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Summary
The deteriorating condition of federal facilities poses economic, safety, opera
tional, and environmental risks to the federal government, to the achievement of
the missions of federal agencies, and to the achievement of public policy goals.
Primary factors underlying the deterioration are the age of federal acilities—
f
about half are at least 50 years old—and decades of inadequate investment in their
maintenance and repair. Those issues are not new and there are no quick fixes.
However, the current operating environment provides both the impetus and the
opportunity to place investments in maintenance and repair of federal facilities
on a new, more sustainable course for the 21st century.
In 1990, the National Research Council Committee on Advanced Mainte-
nance Concepts for Buildings found that “credible analyses indicate that we are
systematically neglecting the maintenance of public facilities at all levels of gov-
ernment. We are spending our assets and wasting our inheritance” (NRC, 1990,
p. ix). Thirteen years later, the U.S. Government Accountability Office (GAO)
designated federal facilities as a “high-risk”1 area because of long-standing prob-
lems with excess and underutilized facilities, deteriorating facilities, unreliable
data, expensive space, and the threat of terrorism (GAO, 2003).
The problems persist in 2011. The federal government owns and leases about
429,000 buildings and an additional 482,000 structures (such as utility systems,
roads and bridges, and miscellaneous military facilities) worldwide (GSA, 2010);
they are valued at $1.26 trillion (GSA, 2006) to $1.5 trillion (GAO, 2008) and have
annual operating costs of more than $47 billion (GAO, 2008). About $1.66 billion
1GAO’s high-risk update is provided at the start of each new Congress. The high-risk reports are
intended to help the new Congress “focus its attention on the most important issues and challenges
facing the federal government” (GAO, 2003, p. 1).
1
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2 PREDICTING OUTCOMES OF INVESTMENTS IN FEDERAL FACILITIES
of the annual operating costs is expended on 45,000 facilities that are reported to
be excess or underutilized (GSA, 2010).
Despite the magnitude of that investment, funding for the maintenance and
repair of federal facilities has been inadequate for many years, and myriad projects
have been deferred. GAO has stated that the total backlog of deferred maintenance
and repairs, which amounts to tens of billions of dollars, “may have a significant
effect on future budget resources and our nation’s long-term fiscal sustainability”
(GAO, 2008, p. 4).
Continued underinvestment in maintenance and repair will lead to even
greater deterioration and greater risk to the government.2 Probable adverse events
include system failures that will disrupt agencies’ operations; higher operating
and life cycle costs; hazards that lead to injuries and illnesses or loss of life and
property; waste of water, energy, and other resources; operational inefficiencies;
continued greenhouse gas emissions; greater fiscal exposure related to facilities
ownership; and even greater backlogs of deferred maintenance and repairs.
Current and projected constraints on the federal budget and the rising national
debt provide the impetus to reexamine all federal programs, activities, and
operaions to find more cost-effective ways to provide goods and services to the
t
U.S. public. Several recent developments provide an opportunity and a founda-
tion for implementing more strategic and more cost-effective investment practices
for maintaining and repairing federal facilities.
One development is the recognition by both public-sector and private-
sector organizations that well-managed facilities enable efficient operations and
the achievement of organizational missions and objectives. Recognition of the
multifaceted value of facilities has, in turn, resulted in more strategic facilities
management practices that focus on entire portfolios of facilities and treat them as
assets to organizations. Federal agencies have been implementing portfolio-based
management processes, although the level of sophistication varies. With a few ex-
ceptions, agencies have not yet adopted more strategic, portfolio-based practices
for linking maintenance and repair investments to their overarching missions.
A second development is the continued evolution of information and other
technologies. Information tools and technologies are now available to monitor
facilities’ condition, energy use, and other performance dimensions and to collect
data that can be used to measure and predict outcomes of maintenance and repair
investments, to reduce long-term costs, to eliminate human error and bias, and to
increase operational efficiencies. Information technologies also support telework,
which is changing the concept of workplaces and the demand for physical space.
