TREASURY DIRECTIVE: 72-02

Date: January 16, 1992

Sunset Review: TBD

Expiration Date: TBD

SUBJECT: Acquisition, Utilization, and Disposal of Treasury Real Property Assets

1. PURPOSE. This directive establishes policy and responsibility for the acquisition, utilization and disposal of Treasury real property assets in accordance with Federal Property Management Regulations (FPMR).

2. SCOPE. This directive applies to all bureaus, the Departmental Offices (DO), and the Office of Inspector General, with regard to custody of Treasury real property.

3. POLICY. It is the policy of the Department of the Treasury that:

a. real property and interests therein shall be acquired in accordance with applicable authorities, only as necessary and no larger than necessary, to carry out effective program operations. Property prices or lease rates, as well as costs of moving, occupancy, efficiency of operations, environmental effects, regional planning, and employee morale factors should be considered in making these determinations; and

b. real property holdings under Treasury control are fully utilized and put to optimum use. Systematic, thorough reviews of real property holdings shall be conducted at least annually to categorize and identify property which is not needed, underutilized, or is not being put to its optimum use. Real property identified as not needed shall be promptly reported and released in accordance with the policies established by the Office of Management and Budget (OMB), the General Services Administration (GSA) and Department of the Treasury regulations.

4. BACKGROUND. Executive Order (E.O.) 12411, "Government Work Space Management Reforms," dated March 29, 1983, recognizes the importance of reducing the amount and cost of Federal work space, while ensuring that work space is effectively used to support agency missions. E.O. 12512, "Federal Real Property Management," dated April 29, 1985, reinforces the accountability and responsibility of agency heads for managing real property assets. These E.O.s authorize the Administrator of General Services to provide Government wide policy oversight and guidance for Federal real property management and to establish procedures, guidelines, and regulations to assist agencies in managing real property assets.

5. RESPONSIBILITIES.

a. The Assistant Secretary (Management)/Chief Financial Officer has Departmentwide responsibility for acquisition, utilization, and disposal of Treasury real property.

b. The Deputy Assistant Secretary (Departmental Finance and Management) shall approve:

(1) bureau proposals to acquire or dispose of Treasury real property; and

(2) reports required by OMB or GSA pertaining to acquisition, utilization, or disposal of Treasury real property.

c. The Director, Office of Management Support Systems (OMSS), DO, shall:

(1) ensure that appropriate Departmental procedures, reviews, and reporting requirements are developed and maintained in accordance with applicable OMB and GSA regulations and Treasury directives pertaining to acquisition, utilization and disposal of real property;

(2) provide recommendations to the Deputy Assistant Secretary (Departmental Finance and Management) for approval or disapproval of bureau proposals to acquire, utilize or dispose of real property;

(3) review bureau real property acquisition, utilization and disposal proposals to determine technical feasibility and compliance with applicable laws, regulations and other directives. Proposals shall be coordinated at the Departmental level and comments incorporated in an overall evaluation and recommendation to the Deputy Assistant Secretary (Departmental Finance and Management) through the Director, OMSS. Coordination and consultation shall be made with the following DO officials, and others, as appropriate:

(a) bureau supervising officials;

(b) Director, Office of Finance;

(c) Director, Office of Procurement; and

(d) Director, Office of Security;

(4) submit bureau, DO, and OIG proposals requiring a delegation of authority to GSA;

(5) conduct periodic utilization surveys of Treasury real property to identify properties which are underutilized or not being put to optimum use;

(6) stimulate the initiation of bureau-level planning for the improved utilization of underutilized real property, and provide technical guidance in the determination of real property needs; and

(7) provide reports pertaining to Treasury real property acquisitions, utilization, and disposals to OMB, GSA, and the Congress, as required.

d. The Deputy Assistant Secretary (Administration), Heads of Bureaus, and the Inspector General, as it relates to their respective bureaus and offices, shall:

