FIMS Real Estate Workshop Dino Herrera, PE, PMP Deputy Assistant Deputy Administrator, Office of Infrastructure and

1. One NNSA Aborning FIMS Real Estate Workshop Dino Herrera, PE, PMP Deputy Assistant Deputy Administrator, Office of Infrastructure and Construction 13 June 2010

2. NNSA on the Move • Today I will share the still aborning NNSA Real Property Strategy Update • In addition, I am here to tell you the NNSA is fashioning itself to become more agile, physically smaller, but intellectually and practically smarter • It is a pleasure to speak to this group that has improved the NNSA Facilities and Infrastructure portfolio in so many ways

3. NNSA Direction Vision: A smaller, safer, more secure and less expensive enterprise that leverages the scientific and technical capabilities of our workforce to meet all our national security requirements • Transform from a 20th century Cold War nuclear weapons complex into a 21st century nuclear security enterprise while: • Reducing cost • Assuring safety, security and reliability • Maintaining the U.S. Government position of no UGTs • Changing the infrastructure

4. View from the Top • I provided you with the NNSA’s Vision and Direction, which remains constant • And, pointed out why the NNSA and DOE depend on your creative, innovative, in general hard work burnishing the FIMS Database • But we remain dynamic • One NNSA – as provided by Ms. Neile Miller, NNSA’s Deputy Administrator

5. Mission MISSION Infrastructure Management & Administration Infrastructure Management & Administration Our Evolution

6. Business as Usual is not Good Enough It’s One NNSA We have to challenge the “received wisdom”. We have to do what it takes to spread that message to all levels of our organizations… up AND down. Our success is tied to all of us knowing that we sink or swim together.

7. We are one NNSA • We are Professionals • We are Smart Money • We are Partners for the Future Headquarters vs. Field, Contractors vs. Feds, Mission vs. Mission Support

8. We are on our way there HQ Reorganization Governance and Oversight Smart Facilities and Infrastructure Strategies Cohesive Departmental Policy and Partnership between OECM and Programs

9. Administrator & Under Secretary for Nuclear Security: Thomas P. D’Agostino Principal Deputy Administrator: Neile L. Miller Office of Science and Policy - Chief Scientist - Senior Advisors for Policy Chief of Staff Associate Principal Deputy Administrator Chief of Defense Nuclear Safety Mission Deputy Under Secretary for Counterterrorism Deputy Admin. for Defense Nuclear Nonproliferation NA-20 Deputy Admin. for Naval Reactors NA-30 Assoc. Admin. for Emergency Operations NA-40 Assoc. Admin. for Defense Nuclear Security NA-70 Deputy Admin. for Defense Programs NA-10 M i s s i o n S u p p o r t Site Offices Associate Admin. for Acquisition & Project Management NA-APM Associate Admin. for Management & Budget NA-MB Associate Admin. for Information Management/ Chief Information Officer NA-CIO Associate Admin. for External Affairs NA-EA Associate Admin. for Safety & Health NA-SH General Counsel NA-GC Service Center NA-SC Human Capital Management Acquisition Management Nuclear Safety Congressional Affairs PA Public Affairs Enterprise Project Management Administrative Services ES&H Intergovernmental Affairs: PPBE

10. Administrator & Under Secretary for Nuclear Security: Thomas P. D’Agostino Principal Deputy Administrator: Neile L. Miller Office of Science and Policy - Chief Scientist - Senior Advisors for Policy Chief of Staff Associate Principal Deputy Administrator Chief of Defense Nuclear Safety Mission Deputy Under Secretary for Counterterrorism Deputy Admin. for Defense Nuclear Nonproliferation NA-20 Deputy Admin. for Naval Reactors NA-30 Assoc. Admin. for Emergency Operations NA-40 Assoc. Admin. for Defense Nuclear Security NA-70 Deputy Admin. for Defense Programs NA-10 M i s s i o n S u p p o r t Site Offices Albuquerque Site Office Associate Admin. for Acquisition & Project Management NA-APM Associate Admin. for Management & Budget NA-MB Associate Admin. for Information Management/Chief Information Officer NA-CIO Associate Admin. for External Affairs NA-EA Associate Admin. for Safety & Health NA-SH General Counsel NA-GC Base Ops SNL Oversight Human Capital Management Acquisition Management Nuclear Safety Congressional Affairs PA Program and Functional Residents Public Affairs Enterprise Project Management Administrative Services ES&H Intergovernmental Affairs: PPBE

11. Administrator & Under Secretary for Nuclear Security: Thomas P. D’Agostino Principal Deputy Administrator: Neile L. Miller Office of Science and Policy - Chief Scientist - Senior Advisors for Policy Chief of Staff Associate Principal Deputy Administrator Chief of Defense Nuclear Safety Mission Deputy Under Secretary for Counterterrorism Deputy Admin. for Defense Nuclear Nonproliferation NA-20 Deputy Admin. for Naval Reactors NA-30 Assoc. Admin. for Emergency Operations NA-40 Assoc. Admin. for Defense Nuclear Security NA-70 Deputy Admin. for Defense Programs NA-10 NA-DP-ABQ M i s s i o n S u p p o r t NA-NN-ABQ NA-DNS-ABQ Site Offices NA-FM-ABQ Associate Admin. for Acquisition & Project Management NA-APM Associate Admin. for Management & Budget NA-MB Associate Admin. for Information Management/Chief Information Officer NA-CIO Associate Admin. for External Affairs NA-EA Associate Admin. for Safety & Health NA-SH General Counsel NA-GC NA-FM-ABQ Human Capital Management Acquisition Management Nuclear Safety NA-GC-ABQ Congressional Affairs NA-PR-ABQ NA-HR-ABQ PA Public Affairs Enterprise Project Management Administrative Services ES&H NA-PA-ABQ Intergovernmental Affairs: PPBE

