PBS Performance By GSA Strategic Goals

OCHCO Performance By Stewardship Goal

OCHCO Performance By Superior Workplaces Goal

OCHCO Performance By Best Value Goal

OCHCO Performance By Innovation Goal

Stewardship

Lead Federal agencies in the economical and efficient management of Federal assets by spearheading effective policy development and by the exemplary management of the buildings/workplaces, motor vehicles, and personal property provided by GSA.

PERFORMANCE MEASURES AND RESULTS BY PROGRAM
Program	Performance Measure	Result
PBS (Asset Management)	Percentage of available and committed space in government-owned inventory.	Not Met
PBS (Asset Management)	Customer Satisfaction—tenants in owned space.	Met
PBS (Real Property)	The percent of public sales awarded within 170 days.	Met

PBS (Asset Management)

PERFORMANCE GOAL: Decrease the vacant (available and committed) space to seven percent of the owned inventory by FY 2005 and maintain thereafter.
MEASURE: Percentage of available and committed space in government-owned inventory.
FY 2004 Actual	FY 2005 Actual	FY 2006 Actual	FY 2007 Target	FY 2007 Actual
7.9%	6.8%	7.0%	7.0%	7.7%

DESCRIPTION OF THE MEASURE: This measure evaluates PBS’s effectiveness at maximizing the use of the government-owned buildings in its inventory. Vacant space includes any space for which PBS currently has no tenant, including space that it has committed to a customer, but is not yet occupied.

DATA SOURCE: Vacant Space Report—extracted from System for Tracking and Administering Real Property (STAR).

DISCUSSION OF FY 2007 TARGET VS. RESULTS: In FY 2007, GSA did not meet its target for vacant owned space. GSA uses various strategies to reduce the amount of vacant space in its inventory, including decommissioning and disposing of underutilized assets, actively backfilling and outleasing vacant space, and completing current renovation projects on schedule to minimize the vacancy duration.

PBS (Asset Management)

PERFORMANCE GOAL: Execute energy conservation goals while increasing GSA’s Customer Satisfaction scores to 75 percent by FY 2007.
MEASURE: Customer Satisfaction—tenants in owned space.
FY 2004 Actual	FY 2005 Actual	FY 2006 Actual	FY 2007 Target	FY 2007 Actual
72.0%	77.6%	83.0%	75.0%	78.0%

DESCRIPTION OF THE MEASURE: Assessing customer satisfaction levels is a direct measure of how well PBS is meeting its goal to provide best value for customer agencies and taxpayers. The survey assists PBS managers with targeting problem areas within individual buildings.

DATA SOURCE: The data source is a customer survey of PBS’s tenants in space owned by the Federal government, which is conducted for GSA by the Gallup Organization.

DISCUSSION OF FY 2007 TARGET VS. RESULTS: According to the Gallup Organization, PBS’s survey provides a true gauge of customer satisfaction. Major factors contributing to the high customer satisfaction level include the quality of leased space and proactive responses by PBS to previous tenant survey issues. PBS continues to make a concentrated, organization-wide effort to increase the level of satisfaction for its tenants. Many regions have already published newsletters for tenants and have developed cross-functional teams or “ambassadors” in an effort to address customer satisfaction issues.

PBS (Real Property)

PERFORMANCE GOAL: Award 100 percent of public sales within 170 days for FY 2007.
MEASURE: The percent of public sales awarded within 170 days.
FY 2004 Actual	FY 2005 Actual	FY 2006 Actual	FY 2007 Target	FY 2007 Actual
73.0%	92.0%	100.0%	100.0%	100.0%

DESCRIPTION OF THE MEASURE: This performance measure evaluates the percent of public sales awarded within 170 days. The 170 days is based on data obtained from the CoStar Group that shows the commercial sales sector averages about 170 days to complete a sale.

DATA SOURCE: Net Real Estate Activity Locator (NETREAL) database, the system used by PBS to track real property sales.

DISCUSSION OF FY 2007 TARGET VS. RESULTS: Real Property Disposal met the goal of awarding all public sales within 170 days through efficient project management methods established by the Regional offices. Property sales are managed to meet the best interests of the government by combining assertive marketing techniques and working closely with potential purchasers. The increase in the number of online auctions from 10 percent in FY 2005 to over 15 percent in FY 2007 has also enabled the office to complete sales in a more efficient manner.

Superior Workplaces

Deliver and maintain productive workplaces consisting of office space, furnishings, technology, supplies, and related services.

