General Services Administration Federal Asset Sales Utilization and Donation Study Briefing http://egov.gsa.gov April 29, 2004

Members of the Interagency Committee on Property Management Community U&D Participants & Drivers Mitra Nejad – Program Manager Victor Arnold-Bik -- Personal Property Asset Class Manager Gary Thompson -- Utilization and Donation Team Lead David Bundren – BearingPoint Consulting Kerri Davis – BearingPoint Consulting Robert Schoborg – BearingPoint Consulting Deidre Huber & Dave Robbins -- Federal Supply Service, GSA Bob Holcombe -- Office of Governmentwide Policy, GSA Members of the Interagency Committee on Property Management Community GSA Federal Asset Sales

Presentation Outline U&D Study Objectives Key Findings and Observations Incremental Recommendations Breakthrough Recommendations Next Steps GSA Federal Asset Sales

Approach Leverage structured, phase based and collaborative business process reengineering methodology and approach Preliminary Focus Areas Summarize Findings and Enhancements Final Report and Business Case including Cost Benefit Analysis Kick Off “As-Is” Review Develop Utilization “As-Is” Model Develop Donation “As-Is” Model Formulate Final Report with Summary Business Case for Enhancements including Cost Benefit Analysis Summarize findings Project Strategy and Planning Document Recommended Enhancements Identify Preliminary Areas of Review Best Practice Research Enhancement #1 Identify U&D Life-Cycle Best Practices Enhancement #2 Enhancement #3 7/11/03 10/03/03 11/14/03 12/19/03 3 weeks 12 weeks 6 weeks 5 weeks GSA Federal Asset Sales

U&D Study Objectives Offer recommendations and enhancements to the U&D program to maximize the value of Federal personal property by: Increasing asset reutilization Avoiding procurement Optimizing Utilization & Donation benefits Increasing asset disposal efficiency GSA Federal Asset Sales

Key Findings and Observations The U&D program was created to provide both economic and social benefit to government and society. Neither social nor economic benefits are being optimized currently. A low percentage of assets are utilized or donated Incomplete management, organizational and resource limitations, and political influence all inhibit U&D. Data constraints limit analysis and hinder decision making. GSA Federal Asset Sales

Personal Property Asset Flows Other $7.7 B/yr Intra-Agency Reutilization Utilization $642 M/yr Acquisition $84 B/yr Use/ Management Disposal Special Authorities Exchange Sale Sales Donation $451 M/ yr A&D Information Available Information Unavailable Utilization for Non-Fed >$140 M/yr SOURCE NOTES: *Acquisition: Federal Procurement Data System-FY’02 *Other Numbers: Federal Disposal System, Average-FY’01-FY’03 *Utilization for Non-Fed: FAS Team Estimate, Average-FY’01-‘03 *All dollars represents Original Acquisition Cost Excess 8.8bB/yr GSA Federal Asset Sales

U&D Study Recommendations The study proposes two sets of recommendations: Incremental or programmatic enhancements (short-term); and Breakthrough or asset management life cycle enhancements (long-term) Addresses U&D, Asset Management, and Data Constraints Full asset management would generate significant benefits Agency support is critical to sustain momentum GSA and OMB leadership must be committed GSA Federal Asset Sales

Incremental Recommendations Phase 1: Immediate Recommendations (Kick off 0-3 months) Relatively easy to implement or already underway Create an “ask the expert” customer service interface. Provide a means for agencies to submit “Want Lists” to GSAXcessTM. Leverage Know.Net or similar system to build a training curriculum. Implement a countrywide U&D awareness campaign. GSA Federal Asset Sales

Incremental Recommendations Phase 2: Medium-term Recommendations (Kick off 3-6 months) More complex to implement, with higher potential impact Develop standard product descriptions and apply standard condition codes in GSAXcessTM. Use historic data to segment asset screening times and improve asset disposal process. Create a central registration system as part of Firstgov that explains all special authorities and where recipients of special authorities can pre-qualify. GSA Federal Asset Sales

