Applying the Memorandum on Data Related to Operations and Maintenance

1. Applying the Memorandum on Data Related to Operations and Maintenance Ivan Graff Office of Acquisition and Project Management Oak Ridge, TN March 27, 2014

2. Agenda • Questions and answers galore! • Purpose and Applicability ( 7 Questions ) • Data Gathering Methods ( 21 Questions ) • Reporting Requirements ( 7 Questions ) • Definitions ( 1 Question ) • Appendix A ( 3 Questions ) • Appendix B ( 6 Questions ) FIMS Annual Comprehensive Training

3. Purpose and Applicability “These implementation procedures for Fiscal Year (FY) 2014 will assist sites and their field and site offices to consistently and accurately collect and report financial data related to the operation and maintenance of real property assets owned or leased by the United States Department of Energy (DOE or Department).” DROMa Sec. 1(a) DOE Order 430.1B, Sec. 5(d)(12) FIMS Annual Comprehensive Training

4. Purpose and Applicability DROMa Sec. 1(c) FIMS Annual Comprehensive Training

5. Purpose and Applicability DROMa Sec. 1(c) FIMS Annual Comprehensive Training

6. Purpose and Applicability “Programs and support offices with real property holdings (Programs) may implement alternate procedures in consultation with the Senior Real Property Officer or his designee (SRPO) that ensure the Department continues to meet its reporting commitments.” DROMa Sec. 1(b) FIMS Annual Comprehensive Training

7. Purpose and Applicability “commentary” FIMS Annual Comprehensive Training

8. Purpose and Applicability “Collect and report the actual and estimated costs listed above for the following types of real property and in which the Department has the following kinds of interest . . . . Land parcels of any ownership type, limited to annual operations costs only” DROMa Sec. 1(d)(ii) FIMS Annual Comprehensive Training

9. Data Gathering Methods “Annual Required Maintenance Costs . . . “Collect these asset-level cost estimates as directed by the Lead Program Secretarial Office (LPSO) or Cognizant Secretarial Office (CSO).” DROMa Sec. 2(a)(i) FIMS Annual Comprehensive Training

10. Data Gathering Methods “Annual Required Maintenance Costs . . . “Omit maintenance the site does not plan to accomplish in FY 2014, whether funded in FY 2012 or before, or deferred to FY 2014 or later.” DROMa Sec. 2(a)(i)(5) FIMS Annual Comprehensive Training

11. Data Gathering Methods “fully-burdened” DROMa Sec. 2(a) through 2(c) FIMS Annual Comprehensive Training

12. Data Gathering Methods “asset-level” DROMa Sec. 2(a) through 2(c) FIMS Annual Comprehensive Training

13. Data Gathering Methods “Annual Actual Maintenance Costs . . . “Do not allocate corrective maintenance costs. Use maintenance and financial management systems to minimize a site’s reliance on allocation of predictive and preventive maintenance and surveillance and maintenance costs.” DROMa Sec. 2(a)(ii)(3) FIMS Annual Comprehensive Training

14. Data Gathering Methods “Quarterly Maintenance Costs . . . “Collect these site-level, fully-burdened actual costs for predictive, preventive, and corrective maintenance or surveillance and maintenance incurred in FY 2014 from a site’s maintenance and financial management systems, distinguishing between: (a) Direct funded maintenance, and (b) Indirect funded maintenance” DROMa Sec. 2(a)(iii) FIMS Annual Comprehensive Training

15. Data Gathering Methods “Operations . . . “Collect the fully-burdened costs for electricity, water/sewer, pest control, central heating, central cooling, snow removal, gas, refuse, recycling, grounds, janitorial, and rent incurred in FY 2014 by (1) sites and (2) assets such that the sum of all asset-level costs for a site equals the site level total costs.” DROMa Sec. 2(b)(i) FIMS Annual Comprehensive Training

