U.S. Department of Energys Office of Science

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U.S. Department of EnergysOffice of Science
Overview of DOE Order 430.1B Real Property Asset
Management

• Office of Science Rollout
• February 19, 2004

SC-82
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What RPAM is

• Implements DOE Policy 580.1, Management Policy
  for Planning, Programming, Budget, Operation,
  Maintenance and Disposal of Real Property
• Consistent with the February 4th, 2004 Executive
  Order 13327, Federal Real Property Asset
  Management It is the policy of the United
  States to promote the efficient and economical
  use of America's real property assets and to
  assure management accountability for implementing
  Federal real property management reforms. Based
  on this policy, executive branch departments and
  agencies shall recognize the importance of real
  property resources through increased management
  attention, the establishment of clear goals and
  objectives, improved policies and levels of
  accountability, and other appropriate action.
• Performancebased approach
• Links planning, programming, budgeting and
  evaluation to program mission projections and
  performance outcomes

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What RPAM is NOT

• A How To document
• Stand alone document

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RPAM Emphasizes

• Ten Year Site Plan (TYSP)
• Roles and responsibilities among federal
  organizational entities
• Facilities Information Management System (FIMS)
• Performance Measures

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How RPAM came about

• In Response to
• Congressional Direction
• GAO Reports
• Need to Update LCAM due to organizational changes

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Congressional Direction

• Recognizes deterioration of DOE facilities and
  the inability to evaluate/address their readiness
  and maintenance status
• Supports efforts to develop a directive
  establishing requirements for DOE-wide
  implementation of all facilities and
  infrastructure programs
• Requires Ten Year Site Plans
• Requires assignment of federal staff at site and
  HQ for oversight of FI activity and to ensure
  accountability

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Congressional Direction (cont.)

• Elimination of Excess Facilities
• Unacceptable degree of facility deterioration is
  a result of insufficient funding for maintenance

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GAO Reports

• GAO-03-122 Federal High Risk Series , Jan.
  2003, places Federal Real Property as a High Risk
  due to
• Deteriorated and outdated property portfolio
• Excess and underutilized inventory
• Lack of facility data
• No comprehensive and integrated planning
• GAO-03-100, Jan. 2003, Major Management
  Challenges and Program Risks, Department of
  Energy
• DOE faces major challenges in revitalizing
  infrastructure

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DOE Policy 580.1

• Issued May 20, 2002
• Objective is to establish a holistic planning,
  programming, budgeting and execution (PPBE)
  process that links real property assets, and the
  resources dedicated to them, to mission
  requirements and performance
• OECM will
• Lead implementation of this Policy
• Support the Deputy Secretary/Chief Operating
  Officer and line management

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DOE Policy 580.1 cont.
DOE Program Offices have line responsibility DOE
functional offices have staff responsibility for
assisting line management with implementation of
this policy, and related directives
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Process For Drafting RPAM

• FI Steering Committee (FISC)
• Convened / Chaired by OECM
• HQ Field Reps from EE, EM, DE, NNSA, and SC
• Chartered FI Working Group (FIG) to draft order
• FIG efforts included
• Fifteen member working group from field and HQ
  organizations
• Five three day working sessions
• FISC Guidance
• Outreach to 80 points of contact
• EFCOG and Lab Council Input
• Review of practices of other Federal Agencies

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DOE Order 430.1B

• RPAM order issued 9-24-03
• Requirements of the order must be fully
  implemented by September 30, 2004
• Implements DOE P 580.1
• Cancels DOE order 430.1A Life-Cycle Asset
  Management dated 10-14-98
• Consistent with the new Executive Order 13327
  Federal Real Property Management issued
  February 4, 2004

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Applicability

• Applies to all DOE elements with responsibility
  for real property assets, including NNSA, except
  Naval Reactors/Naval Propulsion Program
• Contractor requirement document sets applicable
  requirements for Site/Facility management
  contracts
• Applies to other-than Site/Facility management
  contracts on a case by case basis

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Functional Areas Addressed

• Planning
• Real Estate
• Acquisition
• Maintenance and Recapitalization
• Disposition and Long-Term Stewardship
• Value Engineering
• Performance Goals and Measures

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Planning Ten Year Site Plan (TYSP)

• Overarching function within real property asset
  management
• Site planning must be consistent with DOE P 430.1
  Land and Facility Use Planning
• For active sites, the TYSP will document site
  planning and performance

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Planning Ten Year Site Plan cont.

