1. Update Department of Energy Asset Management Plan
What is it?
Why? Why?
Why now?
Plan and progress
Importance of accurate FIMS data…it just keeps growing
Annual FIMS Comprehensive Training
March 25, 2014

2. Executive Order 13327, Federal Real Property Asset Management
Established role and responsibilities of the Agency Senior Real Property Officer, to
Develop and implement an agency asset management planning process
Monitor real property asset management consistent with -
Agency strategic plan goals and objectives
Real property asset management principles
Annually provide -
Information that lists and describes real property assets
Other relevant information requested by OMB and GSA
Executive Order 13327, Federal Real Property Asset Management, February 4, 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
The Senior Real Property Officer - develop and implement an agency asset management planning process that meets the form, content, and other requirements established by the Federal Real Property Council
Update DOE Asset Management Plan
March 25, 2014

3. Real Property Asset Management
FRPC Real Property Management Principles
Support agency missions and strategic goals
Use public and commercial benchmarks and best practices
Employ life-cycle cost-benefit analysis
Promote full and appropriate utilization
Dispose of unneeded assets
Provide appropriate levels of investment
Accurately inventory and describe all assets
Employ balanced performance measures
Advance customer satisfaction
Provide for safe, secure, and healthy workplaces
Asset Management
TAKE AWAY: Management principles align nicely, supporting the concept of asset management as a discipline suited to assets regardless of acquisition cost, useful life, ownership type...
Federal Real Property Council, Guidance for Improved Asset Management, December 22, 2004: the first set of guidance issued by the FRPC pursuant to Executive Order and addresses the FRPC guiding principles, required components for an agency Asset Management Plan, property inventory data elements, and government-wide performance measures.
• Guiding Principles: The Guiding Principles serve as the FRPC’s strategic objectives for real property management improvement. Agencies must ensure that all real property initiatives are carried out consistent with these principles.
• Asset Management Plan: Each agency will draft an Asset Management Plan (AMP) that addresses, at a minimum, the FRPC Guiding Principles and the AMP required components. AMPs are subject to Office of Management and Budget (OMB) review and approval. The FRPC guidance includes a “shelf document” that agencies are encouraged to use as a template for drafting the AMP.
• Property Inventory Data Elements and Performance Measures: The FRPC has identified and defined 23 mandatory data elements that will be captured and reported by all agencies. These data elements support the goals of the executive order, as well as the requirements of the Performance Measures Committee.
Asset Management is the systematic and coordinated activities and practices through which an organization optimally and sustainability manages its assets and asset systems, their associated performance, risks and expenditures over their life cycles for the purpose of achieving its organizational strategic plan – PAS 55-1:2008
Update DOE Asset Management Plan
March 25, 2014

4. DOE Real Property Asset Management Plan, 2005
The Department of Energy’s portfolio of property assets is integral to the accomplishment of its core mission. The portfolio will be managed efficiently and effectively to ensure that the portfolio can meet current and future needs, when and where they are needed, by the most economical means available.
Real Property Management Goals
Property Alignment – The portfolio of property assets meets current and future agency missions.
Property Quality – The portfolio of property assets is in a condition to adequately support intended mission requirements and provide a quality workplace.
Portfolio Management – The portfolio of property assets will be effectively and efficiently managed.
Update DOE Asset Management Plan
March 25, 2014

5. DOE Real Property Asset Management Plan, 2005
Planning Process
Ten-Year Site Plan
Performance Measures
Condition Index
Facility Utilization Index
Operating costs – at the constructed asset level
Mission Dependency –mission critical; mission dependent, not critical; or not mission dependent
Data Collection
Facilities Information Management System
Performance Targets and Reporting
Three Year Rolling Timeline
Update DOE Asset Management Plan
March 25, 2014