16. Data Gathering Methods “Operations . . . “Collect the fully-burdened costs for electricity, water/sewer, pest control, central heating, central cooling, snow removal, gas, refuse, recycling, grounds, janitorial, and rent incurred in FY 2014 by (1) sites and (2) assets such that the sum of all asset-level costs for a site equals the site level total costs.” DROMa Sec. 2(b)(i) FIMS Annual Comprehensive Training

17. Data Gathering Methods “Operations . . . “Collect the fully-burdened costs for electricity, water/sewer, pest control, central heating, central cooling, snow removal, gas, refuse, recycling, grounds, janitorial, and rent incurred in FY 2014 by (1) sites and (2) assets such that the sum of all asset-level costs for a site equals the site level total costs.” DROMa Sec. 2(b)(i) FIMS Annual Comprehensive Training

18. Data Gathering Methods “Operations . . . “Omit betterment costs or payments to providers of information technology, communications, security, or parking fee collections management services.” DROMa Sec. 2(b)(ii) FIMS Annual Comprehensive Training

19. Data Gathering Methods “Operations . . . “Omit betterment costs or payments to providers of information technology, communications, security, or parking fee collections management services.” DROMa Sec. 2(b)(ii) FIMS Annual Comprehensive Training

20. Data Gathering Methods “Operations . . . “Appendix A provides an alternative compliance approach for sites that do not know one or more of an asset’s operations costs.” DROMa Sec. 2(b)(iv) FIMS Annual Comprehensive Training

21. FIMS Operation Costs Allocation • Tally the manually-entered asset-level operation costs. • Subtract from this tally the total of all site-level operation costs. • FIMS allocates the balance to buildings and trailers without operation cost entries • For non-utility costs • By Gross Sqft. • For utility costs • By Gross Sqft. • By Hours of Operation FIMS Annual Comprehensive Training

22. Data Gathering Methods “Deferred Maintenance and Repair Needs . . . “Complete a CAS for each asset no later than 1,826 days (five years) following its acquisition, its previous CAS, or sooner” DROMa Sec. 2(c)(ii) FIMS Annual Comprehensive Training

23. Data Gathering Methods “Deferred Maintenance and Repair Needs . . . “Complete a CAS for each asset no later than 1,826 days (five years) following its acquisition, its previous CAS, or sooner” DROMa Sec. 2(c)(ii) FIMS Annual Comprehensive Training

24. Data Gathering Methods “Deferred Maintenance and Repair Needs . . . “When conducting multiple CAS on a single asset: (1) Complete surveys for all component systems within a single fiscal year; and (2) Note each survey date.” DROMa Sec. 2(c)(iii) FIMS Annual Comprehensive Training

25. Data Gathering Methods “Deferred Maintenance and Repair Needs . . . “[D]etermine for each real property asset . . . Whether or not component system deficiencies have exceeded their optimum period as of the end of the fiscal year.” DROMa Sec. 2(c)(iv)(4) FIMS Annual Comprehensive Training

26. Data Gathering Methods “Deferred Maintenance and Repair Needs . . . “Some sites will additionally note utility consumption, conservation opportunities, and potential betterments during their CAS.” DROMa Sec. 2(c)(iv) Commentary FIMS Annual Comprehensive Training

27. Data Gathering Methods “Deferred Maintenance and Repair Needs . . . “Use the following sources only to support or corroborate CAS results: (1) Unexecuted corrective maintenance work orders, and, (2) Special studies or inspection reports (e.g., elevator or roof inspections).” DROMa Sec. 2(c)(vii) FIMS Annual Comprehensive Training

28. Data Gathering Methods For example: DM2010 = $10,000 DM2014 = DM2010 X 1.07 DM2014 = $10,700 . . . or use R.S. Means Use for either deferred maintenance - or - repair needs DROMa Sec. 2(c)(ix) FIMS Annual Comprehensive Training

