NASMRM 2005 FACILITIES PROGRAMS OVERVIEW Mike Shigley Research Analyst Arrowpoint Corporation 703-607-9121 [email protected]

NASMRM 2005NASMRM 2005

FACILITIES PROGRAMS

OVERVIEW

Mike ShigleyResearch Analyst

Arrowpoint Corporation703-607-9121

[email protected]


Agenda

• Mission• Resources Available• Facility Condition• Financial Terms• OMNG Program Components• Funding Stream• PBG Calculation• Program Execution• Cooperative Agreement Issues


Mission Statement

To provide state-of-the-art, community based, installations and training sites that, by virtue of their geographical dispersion, can be leveraged by the Army and the State; and that facilitate communications, operations, training, and equipment sustainment to support the deployment of required forces and other assigned State and Federal missions.


Resources Available


CHIEFCOL Edward Sweeney

REAL ESTATE BRANCHCHIEF

Mr. Ken Parks (Acting)

RESOURCES MANAGEMENT BRANCHCHIEF

LTC Richard Nord

DESIGN BRANCHCHIEF

Elvin Shields

FACILITY MANAGEMENT BRANCHCHIEF

LTC Timothy Senecaut

CONSTRUCTION BRANCHCHIEF

MAJ Rodney Graham

SECRETARYMary Vreeland

EXECUTIVE OFFICERMAJ Bennie Morris

DEPUTY CHIEFLTC Jonathan Brooks

ORGANIZATION OF NGB-ARI


Resource Management BranchNGB-ARI-RM

LTC NordBranch Chief

MAJ PhilpotOMNG

MAJ ShacklefordMILCON

Mrs BenedictCACO

Mr. BlountProgram Mgt

Mr WeltzFYDP

MAJ Dyer1390/91 Review

Mr Marrow1390/91 Review

Ms Cassius1390/91 Review

SSG StricklandAdmin

Mrs FaureFunds Mgt

Mrs. DavisStandard Service

Costing


Mission

• Obtains, distributes, and manages resources to provide C-1 facilities and C-1 facilities engineering services for the 54 States and Territories

• Sets and administers policy in support of all ARNG facilities programs

• Provides assistance to enable the 54 States and Territories achieve C-1 facilities and C-1 facilities engineering services


Resources Available

• Publications• Education• FEAC• Mentoring• GKO• Other Web sites• Assistance Visits


Publications

• OMNG: NGR 420-10 and NG Pam 420-10• MCNG: NGR 415-10, NGR 415-5, NG Pam 415-5,

NG Pam 415-12 • Master Planning: NGR 210-20• Real Estate: NGR 405-80• Cooperative Agreements: NGR 5-1• Statute: 10 USC Chapters 159, 169, and 1803• DoD Guidance: DoDD 1225.7 and DoDI 1225.8• Other required and referenced publications in the

NGRs


GKO

• https://gko.ngb.army.mil/login/welcome.aspx• On home page click on ARNG• In right column click on Installations (under G4)• Includes organization chart and phone rosters

(including roster of all CFMOs)• Includes all policy letters as well as special

information published by each branch• Includes information on upcoming conferences

and training• Includes links to other key sites


Electronic References

1. United States Code:www4.law.cornell.edu/uscode/ orwww.access.gpo.gov/congress/cong013.html orhttp://uscode.house.gov/usc.htm.2. Code of Federal Regulations: www.access.gpo.gov/nara/cfr/cfr-retrieve.html#page1.3. Executive Orders: www.nara.gov/fedreg/eo.html . However, this reference, except for

recent executive orders, only provides a summary and citations to the Federal Register. The address of the Federal Register is

www.access.gpo.gov/nara/index.html.4. Office of Management and Budget Circulars: www.whitehouse.gov/omb/circulars/.5. Acquisition Regulations:www.arnet.gov/far/ orwww.acq.osd.mil/dp/dars/dfars.html orhttp://acqnet.sarda.army.mil/library/zpafar.htm.6. Department of Defense Publications: www.dtic.mil/whs/directives/.7. Department of Defense Financial Management Regulation:

www.dtic.mil/comptroller/fmr/.8. DFAS Publications:www.asafm.army.mil/secretariat/document/dfas37-100/dfas37-100.asp andhttps://dfas4dod.dfas.mil/centers/dfasin/library/ar37-1/.9. Army Regulations and Pamphlets: www.army.mil/usapa.10. Technical Manuals : www.usace.army.mil/inet/usace-docs/armytm/ .11. U.S. Army Technical Center for Explosive Safety; Site and General Construction Plan

