1. Update DOE O 430.1B, Real Property Asset Management
Cindy Hunt & David Steinau
FIMS Annual Comprehensive Training
May 10, 2016

2. Project Motivation External Drivers Internal Drivers Desired Outcomes
Legislation
Executive Orders/Presidential Memoranda/OMB Circulars and Memoranda
Federal Accounting Standards/Federal Regulations
GAO and DOE IG Reports
Internal Drivers
DOE Strategic Plan
Secretarial Memoranda
DOE Asset Management Plan; DOE Real Property Efficiency Plan
Laboratory Operations Board Working Groups on DOE Infrastructure
Desired Outcomes
Place real property management responsibility and accountability with line organizations supported by staff organizations
Updated - DOE O 430.1C, Real Property Asset Management
Standardized annual real property performance report
Streamlined approach for use in future updates to DOE Orders
DOE O 430.1B approved September 23, 2003; has not been updated since 2003 with the exception of two administrative changes (February 2008 and April 2011). The internal and external drivers affecting real property management have changed significantly since 2003 and need to be reflected in an updated Order.
Federal Requirements – The primary set of Federal rules governing the acquisition, management, and disposal of real and personal property.
Federal Property and Administrative Services Act of 1949
Energy Policy Acts of 1992, 2005 / Energy Independence and Security Act of 2007
Federal Buildings Personnel Training Act
Code of Federal Regulations
10 CFR Part 600, Financial Assistance (Grants and Cooperative Agreements)
10 CFR Part 770, Transfer of Real Property at Defense Nuclear Facilities for Economic Development
41 CFR Chapter 101, Federal Property Management Regulation
41 CFR Chapter 102, Public Contracts and Property Management
41 CFR Part 109, DOE Property Management supplements
48 CFR Federal Acquisition Regulations
48 CFR Part 570, Acquiring Leasehold Interests in Real Property
48 CFR Part 945, DOE specific acquisition policy
48 CFR Part 970, DOE Acquisition Regulation for Management and Operating Contracts
23 CFR Part 650, Bridges, Structures and Hydraulics
49 CFR Part 213, Track Safety Standards
Executive Order 13149, Greening of the Government Through Federal Fleet and Transportation Efficiency
Executive Order 13327, Federal Real Property Asset Management
Executive Order 13653, Preparing the United States for the Impacts of Climate Change
Executive Order 13693, Planning for Federal Sustainability in the Next Decade
Presidential Memorandum, Disposing of Unneeded Federal Real Estate – Increasing Sales Proceeds, Cutting Operating Costs, and Improving Energy Efficiency
OMB M-22-11, Realignment of Federal Real Estate
OMB Management Procedures Memorandums , “Freeze the Footprint” and , “Reduce the Footprint”; National Strategy for the Efficient Use of Real Property,
OMB Circular A-11, Preparation, Submission and Execution of the Budget and Capital Programming Guide, Planning, Budgeting and Acquisition of Capital Assets
FRPC Guiding Principles for High Performance Sustainable Buildings
Federal Accounting Standards Advisory Board, Accounting for Property, Plant and Equipment
Update DOE O 430.1B, Real Property Asset Management
May 10, 2016

3. Governance Structure for Real Property
DOE Strategic Plan
DOE Asset Management Plan
DOE O 430.1C Real Property Asset Management
Program’s Implementation Guidance
An Revised Order will:
Align with the DOE Strategic Plan
Manage assets in a sustainable manner that support the DOE mission
Operationalize the DOE Asset Management Plan
Establish requirements and responsibilities to meet long-term goals and objectives
Comply with Government Performance and Results Act
Establish performance plans with annual goals and measures
Produce performance reports on prior year performance
Promote efficient and effective use of assets and resources, supporting
National Strategy for the Efficient Use of Real Property
Freeze, Measure, Reduce
S-1 infrastructure initiatives
A Revised Order will:
Align with DOE Strategic Plan
Manage assets in a sustainable manner that support the DOE mission - DOE Goal 3, Strategic Objective 9
Operationalize the framework envisioned by the DOE Asset Management Plan
Establishes requirements and responsibilities
Comply with Government Performance and Results Act of 1993 (Public Law ) Part of a series of laws in the 1990s aimed at improving federal government management. Requires federal agencies to develop
strategic plans with long-term goals
performance plans with annual goals and measures
performance reports on prior year performance
Promote efficient and effective use of assets and resources
National Strategy for the Efficient Use of Real Property , Reducing the Federal Portfolio through Improved Space Utilization, Consolidation, and Disposal, Office of Management and Budget, Spring 2015
Freeze growth in the Federal real property footprint
Measure costs and utilization of individual real property assets
Identify opportunities to Reduce thru
Asset disposal
Better space utilization
S-2 Infrastructure Initiatives
General Purpose Infrastructure
No further increase in Deferred Maintenance & Repair
Disposal of excess contaminated facilities
Update DOE O 430.1B, Real Property Asset Management
May 10, 2016

