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TREASURY DIRECTIVE 72-02

 
DATE:  September 24, 2009
 
SUBJECT:  Acquisition, Utilization, Management and Disposal of Treasury Real Property Assets
 
1.      PURPOSE.  This directive establishes policy and responsibility for the acquisition, utilization, management, and disposal of Treasury real property assets.
 
2.      SCOPE.  This directive applies to all bureaus, offices, and organizations in the Department of the Treasury, including the offices of inspectors general within the Department.  The provisions of this directive shall not be construed to interfere with or impede the authorities or independence of the Department�s inspectors general.
 
3.      POLICY.  It is the policy of the Department of the Treasury that:
 
a.       Real property and interests therein shall be acquired in accordance with applicable authorities, only as necessary and no longer than necessary, to carry out effective mission and program operations.  Property prices or lease rates, as well as costs of moving/occupancy, efficiency of operations, regional planning, employee morale factors, maximum use of Treasury policy regarding public transportation, telework and alternative workspace arrangements, and criteria that support sustainable design and high performance building requirements should be considered in making these determinations;
 
b.      Real property holdings under Treasury control are fully utilized and put to optimum use.  Systematic, thorough reviews of real property holdings shall be conducted at least annually to categorize and identify property which is not needed, is underutilized, or is not being put to its optimal use.  Real property identified as not needed shall be promptly reported and released in accordance with the policies established by the Office of Management and Budget (OMB), the General Services Administration (GSA) and Department of Treasury regulations; and
 
c.       Management of Treasury real property shall be consistent with Executive Order (EO) 13327 (Federal Real Property Management), the Federal Management Regulations (FMR), General Services Administration (GSA) requirements, �Guiding Principles for Asset Management� established by the Federal Real Property Council (FRPC) and the FRPC and Treasury Strategic and Asset Management Plans.
 
4.      DEFINITIONS.  The following terms used in this directive are defined below:
 
a.       Acquisition is the process by which Treasury obtains custody of and interest in real property by means of transfer, purchase, construction, lease or permit for its own use in carrying out established agency mission(s).
 
b.      Deferred Maintenance is 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.  (See: Applicable Statement of Federal Financial Accounting Standards, SFFAS 14, Amendments to Deferred Maintenance Reporting Amending, SFFAS 6, Accounting for Property, Plant and Equipment and SFFAS 8, Supplementary Stewardship Reporting.)
 
c.       Delegation of Authority is authority delegated to the Secretary of the Treasury from the Administrator of General Services to acquire real property by lease or construction.
 
d.      Disposal is the process by which Treasury releases custody of or interests in real property no longer needed for its use.
 
e.       Federal Real Property Profile (FRPP) is a centralized database � developed in response to EO 13327 and consistent with the FRPC�s requirements � that maintains data collected on Federal real property (real property) holdings, both owned and leased.  A summary report on these data is published annually by the GSA.
 
f.       Life Cycle Cost is the total cost of owning, operating, and maintaining a building over its useful life, including its fuel and energy costs, determined on the basis of a systematic evaluation and comparison of alternative building systems; except that in the case of leased buildings, the life cycle cost shall be calculated over the effective remaining term of the lease.
 
g.      Management is the safeguarding of the Government�s interest in property, in an efficient and economical manner consistent with the best business practices and OMB Circular No. A-123 on Management Accountability and Control.
 
h.      Not Being Put To Optimum Use is an entire property or portion thereof, with or without improvements, which:
 
1)   even though used for current program purposes, the nature, value, or location of the property is such that it could be utilized for a different and significantly higher and better purpose; or
 
2)   the costs of occupying are substantially higher than other suitable properties that could be made available through transfer, purchase, or lease with total net savings to the Government, after considering, e.g. property values, costs of moving/occupancy, operational efficiency, environmental effects, regional planning, and employee morale.
 
i.    Not utilized is an entire property or portion thereof, with or without improvements, not occupied for current program purposes of Treasury or occupied in caretaker status only.
 
j.    Real Property is any real property owned, leased, or otherwise managed by the Federal Government, both within and outside the United States, and improvements on Federal lands.
 
k.   Underutilized is an entire property or portion thereof with or without improvements, which is used:
 
1)   irregularly or intermittently by Treasury for current program purposes; or
 
2)   for current program purposes that can be satisfied with only a portion of the property.
 
l.    Utilization is the manner and degree of efficiency with which real property controlled by Treasury is used in the accomplishment of its mission(s).
 
