Department of Veterans Affairs

Office of Asset Enterprise Management

810 Vermont Avenue, NW

Washington, DC 20420
The Department of Veterans Affairs FY 2008 Asset Management Plan (AMP)

The Department of Veterans Affairs (VA) is committed to supporting the President’s 

Management Agenda and the Federal Real Property Asset Management Initiative. The 

Asset Management Plan (AMP) details how VA complies with Executive Order 13327 

and fully reflects the Federal Real Property Council’s current guiding principles and 

elements, which are essential for an effective Federal asset management plan. 

VA publishes its AMP on an annual basis. The AMP describes VA’s capital asset 

management philosophy and serves as the blueprint for effectively managing assets to 

provide a safe and appropriate environment for the delivery of cost-effective benefits to 

veterans. The AMP is a living document that provides a high-level view of how VA 

manages its assets, and incorporates the most up-to-date techniques and business 

practices used inside and outside of VA. 

By employing best business practices and maximizing the functional and financial value 

of our capital assets through strategic acquisitions, allocations, operations, and 

dispositions, VA will also continue to ensure that all capital investments are based on 

sound business principles and — most importantly — meet our veterans’ health care, 

benefits, and burial needs. 

Asset Management Plan FY 2008

 i

Table of Contents 

Executive Summary................................................................................................................1 

 Strategic Vision....................................................................................................................1 

 Manage What We Have Most Effectively .......................................................................1 

 Make Prudent Investments................................................................................................3 

 Measure Performance...................................................................................................3 

 Disposal ..........................................................................................................................4 

Chapter 1: Overview of VA ..................................................................................................5 

 Introduction .........................................................................................................................5 

 Veterans Health Administration (VHA)....................................................................5 

 Veterans Benefits Administration (VBA) ..................................................................5 

 National Cemetery Administration (NCA)...............................................................5 

 Staff Offices ....................................................................................................................5 

 Table 1-1: VA Capital Asset Inventory .....................................................................8 

 Major Construction.....................................................................................................10 

 Minor Construction ....................................................................................................10 

 Non-Recurring Maintenance (NRM) .......................................................................10 

 Energy...........................................................................................................................10 

 Federal Real Property Council (FRPC) ....................................................................11 

 Performance Metrics...................................................................................................11 

 Agency Mission and Strategic Goals..............................................................................11 

 Governance of VA’s Capital Management....................................................................12 

 Table 1-2: Thresholds for Capital Investments Requiring SMC Approval.........13 

 VA Capital Investment Panel....................................................................................13 

 Monthly Performance Review ..................................................................................13 

Chapter 2: VA’s Capital Assets ..........................................................................................15 

 VA’s Asset Classes............................................................................................................15 

 The Life-Cycle Approach.................................................................................................16 

 Figure 2-1: Capital Investment Life Cycle ...............................................................17 

 Formulation Stage.......................................................................................................17 

 Functional Development Phase ...........................................................................17 

 OMB 300 Application Business Case .............................................................17 

 Strategic Linkage...............................................................................................18 

 Alternatives Considered ..................................................................................18 

 Table 2-1: Potential Alternatives...............................................................19 

 Cost-Effectiveness Analysis.............................................................................19 

 Risk Analysis .....................................................................................................20 

 Technical Review Phase........................................................................................20 

 Strategic Review Phase..........................................................................................20 

 VA Capital Investment Decision Models ...........................................................21 
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 Execution Stage.............................................................................................................22 

 Steady State Stage.........................................................................................................22 

 Disposal Stage...............................................................................................................24 

Chapter 3: VA’s Capital Portfolio, Valuation and Funding............................................25 

 Book Value .........................................................................................................................25 

 Plant Replacement Value .................................................................................................25 

 VA’s Capital Asset Funding Mechanisms.....................................................................26 

 The Appropriations Process ............................................................................................26 

 Major Construction ......................................................................................................26 

 Accomplishments.........................................................................................................26 

 Challenges .....................................................................................................................27 

 Minor Construction......................................................................................................27 

 VA’s Capital Asset Budget Request Mechanisms ........................................................27 

 Maintaining VA’s Assets through Development of VA Facility Sustainment 

 Model .............................................................................................................................27 

 Non-Recurring Maintenance .................................................................................28 

 Deferred Maintenance ............................................................................................28 

 Use of Facility Condition Assessments................................................................28 

 Infrastructure Protection........................................................................................29 

 Recurring Maintenance Program..........................................................................30 

 Five-Year Capital Plan............................................................................................30 

Chapter 4: VA Performance Metrics & Evaluation Methodology .................................31 

 VA Capital Portfolio Goals ..............................................................................................31 

 Decrease Energy Utilization ............................................................................................31 

 Increase Intra/Interagency & Community-Based Sharing .........................................31 

 Increase Revenue Opportunities.....................................................................................32 

 Safeguard Assets ...............................................................................................................32 

 Maximize Highest & Best Use.........................................................................................32 

 Federal Real Property Council ........................................................................................32 

 FRPC Guiding Principles ............................................................................................33

 Federal Real Property Council Performance Metrics ..................................................33 

 Decrease Underutilized Capacity/Percent of Space Utilization as Compared to 

 Overall Space (owned and direct-leased)...........................................................34 

 Percent Condition Index (owned buildings)............................................................34 

 Ratio of Non-Mission Dependent Assets to Total Assets.......................................34 

 Decrease Operational Costs/Ration of Operating Costs per Gross Square Foot 

 (GSF).........................................................................................................................34 

 VA Performance Using FRPC Tier 1 Metrics ...........................................................35 

 Capital Asset Benchmarking ...........................................................................................35 

 Lease Benchmarks........................................................................................................35 

 Internal Benchmarks....................................................................................................36 

 Energy Benchmarks .....................................................................................................37 
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 Table 4-1: VA Facilities: Internal Energy Asset Performance Benchmarking ...38 

 External Benchmarking....................................................................................................38 

 Space and Equipment Planning System Update..........................................................39 

 Real Property and Energy Management Scorecards ...................................................39 

 Real Property Performance Results................................................................................40 

 Table 4-2: Real Property Performance Results........................................................40 

Chapter 5: Disposal...............................................................................................................43 

 VA’s Disposal Authority..................................................................................................43 

 VA’s Disposal Policy ........................................................................................................44 

 Enhanced-Use Leasing Program.....................................................................................44 

 EU Authority ................................................................................................................45 

 Benefits to VA...............................................................................................................46 

 Benefits to Developers and Local Community........................................................46 

 Transparency ................................................................................................................47 

 Project Types.................................................................................................................47 

 Recent Enhanced-Use Lease Successes ..........................................................................47 

 Sepulveda, CA – Supportive Housing for Homeless Veterans (Building 5).......47 

 Sepulveda, CA – Supportive Housing (Building 4)................................................48 

 Columbia, SC – Mixed Use/VARO/Realignment..................................................48 

 Current Enhanced-Use Leasing Projects .......................................................................49 

 Secretary’s Approved Priority List............................................................................ 49 

 Awarded Enhanced-Use Leases ................................................................................ 49 

 CARES Re-Use Studies..................................................................................................... 49 

 Background................................................................................................................... 49 

 Site Review Initiative.................................................................................................. 50 

 Federal Asset Sales Initiative....................................................................................... 52 

 Background.............................................................................................................. 52 

 Current VA Environment ...................................................................................... 52 

Chapter 6: Management Tools and Initiatives.................................................................. 55 

 Capital Asset Management System................................................................................ 55 

 Reporting....................................................................................................................... 56 

 VA Human Capital Strategy ...................................................................................... 57 

 Training .................................................................................................................... 57 

 Guidance and Policies ............................................................................................ 58 

 Energy, Environment & Transportation (EE&T) Management ................................. 60 

 Background................................................................................................................... 60 

 EE&T Programs & Program Management.................................................................... 60 

 Data & Reporting ......................................................................................................... 61 

 Results............................................................................................................................ 61 

 Collaboration with Department of Defense.................................................................. 62 

 VA/DoD Joint Strategic Plan .......................................................................................... 63 
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Chapter 7: Recent Accomplishments and Future Goals..................................................65 

 Recent Accomplishments.................................................................................................65 

 Current and Future Goals/Milestones ..........................................................................69 

 FY 2008...........................................................................................................................69 

 FY 2009...........................................................................................................................70 

 Future Federal Real Property Asset Management Goals ............................................70 

 Decision Analytics........................................................................................................71 

 Legislative Agenda ......................................................................................................71 

 Inter- and Intra- Agency Coordination.....................................................................72 

Chapter 8: Conclusion ..........................................................................................................73 

Appendices: 

 Appendix A: Capital Decision Criteria .........................................................................75 

 Appendix B: Capital Investment Decision Models .....................................................76 

 Appendix C: Actual and Planned Disposals................................................................79 

 Appendix D: Enhanced-Use Lease Projects .................................................................87 

 Appendix E: CARES Major Construction Status.........................................................95 

 Appendix F: References...................................................................................................99 
Asset Management Plan FY 2008

 1

Executive Summary

Within the Department of Veterans Affairs (VA), the Office of Management has the 

primary responsibility for the governance, oversight and policies for the 

Department’s current and future capital assets according to the guidelines and 

requirements of the Office of Management and Budget (OMB) Circular A-11, the 

Federal Real Property Council (FRPC), the Federal Acquisition Streamlining Act, and 

the Government Performance and Results Act (GPRA). Each of these guidelines has 

distinct requirements that VA has incorporated into polices for acquiring and 

managing capital assets. The major elements of these guidelines are: 

1. Strategic vision; 

2. Manage what we have most effectively; 

3. Make prudent investments; 

4. Measure performance; and 

5. Dispose or reuse assets we no longer need. 

Strategic Vision 

VA has both health care and non-health care assets. The CARES (Capital Asset 

Realignment for Enhanced Services) study is the most comprehensive analysis of 

VA’s health care infrastructure that has ever been conducted. This master planning 

process analyzed all VA medical centers, culminating in a final CARES decision that 

provided the blueprint for current and future medical facility infrastructure needs to 

support health care delivery for veterans. However, 18 sites proved to be too 

complex for the initial analysis; therefore, a second phase was conducted to determine 

suitability for future health care and re-use activities. These studies included 

evaluating outstanding health care issues to recommend health care delivery options, 

developing capital plans, as well as determining the highest and best use for 

unneeded VA property. As of Spring 2008 all 18 studies have been completed. 

Selected capital projects to implement CARES are listed in Appendix E. 

Assets not related to the CARES process are considered Non-CARES. Assets in this 

classification are acquired and managed to suit the unique functions of the National 

Cemetery Administration (NCA), the Veterans Benefits Administration (VBA), and 

Staff Offices. Non-CARES asset decisions are evaluated and scored through processes 

similar to CARES, and take the current and future benefit delivery needs of veterans 

and the mission of each resident function into consideration. 

Manage What We Have Most Effectively 

VA’s capital asset management program emphasizes ensuring capital investments 

fully support the agency mission and strategic goals across all administrations within 

the Department. VA uses a life-cycle approach to manage and maintain its assets. A 
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2

 

life-cycle management approach develops and monitors asset performance using 

physical assessment, operational and financial criteria. There are four stages in the 

life-cycle of capital assets: formulation, execution, steady state, and disposal. 

The formulation stage of asset acquisition includes the following: identifying a need, 

concept definition, business case development, technical and strategic review, 

business case approval, funding authorization, and budget appropriation. The 

execution stage of the life-cycle includes the project award or procurement of the 

asset; the steady-state stage is the operations and maintenance phase of in-service 

assets; and the disposal stage is the final stage in the life-cycle where assets are retired 

or disposed of. 

During the steady state of an asset, it is VA policy to fully fund the maintenance and 

repair of medical equipment and critical facility systems. VA must also account for 

the estimated costs of deferring maintenance on all other asset types. Deferred 

maintenance is the delaying of maintenance and routine repairs that may result in 

either physical damage, lack of performance, or a decline in the useful life or 

production of its assets. The failure to properly address routine maintenance and 

repairs over time increases the operational funding required to maintain and repair 

existing assets. VA’s estimated deferred maintenance costs for financial purposes, as 

of the end of FY 2007: $3.7 billion. 

VA also tracks its infrastructure needs through Facility Condition Assessments 

(FCAs). FCAs include correction estimates for VA-owned land and buildings. Land 

and buildings, including major systems, found to be in poor condition, critical 

condition, or at the end of its useful life-cycle are identified in the FCA reporting 

process. Correction costs do not include those major systems that are rated in fair or 

better condition. VA’s total infrastructure FCA-needs are approximately $6.9 1 billion 

as supported by the VA’s comprehensive Facility Condition Assessment Report. 

The Department is addressing the current FCA deficiencies by: 

 Providing $1.028 billion in funding to upgrade, maintain, or replace 

existing facilities. 

 Utilizing $573 million in non-recurring maintenance (NRM) funds in FY08 

to address maintenance and FCA deficiencies; $550 million in FY07 

supplemental appropriations and $326 million in additional FY08 

appropriations to address FCA needs. 

 Requesting $1 billion in NRM to address maintenance and FCA issues. 

1

 As of June 1, 2008, the FCA needs are approximately $6.9 billion. 
Asset Management Plan FY 2008

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Make Prudent Investments 

VA develops and implements capital asset management tools and initiatives in order 

to improve asset management to ensure all capital investments are based on sound 

business principles and – most importantly – meet our veterans’ health care, benefits, 

and burial needs. 

 OMB Exhibit 300/Business Case Applications: Business cases include a 

detailed project description and justification, with a focus on strategic 

mission alignment; implementation information; cost and schedule 

information; alternatives considered; cost-effectiveness analysis; and risk 

analysis. 

 VA Capital Investment Decision Models: VA’s capital investment decision 

models provide a structure to evaluate capital investment proposals. Each 

investment proposal that passes the validity assessment is weighted and 

scored by the VA Capital Investment Panel, (VACIP) using customized 

decision models and analytic hierarchy software. The scores generated by 

the decision software result in a list of investments ranked in priority order 

for potential funding and execution. These scored proposals are presented 

to the Strategic Management Council (SMC) for recommendation to the 

Secretary for inclusion in the annual budget submission. 

As a result of the capital investment process for CARES, VA fully or partially funded 

42 major construction projects from FY 2004-2009 2. The total cost of the 42 projects is 

$6.2 billion and $3.9 billion 2 has been appropriated for these projects. Of these 42 

projects, Chicago, Pensacola, North Chicago, San Diego, and Tampa are physically 

complete. There are two projects that meet the definition of CARES but are funded 

outside the CARES investment process. These two projects are Biloxi and New 

Orleans, which received emergency appropriations due to Hurricane Katrina. 

Measure Performance

The Department tracks the project management performance of its asset acquisitions 

such as construction projects. During the asset execution stage, VA monitors the time 

schedules and costs of active projects and compares them against the planned 

schedule. Project management measures are important to ensure projects are 

completed in a timely and cost-effective manner. They also provide early alerts of 

unnecessary delays and/or cost overruns. 

The performance of VA’s operational assets, which occur during the steady state of an 

asset’s life cycle, is measured against VA’s capital portfolio goals and Federal Real 

Property Council (FRPC) measures. Aligned with the FRPC measures, the VA capital 

portfolio goals ensure resources are maximized, assets (including veterans and VA 

staff) are safeguarded, and all opportunities (public, private, or a combination 

 

2

 The $3.9 billion includes VA’s FY09 request of $397,652,000 for major construction projects. 
Asset Management Plan FY 2008

4

thereof) are fully explored. The goals allow VA senior management to monitor the 

overall health of the Department’s capital asset portfolio and engage in corporate 

decision-making. 

Additionally, VA measures asset performance by comparing its assets internally and 

externally through benchmarking. VA’s Capital Asset Management System (CAMS) 

provides the means and data to compare certain asset expenses to industry or 

commercial benchmarks for its leasing and energy programs. Benchmarking and 

trend analyses are also done within VA, encompassing comparisons across fiscal 

years and between VA facilities. 

Disposal

Disposal is the final stage in the life cycle of an asset. When VA determines that an 

asset is no longer needed, disposal or reuse of the asset is considered. VA’s real 

property disposal policy, Managing Underutilized Real Property, Including Disposal

(VA Directive and Handbook 7633) provides a standard methodology and criteria for 

identifying appropriate underutilized assets for divestment. 

When a real property asset is recommended for disposal, other VA entities are given 

the opportunity to express interest in it. If there is no internal VA interest in the 

asset, other disposal modalities may be considered in the priority order: enhanceduse leasing, sharing, out-leasing, licenses, permits, easements and transfers (i.e., 

disposal via enhanced-use leasing authority, Capital Asset Fund, the State Veterans 

Home program, and GSA authority) and like-kind exchanges. If none of these 

options is viable, the property will become available for reuse by other Federal 

agencies. If no other agency is interested, VA may utilize deconstruction, 

mothballing, or demolition. 
Asset Management Plan FY 2008

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CHAPTER 1: OVERVIEW OF VA 

Introduction 

VA provides world-class benefits and services to the millions of men and women who 

have served this country with honor in the military. President Lincoln’s words 

spoken nearly 150 years ago – “To care for him who shall have borne the battle, and 

for his widow, and his orphan” – guide the efforts of more than 235,000 VA 

employees who are committed to providing the best medical care, benefits, social 

support, and lasting memorials to veterans and their dependents in recognition of 

veterans’ service to this Nation. Within VA, there are staff offices as well as three 

Administrations: Veterans Health Administration (VHA), Veterans Benefits 

Administration (VBA), and National Cemetery Administration (NCA). 

Veterans Health Administration (VHA) 

VA operates the largest direct health care delivery system in America. VA meets the 

health care needs of America’s veterans by providing a broad range of primary care, 

specialized care, and related medical and social support services. VHA has a wide 

range of land (15,708 acres), buildings (4,894) and equipment to accomplish VA’s 

mission. 

Veterans Benefits Administration (VBA)

VBA provides many benefits to the Nation’s veterans: compensation benefits, 

pension benefits, education opportunities, vocational rehabilitation and employment 

services, homeownership opportunities, and insurance services. VBA has smaller 

equipment and land requirements than VHA, with the majority of its space needs 

provided through direct or GSA leases (3, 742,084 SF). 

National Cemetery Administration (NCA)

Through the National Cemetery Administration, VA honors veterans with final 

resting places in national shrines and lasting tributes that commemorate their service 

to the Nation. NCA requires land (16,770 acres) and equipment to accomplish VA’s 

mission. 

Staff Offices

The Department’s staff offices are critical to VA’s ability to deliver services to veterans 

in a cost-effective manner. These offices provide a variety of services including 

human resources management, financial management, information technology, 

acquisition, and facilities management. Each Administration has its own asset 
Asset Management Plan FY 2008

6

management function to implement and manage the goals and objectives of the 

Department. 

Office of Asset Enterprise Management (OAEM) 

OAEM is one of six organizations under the jurisdiction of the Assistant Secretary for 

Management. The Office of Management (OM) has two distinct missions: (1) to 

support VHA, VBA, NCA, BVA, and staff offices as VA provides benefits and services 

to our Nation’s veterans; and (2) to promote public confidence through stewardship 

and oversight of VA business activities, ensuring their consistency with national 

policy, law, and regulation. OM provides this support through strategic and 

operational leadership for budget, financial management, acquisition and logistics, 

and asset enterprise management functions. 

OAEM provides oversight in the capital asset arena and works collaboratively with 

all areas of the Department to ensure capital investments are based on sound business 

practices and principles and – most importantly – meet our veterans’ health care, 

benefits, and burial needs. 

OAEM has primary responsibility for developing and promulgating the governance 

policies, processes, decision-making, and performance measuring systems related to 

the Department’s capital asset management. These responsibilities include 

publishing the Asset Management Plan (AMP), coordinating the Presidential budget 

and 5-Year Capital Plan for VA’s Major and Minor Construction programs, the 5-Year 

Disposal Plan, as well as other infrastructure related programs and initiatives. 

OAEM also participates as a key member on Federal interagency and White House 

task forces, committees and councils that cover all aspects of effective stewardship, 

accountability, and policy guidance for real property and capital assets in the Federal 

government. OAEM also interfaces with OMB, GAO, Congress and interagency task 

forces and work groups for the Department on VA capital programs. 

Office of Construction and Facilities Management

To continue improving VA’s capital programs, the Department has centralized and 

realigned VA’s construction and real estate programs. On February 18, 2007, VHA’s 

Office of Facilities Management reorganized and became realigned to the Office of the 

Secretary as the Office of Construction & Facilities Management (CFM). CFM 

provides design, major construction and lease project management, design and 

construction standards, and historic preservation services and expertise to deliver 

high quality and cost effective facilities in support of our Nation’s veterans. CFM’s 

customers are VA employees in medical centers, community based clinics, regional 

offices and national cemeteries. 
Asset Management Plan FY 2008

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Key Strategic Planning Tool: Capital Asset Realignment for Enhanced Services 

The Capital Asset Realignment for Enhanced Services (CARES) initiative—a 

strategic planning process—provided a system-wide, data-driven assessment of 

veterans’ health care needs within geographic markets, assessed the condition of 

the infrastructure, and produced recommendations for the strategic realignment of 

capital assets and related resources to better serve the needs of veterans. This 

process identified the necessary infrastructure to provide high-quality health care 

to veterans where it is most needed now, and in the future. 

Through CARES, VA bases its plan for enhanced health care services on objective 

criteria and analysis as well as cost-effectiveness, and in some cases, significant 

capital asset restructuring. These plans take into account future trends in health 

care delivery including changes in technology, demographic projections, physical 

plant capacity, community health care capacity, facility condition assessments, and 

work force requirements. 

CARES provided a fundamental cornerstone upon which the capital asset 

philosophy and strategies for the vast majority of VA’s asset inventory are 

anchored. 

VA Capital Asset Inventory 

VA has a vast holding of diverse capital assets consisting of VA-owned buildings 

and real estate, VA-leased buildings, enhanced-use and sharing agreements 

pertaining to capital assets and major equipment. Assets include hospitals, clinics, 

cemeteries, office buildings, and medical and non-medical equipment. 

Overall, VA owns 5,242 buildings and 32,643 acres, holds 1,170 leases, and maintains 

546 asset-related agreements. Each administration and VA’s Staff Offices maintain 

portfolios of both owned and leased assets and agreements to serve their 

organizational needs. Table 1-1 reports each organization’s portfolio of assets. Each 

organization is briefly described in Table 1-1 on the following page. 
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Table 1-1: VA Capital Asset Inventory 

VA Capital Asset Inventory - Data as of: End of Year, 2007 

VA Capital Owned Assets Leased Assets Asset-Related Agreements 

Asset 

Management 

System 

Bldgs. Historic 

Bldgs. 

