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U.S. Department of Energy ORDER
Washington, D.C. DOE O 430.1B
Approved: 9-24-03
Chg 1: 2-8-08
SUBJECT: REAL PROPERTY ASSET MANAGEMENT
1. OBJECTIVE. Establish a corporate, holistic, and performance-
based approach to real property life-cycle asset management
that links real property asset planning, programming,
budgeting, and evaluation to program mission projections and
performance outcomes. To accomplish the objective, this
Order identifies requirements and establishes reporting
mechanisms and responsibilities for real property asset
management. This Order implements Department of Energy (DOE)
P 580.1, Management Policy for Planning, Programming,
Budgeting, Operation, Maintenance and Disposal of Real
Property, dated 05-20-02 (reference p).
2. CANCELLATION. DOE O 430.1A, Life-Cycle Asset Management,
dated 10-14-98. Cancellation of an Order does not modify or
otherwise affect any contractual obligation to comply with
such an Order. Canceled Orders incorporated by reference in
a contract remain in effect until the contract is modified
to delete the reference to the requirements in the canceled
Orders.
3. APPLICABILITY.
a. DOE Elements. Except for the exclusions in paragraph
3c, this Order applies to all DOE elements listed in
Attachment 1 with responsibility for real property
assets, including the National Nuclear Security
Administration (NNSA). No requirements in this order
will be implemented in a manner that would conflict
with the provisions of the National Nuclear Security
Administration Act.
b. Site/Facility Management Contracts.
(1) Except for the exclusions in paragraph 3c, the
Contractor Requirements Document (CRD), Attachment
2, sets forth the requirements of this Order that
must apply to all site/facility management
contracts that include the CRD.
(2) This CRD must be included in site/facility
management contracts that involve the acquisition,
management, maintenance, disposition, or disposal
of real property assets. Modifications to the CRD
must be reviewed by the Office of Engineering and
Construction Management (OECM) before
incorporation.
(3) This Order does not automatically apply to other
than site/facility management contracts. Any
application of requirements from this Order to
other than site/facility management contracts must
be communicated separately from this Order.
(4) The Lead Program Secretarial Office (LPSO) and
Cognizant Secretarial Office (CSO) are responsible
for notifying contracting officers about the
site/facility management contracts for which this
Order is applicable. Once notified, contracting
officers are responsible for incorporating the CRD
into affected site/facility management contracts
via the laws, regulations, and DOE directives
clause of the contracts.
(5) As the laws, regulations, and DOE directives
clause of site/facility management contracts
states, regardless of the performer of the work,
site/facility management contractors with the CRD
incorporated into their contracts are responsible
for compliance with the requirements of the CRD.
Affected site/facility management contractors are
responsible for flowing down the requirements of
this CRD to subcontracts at any tier to the extent
necessary to ensure compliance with the
requirements. In doing so, contractors must not
unnecessarily or imprudently flow down
requirements to subcontracts. That is, contractors
will (a) ensure that they and their subcontractors
comply with the requirements of this CRD and (b)
only incur costs that would be incurred by a
prudent person in the conduct of competitive
business.
c. Exclusions.
(1) Office of the Deputy Administrator for Naval
Reactors, National Nuclear Security
Administration.
(2) Power Marketing Administrations. In accordance
with Section 302 of the Department of Energy
Organization Act of 1977, Section 302 (reference
bb), the Secretary operates and maintains the
Power Marketing Administrations’ (PMAs’) electric
power transmission systems by and through the PMA
administrators. The PMAs are uniquely established
within the Department by nature of their
administrators’ obligations to meet statutory and
public utility responsibilities for the safety,
security, and reliability of electric power
transmission. Administrators must determine the
appropriate real property asset management program
for their facilities, including consideration of
appropriate parts of the criteria set forth in
this Order and prudent utility industry practice.
4. REQUIREMENTS. The management of real property assets
must take a corporate, holistic, and performance-based
approach to real property life-cycle asset management
that links real property asset planning, programming,
budgeting, and evaluation to program mission
projections and performance outcomes. Acquisitions,
sustainment, recapitalization, and disposal must be
balanced to ensure real property assets are available,
utilized, and in a suitable condition to accomplish
DOE missions. The following paragraphs set the
requirements for the major real property asset
management functional components of planning, real
estate, acquisition, maintenance and recapitalization,
disposition and long-term stewardship (LTS), value
engineering (VE), and performance goals and measures.
(Note: See paragraph 6 in the main body of this Order
for references, Attachment 3 for definitions, and
Attachment 4 for acronyms).
The requirements of this Order are for immediate use
and implementation, and must be fully implemented by
September 30, 2004.
a. Planning. Planning is the overarching function
within real property asset management that
integrates the other functions of acquisition,
real property utilization, maintenance,
recapitalization, disposition, and LTS into a
coordinated effort to ensure that current and
future mission needs are met. Planning is
dependent on clear objectives, sound data, and
effective communication.
(1) Site planning for real property assets must be
consistent with DOE P 430.1, Land and Facility Use
Planning, dated 7-9-96 (reference o), be based on
accepted planning principles and industry wide
practices, and must—
(a) assess current real property assets against
delineated program mission requirements and
(b) identify the specific real property asset
projects and activities required to meet
program mission projections.
(2) For each nonclosure site, results of real property
asset site planning and performance must be
documented in a Ten-Year Site Plan (TYSP) that is
kept current and covers a 10-year planning
horizon. For closure sites, disposition plans must
be developed.
(a) The TYSP will be consistent with and support
development of the Integrated Facilities and
Infrastructure (IFI) Crosscut Budget,
identifying the resource requirements
associated with TYSP implementation. (Figure
1 represents the relationship between the
TYSP and IFI Crosscut Budget.)
(b) The TYSP will be integral to and support the
DOE Planning, Programming, Budgeting, and
Evaluation System (PPBES).
(c) The TYSP will result in a consolidated and
integrated plan replacing multiple reports.
It will use the Facilities Information
Management System (FIMS), DOE’s corporate
real property asset database, for real
property asset information.
(3) The content of the TYSP must address how the
site’s real property assets will support the
Department’s strategic plan, the Secretary’s
5-year planning guidance, and appropriate program
guidance. It must be a comprehensive sitewide plan
encompassing the needs of tenant
Figure 1. Ten-Year Site Plan (TYSP); Integrated
Facilities and Infrastructure (IFI) Crosscut
Budget; and Planning, Programming, Budgeting,
and Evaluation System (PPBES). (SEE THE PDF
FILE)
activities. The format of the TYSP should be
consistent within a program in accordance with
program direction and guidance. Sections of the
TYSP can be rearranged to meet the unique
requirements of a site. As a minimum, TYSPs must
address the following.
(a) The site’s plan to meet program missions,
budgets, planning estimates, and performance
outcomes within the program’s budgetary and
out-year fiscal projections.
(b) An assessment of the current status of the
site real property assets against delineated
program missions including discussions of
condition assessments, maintenance and
recapitalization plans, space utilization,
real estate, excess facilities disposition,
LTS, and unique site issues.
(c) The prioritized real property asset projects
and activities required to meet program
missions, budgets, and planning estimates.
These include acquisition projects,
elimination of excess property projects and
activities, maintenance and recapitalization
plans, disposition projects, and LTS
requirements.
(d) The prior year (PY) plus ten (10) additional
fiscal years of activities, planned in
accordance with LPSO, CSO, and Program
Secretarial Office (PSO) annual program
direction and guidance for mission
projections and fiscal projections. It will
be consistent with the Department’s PPBES and
the field budget call. (See Attachment 3,
Definitions, for more information on “prior
year.”)
(e) A report on past performance and projected
future outcomes, including the results from
real property asset corporate and program
performance measures (see paragraph 4g for
corporate performance goals and measures).
The report must compare the budget authority
against the actual expenditures and the
performance outcomes achieved at the site for
the fiscal year that precedes the PY.
(f) Space utilization activities and land-use
that stabilize then reduce the costs by
consolidating operations where practicable
and eliminating excess facilities.
(4) The TYSP must be submitted either concurrently
with responses to the field budget call, or as
directed by the LPSOs/CSOs/PSOs to be consistent
with the PPBES cycle.
b. Real Estate. The real estate function encompasses
several key activities over the life cycle of real
property assets. These activities involve acquisition
by lease or purchase; planning and management,
including taking inventory, making assignments,
conducting utilization surveys, and tracking assets;
screening for excess real property assets; and disposal
of real property assets.
(1) The Secretary’s authority to acquire, manage, and
dispose of real property can be redelegated, with
the exception of accepting donations and
initiations on condemnation actions or executions
of declarations of takings. In exercising the
delegated authority, all real estate actions to
acquire, manage, and dispose of real property
assets must be reviewed and approved by a DOE
Certified Realty Specialist (CRS) before executing
the action. The senior realty officer in OECM will
provide the review and approval for those offices
without a CRS.
(2) A CRS must be involved in planning, acquisitions,
utilization surveys, excess declarations, and
disposal by demolition or sale of real property
assets. These actions are to be performed in
accordance with requirements in 41 CFR, Chapters
101 and 102, Federal Property Management
Regulations, (reference d), and DOE real property
authorities. The DOE Real Estate Process—Desk
Guide for Real Estate Personnel (reference f)
provides detailed guidance and procedures for
completing real estate actions. These actions will
be reflected in TYSPs.
(3) Land-use planning and management integrates land
uses at each site and examines multiple land-use
options. Land-use planning must be consistent
with DOE P 430.1 (reference o). The land-use plan
must provide a clear view of the land-use issues,
capabilities, opportunities, and limitations of
the site. It will identify all land that is needed
to support the site mission through annual
utilization surveys. The plan must be kept current
and support development identified in the site
TYSP. At cleanup and closure sites, identified
uses must be consistent with a Record of
Decision’s anticipated future or end-point use.
(4) Land-use plans should be tailored based on
local site condition and must consider the
National Environmental Policy Act, site
planning and asset management, LTS plans,
institutional control plans, stakeholder
public participation, economic development
under community reuse organizations,
privatization of assets, environmental law,
cultural asset management, historic
preservation, and natural resource management.
(5) Land-use planning and management must be
established through one or more of the
following, as approved by the LPSO responsible
for the site.
(a) Disposition plans, and LTS plans at cleanup
or closure sites.
(b) Implementation of a sitewide National
Environmental Policy Act document that
addresses land-use or resource management.
(c) A Land-Use Control Action Plan under the
Comprehensive Environmental Response,
Compensation, and Liability Act (CERCLA).
(d) Administrative mechanisms to assign use to
areas that support implementation of the
TYSP.
(4) Real property assets not fully utilized or
excess to mission needs must be identified to
facilitate reuse or disposal as follows.
