IFMA Statement: US House Passage of Federal Assets Sale and Transfer Act
Thursday, June 23rd, 2016
Following passage of H.R. 4465, the Federal Assets Sale and Transfer Act of 2016 by the U.S. House of Representatives, Tony Keane, president and CEO of the International Facility Management Association (IFMA) made the following statement:
“As the largest property owner in the world, the U.S. government can save billions by reducing waste across its civilian real estate portfolio. On behalf of the International Facility Management Association, I’d like to congratulate Chairman Barletta, Congressman Denham and ranking member Carson for their hard work on this important issue. House passage of H.R. 4465 is a major step forward in improving operations and maintenance of federal buildings and reducing the overall cost of the federal building portfolio. We encourage the Senate to continue its work on companion legislation that not only reduces the overall size of the portfolio, but also creates an incentive for agencies to dispose of excess property through retained savings for training and deferred maintenance.”
Research has demonstrated that only about 15 percent of the total life cycle expense for a building is in construction, with the remaining 85 percent going toward operation and maintenance.
The legislation would address a major risk area in the federal budget by establishing the Public Buildings Reform Board to identify opportunities for the federal government to significantly reduce its inventory of civilian real property and reduce its costs. House passage of this important legislation demonstrates further recognition of the life cycle cost of federal buildings and the savings that are possible through improved operations and maintenance. IFMA has long advocated a reduction in surplus federal property, highlighted the operational savings possible through realignment and urged agencies to utilize savings for deferred maintenance and training.