small
inventory of assets.\
a. Accept XML.\
b. Support data entry though a web-enabled portal.\
\
5. Provide baseline reports related to the performance measures.\
\
6. Run queries (by the end user) utilizing FRPC data elements and create
custom reports in a web environment.\
\
7. Conduct quality assurance checks on data submitted by the agencies.\
\
**[Additional Capability]{.underline}**

The FRPC Systems Committee has also directed that by October 2006, the
federal real property inventory system must have the capability to
perform several additional tasks:\
\
1. Integrate additional performance measures as defined by the FRPC\'s
Performance Measurement Committee.\
\
2. Run enhanced canned reports for performance measures information,
including agency comparisons and progress against government-wide
targets available to end-users via the website.\
\
3. Store historic data from the initial FRPC submission for each record
by unique asset identifier and after disposal is complete, even after
the asset is no longer in the active agency inventory.\
\
4. Add edit/validation on data received from agencies of a level TBD.\
\
5. Capture additional data elements as directed by the FRPC.

**[Latest Transformation\
]{.underline}**

GSA conducted a cost benefit analysis in July/August 2005 to evaluate
the modified FRPP for the FY 2005 governmentwide inventory collection
versus an existing government inventory system (GOTS) or commercial off
the shelf system (COTS). This analysis recommended that GSA continue to
use the FRPP, a system well underway that provides functionality and
meets the FRPC requirements. The FRPP should continue to be transformed
through enhancements, including the addition of a COTS reporting tool.
The large FRPP database would benefit from a sophisticated reporting
tool to accommodate increased reporting and querying functions,
particularly for ad hoc reporting capabilities.

(sidebar)

**[GAO TO REASSESS \"HI-RISK\" STATUS OF REAL PROPERTY:]{.underline}**
The Government Accountability Office (GAO) will soon begin re-evaluating
whether real property should remain on its high-risk list. Managing
federal real property was put on the list in 2003. Mark Goldstein, GAO's
director of physical infrastructure issues, said the agency plans to
take a close look at the ***[results of the inventories]{.underline}***
and agency asset management plans this summer (2006). \"Our general
assertion is that \[agencies\] have made some strides and taken some
action, but we don't know the effect because we haven't evaluated them
yet. That's what we'll be doing in the coming months,\" he said.
Goldstein said it's too soon to say whether the detailed inventories and
asset management plans from most agencies would be enough to get real
property off the high-risk list.

(Excerpt provided by permission from FederalTimes.com, article
**\"Inventories are Step toward Better Property Management**\", by Ms.
Aimee Curl, March 30, 2006)

**[3. FEDERAL ASSET DISPOSITION - WAYS AND MEANS]{.underline}**

**[FEDERAL ASSET SALES - ONE STOP SOLUTION]{.underline}**

***\--A Web Portal Solution Transforms Customer Access***

(submitted by Bob Holcombe, Office of Travel, Transportation, and Asset
Management, GSA Office of Governmentwide Policy, and George Deryckere,
Real Property Disposal Division, GSA Public Buildings Service)

***The vision for the FAS portal is a secure, efficient, and effective
online e-marketplace\...***

The Federal Asset Sales (FAS) initiative is one of twenty-five
Presidential Electronic Government initiatives
(**www.whitehouse.gov/omb/egov**). FAS is among the \"Government to
Business\" initiatives designed to help business interact efficiently
and effectively with the Federal government.

These initiatives help reduce burden on businesses, provide one-stop
access to information, and enable digital communication using the
language of E-Business (XML). Each year, the Federal Government sells
billions of dollars worth of property, including surplus, forfeited,
abandoned, and exchange/sale assets. The FAS goal is to improve and
optimize the way the Federal Government sells its property

**[FAS Vision:]{.underline}** Federal agencies currently sell government
assets via a myriad of online and offline methods, however, FAS recently
explored a means to optimize federal real estate and personal property
sales channels by creating a centralized FAS portal. FAS will make it
easier for citizens and businesses to locate government assets for sale;
and improve the promotion of government sales through a centralized,
citizen-centric web portal. The vision for the FAS portal is a secure,
efficient, and effective online e-marketplace that will serve as a
single-point for the public to find and buy Federal assets.

**[Phased Approach:]{.underline}** As the managing partner, GSA is
implementing the FAS initiative through a phased approach. GSA released
the first phase on September 30, 2005 by modifying the FirstGov.gov
"Government Sales and Auctions" web page. Links on the FirstGov.gov
website now direct the public to online and offline sales events, where
citizens may buy government real estate, vehicles and other items for
sale. Citizens can access the FAS portal and shop for thousands of
assets, from valuable French gold coins to National Historic
Lighthouses.

**[Real Property:]{.underline}** To sell the Government's Real Property,
FAS launched its Real Property Web portal in September 2005. The purpose
of the portal is to provide citizens easier access to federal real
properties available for sale. The site also provides agencies the
opportunity to increase the exposure of their properties in a
centralized location while retaining the flexibility to determine the
sales method that best meets their needs.

**[Personal Property:]{.underline}** For Personal Property, FAS will
have personal property sales agents known as Centers of Excellence
(COEs) that will provide other agencies with sales support designed to
reduce asset sales costs and cycle time and increase sales proceeds. The
COEs will be selected based on existing "best in class" sales solutions.
In 2007, agencies will begin selling their unwanted assets through COEs
that best meet their needs.

[**Benefits**:]{.underline} Citizens and businesses can benefit from the
FAS initiative. By simplifying the processes of searching, bidding, and
buying items both offline and online, the public gains access to real
estate and personal property items for sale. Agencies benefit by
efficiently, effectively, and economically disposing of assets no longer
needed within the government.

For more information on the FAS initiative, contact Chris Fornecker via
e-mail at christopher.fornecker@gsa.gov or visit us online at
**www.gsa.gov/fedassetsales**.

