Update Department of Energy Asset Management Plan

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Presentation transcript:

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

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, 2004 - 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

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 13327 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

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

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

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. 2013-02, 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-07-895T, 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-09-271, High-Risk Series, An Update GAO-11-520T, Federal Real Property, Progress Made on Planning and Data, but Unneeded Owned and Leased Facilities Remain GAO-11-879T, Federal Real Property, Overreliance on Leasing Contributed to High-Risk Designation GAO-12-542, Questions to Consider When Evaluating Proposals to Consolidate Physical Infrastructure and Management Functions GAO-12-645, Federal Real Property, National Strategy and Better Data Needed to Improve Management of Excess and Underutilized Property GAO-12-646, 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-14-188, 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

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

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 103-62) 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: http://www.whitehouse.gov/omb/mgmt-gpra/index-gpra Update DOE Asset Management Plan March 25, 2014

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

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

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

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

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

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

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

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 55000 – Asset Management – Overview, principles and terminology ISO Standard 55001 – Asset Management – Management systems - Requirements ISO Standard 55000 – 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

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

Improving Asset Management – Personal Property Portfolio Management Provide Personal Property Management Staff with Training and Certification – As-Is Move toward adopting ISO 55000 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

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

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

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 202.586.4539 CIndy.Hunt@hq.doe.gov Update DOE Asset Management Plan March 25, 2014

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

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

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

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

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