SF Vacant 

SF 

Acres Leases SF Enhanced 

Use 

Leases * 

Outlease 

Agreements 

** 

Sharing 

Agreements 

Energy 

Conservation 

Measures 

VHA 4,894 1,531 142,035,581 7,275,484 15,708 956 7,608,797 43 319 184 313 

VBA 7 0 605,018 0 0 173 3,742,084 0 0 0 0 

NCA 334 112 965,839 0 16,770 4 8,715 1 4 0 0 

SO 7 1 1,592,008 0 165 37 1,771,994 2 3 0 0 

VA TOTALS 5,242 1,644 145,198,446 7,275,484 32,643 1,170 13,131,590 46 326 184 313 

* Includes only Awarded EU Agreements 

** Includes Outleases, Permits, Licenses, 

 Intra-Agency, and Inter-Agency Agreements 

Department of Veterans Affairs Office of Asset Enterprise Management 

Veterans Health Administration (VHA); Veterans Benefits Administration (VBA); National Cemetery 

Administration (NCA); Staff Offices (SO) 

VA has implemented its capital asset management philosophy based on the 

Government Performance and Results Act (1993); Federal Acquisition Streamlining 

Act (1994); OMB’s Capital Programming Guide (Appendix 13 of OMB Circular A-11); 

Executive Order 13327, Federal Real Property Asset Management; Executive Order 

13423, Strengthening Federal Environmental, Energy, and Transportation 

Management ; the Energy Policy Act of 2005; the Energy Independence and Security 

Act of 2007; and other Federal initiatives. 

 Government Performance and Results Act (1993): The Government 

Performance and Results Act (GPRA), holds Federal agencies accountable for 

using resources wisely and achieving program results. GPRA requires 

agencies to develop plans for what they intend to accomplish, measure how 

well they are doing, make appropriate decisions based on the information they 

have gathered, and communicate information about their performance to 

Congress and the public. 

GPRA requires agencies to develop a five-year Strategic Plan, which includes a 

mission statement and long-term goals and objectives; Annual Performance 

Plans, which provide annual commitments toward achieving the goals and 

objectives presented in the Strategic Plan; and Annual Performance Reports, 

which evaluate an agency's progress toward achieving performance 

commitments. 

 Federal Acquisition Streamlining Act (1994): This act requires Federal agencies 

to demonstrate sound decision-making and a results-oriented focus when 

planning for projects and to effectively manage ongoing programs to achieve 

intended results. 
Asset Management Plan FY 2008

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 OMB’s Capital Programming Guide (Appendix 13 of OMB Circular A-11): The 

Capital Programming Guide provides guidance for a disciplined capital 

programming process, as well as techniques for planning and budgeting, 

acquisition, and management and disposition of capital assets. Agencies are 

provided flexibility in how they implement the capital programming process. 

This guide is the template for Federal agencies to use long-range planning and 

a disciplined, integrated budget process as the basis for managing a portfolio 

of capital assets. The expected results are decisions that lead to achievement of 

performance goals with the lowest life-cycle costs and least risk. This process 

should provide agency management with accurate information on acquisition 

and life-cycle costs, schedules, and performance of current and proposed 

capital assets. 

 Executive Order 13327, Federal Real Property Asset Management: The Federal 

Real Property Asset Management Executive Order (EO) mandates all agencies 

establish asset management plans. The Federal Real Property Council 

established 24 data elements for real property that all agencies are to report on 

annually at the asset level including the four performance measures: 1) 

Utilization Rate; 2) Operations and Maintenance Cost; 3) Condition Index; and 

4) Mission Dependency. 

 Energy Policy Act of 2005 (EPAct 2005): EPAct 2005 sets a new reporting 

baseline (2003) and annual target (2%) for Federal agency energy efficiency 

improvement. It also calls for building-level electric metering in all Federal 

buildings by 2012; reauthorizes Federal authority for energy savings 

performance contracting through FY 2016; mandates that new Federal 

construction and major renovation projects incorporate the Five Guiding 

Principles of Sustainable Design and be designed to 30% below ASHRAE 

(American Society of Heating, Refrigerating and Air-Conditioning Engineers) 

standards; and sets minimum renewable electricity consumption targets by 

year. 

 Executive Order 13423, Strengthening Federal Environmental, Energy, and 

Transportation Management: President Bush signed this executive order (EO) 

on January 24, 2007. It builds on and supersedes five previously issued 

“Greening the Government” EOs. Among other provisions, the EO sets the 

following new and more stringent requirements: 1) Achieve a reduction in 

energy consumption intensity (vs. FY 2003 baseline) of 3% annually from FY 

2006-2015; 2) Achieve reduction in water consumption intensity (vs. FY 2007 

baseline) of 2% annually from FY 2008-2015; 3) Ensure that 50% of required 

renewable energy comes from new sources (those placed in service after 

January 1999); and 4) By 2015, 15% of building inventory to incorporate the 

sustainable practices in the Guiding Principles for Federal Leadership in High 

Performance and Sustainable Buildings. For new Federal construction it sets 
Asset Management Plan FY 2008

10

additional requirements: 1) A 30% reduction in energy usage in new facilities; 

2) A 20% reduction in energy usage for major renovations; 3) Implementation 

of a collaborative, integrated planning and design process; 4) Total building 

commissioning; 5) A 20% reduction of potable water and ; 6) Other 

sustainability practices based on the Guiding Principles of Federal Leadership. 

 Energy Independence and Security Act of 2007 (EISA 2007): This act, among 

other things, integrated EPAct 2005 and EO 13423 energy efficiency goals for 

Federal agencies, providing a schedule through 2008 and mandating 3% 

annual improvement thereafter through 2015. It also requires agencies to 

conduct energy audits at facilities constituting at least 75% of total agency 

energy use every 4 years; mandates web-based tracking of energy conservation 

measure implementation and use of a benchmarking system; calls for 

equivalent metering of natural gas and steam use; and sets stringent fossil fuel 

use reductions for new construction and major renovation projects. 

VA acquires, manages and maintains its capital assets through the following 

programs: 

Major Construction

The Major Construction Program is for constructing, altering, extending, and 

improving any VA facility, including planning, architectural and engineering 

services, Capital Asset Realignment for Enhanced Services (CARES) activities, and 

assessments and site acquisition where the estimated cost of a project is greater than 

$10 million. 

Minor Construction

The Minor Construction Program is for constructing, altering, extending and 

improving any VA facility, including planning, assessment of needs, architectural 

and engineering services, site acquisition and disposition, where the estimated cost 

of a project is $10 million or less. 

Non-Recurring Maintenance (NRM)

Non-Recurring Maintenance (NRMs) projects are the primary source for 

infrastructure upkeep, replacement and upgrades for medical and administrative 

facilities as well as national cemeteries. These projects are also used to provide a safe 

and effective environment by correcting critical infrastructure deficiencies as 

indicated in the Facility Condition Assessment (FCA) report. NRM projects range in 

size from just a few thousand dollars to several million dollars. 

Energy

VA’s energy management program is designed to meet the requirements of the 

Energy Policy Act of 2005 and EO 13423, the Energy Independence and Security Act 

of 2007 (EISA 2007), and to achieve internal goals. Since September 2005, a 
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11

Department-wide, cross-functional task force has been coordinating energy 

management activities. This task force is responsible for facilitating implementation 

of VA’s Energy Management Action Plan, which serves as VA’s blueprint for 

meeting its energy challenges. The energy program expanded in FY 2007 to include 

environment and vehicle fleet management, and encompasses sustainable building 

as well. 

VA evaluates its portfolio of capital assets through the following: 

Federal Real Property Council (FRPC)

In January 2003, the Government Accountability Office (GAO) designated federal real 

property a high-risk area in its Performance and Accountability Series: Major Management 

Challenges and Program Risks. GAO cited long-standing problems with excess and 

underutilized property, deteriorating facilities, unreliable real property data, and 

costly space in its initial report on the topic. 

To address and reinforce major reform efforts, Executive Order 13327, Federal Real 

Property Asset Management created the FRPC. The FRPC is chaired by the Deputy 

Director of OMB. Members include the Controller of OMB, the Administrator of 

General Services Administration (GSA), and the appointed Senior Real Property 

Officers from every federal agency. The Assistant Secretary for Management serves 

as VA’s Senior Real Property Officer. Collectively the FRPC develops guidance and 

establishes asset management principles, collects specified inventory data elements, 

and performance measures for all Federal agencies. 

Since its inception in 2004, VA has fully participated in FRPC efforts. This 

participation includes an active role in three of the FRPC (sub) committees. They are 

the Asset Management Plan Committee, Inventory and Performance Measures 

Committee and Systems Committee. These committees generally meet on a quarterly 

basis. GSA publishes common performance measures and standards adopted by the 

FRPC. 

Performance Metrics

VA follows FRPC guidance and OMB reporting requirements, in addition to 

developing its own performance metrics. Asset performance is compared using both 

internal and external benchmark analysis. Within VA, benchmarking encompasses 

comparisons across fiscal years and between VA facilities. 

Agency Mission and Strategic Goals

VA’s capital asset management philosophy emphasizes ensuring capital investments 

fully support the agency mission and strategic goals. Capital investments must 

contribute to carrying out the Department’s mission by filling performance gaps. 

This important linkage between capital asset investment and performance and the 
Asset Management Plan FY 2008

12

Department’s mission and strategic goals is stressed throughout the life cycle of an 

investment. 

VA strives to meet the needs of the Nation’s veterans and their families today and 

tomorrow by: 

 Functioning as a single, comprehensive provider of seamless service to 

the men and women who have served our Nation; 

 Cultivating a dedicated VA workforce of highly skilled employees who 

understand, believe in, and take pride in our vitally important mission; 

 Continuously benchmarking the quality and delivery of our service 

with the best in business and using innovative means and high 

technology to deliver world-class service; and 

 Fostering partnerships with veterans’ service organizations, the 

Department of Defense and other Federal agencies, state and local 

veterans organizations, and other stakeholders to leverage resources 

and enhance the quality of services provided to veterans. 

VA’s strategic goals guide our asset management goals. VA’s goals are listed below: 

Strategic Goal 1 - Restore the capability of veterans with disabilities to the greatest 

extent possible and improve the quality of their lives and that of their families. 

Strategic Goal 2 - Ensure a smooth transition for veterans from active military 

service to civilian life. 

Strategic Goal 3 - Honor and serve veterans in life and memorialize them in death 

for their sacrifices on behalf of the Nation. 

Strategic Goal 4 - Contribute to the public health, emergency management, 

socioeconomic well-being, and history of the Nation. 

Enabling Goal - Deliver world-class service to veterans and their families by 

applying sound business principles that result in effective management of people, 

communications, technology, and governance. 

Governance of VA’s Capital Asset Management 

The Strategic Management Council (SMC) is the governing body within VA 

responsible for overseeing effective and efficient capital asset management. Chaired 

by the Deputy Secretary and composed of the deputies to each administration, as 

well as the heads of a number of key staff offices, the SMC oversees the approval of 

all capital investment proposals that exceed certain thresholds, represent a high risk 

or high visibility, or are crosscutting. The SMC assesses and reviews capital 

investment proposals; evaluates, scores, and prioritizes proposals; and makes 
Asset Management Plan FY 2008

13

recommendations to the Secretary for final approval. The table below provides the 

capital investment thresholds by asset category requiring SMC review. 

Table 1-2: Thresholds for Capital Investments Requiring SMC Approval 

Total Acquisition Costs

Categories VHA VBA 3 NCA Staff Offices

Infrastructure Proposals 1

Medical Equipment

Non-Medical Equipment

Information Technology:

Total Acquisition Costs or

Life-Cycle Costs

Leases/GSA Space Assignments

Categories

Enhanced-Use Leases 4

Enhanced Sharing Agreements 5

Thresholds for Capital Investments Requiring Submission for Information Purposes Only

$10M $10M $10M

$1M/piece N/A N/A

$500,000/piece $500,000/piece $500,000/piece

$10M or

$30M

$2M or

$6M

$1M or

$3M

$1M or

$3M

$600,000 $600,000 $600,000

$7M/Facility or

$10M/Multiple Facilities

$7M/Facility or

$10M/Multiple Facilities

$7M/Facility or

$10M/Multiple Facilities

$7M/Facility or

$10M/Multiple Facilities

$600,000

$500,000/piece

N/A

$2M

Energy Savi gs Performance

Contracts

n

2

Total Acquisition Costs

VHA VBA 3 NCA Staff Offices

$7M $7M $7M $7M

$7M N/A N/A N/A

1Threshold includes the Construction and Medical CARE (NRM) appropriations.

2Multiple facilities means more than two facilities, with not one of the involved facilities value in the task order exceeding $7.0M. 3Business case application required for all new regional office building (at new or existing sites) in excess of $4.0M. These will be reviewed by the

 Office of Management as part of the operating budget plan approval process.

Total value of proposal exceeds $7.0M in NPV over the term of the proposal (both VA and developers).

Enhanced Sharing Agreements for space will use the E-U threshold. For all other VHA categories, existing threshold will apply.

4

5

VA Capital Investment Panel

The VA Capital Investment Panel (VACIP) is a senior staff level body created to 

support the SMC. The panel is the liaison for the SMC and the administrations in 

evaluating, improving or defending both the capital investment process and 

individual proposals. The VACIP’s role is to assess and review capital investment 

proposals, evaluate, score, and prioritize proposals, and make recommendations to 

the SMC. As part of the VA’s capital investment and planning process, all major 

capital investments are evaluated using a multi-criteria, weighted decision model. 

 VA evaluates the capital decision models criteria on an annual basis to ensure the 

models appropriately reflect the current priorities, strategic goals and policy 

decisions. 

Monthly Performance Review

At the steady-state life-cycle phase, the performance of capital assets are tracked and 

reported for oversight at two levels. A business group, chaired by OAEM and made 

up of administration and staff office representatives, meets on a quarterly basis to 

review and validate asset performance reports. Underperforming assets are 

discussed with the group representatives. If necessary, the business group 

representatives are asked to prepare action plans to correct underperforming assets. 
Asset Management Plan FY 2008

14

Capital asset performance reports are presented quarterly at the Secretary’s Monthly 

Performance Review (MPR). The reports cover year-to-date performance and year-toyear comparisons for VA overall and the administrations. The reports also share 

administration action plans and progress, and incorporate plans for continuing 

capital portfolio improvements. The quarterly MPR reports are a critical decisionmaking element of VA’s President’s Management Agenda (PMA) Real Property 

Initiative and scorecard. 
Asset Management Plan FY 2008

15

CHAPTER 2: VA’S CAPITAL ASSETS 

The fundamental goal of VA’s capital asset philosophy is to ensure that all major 

capital decisions, including high-risk and/or mission-critical projects, are based upon 

sound business and economic principles; promote the One VA vision by linking 

diverse but complimentary objectives; align with the overall strategic goals and 

objectives of VA; address the Secretary’s priorities by emphasizing program 

objectives in support of internal goals; and support the President’s Management 

Agenda. 

VA Asset Classes 

VA’s capital asset portfolio consists of four categories. VA views these assets as a 

single comprehensive portfolio. At each stage of the asset’s life cycle, VA’s corporate 

portfolio goals help identify deficiencies that VA can target to improve asset 

efficiency and effectiveness in delivering services to veterans. VA’s asset classes 

include: 

1. Buildings and Land

 Building systems, additions, new construction, renovation, 

parking garages, and acquisitions and disposal of properties. 

This category also includes site acquisitions. 

2. Equipment 

 Medical Equipment: Any diagnostic or treatment modality used 

in the delivery of health care. This category includes items such 

as cardiac-catheterization laboratory equipment, magnetic 

resonance imaging, and linear accelerators. 

 Non-Medical Equipment: Non-recurring equipment items that 

are used by VA for services not related to patient diagnostics.

3. Leases/General Services Administration (GSA) Space Assignments 

 Direct Lease: A contract vehicle that enables VA to become a 

tenant and rent space and accompanying building services for a 

specified period at a negotiated rate. 

 GSA Space Assignment: Leased space acquired from GSA. 
Asset Management Plan FY 2008

16

4. Agreements 

 Energy Savings Performance Contracts (ESPC): A legislated 

mechanism that allows Federal agencies the option to pay for 

energy efficiency improvements over multiple years out of 

operating budgets, based on the savings generated by the 

improvements. VA’s energy management program features 

ESPC as one among a set of prioritized energy investment 

funding and procurement vehicles. An ESPC contractor is 

competitively selected to invest its capital in a set of VAidentified energy improvements, which result in significantly 

reducing VA energy costs and consumption over what would 

have been the case had the investment not been made. VA 

repays project costs out of the stream of cost savings generated 

by the energy improvements. 

 Enhanced-Use Leasing: Leasing underutilized VA property on a 

long-term basis to non-VA users for uses compatible with VA’s 

mission. The Department is able to obtain facilities, services, 

money, or other in-kind consideration for VA requirements that 

would otherwise be unavailable or unaffordable. 

 Enhanced Sharing Agreement: Allows individual medical 

facilities to contract for services with any health-care provider, 

entity or individual. These contracts can include a wide array of 

health care resources. There are no maximum dollar limitations 

for the investments. 

The Life-Cycle Approach 

Many of the asset management principles to which VA adheres, and which the 

Federal Real Property Council (FRPC) has endorsed, are being implemented through 

a life-cycle approach. The Department’s asset management philosophy is to reduce 

underutilized space and the associated operating costs. The Department employs 

performance management techniques to monitor asset performance on a regular 

basis through the entire life cycle of an asset. Each significant capital investment is 

tracked through its entire life cycle: formulation, execution, steady state, and 

disposal. The chart on the following page represents the life-cycle process. 
Asset Management Plan FY 2008

17

Figure 2-1: Capital Investment Life Cycle 

Milestone 0-1 Milestone 2 Milestone 3 Milestone 4 

Steady-state Disposal 

Project award through 

build-out 

Maintenance in the 

operational state 

Formulation Execution

The retirement and 

disposal of assets 

Concept definition to 

funding authorization & 

budget appropriation or 

business case approval 

1. Formulation Stage

The formulation stage of the life-cycle approach begins when a need is identified and 

the concept for a capital asset is developed and proposed. The formulation stage 

ends when the business case is approved and the asset is funded. The three phases 

within the formulation stage are discussed below. 

Functional Development Phase: The functional development phase is at 

the operational level, and may occur either at Central Office or the field 

level. This phase is where needs are realized, gap analyses are 

completed, proposals are developed, and solutions are ultimately 

applied. In this phase, initial ideas for capital investments are developed 

and concept papers are completed. 

The functional development phase provides the foundation to support 

the need for a new capital asset. Data is gathered on strategic linkage, 

alternatives, cost-effectiveness and risk as the business case is formed. 

The varying levels of review strengthen the case for a new capital asset. 

Proposals undergo review first within each administration (VHA, VBA, 

and NCA) or staff office. A decision is made whether to return the 

proposal for further development, decline the proposal, or forward the 

proposal for higher-level consideration by the SMC. 

OMB 300 Application Business Case 

As part of the functional development phase, OMB Exhibit 300 business 

case applications are developed. These comprehensive Exhibit 300 

business case applications contain much of the information needed for 

senior management to make well informed decisions regarding specific 

capital assets. VA has utilized the Exhibit 300 application since FY 2000 

and began entering Exhibit 300 applications in the VA’s Capital Asset 

Management System (CAMS) beginning in the FY 2004 budget cycle. 

The business case application captures critical asset specific information 

including building profile, performance measures and goals, financial 

management data, and exit strategy and serves as an historical record. 
Asset Management Plan FY 2008

18

As a web-based system, CAMS allows VA personnel including facility 

managers, capital asset managers, project managers, and Central Office 

staff to access the application and update or track project performance 

throughout the asset’s life cycle. The most important elements of the VA 

business case include: 

 Detailed project description and justification, with a focus on strategic 

alignment; 

 Implementation information; 

 Cost and schedule information; 

 Alternatives considered; 

 Cost-effectiveness analysis; and 

 Risk analysis. 

The information contained in CAMS allows VA to capture and review detailed 

project information and strategic linkages for capital investment decisions. 

For the FY 2010 planning cycle VA improved the application review process 

for VHA major construction projects to better gauge the cost of these projects. 

In order to develop more accurate cost and project scopes, VA decided to 

prioritize its projects earlier in the planning cycle than in previous years. To 

accomplish this, the Exhibit 300 business case application and corresponding 

decision model criteria were revised, with more emphasis placed on improving 

infrastructure quality, workload projections, and strategic goals. 

By making the review process earlier in the budget preparation cycle, VA is 

allowing its engineers and cost estimators additional time to develop more 

refined project proposals to submit as part of the 2010 budget request, as well 

as future budget years. This process improvement will allow VA to make 

better informed decisions on which projects to recommend for funding going 

forward. 

Strategic Linkage 

Each application must provide a description and justification that addresses 

VA or administration-specific strategic goals. 

Alternatives Considered 

An alternatives analysis is an evaluation of all feasible options addressing a 

known performance gap. Options are evaluated against each other to 

determine potential strengths and weaknesses prior to requesting project 

funding. The comparison of strengths and weaknesses allows the Department 

to make a sound decision on the options considered. 
Asset Management Plan FY 2008

19

OMB has provided a list of seven possible alternatives which can be 

considered during the formulation stage of a capital asset project. During the 

formulation of a proposal, a minimum of four alternatives must be considered, 

one of which must be the status quo to use as a comparative baseline. Two 

other alternatives that must also be investigated are renovation and contracting 

out. Other alternatives that can be considered during the formulation process 

are build, buy, lease, and share. The Exhibit 300 has a specific section for 

entering alternatives analysis data as well as a section for explaining why the 

chosen option is the preferred option for meeting program goals. The table on 

the below presents potential alternatives for the project categories including 

but not limited to the following options: 

Table 2-1: Potential Alternatives3

Project Category Renovate Build Buy Lease Status 

Quo Share 

Contract 

for 

Function 

Total 

Options 

 Infrastructure x X x x x x X 7 

Lease X X x x X 5 

Non-Medical 

Equipment 

 X x x x X 5 

Medical 

Equipment 

 X x x x X 5 

Enhanced-Use 

Leasing 

 X X x x x 5 

Enhanced Sharing 

Agreement (ESA) 

 X x x x 4 

Energy Savings 

Performance 

Contract (ESPC) 

x X X x x 5 

Cost-Effectiveness Analysis 

Cost-effectiveness analysis (CEA) is an important component of the VA 

decision-making process. It is a useful tool for evaluating competing 

alternatives. Cost-effectiveness analysis evaluates the total life-cycle costs per 

project, and then compares it against other viable alternatives (e.g., lease, build, 

contract out) and the status quo. Each capital investment project application 

has a section devoted to CEA. VA has developed a standard template to 

collect and analyze significant cost data and compare alternatives. Once users 

populate the constant value fields in the template, it automatically calculates 

 

3

 Alternatives in this table are for illustrative purposes only and are not to be construed as a complete listing as 

enhanced-use leases, enhanced sharing agreements, and energy savings performance contracts that have multiple 

options. 
Asset Management Plan FY 2008

20

inflated and discounted values including net present value for all the 

alternatives considered. This data is reviewed by the VACIP to assist VA in 

making sound capital decisions, and ensure alternatives are compared in a 

consistent and appropriate manner. Projects that provide the most services in 

a more cost-effective manner will receive higher scores in the evaluation 

process. 

Risk Analysis 

Risk analysis identifies the possible factors that can affect capital investments. 

The risk evaluation process is completed for each alternative and is composed 

of three steps: identifying and scoring risks; rationalization; and control. 

There are ten significant risk components to be considered: 

 Schedule; 

 Initial costs; 

 Life-cycle costs; 

 Technical obsolescence; 

 Feasibility; 

 Reliability of systems; 

 Dependencies and interoperabilities; 

 Surety (asset protection); 

 Creation of a monopoly; and 

 Capability of agency to manage the project. 

