In May 2017 Congress directed GAO to assess how ISO 55000 – Asset Management System standards could be used to improve the management of federal real property. A little more than a year later, GAO-19-57: Federal Real Property Asset Management – Agencies Could Benefit from Additional Information on Leading Practices was released.
To complete this study, GAO performed extensive research to include interviewing 22 asset management experts from around the world to include Definitive Logic’s Jack Dempsey. This report investigated:
- “key characteristics of an effective asset management framework and how selected federal agencies’ frameworks reflect these characteristics;
- views of selected asset management experts and practitioners on challenges and benefits to implementing an asset management framework; and
- whether government-wide asset management guidance and information reflect standards and key characteristics of an effective asset management framework.”
In their report, GAO’s conclusion states:
“because existing federal asset management guidance does not fully reflect standards and the key characteristics, such as, directing agencies to develop a comprehensive approach to asset management that incorporates strategic planning, capital planning, and operations, federal agencies may not have the knowledge needed to maximize the value of their limited resources.”
GAO goes on to make a single recommendation that begins:
“The Director of OMB should take steps to improve existing information on federal asset management to reflect leading practices such as those described in ISO 55000 and the key characteristics we identified and make it readily available to federal agencies.”
Evidence of OMB taking heed of this recommendation is evident in OMB’s M-20-03: Implementation of Agency-wide Real Property Capital Planning released November 6th, 2019. This memo makes a significant step forward to employing policy promoting disciplined asset management system thinking, such as that described in ISO 55000. Specifically, this memo requires federal agencies critically evaluate their real property capital planning process to ensure it supports objectives defined in the Agency’s Strategic Plan in both words and deeds.
Definitive Logic supports OMB’s efforts to improve federal agency real property capital planning capabilities. Definitive Logic also agrees with GAO-19-57 findings that more is possible for federal agencies to be efficient and effective managing their real property and real estate portfolios. In this area, Definitive Logic is expert and highly experienced developing and implementing IT-enabled asset management systems to meet these needs. We believe the answers and solutions to these challenges need not be daunting, if approached in an expert way leveraging the good in the organization’s existing systems, policies, and standard operating procedures.
Please contact us if you are interested in learning more about how Definitive Logic has successfully helped other organizations use disciplined asset management to overcome these and many similar challenges.