# Presentation: 357247

## E.O. 13327 Real Property Asset Management

- AFMC Meeting
- August 17, 2005
- Edward T. Reilly
- Deputy Director
- Facilities Division

## Background

- E.O. 13327 signed on February 4, 2004
- Program Initiative on President’s Management Agenda
- Applies to Real Property:
- 	 -Owned
- 	 -Leased; or
- 	 -Managed by the Federal Government

**Notes:**
Purpose of EO to improve the overall management of Federal real property assets on a Government wide level. 
Excludes public domain land and land reserved/dedicated for national forest.   

## E. O. Major Provisions

- Federal Real Property Council (OMB)
- Senior Real Property Officer
- Glenn Haggstrom, OPPM
- USDA Real Property Council
- Jim Bradley
- Real Property Working Group
- Pat Barry

**Notes:**
Discussion to focus on AMP and RP PMs

## USDA Asset Management Plan

- USDA Asset Management Program
**Prepared by CRI/VISTA**
**2****nd**** draft has been reviewed by OMB**
- 5 Building Block Plans
**4 Landholding Agencies**
**5****th**** Plan for Non-Landholding Agencies**
- August 25, 2005 Final Draft of ARS BBP
- September 1, 2005 Due to OMB

**Notes:**
Discussion to focus on AMP and RP PMs

## ARS Asset Management Plan

- CRI/VISTA
- FD Staff
**Ed Reilly****	****Rommy Ignacio****	****Donna Forbes**
**Ira Craig****	****Judy Morrison****	****Terry Rupe**
- Performance Measure Working Groups
**Utilization Index (Archie Tucker)**
**Operation & Maintenance (Mike Wiggett)**
**Condition Index (Bob Serrano)**
**Mission Dependency (NPS)**
- Contract for Facility Modeling

**Notes:**
ARS has no O&M program in place.
When new buildings are funded, usually no consideration for future O&M costs. 4% of program funds for R&M is sometimes waived because scientists want  more dollars for the bench.  
Crisis management mentality 

Facility Condition surveys are not periodically performed on our assets.  

Many times Chillers, HVAC, Roofing, boilers replaced before life expectancy of operation due to lack of maintenance. 

## Facility Modeling

**Condition Index**
**Repair Needs to Plant Replacement Value**
**How to determine Repair Needs****	**
**Modeling**
**Inspection of 10% of ARS Assets**
**Create ARS specific models**
**Confirm models against other Government agencies and Industry Standards**

**Notes:**
Draft plan is made up of 5 sections.  Includes Performance measures in Section 4

Draft USDA AMP and strategy to implement PM is due to OMB by 3/31/05.  Final due 6/30/05.  Department to meet with FD on 2/11.  

## Facility Modeling

**Estimated Deferred Maintenance**
**Forecast Maintenance **
**Estimated Operational Costs**
**Recapitalization**

**Notes:**
Draft plan is made up of 5 sections.  Includes Performance measures in Section 4

Draft USDA AMP and strategy to implement PM is due to OMB by 3/31/05.  Final due 6/30/05.  Department to meet with FD on 2/11.  

## Facility Modeling

**Contract Award (Sept. 2005)**
**Onsite Inspection of ARS Facilities (January-March 2006)**
**Ames, IA**
**Parlier, CA**
**Stoneville, MS**
**Wyndmoor, PA**
**Draft Report (April 2006)**
**Final Report (May 2006)**

**Notes:**
Draft plan is made up of 5 sections.  Includes Performance measures in Section 4

Draft USDA AMP and strategy to implement PM is due to OMB by 3/31/05.  Final due 6/30/05.  Department to meet with FD on 2/11.  

## Reporting Requirements

**23 Data Elements**
- Replacement Value
- Restrictions
**4 Performance Measures**
- Utilization Index (Archie Tucker)
- Condition Index (Bob Serrano)
- Mission Dependency (NPS)
- Annual Operating Costs (Mike Wiggett)

**Notes:**
First tier Performance Measures (4)
Targets or goals for each measure will initially be set by each agency/department. Agencies may initially report on a facility or other building block level until the capability  for asset-level reporting is achieved.    