Technical Review Phase: In the technical review phase, approved proposals 

have been developed into either planning or acquisition applications and 

receive technical and financial scrutiny from Department-wide councils or 

administration boards, as well as initial prioritization within the owner 

organization. 

Proposals that do not pass a technical review are returned for further 

development, while proposals that do pass are forwarded to the VA Capital 

Investment Panel (VACIP) for strategic review. 

Strategic Review Phase: Proposals of all asset types within the Department 

are reviewed. The VACIP validates and scores the proposal applications and 

prioritizes the proposal applications through its scoring methodology across 

asset types. The VACIP then provides recommendations to the SMC on which 

projects to include in the annual budget request to OMB. The SMC 

recommends approval of scored proposals, and submits them to the Secretary 

for final approval. CARES projects are ranked based on six criteria, including 

service delivery enhancements; safeguarding assets (patient life- safety 

projects); special emphasis (e.g., spinal cord injury, blindness, serious mental 
Asset Management Plan FY 2008

21

illness); capital asset priorities/portfolio goals; Departmental alignment (DoD 

collaboration and strategic alignment); and financial priorities. Non-CARES 

projects are scored and ranked by the VACIP, using some of the same criteria 

with the exception of service delivery enhancements and special emphasis 

criteria. A customer service criterion is included with the non-CARES model. 

Brief descriptions of the criteria utilized for both models are included in 

Appendix A. 

VA Capital Investment Decision Models

The strength of the VA capital investment planning process is that it 

encourages continual improvement and refinement as a response to customer 

needs. Stakeholder suggestions, veteran needs and environmental factors are 

monitored in order to modify the decision model to address changing needs 

and priorities. VA revisits its decision model and re-evaluates the criteria and 

sub-criteria on an annual basis to ensure the decision model is meeting these 

needs. 

The capital investment decision models used by VA provide a structure to 

evaluate capital investment proposals. The structure is part of a multiattribute decision methodology, the Analytic Hierarchy Process (AHP), which 

is used to score capital investment proposals. AHP is an established, accepted 

process used in a number of commercial and public industries. AHP software 

allows multiple factors to be considered, while imposing a disciplined 

approach to the decision-making and prioritization process. A hierarchical 

approach helps to structure the problem and break it down into specific 

components. These components are called decision criteria (definitions of the 

criteria and the specific models are found in Appendices A and B). AHP uses 

a hierarchical model comprised of a goal, criteria, sub-criteria, and alternative 

outcomes for each problem or decision. Such models combine evaluations or 

decisions using both quantitative and qualitative criteria. 

The VACIP uses the capital investment decision models and decision software 

to evaluate and score capital investment proposals. The scores are generated 

by the decision software and result in a list of investments ranked in priority 

order. The VACIP then provides recommendations to the SMC on which 

projects to include in the annual budget request to OMB. The SMC 

recommends approval of scored proposals to the Secretary for final approval. 
Asset Management Plan FY 2008

22

2. Execution Stage

Once an asset is approved by OMB and receives funding by Congress, it enters the 

execution stage of its life cycle. Here the emphasis is on measuring planned and 

actual schedules (design and construction awards, and activation dates, or 

acquisition) and costs at each phase of the asset’s initiation. Performance indicators 

have been developed, tracking each type of asset. 

3. Steady-State Stage

Once an asset becomes fully operational, the steady-state life-cycle stage is entered. 

A steady-state asset is no longer monitored based on its own project milestones and 

health, but is merged into the overall facility operations. The tracking of health in 

steady state is performed at the facility or station level. VA is developing further 

performance analysis down to the building level. VA’s corporate portfolio goals are 

generally focused on the steady-state phase of capital asset life-cycle. 

VA’s Capital Asset Management System (CAMS) is the Department’s recognized 

system for tracking and reporting the performance of steady-state assets. CAMS 

merges data from multiple systems from across the Department. Two primary 

sources of data for VA steady-state capital assets are the Capital Asset Inventory 

(CAI) database (for inventory information) and VA’s Financial Management System 

(FMS) (for financial data). CAI is operated by the Office of Construction & Facilities 

Management, with data input and maintenance accomplished locally using desk-top 

web access. The database contains essential inventory information on all VA 

administrations. The major components of the CAI database are: 

 Owned buildings 

 Land 

 Leases 

 Space Driver (space usage model) 

 Facility Condition Assessment 

 Historic Preservation 

 Asset-based agreements such as enhanced-use leases, sharing 

agreements, donations, permits, licenses, energy agreements and Interagency agreements. 

 Disposals 

VA has two key efforts underway to improve data analysis. The first is Business 

Intelligence (BI), an Office of Asset Enterprise Management (OAEM) initiative to 

enhance the current Capital Asset Management System (CAMS) data reporting 

capabilities with the addition of a customized BI toolset. Some of the current 

reporting requirements are beyond the technical capability of the current CAMS 

architecture or are inefficient to use. BI will also cut CAMS maintenance costs by 
Asset Management Plan FY 2008

23

reducing the number of servers required to run the system. BI is scheduled for 

production in FY 2009. 

The Federal Financial Management Improvement Act of 1996 requires accountability 

of actions taken and control over the Federal government’s financial resources. The 

Office of Asset Enterprise Management (OAEM) is responsible for developing, 

implementing, and maintaining a capital asset management system that will enable 

VA to collect, analyze, monitor, and report data regarding VA’s capital asset 

portfolio. The following capital assets qualify as Agreements to be included in 

CAMS: 

 Enhanced-Use Lease (EU); 

 Enhanced Sharing Agreements (ES); 

 Energy Savings Performance Contract (ESPC); and 

 Outlease (VA space or land in use by a non-VA entity either by lease, 

permit, license or donation). 

In order to improve the Department’s ability to track costs and revenue associated 

with an agreement, unique codes are issued for each agreement centrally by OAEM 

and tracked in VA’s accounting and financial management system. 

VA is assessing the data fields captured in CAI, with the aim of improving reporting 

functions and work processes associated with real property. Ultimately, this 

improved data structure will be absorbed into VA’s future Strategic Asset 

Management (SAM) IT system, which will become the system of record for all VA 

assets. 

The other key source system for CAMS is FMS. FMS is VA’s accounting system and 

CAMS extracts obligation and expenditure information to sort into cost categories 

(e.g., operating and maintenance, leasing, energy, etc). The data is available at the 

local facility, region, administration and national levels. 

Other elements required for tracking and reporting on steady-state assets include 

energy consumption and workload data. These additional source systems include: 

 VHA Support Service Center (VSSC) – VHA & VBA energy consumption 

 VHA’s Patient Treatment File (PTF) and Outpatient Clinic (OPC) file – VHA 

workload 

 NCA’s Management and Decision Support System (MADSS) – NCA workload 

and energy consumption 

 VBA’s Workload Management (DOOR) – VBA workload 

 VA PAID - Workload 

Data from CAMS can be viewed separately or in collectively to track the health of 

steady-state assets. For example, CAMS reports space utilization using CAI data, as 
Asset Management Plan FY 2008

24

well as provides summary reports on costs per gross square foot using FMS and CAI 

data. CAI and FMS played a critical role in meeting Federal Real Property Council 

inventory reporting requirements. 

4. Disposal Stage

The final stage of an asset’s life cycle is disposal. If an asset proves to be 

underutilized or costly to maintain, it is considered for disposal. VA has developed a 

real property disposal policy to identify these assets. Disposal is discussed in 

Chapter 5 
Asset Management Plan FY 2008

25

CHAPTER 3: VA’s CAPITAL PORTFOLIO, VALUATION AND FUNDING 

VA uses two primary mechanisms for measuring the value of the Department’s 

assets, book value and plant replacement cost. Book value follows standard 

accounting practices (cost less depreciation) and plant replacement value is the 

market value to replace an existing asset and is consistent with FRPC guidance. 

Book Value

Each year VA publishes audited consolidated financial statements, which include the 

book value of capital assets. Capital assets include land, property, plant, and 

equipment. The book value is the net amount shown for an asset from the balance 

sheet. It equals the gross cost less the related valuation account. Book value is based 

on historical cost and will differ from present market value. 

The FY 2007 audited financial statements reflected the following book values: 

Book Value ($ in millions) 

as of Sept 30, 2007* 

Land and Improvements $ 389 

Buildings 7,914 

Equipment 1,498 

Construction in Progress 1,573 

Other 802 

 

 $ 12,176 

*Source: VA FY 2007 Annual Performance and Accountability Report 

Plant Replacement Value 

Consistent with FRPC requirements, VA annually calculates and reports the 

replacement value of its existing buildings and structures. The FRPC guidance 

defines replacement value as “the cost of replacing the existing constructed asset at 

today’s standards.” VA uses the following formula provided in the guidance: 

Replacement Value = Square Feet x Unit Costs x Overhead Factor 

The square footage of VA’s owned buildings and structures is taken directly from its 

capital asset inventory. Unit costs are determined by the Office of Construction & 
Asset Management Plan FY 2008

26

Facilities Management’s (CFM) Capital Cost Guides and vary according to an asset’s 

function (e.g., hospital, office, warehouse, etc.) and geographic location. VA used a 

construction overhead factor of 5.8 percent in FY 2007, per OMB economic 

assumptions. 

 FRPC guidance defines replacement value as “the cost of replacing the existing 

constructed asset at today’s standards.” Overall, VA reported a total replacement 

value of buildings and structures at $85.249 4 billion for FY 2007. VA reports 

replacement value for FRPC purposes at the individual constructed-asset level. 

 

VA’s Capital Asset Funding Mechanisms

In concert with VA’s capital asset management philosophy and business practices, 

the Department develops an annual budget request to submit to Congress. 

The Appropriations Process 

Congress provides funds through an annual appropriations bill, for VA to make 

payments out of the Treasury for specified purposes. Capital asset investments are 

funded through the Construction, Major appropriation (for projects over $10 

million) and Construction, Minor appropriation (for projects less than $10 million). 

Major Construction

The Major Construction Program is for constructing, altering, extending, and 

improving any VA facility, including planning, architectural and engineering 

services, Capital Asset Realignment for Enhanced Services (CARES) activities, 

assessments and site acquisition where the estimated cost of a project is $10 million 

or more. 

Accomplishments

 Since the initial CARES decision announcements in May 2004, 42 VHA 

major construction projects have been fully or partially funded with 

appropriations from FY 2004 - 2009. Two projects funded with 

Hurricane Katrina emergency supplemental appropriations fell outside 

the CARES investment process. The total funding received for the 42 

projects is $6.2 Billion, including $3.9 Billion in FY 2009 major 

construction appropriations. 5 

 Five projects have been completed in Chicago (Modernize Inpatient 

Space), Pensacola (Outpatient Clinic), North Chicago (Surgical 

 

4

 The $85.249 billion total replacement value is from the FY 2007 Federal Real Property Report (May 2008). 5

 This includes VA’s FY09 request of $397,652,000 for major construction projects. 
Asset Management Plan FY 2008

27

Suite/Emergency with DoD), San Diego (Seismic Correction to 

Building 1), and Tampa (Spinal Cord Injury Expansion). 

 Construction contracts have been awarded on seventeen projects. 

 Ten projects are now in the design phase. Architect/Engineering firms 

have been selected for each of these projects and these firms are in 

various stages of design. 

 Eight projects are in planning or pending site acquisition. 

Challenges

 Two major challenges face the Department in continuing to implement 

the CARES program. The first challenge is costs associated with a very 

robust worldwide construction economy coupled with rapidly 

increasing costs for labor and building materials. These market trends 

are exacerbated by rising fuel prices. It has become increasingly 

difficult to attract more than one or two bidders given the amount of 

commercial work available to the industry. All of these factors make it 

a challenge to stay within budget. Despite these challenges, VA 

awarded 21 of 25 planned major contracts through FY 2007. 

 The second challenge for VA is the significant funding required to 

continue with the CARES process. Of the 42 projects that have been 

included in VA’s budget requests, several have funding only for 

design. An additional $2.2 Billion is needed for the construction of 

these facilities. 

Please see Appendix E for a status report on the CARES projects. 

VA invests in capital assets through the Minor Construction appropriation account. 

Minor Construction

The Minor Construction Program is for constructing, altering, extending and 

improving any VA facility, including planning, assessment of needs, architectural 

and engineering services, site acquisition and disposition, where the estimated cost 

of a project is less than $10 million. 

VA’s Capital Asset Budget Request Mechanisms

Maintaining VA’s Assets through Development of VA Facility Sustainment Model 

VA developed a Department-wide sustainment model based on the framework 

currently used by the Department of Defense (DoD). The DoD method utilizes a 

Real Property Classification System (RPCS) for identifying, categorizing, and 
Asset Management Plan FY 2008

28

analyzing land and facilities around the world. DoD’s model defines sustainment 

as the provision of resources for maintenance and repair activities necessary to 

keep facilities in good working order over a 50-year service life. Maintenance and 

repair activities encompass preventative maintenance tasks, regularly scheduled 

adjustments, regularly scheduled inspections, emergency response, minor repairs, 

and other components. 

After reviewing VA’s infrastructure needs and projects, VA decided to determine the 

necessary level of infrastructure dollars through the VHA actuarial model. The 

model takes into account previous years expenditures and costs as well as future 

workload projections in determining the funding level each fiscal year. In addition, 

VHA has received supplemental appropriations to address its FCA deficiencies. 

Non-Recurring Maintenance (NRM)

The NRM program objective is to maintain the safe, effective and efficient function of 

VA’s infrastructure of buildings, structures and land. NRM projects range in size 

from just a few thousand dollars to several million dollars. VHA’s NRM program is 

funded out of the Medical Facilities appropriation account. NCA requested $2 

million in FY 2009 to begin an NRM program. VA uses its NRM dollars to expand 

capacity where necessary as well as fix its FCA deficiencies. 

Deferred Maintenance

Deferred maintenance is customary upkeep and repairs that have been postponed or 

delayed, and because of the delay may result in physical damage, lack of efficiency, 

decline in production, or other negative effects to the infrastructure or asset. The 

Federal Accounting Standards Advisory Board (FASAB) Standard Number 6, as 

amended, defines maintenance as: the act of keeping fixed assets in acceptable 

condition. Activities include preventive maintenance, normal repairs, replacement of 

parts and structural components, and other measures needed to preserve the asset so 

that it continues to provide acceptable services and achieves its expected life. 

Maintenance excludes activities aimed at expanding the capacity of an asset or 

otherwise upgrading it to serve needs different from, or significantly greater than, 

those originally intended (FASAB, 1996). Examples of deferred maintenance are 

elevator service; heating, ventilating, and air conditioning system servicing; or 

building inspections that are not performed when they should be, put off or delayed 

for a future period. 

Use of Facility Condition Assessments 

In preparation for the CARES process, VHA contracted professional teams of 

engineers and cost estimators to conduct detailed on-site Facility Condition 

Assessments (FCA) of VA-owned buildings and land. At least once every three years, 
Asset Management Plan FY 2008

29

each VA facilities is now evaluated. The FCA rates the physical condition and 

remaining useful life of a capital asset and sixteen major systems in a building (i.e., 

architectural, structural, mechanical, plumbing and transport, etc.). The FCA uses an 

alphabetical rating system of A, B, C, D and F. The rating of “A” refers to a like-new 

condition with 90% of the useful lifespan of the asset/system remaining. A rating of 

“B” signifies an above average condition with over half of a useful lifespan remaining. 

A “C” rating indicates an average condition with less than half the useful life 

remaining. VA pays particular attention when buildings are given “D” or “F” ratings. 

A “D” rating calls attention to a poor condition and indicates the asset/system being 

rated is at the end of its useful lifespan. The FCA rating of “F” signifies a critical 

condition requiring immediate attention. 

The FCA database system records corrections and replacement cost information only 

for assets and systems rated D or F. The correction and replacement costs include an 

escalation factor to account for inflationary construction costs. 

Infrastructure Protection 

To fulfill VA’s statutory charge to respond to national emergencies, VA’s critical 

facilities must be positioned to provide security and continued operations. VA has 

taken the following actions to improve the system’s ability to respond to natural or 

man-made disasters: 

 Completed review of VA’s seismic deficiencies in accordance with 

Executive Order 12941. Facilities have been categorized into 

exceptional high risk and high risk categories. Mitigation costs have 

been identified and are now being integrated into the Facilities 

Condition Assessment database in FY 2008. In addition, escalation 

costs will now be applied annually at the end of each fiscal year 

 Completed Hurricane Assessments for 21 VA facilities located in high 

risk hurricane areas. Studies identified mitigations to improve the 

facilities’ ability to remain functional during and after a hurricane. 

Estimated costs to mitigate the identified hurricane vulnerabilities are 

based on 2006 as the base year. 

 Completed Physical Security Infrastructure Assessments for VA 

mission critical facilities. These assessments identified mitigations to 

improve survivability based on 12 risk factors including man-made and 

natural disasters. 
Asset Management Plan FY 2008

30

Recurring Maintenance Program

Recurring maintenance projects, like the NRM program projects, directly address the 

deferred maintenance requirements of VHA’s infrastructure. Only VHA has a 

recurring maintenance program in VA, and it is funded out of the Medical Facilities 

appropriation, and used to make routine repairs and maintenance on VA’s capital 

assets. 

Five-Year Capital Plan 

The culmination of VA’s capital investment process that describes the selection of the 

Department’s key capital acquisitions, based on funding requirements determined by 

the above programs, is the 5-year capital plan. 

In July 2004, VA produced its first 5-year capital plan. This plan provides a 

framework for effective management of the Department’s capital investments that 

will lead to improved resource use and more effective health care and benefits 

delivery for our Nation’s veterans. The specific capital needs were provided to 

Congress in VA’s first 5-Year Capital Plan and in each subsequent capital plan. 

The most recent 5-Year Capital Plan provides the specific investments needed for 

FY 2008 and future projects that may be considered for funding during FY 2009-

2013. The plan identifies the priority projects that would improve the delivery of 

services and efficiency of operations at VA facilities. 
Asset Management Plan FY 2008

31

CHAPTER 4: VA PERFORMANCE METRICS & EVALUATION 

METHODOLOGY 

VA measures its capital asset performance through internal portfolio goals as well as 

metrics set forth through Federal mandates. In fact, VA had capital asset metrics in 

place before the FRPC was formed. VA corporate goals are aligned with FRPC and 

energy principles where applicable. VA’s performance results are reported to OMB to 

meet the President Management Agenda initiatives, and used internally for asset 

management decision-making. 

VA Capital Portfolio Goals

VA’s capital portfolio goals are closely aligned with the asset management core 

objective of providing a safe and appropriate environment for the delivery of benefits 

and services to veterans in a cost-efficient manner. The VA capital portfolio goals are 

consistent with the Department’s capital asset strategies to ensure resources are 

maximized, assets (including veterans and VA staff) are safeguarded, and all 

opportunities (public, private, or a combination thereof) are fully explored. The 

goals also allow VA senior management to monitor the overall health of the 

Department’s capital asset portfolio and provide for informed corporate decisionmaking. VA capital portfolio goals include: 

Decrease Energy Utilization 

Decreasing the intensity of energy consumption in VA facilities has a direct impact 

on minimizing the overall operational costs of those facilities. To achieve this, VA is 

committed to leading the way in effective and efficient building operations and 

management. VA is achieving this goal by placing energy management expertise at 

the facility and regional level, proactively upgrading systems that do not meet 

current standards, more accurately measuring and analyzing energy consumption 

and costs, and conducting facility energy assessments to identify energy efficiency 

improvement opportunities. The baseline calculation against which VA measures its 

progress - traditional facility energy consumption per gross square foot - has been 

updated to the 2003 base year, as directed in the Energy Policy Act of 2005. 

Increase Intra/Interagency and Community-Based Sharing 

Combining and sharing assets with other Federal, state, and local organizations, 

departments, and agencies that embrace the mission, goals, and objectives of VA are 

cost effective and viable approach to servicing our veteran’s needs. 
Asset Management Plan FY 2008

32

Increase Revenue Opportunities 

Enhanced-use leasing authority provides VA with increased revenues that may then 

be reinvested to meet other VA service delivery needs. 

Safeguard Assets 

Risk management and safeguarding assets are a top priority of the Department. VA 

spends its infrastructure resources to maintain existing safeguards, make 

improvements where necessary, and manage exposure and risk. 

Maximize Highest and Best Use 

Maximizing the highest and best use of VA assets is a combined effort of all VA 

organizations. VA will increase the number of agreements for asset exchanges 

(including in-kind consideration) and sales to acquire replacement property better 

suited to care for and improve the lives of our Nation’s veterans. VA is also working 

to increase the total number of agreements to ensure full utilization and optimum 

performance of all VA assets. These agreements and programs – such as enhanceduse leasing – also contribute to increased savings and cost avoidance. 

Federal Real Property Council 

The Government Accountability Office (GAO) has considered Federal real property 

to be a high risk area for several years. In February 2004, the President issued 

Executive Order 13327, Federal Real Property Asset Management. It established the 

Federal Real Property Council (FRPC) to develop guidance and establish asset 

management principles, collect specified inventory data elements, and performance 

measures for all federal agencies. The FRPC is composed of Senior Real Property 

Officers representing Federal agencies and cabinet level departments and is chaired 

by the Deputy Director of the Office of Management and Budget (OMB). The 

Assistant Secretary for Management serves as VA’s Senior Real Property Officer. 

The FRPC is responsible for providing guidance and facilitating the implementation 

of agency asset management plans. This tasking is accomplished through a myriad 

of committees and workgroups both external and internal to the Department. Some 

external committees include the FRPC Asset Management Planning Committee, 

FRPC Inventory and Performance Measures Committee, FRPC Systems Committee 

and the Federal Asset Sales Executive Steering Committee. Membership includes 

Federal agencies and OMB. The following is a list of the guiding principles of the 

FRPC. 
Asset Management Plan FY 2008

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FRPC GUIDING PRINCIPLES

 

 1. Support agency missions and 

 strategic goals. 

 

 6. Provide appropriate levels of 

 investment. 

 2. Use public and commercial 

 benchmarks and best practices. 

 7. Accurately inventory and describe 

 all assets. 

 3. Employ life-cycle cost-benefit 

 analysis. 

 8. Employ balanced performance 

 measures. 

 4. Promote full and appropriate 

 utilization. 

 9. Advance customer satisfaction. 

 5. Dispose of unneeded assets. 10. Provide for safe, secure, and 

 healthy workplaces. 

Some internal workgroups include the Capital Asset Management System Business 

Group and the VHA Portfolio Workgroup, with membership from VA 

administrations, staff offices and field Capital Asset Managers. These groups 

function as representatives for their respective administrations and work with the 

Office of Asset Enterprise Management to meet Federal and agency performance and 

reporting requirements. Overall, VA portfolio performance is monitored by the VA 

Management Performance Review Board, chaired by the Deputy Secretary, where 

results are presented on a quarterly basis. 

Federal Real Property Council Performance Metrics 

In FY 2005, VA implemented the Federal Real Property Council (FRPC) Tier 1 

performance metrics and aligned them with VA corporate goals. Tier 1 metrics vary 

only in their broad approach to Federal real property. Where there is overlap, VA 

goals are modified accordingly. 

