# Presentation: 823319

## Real Estate Management

A PLAN FOR THE FUTURE

**A PLAN FOR THE FUTURE**

- Office of Engineering and Construction Management

## Purpose
Redefine the role of the Certified Realty Specialist
Clarify the lines of authority

- Redefine the role of the Certified Realty Specialist
- Clarify the lines of authority

- Office of Engineering and Construction Management

## Authorities
DOE has broad authority to transact all of its real estate management needs. 
DOE Delegations of authority are not current, consistent or standard for real estate management throughout the Department.
MA-1 delegation of 27 Sept 2007 has not been sub-delegated
Application of execution authority is also inconsistent from site to site.

- DOE has broad authority to transact all of its real estate management needs.
- DOE Delegations of authority are not current, consistent or standard for real estate management throughout the Department.
- MA-1 delegation of 27 Sept 2007 has not been sub-delegated
- Application of execution authority is also inconsistent from site to site.

- Office of Engineering and Construction Management

## DOE Real Estate

- CONGRESS

- Atomic Energy Act of 1954

- Energy Reorganization Act of 1977

- Secretary of Energy

- Director, Office of Management

- Senior Real Property Officer
- Director, OECM

- Site Managers

-  **Leasing**

-  **R.E. Acquisition**
** ****Leasing**
** ****Disposal**

- National Defense Authorization
- Act of 1998

-  **Environmental Indemnification for **
**Disposal**
** ****Economic Development Disposal**
** ****No cost transfer to recipient**

- _Color Code_
-  Legislation
-  Authority
-  Activity

- Senior Realty Officer

- Certified Realty Specialists

- Defense Authorization Act for FY 1994
- (HALL AMENDMENT)

-  **Lease Excess DOE Property**
**at reconfigured or closed DOE sites**
**Retain proceeds**

- CURRENT

- Delegations to sites “grandparented” pending resolution of sub-delegation

- NNSA has separate
- And Total Combined
- Delegated Authority For
- Real Estate

- Office of Engineering and Construction Management

## CURRENT REAL ESTATE ISSUES
Changes to DOE O 430.1B (9/3/04) reduced the role of the Certified Realty Specialist (CRS) from an “executor” under 430.1 (8/24/97) to that of “ a reviewer and approver” prior to contract execution.
CRS position was originally established to be that of a Contracting Officer for real estate.
Delegations directly to sites have resulted in inconsistent application of execution authority at different sites.
There are no oversight and review thresholds for various real estate actions across the Department, resulting in inconsistent application of policies.
CRS is the only trained source of real estate expertise, and like OECM, should be viewed as impartial and performing inherently Governmental activities for which a CRS is trained.
CRS authority delegated by the SRPO ranges from $250,000 at Level I and unlimited at Level II.
Unless a site requests advice, knowledge of real estate actions is unknown unless submitted to HQ, OECM
Few actions are submitted to HQ.
Sites where there is no CRS (Currently 3 – NREL, NETL, INL).
Actions that require Congressional Notification or Secretarial Indemnification.
Programs are developing own real estate procedures, thus diffusing Department-wide policies.

- Changes to DOE O 430.1B (9/3/04) reduced the role of the Certified Realty Specialist (CRS) from an “executor” under 430.1 (8/24/97) to that of “ a reviewer and approver” prior to contract execution.
- CRS position was originally established to be that of a Contracting Officer for real estate.
- Delegations directly to sites have resulted in inconsistent application of execution authority at different sites.
- There are no oversight and review thresholds for various real estate actions across the Department, resulting in inconsistent application of policies.
- CRS is the only trained source of real estate expertise, and like OECM, should be viewed as impartial and performing inherently Governmental activities for which a CRS is trained.
- CRS authority delegated by the SRPO ranges from $250,000 at Level I and unlimited at Level II.
- Unless a site requests advice, knowledge of real estate actions is unknown unless submitted to HQ, OECM
- Few actions are submitted to HQ.
- Sites where there is no CRS (Currently 3 – NREL, NETL, INL).
- Actions that require Congressional Notification or Secretarial Indemnification.
- Programs are developing own real estate procedures, thus diffusing Department-wide policies.

