National Strategy for the Efficient Use of Real Property Fiscal Years I VAN G RAFF Lemont, IL May 6, 2015

Agenda Background Purpose Assumptions Expected Actions May 6, 2015FIMS / RE Training2

Background Published March 25, 2015 Writers: – Office of Management and Budget (OMB) – General Services Administration, Office of Government-wide Policy (GSA) Responds to a Government Accountability Office (GAO) recommendation [ GAO Report ] May 6, 2015FIMS / RE Training3

Purpose GAO Recommendation : “Publish a national strategy for managing federal excess and underutilized real property” – Directed to Chair of the FRPC – In collaboration and consultation with FRPC member agencies The National Strategy should include: – A statement of purpose, scope, and methodology; – Problem definition and risk assessment; – Goals, subordinate objectives, activities, and performance measures, including the milestones and time frames for achieving objectives; – Resources, investments, and risk management; – Organizational roles, responsibilities, and coordination; and – Integration and implementation plans. May 6, 2015FIMS / RE Training4

Assumptions Agencies must: 1.Acknowledge they have too many buildings 2.Curtail their acquisitions 3.Consolidate personnel and stored items 4.Must dispose of un- and under-utilized real property beginning with leased assets 5.Fund this work through their own budgets. May 6, 2015FIMS / RE Training5

Expected Actions Consolidate! – Identify un- and under-utilized office and warehouse space Optional : For GSA space, Consolidated Activities Program [utilization surveys] Optional : For all spaces, Client Portfolio Planning (CPP) [utilization surveys] – Consolidate personnel and stored items – Dispose of the emptied buildings May 6, 2015FIMS / RE Training6

Expected Actions Reduce! (or at least, Freeze! ) – Reduce or at least hold constant the portfolio of office and warehouse buildings – Increase the number and rate of asset disposals with GSA’s assistance – Participate in pilot disposal demonstration initiatives May 6, 2015FIMS / RE Training7

Expected Actions Cooperate! – Respond to requests from GSA as it: Validates and verifies Federal Real Property Profile (FRPP) data Migrates the FRPP to a new database May 6, 2015FIMS / RE Training8

May 6, 2015FIMS / RE Training9 Questions or concerns? Ivan Graff (202)

FREEZE THE FOOTPrINT An Update As Presented by Ivan Graff Office of Asset Management May 6, 2015FIMS / Real Estate Training10

Agenda A Brief History of the Initiative The Most Recent Rules Performance in FY 2013 and 2014 FY 2015: Bridging Past, Present, and Future A Digest of the New Memorandum Questions in Need of Answers Next Steps May 6, 2015FIMS / Real Estate Training11

A Brief History of Freeze the Footprint DateWhoWhat 05/11/12OMBM /15/12DOEFY12 FRPP Submit 03/14/13OMBMPM /27/13GSAPrelim. FY12 Baseline 04/12/13DOEInternal Info. Request 06/18/13DOESubmitted Draft Plan 09/03/13DOESubmitted Final Plan 12/15/13DOEFY13 FRPP Submit 01/07/14GSAFY13 Assessment DateWhoWhat 01/23/14DOEAAIM Module 04/17/14OMBRules Revision 04/23/14GSARev. FY13 Assessment 05/21/14DOEFY13 Self Evaluation 07/15/14GSAFY14 FRPP Data Dict. 12/15/14DOEFY14 FRPP Submit 01/06/15GSAFY14 Assessment 03/25/15OMBMPM /09/15DOEFY14 Self Evaluation May 6, 2015FIMS / Real Estate Training12

The Most Recent Rules Based on: – Office of Management and Budget , April 17, 2014 – FRPP Data Dictionary, July 15, 2014 GSA maintains DOE has 498,404 SF as of FY 2014 May 6, 2015FIMS / Real Estate Training13 Baseline Baseline Remains Newly Acquired Reports of Excess to GSA

What’s Included? Office or warehouse assets... – Inventoried in the Federal Real Property Profile – As of FY 2012 – Inventoried first as such in FY 2013 or thereafter – For which DOE has GSA occupancy agreements Building area recorded in the most recent year – Gross building area for DOE-owned & -leased – Useable building area for occupancy agreements – Land and structures have no building area Offsets only for Reports of Excess to GSA for buildings in the FY 2012 inventory May 6, 2015FIMS / Real Estate Training14

