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[114th Congress Public Law 318]
[From the U.S. Government Publishing Office]

[[Page 1607]]

             FEDERAL PROPERTY MANAGEMENT REFORM ACT OF 2016

[[Page 130 STAT. 1608]]

Public Law 114-318
114th Congress

                                 An Act

 
          To improve the Government-wide management of Federal 
            property. <<NOTE: Dec. 16, 2016 -  [H.R. 6451]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Federal Property 
Management Reform Act of 2016.>> 
SECTION 1. <<NOTE: 40 USC 101 note.>>  SHORT TITLE.

    This Act may be cited as the ``Federal Property Management Reform 
Act of 2016''.
SEC. 2. <<NOTE: 40 USC 621 note.>>  PURPOSE.

    The purpose of this Act is to increase the efficiency and 
effectiveness of the Federal Government in managing property of the 
Federal Government by--
            (1) requiring the United States Postal Service to take 
        appropriate measures to better manage and account for property;
            (2) providing for increased collocation with Postal Service 
        facilities and guidance on Postal Service leasing practices; and
            (3) establishing a Federal Real Property Council to develop 
        guidance on and ensure the implementation of strategies for 
        better managing Federal property.
SEC. 3. PROPERTY MANAGEMENT.

    (a) In General.--Chapter 5 of subtitle I of title 40, United States 
Code, is amended by adding at the end the following:

``Subchapter VII <<NOTE: 40 USC prec. 621.>> --Property Management
``Sec. 621. <<NOTE: 40 USC 621.>>  Definitions

    ``In this subchapter:
            ``(1) Administrator.--The term `Administrator' means the 
        Administrator of General Services.
            ``(2) Council.--The term `Council' means the Federal Real 
        Property Council established by section 623(a).
            ``(3) Director.--The term `Director' means the Director of 
        the Office of Management and Budget.
            ``(4) Federal agency.--The term `Federal agency' means--
                    ``(A) an executive department or independent 
                establishment in the executive branch of the Government; 
                or
                    ``(B) a wholly owned Government corporation (other 
                than the United States Postal Service).
            ``(5) Field office.--The term `field office' means any 
        office of a Federal agency that is not the headquarters office 
        location for the Federal agency.

[[Page 130 STAT. 1609]]

            ``(6) Postal property.--The term `postal property' means any 
        property owned or leased by the United States Postal Service.
            ``(7) Public-private partnership.--The term `public-private 
        partnership' means any partnership or working relationship 
        between a Federal agency and a corporation, individual, or 
        nonprofit organization for the purpose of financing, 
        constructing, operating, managing, or maintaining one or more 
        Federal real property assets.
            ``(8) Underutilized property.--The term `underutilized 
        property' means a portion or the entirety of any real property, 
        including any improvements, that is used--
                    ``(A) irregularly or intermittently by the 
                accountable Federal agency for program purposes of the 
                Federal agency; or
                    ``(B) for program purposes that can be satisfied 
                only with a portion of the property.
``Sec. 622. <<NOTE: 40 USC 622.>>  Collocation among United States 
                Postal Service properties

    ``(a) Identification of Postal Property.--Each year, the Postmaster 
General shall--
            ``(1) <<NOTE: Records.>>  identify a list of postal 
        properties with space available for use by Federal agencies; and
            ``(2) <<NOTE: Deadline.>>  not later than September 30, 
        submit the list to--
                    ``(A) the Committee on Homeland Security and 
                Governmental Affairs of the Senate; and
                    ``(B) the Committee on Oversight and Government 
                Reform of the House of Representatives.

    ``(b) Voluntary Identification of Postal Property.--Each year, the 
Postmaster General may submit the list under subsection (a) to the 
Council.
    ``(c) <<NOTE: Deadlines.>>  Submission of List of Postal Properties 
to Federal Agencies.--
            ``(1) In general.--Not later than 30 days after the 
        completion of a list under subsection (a), the Council shall 
        provide the list to each Federal agency.
            ``(2) Review by federal agencies.--Not later than 90 days 
        after the receipt of the list submitted under paragraph (1), 
        each Federal agency shall--
                    ``(A) review the list;
                    ``(B) review properties under the control of the 
                Federal agency; and
                    ``(C) <<NOTE: Recommenda- tions.>>  recommend 
                collocations if appropriate.

