Technical Assessment of the Capital Facility Needs of the National Institute of Standards and Technology (2023) / Chapter Skim
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5 Practices of Portfolio Management and Capital Project Planning
5 Practices of Portfolio Management and Capital Project Planning
Pages 67-94
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From page 67... ...
PORTFOLIO MANAGEMENT PROCESSES FOR CAPITAL PROJECTS This section provides an overview of the capital facility planning tools that are used by NIST and OFPM. It should be noted that the preparation and use of these plans are consistent with the DOC Real Property Management Manual (DOC 2017)
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From page 68... ...
NIST's master plan implementation plan is typically referred to by OFPM as the "Integrated Master Plans Implementation Report." In 2017 and early 2018, NIST completed two campus master plans that would be used for long-range planning, expansion, and modernization over a 20-year horizon. Both the Gaithersburg and Boulder master plans were commissioned in response to institutional policy and the evolving mission of the laboratories and the greater demand for highly controllable research environments.
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From page 69... ...
. DOC has set a goal of a standard utilization rate for office space set at 170 usable square feet per person.1 Finding 5-1: The master plans provide architectural drawings, analysis, and assessments, but provide little information relevant to the program requirements of NIST laboratories at the two sites.
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From page 70... ...
GSF 5,050,000 est. GSF ± 1,400,000 RENOVATION Builidng 101 345,818 General Purpose Laboratories 1,277,587 Other 460,560 Total Gross Square Feet (GSF)
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From page 71... ...
Chilled Water Plant Expansion 6,200 Addition to 302/New cooling tower Subtotal 486,200 Independent Projects Site: East-west pedestrian way, trails, stormwater management, meadows, reforestation Standard Reference Materials Building 54,000 Research Strong Floor Building 15,000 Research Fire/Wind Tunnel Building 15,000 Research Building 207 Expansion-Robotics 17,000 Research AML Addition 115,000 Research NCNR Expansion 138,000 Research/Renovation tbd Building 202 Renovation-Engineering Mechanics 78,575 Research Building 230 Renovation-Fluid Mechanics 38,366 Research Building 231 Renovation-Industrial 75,131 Research Building 233 Renovation-Sound 42,881 Research Building 237/238 Renovation-Non-magnetic 7,061 Research Subtotal 354,000 242,014 20-Year Totals 1,407,815 2,083,965 Gross Square Feet * Renovation GSF is total building -- Renovation scope has not been determined for any building except GPLs, which will undergo complete modernization.
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From page 72... ...
• A parking structure to replace the parking lot spaces that will be lost when used for new building sites. • The construction of new facilities (Research Buildings II, III, and IV)
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From page 73... ...
The 2017 Boulder Master Plan provides a construction plan that is summarized below in Campus FigurePlan Master 5-4. The Boulder Master Plan includes the following elements: • Research Buildings Phasing: • Building 1 renovations with additions • Repurposing through renovation of Building 3 with an addition • Replacement of older laboratory Buildings 2, 2A, and 24 with a new research building • Changes in vehicle circulation and the addition of a parking garage to create a building site for the new research buildings • Demolition of Buildings 2 and 2A • Campus Center Phase: Reuse Building 24 to centralize employee amenities like a health center, fitness center, and cafeteria for the campus in one location • Visitor Center, Parking, and Screening Phase: Since the Boulder campus does not have a security fence, the security screening and visitor access issues were analyzed, and solutions associated with changes in parking and personnel screening were developed • Management Resource Center: Construction of a single building to replace 10 temporary structures currently used by the NIST management resources staff • Childcare Center Replacement: Demolition of the existing structure and replacement with a new center The committee's visit to the Boulder campus focused on the research facilities and the poor physical condition and functionality of temporary buildings as documented in Appendix C
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From page 74... ...
Swing space for Building 4, 5 occupants Completion would free up some space in B1 Demolition/removal of 10 support buildings Roadway, parking, utility yard modifications Installation of solar collection field NOAA Research Building New research building or expansion of Building 34 Independent package; could proceed at any time Roadway, parking modifications Road/truck maneuvering expansion at Building 22 Childcare Center New Childcare Center, replacing existing Building 26 Independent package; could proceed at any time. Landscaped play areas Must be completed if/when future lab buildings are desired.