(a) LPSOs/CSOs/PSOs must annually identify all
project/program mission terminations to
site/field managers. This is normally
accomplished in program planning documents.
(b) Except for environmental closure sites,
site/field managers must annually report to
responsible LPSOs/CSOs/PSOs any real property
identified as not utilized through
utilization surveys. This may be accomplished
through updates to TYSPs to reflect planned
excess facilities and disposition schedules.
Utilization status will be recorded in FIMS.
(c) LPSOs/CSOs must annually declare as excess
the real property reported to them as not
utilized and not needed to support their
program missions. These formal declarations
must be transmitted to OECM no later than
December 31st of each year.
(d) OECM will screen all LPSO/CSO declared excess
real property with remaining useful life with
all other LPSOs/CSOs/PSOs to determine
whether the property is excess to all
programs in the Department.
(e) If not accepted for transfer by another
program, the responsible LPSO/CSO must plan
and program the elimination of excess real
property through reuse, demolition, disposal,
transfer, or sale based on reducing risks and
minimizing life-cycle costs. (See
requirements paragraph 4e for additional
details). The report must compare the budget
authority against the actual expenditures and
the performance outcomes achieved in the last
full fiscal year of execution.
(5) Excess real property assets that are appropriate
for economic-development transfer must be
identified and disposed of in accordance with 10
CFR 770, Transfer of Real Property at Defense
Nuclear Facilities for Economic Development
(reference b).
(6) Real estate actions for out-grant must be
performed in accordance with the Joint DOE/EPA
Interim Policy Statement on Leasing Under the Hall
Amendment, dated June 30 1998 (reference x), and
applicable DOE directives. Clear definition of
roles, responsibilities, and liabilities must be
developed to ensure safety and protection of the
workers, the public, and the environment in
accordance with Guidance on Protection of Workers
Utilizing DOE Leased Facilities (reference v) for
all stakeholders of Departmental real property
assets that are leased to private parties.
(7) Headquarters (Office of General Counsel; Office of
Management, Budget and Evaluation; and LPSOs/CSOs)
must be notified 90 days before all disposals by
sale or lease under DOE authorities. Notification
must be accomplished as follows.
(a) For non-economic-development leases, e-mail
notifications are acceptable.
(b) For economic-development-related leases and
sales, a notification package must be
submitted to Congress, 30 days before
transfer by sale or lease.
(c) For sales of land that do not use the
standard Federal practices of 41 CFR,
Chapters 101 and 102 (reference d), a
notification to the Energy and Water
Appropriations Committee is required 60 days
before any proposed sale of land. The
notification is to provide a detailed
explanation for the waiver of Federal
practices for the sale of property.
(8) Real Estate Records and Reports.
(a) FIMS is the Department’s real property asset
inventory system and fulfills the requirement
in 41 CFR, Chapters 101 and 102 (reference
d), for each Agency to have a real property
inventory system. FIMS data will be used to
meet routine reporting requirements. [See
Attachment 5, Section 1, and the FIMS Web
site (reference t).]
1 FIMS data must be maintained as complete
and current throughout the life cycle of
real property assets, including real
property related institutional controls.
2 FIMS data must be archived after
disposal of real property assets. Those
necessary for LTS must be identified,
reviewed, and retained.
3 Site/field managers will ensure that
FIMS data is verified annually as
complete and accurate using a quality
control process.
(b) Real property asset inventory reports must be
provided as specified in the DOE Real Estate
Process—Desk Guide for Real Estate Personnel
(reference f).
c. Acquisition. Acquisition of real property assets
through construction must be planned and accomplished
to meet program mission projections. Acquisition
planning should include life-cycle cost considerations.
(1) Acquisition of real property assets up to $5
million will be accomplished as General Plant
Projects (GPPs). GPPs are miscellaneous minor new
construction projects of a general nature, the
Total Estimated Costs of which may not exceed the
congressionally established limit of $5 million.
GPPs are necessary to adapt facilities to new or
improved production techniques; to affect
economies of operation; and to reduce or eliminate
health, fire, and safety problems. These projects
provide for design and/or construction and
additions and improvements to land, buildings, and
utility systems, and they may include the
construction of small new buildings, replacements
or additions to roads, and general area
improvements. Institutional General Plant Projects
(IGPPs) are a class of GPPs that are of a general
institutional nature whose benefit cannot be
directly attributed to a specific or single
program and are required for a general sitewide
need. Further, IGPPs may be used at the discretion
of the LPSOs/CSOs/PSOs. (Attachment 6 of this
Order provides additional IGPP requirements.)
(2) Acquisition of real property assets greater than
$5 million must be in accordance with DOE O 413.3,
Program and Project Management for the Acquisition
of Capital Assets, dated 10-13-00 (reference n).
While not required by this Order, project
management techniques in O 413.3 may be tailored
for GPPs and IGPPs based on the nature and
complexity of the individual project.
(3) As directed in House Conference Report 107-258
accompanying the FY 2002 Energy and Water
Development Appropriations Bill (reference w),
increases in facility area, as a result of new
construction projects requested in fiscal year
2003, must be offset by transfer, sale, or
demolition of excess buildings and facilities of
equivalent size at each site. Waivers permitting
the requirement to be met by reduction of excess
facilities at another site can be requested in the
interest of critical mission and will be
considered on a case-by-case basis and approved by
the Secretary through the Chief Financial Officer.
This excess reduction to new construction does not
apply to environmental management closure sites.
(4) All acquisition projects (GPPs, IGPPs, and line
items) must be included in the TYSP.
d. Maintenance and Recapitalization. Real property assets
will be maintained in a manner that promotes
operational safety, worker health, environmental
protection and compliance, property preservation, and
cost-effectiveness while meeting the program missions.
This requires a balanced approach that not only
sustains the assets but also provides for their
recapitalization.
• Sustainment consists of maintenance and repair
activities necessary to keep the inventory of
facilities in good working order. Sustainment
includes regularly scheduled maintenance and
anticipated major repairs or replacement of
components that occur periodically over the
expected service life of the facilities. Lack of
sufficient levels of sustainment can result in a
reduction in service life.
• Facilities eventually wear out or become outdated
and incapable of supporting mission needs. These
facilities will be replaced, recapitalized, or
disposed of if excess to needs. Recapitalization
extends the service life of facilities or restores
lost service life and consists of alterations and
betterments needed to keep existing facilities
modern and relevant in an environment of changing
standards and missions. Recapitalization
investments do not sustain facilities and will,
therefore, be complemented by an effective
sustainment program to protect the facility.
• Sustainment and recapitalization requirements must
be developed in support of the Department’s
strategic plan, the Secretary’s 5-year planning
guidance, and appropriate program guidance.
(1) Each site must have a maintenance program to
maintain each real property asset, including
plant, property, and equipment, in a condition
suitable for its intended use. The maintenance
program will include condition assessments of real
property assets, a work control system, management
of deferred maintenance, a method to prioritize
maintenance projects, and cost accounting systems
to budget and track maintenance expenditures.
Configuration management of all assets in the
maintenance program will be consistent with the
intent of DOE STD-1073-93, Guide for Operational
Configuration Management Program, dated November
1992 (reference r). In addition to the maintenance
requirements of this Order, sites with nuclear
facilities must also comply with DOE O 433.1,
Maintenance Management Program for DOE Nuclear
Facilities, dated 6-01-01 (reference ee).
(2) Condition assessments must be performed on all
real property assets at least once during any 5-
year period using inspection methods in accordance
with industry standards. Some real property
assets, such as those that are mission critical or
safety related, may require a more frequent
inspection cycle as determined by the LPSO/CSOs or
the site/field manager. [See Attachment 5 to this
Order and the DOE Condition Assessment Survey
(CAS) (reference e) for amplifying information.]
(3) Condition assessments result in a determination of
the current condition of real property assets,
their estimated time to failure, the optimal
period to accomplish maintenance actions based on
engineering/maintenance analysis, and the
estimated cost to correct identified deficiencies.
(See Attachment 5 for amplifying information.) The
results of condition assessments must be reported
in FIMS.
(4) The repair costs for the deficiencies identified
during the condition assessments must be estimated
using the DOE Condition Assessment Information
System (CAIS) or another nationally recognized
cost estimating system. Costs must include
contractor overhead/burden.
(5) Preventive, predictive, and corrective maintenance
will be used to ensure real property asset
availability for planned use and/or proper
disposition.
(6) Five-year sustainment requirements must be
developed and maintained based on projections of
serviceability, economic life, condition
assessments, the mission of facilities and
projected funding for deferred maintenance
reduction. These requirements will be summarized
in the TYSP.
(7) Each site must develop recapitalization
requirements structured to keep existing
facilities modern and relevant in an environment
of changing standards and missions.
(a) Recapitalization requirements are in addition
to sustainment activities (i.e., maintenance
and repair) and consist of alterations and
betterments to replace or modernize existing
facilities.
(b) Recapitalization activities are traditionally
funded by GPPs, IGPPs, or line item projects.
(See Attachment 3 under “Alterations” and
“Betterments” for more information.)
(c) Recapitalization will be summarized in the
TYSP.
(8) Each site must evaluate the relative importance
and contributions of all real property assets to
mission accomplishment. A holistic systems
approach will be used to identify those facilities
and infrastructure assets that directly contribute
to the accomplishment of the assigned mission or
mitigation of environment, safety, and health
issues. Mission essential assets are those that
are critical to mission accomplishment and, if not
available, would adversely impact the mission. The
mission essential determination will be based upon
program assigned mission requirements. Assets will
be designated as mission essential in FIMS.
e. Disposition and Long-Term Stewardship. Planning for
disposition must be initiated when real property assets
are identified as no longer required for current or
future programs. Disposition includes stabilizing,
preparing for reuse, deactivating, decommissioning,
decontaminating, dismantling, demolishing, and/or
disposing of real property assets.
• LTS includes the physical controls, institutions,
information, and other mechanisms needed to ensure
protection of people and the environment where DOE
has completed, or plans to complete, disposition.
Disposition and LTS requirements are directly
influenced by decisions made during the
acquisition, maintenance, and operation of the
assets. Decisions made during the utilization of
assets need to consider their disposition and LTS
implications. A balance must be established
between accomplishment of DOE missions and the
disposition and LTS required to reduce risks to
workers and the public and minimize real property
asset life-cycle costs.
• Disposition and LTS activities must be consistent
with the guiding principles and core functions of
the Department’s integrated safety management and
facility disposition policies.
(1) When real property assets are identified as no
longer required for current program missions, a
disposition baseline must be developed to assess
and prepare the assets for disposition. Technical,
programmatic, and regulatory information is to be
used in developing the disposition baseline. The
disposition baseline must include the following
information and considerations.