29. Data Gathering Methods “Deferred Maintenance and Repair Needs . . . “Select person(s) to determine an asset’s optimum period who: (1) have not participated in its CAS; and, (2) support real property oversight at the site.” DROMa Sec. 2(c)(x) FIMS Annual Comprehensive Training

30. Data Gathering Methods DROMa Sec. 2(c)(xii) FIMS Annual Comprehensive Training

31. Reporting Requirements “Ensure that FIMS contains a complete inventory of land parcels, buildings, real property trailers, and structures owned or leased by the Department or the General Services Administration on behalf of the Department per 41 CFR § 102–84.4” DROMa Sec. 3(a) FIMS Annual Comprehensive Training

32. Reporting Requirements “Submit in a spreadsheet quarterly maintenance information that includes both direct and indirect funded maintenance costs incurred in each quarter of FY 2014 by program and by site.” DROMa Sec. 3(b)(i) FIMS Annual Comprehensive Training

33. Reporting Requirements “Enter a value of zerowhen . . . [s]itemanagement has no valid basis for estimating the cost.” DROMa Sec. 3(b)(ii)(2) FIMS Annual Comprehensive Training

34. Reporting Requirements “Record in each asset’s FIMS Inspection Date the date of the final CAS during the fiscal year. . . . Do not enter future dates.” DROMa Sec. 3(c) FIMS Annual Comprehensive Training

35. Reporting Requirements DROMa Sec. 3(d) FIMS Annual Comprehensive Training

36. Reporting Requirements DROMa Sec. 3(d) FIMS Annual Comprehensive Training

37. Reporting Requirements “The SRPO will fulfill the Department’s reporting obligations using the data as submitted by the sites without further computations, subject to the exceptions outlined in Appendix B of this guidance.” DROMa Sec. 3(e) FIMS Annual Comprehensive Training

38. Definitions Sources DROMa Sec. 4 FIMS Annual Comprehensive Training

39. Appendix A “Hours of Operation” DROMa App. A FIMS Annual Comprehensive Training

40. Appendix A Central Heating & Cooling DROMa App. A FIMS Annual Comprehensive Training

41. Appendix A Rent DROMa App. A FIMS Annual Comprehensive Training

42. Appendix B Applying Your Data DROMa App. B FIMS Annual Comprehensive Training

43. Appendix B “Determining the sufficiency of either planned or actual maintenance investments in a single year using the National Research Council Federal benchmark of between two and four percent of replacement value, with the expectation of an additional one to two percent. . . when the asset condition index of a program’s considered portfolio falls below 0.95.” DROMa App. B(1)(a) FIMS Annual Comprehensive Training

44. Appendix B “Annual actual maintenance . . . “Usage Codes: All except for 3000 series programmatic real property structures. “Replacement values . . . “Usage Codes: All” DROMa App. B(1)(b) and (c) FIMS Annual Comprehensive Training

45. Appendix B “The SRPO will prepare for publication the sum of all of the asset-level deferred maintenance . . . “Status: Operating, Operational Standby, Shutdown Pending Transfer, Operating Pending D&D, and Operating Under an Outgrant” DROMa App. B(2)(b) FIMS Annual Comprehensive Training

46. Appendix B “The SRPO will report to auditors under a long-standing courtesythe . . . deferred maintenance [of excluded assets]” DROMa App. B(2)(c) FIMS Annual Comprehensive Training

47. Appendix B “The SRPO will submit the sum of each asset’s operations and annual actual maintenance costs. For more details, see the annual Federal Real Property Profile reporting guidance memorandum issued by the SRPO.” DROMa App. B(3) FIMS Annual Comprehensive Training

48. Aerial Photo of Y-12 (Late 1940’s) • “For Further Information . . .” • Ivan Graff • (202) 586-8120 • Ivan.graff@hq.doe.gov DROMa Sec. 5(a) • Get the Q & A’s here: • http://go.usa.gov/Kpk4 FIMS Annual Comprehensive Training