- Office of Engineering and Construction Management

## Who currently “executes” real estate 

Legacy management       -     CRS
NNSA	  	-     CRS
WAPA	  	-     CRS
NETL	   	-   			Contracting Officer
SWAPA	   	-     CRS
Argonne	   	-   	         Site Manager
Ames	  	-     	         Site Manager
Fermi	  	-	         Site Manager
Berkeley	   	-    	         Site Manager 
Brookhaven	  	-	         Site Manager
Princeton	  	-    	         Site Manager 
Savannah River   	-	         Site Manager
Richland	   	-     CRS
Environmental Mgmt  	-     CRS
SPRO	  	-     CRS
Idaho 		-     			Contracting Officer

- Legacy management       -     CRS
- NNSA	  	-     CRS
- WAPA	  	-     CRS
- NETL	   	-   			Contracting Officer
- SWAPA	   	-     CRS
- Argonne	   	-   	         Site Manager
- Ames	  	-     	         Site Manager
- Fermi	  	-	         Site Manager
- Berkeley	   	-    	         Site Manager
- Brookhaven	  	-	         Site Manager
- Princeton	  	-    	         Site Manager
- Savannah River   	-	         Site Manager
- Richland	   	-     CRS
- Environmental Mgmt  	-     CRS
- SPRO	  	-     CRS
- Idaho 		-     			Contracting Officer

- Office of Engineering and Construction Management

## DOE Real Estate

- CONGRESS

- Atomic Energy Act of 1954

- Energy Reorganization Act of 1977

- Secretary of Energy

- Director, Office of Management

- SENIOR REAL PROPERTY OFFICER
- Director, OECM

- Site Managers

-  **Leasing**

-  **R.E. Acquisition**
** ****Leasing**
** ****Disposal**

- National Defense Authorization Act of 1998

-  **Environmental Indemnification**
** ****Economic Development Disposal**
** ****No cost transfer to recipient**

- _Color Code_
-  Legislation
-  Authority
-  Activity
-  R.E. Warrant

- Senior
- Realty
- Officer

- Certified
- Realty
- Specialists

- Defense Authorization Act for FY 1994
- (HALL AMENDMENT)

-  **Lease Excess DOE Property**
**at reconfigured or closed DOE sites**
**Retain proceeds**

- PROPOSED

- MA-1 CoS
- discussing with
-  GC-77 to determine
- source of warrant
- delegation

- Director, OECM

- TRANSACTION
- AUTHORITY

- CONTRACT
- AUTHORITY

- Office of Engineering and Construction Management

## Sources of Warrant Authority and Recognition
DOE O 541.1B, Appointment of Contracting Officers, includes recognition and provision for the issuance of real property contracting officer warrants. 
The Acquisition Career Management Program includes real estate contracting as a career and provides reference to the requirements of E.O. 12931 (career development) and DOE O 361, Acquisition Career  Development Program (real property warrant).
Procurement Director has authority to delegate contracting authority to Heads of Contracting Activities.
Procurement Director needs to delegate HCA authority to SRPO to warrant RECO’s.
MA-1 Chief of Staff is discussing this issue with GC-77 to determine from where the HCA delegation for real estate contracting officer warrants (RECO) should originate.
MA-1 or Director of Procurement and Management Assistance 

- DOE O 541.1B, Appointment of Contracting Officers, includes recognition and provision for the issuance of real property contracting officer warrants.
- The Acquisition Career Management Program includes real estate contracting as a career and provides reference to the requirements of E.O. 12931 (career development) and DOE O 361, Acquisition Career  Development Program (real property warrant).
- Procurement Director has authority to delegate contracting authority to Heads of Contracting Activities.
- Procurement Director needs to delegate HCA authority to SRPO to warrant RECO’s.
- MA-1 Chief of Staff is discussing this issue with GC-77 to determine from where the HCA delegation for real estate contracting officer warrants (RECO) should originate.
- MA-1 or Director of Procurement and Management Assistance

