1. General Services Administration Federal Asset Sales
Utilization and Donation Study Briefing
April 29, 2004

2. 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

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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. Thank you for your help and support.

20. FAS U&D Questions Mitra Nejad Victor Arnold-Bik
– Federal Asset Sales Program Manager
GSA/FAS
Victor Arnold-Bik
– Personal Property Asset Class Manager
GSA/FAS
GSA Federal Asset Sales