1. Ivan Graff Office of Acquisition and Project Management Oak Ridge, TN March 27, 2014 Applying the Memorandum on Data Related to Operations and Maintenance

2. Questions and answers galore! Purpose and Applicability ( 7 Questions ) Data Gathering Methods ( 21 Questions ) Reporting Requirements ( 7 Questions ) Definitions ( 1 Question ) Appendix A ( 3 Questions ) Appendix B ( 6 Questions ) March 27, 20142FIMS Annual Comprehensive Training Agenda

3. March 27, 20143FIMS Annual Comprehensive Training Purpose and Applicability “These implementation procedures for Fiscal Year (FY) 2014 will assist sites and their field and site offices to consistently and accurately collect and report financial data related to the operation and maintenance of real property assets owned or leased by the United States Department of Energy (DOE or Department).” DOE Order 430.1B, Sec. 5(d)(12) DROMa Sec. 1(a)

4. March 27, 20144FIMS Annual Comprehensive Training Purpose and Applicability Cost or EstimateSource of RequirementReporting Medium Annual Required Maintenance  Required at the discretion of the program (LPSO or CSO)  Not reported externally Annual Actual Maintenance  Guidance for Real Property Inventory Reporting referenced in 41 CFR § 102–84  DOE Order 430.1B  Federal Real Property Profile Quarterly Maintenance  H.R. Conference Report 108-10 accompanying Public Law 108-7  President’s Budget Request Annual Operations  Guidance for Real Property Inventory Reporting referenced in 41 CFR § 102–84  DOE Order 430.1B  Federal Real Property Profile Deferred Maintenance  Statement of Federal Financial Accounting Standards (SFFAS) 6, Accounting for Property, Plant, and Equipment  SFFAS 42, Deferred Maintenance and Repairs  DOE Order 430.1B  Annual performance and financial reports Repair Needs  Guidance for Real Property Inventory Reporting referenced in 41 CFR § 102–84  Federal Real Property Profile DROMa Sec. 1(c)

5. March 27, 20145FIMS Annual Comprehensive Training Purpose and Applicability Cost or EstimateSource of RequirementReporting Medium Annual Required Maintenance  Required at the discretion of the program (LPSO or CSO)  Not reported externally Annual Actual Maintenance  Guidance for Real Property Inventory Reporting referenced in 41 CFR § 102–84  DOE Order 430.1B  Federal Real Property Profile Quarterly Maintenance  H.R. Conference Report 108-10 accompanying Public Law 108-7  President’s Budget Request Annual Operations  Guidance for Real Property Inventory Reporting referenced in 41 CFR § 102–84  DOE Order 430.1B  Federal Real Property Profile Deferred Maintenance  Statement of Federal Financial Accounting Standards (SFFAS) 6, Accounting for Property, Plant, and Equipment  SFFAS 42, Deferred Maintenance and Repairs  DOE Order 430.1B  Annual performance and financial reports Repair Needs  Guidance for Real Property Inventory Reporting referenced in 41 CFR § 102–84  Federal Real Property Profile DROMa Sec. 1(c)

6. March 27, 20146FIMS Annual Comprehensive Training Purpose and Applicability “Programs and support offices with real property holdings (Programs) may implement alternate procedures in consultation with the Senior Real Property Officer or his designee (SRPO) that ensure the Department continues to meet its reporting commitments.” DROMa Sec. 1(b)

7. March 27, 20147FIMS Annual Comprehensive Training Purpose and Applicability “commentary”

8. March 27, 20148FIMS Annual Comprehensive Training Purpose and Applicability “Collect and report the actual and estimated costs listed above for the following types of real property and in which the Department has the following kinds of interest.... Land parcels of any ownership type, limited to annual operations costs only” DROMa Sec. 1(d)(ii)

9. March 27, 20149FIMS Annual Comprehensive Training Data Gathering Methods “Annual Required Maintenance Costs... “Collect these asset-level cost estimates as directed by the Lead Program Secretarial Office (LPSO) or Cognizant Secretarial Office (CSO).” DROMa Sec. 2(a)(i)

10. March 27, 201410FIMS Annual Comprehensive Training Data Gathering Methods “Annual Required Maintenance Costs... “Omit maintenance the site does not plan to accomplish in FY 2014, whether funded in FY 2012 or before, or deferred to FY 2014 or later.” DROMa Sec. 2(a)(i)(5)

11. March 27, 201411FIMS Annual Comprehensive Training Data Gathering Methods “fully-burdened” DROMa Sec. 2(a) through 2(c)

12. March 27, 201412FIMS Annual Comprehensive Training Data Gathering Methods “asset-level” DROMa Sec. 2(a) through 2(c)

13. March 27, 201413FIMS Annual Comprehensive Training Data Gathering Methods “Annual Actual Maintenance Costs... “Do not allocate corrective maintenance costs. Use maintenance and financial management systems to minimize a site’s reliance on allocation of predictive and preventive maintenance and surveillance and maintenance costs.” DROMa Sec. 2(a)(ii)(3)