FRPC Tier 1 – Federal Real Property Metric Goals 

(1) Percent of Space Utilization as Compared to 

Overall Space (owned and direct-leased) Baseline = FY04 

(2) Percent Facility Condition Index (owned 

buildings) Baseline = FY05 

(3) Ratio of Non-Mission Dependent Assets to Total 

Assets Baseline = FY05 

(4) Ratio of Operating Costs per Adjusted Gross 

Square Foot (GSF) adjusting for inflation Baseline = FY04 

VA has four real property metric goals aligned with the FRPC Tier 1 performance 

measures: (1) decrease underutilized capacity using the percentage of space 

utilization compared to overall space; (2) improve the facility condition index on 
Asset Management Plan FY 2008

34

owned buildings; (3) reduce the ratio of non-mission dependent assets to total assets; 

and (4) decrease operating costs. These goals are discussed below. 

Decrease Underutilized Capacity/Percent of Space Utilization as compared to 

overall space (owned and direct-leased) 

Decreasing unused and underutilized space is one key factor in the President’s 

Federal Real Property Asset Management Initiative. This goal is consistent with the 

FRPC facility utilization index: Percent of Space Utilization as Compared to Overall 

Space (owned and direct-leased). 

Percent Condition Index (VA-Owned Buildings) 

VA performed condition assessments of all its medical facilities as part of the CARES 

study. These assessments included estimates of repair needs for each building. VA 

calculates its condition index annually. The condition index is the ratio of repair 

needs to plant replacement value. The higher the condition index the better the 

condition of the constructed asset. Condition index helps identify assets most in 

need of repair and plan for upgrades or disposition. VA’s Capital Asset Inventory 

(CAI) database includes both variables needed to provide a facility condition index 

score, including the facility condition assessment and the plant replacement value for 

each building. The Department currently conducts assessment updates on a threeyear cycle for all VA-owned buildings. 

Ratio of Non-Mission Dependent Assets to Total Assets 

Using an OMB-approved methodology, VA determines whether each asset (owned 

and direct-leased buildings, structures, and land parcels) is mission critical; mission 

dependent/not critical; or not mission dependent. All VA assets that are 70-100% 

utilized are designated as mission critical. Assets that are 50-70% utilized are 

designated as mission dependent/not critical. Assets that fall below 50 percent 

utilized are designated as not mission dependent. 

Mission dependency information is entered into the CAI, which feeds into CAMS for 

tracking and reporting purposes. Mission Dependency is determined using the FRPC 

Utilization Index. 

Decrease Operational Costs/Ratio of Operating Costs per Gross Square Foot (GSF) 

This goal is consistent with the Tier 1 Annual Operating Costs measure (Ratio of 

Operating Costs per Gross Square Foot (GSF)). VA tracks operating costs using two 

methods: (1) explicitly using the FRPC method, which is standard across the Federal 

government; and (2) using an internal VA method, which is more detailed, inclusive 

and comprehensive. For example, the operating costs may vary from $5/GSF (FRPC 
Asset Management Plan FY 2008

35

method) to $20/GSF (VA method) depending upon the method used. The FRPC 

method, however, is consistent with and a subset of the VA method. 

VA seeks to minimize maintenance and operation costs through more efficient use of 

space and reducing the number of assets that have exceeded their useful life. By 

decreasing operation costs, VA will be able to reinvest much needed funds in 

improving services to our Nation’s veterans. 

VA Performance Using FRPC Tier 1 Metrics 

VA Performance Metric Baseline 2006 2007 2008 

VA 

Strategic 

Target 

(2010) 

Space Utilization 80% 104% 112% 113% 95% 

Facility Condition Index 82% 82% 79% 68% 87% 

Non-Mission Dependent Assets 22% 15% 12% 14% 10% 

Operating Costs $22 $20 $20 $15 $29 

Trend data has shown that space utilization is increasing while Facility Condition 

Index numbers are dropping. OAEM is tasked with leading a work group to address 

these issues and report findings and recommendations to the MPR. 

Capital Asset Benchmarking 

A key measure of VA’s success is to compare asset performance to that of the private 

sector via benchmark analysis. CAMS provides VA the means and data to compare 

certain asset expenses to industry or commercial benchmarks for its leasing and 

energy programs. Benchmarking is also done within VA and encompasses 

comparisons across fiscal years and between similar VA facilities. Examples of 

analyses that can be performed include: increases or decreases in costs, utilization, 

and other goal performance elements and at the facility, regional, administration, 

and national levels. 

Lease Benchmarks 

With over a twelve hundred operating leases, VA considers this category of 

investment a priority to measure. From the outset, CAMS was designed to include 

benchmark analysis. Various commercial real estate information sources were 

studied in response to the need for benchmarking data, ultimately identifying several 

sources of the most recent and relevant information. These sources include BOMA 

(Building Owners & Managers Association), Loopnet, and Market Review Reports. 

These sources are searched when locating the benchmarking data, utilizing either one 

number or an average of several depending on the availability of information. The 

following graphic illustrates a lease benchmark view in CAMS. 
Asset Management Plan FY 2008

36

Benchmarking is not an exact science. The outcomes of the analyses are intended to 

lead to suggestions or assistance when analyzing a potential lease, and/or to help 

measure the value of a VA investment. 

The portfolio of VA building leases is comprised of a variety of central business 

district and suburban locations. Commercial benchmarks are by city, where there can 

be significant variances within those markets. For example, the commercial 

benchmark in Denver, Colorado is $21.73 annual rent/square foot. VA has 11 leases 

in the Denver metropolitan area that range in cost from $9.85 to $28.77 annual rent 

per square foot. Despite obvious difference between the upper and lower limits, the 

average of these leases (in annual rent/square foot) is $19.55. 

VA lease benchmarks are updated in CAMS annually, making this information 

available to multiple users, including local capital asset managers. This marketspecific information affords local managers leverage to benefit VA in lease 

negotiations. 

Internal Benchmarks 

Benchmarking is done within VA and encompasses comparisons across fiscal years 

and between VA facilities. The system provides views that compare costs, utilization, 

and other goals from one year to the next. VA can analyze and report increases or 

decreases in performance at individual station, network, administration and national 

levels. Performance comparisons are also provided across stations and networks. 

The following illustration is an example of one VHA VISN’s performance in 

comparison to the other 20 VISNs. 
Asset Management Plan FY 2008

37

Energy Benchmarks 

In July 2003, VA established a comprehensive energy conservation program designed

to achieve both Federally mandated and internally established energy-related goals. 

Implicit to achieving these goals is more efficient and cost-effective management of 

energy assets. VA has undertaken an energy asset performance benchmarking 

initiative to help gauge current status and future progress in this area. The 

benchmarking effort encompasses two categories: 1) internal benchmarking, to 

measure results over past performance; and 2) external benchmarking, to compare 

VA performance with other similar facilities. 

The Table 4-1 on the following page lists the elements that VA is benchmarking 

internally; followed by relevant current Federal mandates (these address 

consumption benchmarks only): 
Asset Management Plan FY 2008

38

Table 4-1: VA Facilities: Internal Energy Asset Performance Benchmarking 

MEASURE 

Consumption Expenditures Benchmark/Goal 

VA Energy Management Program

Btu per square foot 

kWh per square foot 

Total energy cost per square foot

Electricity cost per square foot 

Electricity cost per kWh 

Natural gas cost per Btu

Period-to-Period Reduction in Unit 

Consumption/Unit Cost

Federal Mandate: Energy Independence and Security Act of 2007 

Btu per square foot – all facilities Reduction as follows vs. FY 2003 

baseline: 

2% by FY 2006 

4% by FY 2007 

9% by FY 2008 

And an additional 3% each FY 

thereafter through 2015, for a total 

reduction of 30%. 

Federal Mandate: Executive Order 13423

Btu per square foot – all facilities 3% annual reduction vs. FY 2003 

baseline, FY 2006 through FY 2015, or 

30% reduction by FY 2015. 

Reduction in greenhouse gas 

emissions. 

Water consumption intensity (gals/sq ft) 2% annual reduction vs. FY 2003 

baseline, FY 2008 through FY 2015, of 

16% by FY 2015. 

External Benchmarking 

VA requires energy cost and consumption information for its major healthcare 

facilities to be entered into EPA’s Energy Star Buildings database so that VA facility 

energy use can be benchmarked quarterly against all healthcare facilities in the 

Energy Star database. VA downloads its data electronically to the database, with 

benchmark results for each facility returned electronically to VA. Based on these 

results, facilities may apply for the Energy Star building label. Energy Star 

benchmarking for healthcare facilities is limited to acute care facilities and medical 

office buildings. Also, the Energy Star hospital model is based on a dated survey 

conducted by the Electric Power Research Institute (EPRI). EPRI has not updated the 

survey since 1997. VA plans to continue working with the Energy Star database to 

expand and improve current benchmarking opportunities. 

VA has evaluated the Energy Information Administration’s (EIA) Commercial 

Building Energy Consumption Survey (CBECS) as an alternate benchmarking source. 

CBECS is a periodic national sample survey that collects information on the stock of 

U.S. commercial buildings, their energy-related characteristics, and their energy 

consumption and expenditures. CBECS is now conducted every four years. 
Asset Management Plan FY 2008

39

However, the healthcare sample CBECS represents has to date not been robust 

enough to serve as a valid benchmark, either for VA on a stand-alone basis or as data 

upon which the Energy Star Portfolio program can base its healthcare facilities 

benchmarking. 

Space and Equipment Planning System Update

The Office of Construction and Facilities Management (CFM) completed updates of 

VA’s healthcare space planning criteria, utilizing a process approved by the VHA 

National Leadership Board and Deputy Under Secretary for Health in January 2005. 

The process benchmarks VA criteria with private and public sector facilities as well as 

established VA program officials advisory committees to update the criteria. This 

system also includes an efficient state-of-the–art electronic system (VA-SEPS) to 

automate the criteria process. The electronic tool was developed based on a 

collaboration with VA staff, Department of Defense (DoD) officials, and private sector 

medical planning consultants. VA-SEPS provides a complete flexible programming 

package or criteria, equipment lists, and guide plates. It enables multiple 

methodologies for programming – mission, caseload, and staffing, and provides a 

reporting instrument for program officials, including monitoring and an approval 

process for exceptions. It will be regularly updated utilizing healthcare industry best 

practice benchmarks. The DoD Criteria Committee and VA meet on a quarterly basis 

to review space and equipment criteria and system performance. 

Real Property and Energy Management Scorecards

OMB scorecards illustrate how well agencies manage their real property, measuring 

results quarterly based on the criteria in the President’s Management Agenda (PMA). 

The scorecard employs a simple grading system: green for success, yellow for mixed 

results, and red for unsatisfactory. The scorecards are updated quarterly and guide 

the Department in making management decisions that facilitate progress with real 

property initiatives. Consistent with PMA practices, VA also developed an internal 

real property scorecard that captures more detailed data. VA is one of the leaders in 

Federal real property management, achieving “Green” status for real property 

management. 

OMB has also created a (non-PMA) semi-annual scorecard for tracking Federal 

agency energy management performance. As with the real property scorecard, 

agencies receive both a status and progress rating. Agency actions are planned and 

agreed upon with the Department of Energy. VA achieved leader status in energy 

management, having received a “Green” rating for both status and progress achieved 

as of the end of calendar year 2007. 
Asset Management Plan FY 2008

40

Real Property Performance Results 

VA regularly monitors real property performance and reports to the Office of 

Management and Budget on Federal Real Property Council Tier 1 Measures. VA also 

reports energy cost and consumption and other performance statistics to the 

Department of Energy. In response to the Energy Policy Act of 2005 and the 

Strengthening Federal Environmental, Energy, and Transportation Management 

Executive Order, VA baselined 2004 energy consumption data for determining 

cumulative percentage decrease in facility traditional energy consumption per gross 

square foot. 

The table below reflects the level of change in each performance area from the 

baseline years for each category measured. 

Table 4-2: Real Property Performance Results 

 Results Targets 

VA Performance Measure 2004 2005 2006 2007 2008 

(Final)

2009 

(Initial) 

Strategic 

Target 

Percent of Space Utilization as 

Compared to Overall Space 

(owned and direct-leased) 

Baseline = FY04 

80% 

Baseline 98% 104% 112% 95% 95% 

Percent Condition Index 

(owned buildings) 

Baseline = FY05 

N/A 82% 82% 79% 87% 87% 

Ratio of Non-Mission 

Dependent Assets to Total 

Assets 

Baseline = FY05 

N/A 22% 15% 12% 10% 10% 

Ratio of Operating Cost per 

Adjusted Gross Square Foot 

(GSF) adjusting for inflation 

Baseline = FY04 

$4.52 $4.83 $5.59 $5.80 $4.52 $4.52 

Utilization

VA’s FY 2004 baseline performance is 80%; FY 2007 performance was 112%, 

exceeding the target of 95% by 2010. VA changes that resulted in improved 

utilization of space are: 

 VA out-leased 4 million square feet (SF) in 2007 

 VA reduced vacant space by 4.4% or 338,082 SF between 2006 and 2007 

 Since 2004, VA has reduced vacant space by 16% or 1,371,238 SF 
Asset Management Plan FY 2008

41

In FY 2007, VA reduced over 4 million square feet of underutilized assets through 

disposals, functional consolidations, and improved planning. Overall, VA’s space 

requirements exceed the space currently available. VA continues to assess current 

and future real property needs through these management initiatives and tools to 

ensure the Department meets its infrastructure requirements in a cost effective 

manner. 

Condition

VA’s FY 2005 baseline performance is 82%; FY 2007 performance was 79%, with a 

target of 87% by 2010. Upgrades are pursued through projects/investments as 

follows: 

 Major (FY 2007 $307M CARES) 

 Minor (FY 2007 $150M CARES + $326 CARES supplemental) 

 Non-recurring Maintenance (FY 2007 $514M + $550M FCA supplemental + 

$45M polytrauma supplemental) 

Mission Dependency

VA’s FY 2005 baseline performance is 22%; FY 2007 performance was 12%, on track 

with the target of 10% by 2010. VA changes that resulted in a decrease in non-mission 

dependent assets are: 

 In FY 2007, VA disposed of a total of 52 buildings and land (390,023 GSF): 

o 44 via demolition (216,952 GSF) 

o 3 via transfer (145,920 GSF and 13.4 acres) 

o 5 via enhanced use lease (27,151 GSF) 

 In FY 2006, VA disposed of 6 buildings (658,182 GSF) via sales, 19 buildings 

(124,946 GSF) via demolition and 52 buildings (400,609 GSF) via enhanced-use 

leasing 

 VA completed 12 disposals in FY 2004 and 67 disposals in FY 2005 

Operating Cost

Based on FRPC (Federal Real Property Council) methodology VA’s FY 2004 baseline 

performance is $4.52 per GSF. For FY 2007, VA’s operating cost per GSF was $5.80. 

The 2010 target is $4.52. 

Operating Revenue 

 In annual recurring revenue, VA generated: 

o $1.1M FY 2007; 

o $1.2M in FY 2006; and 

o Over $900,000 in FY 2005. 

 VA generated additional one-time payments of: 

o $20,000 in FY 2007; 

o $22.5M in FY 2006; and 

o $28M in FY 2005. 
Asset Management Plan FY 2008

42

Overall, VA’s space requirements exceed the space currently available. VA continues 

to assess current and future real property needs through these management 

initiatives and tools to ensure the Department meets its infrastructure requirements in 

a cost effective manner. 
Asset Management Plan FY 2008

43

CHAPTER 5: DISPOSAL 

The disposal stage is not just an afterthought for the Department, as VA must include 

an exit strategy early in the formulation of the project and it is one of the sub-criteria 

found in the capital investment business model. VA has developed guidance and 

protocol for implementing an exit strategy that: 

1. Achieves the fullest possible use of the buildings and land without 

degradation, or undesirable and unintended consequences; 

2. Preserves the historic, cultural, and natural aspects of our national 

heritage; 

3. Achieves a balance between the use and development of scarce 

resources; and 

4. Enhances the quality of renewable resources while working toward the 

maximum attainable recycling of nonrenewable resources. 

The surrounding community is important to the success of VA’s disposal program. 

Partnering with local community organizations, private sector enterprises, local 

governments or some combination of these entities, allows for the orderly transfer of 

Federal property for non-Federal use without devastating local economies. VA enters 

into public private ventures with compatible reuse purposes for the property. The 

redevelopment offers potential economic growth and environmental improvements 

to the local communities through the addition of jobs and adding to the local tax base. 

VA’s Disposal Authority 

Public Law 108-422, signed in November 2004, authorized VA [independent of the 

General Services Administration (GSA)] to dispose of real property and to deposit 

proceeds from the sale, transfer or exchange of VA assets into the Capital Asset Fund 

(CAF). The public law provides VA with much needed incentive by making it 

economically attractive to pursue disposal activities. 

VA uses a unique capital asset management tool, i.e., enhanced-use (EU) leasing 

which is codified in sections 8161 through 8169 of title 38, United States Code (USC). 

The authority allows VA to lease land or building to public, private and/or nonprofit sector up to 75 years. Under section 8164, 38 USC, if the Secretary determines 

during the term of an EU lease or within 30 days of its expiration, that the leased 

property is no longer needed by the Department, the Secretary may initiate action to 

transfer all rights, title, and interest in the property to the lessee. 

The CAF can be used for current and future disposal transactions, improvements or 

renovations to medical projects with an estimated cost of less than $7 million, and/or 

to appropriate historic properties. The legislation also provides authority for $10 

million to capitalize the expenditure costs associated with the disposal of property 

such as demolition, environmental clean-up, and repair. The authority requires VA 

to comply with section 11411 of the McKinney-Vento Act, through which the U.S. 
Asset Management Plan FY 2008

44

Department of Housing and Urban Development (HUD) surveys all Federal 

landholding agencies (including VA) quarterly, to identify for Congress, the public, 

and private-sector homeless service providers, surplus Federal properties that are 

available for future Federal permits, leases, and transfers to private-sector entities 

(e.g., applicants), so such applicants can use the properties to provide suitable 

homeless services. Additionally, VA is required to submit disposal plans to 

Congress annually, per Public Law 108-422 and accompanying report language. VA 

issues an annual call for planned disposals, identifying potential candidates for nonmission dependent and underutilized space. The VA disposal plan has two parts: 

short-term (one year) and long-term (five year). Once identified, disposals are 

monitored through completion with quarterly updates provided to the Office of 

Management and Budget.

VA’s Disposal Policy 

VA developed a real property disposal policy, Managing Underutilized Real 

Property, Including Disposal (VA Directive and Handbook 7633), which provides a 

standard methodology and criteria for identifying appropriate underutilized assets 

for divestment. This policy provides procedures for appropriate management of 

underutilized property including the available options (or authorities) VA may use 

to maintain the highest and best use for its real property portfolio. When a property 

is proposed for disposal, other VA entities are given the opportunity to express 

interest in it for an alternative use. 

Other disposal modalities are also evaluated in priority order including enhanceduse leasing, sharing, out-leasing, licenses, permits, easements and transfers (i.e., 

disposal via Enhanced-Use Leasing Authority, Capital Asset Fund, State Veterans 

Home, and GSA Authority) as well as like-kind exchanges. If none of these options 

prove viable, VA will make the property available for reuse by other Federal 

agencies. If no other agency is interested, VA may utilize deconstruction, 

mothballing and demolition. The capability for initiating, justifying, and monitoring 

proposals for divestment of assets is implemented through CAMS. The disposal 

policy also provides guidance for navigating the complex processes of Federal real 

property disposal. These steps include screening for homeless use, environmental 

and historical status evaluations, as well as various notifications to GSA and 

Congressional committees. 

Please see Appendix C for tables that summarize actual disposals for FY 2005, FY 

2006, and FY 2007, and planned disposals for FY 2008, FY 2009, and FY 2010. 

Enhanced-Use Leasing Program 

The enhanced-use (EU) lease program produces results that include significant cost 

savings, substantial private investment, new long-term sources of revenues as well as 
Asset Management Plan FY 2008

45

jobs or tax revenues for the local, state and Federal sectors. EU leasing supports the 

President’s Management Agenda by improving VA financial performance and 

demonstrating budget/performance integration. 

Under the enhanced-use leasing authority, VA may lease land or buildings to the 

private sector for up to 75 years. The leased property may be developed for non-VA 

uses that are consistent with the mission of the Department. The leased property may 

be developed for non-VA and/or VA uses, and in return for the lease, the Department 

obtains fair value in the form of revenue, facilities, space, services, or other 

considerations. VA continuously explores ways of expanding the use of this integral 

capital asset management tool and streamlining the process. 

For example, in response to a recommendation by the CARES Commission, VA 

developed a plan to re-delegate the authority to execute smaller and less complex 

enhanced-use leases to the regional capital asset managers. A national contracting 

mechanism was put in place to provide these asset managers with the tools (e.g., 

financial, real estate advisement, market analysis, legal support, etc.) they need to 

successfully implement these leases. 

In order to streamline the EU leasing process, a Concept Paper Review Committee 

(CPRC) was formed to recognize differing requirements within the Department and 

assure prioritization of limited resources available for the development to execution 

of EU projects. The CPRC reviews and recommends concept papers to the Assistant 

Secretary for Management for final approval. Other process improvements included 

the implementation of standardized concept plans and templates for common 

milestones such as public hearings and notices to Congress and the public. VA has 

also conducted additional studies at sites where healthcare delivery options have 

been realigned through the CARES process. These studies are evaluating outstanding 

health care issues, developing capital plans, and determining the highest and best use 

for the unneeded VA property. 

EU Authority

The authority to use enhanced-use leasing was originally enacted in 1991, in sections 

8161 through 8169 of title 38, USC. Renewed in 2001, VA has authority to continue 

using this process until 2011. While this authority allows VA to lease land and/or 

buildings to public, private and/or non-profit sector entities for up to 75 years, the 

use of this property must be consistent with VA’s mission. Leased property may be 

developed for non-VA uses, and/or VA uses that will enhance the property. 

Congress chose to exempt the EU leasing authority from an array of restrictive 

Federal statutes to help provide flexibility in its application. VA must abide by all 

Federal environmental laws (e.g., the National Environmental Policy Act and the 

National Historic Preservation Act.) VA is not required to follow typical Federal 
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acquisition rules when selecting the EU lessee, but VA must use procedures that 

ensure selection process integrity. 

Benefits to VA

The initial results of this program include significant cost savings. VA’s EU leasing 

program is unlike those of traditional government, which offers little more than a 

revenue return in proportion to the depletion of the leased asset. VA’s EU leasing 

program encourages innovative public/private partnerships. In return for the lease, 

VA must obtain fair consideration (monetary and/or in-kind) in various forms 

including but not limited to revenue, facilities, space, or services. 

Generally, when an agency generates revenue connected to real property, proceeds 

must be deposited in the U.S. Treasury. Under the EU program, funds received as 

consideration may be kept by VA. This provision in law provides the incentives 

necessary to encourage government property managers to be creative and 

aggressively pursue opportunities to partner with public, private and/or non-profit 

entities. 

The success of the EU lease program depends on sound development of economics. 

