**GSA Office of Governmentwide Policy**

**REAL PROPERTY POLICYSITE**

**news and views on real property and workplace policy**

SPRING 2002

***[PROPERTY ACT REFORM]{.underline}* TAKES MAJOR STEP\...**

**TO PROVIDING FEDERAL AGENCIES**

**ENHANCED ASSET TOOLS**

**NEEDED TO MANAGE!**

-   Interagency Transfers and Exchanges

-   Sales/Exchanges with Non-Federal Sources

-   Outleasing and Public-Private Partnerships

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-   Subleasing

[Index]{.underline}:

Asset Management Innovation

-   Property Act Reform Takes Major Step!

Best Practices

-   GSA Wants Your Real Property Best Practics!

Planning

-   GRPIS Expands In Colorado; Atlanta Next!

Telework

-   Proctor & Gamble Show Zest for Telework

E-RealEstate

-   E-RealEstate Examined

Facility Security

-   Pentagon Renovation Focus of Federal Real Property Council Meeting

The Workplace

-   What is the Emerging New Workplace?

-   If Walls Could Talk

-   Explore Workplace Issues with W4!

Sustainability

-   Is Sustainability Important in the Virtual Workplace?

-   Sustainable Recapitalization Planning for Public Buildings

Regulatory Changes

-   Real Property Inventory Regulation Goes Final!

-   GSA Updates General Reference Guide for Real Property Policy

Electronic Inventory

-   Retooling the Worldwide Inventory

Newsroom

-   Burton New Advocate for BOMA

**Our mission \...** drives us into the 21st century: "The Office of
Real Property promotes collaborative and innovative Governmentwide
policies, products, and services for real property, the 21st century
workplace, and entrepreneurial Government activities." We reach out on a
global level to share information on Federal real estate and the
workplace with our industry partners and the public through this
newsletter and other avenues.

**This is** \... the twentieth issue of REAL PROPERTY POLICYSITE, a
quarterly publication of the Office of Real Property (MP), Office of
Governmentwide Policy, U.S. General Services Administration, Washington,
DC, which is led by Deputy Associate Administrator, David L. Bibb. This
publication shares the latest information on public and private sector
real estate and workplace initiatives, trends, and best practices. We
encourage your input. Contact us to let us know what you think, to
contribute articles, or to be placed on our mailing list, by contacting
the editor, Richard Ornburn, at richard.ornburn@gsa.gov, or (202)
501-2873

***Keep in touch**.... Access some of the latest public and private real
estate and workplace information throughout the world from your desk pc
or laptop through our site on the internet...information is power, so
check us out at...... **www.gsa.gov/realpropertypolicy**.*

**[ASSET MANAGEMENT INNOVATION]{.underline}**

**PROPERTY ACT REFORM TAKES MAJOR STEP!**

(by Ron Whitley, GSA Office of Real Property)

***A successful bipartisan effort on Capital Hill has brought the
Federal government one step closer to having the tools needed by
agencies for effective asset management.***

The General Services Administration\'s (GSA) Office of Real Property is
pleased to announce that on March 12, 2002, Representatives Sessions,
Davis, and Burton introduced a bill, H.R. 3947, that amends the Property
Act to enhance Federal asset management, and for other purposes. On
March 14, 2002, H.R. 3947, entitled \"**Federal Property Asset
Management Reform Act of 2002,**\" was marked up and approved
unanimiously by the full House Government Reform Committee. The bill was
also referred to the Transportation and Infrastructure Committee where
action is pending.

Back on October 15, 2001, the President submitted to the Congress the
\"Managerial Flexibility Act of 2001\" that included reforms to the more
than 50-year-old Federal Property and Administrative Services Act
(Property Act) of 1949.

On November 1, 2001, Senator Thompson introduced the bill as S. 1612 in
the Senate. Since then, GSA has been working to secure introduction and
passage of the bill in the House of Representatives. The Office of Real
Property in GSA has been negotiating with the House Government Reform
staff since last October to reach agreement.

H.R. 3947 is similar to S. 1612 with the following changes and
additions:

-   Senior Real Property Officers must have proper training and
    experience in facilities management.

-   Asset transactions (exchange/sale and outleasing) valued over
    \$700,000 must be reviewed by Senate Governmental Affairs Committee
    and House Government Reform Committee.

-   Exchange/Sale transactions are subject to a 10-year sunset provision
    (previously only Outleasing was subject to sunsetting).

-   Exchange/Sale transactions require a fair market value appraisal.

-   GSA is provided authority, at its discretion, to review and approve
    transactions that use asset management tools.

-   Local community input where property is located is to be solicited,
    assessed, and considered by landholding agency.

-   Explanatory reports on negotiated property sales reduced from \$2
    million to \$700,000. Require submission to Senate Governmental
    Affairs Committee and House Government Reform Committee.

-   Landholding agencies that need to construct and alter buildings on
    land leased to non-Federal entities must comply with Section 619, 40
    U.S.C. Section 619 requires Federal landholding agencies that
    construct and alter buildings to consider National building codes
    and State and local zoning laws.

-   Permanent housing added to McKinney-Vento Homeless Assistance Act,
    homeless providers that receive listings of available Federal
    properties is expanded, and HUD certification required to confirm
    compliance of notice delivery to Homeless providers.

