Stewardship of Federal Facilities A Proactive Strategy for Managing the Nation's Public Assets (1998) / Chapter Skim
Currently Skimming:
2 Related Issues
2 Related Issues
Pages 24-41
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 24... ...
FEDERAL BUDGET PROCESS Understanding the issues related to the maintenance and repair of federal facilities requires a basic understanding of how the federal budget is formulated, how maintenance and repair budget requests are compiled and reviewed, how funds are appropriated and distributed, and how expenditures are tracked. Federal Budget Formulation The federal budget is created through the interaction of the President, the Congress, the Office of Management and Budget (OMB)
|
From page 25... ...
establishes the broad outlines of fiscal policy with regard to national needs, including spending and taxation; (2) sets aggregate funding levels by functional categories; (3)
|
From page 26... ...
Formulation of Budget Requests for Facilities Maintenance and Repair From published reports and agency briefings, the committee learned that, over time and for a variety of reasons, federal agencies have developed individualized procedures, definitions of terms, formulas and calculations, and methodologies for developing maintenance and repair budget requests, the formulation of which generally begins at the field office or program level of each agency. For example, "Army Regulation 420-16 requires each installation to prepare an annual requirements report that specifies the installation's funding needs for operating and maintaining real property during the next fiscal year.
|
From page 27... ...
These reviews become more frequent later in the fiscal year to ensure that spending targets are met (NPR, 1993~. When Congress appropriates the annual budget back to the agencies, the agencies themselves determine how much funding from their operations accounts will be allocated to maintenance and repair.
|
From page 28... ...
The Operations and Maintenance account includes operations, maintenance, and minor repairs (up to a certain dollar threshold) , and the Repairs and Alterations account includes all repairs, replacements, improvements, and alterations in excess of a given dollar amount with no upper limit.
|
From page 29... ...
Because of differences in methodologies, definitions, techniques to develop budgets, accounting systems, and the lack of tracking of maintenance and repair expenditures, it is difficult, if not impossible, to determine how much money and resources are allocated and spent on facilities maintenance and repair across the federal government. Disincentives and Institutional Barriers Effective facilities management and maintenance requires a long-term outlook and commitment; however, the annual budget process generally reinforces a short-term view.
|
From page 30... ...
The budget process also discourages cost-effective maintenance by usually disallowing the carryover of unobligated funds from one fiscal year to the next, even if a facilities program manager can demonstrate that the most cost-effective way to implement the repair or replacement of a major operating component, such as a chiller, which may cost several hundred thousand dollars or more, may best be paid for by carrying over unobligated funds. Funds that are not spent in the current fiscal year are routinely taken back from the agencies.
|
From page 31... ...
(For example, one measure might be total maintenance dollars spent per square foot of administrative space.) Without consistent measures, it is very difficult for facilities program managers to determine whether their maintenance and repair resources are being used optimally across their facilities inventory.
|
From page 32... ...
As agencies' missions change, some facilities are no longer used at all. The most dramatic example, but not the only example, is the Base Realignment and Closure process, which has resulted in the closure of one of every five military installations across the country.
|
From page 33... ...
Thus, more intensive use of facilities can place additional burdens on building systems and components and increase the need for maintenance and repair. Excess Facilities and Changing Missions The federal facilities portfolio has grown over time in response to new programs and requirements, defense and foreign policy initiatives, changing demographics, and other factors.
|
From page 34... ...
Based on the information available to the committee, it appears that the number of excess facilities is increasing throughout the federal government as agencies realign their missions in response to changing circumstances. The most dramatic example is the Base Realignment and Closure process.
|
From page 35... ...
Nevertheless, there is evidence that some agencies own buildings and infrastructure that are no longer needed or are otherwise underutilized. The demolition of excess facilities would require an up-front investment of funds but could, in the long run, be cost effective through annual savings on operations, utilities, and maintenance and repair funds.
|
From page 36... ...
However, as new facilities come on line, their operation and maintenance costs must be funded from current operations and maintenance accounts. The potential impact of new facilities on an agency' s existing operations and maintenance programs does not have to be analyzed in the budget review process.
|
From page 37... ...
. Timely Maintenance and Future Cost Avoidance When agency managers are asked to justify their maintenance and repair budget requests, "public officials .
|
From page 38... ...
Research-derived, cost avoidance information that is meaningful to public officials and senior decision makers would also help facilities program managers make more compelling arguments for adequate maintenance and repair funding. Deterioration/Failure Rates of Building Components Relatively little research has been done on the deterioration rates of building components.
|
From page 39... ...
Current evidence suggests that improved building design, operation, and maintenance can reduce a variety of still unidentified indoor contaminants and thereby prevent or reduce symptoms among building occupants (NSTC, 1995~. Lost workdays attributable to building-related health problems decrease productivity and could affect an agency' s mission-related activities.
|
From page 40... ...
1994. Financial Management: Army Real Property Accounting and Reporting Weaknesses Impede Management Decision-Making.
|
From page 41... ...
Urban Institute.
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.