Developers Guide,www.dac.army.mil.12. National Guard Regulations and Pamphlets: www.ngbpdc.ngb.army.mil/.


Facility Condition

NASMRM 2005NASMRM 2005Facility Shortfall

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

Construct to C-1 Construct to C-2 Construct to C-3

Installations Status Report (ISR) Quantity Rating, FY 2004

$M

NASMRM 2005NASMRM 2005Facility Condition

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Repair to C-1 Repair to C-2 Repair to C-3

Installations Status Report (ISR) Quality Rating, FY 2004

$M


Financial Terms


MDEP

• Stands for Management Decision Evaluation Package

• One assigned for each major program• QRPA (SRM) and QDPW (Facilities Base

Operations) primary ones in operations and maintenance arena for CFMO

• Environmental and military construction have multiple MDEPs.


BOS

• Stands for Base Operations Support• Part of Base Support, which also includes SRM

and demolition• In addition to Facilities Base Operations, it

consists of:– Family Programs (2 MDEPs)– Environmental Programs (3 MDEPs)– Physical Security– Visual Information– Base Communications– Base Operations (BASOPS) (multiple MDEPs)


PBG

• Stands for Program Budget Guidance• What NGB-ARI provides to you• AFP (Annual Funding Program) is what you

receive from NGB-ARC based on directions (almost exclusively) from NGB-ARI.

• NGB-ARC provides allotment (over which NGB-ARI has no control) at BA level to your comptroller, which is what you require to obligate funds.


FAD

• Stands for Funding Authorization Document• Issued first and third Thursday of every month

by NGB-ARI, based on input from NGB-ARI in a computer system called RM-Online

• Data accessible from States and NGB via ARNG Enterprise Data Warehouse (all except FAD number)


AMSCO

• Stands for Army Management Structure Code• Level at which obligations and deobligations are

registered in the financial system• Reference bible is DFAS Manual 37-100-XX (for

the last two digits of the fiscal year).• Check web site for updates to manual at least

monthly.


OMNG Program Components


• Facilities Base Operations Support

• Sustainment, Restoration, and Modernization (SRM)

• Demolition

• MCNG Tails– NEPA

– IT Equipment

– Furniture

MAJOR PROGRAM COMPONENTS


• Cannot exceed FTE requirements in approved FP-PAS (submitted concurrently with budget)

• Each tng center, Statewide logfacs, and CFMO have separate document

• Types: trades workers, engineering admin, fire fighters, CFMO

• One individual can fill parts of many FTE requirements on many sites at several levels of authorized support.

• Reimbursement based on percent of working hours spent on 100% facilities plus percent on 75% facilities plus percent on non-supported facilities

• Salary must be state civil service for like position or equivalent military technician or equivalent private sector

• Training authorized if for required certification and enhancing performance

FEDERALLY REIMBURSED STATE EMPLOYEES


FACILITIES BASE OPERATIONS

• Leases• Utilities• Municipal Services (including solid waste, pest

control, custodial services, snow removal, and landscaping)

• Facilities Engineering Services (including CFMO staff, supplies and equipment, real estate administration, and master planning)

• Fire and Emergency Services• Project Planning and Management (charettes)


• CFMO FP-PAS and non-tradesmen FP-PAS• Operational supplies (i.e., consumed in support

of appendix as a whole)• Machines, tools, equipment, etc. in support of

appendix as a whole (w/o USPFO approval unless on CTA/ MTOE and over $2,500

• Rental of tools, etc. (240 day limit w/o USPFO approval)

• Repair/supplies to/for equipment, etc.• Real estate administration• Master planning, GIS, digitization, master

planning support studies, NEPA, etc.

