Strategies to Renew Federal Facilities (2023) / Chapter Skim
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5 Strategic Planning Process
5 Strategic Planning Process
Pages 74-83
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From page 74... ...
This risk management includes real property resource-and-investment decision making. The OMB Circular A-11 Supplement -- Capital Programming Guide goes on to establish requirements for agency facility renewal strategies to cover whole real property portfolios across whole facility asset life cycles in support of the agency's full set of mission objectives.
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From page 75... ...
(ISO 2014c, § 2.4.2.a) Therefore, federal facility renewal strategy risk management must focus on value generated by facilities, which includes the contribution to value generated by the people and capabilities using these facilities.
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From page 76... ...
In accordance with the requirements detailed in OMB Circular A-123 and ISO 55000, this specifically includes managing risks associated with resource-and-investment decision making. VALUE IN THE CONTEXT OF FEDERAL FACILITIES Setting objectives for federal facility renewal strategy risk management requires the definition of value in the context of federal facilities.
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From page 77... ...
These approaches employ value propositions that measure the contributions that facilities make toward agency mission achievement. By extension, risk management frameworks must be designed to evaluate these types of choices.
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From page 78... ...
This sets the relationship used in supporting risk management frameworks detailed later. In this context, the agency's real property capital plan is the apex product of its facility asset management system, and the means used to establish and communicate supporting risk management activities.
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From page 79... ...
At the facility portfolio level, functionality measures focus on how a group of facilities can support mission-critical operations. Both perspectives are important to developing federal facility renewal strategies and are therefore critical inputs to the asset management system's risk management framework.
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From page 80... ...
The relationship between economic models and an agency's real property capital plan is established through interdependencies between OMB Circular A-11's Supplement -- Capital Programming Guide and OMB Circular A-123's guidance on enterprise risk management. Specifically, the Capital Programming Guide requires agencies to manage facility assets using priorities and objectives aligned to support achievement of the agency's objectives (OMB 2022a)
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From page 81... ...
In this way, via application of ISO 55000 standards, all decision-making activities become risk based. The chain of events helpful to implementing an effective enterprise risk management solution for federal facility renewal strategies is as follows: • The agency commissions policy to implement a facility asset management system.
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From page 82... ...
Independent of the authoritative source that an agency selects to establish its enterprise risk management solution, the following requirements should be applied to all risk management frameworks used to develop federal facility renewal strategies: • Agencies are required to establish and document the risk management frameworks they are using to develop and implement federal facility renewal strategies. This should be made clear in the policies used to establish the agency's facility asset management system.
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From page 83... ...
Finding 5-1: Federal policy is clear, notably in 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. Finding 5-2: The risk management frameworks used must be systematic and documented, must comply with OMB Circular A-11 and A-123 require ments, and must be integral to federal facility renewal strategy development and implementation.
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