```

[House Report 115-184]
[From the U.S. Government Publishing Office]

115th Congress    }                                      {      Report
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                      {     115-184

======================================================================

 
                     STREAMLINING DHS OVERHEAD ACT

                                _______
                                

 June 20, 2017.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Mr. McCaul, from the Committee on Homeland Security, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 2190]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security, to whom was referred 
the bill (H.R. 2190) to amend the Homeland Security Act of 2002 
to direct the Under Secretary for Management of the Department 
of Homeland Security to make certain improvements in managing 
the Department's real property portfolio, and for other 
purposes, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.

                                CONTENTS

                                                                   Page
      Purpose and Summary.............................................4
      Background and Need for Legislation.............................4
      Hearings........................................................5
      Committee Consideration.........................................6
      Committee Votes.................................................6
      Committee Oversight Findings....................................6
      New Budget Authority, Entitlement Authority, and Tax Expenditure6
      Congressional Budget Office Estimate............................7
      Statement of General Performance Goals and Objectives...........7
      Duplicative Federal Programs....................................8
      Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
      Benefits........................................................8
      Federal Mandates Statement......................................8
      Preemption Clarification........................................8
      Disclosure of Directed Rule Makings.............................8
      Advisory Committee Statement....................................8
      Applicability to Legislative Branch.............................8
      Section-by-Section Analysis of the Legislation..................9
      Changes in Existing Law Made by the Bill, as Reported..........11

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Streamlining DHS Overhead Act''.

SEC. 2. LONG TERM REAL PROPERTY STRATEGIES.

  (a) In General.--Title VII of the Homeland Security Act of 2002 (6 
U.S.C. 341 et seq.) is amended by adding at the end the following new 
sections:

``SEC. 710. CHIEF FACILITIES AND LOGISTICS OFFICER.

  ``(a) In General.--There is a Chief Facilities and Logistics Officer 
of the Department who shall report directly to the Under Secretary for 
Management. The Chief Facilities and Logistics Officer shall be career 
reserved for a member of the senior executive service.
  ``(b) Responsibilities.--The Chief Facilities and Logistics Officer 
shall--
          ``(1) develop policies and procedures and provide program 
        oversight to manage real property, facilities, personal 
        property, mobile assets, equipment, and other material 
        resources of the Department;
          ``(2) manage and execute, in consultation with the component 
        heads, mission support services within the National Capital 
        Region for real property, facilities, and other common 
        headquarters and field activities for the Department; and
          ``(3) provide tactical and transactional services for the 
        Department, including transportation, facility operations, and 
        maintenance.

``SEC. 711. LONG TERM REAL PROPERTY STRATEGIES.

  ``(a) In General.--
          ``(1) First strategy.--Not later than 180 days after the date 
        of the enactment of this section, the Under Secretary for 
        Management shall develop an initial 5-year regional real 
        property strategy for the Department that covers the five 
        fiscal years immediately following such date of enactment. Such 
        strategy shall be geographically organized, as designated by 
        the Under Secretary for Management.
          ``(2) Second strategy.--Not later than the first day of the 
        fourth fiscal year covered by the first strategy under 
        paragraph (1), the Under Secretary for Management shall develop 
        a second 5-year real property strategy for the Department that 
        covers the five fiscal years immediately following the 
        conclusion of such first strategy.
  ``(b) Requirements.--
          ``(1) Initial strategy.--The initial 5-year strategy 
        developed in accordance with paragraph (1) of subsection (a) 
        shall--
                  ``(A) identify opportunities to consolidate real 
                property, optimize the usage of Federal assets, and 
                decrease the number of commercial leases and square 
                footage within the Department's real property 
                portfolio;
                  ``(B) provide alternate housing and consolidation 
                plans to increase efficiency through joint use of 
                Department spaces while decreasing the reliance on and 
                cost of leased space;
                  ``(C) concentrate on geographical areas with a 
                significant Department presence, as identified by the 
                Under Secretary for Management;
                  ``(D) examine the establishment of central Department 
                locations in each such geographical region and the co-
                location of Department components based on the mission 
                sets and responsibilities of such components;
                  ``(E) identify opportunities to reduce overhead costs 
                through co-location or consolidation of real property 
                interests or mission support activities, such as shared 
                mail screening and processing, centralized 
                transportation and shuttle services, regional transit 
                benefit programs, common contracting for custodial and 
                other services, and leveraging strategic sourcing 
                contracts and sharing of specialized facilities, such 
                as training facilities and resources;
                  ``(F) manage the current Department Workspace 
                Standard for Office Space in accordance with the 
                Department office workspace design process to develop 
                the most efficient and effective spaces within the 
                workspace standard net usable square foot ranges for 
                all leased for office space entered into on or after 
                the date of the enactment of this section, including 
                the renewal of any leases for office space existing as 
                of such date;
                  ``(G) define, based on square footage, what 
                constitutes a major real property acquisition;
                  ``(H) prioritize actions to be taken to improve the 
                operations and management of the Department's real 
                property inventory, based on life-cycle cost 
                estimations, in consultation with component heads; and
                  ``(I) include any additional information determined 
                appropriate or relevant by the Under Secretary for 
                Management.