FACILITIES ENGINEERING SERVICES


SRM PROGRAM COMPONENTS

• Sustainment: Foundation effort for care and preservation of our facilities and includes those activities (repair or maintenance) that one would fully expect to accomplish during the projected life of the facility.

• Restoration: Activities undertaken to restore deteriorated or damaged facilities that were caused by an accident, an “Act of Nature,” or non-performance of sustainment.

• Modernization: Any action that constructs or alters existing facilities solely (or predominantly) to implement new or higher standards, to accommodate new functions, or to replace building components that typically last more than 50 years.


SRM ACTIVITIES

• O&M Construction (statutory limit of $750,000, except $1.5 million if solely to correct life, health, or safety threatening conditions)

• Maintenance: Work to preserve and maintain facility to its designated functional purpose

• Repair - Work to restore deteriorating(ed) facility to designated functional purpose (including upgrade to current bldg codes)

NASMRM 2005NASMRM 2005• Four types

** relocation of facility ** erection, installation, assembly of new facility ** replacement of existing facility ** addition, expansion, extension, alteration, conversion of existing facility

• Statutory $750,000 ceiling on federal contribution (Type A and B services not included), except $1.5 million for life, health, safety

• Executed via contract or Federally-reimbursed State employees

• USPFO is approval authority for all projects over $25,000

• CFMO has approval under $25,000

O&M MINOR CONSTRUCTION


• Executed via contract or FP-PAS employees

• Act of nature repairs exception to normal support codes

• Projects at State owned readiness centers only for AGR/technician offices and major building systems

• USPFO approval authority up to $3 million

• CFMO has approval under $100,000

MAINTENANCE AND REPAIR


Demolition

• Demolition that occurs during and because of an SRM project is funded with SRM funds, is considered part of the SRM project, and is included in any project/statutory limitations associated with the SRM project.

• Demolition that is not associated with an SRM project is considered its own project, is documented on its own NGB Form 420-R, is funded from the demolition account, and is not classified as SRM.

• As an exception you may use MCNG funds for demolition identified on DD Forms 1390/1 that is not part of the MCNG project but is part of compliance with Army’s one for one disposal policy.


Funding Stream


FY 2000-2011MCNG Funding Profile

0

500

1000

1500

2000

2500

($M)

Requirements Funding

Requirements 473 561 604 991 1183 1471 1638 1749 1859 1761 2474 1152

Funding 236 285 401 241 312 447 327 466 715 845 892 932

FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11


Military Construction Funding History

0

50

100

150

200

250

300

350

400

450

500

Pres Bud Add-ons

Add-ons 244 178 114 69 76 103 220 226 134 140 144 181

Pres Bud 51 10 18 8 45 48 16 59 267 101 168 266 327

FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06

295

188

121

77

151

236

132

401

285241($M)

312

447

327


Long Term Facilities Base Operations Funding Profile

0

50

100

150

200

250

300

350

$ i

n M

illi

on

s

Funded

Rqmt

Funded 110 151 150 164 190 220 189 198 193 208 225 229

Rqmt 158 141 127 131 175 251 222 229 242 271 295 305

FY00 FY01 FY02 FY03 FY04 **FY05 FY06 FY07 FY08 FY09 FY10 FY11

** Funding as of 15 February 2005


Long Term SRM and Demolition Funding Profile

0

100

200

300

400

500

600

$ in

Mil

lion

s

Funded 203 241 257 320 317 249 392 418 465 472 482 492

RQMT 249 332 375 403 413 407 448 462 470 481 491 501

FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11

** Funding is as of 15 February 2005


PBG Calculation


Getting Dollars for Facilities Programs

• SRM tied directly to the real property database and Army algorithms for real property allowances

