Effective Asset Management Frameworks Include Six Key Characteristics Reflected in Selected Agencies’ Practices

Based on our review of the ISO 55000 standards, asset management  literature, and interviews with experts, we identified six key characteristics  of an effective asset management framework: (1) establishing formal  policies and plans, (2) maximizing an asset portfolio’s value, (3)  maintaining leadership support, (4) using quality data, (5) promoting a  collaborative organizational culture, and (6) evaluating and improving  asset management practices (see fig. Each of the six federal agencies we reviewed had a real property asset  management framework that included some of these key characteristics. In addition, two agencies—the Corps and Coast Guard—told  us they were using the ISO 55000 standards. Government-Wide Asset Management Information Lacks Many Elements of an Effective Asset Management Framework

While OMB has issued government-wide requirements and guidance to  federal agencies related to asset management, this guidance does not  present a comprehensive approach to asset management because it  does not fully align with standards and key characteristics, nor does it  provide a clearinghouse of information on best practices for federal real  property management to agencies as required by Executive Order 13327. These  initiatives emphasize efficiently managing and using space, rather than  overall asset management. Given OMB’s shift in focus, OMB staff  said that they did not plan to update their guidance. For example, officials from three of the six agencies we spoke with  said information on best practices for asset management would be helpful  to them in developing their agencies asset management frameworks. However, because existing federal asset  management guidance does not fully reflect standards and the key  characteristics, such as, directing agencies to develop a comprehensive  approach to asset management that incorporates strategic planning,  capital planning, and operations, federal agencies may not have the  knowledge needed to maximize the value of their limited resources. Recommendation

We are making the following recommendation to OMB:  The Director of OMB should take steps to improve existing information on  federal asset management to reflect leading practices such as those  described in ISO 55000 and the key characteristics we identified and  make it readily available to federal agencies. Appendix II: Objectives, Scope, and Methodology

This report discusses: (1) key characteristics of an effective asset  management framework, and how selected federal agencies’ frameworks  reflect these characteristics; (2) views of selected asset management  experts and practitioners on challenges and benefits to implementing an  asset management framework; and (3) whether government-wide asset  management guidance and information reflect standards and key  characteristics of an effective asset management framework. We selected the ISO  55000 standards because they are international consensus standards on  asset management practices. We also reviewed laws governing federal  real-property asset management, Office of Management and Budget’s  (OMB) guidance and prior GAO reports describing agencies’ real-property  management and efforts to more efficiently manage their real property  portfolios. Based on these factors, we selected: (1)  U.S. Coast Guard (Coast Guard); (2) U.S. Army Corps of Engineers  (Corps); (3) General Service Administration (GSA); (4) National  Aeronautics and Space Administration (NASA); (5) National Parks  Service (Park Service); and (6) United States Forest Service (Forest  Service). We reviewed documents and interviewed officials from each of the six  selected agencies to learn about the agency’s practices, its experiences  with the ISO 55000 standards, and challenges it has faced in conducting  asset management. We also reviewed documents from and interviewed asset  management practitioners from 10 additional organizations familiar with  asset management practices and the ISO 55000 standards.
Why GAO Did This Study

The federal government is the largest real property owner in the United States and spends billions of dollars to operate and maintain these assets, which include buildings, roads, bridges, and utility systems. Federal agencies are responsible for developing asset management policies, processes, and plans. In 2014, the ISO 55000 asset management standards were issued.
GAO was asked to examine federal agencies' real property asset management practices and the applicability of ISO 55000. This report discusses: (1) key characteristics of an effective asset management framework and how selected federal agencies' frameworks reflect these characteristics, and (2) whether government-wide asset management guidance and information reflect standards and key characteristics of an effective asset management framework, among other objectives.
To conduct this work, GAO reviewed the ISO 55000 standards, relevant studies and literature, and interviewed 22 experts and 10 practitioners. GAO selected six federal agencies as case studies, including agencies with the largest real property portfolio and some agencies that were using the ISO 55000 standards. GAO reviewed documentation and interviewed officials from these six agencies, GSA, and OMB.

What GAO Found

GAO identified six key characteristics of an effective asset management framework (see table 1) that can help federal agencies manage their assets and resources effectively. GAO identified these key characteristics through reviews of the International Organization for Standardization (ISO) 55000 standards—an international consensus standard on asset management—studies and articles on asset management practices, and interviews with experts. GAO reviewed the asset management practices of six federal agencies: the U.S. Coast Guard (Coast Guard); U.S. Army Corps of Engineers (Corps); General Services Administration (GSA); National Park Service (Park Service); National Aeronautics and Space Administration (NASA); and U.S. Forest Service (Forest Service). Each of the six federal-agency frameworks GAO reviewed included some of the key characteristics.
Source: GAO analysis of ISO 55000 standards, asset management literature, and comments from experts. | GAO-19-57
While the Office of Management and Budget (OMB) has issued guidance to inform federal agencies' real property management efforts, the existing guidance does not reflect an effective asset management framework because it does not fully align with ISO 55000 standards and the key characteristics. For example, this guidance does not direct agencies to develop a comprehensive approach to asset management that incorporates strategic planning, capital planning, and operations, or maintaining leadership support, promoting a collaborative organizational culture, or evaluating and improving asset management practices. In addition, the guidance does not reflect information on successful agency asset management practices, information that officials from three of the six agencies GAO spoke with said would be helpful to them. OMB staff said that they did not plan to update existing government-wide guidance because OMB's real property management focus has shifted to the Reduce the Footprint initiative, which emphasizes efficiently managing and using buildings and warehouse space, rather than all assets. Without a more comprehensive approach, as described above, federal agencies may not have the knowledge needed to maximize the value of their limited resources.

What GAO Recommends

OMB should take steps to improve information on asset management to reflect leading practices. OMB had no comments on this recommendation.