***\"Last year, on-line transactions accounted for \$115 million of
total federal surplus asset sales.\"***
(***www.whitehouse.gov/omb/egov)***

*(This article was a collaborative effort by GSA\'s Bob Holcombe and Rob
Miller of the Office of Travel, Transportation, and Asset Management,
Office of Governmentwide Policy, and George Deryckere, Real Property
Disposal Division, Public Buildings Service)*

**EFFECTIVE DISPOSITION METRICS FOR BETTER PERFORMANCE**

**\-- *Federal Facilities Council (FFC) Addresses High-Risk Federal Real
Property Issue***

(by Mike Cohn, FFC Standing Committee on Organizational Performance and
Management, mcohn@nas.edu, and Richard Ornburn, GSA Office of Real
Property Management, richard.ornburn@gsa.gov)

Under the purview of the FFC, GSA\'s Office of Real Property Management
and Public Buildings Service (PBS) are collaborating closely on a new
initiative examining the process for the effective and successful
identification and disposition of excess Federal facilities, and related
metrics.  \
\
**[Model Development]{.underline}**: In January 2003, the Government
Accountability Office (GAO) designated Federal real property a high-risk
area, and identified excess and underutilized property as one of the
major factors for the designation.  The Administration has acknowledged
the problems in this area by adding the Federal Asset Management
Initiative to the President\'s Management Agenda.

Stan Kaczmarczyk, Deputy Associate Administrator for the Office of Real
Property Management (MP), and associates from PBS and other Federal
agencies have been working with Mike Cohn, from the Federal Facilities
Council (FFC) Standing Committee on Organizational Performance and
Management, on this initiative.  The committee, co-chaired by
Kaczmarczyk, is attempting to define the reasons for the large amount of
excess and underutilized federal property and possible solutions and
metrics that can be applied government-wide. GSA and FFC are starting by
developing case studies of successful disposal efforts from
identification of a property as being excess to final disposition.

**[FFC Role:]{.underline}** Originally established in 1953, the FFC
operates under the auspices of the Board on Infrastructure and the
Constructed Environment (BICE) of the National Research Council. The FFC
identifies and advances technologies, processes, and facilities
management practices that improve the performance of federal facilities
over their entire life-cycle, from planning to disposal.  As part of the
FFC, the Standing Committee on Organizational Performance and Management
addresses policies and issues related to the organizational structure
and administration of federal facilities management agencies and their
programs with the objective of improving effectiveness.\
\
**[Future Course]{.underline}**: The Standing Committee will facilitate
the use of the initial GSA project model by other Federal landholding
agencies to identify successful disposition metrics for excess real
property, charting the course for improved portfolio performance.

Contact Mike Cohn at the Federal Facilities Council for more information
at mcohn@nas.edu.

**[4. FEDERAL TRANSFORMATION PERSPECTIVES]{.underline}**

**[GSA'S ROLE IN THE FEDERAL REAL PROPERTY COUNCIL]{.underline}**

(by David L. Winstead, Commissioner, GSA Public Buildings Service)

***\"This commitment to improved asset management has led to progress
throughout FY 2005 in meeting the President's right-sizing goals for
real property asset management\...\"\
***

One of my top priorities since joining the Public Buildings Service
(PBS) in 2005 has been advancing the President's Management Agenda (PMA)
and Executive Order 13327 for Federal Real Property Asset Management
which sets forth specific requirements that promote efficiency and
effectiveness of federal real property management.

I have been impressed by the work the Federal Real Property Council
(FRPC) has accomplished to date, but there is more to be done. As the
new chair of the Asset Management committee, I would like to build off
the success the previous chair, former Commissioner F. Joseph Moravec,
and the Asset Management Committee had in developing the FRPC Guiding
Principles and the Council's Asset Management Plan (AMP) template items.

I intend to focus the committee's attention on three primary areas:
legislative reform, best practice sharing, and establishing a
communication strategy. First, I will work with the Committee to
continue its work in partnership with the Office of Management and
Budget (OMB) to pursue legislative reform. The Disposal Pilot
Legislation introduced by Representative Davis and the Pilot Disposal
Authority proposed in the President's budget are a good first step. Any
strengthening of language that can add more incentive within the pilot,
given the constraints imposed by budgetary scoring, would be tremendous.

Also to continue working with OMB to gather, share and discuss best
practices in managing the life-cycle of real property assets. This would
include sharing Agency Asset Management Plans that have been approved
and discussing the process, discussing the content of the three-year
rolling timeline (a component of the Asset Management Plan), and
finally, managing the results of the Disposition Decision Tree, a tool
used to provide information useful for management decisions by
segmenting assets based upon performance criteria.

Finally, I would like to build upon the internal communications plan
that was developed with input from member agencies of the Asset
Management Committee. The objective of the plan is to communicate the
value of federal real property reform as made possible by Executive
Order 13327. The plan includes strategic messages that support the goals
of the Executive Order. These messages can be tailored to suit
individual agencies as they communicate to their employees and
stakeholders the intent of the Executive Order. The plan also includes
tools and tactics for agencies to use including background on the
initiative, a fact sheet, frequently asked questions and a chronology of
actions to date by the Council.

In my role as Commissioner of Public Buildings, I am pleased to report
that the GSA has become a recognized leader in implementing Executive
Order 13327 and carrying out the work of the Council. Our agency has
made significant improvements in the management of its real property
assets in recent years. Beginning in FY 2002, PBS began an aggressive
portfolio restructuring effort to reshape its inventory to consist of
financially performing assets for which there is a long-term federal
need. To identify the strongest performing assets which provide the most
benefit to customer agencies and the taxpayer, GSA developed a tiering
methodology to segment its portfolio based upon financial performance
and asset condition. Workout strategies were developed for
non-performing assets to improve asset performance or move unneeded
assets to disposal. GSA's tiering process directly considers two of the
Federal Real Property Council's performance measures, asset condition
and operating costs.

