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In 1996 the Federal Accounting Standards Advisory Board (FASAB) 1 enacted Standard Number 6, Accounting for Property, Plant, and Equipment (PP&E), the first government-wide initiative requiring federal agencies to report dollar amounts of deferred maintenance annually. The FASAB has identified four overall objectives in federal financial reporting: budgetary integrity, operating performance, stewardship, and systems and control. FASAB Standard Number 6, as amended, focuses on operating performance and stewardship. The FFC Standing Committee on Operations and Maintenance has prepared this report to identify potential issues that should be considered in any future amendments to the standard and to suggest approaches for resolving them. The committee's intent is to assist the CFO Council, federal agencies, the FASAB, and others as they consider how best to meet the objectives of federal financial reporting for facilities.
The federal government has invested more than $300 billion in 500,000 buildings and other facilities worldwide to support the provision of government services. Evidence is mounting that the physical condition, functionality, and quality of federal facilities are deteriorating. Stewardship of Federal Facilities identifies factors and processes contributing to this deterioration and recommends a framework of methods, practices, and strategies to foster accountability for the stewardship of federal facilities and to allocate resources for their maintenance and repair.
The design, construction, operation, and retrofit of buildings is evolving in response to ever-increasing knowledge about the impact of indoor environments on people and the impact of buildings on the environment. Research has shown that the quality of indoor environments can affect the health, safety, and productivity of the people who occupy them. Buildings are also resource intensive, accounting for 40 percent of primary energy use in the United States, 12 percent of water consumption, and 60 percent of all non-industrial waste. The processes for producing electricity at power plants and delivering it for use in buildings account for 40 percent of U.S. greenhouse gas emissions. The U.S. federal government manages approximately 429,000 buildings of many types with a total square footage of 3.34 billion worldwide, of which about 80 percent is owned space. More than 30 individual departments and agencies are responsible for managing these buildings. The characteristics of each agency's portfolio of facilities are determined by its mission and its programs. In 2010, GSA's Office of Federal High-Performance Green Buildings asked the National Academies to appoint an ad hoc committee of experts to conduct a public workshop and prepare a report that identified strategies and approaches for achieving a range of objectives associated with high-performance green federal buildings. Achieving High-Performance Federal Facilities identifies examples of important initiatives taking place and available resources. The report explores how these examples could be used to help make sustainability the preferred choice at all levels of decision making. Achieving High-Performance Federal Facilities can serve as a valuable guide federal agencies with differing missions, types of facilities, and operating procedures.
In the late 1990s, several of the sponsor agencies of the Federal Facilities Council began developing and implementing initiatives and policies related to sustainable development. Guidance related to life-cycle costing and value engineering was recognized as being supportive of sustainable development, in particular when used in the conceptual planning and design phases of acquisition, where decisions are made that substantially effect the ultimate performance of a building over its life cycle. However, specific concerns were raised that when federal agencies apply value engineering in the final stages of design or during construction in response to cost overruns, design features that support sustainable development may be eliminated. The primary objective of this study, therefore, was to develop a framework to show how federal agencies can use value engineering and life-cycle costing to support sustainable development for federal facilities and meet the objectives of Executive Order 13123.
The United States real property portfolio is critical infrastructure that provides places and means for the federal government to operate and generate the products, services, security, and assurances that contribute to national prosperity and values. This report identifies broad-based, practical, and compelling strategies for securing continuing investment in the renewal of federal real properties and portfolios. Strategies to Renew Federal Facilities focuses on the how- not the what - for adapting, repurposing, restoring, recapitalizing, and replacing real property assets.
Facilities now owned by the Federal Government are valued at over $300 billion. It also spends over $25 billion per year for acquisition, renovation, and upkeep. Despite the size of these sums, there is a growing litany of problems with federal facilities that continues to put a drain on the federal budget and compromise the effectiveness of federal services. To examine ways to address these problems, the sponsoring agencies of the Federal Facilities Council (FFC) asked the National Research Council (NRC) to develop guidelines for making improved decisions about investment in and renewal, maintenance, and replacement of federal facilities. This report provides the result of that assessment. It presents a review of both public and private practices used to support such decision making and identifies appropriate objectives, practices, and performance measures. The report presents a series of recommendations designed to assist federal agencies and departments improve management of and investment decision making for their facilities.
More than 30 federal departments and agencies with a wide range of missions and programs manage large inventories of facilities, also called portfolios. These portfolios range in size from a few hundred to more than a hundred thousand individual structures, buildings, and their supporting infrastructure. They are diverse in terms of facility types, mix of types, and geographic dispersal. For federal senior executives, facilities portfolio-related decisions revolve around the allocation of resources (staff, funding, time) for acquisition, renovation, operation, repair, and disposition of facilities. To make informed decisions, senior executives require information that will allow them to answer such questions as: What facilities do we have? What condition are they in? What facilities are needed to support the organization's missions? This study lays out a framework for developing and evaluating trends in facilities portfolio conditions, investments, and costs and identifies a set of key indicators that can be used to track performance over time. Some of the indicators are currently in use in some federal agencies; others will need to be developed.