6. Update DOE Asset Management Plan
Why?
Significant changes in operating environment
Energy Policy Act of 2005 / Energy Independence and Security Act of 2007
Federal Buildings Personnel Training Act of 2010
EO 13423, Strengthening Federal Environmental, Energy, and Transportation Management
EO 13514, Federal Leadership in Environmental, Energy, and Economic Performance
EO 13653, Preparing the United States for the Impacts of Climate Change
OMB M-07-10, Development of a Real Property Cost Savings and Innovation Plan
OMB M-22-11, Realignment of Federal Real Estate
OMB M-12-12, Promoting Efficient Spending to Support Agency Operations
OMB MPM No , Implementation of OMB Memorandum M-12-12, Section 3: Freeze the Footprint
Concern voiced by external stakeholders including GAO
Growing interest in Asset Management
GAO High-Risk Area
Property Systems of Record are “financial feeder systems”
Significant changes in operating environment since initial Real Property Asset Management Plan published in 2005
Concern voiced by external stakeholders including GAO that plan is outdated
Growing interest in Asset Management
GAO High Risk
GAO T, Federal Real Property, An Update on High-Risk Issues
GAO-09-10, Federal Real Property – Government’s Fiscal Exposure from Repair and Maintenance Backlogs is Unclear
GAO , High-Risk Series, An Update
GAO T, Federal Real Property, Progress Made on Planning and Data, but Unneeded Owned and Leased Facilities Remain
GAO T, Federal Real Property, Overreliance on Leasing Contributed to High-Risk Designation
GAO , Questions to Consider When Evaluating Proposals to Consolidate Physical Infrastructure and Management Functions
GAO , Federal Real Property, National Strategy and Better Data Needed to Improve Management of Excess and Underutilized Property
GAO , Improved Transparency and Long-term Plan Needed to Clarify Capital Funding Priorities
GAO-13-35, Federal Real Property, Improved Data Needed to Strategically Manage Historic Buildings
GAO , Federal Real Property: Improved Transparency Could Help Efforts to Manage Agencies' Maintenance and Repair Backlogs
Increase emphasis on accountability for assets as part of Department's financial controls
Update DOE Asset Management Plan
March 25, 2014

7. Update DOE Asset Management Plan
Why?
Modernize a foundational management document
Reflects current challenges and opportunities
Addresses all DOE plant, property, and equipment
Promote efficient and effective use of assets and resources
Support informed, risk-based, prioritized resource allocation
TAKE AWAY: The updated DOE Asset Management Plan is envisioned as a durable strategic-level plan providing constant context for accomplishing DOE Strategic goals and objectives as well as other initiatives, either OMB-driven or internally initiated. Plan should provide for regular update of goals and activities.
Modernize a foundational management document meeting the requirements of Executive Order 13327, Federal Real Property Asset Management
Significant changes in operating environment since initial Real Property Asset Management Plan published in 2005
41 CFR Subpart 109–1.50—Personal Property Management Program
Promote efficient and effective use of assets and resources – GOOD MANAGEMENT
Provide overarching coordination of acquisition and life cycle management, sustainability, cultural and natural resource management, and historic preservation functions
Reflect current challenges and opportunities
Update DOE Asset Management Plan
March 25, 2014

8. Why Now? Comply with Government Performance and Results Act (GPRA)
Provide performance metrics and benchmarks
Agency Mission
Overarching Goals
Strategic Plan with Goals and Outcomes
Annual Performance Plan and Measures
Annual Performance Report
Align asset management with new DOE strategic plan
Goal 1 - Science and Energy
Goal 2 – Nuclear Security
Goal 3 - Management and Performance
Align with DOE’s 2015 Strategic Plan – support mission and performance objectives
Government Performance and Results Act of 1993 (Public Law ) Part of a series of laws in the 1990s aimed at improving federal government management. Requires federal agencies to develop
strategic plans with long-term goals
performance plans with annual goals and measures
performance reports on prior year performance
GPRA as amended requires Agency Strategic Plan:
Revised every 4 years, approximately 1 year after a new Presidential term begins (Covers 2 fiscal years—the current and upcoming)
Consultations with relevant Congressional committees at least every 2 years
Timeframe concurrent with the President’s Budget
Made available online and notify the President and Congress
Content Amendments
Performance goals in objective, quantifiable, measurable form
Cover all program activities
Strategies and resources
Performance measures
Basis for comparing actual results with performance goals
Means to verify/validate data
Relationship to agency strategic and priority goals, and federal government performance goals
Coordination and collaboration
Contributing programs & activities
Milestones
Goal leaders
Balanced set of measures
Data accuracy and reliability
Major management challenges
Low-priority programs
Learn more about the Act from the Office of Management and Budget Website:
Update DOE Asset Management Plan
March 25, 2014