A third development is the federal government’s recognition of the critical
role of facilities in meeting the national challenges of energy independence,
homeland security, environmental sustainability, and global climate change. In the
2The committee used Lowrance’s definition of risk as “a measure of the probability and severity of
adverse events” (Lowrance, 1976, p. 1).
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SUMMARY 3
United States today, facilities directly account for almost 40 percent of primary
energy use, 12 percent of water use, and 60 percent of all nonindustrial waste
(NSTC, 2008). The processes used to produce and deliver energy to facilities for
heating, cooling, ventilation, computers, and appliances account for 40 percent
of U.S. greenhouse gas emissions (NAS-NAE-NRC, 2008).
Congress and two presidential administrations have enacted legislation and
issued other directives challenging federal agencies to take a leadership role in
reducing their use of energy, water, and fossil fuels and in reducing their green-
house gas emissions. Those goals will be met only through efficient and effective
operation and maintenance of mission-supportive facilities, combined with an
overall reduction in the amount of the total square footage (“footprint”) of federal
facilities. All those factors both require and enable changes in the approaches used
to manage, maintain, and repair federal facilities.
Transforming the current portfolio of federal facilities into one that is more
economically, physically, and environmentally sustainable at a time when bud-
gets are decreasing is daunting. Nonetheless, this report identifies processes and
practices for doing so.
STATEMENT OF TASK AND THE COMMITTEE’S APPROACH
In October 2009, the National Research Council appointed an ad hoc commit-
tee of experts to develop methods, strategies, and procedures to predict outcomes3
anticipated from investments in federal facilities’ maintenance and repair. The com-
mittee was asked to address the following questions:
• Are there ways to predict or quantify the outcomes that can be expected
from a given level of investment in maintenance and repair of federal
facilities or facilities’ systems?
• What risks do deteriorating facilities, deteriorating building systems (such
as mechanical and electrical) or deteriorating components (such as roofs
and foundations) pose to the achievement of a federal agency’s mission or
to other organizational outcomes (for example, physical security, operating
costs, worker recruitment and retention, and health care costs)?
• Do such risks vary by facility type (such as offices, hospitals, industrial,
and laboratories), by system, or by function (such as research and admin-
istrative)? Can the risks be quantified?
• What strategies, measures, and data should be in place to determine the
outcomes of facilities maintenance and repair investments? How can
those strategies, measures, and data be used to improve the outcomes of
investments?
3The committee used Webster’s definition of an outcome as “something that follows as a result or
consequence” (Webster’s New Collegiate Dictionary, 1976).
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4 PREDICTING OUTCOMES OF INVESTMENTS IN FEDERAL FACILITIES
• Are there effective communication strategies that federal facilities pro-
gram managers can use to inform decision-makers better about the cost-
effectiveness of levels of investment in facilities’ maintenance and repair?
To fulfill its task, the committee (Appendix A) met five times from Decem-
ber 2009 to September, 2010, exchanged report chapters by e-mail, and held a
series of conference calls. The committee reviewed previous NRC reports related
to federal facilities management and gathered information from numerous fed-
eral agencies and several private-sector and professional organizations that were
identified by the committee as industry leaders (Appendix B). The committee’s
findings and recommendations are based on the information gathered through the
literature review, briefings, committee meetings, and the individual committee
members’ experience and expertise.
OVERALL CONCLUSIONS
Just as there are no quick fixes for issues related to the management of federal
facilities, there is no simple answer to the question, What outcomes will result
from a given level of investment in maintenance and repair of facilities? The
answer will depend on a number of factors, including the specific mission and
programs of an agency; the type, number, and distribution of the facilities used to
enable missions and programs; the existing condition of those facilities; and the
resources available for investment in maintenance and repair.