12. Governance and Oversight NNSA and Departmental Management Directed Drivers include Industry Standard Equivalent Performance, Less Duplicative Requirements and an expectation of efficient business processes with cost recovery models that will provide for reinvestment Regulatory driven requirements must still be met and if not performed by the Federal Staff, must be performed by the M&O staffs (for example Real Estate Lease Technical Reviews) This will be an evolving process with growing pains until roles, responsibilities and expectations fully understood

13. FIMS Makes A Difference • Said last year but it bears repeating “FIMS threads its way through our facility operations on many levels”, which makes me dependent upon your work • My organization, from the beginning of NNSA, supported the growth, development, and evolution of this vital database • I depend upon FIMS to provide the basis for measurement of progress and failure in my world of recapitalization, utility line items, and facility deactivation and demolition • I depend upon FIMS to provide the basis for discerning trends and allowing me to compare and contrast information appearing in our TYSP • Bottom Line – Press on with your effort to improve the quality of the data – hold us all accountable” – and you do!

14. A Major Sea Change • Respice • Adspice • Prospice

15. NNSA Real Property Strategy Respise - Examine the past, Adspice - examine the present, Prospice - examine the future Look to the past, the present, the future!

16. A Major Sea Change • Respice – Looking Back • The Facilities & Infrastructure Recapitalization Program – FIRP successfully completes with institutionalizing state-of-the-art best practices and procedures • FIMS comes of age and is a central player in my Corporate Facilities Management Program • The NNSA weapons complex morphs into the nuclear security enterprise and the physical plant is much better now than 12 years ago • The legacy of huge deferred maintenance is reduced • The enduring physical plant has realized life extension • RAMP, a flash of brilliance, moves water from our roofs instead of funneling in to the workplace • Smart people continue to develop initiatives that make a difference and replicate RAMP for enterprise-wide applications

17. A Major Sea Change, cont. • Adspice – Where we are today • Possibly a nadir for resources for the next few years • Focus on becoming more agile, deft in responding to mission needs, and recognizing that we must make every dollar we manage buys the correct thing • NNSA reorganizes to meet extant challenges in the peculiar circumstances of today • Everyone works harder and smarter • We all draw closer through the understanding that as professionals we must take today’s success into tomorrow and build upon it • So – let’s agree to meet again next year and discuss our “continuing resolution”

18. A Major Sea Change, cont. • Prospice – The future • Continue to organize for success • The Corporate Facilities Management Continuum , if you will, continues – we construct, maintain, refurbish, determine useful life, and at its end – we dispose our unneeded excess • FIRP looked back to eliminate the legacy backlog • Our next step is to look forward along the CFM continuum • I define the future based upon what I have learned over the past decade managing FIRP – mission and capabilities drive the future • And, Sustainability and Real Property Management are added to my menu of activities and broaden my focus • Let me explain …

19. Sustaining the Mission • The NNSA Administrator’s Key Goals: • The NNSA Administrator has derived five key goals for the coming decade as the NNSA implements its responsibilities under the President’s comprehensive nuclear security agenda: • Reduce nuclear dangers • Manage the nuclear weapons stockpile and advance naval nuclear propulsion • Modernize the NNSA infrastructure • Strengthen the science, technology, and engineering base • Drive an integrated and effective Enterprise

20. Life-Cycle of NNSA Real Property Asset per DOE Order 430.1 B

21. Capability Investments • Modernize the NNSA Infrastructure: • Shape the infrastructure to assure we have the core capabilities necessary to execute our mission responsibilities and create a 21st century Nuclear Security Enterprise. • In 20 years, the physical infrastructure will have evolved significantly from a post-World War II/Cold War era nuclear weapons complex into a more efficient 21st century NSE with less environmental impact. • Vital mission functions will be sustained by a modernized physical infrastructure for plutonium, uranium, tritium, and high-explosive production, non-nuclear component production, high‑fidelity testing, and waste disposition.

22. NNSA Real Property Strategy“Fast Forward” • The NNSA has performed extensive Programming to propose resource loaded strategies beginning in FY 13 to address • Sustainability • Disposition of Excess Facilities • Capability Based Life Extension of Facilities and Infrastructure • Infrastructure Line Item projects that support the mission • Electrical Line Items Supporting Next Generation of Super Computers • Fire Suppression Lead In Piping • Over 25 Utility System Upgrades • Next Generation Institutional Corporate Facilities Management

23. Takeaway Message • The NNSA is a dynamic organization with a leading edge for change and building on past successes • We remain aware that mission drives our enterprise • We relate to the circumstance of spare resources and therefore look to manage prudently by combining with professionals like you to help us execute our corporate approach to managing the physical plant and our real property • And we can’t thank you enough for the terrific job that you do in realm of providing a quality real property portfolio The good news here is that with the recent improvements to Organization, Governance and Oversight Models, Smart Strategies and Cohesive Partnerships the future is bright