The program works best when government requirements can be defined in business 

terms. This adaptation allows the public, private and/or non-profit sector to finance, 

construct and operate in a commercially viable manner. Program outcomes include 

improved redevelopment opportunities for underutilized properties, enhanced 

services for veterans, significant cost savings, substantial private investment, new 

long-term sources of revenues as well as jobs or tax revenues for the local, state and 

Federal governments. EU leasing supports the President’s Management Agenda by 

improving VA financial performance and demonstrating budget/performance 

integration. 

Benefits to Developers and Local Community

An EU lease provides the developer (lessee) with the long-term property interest 

necessary to secure financing through capital markets, and allows the developer to 

amortize any capital investment made to the property or facility over time. Although 

the underlying land is still Federal property, the facility is subject to State and local 

taxes, which results in an increased tax base for the local community. This boost in 

local revenue in turn, facilitates the local community’s ability to provide needed 

services. Along with substantial private investment, EU leases provide new longterm sources of revenues for the local economy, jobs, and tax revenues for the local, 

state and Federal sectors. 
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Transparency

A key component of the EU leasing program is close coordination with and 

involvement of the local government and community as full partners in the 

development process. For example, VA must hold a public hearing at the location of 

any proposed EU lease to obtain veteran and local community input. VA also must 

provide a notice to its Congressional oversight committees prior to entering into an 

enhanced-use lease. Close collaboration with community leaders and interested 

stakeholders enables VA to address concerns early in the planning and development 

process. 

Project Types

Since enactment of the EU leasing statute, VA has developed a variety of projects that 

include office buildings, parking facilities, low-cost senior housing, cogeneration (heat 

and electricity) energy centers, single room occupancy housing (homeless shelters), 

and child care and mental health centers. 

VA continues to explore ways to expand the use of this capital asset management tool 

and streamline the complex EU process. 

Recent Enhanced-Use Lease Successes 

Following are examples of EU leasing projects awarded during FY 2007: 

Sepulveda, CA- Supportive Housing for Homeless Veterans (Building 5)

On December 21, 2007, VA signed an enhance-use lease with New Directions 

Sepulveda II L.P. to finance, renovate, construct, operate, repair and maintain 

“Supportive Housing” consisting of no more than seventy–six (76) units in building 5 

on the 3.22 acres of VA land for the purpose of providing Supportive Housing to 

Homeless Veterans. 

This lease will result in the availability of safe, affordable supportive housing for 

veterans, on a priority basis. In addition, VA will receive as consideration for this 

lease the following; cash in the form of 10% of gross revenues received from 

Filmmaking Activities on the Property, in-kind services in the form of professional 

counseling, case management and crisis management services to veteran tenants, 

professional/technical training services for VA employees, and temporary use of the 

property by VA employees for VA activities. 

Overall this lease will result in significant cost avoidance to the Department by 

reducing reliance on inpatient and domiciliary resources, and will permit more 

resources to be directed toward direct veteran care. 
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Sepulveda, CA- Supportive Housing (Building #4)

On December 21, 2007, VA signed an enhance-use lease with New Directions 

Sepulveda I L.P. to finance, renovate, construct, operate, repair and maintain 

“Supportive Housing” consisting of no more than seventy–six (73) units in building 4 

on the 3.83 acres of VA land for the purpose of providing Supportive Housing to 

Homeless Veterans. 

This lease will result in the availability of safe, affordable supportive housing for 

veterans, on a priority basis. In addition, VA will receive as consideration for this 

lease the following; cash in the form of 10% of gross revenues received from 

Filmmaking Activities on the Property, in-kind services in the form of professional 

counseling, case management and crisis management services to veteran tenants, 

professional/technical training services for VA employees, and temporary use of the 

property by VA employees for VA activities. 

Overall this lease will result in significant cost avoidance to the Department by 

reducing reliance on inpatient and domiciliary resources, and will permit more 

resources to be directed toward direct veteran care. 

Columbia, SC-Mixed Use/VARO/Realignment

On November 19, 2007, VA signed an enhance-use lease with Keenan Development 

Associates of South Carolina to finance, design, and develop on approximately 25 

acres of VA land, a new three-story 100,000 square foot office building for future 

tenants, a new research and clinical investigation facilities for the University of South 

Carolina School of Medicine (including renovation of Bldg. 10) and a new City of 

Columbia police/fire facility to serve the surrounding community. Any future 

Regional Office space requirement by VBA will be met through a separate real 

property procurement process. 

This lease will result in VA receiving ground rent or an option for 10,000 square feet 

of new clinical/administrative space, participation in profits, proceeds from capital 

events (assignments, refinancing), hazardous materials abatement and removal of 

existing buildings at no cost to VA. The total rent and in-kind consideration is 

valued at $5,500,000, which exceeds appraised value of $2,300,000 for the property. 
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Current Enhanced-Use Leasing Projects 

Secretary’s Approved Priority List and Awarded Enhanced-Use Leases

Enhanced-use lease projects that have been identified as Departmental priorities by 

the Secretary represent concepts that will be further developed to leverage VA assets 

to engage private business to meet VA requirements and needs. A listing of the 

Secretary’s approved priority list of enhanced-use leasing projects can be found in 

Appendix D. As further analysis is conducted, projects may be added, modified or 

deleted from this list. There are additional projects, particularly in light of the 

CARES decisions, that VA continuously assesses for potential priority consideration. 

All EU leasing projects require notification of Congressional oversight committees 

prior to entering into an enhanced-use lease. 

Awarded Enhanced-Use Leases

A list of enhanced-use lease projects that have been awarded since the inception of 

the program is provided in Appendix D. 

CARES Re-Use Studies 

The CARES process analyzed all VA medical centers, culminating in a final CARES 

decision. However, 18 sites proved to be too complex for the initial analysis; 

therefore, a second phase was conducted to determine suitability for future health 

care and re-use activities. These studies included evaluating outstanding health care 

issues to recommend health care delivery options, developing capital plans, as well as 

determining the highest and best use for the unneeded VA property. Completion of 

the detailed analyses (Stage 2) concluded in Fall 2007 with the exception of one study, 

the Boston Health Care System which concluded in Spring 2008. 

Background

The original 18 CARES site studies evaluated outstanding health care issues, developed 

capital plans, as well as investigated the best use for underutilized and excess land and 

vacant buildings on each site. There were nine sites evaluated for general reuse and nine 

sites evaluated for comprehensive reuse. 

The Office of Asset Enterprise Management was charged with hiring a real estate 

advisor to conduct a three-phase analysis on the nine comprehensive reuse sites. 

The three phases of the study included: 

 Phase 1 Data Collection and Planning Analysis 

 Phase 2 Reuse/Redevelopment Potential 

 Phase 3 General Reuse/Redevelopment Option 
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The Secretary rendered all decisions regarding the reuse opportunities on all the 

studies sites. The press releases announcing the Secretary’s decisions for each campus 

may be accessed through the VA web page. 

Site Review Initiative

The Site Review Initiative (SRI) was established December 4, 2006, to assess and 

manage the Department’s real property assets more effectively. OAEM, within the 

Office of Management, led the SRI by assembling a Site Review Board (SRB) 

comprised of key officials from the Veterans Health Administration, National 

Cemetery Administration, Veterans Benefits Administration, applicable staff offices, 

and outside consultants. The SRI consists of three phases to identify, select, and 

market underutilized real property sites within VA’s real property inventory. 

In Phase 1, a data collection template was used to gather and validate baseline real 

property data on every VA campus, including all recorded and unrecorded 

encumbrances. The initial assessment was based on available land, buildings, and 

encumbrances of approximately 285 sites. Data collected from the Capital Asset 

Inventory (CAI) and Capital Asset Management System (CAMS) were reviewed 

against established criteria to determine whether sites were eligible for further 

review. Based on this initial review, 93 sites were chosen for further data collection 

and evaluation. 

Phase 2 applied specific selection criteria to the underutilized properties to identify 

eligible sites for the initiative. The selection criteria included whether the campus had 

sufficient acreage or buildings for real estate development; severability of parcels 

from the main campus with unencumbered access; environmental, historic or legal 

constraints; future reuse plans approved and funded by the Department or other 

entities; local market dynamics; and potential for operating cost avoidance through 

other reuse strategies such as out-leasing. 

Based on the response from the data request and the selection criteria, 39 sites were 

chosen for future study and the SRB selected 18 sites for site visits and in-depth 

evaluation. During each site visit, comprehensive site and market data were 

collected. This information was used to determine recommendations on whether an 

enhanced-use lease (EUL) was appropriate. Ultimately, 15 sites were recommended 

by the SRB for inclusion on the Secretary’s EUL priority list for further action. The 

sites were the Lyons VAMC; Northport VAMC; Hines VAMC; Menlo Park Division – 

Palo Alto HCS; Bay Pines VA HCS; Long Beach VAMC; Minneapolis VAMC; 

Cheyenne VAMC; Asheville VAMC; Pittsburgh – Highland Drive HCS; Dallas/Ft. 

Worth VA Cemetery; Battle Creek VAMC; Newington Campus Connecticut HCS; 

Dayton VAMC and Augusta Lenwood VAMC. 
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The SRB also recommended that sites with potential land available, but with less 

viable commercial markets, be considered for a homeless housing EUL. Accordingly, 

an additional 34 sites were determined to have potential for a homeless housing EUL 

and were recommended for inclusion on the EUL priority list for further action. 

These sites are listed below: 

Facility Name Location 

Alexandria VAMC Alexandria, LA 

Greater LA HCS Sepulveda, CA 

North Texas HCS Bonham, TX 

Kerryville VAMC Kerryville, TX 

Kansas City VAMC Kansas City, MO 

Roseburg HCS Roseburg, OR 

Lake City VAMC Lake City, FL 

Tomah VAMC Tomah, WI 

Illiana HCS Danville, IL 

Central Texas VA HCS Temple, TX 

Lebanon VAMC Lebanon, PA 

Western NY HCS Batavia, NY 

Wichita VAMC Wichita, KS 

Central Iowa HCS Des Moines, IA 

Central Iowa HCS Knoxville, IA 

Martinsburg VAMC Martinsburg, WV 

Northern Indiana HCS Marion, IN 

Northern Arizona VA HCS Prescott, AZ 

Overton Brooks VAMC Shreveport, LA 

Coatesville VAMC Coatesville, PA 

Eastern KS HCS Topeka, KS 

White River Junction VAMC White River Junction, VT 

Montana HCS Fort Harrison, MT 

Tuscaloosa VAMC Tuscaloosa, AL 

Amarillo VAHCS Amarillo, TX 

Togus VAMC Augusta, ME 

CAVHCS Tuskegee, AL 

Chillicothe VAMC Chillicothe, OH 

Bath VAMC Bath, NY 

Black Hills HCS Fort Meade, SD 

Salem VAMC Salem, VA 

Sheridan VAMC Sheridan, WY 

Butler VAMC Butler, PA 

Iron Mountain VAMC Iron Mountain, MI 
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Phase 3 of the SRI begins with the addition of these sites to the Secretary’s EUL 

priority list. VA will conduct additional feasibility and market analysis as well as 

market the selected sites for enhanced-use leasing opportunities and award long-term 

leases as deemed appropriate to complete this phase. 

Another form of disposal is the Federal asset sales initiative. 

Federal Asset Sales Initiative 

Background

Each year, the Federal government sells personal and real property assets to the 

public, valued at billions of dollars. Previously, individual Federal agencies used a 

variety of methods to sell these assets and provided related-asset sale information. 

An initiative, FAS, was added to the President’s Management Agenda (PMA) to 

bring conformity to the variety of methods used to sell Federal assets. OMB and 

GSA subsequently moved forward as the sponsor and project lead. 

Current VA Environment

VA is among the few Federal agencies with the authority to sell its real property 

assets independent of the General Services Administration (GSA). VA also reports 

asset disposals—including sales—in the annual FRPC reporting requirements. 

Personal Property - VA has already migrated to GSA (a designated FAS Sales Center) 

to sell VA surplus personal property. GSA is the sales agent for VA personal 

property and has responsibility for reporting.

Real Property - Loan Guaranty (Residential) – VA does not market properties directly 

through GSA, due to contractual restrictions with their loan servicing companies. VA 

is the sales agent for residential real property. VA listings are linked to the FAS 

website. Quarterly residential sales are now provided to GSA in response to FAS 

requirements. 

Buildings and Land/Facility Infrastructure – On March 22, 2006, VA Directive and 

Handbook 7633 was issued identifying the options for managing underutilized real 

property in VA’s capital asset portfolio. Directive and Handbook 7633 includes a 

specific listing of the VA recognized options for reducing the underutilized capacity 

of VA real property. These options include Enhanced-Use Lease authority, Transfer 

authority, GSA disposal, Like-kind Exchange of Property, Mothballing, 

Deconstruction and Demolition. All VA facility disposals are reported to the 

FRPC/GSA annually. 

In FY 2008, VA completed all planned milestones and implemented Federal Asset 

Sales quarterly reporting. So far, this reporting has been limited to residential 
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property sales. VA’s FRPC reporting was expanded to include required FY 2007 

elements, including lease maintenance and lease authority indicators and disposition 

net proceeds and disposition recipient. Both reporting efforts were completed as 

planned and scheduled.
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CHAPTER 6: MANAGEMENT TOOLS AND INITIATIVES 

Capital Asset Management System 

In September 2004, VA completed implementation of a state-of-the-art capital asset 

management system (CAMS). The CAMS has the inter-portfolio capability to view 

assets by their life-cycle stage and across different asset type portfolios. Data is 

captured at the individual site level and structured in a relational database so that a 

full range of views, such as alpha and numeric sorts and roll-ups are possible. 

One of the more successful features of CAMS is its ability to use existing source 

systems data. Local data managers can continue to use already familiar systems, and 

CAMS performs regular electronic extracts of that data for analysis and reporting 

purposes. VA’s Office of Asset Enterprise Management (OAEM) has worked in close 

collaboration with other VA offices to ensure the validity and integrity of the data 

sources that feed into CAMS. OAEM issues periodic data calls supported by Q&A 

teleconferences and written guidance posted to the OAEM web site. CAMS extracts 

the following key capital asset-related data from several Departmental and VA 

Administration data sources: 

 General – Inventory 

 Condition 

 Financial Data 

 Workload (projections, planned, actual) 

 Utilization 

 Energy Usage 

CAMS allows for web-based input of concept papers, planning, and acquisition 

business case applications. The data is organized, analyzed, and presented to track 

and monitor VA’s assets against performance goals within and across asset types and 

administrations. 

CAMS provides several outcomes that result in improved service delivery to veterans 

and increased financial accountability to the general public. The impact of this 

innovative technology is demonstrated by CAMS ability to: 

 Integrate asset management and governance at multiple levels 

 Improve financial and analytical capability 

 Improve performance management 

 Provide for increased and better-informed decisions 

 Improve service delivery 

The CAMS initiative supports the President's Management Agenda (PMA) and 

Executive Order 13327, Federal Real Property Asset Management. CAMS has 
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positioned VA to fully contribute to and comply with Federal Real Property Council 

(FRPC) guidance. 

VA’s capital portfolio goals are closely tied with the asset management core objective 

- to provide a safe and appropriate environment for the delivery of benefits to 

veterans in a cost-efficient manner. In FY 2005, VA implemented the Federal Real 

Property Council (FRPC) Tier 1 goals and aligned VA and FRPC goals. In FY 2006, 

VA incorporated the additional disposal data elements required for FRPC reporting; 

implemented environmental and life safety performance measures to show 

compliance of VA buildings; and integrated energy reporting with real property 

management. Disposal reports, including actual and planned assets for disposal, were 

generated from CAMS. Lastly, in FY 2006, Energy Star Portfolio (an Environmental 

Protection Agency (EPA) program) quarterly reporting was automated, along with 

Annual Energy Performance reports. This improved integration promotes consistent 

data and complete picture of real property performance. In FY 2007, FRPC reporting 

was updated to include disposition net proceeds, disposal recipient, as well as lease 

maintenance and lease authority indicators. VA updated its financial system to reflect 

specific energy costs, not just traditional energy. 

CAMS is the main tool that allows VA to comply with this complex type and level of 

asset performance measurement. VA is one of the leaders in real property 

management, continuing to achieve a “Green” status for its real property initiatives 

and scorecard. Within VA, CAMS has already had an impact on capital asset data 

management. Inventories have been improved, related costs are more accurately 

tracked and numerous pre-existing asset-related databases have been linked and 

coordinated. The CAMS process has generated a renewed focus on capital asset 

matters at all levels of the Department. 

Business Intelligence (BI) is the next generation of CAMS scheduled for full 

implementation in January 2009. Phases leading up to installation include detailed 

system testing in the third quarter of FY 2008; user acceptance testing in the fourth 

quarter of FY 2008; and production parallel processing in the first quarter of FY 2009. 

Key users from the Office of Asset Enterprise Management (OAEM) as well as 

representatives from other VA administrations received an initial training class in 

May 2008.

Reporting 

CAMS is the Department’s recognized system for tracking and reporting on capital 

assets. CAMS is a web-based portfolio management system that facilitates asset 

management at all strategic levels within the organization. Each organizational level 

may be interested in viewing specific performance goal and various health measure 

reports. The system is designed to provide these views for each level in order to 

facilitate the management of assets and produce an improved portfolio of assets. 
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Current performance and trends in asset performance can be determined using 

available system tools such as scorecards and investor maps. 

VA senior managers and administration authorities have the ability to access the 

system and review performance of various asset categories in their network. They 

take a front-line approach to ensuring that assets are performing as expected. 

Performance achievement is quantified in the system and can be measured to 

determine if goals and expected gap closures are being met. The frequency of this 

review can be determined by the field users. 

Higher level management at the administration and Department level is more 

concerned with performance on a more global level of review. Performance of entire 

categories of assets can be compared and viewed. If performance issues arise, 

information can be drilled down to determine the specific asset for which corrective 

action may need to be taken. Portfolio management decisions can be determined 

based on reports generated at this level. 

VA reports capital asset performance in executive-level (Deputy Secretary) monthly 

performance reviews. The report highlights asset performance on VA’s portfolio 

goals, FRPC and energy measures. The report identifies regions with asset 

performance outside 10% of VA’s strategic targets. Explanations or action plans to 

address outlying performance are included in the report. VA provides regular asset 

performance reports to the Office of Management and Budget for the President’s 

Management Agenda Real Property and Energy Initiatives. CAMS enables VA to 

respond to ad hoc report requests from Congress, the Government Accountability 

Office, and others. 

VA Human Capital Strategy 

The Department has taken several actions to ensure project managers, capital asset 

managers, and procurement officials have the proper training and skills necessary in 

order to carry out their positions effectively. The actions are as follows. 

Training

Training is an integral part of human capital strategy. VA staff receives the necessary 

capital training both in-house and through the private sector. One example of inhouse training is the instruction provided on CAMS, which is essential for capital 

asset managers to implement sound operational policies for the effective management 

of departmental assets. The goal of this training is to orient staff of the Capital Asset 

Management Offices, to their roles in VA’s capital investment process, and provide 

users with a working understanding of VA’s CAMS. The training session is also used 

to create a mindset of monitoring assets based on performance and identifying when 

an asset is no longer fit to operate. 
Asset Management Plan FY 2008

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Another example of instruction provided by VA is the comprehensive training 

seminars on the preparation of the Exhibit 300 business cases to ensure each 

application is completed consistently and successfully. VA has also developed a 

Capital Investment Methodology Guide to serve as a reference for preparing capital 

investment applications. This guide is available online to all VA users and explains 

the investment process, decision-making criteria, and step-by-step instructions on 

how to complete VA business cases. The specific link to this training tool is provided 

in Appendix F. 

Contracting Specialists and Contracting Officers Technical Representatives (COTR) 

also receive certified training to perform VA acquisitions and contract monitoring for 

leases, agreements and construction. Mandatory contracting officer courses include 

acquisition planning, contract formulation, price analysis, contract negotiation 

techniques, cost analysis, contract administration, and contract law. COTRs are 

required to attend certified training every two years to perform the duties assigned by 

a warranted contract officer. 

VA sets high standards for its capital asset managers, project managers and other 

positions that have a capital-related function. For example, VBA Facilities 

Management staff are completing Project Management training, a seven-course 

curriculum provided by George Washington University, resulting in formal 

certification. Procurement and contracting officials above the GS-13 grade level are 

required to have a certified warrant with contracting authority commensurate with 

the level of the contract; and hold a 4-year bachelor’s degree supplemented by at least 

24 semester hours in any combination of the following fields: accounting, business, 

finance, law, contracts, purchasing, economics, industrial management, marketing, 

quantitative methods, or organization and management. Contracting staff who do 

not meet these educational prerequisites will have to meet the basic requirements in 

order to qualify for promotion to a higher grade. Waivers can be granted if an 

applicant can demonstrate specialized experience and the applicant possesses 

significant potential for advancement to levels of greater responsibility. 

Guidance and Policies

VA has established capital policies that provide VA staff the rules, appropriate 

procedures and management tools related to effective capital asset management. 

This guidance includes the key directive, Capital Asset Management. This directive 

was issued in August 2003 and established a uniform framework for VA’s capital 

asset policies, standards, and business practices. The VA-wide Capital Asset 

Management policy requires all offices to ensure decisions and initiatives are planned 

and executed with the goal of constructing a corporate capital asset portfolio of 

maximum functional and financial value. It also assists in ensuring all VA capital 

asset management policies complement the Department-wide framework. The policy 

incorporates common government-wide terminology (such as “portfolio 
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management,” “life-cycle management,” and “cost-effectiveness analysis”) to ensure 

consistency and a uniform capital investment process. In addition, the policy states 

that decisions regarding investment, management, and disposal of VA’s capital assets 

will be based on a corporate capital asset programming framework built from a 

uniform set of key components, reflective of the following four principles: 

Life-Cycle Management. Policies, procedures, and business practices should 

facilitate effective management of capital assets at all life-cycle stages (formulation, 

execution, steady state, and disposal). A life-cycle management approach 

incorporates asset management practices to monitor and assess asset performance 

using operational and financial criteria (e.g. utilization, functionality, condition, 

value, and cost of asset ownership). 

 

VA Adoption of Building Information Modeling VA has adopted the use of 

Industry Foundation Class (IFC) compliant parametric Building Information 

Modeling (BIM) for all new major construction projects starting with design in FY 

2009. The use of this innovative technology will improve program tracking, building 

systems coordination, foster much improved visualization of the design and 

construction process, ultimately reduce costs, better manage risk, and provide data 

for operation and maintenance during the life cycle of these buildings. The ability to 

transfer data between software systems using IFC protocol means design information 

can transfer directly for construction and facility management purposes reducing 

time, money, and errors. 

Empowerment of Accountable and Qualified Asset Decision-Makers. All VA 

offices must internally identify the specific offices and/or positions within their 

organization, as well as their scope of responsibility and level of accountability that 

provide capital asset-related functions and skills. The goal is to ensure VA has the 

professional staff with sufficient knowledge, training, skills, and expertise to ensure 

the integrity of VA’s capital asset management systems. 

Due Diligence. Stewardship of VA’s capital asset portfolio requires “good-faith” 

compliance with applicable laws, regulations, policies, and procedures; full 

accounting of all costs; prudent oversight and evaluation; and strong administrative 

controls. “Due diligence” reviews are conducted by the administrations and staff 

offices. Reviews cover a wide range of issues (e.g., checklists and protocols for 

environmental requirements; assessments; liabilities; impacts; property entitlements 

or encumbrances; and closing documentation needs) as appropriate. 

