seasons of the asset: fims and the lifecycle ivan graff, p. e. office of asset management may 7,...

SEASONS OF THE ASSET: FIMS AND THE LIFECYCLE

Ivan Graff, P. E.Office of Asset Management

May 7, 2015

AGENDA

Establishing Sites and Areas Planning to acquire an asset Establishing an Asset Record Maintenance costs Operations costs Additions, renovations, and alterations Status, usage, and utilization

assessments

MAY 7, 2015FIMS / REAL ESTATE TRAINING 2

Planning

Sustainment

Assessments


NOT ON THE AGENDA . . .

. . . Construction, Excess Screening, Clean up, and Disposition

ESTABLISHING A SITE SOURCE: FIMS USER’S GUIDE SEC. III(D)

Adjacent or co-located assets comprise a site Separate sites: Intervening privately owned or

controlled property Roles:

Site: Makes a request FIMS System Administrator: Creates the site Field Office: Keep apprised

Might a site – Have no land? Have only structures? Have no DOE owned or leased assets?


one site

two sites

ESTABLISHING AN AREA SOURCE: FIMS USER’S GUIDE SEC. III(D)

Groups multiple related assets of any property type Established at the convenience of a site or field office Assets may reside in disparate locations Roles:

Site: Makes a request FIMS System Administrator: Creates the area(s) Field Office: Keep apprised

Might an area – Have no land? Have only structures? Have no DOE owned or leased assets?


Example Relationships:• Geography• Organizatio

nal• Mission• Function• Age


Anticipated Acquisition Information Module (AAIM)

Required for offices and warehouses with an anticipated beneficial occupancy in CY CY + 3

MEANS FOR ACQUIRING REAL PROPERTY

DOE “Owns” DOE “Leases”

1. Line Item Construction

2. General Plant Projects (GPP)

3. Institutional General Plant Projects (IGPP)

4. Purchase of Existing Property

5. Transfer from Another Agency or GSA

6. Gift or donation

7. Exchange of Existing Property

8. Exchange for Services

1. Operating Lease (C,E, D)

2. Permit (P)

3. Occupancy Agreements (G, L)

4. Third-Party Financing (C,E, D)

5. Energy Savings Performance Contracts (ESPC)*

6. Capital Lease (C,E, D)

7. Grants **


For B, T, and S:C = Contractor LeaseE = Contractor LicenseD = DOE LeaseG = GSA OwnsL = GSA LeasesP = Permit

* = Rent to Own?** = Contractor Owned? Grant Recipient Owned?

INITIAL ACQUISITION COST OF OWNED BUILDINGS AND TRAILERS


2010 2011 2012 2013 2014$0

$100,000,000$200,000,000$300,000,000$400,000,000$500,000,000$600,000,000$700,000,000$800,000,000$900,000,000

$1,000,000,000$1,100,000,000

(f) $100M to $750M(e) $50M to $100M(d) $20M to $50M(c) $10M to $20M(b) $5M to $10M(a) < $5M

($m

illio

ns)

BUILDING AREA OF OWNED BUILDINGS AND TRAILERS, BY ACQUISITION YEAR


2010 2011 2012 2013 20140

200,000400,000600,000800,000

1,000,0001,200,0001,400,0001,600,0001,800,0002,000,0002,200,000

38%74%

35%43%

4%

12%

4%9%

36%

(f) $100M to $750M(e) $50M to $100M(d) $20M to $50M(c) $10M to $20M(b) $5M to $10M(a) < $5M

Squa

re F

eet (

thou

sand

s)

COUNT OF OWNED BUILDINGS & TRAILERS BY ACQUISITION YEAR AND LEVEL


2010 2011 2012 2013 2014020406080100120140160180200220

87%93%

85%83%

59%

(f) $100M to $750M(e) $50M to $100M(c) $10M to $20M(d) $20M to $50M(b) $5M to $10M(a) < $5M

Build

ing

and

Tra

iler C

ount

HOW MANY OWNED BUILDINGS DID DOE

ACQUIRE IN FY 2010?