• Facilities Base Operations in transition from current Army model (based on past execution) and Standard Service Costing (which models convergence of ISR, Part 3, and Service Based Costing)

• OSD model under study would calculate facilities base operations requirements based on PRIDE inventory and cost to perform services for like type of civilian facility


Database Accuracy Critical

• PRIDE• ASIP• RPLANS• STANFINS (DFAS 218)

NASMRM 2005NASMRM 2005PBG METHODOLOGY

• PBG based on State’s percentage contribution to NGB requirements• Funding above PBG for items like leases, master planning, energy manager, and focused investment projects• Two components: SRM and Facilities Base Operations• PBG calculated after NGB has set money aside for centrally managed programs and contracts


PBG METHODOLOGY, PART II

• For SRM if State earns X% of SRM POM requirements it receives X% of available funding

• SRM POM requirements based on PRIDE 30 Sep input two years previous plus projects to be completed minus facilities to be disposed (e.g., FY06 PBG earned based on 30 Sep 03 PRIDE)

• Same principle for Facilities Base Operations except requirements based on sum of three year rolling average for the program components earning PBG (utilities, municipal services, and facilities engineering services)


Centrally Managed Programs (SAG 131)

• Leases (131G79.H*) • Energy Manager (131G79.N1)• Data Administrators (131G79.N1)• Energy Management Studies (131G79.N2)• Solid Waste Plans (131G79.N2)• Airport Use Agreements (131G79.N2)• Master Planning (incl GIS) (131G79.N4)• NEPA (131G79.N4)• Programming Charettes (131G79.Q1)• Fire and Emergency Services (131G79.P0)• IT Equipment (131G95.00)• Furniture (131G96.BJ and show execution in

MDEP of MILCON project)


Centrally Managed Programs (SAG 132)

• Act of Nature Damage (132G76.L1)• Energy Projects (132G76.L5 or 132576.L6,

depending on size)• Modularity (132G76.L5)• Projects at National Training Centers

(132G76.L5)• Simulation Fielding (132G76.L5)• Training Center Utility System Upgrades

(132G76.L5)• Demolition (132G93.00)


Program Execution


FACILITIES PROGRAMS FUNDING PROCESS

• CFMO U -- AFG issued to States• 30 June -- completed budget due back to NGB-

ARI• Submit Act of Nature requests in accordance with

NGR 5-1, Chapter 13.• Any lease, charette, furniture, etc. alibis will be

considered on case by case basis if justified via e-mail.

• States must request permission via e-mail through NGB-ARI to NGB-ARC to move money between SRM and Facilities Base Operations after start of the fiscal year

• FADs only on first and third Thursday of month after start of fiscal year


General Budget Policies

• Follow AMSCO guidance in latest DFAS Manual 37-100-XX

• No more than 45% of your AFG to employees• At least 50% of your AFG to sustainment (i.e.,

132G78.** accounts)• Show all requirements for each line item• Bare minimum allocated to OMNG construction

(and verify you are really doing construction)• Include funding requests for all centrally

managed programs in budget or risk not receiving funding at all (and be sure you don’t allocate PBG to centrally managed programs)


FP-PAS Employees

• Applies only to Appendix 1 and no other appendix• Budgeting rules based on requirement to ensure manpower

allocations are not exceeded• Manpower allocations based on industry standards• CFMO PAS allocations equal difference between manpower

study requirements and actual AGRs and military technicians on hand

• Centralized Personnel Plan (CPP) employees must appear as FTEs in BOATS

• NGR 5-1, para 5-4d, limits CPP employees to those in State Military Department in non-supervisory positions who would not exist were there no cooperative agreement and then only for their direct, incremental support to particular appendices

• NGR 5-1, para 13-5d(8) reiterates that Appendix 1 CPP employees must be in PAS and in direct support of CFMO, training center, or other supervisor of FISP supported facility

NASMRM 2005NASMRM 2005Lease Policy

• Must be completely entered in PRIDE grants module (including new amount for next FY)

• Must have valid lease on file with NGB• Must Plan Ahead – takes over two years to go

from POM to funding (e.g., lease new FY05 won’t earn POM dollars until FY08)

• All leases must be approved by NGB-ARI-RE prior to NGB-ARI-RM funding them.

