Strategies to Renew Federal Facilities (2023) / Chapter Skim
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Appendix E: The Operating Context for Federal Facility Renewal Strategies
Appendix E: The Operating Context for Federal Facility Renewal Strategies
Pages 166-179
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From page 166... ...
This appendix will • Highlight federal facility asset management authorities that set the founda tion for developing and implementing federal facility renewal strategies, • Highlight the current national strategy for federal facility asset manage ment systems used to develop and implement federal facility renewal strategies, • Review the Office of Management and Budget (OMB) policies as they relate to federal facility asset management and its role in advancing fed eral facility renewal strategies, and • Highlight the relationship between federal facility renewal strategies and an agency's real property capital plan.
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From page 167... ...
. Guiding this report's activity are two apex sources: OMB Circular A-11, "Preparation, Submission and Execution of the Budget," and OMB Circular A-123, "Management's Responsibility for Enterprise Risk Management and Internal Control." Collectively, these circulars establish policy, requirements, expectations, and guidelines governing how agencies should develop and implement federal facility renewal strategies.
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From page 168... ...
These advancements began to establish asset management system requirements affecting federal facility renewal strategies. Study of this framework concluded that federal facility renewal strategies must be integral to the agency's strategic plan and budget.
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From page 169... ...
FIGURE E-1 Performance management cycle. SOURCE: Office of Management and Budget, 2022, OMB Circular A-11.
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From page 170... ...
OMB Circular A-11, Supplement -- Capital Programming Guide The second OMB Circular A-11 section directly influencing the development of federal facility renewal strategies is its Supplement -- Capital Programming Guide. In the Guide, capital assets include land and structures that have an estimated use of more than 2 years, indicating complete agency federal facility portfolios.
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From page 171... ...
Given the focus of this study on federal facility renewal, agency capital plans, as defined in the Capital Programing Guide, are called real property capital plans in this report. Putting this into context, it is the agency's facility asset management system that guides development of the agency's facility renewal strategy that is implemented through the agency's real property capital plan.
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From page 172... ...
OMB Circular A-123 establishes enterprise risk management and internal control requirements that agencies must apply through their facility asset management systems to develop and implement federal facility renewal strategies. NATIONAL STRATEGY FOR THE EFFICIENT USE OF REAL PROPERTY The preceding discussion on authorities invites the question, What is the national strategy for federal facility asset management?
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From page 173... ...
(Executive Office of the President 2015) and was updated on March 6, 2020, through the promulgation of OMB Memorandum M-20-10, "Issuance of an Addendum to the National Strategy for the Efficient Use of Real Property." This National Strategy, when first released in 2015, initiated a 5-year effort designed to be an impetus to transform federal facility management generating value to the taxpayer.
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From page 174... ...
• Issue 2: Multiyear Capital Planning: The Capital Programming Guide in OMB Circular A-11 requires that agencies "must have a disciplined capital planning process that addresses project prioritization between new assets and maintenance of existing assets," yet many agencies have either not implemented a rigorous multiyear capital planning process to allocate funding between the two, or they have not implemented capital planning at all.
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From page 175... ...
The committee recognizes this evolving national strategy as the natural focal point for providing guidance supporting the development, implementation, and coordination of federal facility renewal strategies across all federal agencies. So, in answer to the first question (What is the national strategy for federal facility asset management?
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From page 176... ...
OMB policy should establish clear requirements for robust facility asset management systems used to generate federal facility renewal strategies communicated through real property capital plans. OMB Circular A-11, Supplement -- Capital Programming Guide The Capital Programming Guide (the Guide)
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From page 177... ...
the Guide does not adequately address facility portfolio management needs, and (3) the Guide does not provide a basis to evaluate facility asset management system capabilities needed to implement federal facility renewal strategies.
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From page 178... ...
The combination of these two points means agencies are not well guided on how to implement facility asset management systems needed to generate federal facility renewal strategies. The Guide should do this but does not.
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From page 179... ...
REAL PROPERTY CAPITAL PLANS The last area to highlight defining the operating context for federal facility renewal strategies is real property capital plans. This is the last topic covered because it is also the newest policy contribution related to implementation of federal facility renewal strategies released by OMB.
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