1. 1 Shrinking the Federal Footprint… Dispositions and Legislation Phil Dalby, PE, LEED AP Office of Engineering and Construction Management Facilities and Infrastructure Team FIMS Conference 16 June 2011

2. Agenda Transforming management of Federal real estate DOE excess process Screen with GSA and HUD Disposal DOE Bank OECM Excess Elimination Report Partial demolition 2

3. Transforming Mgt of Federal Real Estate We cant win the future with a government of the past President Obama, State of the Union Address To follow the President's leadership and bring our government into the 21st century, we are taking bold steps to transform the way we manage Federal real estate. Jacob J. Lew, Director Executive Office of the President 3

4. Transforming Mgt of Federal Real Estate Whats already in place – Executive Order 13514, established an integrated strategy toward sustainability in the Federal government – June 10, 2010 the President issued a memorandum on Disposing of Unneeded Federal Real Estate Goal achieve $ 3 billion in savings by the end of FY 2012 – Telework Enhancement Act of 2010 4

5. Whats New – In his FY 2012 Budget, the President introduced a transformative proposal to significantly reduce and realign our Federal civilian real property inventory – OFFICE OF MANAGEMENT AND BUDGET Memo dated May 4, 2011 Subject Realignment of Federal Real Estate – H. R. 1734 Civilian Property Realignment Act or CPRA. Civilian BRAC 5 Transforming Mgt of Federal Real Estate

6. Established a Real Property Advisory Committee – Identify opportunities for improving the Federal Governments management of real property – Will be in operation until the end of FY 2015 – Committee - three SRPO and four Chief Financial Officers – Purpose – Identify short and long term opportunities to realign and consolidate real property 6 Presidents FY 2012 Budget/OMB Memo

7. H.R. 1734 Civilian Property Realignment Act Introduced by Congressman Denham on May 4, 2011 Purpose – Consolidate the footprint of Federal buildings and facilities – Maximize the utilization rate of Federal buildings and facilities – Reduce the reliance on costly leased space – Sell or redevelop high value assets that are underutilized – Reduce the operating and maintenance costs of Federal civilian real properties – Reduce redundancy, overlap, and costs asso1ciated with field offices – Create incentives for federal agencies to achieve greater efficiency in their inventories of civilian real property by enabling agencies to retain and reinvest savings and sale proceeds – Facilitate and expedite the sale or disposal of unneeded properties – Assist federal agencies in achieving the Governments sustainability goals by reducing excess

8. Establishes – Independent commission to be known as the Civilian Property Realignment Commission (CPRC) Membership – Nine members appointed by the President, with the advice and consent of the Senate – The Commission shall cease operations six years from the date of enactment of this Act 8 H.R. 1734 Civilian Property Realignment Act

9. Within 120 days of enactment and 120 days following the beginning of each fiscal year thereafter, federal agencies submit real property data to OMB and GSA – Agencies recommendations include: Properties that can be sold, disposed of, transferred, exchanged, consolidated, co-located, reconfigured, or redeveloped, to reduce operating and maintenance costs Within 60 days of Agencies submission OMB and GSA shall review agency recommendations and develop recommendations incorporating the following principles – The extent to which a Federal building or facility aligns with the current mission of the federal agency 9 H.R. 1734 Civilian Property Realignment Act

10. OMB and GSA review Cont – The extent to which there are opportunities to consolidate similar operations across multiple agencies or within agencies – The economic impact on existing communities in the vicinity of the Federal building or facility – The extent to which the utilization rate is being maximized and is consistent with non-governmental industry standards – The extent to which reliance on leasing for long-term space needs is reduced – The extent to which the operating and maintenance costs are reduced through consolidating, co-locating, and reconfiguring space – The extent to which energy consumption is reduced 10 H.R. 1734 Civilian Property Realignment Act

11. 120 days after OMB and GSAs recommendations and biennially thereafter the CPRC makes recommendations to the President President sends his recommendations to Congress with his approval or disapproval of each recommendation within 30 days of CPRC submission If President does not submit his recommendations to Congress within 30 days the process terminates until the following year. 11 H.R. 1734 Civilian Property Realignment Act

12. DOE Disposition Portfolio Characteristics – Over 50 Sites – Many sites hosts multiple programs – Excess facilities generally embedded in a complex – Security Issues at almost all sites Limits opportunity for commercial reuse – Contamination issues Long and complex decontamination & demolition times 12

13. 13 Life Cycle Facilities Management Where are we??