45

151

179

176

192

HOW MANY OWNED BUILDINGS DID DOE

ACQUIRE IN FY 2010?


2010 2011 2012 2013 20140

20

40

60

80

100

120

140

160

180

200

23

28

30 28 31

11

35

39 38 38

7191 91 93

45

151

179

176

192

FIMS Snapshot

Color bands correspond to different DOE programs

ESTABLISHING AN ASSET RECORD SOURCE: FIMS USER’S GUIDE SEC. III(D)

Buildings and Real Property Trailers

Beneficial occupancy New lease, license, or

permit executed

Land Paid in full or declaration of

taking New lease or ingrant

executed

Structures Put into service New lease, license, or

permit executed


Financial Management Handbook, Chapter 10

“The acquisition cost of construction work in progress should be closed to the completed PP&E categories when the equipment and facilities are placed in service (that is, beneficial occupancy) even if the entire project is not financially completed.” [Plant and Equipment Changes, (1)(h)(1) ] “The cognizant project manager should provide an allocation to the appropriate asset type codes for any project in which the property has been accepted for beneficial occupancy, even though the final cost report is not complete.” [FIMS-STARS Reconciliation, (2)(l)(5)]

ESTABLISHING

STRUCTURE RECORDS


Background on Term:• DOE O 430.1B – An example of a “Real

Property Asset”• DOE FMH Chapter 10 – Addresses

utilities only, defined by example.• FRPP Data Dictionary 2015 – A type of

real property defined only by array of use codes

What’s the Problem? How would an auditor know if

a structure record comprises one or multiple similar property units?

Best Practice:• Where units

≠ “each”

• Where apparent bounds & limits

• Magnitude of the record = the individual physical asset’s observable size

1,600 Sq. Yards

ESTABLISHING

STRUCTURE RECORDS


1,600 Sq. Yards

1,600 Sq. YardsWhat My

Site Has:

1,600 Sq. Yards

1,600 Sq. Yards

1,600 Sq. Yards

FIMS Best

Practice:

4,800 Sq. YardsIn FIMS

Now:

ESTABLISHING

LAND RECORDS


Each land record should reflect the parcel’s:• Ownership and acquisition method• Legal description• Degree of development• Stewardship requirements (e.g.,

security)• Predominant use• Level of utilization

Land questions:• How much of

my site do I actively manage?

• Which parcels seem ready for disposition or reuse?

• Where is the greatest concentration of offices?

SUSTAINMENT



Expense Type

Typical of Activities that . . . Examples

Operations Support the use, but do not affect the function or longevity, of systems or assets

CleaningGrounds careSnow removalWaste disposalUtilitiesPest management

Safety equipmentSecurityAudio / visualMaterial handlingFleet managementIT / telecom

Maintenance

Impact systems or assetsAND

Occur on a scheduleOR

Address unexpected or impending failures

Periodic or occasional testing and inspectionRoutine repair or replacement of parts including belts and lampsAdjustment; lubrication; painting; or resurfacing

Betterments

Upgrade, expand capacity, renew, or introduce, in whole or in part, systems or facilities

Replacing a sliding door with a roll-up doorIncreasing electric service to a buildingConstructing a storage structure for use by occupants in an existing adjacent building

Note: Underlined operations example expenses tracked in FIMS

FIMS / REAL ESTATE TRAINING 19

DOE Order 481.1C The Economy Act (1932)

Purpose: reduce government spending Applies –

To all federal agencies and only federal agencies When an agency has funds in hand When recipient -

Has needed authority and expertise Will cost less than a private contract

Must have a written agreement with partnering Federal agencies

MAY 7, 2015

WORK FOR OTHERS: ORIGINS

FIMS / REAL ESTATE TRAINING 20MAY 7, 2015

ECONOMY ACT QUESTIONS

Must the recipient have on hand all needed property?

Who keeps the property?

Are operations and maintenance

allowable expenses?

Are such expenses direct or indirect?

May the agency in need apply funds in

advance?

Does that obligate the funds?