5.      BACKGROUND. 
 
a.   Executive Order (EO) 12411, �Government Work Space Management Reforms,� dated March 29, 1983, recognized the importance of reducing the amount and cost of Federal work space, while ensuring that work space is effectively used to support missions. 
 
b.   On February 4, 2004, the President signed EO 13327, �Federal Real Property Asset Management� and subsequently added real property to the President�s Management Agenda. Guiding principles to help Federal agencies manage and improve real property performance effectively in support of EO 13327 are set forth by GSA FMR Bulletin 2008-B5 (Real Property Asset Management Guiding Principles).  EO 13327 promotes the efficient and economical use of the Federal Government�s real property assets and a right-sized inventory of real property by:
 
1)   establishing the role of Senior Real Property Officer (SRPO) in every executive branch agency to manage and oversee asset management activities; and
 
2)   establishing the FRPC, chaired by the Office of Management and Budget, to develop guidance, collect best practices and help SRPOs improve the management of real property assets. 
 
c.   GSA FMR Bulletin 2008-Bl (Delegation of Lease Acquisition Authority-Notification, Usage, and Reporting Requirements for General Purpose, Categorical, and Special Purpose Space Delegations) sets forth requirements for the use of GSA delegated leasing authority and responsibility of the agency SRPO for coordinating accountability for all leasing activities.
 
d.   EO 13423, �Strengthening Federal Environmental, Energy, and Transportation Management� of January 24, 2007, sets goals in areas, such as energy efficiency, acquisition, and renewable energy, as well as high performance and sustainable buildings goals and requirements.  Treasury implementation of the EO 13423 sustainability requirements are set forth by the Department of the Treasury Sustainable Buildings Program and Implementation Plan, agency progress for which is reported semi-annually on the OMB Environmental Stewardship Scorecard. 
 
 
6.   RESPONSIBILITIES.
 
a.       The Assistant Secretary for Management and Chief Financial Officer (ASM/CFO) has Department wide responsibility for acquisition, utilization, management, and disposal of Treasury real property consistent with authority delegated to the ASM/CFO under Treasury Order 101-05, including approval of bureau proposals to acquire an ownership interest in or to dispose of Treasury-owned real property, re-delegation of GSA Delegations of Authority and making, to the extent permitted by law, any determinations and findings required by statute or regulation to be made by the Head of the Agency with respect to real property matters.
 
b.      The Deputy Chief Financial Officer (DCFO) shall ensure bureau compliance with Federal regulatory requirements and the proper exercise of Secretarial delegations of real property authority, and designate an employee at a suitably high level in the organization who has the necessary education, training and experience to serve as the SRPO for the Department as required by EO 13327.  The DCFO shall also prescribe appropriate financial management and accounting guidance, principles, standards and reporting requirements for Treasury real property assets.
 
c.       Heads of Bureaus, the Deputy Assistant Secretary for Departmental Offices Operations (for Departmental Offices), and the offices of inspectors general within the Department, shall, with respect to those bureaus and offices which they supervise, exercise leadership to assure that acquisition, utilization, management, and disposition of real property conform to GSA, OMB and Departmental policies and requirements.
 
1)   designate an employee at a suitably high level in the organization who has the necessary training and experience to serve as the Bureau Real Property Officer (BRPO) to represent and exercise bureau decision-making authority with respect to Departmental real property asset management planning and program compliance matters;
 
2)   establish bureau-level policies, procedures and systems of accountability to ensure effective planning, use, management (e.g. economy and efficiency) and disposal of real property assets in support of mission-related activities, such as:
 
a)   establish annual real property management improvement goals and plans consistent with FRPC guidance as amplified by the Treasury Asset Management Plan;
 
b)   survey real property holdings at least annually to categorize and identify property and space that is not needed, is underutilized, or is not being put to optimal use.  Provide, upon request, records of annual surveys, and cost and operational information, to the SRPO to facilitate periodic reviews/evaluations and for making cyclical and/or periodic reports to OMB, GSA, Congress, and other agencies, as required;
c)   report promptly real property identified as not needed to the DCFO, through the SRPO, for disposition in accordance with OMB, GSA and Departmental guidance; and
 
d)   submit proposals (including those requiring a delegation of authority from GSA) to acquire an ownership interest in or to dispose of Treasury-owned real property to the DCFO through the Director, OAM/SRPO for review and approval.
 
3)      ensure real property acquisitions are consistent with OMB Circular No. A-1l (Planning, Budgeting, Acquisition, and Management of Capital Assets) and Treasury Office of Performance Budgeting Supplemental Guidance for Non-Information Technology (Non-IT) Capital Investments (e.g. conduct a Total Life Cycle Cost Analysis) and ensure compliance with the budget scorekeeping rules for leases, capital leases, and lease-purchases identified in appendices A and B of OMB Circular A- 11;
 
4)      provide listing and description of bureau real property assets, as required, to the GSA Federal Real Property Profile (FRPP) - Internet Application on an annual basis and other information OMB or GSA may request for inclusion in the Government-wide listing of all real property assets;
 
