Real Property, Facilities and Logistics Moving Forward to Become the NOAA Provider of Choice

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Real Property, Facilities and LogisticsMoving
Forward to Become the NOAA Provider of Choice

• Stella Fiotes
• Presentation to RPMD Conference
• March 2006

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First RPFLO Facilities Conference on March 7-9,
2006

• RPFLO is a new entity, established from several
  separate organizations geographically spread out,
  functionally diverse with many relatively new
  managers and staff
• Presents challenges for finding common themes and
  ways to move forward
• Purpose of conference
• Opportunity for managers to meet and recognize
  partners across divisions and regions
• Talk about business processes and how to operate
  more effectively as a single entity
• Develop RPFLO mission, vision, and values
  statements
• Identify key performance measures for improving
  program performance
• Begin planning for operations under the RPFLO
  Facilities Business Model, the new IT systems
  architecture, and the PPBES framework

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Mission, Vision and Values

• Used vision, mission and core values from NOAA
  2006-2011 Strategic Plan as a framework for RFPLO
  MVV
• Vision An informed society that uses a
  comprehensive understanding of the role of the
  oceans, coasts and atmosphere in the global
  ecosystem to make the best social and economic
  decisions

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RPFLO Mission

• Advance NOAAs mission by providing exceptional
  facilities and logistical services

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RPFLO Vision

• Our customers seek us out because they value us
  as a trusted partner who consistently delivers
  skilled, integrated services and facilities that
  provide the best value over the life cycle of
  NOAAs assets

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RPFLO Core Values

• Employees
• Customers
• Accountability
• Communication
• Partnerships
• Success

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RPFLO Performance Measures

• In general, we want to focus on four areas
• Quantity How much did we do?
• Quality How well did we do it?
• Effort How hard did we try?
• Effect Is anyone better off?
• Boiled down to basics, this means
• Who are our customers?
• How can we measure if they are better off?
• How can we measure if we are delivering service
  well?

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RPFLO Headline Performance Measures

• Percent of NOAA facilities completing an annual
  facility condition assessment
• Percent of major construction projects on time
  and on budget
• Percent of complete personal property records
  processed within 10 calendar days of receipt
• Percent positive responses on the customer
  satisfaction survey
• Percent of employees that respond positively to
  the statement I feel empowered to contribute up
  to my potential to the team

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• NOAAs Facility Management Program
• Business Model
• Plan for Compliance with E.O. 13327
• Federal Real Property Asset Management

Executive Order 13327 (Federal Real Property
Asset Management) requires Federal agencies to
implement agency asset management plans and
monitor real property performance.
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Overview

• Business model for NOAA facilities program
  approved by NOAA Executive Panel on February 17,
  2006
• Promotes effective management of the NOAA
  facilities program and compliance with E.O.
  13327.
• Provides framework for PPBES FY 09-13 process
  (and beyond).
• Optimizes investments made in strengthening
  NOAAs facility program.

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The Portfolio in Numbers

• NOAA Facility Portfolio Owned and Leased

Total 824 Leased 382 Owned 442
Total 721 Leased 655 Owned 66
Buildings
Structures
Land
Total 1,477 Leased 1,306 Owned 171
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The Portfolio in Dollars

• NOAA has over 800 different facilities (i.e.,
  owned and leased buildings), with a current
  replacement value (CRV) of nearly 4 billion.

NOTE While the average age of NOAA-owned
facilities is 26 years, we have a number of
facilities approaching the end of their useful
life, with more than 8 percent of our occupied
facilities over 60 years old.
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Facility Program Requirement

• Inadequate funding of facility program leads to
  increased safety and operational risks, overall
  risk of operational failure, and increased costs
  downstream.
• Average facility condition index (FCI) falls in
  Unacceptable range (FCItotal cost of defined
  deficiencies/current facility replacement value)

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Facility Modernization Initiative Framework
Strategic Plan Performance Objectives
Strategies/Initiatives
STRATEGIC
Increase Number of Facilities with Improved
Co-Location of NOAA Services and Partners.
Regionalization?
Active Consolidation
Consolidation Opportunities
FacilityCondition/Disposal Decisions
TACTICAL
Recapitalization/Replacement
Improve Safety and Other Condition Indices for
Facilities.
Restoration
Sustainment
Management Infrastructure
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The Facilities Business Model

