RBM Program Overview by hcj

VIEWS: 6 PAGES: 16

									   Disposing of Unneeded Federal Real Estate

                 SAME Luncheon




August 2011                         John E.B. Smith
$3 billion by 2012, $15B by 2015?


 President ‘s June 2010, memo ordered federal
   agencies to use less space in an attempt to
   save $3 billion by 2012 by:
    –   disposing of unneeded Federal real estate,
    –   increasing sales proceeds,
    –   cutting operating costs
    –   innovative workplace strategies and,
    –   improving energy efficiency.



                                                     2
Civilian BRAC Proposals $15b by 2015;
                        $19b by 2020


   •Several versions and ideas about how to organize and execute

   •Any reform to real property asset management must address these
   central challenges:

      •Incentivizing disposals by enabling agencies to realize the benefits of
      proceeds

      •Addressing the upfront costs associated with disposals and
      consolidations

      •Resolving competing stakeholder interests that can slow down or
      prevent good asset management decisions



                                                                            3
Disposing of Unneeded Federal Real Estate



•We need to look at the way we work differently
and adopt policies to reflect that.

•It’s time for the Fed to get creative.

•Increase utilization by engaging a mobile
workforce.

•Make technology work for our workforce

                                                  4
GSA’s Three Pronged Approach

 We expect to use a three-pronged approach to meet the
 President’s goal:

 • First, we must dispose of vacant or otherwise underused
 properties. Low lying fruit.

 • Second, GSA will be asking agencies seeking new leases or
 new construction to reduce their square-footage requests and
 increase their reliance on mobility or other workplace strategies to
 reduce their space needs.

 • Third we must begin eliminating lease arrangements that are not
 cost effective as one way to reduce unneeded space.

 •We expect step two and three will provide additional space for
 repositioning.
                                                                    5
  Our Approach to Analyzing Opportunities

Step 1: Identify buildings with poor performance and low mission impact/risk
                           •Operating $/SF
                           •Energy Use/SF
                           •Low Utilization
                           (Employees/SF)




        •High Mission                         •Low Mission
        Impact                                Impact
        •High Risk                            •Low Risk




Step 2: Buildings are mapped to look for
opportunities:
• Consolidation
• Improved work space efficiency
• Collocation

                                                                               6
 XXX Excess Facilities by GSF –




Data Selection:
- using Organization is XXX,
Exclusions:
-“Land” property type
-“Service” (other than buildings)
- “Storage” (other than buildings)
property use



                                     7
    Agency Space trends

                                                                                             203.7

                                                                                     199.8


                                                                            193.0
                                                               191.4


                                                 184.4

                                                                                                     Leased
                                    177.9                                                    184.1
                                                                                     183.0           Owned
     172.1            175.6                                                 181.5
                                                               178.8
                      176.6         176.6        177.1
        174.4




        FY06          FY07          FY08         FY09          FY10         FY11     FY12    FY13




•    Historic Data based on assignable RSF - Active buildings,
       –     Differs from FRPP, which includes GSF(not RSF) for Active and Excess.
       –     Differs from Budget Figures, which are billable RSF only.


                                                                                                     8
Number of Facility Leases by
Lease Expiration Year




                               9
Operating Costs of XXX Occupied
Owned Space

                  Average Operating Costs of XXX Owned Space

 6



 5



 4



 3



 2



 1



 0
      GSA       GSA     GSA      GSA      GSA      GSA      GSA       GSA     GSA      GSA      GSA
     REGION   REGION   REGION   REGION   REGION   REGION   REGION   REGION   REGION   REGION   REGION
      NINE     EIGHT    TEN      FIVE      SIX    SEVEN     ONE      FOUR     TWO     ELEVEN   THREE


                                                                                                        10
Mobility and Space Utilization




               This is a huge inefficiency.
                                              11
 GSA Central Office


Phased renovation 2010-2014

Administrator Johnson challenged PBS to fit all of the Washington GSA
operations into the Headquarters facility at 1800 F St, NW, Washington D.C.

•Renovation will increase building size approximately 100K sq ft

•Finished product will have approximately 2600 seats

•GSA employee population in D.C. approximately 6000 personnel

How can we develop the correct mix of productivity and office utilization?

•Industry leader visits
•Other government agencies, other governments
•Look inwardly for solutions –share your stories!
•Leverage solutions
                                                                              12
What if the Civilian BRAC doesn’t pass?

        Space Optimization
•We need to look at the way we work differently
and adopt policies to reflect that anyway.

•It’s time for the Fed to get creative. Right now.

•Increase utilization by engaging a mobile
workforce. Just do it!

•Make technology work for our workforce – its
2011!
                                                     13
Collaboration - Productivity

Nottingham-Spirk is known for its inventions and open innovation process
have garnered more than 900+ worldwide commercialized patents. They
moved into an old church without partitions to separate teams and the laundry
detergent team collaborated with the paint can team and created the Twist and
Pour paint container.




Dutch Boy Twist & Pour paint container quickly tripled sales of this Sherwin-
Williams brand and was named one of the Ten Best Packages of the Decade.




                                                                           14
        Collaborate and Share,
      Blend, & Create New Ideas

Jason Fried
    • Builds web-based productivity tools
    •New ways to conceptualize working and creating
.   •M&M’s distractions
    •No talk Thursdays

Steven Johnson.
    • English Coffee House – brought the age of enlightenment
    • Recommends we design our offices like the coffee shop –
    open, collaborative, an incubator for ideas.

Most of our offices need both concepts to operate – blending good ideas




                                                                          15
 Questions


What impact will this action have on the market?

What impact will the current real estate market have on the process?

What are some of the obstacles agencies are facing to meet the objectives in
the President’s Memo to reduce unneeded real estate holdings?

What assistance can GSA provide to agencies to assist them in meeting the
goal?

Don’t you need up front capital investments to accomplish many of the activities
to reduce real property inventory?

Can you cite some examples where agencies have reduced space using
alternative work solutions/mobility?

What about the Federal budget?                                               16

								
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