1. FRPP Data Issues FIMS/Real Estate Workshop Palm Springs, CA June 2-6, 2008 Mark Gordy & Gayle Smith Energy Enterprise Solutions

2. Background The Federal Real Property Council (FRPC) requires that each federal agency provide an annual report of 24 real property data elements The annual report is electronically submitted to a database that was developed by GSA called the Federal Real Property Profile (FRPP) An interface was developed to extract and format data from FIMS based on an XML template provided by GSA FIMS data is loaded, staged, validated and confirmed in the FRPP Deadline is December 15, 2008

3. FRPC Data Elements Main Location Property Sequence Number* Location City Location State Location County Location Country* Location Congressional District Location Zip Code Site Name, Site Number, and Area Number* Restrictions Property Type Usage Code Owned/Ingrant Indicator Status Historic Designation Reporting Agency* Using Organization Gross Sqft Status Utilization & Net Usable Sqft Replacement Plant Value Deferred Maintenance Mission Dependency Operating Cost (Site Level) and Annual Actual Maintenance (Asset Level) * System Generated

4. Importance of Data Accuracy Highly visible to the Office of Management and Budget (OMB) Addition of real property to the President’s Management Agenda DOE Scorecard reflects reported FIMS completeness/data quality

5. GSA Inquiry in January 2008 Assets with “All Other” for the Usage Code Assets with $0 for the RPV Assets with $0 annual Operating Cost Assets with 0 or 100 Condition Index

6. FRPP Data Anomaly Checks for FY08 Estimated Disposition Year = 2008 or a prior fiscal year Actual Maintenance > Replacement Plant Value Actual Maintenance = $0 Excess Indicator = “Yes” and the Status is Operating  Operating, Operational Standby, Operating Pending D&D, Operating Under an Outgrant Excess Indicator = “Yes” and the asset is designated as Mission Critical or Mission Dependent, Not Critical Excess Indicator = “No” and the Excess Year is equal to 2008 or a prior fiscal year Site level operating cost must be greater than or equal to the total asset level operating cost input by the Site

7. FRPP Data Anomaly Checks for FY08 Deferred Maintenance  Replacement Plant Value  Creates a negative Condition Index which cannot be reported to the FRPP  FIMS could be modified to not allow DM to exceed RPV Zero Gsft for Buildings and Trailers Zero Quantity for OSF’s RPV, DM, AM = $.01, $1, $,2, $5…  In the course of reviewing the data, a minimum threshold will be established  For values that fall below the minimum threshold, Sites will be asked to justify Using Organization contains a value other than “8900”(DOE) and the Outgrant Indicator is set to “No”

8. Points of Caution The Main Location refers to the street address of the asset. For assets with no street address, you can report the street address of the main gate. For assets not located at the Site, it is acceptable to report the zip code. The Main Location should not include the following:  Street Corners or Cross Roads  Building Name and Numbers  City, State, PO Boxes  Combination of street address with the zip code For DOE Owned Outgranted assets, Deferred Maintenance, Actual Maintenance, Required Maintenance and Operating Cost are required  Sites will be required to justify values that fall below the minimum threshold

9. Points of Caution DOE and Contractor Leases  If DOE is responsible for maintaining the asset: Deferred Maintenance is required Ensure that the Interior and/or Exterior Maint fields on the Ingrant2 window are set to “Grantee” The Other Cost field on the Ingrant2 window, should reflect the total Operating and Maintenance (O&M) Cost  If DOE is not responsible for maintaining the asset: Deferred Maintenance should be input as $0 Ensure that the Interior and Exterior Maint fields on the Ingrant2 window are set to “Grantor” Note: To further ease the entry process, some consideration should be given to combining the Exterior and Interior Maint fields on the Ingrant2 window so that we have one field called Maintenance.

10. Dispositions DOE.BY DOE

11. Disposition Data A large number of errors in the disposition data were discovered prior to our FRPP FY07 submission Disposition reporting issues resulting from our FY06 submission led to the Department’s scorecard Progress rating dropping from green to yellow last year A significant amount of time was spent cleaning up the disposition data prior to our FY07 submission Disposition data is of enormous interest to the Office of Management and Budget (OMB)

12. Key Points to Keep in Mind Lease Expirations  Expirations are leases that expire at term or are leases we are occupying month to month and are not renewing  Disposition Value and Net Proceeds are not applicable for lease expirations

13. Key Points to Keep in Mind Lease Terminations  Lease termination is where we lease space for a firm term and vacate prior to the end of the term  Disposition Value should represent the Government’s gross cost avoidance. Basically, this would be the cost savings for an early termination of a lease.  Disposition Value must be  $0  Net Proceeds should represent the Government’s gross cost avoidance minus any Government cost associated with terminating the lease before the expiration date in the contract  Net Proceeds in some cases can be $0 or a negative number

14. Key Points to Keep in Mind Lease Termination – Disposition Value and Net Proceeds  Scenarios If a lease was terminated 5 months early and the monthly rent is $100K, then the Disposition Value would be $500K If there were no repair or other costs associated with returning the property to the original condition, then the Net Proceeds would also be $500K If we had to spend $50K on the property to get it into condition to return to the owner, the Net Proceeds would be $450K If we had to pay a termination penalty of one month’s rent ($100K), then the Disposition Value would be $400K and the Net Proceeds would be $350K If the terms of a lease require we pay full value for an early termination, then the Disposition Value would be $0. If we had to further spend $50K to prepare the property for return, the Net Proceeds would be -$50K (negative $50K).

15. Key Points to Keep in Mind Federal Transfers would be used in the event a facility was transferred to another federal agency such as DOD. It is not intended to reflect internal transfers within Programs, Contractors, Local Government or the Public. When Federal Transfer is used for disposition, the Recipient field should contain the name of a federal agency For Admin Corrections, please ensure the Notes field contains an explanation for the use of this disposition method For a Disposition Method of Other, please ensure the Notes field contains an explanation

16. Key Points to Keep in Mind In most cases, the Disposition Value should not be equal to $0 Disposition Value should equal RPV for Federal Transfers, Demolition, Public Benefit Conveyance, and Other disposition methods Verify the Net Proceeds for Negotiated Sales represent proceeds from a sale less disposal costs Ensure that records in the active database do not contain disposition status options

17. Questions/Comments