Update Department of EnergyAsset Management Plan

Annual FIMS Comprehensive Training

March 25, 2014

Update DOE Asset Management Plan2

Executive Order 13327, Federal Real Property Asset Management

March 25, 2014

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

Real Property Asset Management

March 25, 20143

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

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

FRPC Real Property Management Principles

Asset Management

Update DOE Asset Management Plan4

DOE Real PropertyAsset Management Plan, 2005

March 25, 2014

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 Plan5

DOE Real PropertyAsset Management Plan, 2005

March 25, 2014

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 Plan6

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”

March 25, 2014

Update DOE Asset Management Plan

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

Why?

7 March 25, 2014

Update DOE Asset Management Plan8

Why Now?

March 25, 2014

Align asset management with new DOE strategic plan Goal 1 - Science and Energy

Goal 2 – Nuclear Security

Goal 3 - Management and Performance

Agency

Mission

Overarching Goals

Strategic Plan with Goals and Outcomes

Annual Performan

ce Plan and

Measures

Annual Performance Report

Comply with Government Performance and Results Act (GPRA) Provide performance metrics and benchmarks

Update DOE Asset Management Plan9

DOE Asset Management Plan, 2014

March 25, 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 Plan10

Project Engagement: Roles andResponsibilities

Work Groups: Personal PropertyReal Property & Real Estate

Prioritize Actions Evaluate and

Recommend Options Review Documentation

Validate Work Group Recommendations

Select Options Review

Documentation

Project Support: Facilitation, Analysis, Data Collection, Benchmarking, Opportunity Identification, Documentation

March 25, 2014

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

Steering Committees: “Azimuth check” and Concurrence

Contractor Voice: Strategy Testing and “Reality check”

Advise Work Groups Test Strategies

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

Update DOE Asset Management Plan11

Work Group Membership

March 25, 2014

Program or Support Office Personal Property Work Group Real Property Work Group

Property Holding Program

Energy Efficiency and Renewable Energy (EE) Greg Collette

Environmental Management (EM) Ken Lewis; Albes Gaona, James Devere

Albes Gaona, James Devere

Fossil Energy (FE) Nate Harvey; Pete Cartwright

Health Safety & Security (HSS) National Training Center

Michael Greene

Legacy Management (LM)Asset Revitalization Initiative (ARI)

Chris Clayton Laura Kilpatrick Tania Smith

Office of Management (MA) Office of Aviation Management (MA-30) Office of Administration (MA-40)

Glen WattmanLisa Peteet Fred Fanning; Mike Shincovich

National Nuclear Security Administration (NNSA) Jim Bullian; Jeanette Alderete;BJ Morris; Lynwood Dukes

Ann Walls; Loida Begley;Sujita Pierpoint, Tom Robinson

Nuclear Energy (NE) Bruce Akers Kim Petry; Dan Shirley; Bill Buyers

Science (SC) Bonnie Anderson Dave MichlewiczSouthwestern Power Administration (SWPA) Mike LoveWestern Area Power Administration (WAPA) Ernest Baier

Support Offices

Health Safety & Security (HS) Office of Sustainability Support (HS-21) Office of Environmental Policy and Assistance (HS-22)

Cate BerardColleen Ostrowski

Office of Property Management (MA-65) Mert Williams, Tyron WareRaam VichareHelene Abbott

David SteinauCindy Hunt

Sustainability Performance Office (SPO) Paul Estabrooks Emily Stoddart

KTR Voice

Energy Facility Contractors Group (EFCOG) Cheri CrossPeggy Plyler

Mike Dunn

Update DOE Asset Management Plan

Project Schedule & Progress

Project Phase Work Group Meeting FISC/PPMSC Meeting

Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14

Scope Definition

Data Collection

External Benchmarking

Gap Analysis & Testing

Documentation

Collaborative Action Process

Scope Definition – Complete

• Establish target audience and plan parameters

Data Collection – Complete

• Identify requirements• Identify existing policies & procedures

External Benchmarking – Complete

• Identify & assess applicable industry standards, benchmarks and best practices

Gap Analysis & Testing – Complete• Conduct gap analysis

• Prioritize gaps and identify alternative strategies

• Select Promising InitiativesDocumentation – In Progress

• Prepare 1st Draft• Collect and Resolve Comments• CAP II

12 March 25, 2014

Update DOE Asset Management Plan13

Scope Definition - Audience

March 25, 2014

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 Plan14 March 25, 2014

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

Scope Definition–Plan Boundaries

Update DOE Asset Management Plan

Asset Management Plan Shelf-life

Authorities Review Timeframes

Authority Annual 4 Years

5-7 Years

until Revised or Rescinded

Statute - Executive OrderOMB Circular - Regulations

P

DOE Directives P

DOE Strategic Plan

P

DOE Asset Management Plan P

P

Annual Facilities Report and Targets  

15 March 25, 2014

Statutes

EOs & OMB

Circulars

Regulations

DOE Strate

gic Plan

DOE AMP

DOE Directiv

es

SOFAR SOGOOD

Update DOE Asset Management Plan16

Framework for an UpdatedAsset Management Plan

March 25, 2014

Publically Available Specification (PAS) 55:1

Update DOE Asset Management Plan17

Improving Asset Management –Real Property & Real Estate

March 25, 2014

Real Property Alignment• Conduct a Departmental Facility Analysis – Go Big• Develop a Departmental Asset Investment Prioritization System –

