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Pages 1-10

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From page 1...
... This committee addresses this chronic problem in a new way, with strategies on how to make investments that continually renew federal facilities in response to evolving and dynamic mission needs. The report's five recommendations detail actions to fix age-old federal facility renewal challenges, built on the recognition that this is a facility asset management problem that requires a facility asset management solution.
From page 2...
... In practice, given operating constraints, federal agencies typically focus on sustainment funding and sum of underfunded sustainment, which is also referred to as the "real property deferred maintenance backlog." The problem with this perspective is that it is a lagging performance indicator that does not fully account for an agency's real property renewal requirements. As a result, few agencies have systematically renewed their real property portfolios over time, which has resulted in poor facility performance, and, in turn, suboptimal mission achievement.
From page 3...
... Several key principles of asset management are precepts of the ISO 55000 series standards: • Facility portfolio management: Federal facility renewal strategies must support an agency's whole facility portfolio covering whole life cycles and stakeholder requirements across whole agency mission sets. • Mission alignment: Mission alignment of resource prioritization requires the use of verifiable, repeatable metrics to link the relative importance of individual facility assets to stakeholder needs and performance expectations.
From page 4...
... Because the cost of facilities renewal must be balanced with the benefits and risks to the agency mission based in its value, the concept of value and its role implementing federal facility renewal strategies is critical. Value generation, retention, and benefits always entail some levels of risk.
From page 5...
... An agency's real property capital plan, which guides its facilities renewal strategy, can be a powerful communications tool in assuring stakeholders that asset management is proceeding in an efficient and effective manner. The committee argues that agencies should consolidate individual facility needs into a portfolio of like facilities and then consolidate these portfolio needs into a real property capital plan.
From page 6...
... Ensuring close collaboration between facility and budget management requires agencies to implement facility capital planning through their strategic planning processes, with senior leaders, to reconcile agency performance goals with available budgets and capabilities. The committee suggests that agency strategies for renewing federal facilities incorporate four elements: • Use an asset management systems approach to real property portfolio management that ensures and assures alignment with mission objectives and priorities; integrates annual operating costs with planned, periodic investment in (capital)
From page 7...
... 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 Property Capital Planning." Specific requirements needing clarification include • Ensuring the requirement for agencies to develop and publish a sin gle, fully integrated real property capital plan as a component of the agency capital plan, as defined in the Capital Programming Guide;
From page 8...
... 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.
From page 9...
... 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;
From page 10...
... They introduce perspectives that will lead to transformational change, starting with how value is determined in a federal facility renewal strategy. This includes changing the basis of value from managing asset life-cycle activities supporting an agency's mission to managing mission value generated by facility assets.


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