4. Executive Intent A Revised Order will: Adhere to government mandates
DOE O 430.1C is more outcome based and less prescriptive
Encourage use of leading practices, customary commercial practices, and voluntary consensus standards
Balance agency consistency with Program Office flexibility
Address DOE Program Offices/Organizations
Reduce restrictive or duplicative guidance
Eliminate dual processes to the extent possible
Link real property planning, budgeting, and management with DOE missions through performance outcomes
Provide appropriate accountability and control reflecting federal ownership and contractor management
Integrate requirements into assurance systems and establish a consistent means of self assessment
Retain the Facilities Information Management System (FIMS) as DOE’s corporate inventory of real property data
Institutionalize lessons learned from Laboratory Operation Board’s Working Groups
Update DOE O 430.1B, Real Property Asset Management
May 10, 2016

5. Key Changes - Applicability
What’s In
Recognizes the Department’s Organizational Structure
Under Secretaries are responsible for implementation thru DOE elements
Addresses DOE Program Offices/Organizations
Balances agency consistency with Program Office flexibility
Describes the “what”
Establishes methods for approving exemptions or deviations
PSOs determine to whom and how to “flow down” requirements
Exemptions
NR, PMAs, and FERC must supply FRPP and DM&R data via FIMS
Address DOE Program Offices/Organizations.
Reduce restrictive or duplicative guidance.
Eliminate dual processes to the extent possible.
PSOs may develop program management plans and issue internal guidance that may describe “how”
Removed Contractor Requirements Document and associated references
Contracting Officers determine applicable contract mechanisms to implement real property management requirements.
Removed specific requirements sections:
Real Estate - integrated within the requirements and responsibilities sections.
What’s Out
Attachment 1, Contractor Requirements Document
Exclusions
Update DOE O 430.1B, Real Property Asset Management
May 10, 2016

6. Key Changes - Requirements
Follows the Real Property Life Cycle
Planning and Budgeting
Acquisition
Sustainment
Disposition
Integrates Real Estate functions with requirements and responsibilities sections
Requirements organized by phases of the Real Property Life Cycle
Update DOE O 430.1B, Real Property Asset Management
May 10, 2016

7. Key Changes – Planning & Budgeting
What’s In
Envisions an integrated annual planning process -
Considers mission needs; climate change adaptation; environmental sustainability; environment, health, safety and security; cultural and natural resource preservation; and historic preservation
Ensures systematic assessment of assets needed to maintain each core capability
Evidenced by 5-year real property program documentation
Ensures real estate actions are reviewed, approved, and executed by authorized personnel
Produces an Integrated Facilities and Infrastructure (IFI) Crosscut Budget
Planning in interdisciplinary and considers all infrastructure needs at the site: tenants, general purpose, programmatic
Real Property Program Documentation includes:
the required real property investments to support annual 5-year budget requests
a prioritized list of real property acquisition, sustainment, and disposition activities and projects within programs to meet mission requirements
results of annual utilization surveys, specifically addressing space management standards;
a summary of changes and an annual balance of real property acquisition and disposition building footprint, specifically addressing the reduction or consolidation of office and warehouse space
What’s Out
Ten-Year Site Plans – encourages integration of facilities planning with mission planning
Value Engineering - covered by other OMB/DOE directives
Guidance on land-use planning
Update DOE O 430.1B, Real Property Asset Management
May 10, 2016