          ``(2) Second strategy.--The second 5-year strategy developed 
        in accordance with paragraph (2) of subsection (a) shall 
        include information required in subparagraphs (A), (B), (C), 
        (E), (F), (G), (H), and (I) of paragraph (1) and information on 
        the effectiveness of implementation efforts pursuant to the 
        Department-wide policy required in accordance with subsection 
        (c), including--
                  ``(A) the impact of such implementation on 
                departmental operations and costs; and
                  ``(B) the degree to which the Department established 
                central Department locations and co-located Department 
                components pursuant to the results of the examination 
                required by subparagraph (D) of paragraph (1).
  ``(c) Implementation Policies.--Not later than 90 days after the 
development of each of the regional real property strategies developed 
in accordance with subsection (a), the Under Secretary for Management 
shall develop or update, as applicable, a Department-wide policy 
implementing such strategies.
  ``(d) Certifications.--Subject to subsection (g)(3), the 
implementation policies developed pursuant to subsection (c) shall 
require component heads to certify to the Under Secretary for 
Management that such heads have complied with the requirements 
specified in subsection (b) before making any major real property 
acquisition or recommendation, as defined by the Under Secretary, 
including entering into any new leases, renewing any existing leases, 
or agreeing to extend or newly occupy any Federal space or new 
construction, in accordance with the applicable regional real property 
strategy developed in accordance with subsection (a).
  ``(e) Underutilized Space.--
          ``(1) In general.--The implementing policies developed 
        pursuant to subsection (c) shall require component heads, 
        acting through regional property managers under subsection (f), 
        to annually report to the Under Secretary for Management on 
        underutilized space and identify space that may be made 
        available for use, as applicable, by other components or 
        Federal or State agencies through reimbursable or other 
        agreements.
          ``(2) Exception.--The Under Secretary for Management may 
        grant an exception to the workspace standard net usable square 
        foot ranges described in subsection (b)(6) for specific office 
        locations at which a reduction or elimination of otherwise 
        underutilized space would negatively impact a component's 
        ability to execute its mission based on readiness performance 
        measures.
          ``(3) Underutilized space defined.--In this subsection, the 
        term `underutilized space' means any space with respect to 
        which utilization is greater than the workplace standard net 
        usable square foot ranges pursuant to subsection (b)(6).
  ``(f) Component Responsibilities.--
          ``(1) Regional property managers.--Each component head shall 
        identify a senior career employee of each such component for 
        each geographic region included in the regional real property 
        strategies developed in accordance with subsection (a) to serve 
        as each such component's regional property manager. Each such 
        regional property manager shall serve as a single point of 
        contact for Department headquarters and other Department 
        components for all real property matters relating to each such 
        component within the region in which each such component is 
        located, and provide data and any other support necessary for 
        the DHS Regional Mission Support Coordinator strategic asset 
        and portfolio planning and execution.
          ``(2) Data.--Regional property managers under paragraph (1) 
        shall provide annually to the Under Secretary for Management, 
        via a standardized and centralized system, data on each 
        component's real property holdings, as specified by the 
        Undersecretary for Management, including relating to 
        underutilized space under subsection (e) (as such term is 
        defined in such subsection), total square footage leased, 
        annual cost, and total number of staff, for each geographic 
        region included in the regional real property strategies 
        developed in accordance with subsection (a).
  ``(g) Ongoing Oversight.--
          ``(1) In general.--The Under Secretary for Management shall 
        monitor components' adherence to the regional real property 
        strategies developed in accordance with subsection (a) and the 
        implementation policies developed pursuant to subsection (c).