- Office of Engineering and Construction Management

## Why issue warrants
Section 1.6 of the Federal Acquisition Regulation mandates that all contracts for the expenditure of appropriated funds be executed by warranted contracting officers.
The warrant program provides:
Tighter certification controls.
Continuing education requirements.
Documents training needs.
Validates qualifications for contracting authority levels.
The warrant program will ensure: 
Actions are  performed in accordance with policy and procedures.
Are supported by fully developed business cases and analyses.
Warrant program requires the periodic work product review of the warranted Real Estate Contracting Officer (RECO).
Warrant program and its source of authority place emphasis on:
the quality of the transaction, and 
The personal responsibility of Real Estate Contracting Officer in fulfilling operational requirements

- Section 1.6 of the Federal Acquisition Regulation mandates that all contracts for the expenditure of appropriated funds be executed by warranted contracting officers.
- The warrant program provides:
- Tighter certification controls.
- Continuing education requirements.
- Documents training needs.
- Validates qualifications for contracting authority levels.
- The warrant program will ensure:
- Actions are  performed in accordance with policy and procedures.
- Are supported by fully developed business cases and analyses.
- Warrant program requires the periodic work product review of the warranted Real Estate Contracting Officer (RECO).
- Warrant program and its source of authority place emphasis on:
- the quality of the transaction, and
- The personal responsibility of Real Estate Contracting Officer in fulfilling operational requirements

- Office of Engineering and Construction Management

## CRS
Level I ($250,000)
3 years creditable experience, 1 year at GS-12 as GS-1170
Completion of 6 approved real estate training courses, or
State certified or college real estate courses for equivalent of 1 year experience
Level II (Unlimited)
6 years creditable experience
2 years as GS-1170 and minimum 1 year at GS-1170-13 or above with 4 other creditable years total real estate experience  in specialty area
1 year credit for each year as GS=-1170 or 1 year credit for each 2 years experience as licensed real estate salesperson or broker
Specialties
Real Estate Acquisition
Non-GSA Leasing
GSA Leasing
Land Management and Disposal

- CRS
_**Level I**__ ($250,000)_
- 3 years creditable experience, 1 year at GS-12 as GS-1170
- Completion of 6 approved real estate training courses, or
- State certified or college real estate courses for equivalent of 1 year experience
_**Level II **__(Unlimited)_
- 6 years creditable experience
- 2 years as GS-1170 and minimum 1 year at GS-1170-13 or above with 4 other creditable years total real estate experience  in specialty area
- 1 year credit for each year as GS=-1170 or 1 year credit for each 2 years experience as licensed real estate salesperson or broker
**Specialties**
**Real Estate Acquisition**
**Non-GSA Leasing**
**GSA Leasing**
**Land Management and Disposal**

- RECO
_**Level I**__ ($250,000)_
- 3 years progressively complex experience in all specialties
- Bachelors degree in real estate or equivalent work experience
- Completion of 6 approved real estate courses
- Career development plan
_**Level II**__ (Unlimited)_
- 5 years of progressively complex general experience in all specialties, plus
- 2 years as a real estate contracting officer, plus
- 3 years of specialized experience in development, review, or approval of Government real estate contracts.
- Additional training of 4 more specific courses
**Specialties**
**Same as CRS**

- Office of Engineering and Construction Management

## Comparison
While educational and experience requirements are the similar between CRS and RECO, the difference lies in the warrant.
The warrant reflects the delegation of specific authority to obligate the Government for the terms and conditions of the real estate contract through the direct execution of the contract.
The warrant is granted based upon the aforementioned requirements, plus demonstrated creditable performance and experience.
The warrant can not be affected by a change in language of any regulation or order.
Specific to an individual,
Specific as to duration,
Specific as to function,
Specific as to demonstrated continued training required to maintain the warrant, and
Specific to the level of authority
Warrant reflects the individual has met the necessary requirements to perform this inherently Governmental function.
Warranted contracting officers are subject to review and oversight of their work.

