1. Space Bank & Freeze the Footprint May 22, 2013 Phil Dalby, PE, LEED AP, CFM Office of Acquisition and Project Management Property Management Virtual Workshop

2. Agenda 2012 Disposition of Excess Real Property Freeze the Footprint Questions 2

3. Disposition of Excess Real Property FY 2012 Status of Banked Square Feet for Future One-for-One Offsets

4. DOE’s Space Bank Bank queried from FIMS Bank Includes Owned Buildings and real property trailers 15 square feet could save you…

5. DOE’s Footprint

6. DOE’s Leased Assets

7. FY 2012 Dispositions By Method

8. FY 2012 Disposed vs. Acquired

9. Dispositions & Acquisitions 2002 to 2012

10. FY 2013 Excess Elimination Report Timeline 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 10

11. Freeze the Footprint 11

12. Freeze the Footprint Background 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 12

13. 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 13

14. Freeze the Footprint - Breakout FY 2012 Baseline (Nominal Nos.) 14 Real Property Usage Legal InterestQuantityUnit of Measure OfficeDOE Leased834,178GSF OfficeDOE Owned19,407,035GSF WarehouseDOE Leased76,228GSF WarehouseDOE Owned11,382,405GSF Office & Warehouse FY12 GSA OAs3,928,064USF Grand Total35,627,910SF

15. Freeze the Footprint - Breakout FY 2012 Baseline (Nominal Nos.) 15 ProgramPortfolio 3 (MGSF) Office (MGSF) Warehouse (MGSF) TOTAL (MGSF) SC23.23.71.55.2 NNSA 2 40.49.43.913.3 EM35.94.75.29.9 Other 1 21.46.11.17.2 TOTAL120.923.911.735.6 Notes: 1. “Other” also includes Power Marketing Administrations (PMAs) and the Federal Energy Regulatory Commission (FERC) 2. NNSA includes Naval Reactors 3. 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.

16. 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 16 Grand Total (kGSF) Usage Type 2013 (kGSF) 2014 (kGSF) 2015 (kGSF) Office 542252203 997 Warehouse 13430 65 TOTAL 543286233 1,062

17. Dispositions – DRAFT (Nominal Nos.) Timeline: - May 8 – Disposition data pulled from FIMS 17 Grand Total (kGSF) Usage Type 2013 (kGSF) 2014 (kGSF) 2015 (kGSF) Completed Dispositions(66)00(65,633) Planned Dispositions(224)(365)(1,300,745)(1,890,293) TOTAL(290)(365)(1,301)(1,956)

18. MSBA Footprint Result – DRAFT (Nominal Nos.) 18 Grand Total Usage Type 2013 (MGSF) 2014 (MGSF) 2015 (MGSF) New Acquisitions5442862331,062 Planned Dispositions(290)(365)(1,301)(1,956) TOTAL253(79)(1,068)(894)

19. 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 19

20. 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 20

21. 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 immediately 21

22. 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 22

23. Questions? 23 Phil Dalby PE, LEED AP Department of Energy Office of Acquisition and Project Management (OPAM) – MA-652 Phone: (202) 586-4548 Cell: (202) 615-3405 Fax: (202) 586-3695 phil.dalby@hq.doe.gov