 

Maximizing Benefits to Veterans. Maintaining VA’s capability to perform missioncritical functions and seeking to effectively and efficiently maximize benefits to 

veterans should always be the primary consideration in every capital asset-related 

decision. 
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Energy, Environment and Transportation (EE&T) Management 

Background

In January 2007, the President signed Executive Order (EO) 13423 - Strengthening 

Federal Environmental, Energy and Transportation Management, which raised the 

bar on the energy requirements contained in 2005’s Energy Policy Act and addressed 

environmental and transportation (vehicle fleet) management improvements in an 

integrated approach. In order to address the new requirements contained in EO 

13423, VA integrated its Department-level transportation and environmental 

management policy and program offices with the energy policy and program office 

that VA established in 2003 within the Office of Asset Enterprise Management. 

EE&T Programs and Program Management 

The Office of Asset Enterprise Management (OAEM) continues as the lead office in all 

Department-level energy initiatives, and in June 2007 became the lead office for 

environmental and transportation management initiatives as well. OAEM is 

participating in inter-agency workgroups and related sub-group meetings in all three 

areas, including: the Inter-Agency Energy Management Task Force; the Interfuels 

Working Group; the Federal Energy Savings Performance Contracting (ESPC) 

Steering Committee; the Federal Electronics Stewardship Working Group; the 

Interagency Sustainability Working Group; the Environmental Managements Systems 

Working Group; and others. OAEM is updating existing energy, environment and 

fleet management programs, policies, and other guidance to reflect the myriad new 

mandates put in place in these areas since 2005 and lessons learned from 

implementing existing programs. 

Energy - In response to the Energy Policy Act of 2005 (EPAct 2005), VA established a 

Department-wide Energy Management Task Force to address new requirements and 

to accelerate the adoption of energy efficiency practices and prudent energy 

investments throughout VA. The Task Force authored an Energy Management 

Action Plan that currently serves as VA’s blueprint for addressing Federal energy 

mandates and internal goals. The Task Force is updating the Action Plan to reflect 

EO 13423 and EISA 2007 requirements. 

Transportation - VA is pursuing a similar approach for its transportation 

management program effort. VA chartered a Fleet Management Task Force in 2007, 

drafted an Action Plan, and expects to improve its performance in this area in the 

future as the plan is refined, finalized and implemented. 

Environmental – VA established an Environmental Management Task Force and is 

developing an Environmental Management Action Plan via a working group. This 
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Plan incorporates and updates existing plans that address targeted areas, including a 

VA Chemicals Management Plan and Electronics Stewardship Plan. 

Data and Reporting

Energy - In FY 2007, VA again added new energy reporting categories to CAMS to 

fulfill new annual reporting requirements. The expanded energy data was included 

in FY 2007 reporting to DOE. In FY 2006, VA began an automated benchmarking 

process in partnership with the EPA’s Energy Star program. Using online tools and 

computer programming, VA in FY 2007 continued quarterly energy benchmarking of 

all its hospitals via this process. 

Environment - Data on VA’s environmental management systems is entered into and 

scored via the inter-agency database located on the FedCenter website. VA collects 

data for the annual Resource Conservation Recovery Act (RCRA) reporting effort via 

an in-house automated survey tool. As RCRA reporting requirements change, VA 

changes the survey tool to reflect what is needed. 

Transportation - VA enters key transportation fleet data into an inter-agency 

database -- the FAST database -- and is able to view and report on the data using 

FAST analytical tools. In addition, VA has created an internal database, CARS, to 

track key information about VA fleet vehicles around the country. 

Sustainability – As part of its effort to create the VA Sustainable Buildings 

Implementation Plan, VA is conducting a survey to estimate the amount of 

sustainable features existing inventory reflects. Sustainability indicators are being 

added to appropriate VA databases so that improvements in both individual and 

overall levels of sustainability can be tracked. 

Results

Energy - VA’s improvement in energy management since 2005 is evident in the OMB 

energy management scorecard status rating, which was “red” initially but has been 

“green” for the past two years. Accomplishments include: 1) establishing a central 

energy business office to serve all of VA’s energy-related contracting needs; 2) 

completing regionally-based energy assessments of over half of VA facilities in two 

years; 3) placing facility energy managers in the field to cover all VA facilities and 

designating a manager for each region; 4) developing a sustainable design and energy 

reduction manual applicable to all new construction and major renovation projects; 

and 5) screening all VA facilities for renewable energy project potential; and 6) 

launching a renewable projects pilot program under which two sites are receiving 

solar PV systems, two solar thermal systems are being repaired, one site is installing a 

wind turbine, and a geothermal system is going in at another location. 

Environment - VA chartered and began meeting as a Department-level 

Environmental Management Task Force to finalize and implement an Action Plan. 
Asset Management Plan FY 2008

62

The draft Plan integrates and addresses a number of previously discrete 

environmental initiatives. VA accomplishments to date include: 1) maintaining an 

up-to-date environmental website resource for both internal and external audiences; 

2) executing annual web-based training on green purchasing and other aspects of EO 

13423/RCRA 6002/FSRIA 9002 implementation and reporting; and 3) forming a 

Sustainable Buildings Council and crafting an Action Plan to serve as a blueprint for 

meeting Federal sustainability mandates. 

Transportation - A newly-formed Task Force has developed a draft Action Plan and is 

already implementing key elements. Successful initiatives since 2005 include: 1) 

exceeding the annual required procurement level of alternative fuel vehicles for the 

past two years; 2) implementing an improved in-house fleet vehicle database; 3) 

appointing 21 regional fleet managers; and 4) developing and conducting web-based 

training for fleet reporting. 

Collaboration with Department of Defense

There have been many efforts by Congress and the Executive Branch to target 

increasing cooperation and sharing between VA and the Department of Defense 

(DoD) in order to improve the efficiency and cost-effectiveness of healthcare delivery 

for beneficiaries. 

The President established a task force to identify the forces that present challenges to 

cooperation. The President’s Task Force to Improve Health Care for Our Nation’s 

Veterans was established by Executive Order 13214 on May 28, 2001. To formalize 

this goal and institutionalize collaboration between Departments, the President made 

“Coordination of Veterans Affairs and Defense Programs and Systems” one of the 15 

management initiatives in the President’s Management Agenda. The Task Force was 

charged with identifying opportunities for improved coordination between the two 

departments as well as barriers and challenges that impede VA/DoD coordination. 

The Task Force completed its work and submitted the final report to the President in 

May 2003. In pursuit of the President’s Management Agenda and in concert with the 

Task Force’s organizing principles, the VA/DoD Construction Planning Committee 

(CPC) was created under the VA/DoD Joint Executive Council (JEC) chaired by the 

Deputy Secretary of VA and the Under Secretary of Defense for Personnel and 

Readiness. The CPC was established to provide formalized structure to facilitate 

cooperation and collaboration in achieving an integrated approach to capital 

coordination that considers both short-term and long-term strategic capital issues 

and is mutually beneficial to both departments. The primary focus of this group is to 

ensure collaborative opportunities for joint capital asset planning are maximized. 

The CPC also serves as the clearinghouse for the final review of all joint capital asset 

initiatives submitted by any element of the JEC. The CPC is comprised of 

individuals with comprehensive knowledge of relevant policy issues within their 
Asset Management Plan FY 2008

63

respective agencies with regard to capital asset planning, investment, and 

management. 

The CPC identified opportunities and challenges to capital collaborations for FY 2009 

through 2013 and is working to establish overarching funding principles applicable 

to joint collaborations. The CPC assesses DoD’s excess real property identified 

through the Base Realignment and Closure (BRAC) program in meeting VA 

requirements. The CPC also serves as the clearinghouse for review of construction, 

leasing, and real property dispositions proposed by any element of the VA/DoD JEC 

structure. 

VA/DoD Joint Strategic Plan 

The VA/DoD Joint Strategic Plan targets the improvement of management of capital 

assets, procurement, logistics, financial transactions, and human resources. The CPC 

is tasked to identify collaborative construction initiatives and pilot a core group on 

three sites identified through the CARES and BRAC processes. This core group will 

facilitate the successful formulation of three major initiatives. 
Asset Management Plan FY 2008

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Asset Management Plan FY 2008

65

CHAPTER 7: RECENT ACCOMPLISHMENTS AND FUTURE GOALS 

Since the publication of VA’s first AMP, the Department has made increased progress 

in managing its real property at strategic and programmatic levels. In keeping with 

guidance from the FRPC, the Energy Policy Act of 2005 and other Federal mandates, 

VA accomplishments address the specific areas of: 1) capital projects leading to 

increased asset performance; 2) asset disposal; 3)improving energy, environmental 

and transportation management, increasing energy efficiency, and reducing 

environmental impact; and 4) performance measures and reporting. Below is an 

overview of recent strategies and their respective program and technical 

accomplishments that shows recent VA progress. 

Recent Accomplishments 

Capital Projects Leading to Increased Asset Performance

Capital Asset Realignment for Enhanced Services (CARES) 

 Implemented CARES Program – forty projects, not including Gulfport or 

New Orleans, are in process: 

o Five projects are complete; 

o The status of the remaining thirty-five is as follows: 

 Design phase – 10 

 Construction – 17 

 Planning and Site Selection – 8, 

 Medical Centers maintaining status quo with continued sustainment and 

improvements to capital assets: 

o Big Spring, New York Harbor Health Care System, Montrose, 

Muskogee, and Popular Bluff 

 Medical Centers needing capital construction investments to carry out 

decision: 

o Canandaigua, Castle Point, Lexington, Louisville, Livermore, 

Montgomery, Perry Point, St. Albans, Waco, Walla Walla, West Los 

Angeles, and White City VA Medical Centers (VAMCs) 

 Waco, TX – Current services are being retained and meet 

requirements for a Center of Excellence for Post-Traumatic Stress 

Disorder; Also directed to pursue reuse of vacant buildings and 

land through VA’s Enhanced-Use Lease Program. 

 Walla Walla - Directed to use existing contracting authority to 

provide inpatient and nursing home care and to explore 

partnerships and other opportunities to utilize the historic 

campus. 

 White City – Directed that a capital plan be developed that: 1) 

combines new construction and renovation; 2) replaces several 

domiciliary buildings through new construction; and 3) expands 
Asset Management Plan FY 2008

66

ambulatory specialties and outpatient mental health services 

(should consider enhanced-use leasing opportunities) 

 St. Albans – Directed that a capital plan for new construction be 

developed for the new nursing home, domiciliary and outpatient 

clinic. 

 Lexington - directed that the inpatient and outpatient facilities be 

replaced; all new construction will be on the southeast portion of 

campus. Existing buildings and part of campus will be available 

for reuse after construction is completed. 

 VA acquired 4.3 acres of land adjacent to the James A. Haley 

Veterans’ Hospital, Tampa, Florida to relocate ambulatory care 

and administrative services to existing buildings on the site and 

expand the hospital parking. 

 A lease contract for 28,000 SF of clinical space for the Knoxville, 

Tennessee, outpatient clinic was awarded. 

 Gulfport, MS, was removed from the study due to Hurricane Katrina 

Enhanced-Use Leasing 

 Awarded EUL projects of various complexities. 

 Developed the EUL directive and handbook to provide guidance on the 

streamlined process. 

 Assisted with CARES sites for Reuse coordination and evaluation with 

proposed capital improvements at nine VAMC sites. 

 Implemented Post Transaction Oversight Tool (PTOT) – Desktop tool to 

efficiently and effectively monitor and comply with the terms of the 

executed EU leases. 

 Initiated the Healthcare Center Facility (HCCF) studies; to provide 

alternatives to major construction backlog while increasing veterans 

accessibility and services provided. 

 Completed the National Site Review Initiative on which 34 sites were 

selected for EUL projects for homeless housing or market driven EUL’s 

with a homeless component. 

 Completed the National Site Review Initiate on 15 sites for market driven 

opportunities whose benefits will provide enhanced services to the 

veterans, which may includes homeless housing. 

 Completed the executed EUL physical files reorganization and merger with 

VHA’s records. 

 Completed executed projects electronic database which contains of all the 

major documents related to an EUL in an Adobe Acrobat format. 

Physical Security - Progress has been made by VHA in the area of physical 

security for Federal real property assets, demonstrating leadership in multi-hazard 

protection of VA facilities. Accomplishments are as follows: 
Asset Management Plan FY 2008

67

 Developed Physical Security Assessment Methodology for VA Facilities, 

September 2002. 

o This multi-hazard risk assessment process includes identifying and 

ranking risks and vulnerabilities, with suggested remedial actions to 

mitigate the major vulnerabilities at prioritized mission critical 

facilities. 

 FEMA requested VA assistance to evolve VA’s assessment process into a 

system suitable for both private and other public facilities: 

o This collaborative effort resulted in FEMA’s Reference Manual to 

Mitigate Potential Terrorist Attacks Against Buildings (FEMA 426; 

Published December 2003) and Risk Assessment: A How-To Guide to 

Mitigate Potential Terrorist Attacks (FEMA 452, Published January 

2005). The Department of Homeland Security took the unusual step of 

placing VA’s seal with theirs on the cover of FEMA 452 to express’s 

their appreciation of VA’s assistance. 

 Beginning in FY 2005, VA included funding for Physical Security 

Enhancements in the Major Construction Program budget request. 

 Completed Physical Security Assessments of 140 of VA’s most missioncritical facilities in 2006 

 Secretary concurred in VA Physical Security Strategies Report in May 2006. 

o The report outlined 24 elements to enhance the protection of VA 

facilities and improve their ability to remain in operation and protect 

the safety of veterans, staff, and visitors. This program includes 

requirements for four categories of VA facilities, both new and existing, 

mission critical, which must remain in operation, and life safety 

protected facilities. 

 Completed final draft of Physical Security Design Manual in December 

2006. 

o The manual is based on the Physical Security Strategies Report. 

Physical Security Design Manual was released in July 2007. 

Hurricane Assessments 

VA has conducted hurricane assessments of its medical centers and major clinics 

located in hurricane prone locations. These assessments identified current 

capabilities, deficiencies and recommended mitigations to upgrade infrastructure to 

improve the capability of the facilities to remain in operation after a major hurricane 

and related flooding emergencies. Estimated strategic budget projections to 

remediate deficiencies were also included in the report. Major infrastructure systems 

and cost breakdowns included: 

 Standby power; full electrical system and fuel storage; 

 Water: potable, industrial, sewage – supply and/or storage; 

 Enclosure: building skin, glazing, roof, canopies, etc.; and 

 Flood protection. 
Asset Management Plan FY 2008

68

Asset Disposal

 Developed a real property disposal policy, Managing Underutilized Real 

Property, Including Disposal (VA Directive and Handbook 7633). The real 

property disposal policy provides a standard methodology and criteria for 

identifying appropriate underutilized assets for disposal. 

 Disposed of 42 buildings in FY 2005, 77 buildings in FY 2006 and 52 in FY 2007. 

155 buildings are planned for disposal in FY 2008, and 87 buildings in FY 2009 

are planned. 

 Submitted annual disposal plans of underutilized and vacant property. 

 Submitted quarterly Disposal status report to OMB (Office of Management and 

Budget). 

Energy, Environment and Transportation Management 

 Are implementing and maintaining current an Energy Management Action 

Plan that is serving as a blueprint for meeting Federal mandates and achieving 

internal goals. 

 Established a Green Buildings Council and Action Plan. 

 Energy-related contracting services for all of VA being provided through a 

centralized business office. 

 Published a Sustainability and Energy Reduction Design Guide on public 

website. Use of the Guide is mandatory for all new construction and major 

renovation projects. 

 Acquired more than required number of alternative fuel vehicles, and made 

improvements to internal database to help track efforts to meet all fleet 

alternative fuel mandates. 

 Hired 42 facility-level energy managers 

 Completed region-wide facility energy assessments for about 25% of VA 

facilities. 

Performance Measures and Reporting

 Fully complied with FRPC requirements to track and report asset inventory 

and performance at the constructed-asset level in FY 2005, FY 2006, and FY 

2007. 

 Implemented a capital asset performance review on a quarterly basis as part of 

the Monthly Performance Reviews (MPR) at the executive-level. 

 Updated data source systems to comply with additional FRPC reporting 

requirements. 

 Updated CAMS to meet energy reporting requirements. 

 Updated CAMS to track and report environmental and life safety compliance. 

 Updated lease benchmarks. 

 Completed Facility Condition Assessments at 31 VAMCs. 

 The steady-state space model (SpaceDriver) was updated using the latest 

workloads for all VAMCs. 
Asset Management Plan FY 2008

69

 Completed Phase I of NCA Facility Condition Assessments (FCA). 

 Reviewed, updated and corrected the status of all NCA assets for the Capital 

Asset Inventory (CAI). 

 Completed new certified Leadership in Energy and Environmental Design 

(LEED) at regional office in Reno, NV and Ft. Harrison, MT. 

 Developed Enhanced Data Validation Plan. 

 Developed and Completed VA Federal Asset Sales Strategy, Milestones and 

reporting requirements. 

 Worked with CFM (Construction and Facilities Management) to reconcile 

financial policy on deferred maintenance and Facility Condition Assessment 

(correction costs). 

 Developed Business Intelligence (BI) Project Plan, Technical Architecture and 

Development Environment. 

 Completed VA Energy Star submission. 

 Updated CAMS to track and report environmental and life safety. 

 Developed and Implemented Environment of Care Report. 

 Coordinate Real Property efforts with FLITE (Financial and Logistics 

Integrated Technology Enterprise) and SAM (Strategic Asset Management) 

implementation. 

Current and Future Goals/Milestones 

To maintain the momentum and build on the recent accomplishments, VA has plans 

in place for continuing improvements toward maintaining the right number of assets 

at the right costs. Planned action over the next two years includes:

FY 2008

 Continue CARES implementation; 

 Align capital investments to FRPC Tier 1 measures; 

 Work towards improved collaboration and partnership with the Department of 

Defense regarding capital projects; 

 Expand facility and asset benchmarking to ensure costs align with market 

rates; 

 Issue VA Physical Security Standards to include a Physical Security Design 

Manual addressing new and existing, mission-critical and life safety protected 

VA facilities; 

 Implement a VA process and strategy for Department review of progress in 

addressing physical security vulnerabilities in facilities that have had a 

physical security assessment completed;

 Complete energy assessments of approximately 60 facilities in six VISNs; 

 Hire an additional 45 new energy managers to serve VA facilities; 

 Implement renewable projects at pilot sites; 

 Complete metering pilot installations and evaluate; 
Asset Management Plan FY 2008

70

 Establish a VA Fleet Management Task Force and draft and Action Plan; 

 Establish a VA Environmental Management Task Force and draft an Action 

Plan; 

 Incorporate new elements into Green Buildings Action Plan to create a 

Sustainable Buildings Implementation Plan; 

 Designate regional-level energy and fleet managers for all 21 VISNs; 

 Continue annual FAS reporting; 

 Facility Condition Assessments will be completed in 7 VISNS and 56 Stations; 

 Implement FCA across NCA; 

 New Boise, ID regional office is planned as an additional/alternate LEED 

certification; 

 Incorporate FCA into: 

o Organizational Assessment & Improvement (OAI) Program 

o Minor Construction Prioritization Process (MCPP) 

FY 2009

 Complete energy assessments for approximately 30 facilities in three VISNs; 

 Award contracts for implementation of energy and water conservation; 

 Hire permanent regional-level energy managers; 

 Implement renewable energy projects at pilot sites; 

 Implement building-level metering for selected VA sites based upon results of 

pilot; 

 Implement elements of Fleet Management Action Plan; 

 Implement elements of Environmental Management Action Plan; 

 Implement elements of Sustainable Buildings Implementation Plan; 

 Continue annual Federal Asset Sales (FAS) reporting; and 

 Complete the studies on Health Care Center Facility (HCCF) 

 New Boise, ID & Columbia, SC VBA Regional Offices are planned as 

additional/alternate LEED certifications 

 Complete Facility Condition Assessments at four VBA locations: Fargo, Sioux 

Falls, Togus, & Wichita. 

Future Federal Real Property Asset Management Goals

To support the implementation of Executive Order 13327 and the Real Property Asset 

Management Initiative, the Federal real property community has undertaken a series 

of improvement efforts intended to strengthen key areas of asset management to help 

ensure success. VA already complies with some of the priority actions and is in the 

early stages of developing a plan to comply with all of the initiatives. Governmentwide reform activity initiatives are listed below. 
Asset Management Plan FY 2008

71

Decision Analytics

Strategic Goal: 

 Utilize available and reliable inventory and performance data to improve 

decision-making. 

Interim Objectives: 

 Review available inventory and performance data to determine the business 

questions that can be answered and which may be beneficial to agency 

management in decision-making. 

Priority Actions: 

 Identify the most eligible properties for sale in accordance with Section 408 of 

the DC Lands Act. 

 Increase sharing of information among agencies on unneeded assets. 

 Ensure use of asset specific performance data in decision-making process. 

 Incorporate the Performance Assessment Tool (PAT) or the approved 

equivalent as one criteria or element in the process of portfolio management 

decision-making. 

 Prioritize condition improvement investment actions based upon FRPP and 

agency specific data. 

Legislative Agenda

Strategic Goal: 

 Enact legislative remedies or other reforms to encourage business – like 

decisions throughout the life-cycle of real property assets as well as methods 

for streamlining the asset disposition process. 

Interim Objectives: 

 Obtain legislative authority to reform asset management and disposition, 

including the retention of sales proceeds. 

Priority Actions: 

 Enact the President’s legislative proposal to allow Executive agencies to retain 

a portion of the net proceeds of sale which would be directed toward the 

agency’s real property capital asset needs. 

 Capture disposal results of agency specific disposal authorities already in 

place. 

 Develop processes for identifying those unneeded assets suitable for 

disposition through an enacted President’s disposal pilot. 

 Analyze real property budget scoring issues. 
Asset Management Plan FY 2008

72

 Identify potential remedies to streamline both the Federal transfer process and 

the application of the McKinney-Vento Act and National Environmental Policy 

Act. 

Inter- and Intra- Agency Coordination

Strategic Goal: 

 Improve coordination of crosscutting real property activities within and 

among Federal agencies. 

Interim Objectives: 

 Increase coordination of Federal Councils and Committees with real property 

related responsibilities including, Interagency Security Council, Advisory 

Council on Historic Preservation, and the National Capital Planning 

Commission. 

 Identify and share, as appropriate, FRPC government-wide asset management 

activities with other governmental bodies that may leverage the guidance or 

activities. 

Priority Actions: 

 Increase sharing of information among Executive agencies on unneeded assets 

as required under Section 408 of the DC Lands Act. 

 Identify other real property related requirements, (e.g. historic preservation, 

sustainable design) and review for opportunities to increase coordination. 

 Assist the Interagency Security Council in their efforts to establish risk 

management policies and other measures. 

 Encourage other government organizations to leverage FRPC definitions and 

reporting schema to meet other government-wide real property related needs. 

 Formulate economic development case studies showing the benefits that third 

party stakeholders can receive through the disposal of unneeded and 

underutilized real property. 