• TYSP will address how assets support
• Departments strategic plan
• Secretarys 5-year planning guidance
• Landlord and Program guidance
• SC Facilities for the Future
• SC Strategic Plan
• SC Future of the Laboratories (coming 2004)
• TYSP will be updated and submitted annually
• SC has drafted preliminary guidance detailed
  guidance to go out by April 5st for Nov 1st
  submission

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REAL ESTATE

• Encompasses key activities over the life cycle of
  real property assets
• Secretarys real estate authority can be
  re-delegated
• All real estate actions to acquire, manage, and
  dispose of real property must be reviewed and
  approved by a DOE Certified Realty Specialist
  (CRS) before executing the action

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Real Estate cont.

• Land use planning must be established through a
  recognized process approved by the LPSO
• Land use plan must be kept current and support
  the TYSP

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Real Estate cont.

• LPSOs/CSOs/PSOs must annually identify all
  project/program mission terminations to
  site/field managers
• Site/field managers must annually report to
  responsible LPSOs/CSOs/PSOs real property that is
  not utilized
• LPSOs/CSOs must report to OECM no later than
  12/31 of each year property that is not needed to
  support program missions

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Real Estate cont.

• 90 day notification to HQ for all disposals by
  sale or lease

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FIMS

• FIMS data used to meet routine reporting
  requirements
• Site/Field managers must ensure that FIMS data is
  verified annually as complete and accurate
• FIMS dollar values must be reconciled by asset
  type with the accounting Management Analysis
  Reporting System (MARS)
• Deferred, required, and annual maintenance must
  be reported in FIMS

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FIMS cont.

• FIMS data is used to determine if individual
  sites have met the expectations for the Asset
  Utilization Index (AUI)
• FIMS data is also used in determining if the
  expectations for the Asset Condition Index (ACI)
  performance measure have been met

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FIMS cont.

• FIMS will be available via the internet
• FIMS data must be archived after disposal of DOE
  owned real property assets
• Outgrants of DOE owned real property assets must
  be reported in FIMS
• Real property data in other reporting systems
  must be consistent with FIMS data

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Acquisition

• Strategy for meeting mission need construction,
  Alternative Finance, other
• Must consider Life Cycle costs
• Line items vs General Plant Projects (GPP)
• Institutional General Plant Projects (IGPP)
• Square Foot Off-set for new construction at each
  site, unless secretarial waiver approved for
  elimination at another site

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Maintenance and Recapitalization

• Sustainment maintenance, repair or replacement
• Recapitalization - alterations, betterments and
  rehabilitation
• Sustainment requirements must be developed and
  summarized in the TYSP
• Recapitalization plans are also required to be
  developed and included in the TYSP

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Maintenance and Recapitalization cont.

• Each site is to have a Maintenance Program
• Condition assessments
• Work control system
• Management of deferred maintenance
• Method to prioritize maintenance projects
• Cost accounting systems to budget and track
  maintenance expenditures

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Maintenance and Recapitalization cont.

• Condition Assessments must be performed on all
  real property assets at least once during any
  5-year period using industry standard practices
• Condition Assessment Systems (CAS)
• Inspections
• Determine asset deficiencies
• Identify when corrective actions will be
  accomplished and their cost
• CAS software

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Maintenance and Recapitalization cont.