Go BigProperty Quality• Develop a Tailoring Approach to Conduct of Condition

Assessments – Go Big• Encourage use of Decision-making Tools, such as a Facility

Sustainment Model – Go Big• Develop Departmental and Program-specific Capital Investment

Plans – Go BigPortfolio Management• Adopt a More Standardized Risk-Based Approach to Analysis – Go

Slow• Manage Other Departmental Real Property Assets Similar to the

Roof Asset Management Program (RAMP) - Go Slow• Implement a Departmental Life Cycle Cost/Value Engineering

Requirement – Go Slow• Adopt Additional Performance Indicators – Go Slow

Update DOE Asset Management Plan18

Improving Asset Management –Personal Property

March 25, 2014

Portfolio Management• Provide Personal Property Management Staff with Training

and Certification – As-Is• Move toward adopting ISO 55000 Asset Management

Standard - Go Slow• Specify property accountability standards IAW DOE O

580.1A-1 – Go Big

Update DOE Asset Management Plan

Outline for Updated AssetManagement Plan

March 25, 2014

Current Real Property

Asset Management

Plan

Federal Real

Property Council

Guidance

Publicly Available

Specification PAS 55:1

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

19

Update DOE Asset Management Plan20

Performance Targets and Reporting

March 25, 2014

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 Plan21

Questions

March 25, 2014

Cindy Hunt, PE, PMP, CCE, CFM, LEED APFacilities EngineerU.S. Department of EnergyOffice of Acquisition and Project ManagementOffice of Property Management (MA-65)1000 Independence Ave, SW Washington DC 20585202.586.4539CIndy.Hunt@hq.doe.gov

Update DOE Asset Management Plan22

Back Up

March 25, 2014

Update DOE Asset Management Plan

Property Management PrinciplesFederal Real Property Council Guidance

GSA Personal Property Principles

1. Support agency missions and strategic goals

2. Use public and commercial benchmarks and best practices

3. Employ life-cycle cost-benefit analysis

4. Promote full and appropriate utilization

5. Dispose of unneeded assets

6. Provide appropriate levels of investment

7. Accurately inventory and describe all assets

8. Employ balanced performance measures

9. Advance customer satisfaction

10. Provide for safe, secure, and healthy workplaces

1. Maximize the return on your investment

2. Manage the inventory effectively

3. Minimize the cost of your management systems

4. Make excess the first source of supply

5. Maximize reuse

6. Meet national disposition objectives

7. Enhance recycling and energy conservation efforts

8. Ensure property managers are well trained

23 March 25, 2014

Department of Energy strategic plan

DOE values, functional standards, required

processes

Acquire / createUtilize

MaintainRenew / dispose

Portfolio of asset systems and

assets

(diversity of types, criticalities,

condition and performance)

Asset management policy

Asset management strategyAsset management objectives

Asset management plans

Other DOE requirements and systems

Legal and regulatory requirements and expectations (customers, stakeholders, regulators, employees, suppliers,

society)

Asset management system

Asset management enablers and controls

Continual improvement

Performance and

condition monitoring

Asset Management…the Asset Management System

Update DOE Asset Management Plan

Task Approach

• Establish target audience and plan parameters

Scope Definition

• Identify requirements• Identify existing policies & procedures

Data Collection

• Identify & assess applicable industry standards, benchmarks and best practices

External Benchmarking

• Conduct gap analysis• Prioritize gaps and identify alternative

strategies• Select strategies

Gap Analysis & Testing

• Document results and produce draft plan• Adopt plan thru Collaborative Action Process

(CAP II)

Documentation

25 March 25, 2014

The project team has developed path 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 Plan26

Personal Property$19.3 B

Buildings Structures &

Trailers$105 B

Property Inventory

March 25, 2014

Count of Inventory Items

DOE HQ-level Policy/Guidance

Program-levelPolicy/Guidance

Site-levelPolicy/Guidance

Land <$0>

Construction in Progress $21.6 B

DOE Fleet* $35M

*acquisition cost for 26% of fleet owned by DOE – additional lease costs $88M per year