Office of Science U.S. Department of Energy

Office of Science

U.S. Department of Energy

2/19/04

U.S. Department of Energy’sOffice of Science

Office of Science “Rollout”February 19, 2004

SC-82

Overview of DOE Order 430.1B

Real Property Asset Management

Office of Science

U.S. Department of Energy

2/19/04

Implements DOE Policy 580.1, Management Policy for Planning, Programming, Budget, Operation, Maintenance and Disposal of Real Property

Consistent with the February 4th, 2004 Executive Order 13327, Federal Real Property Asset Management: “It is the policy of the United States to promote the efficient and economical use of America's real property assets and to assure management accountability for implementing Federal real property management reforms. Based on this policy, executive branch departments and agencies shall recognize the importance of real property resources through increased management attention, the establishment of clear goals and objectives, improved policies and levels of accountability, and other appropriate action.

Performance–based approach

Links planning, programming, budgeting and evaluation to program mission projections and performance outcomes

1

Office of Science

U.S. Department of Energy

2/19/04

A “How To” document

Stand alone document

2

Office of Science

U.S. Department of Energy

2/19/04

Ten Year Site Plan (TYSP)

Roles and responsibilities among federal organizational entities

Facilities Information Management System (FIMS)

Performance Measures

3

Office of Science

U.S. Department of Energy

2/19/04

In Response to:

Congressional Direction

GAO Reports

Need to Update LCAM due to organizational changes

4

Office of Science

U.S. Department of Energy

2/19/04

Recognizes deterioration of DOE facilities and the inability to evaluate/address their readiness and maintenance status

Supports efforts to develop a directive establishing requirements for DOE-wide implementation of all facilities and infrastructure programs

Requires Ten Year Site Plans

Requires assignment of federal staff at site and HQ for oversight of F&I activity and to ensure accountability

5

Office of Science

U.S. Department of Energy

2/19/04

Elimination of Excess Facilities

Unacceptable degree of facility deterioration is a result of insufficient funding for maintenance

6

Office of Science

U.S. Department of Energy

2/19/04 7

GAO-03-122 “Federal High Risk Series” , Jan. 2003, places Federal Real Property as a High Risk due to:

Deteriorated and outdated property portfolio

Excess and underutilized inventory

Lack of facility data

No comprehensive and integrated planning

GAO-03-100, Jan. 2003, Major Management Challenges and Program Risks, Department of Energy

DOE faces major challenges in revitalizing infrastructure

Office of Science

U.S. Department of Energy

2/19/04

Issued May 20, 2002 Objective is to establish a holistic planning,

programming, budgeting and execution (PPB&E) process that links real property assets, and the resources dedicated to them, to mission requirements and performance

OECM will:Lead implementation of this PolicySupport the Deputy Secretary/Chief Operating

Officer and line management

9

Office of Science

U.S. Department of Energy

2/19/04 10

DOE Program Offices have line responsibility

DOE functional offices have staff responsibility for assisting line management with implementation of this policy, and related directives

Office of Science

U.S. Department of Energy

2/19/04

F&I Steering Committee (FISC)Convened / Chaired by OECMHQ & Field Reps from EE, EM, DE, NNSA, and SCChartered F&I Working Group (FIG) to draft order

FIG efforts included:Fifteen member working group from field and HQ

organizationsFive three day working sessionsFISC GuidanceOutreach to 80 points of contactEFCOG and Lab Council InputReview of practices of other Federal Agencies

8

Process For Drafting RPAM

Office of Science

U.S. Department of Energy

2/19/04

RPAM order issued 9-24-03

Requirements of the order must be fully implemented by September 30, 2004

Implements DOE P 580.1

Cancels DOE order 430.1A Life-Cycle Asset Management dated 10-14-98

Consistent with the new Executive Order 13327 “Federal Real Property Management” issued February 4, 2004

11

Office of Science

U.S. Department of Energy

2/19/04

Applies to all DOE elements with responsibility for real property assets, including NNSA, except Naval Reactors/Naval Propulsion Program

Contractor requirement document sets applicable requirements for Site/Facility management contracts

Applies to other-than Site/Facility management contracts on a case by case basis

12

Office of Science

U.S. Department of Energy

2/19/04

PlanningReal EstateAcquisitionMaintenance and RecapitalizationDisposition and Long-Term StewardshipValue EngineeringPerformance Goals and Measures

13

Office of Science

U.S. Department of Energy

2/19/04

Overarching function within real property asset management

Site planning must be consistent with DOE P 430.1 Land and Facility Use Planning

For active sites, the TYSP will document site planning and performance

14

Office of Science

U.S. Department of Energy

2/19/04 15

TYSP will address how assets support:Departments strategic planSecretary’s 5-year planning guidanceLandlord and Program guidance

SC Facilities for the FutureSC Strategic PlanSC Future of the Laboratories (coming 2004)

TYSP will be updated and submitted annually

SC has drafted preliminary guidance; detailed guidance to go out by April 5st for Nov 1st submission

Office of Science

U.S. Department of Energy

2/19/04

REAL ESTATE

16

Encompasses key activities over the life cycle of real property assets

Secretary’s real estate authority can be re-delegated

All real estate actions to acquire, manage, and dispose of real property must be reviewed and approved by a DOE Certified Realty Specialist (CRS) before executing the action

Office of Science

U.S. Department of Energy

2/19/04

Real Estate cont.