14. March 27, 201414FIMS Annual Comprehensive Training Data Gathering Methods “Quarterly Maintenance Costs... “Collect these site-level, fully-burdened actual costs for predictive, preventive, and corrective maintenance or surveillance and maintenance incurred in FY 2014 from a site’s maintenance and financial management systems, distinguishing between: (a) Direct funded maintenance, and (b)Indirect funded maintenance” DROMa Sec. 2(a)(iii)

15. March 27, 201415FIMS Annual Comprehensive Training Data Gathering Methods “Operations... “Collect the fully-burdened costs for electricity, water/sewer, pest control, central heating, central cooling, snow removal, gas, refuse, recycling, grounds, janitorial, and rent incurred in FY 2014 by (1) sites and (2) assets such that the sum of all asset-level costs for a site equals the site level total costs.” DROMa Sec. 2(b)(i)

16. March 27, 201416FIMS Annual Comprehensive Training Data Gathering Methods “Operations... “Collect the fully-burdened costs for electricity, water/sewer, pest control, central heating, central cooling, snow removal, gas, refuse, recycling, grounds, janitorial, and rent incurred in FY 2014 by (1) sites and (2) assets such that the sum of all asset-level costs for a site equals the site level total costs.” DROMa Sec. 2(b)(i)

17. March 27, 201417FIMS Annual Comprehensive Training Data Gathering Methods “Operations... “Collect the fully-burdened costs for electricity, water/sewer, pest control, central heating, central cooling, snow removal, gas, refuse, recycling, grounds, janitorial, and rent incurred in FY 2014 by (1) sites and (2) assets such that the sum of all asset-level costs for a site equals the site level total costs.” DROMa Sec. 2(b)(i)

18. March 27, 201418FIMS Annual Comprehensive Training Data Gathering Methods “Operations... “Omit betterment costs or payments to providers of information technology, communications, security, or parking fee collections management services.” DROMa Sec. 2(b)(ii)

19. March 27, 201419FIMS Annual Comprehensive Training Data Gathering Methods “Operations... “Omit betterment costs or payments to providers of information technology, communications, security, or parking fee collections management services.” DROMa Sec. 2(b)(ii)

20. March 27, 201420FIMS Annual Comprehensive Training Data Gathering Methods “Operations... “Appendix A provides an alternative compliance approach for sites that do not know one or more of an asset’s operations costs.” DROMa Sec. 2(b)(iv)

21. 1. Tally the manually-entered asset-level operation costs. 2. Subtract from this tally the total of all site-level operation costs. 3. FIMS allocates the balance to buildings and trailers without operation cost entries  For non-utility costs By Gross Sqft.  For utility costs By Gross Sqft. By Hours of Operation FIMS Operation Costs Allocation March 27, 201421FIMS Annual Comprehensive Training

22. March 27, 201422FIMS Annual Comprehensive Training Data Gathering Methods “Deferred Maintenance and Repair Needs... “Complete a CAS for each asset no later than 1,826 days (five years) following its acquisition, its previous CAS, or sooner” DROMa Sec. 2(c)(ii)

23. March 27, 201423FIMS Annual Comprehensive Training Data Gathering Methods “Deferred Maintenance and Repair Needs... “Complete a CAS for each asset no later than 1,826 days (five years) following its acquisition, its previous CAS, or sooner” DROMa Sec. 2(c)(ii)

24. March 27, 201424FIMS Annual Comprehensive Training Data Gathering Methods “Deferred Maintenance and Repair Needs... “When conducting multiple CAS on a single asset: (1) Complete surveys for all component systems within a single fiscal year; and (2) Note each survey date.” DROMa Sec. 2(c)(iii)

25. March 27, 201425FIMS Annual Comprehensive Training Data Gathering Methods “Deferred Maintenance and Repair Needs... “[D]etermine for each real property asset... Whether or not component system deficiencies have exceeded their optimum period as of the end of the fiscal year.” DROMa Sec. 2(c)(iv)(4)

26. March 27, 201426FIMS Annual Comprehensive Training Data Gathering Methods “Deferred Maintenance and Repair Needs... “Some sites will additionally note utility consumption, conservation opportunities, and potential betterments during their CAS.” DROMa Sec. 2(c)(iv) Commentary

27. March 27, 201427FIMS Annual Comprehensive Training Data Gathering Methods “Deferred Maintenance and Repair Needs... “Use the following sources only to support or corroborate CAS results: (1) Unexecuted corrective maintenance work orders, and, (2) Special studies or inspection reports (e.g., elevator or roof inspections).” DROMa Sec. 2(c)(vii)

28. March 27, 201428FIMS Annual Comprehensive Training Data Gathering Methods DROMa Sec. 2(c)(ix) FROM YEAR to 2014 INFLATORS 20131.02 20121.03 20111.05 20101.07 20091.09 For example: DM 2010 = $10,000 DM 2014 = DM 2010 X 1.07 DM 2014 = $10,700... or use R.S. Means Use for either deferred maintenance - or - repair needs