14. 14 Excess Elimination Drivers Annual Maintenance $86M for non-operating facilities One for one offset for new construction and replacement facilities Economic development transfers Mission requirements Environmental stewardship Please archive as soon as you know an asset has been dispositioned!

15. DOE Excess Process Site determines asset is excess to site mission Certified Reality Specialist concurs Asset(s) are screened by program Asset(s) are screened by DOE If no interest expressed – Declared excess to DOE – FIMS Excess indicator set to YES – Populate estimated disposition year Proceed with GSA screening 15

16. DOE Screening Process Complete a Request for Disposition Form FIMS website: http://www.fimsinfo.doe.gov/excess_elimination.htm http://www.fimsinfo.doe.gov/excess_elimination.htm Send to phil.dalby@hq.doe.govphil.dalby@hq.doe.gov Asset Screened for seven days Email reply in seven days – Stating the asset is excess to DOE – Populate the Estimated Disposition Year Contact Phil Dalby if you dont hear from me in seven days 16

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18. DOE Excess Process Cont Screened through GSA and HUD – See your local or HQ Reality Specialist! Excess Asset(s) are disposed Asset(s) archived in FIMS – Ensure correct status – Ensure correct status date These used for space banking Archive NLT 12 Nov 2011!!! 18 Dont get tangled up in red tape contact your Reality specialist!

19. 19 FY 2010 Report on DOEs Disposition of Excess Real Property Status of Banked Square Feet for Future One- for-One Offsets Office of Engineering and Construction Management March 2011

20. DOE Bank Bank queried from FIMS Included Buildings, real property trailers and OSFs OSFs must be measured in SF 15 square feet could save you…

21. Timeline For FY 2011 Excess Elimination Report Now to 12 November 2011 – Sites archive real property assets disposed of in FY 2010. – Assets must be archived by 12 November 2010 – Note: No assets will be banked if they are not archived in the Facility Information Management System (FIMS) database 15 January 2012 – Program Offices sent FY 2002 to FY 2011 Bank information 1 February 2012 – Program Offices provide concurrence or comments via email 30 March 2012 – Issue FY 2011 Excess Elimination Report 21

22. Partial Demolition Definition - A partial disposition/demolition with respect to FIMS is when a portion of a real property asset is demolished or disposed of and a new FIMS record is generated and archived to capture the portion of the real property asset that has been demolished or disposed of Update - FIMS records to document partial dispositions/demolitions when the remainder of the real property asset will remain for five or more years 22

23. Example 1 Building being demolished over several years One wing is being demolished each year It would not be appropriate to generate a new FIMS record each year and archive it to take credit for the square footage demolished in that year The correct procedure would be to wait until the entire building is demolished and archive the entire FIMS record 23

24. Example 2 A building has three wings Wing 1 is demolished There are no plans on disposing of the other two wings It would be appropriate to develop a new FIMS record for the demolished wing and archive the record 24

25. Example 3 100 acres of a 500 acre land parcel is being disposed of There are no plans to dispose of the remaining 400 acres It would be appropriate to develop a new FIMS record for the acreage that is being disposed of and archive the new record 25

26. Questions? 26 Phil Dalby PE, LEED AP Department of Energy Office of Engineering and Construction Management (OECM) - MA-50 Phone: (202) 586-4548 Cell: (202) 615-3405 Fax: (202) 586-3695 phil.dalby@hq.doe.gov http://management.energy.gov/oecm.htm