For more information on Property Act reform, please contact Ron Whitley,
GSA Office of Real Property, on (202) 501-1505 or at
ron.whitley@gsa.gov.

***GSA Administrator Stephen A. Perry applauded the bipartisan effort
that led to today\'s House Government Reform Committee\'s unanimous
approval of the Federal Property Asset Management Reform Act of 2002.
According to Perry, \"This property reform bill will provide agencies
with the management tools necessary to effectively manage their
assets.\"***

**[BEST PRACTICES]{.underline}**

**GSA WANTS YOUR REAL PROPERTY BEST PRACTICES!**

*CALL FOR ENTRIES ANNOUNCED FOR REAL PROPERTY INNOVATION AWARD! TOP
PRIZE OF \$10,000 AVAILABLE FOR BEST INNOVATIVE POLICY OR PRACTICE!*

GSA is proud to continue its tradition of honoring Federal real property
policy and management practices innovators. The Call for Entries for the
6th Annual GSA Achievement Award for Real Property Innovation has been
issued.

The Office of Real Property in GSA developed the Innovation Awards to
recognize the successes of the Federal real property community, to
improve communications between real property professionals, and share
the best policies and practices implemented by Federal agencies to
improve management of real property and workplace development.

This award recognizes outstanding accomplishments in two categories:
best innovative policy and best innovative practice. Innovations may
cover any related area - from real property management to acquisition,
construction, sustainable development, renovation, disposal, security,
planning, integrated workplace, and telework. GSA will present a minimum
of two cash prizes of \$5,000 for an individual entry or \$10,000 for a
team entry of 2 or more.

Eligibility is limited to Federal employees only. Policies or practices
initiated or completed within three years of the entry deadline are
eligible. An independent panel of public and private industry experts
will judge the entries. Awards will be presented at a ceremony held on
October 9, 2002.

This program has generated over 200 best practices that can be used by
agencies to improve asset management which are available on our website
listed below. Recipients of last year\'s award included a team from the
Department of the Army for their entry "Sustainable Army Communities." A
team from GSA's Public Buildings Service (PBS) won for their entry
"Linking Budget to Performance."

Three honorable mention entries were also acknowledged for the first
time last year. A team from the Department of Transportation's United
States Coast Guard received recognition for their entry "Shore
Facilities Capital Asset Management." A team from the Environmental
Protection Agency, the U.S. Army Corps of Engineers, and GSA received
recognition for their entry "EPA's New Sustainable Campus." The United
States Postal Service's Denver Facilities Service Office received
recognition for their entry "First Straw Bale Post Office."

The Call for Entries application information and form are available on
our website at: **www.gsa.gov/realpropertypolicy**. This is the second
year in which applicants may easily fill out the application form
electronically on the internet and submit it instantly by email to
GSA\'s Office of Real Property. The deadline for entries is May 30,2002.

This year, GSA will also begin assessing the effect of best practices
identified by this program and utilized by agencies. For more
information, contact Bob Carey on (202) 208-7042, or by email at
bob.carey@gsa.gov.

*\"By listening to, learning from and sharing with other Federal
agencies, we seek to promote the best ideas thereby facilitating
change.\" GSA Administrator Stephen A. Perry*

**[PLANNING]{.underline}**

**GRPIS EXPANDS TO COLORADO; ATLANTA NEXT!**

***What\'s a great way for Federal agencies to share real property
information to help make better asset management decisions? Through
GSA's GRPIS Program!***

**What is GRPIS?**

The Governmentwide Real Property Information Sharing (GRPIS) program
evaluates methods of sharing real property information, leads to better
asset management decisions on a community-wide basis, and encourages and
enlists Federal interagency participation. Interagency councils have
been created or are planned for many major urban or regional areas in
the U.S.

Front Range Forum in Colorado

The Office of Real Property\'s GRPIS program has helped establish a
seventh interagency forum, this one serving Federal agencies in eastern
Colorado. Known as the Front Range Forum, the group held its first
meeting in January 2002. The group identified the following issues for
possible discussion at future meetings:

-   agency experiences with A-76 studies,

-   use of asset management software,

-   changing land uses on Federal property as mission and controlling
    agencies change, and

-   multi-tenancy by Federal agencies in remote locations.

Information Sharing

In addition to quarterly agency meetings in the various GRPIS
communities, the program is using a ListServ tool to share good
practices and information among all of the communities. The ListServ
provides a monthly informational update on useful information, training
and other items of interest to the Federal real property community.

What Communities are Involved?

The GRPIS Team is planning to add two more communities to the network
this fiscal year and is beginning fieldwork in the Atlanta, GA area in
April.