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From page 75... ...
values, all cast in present day worth by discounting future expenditures or income in accordance with present value theory. As the master plans are site-wide conceptual plans, there are no project-level, life-cycle cost analyses, though NIST does some energy planning as part of their capital planning strategy as discussed later in this chapter (Chapter 6 TABLE 5-1 Comparison of DOC Real Property Manual Strategic Management Portfolio Approach and the NIST Master Plan DOC Strategic Portfolio Management Approacha NIST Campus Master Plan Process Contextualized Decision-making: Examination beyond the The strength of the Master Plans is that it looked at the specific transaction or property to comprehend how one campuses as a whole and was not a building asset plan, the particular action or building fits within the larger framework of other planning alternative in the DOC Real Property Manual.
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From page 76... ...
The DOC Real Property Manual requires NIST to comply with enterprise risk management, the National Historic Preservation Act, and the Energy Independence and Security Act (EISA) , all which have a significant impact on determining priority, cost, and schedule of critical projects.
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From page 77... ...
of alternatives for individual projects and potentially engage with the DOC Office of Real Property Programs (ORPP) , whose role it is to "Assist OUs in developing asset and portfolio management plans, and in conducting life-cycle cost/benefit analyses of strategic and tactical alternatives" (DOC 2017, p.
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From page 78... ...
SOURCE: Department of Commerce, 2017, Real Property Management Manual, Second Edition, https://www.osec.doc.gov/ ofeq/orpp/real_property_management_manual_revised_march_2017.pdf. IMPLEMENTATION OF THE MASTER PLANS Chapter 4 discussed in detail the history of funding for NIST facilities.
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From page 79... ...
The report: • Considers strategic portfolio management • Prioritizes capital improvement • Analyzes various capital budget scenarios (including those presented above) Over the course of FY 2020 NIST's leadership first developed the top five ranked projects on both of the Boulder and Gaithersburg campuses and then combined them to develop the top ranked list of projects for the implementation report.
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From page 80... ...
FY 20 FY25 FY 30 FY35 FY 40 FY45 FY 50 FY55 B228 Contract Award $343,885,553 B3 ADDITION Contract Award $28,369,918 B101 Contract Award $116,629,685 B221 Contract Award $371,337,404 RESEARCH BLDG A Contract Award $188,106,585 GATE F S/F/I Contract Award $25,232,607 B220 Contract Award $306,591,647 CHILDCARE Contract Award $20,017,888 B223 Contract Award $315,565,799 B24 Contract Award $44,800,685 B225 Contract Award $307,117,028 GRAPHIC LEGEND Program of Requirements Phase Procurement Phase Design-Build Phase Furniture, Fixtures, and Equipment + Moves Phase * Funding to occur every April 15 *
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From page 81... ...
Conclusion 5-8: The committee reviewed these two scenarios for adequacy in addressing the documented impacts on NIST mission and found both plans are inadequate because the excessively long schedule fails to solve NIST's immediate mission gaps in a reasonable time frame. IMPLEMENTATION PLAN TO COMPLETE MASTER PLANS EXPEDITIOUSLY During the period of this committee's study and at the direction of DOC to expedite facilities revitalization, OFPM developed a 2022 Draft NIST Infrastructure Plan that included a Sub-Plan for Recapitalization based an annual CMR budget of $300-$400 million.5 This revised approach called for the 2022 Draft Infrastructure Plan to be complete in three phases for Gaithersburg and two phases for Boulder.
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From page 82... ...
The accelerated project delivery provides the potential for considerable FY 20 FY25 FY 30 FY35 FY 40 FY45 FY 50 FY55 B228 Contract Award $343,885,553 B3 ADDITION Contract Award $29,221,015 B101 Contract Award $123,763,345 B221 Contract Award $405,940,027 RESEARCH BLDG A Contract Award $211,658,141 GATE F S/F/I Contract Award $28,391,812 B220 Contract Award $350,156,717 CHILDCARE Contract Award $23,552,010 B223 Contract Award $371,220,267 B24 Contract Award $54,264,344 B225 Contract Award $566,664,053 GRAPHIC LEGEND Program of Requirements Phase Procurement Phase Design-Build Phase Furniture, Fixtures, and Equipment + Moves Phase * Funding to occur every April 15 *
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From page 83... ...
