# Presentation: 207876

## E.O. 13327 Real Property Asset Management

***                                                 ******	******Edward Reilly***
***	******	******                 ******	******DeputyDirector, Facilities Division***
***                                                      ******February 7, 2006***

## Background

***E.O. 13327 signed on February 4, 2004***
***Program Initiative on President’s Management Agenda***
***FY 2005: Developed USDA, AMP with ARS Building Block Plan (BBP)***
***FY 2006-2009: Update and Implement the AMP and BBP ***
***FY 2009: Target Completion Date***

- Executive Order 13327

## ARS Inventory

***Land******	******	******	******393,420 acres***
***Buildings******	******	******	******3,200 (13.5 million sq ft)***
***Structures******	******	******1,500***
***Acquisition Cost******	******$632 million***
***Replacement Cost******	******$4 billion***
***                                      ***

- Executive Order 13327

## Facility Budget 

***FY 2005***
***O&M Costs    ******	******$178,699,540  ($13.19/gsf)***
***B&F ******	******	******$186,335,296******	******	***
***Life-Cycle Costs***
***15% Design & Construction***
***85% O&M ******	***

- Executive Order 13327

## Operation & Maintenance

***Operation & Maintenance ****costs are those required for the operation, repair and maintenance necessary to keep a facility in good working order.  It includes minor repairs, regularly scheduled adjustments and inspections, preventative maintenance tasks, and emergency response and service calls.*

- Executive Order 13327

## Modernization & Restoration

***Modernization**** includes alternations of facilities solely to implement new or higher standards, to accommodate new functions, or to replace building components that last longer than the facility itself.*
* *
***Restoration**** includes repairs to restore facilities damaged by inadequate sustainment, excessive age, acts of war, natural disaster, or fire.*

- Executive Order 13327

## Sustainment

***Sustainment ****costs are those required for O&M and M&R activities necessary to keep a typical inventory of facilities in good working order over an expected service life.  It includes major repairs or replacement of facility components, regularly scheduled adjustments and inspections, preventive maintenance tasks, and emergency response and service calls for minor repairs.*

- Executive Order 13327

## USDA Scorecard

***USDA Asset Management Program***
***   ******Scorecard as of Dec. 31, 2005***
***	******-  ******Red****** – Current Status***
***	******- ******Green****** – Progress in Implementing ***
***        ******President’s Management Agenda***

- Executive Order 13327

## E.O. Strategic Objectives

***AMP must address USDA’s plans for:***
***Right-sizing real property assets***
***Eliminating under-utilized facilities***
***Improving mission critical facilities***
***Managing assets effectively***

- Executive Order 13327

## E.O. Strategic Objectives

***OMB wants USDA to:***
***Centralization of Processes***
***Use Data to Measure Effectiveness***
***Monitor agency effectiveness in meeting AMP goals and objectives***
***Hold agencies accountable***

- Executive Order 13327

## ARS Scorecard

- Executive Order 13327

## ARS Scorecard

- Executive Order 13327

## FY 2006 Reporting Requirements

***University Occupied Space***
***Data Cleanup***
***Leased Property***
***Structures***
***Outgrant Indicator***
***Restrictions on Land***
***Performance Measures***

- Executive Order 13327

## Performance Measures

***ARS Working Groups:***
***Utilization Index (Archie Tucker)***
***Condition Index (Bob Serrano) ***
***Annual Operating Costs (Mike Wiggett)***
***Mission Dependency (NPS)***

- Executive Order 13327

## Utilization Index

***Laboratory & Office Facilities***
***(Floor/Room Usage on the Building Screen)***
***Identify the Predominate Usage (Lab, Office, etc.)***
***Total Square Feet Occupied***
***Number of Personnel (Office) or SY (Lab) ***
***Number of Workstations (Design Capacity)***
***Office – No. of Offices/Workstations Available***
***Lab – Design Capacity (SY)***

- Executive Order 13327

## Utilization Index

- Executive Order 13327

## Utilization Index

***Warehouses  ****(Building Screen, Detail Cont. tab)*
***Design Capacity (Square Feet)***
***Occupied Capacity (Square Feet)***
***Percentage Used***
***Housing/Quarters**** *
***Design Capacity (Gross Square Feet)***
***Occupied (Gross Square Feet)***
***Not Occupied (0 Square Feet)***