The following communities are currently affiliated with the GRPIS
Program:

-   Heartland GRPIS Forum (greater Kansas City)

-   New Mexico Property Council

-   Federal Real Property Forum - New England

-   Puget Sound Real Property Council

-   Arizona Property Information Forum

-   South Florida Governmentwide Property Information Council

-   Front Range Forum (Colorado)

For information regarding upcoming meetings scheduled for Spring 2002,
or on the GRPIS program, please contact Sheldon Greenberg at (202)
501-0629 or Sheldon.Greenberg@gsa.gov**.**

**[TELEWORK]{.underline}**

**PROCTOR & GAMBLE SHOWS ZEST FOR TELEWORK\...**

(by Theresa Noll, Office of Real Property)

*(SIDEBAR)\
The Office of Real Property collaborated with representatives of Proctor
and Gamble (P&G) and their consultant Kinetic Workplace to provide them
with technical insights on telework and alternative officing. P&G, a
global company, was in the planning stage of their worldwide expansion
and development of their telework and alternative officing program. The
Office provided insights on program issues in areas such as human
resources, facilities, cost analyses, relevant research findings and
technology.*

P&G produces and markets over 300 brands including many household
standbys such as Tide, Pampers, Old Spice and Zest. It\'s no surprise
that a company with so many products for the home would invest in
family-friendly workplace initiatives such as the home office.

The company recently launched an ambitious alternative workplace
initiative. Called FlexWork, the program supports a range of alternative
workplace solutions from telecommuting to hotdesking and hoteling. To
facilitate workplace change, P&G bundled several business services,
including IT, logistics, HR, and facilities, into an integrated service
organization dubbed Workplace Services.

FlexWork at P&G follows a \"bricks to clicks\" strategy developed, in
part through a research project between the Gartner Group and MIT (GSA
was also a participant in the Gartner-MIT consortium). As the number of
employees working virtually increases, the company is reducing its real
estate portfolio. \"We find that we are saving 20 to 30 percent of our
office space,\" says Mary Adams, Associate Director, Global Business
Services, Workplace Futures and head of the FlexWork team.

Read more about P&G\'s FlexWork program and learn how their Singapore
office went virtual. For more about telework, check out the
International Telework Association and Council (ITAC) website at
www.telecommute.org. The entire case study is available to members only
at **http://www.telecommute.org/membersonly/casestudies/pg.shtml**

While you\'re in the Member\'s Only section, check out the Case Study
Index. You\'ll find links to over 90 telework case studies, organized by
industry. For membership information, see
**http://www.telecommute.org/membership/member_registration.html**

(side bar)

**GSA Leads with Major Telework Initiatives**

The Office of Real Property in GSA promotes telework as an innovative
business solution and important management strategy in increasing the
effectiveness of the Federal workforce. The Office is involved with many
major telework initiatives for the Federal government and its employees,
often in collaboration with the private sector. Does your agency need
help implementing a telework program?

-   **Spouse Telework Employment Program (STEP)**

The Office of Real Property\'s telework team partnered with five Federal
agencies to increase private sector employment for spouses of military
personnel and Federal employees, who are frequently required to relocate
in the United States and overseas. An agreement has been initiated to
formalize the partnership of State, Department of Defense, Department of
Labor, U.S. Coast Guard, National Guard Bureau, and GSA to encourage
private businesses to offer teleworking, remote training, and portable
career opportunities to these spouses. Contact Glenn Woodley at (202)
273-4667 for more information.

-   **Interagency Telework Issues Working Group**

The Office\'s telework team partnered with the Office of Personnel
Management and sixteen other Federal agencies to identify teleworking
issues which are in need of clarification and/or revision. The working
group will propose new policies, update existing guidance, and issue a
joint prospectus about teleworking to key Federal officials. Contact
Billy Michael at (202) 273-4663 or Wendell Joice at (202) 273-4664 for
more information.

-   **Technology Barriers to Telework Study**

The Telework Team partnered with GSA\'s Public Building Service (PBS)
and Booz - Allen & Hamilton, Inc., to study the technology barriers that
hamper implementation of teleworking programs in the Federal Government.
Contact Theresa Noll at (202) 219-1443 for more information.

-   **Telework Customer Consultation and Outreach**

The Telework Team provides advice/guidance to agencies about teleworking
and participates in numerous seminars, conferences, and workshops,
including the International Telework Association and Council (ITAC)
conferences, Federal Office Systems Exposition (FOSE) conferences, and
the Symposiums on Employee and Labor Relations (SOELR). Contact Dee
McFadden Wallace at (202) 501-1823 for more information.

**[E REALESTATE]{.underline}**

**E-REALESTATE EXAMINED**

*Are you up on the changes in the way real estate programs are managed
in the private sector using web-enabled software. GSA can help you find
out!*

As part of its leadership role in real property asset management, GSA\'s
Office of Real Property has examined the uses of the Internet in the
management of real estate in the private sector and the Federal
government.

An important element of the Office\'s e-RealEstate study has been the
completion of a short web-enabled survey that was made available to
Federal agencies that have real estate holdings or responsibilities for
the management of real property. GSA completed this survey in December
2001. This e-RealEstate Survey has provided useful feedback to the
Office of Real Property for determining the level of present and planned
uses of Internet applications in Federal Government real estate
organizations.

GSA also held a forum on April 4 to discuss the results of this study,
and hear about the status and direction of the management of real estate
using web-enabled software. It featured several experts from private
industry on e-RealEstate including Fidelity Corporate and FIS, Inc.
Contact Dennis Goldstein at dennis.goldstein@gsa.gov or (202) 219-0608
for more information and the results.

