Federal Asset Sales, Power Through Partnership General Services Administration Federal Asset Sales April 29, 2004 Utilization and Donation Study Briefing

1 GSA Federal Asset Sales Mitra Nejad – Program Manager Victor Arnold-Bik -- Personal Property Asset Class Manager Gary Thompson -- Utilization and Donation Team Lead David Bundren – BearingPoint Consulting Kerri Davis – BearingPoint Consulting Robert Schoborg – BearingPoint Consulting Deidre Huber & Dave Robbins -- Federal Supply Service, GSA Bob Holcombe -- Office of Governmentwide Policy, GSA Members of the Interagency Committee on Property Management Community U&D Participants & Drivers

2 GSA Federal Asset Sales Presentation Outline I.U&D Study Objectives II.Key Findings and Observations III.Incremental Recommendations IV.Breakthrough Recommendations V.Next Steps

3 GSA Federal Asset Sales Kick Off Leverage structured, phase based and collaborative business process reengineering methodology and approach Approach Project Strategy and Planning “As-Is” Review Summarize Findings and Enhancements Identify U&D Life-Cycle Best Practices Develop Donation “As-Is” Model Develop Utilization “As-Is” Model Final Report and Business Case including Cost Benefit Analysis Formulate Final Report with Summary Business Case for Enhancements including Cost Benefit Analysis Enhancement #2 Enhancement #1 Enhancement #3 Best Practice Research 3 weeks 12 weeks 6 weeks 5 weeks 7/11/0310/03/03 11/14/03 12/19/03 Preliminary Focus Areas Identify Preliminary Areas of Review Document Recommended Enhancements Summarize findings

4 GSA Federal Asset Sales U&D Study Objectives Increasing asset reutilization Avoiding procurement Optimizing Utilization & Donation benefits Increasing asset disposal efficiency Offer recommendations and enhancements to the U&D program to maximize the value of Federal personal property by:

5 GSA Federal Asset Sales Key Findings and Observations A low percentage of assets are utilized or donated Incomplete management, organizational and resource limitations, and political influence all inhibit U&D. Data constraints limit analysis and hinder decision making. The U&D program was created to provide both economic and social benefit to government and society. Neither social nor economic benefits are being optimized currently.

6 GSA Federal Asset Sales Other $7.7 B/yr Intra-Agency Reutilization Utilization $642 M/yr Acquisitio n $84 B/yr Use/ Managem ent Disposal Special Authorities Exchange Sale Sales Donation $451 M/ yr A&D Information Available Information Unavailable Utilization for Non-Fed >$140 M/yr SOURCE NOTES: *Acquisition: Federal Procurement Data System-FY’02 *Other Numbers: Federal Disposal System, Average-FY’01-FY’03 *Utilization for Non-Fed: FAS Team Estimate, Average-FY’01-‘03 *All dollars represents Original Acquisition Cost Excess 8.8bB/yr Personal Property Asset Flows Personal Property Asset Flows

7 GSA Federal Asset Sales Addresses U&D, Asset Management, and Data Constraints Full asset management would generate significant benefits Agency support is critical to sustain momentum GSA and OMB leadership must be committed The study proposes two sets of recommendations: Incremental or programmatic enhancements (short-term); and Breakthrough or asset management life cycle enhancements (long-term) U&D Study Recommendations

8 GSA Federal Asset Sales Incremental Recommendations Phase 1: Immediate Recommendations (Kick off 0-3 months) Relatively easy to implement or already underway 1. Create an “ask the expert” customer service interface. 2. Provide a means for agencies to submit “Want Lists” to GSAXcess TM. 3. Leverage Know.Net or similar system to build a training curriculum. 4. Implement a countrywide U&D awareness campaign.