9. DOE Asset Management Plan, 2014
Desired Outcome:
A strategic-level plan that improves operational and financial management of DOE’s property in support of mission accomplishment
Update DOE Asset Management Plan
March 25, 2014

10. Project Engagement: Roles and Responsibilities
Work Groups:
Personal Property
Real Property & Real Estate
Steering Committees:
“Azimuth check” and Concurrence
Contractor Voice:
Strategy Testing and
“Reality check”
Prioritize Actions
Evaluate and Recommend Options
Review Documentation
Validate Work Group Recommendations
Select Options
Review Documentation
Advise Work Groups
Test Strategies
Level of Effort
Participate in 5-6 WG meetings
Understand current Program asset management processes
Share Program processes and constructively comment on options
Represent Program office position
Level of Effort
Participate in 4-5 SG meetings
Share Program perspective
Validate recommended options
Participate in Collaborative Action Process
Level of Effort
Participate in 4-5 WG meetings
Share site processes and constructively comment on options
Share perspectives on implementation
Validate recommended options
Work Groups - Program reps for Real Property/Real Estate and Personal Property groups from Property holding programs and interested support offices
Program HQ reps may involve field SMEs to participate in discussion as the work group identifies areas of need
Fed preferred but Contractors may participate when:
Understand current Program asset management processes
Steering committees – joint briefings – moving to a single final end product
FISC
PPM SC
Contractor Voice
Participation from Energy Facility Contractors Group (EFCOG)
Business Management Working Group
Sustainability and Infrastructure Working Group
Subject Matter Experts - The working group will consult with subject matter experts in specific areas as they become pertinent
Office of Acquisition Policy (MA-61)
Chief Financial Officer (CF-50)
Office of Environmental Policy (GC-54)
Office of History and Heritage resources (MA-75)
Office of General Council (GC-77)
Office of Project Management (NA-63)
Sustainability Performance Office
Project Support
LMI team
OAPM team
Acquisition Policy, CFO, Environmental Policy, GC, Project Management, SPO, Property Management
Project Support: Facilitation, Analysis, Data Collection, Benchmarking,
Opportunity Identification, Documentation
Update DOE Asset Management Plan
March 25, 2014

11. Work Group Membership Support Offices Property Holding Program
Program or Support Office
Personal Property Work Group
Real Property Work Group
Property Holding Program
Energy Efficiency and Renewable Energy (EE)
Greg Collette
Environmental Management (EM)
Ken Lewis; Albes Gaona, James Devere
Albes Gaona, James Devere
Fossil Energy (FE)
Nate Harvey; Pete Cartwright
Health Safety & Security (HSS)
National Training Center
Michael Greene
Legacy Management (LM)
Asset Revitalization Initiative (ARI)
Chris Clayton
Laura Kilpatrick
Tania Smith
Office of Management (MA)
Office of Aviation Management (MA-30)
Office of Administration (MA-40)
Glen Wattman
Lisa Peteet
Fred Fanning; Mike Shincovich
National Nuclear Security Administration (NNSA)
Jim Bullian; Jeanette Alderete;
BJ Morris; Lynwood Dukes
Ann Walls; Loida Begley;
Sujita Pierpoint, Tom Robinson
Nuclear Energy (NE)
Bruce Akers
Kim Petry; Dan Shirley; Bill Buyers
Science (SC)
Bonnie Anderson
Dave Michlewicz
Southwestern Power Administration (SWPA)
Mike Love
Western Area Power Administration (WAPA)
Ernest Baier
Support Offices
Health Safety & Security (HS)
Office of Sustainability Support (HS-21)
Office of Environmental Policy and Assistance (HS-22)
Cate Berard
Colleen Ostrowski
Office of Property Management (MA-65)
Mert Williams, Tyron Ware
Raam Vichare
Helene Abbott
David Steinau
Cindy Hunt
Sustainability Performance Office (SPO)
Paul Estabrooks
Emily Stoddart
KTR Voice
Energy Facility Contractors Group (EFCOG)
Cheri Cross Peggy Plyler
Mike Dunn
Update DOE Asset Management Plan
March 25, 2014

