Strategies to Renew
Federal Facilities
______
Committee on a Strategy to Renew
Federal Facilities
Board on Infrastructure and the
Constructed Environment
Division on Engineering and Physical
Sciences
Consensus Study Report
NATIONAL ACADEMIES PRESS 500 Fifth Street, NW Washington, DC 20001
This report was supported by a series of contracts between the National Academy of Sciences and the sponsor agencies of the Federal Facilities Council. Any opinions, findings, conclusions, or recommendations expressed in this publication do not necessarily reflect the views of any organization or agency that provided support for the project.
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International Standard Book Number-13: 978-0-309-69686-9
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Suggested citation: National Academies of Sciences, Engineering, and Medicine. 2023. Strategies to Renew Federal Facilities. Washington, DC: The National Academies Press. https://doi.org/10.17226/26806.
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COMMITTEE ON A STRATEGY TO RENEW FEDERAL FACILITIES
MICHAEL A. AIMONE, Energy Management & Analytics, LLC, Chair
JAMES “JACK” DEMPSEY, Asset Management Partnership, LLC, Vice Chair
HON. MAHLON (SANDY) APGAR IV, Center for Strategic and International Studies
BILAL M. AYYUB, University of Maryland, College Park
BARBARA M. FRAUMENI, University of Southern Maine (Emerita)
DAVID J. HAUN, Haun Consulting Inc.
BRIAN J. LEPORE, Government Accountability Office (Retired)
PETER S. LUFKIN, Pomar Lane, LLC
DAVID J. NASH (NAE), Sustainable Biofuels Solutions
JANICE L. TUCHMAN, Engineering News-Record
Staff
CAMERON OSKVIG, Director, Board on Infrastructure and the Constructed Environment
JOSEPH PALMER, Senior Program Assistant
PEYTON GIBSON, Associate Program Officer
JAYDA WADE, Research Associate
RADAKA LIGHTFOOT, Finance Business Partner
BOARD ON INFRASTRUCTURE AND THE CONSTRUCTED ENVIRONMENT
THOMAS BOSTICK (NAE), RIDGE-LANE LP, Chair
HON. STEPHEN AYERS, The Ayers Group, LLC
JAMES “JACK” DEMPSEY, Asset Management Partnership, LLC
SANJIV GOKHALE, Vanderbilt University
DAVID GOODYEAR (NAE), Independent Consultant, Olympia, Washington
DAVID HAUN, Haun Consulting Inc.
ANDREW PERSILY, National Institute of Standards and Technology
CHRIS POLAND (NAE), Chris D. Poland Consulting Engineer, Canyon Lake, California
JAMES RISPOLI, Project Time and Cost, Inc.
DOROTHY ROBYN, Boston University
SHARON L. WOOD (NAE), The University of Texas at Austin
Staff
CAMERON OSKVIG, Director
JAMES C. MYSKA, Senior Program Officer
BRITTANY SEGUNDO, Program Officer
JOSEPH PALMER, SR., Senior Program Assistant
JAYDA WADE, Research Associate
RADAKA LIGHTFOOT, Finance Business Partner
Reviewers
This Consensus Study Report was reviewed in draft form by individuals chosen for their diverse perspectives and technical expertise. The purpose of this independent review is to provide candid and critical comments that will assist the National Academies of Sciences, Engineering, and Medicine in making each published report as sound as possible and to ensure that it meets the institutional standards for quality, objectivity, evidence, and responsiveness to the study charge. The review comments and draft manuscript remain confidential to protect the integrity of the deliberative process.
We thank the following individuals for their review of this report:
BAABAK ASHURI, Georgia Institute of Technology
ROBERT COFFMAN, Coffman Consultants, LLC
MAUREEN EHRENBERG, Blue Skyre IBE
CHARLES RANSOM (RANDY) GALLISTEL (NAS), Rutgers University
JOHN (JACK) KELLY, Office of Management and Budget
PATRICIA KUHL (NAS), University of Washington
MICHAEL C. LOULAKIS, ESQ., Capital Project Strategies, LLC
KATHY ROPER, International Facility Management Association
THOMAS SMITH, University of Wisconsin–Madison
LEE VINSEL, Virginia Polytechnic Institute and State University
Although the reviewers listed above provided many constructive comments and suggestions, they were not asked to endorse the conclusions or
recommendations of this report nor did they see the final draft before its release. The review of this report was overseen by Peter Marshall, Independent Consultant, and Chris D. Poland (NAE), Chris D. Poland Consulting Engineer. They were responsible for making certain that an independent examination of this report was carried out in accordance with the standards of the National Academies and that all review comments were carefully considered. Responsibility for the final content rests entirely with the authoring committee and the National Academies.
Acknowledgments
The committee acknowledges the substantial contributions of members of the Federal Facilities Council and Jim Rispoli and the federal agency senior real property officers. The committee also thanks the following, who willingly and enthusiastically volunteered their time and ideas: Get Moy, Amelia Shachoy, Michael Armes, Diana Maurer, Gina Hoffman, Jennifer Bastin, Mike McAndrew, Michael Karau, Lance Marrano, Hon. John Henderson, Marc Vandeveer, Dan Mathews, Kim Toufectis, Victoria Collin, Hon. John Conger, Jeffrey DeWitt, Ryen Tarbet, Al Diaz, Derrek Niec-Williams, Yalda Saadat, Cliff Shang, Boudewijn Neijens, Tim Hutchens, Steve Berrang, Mildred Chua, Shawn Lenahan, Paul Demit, and Justin Rice.
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Contents
1 THE PURPOSE OF AND NEED FOR THIS REPORT
The Federally Owned Building Portfolio
2 THE OPERATING CONTEXT FOR FEDERAL FACILITY RENEWAL STRATEGIES
The Basis for Federal Facility Renewal Strategies
Foundations for Federal Facility Renewal Strategies
Oversight of the Federal Real Property Portfolio by the Government Accountably Office
The Operating Context for Federal Facility Renewal Strategies
Practical Examples and Empirical Evidence of Facility Asset Management Systems in Use
Facility Asset Management Principles
4 IMPROVING ESTIMATES OF RENEWAL COSTS
The Evolution of Facility Cost Models
Two Approaches to Estimating Renewal Costs
Using Builder to Estimate Renewal Costs
Estimating Renewal Costs with an Economic Depreciation Model
The Need for Better Service-Life and Depreciation Data
Value in the Context of Federal Facilities
Risk Management and Mission Alignment
Economic Models for Analyzing Investment Options
Enterprise Risk Management Frameworks
6 BUDGETING: IMPACTFUL RESOURCE DECISION MAKING
Capital Budgets Versus Operating Budgets
Budgetary Structures for Increasing Capital Investment and Transparency
Actions to Address the Problem
7 CONCLUSIONS AND RECOMMENDATIONS
Impetus for Transformational Change
Defining the Elements of a Federal Facilities Renewal Strategy
A Biosketches of Committee Members
B Committee Interviews and Briefings
C Communicating the Message Effectively
D Doing Due Diligence: Government Accountability Office Reports on Renewal of Federal Facilities
E The Operating Context for Federal Facility Renewal Strategies