Judy Morrison and Donna Forbes are working on the subgroup to decide how Performance Measures will be determined and measured.  Develop a strategy for implementation.   

## Utilization Index

**Calculated Annually**
**Percent utilized on a scale of 0%-100%**
**Categories are over-utilized, utilized, under-utilized, not utilized**
**Calculate by type of facilities (lab; office; warehouses; hospitals; and housing)**
**Challenges:**
**Data not currently captured by asset**
**Single facility contains both lab & office space**
**Keeping information up-to-date **
**   **

**Notes:**
General Measure of usage.
Flexibility in judgment for determining current design capacity. 
Additional types of facilities are to be added in the future.  

Laboratories: 
          Over-utilized >85%, 
          Utilized 60-85%,
          Under-utilized 30-60%, 
          Not utilized <30%)

## Utilization Index

**Laboratory & Office Facilities**
**Floor/Room Usage (Lab, Office, Storage, etc.)**
**Occupancy**
**Capacity **
**Warehouses**
**Capacity**
**Percentage Used**
**Housing/Quarters**
**Occupied or Vacant**

## Condition Index 

**Calculated 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 by asset**

**Notes:**
*a general measure of the condition of a facility at a specific point in time. Calculated on a scale of 0-100%.  
*Repair needs is the amount necessary to ensure that a constructed asset is restored to a condition substantially equivalent to the originally intended and designed capacity.
*Each asset should have a CI.  But agencies will initially have the flexibility to define asset (ie a logical group of facilities).  

## Condition Index

-   CPAIS will have to be modified
-   Area Engineer to collect data by Facility
-   Facility Modeling will be used:
**FY-06 & FY-07 Reporting Requirements**
**To Provide Industry Standards**

## The value an asset brings to the performance of a mission

NPS to Evaluate Capitalized Facilities
Mission Critical
Mission Dependent, Not Critical
Not Mission Dependent

- NPS to Evaluate Capitalized Facilities
- Mission Critical
- Mission Dependent, Not Critical
- Not Mission Dependent

- Mission Dependency

**Notes:**
Mission Critical: without asset, mission is compromised
Mission Dependent, Not Critical: does not fit into Mission Critical or Not Mission Dependent.
Not Mission Dependent: mission unaffected
ARS developed a list of priority programs after 9/11 however, this process may not apply to assets.
Each agency will determine mission dependency for each RP asset (facility or group of facilities)

## Annual Operating and Maintenance 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**

**Notes:**
Utilities (includes plant operation & energy) but not telecommunications 
Will need to meter each asset
In the future will have to include security costs.

## Annual Operating and Maintenance Costs

**Area Offices to establish O&M Accounting Code(s)**
**FY-05-06: Location O&M costs prorated to asset by gross square footage **
**FY-07: CPAIS to be modified to accept Costs and Usage Data**
**LAO assign and track O&M cost by asset at the Location**

**Notes:**
Utilities (includes plant operation & energy) but not telecommunications 
Will need to meter each asset
In the future will have to include security costs.

## Uses the four previous performance measures as a decision tool. 
Report the index for the 5 types of facilities 
Laboratories
Office/Administration space
Warehouses
Housing
Hospitals
Annual Report submitted Nov 15

- Report the index for the 5 types of facilities
**Laboratories**
**Office/Administration space**
**Warehouses**
**Housing**
**Hospitals**
- Annual Report submitted Nov 15

- Disposition Index

**Notes:**
Algorithm Spreadsheet using the four previous performance measures.
Based on weighted scores for each asset, agencies to decide to
Maintain facility
Upgrade facility
Dispose of facility.  
 Targets or goals for each measure will be initially set by each agency in consultation with OMB.  

## QUESTIONS?