Detailed Information on the
National Institutes of Health - Buildings and Facilities Assessment

Manage all B&F line item projects so they are completed within 100% of the final approved project cost.

Manage all B&F line item projects so they are completed within 100% of the final approved project cost.

[FY07] Maintain the condition of the buildings and facilities portfolio so that the average condition index is 85.

Maintain the annual condition of the buildings and facilities portfolio so that not less than 90% of occupied gross square feet will have a condition index greater than 65.

Manage all B&F line item projects so they are completed within 100% of the final approved project cost.

Manage all B&F line item projects so they are completed within 100% of the final approved project cost.

[FY08] Maintain the annual condition of the buildings and facilities portfolio so that not less than 91.5% of occupied gross square feet will have a condition index greater than 65.

Manage design and construction of capital facility projects funded by B&F so that no more than 10% of the projects may incorporate plus or minus 10% adjustments of the approved scope.

Manage all B&F line item projects so they are completed within 100% of the final approved project cost.

Manage all B&F line item projects so they are completed within 100% of the final approved project cost.

Manage design and construction of capital facility projects funded by B&F so that no more than 10% of the projects may incorporate plus or minus 10% adjustments of the approved scope.

Manage design and construction of capital facility projects funded by B&F so that no more than 10% of the projects may incorporate plus or minus 10% adjustments of the approved scope.

[FY09] Maintain the annual condition of the buildings and facilities portfolio so that not less than 73.8% of occupied gross square feet will have a condition index greater than 65.

[FY08] Maintain the condition of the buildings and facilities portfolio so that the average condition index is 85.

[FY09] Maintain the condition of the buildings and facilities portfolio so that the average condition index is 85.

Manage all B&F line item projects so they are completed within 100% of the final approved project cost.

[FY08] Manage all B&F line item projects so they are completed within 100% of the final approved project cost.

[FY09] Manage all B&F line item projects so they are completed within 100% of the final approved project cost.

[FY09] Manage design and construction of capital facility projects funded by B&F so that no more than 10% of the projects may incorporate plus or minus 10% adjustments of the approved scope.

[FY10] Maintain the annual condition of the buildings and facilities portfolio so that not less than 73.9% of occupied gross square feet will have a condition index greater than 65.

[FY10] Maintain the condition of the buildings and facilities portfolio so that the average condition index is 85.

[FY10] Manage all B&F line item projects so they are completed within 100% of the final approved project cost.

[FY10] Manage design and construction of capital facility projects funded by B&F so that no more than 10% of the projects may incorporate plus or minus 10% adjustments of the approved scope.

Manage all B&F line item projects so they are completed within 100% of the final approved project cost.

Manage design and construction of capital facility projects funded by B&F so that no more than 10% of the projects may incorporate plus or minus 10% adjustments of the approved scope.

Maintain the condition of the buildings and facilities portfolio so that the average condition index is 85.

Maintain the annual condition of the buildings and facilities portfolio so that not less than 88.5% of occupied gross square feet will have a condition index greater than 65.

Fully launch the Earned Value Management System and conduct Earned-Value Analyses to evaluate and assess major capital acquisition projects included in the NIH Real Estate Portfolio.

Manage design and construction of capital facility projects funded by B&F so that no more than 10% of the projects may incorporate plus or minus 10% adjustments of the approved scope.

Complete goal of ensuring that approved design and construction projects are executed on time, on scope, and on budget by implementing and monitoring an Earned Value Analysis and Management System.

[FY08] Manage design and construction of capital facility projects funded by B&F so that no more than 10% of the projects may incorporate plus or minus 10% adjustments of the approved scope.

Measure: Number of capital facility construction projects that are delivered on scope and within the approved budget.

Explanation:Design and construction processes are complex and vulnerable to outside influences. The goal is to manage projects so the planned scope of the project is completed within the approved budget and schedule. Thus the goal, POI-7, measures the total number of projects to be completed, the number of projects completed on-scope, and the number of projects completed on budget. (e.g. # projects/#on-scope/#on budget).

Measure: Manage design and construction of capital facility projects funded by B&F so that no more than 10% of the projects may incorporate plus or minus 10% adjustments of the approved scope.

