Update Department of Energy Asset Management Plan

1. Update Department of EnergyAsset Management Plan Annual FIMS Comprehensive Training March 25, 2014

2. Executive Order 13327, Federal Real Property Asset Management • Established role and responsibilities of the Agency Senior Real Property Officer, to • Develop and implement an agency asset management planning process • Monitor real property asset management consistent with - • Agency strategic plan goals and objectives • Real property asset management principles • Annually provide - • Information that lists and describes real property assets • Other relevant information requested by OMB and GSA Update DOE Asset Management Plan

3. Real Property Asset Management • Support agency missions and strategic goals • Use public and commercial benchmarks and best practices • Employ life-cycle cost-benefit analysis • Promote full and appropriate utilization • Dispose of unneeded assets • Provide appropriate levels of investment • Accurately inventory and describe all assets • Employ balanced performance measures • Advance customer satisfaction • Provide for safe, secure, and healthy workplaces FRPC Real Property Management Principles Asset Management Asset Management is the systematic and coordinated activities and practices through which an organization optimally and sustainability manages its assets and asset systems, their associated performance, risks and expenditures over their life cycles for the purpose of achieving its organizational strategic plan – PAS 55-1:2008 Update DOE Asset Management Plan

4. DOE Real PropertyAsset Management Plan, 2005 • Real Property Management Goals • Property Alignment – The portfolio of property assets meets current and future agency missions. • Property Quality – The portfolio of property assets is in a condition to adequately support intended mission requirements and provide a quality workplace. • Portfolio Management – The portfolio of property assets will be effectively and efficiently managed. The Department of Energy’s portfolio of property assets is integral to the accomplishment of its core mission. The portfolio will be managed efficiently and effectively to ensure that the portfolio can meet current and future needs, when and where they are needed, by the most economical means available. Update DOE Asset Management Plan

5. DOE Real PropertyAsset Management Plan, 2005 • Planning Process • Ten-Year Site Plan • Performance Measures • Condition Index • Facility Utilization Index • Operating costs – at the constructed asset level • Mission Dependency –mission critical; mission dependent, not critical; or not mission dependent • Data Collection • Facilities Information Management System • Performance Targets and Reporting • Three Year Rolling Timeline Update DOE Asset Management Plan

6. Why? • Significant changes in operating environment • Energy Policy Act of 2005 / Energy Independence and Security Act of 2007 • Federal Buildings Personnel Training Act of 2010 • EO 13423, Strengthening Federal Environmental, Energy, and Transportation Management • EO 13514, Federal Leadership in Environmental, Energy, and Economic Performance • EO 13653, Preparing the United States for the Impacts of Climate Change • OMB M-07-10, Development of a Real Property Cost Savings and Innovation Plan • OMB M-22-11, Realignment of Federal Real Estate • OMB M-12-12, Promoting Efficient Spending to Support Agency Operations • OMB MPM No. 2013-02, Implementation of OMB Memorandum M-12-12, Section 3: Freeze the Footprint • Concern voiced by external stakeholders including GAO • Growing interest in Asset Management • GAO High-Risk Area • Property Systems of Record are “financial feeder systems” Update DOE Asset Management Plan

7. Why? • Modernize a foundational management document • Reflects current challenges and opportunities • Addresses all DOE plant, property, and equipment • Promote efficient and effective use of assets and resources • Support informed, risk-based, prioritized resource allocation Update DOE Asset Management Plan

8. Why Now? • Align asset management with new DOE strategic plan • Goal 1 - Science and Energy • Goal 2 – Nuclear Security • Goal 3 - Management and Performance • Comply with Government Performance and Results Act (GPRA) • Provide performance metrics and benchmarks Update DOE Asset Management Plan

9. DOE Asset Management Plan, 2014 Desired Outcome: A strategic-level plan that improves operational and financial management of DOE’s property in support of mission accomplishment Update DOE Asset Management Plan

10. Project Engagement: Roles andResponsibilities Work Groups: Personal Property Real Property & Real Estate Contractor Voice: Strategy Testing and “Reality check” Steering Committees: “Azimuth check” and Concurrence • Prioritize Actions • Evaluate and Recommend Options • Review Documentation • Validate Work Group Recommendations • Select Options • Review Documentation • Advise Work Groups • Test Strategies • Level of Effort • Participate in 5-6 WG meetings • Understand current Program asset management processes • Share Program processes and constructively comment on options • Represent Program office position • Level of Effort • Participate in 4-5 SG meetings • Share Program perspective • Validate recommended options • Participate in Collaborative Action Process • Level of Effort • Participate in 4-5 WG meetings • Share site processes and constructively comment on options • Share perspectives on implementation • Validate recommended options Acquisition Policy, CFO, Environmental Policy, GC, Project Management, SPO, Property Management Project Support: Facilitation, Analysis, Data Collection, Benchmarking, Opportunity Identification, Documentation Update DOE Asset Management Plan

