Real Property:The Federal Government will manage real property effectively to generate $3 billion in cost savings by the end of 2012
Goal Leader: Danny Werfel, Controller, Office of Management and Budget
The Federal Government owns or leases roughly 1.1 million real property assets, including land, buildings, and structures. Within this portfolio, there are opportunities for savings by reducing Federally-occupied space and/or using and operating space more efficiently. The Government Accountability Office has identified real property as a potential source of significant government savings. To achieve the goal of shrinking the Federal real estate inventory and reducing operating costs, the Administration has taken several steps to improve the management of Federal real property.
In June 2010, the President directed Federal civilian agencies to achieve $3 billion in savings and $5 billion in savings to be achieved through the Base Realignment and Closure Commission (BRAC) process by the end of FY 2012. The President directed agencies to realize savings through reducing annual operating costs, generating income through disposing of assets, using existing real property more effectively by consolidating existing space, expanding telework, and other space realignment efforts. Agencies have already achieved $2.4 billion in savings as of Q1 of 2012 and expect to meet and possibly exceed the President’s goal of $3 billion in savings by end of FY 2012. Of the $2.4 billion in savings as of Q1 of 2012, approximately $955 million has been achieved from disposals and related cost reductions, $935 million from improved space management, and $375 from sustainability (e.g. improved lighting efficiency), and $131 million from innovation (e.g. teleworking).