FACILITIES PROGRAMS

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FACILITIES PROGRAMS OVERVIEW Mike
Shigley Research Analyst Arrowpoint
Corporation 703-607-9121 Mike.shigley_at_ngb.army.mil

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Agenda

• Mission
• Resources Available
• Facility Condition
• Financial Terms
• OMNG Program Components
• Funding Stream
• PBG Calculation
• Program Execution
• Cooperative Agreement Issues

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Mission Statement

• To provide state-of-the-art, community based,
  installations and training sites that, by virtue
  of their geographical dispersion, can be
  leveraged by the Army and the State and that
  facilitate communications, operations, training,
  and equipment sustainment to support the
  deployment of required forces and other assigned
  State and Federal missions.

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Resources Available
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(No Transcript)
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Resource Management BranchNGB-ARI-RM
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Mission

• Obtains, distributes, and manages resources to
  provide C-1 facilities and C-1 facilities
  engineering services for the 54 States and
  Territories
• Sets and administers policy in support of all
  ARNG facilities programs
• Provides assistance to enable the 54 States and
  Territories achieve C-1 facilities and C-1
  facilities engineering services

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Resources Available

• Publications
• Education
• FEAC
• Mentoring
• GKO
• Other Web sites
• Assistance Visits

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Publications

• OMNG NGR 420-10 and NG Pam 420-10
• MCNG NGR 415-10, NGR 415-5, NG Pam 415-5, NG
  Pam 415-12
• Master Planning NGR 210-20
• Real Estate NGR 405-80
• Cooperative Agreements NGR 5-1
• Statute 10 USC Chapters 159, 169, and 1803
• DoD Guidance DoDD 1225.7 and DoDI 1225.8
• Other required and referenced publications in the
  NGRs

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GKO

• https//gko.ngb.army.mil/login/welcome.aspx
• On home page click on ARNG
• In right column click on Installations (under G4)
• Includes organization chart and phone rosters
  (including roster of all CFMOs)
• Includes all policy letters as well as special
  information published by each branch
• Includes information on upcoming conferences and
  training
• Includes links to other key sites

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Electronic References

• 1. United States Code
• www4.law.cornell.edu/uscode/ or
• www.access.gpo.gov/congress/cong013.html or
• http//uscode.house.gov/usc.htm.
• 2. Code of Federal Regulations
  www.access.gpo.gov/nara/cfr/cfr-retrieve.htmlpage
  1.
• 3. Executive Orders www.nara.gov/fedreg/eo.html
  . However, this reference, except for recent
  executive orders, only provides a summary and
  citations to the Federal Register. The address of
  the Federal Register is
• www.access.gpo.gov/nara/index.html.
• 4. Office of Management and Budget Circulars
  www.whitehouse.gov/omb/circulars/.
• 5. Acquisition Regulations
• www.arnet.gov/far/ or
• www.acq.osd.mil/dp/dars/dfars.html or
• http//acqnet.sarda.army.mil/library/zpafar.htm.
• 6. Department of Defense Publications
  www.dtic.mil/whs/directives/.
• 7. Department of Defense Financial Management
  Regulation www.dtic.mil/comptroller/fmr/.
• 8. DFAS Publications
• www.asafm.army.mil/secretariat/document/dfas37-100
  /dfas37-100.asp and
• https//dfas4dod.dfas.mil/centers/dfasin/library/a
  r37-1/.
• 9. Army Regulations and Pamphlets
  www.army.mil/usapa.
• 10. Technical Manuals www.usace.army.mil/inet/us
  ace-docs/armytm/ .

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Facility Condition
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Facility Shortfall
M
Installations Status Report (ISR) Quantity
Rating, FY 2004
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Facility Condition
M
Installations Status Report (ISR) Quality Rating,
FY 2004
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Financial Terms
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MDEP

• Stands for Management Decision Evaluation Package
• One assigned for each major program
• QRPA (SRM) and QDPW (Facilities Base Operations)
  primary ones in operations and maintenance arena
  for CFMO
• Environmental and military construction have
  multiple MDEPs.

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BOS

• Stands for Base Operations Support
• Part of Base Support, which also includes SRM and
  demolition
• In addition to Facilities Base Operations, it
  consists of
• Family Programs (2 MDEPs)
• Environmental Programs (3 MDEPs)
• Physical Security
• Visual Information
• Base Communications
• Base Operations (BASOPS) (multiple MDEPs)

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PBG

• Stands for Program Budget Guidance
• What NGB-ARI provides to you
• AFP (Annual Funding Program) is what you receive
  from NGB-ARC based on directions (almost
  exclusively) from NGB-ARI.
• NGB-ARC provides allotment (over which NGB-ARI
  has no control) at BA level to your comptroller,
  which is what you require to obligate funds.