 Review FRPC approved guidance to determine what information can be 

shared with a wider audience (e.g. public). 
Asset Management Plan FY 2008

73

CHAPTER 8: CONCLUSION 

The AMP documents the Department’s philosophy for managing its capital assets. 

VA incorporates this philosophy from acquisition/justification, funding, operations 

and maintenance of assets all the way through to disposal. The AMP provides 

guidance for all administrations across the Department to ensure capital investments 

are based on sound business practices to provide quality and cost-effective services to 

veterans. As a result, VA is able to: 1) provide a standard process for capital 

planning and need assessments; 2) apply sound business practices to analyze capital 

acquisitions; 3) analyze the process and performance of its capital assets; and 4) 

evaluate the effectiveness of VA’s policies, principles, and standards for capital asset 

management. 

VA adheres to FRPC guidelines, OMB Circulars, Presidential Management Initiatives, 

Executive Orders and legislative mandates in implementing its capital asset 

management program. The concepts and requirements of these Federal guidelines 

are integrated to provide a consistent approach to asset management across VA. 

VA uses a life-cycle approach to manage its capital assets. Capital assets start in the 

formulation stage, where a concept definition and business case are developed to 

justify the capital asset investment. The formulation stage also includes business case 

approval and budget appropriation. For VHA, capital assets are part of the CARES 

process, which is VA’s plan for aligning health care needs to areas experiencing 

greatest demand for services, improving the condition of facilities providing care, and 

reducing the quantity of underutilized and/or costly infrastructure. Next is the 

execution stage, where capital assets are monitored through the construction process 

according to time and cost schedules. After an asset is acquired or completed, the 

asset becomes operational and enters the steady-state stage. Operational assets are no 

longer tracked separately, but monitored for performance within the context of the 

facility or station. Steady-state assets are monitored and reported for decisionmaking based on cost, utilization, condition, and energy performance. Assets no 

longer needed enter the final stage of an asset’s life cycle – the disposal stage. The 

asset arrives at this stage when VA considers removing the asset from its portfolio if 

the asset is determined to be underutilized, in too poor of condition, beyond its useful 

life cycle and/or too costly to maintain. 

VA has different funding mechanisms to fund its capital asset requirements, such as 

Major Construction, Minor Construction, and Non-Recurring Maintenance funds. 

Each of these funding tools provides unique means to address both future capital 

asset requirements, as well as maintain assets to maintain performance and prevent 

further deterioration. VA continually reviews its methodologies for evaluating 

projects to ensure its most pressing needs are addressed. 
Asset Management Plan FY 2008

74

VA has many tools for managing its significant portfolio of assets. VA’s Capital Asset 

Management System (CAMS) is the Department’s recognized system for monitoring 

and reporting on asset performance. The Department has multiple human capital 

strategies for ensuring VA personnel are effectively prepared for capital asset 

management responsibilities, such as training conferences and policy directives and 

handbooks. VA is establishing a variety of strategies and programs to significantly 

improve energy, environmental and transportation fleet management. Using its 

unique authority, VA employs a number of approaches to dispose of assets to benefit 

veterans. VA can create an enhanced-use lease or other agreement that maximizes 

the value of an excess asset. The Department also may elect to sell an asset and retain 

proceeds to improve veteran services. VA reports asset disposals in keeping with 

FRPC requirements and the Federal Asset Sales Initiative. 

VA continues to seek alternative means to provide quality service to its veterans. VA 

is developing Healthcare Center Facility studies, or HCCF, as a means of improving 

both the access and environment of care for its veterans. These studies will assist in 

determining whether VA should lease space in lieu of seeking construction funding to 

address the current and future health care needs of veterans. In addition, VA 

continually looks to improve its internal processes and procedures to maximize 

resources for the delivery of high quality services. VA modified its project review 

process to allow more time for thorough cost and scope development as part of the 

2010 budget process and beyond. By following this new review process, VA will be 

able to make better informed and more strategic decisions. 

In summary, VA has made many advances in its capital asset programs. VA has 

incorporated a disciplined, tiered approach to strategically aligning assets to the 

needs of veterans based on sound business principles and cost effectiveness. VA 

continues to seek out innovations and best practices in capital asset management to 

improve the quality of services to veterans and responsible stewardship. 
Asset Management Plan FY 2008

75

APPENDIX A – CAPITAL DECISION CRITERIA

Departmental Alignment 

This criterion is comprised of priorities from the President’s Management Agenda 

and Secretary’s goals for improved management and performance across the 

Department (e.g., DoD collaboration, strategic realignment and intra-agency 

projects). 

Service Delivery Enhancements

This criterion addresses how the capital investment meets CARES market plan 

implementation. It focuses requirements on improving customer service, access to 

quality health care, and identifying opportunities for maximizing the volume of 

veterans served to effectively reduce gaps in projected workloads. 

Financial Priorities 

This criterion addresses the specific financial metrics, benefits and risks of the 

selected acquisition when compared to other explored alternatives (e.g., comparing 

the life-cycle costs and net present value of leasing versus building). 

Capital Portfolio Goals

This criterion addresses how the capital investment meets VA’s capital portfolio 

goals such as increasing intra- and interagency and community-based sharing and 

decreasing underutilized assets and operating costs while enhancing revenue 

opportunities. 

Safeguard Assets

This criterion addresses how well the capital investment results in a decrease in 

designated high-risk assets or increases the Department’s compliance with safety, 

security, accessibility, and/or accreditation laws and regulations including seismic, 

life safety, and homeland security projects. 

 

Customer Service

This criterion addresses the extent to which VA is providing quality customer 

service, which can be measured by evaluating the following criteria: Increase in New 

or Existing Customers, Customer Satisfaction, and Customer Access. 

Special Emphasis

This criterion gives preference to those capital investments that substantially support 

special emphasis programs and services including: spinal cord injury and disorders; 

blindness; traumatic brain injury; serious mental illness; post-traumatic stress 

disorder; prosthetics/amputation and polytrauma rehabilitation. 
Asset Management Plan FY 2008

APPENDIX B – CAPITAL INVESTMENT DECISION MODELSFigure 1: FY 2009 Non-CARES Capital Investment Decision Criteria – Acquisition Model 

Non-CARES

Project

with the

Highest Score

Goal Criteria 

* Safeguard Assets is one of the 7 approved portfoliogoals but is scored as a separate criteria in this model.

Safeguard Assets*

Saf

Secur

Capital Asset

Priorities/Portfolio

Goals

Decrea

Decr

Red

Increa

Maxim

Financial Priorities

Cost

A

Departmental

Alignm ent

S

VHA/

Incre

Increas

Incre

Customer Service

76
Asset Management Plan FY 2008

Figure 2: FY 2009 CARES Capital Investment Decision Criteria – Acquisition Model 

C A R E S P roject

w ith the

H ig h e st S co re

Goal C riteria 

R ealign m en t/M ission 

S ervice D elivery

E nhancem ents

Q uality - Infrastructure E 

A ccess to H ealth 

S afeguard A ssets

S ecu rity/Infrastructur

S eism ic

S pecial E m phasis

Yes

N o

C apital A sset

P riorities/P ortfolio

G oals

D ecre ase U nde rutilize 

D ecrease O pera tion 

Increase in S ha

R educe Energy U t

In cre ase R evenue O p

M a xim ize H ighest and 

D epartm ental

A lignm ent

D oD C o llabora 

S trategic A lignm 

F inancial P riorities

C o st-effective ness 

E xit S trategy

A lternatives A na

R isk A n alysi

R isk C ontrol P 

V B A /N C A O p port

S afety

S ize of G ap /D em 

V olum e of V eteran s S erved/S 

77 
Asset Management Plan FY 2008

78

CARES Project

with the

Highest Score

Goal Criteria Sub-criter

Realignment/Mission Change

Service Delivery

Enhancements

Quality - Infrastructure Enhancements

Access to Health Care

Safeguard Assets

Security/Infrastructure Security

Seismic

Special Emphasis

Yes

N o

Capital Asset

Priorities/Portfolio

Goals

Decrease Underutilized Capacity

Decrease Operational Costs

Increase in Sharing

Reduce Energy Utilization

Increase Revenue Opportunities

Maximize Highest and Best Use

Departmental

Alignment

DoD Collaboration

Strategic Alignment

Financial Priorities

Cost-effectiveness Analysis

Exit Strategy

Alternatives Analysis

Risk Analysis

Risk Control Plan

VBA/NCA Opportunities

Safety

Size of Gap/Demand

Volume of Veterans Served/Services Provided

Figure 3: FY 2009 VHA Decision Criteria – Minor Projects Model 
Asset Management Plan FY 2008

APPENDIX C – ACTUAL AND PLANNED DISPOSALS

FY 2005, FY 2006, and FY 2007 Disposal Report 

Program VISN Building Station Name Disposal 

Modality 

Disposal 

Complete 

Date 

FY 2005 

NCA 1 3010 Calverton, NY Demolition 06/27/2005 

NCA 1 1101 Long Island, NY Demolition 06/27/2005 

NCA 1 3301 Loudon Park, MD Demolition 06/27/2005 

NCA 1 3001 Loudon Park, MD Demolition 06/27/2005 

NCA 1 3301 City Point, VA Demolition 06/27/2005 

NCA 1 3001 Alexandria, VA Demolition 06/27/2005 

NCA 1 3011 Calverton, NY Demolition 06/27/2005 

NCA 1 3W01 Long Island, NY Demolition 06/27/2005 

NCA 1 HA-4 Ft. Harrison, VA Demolition 06/27/2005 

NCA 1 HA-6 Ft. Harrison, VA Demolition 06/27/2005 

VHA 1 13 VACHS, West Haven Demolition 06/01/2005 

VHA 1 TR1 White River Junction Demolition 12/01/2004 

VHA 1 20T White River Junction Demolition 12/01/2004 

VHA 1 T29 White River Junction Demolition 12/01/2004 

VHA 1 10 White River Junction Demolition 12/01/2004 

VHA 1 T44 White River Junction Demolition 12/01/2004 

VHA 5 10H Perry Point Demolition 12/06/2004 

VHA 8 T46 Tampa Demolition 06/01/2005 

VHA 8 T45 Tampa Demolition 06/01/2005 

VHA 8 29 Tampa Demolition 06/01/2005 

VHA 8 T38 Tampa Demolition 06/01/2005 

VHA 8 T48 Tampa Demolition 06/01/2005 

VHA 8 T47 Tampa Demolition 06/01/2005 

VHA 8 T44 Tampa Demolition 06/01/2005 

VHA 9 Land Murfreesboro (10 acres) Transfer - State 

Home 09/27/2005 

VHA 9 T2 Louisville GSA Disposal 11/20/2004 

VHA 12 158 Hines Outlease 07/01/2005 

VHA 15 24 Kansas City Demolition 09/15/2005 

VHA 15 T115 Marion, IL GSA Disposal 08/26/2005 

VHA 15 T112 Marion, IL GSA Disposal 08/26/2005 

VHA 16 T2 Jackson Demolition 03/01/2005 

VHA 17 1 Temple Demolition 10/01/2004 

VHA 17 22 Temple Demolition 10/01/2004 

VHA 17 18 Temple Demolition 10/01/2004 

VHA 17 17 Temple Demolition 10/01/2004 

VHA 20 T2267 Vancouver Demolition 02/28/2005 

VHA 20 T2291 Vancouver Demolition 01/05/2005 

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Asset Management Plan FY 2008

Program VISN Building Station Name Disposal 

Modality 

Disposal 

Complete 

Date 

VHA 20 T2290 Vancouver Demolition 01/05/2005 

VHA 21 T2 Fresno Demolition 09/05/2005 

VHA 21 T1 Fresno Demolition 08/10/2005 

VHA 21 C Reno Donated 07/15/2005 

FY 2006 

VHA 1 TR4 Providence Demolition 05/30/2006 

VHA 4 11 Pittsburgh, Aspinwall Demolition 05/30/2006 

VHA 4 20 Pittsburgh, Aspinwall Demolition 05/30/2006 

VHA 4 8 Pittsburgh, Aspinwall Demolition 05/30/2006 

VHA 4 15 Pittsburgh, Aspinwall Demolition 05/30/2006 

VHA 4 16 Pittsburgh, Aspinwall Demolition 05/30/2006 

VHA 4 23 Pittsburgh, Aspinwall Demolition 05/30/2006 

VHA 4 13 Pittsburgh, Aspinwall Demolition 05/30/2006 

VHA 4 10 Pittsburgh, Aspinwall Demolition 05/30/2006 

VHA 4 21 Pittsburgh, Aspinwall Demolition 05/30/2006 

VHA 5 T37 Fort Howard CBOC EU 09/29/2006 

VHA 5 ROT Fort Howard CBOC EU 09/29/2006 

VHA 5 8 Fort Howard CBOC EU 09/29/2006 

VHA 5 37 Fort Howard CBOC EU 09/29/2006 

VHA 5 61 Fort Howard CBOC EU 09/29/2006 

VHA 5 T239 Fort Howard CBOC EU 09/29/2006 

VHA 5 T240 Fort Howard CBOC EU 09/29/2006 

VHA 5 63 Fort Howard CBOC EU 09/29/2006 

VHA 5 51 Fort Howard CBOC EU 09/29/2006 

VHA 5 57A Fort Howard CBOC EU 09/29/2006 

VHA 5 57B Fort Howard CBOC EU 09/29/2006 

VHA 5 59 Fort Howard CBOC EU 09/29/2006 

VHA 5 3 Fort Howard CBOC EU 09/29/2006 

VHA 5 9 Fort Howard CBOC EU 09/29/2006 

VHA 5 6 Fort Howard CBOC EU 09/29/2006 

VHA 5 14 Fort Howard CBOC EU 09/29/2006 

VHA 5 12 Fort Howard CBOC EU 09/29/2006 

VHA 5 11 Fort Howard CBOC EU 09/29/2006 

VHA 5 10 Fort Howard CBOC EU 09/29/2006 

VHA 5 13 Fort Howard CBOC EU 09/29/2006 

VHA 5 5 Fort Howard CBOC EU 09/29/2006 

VHA 5 T248 Fort Howard CBOC EU 09/29/2006 

VHA 5 T63 Fort Howard CBOC EU 09/29/2006 

VHA 5 T237 Fort Howard CBOC EU 09/29/2006 

VHA 5 T246 Fort Howard CBOC EU 09/29/2006 

VHA 5 70 Fort Howard CBOC EU 09/29/2006 

VHA 5 156 Fort Howard CBOC EU 09/29/2006 

VHA 5 16 Fort Howard CBOC EU 09/29/2006 

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Asset Management Plan FY 2008

Program VISN Building Station Name Disposal 

Modality 

Disposal 

Complete 

Date 

VHA 5 44 Fort Howard CBOC EU 09/29/2006 

VHA 5 43 Fort Howard CBOC EU 09/29/2006 

VHA 5 228 Fort Howard CBOC EU 09/29/2006 

VHA 5 T247 Fort Howard CBOC EU 09/29/2006 

VHA 5 T244 Fort Howard CBOC EU 09/29/2006 

VHA 5 T241 Fort Howard CBOC EU 09/29/2006 

VHA 5 230 Fort Howard CBOC EU 09/29/2006 

VHA 5 226 Fort Howard CBOC EU 09/29/2006 

VHA 5 225A Fort Howard CBOC EU 09/29/2006 

VHA 5 239 Fort Howard CBOC EU 09/29/2006 

VHA 5 237 Fort Howard CBOC EU 09/29/2006 

VHA 5 68 Fort Howard CBOC EU 09/29/2006 

VHA 5 15 Fort Howard CBOC EU 09/29/2006 

VHA 5 174 Fort Howard CBOC EU 09/29/2006 

VHA 5 64 Fort Howard CBOC EU 09/29/2006 

VHA 5 225 Fort Howard CBOC EU 09/29/2006 

VHA 5 T245 Fort Howard CBOC EU 09/29/2006 

VHA 7 133 Tuscaloosa Demolition 10/18/2005 

VHA 10 8 Chillicothe EU 05/01/2006 

VHA 10 TE Cincinnati Demolition 01/01/2006 

VHA 11 28 Saginaw Demolition 08/05/2006 

VHA 11 27 Saginaw Demolition 08/05/2006 

VHA 12 7 Chicago, Jesse Brown Demolition 12/31/2005 

VHA 12 1 Chicago, Lakeside Sale 10/01/2005 

VHA 12 1A Chicago, Lakeside Sale 10/01/2005 

VHA 12 7 Chicago, Lakeside Sale 10/01/2005 

VHA 12 9 Chicago, Lakeside Sale 10/01/2005 

VHA 15 T114 Marion, IL GSA Disposal 05/20/2006 

VHA 15 T113 Marion, IL GSA Disposal 05/20/2006 

VHA 19 11A Salt Lake City EU 09/22/2006 

VHA 19 22 Salt Lake City EU 09/22/2006 

VHA 19 11 Salt Lake City EU 09/22/2006 

VHA 19 10 Salt Lake City EU 09/22/2006 

VHA 19 15 Salt Lake City EU 09/22/2006 

VHA 19 12 Salt Lake City EU 09/22/2006 

VHA 20 215 White City Demolition 09/12/2006 

VHA 20 216 White City Demolition 09/27/2006 

VHA 20 T2239 Vancouver Demolition 01/15/2006 

VHA 21 UST1 Fresno Demolition 01/11/2006 

FY 2007 

VHA 1 TR6 Providence Demolition 10/1/06 

VHA 4 B29 Pittsburgh, Aspinwall Demolition 10/1/06 

VHA 4 B28 Pittsburgh, Aspinwall Demolition 10/1/06 

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Asset Management Plan FY 2008

Program VISN Building Station Name Disposal 

Modality 

Disposal 

Complete 

Date 

VHA 4 36 Butler Demolition 4/30/07 

VHA 4 43 Butler Demolition 4/30/07 

VHA 6 13 Beckley Demolition 5/20/07 

VHA 8 St1 San Juan Demolition 2/20/07 

VHA 10 402 Dayton EU 4/19/07 

VHA 12 38 Milwaukee Demolition 11/30/06 

VHA 12 47 Milwaukee Demolition 11/30/06 

VHA 12 84B Milwaukee Demolition 11/30/06 

VHA 12 215 Hines Transfer to VBA 3/19/07 

VHA 15 T111 Marion, IL Transfer to GSA 11/6/06 

VHA 16 T49 Biloxi Demolition 3/16/07 

VHA 16 T48 Biloxi Demolition 3/16/07 

VHA 17 7 Temple Demolition 10/15/06 

VHA 18 T34 Amarillo Demolition 4/5/07 

VHA 18 52 Tucson Demolition 4/6/07 

VHA 20 T-3 Roseburg Demolition 12/15/06 

VHA 20 T-12 Roseburg Demolition 12/15/06 

VHA 20 T2115 Vancouver Demolition 2/28/07 

VHA 20 T2113 Vancouver Demolition 2/28/07 

VHA 20 T2107 Vancouver Demolition 2/28/07 

VHA 20 T2131 Vancouver Demolition 4/30/07 

VHA 20 T2116 Vancouver Demolition 4/30/07 

VHA 20 T2114 Vancouver Demolition 4/30/07 

VHA 20 T2279 Vancouver Demolition 5/1/07 

VHA 20 T2241 Vancouver Demolition 5/15/07 

VHA 20 T2265 Vancouver Demolition 5/15/07 

VHA 20 T2288 Vancouver Demolition 5/15/07 

VHA 20 T2125 Vancouver Demolition 6/1/07 

VHA 20 T2126 Vancouver Demolition 6/1/07 

VHA 20 T2289 Vancouver Demolition 6/1/07 

VHA 20 T2243 Vancouver Demolition 6/1/07 

VHA 20 T2286 Vancouver Demolition 6/1/07 

VHA 20 T2287 Vancouver Demolition 6/1/07 

VHA 20 COR Vancouver Demolition 6/1/07 

VHA 20 T2127 Vancouver Demolition 6/1/07 

VHA 20 T2263 Vancouver Demolition 6/1/07 

VHA 21 AB3 NCHCS, Martinez Demolition 3/15/07 

VHA 21 H Reno Demolition 4/13/07 

VHA 22 Land West Los Angeles Transfer to 

Home 

State 12/6/06 

VHA 22 267 West Los Angeles Demolition 8/30/07 

VHA 22 265 West Los Angeles Demolition 8/30/07 

VHA 22 266 West Los Angeles Demolition 8/30/07 

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Asset Management Plan FY 2008

Program VISN Building Station Name Disposal 

Modality 

Disposal 

Complete 

Date 

VHA 23 8 Des Moines Demolition 8/1/07 

VHA 23 16 Des Moines Demolition 8/1/07 

VHA 23 7 Des Moines Demolition 8/1/07 

83
Asset Management Plan FY 2008

 Summary of FY 2008 Planned Disposals 

VISN Building/Land Station Name Total 

GSF Disposal Modality 

2 2 Total Canandaigua 3,200 Demolition 

2 T17 Syracuse 1,040 Transfer - Capital 

Negotiated Sale 

Asset Fund - 

2 2 Total Albany 4,120 EUL 

4 4 Total Butler 14,594 Demolition 

4 2 Total Pittsburgh, Aspinwall 50,610 Demolition 

6 2 Total Durham 15,242 Demolition 

6 3 Total Hampton 81,842 Transfer - State Home 

7 9 Total Columbia, SC 43,412 EUL 

7 26 acres Columbia, SC EUL 

8 7 Total Tampa 23,104 Demolition 

10 42 Chillicothe 800 Demolition 

10 8 acres Chillicothe EUL 

10 18 Total Cincinnati, Fort Thomas 80,839 Transfer - Capital 

Negotiated Sale 

Asset Fund - 

10 11 acres Cincinnati, Fort Thomas Transfer - Capital 

Negotiated Sale 

Asset Fund - 

10 26 Total Cleveland, Brecksville 796,439 EUL 

10 101.1 acres Cleveland, Brecksville EUL 

10 10 Total Dayton 104,720 EUL 

10 12 acres Dayton Reuse by Other VA Entities 

11 6 acres Battle Creek EUL 

12 12 Milwaukee 24,526 EUL 

15 *38 Total Leavenworth 567,087 

15 2 acres St Louis, John Cochran EUL 

16 *15 Total Gulfport, MS 128,268 Demolition 

16 2 New Orleans 17,628 Demolition 

17 9 Total Temple 206,062 Transfer, Capital Asset Fund 

18 T17 Prescott 1,968 Demolition 

20 15 acres Roseburg Reuse by Other VA Entities 

20 217 White City 18,308 Deconstruction 

21 CTS Menlo Park 1,000 Demolition 

22 2 Total Sepulveda 137,022 EUL 

22 2 Sepulveda 131,313 Demolition 

Total 155 Bldgs; 166.1 acres 2,453,144 

 * 38 Leavenworth and 13 Gulfport Disposals occurred in prior years but not 

recorded then. 

