1. 2009 FIMS / RE Workshop DOE O 430.1B, Real Property Asset Management - Update Monja Vadnais, P.E. Facilities Engineer Office of Engineering and Construction Management U. S. Department of Energy

2. 2009 FIMS / RE Workshop O 430.1B, Real Property Asset Management AKA - RPAM Objective – “Establish a corporate, holistic, and performance based approach to real property life- cycle asset management that links real property asset planning, programming, budgeting, and evaluation to program mission projections and performance outcomes.” Last full update – 24 Sept 03  Minor change in 08 Feb 09 – amended the overhead funding requirement for institutional general plant projects. June 2, 2009 Memphis, TN 2

3. 2009 FIMS / RE Workshop Why Update DOE O 430.1B Now? DOE Order 430.1B has complied with:  Legislative underpinning 41 CFR 101 and 41 CFR 102 “Federal Real Property Regulations”  DOE Policy 430.1, “Land and Facility Use Policy” New requirements since last updated …  Executive Order 13327 “Federal Real Property Asset Management”  Executive Order 13423 “ Strengthening Federal Environmental, Energy and Transportation Management”  GAO, High Risk Series – “Federal Real Property” Excess property; poor condition; inaccurate facility data June 2, 2009 Memphis, TN 3

4. 2009 FIMS / RE Workshop How Does E.O. 13327 Impact RPAM ? “Federal Real Property Asset Management” “… to promote the efficient and economical use of Federal real property resources in accordance with their value as national assets and in the best interests of the Nation …” Established the Federal Real Property Council  Updated/created performance measures and definitions: “Mission Dependency” “Operating Cost” “Sustainability Index” “Asset Condition Index” “Utilization Index” June 2, 2009 Memphis, TN 4 E.O. 13327 “… to promote the efficient and economical use of Federal real property resources in accordance with their value as national assets and in the best interests of the Nation …”

5. 2009 FIMS / RE Workshop How Does E.O. 13327 Impact RPAM ? (Cont.) Established the Senior Real Property Officer Improved handling of system obsolescence with respect to condition reporting Added Sustainment Modeling as another tool for calculating maintenance requirements Allowed for next generation of tools:  Mission Readiness  Facility Quality  etc. June 2, 2009 Memphis, TN 5

6. 2009 FIMS / RE Workshop How Does E.O. 13423 Impact RPAM? “Strengthening Federal Environmental, Energy and Transportation Management”  Establish alignment with DOE O 430.2: Sustainability and “greening” in real property maintenance and operations Energy and water conservation Recycled content in building materials Commissioning and retro-commissioning Integrated design within the life cycle of real property Life cycle cost expectations for operations and maintenance decisions June 2, 2009 Memphis, TN 6 Did you know… Buildings: Emit over 50% of all green house gasses! Consume 48% of all energy! Use 76% of the electricity!

7. 2009 FIMS / RE Workshop Directives Review Board (DRB) DRB approved RPAM update: 10 Mar 09 Compliance revisions but NOT complete overhaul Limited to:  Implement Executive Orders, DOE Orders, and CFR References  Incorporate Sustainability and Energy requirements not already addressed in other DOE Orders  Update the Ten Year Site Plan to include Sustainability  Update Performance Goals and Measures  FIMS Validation Requirements  Program Comments as applicable to E.O. and DOE Orders June 2, 2009 Memphis, TN 7

8. 2009 FIMS / RE Workshop RPAM - What Has Changed? Specifically identifies Executive Orders, Federal Regulations, DOE Policies, and DOE Orders that are being implemented and supported. Applicability:  Per the DOE Order 251.1C, “Departmental Directives Program”, updated requirements regarding NNSA Requirements:  “Acquisitions, sustainment, recapitalization, and disposal must be balanced to ensure real property assets are available, utilized and maintained in a suitable condition to stimulate the economy, protect people, the environment and accomplish DOE missions, including cost effective deactivation and decommissioning.” June 2, 2009 Memphis, TN 8

9. 2009 FIMS / RE Workshop Ten Year Site Plans - What Has Changed? Ten Year Site Plans (TYSP):  Provide an assessment of the progress toward the high performance goals identified in E.O. 13423  Include lease information as part of the prioritized real property projects and activities  At sites with multiple PSOs, the TYSP will be coordinated with all PSOs  Identify the process for prioritizing investment decisions  Disposition Plans – Closure Plans June 2, 2009 Memphis, TN 9