As a result, GSA has targeted reinvestment dollars to assets based on
customer need, market conditions, financial performance, cumulative
reinvestment needs and historical and architectural significance.
Additionally, GSA has disposed of underutilized assets that no longer
meet customer needs, often with high capital reinvestment requirements
and operating expenses that could be eliminated. Removing excess
properties and poorly performing assets will improve PBS's ability to
meet the reinvestment requirements of the remaining assets, thus
improving the condition of the core PBS portfolio.

In FY 2005, GSA refined its asset management process to more closely
align with the FRPC's guidance and performance measures and launched an
initiative to assign holding periods for each government-owned asset by
identifying its core assets based upon the asset utilization, asset
condition, operating costs, and mission dependency or customer need.

This commitment to improved asset management has led to progress
throughout FY 2005 in meeting the President's right-sizing goals for
real property asset management outlined in the PMA by:

-   Disposing of 27 vacant or underutilized properties

-   Improving asset utilization to 93.2% in government owned assets and
    98.8% in leased assets

-   Improving the condition of our inventory with over 76% of assets
    meeting the FRPC standards for facility condition

-   Operating buildings at the appropriate costs with PBS cleaning
    maintenance and utility expenses 10.5% below private sector BOMA
    benchmarks

Most notably, however, the hard work of all our associates across the
country in the past few years in reducing vacant space, disposing of
unneeded assets, making prudent reinvestments in the inventory, and
working to reduce operating costs has led us to become the first agency
to receive a "Green" rating on the PMA scorecard for Federal Real
Property Asset Management. While this is a significant accomplishment,
there is a great deal of work ahead of us and I am confident that
together we can get the job done.

***(sidebar) The Public Buildings Service ( [PBS)]{.underline} is the
landlord of the civilian federal government, with a total inventory of
over 345 million square feet of workspace for a million federal
employees in 2,000 American communities. This comprises over 1,600
government-owned buildings, or approximately 55 percent of GSA\'s total
inventory. The remaining 45 percent is in privately owned leased
facilities. For more information about GSA\'s Public Buildings Service,
visit it\'s website at [www.gsa.gov/pbs]{.underline}.***

**[TRANSFORMATION OF ASSET MANAGEMENT AT DOT]{.underline}**

(by Rita Martin, Director, Administrative Management Policy Division,
Department of Transportation)

***\"Literally, most every aspect of real property management in the
Department of Transportation will change in some way as a result of
these initiatives.\"***

Asset management changes at the Department of Transportation (DOT) are
being proactively led by the DOT Senior Real Property Officer (SRPO),
Linda Washington, Acting Assistant Secretary for Administration; and the
SRPOs from the Office of the Secretary, each of ten DOT operating
administrations, and the Office of the Inspector General.

The Federal Aviation Administration (FAA), which has the largest real
property inventory, is leading the Department's asset management
implementation effort. FAA is the liaison to the Office of Management
and Budget (OMB) for the President's Management Agenda (PMA) initiative
and scorecard reporting.

**[Asset Management Plan]{.underline}**: DOT has presented a
consolidated Asset Management Plan (AMP) to OMB for consideration
implementing the requirements of Executive Order (EO) 13327 for
efficient and economical use of real property assets, and meeting
Federal Real Property Council (FRPC) guidelines. The AMP provides
prioritized initiatives, goals, and targets for implementing DOT wide
changes in real property management. DOT's initiatives focus on
establishment of a real property decision making framework, standardized
procedures, common performance measures, core competencies and continual
learning, an agency template for Asset Business Plans (ABPs), a
consolidated DOT inventory management system, and ensuring AMPs for each
operating administration and office are maintained current. Literally,
most every aspect of real property management in DOT will change in some
way as a result of these initiatives.

**[Inventory Management]{.underline}**: After examining options, DOT
decided to transform FAA's existing inventory management system into a
Department wide real property database. Modification of FAA's existing
Real Estate Management System (REMS) database application will allow the
Department to achieve a single comprehensive DOT inventory and meet FRPC
requirements at the lowest possible implementation cost. FAA serves as
the systems administrator and maintains the Oracle-based application.
Approximately 70,000 DOT real property records are maintained in REMS
and each DOT component with an inventory will feed its unique data into
the FAA managed system. All data currently available has been populated
in the FRPC mandatory data fields. REMS has an on-line interface with
DELPHI, the Department's financial management system, that allows the
inventory and financial data to be synchronized at all times. In
December, FAA used REMS for the first time to provide DOT's real
property information to GSA for the federal worldwide inventory. As we
move forward, REMS will require further modifications to enhance systems
interface, create new modules, and populate the system with additional
data. For example, REMS is being modified to include ABPs for DOT major
facilities this fiscal year.

**[Decision Making:]{.underline}** Another transformation underway is in
real property decision making. Recently, the Secretary of Transportation
approved two charters to create an executive committee and planning
council for real property. The DOT Real Property Executive Steering
Committee is a senior management policy-making body chaired by the
Deputy Secretary. The DOT Real Property Planning Council is chaired by
the DOT SRPO and is comprised of SRPOs from DOT operating
administrations and offices. The Planning Council serves as a working
group that makes recommendations to the Executive Steering Committee on
real property activities. The Steering Committee and Planning Council
provide forums for taking DOT wide approaches to real property issues
and engaging real property managers across DOT in the transformation
effort. For example, the Planning Council has established a series of
working groups drawn from its own members to study and implement each of
the prioritized initiatives in the DOT AMP.

**[Asset Management Organization]{.underline}**: Within FAA, a
significant transformation is taking place to create an Asset Management
Organization (AMO) in headquarters that will strengthen the management
of its real property portfolio at the program planning and design
phases. The role and function of the AMO is to actively manage the
life-cycle of real property (from acquisition, through maintenance to
disposal); to gather, analyze and track performance measurements; to
maintain an accurate inventory; and to implement policies that ensure
the efficient and effective management of the real property portfolio.

While asset management transformation is far from over, DOT is proud of
its progress to date taking least cost implementation approaches toward
EO 13327 requirements.

***OMB has recognized DOT's implementation efforts. For the first
quarter of FY 2006, DOT received Green for Progress and Yellow for
Status for making [significant]{.underline} advancements with the AMP,
inventory, and performance measures.***

For more information about the Department of Transportation, visit
**www.dot.gov**.