(a) Identification and characterization of
hazardous and radioactive materials, waste,
and hazardous conditions of the real property
asset.
(b) Surveillance and maintenance requirements to
ensure the real property asset, including its
systems, and stored hazardous materials and
waste remain in a stable and known condition
and that adequate protection is provided to
workers, the public, and the environment
pending disposition.
(c) Assessment and adjustment of the facility
authorization basis, as necessary, to reflect
conditions and activities pending
disposition.
(2) The disposition plan must integrate environmental,
safety, and health requirements into disposition
activities in accordance with DOE STD 1120-98,
Integration of Environment, Safety, and Health
into Facility Disposition Activities, dated May
1980 (reference q). The disposition plan should be
tailored based on the disposition baseline and
disposal method to be used (e.g., reuse,
demolition, or decommissioning) and must consider
DOE P 455.1, Use of Risk-Based End States
(reference dd) and the guidance in the following
Guides (references h, i, j, and k).
• DOE G 430.1-2, Implementation Guide for
Surveillance and Maintenance during Facility
Transition and Disposition, dated 9-29-99;
• DOE G 430.1-3, Deactivation Implementation
Guide, dated 9-29-99;
• DOE G 430.1-4, Decommissioning Implementation
Guide, dated 9-2-99; and
• DOE G 430.1-5, Transition Implementation
Guide, dated 4-24-01.
The disposition plan shall include the following.
(a) A method for identifying, evaluating, and
selecting disposition alternatives and LTS
requirements. Selection of the preferred
disposition alternative needs to be
documented and be in accordance with relevant
regulatory standards. Stakeholder involvement
is required in the development of LTS plans.
(b) The identification and completion of required
activities related to historical
preservation.
(c) A post-closure/post-disposition/LTS records
turnover or retention plan.
(d) Surveillance and maintenance plans for
facilities and land parcels with residual
contamination, hazards, or other conditions
that are projected to require post-
disposition LTS. These plans must identify
appropriate management and funding
requirements to ensure safety, health, and
environmental regulatory compliance and meet
relevant requirements of treaties,
agreements, or other DOE commitments.
(e) A process to track status of LTS actions,
including gap analysis of the LTS transition
framework to identify actions remaining
before end-point conditions are satisfied.
This should include a method to periodically
reassess monitoring requirements and make any
necessary revisions.
(f) Development of specific end-point criteria
for declaring disposition complete.
(g) Cost and schedule information for disposition
activities and any follow on surveillance and
maintenance and LTS requirements must be
identified in the TYSP.
(3) Where transfer of real property assets is required
for disposition (e.g., turning a facility or site
over to another organization for reuse or
transferring it to another office within the
Department to support the transition from one
disposition phase to another or initiation of
LTS), applicable DOE policies, assigned missions
and responsibilities, appropriate industry
standards, and the guidance provided in DOE G
430.1-5 (reference k) must be adhered to. Real
property asset transfers must include the
following.
(a) Identification of the real property assets as
candidates for transfer, formal notification
of the potential receiving organizations, and
issuance of other reports and notifications
in accordance with the applicable
requirements under paragraph 4b of this
order.
(b) Development of a transfer acceptance process
to ensure pre-transfer verification of the
technical and regulatory information in the
disposition baseline and agreement on a
transfer date and the disposition/LTS scope,
cost, and schedule. Normally, to match the
Departmental budget cycle, the date of
transfer for a facility will be the 1st of
October after the 2-year (or 3-year)
anniversary of the date when the receiving
organization was notified unless the parties
reach an agreement that stipulates an
alternative transfer date.
(c) Pretransfer review for formal acceptance of
the real property assets being transferred.
Formal acceptance must be documented by an
agreement signed by relevant LPSOs/CSOs/PSOs.
FIMS will be updated to reflect the transfer
of property accountability and custody.
(d) Conveyance of the appropriate funding and
budget targets along with the real property
assets being transferred.
(4) Decommissioning must adhere to the relevant
requirements for non-time-critical removal actions
under CERCLA, using a tailored process negotiated
with the Environmental Protection Agency, with
continued Defense Nuclear Facilities Safety Board
oversight to the extent authorized by law.
(5) Records data collection, management, and reporting
requirements for disposition and LTS are as
follows.
(a) FIMS data fields must be kept current
throughout real property asset disposition
(e.g., identified as excess, transferred to
another program, placed into inactive status,
dismantled, or placed in LTS).
(b) FIMS information regarding real property
assets that have been disposed of, including
all related institutional controls, must be
archived.
(c) Records necessary for LTS must be identified,
reviewed, and retained per applicable DOE
directives and Federal regulations.
(d) A final report or equivalent document must be
developed for each disposition and land
parcel remediation/LTS project. The final
report/document must describe, as a minimum,
project activities, final facility status,
and cost and performance information to
demonstrate that specific end-point criteria
have been met.
f. Value Engineering. VE is an organized effort directed
at analyzing the functions of systems, equipment,
facilities, services, and supplies for the purpose of
achieving the essential functions at the lowest life-
cycle cost consistent with required performance,
reliability, quality, maintainability, environmental
protection, and safety. VE requirements are provided in
the following.
• Office of Management and Budget (OMB) Circular A-
131, Value Engineering, (reference aa);
• Public Law 104-106, Value Engineering for Federal
Agencies (reference cc);
• DOE N 413.2, Value Engineering, dated 12-30-02
(reference m); and
• ASTM Practice 1699-00, Standard Practice for
Performing Value Analysis for Buildings and
Building Systems (reference a).
For real property asset acquisition, disposition,
demolition, repair and recapitalization projects where
the total value for a single item of purchase or
contract is expected to be less than or equal to $5
million, the LPSO/CSO or site/field manager shall
assess the application of VE requirements based on the
complexity, risks, and potential economic benefit.
(1) For real property asset acquisition, disposition,
demolition, repair, and recapitalization projects
where the total value for a single item of
purchase or contract is expected to be greater
than $5 million, VE assessment shall be performed
in accordance with DOE O 413.3 (reference n).
(2) Real estate acquisitions are excluded from VE.
g. Performance Goals and Measures. The DOE PPBES requires
that performance measures be established that link
performance of program goals and budgets to outputs and
outcomes. All DOE elements must develop real property
asset performance measures commensurate with their
duties and responsibilities. The LPSOs/CSOs must
establish annual performance targets for their real
property assets and state their expected performance
outputs and outcomes in their annual direction and
guidance. Site-specific measures must be developed by
each site/field manager to assess the level to which
the LPSO-/CSO-established outputs and outcomes have
been attained. Corporate measures for real property
asset management include the following.
(1) Asset Utilization Index (AUI). AUI is the
Department’s corporate measure of facilities and
land holdings against requirements. The index
reflects the outcome from real property
acquisition and disposal policy, planning, and
resource decisions. The index is the ratio of the
area of operating facilities or land holdings
justified through annual utilization surveys
(numerator) to the area of all operational and
excess facilities or land holdings without a
funded disposition plan (denominator). The AUI is
derived from data in FIMS obtained from annual
utilization surveys. [See 41 CFR, Chapters 101 and
102 (reference d), and Executive order 12512,
Federal Real Property Management Survey (reference
s).] Separate AUIs will be developed for
facilities and for land holdings.
AUI = utilization justified assets
current real property assets
Ratings are assigned to AUI range measures. The
AUI improves as excess facilities are eliminated
and consolidation increases the space utilization
rate of the remaining facilities. AUI ranges and
ratings are as follows.
AUI Range AUI Rating
1.00 > 0.98 Excellent
0.98 > 0.95 Good
0.95 > 0.90 Adequate
0.90 > 0.75 Fair
0.75 > Poor
(2) Asset Condition Index (ACI). ACI is the
Department’s corporate measure of the condition of
its facility assets. The ACI reflects the outcomes
of real property maintenance and recapitalization
policy, planning, and resource decisions. The
index is one (1) minus the Facility Condition
Index (FCI). FCI is the ratio of Deferred
Maintenance to Replacement Plant Value. The FCI is
derived from data in FIMS.
ACI = 1 - FCI
Ratings are assigned to ACI range measures. The
goal is for the ACI to approach one (1). The ACI
increases and approaches one (1) as the condition
of facilities improves at a site. ACI ranges and
ratings are as follows.
ACI Range ACI Rating
1.00 > 0.98 Excellent
0.98 > 0.95 Good
0.95 > 0.90 Adequate
0.90 > 0.75 Fair
0.75 > Poor
(3) AUI and ACI measure the net result of
numerous real property management and
disposal policy, planning, and resource
decisions over time. PPBES requires
accounting for execution of resource
decisions made during planning, programming,
and budgeting. To assess the use of real
property asset budgets for their intended
purposes, the following execution measures
are established.
(a) On a quarterly basis, Headquarters program
offices (LPSOs/CSOs) will review their sites’
real property maintenance and disposition
budget execution against the amounts shown in
the IFI Crosscut Budget. The use of those
budgets for other than their intended
purposes requires advance approval by the
cognizant Under Secretary.
(b) Assessment of IFI Crosscut Budget execution
for real property maintenance and disposition
by Headquarters program offices (LPSOs/CSOs)
are to be submitted to OECM not later than 45
calendar days following the end of each
fiscal year quarter.
5. RESPONSIBILITIES. A qualified DOE Federal facilities
management staff must be assigned at cognizant
Headquarters offices and field elements to provide for
implementation of this Order and to ensure
accountability. The paragraphs below describe the
responsibilities and authorities for effective
management of DOE real property assets and establish
accountabilities for real property asset management
from planning and acquisition through operations and
disposal. Figure 2 provides an overview of the
interrelationships of those responsible for achieving
the requirements of this Order.
• LPSOs issue program missions, budgets, and
planning estimates covering a 10-year planning
horizon for site infrastructure and LPSO-related
real property assets and approve TYSPs and land-
use management plans for their sites.
• CSOs/PSOs issue program missions, budgets, and
planning estimates covering a 10-year planning
horizon for their program-related work and/or real
property assets and approve elements of TYSPs
related to their programmatic responsibilities at
related sites.
• Site/field managers ensure mission resource
requirements for real property assets, including
their plans and budgets, are prepared to meet the
program missions, budgets, and planning estimates,
and the results are documented in the TYSP.
Site/field managers perform a key role
coordinating program and tenant activities and
real property asset needs at the site.
• TYSPs are submitted by site/field managers to the
LPSOs/CSOs/PSOs as the plans for real property
assets at the sites. TYSPs support LPSO/CSO/PSO
programming decisions regarding real property
assets and subsequent site budget requests.
• OECM develops policies and procedures for real
property asset management and provides corporate
oversight for implementation.
Figure 2. Real property asset management
interrelationships. (SEE THE PDF FILE)
a. Secretary.
