Legislative Branch Update: Current Audits and Legislation of Interest Ivan Graff, P.E., CFM, PMP, CCE, LEED AP

Focus on Current Engagements with the GAO High Risk List 2013: Managing Federal Real Property Engagement : Real Property Cost Savings Engagement : Structures Engagement : Maintenance and Repair May 20, 2013Legislative Branch Update2

High Risk List 2013: Managing Real Property May 20, 2013Legislative Branch Update3  Issues – 1. Holding excess and underutilized property 2. Relying on costly leasing practices 3. Securing real property 4. Lacking action on challenges that hamper reform, including:  Collecting accurate and useful data  Legal requirements that discourage disposition  Balancing competing stakeholder interests Our 10 Year Anniversary (2003 – 2013)

Real Property Savings May 20, 2013Legislative Branch Update4  Background:  Presidential memorandum (June 10, 2010)  Real Property Cost Savings and Innovation Plan (July 2010)  GAO’s Big Questions  What cost savings have agencies achieved?  How did agencies calculate savings?  What has happened so far –  Entrance conference (01/2013)  Follow up meeting (04/2013)  Additional questions (05/2013) GAO $580M Cost Avoidance

Structures May 20, 2013Legislative Branch Update5  Background:  FRPP definition of structure differs from that used by accountants  GAO’s Big Questions  What do agencies have and who uses them?  How do agencies use cost, value, and condition information?  Do agencies manage buildings and structures the same way?  What has happened so far –  Entrance conference (02/2013)  GAO site visits scheduled (03/2013) GAO K Records $43B Repl. Value

Facility Maintenance and Repair May 20, 2013Legislative Branch Update6  Background:  GAO last examined this maintenance and repair  Nagging issues: maintaining inactive assets, disposing of assets in good condition, decrepit assets in with perfect CI  GAO’s Big Questions  Are agencies addressing deferred maintenance?  Do agencies follow industry practices when addressing deferred maintenance?  Do agencies consider energy efficiency when prioritizing maintenance projects?  What has happened so far –  Entrance conference (03/2013)  ECM candidates to GAO (04/2013)  Additional questions (05/2013) GAO $1.4B Maintenance $4.3B Deferred

Focus on 113 th Congress: Legislation Introduced in the House and Senate Manhattan Project National Historical Park Real Property Disposition Energy Efficiency Fleet May 20, 2013Legislative Branch Update7

Manhattan Project National Historical Park Act May 20, 2013Legislative Branch Update8 H.R Reported to House on 04/24/2013 Read it here: S. 507 Reported to Senate on 05/16/2013 Read it here: Who supports this?

Manhattan Project National Historical Park Act May 20, 2013Legislative Update9  ENERGY would provide:  Safe access to certain Manhattan Project related buildings in  Oak Ridge, TN  Los Alamos, NM  Hanford, WA  Funds to operate and maintain these buildings as visitor attractions  INTERIOR would provide:  All other facilities (new or obtained) and interpretative services to comprise the visitor experience  ENERGY and INTERIOR have:  One year to establish the National Park  One year to state roles and responsibilities  Three years to publish a management plan 13 Buildings + LANL Historic District

Manhattan Project National Historical Park Act May 20, 2013Legislative Update10 DifferenceSenateHouse May INTERIOR purchase property? Yes, from willing sellers only No Who pays for historic preservation on ENERGY buildings? INTERIORENERGY Who leads on the management plan? INTERIOR (ENERGY “consults”) SHARED (INTERIOR and relevant ENERGY site offices; ENERGY HQ “concurs”) “No Buffer Zone” clause?NoYes

Real Property Disposition Bills May 20, 2013Legislative Branch Update11 Civilian Property Realignment Act Introduced in the House on 02/14/2013 Read it here: Excess Federal Building and Property Disposal Act of 2013 Reported to House on 03/20/2013 Read it here:

Civilian Property Realignment Act May 20, 2013Legislative Branch Update12 Creates a commission to find cost savings OMB, the President, and Congress would have to approve recommendations Sale proceeds would fund future recommended actions Certain regulations would not apply to recommendations DOE would no longer have authority to write leases

Excess Federal Building and Property Disposal Act May 20, 2013Legislative Branch Update13 Creates a pilot disposal program for assets with high fair market value Allows agencies to retain sale proceeds for disposals or maintenance Codifies the Federal Real Property Profile Streamlines the review of excess property for the homeless Agencies would publish plans for their excess property

CPRA and EFBPDA May 20, 2013Legislative Branch Update14  Who gets the net proceeds? CPRAEFBPDA House“Asset Proceeds and Space Management Fund” gets 100% of asset proceeds  Pilot: 98% Treasury, 2% homeless grants  Rest: 100% Agency Senate--

Energy Efficiency Bills May 20, 2013Legislative Branch Update15  GSA to perform energy audits  Execute when 10 year pay back or better  Sets energy standards for leases  Reduce data centers, FY 2018 & 2023  Retain USEC savings  Federal loans  Metering plans  Commissioning Promoting Efficiency and Savings in Government Act Introduced in Senate Read it here: Federal Cost Reduction Act of 2013 Introduced in House Read it here:

Fleet Bills May 20, 2013Legislative Branch Update16  20% reduction of FY 2010 totals of:  Vehicle number  Vehicle purchase or lease costs  Applies FY  20% reduction of FY 2010 totals of:  Vehicle number  Vehicle purchase or lease costs  Applies FY To reduce the number of nonessential vehicles purchased... Introduced in Senate Read it here: Business and Government Operations Improvement Act (Section 204) Introduced in House Read it here:

May 20, 2013Legislative Branch Update17 Questions? Ivan Graff ( 202)

DAILY WRAP UP Property Management Virtual Workshop 2013 May 20 – 23, 2013