          ``(2) Annual review.--The Under Secretary for Management 
        shall annually review the data submitted pursuant to subsection 
        (f)(2) to ensure all underutilized space (as such term is 
        defined in subsection (e)) is properly identified.
          ``(3) Certification review.--The Under Secretary for 
        Management shall review, and if appropriate, approve, component 
        certifications under subsection (d) before such components may 
        make any major real property acquisition, including entering 
        into any new leases, renewing any existing leases, or agreeing 
        to extend or newly occupy any Federal space or new 
        construction, in accordance with the applicable regional real 
        property strategy developed in accordance with subsection (a).
          ``(4) Congressional reporting.--The Under Secretary for 
        Management shall annually provide information to the Committee 
        on Homeland Security of the House of Representatives, the 
        Committee on Homeland Security and Governmental Affairs of the 
        Senate, and the Inspector General of the Department on the 
        Department's real property portfolio, including information 
        relating to the following:
                  ``(A) A summary of the Department's real property 
                holdings in each region described in the regional 
                strategies developed in accordance with subsection (a), 
                and for each such property, information including the 
                total square footage leased, the total cost, the total 
                number of staff at each such property, and the square 
                foot per person utilization rate for office space (and 
                whether or not such conforms with the workspace 
                standard net usable square foot ranges established 
                pursuant to subsection (b)(6)).
                  ``(B) An accounting of all underutilized space (as 
                such term is defined in subsection (e)).
                  ``(C) An accounting of all instances in which the 
                Department or its components consolidated their real 
                property holdings or co-located with another entity 
                within the Department.
                  ``(D) A list of all certifications provided pursuant 
                to subsection (d) and all such certifications approved 
                pursuant to paragraph (3) of this subsection.
          ``(5) Inspector general review.--Not later than 120 days 
        after the last day of the fifth fiscal year covered in each of 
        the initial and second regional real property strategies 
        developed in accordance with subsection (a), the Inspector 
        General of the Department shall review the information 
        submitted pursuant to paragraph (4) and issue findings 
        regarding the effectiveness of the implementation of the 
        Department-wide policy and oversight efforts of the management 
        of real property facilities, personal property, mobile assets, 
        equipment and the Department's other material resources as 
        required under this section.''.
  (b) Reporting.--The Secretary of Homeland Security shall submit to 
the Committee on Homeland Security of the House of Representatives and 
the Committee on Homeland Security and Governmental Affairs of the 
Senate copies of the regional strategies developed in accordance with 
section 710(a) of the Homeland Security Act of 2002 (as added by 
subsection (a) of this section) not later than 90 days after the date 
of the development of each such strategy.
  (c) Clerical Amendment.--The table of contents in section 1(b) of the 
Homeland Security Act of 2002 is amended by inserting after the item 
relating to section 709 the following new items:

``Sec. 710. Chief Facilities and Logistics Officer.
``Sec. 711. Long term real property strategies.''.

                          Purpose and Summary

    The purpose of H.R. 2190 is to amend the Homeland Security 
Act of 2002 (Pub. L. 107-296) to direct the Under Secretary for 
Management of the Department of Homeland Security to make 
certain improvements in managing the Department's real property 
portfolio.

                  Background and Need for Legislation

    H.R. 2190, the Streamlining DHS Overhead Act, is the 
culmination of a multi-year Committee Majority staff 
investigation into the Department of Homeland Security (DHS) 
real property portfolio. In July 2014, the Committee began to 
examine how DHS manages its real property. As part of this 
investigation, the Committee Majority staff conducted site 
visits, examined Government Accountability Office (GAO) and the 
Department of Homeland Security Office of the Inspector General 
(OIG) reports, and met with current and former government 
officials and other subject matter experts. The Committee's 
investigation found that many of the entities that now compose 
the Department continue to have their own unique field office 
structure, different regional structures, and divergent 
approaches to managing real property, logistics, and shared 
services. DHS, as part of its own internal efforts to examine 
its real property portfolio, closely collaborated with the 
Business Executives for National Security (BENS) after the 
Committee sent a letter urging them to do so. In late 2016, 
BENS also released a report on the Department's real property 
portfolio that concurred with the Committee's findings. This 
``legacy'' way of doing business has created management 
challenges and prevented the Department from achieving 
efficiencies within its real property portfolio. By better 
managing its real property portfolio, DHS could realize tens of 
millions of dollars in savings.