• Importance of real property assets to mission
• Mission essential
• Mission determination
• FIMS

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Disposition and Long-Term Stewardship

• Disposition includes
• Stabilizing
• Preparing for reuse
• Deactivation
• Decommissioning
• Decontaminating
• Dismantling
• Demolishing
• Disposing of real property assets

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Disposition and Long-Term Stewardship

• Long Term stewardship includes
• Physical controls, e.g. fences, markers, signs
• Institutional controls, e.g. notations on maps,
  records, and deeds
• Information and other mechanisms needed to ensure
  protection of people and the environment

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Disposition and Long-Term Stewardship

• Property transfers to complete disposition
• Transfer document
• Records, data collection, management and
  reporting requirements

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Value Engineering

• Value Engineering requirements are provided in
  the following documents
• Office of Management and Budget (OMB) Circular
  A-131, Value Engineering, dated 5-21-93
• Public Law 104-106, Section 4306, Value
  Engineering for Federal Agencies (41 U.S.C. 401et
  seq.)
• DOE N413.2, Value Engineering, date 12-30-02 and
• ASTM Practice 1699-00, Standard Practice for
  Performing Value Analysis for Buildings and
  Building Systems

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Value Engineering cont.
Projects lt or to 5M Projects gt 5M
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Performance Goals and Measures

• LPSO/CSO to establish targets
• Site/Field Manager development of site specific
  measures
• Corporate measures for AUI and ACI are included
  in DOE O 430.1B

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Performance Goals and Measures cont.
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Asset Utilization Index
Justified Assets
AUI Module
Justified Assets Current Assets

Area of all real property assets
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Performance Goals and Measures cont.
ACI 1 DM/RPV
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Asset Condition Index

• Outcome Drivers
• Maintenance Program
• Recapitalization Program
• Excess Elimination
• Resource allocation
• Budget execution
• - Ten Year Site Plans

Information Source Quantitative Condition
Assessment Surveys using Industry Standards as
reported in FIMS
Deferred Maintenance

Replacement Plant Value (RPV)
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Performance Goals and Measures cont.

• To assess budgets for intended use, following
  measures are established
• LPSOs/CSOs will review budget execution against
  IFI Crosscut Budget quarterly
• Assessments by LPSOs/CSOs to be submitted to OECM

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Responsibilities

• OECM
• Serves as Department of Energys principal point
  of contact
• Develops policies and procedures
• Develops and monitors performance measures
• Qualified DOE Federal facilities management staff

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Responsibilities

• LPSOs
• Provides annual program direction, guidance and
  oversight for Order Implementation
• Issue program missions, budgets, and planning
  estimates covering a 10-year planning horizon
• Approve TYSPs and land-use management plans for
  their sites
• CSOs/PSOs
• Also issues program missions, budgets, and
  planning estimates covering a 10-year planning
  horizon
• Approve TYSPs related to their programmatic
  responsibilities at related sites.
• Ensure Program direction and guidance is
  consistent with LPSO/CSO/PSO agreement for site
  real property matters

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Responsibilities cont.

• Site/Field Managers
• Accountable to LPSO for real property stewardship
  at site
• Ensures qualified DOE facilities staff is
  available for implementation of order at site
• Coordinates real property assets and budgets to
  meet program missions
• Ensure that FIMS data is verified annually as
  complete and accurate
• Identifies mission essential real property assets
• Submit a coordinated TYSP to LPSO

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Roles Responsibilities

• Departmental
• Policy / Oversight
• PPB E
• Metrics
• FISC

OMBE
OECM
LPSO
CSO/PSO
HQ Coordination
Mission / Program
Mission / Program /
Requirements / Resources TYSP ( Program / Support)
Infrastructure
Requirements / Resources TYSP ( Program /
Infrastructure)
Field Program Office
Site

• Site Manager
• Geographic Area Coordination
• Host for tenant Programs / Activities
• Infrastructure Support Provider
• TYSP Coordinator

• Infrastructure Support Agreement Btwn Office and
  Site Manager
• TYSP Coordination

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Contractor Requirements Document

• Part of RPAM Order
• Areas covered
• Planning
• Documentation
• FIMS
• Real Estate
• Maintenance
• Disposition and Long-Term Stewardship
• Value Engineering

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Summary

• RPAM is the product of a cross-program and field
  participatory effort
• Corporate level, performance-based approach links
  real property asset management to program
  missions and performance outcomes
• Directs identification and balancing of
  acquisition, sustainment, recapitalization and
  disposal requirements into a comprehensive Ten
  Year Site Plans

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CREDITS

• This presentation was created by
• The U.S. Department of Energy
• Chicago Operations Office
• Laura Troche
• Heidi Ramirez
• Gloria Baldwin
• Max Rosenquist
• Steve Neus