    ``(d) Terms of Collocation.--On approval of the recommendations 
under subsection (c) by the Postmaster General and the applicable agency 
head, the Federal agency or appropriate landholding entity may work with 
the Postmaster General to establish appropriate terms of a lease for 
each postal property.
    ``(e) Rule of Construction.--Nothing in this section exceeds, 
modifies, or supplants any other Federal law relating to any competitive 
bidding process governing the leasing of postal property.
``Sec. 623. <<NOTE: 40 USC 623.>>  Establishment of a Federal Real 
                Property Council

    ``(a) Establishment.--There is established a Federal Real Property 
Council.
    ``(b) Purpose.--The purpose of the Council shall be--

[[Page 130 STAT. 1610]]

            ``(1) to develop guidance and ensure implementation of an 
        efficient and effective real property management strategy;
            ``(2) to identify opportunities for the Federal Government 
        to better manage property and assets of the Federal Government; 
        and
            ``(3) to reduce the costs of managing property of the 
        Federal Government, including operations, maintenance, and 
        security associated with Federal property.

    ``(c) Composition.--
            ``(1) In general.--The Council shall be composed exclusively 
        of--
                    ``(A) the senior real property officers of each 
                Federal agency;
                    ``(B) the Deputy Director for Management of the 
                Office of Management and Budget;
                    ``(C) the Controller of the Office of Management and 
                Budget;
                    ``(D) the Administrator; and
                    ``(E) any other full-time or permanent part-time 
                Federal officials or employees, as the Chairperson 
                determines to be necessary.
            ``(2) Chairperson.--The Deputy Director for Management of 
        the Office of Management and Budget shall serve as Chairperson 
        of the Council.
            ``(3) Executive director.--
                    ``(A) <<NOTE: Designation.>>  In general.--The 
                Chairperson shall designate an Executive Director to 
                assist in carrying out the duties of the Council.
                    ``(B) Qualifications.--The Executive Director 
                shall--
                          ``(i) <<NOTE: Appointment.>>  be appointed 
                      from among individuals who have substantial 
                      experience in the areas of commercial real estate 
                      and development, real property management, and 
                      Federal operations and management; and
                          ``(ii) hold no outside employment that may 
                      conflict with duties inherent to the position.

    ``(d) Meetings.--
            ``(1) In general.--The Council shall meet subject to the 
        call of the Chairperson.
            ``(2)Minimum.--The Council shall meet not fewer than 4 times 
        each year.

    ``(e) <<NOTE: Consultation.>>  Duties.--The Council, in consultation 
with the Director and the Administrator, shall--
            ``(1) <<NOTE: Deadlines. Plan.>>  not later than 1 year 
        after the date of enactment of this subchapter, establish a real 
        property management plan template, to be updated annually, which 
        shall include performance measures, specific milestones, 
        measurable savings, strategies, and Government-wide goals based 
        on the goals established under section 524(a)(7) to reduce 
        surplus property or to achieve better utilization of 
        underutilized property, and evaluation criteria to determine the 
        effectiveness of real property management that are designed--
                    ``(A) to enable Congress and heads of Federal 
                agencies to track progress in the achievement of 
                property management objectives on a Government-wide 
                basis;
                    ``(B) to improve the management of real property; 
                and

[[Page 130 STAT. 1611]]

