Space Bank &

Freeze the FootprintMay 22, 2013

Phil Dalby, PE, LEED AP, CFM Office of Acquisition and Project Management

Property Management Virtual Workshop

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Agenda

• 2012 Disposition of Excess Real Property

• Freeze the Footprint

• Questions

Disposition of Excess Real PropertyFY 2012

Status of Banked Square Feet for Future One-for-One Offsets

DOE’s Space Bank

FY 2002 to FY 2011

Dispositions (square feet)

FY 2012 Dispositions (square feet)

FY 2012 Gross Banked

Dispositions (square feet)

FY 2002 to FY 2011 Additions

Subject to Offset (square feet)

FY 2012 Additions subject to

Offset (square feet)

Total Additions Subject to Offset

(square feet)

FY 2012 Net Banked

Area (square feet)

25,091,052 2,146,392 27,237,444 10,563,827 1,181,303 11,745,130 15,492,314

DOE Space Bank - Results At A Glance FY 2012

• Bank queried from FIMS

• Bank Includes Owned Buildings and real property trailers

15 square feet could save you…

FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012DOE Owned 130,839,616 131,763,759 130,297,190 125,762,032 126,695,906 124,534,429 122,946,752 121,099,605 120,139,066 115,264,927 115,194,594

105,000,000

110,000,000

115,000,000

120,000,000

125,000,000

130,000,000

135,000,000

Squa

re Fe

et

Fiscal Year

DOE Owned Footprint Buildings and Trailers FY 2002 to FY 2012

DOE’s Footprint

DOE’s Leased Assets

FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012DOE Leased 727,345 785,098 778,018 755,397 905,900 1,555,146 959,073 909,140 927,994 779,445 512,249Contractor Leased 4,581,261 4,809,702 4,707,976 5,150,332 5,243,881 5,133,587 6,853,221 6,791,555 6,708,316 7,373,174 7,595,351GSA Owned 2,736,039 2,736,039 2,736,039 2,555,770 2,555,770 2,553,507 2,553,497 2,689,434 2,677,956 2,671,157 2,684,579GSA Assigned 895,952 895,952 895,949 1,009,017 1,009,017 1,047,175 1,055,748 1,125,081 1,203,499 1,204,474 1,143,966

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

Squa

re Fe

et

Fiscal Year

Leased Assets

FY 2012 Dispositions By Method

2,115,282

11,197 18,671 674 568

2,146,392

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Demolished Federal Transfer Other Disposition PBC: Neg Sales to Pub Agencies

Public Sale Total Dispositions

Square

Feet

Disposition Method

FY 2012 Square Feet Eliminated

FY 2012 Disposed vs. Acquired

2,146,392

1,181,303

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Square

Feet

Disposed SF Acquired SF

FY 2012 Disposed SF vs. Acquired SF

FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012Dispositions 1,530,356 1,135,677 2,839,712 4,097,842 2,714,385 1,502,379 1,398,125 2,144,715 1,711,398 6,016,463 2,146,392Additions 1,837,063 988,144 1,137,604 740,581 1,574,740 957,220 333,157 727,954 1,200,384 1,066,980 1,181,303

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Square

Feet

Fiscal Year

Dispositions and Additions FY 2002 to FY 2012

Dispositions & Acquisitions2002 to 2012

FY 2013 Excess Elimination ReportTimeline

• Now to 8 November 2013- Sites archive real property assets disposed of in FY 2013. - Assets must be archived by 8 November 2013- Note: No assets will be banked if they are not archived in the Facility

Information Management System (FIMS) database

• 15 January 2014 - Program Offices sent FY 2002 to FY 2013 Bank information

• 1 February 2014- Program Offices provide concurrence or comments via email

• 30 March 2014 - Issue FY 2013 Excess Elimination Report

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Freeze the Footprint

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Freeze the FootprintBackground

• OMB Memorandum M-12-12, “Promoting Efficient Spending to Support Agency Operations”, 5/11/12- Section 3: Freeze the Footprint (FTF)

• Management Procedures Memorandum (MPM) 2013-02, “Implementation of OMB Memorandum M-12-12 Section 3: Freeze the Footprint”, 3/14/13- Total square footage of domestic office & warehouse inventory shall

not increase compared to FY2012 baseline- OMB & GSA will annually monitor consistent with FRPP reporting

cycle – Report results every Spring

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Baseline Development

• Actions:- March 27 – GSA Provided Preliminary Square Foot (SF) Baseline

• DOE FY 2012 Federal Real Property Profile (FRPP) submission • GSA Occupancy Agreements with DOE • April 5 – Program comments had been due to OAPM

- April 10 – DOE Responded to GSA on Preliminary Baseline - April 16 – DOE Updated Response to GSA on Preliminary Baseline

• Permits• FRPP changes (partial)

- April 18 – FY 2012 FRPP Corrections Requested• April 24 – Datacall corrections due

- May 1 – Revised Baseline Provided by GSA

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Freeze the Footprint - BreakoutFY 2012 Baseline (Nominal Nos.)