    H.R. 2190 codifies the recommendations within the 
Committee's August 2016 Majority staff report, Streamlining the 
Department of Homeland Security's Overhead Will Make the 
Homeland Safer, to help DHS manage its real property portfolio 
more effectively and efficiently. The legislation also codifies 
internal DHS efforts focused on achieving efficiencies with the 
Department's real property portfolio. The Streamlining DHS 
Overhead Act mandates the development of regional real property 
strategies that focus on co-locating components and 
consolidating the number of leases and square footage within 
the DHS real property portfolio. It also requires the 
components to share more data on their real property portfolios 
with headquarters and gives the Under Secretary for Management 
additional oversight authorities, which will help DHS make more 
informed management decisions with respect to its real property 
portfolio. Finally, the bill authorizes a Chief Facilities and 
Logistics Officer within the Department. This position 
currently exists as the Chief Readiness Support Officer, which 
is not authorized in statute. Authorizing this officer, who is 
responsible for all real property related activities, should 
add accountability to DHS's real property plancning and 
decisionmaking.

                                Hearings

    No hearings were held on H.R. 2190, however the Committee 
did hold the following oversight hearings in the 114th 
Congress:
    On December 3, 2015, the Subcommittee on Oversight and 
Management Efficiency held a hearing entitled, ``Driving Away 
with Taxpayer Dollars: DHS's Failure to Effectively Manage the 
FPS Vehicle Fleet.'' The Subcommittee received testimony from 
the Honorable John Roth, Inspector General, Office of the 
Inspector General, U.S. Department of Homeland Security; Mr. L. 
Eric Patterson, Director, Federal Protective Service, U.S. 
Department of Homeland Security; and Mr. Thomas Chaleki, Deputy 
Chief Readiness Support Officer, Management Directorate, U.S. 
Department of Homeland Security.
    On September 18, 2015, the Subcommittee on Oversight and 
Management Efficiency held a hearing entitled, ``Making DHS 
More Efficient: Industry Recommendations to Improve Homeland 
Security.'' The Subcommittee received testimony from Mr. Marc 
Pearl, President and Chief Executive Officer, Homeland Security 
and Defense Business Council; Mr. Harry Totonis, Board 
Director, Business Executives for National Security; and Ms. 
Elaine Duke, Principal, Elaine Duke & Associates, LLC.

                        Committee Consideration

    The Committee met on May 3, 2017, to consider H.R. 2190, 
and ordered the measure to be reported to the House with a 
favorable recommendation, as amended, by voice vote. The 
Committee took the following actions:
    The Committee adopted H.R. 2190, as amended, by voice vote.

    The following amendments were offered:
 An en bloc amendment offered by Mr. Correa (#1E); was AGREED 
TO by voice vote.

     Consisting of the following amendments:
     Page 3, beginning line 15 through page 5, line 11, redesignate 
paragraphs (1) through (9) as subparagraphs (A) through (I), 
respectively, and move such subparagraphs, as so redesignated, two ems 
to the right.
     Page 3, line 13, strike ``The real property strategies developed 
in accordance with subsection (a) shall-'' and insert a new paragraph 
entitled ``(1) Initial Strategy.''
     Page 5, beginning line 12, insert a new paragraph entitled ``(2) 
Second Strategy.''

     Page 9, line 6, strike ``and'' and insert a comma.
     Page 9, line 8, insert ``, and the Inspector General of the 
Department'' after ``Senate''.
     Page 10, line 7, strike the closing quotes and the second period.
     At page 10, line 8, insert new paragraph entitled ``(5) Office of 
Inspector General Review.''

     Page 2, line 16, strike ``and'' after the semicolon.
     Page 2, line 21, strike the period and insert ``; and''.
     Page 2, beginning line 22, insert the following:``(3) provide 
tactical and transactional services for the Department, including 
tranportation, facility operations, and maintenance.''.
     Page 3, line 17, strike ``demand for and''.
     Page 5, beginning line 21, strike ``have investigated all 
possibilities relating to co-locating, consolidating, or partnering 
with other components'' and insert ``have complied with the 
requirements specified in subsection (b)''.
     Page 7, line 21, strike ``quarterly'' and insert ``annually''.

                            Committee Votes

    Clause 3(b) of Rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto.
    No recorded votes were requested during consideration of 
H.R. 2190.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of Rule XIII of the Rules of the 
House of Representatives, the Committee has held oversight 
hearings and made findings that are reflected in this report.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of Rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
2190, the Streamlining DHS Overhead Act, would result in no new 
or increased budget authority, entitlement authority, or tax 
expenditures or revenues.