Addition and Site Improvements 10 3 Research Building B to replace B2, B24, and B2A -- New Construction 60 7 Research Building A and Parking Garage -- to replace B2, B24, B2A and parking lots 220 9 Child Care Center -- Replacement 20 Campus Center -- Replace or Renovate B24 40 10 Building 1 Renovation: East Spine, Wings 1 and 2, and Head house 200 Management Resources Building -- Replacement of numerous temporary 80 a Impact of CMR funding at $300-$400 million/year on Boulder Draft Sub-Plan for Recapitalization (CMR-funded) completion (cost esti mates are in 2022 dollars)
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From page 84... ...
Recapitalization projects through major renovation or replacement facilities will eliminate 78 percent of the current repair needs documented in the Facility Assess ment, making this most effective means to address facility condition, functionality, and performance issues in one effort. EVALUATION OF PROJECT COSTS One of the statement of task's four focus areas is "evaluating at a high level the completeness, accuracy, and relevance of cost estimates (already developed by or for NIST)
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From page 85... ...
.ÿ'-+ÿ4,$&$ÿ4,5C'2* +ÿ&, to the Federal Real Property Profile estimates NIST's existing laboratory buildings replacement cost to be $613/ worksheet 3,703,700 7 4,5C)
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From page 86... ...
Evaluation of Renovation Costs for Laboratory Facilities To evaluate the quality of the cost estimating, the committee looked at the Gaithersburg laboratory renovations, which did not include additions to the existing structures. Table 5-5 shows the relationship between the project cost and information that NIST reports in the Federal Real Property Profile.
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From page 87... ...
Given that the project backlog is a relatively small portion of the overall project cost, and that most of the renovation projects are costing close to OFPM's dollars per GSF for new laboratory construction, the costs seem to be high for a renovation project. However, the committee allows as that these projects are in the out-years and are still in the conceptual planning phase, therefore as noted before, cost estimates are not expected to have a high level of certainty and could be a much as 100 percent over the final construction cost given the level of planning.
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From page 88... ...
is $2,340/GSF."9 Evaluation of Costs for Non-Laboratory Facilities The committee looked at the current project cost to replace the Boulder Child Care Center as an example of a simple, non-laboratory facility for which there were two good benchmarking projects at the time of the report. The Boulder Child Care facility is proposed as a design and build project for a 13,000 GSF replacement facility for the existing 104-child facility.
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From page 89... ...
CAPITAL ACQUISITION STRATEGIES The committee is most hopeful that NIST will be supported by DOC and OMB in the effort to recapitalize existing facilities and construction for new capabilities. Certainly, the physical condition, functionality, and suitability of the current facilities warrant a large capital investment, however the DOC Real Property Manual advises OUs to consider alternative mechanisms if the budget exercise becomes futile.
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From page 90... ...
Conclusion 5-12: An evaluation of ESPC and UESC in the future as part of the portfolio management strategy requirement for OUs to look at cost analysis and risk management is worthwhile. With uncertainty in funding as a known risk, these alternative mechanism for implementing the utility system projects may be a solution in lieu of greater CMR funding for utility system projects.
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From page 91... ...
The Boulder Master Plan has three projects to replace existing non-laboratory buildings with new construction: the childcare center, the campus center, and the Management Resources Building. These projects are currently scheduled at the end of the implementation plan so as not to compete with critical research buildings for limited CMR funding.
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From page 92... ...
The committee has asked but not seen where there is a consistent budget process within NIST to ensure that all future recurring costs including operations and maintenance are part of the budget for new facilities. DOC requires the analysis of life-cycle cost as part of portfolio management.
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From page 93... ...
15 "Technical Assessment of the Capital Facility Needs of the National Institute of Standards and Technology," presentation by Robert Vaughn, NIST CFMO, and director of OFPM, to the committee on February 15 and 16, 2022.
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From page 94... ...
A performance management system is a requirement of the Chapter 4 of the DOC Real Property Management Manual. DOC requires OUs to provide the performance measures used by DOC to track and manage its portfolio including those in the Federal Real Property Plan.
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