Explanation:An annual measure toward achieving the long-term goal #1 focuses on the variance between the number of total projects planned for completion each year and the number of actual projects completed each year on-scope (# Projs/# On-scope). The variance should be <10% of projects. The total number of projects planned for completion will vary each year based on new resources received and the number completed the prior year; therefore outyear totals can not be estimated.

Measure: Manage all B&F line item projects so they are completed within 100% of the final approved project cost.

Explanation:An annual measure toward achieving the long-term goal #1 (POI-7) focuses on ensuring all projects are completed on-budget. The total number of projects planned for completion will vary each year based on new resources received and the number completed the prior year; therefore outyear totals can not be estimated.

Measure: Provide federal stewardship over existing federally owned real property by maintaining a weighted average Condition Index (CI) equal to or greater than 85.

Explanation:The intent of this goal (POI-6) is to maintain facilities in ready condition by addressing deferred maintenance risks. The program address deferred maintenance by measuring the condition of facilities (i.e., condition index (CI)) and the occupancy of facilities' gross square feet (GSF) (e.g. CI=85/GSF 95%).

Measure: By 2007, ensure that approved design and construction projects are executed on time, on scope, and on budget by implementing and monitoring an Earned Value Analysis and Management System.

Explanation:Long-term goal #2, POI-1, establishes an EVM system to provide an early warning of deviations from project plans and to quantify technical problems in cost and schedule terms. Once fully implemented, EVM will provide project managers with a tool and the information needed to improve construction management, reporting, tracking project performance, and intervening as necessary to ensure successful completion of a project. Targets: 2004 - Evaluate and assess existing project management systems and implement into a proof-of-concept version of NIHs EVAMS. 2005 - Implement a revised project management system that incorporates earned value analysis and management. 2006 - Fully launch the Earned Value Management System and conduct Earned-Value Analyses to evaluate and assess major capital acquisition projects included in the NIH Real Estate Portfolio. 2007 - Complete goal.

Is the program purpose clear?

Explanation: The purpose of the National Institutes of Health's (NIH) Buildings and Facilities (B&F) program is clear. Its purpose is to plan, design and construct facilities to support the current and emerging research requirements of NIH. The Public Health Service Act authorizes the Director of NIH: "(A) may acquire, construct, improve, repair, operate and maintain, at the site of such institutes and entities, laboratories, and other research facilities, other facilities, equipment, and other real or personal property, and (B) may acquire, ..., by lease or otherwise through the Administrator of General Services, buildings or parts of buildings in the District of Columbia or communities located adjacent to the District of Columbia for use for a period not to exceed ten years. Similarly, annual appropriations language provides for the "study, construction, renovation and acquisition of equipment for facilities ..., including the acquisition of real property." NIH's Office of Research Facilities' (ORF) steward responsibilities include providing safe, secure, sound, healthy, neat, and attractive facilities to support NIH's scientific objectives. "

Evidence: 1) Public Health Service Act - 42 USC §282(b)(4)(A)-(B) 2) FY 2005 Consolidated Appropriations Act - P.L. 108-447 3) NIH Annual Budget Congressional Justification - discussion of the B&F program 4) ORF Org Chart 5) ORF Mission Statement - http://orf.od.nih.gov/#mission

Does the program address a specific and existing problem, interest, or need?

Explanation: NIH's B&F program addresses specific and existing problems, interests, and needs. The program works with NIH researchers to address: a) integration of biology and advanced technologies, including new imaging modalities, computational biology, and nanotechnologies; b) public health concerns, including emerging infectious diseases and other diseases such as cancer and diabetes; c) translational research, including animal disease models in areas such as regenerative and reparative medicine; and d) clinical research, including vaccine development and testing at NIH facilities. The program's efforts are directed toward the specific facility and physical infrastructure requirements of NIH intramural research activities. The program works in tandem with NIH researchers to stay abreast of the technologies that biomedical researchers need and use, prepares for emerging and future needs, and ensures the facilities on NIH's campus have the necessary equipment, space, ventiliation systems, and labs to accomodate research.

