Asset Management Stan Kaczmarczyk April 16, 2007 Draft 1.0 4/4/07 v1.1 (NOTE: Oct 29, 2008: original slides #8, 11, 20, 22, 23 and 24 deleted to condense for FedITAM website)

Office of Governmentwide Policy In December 1995, GSA created the Office of Governmentwide Policy (OGP) to consolidate its policy functions into a single organization. U.S. General Services Administration Public Buildings Service Federal Acquisition Office of Governmentwide Policy

Office of Governmentwide Policy OGP's policymaking authority covers the areas of: Real Property Personal Property Travel and Transportation Information Technology Strategy Regulatory Information Federal Advisory Committees

Office of Governmentwide Policy OGP’s sphere of influence extends to government activities related to acquiring, using, disposing, and tracking Federal property and services including: The Federal Government's real property inventory – 3.8 billion square feet of space with an estimated replacement value of almost $1.4 trillion. Over 600,000 vehicles and 1,460 aircraft owned or leased by Federal agencies. $12.3 billion in annual travel expenditures. The disposal of over $21 billion of Federal excess personal property each year.

Real Property PMA Initiative Over the past decade, the Federal government has continued to face significant challenges managing its real property portfolio: Lack of accountability within the Federal Government Lack of useful information within Federal agencies Abundance of underused or unneeded Federal property Excessive cost to Federal Government Lack of necessary tools and incentives for agency disposal of underused properties

Real Property PMA Initiative The President signed EO 13327, Federal Real Property Asset Management in February 2004 Created the Federal Real Property Council (FRPC) FRPC develops performance measures and guidance for agency’s asset management plans Established Senior Real Property Officer (SRPO) role SRPOs create agency asset management planning process Mandated the creation of a centralized real property database GSA is responsible for developing and managing the database of assets And…‘Real Property’ was added to the President’s Management Agenda

Real Property PMA Initiative FRPC Goals: Increase agency accountability for asset management Compare and benchmark assets Improve decision-making with accurate and reliable data Dispose a minimum of $15 billion in unneeded real

Software Asset Management The purpose of the Software Asset Management (SAM) project is to provide guidance and tools for agencies to collect and maintain information to manage the full life-cycle of software as an important asset. The basic premise of SAM is to: Know what you buy Buy only what you need Manage the life cycle of COTS assets Desired outcome of a successful SAM program: Reduce the total cost of ownership of software assets Better software prices Reduce maintenance and initial license costs Decrease fees through competitive replacement Better software asset accountability Aggregation of business processes Accurate vendor payments Faster disaster recovery Improve version and patch management thus security Software license compliance The desired outcome of a successful SAM program is to: a) Total Cost of Ownership Leveraged buying such as through the SmartBUY Program can help lower the cost of the software licenses as well as on maintenance. Aggregating requirements can put the Government in a better negotiating position. Better accountability for software, (ie what you have and where) can lead to better management based on usage and currency. You can retire older versions that you may be paying maintenance on and you can redistribute Reengineering the processes for acquiring software can lead to great savings through more efficient and effective management of the process to acquire and manage these assets. b) Payments to vendors are more accurate if delivery of correct products and services can be verified in a timely manner. c) Faster disaster recovery – A SAM program tracks inventory, deployment and usage of software, resulting in quicker and easier recreation of the software environment in the event of a disaster. d) Improve version and patch management thus security by providing visibility of software installed and use it to patch management. e) Compliance with software licensing terms can be verified if a robust asset management program is in place.

Software Asset Management Initiatives: GSA and an Inter-Agency Advisory Committee are developing a software asset model and architectural framework for managing Commercial Off-The-Shelf software. GSA has conducted agency interviews and surveys of the marketplace Data calls indicate that agencies do not have good enterprise-wide software assets management Industry currently does not provide complete tools needed provide software life-cycle management Through a GSA Pilot, a proof of concept of an integrated organization-wide SAM program is being developed. OGP plans to draft policies and processes based on interviews with agency SAM representatives, results of the Pilot, and the Inter-Agency Committee

Software Asset Management Challenges to Establishing Effective Software Asset Management: Reason it is not being already done – it is very hard Commercial sector does not do it well either Data standards for feeder systems do not exist Overall SAM Enterprise Frameworks do not exist Implementing policy that integrates multiple key business processes Dealing with an intangible asset that has many different terms of use depending on the vendor, dealing with each vendor requires a unique approach Try not to create a process that requires excessive overhead for agencies Challenges It’s hard- Requires change management and buy-in from all impacted stakeholders Software vendors are very savvy. They know how to game the system and are experts at it Requires improvements in the current way we do things (business processes) Commercial sector doesn’t do it well- current technology only addresses 20% of the problem. We have met with industry leaders in SAM and everyone is facing the same obstacles Data standards for feeder systems do not exist - feeder systems accustomed to working on their individual priorities. Data elements listed in Pegasys are not always standard. For example, the ACT number used is unique to GSA In spite of these and many other challenges, we push on..!