(1) Establishes the corporate policy for real property
asset management.
(2) Authorizes actions to acquire title to or interest
in real property by condemnation.
(3) Accepts donations of real property assets from
outside DOE.
b. Deputy Secretary.
(1) As DOE’s Chief Operating Officer, exercises
responsibility for implementation of this Order by
Departmental elements.
(2) Resolves real property asset issues between
program offices or between program offices and
NNSA.
c. Director, Office of Management, Budget and Evaluation,
and Chief Financial Officer.
(1) Establishes budget formulation and execution
policy and procedures for real property assets.
(2) Reviews and coordinates all economic-development
sales and leases and sales of land for less than
fair market value.
(3) Reviews and coordinates transfer issues between
program offices or between program offices and
NNSA.
d. Office of Engineering and Construction Management.
(1) Serves as the Department’s principal point of
contact relating to real property asset
management.
(2) Develops, promulgates, and maintains policies and
procedures to implement and sustain an effective
corporate, holistic, performance-based program for
real property asset management, including
planning, real estate, acquisition, maintenance
and recapitalization, disposition and LTS, VE, and
performance goals and measures.
(3) Provides independent corporate oversight for the
implementation of the real property asset
management requirements of this Order and provides
an annual summary report to the Deputy Secretary
on the state of the Department’s real property
assets.
(4) Submits required Congressional reports related to
real property assets in coordination with other
responsible Departmental elements.
(5) Provides technical assistance and support to
Departmental elements for real property asset
management.
(6) Develops and monitors Departmental corporate
performance measures for real property asset
management to monitor the efficiency and
effectiveness of real property asset management.
(7) Maintains property reports to reflect the
Department’s entire real property inventory,
including the current status of maintenance and
disposition of excess real property at each site.
(8) Sponsors and coordinates the Facilities and
Infrastructure Executive Steering Committee (FISC)
to guide the overall direction of real property
asset management in the Department and promote the
resolution of cross-program issues.
(9) Sponsors and coordinates the Facilities Data
Development Committee (FDDC) to guide the overall
direction of FIMS.
(10) Manages the administration and maintenance of the
FIMS database and DOE’s CAIS, including associated
Web sites. (See Attachment 5.)
(11) Participates in real property asset management
concerns for the Corporate Review Budget.
(12) Develops and issues annual implementing guidance
to determine and report in FIMS the deferred
maintenance estimate for the DOE Consolidated
Financial Statement using condition assessment
data.
(13) Manages the certification program for DOE real
estate specialists, working with LPSOs, CSOs, and
site/field managers to ensure adequate numbers of
CRSs are deployed to meet Departmental real estate
requirements.
(14) Coordinates the possible reuse of facilities that
LPSOs, CSOs, and site/field managers report as
excess, including management assistance and
coordination for the disposal by sale, lease, or
transfer of excess Departmental real property
assets.
(15) Reviews proposed changes to the CRD of this Order.
(16) Facilitates issue resolution between LPSOs, CSOs,
and site/field managers regarding aspects of this
Order.
e. Lead Program Secretarial Office—with Single Program
Site.
(1) Is accountable to the Secretary for the proper
stewardship of real property assets at the site,
including maintaining the condition of
infrastructure to support mission activities
reliably, efficiently, and effectively.
(2) Ensures a qualified DOE Federal facilities
management staff is assigned at Headquarters
offices and field elements to provide for
implementation of this Order and to ensure
Federal accountability for the proper
stewardship of real property assets and real
estate actions.
(3) Develops components for both the Department’s
and the program’s strategic plans that link real
property assets to missions, and establishes a
rational basis for real property asset planning
and budgets, including issuing annual direction
and guidance relative to planning, programming,
budgeting, execution, and evaluation activities.
(4) Provides annual program direction, guidance, and
oversight for implementing the requirements of
this Order by the program and sites under the
LPSO’s cognizance.
(a) This must include program missions,
budgets, and planning estimates for use in
developing the TYSP; project prioritization
factors based on mission critical
importance; decision making that considers
risks and links plans and budgets to
accomplishment of program mission
projections and budgets; and establishment
of performance measures for corporate and
program real property asset performance.
(b) Program mission projections and
terminations must be for the 10-year
planning horizon, and program budget and
planning estimates must be for at least the
5-year planning horizon.
(c) LPSOs must provide critical mission
requirements so that sites can identify and
report in FIMS mission essential real
property assets that directly support these
requirements.
(5) Reviews and approves TYSPs submitted by the
site/field manager.
(6) Declares excess real property assets in
accordance with the requirements of this Order,
including an annual declaration and report to
OECM on the real property assets that are excess
to program needs and notification to the
site/field manager of mission terminations.
(7) Approves the appropriate land-use planning and
management process documentation (e.g., Site
Closure Plan, Sitewide National Environmental
Policy Act Document, Land-Use Action Control
Plan under CERCLA).
f. Lead Program Secretarial Office—with Multiprogram
Site. A multiprogram site is defined as a contiguous
site that is used by more than one DOE program. The
LPSO at a multiprogram site has all of the
responsibilities identified above under the LPSO for
a single program site and an additional
responsibility to act as a host landlord for its
tenant CSOs/PSOs, including the following.
(1) Provides annual program direction and guidance
consistent with agreements between the LPSO and
CSOs at the site for details of real property
assets.
(2) Coordinates all CSO/PSO programmatic needs at a
site with the site/field manager for a
consolidated TYSP that includes all tenant
CSOs/PSOs.
(3) Ensures the TYSP is consistent with agreements
between the LPSO and CSOs about the details of
programmatic real property assets, especially
pertaining to site infrastructure.
(4) Resolves conflicts at the site between LPSO,
CSOs, and the site/field manager for planned
site infrastructure.
g. Cognizant Secretarial Office/Program Secretarial
Office—Multiprogram Site. A PSO at a multiprogram
site may be a tenant with no ownership role for
facilities or infrastructure, or the PSO may be a CSO
distinguished by cognizance and ownership of program-
specific (programmatic) facilities or areas at the
site. Responsibilities vary for these differing roles
as identified below.
(1) A CSO has responsibilities 5e(1), (3), (4), and
(6) identified above under LPSO-Single Program
Site; responsibilities 5f(1), (2), and (3)
identified above under LPSO-Multiprogram Site;
and additional responsibilities to act as a
tenant to its host LPSO, including the
following.
(a) Prepares and approves CSO-specific TYSPs
for their requirements at the site when the
CSOs separately plan and budget for their
programmatic real property assets at the
site. These TYSPs can be separate from the
site/field manager’s TYSP, but must be
coordinated with the site/field manager and
LPSO and attached to the site/field
manager’s TYSP for a consolidated site
TYSP. Alternately, CSOs can agree to the
site/field manager preparing a TYSP that
includes all CSO requirements.
(b) Approves the TYSP if it was prepared by the
CSO’s site/field manager.
(c) Reviews and comments on the TYSP if it was
prepared by the site/field manager to
ensure expected real property asset needs,
especially for site infrastructure, are
covered consistent with agreements between
the LPSO/CSOs/PSOs about the details of
real property assets.
(2) A PSO has the following responsibilities to the
host LPSO and the site/field manager.
(a) Provides annual program direction and
guidance, including program missions,
budgets, and planning estimates for use in
developing the TYSP and notification of its
site program mission terminations.
1 Program mission projections must be
for the 10-year planning horizon, and
program budget and planning estimates
must be for at least the 5-year
planning horizon.
2 Program direction and guidance must be
consistent with agreements between the
LPSO/CSOs/PSOs at the site for details
of real property assets.
(b) Reviews the TYSP to ensure expected real
property asset needs, especially for site
infrastructure, are covered for their
program concerns consistent with agreements
between the LPSO/CSOs/PSOs about the
details of real property assets.
h. Site/Field Manager—with Single Program Site.
(1) Is accountable to the LPSO for the proper
stewardship of real property assets at the site,
including maintaining the condition of
infrastructure to support mission activities
reliably, efficiently, and effectively.
(2) Ensures a qualified DOE Federal facilities
management staff is assigned to implement this
Order and to ensure accountability.
(3) Develops components for the site’s strategic plan
that link real property assets to missions, and
establishes a rational basis for real property
asset plans and budgets.
(4) Oversees implementation of the requirements in
this Order at the site consistent with the annual
program direction and guidance issued by the LPSO
responsible for the site.
(5) Identifies and reports in FIMS mission essential
real property assets that directly support these
program defined mission requirements.
(6) Reviews and submits the TYSP to the LPSO for
approval.
(7) Participates in the DOE certification program for
real estate specialists.
(8) Normally serves as the DOE contracting officer’s
representative for site contracts as designated by
those contracts (unless otherwise delegated) and
all other contracts and financial assistance
agreements executed at the site.
(a) Ensures applicable requirements found in this
Order are implemented through site contracts
and subcontracts.
(b) Establishes and uses agreed upon performance-
based measures and expectations for real
property assets.
(9) Monitors Order implementation through the
establishment, by contract or financial assistance
agreement, of a site-specific performance
measurement system. Through the performance
measurement system, the site/field manager—
(a) develops output-/outcome-based performance
measures to drive achievement of the
corporate and real property asset
performance;
(b) leads in negotiating performance measures
with contractors to meet defined performance;
(c) performs assessments of contractor
performance in accordance with the
performance measurement system;
(d) uses independent or line management oversight
to verify effectiveness of assessments,
identify deficiencies, and recommend
corrective actions; and
(e) ensures population and validation of data in
FIMS and that objectives of the condition
assessment program defined in paragraph 4d of
this Order are met.
i. Site/Field Manager—Multiprogram Site. A multiprogram
site is defined as a contiguous site that is used by
more than one DOE program. The site/field manager at a
multiprogram site has all of the responsibilities
identified above under the site/field manager for a
single program site and an additional responsibility to
act as a host for tenant CSOs/PSOs, including the
following.
(1) Coordinates the facilities management requirements
and activities at the site including
LPSO/CSOs/PSOs and other non-DOE tenants/owners.
(2) Secures agreements with non-DOE tenant/owners
regarding their facilities and infrastructure
responsibilities at the site.
(3) Determines whether other site program needs can be
met with property affected by program mission
terminations.
(4) Presents a single, coordinated TYSP, including any
tenant-specific TYSPs.