• Management Infrastructure Organizational
  resources and governance policies, processes,
  transactional and informational databases, and
  performance measurement systems to plan and
  manage the NOAA real property portfolio. -
  Corporate
• Sustainment Required maintenance and repairs.
  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. Also
  includes required investments in security
  measures, based on security/threat assessments.
  LOs/Programs and Corporate for WRC/PRC
• Restoration Repair and replacement work
  (minor projects under prospectus
  levelpresently 2.4M) to fix facilities damaged
  by inadequate sustainment, excessive age, natural
  disasters, fires, accidents, or other causes.
  Excludes facility replacement/ recapitalization
  projects (major projects 2.4M). LOs/Programs
  with Corporate guidance/execution as provider of
  choice
• Recapitalization/Replacement Major (2.4M)
  renovation, reconstruction or modernization
  activities, including replacement of individual
  facilities, necessary to keep an existing
  inventory of facilities modern and relevant in an
  environment of changing standards and missions.
  Includes both restoration (major) activities and
  modernization activities to accommodate new and
  expanded mission requirements/functions.
  LOs/Programs with Corporate guidance/execution
• Consolidation/Regionalization Major
  construction/development activities designed to
  consolidate currently dispersed NOAA owned or
  leased facilities into a smaller number of
  consolidated/collocated facilities. - Corporate

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Business Model Output

• Facility business model effectively supports NOAA
  strategic plan objectives
• Improve Safety and Other Condition Indices for
  Facilities.
• Increase Number of Facilities with Improved
  Co-Location of NOAA Services and Partners.
• Clear accountability for management and
  investments in sustainment, restoration, and
  recapitalization of NOAA facilities.
• Optimizes existing investments in strengthening
  NOAAs facility program.
• Clear facility program guidance for FY 09-13
  PPBES process.

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Facilities Modernization Plan

• NOAA is engaged in a multi-year facility
  investment planning process designed to identify
  and prioritize NOAAs facility modernization
  needs.
• A multi-year investment strategy will be required
  to address facility requirements
• Replace aging (reaching the end of their useful
  life) or at-risk facilities
• Accommodate program growth
• Other High Priority Investments, e.g.,
  Consolidation/ Regionalization
• NAO 217-104 requires major facility investment
  proposals to be assessed against the following
  selection criteria
• Alignment with and support of NOAAs Mission and
  Strategic Plan Objectives
• Positive return-on-investment (qualitative/quantit
  ative benefits at acceptable risks within
  acceptable timeframes) and
• Risk assessment (at an acceptable level of risk).
• First in annual assessment of funding priorities
  and recommendations to Facilities Investment
  Management Board (NEP as FIMB).

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Background

• OCAO call letter in February 2005 resulted in 61
  investment proposals totaling over 700M.
• Investment proposals reviewed by Facilities
  Committee and final recommendations developed by
  OCAO.
• Objective Investment Portfolio with balance
  between ongoing sustainment costs, annual costs
  to repair facilities (restoration),
  replacement/recapitalization of aging/outgrown
  facilities, and selected strategic
  consolidation/collocation projects.
• Annual process to review and validate facility
  investment priorities Rolling 5 Year
  Investment Plan

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Conceptual underpinnings of proposed investment
strategy

• Establish NOAA facility modernization funding
  stream that is relatively consistent from year to
  year.
• Annual investment planning process focuses on
• Investment categories within overall funding
  stream
• Specific projects within investment categories
• Approach spans planning, programming, and
  execution phases.
• Scalable to overall funding level.

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Principles underlying investment recommendations

• Complete funding for major projects already
  initiated
• National Center for Weather Climate Prediction
• Pacific Region Center project.
• Pascagoula Lab Replacement (if necessary)
• National Data Buoy Center enhancement (if
  necessary)
• Fund priority investments identified for FY 2008
  (Priority One)
• La Jolla
• Woods Hole Dredging and Pier Construction
• Fairbanks Satellite Operations Facility

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Facilities Modernization Plan
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Six-Year Modernization Plan Facility Investment
_at_ 3 of NOAA Budget

• PROS
• Provides balanced investment portfolio
• Strategic vs. Tactical
• Within Tactical Restoration vs. Recapitalization
• Funds highest priority facility projects
• Provides funding stream for future modernization
  projects
• Approach is scalable based on actual
  appropriation
• Continues current WFO and NMSP modernization
  initiatives
• Establishes ongoing funding stream for fleet and
  aircraft facilities
• Completes current modernization plans by FY 2013
• CONS
• Funding levels may be difficult to achieve in
  constrained budget environment
• Will require requisite investments in project
  management

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RPFLO Next Steps

• Develop crosswalk between old terminology and new
  business process terminology and data
• as is compared with to be
• Create a RPFLO roadmap of PPBES process
• Communicate RPFLO Mission, Vision, Values and
  Headline Measures to RPFLO employees and the NOAA
  public
• Actively engage in the FY2009 PPBES cycle
• Start super staff meetings to engage more
  management and supervisory staff in this process
• Challenges Resources, esp. staffing getting the
  message to our customers getting their buy-in
  and business