Evidence: 1) NIH Strategic Plan for B&F (FY 2006-2010) 2) NIH Five Year B&F Plan (FY 2007-2011 estimates) 3) NIH Annual Budget Congressional Justification - highlights NIH's research priorities for the upcoming fiscal year as well as the B&F needs associated with some of those priorities, and general NIH B&F needs

Is the program designed so that it is not redundant or duplicative of any other Federal, state, local or private effort?

Explanation: The program is designed so that it is not redundant/duplicative of other efforts. Although others provide a similar function (e.g., maintaining Federal facilities), NIH facilities are explicitly planned, programmed, budgeted, designed, constructed, maintained, and operated to promote medical discoveries that improve health and save lives. NIH works with other federal and private entities in the delivery of services when it is cost effective or most efficient. NIH uses the Indian Health Service, the Army Corps of Engineers, the Naval Sea Logistics Center, the Department of Energy, and the General Services Administration for activities such as technical support, design and construction acquisition, maintenance of facilities, and energy conservation consultation. Private sector design and construction firms are often used in the delivery of facilities and NIH collaborates with local entities on topics such as planning and environmental issues. HHS' Office of Facility Management and Policy also provides leadership/direction to ensure a global perspective on Department-wide real property strategies.

Evidence: 1) Public Health Service Act - 42 USC §282(b)(4)(A)-(B) 2) FY 2005 Consolidated Appropriations Act - P.L. 108-447 3) NIH Annual Budget Congressional Justification - discussion of the B&F program 4) ORF Org Chart 5) ORF Mission Statement - orf.od.nih.gov/#mission 6) OFMP Mission Statement - www.hhs.gov/asam/ofmp 7) HHS memo on the formation of the Departmental Capital Investment Review Board

Is the program design free of major flaws that would limit the program's effectiveness or efficiency?

Explanation: The B&F program is free of major flaws that would limit its effectiveness or efficiency. The statute lays out the design of the program as acquiring, constructing, improving, repairing, operating, and maintaining facilities, equipment, and other real or personal property. Consistent with this overarching design, the program has a series of checks and balances to ensure the program is managed and carried out effectively and efficiently. The program uses a comprehensive strategic facilities planning process to identify and prioritize short- medium- and long-range facility requirements. This process is overseen by the NIH Facilities Advisory Committee and Facilities Work Group who act as advisors to the Executive Steering Committee, which includes the NIH Director, leadership of the Institutes and Centers, and a Funding Advisory Review Board. The Committee/Group use Facilities Condition Assessments to inform the planning process and to generate the 5-year B&F Plan, annual B&F funding plan, a Strategic Facilities Plan, and annual Strategic Facilities funding plan.

Evidence: 1) 5-Year B&F Plan 2) Annual B&F Funding Plan 3) Strategic Facilities Planning Process (Flow Chart) 4) Strategic Facilities Plan 5) Strategic Facilities Funding Plan 6) Facility Condition Assessment 7) Office of Research Facilities Standard Operating Procedures and Guidance

Is the program design effectively targeted so that resources will address the program's purpose directly and will reach intended beneficiaries?

Explanation: The program design is effectively targeted that resources reach intended beneficiaries and/or address the program's purpose directly. Intended beneficiaries are researchers/staff at the Institutes and Centers, those detailed to/contractors of NIH, and ultimately NIH grantees. Each uniquely addresses the program's purpose. NIH funds intramural research and clinical trials conducted on-campus. As a result, on-campus research labs, equipment, administrative space, animal holding facilities, etc. are needed. Intramural scientists are permitted to hire staff and purchase necessary equipment, supplies, etc. to help ensure that high-quality, relevant research is conducted. Also, the 5-year Strategic Facilities Plan identifies specific program requirements and proposed facility solutions to meet program requirements. Therefore, any appropriation is targeted to the specific needs, site, and facilities solutions. The majority of NIH's research dollars leave the campus in the form of grants to academic institutions. However, the completion of the grant receipt and review process requires the use of on-campus facilities.

Evidence: 1) Public Health Service Act - 42 USC §282(b)(4)(A)-(B) 2) FY 2005 Consolidated Appropriations Act - P.L. 108-447 3) Strategic Facilities Plan 4) NIH Annual Budget Congressional Justification - discussion of the B&F program 5) NIH Peer Review Process

Does the program have a limited number of specific long-term performance measures that focus on outcomes and meaningfully reflect the purpose of the program?