6. REFERENCES.
a. American Society for Testing and Materials (ASTM)
Practice 1699-00, Standard Practice for Performing
Value Analysis for Buildings and Building Systems
b. 10 Code of Federal Regulations (CFR) 770, Transfer of
Real Property at Defense Nuclear Facilities for
Economic Development
c. 40 CFR 300, National Oil and Hazardous Substances
Pollution Contingency Plan, Parts 410 and 415
d. 41 CFR, Chapters 101 and 102, Federal Property
Management Regulations
e. DOE Condition Assessment Survey Web site,
http://cas.hr.doe.gov
f. DOE Real Estate Process—Desk Guide for Real Estate
Personnel, June 2001
g. DOE G 120.1-5, Guidelines for Performance Measurement,
dated 6-30-96
h. DOE G 430.1-2, Implementation Guide for Surveillance
and Maintenance during Facility Transition and
Disposition, dated 9-29-99
i. DOE G 430.1-3, Deactivation Implementation Guide, dated
9-29-99
j. DOE G 430.1-4, Decommissioning Implementation Guide,
dated 9-2-99
k. DOE G 430.1-5, Transition Implementation Guide, dated 4-
24-01
l. DOE G 450.4-1B, Integrated Safety Management System
Guide, dated 3-1-01
m. DOE N 413.2, Value Engineering, dated 12-30-02
n. DOE O 413.3, Program and Project Management for the
Acquisition of Capital Assets, dated 10-13-00
o. DOE P 430.1, Land and Facility Use Planning, dated 7-9-
96
p. DOE P 580.1, Management Policy for Planning,
Programming, Budgeting, Operation, Maintenance and
Disposal of Real Property, dated 5-20-02
q. DOE STD 1120-98, Integration of Environment, Safety,
and Health into Facility Disposition Activities, dated
May 1980
r. DOE STD-1073-93, Guide for Operational Configuration
Management Program, dated November 1992
s. E.O. 12512, Federal Real Property Management Survey
t. Facilities Information Management System (FIMS) Web
site, http://fims.hr.doe.gov
u. General Accounting Office Report, NSIAD-99-100 Military
Infrastructure: Real Property Management Needs
Improvement, dated September 1999
v. Guidance on Protection of Workers Utilizing DOE Leased
Facilities,
dated August 6, 1999
w. House Conference Report 107-258, Making Appropriations
for Energy and Water development for the Fiscal Year
ending September 30, 2002
x. Joint DOE/EPA Interim Policy Statement on Leasing Under
the Hall Amendment, dated June 30, 1998
y. National Association of College and University Business
Officers Managing the Facilities Portfolio—A Practical
Approach to Institutional Facility Renewal and Deferred
Maintenance, 1991
z. NISTIR 6389, UNIFORMAT II Elemental Classification for
Building Specifications, Cost Estimating, and Cost
Analysis, October 1999
aa. Office of Management and Budget Circular A-131, Value
Engineering, dated 5-21-93
bb. Public Law (P.L.) 95-91, 91 Stat. 578, Department of
Energy Organization Act of 1977, Section 302
cc. P.L. 104-106, Section 4306, Value Engineering for
Federal Agencies (41 U.S.C. 401 et seq.)
dd. DOE P 455.1, Use of Risk-Based End States, dated 7-17-
03
ee. DOE O 433.1, Maintenance Management Program for DOE
Nuclear Facilities, dated 6-01-01
7. CONTACT. For answers to questions, contact the Office of
Engineering and Construction Management at 202-586-1784.
BY ORDER OF THE SECRETARY OF ENERGY:
KYLE E. McSLARROW
Deputy Secretary
ATTACHMENT 1. DOE ORGANIZATIONS TO WHICH DOE O 430.1B IS APPLICABLE
Except for the exclusions in paragraph 3c, DOE O
430.1B applies to all DOE elements/organizations with
responsibility for real property assets, including the
National Nuclear Security Administration (NNSA).
ATTACHMENT 2. CONTRACTOR REQUIREMENTS DOCUMENT
DOE O 430.1B, Real Property Asset Management
This Contractor Requirements Document (CRD) establishes the
requirements for Department of Energy (DOE) contractors,
including National Nuclear Security Administration contractors,
whose contracts involve the acquisition, management,
maintenance, disposition, or disposal of real property assets.
Contractors are expected to meet these functional requirements
through tailoring of their business processes and management
practices, and use of standard industry practices.
Regardless of the performer of the work, the contractor is
responsible for compliance with the requirements of this CRD. The
contractor is responsible for flowing down the requirements of
this CRD to subcontracts at any tier to the extent necessary to
ensure the contractor’s compliance with the requirements. In
doing so, the contractor must not unnecessarily or imprudently
flow down requirements to subcontracts. That is, the contractor
must ensure both that it and its subcontractors comply with the
requirements of this CRD and that they only incur costs that
would be incurred by a prudent person in the conduct of
competitive business.
The contractor provides services to DOE related to real
property asset planning, real estate, maintenance, disposition
and long-term stewardship (LTS), and value engineering (VE) to
balance acquisition, sustainment, recapitalization and disposal
to ensure that real property assets are available, utilized,
and in a suitable condition to accomplish DOE’s missions.
(Definitions for terms used in this CRD are provided in DOE O
430.1B, Attachment 3.)
1. PLANNING. Based on DOE-furnished program planning guidance,
the contractor must
a. assess the current real property assets against program
mission projections,
b. identify the specific real property asset projects and
activities required to meet program mission
projections, and (c) propose a 10-year planning horizon
through the development of a Ten-Year Site Plan (TYSP)
or a disposition plan for closure sites. [See also
paragraph 4a of DOE O 430.1B.]
2. DOCUMENTION. The contractor must document its real property
management activities, including (a) the site’s plan to meet
program missions, (b) budgets and planning estimates, and
(c) performance outcomes.
3. FACILITIES INFORMATION MANAGEMENT SYSTEM. The contractor
must maintain Facilities Information Management System
(FIMS) data and records, which are DOE’s corporate real
property inventory database for all lands, buildings,
trailers, and other structures and facilities. FIMS data
must be current and verified annually.
4. REAL ESTATE. The contractor must—
a. submit all real estate actions to acquire, utilize, and
dispose of real property assets to DOE for review and
approval; Program Secretarial Office;
b. maintain, in a complete and current condition, all real
estate records identified by DOE; and
c. have a land-use planning and management process
approved by the site Lead Program Secretarial Officer.
5. MAINTENANCE. The contractor must maintain real property
assets in a manner that promotes operational safety, worker
health, environmental compliance, property preservation and
cost-effectiveness while meeting the program missions. This
requires a balanced approach that not only sustains the
assets, but also provides for their recapitalization and
includes the following as a minimum.
a. A maintenance management program that includes a
condition assessment of the real property assets, a
work control system, management of deferred
maintenance, a method to prioritize, and systems to
budget and track maintenance expenditures.
b. Identification of 5-year maintenance and repair
requirements (sustainment) and funding for deferred
maintenance reduction.
c. Identification of 5-year recapitalization requirements
to replace or modernize existing facilities.
d. Condition assessments must be performed on real
property assets at least once within a five-year
period, and may be required more frequently for mission-
essential facilities and infrastructure. The condition
assessment program shall utilize a tailored approach
based on facility status, mission and importance and
the magnitude of the hazards associated with facilities
and infrastructure. Inspection methodology shall be
consistent with industry practice, and shall include
identification of safety and health hazards. Deferred
maintenance estimates will be based on nationally
recognized cost estimating systems or the DOE Condition
Assessment Information System (CAIS). The condition
assessment program will support the reporting
requirements of FIMS.
6. DISPOSITION AND LONG-TERM STEWARDSHIP. When DOE identifies
that a program mission is no longer required, the contractor
must initiate preparation of affected real property assets
for disposition, including potential reuse for other
missions. Disposition and LTS activities must be consistent
with the guiding principles and core functions of the
Department’s integrated safety management and facility
disposition policies. To prepare for disposition, the
contractor must do the following.
a. Identify real property assets that are likely to be
declared as excess in a 10-year planning horizon and
the anticipated year of excess. This information must
be included in FIMS and incorporated within the TYSP.
b. Develop a disposition baseline to assess and prepare
the facility for disposition. Technical, programmatic,
and regulatory information is to be used in the
disposition preparation and planning process. The
disposition baseline must include the following
information.
(1) Identification and characterization of hazardous
and radioactive materials, waste, and hazardous
conditions of the real property asset.
(2) Surveillance and maintenance requirements needed
to ensure the real property asset, including its
systems, and stored hazardous materials and waste
remain in a stable and known condition and that
adequate protection is provided to the workers,
the public, and the environment pending
disposition.
(3) Assessment and adjustment of the facility
authorization basis, as necessary, to reflect
conditions and activities pending disposition.
c. Develop a disposition plan that identifies,
assesses, and evaluates alternatives and
integrates environmental, safety, and health
requirements into disposition activities. The
disposition plan should be tailored based on the
disposition baseline and disposal method to be
used (e.g., reuse, demolition, or
decommissioning). The disposition plan shall
include the following.
(1) A method for identifying, evaluating, and
selecting disposition alternatives and LTS
requirements. Selection of the preferred
disposition alternative needs to be documented and
be in accordance with relevant industry standards.
Stakeholder involvement is required in the
development of LTS plans.
(2) The identification and completion of required
activities related to historical preservation.
(3) A post-closure/post-disposition/LTS records
turnover or retention plan.
(4) Surveillance and maintenance plans for facilities
and land parcels with residual contamination,
hazards, or other conditions that are projected to
require post-disposition LTS. These plans must
identify appropriate management and funding
requirements to ensure safety, health, and
environmental regulatory compliance and meet
relevant requirements of treaties, agreements, or
other DOE commitments.
(5) A process to track the status of LTS actions,
including gap analysis of the LTS transition
framework to identify actions remaining before end-
point conditions are satisfied. This should
include a method to periodically reassess
monitoring requirements and make any necessary
revisions.
(6) The cost and schedule information for disposition
activities and any follow on surveillance and
maintenance and LTS requirements must be included
in the TYSP.
(7) The development of specific end-point criteria for
declaring disposition complete.
(8) The use of non-time-critical removal actions under
CERCLA, using a tailored process negotiated with
the Environmental Protection Agency, with
continued Defense Nuclear Facilities Safety Board
oversight to the extent authorized by law.
d. Summarize disposition cost and schedule information and
end-point criteria in a 10-year planning horizon.
e. Update FIMS data fields during real property asset
disposition (e.g., identified as excess, transferred to
another program office, placed into inactive status,
dismantled, or placed in LTS), and archive information
regarding real property assets that have been disposed
and add all real property related institutional
controls to FIMS.
f. Develop a final report or equivalent document for each
disposition and land parcel remediation/LTS project
that describes, at a minimum, final facility status and
includes information demonstrating that end-point
criteria have been met.
7. VALUE ENGINEERING. The contractor must use VE techniques in
a tailored manner to reduce DOE’s real property asset
ownership costs (e.g., acquisition, operations, maintenance,
and disposal) while maintaining the necessary level of
performance and safety. For real property asset acquisition,
disposition, demolition, repair, and recapitalization
projects where the total value for a single item of purchase
or contract is expected to be greater than $5 million, a VE
assessment shall be performed. Real estate acquisitions are
excluded from VE.