**[FACILITY SECURITY]{.underline}**

**PENTAGON RENOVATION FOCUS OF FEDERAL REAL PROPERTY COUNCIL MEETING**

(Article by Andrea Wohlfeld Kuhn, GSA Office of Real Property)

The Federal Real Property Council (FRPC) met on February 5, 2002 to
continue exploring security and other real property issues. Members
gained insight into the Pentagon renovation program during a special
guest presentation given by Mr. Brett Eaton, Communications Manager,
Pentagon Renovations.

# PENTAGON RENOVATION

# Perspective on the Pentagon

In order to gain a perspective of the scale of the project, Mr. Eaton
likened the Pentagon to a small city, in that it covers 34 acres, has
6.5 million square feet, houses 25,000 personnel, has its own police
force, Metro station, fire station, health facilities, post office, etc.
and is basically equivalent to three Empire State buildings. Yet, in its
60 years, the Pentagon never underwent a major renovation and likewise
suffered from major building systems that were beyond repair. These
included non-compliance with modern building codes and the Americans
with Disabilities Act (ADA), hazardous materials inside and out (at one
point diesel fuel was used to control dust around the building's
exterior), and energy inefficiencies. The Pentagon renovations had begun
prior to September 11, 2001, with the first of five "wedges" almost
complete. The loss of lives was minimized as a result of these
renovations, which included replacement of exterior high-pressure water
lines, a building operations command center, structural steel
reinforcements, and blast resistant windows.

# Pentagon Improvements

The original construction schedule projected completion in 2014.
Congress recognized the need to accelerate this schedule and
appropriated an additional \$300M. The reconstruction effort has been
named "The Phoenix Project," and renovation of the remaining wedges will
be complete by 2010. These renovations will provide further protection
against fire, blasts, and chemical/biological/radiological agents.
Examples of improvements include fire doors, luminescent signs, survival
kits for every employee, increasing the stand-off distance of vehicles
(through rerouting of roads, moving bus drop off points, adding berms,
reinforcing walls, and strengthening corridors, elevators, etc.),
rerouting HVAC units and installing new detection measures. Additional
improvements will include systems selected to enhance survivability,
such as voice telecommunications, network, data, and messaging systems.

Interior space will be developed on a more generic basis in order to
facilitate future reconfigurations of space and changes in tenant
occupancy. In an emergency, this will promote faster egress since
tenants will be familiar with a standard configuration. Handicapped
tenants will benefit from renovations such as new elevators and ramps,
particularly since the existing building doesn't meet ADA codes. The
renovation goal is to exceed ADA standards.

Exterior features include taking historic elements into account, such as
obtaining exterior limestone from the original quarry in order to match
the color, and windows with features that retain the historic integrity
of the original building. Security will be enhanced with the
construction of a new Metro entrance facility that will allow for the
screening of visitors prior to entering the Pentagon. Construction is
now four weeks ahead of the scheduled goal of having the E-ring offices
that were located at the point of impact reoccupied by the one-year
anniversary of the attack.

Find out more about the renovation at the Pentagon Renovation Program
website at: **http://renovation.pentagon.mil.**

# FORMATION OF NEW SECURITY WORKING GROUP

At the September FRPC meeting, FRPC members identified security as the
number one issue the Council will address over the coming year. Gary
Arnold, Deputy Associate Commissioner, Social Security Administration,
who also serves as co-chair of the FRPC, will chair a new Security
Working Group. FRPC members suggested the working group address the
following topics:

-   Study how we work with field and regional offices

-   Compile best practices

-   Develop occupancy emergency plans

-   Involve Washington Headquarters Services

-   Evacuation of disabled personnel

-   Develop a mechanism to transfer information from the **[Interagency
    Security Committee]{.underline}** to agencies (see sidebar)

Any FRPC members or Federal agencies that would like to join the working
group or would like more information, should contact Andrea Wohlfeld
Kuhn on (202) 208-1237.

(sidebar)

**[Interagency Security Committee (ISC):]{.underline}** The ISC was
created through Presidential Executive Order 12977 on October 19, 1995.
Its primary mission is to:

-   establish policies for the security in and protection of Federal
    facilities;

-   develop and evaluate security standards for Federal facilities; and,

-   take such actions as may be necessary to enhance the quality and
    effectiveness of security and protection of Federal facilities.

The ISC is composed of 17 agencies that are considered voting members
and several agency representatives that are nonvoting members. The GSA
Administrator is the ISC chairperson. Since its inception in 1995, the
ISC has discussed numerous items and topics that fell within its
established mission and has published two documents.

-   The first document - [ISC Security Criteria for New Federal Office
    Buildings and Major Modernization Projects]{.underline} - was
    published May 30, 2001. The ISC developed this document as a means
    to ensure that security becomes an integral part of the planning,
    design, and construction of new Federal office buildings and major
    modernization projects.

-   The second document - [ISC Guidelines for Enhanced Entrance
    Controls]{.underline} - was published in the Summer of 2001. This
    document was published to not only support the existing entrance
    controls established by the 1995 Department of Justice Vulnerability
    Assessment of Federal Facilities Report, but to also enhance those
    controls by specifically addressing access procedures involving
    armed law enforcement personnel seeking access to Federal
    facilities.

