Investments in Federal Facilities Asset Management Strategies for the 21st Century (2004) / Chapter Skim
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Executive Summary
Executive Summary
Pages 1-12
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Additional expenditures for facilities maintenance, repair, renewal, demolition, and security upgrades probably amount to billions of dollars per year but are not readily identifiable under the current budget structure. Despite the magnitude of this ongoing investment, federal facilities continue to deteriorate, backlogs of deferred maintenance continue to increase, and excess, underutilized, and obsolete facilities continue to consume limited resources.
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Principle/Policy 3. Integrate facilities investment decisions into their or ganizational strategic planning processes.
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ADAPTING THE PRINCIPLES AND POLICIES TO THE FEDERAL OPERATING ENVIRONMENT Adapting the aforementioned principles and policies for facilities investments for use by the federal government requires consideration of and compensation for a number of special aspects of the federal operating environment. These aspects include the goals and missions of the federal government, its departments, and agencies; the organizational structure and decision-making environment; the nature of federal facilities investments; and the annual budget process and its attendant procedures.
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RECOMMENDATION 1. The federal government should adopt a framework of procedures, required information, and valuation crite ria for federal facilities investment decision making and management that incorporates all of the principles and policies enumerated by this committee.
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Most federal departments and agencies currently have staff with the requisite technical skills to implement asset management approaches. Less likely to be found are facilities management staff also versed in financial theory, practices, and management.
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Facilities investments should be evaluated as mission enablers, not solely as costs. Organizational strategic planning that does not include facilities considerations up front fails to account for a potentially substantial portion of the total cost of a program or initiative.
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Engineers, lawyers, accountants, economists, technologists, military personnel, senior executives, and elected officials lack a common vocabulary and style of interaction and do not necessarily share a common set of interests or time frames they consider important. To improve communications among the various stakeholders in facilities investments, each federal department or agency, in collaboration with the appropriate program examiners and congressional representatives, should develop and consistently use a common terminology for the concepts routinely used in facilities investment decision making and applicable to its organizational culture.
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The development and evaluation of exit strategies during the programming process will provide insight into the potential long term consequences for the organization, help to identify ways to mitigate the consequences, and help to reduce life-cycle costs. The development of exit strategies for facilities investment alternatives as part of a business case analysis will help federal decision makers to better understand the potential consequences of the alternative approaches.
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RECOMMENDATION 8. Each federal department and agency should use performance measures in conjunction with both periodic and con tinuous long-term feedback and evaluation of investment decisions to monitor and control investments, measure the outcomes of facilities in vestment decisions, improve decision-making processes, and enhance organizational accountability.
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Implementation of a facilities asset management approach, the use of performance measures and feedback processes, and the consistent use of business case analyses will further enhance organizational accountability for federal facilities investments.
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Establish an executive-level commission with representatives from the private sector, academia, and the federal government to determine how the identified principles and policies can be applied in the federal government to improve the outcomes of decision-making and management processes for federal facilities investments within a time certain. The executivelevel commission should include representatives from nonfederal organizations acknowledged as leaders in managing large organizations, finance, engineering, facilities asset management, and other appropriate areas.
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In addition, they can provide the commission with information related to the characteristics of their facilities portfolios; issues related to aligning their portfolios with their missions; facilities investment trends; good or best practices for facilities investment and management; performance measures for monitoring and measuring the results of investments; and other relevant information. The committee believes that such sponsorship, leadership, and commitment to this effort will result in · Improved alignment between federal facilities portfolios and missions, to better support our nation's goals.
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