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Jan 12

NASA IG Assesses Agency’s Real Property Master Planning

The Agency must seek a better balance between disposing of unneeded facilities and the mission needs of each of its component Centers.

The National Aeronautics and Space Administration’s (NASA) current complex real property portfolio is both very unique and, yet, indicative of the complex issues facing federal agencies as they address their needs for improved real property asset management in an environment of reconsidered missions and austere budgets.

Consisting of more than 5,000 buildings and other specialized structures, the NASA portfolio includes such things as wind tunnels, laboratories, launch pads, and test stands. These assets are largely scattered among ten geographically distinct component Centers and total some 44 million square feet of built structures. This infrastructure has a replacement value in excess of $29 billion. At the same time, at least 80 percent of this inventory is more than 40 years old with diminishing functional value.

At the same time, the Agency is undergoing considerable changes in their mission focus as the Space Shuttle Program concludes after a 39-year run. Needless to say, this creates significant uncertainty about facilities NASA will need for their next space launch program. Moreover, the Agency is dealing with these challenges in an era of growing budget deficits that are straining resources across the federal government. Indicative of this trend, during the 2012 budget process, OMB reduced the Agency’s projected budget for facility upgrades from $1.7 billion to $750 million for the period from 2013 to 2017.

As if this weren’t enough—in the 2010 NASA Authorization Act—Congress charged the Agency to carefully examine its real property assets and downsize its portfolio in concert with current and future missions and expected levels of funding. They were directed to pay particular attention to “identifying and removing unneeded or duplicative infrastructure”.

As a result, the Agency is in the unenviable position of making exceptionally difficult decisions about the essential components of its real property inventory that will both support its expected mission and can be sustained under present budget realities. Thus, NASA established an overall goal of cutting its $29 billion infrastructure current replacement value 10% by 2020 and 15% by 2055.

Just before Christmas, NASA’s Office of Inspector General released its audit report on the Agency’s infrastructure and facilities. The bottom line was NASA has a lot of aging facilities that are in less than desirable condition and do not necessarily align well with the Agency’s evolving missions.

In response, NASA is undertaking the development of its first integrated agency-wide real property master plan with a strategy of consolidating individual real property plans developed by each of the Agency’s Centers. The intent is to guide portfolio decision-making and development planning considering shared programmatic objectives and integrated proposals. This would permit NASA to most effectively distribute resources while ensuring that Center plans align with the overall agency missions.

The IG found managers struggling to meet the targets as they transitioned to an agency-wide master planning initiative versus a traditional approach where center managers determined their facilities’ needs. Though NASA has disposed of 645 buildings with a total replacement value of $931 million since 2005, and has plans for 140 demolitions through 2015, the IG called for a number of improvements in the Agency’s planning process. In particular, NASA leadership must establish clear guidance to Center managers to establish better correlation between facilities needs and the Agency’s future missions and projects. The full report contains food for thought and can be useful for any federal agency contemplating an agency-wide plan for their real property portfolio.

Check out our latest e- news article for additional information on this.

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Stemming from a personal passion for reducing waste and inefficiencies, David Baxa provides his professional insights on helping large enterprises reduce costs through better management of buildings, land, and infrastructure assets.

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