9 GSA Federal Asset Sales Incremental Recommendations 1. Develop standard product descriptions and apply standard condition codes in GSAXcess TM. 2. Use historic data to segment asset screening times and improve asset disposal process. 3. Create a central registration system as part of Firstgov that explains all special authorities and where recipients of special authorities can pre-qualify. Phase 2: Medium-term Recommendations (Kick off 3-6 months) More complex to implement, with higher potential impact

10 GSA Federal Asset Sales Incremental Recommendations Phase 3: Long-term Recommendations (Kick off 6-12 months) Most complex to implement with a longer-term impact 1. Implement agency asset tracking and agency internal reporting. 2. Tie full-time property management positions to pre- specified training. 3. Encourage agencies to use (and enforce) excess as first source of supply more rigorously within their organizations.

11 GSA Federal Asset Sales Breakthrough Recommendations Any substantive improvement to U&D must address comprehensive asset management. Key issues include: Common data standards and data tracking fields. System compatibility across agencies (perhaps adopting AAMS modules across agencies). Common policies and procedures (e.g., asset disposal plans, asset tracking, consistent use of condition codes, unified taxonomy). Use of emerging technologies (UID, RFID, EPC) and improved inventory management (how to identify excess). Full Asset Life Cycle Management Improved agency asset management will drive substantial improvements in processes, data, and decision making.

12 GSA Federal Asset Sales GSA FSS – GSA OGP – OMB At the outset of recommendation implementation, the Federal Supply Service, Office of Governmentwide Policy, and Office of Management and Budget must reach consensus on future plans. U&D Study Review n Involve senior-level management from FSS, OGP, and OMB n Agree on which recommendations to implement n Determine lead and support roles and timing of implementation

13 GSA Federal Asset Sales Next Steps n Leverage the PMEC to develop support n Review policy to create incentives n Assume leadership in developing standard product descriptions and data consistency n Take ownership of Asset Management initiative Development of a project plan, funding strategy, and budget approval process Form and lead an Inter-Agency Steering Committee GSA OGP Suggested steps for the Office of Governmentwide Policy to implement these recommendations.

14 GSA Federal Asset Sales Next Steps n Develop training standards for the learning system. n Review Special Authorizations for redundancy and streamlining. n Evaluate agency compliance with the CFO Act. n Collaborate with stakeholders, including FSS. n Develop measures to enforce Excess as first source. Improved asset and inventory management practices. Mandatory linking to acquisition platforms GSA OGP (cont.) Suggested steps for the Office of Governmentwide Policy to implement these recommendations.

15 GSA Federal Asset Sales Next Steps n Support the efforts of OGP and FSS as they implement enhancements. n Evaluate feasibility of and potentially conduct a Government-wide Data Call to establish a baseline performance for property disposal. n Support OGP’s efforts to lead a Personal Property Asset Management Initiative, and analyze feasibility of establishing an Asset Management Egov Initiative. n Work with OGP to evaluate and implement funding strategies for selected recommendations. OMB Suggested steps for the Office of Management and Budget to implement these recommendations.

16 GSA Federal Asset Sales Next Steps n Develop implementation plan for chosen recommendations. n Coordinate with stakeholders as appropriate for development and implementation of recommendations. n Support OGP in Personal Property Asset Management Initiative. Organize meetings with U&D stakeholders to identify data standards for reporting assets into GSAXcess TM. Develop an implementation plan for standards reporting. GSA FSS Suggested steps for the Federal Supply Service to take to implement recommendations.

17 GSA Federal Asset Sales Benefits of Implementation n Improved knowledge increases usage. n Standardization of codes is the backbone of an efficient system. n Special Authority Registration. n Enforcement of Excess as first source. (increase procurement avoidance, increase inventory tracking, positive budgetary impact) n Improved public policy, based on informed decisions Benefits to the Government, Stakeholders, and Taxpayers from these enhancements charged to OGP.

Federal Asset Sales, Power Through Partnership Thank you for your help and support.

19 GSA Federal Asset Sales Mitra Nejad – Federal Asset Sales Program Manager Victor Arnold-Bik – Personal Property Asset Class Manager FAS U&D Questions