What’s Included? Not relevant – – Usage code changes From predominant-use office or warehouse  To predominant-use office or warehouse What matters: The asset’s usage in the baseline or when first inventoried thereafter – Ownership changes From DOE-owned or -leased  To DOE-owned or -leased What matters: DOE-owned & leased, GSA-owned & leased vs contractor-owned & leased, permits May 6, 2015FIMS / Real Estate Training15

GSA Tabulation Method, Jan A.Using the FY 2014 inventory submission: 1.Add up the FY 2014 area of all the remaining buildings included in the FY 2012 FtF baseline. 2.Add to this the area of all buildings first inventoried after FY 2012 with an office or warehouse use code. 3.Subtract the area of all buildings with a report of excess date and an office or warehouse use code. B.Add to this the GSA-supplied usable building area tally for occupancy agreements. C.Subtract the FY 2012 baseline from this tally. May 6, 2015FIMS / Real Estate Training16

Examples May 6, 2015FIMS / Real Estate Training Result # 1 EXCESS Offset # 2Ignored # 3Included

Examples May 6, 2015FIMS / Real Estate Training Result # 4 ADD No Area # 5Included # 6No Area EXCESS

Revised FY 2013 Position May 6, 2015FIMS / Real Estate Training19 NOTE: DOE Owned and Leased Assets measured in gross square feet; GSA Occupancy Agreements in useable square feet

FY 2014 Position May 6, 2015FIMS / Real Estate Training20 NOTE: DOE Owned and Leased Assets measured in gross square feet; GSA Occupancy Agreements in useable square feet FY 2012 Baseline Approved by GSAFY 2014 DOE Based on GSA PGMDOE O and DGSA OAsTotalDOE O and DGSA OAsTotalFtF Balance EA 13, EE 411,95170,787482,738411,95116,844428,795-53,943 EM 9,328,626587,3859,916,0119,279,528561,0329,840,560-75,451 FE 986,07210,698996,770984,11350,3241,034,43737,667 FERC 0508, , IN 015, ,920 -2,818 LM 91,68757,517149,20494,70557,517152,2223,018 MA 16,8241,819,3051,836,12919,4691,701,9731,721, ,687 NE 1,171,5850 1,118, ,834 NNSA 11,632,999276,20211,909,20111,403,853263,76811,667, ,580 NR 1,402,2060 1,672, ,894 PA 1,482,072551,4982,033,5701,196,835583,6211,780, ,114 SC 5,162,126136,1535,298,2795,147,667136,1535,283,820-14,459 Total 31,699,8464,033,96935,733,81531,342,6703,892,73935,235, ,406

FY 2015: A Pivotal Year Final year of comparison to FY 2012 Baseline Basis for FY 2016 – FY 2020 Baseline Would have had to update the “Freeze the Footprint” plan under MPM OMB published replacement guidance, MPM , on March 25, 2015 May 6, 2015FIMS / Real Estate Training21

Federal Real Property Profile 2015 May 6, 2015FIMS / Real Estate Training22

FRPP FtF Related Validation 2015 May 6, 2015FIMS / Real Estate Training23 Data AnomalyUniverse of Data Anomaly Lower Threshold Upper Threshold FTF SF Decrease FTF Criteria for All Office and Warehouse assets NoneFlag FTF asset where the SF decreased in 2015 compared to 2014 FTF assets Disappear FTF Criteria for All Office and Warehouse assets Explain why a FTF asset (based on RPUID) was not reported (missing asset report)

Reduce THE FOOTPrINT An Introduction As Presented by Ivan Graff Office of Asset Management May 6, 2015FIMS / Real Estate Training24

Replacement OMB Policy FY 2016 – FY 2020, Highlights Freeze the Footprint for Offices and Warehouses – Baseline from the FY 2015 FRPP submission Reduce the Footprint – Reduction targets for owned (a) office, (b) warehouse, & (c ) all other uses – Document for dispositions... Investment costs Cost reductions over one and seven year periods Set a Standard for Office Space Allocation May 6, 2015FIMS / Real Estate Training25