(1) establish internal policies and systems of accountability to ensure effective use of real property assets in support of mission-related activities;

(2) periodically review and conduct surveys of such property in accordance with standards and procedures determined by the Administrator of General Services; and

(3) ensure that annual surveys are made of all bureau real property by using the guidelines and procedures promulgated by GSA and Treasury, and that records of these surveys are maintained;

(4) establish annual real property management improvement goals and plans, in accordance with procedures promulgated by GSA and amplified by Treasury directives;

(5) report promptly to the Deputy Assistant Secretary (Departmental Finance and Management), through the Director, OMSS, any real property which is found to be in excess of bureau needs, underutilized, or not put to optimum use;

(6) provide, upon request, the records of annual surveys, cost and operational information to the Director, OMSS to assist in the efficient completion of periodic Treasury utilization reviews and evaluations of acquisition and disposal proposals;

(7) provide information needed by the Director, OMSS for making cyclical and periodic reports required by OMB, GSA and the Congress, concerning Treasury real property acquisitions, utilization, and disposals; and

(8) submit proposals (including those requiring a delegation of authority from GSA) to acquire or dispose of real property to the Deputy Assistant Secretary (Departmental Finance and Management) through the Director, OMSS for review and approval.

6. DEFINITIONS.

a. Acquisition. The process by which an executive agency obtains custody of and interest in real property by means of transfer, purchase, construction, lease or permit for its own use in carrying out established agency mission(s).

b. Delegation of Authority. Authority delegated to the Secretary of the Treasury from the Administrator of General Services to acquire real property by lease or construction.

c. Disposal. The process by which an executive agency releases custody of or interests in real property no longer needed for its use.

d. Real Property. Land and improvements constructed on or associated with that land. Improvements include buildings, other permanent structures, easements or rights-of-way.

e. Optimum Use, Not Being Put To. If all or a portion of real property, with or without improvement, is:

(1) found suitable for a significantly higher or better use because of its nature, value or location; or

(2) the cost of operating and maintaining such property is substantially higher than those costs for other suitable property that could be made available to Treasury through transfer, purchase, lease, or permit.

f. Utilization. The manner and degree of efficiency with which real property controlled by Treasury is used in the accomplishment of its mission(s).

g. Underutilized. Whenever all or a portion of real property, with or without improvement, is used only for irregular periods, or intermittently; or when a portion of the property can satisfy current program needs.

7. CANCELLATION. Treasury Directive (TD) 72-02, "Acquisition, Utilization and Disposal of Treasury Real Property," dated January 29, 1987, is superseded.

8. REFERENCES.

a. FPMR Part 101-3, "Annual Real Property Inventories."

b. FPMR Part 101-18, "Acquisition of Real Property."

c. FPMR Part 101-47, "Utilization and Disposal of Real Property."

d. TD 72-03, "Location of New Offices and Facilities in Rural Areas."

e. TD 75-01, "Department of the Treasury Historic Preservation Program."

f. TD 75-02, "Department of the Treasury Environmental Quality Program."

g. TD 75-03, "Environmental Effects Abroad of Major Department of the Treasury Actions."

9. AUTHORITIES.

a. E.O. 12512, "Federal Real Property Management," dated April 29, 1985, (50 FR 18453, 3 CFR, 1985 Comp., p. 340).

b. E.O. 12411, Government Work Space Management Reforms," dated March 29, 1983, (48 FR 13391, 3 CFR, 1983 Comp., p. 155).

c. Federal Property and Administrative Services Act of 1949, 63 Stat. 377, as amended.

d. FPMR Temporary Regulation D-75, "Government wide Real Property Asset Management," dated August 2, 1991.

10. OFFICE OF PRIMARY INTEREST. Office of Management Support Systems, Management Programs Directorate, Office of the Deputy Assistant Secretary (Departmental Finance and Management), Office of the Assistant Secretary (Management)/Chief Financial Officer.

David M. Nummy

Assistant Secretary (Management)/Chief Financial Officer