Organization and Functions

Capital Asset Policy, Planning, and Strategy (CAPPS) Service | Investment & Enterprise Development Service (IEDS) | Capital Asset Management Service (CAMS) | Capital Operations and Programs Service (COPPS)

Capital Asset Policy, Planning, and Strategy (CAPPS) Service - This service serves as the focal point for the development, and guidance of a cost-effective and flexible capital asset, acquisition, management, and disposal process for all types of capital investments. Specifically, the CAPPS Service will:

• Develop, recommend and promulgate Department capital asset policy by instituting a life cycle focus for investments, and ensuring all capital activities (from acquisition through disposal) are accomplished in concert with the Department's strategic vision and strategic management process. Policies will ensure consistency across the Department in investment strategy approaches and within programs and transactions.
• Establish an Investment Protocol (IP) to ensure a systematic and sound business analysis of proposed investments including standardized asset applications, verification of investment need, and guidance on the selection of the appropriate acquisition program. The IP will provide a prioritized structured decision tree to facilitate the determination of the most advantageous method for acquiring a capital asset.
• Develop and coordinate the Department's long-term Department Capital Asset Plan (CAP) and submitting the plan to OMB in support of the annual budget request. The CAP will streamline current interactions with OMB regarding capital issues, and serve as a vehicle for submission of required budget exhibits, 53 and 300.
• Develop a financing plan for the long-term CAP, which will consist of a mix of appropriated and non-appropriated funding, across all investment programs and all VA elements. The financing plan will be developed, in conjunction with the VA CAP, and coordinate VA's public and private endeavors.
• Set financing policy and strategy for private sector financing in order to minimize total cost to the federal government, which may involve many types of non-appropriated sources such as: bond financing; certificate of participation; local municipalities (financing); public backed financing; and special purpose or private purpose bond placements. Also, guidance and standardized language for financing structures for private and public asset development ventures will be provided.
• Set trust establishment policy and strategy by providing guidance and assistance in developing the appropriate business structure for the transaction (trusts), assuring that the consideration received meets Department business goals, and that the business commitments made by VA along with the financing plan are consistent with Department business objectives.
• Provide program specific guidance for investment categories by providing guidance and assistance in developing capital asset plans and processes for investment review that are compliant with directions from OMB, GAO, and Congress. Specific guidance will be issued for all capital investment programs (e.g., Non-Recurring Maintenance, Enhanced-Use, Energy Savings Performance Contracts, Leasing, Enhanced Sharing, Major and Minor Construction, etc.).
• Develop legislative proposals to provide flexibility to the Department in managing VA's assets. Activities may also include requesting clarifying language from Congress. Legislative activities will be coordinated with General Counsel and the Office of Congressional and Legislative Affairs.
• Ensure adherence to legislative requirements of GPRA, FASA, Clinger/Cohen, etc., by continuously monitoring the requirements of the legislation and against the products generated. Ensuring that required reports relating to capital asset management are submitted to OMB and Congress in a timely manner.
• Serve as liaison with OMB, GAO, Congress, Appropriating, and Authorizing Committees, and other interested parties with regard to the Department Capital Asset Plan. This office will serve as the Department's advocate for improved capital investments with OMB and Congress.

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Investment and Enterprise Development (IED) Service - This service provides technical assistance; tools and training; analytical and staff support to the SMC and CIO, and sets program specific guidelines and investment standards. Specifically, the IED Service will:

