Strategies to Renew Federal Facilities (2023) / Chapter Skim
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Appendix H: Findings and Recommendations
Appendix H: Findings and Recommendations
Pages 223-230
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From page 223... ...
Finding 2-2: Current OMB policies provide substantial structure defining the operating context for federal facility renewal strategies but fail to support agency development of effective facility asset management systems needed to implement these strategies as defined. This includes the need for immediate attention improving OMB Circular A-11, Section 83 -- (Object Classifications)
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From page 224... ...
This perspective is different from the way most agencies now evaluate facility resource-and-investment decision making, which is generally biased toward facility life-cycle management value propositions, referred to as "classical facility management thinking." Finding 3-2: OMB policy, notably OMB Circulars A-11 and A-123, do not provide sufficient guidance on how to implement and exercise facility asset management systems capable of generating federal facility renewal strategies detailed in this report. To mitigate this, ISO 55000 -- Asset Management System, standards series is an appropriate, available, and authorized resource able to fulfill this need.
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From page 225... ...
If revised, these data would improve renewal cost estimates, particularly for nonresidential structures. CHAPTER 5 FINDINGS Finding 5-1: Federal policy is clear, notably OMB Circulars A-11 and A-123: the purpose of federal facility renewal strategies is to systematically manage risk, with a focus on resource-and-investment decision making to ensure and assure that facilities best support achievement of agency mission objectives and priorities efficiently and effectively.
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From page 226... ...
Finding 6-2: The committee observed that few federal agencies aggregate capital investment into consolidated, agency-wide budget accounts, which could help smooth spending and avoid large spikes in funding from year to year. Finding 6-3: The committee noted that the federal agencies struggle to find funds to meet the most urgent facility renewal needs.
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From page 227... ...
RECOMMENDATIONS RECOMMENDATION 1: Implement a Federal Facility Asset Manage ment System The Office of Management and Budget (OMB) , in concert with the Federal Real Property Council, should update OMB Circulars A-11 and A-123 to improve guidance for implementing facility asset management systems by • Requiring federal agencies to use a comprehensive and principle based facility asset management system, as defined by International Organization for Standardization 55000 -- Asset Management System standards, to implement federal facility renewal strategies; • Clarifying how enterprise risk management and internal controls support implementation of federal facility renewal strategies by improving and clarifying policies contained in OMB Circulars A-11 and A-123; • Clarifying agency senior real property officer's fiduciary respon sibilities to ensure and assure that the agency is maintaining its facility portfolio efficiently and effectively, and that achievement of this responsibility is reported as part of the agency's OMB Circular A-136 -- Financial Reporting Requirements; • Detailing how whole asset life-cycle costs, whole asset portfolios, and whole benefit analysis support resource-and-investment decision making; and • Updating OMB Circular A-11, Section 83 (Object Classification)
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From page 228... ...
are used to guide their agency's asset management system implemented through real property capital plans. Specific requirements include the following: • Defining how agencies are to use the National Strategy to establish priorities and objectives for the efficient use of real property, to include addressing the Government Accountability Office's real prop erty high-risk issues; and • Establishing requirements that link performance reporting of bud get execution for the real property capital plan to National Strat egy objectives, as reviewed annually by the agency in the context of agency strategic plan reporting, such as through application of the Operational Readiness Principle.
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From page 229... ...
As a starting point, the model could be simplified to a set of cost factors by facility type, analogous to the Department of Defense Facility Sustainment Model. • Agencies should include existing dated depreciation rates and service lives in the economic depreciation approach review by using a sched ule established for the revision of depreciation rate and service life data used in depreciation models, which is currently provided by the Department of Commerce's Bureau of Economic Analysis.
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From page 230... ...
230 STRATEGIES TO RENEW FEDERAL FACILITIES RECOMMENDATION 5: Implement Federal Facility Renewal Budget ing Strategies Through implementation of facility asset management systems detailed in preceding recommendations, the Office of Management and Budget can ensure optimal use of federal facilities by having federal agencies guide budget development of federal facility renewal strategies by • Creating working capital funds or revolving funds to aggregate fund ing for capital investment into consolidated, agency-wide budget accounts, which could help smooth multiyear life-cycle spending and avoid large, disruptive year-to-year funding spikes; • Installing user-pays models for all federal facilities that fund working capital required to sustainably operate, maintain, repair, and renew federal facilities; • Allowing the General Services Administration to spend all the rev enue collected in the Federal Buildings Fund for repairing, renewing, or replacing facilities managed by the Public Buildings Service; • Encouraging agencies to identify noninherently governmental facili ties and related services that are mirrored by a broad-based, active private market to be candidates for privatization, outsourcing, or public–private partnerships; • Using the expedited disposal authorities created by the Federal Asset Sales and Transfer Act (FASTA) , or seeking additional dis posal authorities for properties not covered by FASTA, to dispose of unneeded and underutilized properties; and • Using operating leases as an alternative to ownership when budget scoring rules show that the cost of owning is unlikely in the near-term budget outlook.
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