Incremental Recommendations Phase 3: Long-term Recommendations (Kick off 6-12 months) Most complex to implement with a longer-term impact Implement agency asset tracking and agency internal reporting. Tie full-time property management positions to pre-specified training. Encourage agencies to use (and enforce) excess as first source of supply more rigorously within their organizations. GSA Federal Asset Sales

Full Asset Life Cycle Management Breakthrough Recommendations Full Asset Life Cycle Management Improved agency asset management will drive substantial improvements in processes, data, and decision making. Any substantive improvement to U&D must address comprehensive asset management. Key issues include: Common data standards and data tracking fields. System compatibility across agencies (perhaps adopting AAMS modules across agencies). Common policies and procedures (e.g., asset disposal plans, asset tracking, consistent use of condition codes, unified taxonomy). Use of emerging technologies (UID, RFID, EPC) and improved inventory management (how to identify excess). GSA Federal Asset Sales

U&D Study Review GSA FSS – GSA OGP – OMB At the outset of recommendation implementation, the Federal Supply Service, Office of Governmentwide Policy, and Office of Management and Budget must reach consensus on future plans. Involve senior-level management from FSS, OGP, and OMB Agree on which recommendations to implement Determine lead and support roles and timing of implementation GSA Federal Asset Sales

Next Steps GSA OGP Leverage the PMEC to develop support Suggested steps for the Office of Governmentwide Policy to implement these recommendations. Leverage the PMEC to develop support Review policy to create incentives Assume leadership in developing standard product descriptions and data consistency Take ownership of Asset Management initiative Development of a project plan, funding strategy, and budget approval process Form and lead an Inter-Agency Steering Committee GSA Federal Asset Sales

Next Steps GSA OGP (cont.) Suggested steps for the Office of Governmentwide Policy to implement these recommendations. Develop training standards for the learning system. Review Special Authorizations for redundancy and streamlining. Evaluate agency compliance with the CFO Act. Collaborate with stakeholders, including FSS. Develop measures to enforce Excess as first source. Improved asset and inventory management practices. Mandatory linking to acquisition platforms GSA Federal Asset Sales

Next Steps OMB Suggested steps for the Office of Management and Budget to implement these recommendations. Support the efforts of OGP and FSS as they implement enhancements. Evaluate feasibility of and potentially conduct a Government-wide Data Call to establish a baseline performance for property disposal. Support OGP’s efforts to lead a Personal Property Asset Management Initiative, and analyze feasibility of establishing an Asset Management Egov Initiative. Work with OGP to evaluate and implement funding strategies for selected recommendations. GSA Federal Asset Sales

Next Steps GSA FSS Suggested steps for the Federal Supply Service to take to implement recommendations. Develop implementation plan for chosen recommendations. Coordinate with stakeholders as appropriate for development and implementation of recommendations. Support OGP in Personal Property Asset Management Initiative. Organize meetings with U&D stakeholders to identify data standards for reporting assets into GSAXcessTM. Develop an implementation plan for standards reporting. GSA Federal Asset Sales

Benefits of Implementation Benefits to the Government, Stakeholders, and Taxpayers from these enhancements charged to OGP. Improved knowledge increases usage. Standardization of codes is the backbone of an efficient system. Special Authority Registration. Enforcement of Excess as first source. (increase procurement avoidance, increase inventory tracking, positive budgetary impact) Improved public policy, based on informed decisions GSA Federal Asset Sales

Thank you for your help and support.

FAS U&D Questions Mitra Nejad Victor Arnold-Bik – Federal Asset Sales Program Manager GSA/FAS 703-872-8607 mitra.nejad@gsa.gov Victor Arnold-Bik – Personal Property Asset Class Manager GSA/FAS 703-872-8634 victor.arnold-bik@gsa.gov GSA Federal Asset Sales