Explanation: The program has three representative goals that are consistent with its purpose: 1) Manage design/construction of NIH facilities so the approved scope of work is delivered on-budget (POI-7), 2) Ensure approved design/construction projects are executed on-time, on-scope, and on-budget by implementing an Earned Value Management System (POI-1), and 3) Provide responsible stewardship over NIH facilities by maintaining the condition of all NIH facilities and of all occupied gross square feet of space (POI-6).

Evidence: 1) See the Performance Measures Section for the complete text of the goals/measures 2) NIH Annual Performance Plan - The existing long-term Program Oversight and Improvement (POI) goal is POI-1. POI-6 and POI-7 will be added to the Performance Plan. 3) March 2, 2005 Federal Real Property Asset Management Memorandum and Guidance - Clay Johnson III, Deputy Director for Management, OMB 4) Since 2003, NIH has 28 representative research outcome goals as proxies for NIH's overall performance. These goals are specific to a disease or a definable problem, with reference to a metric and/or a date for progress/completion, and are on a continuum of risk and time (short-, medium-, long-term).

Does the program have ambitious targets and timeframes for its long-term measures?

Explanation: The program has ambitious targets and timeframes for its long-term measures. Goal #1, POI-7, has an ambitious target of delivering approved construction projects on-budget. Considering the scope of work, stakeholders, program requirements, construction costs, and conditions are established a few years before the project is fully constructed, the success of this goal is influenced by numerous outside factors. Goal #2, POI-1, began in 2004 and has an ambitious target of implementing an earned value management system by 2007. To develop a proof-of-concept, test the proof, transfer all the data from the old system to the new system, and fully implement the new system in three years is ambitious. Goal #3, POI-6, has an ambitious target of maintaining all NIH facilities and occupied square feet of space through 2010 at a condition that is ready for proper use. This is ambitious given the natural deterioration of facilities, especially those in use and maintaining a level of functionality, safety, structural soundness, and comfort.

Evidence: 1) See the Performance Measures Section for the complete text of the goals/measures 2) NIH Annual Performance Plan - The existing long-term Program Oversight and Improvement (POI) goal is POI-1. POI-6 and POI-7 will be added to the Performance Plan. 3) Condition Index description NOTE: 42.5% of the gross square footage of NIH's facilities is more than 25 years old and 25% is less than 10 years old. Every year to offset the expected depreciation/degradation of facility mechanical, electrical, life safety, enclosure, and conveyance systems, NIH estimates an investment of between 2 to 4% of the replacement value could be justified. Maintaining the overall condition of the portfolio and simultaneously addressing the worst deficiencies within budget levels is ambitious. Maintaining an assessment score of Condition Index=85, given these conditions, is highly ambitious.

Does the program have a limited number of specific annual performance measures that can demonstrate progress toward achieving the program's long-term goals?

Explanation: Each of the long term measures has specific annual measures that demonstrate progress toward achieving the program's long term goals. For the first long-term goal, annual measures require continued monitoring to ensure the actual costs of each B&F project are within the approved budget. For the second long-term goal, the annual measures are to: evaluate and assess existing project management systems, pilot test the Earned Value Management System (EVM), fully launch EVM, and use the system to provide on-going and summary program data. For the third long-term goal, annual measures require continued monitoring of the utility of NIH facilities in relation to the Condition Index.

Evidence: 1) See the Performance Measures Section for the complete text of the goals/measures 2) NIH Annual Performance Plan - existing long-term goal POI-1; others to be added

Does the program have baselines and ambitious targets for its annual measures?

Explanation: NIH has baselines and ambitious targets for its annual measures. The targets for the annual measures associated with long-term goal number one measures the number of total active projects, projects completed on-scope, and projects completed on-budget. This is ambitious and it will require close management of projects to assure completion is consistent with the budget and with the scope of the approved project. The targets for the annual measure associated with long-term goal number two are specific milestone steps in the implementation of its information management system. The targets for the annual measures associated with long-term goal number three will measure the condition of the entire portfolio annually at a condition index level of 85 and the gross square feet condition index at greater than 65. The annual targets are ambitious given the natural deterioration of facilities.

