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OMB: Facility management reforms on track to save $3B

May. 31, 2012 - 02:07PM   |  
By ANDY MEDICI   |   Comments

Agencies are on track to save more than $3 billion in real estate and facility maintenance costs by the end of September, according to the Office of Management and Budget.

Agencies must save a combined $3 billion in real estate costs by the end of fiscal 2012, according to a June 2010 presidential memo.

Danny Werfel, OMB controller, http://www.whitehouse.gov/blog/2012/05/31/right-real-estate-track">said in a blog post Thursday that agencies have saved $2.4 billion so far. He also said the 2005 base realignment and closure process has saved more than $3.2 billion.

Werfel said President Obama’s memo pushed agencies to be more aggressive in consolidating space and disposing of unneeded facilities.

“At his direction, agencies have worked to reduce office space, encourage wider adoption of telework, provide alternate workspace configurations, reduce operating costs, and consolidate data centers,” Werfel said.

Werfel laid out examples of how agencies were saving on real estate costs, including:

• The February sale of the 27,000-square-foot Nome Federal Building in Nome, Alaska, for $1.68 million.

• The IRS announcing the closure of 43 smaller offices across the country — reducing its office space by more than $1 million square feet — to save $40 million annually.

• The Agriculture Department announcement that it will close 259 offices and labs across the country to save $150 million annually.

Werfel also urged Congress to pass the administration’s proposed Civilian Property Realignment Act — legislation that would create a BRAC-style process for disposing of federal properties.

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