Disposing of Unneeded Federal Real Estate Increasing Sales Proceeds, Cutting Operating Costs, and Improving Energy Efficiency

Impact dates

1. Jun 10, 2015

   Significant data center consolidation completed

2. Sep 30, 2012

   $3 billion in cost savings from disposals and consolidation

3. Sep 8, 2010

   OMB guidance for agency actions due

4. Aug 30, 2010

   Agencies submit data center consolidation plans to OMB

Key directives

• Accelerate identification and elimination of excess properties
• Improve utilization and occupancy rates, reduce operating costs, increase energy efficiency
• Accelerate cycle times for identifying and disposing of surplus assets
• Eliminate non-cost-effective lease arrangements
• Pursue consolidation opportunities across agencies for data centers, office space, warehouses, laboratories
• Increase occupancy through telework and alternative workplace arrangements
• Identify offsetting reductions when acquiring new space
• Freeze data center expansion beyond current levels
• Develop data center consolidation plans to significantly reduce data centers within 5 years
• Submit data center plans to OMB by August 30, 2010
• OMB to develop guidance within 90 days with agency-specific targets for $3 billion savings
• GSA Administrator to coordinate efforts and submit periodic reports

Who is ordered

• Director of OMB · Office of Management and Budget
• Administrator of General Services · GSA
• Heads of Executive Departments and Agencies · All executive agencies

Timeline

Risks & tensions

• Past attempts at civilian real property reduction produced only small savings, suggesting implementation risk
• 5-year data center consolidation timeline is ambitious given historical federal IT inertia
• Requires cross-agency coordination which has historically been difficult
• Cost savings target ($3B) is additive to DOD BRAC savings, creating baseline ambiguity for civilian agencies alone
• Freeze on data center expansion may conflict with mission growth or cloud migration needs