In the same vein, no single formula or equation is available that will quantify
the relationships between a given level of investment and the types of outcomes
that will result or the level of risk that will be mitigated. Instead federal facili-
ties program managers, in concert with other federal facilities stakeholders, will
need to work through a more complicated method that takes into account the
many complexities of facilities management and investment. Nonetheless, it can
be done. The result will be improved processes for and improved outcomes of
investments in the maintenance and repair of federal facilities.
FINDINGS
Finding 1. An array of beneficial outcomes can be achieved through timely invest-
ments in facilities maintenance and repair (Table S.1). Those outcomes support
mission achievement, compliance with regulations, improved condition, efficient
operations, and stakeholder-driven initiatives. All the outcomes can be measured.
Some outcomes including reliability and physical condition can be predicted; that is,
they can be estimated before an investment is made or if an investment is not made.
Finding 2. Deteriorating facilities and systems pose risks to the federal govern-
ment, its agencies, its workforce, and the public. Among them are risks to the
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SUMMARY 5
TABLE S.1 Beneficial Outcomes Related to Investments in Maintenance and
Repair
Mission- Compliance- Condition- Stakeholder-
Related Related Related Efficient Driven
Outcomes Outcomes Outcomes Operations Outcomes
Improved Fewer accidents Improved Less reactive, Customer
reliability and injuries condition unplanned satisfaction
maintenance and
Improved Fewer building- Reduced backlog Improved
repair
productivity related illnesses of deferred public image
maintenance and Lower operating
Functionality Fewer insurance
repairs costs
claims, lawsuits,
Efficient space
and regulatory Lower life-cycle
utilization
violations costs
Cost avoidance
Reduced energy use
Reduced water use
Reduced greenhouse
gas emissions
achievement of federal agencies’ missions; risks to safe, healthy, and secure
workplaces; risks to the government’s fiscal soundness; risks to efficient and cost-
effective operations; and risks to achieving public policy objectives.
Finding 3. The risks associated with deteriorating facilities vary by type of
facility, by system, by existing condition, by function, by utilization, and, most
important, by the relationship of facilities to an agency’s mission. Risks can be
identified qualitatively and some can be quantified.
Finding 4. Excess, underutilized, and obsolete facilities constitute a drain on the
federal government’s budget in costs and in forgone opportunities to invest in the
maintenance and repair of mission-supportive facilities and to reduce energy use,
water use, and greenhouse gas emissions.
Finding 5. To manage and mitigate the risks posed by the ownership of facilities,
high-performance private-sector organizations do the following:
• Systematically dispose of excess and underutilized facilities.
• Pursue a proactive strategy to minimize their total facilities “footprint.”
• Link maintenance and repair activities to the organization’s business or
mission and set priorities among them.
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6 PREDICTING OUTCOMES OF INVESTMENTS IN FEDERAL FACILITIES
• Correlate the effects of systems-related failures with the business or mission.
• Correlate delays in timely maintenance and repair with sustainment cost.
Finding 6. To make the outcomes of and risks posed by investments in main-
tenance and repair projects and activities transparent to decision-makers at all
levels of the organization, facilities managers in high-performance organizations
do the following:
• Aggregate maintenance and repair requirements for some facilities’ sys-
tems and components (such as life-safety systems and roofs) to provide
for greater transparency and to identify operational efficiencies.
• Perform “knowledge-based” condition assessments; that is, tailor the fre-
quency and level of inspection to the strategic importance of facilities and
to the life cycle of systems and components to provide credible estimates
of repair costs and remaining service lives.
• Measure outcomes as a basis of continuous improvement.
• Implement feedback systems to evaluate the performance of investments.
Finding 7. Investment strategies, definitions of maintenance and repair, main-
tenance and repair practices, and methods for budget development vary among
federal agencies as a result of their different missions; the sizes, compositions,
and distributions of their facilities; and their organizational cultures. The lack of
common approaches makes it difficult to compare the effectiveness of mainte-
nance and repair investments among federal agencies, to compare the benefits
and pitfalls of different investment strategies, and to benchmark performance for
the purpose of continuous improvement.