12. Project Schedule & Progress
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Mar-14
Apr-14
May-14
Jun-14
Jul-14
Aug-14
Sep-14
Scope Definition
Data Collection
External Benchmarking
Gap Analysis & Testing
Documentation
Collaborative Action Process
Scope Definition – Complete
Establish target audience and plan parameters
Data Collection – Complete
Identify requirements
Identify existing policies & procedures
External Benchmarking – Complete
Identify & assess applicable industry standards, benchmarks and best practices
Gap Analysis & Testing – Complete
Conduct gap analysis
Prioritize gaps and identify alternative strategies
Select Promising Initiatives
Documentation – In Progress
Prepare 1st Draft
Collect and Resolve Comments
CAP II
TAKE AWAY: On schedule
Scope Definition, complete – resulted in target audience identification and plan boundaries
Data Collection, complete – identified existing processes and practitioner observations/concerns; drafted reference list
External Benchmarking, complete – identified and assessed applicable industry standards, benchmarks and best practices
Gap Analysis & Testing, complete - identified alternative strategies and developed asset management initiatives for possible implementation
March to August 2014 – documentation, reviews and concurrence
Project Phase Work Group Meeting FISC/PPMSC Meeting
Update DOE Asset Management Plan
March 25, 2014

13. Scope Definition - Audience
The DOE Asset Management Plan is intended for:
External Audiences: OMB, GSA, GAO, & others who monitor
DOE Leadership: resource allocation decision makers
DOE Staff & Contract Partners: practitioners who get the work done
TAKE AWAY: build to suit
Stakeholder Analysis
External: OMB, GSA, GAO and the public (story of South Africa)
DOE Leadership: documents strategies for making informed, risk-based, prioritized decisions
DOE Property Managers: conducting their activities in support of DOE Programs, Sites, and offices
Update DOE Asset Management Plan
March 25, 2014

14. Scope Definition–Plan Boundaries
Update Real Property Asset Management Plan, 2005
Real Property and Real Estate
New requirements from higher-level authorities
Address Personal Property Management
Includes motor vehicles
Does not include: aircraft, watercraft, trains, classified property,
nuclear weapons, nuclear material, intellectual property,
internal use software, records or information
Use voluntary consensus standards as a guide
Publically Available Standard (PAS) 55-1, 2008
ASTM E53, Standards for Asset Management
Recognize and Rely on existing Departmental Guidance
Capital Asset Acquisition
Sustainability
Cultural and Natural Resources
Historic Preservation
TAKE AWAY: building a writing guide
Higher-level authorities
Federal Laws
Executive Orders & OMB Implementation Guidance
Recognize and Rely on existing Departmental Guidance
DOE P 141.1, Department of Energy Management of Cultural Resources
DOE O 413.3B, Program and Project Management for the Acquisition of Capital Assets
DOE O 420.1C, Facility Safety
DOE O 440.2C Admin Chg 1, Aviation Management and Safety
DOE O 430.1B Chg 2, Real Property and Asset Management
DOE O 433.1B, Maintenance Management Program for DOE Nuclear Facilties
DOE O 436.1, Departmental Sustainability
DOE O 450.2, Integrated Safety Management
DOE O 580.1A Admin Chg 1, Department of Energy Personal Property Management Program, and guide
CAPII – propose joint signatory: S-2/3, SRPO, Property Executives (DOE/NNSA)?
Safety
Aviation Management and Safety
Motor Vehicles
Update DOE Asset Management Plan
March 25, 2014

15. Asset Management Plan Shelf-life
Authorities
Review Timeframes
Authority
Annual
4 Years
5-7 Years
until Revised or Rescinded
Statute - Executive Order OMB Circular - Regulations P
DOE Directives
DOE Strategic Plan
DOE Asset Management Plan
Annual Facilities Report and Targets
Statutes
EOs &
OMB Circulars
Regulations
DOE Strategic Plan
DOE AMP
DOE Directives
The updated DOE Asset Management Plan is envisioned as a durable strategic-level plan providing constant context for accomplishing DOE Strategic goals and objectives as well as other initiatives, either OMB-driven or internally initiated.
State of Facilities Annual Report (SOFAR)
Summary of Goals, Objectives, and Other Decisions (SOGOOD)
SOFAR
SOGOOD
Update DOE Asset Management Plan
March 25, 2014