5)      maintain the capability to provide real property related data (e.g. property location, address, emergency contact information for the facility, # of occupants, # of floors occupied, etc.) as requested for purposes of emergency incident reporting, impact assessment, and agency-level action response/continuity of operations support;
 
a)   make the provisions of any contract with private sector real property services providers conform to the policies in parts 102-71 through 102-82 of the FMR, and this directive.
 
b)   include criteria encouraging lease provisions that support sustainable design and development, energy efficiency, and verification of building performance requirements set forth by EO 13423, �Strengthening Federal Environmental, Energy, and Transportation Management.�
 
d.   Director, Office of Asset Management (OAM) and Senior Real Property Officer (SRPO) shall be responsible, on an ongoing basis, for monitoring to ensure that real property assets are managed consistent with GSA and FRPC guidance.  The Director OAM/SRPO shall also perform responsibilities set forth by EO 13327, including:
 
1)   serve as the Department�s representative on the FRPC, and to OMB and GSA, and work with other agencies as necessary to resolve real property issues impacting Departmental mission performance;
 
2)   coordinate the development, implementation, and update of the Treasury Real Property Asset Management Plan, to include planning and management of historic property under Treasury Directive  (TD) 75-01 (Department of the Treasury Historic Preservation Program), completion of OAM responsibilities required by TD 75-09 (Environmental Management and Sustainability Program) and EO 13423 associated performance goals, measures and requirements; and ensure alignment with the Treasury Sustainable Buildings, FRPC and Treasury strategic plans;  
 
3)   provide corporate Real Property Asset Management Program policy, planning and oversight for improved management of real property assets consistent with known agency missions and program goals;
 
4)   coordinate submission of OMB Non-IT Budget Exhibits and requirements for Non-IT Capital Investment Planning within the Capital Planning Investment Control (CPIC) process consistent with OMB Circular No. A-1l, Office of Performance Budgeting instructions, and Project Manager Certification Program guidance set forth by the Senior Procurement Executive (pursuant to Reference j); 
 
5)   coordinate bureau requests for (a) delegation of GSA Delegated Leasing and Building Operation and Maintenance Authorities and (b) other real property matters, such as Rural Development Act approval requests, and provide recommendations for approval or disapproval to the ASM/CFO and DCFO.  Submit approved bureau proposals requiring a delegation of authority to GSA, as required;
 
6)   collect from bureaus and maintain a comprehensive inventory of Treasury real property holdings, conduct periodic utilization surveys to identify properties which are underutilized or not being put to optimum use, and provide for effective real property asset portfolio performance analysis, management decision-making, and agency compliance reporting; 
 
7)   ensure that appropriate Departmental procedures, reviews, and reporting requirements are developed and maintained in accordance with applicable OMB and GSA regulations and Treasury directives pertaining to acquisition, utilization, management, and disposal of real property;
 
8)   review bureau proposals to acquire an ownership interest in or to dispose of Treasury-owned real property for consistency with the Treasury Strategic and Asset Management Plans and compliance with applicable laws, regulations and other directives.  Proposals shall be coordinated at the Departmental level and comments incorporated in an overall evaluation and recommendation to the ASM/CFO through the DCFO.  Coordination and consultation shall be made with the following officials, and others, as appropriate:
 
a)   Bureau Asset Management Directors and BRPOs;
 
b)   Director, Office of Performance Budgeting;
 
c)   Treasury Senior Procurement Executive; and
 
d)   Director, Office of Security; and
 
9)   provide reports pertaining to Treasury real property acquisitions, utilization, management and disposals to OMB, GSA, and the Congress, as required.
 
7.   IMPLEMENTATION.
 
a.   Bureaus with GSA Delegated Leasing Authority:  Exercise authority and functions consistent with the specific parameters, conditions, procedures, and performance reporting requirements described in each Treasury re-delegation of authority document, as well as:
 
1)   fulfill needs for real property, so far as practicable, by utilization of real property determined excess by other agencies, pursuant to the provision of the FMR Bulletin 2008-B1, before a purchase or lease of nonfederal real property;
 
2)   maintain the capacity to support all delegated leasing activities, including a warranted realty contracting officer, legal review by bureau counsel, construction and inspection management, cost estimation, lease management and administration, and program oversight as required by GSA (i.e. GSA Acquisition Manual) and the Treasury Senior Procurement Executive;
 
3)   establish performance measures addressing the cost, value, and efficiency of all acquisitions, within the scope of the overall Treasury Asset Management Plan, and apply these measures consistent with the use of Performance-Based Management Systems and the Major Acquisitions Program within the Department; and
 