Personal Property The Federal Government owns personal property assets valued over $1.2 Trillion. Policies and Best Practices originating from GSA/OGP govern how these assets are managed. This figure is based on the latest Financial Report of the United States. It reflects the replacement cost of the assets currently held by the government. OGP works collaboratively with our agency partners and other stakeholders to identify or develop best practices to improve the government’s management of its assets. Whether through the issuance of formal Regulations or Bulletins, or simply through informal guidance, OGP is a strong advocate for effective Governmentwide asset management. An industry expert estimates that strong asset management can save the organization 10% of the value of its inventory annually. This equates to a saving of over $100B. Although many effective practices are already in place (such as inventory systems, use of current technology, etc), there is still much room for improvement across the government.

Personal Property Initiatives Governmentwide Performance Measures and Desired Outcomes Evaluation and Compliance Continuing collaboration with federal and non-federal stakeholders Identifying Property Management “Best Practices” Exchange/Sale We are currently working with Idaho National Laboratory to develop an automated system to report property management performance measures , including the volume of donations, sales, disposals, and a record of accountable property. We have recently developed a property management evaluation and compliance review tool which is being tested in GSA and will be used to evaluate the largest Executive agencies. We work with our various stakeholders through our Interagency Committee on Property Management (ICPM) and Property Management Executive Council (PMEC) activities but also by participating in the National Property Management Association at the local and national levels, the National Association of State Agencies for Surplus Property, the Users and Screeners Association, and until its demise the Joint Financial Management Improvement Program and its revision of the Inventory, Supplies and Materials System Requirements and Property Management Systems Requirements. We have also included meetings with ASTM International and the Uniform Code Council, Inc. on the use of voluntary consensus standards, along with the use of RFID technology.

Property Management Regulations Fleet FMR 102-24 Aircraft FMR 102-33 General FMR 102-35 (Published 3/7/07) Utilization FMR 102-36 Donation FMR 102-37 Sale FMR 102-38 Exchange/sale FMR 102-39 Hazardous FPMR 101-42 (FMR 102-40 Pending) Abandoned/forfeited FMR 102-41 Foreign Gifts FMR 102-42 Supply/Procurement Subchapter E (FPMR) (FMR 102-21to 28 Pending) This provides a view of the current property management regulations and those being developed. There are a number of regulations that impact personal property management and we are reviewing and revising each regulation every five years, as appropriate, to ensure they are current and reflect the current state of the art regarding the use and disposition of the Government's assets.

Fleet Management Federal Automotive Statistical Tool (FAST) Automated reporting to support: GSA’s Federal Fleet Report Energy’s alternative fuel reports OMB’s annual A-11 budget request (Motor Vehicles) Federal Aircraft Interactive Reporting System GSA’s Status of Federal Aircraft Programs General comments on MT’s Federal Fleet Policy Federal fleet statistics: (Source: FY 2006 Federal Fleet Report) Total Federal fleet is 630,740 vehicles (non-tactical only) Total Federal fleet operating costs is $3.6 billion Total Federal fleet miles operated is over 5 billion miles Total Federal fleet fuel consumption is 348 million gallons Federal aircraft statistics: (Source: FY 2006 FAIRS report) 11 executive agencies own 1456 aircraft Federal agencies spent $936,292,964 to operate both owned and leased aircraft. Agencies supported a total of 435,834 flight and flight-related hours. What do we do? Oversee the operation and management of the Federal motor vehicle and aircraft fleets, providing liaison between agencies and government oversight offices, and the motor vehicle industry as a whole. Specific areas of importance include: Promulgate Government-wide regulations and policy Provide input to Legislation and Executive Orders Administer the Federal License Plate Program Conduct the Fleet Review Initiative Manage the Federal Automotive Statistical Tool (FAST) and produce the annual Federal Fleet Report Manage the Federal Aviation Interactive Reporting System (FAIRS) and produce annual Aircraft Report Coordinate the Vehicle Registration Project Establish Capital Asset Planning guidance for motor vehicles and aircraft Coordinate activities of the Federal Fleet Policy Council (FEDFLEET) and the Interagency Committee for Aviation Policy (ICAP) Conduct annual national Fleet Workshops and quarterly meetings Publish the quarterly Vehicle Views newsletter Coordinate Federal fleet activities with local governments and the private sector, as necessary Fleet information clearinghouse FAST/FAIRS Comments FAST and FAIRS are on-line internet reporting tools developed to consolidate many different reporting requirements concerning the Federal fleet Jointly sponsored by GSA, the Department of Energy, and the Energy Information Administration Automated GSA’s Federal Fleet report that previously was a manual process taking more than a year to publish (now takes 2-3 weeks) Consolidated OMB’s A-11, Exhibit 33 budget request for motor vehicles in 2004. This is the only part of A-11 that is automated. Agency budget and fleet offices work together to provide A-11 budget accomplishments and projections GSA/MT reviews all agency A-11 submissions and provides overview comments to OMB Copies of the Federal Fleet Report can be found on the GSA website at: www.gsa.gov/policy/motor vehicle management Copies of the Federal Aircraft Report can be found on the GSA website at: www.gsa.gov/policy/aircraft

