Civilian Property Realignment Act

1. Civilian Property Realignment Act The need to reform defined

2. Civilian Property Realignment Act Purpose (OMB VERSION) • “expedite disposal of unneeded Federal civilian real property” • (a) create a fair process resulting in timely disposal and realignment of federal civilian real property; • (b) streamline current legal framework to accelerate disposal; • (c) facilitate disposal of unneeded Federal civilian real properties current subject to legal restrictions preventing their disposal; • (d) reduce operating and maintenance costs ….through disposal…and realignment…..by consolidating, co-locating, and reconfiguring space…; • (e) create incentives for Federal agencies to achieve greater efficiency in their inventories by “enabling” agencies to benefit from sale proceeds; and • (f) assist Federal agencies and USPS in achieving sustainability goals by reducing excess space, inventory, and energy consumption…..

3. Civilian Property Realignment Act Purpose (Congressman Denham’s version) • “(1) consolidate footprint of Federal buildings and facilities; • (2) maximize utilization rate of Federal buildings and facilities; • (3) reduce reliance on costly leased space; • (4) sell or redevelop high values assets that are underutilized to obtain the highest and best value for taxpayer; • (5) reduce operating and maintenance costs……. • (6) reduce redundancy, overlap, and costs associated with field offices, • (7) create incentives to achieve greater efficiency in inventories…. • (8) facilitate and expedite sale or disposal of unneeded civilian properties; and • (9) assist federal agencies in achieving sustainability goals by reducing space, inventory, and energy consumption.

4. Civilian Property Realignment Act Establishes Civilian Property Alignment Board (OMB version) 7 members Board shall conduct public hearings (classified info excluded) published in the Federal Register and on a website 14 calendar days in advance Board determines which hearings are open to the public An agenda will be released with materials relevant to topics to be discussed. Duties Identify opportunities to reduce property, co-locate with USPS Perform an independent analysis of inventory Obtain recommendations from agencies to include: Property that can be sold for proceeds Operational efficiencies Anticipated cost of disposal, transfer, consolidation Federal no cost disposals (PBC’s, McKinney Act) Environmental effects of the disposal transfer, consolidation, co-location

5. Civilian Property Realignment Act • Duties (cont) • Perform an independent analysis of agency recommendations • Publish list of priorities under consideration • Transmit to Director of OMB bianually a report containing findings, conclusions, recommendations • Publish in Federal Register • Post on website

6. Civilian Property Realignment Act • Establishes a commission (Denham version) • 9 members appointed by the President and approved by the Senate • Agencies annually provide to Administrator and FRPC • Current data of all civilian properties owned, leased or controlled • Recommendations shall include: • Properties that can be sold for proceeds and otherwise; • Disposed • Transferred • Exchanged • Consolidated • Colocated • Reconfigured • Redeveloped • Reduce inventory • Reduce operating costs • Operational efficiencies in operation and maintenance

7. Civilian Property Realignment Act • REVIEW • Administrator in consultation with chairperson of FRPC • Review recommendations • Develop standards and criteria • Extent Fed bldg or facility aligns with current mission • Extent there are opportunities to consolidate similar operations (data centers) • Extent and timing of potential costs and savings • Economic impact on existing communities in the vicinity of Federal building or facility • Extent which utilization rate is being maximized and is consistent with non-governmental industry standards • Reduction of reliance on leasing for long-term space needs

8. Civilian Property Realignment Act • REVIEW (cont) • Extent Federal building or facility could be redeveloped or otherwise produce highest and best value • Extent energy consumption is reduced • COMMISSION DUTIES • identify property reduction opportunities • independent inventory analysis • public hearing • recommendations • report to President • post on website • report containing findings • Review by GAO • assist Commission to the extent requested • transmit to Congress and to Commission a report containing detailed analysis of recommendations and selection process

9. Civilian Property Realignment Act • OMB VERSION • Biannually report to Director of OMB • post in Federal Register • post on website • Findings , conclusions and recommendations • Recommendations for co-location of Federal civilian real properties into Postal properties • Instructions on how to accomplish recommendations • Develop a separate list of eligible properties for PBC • Guidelines to include: • Socioeconomic makeup of the community • Interest by the community for EDC • Highest and best use of the property • Amount of environmental remediation needed • Historical status • Co-location with USPS

10. Civilian Property Realignment Act • IMPLEMENTATION (OMB VERSION) • Begin immediately • Commence physical implementation NLT 2 years • Complete all recommendations NLT 6 years • OMB director may extend unique cases by 2 years • IMPLEMENTATION (Denham) • The same as the OMB version EXCEPT: • for actions that will take longer than 6 years due to extenuating circumstances, agencies shall notify the President and Congress with an estimate of time needed to complete the action

11. Civilian Property Realignment Act • Use of Authorities (OMB) • When agency authorities are inconsistent with this Act, this Act’s provisions control implementation • agencies are authorized to contract with GSA for assistance or consultation • Any Board identified real property to be disposed, reconfigured, or otherwise realigned , temporarily freezes any transaction that would impede recommendation from being carried out. • Board shall determine whether and to what extent an agency shall implement a transaction • notwithstanding legal priorities or requirements to • enter into a transaction for less than fair market value or • mandating exclusion of market participants

12. Civilian Property Realignment Act • Use of Authorities (Denham) • When acting on a recommendation, federal agency shall continue to act within existing legal authorities • Commission will decide • to convey property for less than fair market value, • for no consideration, or • exclude market participants • Environmental Considerations (OMB) • early transfer permitted • remediation costs below fair market value grantee pays difference • remediation costs greater than FMV, DOE pays the difference

13. Civilian Property Realignment Act • Environmental Considerations (Denham) • Same as OMB version • Proceeds of sale (OMB ) • Net proceeds ( gross receipts less amounts transferred from Asset Proceeds and Space Management Fund) are to be divided equally between • general fund of the Treasury • Federal executive agencies (for purpose of real property management reinvestment), and • Asset Proceeds and Space Management Fund • In no case shall the general fund receive less than 60% of the net proceeds • Denham version is the same as OMB