**[THE WORKPLACE]{.underline}**

**WHAT IS THE EMERGING NEW WORKPLACE?**

(by Mike Bell, The Gartner Group)

***\"Workplace agility has emerged as the single highest
priority\...\"***

A year-long exploration of the emerging new workplace and the services
and products that support this changing environment has yielded a number
of insights about the changing nature of work, the workforce, and the
workplace environment needed to support these new workstyles. These
insights can be found in the report, [The Agile Workplace: Supporting
People and Their Work]{.underline}.

This year-long exploration was led by the Gartner Group and the
Massachusetts Institute of Technology (MIT). GSA, plus 21 private sector
companies, sponsored the initiative and actively participated in the
group\'s work.

While the rate of transformation to the new workplace may be
evolutionary rather than revolutionary, the direction and nature of
change are now clear. And perhaps in light of the September 11, 2001
assault, the rate of change to a more agile and resilient workplace will
be given added impetus to enhance employee safety and business
continuity while conserving enterprise resources during a period of
economic uncertainty.

We have reach a number of fundamental conclusions about the emerging new
workplace and the services and products needed to support it.

**Drivers**:

**Work is becoming more collaborative and team based.** Workers across
the employee spectrum, will increasingly be working in the context of
virtual teams across boundaries of time, space, geographies, and
culture. This trend will accelerate as enterprises restrict travel and
disperse critical operations.

**Workplace agility has emerged as the single highest priority that
underpins workplace services and infrastructure in the new business
environment.** We have concluded that workplace agility is more than
adaptable work environments and user controlled applications. It is a
workplace that is constantly transforming, adjusting, and responding to
and enhancing organizational learning. The workplace must become a
laboratory of human innovation. This notion of co-invention between the
workforce and workplace makers is a radical departure from the concept
of workplace as a pre-determined, standardized and stationary envelope
for work. It envisions workplace services and settings as extensions and
components of the work itself that interact dynamically, not passively
in the work process.

**The workforce is changing relative to expectations about their work
and the relationship they have with their employees and colleagues**.
People are increasingly seeking meaning and purpose in their work and
will expect a workplace that facilitates and supports communities and
collaboration and a work environment that offers flexibility and choice.

**The connected economy has resulted in a shift in power from large
monolithic organizations to individuals both as consumers and
employees.** This power-shift demands new leadership styles that are
inspirational, supportive and facilitative, not autocratic and
directive. And it requires a workplace (both physical and virtual) that
is more egalitarian, more adaptive, and socially engaging.

**There is another major shift in the workplace from a focus on places
and assets to individuals and groups.** This re-orientation to a people
centric paradigm changes the essence of work environments and services.
While enterprises must continue to manage their portfolio of assets
judiciously, there is increasing evidence that the workplace must flex
and support individuals and groups in dynamic, adaptive, and multiple
modes. No one size will fit all. And the boundaries that define the
workplace: space, time, and culture will increasingly become permeable.
Work must be supported anytime, anywhere.

**Organizational Response**

**The ownership of workplace services and environments must increasingly
be a shared accountability.** The emerging synergy between people,
systems, and settings requires a multi-disciplined planning and
management system that integrates the domains of human resources,
information systems, and facilities. The costs of fragmented decision
making and siloed management accountabilities result in enormous waste
and lost opportunities. The need for integrated workplace planning and
management has been know for the last decade, however, we believe it is
now an urgent enterprise priority in light of the new and uncertain
environment.

**Information technology is still highly fragmented, complex, and
user-unfriendly. It is also expensive and difficult to adapt to
enterprise needs and user requirements**. But the advent of portal
technology yields the promise that applications will be more
interoperable, integrative, and adaptive to user needs in the
foreseeable future. As collaborative applications become more robust,
and ubiquitous, we see a continuing trend toward moving work and work
processes into a technology mediated virtual environment. Virtual teams
will need and demand virtual work systems; and with greater enterprise
immobility at least in the short term, these applications will develop
more rapidly.

**We have affirmed our hypothesis that the workplace has become in fact
a bundle of services that include the full range of occupancy,
connectivity, procurement, work tools, and other services that support
the individual and group needs of the workforce both in their work and
worklife.** This emphasis on a service paradigm is the essence of the
shared services movement in global business. This service paradigm is
grounded in principles of customer focus, competitive value
propositions, market based pricing, and benchmarked service levels
against best-in-breed competitive offerings. Workplace services has
lagged other enterprise service offerings such as financial and
accounting services, but this is changing. Employee self-service is an
emerging and rapidly evolving set of applications in the software market
that will further enhance the workplace services paradigm.

**We have affirmed the need for more integrative costing models that
support integrative workplace management organizations and systems.**
Fragmented budgets will continue to be sub-optimized, and the adoption
of integrated costing models like Enterprise Total Cost of Ownership
(ETCO), or workpoint accounting will result in more astute investment
and cost allocation in workplace transformation initiatives. It will
also sharpen the value proposition of externally provided services and
lead to more competitive offerings.