PERFORMANCE MEASURES AND RESULTS BY PROGRAM
Program	Performance Measure	Result
PBS (New Construction)	Construction projects on schedule.	Not Met
PBS (Asset Management)	Repairs and alterations (R&A) projects on schedule.	Met

PBS (New Construction)

PERFORMANCE GOAL: New construction projects on schedule 87 percent of the time by FY 2007.
MEASURE: Construction projects on schedule.
FY 2004 Actual	FY 2005 Actual	FY 2006 Actual	FY 2007 Target	FY 2007 Actual
80.2%	100.0%	84.0%	87.0%	79.8%

DESCRIPTION OF THE MEASURE: PBS financial projections include rental income from new construction projects as of the anticipated date of occupancy. It is, therefore, critical that projects be completed on time so that they can begin to generate expected revenue. This measure tracks the actual value of work in place on projects against projected schedule performance by comparing the planned schedule of spending for prospectus level New Construction (budget activity 51) projects, with the actual value of the work in place (funds paid to the contractor). This measure uses an earned value technique to assess construction project performance on all prospectus level New Construction projects.

DATA SOURCE: PBS Project Information Portal (PIP).

DISCUSSION OF FY 2007 TARGET VS. RESULTS: There were three new construction projects off schedule at the end of FY 2007: Miami, FL Federal Building/Courthouse; Cape Girardeau, MO Phase three tenant improvements; and Washington, DC Department of Homeland Security’s Bureau of Alcohol, Tobacco, Firearms and Explosives headquarters. Of the 24 individual projects in the FY 2007 measure, 21 or 87.5 percent of them were on schedule. The total value of new construction work in place on schedule in FY 2007 was just over $1 billion, compared to $254 million of work off the schedule pace, which drives the FY 2007 actual result of 79.80%.

The Washington, DC project was delivered late due to many factors, including: the need to redesign a curtain wall system for blast resistance, an overly aggressive and optimistic construction schedule, and contractor failure to adhere to submitted recovery schedules. The new Miami Courthouse project was delayed due to continuous contractor labor shortages for many of the trades, especially electrical; quality control issues on the site causing rework of several major building elements; and contractor nonperformance. The Phase III (Tenant Improvements) of the Cape Girardeau Courthouse project was delivered late due to the need for redesign of the ceiling structure systems to meet building codes after contract award, and errors in door hardware schedules, which required reordering of access hardware to meet facility requirements.

PBS will continue to undertake construction peer reviews on major capital construction projects at 15 percent, 35 percent, and 90-95 percent of construction completion, to monitor construction progress against major milestones and to identify correction strategies.

PBS (Asset Management)

PERFORMANCE GOAL: 88 percent of repairs and alterations (R&A) projects on schedule by FY 2007.
MEASURE: Repairs and alterations (R&A) projects on schedule.
FY 2004 Actual	FY 2005 Actual	FY 2006 Actual	FY 2007 Target	FY 2007 Actual
78.0%	95.0%	83.0%	88.0%	94.2%

DESCRIPTION OF THE MEASURE: PBS financial projections include rental income from new construction projects as of the anticipated date of occupancy. It is, therefore, critical that projects be completed on time so that they can begin to generate expected revenue. This measure tracks the actual value of work in place on projects against projected schedule performance by comparing the planned schedule of spending for prospectus level R&A (budget activity 55) projects, with the actual value of the work in place (funds paid to the contractor). This measure uses an earned value technique to assess construction project performance on all prospectus level R&A projects.

DATA SOURCE: PBS PIP

DISCUSSION OF FY 2007 TARGET VS. RESULTS: There were two R&A projects off schedule at the end of FY 2007: Atlanta, GA M.L. King Federal Building R&A; and Omaha, NE Zorinsky Federal Building R&A. Of the 41 R&A projects in the measure, 39 or 95 percent of them were on schedule. The value of R&A work in place on schedule in FY 2007 was over $852 million, compared to $49 million of work off the schedule pace.

Best Value

Develop and deliver timely, accurate, and cost-effective acquisition services and business solutions,supplies, and related services.

PERFORMANCE MEASURES AND RESULTS BY PROGRAM
Program	Performance Measure	Result
PBS (Asset Management)	Percent below private sector benchmarks for cleaning, maintenance and utility costs in office and similarly serviced space.	Not Met
PBS (Leasing)	Cost of leased space relative to industry market rates.	Met

PBS (Asset Management)

PERFORMANCE GOAL: Maintain operating service costs in office and similarly serviced space at three percent or more below private sector benchmarks by FY 2007.
MEASURE: Percent below private sector benchmarks for cleaning, maintenance and utility costs in office and similarly serviced space.
FY 2004 Actual	FY 2005 Actual	FY 2006 Actual	FY 2007 Target	FY 2007 Actual
-14.5%	-11.0%	-4.2%	-3.0%	-1.6%

DESCRIPTION OF THE MEASURE: PBS uses several sophisticated benchmarks to monitor operating costs (maintenance, utilities, and cleaning) in comparison with those in equivalent private sector buildings. The Building Owners and Managers Association (BOMA), an advocacy group for the real estate industry, is PBS’s primary source for private sector operating cost information. In FY 2006, OMB approved a restructuring of this measure to reflect the performance of the Agency. The methodology of calculating the measure was changed to include only those assets that are located in markets for which BOMA has direct data. GSA previously contracted for a regression analysis to proxy data for the markets for which no industry data was available. However, this regression did not accurately reflect the market conditions of these locations. The new methodology provides a more accurate comparison to private sector performance.

