Disposing of Constructed Real Property Assets

Citation
372 FW 8
Date
Supersedes
372 FW 7, 4/13/2016
Originating Office
Infrastructure Management Division

TABLE OF CONTENTS

TopicsSections

OVERVIEW

8.1 What is the purpose of this chapter?

8.2 What are the objectives of this chapter?

8.3 What is the scope of this chapter?

8.4 What are the authorities for this chapter?

8.5 What terms do you need to know to understand this chapter?

RESPONSIBILITIES

8.6 Who is responsible for planning and disposing of constructed real property assets?

ASSET DISPOSAL MANAGEMENT

8.7 Why are asset disposals important?

8.8 When does the Service typically consider disposing of assets?

8.9 How does the Service integrate asset disposal costs into asset replacement projects in Deferred Maintenance budgets?

8.10 Which assets are the most likely candidates for disposal?

8.11 How does the Service conduct and document removal or demolition of assets?

DATABASE OF RECORD

8.12 What is the database of record for documenting facility disposals, and what are the deadlines for documenting them? 

ADDITIONAL INFORMATION

8.13 What other guidance is available on the procedures for disposing of constructed real property assets?

OVERVIEW

8.1 What is the purpose of this chapter? This chapter establishes the U.S. Fish and Wildlife Service’s (Service) policy on disposal of constructed real property assets. Constructed real property assets are buildings such as offices, visitor centers, and warehouses and structures such as roads, bridges, and trails.

8.2 What are the objectives of this chapter? Our objectives are to:

A. Manage our asset portfolio to divest of underperforming or excess assets to sustain the minimum number of facilities we need to effectively support mission delivery; 

B. Continually seek opportunities to dispose of assets that are not utilized, are underutilized, or are not put to optimal use;

C. Dispose of unneeded assets in a way that complies with Federal laws and regulations; and

D. Include asset disposal in the scope of work and cost estimate for asset replacement projects, regardless of the project’s fund source.

8.3 What is the scope of this chapter? This chapter: 

A. Covers disposal through demolition or offsite removal of constructed real property that the Service owns, but

B. Does not cover disposal of lands (see Parts 341 and 342 on Land Acquisition and Realty Operations) or termination of leases and operating agreements (see Part 370, Space Management).

8.4 What are the authorities for this chapter? See 372 FW 1 for a list of authorities for all the chapters in Part 372.

8.5 What terms do you need to know to understand this chapter? See 372 FW 1 for the definitions of terms we use in all the chapters in Part 372. The definitions below are unique to disposal activities: 

A. Assets not being put to optimum use means constructed property that is:

(1) Not cost-effective to operate and maintain, or

(2) Used but could be used for a different and significantly higher and better use.

B. Estimated fair market value means our best assessment of what we could sell the asset for if we offered it for public sale. Almost all the constructed assets we offer for sale require removal of the asset from our lands; this has a significant impact on the estimated fair market value. The estimated fair market value may be determined by acquiring a contract appraisal or performing waiver valuations and estimates of value, as appropriate, using the comparison method. See section 8.11B(1) and (2) of this policy and the Department of the Interior’s Real Property Disposal Handbook, page 7. 

C. Excess property means assets that the Service controls and that the Director determines are not necessary to meet our needs or responsibilities (see 40 U.S.C. 102(3)). We determine if property is excess by reporting it to the General Services Administration (GSA) on a Standard Form (SF) 118, Report of Excess Real Property. GSA screens excess property for potential reutilization within the Federal Government. After the screening process, excess property that is not reutilized becomes surplus. 

D. Property that is not utilized means assets that are not occupied or used for current program purposes or are occupied in caretaker status only.

E. Surplus property means excess assets that GSA determines are not required to meet the needs or responsibilities of any Federal agency (40 U.S.C. 102(10)).

F. Underutilized assets are:

(1) Property that we use irregularly or intermittently for current program purposes, or

(2) Where we only need a portion of an asset to fully satisfy program purposes.

RESPONSIBILITIES

8.6 Who is responsible for planning and disposing of constructed real property assets? See 372 FW 1 for the overall responsibilities of Service management for constructed real property. Table 8-1 below is specific to the disposal process.

Table 8-1: Responsibilities for Disposing of Constructed Real Property Assets

These employees...Are responsible for...

A. The Director

Approving or declining to approve Servicewide policy.

B. The Chief – National Wildlife Refuge System (NWRS)

(1) On a national level, leading the Service’s activities for managing, planning, and integrating constructed real property disposals with other asset management activities;

(2) Coordinating with other Directorate members at Headquarters with constructed real property assets, especially the Assistant Director - Fish and Aquatic Conservation and the Assistant Director - Management and Administration, to ensure that we manage disposals and transfers of constructed real property assets consistently, and that we develop and implement procedures to document asset disposals or transfers in the Financial and Business Management System (FBMS) and the Service Asset and Maintenance Management System (SAMMS); and

(3) Leading national efforts to ensure that disposals are properly carried out and documented.

C. Assistant Director – Fish and Aquatic Conservation (FAC)

Working in coordination with the Chief - NWRS and other Directorate members to develop and implement procedures to document asset disposals or transfers in FBMS and SAMMS.

D. Assistant Director - Management and Administration

(1) Working with other Directorate members, especially the Chief - NWRS and the Assistant Director - FAC, to develop and implement procedures to document asset disposals or transfers in FBMS and SAMMS; and

(2) Working with all Directorate members to process real property asset disposals in FBMS and reviewing SAMMS asset records to document disposals or transfers.

E. Other Directorate Members at Headquarters

Coordinating with the Chief - NWRS, Assistant Director - FAC, and Assistant Director - Management and Administration to develop and implement the policies and procedures in this chapter within their programs.