4)   when entering into leases, including, where feasible, the renegotiation or extension of existing leases:
 
a)      make the provisions of any contract with private sector real property services providers conform to the policies in parts 102-71 through 102-82 of the FMR, and, to the extent consistent to effective mission performance; and
 
b)      include criteria that support sustainable design and development, energy efficiency, and verification of building performance requirements set forth by EO 13423, �Strengthening Federal Environmental, Energy, and Transportation Management.�
 
b.   Bureaus with GSA Delegated Building Management, Operations and Maintenance Authority:
 
1)   ensure the incorporation of sustainable building principles into GSA-delegated building operations and maintenance agreements; and
 
2)   manage, operate, and maintain those properties in a manner consistent with the authority and parameters described in each GSA delegation of authority document.
 
c.   Bureaus with Custody of Treasury-Owned Real Property Assets: 
 
1)   maintain data required by appropriate accounting principles, standards and requirements (e.g. for determining property values, depreciation, amortization and depletion of capitalized property, deferred maintenance and condition reporting) prescribed by the DCFO Office of Accounting and Internal Control (OAIC) and the applicable Statement of Federal Financial Accounting Standards (SFFAS);
 
2)   report �deferred maintenance� in accordance with DCFO Accounting Policy Memorandum APM � OAIC-08-01 (Deferred Maintenance) of October 14,  2008, for the Department of the Treasury Annual Performance and Accountability Report; and
 
3)   provide the appropriate levels of investment to ensure safe, secure and healthy workplaces.
 
8.   REFERENCES.
 
a.       Treasury Order 101-05, �Reporting Relationships and Supervision of Officials, Offices and Bureaus, and Delegation of Certain Authority in the Department of the Treasury.�
 
b.      Treasury Order 101-30, �Designation of �Head of Agency� for Procurement Matters.�
 
c.       TD 75-01, �Department of the Treasury Historic Preservation Program.�
 
d.      TD 75-02, �Department of the Treasury Environmental Quality Program.�
 
e.       TD 72-03, �Location of New Offices and Facilities in Rural Areas.�
 
f.       TD 75-09, �Environmental Management and Sustainability Program.�
 
g.      Office of Management and Budget (OMB) Circular No. A-1l (Part 7, Planning, Budgeting, Acquisition, and Management of Capital Assets) (Capital Lease Scoring) and Treasury Office of Performance Budgeting Supplemental Guidance for Non-Information Technology (Non-IT) Capital Investments.
 
h.      General Services Administration Acquisition Manual (GSAM) (including the GSA Acquisition Regulation (48 CFR Chapter 5).
 
i.        Director, Office of Accounting and Internal Control, Memorandum of October 14, 2008, Subject: Accounting Policy Memorandum APM � OAIC-08-01 Financial Statements � Deferred Maintenance.
 
j.    Office of Federal Procurement Policy (OFPP) Policy Letter 05-01, Developing and Managing the Acquisition Workforce (The Federal Acquisition Certification for Program and Project Managers (FAC-P/PM).
 
k.   GSA�s �Guiding Principles for Asset Management� established by the Federal Real Property Council (FRPC).
 
l.    Treasury Strategic and Asset Management Plans.
 
9.   AUTHORITIES.
 
a.   Federal Property and Administrative Services Act of 1949, 41 USC 251 et seq.
 
b.   41 Code of Federal Regulations (Public Contracts and Property Management), Chapter 101 (Federal Property Management Regulations) and Chapter 102 (Federal Management Regulations), parts 71 through 85.
 
c.   EO 12411, �Government Work Space Management Reforms,� dated March 29, 1983.
 
d.   EO 10272, �Federal Space Management,� dated August 16, 1978.
 
e.   EO 13006, �Locating Federal Facilities on Historic Properties in Our Nation�s Central Cities,� dated May 21, 1996.
 
f.    EO 13327, �Federal Real Property Asset Management,� dated February 4, 2004.
 
g.   EO 13423, �Strengthening Federal Environmental, Energy, and Transportation Management,� dated January 24, 2007.
 
h.   GSA FMR Bulletin 2008-B1, Delegation of Lease Acquisition Authority--Notification, Usage, and Reporting Requirements for General Purpose, Categorical, and Special Purpose Space Delegations, effective November 19, 2007.
 
i.    GSA FMR Bulletin 2008-B5, Real Property Asset Management Guiding Principles, effective August 8, 2008. 
 
10. CANCELLATION.  Treasury Directive (TD) 72-02, �Acquisition, Utilization and Disposal of Treasury Real Property,� dated January 16, 1992, is superseded.
 
11. OFFICES OF PRIMARY INTEREST.  Office of Asset Management, Office of the Deputy Chief Financial Officer, and the Office of the Assistant Secretary for Management and Chief Financial Officer.
 
 
/S/
Dan Tangherlini
Assistant Secretary for Management
and Chief Financial Officer
 
 
Last Updated: 11/4/2010 10:00 PM
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