                    ``(C) to allow for comparison of the performance of 
                Federal agencies against industry and other public 
                sector agencies;
            ``(2) develop utilization rates consistent throughout each 
        category of space, considering the diverse nature of the Federal 
        portfolio and consistent with nongovernmental space use rates;
            ``(3) <<NOTE: Strategy.>>  develop a strategy to reduce the 
        reliance of Federal agencies on leased space for long-term needs 
        if ownership would be less costly;
            ``(4) <<NOTE: Guidance.>>  provide guidance on eliminating 
        inefficiencies in the Federal leasing process;
            ``(5) <<NOTE: Lists.>>  compile a list of field offices that 
        are suitable for collocation with other property assets;
            ``(6) research best practices regarding the use of public-
        private partnerships to manage properties and develop guidelines 
        for the use of those partnerships in the management of Federal 
        property; and
            ``(7) <<NOTE: Deadlines. Time periods. Effective 
        date. Reports.>>  not later than 1 year after the date of 
        enactment of this subchapter and annually during the 4-year 
        period beginning on the date that is 1 year after the date of 
        enactment of this subchapter and ending on the date that is 5 
        years after the date of enactment of this subchapter, the 
        Council shall submit to the Director a report that contains--
                    ``(A) <<NOTE: Lists.>>  a list of the remaining 
                excess property that is real property, surplus property 
                that is real property, and underutilized property of 
                each Federal agency;
                    ``(B) <<NOTE: Guidance.>>  the progress of the 
                Council toward developing guidance for Federal agencies 
                to ensure that the assessment required under section 
                524(a)(11)(B) is carried out in a uniform manner;
                    ``(C) the progress of Federal agencies toward 
                achieving the goals established under section 524(a)(7);
                    ``(D) <<NOTE: Recommenda- tions.>>  if necessary, 
                recommendations for legislation or statutory reforms 
                that would further the goals of the Council, including 
                streamlining the disposal of excess or underutilized 
                real property; and
                    ``(E) <<NOTE: Lists.>>  a list of entities that are 
                consulted under subsection (f).

    ``(f) Consultation.--In carrying out the duties described in 
subsection (e), the Council shall also consult with representatives of--
            ``(1) State, local, and tribal authorities, as appropriate, 
        and other affected communities; and
            ``(2) appropriate private sector entities and 
        nongovernmental organizations that have expertise in areas of--
                    ``(A) commercial real estate and development;
                    ``(B) government management and operations;
                    ``(C) space planning;
                    ``(D) community development, including 
                transportation and planning;
                    ``(E) historic preservation; and
                    ``(F) providing housing to the homeless population.

    ``(g) Council Resources.--The Director and the Administrator shall 
provide staffing, and administrative support for the Council, as 
appropriate.
    ``(h) Access to Report.--The Council shall provide, on an annual 
basis, the real property management plan template required

[[Page 130 STAT. 1612]]

under subsection (e)(1) and the reports required under subsection (e)(7) 
to--
            ``(1) the Committee on Homeland Security and Governmental 
        Affairs of the Senate;
            ``(2) the Committee on Environment and Public Works of the 
        Senate;
            ``(3) the Committee on Oversight and Government Reform of 
        the House of Representatives;
            ``(4) the Committee on Transportation and Infrastructure of 
        the House of Representatives; and
            ``(5) the Comptroller General of the United States.

    ``(i) Exclusions.--In this section, surplus property shall not 
include--
            ``(1) any military installation (as defined in section 2910 
        of the Defense Base Closure and Realignment Act of 1990 (10 
        U.S.C. 2687 note; Public Law 101-510));
            ``(2) any property that is excepted from the definition of 
        the term `property' under section 102;
            ``(3) Indian and native Eskimo property held in trust by the 
        Federal Government as described in section 3301(a)(5)(C)(iii);
            ``(4) real property operated and maintained by the Tennessee 
        Valley Authority pursuant to the Tennessee Valley Authority Act 
        of 1933 (16 U.S.C. 831 et seq.);
            ``(5) any real property the Director excludes for reasons of 
        national security;
            ``(6) any public lands (as defined in section 203 of the 
        Public Lands Corps Act of 1993 (16 U.S.C. 1722)) administered 
        by--
                    ``(A) the Secretary of the Interior, acting 
                through--
                          ``(i) the Director of the Bureau of Land 
                      Management;
                          ``(ii) the Director of the National Park 
                      Service;
                          ``(iii) the Commissioner of Reclamation; or
                          ``(iv) the Director of the United States Fish 
                      and Wildlife Service; or
                    ``(B) the Secretary of Agriculture, acting through 
                the Chief of the Forest Service; or
            ``(7) any property operated and maintained by the United 
        States Postal Service.
``Sec. 624. <<NOTE: 40 USC 624.>>  Information on certain leasing 
                authorities