ATTACHMENT 3. DEFINITIONS
1. Alterations. Adjustments to interior arrangements or
other physical characteristics of an existing facility so
that it may be more effectively adapted to or used for
its designated purpose. Alterations do not result in
betterment to a facility. Examples of alterations are as
follows.
a. Removal or installation of interior walls for purposes
of rearranging the layout of an office building, and
incidental heating and ventilation ducting system.
b. Modifications that do not significantly extend the
capacity of the system.
c. Construction of a door or passage through an interior
structural wall.
d. Installation of new lighting fixtures that do not
significantly increase the lumens emitted but may
result in energy or maintenance savings.
2. Annual Utilization Surveys. Annual utilization surveys are
directed by Federal Property Management Regulations § 101-
47.802 to determine how well the real property assets are
being put to use. The survey content must address the
standard specified in Federal Property Management
Regulations § 101-47.801, Standards.
3. Authorization Basis. Safety documentation supporting the
decision to allow a process or facility to operate. Included
are corporate operational and environmental requirements as
found in regulations and specific permits and, for specific
activities, work packages or job safety analysis [per DOE G
450.4-1B, Integrated Safety Management System Guide, dated 3-
1-01 (reference l)].
4. Betterments. Capitalized improvements to facilities that
result in better quality work, increased capacity, and/or
extended useful life as required to accommodate regulatory
and other changes to requirements. Determining when and to
what extent expenditure should be treated as betterment
requires judgment. The proper basis for determining whether
or not betterment is effected is when the effect of the
replacement is related to each unit when a minor item is
replaced in each of a number of similar units, rather than
to the cumulative costs. Listed below are the various terms
that are commonly used to describe various categories of
betterments.
• Construction is the erection, installation, or assembly
of a new plant facility; the addition, expansion,
improvement, or replacement of an existing facility; or
the relocation of a facility. Construction includes
equipment installed in and made part of the facility and
related site preparation; excavation, filling and
landscaping, or other land improvements; and design of
the facility. Examples of improvements to an existing
facility include the following types of work.
• Replacing standard walls with fireproof walls.
• Installing a fire sprinkler system in a space that was
previously not protected with a sprinkler system.
• Replacing utility system components with a significantly
larger capacity components (e.g., replacing a 200-ton
chiller with a 300-ton chiller) and converting the
functional purpose of a room (e.g., converting an office
into a computer room).
Conversion is a major structural revision of a facility that
changes the functional purpose for which the facility was
originally designed or used.
Major Renovation and Replacement is a complete
reconstruction of a facility that has deteriorated or has
been damaged beyond the point where its individual parts can
be economically repaired. If the item replaced is a
retirement unit, its original costs (including installation
cost) are removed from the plant and capital equipment
accounts, and the cost of the newly installed item
(including installation cost) is added to the plant and
capital equipment accounts.
5. Candidates for Transfer. Land and facilities that include
(a) contaminated facilities for which DOE has responsibility
or owns; (b) contaminated portions of facilities, if
structurally independent and with separate utilities and
support systems; (c) real property or related personal
property that is ancillary to a candidate facility; and (d)
facilities otherwise agreed to by the DOE parties involved.
6. Certified Realty Specialist (CRS). A DOE employee who is
certified in one or more of the four specialty realty areas:
acquisition, non-General Services Administration leasing,
General Services Administration leasing, and land management
and disposal. Employees so certified are authorized to
prepare and implement real estate actions within certified
specialty areas. Detailed guidance and procedures for
becoming a CRS are found in the DOE Real Estate Process Desk
Guide for Real Estate Personnel.
7. Cognizant Secretarial Office (CSO). A Program Secretarial
Office that has responsibility as an owner for a program-
specific (programmatic) facility or area present on a site
that is owned by another program office [i.e., the Lead
Program Secretarial Office (LPSO)]. The CSO coordinates with
the site owner (i.e., the LPSO) to ensure needed
infrastructure support is planned and provided for its
facilities/area.
8. Contaminated Facilities. DOE facilities that have structural
components and/or systems contaminated with hazardous
chemical and/or radioactive substances. This definition
excludes facilities that contain no residual hazardous
substances other than those present in building materials
and components, such as asbestos-containing material, lead-
based paint, or equipment containing PCBs. This definition
excludes facilities in which bulk or containerized hazardous
substances, including radionuclides, have been used or
managed if no contaminants remain in or on the structural
components and/or systems.
9. Corrective Maintenance. The repair or restoration of failed
or malfunctioning equipment, systems, or facilities to their
intended functions or design conditions. It does not result
in a significant extension of the expected useful life.
10. Current Real Property Assets. The site’s total area in
square feet for all operating and excess facilities less (a)
those excess that have been funded for disposal, including
demolition, sale, and out-lease, in the enacted budget and
(b) those facilities (e.g., DR reactor at Hanford) that have
been deactivated and decontaminated but not fully
decommissioned and are being placed into long-term
stewardship. For land it is the acreage of the DOE site.
11. Deactivation. Placing a facility in a stable and known
condition including the removal of hazardous and radioactive
materials to ensure adequate protection of workers, public
health and safety, and the environment, thereby limiting the
long-term cost of surveillance and maintenance. Actions
include the removal of fuel, draining and/or de-energizing
nonessential systems, removal of stored radioactive and
hazardous materials, and related actions. Deactivation does
not include all decontamination necessary for the
dismantlement and demolition phase of decommissioning (e.g.,
removal of contamination remaining in the fixed structures
and equipment after deactivation).
12. Decommissioning. The process of closing and securing a
nuclear facility or nuclear materials storage facility to
provide adequate protection from radiation exposure and to
isolate radioactive contamination from the human
environment. It takes place after deactivation and includes
surveillance, maintenance, decontamination, and/or
dismantlement. These actions are taken at the end of the
life of a facility to retire it from service with adequate
regard for the health and safety of workers and the public
and protection of the environment. The ultimate goal of
decommissioning is unrestricted release or restricted use of
the site.
13. Decontamination. The removal or reduction of residual
chemical, biological, or radiological contaminant and
hazardous materials by mechanical, chemical or other
techniques to achieve a stated objective or end condition.
14. Deferred Maintenance. Maintenance that was not performed
when it should have been or was scheduled to be and which,
therefore, is put off or delayed for a future period.
15. Disposal. Permanent or temporary transfer of DOE control and
custody of real property assets to a third party who thereby
acquires rights to control, use, or relinquish the property.
16. Disposition. Those activities that follow completion of
program missions, including, but not limited to, preparation
for reuse, surveillance, maintenance, deactivation,
decommissioning, and long-term stewardship.
17. Disposition Baseline. The technical, programmatic, and
regulatory information which serves as input to the
disposition preparation and planning process, and is
essential to meet the goal of maximum risk reduction and
long-term cost savings in the elimination of excess real
property assets.
18. DOE Elements. First tier organizations at Headquarters and
in the field (field includes all operations offices and
field offices including site offices, service centers, and
energy technology centers).
19. Economic-Development Transfers. Those transfers of real
property, by sale or lease, executed under the requirements
and processes of 10 CFR 770, Transfer of Real Property at
Defense Nuclear Facilities for Economic Development
(reference b).
20. End Point. The detailed specification of conditions to be
achieved for a facility’s spaces, systems, and major
equipment. Fundamental to the determination of end points is
risk reduction through elimination or stabilization of
hazards, effective facility containment and facility
monitoring and control.
21. Excess Real Property. Land, improvements to land, or both,
including interest therein, which is not required for the
Department’s needs or the discharge of its responsibilities.
For the purposes of reporting deferred maintenance, excess
real property is an asset that is on the path for
disposition.
22. Facility. Land, buildings, and other structures, their
functional systems and equipment, and other fixed systems
and equipment installed therein, including site development
features outside the plant, such as landscaping, roads,
walks, parking areas, outside lighting and communication
systems, central utility plants, utilities supply and
distribution systems, and other physical plant features.
These include any of the DOE-owned, -leased, or -controlled
facilities, and they may or may not be furnished to a
contractor under a contract with DOE.
23. Facility Condition Index (FCI). DOE adopted the FCI in 1998
as its tool for measuring the condition of its facilities.
[See GAO Report, NSIAD-99-100 Military Infrastructure: Real
Property Management Needs Improvement, dated September 1999
(reference u) and National Association of College and
University Business Officers Managing the Facilities
Portfolio—A Practical Approach to Institutional Facility
Renewal and Deferred Maintenance, 1991 (reference y).] The
FCI is the ratio of the cost of deferred maintenance to the
facility’s replacement plant value. The cost of deferred
maintenance deficiencies is determined by condition
assessment inspections. Facilities Information Management
System data is used to calculate FCI.
24. Field Elements. All operations offices and field offices
including site offices, service centers, and energy
technology centers.
25. General Plant Projects. See the DOE Accounting Handbook,
Chapter 10, “Property, Plant and Equipment.”
26. Institutional General Plant Project (IGPP). Miscellaneous
minor (i.e., up to $5 million) new construction of a general
institutional nature benefiting multiple cost objectives and
required for general purpose sitewide needs. IGPPs do not
include projects whose benefit can directly be attributed to
a specific or single program. IGPPs are consistent with the
General Plant Project threshold and capitalization criteria
in the DOE Accounting Handbook, Chapter 10. Example IGPP
projects are multiprogrammatic/interdisciplinary scientific
laboratory, institutional training facility, sitewide
maintenance facilities and utilities, new roads,
multiprogrammatic office space, multiprogrammatic facilities
required for “quality of life” improvements, and replacement
or upgrade to a core utility, land, and facility that is no
longer reliable.
27. Integrated Facilities and Infrastructure (IFI) Crosscut
Budget. A crosscut budget exhibit that has been developed to
ensure sustained improvement in real property management. It
constitutes, with the exception of new mission line-item
projects, the resources required to implement a Ten-Year
Site Plan. This crosscut budget identifies renovation,
recapitalization, maintenance and demolition projects for
buildings and facilities by program and site. The IFI budget
also includes reports on direct maintenance and an estimate
of indirect maintenance and repair funding requirements. The
IFI is developed in conjunction with the Department’s
budgeting process and submitted annually with the
Presidential Budget to Congress.
28. Infrastructure. All real property, installed equipment, and
related real property that is not solely supporting a single
program mission at a multiprogram site or that is not
programmatic real property at a single program site.