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FAD

• Stands for Funding Authorization Document
• Issued first and third Thursday of every month by
  NGB-ARI, based on input from NGB-ARI in a
  computer system called RM-Online
• Data accessible from States and NGB via ARNG
  Enterprise Data Warehouse (all except FAD number)

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AMSCO

• Stands for Army Management Structure Code
• Level at which obligations and deobligations are
  registered in the financial system
• Reference bible is DFAS Manual 37-100-XX (for the
  last two digits of the fiscal year).
• Check web site for updates to manual at least
  monthly.

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OMNG Program Components
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MAJOR PROGRAM COMPONENTS

• Facilities Base Operations Support
• Sustainment, Restoration, and Modernization (SRM)
• Demolition
• MCNG Tails
• NEPA
• IT Equipment
• Furniture

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FEDERALLY REIMBURSED STATE EMPLOYEES

• Cannot exceed FTE requirements in approved FP-PAS
  (submitted concurrently with budget)
• Each tng center, Statewide logfacs, and CFMO have
  separate document
• Types trades workers, engineering admin, fire
  fighters, CFMO
• One individual can fill parts of many FTE
  requirements on many sites at several levels of
  authorized support.
• Reimbursement based on percent of working hours
  spent on 100 facilities plus percent on 75
  facilities plus percent on non-supported
  facilities
• Salary must be state civil service for like
  position or equivalent military technician or
  equivalent private sector
• Training authorized if for required certification
  and enhancing performance

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FACILITIES BASE OPERATIONS

• Leases
• Utilities
• Municipal Services (including solid waste, pest
  control, custodial services, snow removal, and
  landscaping)
• Facilities Engineering Services (including CFMO
  staff, supplies and equipment, real estate
  administration, and master planning)
• Fire and Emergency Services
• Project Planning and Management (charettes)

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FACILITIES ENGINEERING SERVICES

• CFMO FP-PAS and non-tradesmen FP-PAS
• Operational supplies (i.e., consumed in support
  of appendix as a whole)
• Machines, tools, equipment, etc. in support of
  appendix as a whole (w/o USPFO approval unless on
  CTA/ MTOE and over 2,500
• Rental of tools, etc. (240 day limit w/o USPFO
  approval)
• Repair/supplies to/for equipment, etc.
• Real estate administration
• Master planning, GIS, digitization, master
  planning support studies, NEPA, etc.

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SRM PROGRAM COMPONENTS

• Sustainment Foundation effort for care and
  preservation of our facilities and includes those
  activities (repair or maintenance) that one would
  fully expect to accomplish during the projected
  life of the facility.
• Restoration Activities undertaken to restore
  deteriorated or damaged facilities that were
  caused by an accident, an Act of Nature, or
  non-performance of sustainment.
• Modernization Any action that constructs or
  alters existing facilities solely (or
  predominantly) to implement new or higher
  standards, to accommodate new functions, or to
  replace building components that typically last
  more than 50 years.

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SRM ACTIVITIES

• OM Construction (statutory limit of 750,000,
  except 1.5 million if solely to correct life,
  health, or safety threatening conditions)
• Maintenance Work to preserve and maintain
  facility to its designated functional purpose
• Repair - Work to restore deteriorating(ed)
  facility to designated functional purpose
  (including upgrade to current bldg codes)

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OM MINOR CONSTRUCTION

• Four types relocation of facility
  erection, installation, assembly of new facility
  replacement of existing facility
  addition, expansion, extension, alteration,
  conversion of existing facility
• Statutory 750,000 ceiling on federal
  contribution (Type A and B services not
  included), except 1.5 million for life, health,
  safety
• Executed via contract or Federally-reimbursed
  State employees
• USPFO is approval authority for all projects over
  25,000
• CFMO has approval under 25,000

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MAINTENANCE AND REPAIR

• Executed via contract or FP-PAS employees
• Act of nature repairs exception to normal
  support codes
• Projects at State owned readiness centers only
  for AGR/technician offices and major building
  systems
• USPFO approval authority up to 3 million
• CFMO has approval under 100,000

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Demolition

• Demolition that occurs during and because of an
  SRM project is funded with SRM funds, is
  considered part of the SRM project, and is
  included in any project/statutory limitations
  associated with the SRM project.
• Demolition that is not associated with an SRM
  project is considered its own project, is
  documented on its own NGB Form 420-R, is funded
  from the demolition account, and is not
  classified as SRM.
• As an exception you may use MCNG funds for
  demolition identified on DD Forms 1390/1 that is
  not part of the MCNG project but is part of
  compliance with Armys one for one disposal
  policy.