**Change management must urgently become an enterprise core
competence.** Workplace transformation is perhaps the most challenging
and difficult initiative within the enterprise. It challenges strongly
held beliefs about management roles and prerogatives. It challenges the
notion of workplace as entitlements and prerequisites. It threatens
notions of hierarchy and authority. And it challenges the essence of
work itself, and how best to enhance and facilitate purposeful,
innovative, and value creating output and outcomes. But now in this new
environment of global terror and global recession, it is now a
fundamental business imperative. Change management must urgently become
an enterprise core competence.

**Industry Response**

**The workplace industry is still in its formative stages.** Technology
adoption in the traditional property and construction industry has been
slow. Most of the web based business models over the last two years have
either failed or been consolidated. But we have observed promising
innovations both in services and technology applications that may
rapidly evolve in the next several years. There will be continuing
innovations in portfolio management and services. Information systems
that enhance service delivery and efficiency will be particularly
popular. The consortiums like Octane and Constellation will be major
engines of both investment and innovation. And the move toward data
standardization will greatly facilitate the move toward web-based
applications and services in support of workplace making and management.
There are tremendous opportunities in the workplace industry for
breakthrough products and services to support these new workstyles and
workforce needs. It is still a question on where market innovations will
emerge.

**There are distinct best practices in progressive workplace management
that have resulted in significant cost efficiencies and more productive
and effective organizations.** The sponsors of this study represent
industry leaders and their stories offer valuable insights on how to
govern, manage, and deliver effective workplace services.

**Bottom Line**: If anything this project has laid out a management
doctrine for enterprise resiliency. For now a workplace that is
distributed, connected, adaptable, flexible, serviced, and enabled, and
moves seamlessly between space and cyberspace is not only the source of
huge competitive advantage; it may now be a matter of enterprise and
organizational survival.

(sidebar)

**[THE AGILE WORKPLACE: SUPPORTING PEOPLE AND THEIR WORK]{.underline}**

Report Ordering Information

To order copies of this publication:

1\. Pricing: \$45/single copy; \$38/10-50 copies; \$25/over 50 copies

2\. Order Addess:

Row Selman

Massachusetts Institute of Technology

Department of Architecture

77 Massachusetts Avenue, 10-491M

Cambridge, MA 02139 USA

3\. Phone (617) 253-7494

4\. Email Address: rowsel@mit.edu

5\. Payment Requirements (check only, no POs or credit cards)

Please make payment BY CHECK ONLY, to [Massachusetts Institute
of]{.underline}

[Technology]{.underline}. Orders shipped upon receipt of payment in
full. Allow 6-8

business days for shipment.

Also, check out the website, **www4.gartner.com/Init** for more
information about the report.

**IF WALLS COULD TALK**

*WHAT OFFICES SAY ABOUT COMPANIES.*

(from "Haworth Next Space", Fall 2001, a quarterly publication by
Haworth Furniture)

***Your office has a big mouth. That's right --- the place you go to
work every day is constantly dishing out juicy information about your
company's values, priorities, tastes and ambitions.***

Many companies are quite aware. They use their buildings like giant
brochures directed at customers, prospects, employees and investors. But
many other companies still do very little to control what their spaces
communicate. Apparently, the managers of these places are deaf to the
language of workspaces. Either that or they've got earplugs in.

Diane Hoskins knows a thing or two about designing workplaces. She's a
managing partner of Gensler, the world's largest office design firm.
According to Hoskins, the "design of the workplace is a new kind of
business...it becomes more about enabling business dynamics than about
crafting office aesthetics. "Designer Justin Henderson agrees. In his
book *Workplaces and Workspaces: Office Designs that Work*, he says,

"Designs make corporate images. They inspire workers. They impress
potential clients and visitors. They make business work better. They
help shape corporate cultures and all who come in contact with them."

Another way to view your workplace is as a tremendous branding
opportunity. After all, offices are essentially the packages that
companies wrap themselves in. And when you look at it this way, all
those big ideas about how companies should brand themselves suddenly
relate to how you should design your space. (*Now* you\'ve got your
reading cut out for you!)

The ways to make your offices communicate are limited only by your
imagination and your budget. But architecture and furniture selection
are two of the strongest vocal cords in the workplace larynx. And in the
past 10 years or so, architects have intensified their efforts to
reshape the *interiors* of commercial properties, whereas they used to
let exteriors do most of the talking.

Facilities managers have come a long way in the past 10 years, as well.
So says Chris Kearns, who works for Haworth insideOut, a group that
offers holistic work space ideas and helps customers get the most from
their furniture investment. "Facilities managers are definitely better
educated now," he says, "and they more clearly understand the issues
that impact the people who work in their companies." Chris attributes
this progress to the surge of dotcoms and software development firms ---
companies that set up their spaces very differently and led an interior
design revolution of sorts. "The economy in the past five years has done
a lot of good things for corporate spaces," Chris says. "Even if the
economy continues to soften, I don't think we'll completely revert back
to where we were before."

Most companies' spaces speak the loudest to the people who work there.
So insideOut works with customers to help them understand what their
spaces are saying to their staff. According to Chris, this communication
often boils down to the respect and appreciation that employees feel
based on the environments they're given. "During my client visits
lately, I'm hearing a lot about privacy concerns, access to natural
light, and a desire for more user control of the work space, "Chris
says. "These are three of the top work space issues right now. And I
think they have a lot to do with how people feel about their jobs."