                  Congressional Budget Office Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                                     U.S. Congress,
                               Congressional Budget Office,
                                     Washington, DC, June 19, 2017.
Hon. Michael McCaul,
Chairman, Committee on Homeland Security,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2190, the 
Streamlining DHS Overhead Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Mark 
Grabowicz.
            Sincerely,
                                                        Keith Hall.
    Enclosure.

H.R. 2190--Streamlining DHS Overhead Act

    H.R. 2190 would establish a new position--Chief Facilities 
and Logistics Officer--in the Department of Homeland Security 
(DHS) to oversee the management of DHS property and other 
assets. The bill would require DHS to develop a five-year 
strategy to consolidate properties and to use its facilities 
more efficiently. H.R. 2190 also would direct agencies within 
DHS (such as the Coast Guard and the Secret Service) to assign 
an employee in each region of the United States to manage the 
agency's properties in that part of the country.
    There are DHS personnel that currently oversee the 
management of department property, including properties for DHS 
agencies located throughout the United States. Based on 
information from DHS, we do not expect the department to hire 
new personnel to carry out the provisions of H.R. 2190. Thus, 
CBO estimates that implementing the bill would cost less than 
$500,000 annually; such spending would be subject to the 
availability of appropriated funds.
    Enacting the bill would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply. CBO 
estimates that enacting H.R. 2190 would not increase net direct 
spending or on-budget deficits in any of the four consecutive 
10-year periods beginning in 2028.
    H.R. 2190 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would not affect the budgets of state, local, or tribal 
governments.
    The CBO staff contact for this estimate is Mark Grabowicz. 
The estimate was approved by H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of Rule XIII of the Rules of the 
House of Representatives, H.R. 2190 contains the following 
general performance goals and objectives, including outcome 
related goals and objectives authorized.
    H.R. 2190 includes the following goals and objectives: 
Improving the management of the Department's real property 
portfolio; increasing component accountability with respect to 
real property matters; enhancing the Under Secretary for 
Management's oversight authorities of the real property 
portfolio; and empowering the Chief Facilities and Logistics 
Officer to achieve efficiencies within the DHS real property 
portfolio.

                      Duplicative Federal Programs

    Pursuant to clause 3(c) of Rule XIII, the Committee finds 
that H.R. 2190 does not contain any provision that establishes 
or reauthorizes a program known to be duplicative of another 
Federal program.

   Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    In compliance with Rule XXI of the Rules of the House of 
Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of the Rule 
XXI.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                        Preemption Clarification

    In compliance with section 423 of the Congressional Budget 
Act of 1974, requiring the report of any Committee on a bill or 
joint resolution to include a statement on the extent to which 
the bill or joint resolution is intended to preempt State, 
local, or Tribal law, the Committee finds that H.R. 2190 does 
not preempt any State, local, or Tribal law.

                  Disclosure of Directed Rule Makings

    The Committee estimates that H.R. 2190 would require no 
directed rule makings.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation

Section 1.   Short Title.

    This section provides that this bill may be cited as the 
``Streamlining DHS Overhead Act''.

Sec. 2.   Long Term Real Property Strategies.

    This section inserts new sections 710 and 710 in Title VII 
of the Homeland Security Act of 2002, as follows.
            Sec. 710. Chief Facilities and Logistics Officer.
    Sec. 710 authorizes the Chief Facilities and Logistics 
Officer within DHS, who currently operates in an unauthorized 
capacity as the Chief Readiness Support Officer. This 
individual shall be a career senior executive service employee 
and is responsible for managing real property, facilities, 
personal property, mobile assets, and equipment within DHS. 
This officer will provide mission support services for DHS 
headquarters and field activities within the National Capital 
Region, and also provide tactical and transactional services 
for DHS. The Committee intends for the officer to provide these 
tactical and transactional services to DHS headquarters.
            Sec. 711. Long Term Real Property Strategies.
    Sec. 711(a) mandates the development of two DHS regional 
real property strategies. The first strategy will cover the 5 
fiscal years following the enactment of this bill and the 
second strategy will cover the 5 fiscal years immediately 
following the conclusion of the first strategy.
    Sec. 711(b) outlines the requirements for the strategies. 
The strategies will focus on consolidating the Department's 
real property portfolio and decreasing the number and square 
footage of DHS's commercial leases, with the intent of 
decreasing the total cost of the DHS real property portfolio, 
by promoting cooperation and co-location between components. 