Timeline May 6, 2015FIMS / Real Estate Training26 DateWhoWhat 04/14/2015GSADraft monitoring and reporting methods and templates 04/29/2015DOEComments on draft methods and templates 05/19/2015GSAFinal methods and templates. 07/10/2015DOEReal Prop. Efficiency Plan (RPEP), FYs – draft final 09/10/2015DOEReal Property Efficiency Plan (RPEP), FYs – final 12/31/2015DOECFO FRPP accuracy certification letter due to GSA 30 days laterDOEReceive then comments due on FY 2015 FtF baseline 02/13/2016GSAFRPP data analysis 03/15/2016DOEReal Prop. Efficiency Plan (RPEP), FYs – draft final 03/25/2016DOENewly Acquired or Renovated Office Workstations Standard 60 days laterDOEMeet with GSA then finalize RPEP, FYs /31/2016DOECFO FRPP accuracy certification letter due to GSA 02/13/2017GSAFRPP data analysis 03/15/2017DOEReal Prop. Efficiency Plan (RPEP), FYs – draft final 60 days laterDOEMeet with GSA then finalize RPEP, FYs /31/2017DOECFO FRPP accuracy certification letter due to GSA C YCLE REPEATS TWICE MORE THROUGH FY 2019

Federal Real Property Profile 2015 May 6, 2015FIMS / Real Estate Training27

A Closer Look at the Requirements May 6, 2015FIMS / Real Estate Training28 R EDUCTIONS F REEZING OfficeWarehouseOther Office & Warehouse DOE Owned? ●●●● DOE Leased, GSA-Owned, & -Leased? ●● ● Building Area? ●●●● Building Count? ● Baseline? ● Annual Net Reduction Target? ●● Disposals Only Target? ● Asset Level Attribute Data? ●● Summary Level Attribute Data? ● Asset Level Prior Year Cost Data (≥ 2,500 GSF)? ●● Summary Level Prior Year Cost Data? ●

Real Property Efficiency Plan (RPEP) Updated annually, with a rolling five year time span Contents – Internal controls Route acquisition decisions “Reserve” disposed or excess space for acquisitions Waive office workstation design standard Track space acquisitions or dispositions Prioritize dispositions based on investment return, mission, etc. May 6, 2015FIMS / Real Estate Training29

RPEP Contents (2 of 4) Targets for owned – – Office building area reductions – Warehouse building area reductions – Other building disposals (number and area) Narratives on – – Cost effective alternatives to acquisition – Plans to increase the efficiency of office space – Prioritizing consolidations and disposals – Strategies for achieving goals without compromising mission – The project planning and budgeting process – Calculating, retaining, and sharing costs incurred and avoided – Freeze the Footprint successes and challenges (publish) – 3 examples of office or warehouse space reductions (publish) May 6, 2015FIMS / Real Estate Training30

RPEP Contents (3 of 4) Office and Warehouse – Acquisitions – Expansions – Consolidations – Co-locations – Disposals Asset Level Data, Years 1, 2, & 3 – RPUID – Use – Size – Ownership – Location – Est. Disposition Date – Est. Acquisition Date Year 4 & 5 – Net office building area changes – Net warehouse building area changes May 6, 2015FIMS / Real Estate Training31

RPEP Contents (4 of 4) Documentation of Costs – Projects completed in the previous fiscal year – One and cumulative seven-year time periods – Office and warehouse space – Owned and leased – ≥ 2,500 square feet Asset-level investment costs Asset-level cost reductions – Other space (owned only) Total investment costs Total cost reductions May 6, 2015FIMS / Real Estate Training32

Newly Acquired or Renovated Office Workstation Standard (NAROWS) May 6, 2015FIMS / Real Estate Training33 “[A] gencies shall issue a... design standard for maximum useable square feet by workstation for use in the design of owned and leased domestic office space, including GSA occupancy agreements, that it occupies.” MPM , Section I(2) “The policy shall apply, at a minimum, to all space renovations and new acquisitions for all agency components. Agency components may implement different standards based upon mission requirements.” MPM , Section I(2)

Questions in Need of Answers May 6, 2015FIMS / Real Estate Training34 Portfolio Optimization Space Standard Disposition Targets Documentation of Costs

Next Steps 1.GSA to finalize guidance and templates by May 19, FISC meetings to answer questions 3.SRPO memorandum: Confirming data and updating AAIM 4.Real Property Efficiency Plan draft final due July 10, 2015 May 6, 2015FIMS / Real Estate Training35

May 6, 2015FIMS / Real Estate Training36 Look for the Updates on PowerPedia: Questions: Ivan Graff hq.doe.gov