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Pages 96-107

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From page 96...
... . The private-sector partner, under contract, operates a publicly owned asset for a specific period of time.
From page 97...
... . These models are tools that can be implemented through an agency facility renewal strategy, although it can be challenging for federal agencies to understand the various models, compare their advantages and disadvantages, and determine how to reflect them in a budget.
From page 98...
... Agencies must proactively seek to renew their facility inventories in order to avoid asset portfolios that are too large or antiquated and cannot be properly maintained, repaired, or replaced with available resources. Recognizing and accounting for the financial commitment necessary to manage a portfolio is a function of federal facility renewal strategies.
From page 99...
... The Property Act prescribes a process for disposing of federal real property that begins when an agency determines it no longer needs a property. The agency will declare the property excess to its needs and turn it over to GSA for disposal.
From page 100...
... LEASING For activities requiring physical space currently located on underutilized or inadequately maintained properties, agency facility renewal strategies should consider leasing as an alternative to ownership. While leasing is not a solution for housing many special-purpose activities, it offers an alternative that will ensure that agencies can provide a well-maintained, quality space.
From page 101...
... While leasing is not for every need, it offers an alternative to ownership when the budgetary resources are not enough to provide for the needed repair, replacement, and ultimate disposal of an owned asset. Finding 6-8: The committee observed that in some cases, using operating leases is an acceptable alternative to ownership when the up-front cost of owning cannot be supported in the near-term budget due to budget scoring rules or constraints.
From page 102...
... , it tells us which buildings we neglected.2 CONCLUSION This chapter identified funding strategies that could be employed by federal agencies through facility renewal strategies for improving the amount of funding received for facility renewal. The next chapter will identify communication strategies necessary to ensure that these funding opportunities are realized.
From page 103...
... IMPETUS FOR TRANSFORMATIONAL CHANGE The committee determined that implementation of successful federal facility renewal strategies must be approached as an asset management solution solving an asset management problem. Today's federal facility management operating environment is much like yesterday's operating environment: not enough money is being invested in federal facilities, which impacts agency mission execution 103
From page 104...
... DEFINING THE ELEMENTS OF A FEDERAL FACILITIES RENEWAL STRATEGY The committee began its work by defining renewal and establishing context for federal facility renewal strategies. In Chapter 1, the committee defined renewal as the extension of an asset's functionality beyond its expected service life through significant renovation, replacement, or repurposing.
From page 105...
... Committee Statement of Task and Defining Elements for Facility Renewal Strategies The committee's task was "to identify broad-based and practical strategies for federal facilities managers to continue investing in, and renewing, federal real property portfolios in alignment with their authorized purpose." The committee concluded its deliberations by defining the following key elements of any agency strategy on the renewal of federal facilities: • An asset management systems approach is critical for real property port folio management to ensure and assure alignment with mission objectives and priorities; to integrate annual operating costs with planned, periodic investment in (capital) construction and rehabilitation; and to mandate its use in statutory, policy, and agency directives.
From page 106...
... RECOMMENDATION 2: Implement a Real Property Capital Plan The Office of Management and Budget (OMB) should clarify its require ments for agencies' annual real property capital plans as detailed in OMB Circular A-11's Supplement -- Capital Programming Guide and OMB Memorandum M-20-03, "Implementation of Agency-wide Real
From page 107...
... should clarify how the National Strategy for Efficient Use of Real Property and OMB Memo randum M-20-10 (Issuance of an Addendum to the National Strategy for the Efficient Use of Real Property) are used to guide their agency's asset management system implemented through real property capital plans.


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