16. Framework for an Updated Asset Management Plan
Publically Available Specification (PAS) 55:1
PAS 55 considers the whole life cycle of physical assets. Programs and sites may leverage the standard to:
• Optimize their asset management systems,
• Demonstrate compliance with agency directives and industry standards, or,
• Seek certification or registration of their asset management system by an external organization
The figure summarizes the components of PAS 55-1.
Basis for International Organization for Standardization (ISO) standards published on 1/15/2014
ISO Standard – Asset Management – Overview, principles and terminology
ISO Standard – Asset Management – Management systems - Requirements
ISO Standard – Asset Management – Management systems – Guidelines for the application of ISO 55001
International Standard enables an organization to achieve its objectives through the effective and efficient management of its assets. The application of an asset management system provides assurance that those objectives can be achieved consistently and sustainably over time.
strategic asset management plan - documented information that specifies how organizational objectives are to be converted into asset management objectives, the approach for developing asset management plans, and the role of the asset management system in supporting achievement of the asset management objectives
Update DOE Asset Management Plan
March 25, 2014

17. Improving Asset Management – Real Property & Real Estate
Real Property Alignment
Conduct a Departmental Facility Analysis – Go Big
Develop a Departmental Asset Investment Prioritization System – Go Big
Property Quality
Develop a Tailoring Approach to Conduct of Condition Assessments – Go Big
Encourage use of Decision-making Tools, such as a Facility Sustainment Model – Go Big
Develop Departmental and Program-specific Capital Investment Plans – Go Big
Portfolio Management
Adopt a More Standardized Risk-Based Approach to Analysis – Go Slow
Manage Other Departmental Real Property Assets Similar to the Roof Asset Management Program (RAMP) - Go Slow
Implement a Departmental Life Cycle Cost/Value Engineering Requirement – Go Slow
Adopt Additional Performance Indicators – Go Slow
Go Big – address in plan as a target; identify where and how the plans will be implemented
Go Slow - Consider for future implementation; evaluate the costs and benefits
As-is – Keep the status quo; Develop a Programmatic Ten-Year Plan
Update DOE Asset Management Plan
March 25, 2014

18. Improving Asset Management – Personal Property
Portfolio Management
Provide Personal Property Management Staff with Training and Certification – As-Is
Move toward adopting ISO Asset Management Standard - Go Slow
Specify property accountability standards IAW DOE O 580.1A-1 – Go Big
Go Big – address in plan as a target; identify where and how the plans will be implemented
Go Slow - Consider for future implementation; evaluate the costs and benefits
As-Is – Keep the status quo; continue with existing personal property process and standards
Update DOE Asset Management Plan
March 25, 2014

19. Outline for Updated Asset Management Plan
Integrated Presentation
Conceptual Outline:
Introduction, Mission, Vision, Goals
Policy and Planning Considerations
Guiding Principles; Management Directives
Asset Management System; Drivers/Enablers
Life Cycle Management
ES&H/Security; Socio-economic Responsibility; Sustainability/Climate Change Adaptation
Decision Making; Industry Benchmarking
Accountability and Responsibilities
Planning Implementation
Integrated Approach
Measuring & Reporting Performance
Management Systems
Performance Measures
Reports
Progress and Trends
Personnel Training and Qualifications
Current Real Property Asset Management Plan
Federal Real Property Council Guidance
Publicly Available Specification PAS 55:1
Update DOE Asset Management Plan
March 25, 2014

20. Performance Targets and Reporting
State of Facilities Annual Report (SOFAR)
Presentation of Asset Management Plan goals and measures
Based on FIMS data
Prepared each March
Summary of Goals, Objectives, and Other Decisions (SOGOOD)
Assumes the role of the Three Year Rolling Timeline
See 3/27/2014 Annual FIMS Comprehensive Training presentation by Ivan Graff
Update DOE Asset Management Plan
March 25, 2014

21. Update DOE Asset Management Plan
Questions
Cindy Hunt, PE, PMP, CCE, CFM, LEED AP
Facilities Engineer
U.S. Department of Energy
Office of Acquisition and Project Management
Office of Property Management (MA-65)
1000 Independence Ave, SW Washington DC 20585
Update DOE Asset Management Plan
March 25, 2014