**[5. GEOSPATIAL DIRECTIONS]{.underline}**

**[GEOSPATIAL TECHNOLOGY REMAPPING GOVERNMENT ASSETS]{.underline}**

***\-- The Federal Geospatial Initiative***

(by Sandra Downie, GSA Office of Real Property Management,
sandra.downie@gsa.gov)

***\"\...spatially enabling the delivery of government services and
providing a geographical component for all internet based E-Gov
activities\...\"***

Real property is LAND and all that is attached to it. Property becomes
Real Property when it is attached to a specific location on the earth's
surface. Location is an essential data element in the management of real
property.

***Real property is by definition spatial.***

Managers of Real Property use alpha numeric geospatial data the form of
building addresses, property records, leases, permits, incident reports.
Spatial correlation of graphics in computer aided drawings (CAD), to
specific records in the asset inventory is a useful tool for property
management. The standardization of location data in business
transactions facilitates the calculation of the life cycle cost of an
asset.

Humans visualize spatial relationships very well. Conceptually, we know
that the state of Virginia is west of Washington D.C. and that if we
travel east on Route 50 we will be in Maryland on our way to the city of
Annapolis and the Chesapeake Bay.

> When we think about location in the physical world we visualize the
> geometric shapes of states, counties roads cities landmarks. When we
> communicate with each other we using place names to represent the
> points, lines and polygons that we see in our minds eye. When we use
> location codes in data entry, we use system of alpha numeric symbols
> to facilitate the exchange of machine-readable data. When we specify
> location in the context of a specific addressing system, we use a
> combination of place names and codes.

***"The Executive Office of the President will use the geospatial
profile of the FEA to ensure that all organizations will architect,
invest, and implement geospatial capabilities in a coordinated way".***
The Geospatial E-Gov strategy calls for spatially enabling the delivery
of government services and providing a geographical component for all
internet based E-Gov activities and interagency support for the use of
geospatial data in the implementation of Homeland Security Initiatives
to ensure the protection of key resources including dams, government
facilities, and commercial facilities.

The FEA Geospatial Profile v1.1 released January 26, 2006 establishes a
framework for more effective use and management of both graphic and
alpha numeric geospatial data and services as part of agencies\'
enterprise architectures. It will help agencies identify geospatial data
and integrate it into the business process to enhance service delivery
and mission accomplishment.

***Geospatial One-Stop is a strategic Initiative in OMB's Federal
Enterprise Architecture Action Plan.*** The development and
implementation of this electronic web tool builds upon its partnership
with the Federal Geographic Data Committee (FGDC) to improve the ability
of the public and government to use geospatial information to support
the business of government. For the large landholding federal agencies,
like the Department of Interior, the Geospatial Line of Business is part
of their mission.

Most GIS activities are focused on the technical aspects of accurately
describing and representing spatially distributed geographic features,
events and concepts on a map. The term geospatial is often used in place
of geographic in reference to maps, graphic representations of location
on the earth's surface, navigation information acquired from a global
positioning system (GPS), or digital satellite imagery of the earth.

The coupling of geospatial data, services and technology with
conventional data and technologies are often one of the most significant
enablers of improved decision making within business operations. A
Geographic Information System (GIS) is an information management
technology with capabilities to effectively collect, organize, store,
access, process, integrate and analyze both spatial and traditional
alpha numeric types of data and records. Used as a tool for data
management and spatial analysis, the information derived from GIS
information is as accurate as the data that goes into the system and as
relevant as the questions posed.

Spatial coordinates are stored in a database table along with other
alpha numeric data attributes. In a non spatial database, these complex
geomathematical construct looks like a blob of data. In a spatially
enabled database, the spatial coordinates in each feature record are
mathematically compared, converted to a common format and overlaid. From
these calculations, the attributes for any given point in each overlay
can be combined. The typical user of geographic information software
does need to write code or understand the complex calculation hidden
behind the graphic interface. The geospatial calculations and functions
are built into the software are transparent to the user. Automated
wizards are provided to prompt the user for data input. The power of
geospatial functionality is the ability to use the geoprocessing
functions to combine the spatial data from one or more data files to
produce new information.

Traditionally, business statistics have relied on alpha numeric codes to
aggregate information geographically...total amount of dollars spent,
people served, roads traveled, tons shipped within the selected
administrative boundary. Geocodes facilitate the collection of
statistical data sets used to measure the socio-economic activity of the
country and the impact that government programs. The location codes for
state, county, city, census tract, metropolitan areas represented a
commonly recognized boundary extent on the earth's surface. Geospatial
technology automates the geocoding, reduces manual coding errors and
updates boundary changes automatically.

***GSA\'S Federal Real Property Profile (FRPP),*** has used geographic
identifiers since 1953 to describe the geographic and political
distribution of federal assets. In 1972, geographic location/city/place
codes (GLC's) were created and used in the FRPP for the \"interchange of
formatted machine sensible coded data between and within agencies,\"

Recently GSA has negotiated a MOU with OPM and USGS to validate and
synchronize the GLC city codes and the OPM duty station codes with the
FIPS55 Place Code and the GNIS Feature ID. One of the objectives of this
MOU provide federal agencies and the public with one stop access to the
statistical location codes associated with the GNIS feature attribute
data. The existing GNIS database includes attributes such as
Latitude/Longitude, State and county FIPS55 codes and government unit
classification codes. Other location codes, such as CD and MSA, will be
included if the data is supplied by the agency that maintains them.

Separate paragraph with graphic from FGDC

***The Federal Geographic Data Committee (FGDC), Geospatial One-Stop
(GOS), and The National Map are three national geospatial initiatives
that share the goal of building the NSDI.*** FGDC focuses on policy,
standards, and advocacy; GOS focuses on discovery and access; and The
National Map focuses on integrated, certified base mapping content. The
National Geospatial Programs Office (NGPO) of the U.S. Geological Survey
is the organizational host for these complementary activities.