17

Land use planning must be established through a recognized process approved by the LPSO

Land use plan must be kept current and support the TYSP

Office of Science

U.S. Department of Energy

2/19/04 18

LPSOs/CSOs/PSOs must annually identify all project/program mission terminations to site/field managers

Site/field managers must annually report to responsible LPSOs/CSOs/PSOs real property that is not utilized

LPSOs/CSOs must report to OECM no later than 12/31 of each year property that is not needed to support program missions

Real Estate cont.

Office of Science

U.S. Department of Energy

2/19/04 19

90 day notification to HQ for all disposals by sale or lease

Real Estate cont.

Office of Science

U.S. Department of Energy

2/19/04 20

FIMS data used to meet routine reporting requirements

Site/Field managers must ensure that FIMS data is verified annually as complete and accurate

FIMS dollar values must be reconciled by asset type with the accounting Management Analysis Reporting System (MARS)

Deferred, required, and annual maintenance must be reported in FIMS

Office of Science

U.S. Department of Energy

2/19/04 21

FIMS data is used to determine if individual sites have met the expectations for the Asset Utilization Index (AUI)

FIMS data is also used in determining if the expectations for the Asset Condition Index (ACI) performance measure have been met

Office of Science

U.S. Department of Energy

2/19/04 22

FIMS will be available via the internet FIMS data must be archived after disposal of DOE owned real property assetsOutgrants of DOE owned real property assets must be reported in FIMSReal property data in other reporting systems must be consistent with FIMS data

Office of Science

U.S. Department of Energy

2/19/04 23

Strategy for meeting mission need: construction, Alternative Finance, other

Must consider Life Cycle costs

Line items vs General Plant Projects (GPP)

Institutional General Plant Projects (IGPP)

Square Foot Off-set for new construction at each site, unless secretarial waiver approved for elimination at another site

Office of Science

U.S. Department of Energy

2/19/04 24

Sustainment – maintenance, repair or replacement

Recapitalization - alterations, betterments and rehabilitation

Sustainment requirements must be developed and summarized in the TYSP

Recapitalization plans are also required to be developed and included in the TYSP

Office of Science

U.S. Department of Energy

2/19/04 25

Each site is to have a Maintenance ProgramCondition assessments

Work control system

Management of deferred maintenance

Method to prioritize maintenance projects

Cost accounting systems to budget and track maintenance expenditures

Office of Science

U.S. Department of Energy

2/19/04 26

Condition Assessments must be performed on all real property assets at least once during any 5-year period using industry standard practices

Condition Assessment Systems (CAS)Inspections

Determine asset deficienciesIdentify when corrective actions will be accomplished and their cost

CAS software

Office of Science

U.S. Department of Energy

2/19/04 27

Importance of real property assets to mission

Mission essentialMission determinationFIMS

Office of Science

U.S. Department of Energy

2/19/04 28

Disposition includes:StabilizingPreparing for reuseDeactivationDecommissioningDecontaminatingDismantlingDemolishingDisposing of real property assets

Office of Science

U.S. Department of Energy

2/19/04 29

Long – Term stewardship includesPhysical controls, e.g. fences, markers, signsInstitutional controls, e.g. notations on maps, records, and deedsInformation and other mechanisms needed to ensure protection of people and the environment

Office of Science

U.S. Department of Energy

2/19/04 30

Property transfers to complete disposition

Transfer document

Records, data collection, management and reporting requirements

Office of Science

U.S. Department of Energy

2/19/04 31

Value Engineering requirements are provided in the following documents:

1. Office of Management and Budget (OMB) Circular A-131, Value Engineering, dated 5-21-93

2. Public Law 104-106, Section 4306, Value Engineering for Federal Agencies (41 U.S.C. 401et seq.)

3. DOE N413.2, Value Engineering, date 12-30-02; and

4. ASTM Practice 1699-00, Standard Practice for Performing Value Analysis for Buildings and Building Systems

Office of Science

U.S. Department of Energy

2/19/04 32

Projects < or = to $5M

Projects > $5M

Office of Science

U.S. Department of Energy

2/19/04 33

LPSO/CSO to establish targets

Site/Field Manager development of site specific measures

Corporate measures for AUI and ACI are included in DOE O 430.1B

Office of Science

U.S. Department of Energy

2/19/04 34

Area of Justified Holdings

Area of Current HoldingsAUI =

Information Source Facility Information Management System (FIMS)