DATA SOURCE: BOMA Experience Exchange Report, Consumer Price Indices (CPI), Energy Information Administration, Pegasys, and STAR.

DISCUSSION OF FY 2007 TARGET VS. RESULTS: GSA employs private sector benchmarks to measure performance in all comparable instances to ensure that GSA is operating and maintaining its assets as efficiently as the private sector. However, the unique mission and operating environment of GSA makes comparisons difficult. PBS is subject to restrictions and regulations that negatively affect operating costs, when compared to the private sector. Homeland Security Presidential Directive-12 (HSPD-12) requirements; socio-economic considerations, such as the National Industries for the Severely Handicapped (NISH) and small businesses; and Department of Labor (DOL) Service Contract Act wage determinations that exceed the minimum wage offered by the private sector all increase operating costs. Despite these considerations, PBS was able to continue to operate at a cost below the private sector; however, it did not operate at the level of cost efficiency for which it strived. PBS is committed to providing cost savings to the U.S. taxpayer without compromising its service to its client agencies. The Agency will continue to leverage the government’s buying power and concentrate on achieving cost-efficient operations.

PBS (Leasing)

PERFORMANCE GOAL: Award leases at an average rental rate of not less than 8.8 percent below industry averages for comparable office space by FY 2007.
MEASURE: Cost of leased space relative to industry market rates.
FY 2004 Actual	FY 2005 Actual	FY 2006 Actual	FY 2007 Target	FY 2007 Actual
-10.6%	-9.2%	-9.2%	-8.8%	-10.6%

DESCRIPTION OF THE MEASURE: PBS benchmarks its leasing rates in office space to the commercial market. By consistently paying lease rates at or below comparable market rates, PBS ensures that it is achieving the best value for the taxpayer. When calculated by contract, this measure also provides information as to the effectiveness of PBS’s negotiation of favorable contract rates.

DATA SOURCE: STAR—primary tool used by PBS to track and manage the government’s real property assets and to store inventory, billing, building, and customer data, and lease information. Society of Industrial and Office Realtors (SIOR) publications—to determine current trends and market rates from which GSA establishes benchmarks.

DISCUSSION OF FY 2007 TARGET VS. RESULTS: PBS’s success at exceeding the FY 2007 target for lease cost relative to market illustrates the understanding of real estate and the market dynamics that PBS associates bring to the customer. GSA has the highest credit rating possible, which provides security to lessors that the rent will be paid. During the lease process, PBS actively seeks competition, and that drives competitive pricing. Extensive market research prior to going out for a solicitation allows PBS to set aggressive negotiation objectives. PBS has been very successful in negotiating below market rates for many of its large new leases, as well as negotiating below market rates for new follow-on leases at existing locations, which allows PBS to benefit from lower tenant finish costs.

Innovation

Develop new and better ways of conducting business that result in more productive and effective Federal policies and administrative operations.

PERFORMANCE MEASURES AND RESULTS BY PROGRAM
Program	Performance Measure	Result
PBS (Asset Management)	Percent reduction in energy consumption over the FY 2003 baseline.	Met

PBS (Asset Management)

PERFORMANCE GOAL: Reduce energy consumption in GSA Federal building by four percent (as measured by Btu/GSF) over the FY 2003 baseline by FY 2007.
MEASURE: Percent reduction in energy consumption over the FY 2003 baseline.
FY 2004 Actual	FY 2005 Actual	FY 2006 Actual	FY 2007 Target	FY 2007 Actual
-22.4%	-35.3%	-4.4%	-4.0%	-8.3%

DESCRIPTION OF THE MEASURE: PBS is a responsible steward of the environment and is committed to implementing energy-saving solutions that improve the energy efficiency of operations and save taxpayer dollars.

DATA SOURCE: Energy Usage and Analysis System (EUAS) and STAR.

DISCUSSION OF FY 2007 TARGET VS. RESULTS: GSA exceeded the goal for this measure primarily due to the application of the renewable energy Btu reduction credit in accordance with guidance issued from the Department of Energy (DOE) Federal Energy Management Program. Under Section 102 of the Energy Policy Act of 2005, (42 U.S.C. 8253(a)(1)), and Executive Order 13423, on-site, renewable energy generation projects do not incur fuel costs, are generally unmetered, and are located on the customer side of a facility’s energy meter. This impacts purchased energy in the same manner as an energy conservation project; therefore, energy consumption will not be included in the total Btu /GSF calculations used for energy efficiency goals. Without application of this reduction credit, GSA’s performance would be -3.76 percent. The results stated above are based on a rolling 12-month report through August 2007.

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