- Comparison
- While educational and experience requirements are the similar between CRS and RECO, the difference lies in the warrant.
- The warrant reflects the delegation of specific authority to obligate the Government for the terms and conditions of the real estate contract through the direct execution of the contract.
- The warrant is granted based upon the aforementioned requirements, plus demonstrated creditable performance and experience.
- The warrant can not be affected by a change in language of any regulation or order.
- Specific to an individual,
- Specific as to duration,
- Specific as to function,
- Specific as to demonstrated continued training required to maintain the warrant, and
- Specific to the level of authority
- Warrant reflects the individual has met the necessary requirements to perform this inherently Governmental function.
- Warranted contracting officers are subject to review and oversight of their work.

- Office of Engineering and Construction Management

## Other Federal Agencies With Real Estate Contracting Officer Warrant Programs

- _Other Federal Agencies With Real Estate Contracting Officer Warrant Programs_
-  General Services Administration
-  Department of Transportation
-  Department of Interior
-  Department of the Navy
-  Department of Agriculture
-  Department of Commerce
-   National Oceanic and Atmospheric Administration
- List not all inclusive

- Office of Engineering and Construction Management

## CONCLUSION
Real estate management in the Department is fragmented and inconsistent.
Programs and sites with delegated authority currently are not subject to operational oversight.
Existing CRS’s answer only to the site manager.
There is no formal succession planning nor an existing career development program as required.
CRS designations are not specific as to time and continuing education requirements.
Headquarters exercises no unified management or supervisory input over CRS’s as a group.
Headquarters has minimal knowledge of real estate activities at the sites.
There are no uniform performance standards requirements for CRS’s.
CRS’s do not regularly attend conference calls or attend real estate conferences, thus reducing the opportunity to provide information on policy updates, currency , and education.
Sites are less than adequately prepared to meet the requirements for changing operational environments without the benefit of the training and warrant program.

- Real estate management in the Department is fragmented and inconsistent.
- Programs and sites with delegated authority currently are not subject to operational oversight.
- Existing CRS’s answer only to the site manager.
- There is no formal succession planning nor an existing career development program as required.
- CRS designations are not specific as to time and continuing education requirements.
- Headquarters exercises no unified management or supervisory input over CRS’s as a group.
- Headquarters has minimal knowledge of real estate activities at the sites.
- There are no uniform performance standards requirements for CRS’s.
- CRS’s do not regularly attend conference calls or attend real estate conferences, thus reducing the opportunity to provide information on policy updates, currency , and education.
- Sites are less than adequately prepared to meet the requirements for changing operational environments without the benefit of the training and warrant program.

- Office of Engineering and Construction Management

## Real Estate Management

**BACKUP SLIDES**

- Office of Engineering and Construction Management

## Real Estate Management

- The Department’s principal authorities are codified under:
- Atomic Energy Act of 1954, 42 U.S.C. 2201(g) Section 161(g) authorizes the Secretary to
-  “g.  Acquire, purchase, lease, and hold real and personal property, including patents, as agent of and on behalf of the United States subject to provisions of Section 174 (use prior to Attorney General approval of title), and to sell, lease, grant, and dispose of such real and personal property as provided in this act.”
- Covers the sites identified on Back-up slide number 22
-   Department of Energy Organization Act of 1977, 42 USC 7256 (a) provides
-  “a.  The Secretary is authorized to enter into and perform such contracts, leases, cooperative agreements, or other similar transactions with public agencies and private organizations and persons, and to make such payments (in lump sum or installments, and by way of advance or reimbursement) as he may deem to be necessary or appropriate to carry out functions now or hereafter vested in the Secretary.”
- Covers all sites