Finding 8. Reliable and appropriate data and information are essential for mea-
suring and predicting outcomes of investments in federal facilities maintenance
and repair. An array of data, tools, and technologies is available to support strate-
gic decision-making, to quantify outcomes and risks by using empirical data, to
expedite data collection, and to reduce human errors and bias.
Finding 9. Additional research and collaborative efforts are needed to continue
to develop rapid and effective data-collection methods (such as the use of sensors
and visual imaging devices), data definition and exchange standards that allow
interoperability of data and software systems, and robust prediction models.
RECOMMENDATIONS
Recommendation 1 (Findings 4 and 5). To better manage the economic,
physical, and environmental risks associated with facilities ownership, the fed-
eral government and its agencies should embark on a coordinated, funded, and
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SUMMARY 7
sustained effort to dispose of excess and underutilized facilities. They should also
proactively reduce their total facilities footprint through alternative work strategies
and other measures.
Recommendation 2 (Findings 1, 5, and 6). Federal agencies should develop
more strategic approaches for investing in facilities maintenance and repair to
achieve beneficial outcomes and to mitigate risks. Such approaches should do
the following:
• Identify and set priorities among the outcomes to be achieved through
maintenance and repair investments and link them to achievement of agen-
cies’ missions and other public policy objectives.
• Provide a systematic approach to performance measurement, analysis, and
feedback.
• Provide for greater transparency and credibility in budget development,
decision-making, and budget execution.
Recommendation 3 (Findings 1, 2, and 3). To develop more strategic approaches
to maintenance and repair investment, federal agencies should do the following:
• Identify and set priorities among the beneficial outcomes that are to be
achieved through maintenance and repair investments, preferably in the
form of a 5- to 10-year plan agreed on by all levels of the organizations.
Elements of that type of plan are outlined in Chapter 7.
• Establish a risk-based process for setting priorities among annual main-
tenance and repair activities in the field and at the headquarters level.
Guidance for doing that is contained in Chapter 7.
• Establish standard methods for gathering and updating data to provide
credible, empirical information for decision support, to measure outcomes
of investments in maintenance and repair, and to track and improve the
results.
Recommendation 4 (Finding 6). Federal facilities program managers should
plan for multiple internal and external communications when presenting main-
tenance and repair requests to other decision-makers and staff. The information
communicated should be accurate, acknowledge uncertainties, and be available in
multiple forms to meet the needs of different audiences. The basis of prediction
of outcomes of a given level of investment in maintenance and repair should be
transparent and available to decision-makers.
Recommendation 5 (Finding 7). Federal agencies and other appropriate orga-
nizations should continue to collaborate to develop and refine governmentwide
measures for outcomes of maintenance and repair investments and to develop
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8 PREDICTING OUTCOMES OF INVESTMENTS IN FEDERAL FACILITIES
more standardized practices, unambiguous procedures, definitions, and models.
The committee believes that those activities would be most effective if under the
auspices of the Office of Management and Budget.
Recommendation 6 (Findings 6 and 8). Federal agencies should avoid the col-
lection of data that serve no immediate mission-related purpose. Agencies should
use a “knowledge-based” approach to condition assessment. Outcome metrics and
models should make maximum use of existing data. When new or unique data
are required to support the development of an outcome measure or model, there
should be a clearly defined benefit to offset the cost of collecting and maintain-
ing them.
Recommendation 7 (Findings 8 and 9). Federal agencies should continue to
participate in and take advantage of collaborative efforts to develop rapid and
effective data-collection methods (such as the use of sensors and visual imaging
devices), to develop data-exchange standards that allow interoperability of data
and software systems, to develop the empirical information needed for robust
prediction models, and to develop practices that will reduce the cost of data col-
lection and eliminate human error and bias.