***(sidebar)***

**Federal Geographic Data Committee (FGDC*): ****The FGDC is an
interagency committee responsible for facilitating Circular A-l6
(provides direction for federal agencies that produce, maintain or use
spatial data either directly or indirectly in the fulfillment of their
mission; This Circular establishes a coordinated approach to
electronically develop the National Spatial Data Infrastructure and
establishes the Federal Geographic Data Committee (FGDC).) related
activities and implementation of the NSDI. The FGDC is chaired by the
Secretary of the Department of the Interior, with the Deputy Director
for Management, OMB, serving as Vice-Chair. Chair and Vice-Chair may
designate an individual to act in their stead. All agencies responsible
for spatial data themes are required to be members of the FGDC*
(Circular No. A-16 Revised August 19, 2002). **Geospatial One-Stop:**
*The Geospatial One-Stop initiative promotes coordination and alignment
of geospatial data collection and maintenance among all levels of
government.*

(quote)

*Geographic information is critical to promote economic development,
improve our stewardship of natural resources, and protect the
environment.*

(April 11, 1994 EXECUTIVE ORDER 12906)

**[6. INTERNATIONAL TRANSFORMATION PERSPECTIVE]{.underline}**

**[ASSET DATA INTEGRITY PROJECT: ADDING VALUE TO ASSET
MANAGEMENT]{.underline}**

(by Tom Corrigan, Corporate Communications, Public Works and Government
Services Canada, www.pwgsc.gc.ca)

***\"Public Works and Government Services Canada (PWGSC) has been
managing a multi-year [Asset Data Integrity Project]{.underline} (ADIP)
to provide accurate baseline information on the condition of
assets\...\"***

Building and maintaining an inventory of organizational assets is never
an easy task. Implementing a solution to manage assets in some of the
most spectacular cultural and ecological heritage sites in North America
takes the challenge to a whole new level.

**[Asset Data Integrity Project:]{.underline}** Parks Canada Agency of
the Government of Canada is responsible for National Parks and
Historical Sites across the country. Building on its long-established
service delivery relationship with the agency, Public Works and
Government Services Canada (PWGSC) has been managing a multi-year
**[Asset Data Integrity Project]{.underline}** (ADIP) to provide
accurate baseline information on the condition of assets, and to provide
recommendations and cost estimates for required work. Led by PWGSC's
Western Region, the project encompasses National Parks and Historical
Sites throughout vast and varied regions of northern and western Canada.

**(sidebar) PUBLIC WORKS AND GOVERNMENT SERVICES CANADA (PWGSC):**

***PWGSC manages one of the largest and most diverse portfolios of real
estate in the country and is the Government of Canada\'s real estate
expert.***

**[Challenges]{.underline}**: In recent years gaps in the quality and
quantity of their assets inventory became apparent to Parks Canada.
Although the agency worked with an asset management system, its full
potential was not being realized. There were concerns with inconsistency
in capturing asset data, including condition ratings and projected costs
for upgrades or replacements. The agency faced various challenges in its
role as custodian of national parks and historical sites, such as
recapitalization of infrastructure. To meet these challenges, achieving
integrity and completeness of asset data would be critical; trusted,
professional expertise would be needed to make it happen. And that's
where PWGSC came in.

**[Approach]{.underline}**: Parks Canada and PWGSC launched the ADIP in
2003, with PWGSC taking on a holistic, from-the-ground-up approach to
the task. A team of engineers, architects, and technologists was formed,
with the first step being the diligent capturing of tombstone data
through on-site visits focused mainly on "front-country", or
most-frequently accessed assets, such as administrative buildings,
campgrounds, operations buildings, and day use areas. It also included
historical assets officially recognized by the Government of Canada's
Federal Heritage Building Review Office. In time, a complete and
extensive inventory was built for each asset, including replacement
costs, condition ratings and an evaluation of required works for each,
which has been invaluable in assisting Parks Canada in planning for
maintenance or for more extensive recapitalizations.

**[Deliverables included:]{.underline}**

-   updating the existing asset management database,

-   developing a Geomatics Information System (GIS) model of each site,
    with links to asset information, technical records, photo logs and
    inspection reports, and

-   development of plans for addressing possible issues identified
    during the inspections.

In addition to being seamlessly integrated from multiple sources, asset
data is graphically represented through a web browser. Users can
effortlessly filter and merge several layers of asset, mapping
information and other data on their desktops, in a multitude of
combinations.

For example, the new system allows customized merging of GIS mapping
information with any of photographic records, or even with associated
financial, engineering, (global positioning system) GPS or survey
information, for any asset -- or group of assets \-- in the inventory.

"Our pre-existing knowledge of Parks Canada's extensive assets, and the
unique challenge of capturing and consolidating their data, put us at a
distinct advantage at the outset", explains PWGSC's Sandy Cummings, the
ADIP Project Manager. \"With the new system in place, they are now well-
positioned to plan and make well-founded business decisions on
maintenance works, not to mention major recapitalizations.\"

***PWGSC's expertise, and innovative approach to providing a
cutting-edge solution has proved that [information is indeed a powerful
asset]{.underline}.***

**[A SUSTAINABLE SHOWPIECE IN A NORTHERN CLIMATE]{.underline}**

(by Tom Corrigan, Corporate Communications, Public Works and Government
Services Canada, www.pwgsc.gc.ca)

***\"\....the (Greenstone) building's innovative "green" design features
will realize substantial energy savings and reflect the Government of
Canada's commitment to sustainable development.\"***

**[Environmental Showcase:]{.underline}** The new Greenstone building,
located in the City of Yellowknife in Canada's Northwest Territories, is
an environmental showpiece for the north. The result of a project led by
the Western Region of Public Works and Government Services Canada
(PWGSC), the building's innovative "green" design features will realize
substantial energy savings and reflect the Government of Canada's
commitment to sustainable development. The 7,200 m^2^ building has
another unique distinction in that a minimum of LEED Silver
Certification is being pursued. This will make it the first project
north of the sixtieth parallel to earn this achievement.