29. March 27, 201429FIMS Annual Comprehensive Training Data Gathering Methods “Deferred Maintenance and Repair Needs... “Select person(s) to determine an asset’s optimum period who: (1) have not participated in its CAS; and, (2) support real property oversight at the site.” DROMa Sec. 2(c)(x)

30. March 27, 201430FIMS Annual Comprehensive Training Data Gathering Methods ConsiderationIncluded AssetsExcluded Assets Inspection frequencyAt least once in five years Inflate asset’s deferred maintenance Annually except in CAS years Corrective maintenance past optimum period no longer needed Reduce deferred maintenance accordingly Do not reduce deferred maintenance Corrective maintenance’s optimum period now FY 2014 or later Reduce deferred maintenance accordingly Do not reduce deferred maintenance A site’s LPSO or an asset’s CSO changes Do not reduce deferred maintenance Asset’s status changes to one included in or excluded from the deferred maintenance reporting Perform a CAS and update deferred maintenance Do not reduce deferred maintenance DROMa Sec. 2(c)(xii)

31. March 27, 201431FIMS Annual Comprehensive Training Reporting Requirements “Ensure that FIMS contains a complete inventory of land parcels, buildings, real property trailers, and structures owned or leased by the Department or the General Services Administration on behalf of the Department per 41 CFR § 102–84.4” DROMa Sec. 3(a)

32. March 27, 201432FIMS Annual Comprehensive Training Reporting Requirements “Submit in a spreadsheet quarterly maintenance information that includes both direct and indirect funded maintenance costs incurred in each quarter of FY 2014 by program and by site.” DROMa Sec. 3(b)(i)

33. March 27, 201433FIMS Annual Comprehensive Training Reporting Requirements “Enter a value of zero when... [s]ite management has no valid basis for estimating the cost.” DROMa Sec. 3(b)(ii)(2)

34. March 27, 201434FIMS Annual Comprehensive Training Reporting Requirements “Record in each asset’s FIMS Inspection Date the date of the final CAS during the fiscal year.... Do not enter future dates.” DROMa Sec. 3(c)

35. March 27, 201435FIMS Annual Comprehensive Training Reporting Requirements DROMa Sec. 3(d)

36. March 27, 201436FIMS Annual Comprehensive Training Reporting Requirements Deadline DateTask 09/30/2014Populate the following FIMS Fields for FY 2014... deferred maintenance... 11/07/2014Populate the following FIMS Fields for FY 2014... Annual Maintenance Costs... Annual Operations Costs... Repair Needs DROMa Sec. 3(d)

37. March 27, 201437FIMS Annual Comprehensive Training Reporting Requirements “The SRPO will fulfill the Department’s reporting obligations using the data as submitted by the sites without further computations, subject to the exceptions outlined in Appendix B of this guidance.” DROMa Sec. 3(e)

38. March 27, 201438FIMS Annual Comprehensive Training Definitions Sources DROMa Sec. 4

39. March 27, 201439FIMS Annual Comprehensive Training Appendix A “Hours of Operation” DROMa App. A

40. March 27, 201440FIMS Annual Comprehensive Training Appendix A Central Heating & Cooling DROMa App. A

41. March 27, 201441FIMS Annual Comprehensive Training Appendix A Rent DROMa App. A

42. March 27, 201442FIMS Annual Comprehensive Training Appendix B Applying Your Data DROMa App. B

43. March 27, 201443FIMS Annual Comprehensive Training Appendix B “Determining the sufficiency of either planned or actual maintenance investments in a single year using the National Research Council Federal benchmark of between two and four percent of replacement value, with the expectation of an additional one to two percent... when the asset condition index of a program’s considered portfolio falls below 0.95.” DROMa App. B(1)(a)

44. March 27, 201444FIMS Annual Comprehensive Training Appendix B “Annual actual maintenance... “Usage Codes: All except for 3000 series programmatic real property structures. “Replacement values... “Usage Codes: All” DROMa App. B(1)(b) and (c)

45. March 27, 201445FIMS Annual Comprehensive Training Appendix B “The SRPO will prepare for publication the sum of all of the asset-level deferred maintenance... “Status: Operating, Operational Standby, Shutdown Pending Transfer, Operating Pending D&D, and Operating Under an Outgrant” DROMa App. B(2)(b)

46. March 27, 201446FIMS Annual Comprehensive Training Appendix B “The SRPO will report to auditors under a long-standing courtesy the... deferred maintenance [of excluded assets]” DROMa App. B(2)(c)

47. March 27, 201447FIMS Annual Comprehensive Training Appendix B “The SRPO will submit the sum of each asset’s operations and annual actual maintenance costs. For more details, see the annual Federal Real Property Profile reporting guidance memorandum issued by the SRPO.” DROMa App. B(3)

48. March 27, 201448FIMS Annual Comprehensive Training “For Further Information...” Ivan Graff (202) 586-8120 Ivan.graff@hq.doe.gov DROMa Sec. 5(a) Aerial Photo of Y-12 (Late 1940’s) Get the Q & A’s here: http://go.usa.gov/Kpk4