The strategies will also identify opportunities to reduce 
overhead costs by having components share mission support 
services, such as mail screening, custodial services, and 
training facilities. Finally, the strategies will establish 
maximum usable square footage ranges for all future commercial 
DHS leases and define, based on square footage, what 
constitutes a major real property decision. The second strategy 
that is developed will also include information on how DHS 
implemented the first strategy, including the impact on 
operations and costs and the degree to which central Department 
locations were established and/or components otherwise co-
located.
    Sec. 711(c) requires the Under Secretary for Management to 
develop an implementation policy for the regional real property 
strategy. This policy is to be updated, as necessary, when the 
second strategy outlined in Sec. 711(a) is developed.
    Sec. 711(d) requires DHS component heads to certify to the 
Under Secretary for Management that the component explored all 
possibilities related to co-locating, consolidating, or 
partnering with other components prior to making any major real 
property decision, as defined in the regional strategies. This 
requirement applies to new leases as well as renewing/extending 
existing leases, regardless if the space is commercially or 
Federally owned. This section does not grant the Department any 
additional decision authority or alter any real property 
related decision authorities that currently are held by the 
General Services Administration.
    Sec. 711(e) requires component heads, via regional property 
managers, to report to the Under Secretary for Management 
underutilized space and identify space that may be made 
available for use by other components within DHS. Underutilized 
space is defined as any space where the utilization rate is 
greater than the maximum square footage range outlined in the 
regional real property strategies. This accounting is strictly 
for information purposes and to provide the Chief Facilities 
and Logistics Officer with potential opportunities for co-
location. It does not grant DHS or its components the authority 
to sublease underutilized space to other entities. This section 
also grants the Under Secretary for Management the authority to 
grant specific office locations exemptions to the utilization 
rate if following the utilization rate will negatively impact 
the office's ability to carry out its mission.
    Sec. 711(f) outlines the components responsibilities 
related to the Department's real property portfolio. The 
components must identify a senior career employee to serve as a 
regional real property manager for each region outlined in the 
regional real property strategies. These regional real property 
managers will serve as points of contact for Department 
headquarters and other DHS components for all real property 
matters within a given region. These regional real property 
managers are also responsible for providing the Under Secretary 
for Management with annual updates on the components real 
property holdings, including the total amount of square footage 
leased, annual cost, and total number of staff for each 
geographic region outlined in the regional real property 
strategies.
    Sec. 711(g) provides the Under Secretary for Management 
additional oversight responsibilities with respect to the 
Department's real property portfolio. This section requires the 
Under Secretary for Management to annually review the data 
submitted by the components to ensure that all underutilized 
space is properly identified. The Under Secretary for 
Management also must review and approve all component 
certifications, as required under Sec. 711(d), prior to a 
component making a major real property decision. Each year, the 
Under Secretary for Management needs to provide Congress and 
the DHS Inspector General with an accounting of DHS's real 
property holdings in each region outlined in the regional real 
property strategies (including total square footage leased, 
cost, the number of staff, and square footage per person 
utilization rate), an accounting of all underutilized space, a 
list of all instances where DHS or its components consolidated 
their real property holdings and/or co-located with another DHS 
entity, and a list of all certifications outlined in Sec. 711 
(d) and whether they were approved or denied. After the 
submission of the two regional property strategies mandated by 
this bill, the Inspector General will issue findings on the 
Department's effectiveness in implementing the policy created 
in Sec. 711 (c) and oversight efforts related to the real 
property portfolio. Finally, the Under Secretary for Management 
must provide Congress with a copy of the regional real property 
strategies once they are finalized.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

                     HOMELAND SECURITY ACT OF 2002

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Homeland 
Security Act of 2002''.
  (b) Table of Contents.--The table of contents for this Act is 
as follows:

     * * * * * * *

                          TITLE VII--MANAGEMENT

     * * * * * * *
Sec. 710. Chief Facilities and Logistics Officer.
Sec. 711. Long term real property strategies.

           *       *       *       *       *       *       *

TITLE VII--MANAGEMENT

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SEC. 710. CHIEF FACILITIES AND LOGISTICS OFFICER.

  (a) In General.--There is a Chief Facilities and Logistics 
Officer of the Department who shall report directly to the 
Under Secretary for Management. The Chief Facilities and 
Logistics Officer shall be career reserved for a member of the 
senior executive service.