In addition to being the first northern building specifically designed
with LEED certification in mind, this project was also one of the first
to be registered under the recently-established Canadian Green Building
Council (CaGBC). CaGBC evaluates LEED worthiness under six broad
categories: the site, water conservation, energy consumption, materials,
indoor environmental quality, and innovation. LEED provides an effective
and consistent framework for gauging sustainable design.

**[SIDEBAR]{.underline}:**

> **[Canada Green Building Council (CaGBC):]{.underline} *The CaGBC
> exists to accelerate the design and construction of Green Buildings
> across Canada. The Council is a broad-based inclusive coalition of
> representatives from different segments of the design and building
> industry. Visit it\'s website at: www.cagbc.org.\
> \
> The CaGBC Vision\.....A [TRANSFORMED]{.underline} BUILT ENVIRONMENT,
> LEADING TO A SUSTAINABLE FUTURE***

**[PWGSC]{.underline}**: In its role as core service provider for the
Government of Canada, PWGSC led the project to design and construct a
new facility that would serve as a focal point for federal services and
program delivery in the north. LEED certification was a goal from the
outset. PWGSC chose a previously-used site, rather than a green-field
site, for the building. This involved demolition of a vacant building,
which was once home to a retail store, and environmental remediation of
the property. The demolition/remediation phase exceeded expectations on
minimizing environmental impact, with over 95 per cent of deconstruction
materials being recycled and diverted from landfill.

**[Sustainable Elements:]{.underline}** Environmentally-friendly
practices continued during the construction phase of the project. To
limit the volume of materials directed to landfills, careful, consistent
and documented separation of construction [waste]{.underline} was
performed on site during deconstruction. Silt fences were used to keep
construction-related water away from storm sewers. The cement mixture
used to construct the building was composed of 25 per cent fly ash
(waste from burnt coal), a material which otherwise would have been
considered waste. The Greenstone project was the first in Yellowknife to
use fly ash, opening the door to this material being available for
future construction in the area.

PWGSC committed to a sustainable approach to [building
design]{.underline} and this is realized in countless ways. By using
design features, which capture available sunlight for heating and
lighting, energy consumption will be lowered significantly. A
south-facing photovoltaic wall maximizes the use of sunlight;
furthermore, a curved façade serves as a passive sun catcher, and long,
narrow floorplates allow for high levels of sunlight to enter the
building. The photovoltaic curtain wall will generate electricity to
meet approximately 5 per cent of the building's electrical demand. The
31.3 kilowatts produced will represent the highest proportion of
photovoltaic solar power supplied within a Canadian public building.
PWGSC anticipates that, as a cumulative result of these design elements,
energy consumption will be 44 per cent lower than the American Society
of Heating, Refrigerating and Air-Conditioning Engineers' (ASHRAE's)
90.1 standard. It's also expected the building will save Canadian
taxpayers an estimated \$CAD 112,000 per year in energy costs and reduce
greenhouse gases by approximately 364 tons per year.

Smart use of [water]{.underline} is another important design
consideration. The building's "green" roof not only helps insulate the
building all year round, but also gathers rainwater for purposes not
requiring potable water, such as landscaping. A six-inch layer of soil
anchors plants to reduce radiant-heat gain and absorb water that
otherwise would drain off site, an important consideration as there is
no storm-sewer in Yellowknife. Inside the building, waterless urinals
and dual-flush toilets reduce water usage by over 30% per cent, relative
to similar-sized buildings.

The Greenstone Building boasts an under-floor [air
distribution]{.underline} system, designed to be flexible to meet the
changing needs of tenants and differing space layouts. A floor-based
air-delivery system saves energy by relying on rising air as an
alternative to traditional forced-air requiring a larger HVAC system.
The elevated floor in place throughout the building also enables easy
access to a \"plug-and-play\" electrical system.

Other [material choices]{.underline} influenced by LEED requirements
include the use of carpet with high quantity of recycled content, and
the use of carpet tile rather than broadloom provides long-term
flexibility. Achieving a "healthy" building for federal employees and
visitors is another key objective; minimal use of paints and adhesives
containing volatile organic compounds enhances the indoor environment.

Even the [building name]{.underline} has an environmental dimension.
"Greenstone" refers to the "Yellowknife Greenstone Belt", a geological
feature recognizable by its pale green rocks and upon which the City of
Yellowknife is built. The Belt is the source of the region's gold and
other valuable minerals, and its exposed rock is a prominent feature of
the area's landscape. In fact, the building is built over the West Bay
Fault, with the fault line marked on the lobby floor.

**[Legacy:]{.underline}** Officially opened in October 2005, the
Greenstone Building was welcomed by \"Yellowknifers\" as a new addition
to the downtown, and as a new home for the Government of Canada.

***Through the implementation of the latest environmentally-friendly
design features and high standards on reducing energy costs, the new
Greenstone building also demonstrates PWGSC's leadership role in
sustainable development, and is an environmental legacy to the community
it serves.***

**[7. PERFORMANCE MEASURES]{.underline}**

#### [A REALITY CHECK - PERFORMANCE RESULTS 2005]{.underline} 

(by Ray Wynter, GSA Office of Real Property Management,
ray.wynter@gsa.gov)

#### 

**[Introduction]{.underline}**

*How is your workspace \"measuring up?\" What is the Cycle Time for Real
Property Disposals? How does telework fit in? How is your real property
really performing?*

Find these answers and more in the latest issue of the ***[Real Property
Performance Results]{.underline}**,* the eighth annual analysis of real
property performance in the Federal office space sector.

***BEING ABLE TO MEASURE YOUR PERFORMANCE IS KEY TO IMPROVEMENT.***

In the Real Property Performance Results 2005 report, you will find the
annual update on key measures of Federal real property performance.
Published by GSA\'s Office of Real Property Management, this edition
includes even more useful measures than before for all government
agencies. It features an update on the number of Federal teleworkers,
the most current private sector benchmarks, and an update on
sustainability. New for this year is the inclusion of the cycle time for
real property disposal and the sale price as a percentage of the fair
market value of disposal assets. Special features included this year are
updates on Executive Order 13327.