• Provide analytical support to the SMC and CIO Council by developing recommendations regarding capital allocation, ensuring coordination of capital planning efforts and significant capital investment initiatives, prioritizing, selecting, and monitoring significant capital investments, and supporting the CIO Council with respect to IT asset management related deliberations and ensuring linkage to the CIO on all IT matters.
• Manage Departmental asset initiatives, which are initiatives that establish a precedent in the manner by which the Department acquires, manages, and/or disposes its capital holdings or other initiatives identified as high visibility or significance within the Department. Provide guidance and direction regarding the implementation of below threshold asset management activities.
• Set financial standards and standards for investments by providing program-specific guidance and assistance on life-cycle cost terms and economic analysis (cost-benefit analysis, NPV, discount rates, inflation rates, etc.). Establish standards for valuing capital assets, consideration received, appropriate returns and profits with respect to private asset development efforts. Perform detailed review of proposed private venture financing arrangements.
• Set trust standards/administration by performing financial oversight to identify and quantify the benefits, costs, and liabilities (financial and legal) of proposed trust structures, and a detailed review of private venture agreements, ensuring that trusts are well managed and are in compliance with generally accepted financial standards.
• Provide technical assistance and training to the Administrations and staff offices in the development of all capital investment and asset management proposals, including determination of appropriate development mechanism or program, financial structure and analysis. Assist project managers with financial analysis of individual projects; gap analysis; and performance management of individual projects. Provide national training, field training and lessons learned sessions, including sessions at the Administration's planning conferences. Assist Administrations and staff offices in developing capital asset plans and processes that are compliant with directions from OMB, GAO, Congress, and Departmental priorities.
• Provide technical tools such as: 1) Capital Investment Methodology Guide (including guides to explain the use of the financial and other analysis templates); 2) standardized applications for data gathering and review; 3) develop and maintain financial and other analysis template in electronic format; and 4) inter/intranet sites with all relevant Capital Investment information (reference library; electronic templates; Methodology Guide and current application, FAQs and links to other relevant government sites). These tools include the development and maintenance of the web sites and analysis templates. Provide technical assistance on developing and implementing enhanced-use projects (e.g., business/concept plan development, public hearing, notice of designation, solicitation development. etc.). Develop primary liaison with financial institutions, developers, trade associations, and other development-related organizations relating to Department asset management tools and initiatives.
• Conduct market research and analysis to keep abreast of and maintain asset management techniques and strategies and monitor appropriate industries and markets for best practices and innovations.
• Ensure significant facility capital investments decisions support the Department's strategic plan goals and long-term Capital Asset Plan by issuing guidance and ensuring investment decision methodology reflect the appropriate linkage to the Department's strategic goals. Provide direction, review, and oversight of the use of capital asset management initiatives.
• Serve as liaison with OMB, GAO, and Congress between proposal originators and external entities, including appropriations and authorizing committees, and other interested parties with regard to individual capital investment proposals and overall capital policies.

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Capital Asset Management Service (CAMS) - This service establishes, analyzes, monitors, and manages VA's portfolio of capital assets. It establishes a performance management system, set asset utilization goals and standards for existing assets, and ensures financial integrity. Specifically, the CAM Service will:

• Establish, analyze, monitor, and manage VA's portfolio. Establish VA's portfolio by identifying new portfolio holdings and establishing a capital asset inventory of significant assets to identify utilization, cost/market value, size, location, physical assessment, historical status, contingent liabilities, etc. Analyze portfolio by conducting a baseline assessment of existing assets to determine VA's current investment status, commitments, and liabilities. Appropriate standards and/or benchmarks will be established based upon the portfolio analysis. Monitor portfolio by establishing performance goals and asset utilization standards. Manage portfolio by providing guidance on gap analysis, performance management, and asset disposal. Establish incentives for high performance. Monitor the cost of asset ownership as a measure of portfolio performance.
• Set asset utilization goals for VA capital asset, across all Administrations and staff offices by exploring all viable alternatives during the decision making process, including current use rate, cost of asset ownership, and other measures to use assets in the most cost effective manner. Develop Administration and Staff Office goals for land and building utilization.
• This Service will develop a comprehensive Department-wide performance management system to submit and track all types of new capital investment proposals in terms of cost, schedule, and performance. This activity will facilitate the Department's compliance with statutory requirements (i.e., Clinger-Cohen Act of 1996, OMB Circular No. A-11, FASA of 1994, GPRA of 1993, etc.). This Service will also issue routine performance reports and assist offices with appropriate corrective actions to enable them to meet or exceed established performance measures. The performance management approach will incorporate Earned Value methodology into investment tracking and monitoring to allow the Department to enter into early interventions for problematic investments.
• Set standards for existing assets (legacy) by establishing guidelines for the continuation of lease holdings, IT systems, private ventures, etc., to ensure the use of the asset is in the best interest of VA. A cost-benefit requirement will be established for on-going assets. In conjunction with the Administrations and staff offices, this CAM Service will develop guidance for the portfolio standards and the Administrations and staff offices will be responsible for meeting these standards. CAM Service will continuously evaluate and monitor the Department's status with regard to these standards and assist the Administrations and staff offices with corrective actions when appropriate.
• Ensure financial integrity by conducting routine financial reviews and analyses (audits) of different programs; providing financial expertise for transactions; ensuring transactions are undertaken in a legally consistent manner; assuring uniform application of benefits from the programs; assuring the Department's financial interests are protected; dealing with issues that arise in the privatization area (oversee the Department's various privatization programs and assure consistency in privatization approaches, minimize costs/risks of loss resulting from inconsistent applications); and providing trust management and administration. All technical audits and evaluations between the Assistant Secretary for Management (financial, procurement) and the Departmental CIO will be streamlined and fully coordinated

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