  (b) Responsibilities.--The Chief Facilities and Logistics 
Officer shall--
          (1) develop policies and procedures and provide 
        program oversight to manage real property, facilities, 
        personal property, mobile assets, equipment, and other 
        material resources of the Department;
          (2) manage and execute, in consultation with the 
        component heads, mission support services within the 
        National Capital Region for real property, facilities, 
        and other common headquarters and field activities for 
        the Department; and
          (3) provide tactical and transactional services for 
        the Department, including transportation, facility 
        operations, and maintenance.

SEC. 711. LONG TERM REAL PROPERTY STRATEGIES.

  (a) In General.--
          (1) First strategy.--Not later than 180 days after 
        the date of the enactment of this section, the Under 
        Secretary for Management shall develop an initial 5-
        year regional real property strategy for the Department 
        that covers the five fiscal years immediately following 
        such date of enactment. Such strategy shall be 
        geographically organized, as designated by the Under 
        Secretary for Management.
          (2) Second strategy.--Not later than the first day of 
        the fourth fiscal year covered by the first strategy 
        under paragraph (1), the Under Secretary for Management 
        shall develop a second 5-year real property strategy 
        for the Department that covers the five fiscal years 
        immediately following the conclusion of such first 
        strategy.
  (b) Requirements.--
          (1) Initial strategy.--The initial 5-year strategy 
        developed in accordance with paragraph (1) of 
        subsection (a) shall--
                  (A) identify opportunities to consolidate 
                real property, optimize the usage of Federal 
                assets, and decrease the number of commercial 
                leases and square footage within the 
                Department's real property portfolio;
                  (B) provide alternate housing and 
                consolidation plans to increase efficiency 
                through joint use of Department spaces while 
                decreasing the reliance on and cost of leased 
                space;
                  (C) concentrate on geographical areas with a 
                significant Department presence, as identified 
                by the Under Secretary for Management;
                  (D) examine the establishment of central 
                Department locations in each such geographical 
                region and the co-location of Department 
                components based on the mission sets and 
                responsibilities of such components;
                  (E) identify opportunities to reduce overhead 
                costs through co-location or consolidation of 
                real property interests or mission support 
                activities, such as shared mail screening and 
                processing, centralized transportation and 
                shuttle services, regional transit benefit 
                programs, common contracting for custodial and 
                other services, and leveraging strategic 
                sourcing contracts and sharing of specialized 
                facilities, such as training facilities and 
                resources;
                  (F) manage the current Department Workspace 
                Standard for Office Space in accordance with 
                the Department office workspace design process 
                to develop the most efficient and effective 
                spaces within the workspace standard net usable 
                square foot ranges for all leased for office 
                space entered into on or after the date of the 
                enactment of this section, including the 
                renewal of any leases for office space existing 
                as of such date;
                  (G) define, based on square footage, what 
                constitutes a major real property acquisition;
                  (H) prioritize actions to be taken to improve 
                the operations and management of the 
                Department's real property inventory, based on 
                life-cycle cost estimations, in consultation 
                with component heads; and
                  (I) include any additional information 
                determined appropriate or relevant by the Under 
                Secretary for Management.
          (2) Second strategy.--The second 5-year strategy 
        developed in accordance with paragraph (2) of 
        subsection (a) shall include information required in 
        subparagraphs (A), (B), (C), (E), (F), (G), (H), and 
        (I) of paragraph (1) and information on the 
        effectiveness of implementation efforts pursuant to the 
        Department-wide policy required in accordance with 
        subsection (c), including--
                  (A) the impact of such implementation on 
                departmental operations and costs; and
                  (B) the degree to which the Department 
                established central Department locations and 
                co-located Department components pursuant to 
                the results of the examination required by 
                subparagraph (D) of paragraph (1).
  (c) Implementation Policies.--Not later than 90 days after 
the development of each of the regional real property 
strategies developed in accordance with subsection (a), the 
Under Secretary for Management shall develop or update, as 
applicable, a Department-wide policy implementing such 
strategies.
  (d) Certifications.--Subject to subsection (g)(3), the 
implementation policies developed pursuant to subsection (c) 
shall require component heads to certify to the Under Secretary 
for Management that such heads have complied with the 
requirements specified in subsection (b) before making any 
major real property acquisition or recommendation, as defined 
by the Under Secretary, including entering into any new leases, 
renewing any existing leases, or agreeing to extend or newly 
occupy any Federal space or new construction, in accordance 
with the applicable regional real property strategy developed 
in accordance with subsection (a).