10. 2009 FIMS / RE Workshop Real Estate - What Has Changed? Real Estate:  Real Estate Specialists shall be certified  The results of the utilization survey process are to be reported in the TYSP  “Until such time as elimination of excess real property is accomplished, the responsible LPSO/CSO shall also plan for, fund, and implement surveillance and maintenance and associated infrastructure support activities as well as final disposition.”  Specifically identifies the different regulations and orders that apply to excess property at defense nuclear sites and non-nuclear sites. June 2, 2009 Memphis, TN 10

11. 2009 FIMS / RE Workshop Acquisition - What Has Changed? Acquisition:  All acquisition shall be sustainable to the extent economical and practical  A new facility constructed under GPP authority, like any other new construction project, requires appropriate real estate instruments and reporting. Deeds Permits June 2, 2009 Memphis, TN 11

12. 2009 FIMS / RE Workshop Maintenance - What Has Changed? Maintenance:  Now “Sustainability, Integrated Design, Sustainment and Recapitalization”  Sustainable materials and integrated design to be used  Shutdown facilities must be maintained in a safe and stable condition  The maintenance program will include cost accounting to budget and track maintenance expenditures at the asset level  Assets to be identified in FIMS as Mission Critical Mission Dependent Not-Mission Dependent June 2, 2009 Memphis, TN 12

13. 2009 FIMS / RE Workshop Disposition & LTS - What Has Changed? Disposition & Long Term Stewardship (LTS):  Section updated to current requirements and practice  LPSOs/CSOs must annually identify project/program mission terminations to site/field managers  OECM will screen all unneeded real property to determine if excess  A mutually approved Agreement is required to transfer an Asset between Program Offices  Transfers to be consistent with the budget cycle unless otherwise agreed  Until transfer is complete, the responsible Program Office is required to maintain the asset in a safe condition and not incur additional disposition costs  Criteria for facilities, materials, and waste to be transferred to Environmental Management are identified June 2, 2009 Memphis, TN 13

14. 2009 FIMS / RE Workshop Performance Measures - What Has Changed? Performance Measures & Goals  Asset Utilization Index (AUI) – calculated on a group or portfolio of assets AUI improves as excess facilities are eliminated AUI range and ratings have been removed (Sum of the Utilized GSF of the asset group) (Total GSF of the asset group)  Asset Condition Index (ACI) has been removed  Facility Condition Index (FCI) has been replaced with Condition Index (CI). Method of calculation is unchanged Deferred Maintenance (DM) Replacement Plant Value (RPV) June 2, 2009 Memphis, TN 14 X 100 AUI = CI = 1 -

15. 2009 FIMS / RE Workshop Performance Measures - What Has Changed? Performance Measures & Goals  Maintenance Investment Index (MII) Used to assess real property asset budgets for their intended purposes Annual Maintenance Investment Replacement Plant Value (RPV)  Annual Operating Cost Index (AOCI) Annual Operating Cost Associated GSF Operating Costs:  Recurring maintenance & repair  Utilities  Janitorial (pest, refuse, recycling)  Roads/grounds (landscaping, snow removal) June 2, 2009 Memphis, TN 15 MII = 1 - AOCI =

16. 2009 FIMS / RE Workshop What Does the Future Hold? New E.O. ??? - “Carbon Footprint” New E.O. ??? – Increased Sustainability & Energy Reduction requirements Increased Transparency Requirements FRPC Standards across the Federal Government  Deferred Maintenance  Plant Value Per the DRB:  Ultimately this Directive and DOE O 430.2 will be combined June 2, 2009 Memphis, TN 16

17. 2009 FIMS / RE Workshop RPAM - Updated & RevCom is Next Proposed updates keep it current and forward looking by:  Capturing the changes in Federal real property policy over the last five years  Aligning with evolving policies on sustainment and greening  Demonstrating a continued commitment to facility stewardship DOE Order 430.1B is good policy; Programs have Improved Condition of Real Property Assets RevCom is next … June 2, 2009 Memphis, TN 17

18. 2009 FIMS / RE Workshop ? Questions ? Monja Vadnais OECM Office: (202) 586-6199 Email: Monja.Vadnais@HQ.DOE.gov June 2, 2009 Memphis, TN 18