    ``(a) <<NOTE: Deadline. Lists.>>  In General.--Except as provided in 
subsection (b), not later than December 31 of each year following the 
date of enactment of this subchapter, a Federal agency with independent 
leasing authority shall submit to the Council a list of all leases, 
including operating leases, in effect on the date of enactment of this 
subchapter that includes--
            ``(1) the date on which each lease was executed;
            ``(2) the date on which each lease will expire;
            ``(3) a description of the size of the space;
            ``(4) the location of the property;
            ``(5) the tenant agency;
            ``(6) the total annual rental payment; and
            ``(7) the amount of the net present value of the total 
        estimated legal obligations of the Federal Government over the 
        life of the contract.

[[Page 130 STAT. 1613]]

    ``(b) Exception.--Subsection (a) shall not apply to--
            ``(1) the United States Postal Service; or
            ``(2) any other property the Director excludes from 
        subsection (a) for reasons of national security.''.

    (b) Technical and Conforming Amendments.--
            (1) Table of sections.--The table of sections for chapter 5 
        of subtitle I of title 40, United States Code, <<NOTE: 40 
        USC prec. 501.>>  is amended by inserting after the item 
        relating to section 611 the following:

                  ``subchapter vii--property management

``Sec. 621. Definitions.
``Sec. 622. Collocation among United States Postal Service properties.
``Sec. 623. Establishment of a Federal Real Property Council.
``Sec. 624. Information on certain leasing authorities.''.

            (2) Technical amendment.--Section 102 of title 40, United 
        States Code, is amended in the matter preceding paragraph (1) by 
        striking ``The'' and inserting ``Except as provided in 
        subchapter VII of chapter 5 of this title, the''.
SEC. 4. UNITED STATES POSTAL SERVICE PROPERTY MANAGEMENT.

    (a) In General.--Part III of title 39, United States Code, is 
amended by adding at the end the following:

``CHAPTER 29 <<NOTE: 39 USC prec. 2901.>> --PROPERTY MANAGEMENT

``Sec.
``2901. Definitions.
``2902. Property management.

``Sec. 2901. <<NOTE: 39 USC 2901.>>  Definitions

    ``In this chapter:
            ``(1) Excess property.--The term `excess property' means any 
        postal property that the Postal Service determines is not 
        required to meet the needs or responsibilities of the Postal 
        Service.
            ``(2) Postal property.--The term `postal property' means any 
        property owned or leased by the Postal Service.
            ``(3) Underutilized property.--The term `underutilized 
        property' means a portion or the entirety of any real property 
        that is postal property, including any improvements, that is 
        used--
                    ``(A) irregularly or intermittently by the Postal 
                Service for program purposes of the Postal Service; or
                    ``(B) for program purposes that can be satisfied 
                only with a portion of the property.
``Sec. 2902. <<NOTE: 39 USC 2902.>>  Property management

    ``(a) In General.--The Postal Service--
            ``(1) shall maintain adequate inventory controls and 
        accountability systems for postal property;
            ``(2) shall develop current and future workforce projections 
        so as to have the capacity to assess the needs of the Postal 
        Service workforce regarding the use of property;
            ``(3) may develop a 5-year management template that--
                    ``(A) establishes goals and policies that will lead 
                to the reduction of excess property and underutilized 
                property in the inventory of the Postal Service;
                    ``(B) adopts workplace practices, configurations, 
                and management techniques that can achieve increased 
                levels

[[Page 130 STAT. 1614]]