8. Key Changes – Acquisition
What’s In
Address a range of available methods for acquiring interest in real property
Updates requirements for newly constructed or leased assets to account for -
Guiding Principles for New Construction and Modernization
Federal metering requirements
Building area offsets requirements
Office space design standard
What’s Out
Attachment 6, Institutional General Plant Projects - financial management direction addressed in other DOE guidance.
Minor construction threshold value
Update DOE O 430.1B, Real Property Asset Management
May 10, 2016

9. Key Changes – Sustainment
What’s In
Establishes industry standard option for configuration management
Allows for a graded approach to conduct of condition assessments
Addresses both Repair Needs and Deferred Maintenance & Repair
Requires conduct of Functional Assessments
Clarifies requirement for utilization surveys
condition assessments tailored to the inspection type and frequency that aligns with asset ownership, use, and mission dependency
Functional Assessment. An objective review to determine the condition of a specific asset and its suitability to serve a designated function or use. Designations such as adequate, substandard, and inadequate are used to identify an asset’s functionality.
What’s Out
Quarterly Maintenance Report
Update DOE O 430.1B, Real Property Asset Management
May 10, 2016

10. Key Changes – Disposal What’s In What’s Out
Updates transfer and disposal authorities
Focuses on unneeded real property assets:
Identification
Screening
Recording planned disposition
Recognizing and recording disposal completion and associated costs
What’s Out
Disposition Plans
Reference to Departmental Guides
Specification of technical or regulatory requirements associated with disposal of contaminated real property
Update DOE O 430.1B, Real Property Asset Management
May 10, 2016

11. Key Changes – Performance Measures
What’s In
Performance areas tied to Asset Management Plan Goals support -
Routine performance monitoring and reporting
Inventory, Alignment, Functionality, Condition, Utilization, Disposition, Management, Data Reliability
Understating of stewardship effectiveness
Enterprise-wide infrastructure investment recommendations concurrent with budget formulation
Ability to monitor trends over time and meet emergent reporting requirements
Inventory. The inventory performance area focuses on real property asset holdings for buildings and trailers, other structures and facilities (OSFs), and land.
Alignment. The alignment performance area focuses on the degree to which real property assets are linked and aligned with core capabilities and mission requirements.
Functionality. The functionality performance area focuses on the adequacy of the Department’s real property assets to support operations.
Condition. The condition performance area focuses on the level of repair of real property assets.
Utilization. The utilization performance area focuses on the degree to which existing Departmental space is used.
Disposition. The disposition performance area focuses on the degree to which the Department identifies and disposes of excess property.
Management. The management performance area focuses on how well DOE invests in and maintains real property in a sustainable and cost effective manner.
Data Reliability. The data reliability performance area focuses on the completeness and accuracy of DOE’s real property data used to support Departmental real property asset decisions.
What’s Out
Specific metrics and performance ratings
Update DOE O 430.1B, Real Property Asset Management
May 10, 2016

12. Key Changes – Reporting Systems
What’s In
Retains the Facilities Information Management System (FIMS) as DOE’s corporate inventory of real property data
Retains FIMS data validation and certification
Requires completion report for each disposition project
Establishes a consistent means of self assessment
Envisions preparation of annual reports –
State of Facilties
State of General Purpose Infrastructure
What’s Out
Attachment 5, Facility Asset Management Tools - integrated within the requirements or responsibilities sections
Update DOE O 430.1B, Real Property Asset Management
May 10, 2016

13. Key Changes – Responsibilities
What’s In
Provides appropriate accountability and control reflecting federal ownership and contractor management
Integrates requirements into assurance systems
Establishes responsibilities for:
Under Secretary
Office of Environment, Health, Safety and Security,
Contracting Officer
Senior Real Property Officer and Head of Contracting Activity for Real Estate
Certified Realty Specialist, Real Estate Contracting Officer, and Senior Realty Officer
Under Secretary
Ensures accountability for the stewardship of real property assets.
Issues supplemental directives and guidance, as necessary, to implement real property asset management.
Ensures real property budgets adequately support current and planned mission activities in an efficient, safe, secure and sustainable manner.
Implements the requirements of this Order through the Program Secretarial Offices.
What’s Out
Lead Program Secretarial Office, Cognizant Secretarial Office designations
Update DOE O 430.1B, Real Property Asset Management
May 10, 2016

