Civilian BRAC/Civilian Property Realignment July 20, 2011

2011 ADC ANNUAL CONFERENCE| PAGE 3 3 Civilian BRAC/Civilian Property Realignment  Where do we stand?  Why is this happening?  What does or could this mean?  How would it work?  CBO Analysis  Key issues to watch

2011 ADC ANNUAL CONFERENCE| PAGE 4 4 Where we stand?  President’s 2012 budget proposal called for a BRAC approach to expedite the disposal of unneeded property; estimated savings of $15 billion  House led by Congressman Denham (R-CA), Chair of the Subcommittee on Economic Development, Public Buildings and Emergency Management has released HR 1734, Civilian Property Disposal Act; Voted out of subcommittee and awaiting full committee vote  Senate led by Senator Carper (D-DE) has started exploring concept; held hearing in June; anticipate dropping bill in August

2011 ADC ANNUAL CONFERENCE| PAGE 5 5 Why is this happening?  “To decrease the decificit by realigning, consolidating, selling, disposing, and improving the efficiency of federal buildings and other civilian real property”

2011 ADC ANNUAL CONFERENCE| PAGE 6 6 What does/could this mean?  Disposal of excess property agencies don’t want (OMB website link)  or  Significant evaluation and transformation of federal footprint

2011 ADC ANNUAL CONFERENCE| PAGE 7 7 How would it work? (House plan)  Would includes all federal real property minus military installations and properties with national security interest  Establish commission/staff structure similar to BRAC in makeup (House plan for independent commission/WH commission reports to OMB)  Agencies submit recommendations to commission  Commission reviews recommendations based on criteria they establish (list of criteria)

2011 ADC ANNUAL CONFERENCE| PAGE 8 8 How would it work? (House plan)  At multiple increments each year, the commission would release recommendations  Congressional/Presidential Process similar to BRAC  Implementation – House plan involves commission and federal agencies; WH plan uses GSA  Proceeds from sale – both plans include some split of proceeds with federal agencies

2011 ADC ANNUAL CONFERENCE| PAGE 9 9 CBO Analysis of President’s Plan  Estimates that property disposal would not result in significant additional sales receipts – it would not significantly increase the proceeds from sale of unneeded federal property  BRAC has resulted in only modest sales  Other previous efforts to dispose of unneeded property had mixed results (examples: Governor’s Island and Presidio)

2011 ADC ANNUAL CONFERENCE| PAGE CBO Analysis of President’s Plan  Many agencies with unneeded but valuable property would have little additional incentive to sell it  Current inventory of excess property has uncertain market value and is already being disposed under current law  Plan could reduce the need for future appropriations to maintain real property

2011 ADC ANNUAL CONFERENCE| PAGE Key Issues to Watch  Issa vs Denham  CBO Scoring  Senate approach  Breaking apart the proposal