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Funding Stream
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FY 2000-2011MCNG Funding Profile




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Military Construction Funding History
447
401
327
295
312
285
236
(M)
241
188
151
132
121
77
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Long Term Facilities Base Operations Funding
Profile
Funding as of 15 February 2005
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Long Term SRM and Demolition Funding Profile
Funding is as of 15 February 2005
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PBG Calculation
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Getting Dollars for Facilities Programs

• SRM tied directly to the real property database
  and Army algorithms for real property allowances
• Facilities Base Operations in transition from
  current Army model (based on past execution) and
  Standard Service Costing (which models
  convergence of ISR, Part 3, and Service Based
  Costing)
• OSD model under study would calculate facilities
  base operations requirements based on PRIDE
  inventory and cost to perform services for like
  type of civilian facility

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Database Accuracy Critical

• PRIDE
• ASIP
• RPLANS
• STANFINS (DFAS 218)

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PBG METHODOLOGY

• PBG based on States percentage contribution to
  NGB requirements
• Funding above PBG for items like leases, master
  planning, energy manager, and focused investment
  projects
• Two components SRM and Facilities Base
  Operations
• PBG calculated after NGB has set money aside for
  centrally managed programs and contracts

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PBG METHODOLOGY, PART II

• For SRM if State earns X of SRM POM requirements
  it receives X of available funding
• SRM POM requirements based on PRIDE 30 Sep input
  two years previous plus projects to be completed
  minus facilities to be disposed (e.g., FY06 PBG
  earned based on 30 Sep 03 PRIDE)
• Same principle for Facilities Base Operations
  except requirements based on sum of three year
  rolling average for the program components
  earning PBG (utilities, municipal services, and
  facilities engineering services)

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Centrally Managed Programs (SAG 131)

• Leases (131G79.H)
• Energy Manager (131G79.N1)
• Data Administrators (131G79.N1)
• Energy Management Studies (131G79.N2)
• Solid Waste Plans (131G79.N2)
• Airport Use Agreements (131G79.N2)
• Master Planning (incl GIS) (131G79.N4)
• NEPA (131G79.N4)
• Programming Charettes (131G79.Q1)
• Fire and Emergency Services (131G79.P0)
• IT Equipment (131G95.00)
• Furniture (131G96.BJ and show execution in MDEP
  of MILCON project)

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Centrally Managed Programs (SAG 132)

• Act of Nature Damage (132G76.L1)
• Energy Projects (132G76.L5 or 132576.L6,
  depending on size)
• Modularity (132G76.L5)
• Projects at National Training Centers (132G76.L5)
• Simulation Fielding (132G76.L5)
• Training Center Utility System Upgrades
  (132G76.L5)
• Demolition (132G93.00)

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Program Execution
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FACILITIES PROGRAMS FUNDING PROCESS

• CFMO U -- AFG issued to States
• 30 June -- completed budget due back to NGB-ARI
• Submit Act of Nature requests in accordance with
  NGR 5-1, Chapter 13.
• Any lease, charette, furniture, etc. alibis will
  be considered on case by case basis if justified
  via e-mail.
• States must request permission via e-mail through
  NGB-ARI to NGB-ARC to move money between SRM and
  Facilities Base Operations after start of the
  fiscal year
• FADs only on first and third Thursday of month
  after start of fiscal year

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General Budget Policies

• Follow AMSCO guidance in latest DFAS Manual
  37-100-XX
• No more than 45 of your AFG to employees
• At least 50 of your AFG to sustainment (i.e.,
  132G78. accounts)
• Show all requirements for each line item
• Bare minimum allocated to OMNG construction (and
  verify you are really doing construction)
• Include funding requests for all centrally
  managed programs in budget or risk not receiving
  funding at all (and be sure you dont allocate
  PBG to centrally managed programs)