Evidence: 1) See the Performance Measures Section for the complete text of goals/measures 2) NIH Annual Performance Plan - existing long-term goal POI-1; others to be added 3) Condition Index description

Do all partners (including grantees, sub-grantees, contractors, cost-sharing partners, and other government partners) commit to and work toward the annual and/or long-term goals of the program?

Explanation: The B&F planning and construction program involves many partners who work to accomplish its goals. ORF is NIH's facilities program steward. Project officers, contracting officers, senior ORF managers, and architectural/engineering consultants develop plans and execute projects. ORF's Division of Facilities Planning leads planning efforts. The NIH Facilities Working Group oversees the strategic facilities planning process and provides advice to the NIH Leadership and Director while also adjusting priorities as necessary to deal with appropriations action, public health challenges, and national priorities. NIH often works with other Federal, State and local planning agencies to ensure consistency and compliance with regional plans, including the National Capital Planning Commission, Environmental Protection departments, and Maryland National Capital Park and Planning Commission.

Evidence: Sample Architect/Engineer, Developer Manager and Construction Contracts

Are independent evaluations of sufficient scope and quality conducted on a regular basis or as needed to support program improvements and evaluate effectiveness and relevance to the problem, interest, or need?

Explanation: Independent evaluations of sufficient scope and quality are conducted as needed to support program improvements. Examples of independent evaluations conducted on an as-needed basis for specific projects are the 2004 HHS Inspector General's review of the Clinical Research Center project, which was to determine what caused the cost overruns of $145 million to be sufficient to complete the project and to determine if recent projects experienced cost increases. Also, the Army Corps of Engineers conducted a review in 1991 of NIH's revitalization plan. In addition, NIH has received several certificates of distinction on specific areas of the B&F program.

Evidence: 1) Quality Management System Certification of Compliance - November 19, 2002 2) IG Report, Clinical Research Center - February 2004 3) U.S. Army Corps of Engineers review of the NIH Revitalization Plan - November 1991 4) Request to GSA for Independent Review - May 31, 2005

Are Budget requests explicitly tied to accomplishment of the annual and long-term performance goals, and are the resource needs presented in a complete and transparent manner in the program's budget?

Explanation: At this time, NIH's budget presentation does not explicitly tie budget resource levels to annual targets, long-term performance goals, and their impact on research/the state of science. The budget requests do not show how much it would cost to achieve performance results pertaining to POI-1 (POI-6 and POI-7 are newly developed goals and are not being considered in the response to this question) nor do they detail how funding increases or decreases would impact NIH's ability to implement and monitor an Earned Value Management System (EVM) to ensure facilities projects are executed on-time, on-scope, and on-budget. The requests also do not indicate how having EVM will enhance NIH-funded research.

Evidence: NIH Annual Budget Congressional Justification

Has the program taken meaningful steps to correct its strategic planning deficiencies?

Explanation: Currently, NIH does not have a plan to address how the agency would revamp its budget requests for B&F to explicitly tie the accomplishment of goals to resource levels.

Evidence:  

Has the agency/program conducted a recent, meaningful, credible analysis of alternatives that includes trade-offs between cost, schedule, risk, and performance goals, and used the results to guide the resulting activity?

Explanation: From planning through operations, NIH conducts meaningful, credible analyses of program alternatives and tradeoffs, scenario planning to assess alternative strategies for meeting program needs, business case studies to validate the best value for options selected, assessments to support mitigation of potential risks to achieving cost, schedule and performance goals, and independent reviews for confirmation of selected strategies and activities to support them. In the Concept Study for the South Quad and Animal Research Center, Oudens + Knoop Architects PC determined that the single story animal facility makes inefficient use of its site, is obsolete, and exceeds its useful lifespan. The Study also explored options for the development of the Animal Research Center so that research labs might be constructed and demolition of the current site. Oudens + Knoop Architects also conducted a Best Use Analysis on the Gerontology Research Center on the Bayview Campus in Baltimore. The Report represents the current conditions, concept design options, and "mothballing" of the existing site.

Evidence: 1) Concept Study for the South Quad and Animal Research Center - Draft September 2004 2) Best Use Analysis Gerontology Research Center - Draft January 2005

Does the agency regularly collect timely and credible performance information, including information from key program partners, and use it to manage the program and improve performance?