FIMS / REAL ESTATE TRAINING 21

Source - The Atomic Energy Act [amended] (1954), Section 33 [42 USC 2053]

Authorizes the Department to perform Research and Development for private entities.

Assumes the Department has sufficient resources to meet the private entities’ needs.

MAY 7, 2015

WFO: PRIVATE ENTITIES

MAINTENANCEWHO PAYS? WHAT COUNTS?

Strategic Partnership Projects Full cost recovery

Programmatic vs conventional real property Exclusion of certain usage codes Discounting replacement plant value (RPV) with the

conventional facilities indicator (CFI)

Fully burdening reported annual costs


ALLOCATING

FIMS OPERATION COSTS 1.Tally the manually-

entered asset-level operation costs.

2.Subtract from this tally the total of all site-level operation costs.

3.FIMS allocates the balance to buildings and trailers without operation cost entries --

For non-utility costs By Gross Sqft.

For utility costs By Gross Sqft. By Hours of

Operation


INVESTING IN KNOWING

ASSET-LEVEL OPERATIONS COSTS

Why? The Federal Real Property Profile

41 CFR §102-84 incorporates the most recent FRPP reporting instructions.

The FRPP continues to collect operating costs at the asset level.

Operating costs = operations costs + maintenance costs

DOE has a long-standing requirement to collect asset-level maintenance costs.

DOE still allows allocating operations costs.

Why? Reduce the Footprint

Reporting in FY 2016 will require asset-level operations costs on all assets disposed or part of a consolidation or co-location to allow for a before and after comparison.

Why? It Makes Sense! Imagining spending $1,200

a year on fueling your three cars.

Which one is the gas hog?


RELIANCE ON FIMS FOR

ALLOCATING OPERATING COSTS

AllocatedNot

Allocated% Not

AllocatedELECTRICITY 7,353 1,516 17%

PEST 7,754 831 10%WATER 6,560 662 9%

GAS 3,833 356 8%CEN HEAT 2,294 196 8%GROUNDS 8,678 568 6%

JANITORIAL 7,849 507 6%CEN COOL 708 42 6%

SNOW 6,978 382 5%REFUSE 8,140 396 5%

RECYCLE 6,801 291 4%


Data Source:• FY14

Snapshot

• Owned

• Buildings & Trailers

• Active and inactive

• Operating cost > $0

ALTERATIONS, RENOVATIONS, OR ADDITIONS


TypeImprovement

USF / GSF

Maintenance

Adjustments Table

Usage Survey

Alterations

Renovations

Additions

No No No Yes, not capital Yes

Usually yes USF Usually yes Yes Yes

Yes Both Sometimes yes Yes Yes

Operations Transition Deactivation Decommissioning Remediation

Surveillance and Maintenance

• Operating• Operation

al Standby

• Operating under an Outgrant

• Shutdown Pending Transfer

• Shutdown Pending D&D

• Operating Pending D&D

• D&D in Progress

• Deactivation

• D&D in Progress

• Shutdown Pending Disposal

• In Situ Closed

• In Situ Closed LTM

ALIGNING D&D PHASES AND FIMS STATUS


ASSESSMENT


WHAT’S WRONG WITH OUR

STATUS CODE OPTIONS? GAO Report 15-305 critiqued

DOE’s status codes Issues included –

Vague definitions Overlapping definitions Lifecycle milestones omitted Inconsistent application among

programs and sites


ASSESSING

STATUS, USAGE, & UTILIZATION How often do I conduct surveys? Do the results reflect a point in time or the year

on average? What should I consider when assigning a

status? How does the configuration differ from the

usage? How does occupancy differ from utilization? How do the “space types” influence my

utilization estimate?


COMMENTS OR QUESTIONS?

Ivan Graff(202) 586-8120

[email protected]

AVIDAC Argonne Version of the Institute's Digital Automatic Computerc. 1953

seasons of the asset: fims and the lifecycle ivan graff, p. e. office of asset management may 7,...

Documents

fims users

fims real estate training3

fims real estate training8

site source

fims tracks ownership

acquisition authorities

year site plan

leased assets