22. Update DOE Asset Management Plan
Back Up
Update DOE Asset Management Plan
March 25, 2014

23. Property Management Principles
GSA Personal Property Principles
Federal Real Property Council Guidance
Support agency missions and strategic goals
Use public and commercial benchmarks and best practices
Employ life-cycle cost-benefit analysis
Promote full and appropriate utilization
Dispose of unneeded assets
Provide appropriate levels of investment
Accurately inventory and describe all assets
Employ balanced performance measures
Advance customer satisfaction
Provide for safe, secure, and healthy workplaces
Maximize the return on your investment
Manage the inventory effectively
Minimize the cost of your management systems
Make excess the first source of supply
Maximize reuse
Meet national disposition objectives
Enhance recycling and energy conservation efforts
Ensure property managers are well trained
Federal Real Property Council, Guidance for Improved Asset Management
TAKE AWAY: Management principles align nicely, supporting the concept of asset management as a discipline suited to assets regardless of acquisition cost, useful life, ownership type...
Update DOE Asset Management Plan
March 25, 2014

24. Asset Management… the Asset Management System
Legal and regulatory requirements and expectations
(customers, stakeholders, regulators, employees, suppliers, society)
Other DOE requirements and systems
Department of Energy
strategic plan
Asset management system
Asset management policy
Asset management strategy
Asset management objectives
Asset management plans
Continual improvement
DOE values, functional standards, required processes
Acquire / create
Utilize
Maintain
Renew / dispose
Portfolio of asset systems and assets
(diversity of types, criticalities, condition and performance)
Performance and condition monitoring
Asset management enablers and controls

25. Update DOE Asset Management Plan
Task Approach
Establish target audience and plan parameters
Scope Definition
Identify requirements
Identify existing policies & procedures
Data Collection
Identify & assess applicable industry standards, benchmarks and best practices
External Benchmarking
Conduct gap analysis
Prioritize gaps and identify alternative strategies
Select strategies
Gap Analysis & Testing
Document results and produce draft plan
Adopt plan thru Collaborative Action Process (CAP II)
Documentation
The project team has developed path forward that:
Relies on the collaboration of a wide range of stakeholders
Employs a systematic framework to guide team progress
Allows a realistic schedule
Is integrated with existing performance methods
Results in a clear final deliverable -
an updated DOE Asset Management Plan
TAKE AWAY: Classic problem-solving approach:
Is collaborative based, relying on a wide range of stakeholder inputs
Selecting a benchmark framework
Employ a realistic schedule
Build on existing performance knowledge and methods
Focus on a specific deliverable – Updated DOE Asset Management Plan
Update DOE Asset Management Plan
March 25, 2014

26. Construction in Progress $21.6 B
Property Inventory
DOE HQ-level
Policy/Guidance
Construction in Progress $21.6 B
Buildings Structures &
Trailers
$105 B
Land <$0>
Program-level
Policy/Guidance
DOE Fleet* $35M
Personal Property
$19.3 B
Site-level
Policy/Guidance
Personal & Real Property similarities: managing large inventories
Personal & Real Property dissimilarities: asset cost & length of life-cycle
TAKE AWAY: Organizational level of control reflects level of risk associated with each
For Real Property, the Level of direct oversight from DOE HQ is largest for the acquisition and disposal processes
For Personal Property, the programs and sites manage the entire lifecycle with HQ oversight/audits of systems and inventories
As of FY 2012:
Number of assets: xxx
Buildings and Structures RPV: $105B
Land RPV: $0 [DOE, but not all agencies, assumes our land has no value.]
Based on PARS II data, there are several projects post CD-2 & 3. Excluding environmental remediation, D&D, and MIE work, the approximate total value of those projects is $21.6B.
FY2012 PIDS: $19.3B
Here are the EOY 2012 Motor Vehicle Fleet figures:
Inventory – 14,457
DOE Owned (26%):             3,805 ($35M acquisition costs, incl. depreciation)
Commercially Leased (1%):     188 ($9M annual commercial lease costs)
GSA Leased (73%):           10,464 ($79M annual GSA lease costs)
Count of Inventory Items
*acquisition cost for 26% of fleet owned by DOE – additional lease costs $88M per year
Update DOE Asset Management Plan
March 25, 2014