• Don’t forget new AMSCO (131G79.H*) for FY06.


Other Programs (“Tails”)

• Request programming charettes for fiscal year no later than year after project enters FYDP

• Request NEPA before you receive design funds so NEPA is approved before you complete preliminary design

• Request furniture and IT equipment through NGB-ARI for fiscal year in which you must purchase items for completing MCNG projects

• Request kitchen equipment from NGB-ARL and physical fitness equipment from NGB-ART/NGB-ARL (not Army approved MILCON tails)


Cooperative Agreement and other Facilities Programs

Issues

NASMRM 2005NASMRM 2005HOW WE DO BUSINESS

• All ARNG facilities owned by, leased by, or licensed to States

• States, not Federal government, operate and maintain ARNG facilities

• Cooperative agreements with States to transfer money to perform these functions

• State share 25% for readiness centers on Federally owned land and over 50% for readiness centers on State-owned land

NASMRM 2005NASMRM 2005STATE MANAGEMENT

• Oversight– Technical and fiscal from Construction & Facilities

Management Officer (CFMO) – Fiscal from United States Property & Fiscal Officer

(USPFO)

• State incurs expense

• Monthly, vouchers routed through CFMO for approval

• Vouchers to USPFO for payment


KEY ELEMENTS OF THE COOPERATIVE AGREEMENT

• Reimbursement authorized only if: * Facility is listed on FISP. * Facility is authorized support.

• State agrees to exercise "best efforts "to operate and maintain authorized facilities according to "sound commercial practices.“ (Master Cooperative Agreement, Section 201)

• State agrees to maintain facilities to "required minimum standards.“ (Appendix 1, Section 104)


• Federal Inventory & Support Plan (FISP) is key

• Land/building/facility component must be on FISP and coded to receive support

• Real property database (module of PRIDE) is thus critical to both requirements generation and cooperative agreement execution

COOPERATIVE AGREEMENT BASICS


COOPERATIVE AGREEMENT EXECUTION

• Obligate funds up front

• Watch obligation posting (should not be negative)

• Watch that costs are applied to proper appendix

• One program manager per appendix

• USPFO decides validity of requests for reimbursement (but should have CFMO recommendation)

• Annual certification of real property (31 May)

NASMRM 2005NASMRM 2005REIMBURSEMENT RULES

• Federal Inventory & Support Plan (FISP) is key

• Land/building/part of building must be on FISP and coded to receive support

• Utilities/repairs/O&M construction to supported facilities reimbursable

• Salaries/supplies/equipment/services fully reimbursable:

– if for supported facilities;

– or if in support of agreement,

– and if part of State's responsibilities,

– and if sole benefit is to State ARNG


• FISP registers real property (land, buildings, ancillary facilities)

• FISP agreement support code is the key (Appendix 1 only) ** 100% -- All codes except the two below ** 75% -- SC1

** 50% -- S15 ** Other Federal funds – T10, SC6, SC10

• One building/one person/one purchase may include/support more than one support category

• If so, reduce request for reimbursement proportionately

• Exceptions ** CFMO people/activities -- 100% ** Some State readiness center projects -- 100%

** Acts of Nature -- 100%/75%

REIMBURSEMENT


Recent NGR 5-1 Changes

• Definitions of agreement support codes: SC3, SC5, SC6, S12

• Exceptions on 75/25 and 50/50 reimbursement rates for NEPA, construction, and demolition

• Personal items for restrooms are now reimbursable

• Removal of NGB approval for procurement of items over $25,000 and USPFO approval for all items $2500 and under and for items over $2500 not on MTOE or CTA

NASMRM 2005NASMRM 2005THE CFMO

• Our point of contact in the State

• The engineer

• The work classifier

• The single program manager

• Validates requests for reimbursement for USPFO approval


Construction Execution

• Are all the obligations for 132G76.L5 on the DFAS 218 report really for construction?