29. Institutional Controls. Nonengineering measures intended to
affect human activities in such a way as to prevent or
reduce exposure to hazardous substances. Institutional
controls are almost always used in conjunction with, or as a
supplement to, other measures such as waste treatment or
containment. There are four categories of institutional
controls: governmental controls; proprietary controls;
enforcement and permit tools with institutional controls
components; and information devices (see the Environmental
Protection Agency’s Comprehensive Environmental Response,
Compensation and Liability Act policy definition). For this
Order, institutional controls are those governmental
controls such as deed notifications, easements, use
restrictions, leases and other property interests that are
inventoried as records and notes in records in the
Facilities Information Management System.
30. Land-Use Planning. A formal, integrated planning process
that is used to identify an appropriate mix of land uses at
each site and guidelines for development. [See DOE P 430.1,
Land and Facility Use Planning, dated 7-9-96 (reference o).]
31. Lead Program Secretarial Office (LPSO). A Program
Secretarial Office (PSO) that is responsible for
implementation of policy promulgated by Headquarters staff
and support organizations for a field office. The LPSO owns
the site, manages its own program projects, and acts as a
host for tenant Cognizant Secretarial Offices/PSOs by
providing facility and/or infrastructure support.
32. Life Cycle. The life of an asset from planning through
acquisition, maintenance, operation, remediation,
disposition, long-term stewardship, and disposal.
33. Life-Cycle Cost. The sum total of the direct, indirect,
recurring, nonrecurring, and other related costs incurred or
estimated to be incurred in the design, development,
production, operation, maintenance, support, and final
disposition of real property over its anticipated useful
life span.
34. Line Item Project. Those separately identified project
activities that are submitted for funding and are
specifically reviewed and approved by Congress.
35. Long-Term Stewardship. The physical controls, institutions,
information and other mechanisms needed to ensure protection
of people and the environment at sites where DOE has
completed or plans to complete cleanup (e.g., landfill
closures, remedial actions, removal actions, and facility
stabilization). This concept includes land-use controls,
monitoring, maintenance, and information management.
36. Maintenance. Day to day work that is required to sustain
property in a condition suitable for it to be used for its
designated purposes, including preventive, predictive, and
corrective maintenance. Maintenance costs and work do not
include the following.
• Regularly scheduled janitorial work such as cleaning, and
preserving facilities and equipment.
• Work performed in relocating or installing partitions,
office furniture, and other associated activities.
• Work usually associated with the removal, moving, and
placement of equipment.
• Work aimed at expanding the capacity of an asset or
otherwise upgrading it to serve needs different from or
significantly greater than those originally intended.
• Improvement work performed directly by in-house workers
or in support of construction contractors accomplishing
an improvement.
• Work performed on special projects not directly in
support of maintenance or construction.
• Nonmaintenance roads and grounds work such as grass
cutting and street sweeping.
37. Mission Essential Real Property Assets. Those facilities and
infrastructure assets that directly contribute to
accomplishment of the program assigned missions or
mitigation of environmental, safety, or health issues, which
if not available, would adversely impact the mission.
38. Non-Time-Critical Removal. This is a type of response action
recognized by the Environmental Protection Agency as
appropriate for addressing hazardous substance threats where
a planning horizon of six months or more is appropriate.
Removal responses, including non-time-critical removals, are
the subject of 40 CFR 300, National Oil and Hazardous
Substances Pollution Contingency Plan, Parts 410 and 415
(reference c). Under a signed agreement with the
Environmental Protection Agency (EPA), the Department uses a
non-time-critical removal approach tailored for DOE’s
decommissioning of contaminated facilities. That approach
comprises threat assessment; identification, analysis, and
documentation of decommissioning alternatives; opportunities
for public participation in the decommissioning decision;
and planning and performance of decommissioning activities.
Under the DOE/EPA agreement (reference x), regulator
involvement in decommissioning is determined locally.
39. Operating Facilities. Facilities that have a Facilities
Information Management System status code of operating,
operating standby, operating pending excess, operating under
out-grant, or operating pending decontamination and
demolition/disposition.
40. Optimum Period. That time in the life cycle of an asset when
maintenance actions should be accomplished to preserve and
maximize the useful life of the asset. The determination is
based on engineering/maintenance analysis and is independent
of funding availability or other resource implications.
41. Performance Measures. A quantitative or qualitative
characterization of performance toward an objective. [See
DOE G 430.1-4 (reference j).]
42. Performance Objective. A statement of the desired
output/outcome for an organization or activity. [See DOE G
430.1-4 (reference j).]
43. Plant, Property & Equipment. Tangible assets that meet the
capitalization criteria, that are not intended for sale in
the ordinary course of operations, and have been acquired or
constructed with the intention of being used, or being
available for use by the entity. Plant, property, and
equipment includes site infrastructure.
44. Predictive Maintenance. Those activities involving
continuous or periodic monitoring and diagnosis to forecast
component degradation so that “as needed” maintenance can be
scheduled.
45. Preventive Maintenance. Those periodic and planned actions
taken to maintain a piece of equipment within design
operating conditions and extend its life and performed
before equipment failure or to prevent equipment failure.
46. Prior Year (PY). The fiscal year immediately preceding the
current year and 2 fiscal years preceding the budget year.
For the field, Congressional Review, and the Office of
Management and Budget, PY is the fiscal year in which the
budget is being executed. For the Congressional cycle, the
PY is the most recently completed fiscal year.
47. Programmatic Real Property. Refers to reactors,
accelerators, and similar devices used by programmatic
personnel, acquired with line item funding, and listed in
the Facilities Information Management System as “Other
Structures and Facilities” under the 3200 series usage
codes, such as 3209, 3221, 3251 and 3261.
48. Program Secretarial Office (PSO). A senior outlay program
office which has work performed at a site, but not as the
host Lead Program Secretarial Office or Cognizant
Secretarial Office at that site, and provides annual program
direction and guidance to the site/field manager for the
work to be performed at the site, and for budgeting to
support program work and an appropriate share of their
tenant costs to the landlord.
49. Real Estate Actions. Documents and activities related to
acquisition, management, and disposal of real property
interests (e.g., easements, leases, fee title, public domain
withdrawals, mineral rights). This includes, but is not
limited to, land-use permits; land surveying; appraisals;
market surveys; acquisitions; in-granting; out-granting;
management directives; utilization surveys; encroachment;
disposal of any real estate interests; disposal of
Departmental improvements without the underlying land; and
establishment of use restrictions, easements, and similar
institutional controls.
50. Real Property Assets. Any interest in land, together with
the improvements, facilities, structures, and fixtures
located thereon, including prefabricated movable structures
and appurtenances thereto, under the control of DOE. All
real property owned by or leased to the Government or
acquired by the Government under the terms of the contract.
It includes both government-furnished property and
contractor-acquired property as defined in Federal
Acquisition Regulation 45.101. DOE-owned, -used and -
controlled land, land improvements, structures, utilities,
installed equipment, and components are included. Real
property and real estate means land and rights in land,
ground improvements, utility distribution systems, and
buildings and other structures. Real Property Assets are
defined by the Federal Property Management Regulations § 101-
47.103-12, Real Property.
51. Recapitalization. Major renovations or reconstruction
activities, including facility replacements, needed to keep
existing facilities modern and relevant in an environment of
changing standards and missions. This includes the
restoration and modernization of existing facilities but not
the acquisition of new facilities or the demolition of old
ones, unless the demolition is carried out as part of a
renovation project or in conjunction with construction of
replacement footprint elsewhere.
52. Repair. The restoration of failed or malfunctioning
equipment, system, or facility to its intended function or
design condition. Repair does not result in a significant
extension of the expected useful life.
53. Replacement Plant Value (RPV). Cost to replace the existing
structure with a new structure of comparable size using
current technology, codes, standards, and materials.
54. Site. A geographic area owned or leased by or for the
account of the Federal Government for the performance of DOE
program activities. The term includes any extant buildings,
infrastructure and other improvements.
55. Site/Field Manager. Individual responsible for planning,
programming, budgeting, and evaluation of activities in
support of Secretarial office programs located on sites
under his/her cognizance including host Lead Program
Secretarial Office (LPSO) to tenant Cognizant Secretarial
Office (CSO)/Program Secretarial Office (PSO) activities
establishing site priorities consistent with mission
objectives and goals established by DOE program offices
having line responsibility, leading site technical
direction, preparing and defending the site budget,
supporting milestones agreed to with
LPSO/CSOs/PSOs, providing public and private sector liaison,
expediting followup actions, and retaining overall
accountability for site activities in support of program
office successes.
56. Surveillance and Maintenance. Activities conducted
throughout the facility life-cycle, including providing, in
a cost effective manner, periodic inspections and
maintenance of structures, systems and equipment necessary
for the satisfactory containment of contamination, and for
the protection of workers, the public, and the environment.
57. Sustainment. Maintenance and repair activities necessary to
keep the inventory of facilities in good working order. This
includes regularly scheduled maintenance as well as
anticipated major repairs or replacement of components that
occur periodically over the expected service life of the
facilities.
58. Ten-Year Site Plan (TYSP). A planning document that
identifies the site’s annual and strategic program
requirements and priorities, and links these to real
property asset requirements. Real property asset
requirements must be consistent with program missions,
budgets, and planning estimates. Planning employs costing
efficiencies, eliminates excess buildings, consolidates
operations where practicable, and addresses mission-critical
requirements through an appropriate mix of recapitalization,
new construction, and disposal of excess facilities.
59. Total Estimated Costs (TEC). The Total Estimated Cost of a
project is the specific cost of the project including cost
of land and land rights; engineering, design, and inspection
costs; direct and indirect construction costs; and the cost
of initial equipment necessary to place the plant or
installation in operation.
60. Transfer of Facilities. Transferring programmatic and
financial responsibility of land and/or facilities from one
program office to another.
61. Utilization Justified Assets. The summation for a site of
the product of each operating facilities area, in square
feet, times its utilization rate in FIMS. For land, it is
the acreage of the site identified as fully utilized under
an E.O. 12512 survey (reference s).
62. Value Engineering (VE). An organized effort directed at
analyzing the functions of systems, equipment, facilities,
services, and supplies for the purpose of achieving the
essential functions at the lowest life-cycle cost consistent
with required performance, reliability, quality, and safety.
For purposes of this Order, value analysis, value
management, and value control are considered synonymous with
VE.