14. Project Schedule Activity Milestone
Meet with ESC to Solicit Feedback on Approach and DOE O 430.1B
December 2015
Develop DOE O 430.1C Outline
January 2016
Initiate Development of DOE O 430.1C
February 2016
Complete DOE O 430.1C Preliminary Draft
March 2016
Submit Stakeholder Draft to DOE Program Offices/Organizations
April 2016
Receipt of adjudicated Comments from ESC
May 2016
Address Comments and Develop Back check Draft of DOE O 430.1C
June 2016
Submit Back check Draft to ESC for Confirmation
July 2016
Address Comments and Develop Departmental Draft of DOE O 430.1C
Place Departmental Draft DOE O 430.1C in RevCom
Receive comments from RevCom
August 2016
Address Comments and Develop Final Draft of DOE O 430.1C
September 2016
Departmental Concurrence and Final Review
Update DOE O 430.1B, Real Property Asset Management
May 10, 2016

15. Next Steps
May 11, 2016 – Complete review of DRAFT DOE O 430.1C. (ESC members and stakeholders)
(ESC members) internally reconciled comments from each PSO or Agency represented by the ESC member. Comments to be targeted at a section or line of the document and include a proposed resolution or text substitution.
Provide communication/coordination support to ESC members through meetings and web presentations, as necessary. (MA-50)
Week of May 16 – 20, Next ESC meeting to review and adjudicate DOE stakeholder comments.
June 2016 – Revise DOE O 430.1C based on disposition of ESC member comments. (MA-50)
July ESC review and comment on draft Order. (ESC members)
July Distribute draft Order to DRB for RevCom. (MA-50)
Update DOE O 430.1B, Real Property Asset Management
May 10, 2016

16. Find the Department of Energy Asset Management Plan at:
Guidance or
Find the Department of Energy Strategic Plan and Agency Priority Goals at:
of Energy | Overview
Cindy Hunt, PE, PMP, CCE, CFM, LEED AP
Facilities Engineer
U.S. Department of Energy
Office of Asset Management (MA-50)
1000 Independence Ave, SW Washington DC 20585
David Steinau
Realty Specialist
U.S. Department of Energy
Office of Asset Management (MA-50)
1000 Independence Ave, SW Washington DC 20585
Update DOE O 430.1B, Real Property Asset Management
May 10, 2016

17. Backup

18. Executive Steering Committee Member Responsibilities
ESC Member
Internal DOE and External Organization Coordination
Carmelo Melendez
Associate Under Secretary for Environment, Health, Safety and Security (AU-1)
Office of Management (MA-40)
Office of Acquisition Management (MA-61)
Office of the Chief Human Capital Officer
Office of the Chief Financial Officer
Office of Environment, Health, Safety and Security
Office of General Counsel
Office of History and Archives (MA-75)
Office of Project Management Oversight and Assessments
Sustainability Performance Office (MA-20)
Alison Markovitz
National Laboratory Operations Board
National Laboratory Policy Council
Federal Energy Regulatory Commission
Matt Moury
Nuclear Regulatory Commission
Defense Nuclear Facility Safety Board
ESC Member
Internal DOE and External Organization Coordination
Jim McConnell
National Nuclear Security Administration
Naval Reactors
Stephanie Short
Office of Science
Office of Energy Efficiency & Renewable Energy
Office of Fossil Energy
Tracey Bishop
Office of Nuclear Energy
Mark Gilbertson
Office of Environmental Management
Office of Legacy Management
Steve Webber
Bonneville Power Administration
Southeastern Power Administration
Southwestern Power Administration
Western Area Power Administration
John Quintana/Juan Alvarez
Chief Financial Officers’ Council
National Laboratory Directors’ Council thru the NLDC Chief Operating Officers Council
Cliff Shang
NNSA Core Infrastructure, Risk-Informed Strategic Planning Team (CRISP)
Update DOE O 430.1B, Real Property Asset Management
May 10, 2016