- Executive Order 13327

## Utilization Index

- Executive Order 13327

## Utilization Index

***FY 2006 Task: ***
***Capture University Space in CPAIS***
***Property Record***
***Utilization***
***Cleanup FY 2005 Occupancy Data for ***
***    ******Office, Laboratory, Warehouse, Quarters***

- Executive Order 13327

## Condition Index

* ****Reported annually***
***Ratio of repair needs to plant replacement value (Percentage) . ***
***Repair amount necessary to substantially restore asset to its original design intent. ***
***Replacement value at today’s standards.  ***
***Challenges:***
***Data not currently captured – Whitestone ***

- Executive Order 13327

## Facility Modeling

***Award date - September 29, 2005***
***Data/models for:***
***Sustainment***
***Capitalization (M&R)***
***Operating cost***
***Facility Condition Index (FCI)***
***Organization Assessment (Headquarters)***

- Executive Order 13327

## Milestones For Contract

***Site Visits          (****Nov. 2005 - March 2006)*
*Wyndmoor, PA  **	**	**(11/15-18/2005)*
*Athens, GA **	**    **	**(12/19-21/2005)*
*Beltsville, MD**	**	**(01/03-20/2006)*
*Ames, IA**	**	**	**(01/16-20/2006)*
*Clay Center, NE**	**	**(01/23-27/2006)*
*Stoneville, MS**	**	**(02/13-15/2006) *
*Mississippi State, MS**	**	**(02/16-17/2006)*
*Corvallis, OR**	**	**(03/06-08/2006)*
***First Draft of Data & Report April 2006***
***Final Data & Report May 2006***

- Executive Order 13327

## Condition Index

***CPAIS will be modified***
***Facility Modeling will be used:***
***FY 2006 & FY 2007 Reporting Requirements***
***To Benchmark Industry Standards***
***Ultimately Area Engineer/Facility Engineer to update data by asset***

- Executive Order 13327

## Condition Index

- Executive Order 13327

## Annual O&M Costs

***Reported annually***
***Recurring maintenance and repair costs***
***Utilities (includes plant operations & energy)***
***Cleaning and janitorial (pest control, refuse, recycling operations)***
***Roads/grounds (ground maintenance, landscaping, and snow & ice removal)***
***Challenges:***
***Data not currently captured by asset***

- Executive Order 13327

## Annual O&M Costs

***USDA Proposal:***
***OCFO will identify O&M costs by BOC***
***FY 2006-2007: Location O&M costs prorated to asset by gross square footage or other methodology ***
***FY 2008: CPAIS to be modified to accept Costs and Usage Data***

- Executive Order 13327

## Annual O&M Costs

***ARS O&M Working Group Proposal:***
***Areas to establish O&M Accounting Code(s) ***
***LAO to assign and track O&M cost by asset***
***FY 2006: Location O&M costs prorated to asset by gross square footage ***
***FY 2007: Location O&M costs prorated to asset by location formula***

- Executive Order 13327

## Mission Dependency

***Report Annually***
***The value an asset brings to the performance of a mission***
***Three Options***
***Mission Critical***
***Mission Dependent, Not Critical***
***Not Mission Dependent***
***FY 2005 – Department used Critical Asset List to identify Mission Critical facilities***

- Executive Order 13327

## Mission Dependency

***CPAIS will have four questions:***
***1.  If this asset were eliminated, could the unit’s goals and objectives still be met? ***
***Yes or No***
***2.  If this asset were eliminated, would the health and safety of the public or Agency employees be at substantially increased risk?***
***Yes or No***

- Executive Order 13327

## Mission Dependency

***CPAIS questions (continued):***
***3.  Is there a more cost-effective asset, process or procedure that can be substituted to meet the function of this asset?******  Yes or No***
***4.  Is this asset’s primary purpose to provide emergency services or for national/local security purposes? ******Yes or No***

- Executive Order 13327

## Mission Dependency

***CPAIS questions (continued):***
***Mission Critical:        A “No” to Q1 and ***
***	******	******	******	******	******A “Yes” to Q2 or Q4.***
***Mission Dependent,***
***Not Critical:******	******          A “No” to All Qs.***
***Not Mission ***
***Dependent:                 A “Yes” to Q1 or Q3 ***

- Executive Order 13327

## Disposition Index

- Executive Order 13327

## QUESTIONS?????http://www.afm.ars.usda.gov/realproperty/assetmgmt.htm

- Executive Order 13327