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FP-PAS Employees

• Applies only to Appendix 1 and no other appendix
• Budgeting rules based on requirement to ensure
  manpower allocations are not exceeded
• Manpower allocations based on industry standards
• CFMO PAS allocations equal difference between
  manpower study requirements and actual AGRs and
  military technicians on hand
• Centralized Personnel Plan (CPP) employees must
  appear as FTEs in BOATS
• NGR 5-1, para 5-4d, limits CPP employees to those
  in State Military Department in non-supervisory
  positions who would not exist were there no
  cooperative agreement and then only for their
  direct, incremental support to particular
  appendices
• NGR 5-1, para 13-5d(8) reiterates that Appendix 1
  CPP employees must be in PAS and in direct
  support of CFMO, training center, or other
  supervisor of FISP supported facility

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Lease Policy

• Must be completely entered in PRIDE grants module
  (including new amount for next FY)
• Must have valid lease on file with NGB
• Must Plan Ahead takes over two years to go from
  POM to funding (e.g., lease new FY05 wont earn
  POM dollars until FY08)
• All leases must be approved by NGB-ARI-RE prior
  to NGB-ARI-RM funding them.
• Dont forget new AMSCO (131G79.H) for FY06.

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Other Programs (Tails)

• Request programming charettes for fiscal year no
  later than year after project enters FYDP
• Request NEPA before you receive design funds so
  NEPA is approved before you complete preliminary
  design
• Request furniture and IT equipment through
  NGB-ARI for fiscal year in which you must
  purchase items for completing MCNG projects
• Request kitchen equipment from NGB-ARL and
  physical fitness equipment from NGB-ART/NGB-ARL
  (not Army approved MILCON tails)

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Cooperative Agreement and other Facilities
ProgramsIssues
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HOW WE DO BUSINESS

• All ARNG facilities owned by, leased by, or
  licensed to States
• States, not Federal government, operate and
  maintain ARNG facilities
• Cooperative agreements with States to transfer
  money to perform these functions
• State share 25 for readiness centers on
  Federally owned land and over 50 for readiness
  centers on State-owned land

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STATE MANAGEMENT

• Oversight
• Technical and fiscal from Construction
  Facilities Management Officer (CFMO)
• Fiscal from United States Property Fiscal
  Officer (USPFO)
• State incurs expense
• Monthly, vouchers routed through CFMO for
  approval
• Vouchers to USPFO for payment

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KEY ELEMENTS OF THE COOPERATIVE AGREEMENT

• Reimbursement authorized only if Facility
  is listed on FISP. Facility is authorized
  support.
• State agrees to exercise "best efforts "to
  operate and maintain authorized facilities
  according to "sound commercial practices.
  (Master Cooperative Agreement, Section 201)
• State agrees to maintain facilities to "required
  minimum standards. (Appendix 1, Section 104)

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COOPERATIVE AGREEMENT BASICS

• Federal Inventory Support Plan (FISP) is key
• Land/building/facility component must be on FISP
  and coded to receive support
• Real property database (module of PRIDE) is thus
  critical to both requirements generation and
  cooperative agreement execution

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COOPERATIVE AGREEMENT EXECUTION

• Obligate funds up front
• Watch obligation posting (should not be negative)
• Watch that costs are applied to proper appendix
• One program manager per appendix
• USPFO decides validity of requests for
  reimbursement (but should have CFMO
  recommendation)
• Annual certification of real property (31 May)

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REIMBURSEMENT RULES

• Federal Inventory Support Plan (FISP) is key
• Land/building/part of building must be on FISP
  and coded to receive support
• Utilities/repairs/OM construction to supported
  facilities reimbursable
• Salaries/supplies/equipment/services fully
  reimbursable
• if for supported facilities
• or if in support of agreement,
• and if part of State's responsibilities,
• and if sole benefit is to State ARNG

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REIMBURSEMENT

• FISP registers real property (land, buildings,
  ancillary facilities)
• FISP agreement support code is the key (Appendix
  1 only) 100 -- All codes except the two
  below 75 -- SC1
• 50 -- S15
• Other Federal funds T10, SC6, SC10
  
• One building/one person/one purchase may
  include/support more than one support category
• If so, reduce request for reimbursement
  proportionately
• Exceptions CFMO people/activities -- 100
  Some State readiness center projects --
  100
• Acts of Nature -- 100/75

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Recent NGR 5-1 Changes

• Definitions of agreement support codes SC3,
  SC5, SC6, S12
• Exceptions on 75/25 and 50/50 reimbursement rates
  for NEPA, construction, and demolition
• Personal items for restrooms are now reimbursable
• Removal of NGB approval for procurement of items
  over 25,000 and USPFO approval for all items
  2500 and under and for items over 2500 not on
  MTOE or CTA

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THE CFMO

• Our point of contact in the State
• The engineer
• The work classifier
• The single program manager
• Validates requests for reimbursement for USPFO
  approval

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Construction Execution

• Are all the obligations for 132G76.L5 on the DFAS
  218 report really for construction?
• Are you misclassifying work as construction that
  is really repair?
• Are you entering obligation data in the financial
  system against the wrong AMSCO?