F. Regional Directors and Assistant Regional Directors 

Ensuring that program staff within their areas of responsibility: 

(1) Identify constructed real property assets that do not contribute to our mission and are candidates for disposal;

(2) Incorporate the disposal of assets that we will replace into project planning and execution for all such projects, regardless of fund source, and for Deferred Maintenance (DM) projects;

(3) Approve disposals, considering site-specific circumstances (e.g., value to community and community interest) before they occur; and

(4) Adjust FBMS and SAMMS real property records within 30 days of any disposals.

G. Regional Infrastructure Management Division (IMD) Chiefs   

(1) Recommending asset disposal based on Comprehensive Condition Assessments (CCA) and consultation with Field Station Managers;

(2) Verifying that estimated disposal costs are accurate; 

(3) Updating FBMS and SAMMS data records within 30 days of receipt of completed disposal paperwork (FWS Form 3-2509); and

(4) Discussing disposals with Safety Managers/Safety Specialists and Regional Environmental Compliance Coordinators to ensure an understanding of the regulations that apply to the project, and that all health, safety, and environmental issues are addressed during disposal.

H. Field Station Managers

(1) Reviewing assets recommended for disposal during the CCA; 

(2) Discussing disposals with their Regional Historic Preservation Officer to ensure there are no historical concerns or addressing any issues as appropriate in accordance with applicable regulations; 

(3) Initiating the disposal process by submitting an FWS Certificate of Unserviceable Real Property  (FWS Form 3-2509) to the Regional IMD Chief; and 

(4) Obtaining estimated fair market value by acquiring a contract appraisal or performing waiver valuations and estimates of value, as appropriate, using the comparison method. See the Department of the Interior’s Real Property Disposal Handbook

ASSET DISPOSAL MANAGEMENT

8.7 Why are asset disposals important? By disposing of unneeded constructed real property assets, we:

A. Reduce lifecycle facility costs,

B. Restore habitat,

C. Reduce liability by preventing or removing attractive nuisances and safety hazards,

D. Reduce the administrative cost of recordkeeping and auditing, and

E. Focus facility maintenance on preserving mission-critical assets.

8.8 When does the Service typically consider disposing of assets? We regularly consider the need to remove, repair, renew, or build new assets during all phases of program operations. This planning by the Field Station Managers in coordination with the Regional IMD Chief or their Regional Facility Management staff is especially important when developing the 5-year DM, construction, and transportation plans. We also consider cost or program efficiencies that we can gain by asset disposals during the CCAs and annual work plans. 

8.9 How does the Service integrate asset disposal costs into asset replacement projects in DM budgets? The Regional IMD Chief or their Regional Facility Management staff, in coordination with Field Station Managers, must incorporate the estimated disposal costs in all cost projections for asset replacement projects funded through DM and project budgets. 

8.10 Which assets are the most likely candidates for disposal? The Regional IMD Chief or their Regional Facility Management staff, in coordination with Field Station Managers, should recommend disposal of an asset if it: 

A. Is unused or underutilized (for the most current guidance, see the latest fiscal year Federal Real Property Profile (FRPP) Data Dictionary, section B, FRPP Inventory Data Elements and Description, Subsection 12, Utilization, on the Federal Real Property Council’s online library);

B. Is deteriorated beyond economical repair;

C. Has been destroyed or damaged beyond repair in a natural event, such as a fire or a storm;

D. Is dangerous to people, is likely to damage nearby structures, poses the probable release of contaminants to the environment, or creates a nuisance that attracts unwanted pests;

E. Has excessive maintenance costs (Facility Condition Index (FCI) >0.5), and its disposal will not have a significant adverse impact on accomplishing the field station’s mission (see 372 FW 1 for the definition of FCI and what the thresholds mean); 

F. Fragments critical habitat for threatened or endangered species; or

G. Has an obsolete design and cannot be reasonably altered or economically repurposed.

8.11 How does the Service conduct and document removal or demolition of assets? 

A. We generally dispose of real property assets by one of two methods: 

(1) Onsite demolition or removal by Service employees or through a contracted service, or 

(2) Offsite removal that is open to outside entities. Because our constructed real property assets are almost all located on stewardship lands that are used by the public, it is usually necessary to move the materials offsite through a salvage and removal operation. 

B. The disposal process begins when the Field Station Manager, based on a CCA or other unit needs, requests approval in advance to dispose of an asset by submitting an FWS Certificate of Unserviceable Real Property (FWS Form 3-2509) to the Regional IMD Chief. To complete the form, we must consider potentially historic attributes, environmental hazards, etc. 

(1) Estimated fair market value of $50,000 or less: If the appropriate Regional Director and Assistant Regional Director approve the disposal, the station may proceed with the disposal or demolition of the asset if its estimated fair market value is no more than $50,000. The Service has delegated authority from GSA to dispose of assets with an estimated fair market value of $50,000 or less. When we use the authority, we must document in our records that we used the same disposal procedures GSA would have used.

(2) Estimated fair market value of more than $50,000: If the estimated fair market value of the asset exceeds $50,000, GSA must declare it surplus, and the asset must go through the GSA disposal process. See SF 118, Report of Excess Real Property.

DATABASE OF RECORD

8.12 What is the database of record for documenting facility disposals, and what are the deadlines for documenting them? 

A. FBMS is the database of record for documenting facility disposals. 

B. We must fully document disposals, attach a copy of the FWS Certificate of Unserviceable Real Property in FBMS, and adjust FBMS and SAMMS real property records within 30 days after the actual disposition. See sections 8.6C8.6D(2), and 8.6F(4) for the respective employees with these responsibilities.

ADDITIONAL INFORMATION

8.13 What other guidance is available on the procedures for disposing of constructed real property assets? The Constructed Real Property Management Handbook provides more detailed guidance on this topic.