• Are you misclassifying work as construction that is really repair?

• Are you entering obligation data in the financial system against the wrong AMSCO?


How to Tell

• If you add components or square feet to a facility, it is construction.

• If you change the purpose (i.e., cat code) of a facility or a part of a facility, it is construction.

• If you are altering or reconfiguring a building without failing components, it is construction.

• If you are replacing/upgrading a failing/failed building component, it is repair.

• In fact, unless you are doing one of the first three items, it is probably repair. Even reconfiguration associated with working on failing/failed components is repair.


OMNG Projects

• CFMO “is the one individual within the State through whom all real property actions involving Federal dollars or activity must go.” (NGR 420-10, para 2-9c)

• CFMO “recommends approval and oversees all projects, regardless of funding source or project initiator, including troop construction projects.” (NGR 420-10, para 2-9b)

• “No entity within the State nor any tenant organization shall start any project work without the prior written project approval of both the CFMO and the USPFO, as documented on an approved NGB Form 420-R or DD Forms 1390/1391…All projects, no matter what the funding source, will proceed only if under the technical oversight of the CFMO.” (NGR 420-10, para 5-1b)

• Failure to follow the regulation has led to an ADA in multiple States and potential ADAs in other States.

• USPFOs and CFMOs must take charge, and CoS must enforce compliance.


Incremental Construction

• NGB PAM 415-5• b. Incremental construction is prohibited. In other words, you may not split a

project into separate parts where one or more of the following take place:– (1) It is done solely to reduce costs below an approval threshold or the unspecified

minor construction (UMI) ceiling.– (2) Each part is not in itself complete and usable.– (3) The total project is not complete until all parts are complete.

• c. The following practices constitute statutory violations and are prohibited:– (1) Acquisition or improvement of real property facilities through a series of

operations and maintenance construction projects that together exceed the operations and maintenance construction limit and none of which separately provide a complete and useable project.

– (2) Subdivision of a construction project to reduce costs to a level that meets a statutory limitation, or the splitting or incrementing of a project to reduce costs below an approval or contracting threshold.

– (3) Development of an operations and maintenance construction project solely to reduce the cost of an active military construction project below the level at which Congress must be informed of a cost variation.

– (4) Beginning a UMI project that has been previously denied authorization by Congress as a specified project.


Anti-Deficiency

• Misclassification of construction as another SRM activity, errors in defining construction projects, and inappropriate applications of project change orders may result in a violation of the Anti-Deficiency Act.

• Remember the statutory limits on O&M construction.

• The definition of construction includes installed building equipment (real property equipment) which is affixed and built into a facility as an integral part of the facility.

• You may not do incremental construction. The end result of the construction project must be a complete” and usable facility(ies) or a complete and usable improvement to an existing facility.


Anti-Deficiency (II)

• Initial project contracts may be obligated against a fiscal year’s funds only if a valid State obligation of the actual contract document takes place before the close of that Federal fiscal year.

• A change order against a contract may be obligated against the funds of the fiscal year of the original contract only if the funds have not yet expired (five years after the close of the fiscal year) and if the change order is within the scope of the original contract. Otherwise, the change order must be charged against current year funds.


KEYS TO REIMBURSEMENT

• Is the facility authorized support on the FISP?• Is the project for a supported facility?• Is the person repairing a supported facility or directly

supporting a trades worker or the agreement?• Is the engineering equipment/supply/ service

purchase/rental in direct support of a supported facility?

• Is the rate of reimbursement in direct proportion to the percentage of federal support times percent effort consumed on supported facility?

• Is the reimbursement only for or in support of facility M&R and not facility operation?


Questions

Documents

NASMRM 2005 FACILITIES PROGRAMS OVERVIEW Mike Shigley Research Analyst Arrowpoint Corporation 703-607-9121 [email protected]