11. Work Group Membership Update DOE Asset Management Plan

12. Project Schedule & Progress Project Phase Work Group Meeting FISC/PPMSC Meeting Update DOE Asset Management Plan

13. Scope Definition - Audience The DOE Asset Management Plan is intended for: • External Audiences: OMB, GSA, GAO, & others who monitor • DOE Leadership: resource allocation decision makers • DOE Staff & Contract Partners: practitioners who get the work done Update DOE Asset Management Plan

14. Scope Definition–Plan Boundaries • Update Real Property Asset Management Plan, 2005 • Real Property and Real Estate • New requirements from higher-level authorities • Address Personal Property Management • Includes motor vehicles • Does not include: aircraft, watercraft, trains, classified property, nuclear weapons, nuclear material, intellectual property, internal use software, records or information • Use voluntary consensus standards as a guide • Publically Available Standard (PAS) 55-1, 2008 • ASTM E53, Standards for Asset Management • Recognize and Rely on existing Departmental Guidance • Capital Asset Acquisition • Sustainability • Cultural and Natural Resources • Historic Preservation • Safety • Aviation Management and Safety • Motor Vehicles Update DOE Asset Management Plan

15. Asset Management Plan Shelf-life Authorities Review Timeframes Statutes EOs & OMB Circulars Regulations DOE AMP DOE Strategic Plan DOE Directives SOGOOD SOFAR Update DOE Asset Management Plan

16. Framework for an UpdatedAsset Management Plan • Publically Available Specification (PAS) 55:1 Update DOE Asset Management Plan

17. Improving Asset Management –Real Property & Real Estate Update DOE Asset Management Plan

18. Improving Asset Management –Personal Property Update DOE Asset Management Plan

19. Outline for Updated AssetManagement Plan • Integrated Presentation • Conceptual Outline: • Introduction, Mission, Vision, Goals • Policy and Planning Considerations • Guiding Principles; Management Directives • Asset Management System; Drivers/Enablers • Life Cycle Management • ES&H/Security; Socio-economic Responsibility; Sustainability/Climate Change Adaptation • Decision Making; Industry Benchmarking • Accountability and Responsibilities • Planning Implementation • Integrated Approach • Measuring & Reporting Performance • Management Systems • Performance Measures • Reports • Progress and Trends • Personnel Training and Qualifications Update DOE Asset Management Plan

20. Performance Targets and Reporting • State of Facilities Annual Report (SOFAR) • Presentation of Asset Management Plan goals and measures • Based on FIMS data • Prepared each March • Summary of Goals, Objectives, and Other Decisions (SOGOOD) • Assumes the role of the Three Year Rolling Timeline Update DOE Asset Management Plan

21. Questions • Cindy Hunt, PE, PMP, CCE, CFM, LEED AP • Facilities Engineer • U.S. Department of Energy • Office of Acquisition and Project Management • Office of Property Management (MA-65) • 1000 Independence Ave, SW Washington DC 20585 • 202.586.4539 • CIndy.Hunt@hq.doe.gov Update DOE Asset Management Plan

22. Back Up Update DOE Asset Management Plan

23. Property Management Principles Federal Real Property Council Guidance GSA Personal Property Principles • Support agency missions and strategic goals • Use public and commercial benchmarks and best practices • Employ life-cycle cost-benefit analysis • Promote full and appropriate utilization • Dispose of unneeded assets • Provide appropriate levels of investment • Accurately inventory and describe all assets • Employ balanced performance measures • Advance customer satisfaction • Provide for safe, secure, and healthy workplaces • Maximize the return on your investment • Manage the inventory effectively • Minimize the cost of your management systems • Make excess the first source of supply • Maximize reuse • Meet national disposition objectives • Enhance recycling and energy conservation efforts • Ensure property managers are well trained Update DOE Asset Management Plan

24. Asset Management…the Asset Management System Legal and regulatory requirements and expectations (customers, stakeholders, regulators, employees, suppliers, society) Other DOE requirements and systems Department of Energy strategic plan Asset management system Asset management policy Asset management strategy Asset management objectives Asset management plans Continual improvement Acquire / create Utilize Maintain Renew / dispose DOE values, functional standards, required processes Portfolio of asset systems and assets (diversity of types, criticalities, condition and performance) Performance and condition monitoring Asset management enablers and controls

25. Task Approach • The project team has developedpath forward that: • Relies on the collaboration of a wide range of stakeholders • Employs a systematic framework to guide team progress • Allows a realistic schedule • Is integrated with existing performance methods • Results in a clear final deliverable - • an updated DOE Asset Management Plan Update DOE Asset Management Plan

26. Property Inventory DOE HQ-level Policy/Guidance Construction in Progress $21.6 B Buildings Structures & Trailers $105 B Land <$0> Program-level Policy/Guidance DOE Fleet* $35M Personal Property $19.3 B Site-level Policy/Guidance Count of Inventory Items *acquisition cost for 26% of fleet owned by DOE – additional lease costs $88M per year Update DOE Asset Management Plan