Depart of Energy RE/FIMS Workshop 2011

1. Depart of EnergyRE/FIMS Workshop 2011 • REAL ESTATE

2. DOE’s Real Estate Landscape • DOE Real Property Portfolio • 50 Major Sites • Total Number of Assets 19,411 • Land Acres 2.3 million • (1.5 million is withdrawn Public Domain land) • Total Building Area 129 million GSF • Number of Buildings 10,920 • Number of Structures 7,793 • Total Property Value $96.8 billion • Leases (next slide)

3. DOE’s Real Estate Landscape(continued) • Leases • Lease Type< 5,000 SF<10,000 SF>10,000 SFTOTAL • GSA 8 5 7 20 • GSA owned 10 2 17 29 • DOE Leased 10 10 21 41 • Contr Leased 135 37 136 308 • TOTALS 163 54 181 398 • Pct. Total 40% 14% 46%

4. What Is Real Estate ? • Includes: Land, Improvements, Infrastructure, Rights that exist in real estate • Is NOT: Personal Property • 39 persons engaged in real estate activities; 21 professional certified realty specialists across DOE complex (13 are level 2 certified) • HQ: Senior Real Property Officer, Senior Realty Officer (MAI), Senior Realty Specialist (RPA & FMA – BOMA), Realty Specialist (JD)

5. What Does Real Estate Do ? • Provides expertise to DOE and its operational components, including contractors, in these areas: • Real Estate Program Management -- Community Affairs • Policy Development • Project Reviews • Recognized disciplines in DOE real estate: • Acquisition -- Management and Disposal • Lease Acquisition • Real estate interfaces closely with OGC, CFO, Program Offices, OMB, GSA • Conducts instructional sessions for Certified Realty Specialists across complex and provides general guidance • Due to personnel shortages, Senior Realty Officer is the Certified Realty Specialist for these site offices: • Savannah River -- NETL • Idaho -- NREL

6. Recognized disciplines in DOE real estate • Acquisition • Fee Simple Purchase • Fee Simple Donations • Acquisition by Eminent Domain • Lease Acquisition • Acquisition by Lease • Permits and Licenses • Easements and Right-Of-Way Acquisitions

7. Recognized disciplines in DOE Real Estate (continued) • Management and Disposal • Oversee M & O Contractor Lease Acquisitions IAW published guidelines • Oversee and manage DOE Lease Acquisitions outside of NCR IAW published guidelines • Oversee development of GSA Occupancy Agreements for leased and federally-owned space outside of NCR • Monitor process for out-leasing of DOE Site real estate • Disposal for Economic Development • Disposal for Sale • Disposal for Public Body Use • Disposal By Lease

8. How can we optimize use of Real Estate assets ? • Institute Space Standards • Consolidation of Space Within and Among Programs • Facility Sharing (with other Federal Agencies and with Private Sector (lease/rent)) • Enhanced Use Leasing (EUL) • Power Purchase Agreements (PPA) • Public/Private Ventures (PPV) • Asset Reutilization Initiative • Energy Parks

9. How can we reduce the costs of Real Estate ? • Modernization of Existing Facilities and Infrastructure • Sustainability of Facilities’ Operations • Reduce Carbon Footprint • Smart Design for New Facilities (avoids Obsolescence) • Space Standards • Leed/Green buildings • Smart Leases • Recompete less favorable leases • Optimize size, function, utilities/energy • Leed/Green buildings • Dedicated D&D budget

10. How can we reduce the costs of Real Estate ?(continued) • Co-locating with Private Partners/Education Partners • Mixed Use • Smart Lease Acquisition to replace Existing (size, functionality, sustainability, energy efficiency) • Energy Savings Performance Contracts (ESPC) • Utility Energy Service Contracts (UESC) • Merging similar facilities from different sites (data centers, laboratories, etc.) • Synergy vs. Competition