**[What is Real Property Performance?]{.underline}**

\"In every program, and in every agency, we are measuring success not by
good intentions or by dollars spent, but rather by results
achieved.\"(2/6/06 President George W. Bush, \"The Budget Message of the
President\")

From an initial 5 measures of Governmentwide real property activity, and
2 broad statistical measures in 1998, we assessed twelve indicators of
performance in 2005:

1.  Cost per Square Foot (Owned)

2.  Cost per Square Foot (Leased)

3.  Vacancy Rate

4.  Cost per Person

5.  Customer Satisfaction

6.  Employees Housed

7.  Total Square Feet

8.  Federal Teleworkers

9.  Sustainability

10. Federal Property and Admin. Services Act of 1949 Disposal Cycle Time

11. Reimbursable Disposal Cycle Time

12. Sales Price as a Percentage of EFMV (Estimated Fair Market Value)

**[What is the Cost per Person Model?]{.underline}**

***Is there a new approach to measuring the 21st Century workplace?***

We originally developed a Cost per Person (CPP) Model in 1999. In 2004,
our Office updated and enhanced this Excel-based model which has helped
Federal agency customers estimate their total cost per person, including
other administrative cost components in addition to real estate, as a
new approach to measuring the "new" workplace. The cost per person is
one of GSA's seven original governmentwide performance indicators and
continues to be a useful benchmark for Federal agencies. The model
estimates the average cost per person in each of the following areas:
real estate (space usage), telecommunications, information technology
(IT), and alternative work environment. An additional feature is a
"what-if" tool that calculates potential cost savings resulting from an
alternative work environment, such as hoteling or desk sharing.

*The GSA CPP Model and its accompanying user's guide are available
electronically at no charge. Visit our website:
**www.gsa.gov/realpropertypolicy** for more information or e-mail your
request to patrice.walker@gsa.gov.*

**[What's Next for Performance Measures?]{.underline}**

Our annual benchmarking exercise focuses on a category generally
referred to as "generic" or "vanilla" office space. Many Federal
buildings do not fit neatly into this category. They are mixed-use,
special purpose, operating longer then 8 hours per day and 5 days per
week, accommodating museum space or high public access, etc. We have
ventured outside the box to produce the highly acclaimed **Special
Edition: Benchmarking Operating Costs of "Monumental" Federal
Buildings**. The Performance Measurement Division will again work "off
line" from the *Performance Results* exercise to benchmark the operating
costs of laboratory space and space use in the Federal government and
the private sector. These studies will include cost-savings and
flexibility decisions regarding lab support space and space planning.

**[For more information]{.underline}, \....** you can check all the
results, which are compiled in the *Real Property Performance Results
2005.* Previous reports are available electronically for download from
our web site **www.gsa.gov/realpropertypolicy.** For information on the
performance measurement program, contact Shirley Morris at
shirley.morris@gsa.gov.

**3.7 BILLION**:

The government owns and leases about 3.7 billion square feet of building
space.

**[8. SUSTAINABLE ENTERPRISE]{.underline}**

**[TRANSFORMING THE GOVERNMENT INTO A SUSTAINABLE ENTERPRISE\
]{.underline}*\--Creating A High-Performance GSA\
***(by Jonathan Herz, Office of Real Property Management,
jonathan.herz@gsa.gov)

***\"\...a roadmap for integrating sustainable development into all of
our operations, to create a high-performance GSA.\"***

Almost seven years ago, David Bibb, then Deputy Associate Administrator
of the Office of Real Property, started the Office of Governmentwide
Policy's (OGP) sustainability program by asking a simple question: What
is Sustainable Development? The result was our first publication, **"The
GSA Real Property Sustainable Development Guide."**

Over the years, we have continued to explore aspects of sustainable
development, particularly as they relate to the workplace. Our latest
study, the GSA sustainable enterprise model, is intended to be a roadmap
for integrating sustainable development into all of our operations, to
create a high-performance GSA.

**[GSA Sustainable Enterprise Model Initiative]{.underline}**

The Sustainable Enterprise Model project was the result of the desire to
create an annual sustainability report for our stakeholders, and to
answer questions about the lifecycle-cost basis for green buildings.
Both tasks are essential to the effective application of sustainable
principles. And both, to some degree, have been a part of how GSA does
business. However, both, if they are to be meaningful tools, must be
considered in a broader framework that considers all aspects of
sustainability

In the first case, reporting of GSA's accomplishments needs to be put
into a broader context if it is going to be meaningful. When considered
in relation to GSA's environmental impact, or "footprint," such a report
can provide the basis for developing agency-wide performance goals and
measures. In the second case, enhancing the cost-effectiveness of GSA
products and services can only be accomplished with an understanding of
current lifecycle thinking -- one that tries to avoid long-term
environmental costs by redefining cost-benefit analysis.

This Initiative will support OGP's efforts, as discussed in the **"GSA
Real Property Sustainable Development Guide,"** [to transform the
Government into a sustainable enterprise]{.underline}, and enable GSA
to:

-   Translate GSA's Strategic Plan into specific Service Plans;

-   Implement the Service Plans;

-   Report on the progress of plan implementation;

-   Track GSA and customer agencies\' purchases and report on
    sustainable enterprise progress.

Our project team, led by LMI Government Consulting, includes Natural
Logic, Inc., Sustainability Partners, and Sylvatica. Among the topics
we're researching are:

1.  Legal requirements that support sustainability, including those
    concerning economic, environmental, and social responsibility;

2.  Best practices in life cycle models, sustainable development
    decision tools, and sustainable development reporting models.

Building on this research, the report will develop an implementation
plan to move GSA's focus from reactive, compliance-oriented to a
continuous improvement approach. Our goal is to develop new GSA policies
on sustainability life cycle costing and a comprehensive,
enterprise-wide decision-making model. This should help us to:

1.  Understand where we are, by benchmarking GSA service lines'
    sustainable 'footprints.' What are we doing -- what can we do? What
    are our liabilities?

