Federal Real Property Management: Answers to Hearing Questions Page: 3 of 16
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Enclosure
Answers to Questions Regarding
Federal Real Property Management
1(a). As a rule, would GAO advocate a more uniform management of government
owned real property?
Yes. As we and others have reported,1 despite some recent progress on the issue, the federal
government lacks a uniform approach toward the management of its capital assets.
Moreover, the capital decisionmaking and planning that does take place often is not done in a
systematic manner as part of the organization's larger strategic planning process.
In July 1997, the Office of Management and Budget (OMB) issued the Capital Programming
Guide-a supplement to OMB Circular A-11-which provides detailed guidance to federal
agencies on planning, budgeting, acquisition, and management of capital assets. This
guidance ranges from information on linking capital decisions to strategic goals and
objectives, to analyzing and ranking potential investments, to making informed decisions
based on the full cost and risk of a project. We participated in the development of the Capital
Programming Guide and conducted extensive research to identify leading practices in capital
decisionmaking used by state and local governments and private sector organizations. We
provided OMB with examples for inclusion in the second version of the Capital Programming
Guide and produced an Executive Guide summarizing 12 fundamental practices that have
been successfully implemented by organizations recognized for their outstanding capital
decisionmaking practices.2
The framework set out in our Executive Guide consists of a systematic approach to capital
decisionmaking and management that could be effectively applied in agencies throughout the
federal government. The framework contains the following 5 general principles and 12
associated practices that leading state, municipal, and private organizations have used to
make capital investment decisions:
1 See, for example, VA Healthcare: Capital Asset Planning and Budgeting Needs Improvement (GAO/T-HEHS-99-83, Mar. 10,
1999); Stewardship of Federal Facilities: A Proactive Strategy for Managing the Nation's Public Assets, National Research
Council, Oct. 1998; National Park Service: Efforts to Identify and Manage the Maintenance Backlog (GAO/RCED-98-143, May 14,
1998); Portfolio Investment Initiative Pilot Program, General Services Administration, Apr. 1998; Deferred Maintenance
Reporting: Challenges to Implementation (GAO/AIMD-98-42, Jan. 30, 1998); Governmentwide Review of Real Property Disposal
Policy, General Services Administration, Aug. 15, 1997; Deferred Maintenance: Reporting Requirements and Identified Issues
(GAO/AIMD-97-103R, May 23, 1997); Defense Infrastructure: Demolition of Unneeded Buildings Can Help Avoid Operating Costs
(GAO/NSIAD-97-125, May 13, 1997); Committing to the Cost of Ownership: Maintenance and Repair of Public Buildings, National
Research Council, 1990.
2 Executive Guide: Leading Practices in Capital Decisionmaking (GAO/AIMD-99-32, Dec. 1998).GAO/GGD-99-130R Federal Real Property Management
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United States. General Accounting Office. Federal Real Property Management: Answers to Hearing Questions, text, July 1, 1999; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc298335/m1/3/: accessed April 25, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.