***Your workplace speaks volumes about what's really going on inside
your company. And while no one can silence the grapevine, you can have a
lot to say about what the walls are whispering.***

**EXPLORE WORKPLACE ISSUES WITH W4!**

(by Ray Wynter, Office of Real Property)

The WorldWide Workplace Web (W4) is an international forum of public
sector real property professionals. It provides a unique learning
environment for the next generation of executives in public sector
organizations worldwide by facilitating collaboration, sharing best
practices and discussing issues of common concern, including the
workplace.

In addition to offering great networking opportunities, the W4 annual
conferences

introduce participants to speakers from around the globe, many of them
leaders in the diverse fields of real property. Between conferences,
participants can use the network to seek help in resolving problems,
share research initiatives and find partners for collaborative ventures.
Sponsoring organizations gain through development of their future
executives and access to a wealth of new ideas.

The Office of Real Property\'s Stan Kaczmarczyk, Innovative Workplaces
Division Director, is an active W4 member and participated in the 2001
WorldWide Workplace Web conference in Vancouver, British Columbia,
*"Workplace of the Future."* This conference stimulated discussions on
what other nations are doing with alternative work arrangements,
innovative officing strategies, connectivity, and other related issues.

We encourage you to visit W4 on **www.w4web.org** to build a network of
contacts and future partnership possibilities on workplace issues.
Contact Ray Wynter at (202) 501-3802 or by email at ray.wynter@gsa.gov.

**[SUSTAINABILITY]{.underline}**

**IS SUSTAINABILITY IMPORTANT IN THE VIRTUAL WORKPLACE?**

*GSA plans new sustainability initiative to address all workplaces!*

GSA\'S goal is to make people aware of the workplace from a sustainable
perspective -- the importance of creating healthy work environments in
conventional office settings and [virtually]{.underline} anywhere.

This new initiative by the Office of Real Property will be a follow-up
to the "GSA Real Property Sustainable Development Guide," which served
as an introduction to the concept of sustainable development and its
importance to the Federal workplace. With the new initiative, two new
publications are planned: \"The Sustainable Workplace" and "The Virtual
Workplace." Both are scheduled for completion in December 2002.

The emphasis of \"The Sustainable Workplace" will be on transforming
your organization into a more sustainable business enterprise by
increasing awareness of their environmental impacts and creating healthy
and productive facilities. Results of the planned Office of Real
Property Sustainable Development Workshop will be presented. A
sustainable approach to the workplace looks at how we work and where we
work in order to provide the best support for accomplishing an
organization's mission and, in turn, to create a "high-performing"
environment for an organization's most important asset: its people.

As discussed in "The Real Property Sustainability Development Guide,"
how we develop the workplace greatly influences the well-being and
functioning of employees and the organization itself. The Office of Real
Property\'s other publication, "The Integrated Workplace: A
Comprehensive Approach to Developing Workspace," highlights the need for
cost-effective, flexible, efficient office environments that enhance
productivity and attract and retain a quality workforce. One of our
other publications, "People and the Workplace," expanded on the
Integrated Workplace concept with new perspectives on alternative work
environments.

\"The Virtual Workplace" publication will address issues confronting
organizations as they consider alternative work environments. It will
examine topics such as integrating alternative officing strategies into
today's workplace and present new ideas and case studies on the subject.

Our intended audience is Federal managers interested in putting into
practice, sustainable, high-performing workplaces. While the primary
audience will be real property and facilities management professionals,
individuals involved in human resources and information technology, as
well as other functional areas, will also benefit from learning more
about the concepts expressed in the publications.

Contact Joanne B. Shore on (202) 273-4668 or joanne.shore@gsa.govfor
more information on this initiative.

**SUSTAINABLE RECAPITALIZATION PLANNING FOR PUBLIC BUILDINGS**

(provided by J. Herz, Office of Real Property)

*Over the next 25 years the Federal government will spend more money and
use more resources to operate, maintain, and recapitalize existing
facilities than on building new ones.*

Although much attention of the last few years has been spent on
developing environmentally sustainable and energy efficient design
standards for new construction, little has been done to incorporate
these concepts into recapitalization efforts. Yet, over the next 25
years the federal government will spend more money and use more
resources to operate, maintain, and recapitalize existing facilities
than on building new ones. The Logistics Management Institute (LMI), a
nonprofit, public-sector management consulting firm, is developing a
systematic approach to integrate sustainable building and lifecycle cost
analysis concepts into the recapitalization budget planning process for
Federal facilities.

Typical recapitalization approaches assume that building materials and
equipment will be replaced with "like" materials and equipment. Typical
approaches also focus solely on achieving or maintaining certain
facility condition levels without regard to lifecycle costs or
environmental impact.

LMI's Energy and Environment Group is developing an approach that
incorporates green building design concepts into the recapitalization
planning process. The approach identifies opportunities for
recapitalizing with cost-effective, environmentally-preferable materials
and equipment. The approach uses the Army Corps of Engineers SPiRiT or
the US Green Building Council's LEED™ Green Building Rating systems to
measure buildings' sustainability. It allows decision makers to compare
the lifecycle costs of recapitalizing the facility with like materials
and equipment with lifecycle costs for alternative 'green' approaches,
and to estimate the impact that specific recapitalization decisions will
have on the facility's SPiRiT or LEED score.