Asset Utilization Index

By Program or individual sites

1.00 >AUI > 0.90

0.90 >AUI > 0.75

0.75 >AUI

Satisfactory

Marginal

Unsat

AUI Performance Measures

DOE Order 430.1B RPAM

AUIModule

Outcome Drivers-Ten Year Site Plans- Utilization Surveys- Acquisition Program - Resource allocation

Outcome Drivers- Excess Elimination- D&D Program- Ten Year Site Plans- Resource allocation- Budget execution- Acquisition Program

Justified Assets

Area of all real property

assets

Justified Assets Current Assets

Information Source Area of justified holdings through annual utilization surveys as reported in Facility Information Management System (FIMS)

Asset Utilization Index

35

Office of Science

U.S. Department of Energy

2/19/04 36

ACI = 1 – DM/RPV

Asset Condition Index

Information Source Quantitative Condition Assessment Surveys using Industry Standards as reported in FIMS

Deferred Maintenance

Outcome Drivers- Maintenance Program- Recapitalization Program- Excess Elimination- Resource allocation- Budget execution- Ten Year Site Plans

Outcome Drivers- Excess Elimination- Resource allocation- Budget execution- Ten Year Site Plans- Acquisition Program

Information Source Facility Information Management System (FIMS)

Asset Condition Index

Program

SiteSite

1.00 >ACI > 0.90

0.90 >ACI > 0.75

0.75 >ACI

Satisfactory

Marginal

Unsat

ACI Performance Measures

DOE Order 430.1B RPAM

ReplacementPlant Value

(RPV)

ACIModule

(ACI = 1- DM / RPV )

37

Office of Science

U.S. Department of Energy

2/19/04

To assess budgets for intended use, following measures are established:

LPSOs/CSOs will review budget execution against IFI Crosscut Budget quarterly

Assessments by LPSOs/CSOs to be submitted to OECM

38

Office of Science

U.S. Department of Energy

2/19/04

OECMServes as Department of Energy’s principal point of contact

Develops policies and procedures

Develops and monitors performance measures

Qualified DOE Federal facilities management staff

39

Office of Science

U.S. Department of Energy

2/19/04

LPSOsProvides annual program direction, guidance and oversight for Order ImplementationIssue program missions, budgets, and planning estimates covering a 10-year planning horizonApprove TYSPs and land-use management plans for their sites

CSOs/PSOsAlso issues program missions, budgets, and planning estimates covering a 10-year planning horizonApprove TYSPs related to their programmatic responsibilities at related sites.Ensure Program direction and guidance is consistent with LPSO/CSO/PSO agreement for site real property matters

40

Office of Science

U.S. Department of Energy

2/19/04

Site/Field ManagersAccountable to LPSO for real property stewardship at siteEnsures qualified DOE facilities staff is available for implementation of order at siteCoordinates real property assets and budgets to meet program missionsEnsure that FIMS data is verified annually as complete and accurateIdentifies mission essential real property assetsSubmit a coordinated TYSP to LPSO

41

Office of Science

U.S. Department of Energy

2/19/04

Site Manager• Geographic Area Coordination• Host for tenant Programs / Activities• Infrastructure Support Provider•TYSP Coordinator

LPSO CSO/PSO

Field ProgramOffice

Site

Mission / P

rogram /

Requirem

ents / Resources

TYS

P ( P

rogram / Infrastructure)

Req

uire

men

ts /

Res

ourc

es

TYSP (

Progr

am /

Suppo

rt)

Mis

sion

/ Pro

gram

• Infrastructure Support Agreement Btwn Office and Site Manager

• TYSP Coordination

HQ Coordination

OMBEOECM

Departmental• Policy / Oversight• PPB &E• Metrics• FISC

Infrastructure

Roles & Responsibilities

42

Office of Science

U.S. Department of Energy

2/19/04

Part of RPAM Order

Areas coveredPlanningDocumentationFIMSReal EstateMaintenanceDisposition and Long-Term StewardshipValue Engineering

43

Office of Science

U.S. Department of Energy

2/19/04

RPAM is the product of a cross-program and field participatory effort

Corporate level, performance-based approach links real property asset management to program missions and performance outcomes

Directs identification and balancing of acquisition, sustainment, recapitalization and disposal requirements into a comprehensive Ten Year Site Plans

44

Office of Science

U.S. Department of Energy

2/19/04

This presentation was created by:The U.S. Department of Energy

Chicago Operations OfficeLaura TrocheHeidi RamirezGloria Baldwin

Max RosenquistSteve Neus