Explanation: ORF regularly collects and uses timely and credible performance information to manage the program. Performance information is provided by the program and from outside contractors. The program is guided by NIH-wide Performance Management (PM), which assesses and improves service delivery in ORF and other offices. PM supports the President's Management Agenda and uses a Balanced Scorecard to regularly assess the efficiency/effectiveness of project delivery and evaluate internal business processes, financial performance, learning and growth, and customer satisfaction. NIH also monitors individual projects with the aim of delivering them on-scope, on-budget, and on-time. Further, NIH ensures contractor commitments are met. In February 2005, Higgins Development Partners' evaluation of Porter Neuroscience Center projects determined NIH should consider alternative means of architecture/engineering services, due to the contractors schedule deficiencies (which would seriously alter deadlines/costs without tighter oversight and management). NIH used this recommendation to work more closely with the firm to move timelines/costs closer to original estimates.

Evidence: 1) ORF Service's Hierarchy 2) NIH Building Permit Process (Project Early Notification and Design Review), including Project Review Plan Flow Chart 3) Variance Request Procedures and Form 4) Mechanical, Electrical, Architectural and High Containment Focus Group Meeting Agenda and Minutes 5) Higgins Development Partners, Porter Neuroscience Research Center Action Plan - to improve performance

Are Federal managers and program partners (including grantees, sub-grantees, contractors, cost-sharing partners, and other government partners) held accountable for cost, schedule and performance results?

Explanation: NIH uses three primary means of holding federal managers/program partners accountable for cost, schedule, and performance results: annual manager's performance contracts/performance plans, 2) project steering committees, 3) the HHS Form 300, and 4) the specific design/construction contracts. E.g., since FY2002 the annual performance plans/contracts for the Deputy Director for Management (DDM), the Directors of the Division of Capital Projects Management and Division of Policy and Program Assessment within ORF, the federal managers with line accountability to the DDM and responsibility for facilities, and Project Officers have included a performance element(s) related to cost, schedule, and performance or requirements associated with GPRA goals to implement an earned value analysis system. Also, the Form 300 also establishes the project scope, budget, funding sources, and schedule. This information is the base from which the project performance is measured and is signed y the NIH individuals responsible for project success.

Evidence: 1) Higgins Development Partners, Porter Neuroscience Research Center Action Plan - to improve performance 2) Project Steering Committee Charter 3) Sample 2004 Design, Construction, and Performance Contracts - include specific language and clauses for cost and time performance (Deputy Director for Management; Director of ORF; Director, Division of Capital Project Management; Director, Division of Policy and Program Assessment; Director, Division of Facilities Planning) 4) HHS Form 300 - Facility Project Approval Agreement 5) NIH Federal Projects Management and Oversight Process - Matrix and Descriptive Sheet

Are funds (Federal and partners') obligated in a timely manner and spent for the intended purpose?

Explanation: Federal funds are obligated in a timely manner and spent for the intended purpose. The obligation of funds is driven by the design, construction, and procurement processes for B&F projects. The phasing and typical duration of these processes result in expenditures that span multiple years. Generally, funds appropriated for these programs are "no-year" dollars. All projects are evaluated regularly for timely obligations and use of funds for the intended purpose. Monthly expenditure reports that track budgets, availability of funds, and expenditures (obligations and disbursements) are distributed to senior leadership and specific program managers for review and action. Status reports are provided at the Office of Research Facilities Director's Briefs to ensure timely obligations and appropriate use of funds. Constuction projects may take from two-six years to complete and several years to obligate and disburse. As a result, NIH carries forward balances from one fiscal year to the next. NIH has begun to spend down these balances. Its carryover into FY 2004 was $509 million and $296 million into FY 2005. NIH plans to continue reducing the balance; best projections to-date indicate NIH will likely carryover $xx million into FY 2006.

Evidence: 1) OMB Circular A-11, Part 7 2) B&F Monthly Financial Status Report 3) Monthly Office of Research Facilities Director's Brief meeting 4) Project Status Update Note: In 2003 NIH estimated the Clinical Research Center to be several million dollars below the final cost. NIH made leadership/overall management/oversight changes to address the deficiencies that caused the cost overrun.