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How to Tell

• If you add components or square feet to a
  facility, it is construction.
• If you change the purpose (i.e., cat code) of a
  facility or a part of a facility, it is
  construction.
• If you are altering or reconfiguring a building
  without failing components, it is construction.
• If you are replacing/upgrading a failing/failed
  building component, it is repair.
• In fact, unless you are doing one of the first
  three items, it is probably repair. Even
  reconfiguration associated with working on
  failing/failed components is repair.

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OMNG Projects

• CFMO is the one individual within the State
  through whom all real property actions involving
  Federal dollars or activity must go. (NGR
  420-10, para 2-9c)
• CFMO recommends approval and oversees all
  projects, regardless of funding source or project
  initiator, including troop construction
  projects. (NGR 420-10, para 2-9b)
• No entity within the State nor any tenant
  organization shall start any project work without
  the prior written project approval of both the
  CFMO and the USPFO, as documented on an approved
  NGB Form 420-R or DD Forms 1390/1391All
  projects, no matter what the funding source, will
  proceed only if under the technical oversight of
  the CFMO. (NGR 420-10, para 5-1b)
• Failure to follow the regulation has led to an
  ADA in multiple States and potential ADAs in
  other States.
• USPFOs and CFMOs must take charge, and CoS must
  enforce compliance.

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Incremental Construction

• NGB PAM 415-5
• b. Incremental construction is prohibited. In
  other words, you may not split a project into
  separate parts where one or more of the following
  take place
• (1) It is done solely to reduce costs below an
  approval threshold or the unspecified minor
  construction (UMI) ceiling.
• (2) Each part is not in itself complete and
  usable.
• (3) The total project is not complete until all
  parts are complete.
• c. The following practices constitute statutory
  violations and are prohibited
• (1) Acquisition or improvement of real property
  facilities through a series of operations and
  maintenance construction projects that together
  exceed the operations and maintenance
  construction limit and none of which separately
  provide a complete and useable project.
• (2) Subdivision of a construction project to
  reduce costs to a level that meets a statutory
  limitation, or the splitting or incrementing of a
  project to reduce costs below an approval or
  contracting threshold.
• (3) Development of an operations and maintenance
  construction project solely to reduce the cost of
  an active military construction project below the
  level at which Congress must be informed of a
  cost variation.
• (4) Beginning a UMI project that has been
  previously denied authorization by Congress as a
  specified project.

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Anti-Deficiency

• Misclassification of construction as another SRM
  activity, errors in defining construction
  projects, and inappropriate applications of
  project change orders may result in a violation
  of the Anti-Deficiency Act.
• Remember the statutory limits on OM
  construction.
• The definition of construction includes installed
  building equipment (real property equipment)
  which is affixed and built into a facility as an
  integral part of the facility.
• You may not do incremental construction. The end
  result of the construction project must be a
  complete and usable facility(ies) or a complete
  and usable improvement to an existing facility.

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Anti-Deficiency (II)

• Initial project contracts may be obligated
  against a fiscal years funds only if a valid
  State obligation of the actual contract document
  takes place before the close of that Federal
  fiscal year.
• A change order against a contract may be
  obligated against the funds of the fiscal year of
  the original contract only if the funds have not
  yet expired (five years after the close of the
  fiscal year) and if the change order is within
  the scope of the original contract. Otherwise,
  the change order must be charged against current
  year funds.

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KEYS TO REIMBURSEMENT

• Is the facility authorized support on the FISP?
• Is the project for a supported facility?
• Is the person repairing a supported facility or
  directly supporting a trades worker or the
  agreement?
• Is the engineering equipment/supply/ service
  purchase/rental in direct support of a supported
  facility?
• Is the rate of reimbursement in direct proportion
  to the percentage of federal support times
  percent effort consumed on supported facility?
• Is the reimbursement only for or in support of
  facility MR and not facility operation?

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• Questions