2.  Translate GSA's strategic plan into specific service plans,
    identifying agency-wide performance goals and measures for long-term
    improvement.

3.  Integrate program performance with budgeting.

4.  Enhances the cost-effectiveness of GSA products and services by
    anticipating or avoiding the need for regulatory change; with
    operational decisions informed by science-based, lifecycle analysis.

## Provide a framework for an integrated annual report and an environmental website. 

## Track GSA and customer agencies\' purchases and reports on their sustainable progress.

## Identify policies with immediate application and areas of future study.

GSA and other agencies are already doing much of this, or starting to -
but it needs to be integrated. We're not doing "sustainability" -- we're
primarily doing compliance and minimization.

**[CONCLUSION]{.underline}**

GSA acts as a catalyst for nearly \$66 billion in federal
spending---more than one-fourth of the government\'s total procurement
dollars. The agency also influences the management of federal assets
valued at nearly \$500 billion. These assets include more than 8,300
government-owned or leased buildings, an interagency fleet of 170,000
vehicles, and technology programs and products ranging from individual
laptop computers to systems that cost tens of billions of dollars.

For decades, the GSA has led the Nation in energy efficient,
resource-conserving building design, construction, and operations. Our
facilities led the way in accessibility for all; our purchasing power
has contributed to national adoption of better business practices and
products -- such as seatbelts standard in every automobile. We have also
made great progress in water conservation, use of recycled products and
renewable energy sources.

But, how do we ensure that GSA is meeting its goals and providing the
best value to its customers, in compliance with Federal Laws, Executive
Orders and regulations? OGP has taken the lead in promoting the idea
that sustainable development provides the best decision-making model
through its comprehensive consideration of economic, environmental, and
social issues associated with every business decision we make. As we
write in the OGP publication, **"Sustainable Development and Society,"**
"Getting the best value for the American people means doing more than
just the lowest first cost. It means understanding, acknowledging, and
even celebrating the choices that the Government makes across the broad
spectrum of its programs and responsibilities."

This initiative will establish a GSA sustainability life cycle cost
policy through a comprehensive, enterprise-wide decision-making model
and create a framework for consolidated annual reports to Congress, and
others, on GSA's progress towards becoming a sustainable enterprise. In
this way, GSA can better carry out our mission, to help federal agencies
better serve the public by offering, at best value, superior workplaces,
expert solutions, acquisition services and management policies.

***\"This Initiative will support (our) efforts \... to transform the
Government into a sustainable enterprise\.....\"***

**SAN FRANCISCO \"Green\" FEDERAL BUILDING**

**Award winning, \"green\" design \....integral to GSA PBS\'s commitment
to creating a sustainable legacy\...\....**

A long, slender, translucent tower, 60 feet wide, 234 feet high,
sheathed with glass and an undulating perforated metal screen, and a
four-story annex \... boldly announces the federal government's
commitment to green architecture and a high quality work environment.
While dramatic, the design of the new Federal Building in San Francisco
is not form for form's sake. It is user-centric, blending energy
efficiency and sustainability with strategies to improve the well-being
and productivity of workers. (GSA Design Awards 2004 Program)

**(GSA Pacific Rim Region/Public Buildings Service; Architect:
Morphosis; www.gsa.gov.pbs)**

**[9. WORKPLACE INNOVATIONS]{.underline}**

**[ALTERNATIVE WORKPLACE ARRANGEMENTS - CHANGING WITH THE
TIMES]{.underline}**

*\--Federal Agency Issues Groundbreaking Telework Guidelines*

*(by Ken Holstrom and Richard Ornburn, GSA Office of Real Property
Management)*

***\"The world is changing...We need to make sure government changes
with the times\....\" (President George W. Bush, July 30, 2004)***

To begin with - what is the first thing you think of as an Alternative
Work Arrangement (AWA)? It\'s usually teleworking from home or from a
community telecenter. But other more unique shared space arrangements in
an office environment such as the virtual office or hot desking are
becoming more commonplace. These relatively new concepts, in combination
with teleworking and other AWA considerations, are expected to play a
progressively greater role in the future space needs and the asset
management decisions made by Federal agencies.

AWA is needed for many reasons\.....commuting issues, environmental
impact considerations, quality of life, employee retention,
technological advances, the changing nature and place of work.

**(sidebar)**

*\"**What's Not to Like?\"\
(*****Treasury Inspector General for Tax Administration (TIGTA))**

*Improved morale, higher productivity and dramatic savings in real
estate costs\... TIGTA is executing a telework/hoteling strategy that
shows how government agencies can save millions.*

To facilitate agencies\' increased implementation of telework and other
alternative workplace arrangements\...\...GSA published FMR Bulletin
2006-B3, [**Guidelines for Alternative Workplace
Arrangements**,]{.underline} in the Federal Register on March 17, 2006.

Impetus for the increased use of AWA arises from two recent legislative
actions. Section 359 of Public Law 106-346 requires agencies to
establish policy under which eligible employees may participate in
telecommuting if it will not diminish their performance. OMB has also
indicated that the law requires agencies to look at possible barriers to
the use of AWA and remove them to increase participation. Additionally,
40 U.S.C. § 587(c)(2), (Pub. L. 107-217), requires Federal agencies
considering whether to acquire space, quarters, buildings, or other
facilities for use by their employees to consider whether AWA can be
used in meeting their space needs.

Ultimately, these guidelines will help agencies in meeting the
Administration\'s goal to promote more flexibility in the workplace for
today\'s (and tomorrow\'s) changing workforce and to make better asset
management decisions.

To access the entire bulletin, click into FMR Bulletins under the
website **www.gsa.gov/fmr.** For additional information or questions,
please contact Stanley C. Langfeld, Director, Regulations Management
Division in GSA\'s Office of Real Property Management, on 202-501--1737,
or email stanley.langfeld@gsa.gov.