ATTACHMENT 4. ACRONYMS USED IN DOE O 430.1
ACI Asset Condition Index
AUI Asset Utilization Index
CAIS Condition Assessment Information System
CAS Condition Assessment Survey
CERCLA Comprehensive Environmental Response, Compensation, and
Liability Act
CFR Code of Federal Regulations
CRD Contractor Requirements Document
CRS Certified Realty Specialist
CSO Cognizant Secretarial Office
DOE Department of Energy
EPA Environmental Protection Agency
FAC FIMS Advisory Committee
FCI Facility Condition Index
FDDC Facilities Data Development Committee
FIMS Facilities Information Management System
FISC Facilities and Infrastructure Executive Steering
Committee
GPP General Plant Project
IGPP Institutional General Plant Project
IFI Integrated Facilities and Infrastructure
LPSO Lead Program Secretarial Office
LTS long-term stewardship
NEPA National Environmental Policy Act
NNSA National Nuclear Security Administration
OECM Office of Engineering and Construction Management
OMB Office of Management and Budget
PMA Power Marketing Administration
PPBES Planning, Programming, Budgeting, and Evaluation System
PSO Program Secretarial Office
PY prior year
RPV Replacement Plant Value
TYSP Ten-Year Site Plan
VE value engineering
ATTACHMENT 5. FACILITY ASSET MANAGEMENT TOOLS
1. FACILITIES INVENTORY SYSTEMS.
a. Facility Information Management System.
(1) The essential first step of an effective facility
management strategy begins with establishing a
detailed, centrally controlled, computerized
database of facility inventory information. DOE
has implemented the Facilities Information
Management System (FIMS) as its corporate real
property inventory database. FIMS must be
maintained as the complete and official record of
all owned and leased lands, buildings, trailers,
and other structures and facilities. The Office of
Management, Budget and Evaluation and Chief
Financial Officer, in keeping with the Secretary’s
property stewardship mandate and with the Deputy
Secretary’s approval, issued a memorandum dated
August 29, 2001, directing verification and
completion of the population of FIMS by the end of
FY 2002. This population effort results in up-to-
date reliable real property information for DOE
managers to make decisions regarding buildings,
trailers, and structures.
(2) New records and changes to the database will be
reported as follows.
(a) Energy consumption information for buildings
and trailers; deferred, required, and actual
maintenance costs; last inspection date and
deficiency system information for buildings,
trailers, and structures; and financial
adjustment information and annual rent
payments for buildings, trailers, and
structures must be reported on an annual
basis.
(b) Land, transfer, withdrawals, improvements,
and acquisition of leases, permits and
licenses, and other actions are updated when
the actions are reported and issued.
(c) Data closeout and financial reconciliation
takes place from October 1st to October 31st
of each year. Actions completed before
October 1st are only permitted for entry.
(3) The FIMS Users Guide and other documentation
contain detailed information on procedures for
data entry and system operation. The complete set
of FIMS guides is available from the FIMS Web site
at http://fims.hr.doe.gov.
(4) FIMS data program office sponsors serve as the
FIMS governing body, the Facilities Data
Development Committee (FDDC). This committee must
review recommendations for enhancements, database
element additions or deletions, and database
population.
(5) The FIMS Advisory Committee (FAC) has been
established to serve as a forum for discussing and
evaluating suggestions regarding development,
operation, or administration of FIMS. FAC reviews
are provided to the FDDC and FIMS Technical
Monitor for discussion and adoption. FAC voluntary
membership consists of Federal and site contractor
representatives.
(6) Real property data elements in the DOE Integrated
Management Navigation System (I-MANAGE), the
Condition Assessment Information System (CAIS)
database, and the Office of Environmental
Management Integrated Planning and Budgeting
System database must be consistent with the
corresponding FIMS real property data elements.
2. CONDITION ASSESSMENT SYSTEM.
a. Condition Assessment System. The second step in an
effective facility management strategy to know the
condition of your facilities and how much it will cost
to replace and repair facility systems and components.
The assessment or inspection process supports the vital
process of identifying facility conditions that are
founded on recognized, fully defined industry based
inspection and deficiency standards. An assessment
program is an essential tool in determining realistic
requirements needed to obtain budgetary funding. It
provides a picture across a site that can be used along
with mission and other prioritization criteria to
direct limited resources to crucial areas. A condition
assessment program is the basis for developing
supportable asset management projects and funding
requests.
b. Minimum Condition Assessment System Characteristics.
(1) A standardized, documented inspection process that
provides accurate, consistent, and repeatable
results.
(2) A detailed, ongoing inspection of real property
assets, including facilities; infrastructure; and
large, in-place nonprogrammatic equipment that is
validated at predetermined intervals.
(3) Standardized cost data using CAIS or another
nationally recognized cost estimating system to
determine repair and replacement costs.
(4) A user-friendly information management system or
process that prioritizes current and anticipated
maintenance and repair requirements to maximize
the utilization of resources (labor and dollar)
and return on investment and minimizes the cost of
irreversible loss of service life and total
penalty cost.
(5) A facility condition assessment program that
identifies deficiencies in order to take timely,
cost-effective corrective actions. Condition
assessments must involve inspections by craft or
engineering specialists of all architectural,
civil/structural, mechanical, and electrical
components of each asset to determine asset
deficiencies and must provide a comprehensive
evaluation that can be used to make informed
facilities management decisions.
(6) Condition assessments must provide for the
following.
(a) Inspection of all assets using applicable
codes and accepted industry standards.
(b) A tailored approach based on facility status,
mission and importance and the magnitude of
the hazards within the facility.
(c) A valid estimate of deferred maintenance
costs.
(d) A 5-year maintenance plan based on
projections of serviceability, economic life,
the mission of facilities and projected
funding for deferred maintenance reduction.
(e) Identification of safety and health hazards.
(f) Accurate and supportable information for
budget planning and justification.
(g) Comparison of conditions and costs between
sites and programs.
(h) Supportable cost estimates and funding
priorities for General Plant Project (GPP),
Institutional General Plant Project (IGPP),
line item projects, and other site funded
maintenance projects.
c. Condition Assessment Information System Database.
(1) Use the DOE CAIS database or another nationally
recognized cost estimating system to estimate
deficiency costs. (See Table 1 for minimum
characteristics.) The costs must include
contractor overhead/burden. The database or cost
estimating system must accommodate site craft,
engineering service contractor, or other data
entry. Each must (a) break out asset deferred
maintenance cost by asset components or systems,
(b) calculate a facility condition index by
system, and (c) have the ability to separate
rehabilitation and improvement costs from
deficiency costs.
(2) The condition assessment data collected will feed
FIMS.
Table 1. Characteristics of a National Cost Estimating
System
1. Costs based/adjusted to geographic locations
at DOE sites.
2. Unit costs based on maintenance, renovation
and replacement costs.
3. Unit costs cover all building systems listed
in FIMS.
4. Unit costs updated annually.
5. Costs cover all types of properties
including commercial and industrial.
6. Cost items include current technology items.
7. Costs classified by building elements in the
UNIFORMAT II formatting system. [See NISTIR
6389, UNIFORMAT II Elemental Classification
for Building Specifications, Cost
Estimating, and Cost Analysis, October 1999
(reference z).]
8. Unit costs based on national and
international benchmarks.
ATTACHMENT 6. INSTITUTIONAL GENERAL PLANT PROJECTS
1. GENERAL.
Institutional General Plant Projects (IGPPs) are
miscellaneous minor (i.e., up to $5 million) new
construction and betterment projects of a general
institutional nature benefiting multiple cost objectives
and required for general-purpose sitewide needs. IGPPs do
not include projects whose benefit can be directly
attributed to a specific or single program. Further, IGPPs
may be used at the discretion of the Lead Program
Secretarial Office (LPSO), Cognizant Secretarial Office
(CSO), or Program Secretarial Office (PSO). They result in
a renewed and revitalized infrastructure with—
• cost beneficial impact on a site’s operations;
• replacement or upgrade to a core utility, land, and
facility that is no longer reliable;
• improved productivity or efficiency in a core utility,
land, and facility; and
• enable/facilitate world-class science and technology
(e.g., attraction and retention of scientific and
technical workforce).
The following are examples of IGPPs.
• Multiprogrammatic/interdisciplinary scientific
laboratory and office space
• Institutional training facility
• Sitewide maintenance facilities and utilities
• New roads
• Multiprogrammatic facilities required for “quality of
life” improvements
2. IGPP CRITERIA.
The following criteria apply to IGPPs.
• IGPP requirements are identified in the Ten-Year Site
Plan (TYSP) and approved by the LPSO.
• IGPP resource requirements must be identified in the
Integrated Facilities and Infrastructure Crosscut
Budget.
• IGPPs are not intended for use in incremental segments
to construct larger facilities including, for example,
segmentation of a parking lot or utility system from
the main structure it is designed to support or
segmenting a single facility
into separate segments located within close proximity
to each other. Each IGPP must provide a complete and
usable facility to satisfy mission need at the site. As
part of each IGPP, the DOE field/area office manager
must personally certify that the project is not part of
an incremental segment such that the total would exceed
the current authorized ceiling of $5 million. This
certification must be provided to the Headquarters
program office before the start of each project and
made a part of each project file.
• The program will have the contractor chief financial
officer or comptroller certify that—
— Indirect funds will not be utilized for IGPP at the
expense of maintenance or any other essential
facilities program.
— Impacts to the indirect budgets will be carefully
considered in the authorization of IGPP projects to
ensure that funding for other critical overhead
activities is not adversely impacted while ensuring
relative stability for overall indirect rates
between fiscal years.
• IGPPs are consistent with DOE’s existing threshold and
capitalization criteria and the GPP definition
contained in the DOE Accounting Handbook. A cost
collection and distribution mechanism must be used to
ensure there is adequate tracking and accountability
for IGPPs from inception to the recording of an asset.
• Accounting for IGPP must be in compliance with the
following cost accounting standards:
— Cost Accounting Standard 401, Consistency in
Estimating, Accumulating, and Reporting Costs;
— Cost Accounting Standard 402, Consistency in
Allocating Costs Incurred for the Same Purpose;
— Cost Accounting Standard 409, Depreciation of
Tangible Capital Assets; and
— Cost Accounting Standard 418, Allocation of Direct
and Indirect Costs.
The contractor must clearly identify in its Disclosure
Statement those costs that must be IGPP funded and
ensure such funding is consistently applied for all
such costs that are incurred for the same purpose and
in like circumstances. In those instances where there
are similar types of costs which are sometimes
accounted for as direct and sometimes accounted for as
indirect, the contractor must set forth in the
Disclosure Statement the specific criteria and
circumstances for making such distinctions.
U.S. Department of Energy PAGE CHANGE
Washington, D.C. DOE O 430.1B CHG 1
Approved: 2-8-08
SUBJECT: REAL PROPERTY ASSET MANAGEMENT
1. PURPOSE. To transmit page change for DOE O 430.1B.
2. EXPLANATION OF CHANGES. The change amends the overhead
funding requirement for institutional general plant
projects.
3. LOCATION OF CHANGE.
Attachment 6, page 2
BY ORDER OF THE SECRETARY OF ENERGY:
CLAY SELL
Deputy Secretary