                of productivity and decrease the need for real property 
                assets;
                    ``(C) <<NOTE: Assessments.>>  assesses leased space 
                to identify space that is not fully used or occupied;
                    ``(D) <<NOTE: Recommenda- tions.>>  develops 
                recommendations on how to address excess capacity at 
                Postal Service facilities without negatively impacting 
                mail delivery; and
                    ``(E) <<NOTE: Recommenda- tions.>>  develops 
                recommendations on ensuring the security of mail 
                processing operations; and
            ``(4) if the Postal Service develops a template under 
        paragraph (3) shall, as part of that template and on a regular 
        basis--
                    ``(A) <<NOTE: Records.>>  conduct an inventory of 
                postal property that is real property; and
                    ``(B) <<NOTE: Publication. Reports.>>  publish a 
                report that covers each property identified under 
                subparagraph (A), similar to the USPS Owned Facilities 
                Report and the USPS Leased Facilities Report, that 
                includes--
                          ``(i) the date on which the Postal Service 
                      first occupied the property;
                          ``(ii) the size of the property in square 
                      footage and acreage;
                          ``(iii) the geographical location of the 
                      property, including an address and description;
                          ``(iv) the extent to which the property is 
                      being utilized;
                          ``(v) the actual annual operating costs 
                      associated with the property;
                          ``(vi) the total cost of capital expenditures 
                      associated with the property;
                          ``(vii) the number of postal employees, 
                      contractor employees, and functions housed at the 
                      property;
                          ``(viii) the extent to which the mission of 
                      the Postal Service is dependent on the property; 
                      and
                          ``(ix) <<NOTE: Time period.>>  the estimated 
                      amount of capital expenditures projected to 
                      maintain and operate the property over each of the 
                      next 5 years after the date of enactment of this 
                      chapter.

    ``(b) Rule of Construction.--Nothing in subsection (a)(4)(B) shall 
be construed to require the Postal Service to obtain an appraisal of 
postal property.''.
    (b) Technical and Conforming Amendment.--The table of chapters for 
part III of title 39, United States Code, <<NOTE: 39 USC prec. 
2001.>> is amended by adding at the end the following:

``29. Property Management........................................2901''.
SEC. 5. INSPECTOR GENERAL REPORT ON UNITED STATES POSTAL SERVICE 
                    PROPERTY.

    (a) Definition of Excess Property.--In this section, the term 
``excess property'' has the meaning given the term in section 2901 of 
title 39, United States Code, as added by section 4.
    (b) Excess Property Report.--Not later than 2 years after the date 
of enactment of this Act, the Inspector General of the United States 
Postal Service shall submit to Congress a report that includes--
            (1) <<NOTE: Survey.>>  a survey of excess property held by 
        the United States Postal Service; and

[[Page 130 STAT. 1615]]

            (2) recommendations for repurposing property identified in 
        paragraph (1)--
                    (A) to--
                          (i) reduce excess capacity; and
                          (ii) increase collocation with other Federal 
                      agencies; and
                    (B) without diminishing the ability of the United 
                States Postal Service to meet the service standards 
                established under section 3691 of title 39, United 
                States Code, as in effect on January 1, 2016.
SEC. 6. DUTIES OF FEDERAL AGENCIES.

    (a) In General.--Section 524(a) of title 40, United States Code, is 
amended--
            (1) in paragraph (4), by striking ``and'' at the end;
            (2) in paragraph (5), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(6) develop current and future workforce projections so as 
        to have the capacity to assess the needs of the Federal 
        workforce regarding the use of real property;
            ``(7) establish goals and policies that will lead the 
        executive agency to reduce excess property and underutilized 
        property in the inventory of the executive agency;
            ``(8) submit to the Federal Real Property Council an annual 
        report on all excess property that is real property and 
        underutilized property in the inventory of the executive agency, 
        including--
                    ``(A) whether underutilized property can be better 
                utilized, including through collocation with other 
                executive agencies or consolidation with other 
                facilities; and
                    ``(B) the extent to which the executive agency 
                believes that retention of the underutilized property 
                serves the needs of the executive agency;
            ``(9) adopt workplace practices, configurations, and 
        management techniques that can achieve increased levels of 
        productivity and decrease the need for real property assets;
            ``(10) assess leased space to identify space that is not 
        fully used or occupied;
            ``(11) on an annual basis and subject to the guidance of the 
        Federal Real Property Council--
                    ``(A) conduct an inventory of real property under 
                control of the executive agency; and
                    ``(B) make an assessment of each property, which 
                shall include--
                          ``(i) the age and condition of the property;
                          ``(ii) the size of the property in square 
                      footage and acreage;
                          ``(iii) the geographical location of the 
                      property, including an address and description;
                          ``(iv) the extent to which the property is 
                      being utilized;
                          ``(v) the actual annual operating costs 
                      associated with the property;
                          ``(vi) the total cost of capital expenditures 
                      incurred by the Federal Government associated with 
                      the property;