Fleet Management Vehicle Allocation Methodology Agency-developed matrix to show when vehicles are needed based upon agency mission Addresses mission, passenger and cargo capacity, operating location, fuel economy, and alternative fuel mandates Right sizes fleet – Eliminates excess and under-utilized vehicles Smallest vehicles to perform mission Each agency develops their own Vehicle Allocation Methodology based upon the mission that the vehicle will perform. Question that should be asked are: What mission does the vehicle support? Will the vehicle carry passengers? How many? Will the vehicle carry cargo? Where will the vehicle be operated? City or rural? Rough terrain? Are there fuel economy and alternative fuel considerations? Are there special needs (occupant size, physical handicaps, etc.)? Always looking for the right vehicle for the “job” with emphasis on using the smallest vehicle possible to perform the agency’s mission MT/Fleet has published Federal Property Management Bulletin B-9, Documented Structured Vehicle Allocation Methodology for Agency Fleet, dated August 26, 2005

Fleet Management Fleet Management Information Systems Most agencies do not use appropriate software systems to manage fleets. New regulatory requirement that all agencies have a Fleet MIS to manage the complete motor vehicle lifecycle, including: inventory, acquisition, utilization, maintenance, and disposal. Recent agency survey results of 26 agencies indicated the following: Agencies that have full Fleet MIS = 6 Agencies that have partial Fleet MIS = 8 Agencies that have only property accountability systems = 4 Agencies that have no systems = 4 Non-responding agencies = 4 Without a Fleet MIS, agencies cannot track utilization, costs, or assets use and cannot accurately predict future costs and reply to budget requests Current revision to Federal Management Regulation requires all agencies to have a dedicated Fleet Management Information System that manage the full life cycle of vehicles

Fleet Management Fleet Capital Asset Planning Fleet Capital Asset Planning Guide. Assist agencies in developing fleet portfolios to achieve mission goals at the lowest risk and cost. Assist agencies in justifying current fleets and planning for fleet replacement through life-cycle cost analysis. Provide a base-line inventory and life-cycle costs in Fiscal Year 2008. OMB Circular A-11, requires Exhibit 300s for all capital assets, including motor vehicles and aircraft. Working with OMB, the Interagency Committee for Aviation Policy (ICAP) and the Federal Fleet Council (FedFleet) OGP will publish a Fleet Capital Asset Guide to help agencies complete the Exhibit 300 for motor vehicles and aircraft beginning in FY 2008. OGP will assist its fleet customers in preparing baseline inventory and life cycle costs.

Federal Asset Sales Personal Property Sales Centers Real Property Disposal Agencies GSA USDA TREASURY VA JUSTICE HUD OTHERS – FY 2007 OTHER AGENCIES Currently 4 (four) Personal Property Sales Centers – GSA, USDA, Treasury, & Justice; we are currently considering adding new sales centers for specialized commodities such as vehicles, aircraft, and localized sales. Real Property Disposal Agencies – All agencies with Real Property Disposal Authority; the 4 (four) listed on the slide are also real property portal sponsors (these four agencies jointly fund the real property of the GovSales portal). GSA (Commercial Buildings and Land); HUD and VA (Houses); and USDA (Farms).