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Real Property Usage Legal Interest Quantity Unit of Measure

Office DOE Leased 834,178 GSFOffice DOE Owned 19,407,035 GSFWarehouse DOE Leased 76,228 GSFWarehouse DOE Owned 11,382,405 GSFOffice & Warehouse FY12 GSA OAs 3,928,064 USF

Grand Total 35,627,910 SF

Freeze the Footprint - BreakoutFY 2012 Baseline (Nominal Nos.)

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MPM 2013-02 Subject Buildings4

Program Portfolio3

(MGSF)Office

(MGSF)Warehouse

(MGSF)TOTAL(MGSF)

SC 23.2 3.7 1.5 5.2NNSA2 40.4 9.4 3.9 13.3EM 35.9 4.7 5.2 9.9Other1 21.4 6.1 1.1 7.2

TOTAL 120.9 23.9 11.7 35.6

Notes:1. “Other” also includes Power Marketing Administrations (PMAs) and the Federal Energy Regulatory Commission (FERC)2. NNSA includes Naval Reactors3. All DOE owned, DOE leased and GSA Occupancy Agreements for buildings and trailers.4. DOE owned, DOE leased and GSA occupancy agreements for office and warehouse space.

Anticipated Acquisitions – DRAFT (Nominal Nos.)

• Timeline:- April 15 - Requested New Acquisition Information from Programs

• May 3 – Program responses had been due to OAPM- April 18 – FY 2012 FRPP Corrections Requested

• April 24 – Datacall corrections due

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Fiscal Year

Grand Total(kGSF)

Usage Type2013

(kGSF)2014

(kGSF)2015

(kGSF)

Office 542 252 203 997Warehouse 1 34 30 65

TOTAL 543 286 233 1,062

Dispositions – DRAFT(Nominal Nos.)

• Timeline:- May 8 – Disposition data pulled from FIMS

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Fiscal YearGrand Total

(kGSF)

Usage Type

2013(kGSF)

2014(kGSF)

2015(kGSF)

Completed Dispositions (66) 0 0 (65,633)Planned Dispositions (224) (365) (1,300,745) (1,890,293)

TOTAL (290) (365) (1,301) (1,956)

MSBA Footprint Result – DRAFT(Nominal Nos.)

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Fiscal YearGrand Total

Usage Type

2013(MGSF)

2014(MGSF)

2015(MGSF)

New Acquisitions 544 286 233 1,062 Planned Dispositions (290) (365) (1,301) (1,956)

TOTAL 253 (79) (1,068) (894)

FY 2013 Real Property Plan &Future Required Actions

• Real Property Plan:- May 15 –“Draft” Real Property Plan Submitted to GSA - June 15 – Submit Final Real Property Plan to GSA

• Certified by the Senior Real Property Officer & Chief Financial Officer • Finalize Internal Controls & Governance

- Additional information requests still to come• Examples• Data Clarification

• Annually - Office and Warehouse Square Footage shall not increase- Annual Agency Self Evaluation with GSA spot check- Annual Financial Report to include Real Property Footprint

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Current Practice

• Real Property Disposition and Oversight by OAPM:- Request for Disposition- Departmental Space Bank - Annual Excess Elimination Report

• New Real Property Footprint Deficiencies:- Over the last 5 years 90% of our assets (by count) and 73% (by SF) have an

acquisition of cost ≤ $2M- No visibility for assets ≤ $10M - (65% of new office & warehouse SF)- Limited visibility of assets $10M ≤ $50M - (8% of new office & warehouse SF)- Only tracked when entered into Facilities Information Management System (FIMS)

after acquisition

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Strategies & Recommended Actions

• DOE-wide approach to Internal Controls & Governance- Minimize mission impact - Facilities & Infrastructure Steering Committee (FISC) recommends

Departmental governance model

• Visibility of Future Acquisition at all Levels- Future FIMS with corrections after completion

• Internal Review of Baseline, Planned Acquisitions, and Dispositions- Data call & required current year certification/offset

Challenge: Policy Change became effective immediately21

Key Take Aways

• Existing DOE Space Bank Accounting will continue

• Space Bank Sub-set: New Targets for Space Accounting- Office and warehouse space

• Need heightened oversight of all new/proposed office and warehouse space- FISC – new governance

• What is the Teeth?- Potential OMB Marks for non-compliance with GSA as watchdog

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Questions?

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Phil Dalby PE, LEED APDepartment of EnergyOffice of Acquisition and Project Management (OPAM) – MA-652Phone: (202) 586-4548Cell: (202) 615-3405Fax: (202) 586-3695phil.dalby@hq.doe.gov