Strategies to Renew Federal Facilities (2023) / Chapter Skim
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2 The Operating Context for Federal Facility Renewal Strategies
2 The Operating Context for Federal Facility Renewal Strategies
Pages 20-37
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From page 20... ...
This chapter identifies and clarifies the foundation for, limitations on, and opportunities to develop and implement federal facility renewal strategies designed to better achieve these objectives. It finds that federal facility renewal strategies are best implemented through asset management principles and frameworks, such as those detailed in the International Organization for Standardization (ISO)
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The committee views federal facility renewal strategies as a management imperative, and it is, therefore, no surprise that their development and use are required by public laws and statutes. FOUNDATIONS FOR FEDERAL FACILITY RENEWAL STRATEGIES The modern beginnings of real property2 management as a coordinated activity can be traced to the Federal Property and Administrative Services Act of 1949.
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Directives, Parts 1 and 2. Many more sources and stories relate to how facility asset management as a disciplined approach has matured.
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FIGURE 2-1 Significant milestones in the evolution of facility asset management in the U.S. federal sector.
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on Asset Management. Today, ISO/TC 251 leads international efforts advancing asset management system standards that underpin best practices for facility asset management around the globe.4 This committee views the ISO 55000 asset management series as a foundation for improving an organization's facility asset management capabilities and therefore a solid foundation for developing and implementing federal facility renewal strategies.
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. GAO Report on Facility Asset Management In GAO-19-57, Federal Real Property Asset Management -- Agencies Could Benefit from Additional Information on Leading Practices, GAO identified an asset management framework based on asset management literature, expert interviews, and ISO 55000 standards (GAO 2018f)
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26 FIGURE 2-2 Key characteristics of an effective asset management framework. SOURCE: Government Accountability Office, 2018, Federal Real Property Asset Management: Agencies Could Benefit from Additional Information on Leading Practices, GAO-19-57, Washington, DC, www.gao.gov/assets/gao-19-57.pdf.
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These facility asset management strategy improvements must address both optimization of programs supporting facility operations and optimization of the value generated by facility portfolios. This is a subtle yet significant issue that agencies need to consider when applying guidance in GAO-20-195G to develop federal facility renewal strategies.
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28 FIGURE 2-3 Cost-estimating process and guidelines. SOURCE: Government Accountability Office, 2020, Cost Estimating and Assessment Guide: Best Practices for Developing and Managing Program Costs, GAO-20-195G, Washington, DC, www.gao.gov/assets/710/706933.pdf.
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. This was a significant expansion of OMB requirements relevant to the development and implementation of federal facility renewal strategies.
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GAO.GOV/GREENBOOK GAO-14-704G FIGURE 2-4 Guiding and structuring internal controls. SOURCE: Government Accountability Office, 2014, Standards for Internal Control in the Federal Government, GAO-14-704G, Washington, DC, www.gao.gov/assets/gao-14704g.pdf.
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The operating context for federal facility renewal strategies can be summarized as the governing body of laws, statutes, regulations, and executive orders that establish the policy used to generate agency strategies for facility asset management systems, which are communicated and managed through the agency's real property capital plan, focusing on the following four areas: • Federal facility asset management authorities that set the foundation for developing and implementing federal facility renewal strategies,
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Federal Facility Asset Management Authorities Federal asset management authorities are conferred through statutes, regulations, orders, and policy. There are too many to enumerate, and they all impact agencies' implementation of federal facility renewal strategies.
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In turn, the facility asset management system is used to generate federal facility renewal strategies that are to be communicated and managed through the agency's real property capital plan as part of a continual improvement process. National Strategy for the Efficient Use of Real Property OMB commissioned the beginnings of a national strategy for federal facility asset management in OMB Memorandum M-12-12, "Promoting Efficient Spending to Support Agency Operations," also known as the "Freeze the Footprint" policy.
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. Review of OMB Policy Supportive of Federal Facility Renewal Strategies In order to identify opportunities to improve value generated by federal facility renewal strategies, OMB policy is reviewed in detail in Appendix E
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Study of the guidance makes it clear that OMB Circular A-123 does apply to federal facility renewal strategy implementation, but there is little evidence that agencies are aware of this or understand how to apply the guidance provided. Review of OMB Policy Supportive of Federal Facility Asset Management The committee found one additional OMB policy area limiting to federal facility asset management, a topic broader than developing federal facility renewal strategies: OMB Circular A-11, Section 83 (Object Classification)
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OMB M-20-03 directs the FRPC to act as the authority for reviewing real property capital plans, determining their adequacy in managing agency facility portfolios, and supporting achievement of agency mission objectives. CONCLUSION This chapter builds from the problem statement established in Chapter 1 and details the basis and foundations for asset management to serve as the means to generate federal facility renewal strategies.
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Finding 2-3: Work advancing a national strategy for federal real property is moving in a positive direction, but policy changes are needed to evolve it into a national strategy for federal facility asset management supportive of implementing federal facility renewal strategies as defined in this report. Finding 2-4: Work supporting the emergence of real property capital plans is moving in a positive direction, but policy changes are also needed to promote its use for reconciling objectives, strategy, budget, and facility performance to support evidence-based decision making for agency mission achievement.
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