84
Asset Management Plan FY 2008

Summary of FY 2009 Planned Disposals

VISN Building/Land Station Name Total GSF isposal Modality 

2 39 Canandaigua 3,027 Mothballing 

2 13 Canandaigua 1,282 Demolition 

2 3 Bath 5,500 Deconstruction 

2 4 Bath 3,200 Demolition 

2 3 Syracuse 2,687 Demolition 

4 3 Total Butler 12,214 Demolition 

7 11 Total CAVHCS, Tuskegee 58,326 Demolition 

11 145 Battle Creek 53,361 EUL 

11 6 acres Battle Creek EUL 

11 10 Total NIHCS, Marion 174,783 Mothballing 

11 3 Total NIHCS, Marion 59,118 EUL 

12 59 North Chicago 6,566 Reuse by Other VA 

Entities 

12 16 Total North Chicago 318,819 EUL 

12 51 Hines 58,000 EUL 

12 25 Tomah 7,171 EUL 

12 5 Total Milwaukee 312,701 EUL 

12 37 acres Milwaukee EUL 

16 14 Total Gulfport, MS 344,350 

Transfer - Capital Asset 

Fund - Public Benefit 

Conveyance 

16 2 Total Houston 9,070 EUL 

16 12.36 acres Houston EUL 

20 2 American Lake 70,000 Deconstruction 

20 5 Total White City 99,761 Deconstruction 

21 5 Total Menlo Park 114,500 Demolition 

22 2 Total Sepulveda 2,374 Demolition 

Total 87 Buildings; 55.36 acres 1,716,810 

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Asset Management Plan FY 2008

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Asset Management Plan FY 2008

APPENDIX D – ENHANCED-USE LEASE PROJECTS

Secretary’s Approved Priority Enhanced-Use Lease Projects 

Project Site Project Type Project Description Status 

Albany, NY Parking Lease to construct and maintain a 

parking structure. VA will receive 

building spaces for use by the VAMC on 

a no-cost basis. 

Appraisal and ESA 

completed. Waiting for 

VHA to determine fair 

consideration 

Albuquerque, 

NM 

Assisted Living Lease for assisted living for spinal cord 

injury patients; Affordable temporary 

lodging accommodations for out-oftown/state patients; Alzheimer's patients 

care center. 

Environmental site 

problems identifiedneed resolution 

Batavia, NY Transitional 

Housing 

Lease to develop a new transitional 

housing/community residential services 

program combined with substance 

abuse/mental health supportive services 

to serve the homeless veteran population 

in the Buffalo/Batavia region of Western 

New York. The proposed 18-bed unit 

would utilize Ward A, an 8,803 square 

foot vacant ward of Building 1 at Batavia 

VAMC. 

Lease negotiation on 

going. Developer 

seeking financing 

Battle Creek, 

MI 

Homeless Veteran 

Housing 

Lease to create 76 unit long-term 

transitional housing complex for 

homeless veterans 

Public Hearing held 

Battle Creek, 

MI 

Laundry Lease to reduce laundry costs. Developer holding 

internal discussion on 

how to proceed 

Brevard, FL Assisted Living Lease of donated land to establish an 

assisted living housing complex. 

Developer proceeding 

forward with new 

financing with HUD 

Butler, PA Hospital Demolition of old hospital and support 

buildings. Construction of new hospital, 

cancer center, and medical office 

buildings. 

VHA preparing 

revised concept paper 

Canandaigua, 

NY 

Mixed Use In conjunction with the Secretary's 

CARES decision for the capital plan, the 

potential enhanced use lease project 

could include construction of a new 

single-floor 120-bed nursing home, a new 

50-bed residential rehabilitation facility 

and a renovated outpatient building to 

meet the current and anticipated needs of 

Finger Lakes area veterans. 

Pending CARES 

master plan 

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Asset Management Plan FY 2008

Project Site Project Type Project Description Status 

Castle Point, 

NY 

Mixed Use In conjunction with the Secretary's 

CARES decision for the capital plan, the 

potential enhanced use lease project 

could include a continuing care 

retirement community with active senior 

living apartments, independent living, 

assisted living, Alzheimer's, skilled 

nursing units and residential housing. 

Pending CARES 

master plan 

Chillicothe, 

OH 

Mixed Use Multipurpose community facility Negotiation on going. 

NOIE released 

Cleveland, OH Domiciliary Lease to provide funding for services of 

120-bed domiciliary including space for 

VA program support and community 

organizations. 

Developer finalizing 

financing 

Dayton, OH Senior Housing To construct about 55 beds of single 

occupancy low-income housing 

Lease negotiation on 

going 

Dayton, OH Homeless 

Residential 

Establish 50 bed transitional housing 

with supportive services for substance 

abuse and mental health patients 

Lease negotiation on 

going 

Hines, IL School of 

(B #51) 

Nursing To locate a clinical teaching facility 

(School of Nursing) on its grounds 

Public hearing held 

Houston, TX Clinical/Ambulatory Space Lease to develop clinical and ambulatory 

space to meet needs of veterans 

Re-issue of RFP 

pending 

Lebanon, PA Golf Course Lease to reduce VA costs by providing 

golf therapy to patients. 

VHA Reviewing 

options on how to 

proceed 

Lincoln, NE Outpatient Clinic Lease all the existing buildings on site. 

VA to receive outpatient clinic to meet 

the existing and future workload 

projected. 

all 

Procurement on going 

for IDIQ SDVO real 

estate advisor 

Los Angeles, 

CA 

VHA/VBA 

Collocation 

VBA will exit leased space to collocate 

VHA space to better provide one-stop 

services to veterans. 

at On hold 

Marion, IL Hotel Lease to increase access to on site hotel 

for veterans and families. 

On Hold. VHA 

determining how to 

proceed 

Marion, IN Senior Housing Low income housing for senior and 

veterans 

IDIQ SDVO real estate 

advisor selected. 

Feasibility pending 

Memphis, TN Parking Lease to develop .69 acres of VA property 

for a shared parking garage facility 

Concept paper 

approved 

88
Asset Management Plan FY 2008

Project Site Project Type Project Description Status

Milwaukee, 

WI 

Mixed Use EUL for assisted living, retail, and 

entertainment development. EUL process 

on hold except the chapel. Lease to 

restore a historical chapel on site. 

On hold. Proceeding 

forward with EUL on 

chapel. PH completed 

Montrose, NY Assisted Living Reduce maintenance and repair costs to 

VA while providing funding for 

community-based clinics and senior and 

assisted living housing. 

Pending CARES 

master plan. Concept 

Paper in the 

concurrence process. 

Murfreesboro, 

TN 

Golf Course To expand the golf course from 9 to 18 

holes and provide other improvements. 

In this proposal, the VAMC would 

receive cost savings which would be 

applied toward the cost of fire 

suppression services. 

Development plan and 

ESA being prepared 

Nashville, TN Research Lease to provide research facilities to VA. Vanderbilt University 

redefining proposal 

Newington, 

CT 

Assisted Living Lease to develop assisted living facility. VHA re-evaluating 

project 

Palo Alto, CA Research Lease to construct a 250,000 GSF research 

center. This center would bring worldclass cutting edge translational research 

programs to VA. 

On hold while VHA 

reviewing options 

Perry Point, 

MD 

Mixed Use Working with the Secretary's CARES 

decision for the capital plan for 

renovation and new construction of 

services including nursing home care to 

remain on campus, study and implement 

thorough enhanced use leasing the 

market potential for the reuse for the 

remaining property including the 

waterfront areas. 

Pending CARES 

master plan 

PortlandVancouver, 

OR 

Mixed Use To develop 25-40 units of “green” or 

Homeless Sustainable Transitional 

housing on 2.17 acres of vacant VA 

property. 

On hold 

Riverside, CA Transitional 

Housing 

Provide at least 118 beds transitional 

housing for homeless veterans. 

Concept paper in 

concurrence process 

Sacramento, 

CA 

Assisted Living Lease to provide assisted living facility. Developer assessing 

options 

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Asset Management Plan FY 2008

Project Site Project Type Project Description Status

Saint Louis, Parking To build nine-level parking deck. VA Negotiation on going 

MO patients, visitors, employees get free 

parking for duration of lease. 

San Francisco, Research Lease to develop a new research facility On hold 

CA on the VAMC campus. 

Solano Water Supply/ Lease of land for irrigation and On hold 

County, CA Property development in exchange for future 

Development cemetery expansion. 

St. Albans, NY Mixed Use In conjunction with the Secretary's Development proposal 

CARES decision for the capital plan (BPO received. Review in 

#4), the potential enhanced use lease process 

project could include a continuing care 

retirement community with active senior 

living apartments, independent living, 

assisted living, Alzheimer's, skilled 

nursing units and hospice., small retail 

and restaurants may be added as mixed 

use support. 

Syracuse, NY Research Lease to develop a Biotechnology On hold 

Research Center. 

Tomah, WI Office Lease to pursue the highest and best use Added to the 

Building/Parking options for a vacant building. Secretary’s list 

Walla Walla, Mixed Use To perform, in conjunction with the EUL feasibility study 

WA Secretary's CARES decision of July 7, 

2006, a comprehensive reuse study to 

determine reuse potential in-line with 

VA's mission of the site and move 

on going 

forward with their implementation. 

Washington, Mixed Use To use 5.63 acres of land that are Concept paper in 

DC currently underutilized, by developing 

primary care building, ambulatory, 

research, and parking to result in 

decreased operational and fee medical 

costs and increased access to scarce 

concurrence process 

medical specialty services for veterans. 

White City, Community To provide training through tuition EUL feasibility study 

OR College vouchers for veterans and VA staff. on going 

National – Homeless Housing To outlease underutilized land buildings Added to the Secretary 

VHA for development of homeless housing List 

with preference and priority placement 

to veterans on 49 identified sites 

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Asset Management Plan FY 2008

Project Site Project Type Project Description Status

National – 

VHA/NCA 

Highest and Best 

Mixed-Use 

To outlease underutilized land buildings 

for development of highest and best 

mixed-use and homeless housing with 

preference and priority placement to 

veterans on 15 identified sites 

Added to the 

List 

Secretary 

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Asset Management Plan FY 2008

Awarded Enhanced-Use Lease Projects 

Location Project Type Lease Awarded 

1 Washington DC Child Development Center 4/20/1993

2 Houston TX Collocation 8/23/1993

3 West Palm Beach FL Public Safety Center 11/14/1994

4 West Haven* CT Child Development Center 12/1/1994

5 Big Spring* TX Parking 3/8/1996

6 Indianapolis IN Consolidation 9/23/1996

7 Bay Pines* FL Child Development Center 5/22/1997

8 St. Cloud MN Golf Course 7/28/1997

9 Atlanta GA Regional Office (RO) Collocation 12/18/1997

10 Portland OR Single Room Occupancy (SRO) 7/14/1998

11 North Little Rock AR Golf Course 10/1/1998

12 Mt. Home TN Medical School 12/17/1998

13 Sioux Falls SD Parking 4/1/1999

14 Danville IL Senior Housing 4/27/1999

15 Mt. Home TN Energy 12/2/1999

16 Indianapolis* IN Nursing Home 12/6/1999

17 Dallas TX Child Development Center 12/20/1999

18 Roseburg OR Single Room Occupancy (SRO) 8/1/2000

19 Salt Lake City UT Regional Office (RO) collocation 5/9/2001

20 Durham NC Mixed Use / Research 1/3/2002

21 North Chicago IL Medical School 4/10/2002

22 Chicago (Westside) IL Regional Office (RO) Collocation 4/22/2002

23 Chicago (Westside) IL Parking Structure 4/22/2002

24 North Chicago IL Energy Center Phase I 5/21/2002

25 Batavia* NY Single Room Occupancy (SRO) 5/24/2002

26 Chicago (Westside) IL Energy 8/12/2002

27 Tuscaloosa AL Hospice 9/19/2002

28 Barbers Point HI Single Room Occupancy (SRO) 3/17/2003

29 Milwaukee WI Regional Office (RO) Collocation 7/17/2003

30 Hines IL Single Room Occupancy (Building 14) 8/22/2003

31 Somerville NJ Mixed Use 9/5/2003

32 North Chicago IL Energy Center Phase II 10/29/2003

33 Mound City IL Interpretive/Visitor Center 11/6/2003

34 Butler PA Mental Health Facility 12/18/2003

35 Portland OR Crisis Triage Center 2/13/2004

36 Charleston/MUSC SC Affiliate Partnering 5/18/2004

37 Hines IL Single Room Occupancy SRO Phase II 7/30/2004

38 Minneapolis MN Credit Union 8/17/2004

39 Batavia NY Assisted Living 8/24/2004

40 Bedford MA Single Room Occupancy housing 9/10/2004

41 Dayton OH Child Care Development Center 12/30/04

42 Dayton OH Housing Initiative 12/30/2004

43 Chicago (Lakeside)** IL Realignment 1/18/2005

44 St. Cloud MN Homeless Housing 5/24/2005

45 Leavenworth KS Residential Health Care 8/5/2005

46 Minneapolis MN Single Room Occupancy (SRO) 9/1/2005

47 Salt Lake City II UT Mixed Use – Office/Retail/Restaurant 9/20/2006

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Asset Management Plan FY 2008

Location Project Type Lease Awarded 

48 Fort Howard MD Mixed Use – Senior Housing,/Clinic 9/28/2006

49 Butler PA Homeless Residential Program 4/17/2007

50 Dayton OH Homeless Housing 4/19/2007

51 Columbia SC Mixed Use/VARO/Realignment 10/19/2007

52 Sepulveda CA Supportive Homeless Housing (bldg #4) 12/21/2007

53 Sepulveda CA Supportive Homeless Housing (bldg #5) 12/21/2007

* Terminated Projects 

** Disposed Projects 

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94
Asset Management Plan FY 2008

Appendix E: CARES Major Construction Status 

Location Project Description Total Est. 

Cost 

Available 

thru 

FY 08 

FY 09 

Request Future 

Contract 

Award 

Date 

Est. 

Comp 

Date 

Project Complete 

Chicago IL Modernize Inpatient 

Space 

$98,500 $98,500 $0 $0 Sep 2004 Dec 2007 

Pensacola FL Pensacola Outpatient 

Clinic 

$55,056 $55,056 $0 $0 Mar 

2005 

May 2008 

North Chicago IL Surgical Suite / 

Emergency DoD 

Sharing 

$13,000 $13,000 $0 $0 Sep 2004 Jul 2006 

San Diego (1) CA Seismic Corrections - 

Bldg. 1 

$47,874 $47,874 $0 $0 Sep 2005 Aug 2008 

Tampa (1/2) FL SCI Expansion $11,407 $11,407 $0 $0 May 

2006 

Apr 2008 

Under Construction 

Anchorage AK Outpatient Clinic/ 

Regional Office 

$75,270 $75,270 $0 $0 Jun 2007 Jul 2009 

Atlanta (1) GA Modernize Patient 

Wards 

$20,534 $20,534 $0 $0 Jun 2008 Dec 2010 

Cleveland OH Brecksville 

Consolidation 

$102,300 $102,300 $0 $0 Sep 2007 Dec 2010 

Columbus OH New Outpatient 

Clinic 

$94,800 $94,800 $0 $0 Jul 2005 Jul 2008 

Des Moines IA Des Moines - 

Extended Care 

$25,550 $25,550 $0 $0 Feb 2007 Jul 2009 

Building 

Durham NC Renovate Patient 

Wards 

$9,100 $9,100 $0 $0 Sep 2007 May 2009 

Gainesville (3) FL Correct Patient 

Privacy Deficiencies 

$136,700 $136,700 $0 $0 Jun 2008 Jun 2011 

Indianapolis IN 7th & 8th Floor Ward 

Modernization Add 

$27,400 $27,400 $0 $0 Jun 2005 Mar 2010 

Las Vegas NV New Medical Facility $600,400 $600,400 $0 $0 Sep 2006 Dec 2010 

Menlo Park CA Seismic Corrections - 

(Building 324) 

$32,934 $32,934 $0 $0 Sep 2006 Jan 2009 

Minneapolis MN SCI & SCD Center $20,500 $20,500 $0 $0 Sep 2006 Feb 2009 

Pittsburgh (3) PA Consolidation 

Campuses 

of $295,600 $233,200 $0 $62,400 Sep 2005 Jul 2011 

San Antonio (4) TX Ward Upgrades And 

Expansion 

$19,100 $19,100 $0 $0 Jun 2007 Sep 2010 

San Francisco (1) CA Seismic Corrections, 

Bldg. 203 

$41,168 $41,168 $0 $0 Jan 2006 Nov 2008 

Syracuse (5) NY Spinal Cord Injury 

Center 

$77,269 $77,269 $0 $0 Jun 2008 Nov 2010 

Tampa FL Upgrade Essential 

Electrical Dist. Sys. 

$49,000 $49,000 $0 $0 Sep 2007 Jun 2010 

Tucson (6) AZ Mental Health Clinic $13,300 $13,300 $0 $0 Sep 2006 Jul 2008 

95
Asset Management Plan FY 2008

Location Project Description Total Est. 

Cost 

Available 

thru 

FY 08 

FY 09 

Request Future 

Contract 

Award 

Date 

Est. 

Comp 

Date 

In Design 

American Lake WA Seismic Corrections- $38,220 $38,220 $0 $0 Jul 2008 Feb 2010 

NHCU & Dietetics 

Lee County (7) FL Outpatient Clinic $131,800 $20,388 $111,412 $0 Mar 

2009 

Sep 2011 

Biloxi (8) MS Restoration Of 

Hospital/Consolidati

on of Gulfport 

$310,000 $310,000 $0 $0 Sep 2008 Nov 2011 

Columbia MO Columbia, MO - $25,830 $25,830 $0 Jan 2009 Feb 2011 

Operating Suite 

Replacement 

Fayetteville (3) AR Clinical Addition $93,000 $93,000 $0 $0 Feb 2009 Sep 2011 

Long Beach CA Seismic 

Corrections/Clinical,

B-7 & 126 

$107,845 $107,845 $0 $0 Jul 2008 Nov 2010 

Milwaukee WI Spinal Cord Injury 

Center 

$32,500 $32,500 $0 $0 Jul 2008 May 2010 

Orlando (3) FL New Medical Facility $656,800 $74,100 $120,000 $462,700 Apr 

2009 

Aug 2012 

Palo Alto CA Seismic Corrections, 

Bldg. 2 

$54,000 $54,000 $0 $0 Sep 2008 Jan 2014 

San Juan (9) PR Seismic Corrections 

Bldg. 1 

$225,900 $69,880 $64,400 $91,620 Mar 

2009 

Mar 2014 

Site Acquisition

Denver (10) CO Replacement Medical 

Center Facility 

$769,200 $168,300 $20,000 $580,900 TBD TBD 

Planning 

Bay Pines FL Inpatient/Outpatient 

Improvements 

$174,300 $0 $17,430 $156,870 Oct 2010 Dec 2014 

Los Angeles CA Seismic Corrections - 

Bldgs. 500 & 501 

$111,800 $7,936 $0 $103,864 TBD TBD 

Palo Alto CA Centers for 

Ambulatory Care 

and Polytrauma 

Rehabilitation 

$450,300 $0 $38,290 $412,010 Apr 

2011 

Feb 2015 

Saint Louis MO Medical Facility 

Improvements & 

Cemetery Expansion 

$134,500 $7,000 $5,000 $122,500 TBD TBD 

San Antonio (4) TX Polytrauma Center, 

& Renovation of Exist 

$66,000 $66,000 $0 $0 Jan 2010 Jan 2012 

Bldg. 1 

Tampa FL Polytrauma 

Expansion 

$223,800 $0 $21,120 $202,680 Dec 

2009 

Jan 2015 

Temple (11) TX MRI & Supporting 

Facility 

$10,552 $10,552 $0 $0 TBD TBD 

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Asset Management Plan FY 2008

Location Project Description Total Est. 

Cost 

Available 

thru 

FY 08 

FY 09 

Request Future 

Contract 

Award 

Date 

Est. 

Comp 

Date 

Hurricane Katrina Projects 

Gulfport MS Environmental $35,919 $35,919 $0 $0 Feb 2007 Sep 2010 

Cleanup 

New Orleans (12) LA Restoration/Replace $625,000 $625,000 $0 $0 TBD TBD 

ment Medical Facility

 Total $6,144,028 $3,550,832 $397,652 $2,195,544 

(1) FY 2005 Actual amounts reflect the FY 2005 Rescission. 

(2) Tampa, FL received $4,364 million in reprogramming action in FY 2006. 

(3) Additional funding provided in the FY 2008 Conference Report P.L. 110-161 

(4) San Antonio, TX, reprogrammed $66 million in FY 2008 budget to build a new Polytrauma 

Center as required by P.L. 110-161. 

(5) Syracuse, NY, FY 2008 total estimated cost $77,269. A rescission was not reflected in the 

Congressional Budget. 

(6) Tucson, AZ, received $1.2 million in a reprogramming action in FY 2006. 

(7) Lee County, FL, received $4 million in a reprogramming action in FY 2006. 

(8) Biloxi, MS, received $17.5 million in regular appropriations and another $292.5 million in 

emergency supplemental appropriation from P.L. 109-148. 

(9) San Juan, PR provided $4 million to fund a FY 1999 Major Construction project. 

(10) Denver, CO, received $25 million in a reprogramming action in FY 2006. 

(11) Temple, TX received $55.552 million in FY 2005. A recent CARES decision about the future 

fo the Waco, TX facility has diminished the need to major construction activities in Temple. A 

reprogramming of $45 million was approved in FY 2008. The remaining $10,552 million will be 

used to construct and support facilities at Temple. 

(12) New Orleans, LA was funded through two emergency supplemental appropriations: $75 

million form P.L. 109-148 and another $550 million from P.L. 109-234. 

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Asset Management Plan FY 2008

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Asset Management Plan FY 2008

APPENDIX F - REFERENCES

VA Web Sites 

 VA Capital Investment Process http://vaww.va.gov/oaem or 

http://www.va.gov/oaem/

 VA Information Resources Management http://www.va.gov/oirm

 VA Construction & Facilities Management http://www.va.gov/facmgt/ 

VA Documents 

 VA’s 5-Year Capital Plan http://vaww.va.gov/oaem or call Office of Asset 

Enterprise Management at (202) 461-6615 

 VA Capital Investment Methodology Guide http://vaww.va.gov/oaem or 

call Office of Asset Enterprise Management at (202) 461-6615 

 Department of Veterans Affairs Strategic Plan FY 2006-2011 

http://www1.va.gov/op3/docs/VAComplete.pdf or call Strategic 

Planning Service at (202) 461-5806 

 Department of Veterans Affairs FY 2009 Congressional Budget 

Submission, Volume 4, http://www.va.gov/budget/products.htm

 Department of Veterans Affairs FY 2007 Performance and Accountability 

Report, http://www.va.gov/budget/report/2007/index.htm

 The source for demolition cost factors, developed by VA’s Office of 

Construction and Facilities Management: 

http://www.va.gov/facmgt/cost-estimating/vamcpricing.asp

Information Technology 

 VA IT - Investment Management Guide http://www.va.gov/oit/

NCA 

 National Cemetery Strategic Plan, Planning Division (402A2) 

Call (202) 273-5167 

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100

VBA 

 Reports and Research for VBA 

Intranet -- http://vbaw.vba.va.gov/bl/20/cfo/surv/srsindex.html or 

Internet – http://www.vba.va.gov/reports/ 

VHA 

 CARES Portal VISN Support Service Center (VSSC) 

http://vssc.med.va.gov/

 CARES Studies Website 

http://www.va.gov/cares/default.asp
Department of Veterans Affairs

Office of Asset Enterprise Management

810 Vermont Avenue, NW

Washington, DC 20420