[[Page 130 STAT. 1616]]

                          ``(vii) sustainability metrics associated with 
                      the property;
                          ``(viii) the number of Federal employees and 
                      contractor employees and functions housed at the 
                      property;
                          ``(ix) the extent to which the mission of the 
                      executive agency is dependent on the property;
                          ``(x) the estimated amount of capital 
                      expenditures projected to maintain and operate the 
                      property during the 5-year period beginning on the 
                      date of enactment of this paragraph; and
                          ``(xi) any additional information required by 
                      the Administrator of General Services to carry out 
                      section 623; and
            ``(12) provide to the Federal Real Property Council and the 
        Administrator of General Services the information described in 
        paragraph (11)(B) to be used for the establishment and 
        maintenance of the database described in section 21 of the 
        Federal Assets Sale and Transfer Act of 2016.''.

    (b) Definition of Executive Agency.--Section 524 of title 40, United 
States Code, is amended by adding at the end the following:
    ``(c) Definition of Executive Agency.--For the purpose of paragraphs 
(6) through (12) of subsection (a), the term `executive agency' shall 
have the meaning given the term `Federal agency' in section 621.''.
SEC. 7. TECHNICAL AMENDMENTS.

    (a) Definition of Applicable Act.--In this section, the term 
``applicable Act'' means the Federal Assets Sale and Transfer Act of 
2016 (H.R. 4465, 114th Congress, 2d Session).
    (b) Board.--Section 4(c) of the applicable Act <<NOTE: 40 USC 1303 
note.>>  is amended by striking paragraphs (1) through (3) and inserting 
the following:
            ``(1) In general.--The Board shall be composed of a 
        Chairperson appointed by the President, by and with the advice 
        and consent of the Senate, and 6 members appointed by the 
        President.
            ``(2) Appointments.--
                    ``(A) In general.--In selecting individuals for 
                appointments to the Board, the President shall appoint 
                members in the following manner:
                          ``(i) Two members recommended by the Speaker 
                      of the House of Representatives.
                          ``(ii) Two members recommended by the majority 
                      leader of the Senate.
                          ``(iii) One member recommended by the minority 
                      leader of the House of Representatives.
                          ``(iv) One member recommended by the minority 
                      leader of the Senate.
                    ``(B) Deadline.--The appointment of members to the 
                Board shall be made not later than 90 days after the 
                date of enactment of this Act.
            ``(3) Terms.--The term for each member of the Board shall be 
        6 years.''.

    (c) Agency Retention of Proceeds.--

[[Page 130 STAT. 1617]]

            (1) In general.--Section 571 of title 40, United States Code 
        (as amended by section 20 of the applicable Act), is amended by 
        adding at the end the following:

    ``(d) Savings Provision.--Nothing in this section modifies, alters, 
or repeals any other provision of Federal law directing the use of 
retained proceeds relating to the sale of property of an agency.''.
            (2) <<NOTE: 40 USC 571 note.>>  Effective date.--The 
        amendments made by this subsection shall take effect as if 
        enacted as part of the applicable Act.

    (d) <<NOTE: 40 USC 1303 note.>>  Sale.--Section 24 of the applicable 
Act is amended--
            (1) by redesignating subsection (c) as subsection (d); and
            (2) by inserting after subsection (b) the following:

    ``(c) Requirement.--Notwithstanding any other provision of law, the 
sale of the property by the Administrator of General Services shall 
ensure continuity of security measures, parking access, and 
infrastructure requirements of the James Forrestal Building while it is 
occupied by the Department of Energy.''.
    (e) <<NOTE: 40 USC 571 note.>>  Effective Date.--Except as provided 
in subsection (c)(2), this section and the amendments made by this 
section shall take effect immediately after the enactment of the 
applicable Act.

    Approved December 16, 2016.

LEGISLATIVE HISTORY--H.R. 6451:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 162 (2016):
            Dec. 8, considered and passed House.
            Dec. 9, considered and passed Senate.

                                  <all>
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