- Office of Engineering and Construction Management

## Real Estate Management

- The Hall Amendment (42 U.S.C. 7256 of 1993)was authorized to augment authority:
- “  The Secretary may lease, at less than fair market value, upon terms and conditions the Secretary considers appropriate to promote national security or the public interest, acquired real property and related personal property that:
-  1)  is located at a facility of the Department of Energy to be closed or 	reconfigured;
-  2)  at the time the lease is entered into, is not needed by the Department of               	Energy; and
-  3)  in under the  control of the Department  “
-   The lease term authorized by law is 10 years and a renewal that may exceed 10 years if it _*will promote the national security or be in the public interest.*_
-  The Hall Amendment provides leasing authority relating to economic development at closing or reconfigured DOE facilities. Economic Development is defined in 10 CFR Part 770 as” the use of transferred DOE real property in a way that enhances the production, distribution, or consumption of goods and services, or results in reuse and redevelopment in the surrounding region(s) and furthers the public policy objectives of the laws governing the downsizing of DOE’s defense nuclear facilities.”

- Office of Engineering and Construction Management

## Real Estate Management

- Other Authorities:
- 50 U.S.C. 2811 provides discretionary authority for the Secretary to indemnify transferees  against claims based upon the release or threatened release of a hazardous substance or pollutant or contaminant resulting from DOE activities
- This resulted in the process published rule under 10 CFR Part 770 providing:
-   For DOE disposition by sale or lease of real property at defense nuclear facilities for economic development,
-   transfer by lease-only, improvements at defense nuclear facilities on land withdrawn from the public domain, that are excess, temporarily under-utilized, or underutilized, for the purpose of permitting economic development,
-  sell or lease property at less than fair market value if the statutory transfer authority imposes no market value restriction, **where**
**  **the real property requires considerable infrastructure improvements to make it economically viable, **or**
**   **conveyance at less than market value would in DOE judgment further the policy objectives of laws governing downsizing of defense nuclear facilities.

- Office of Engineering and Construction Management

## Real Estate Management

-   Basis For Warranting Contracting Officers
- 	-  Competition in Contracting Act (CICA) of 1984     	(41 U.S.C. 253) requires Executive Agencies to procure as follows:
-   	-  Procurement through full and open competition
-   		 -  obtain full and open competition through use of competitive   		 -  procedures in accordance with CICA and the Federal 		 			Acquisition Regulation
-   Congress enacted the Federal Procurement Policy Act (41 U.S.C. 405)
-  	-  This Act established an Administrator with the responsibility to establish      	     	procurement policies for Executive Agencies under “a single Government-wide 	procurement regulation called the Federal Acquisition Regulation.”  It was mandated 	for use by all Executive agencies in the procurement of:
-   		-  property **OTHER THAN REAL PROPERTY IN BEING**
-   		-  services including research and development; and 				-  construction, alteration, repair, or maintenance of real 				      property

- Office of Engineering and Construction Management

## 
Argonne National Laboratory
Brookhaven National Laboratory
Fernald Environmental    	Management Project Site
Hanford Site
Idaho National Engineering and 	Environmental Laboratory
Kansas City Plant
K-25 Plant (East Tennessee 	Technology Park)
Lawrence Livermore National 	Laboratory 
Los Alamos National Laboratory

- Argonne National Laboratory
- Brookhaven National Laboratory
- Fernald Environmental    	Management Project Site
- Hanford Site
- Idaho National Engineering and 	Environmental Laboratory
- Kansas City Plant
- K-25 Plant (East Tennessee 	Technology Park)
- Lawrence Livermore National 	Laboratory
- Los Alamos National Laboratory

- Mound Facility
- Nevada Test Site
- Oak Ridge Reservation
- Paducah Gaseous Diffusion plant
- Pantex Plant
- Pinellas Plant
- Portsmouth Gaseous Diffusion 	Plant
- Sandia National Laboratory
- Savannah river Site
- Waste Isolation Pilot Project
- Y-12 Plant

- Real Estate Management

- Defense Nuclear Sites

- Office of Engineering and Construction Management

## Slide 20

- Office of Engineering and Construction Management