  (e) Underutilized Space.--
          (1) In general.--The implementing policies developed 
        pursuant to subsection (c) shall require component 
        heads, acting through regional property managers under 
        subsection (f), to annually report to the Under 
        Secretary for Management on underutilized space and 
        identify space that may be made available for use, as 
        applicable, by other components or Federal or State 
        agencies through reimbursable or other agreements.
          (2) Exception.--The Under Secretary for Management 
        may grant an exception to the workspace standard net 
        usable square foot ranges described in subsection 
        (b)(6) for specific office locations at which a 
        reduction or elimination of otherwise underutilized 
        space would negatively impact a component's ability to 
        execute its mission based on readiness performance 
        measures.
          (3) Underutilized space defined.--In this subsection, 
        the term ``underutilized space'' means any space with 
        respect to which utilization is greater than the 
        workplace standard net usable square foot ranges 
        pursuant to subsection (b)(6).
  (f) Component Responsibilities.--
          (1) Regional property managers.--Each component head 
        shall identify a senior career employee of each such 
        component for each geographic region included in the 
        regional real property strategies developed in 
        accordance with subsection (a) to serve as each such 
        component's regional property manager. Each such 
        regional property manager shall serve as a single point 
        of contact for Department headquarters and other 
        Department components for all real property matters 
        relating to each such component within the region in 
        which each such component is located, and provide data 
        and any other support necessary for the DHS Regional 
        Mission Support Coordinator strategic asset and 
        portfolio planning and execution.
          (2) Data.--Regional property managers under paragraph 
        (1) shall provide annually to the Under Secretary for 
        Management, via a standardized and centralized system, 
        data on each component's real property holdings, as 
        specified by the Undersecretary for Management, 
        including relating to underutilized space under 
        subsection (e) (as such term is defined in such 
        subsection), total square footage leased, annual cost, 
        and total number of staff, for each geographic region 
        included in the regional real property strategies 
        developed in accordance with subsection (a).
  (g) Ongoing Oversight.--
          (1) In general.--The Under Secretary for Management 
        shall monitor components' adherence to the regional 
        real property strategies developed in accordance with 
        subsection (a) and the implementation policies 
        developed pursuant to subsection (c).
          (2) Annual review.--The Under Secretary for 
        Management shall annually review the data submitted 
        pursuant to subsection (f)(2) to ensure all 
        underutilized space (as such term is defined in 
        subsection (e)) is properly identified.
          (3) Certification review.--The Under Secretary for 
        Management shall review, and if appropriate, approve, 
        component certifications under subsection (d) before 
        such components may make any major real property 
        acquisition, including entering into any new leases, 
        renewing any existing leases, or agreeing to extend or 
        newly occupy any Federal space or new construction, in 
        accordance with the applicable regional real property 
        strategy developed in accordance with subsection (a).
          (4) Congressional reporting.--The Under Secretary for 
        Management shall annually provide information to the 
        Committee on Homeland Security of the House of 
        Representatives, the Committee on Homeland Security and 
        Governmental Affairs of the Senate, and the Inspector 
        General of the Department on the Department's real 
        property portfolio, including information relating to 
        the following:
                  (A) A summary of the Department's real 
                property holdings in each region described in 
                the regional strategies developed in accordance 
                with subsection (a), and for each such 
                property, information including the total 
                square footage leased, the total cost, the 
                total number of staff at each such property, 
                and the square foot per person utilization rate 
                for office space (and whether or not such 
                conforms with the workspace standard net usable 
                square foot ranges established pursuant to 
                subsection (b)(6)).
                  (B) An accounting of all underutilized space 
                (as such term is defined in subsection (e)).
                  (C) An accounting of all instances in which 
                the Department or its components consolidated 
                their real property holdings or co-located with 
                another entity within the Department.
                  (D) A list of all certifications provided 
                pursuant to subsection (d) and all such 
                certifications approved pursuant to paragraph 
                (3) of this subsection.
          (5) Inspector general review.--Not later than 120 
        days after the last day of the fifth fiscal year 
        covered in each of the initial and second regional real 
        property strategies developed in accordance with 
        subsection (a), the Inspector General of the Department 
        shall review the information submitted pursuant to 
        paragraph (4) and issue findings regarding the 
        effectiveness of the implementation of the Department-
        wide policy and oversight efforts of the management of 
        real property facilities, personal property, mobile 
        assets, equipment and the Department's other material 
        resources as required under this section.

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