Investments in Federal Facilities: Asset Management by National Research Council, Division on Engineering and

By National Research Council, Division on Engineering and Physical Sciences, Board on Infrastructure and the Constructed Environment, Committee on Business Strategies for Public Capital Investment

Amenities now owned through the government are worth over $300 billion. It additionally spends over $25 billion consistent with 12 months for acquisition, upkeep, and maintenance. regardless of the scale of those sums, there's a growing to be litany of issues of federal amenities that maintains to place a drain at the federal funds and compromise the effectiveness of federal companies. to check how one can deal with those difficulties, the sponsoring firms of the Federal amenities Council (FFC) requested the nationwide learn Council (NRC) to advance guidance for making enhanced judgements approximately funding in and renewal, upkeep, and alternative of federal amenities. This document offers the results of that overview. It offers a overview of either private and non-private practices used to aid such choice making, and identifies acceptable targets, practices, and function measures. The record offers a chain of thoughts designed to help federal corporations and departments enhance administration of and funding choice making for his or her amenities.

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Program- or network-level management is associated with a systemwide approach that involves structured decision-making practices, including the analysis of trade-offs to identify and execute the best investments for a portfolio of facilities. Such management involves a macroscopic view of the assets being managed and makes use of aggregated data. 3). The importance of a facilities asset management approach is that it allows organizations to integrate facilities considerations into corporate decision making and strategic planning processes.

Buildings, equipment, patent rights) are longterm and are amortized over a period of years, as determined by tax regulations (Groppelli and Nikbakht, 2000). Budgets for both types of expenditures are linked by an overall management plan. Private-sector organizations make decisions about capital expenditures separately from decisions about operating expenditures. Capital spending decisions are made based primarily on how they affect shareholders and are evaluated predominately in monetary terms (PCSCB, 1999).

24 INVESTMENTS IN FEDERAL FACILITIES Typically, change occurs slowly, except perhaps in isolated cases during crisis situations. The system of checks and balances guards against constant or rapid change and upheaval in the delivery of public goods and services. Consensus building to make a change can take years and span several election cycles because of the many vested interests involved—elected leaders, Congressional committees, agency staff, contractors who work for the government, and the public.

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