For more information about this approach, contact Mr. Emil Dzuray at the
Logistics Management Institute on (703) 917-7013 or e-mail
edzuray@lmi.org.

**[REGULATORY CHANGES]{.underline}**

(by John D. Thomas, Office of Real Property)

# REAL PROPERTY INVENTORY REGULATION GOES FINAL!

# 

REAL PROPERTY INVENTORY REGULATION TO BE PUBLISHED AS FINAL RULE. On
October 25, 2001, GSA Administrator Stephen A. Perry signed Federal
Management Regulation (FMR) Part 102-84, entitled "Annual Real Property
Inventories." The regulation was published as an interim rule in the
Federal Register on November 2, 2001 and will be published shortly as a
final rule without change. This culminates work begun in FY 1999 in
concert with the Corps of Engineers, the Department of Energy, and the
Department of the Interior, when the Office of Real Property began
conducting a comprehensive review of the policies in the existing
Federal Property Management Regulation (FPMR) Part 101-3, also entitled
"Annual Real Property Inventories."

In addition to rewriting the regulation in plain language, the review
focused on improvements to make the real property inventory program more
useful, and to enable Federal agencies to manage their real property
inventories more effectively. Most significant of the improvements
involve eliminating the use of paper forms in order for all agencies to
submit real property inventory data electronically and ensuring that the
regulation is consistent with current Government accounting standards.
Contact: John D. Thomas on (202) 501-0365 for more information.

**GSA UPDATES THE GENERAL REFERENCE GUIDE FOR REAL PROPERTY POLICY.**

The Office of Real Property is updating the General Reference Guide for
Real Property Policy, originally published in April 1998, to reflect the
addition of new laws, executive orders, and regulations that impact real
property management. In the past, the guide has provided an
easy-to-understand reference of legal authorities, by subject area, that
are applicable to GSA and Federal agencies to whom GSA real property
management and operations have been delegated. The updated General
Reference Guide for Real Property Policy is in the final stages of
review and will be issued shortly. Contact: Iona Calhoun on (202)
501-0821 for more information.

**[ELECTRONIC INVENTORY]{.underline}**

**RETOOLING THE WORLDWIDE INVENTORY**

(by Carol Anadale, Office of Real Property)

*How to effectively manage the 3.2 billion square feet in the
Governmentwide space inventory? Federal asset managers need a real
property tool to manage their portfolio assets and which will, in the
process, improve data accuracy and reporting timeliness. The \"new\" WWI
will be this tool!*

How will this come about? Well, to start with, the General Services
Administration (GSA) prepares the Worldwide Inventory (WWI) report on
real property owned by or leased to the United States Government.

The WWI report is based on annual reporting by agencies from a variety
of electronic and manual real estate data systems. Two years ago, the
WWI Internet Application (WWI-IA), an Internet application tied to an
Oracle 8.0 database that can be accessed via the web, was developed. It
captures information on installations, land, buildings, and other
structures. The system permits users to enter new records, modify
existing records, and generate reports. The WWI-IA was developed to give
the capability of updating data and entering new data in real-time and
to \"enforce\" integrity and data validation rules.

GSA continues to receive a large number of requests for real property
information from members of Congress, from Federal agencies and from the
general public, many of which cannot be answered using the WWI. We have
therefore concluded that the Worldwide Inventory needs to be enhanced.
The proposed approach will make the WWI Inventory a valuable real
property asset management tool that asset managers will find useful and
useable, and which will, in the process, improve data accuracy and
reporting timeliness.

In this regard, GSA is undertaking a comprehensive review of the
Worldwide Inventory, including the processes and databases that support
the WWI. GSA plans to establish an effective transition to a
technologically enhanced platform for tracking the Federal Government's
real property assets. The enhanced system is intended to provide current
information to all stakeholders, including Congressional members and
staffs, and Federal agencies and citizens regarding Federal holdings, in
a real-time environment. And it is intended to assist agencies in
managing their real property assets and in effectively meeting their
stewardship responsibilities.

Federal agencies are assisting in this initiative, which we are calling
the Retooling of the Worldwide Inventory, and agency staffs are
assisting GSA during this process. In light of these efforts to improve
the WWI, we requested and received the agreement of the Office of
Management and Budget to suspend the production of the FY 2001 Summary
Reports so that maximum effort can be devoted to the development of a
re-tooled WWI.

[NEWSROOM]{.underline}

Burton New Advocate for BOMA. BOMA International provides a network
forum for industry professionals to discuss mutual problems, exchange
ideas and share experience and knowledge in the commercial real estate
industry. W. Ronald Burton leads the charge as the new Executive
Director of Advocacy and Research Advancement. Mr. Burton will lead
legislative, regulatory, and code making efforts. *"Ron Burton brings
in-depth knowledge to the advocacy and research areas of real estate.
His industry experience, staff leadership and advocacy skills will
ensure that BOMA will continue building and strengthening its presence
at all levels of government\" says BOMA Chief Staff Executive Henry
Chamberlain, CAE, APR.* (find out more at BOMA's website www.boma.org)