Does the program have procedures (e.g. competitive sourcing/cost comparisons, IT improvements, appropriate incentives) to measure and achieve efficiencies and cost effectiveness in program execution?

Explanation: NIH strives to achieve measurable increases in the effectiveness of the B&F program. E.g., 1) a competitive sourcing/cost comparison (A-76) of design/construction project management services, 2) implementation of an IT system to support project management, and 3) external review of the effectiveness of the procurement function. Final decisions regarding NIH's successful competition for the project management service competition are expected in Fall 2005. NIH recently evaluated the efficiency/effectiveness of its Facility Information Management System (FIMS) used to monitor and track real property inventories, and the legacy Project Information Network system for management of design/construction projects. Because the legacy system could no longer support NIH project monitoring/reporting requirements, the best value options were selected to replace each system. Archibus, a commercial of-the-shelf (COTS) Computer Aided Facility Management System that provides essential space/data tools required to manage real property inventories will replace FIMS by FY 2007. External review of the effectiveness of NIH's procurement function occurs annually.

Evidence: 1) Performance Work Statement - to conduct a cost competition (A-76) for real property management services 2) FY 2004 Business Case on FIMS, which concludes FIMS does not meet current lease and space management needs - replace FIMS with COTS Archibus 3) FY 2005 Business Case on Project Information Network, which highlights an FY 2003 study that concluded the Network was no longer meeting ORF's needs - replace Network with COTS Constructware

Does the program collaborate and coordinate effectively with related programs?

Explanation: The program collaborates and coordinates effectively with related programs/partners within HHS, other government agencies, regulatory entities, and the private sector. The program works closely with HHS and its agencies to develop program policy, improve management practices, and establish performance goals, including maintaining the NIH Design Policy and Guidelines. Also, NIH participated with CDC in writing the Bio-safety in Microbiological and Biomedical Laboratories 5th Edition, which is based on lessons learned, advances in biomedical science, emerging technologies and emerging infectious diseases. NIH is one of 25 federal sponsors and members of the Federal Facilities Council standing committee that ensures regular interchange of information between private and public organizations and provides a forum to share interests/responsibilities related to facility design, acquisition, management, maintenance, evaluation, and industry-wide programs. The Director of NIH participates in quarterly HHS-wide meetings and NIH staff are members of technical committees established to address policies, procedures, and guidelines aimed at efficient/effective delivery of capital assets. The program also works closely with colleges, universities, and regulatory bodies.

Evidence: 1) NIH Design Policy and Guidelines - orf.od.nih.gov/policy/policy-index.htm 2) HHS Facilities Manual, Volume I: Facilities Planning, Design, & Constr. - www.hhs.gov/hhsmanuals/phsmanual.html 3) Dptmtl Real Property Perf. Meas. Working Group Cmte List 4) Fedl Fac. Council & Standing Cmtes - www7.nationalacademies.org/ffc/About_the_FFC.html; www7.nationalacademies.org/ffc/FFC_Standing_Committees.html; 5) BMBL 4th Edition Only - bmbl.od.nih.gov/; www.cdc.gov/od/ohs/pdffiles/4th%20BMBL.pdf

Does the program use strong financial management practices?

Explanation: While the B&F program maintains strong financial management practices, both HHS's and NIH's overall financial statements revealed weaknesses. A FY 2004 Ernst & Young audit of HHS financial statements reported that HHS had serious internal control weaknesses in its financial systems and processes for producing financial statements. These weaknesses were considered to be material. The audit recommended that HHS improve its reconciliations, financial analysis, and other key controls. The audit also cited NIH-specific needed improvements following the launch of the Oracle General Ledger portion of its New Business System (NBS). "Although the Oracle General Ledger became the official accounting system of record during the second quarter of FY 2004, [Ernst & Young] noted certain issues related to NBS that did not fully comply with the [Federal Financial Management Improvement Act of 1996]." E.g., certain parts of the statement preparation process continue to be manually intensive, time consuming, and prone to error, and the NBS does not allow NIH to track manual or non-routine entries.

Evidence: 1) HHS FY 2004 Performance and Accountability Report - December 8, 2004 2) NIH Delegation of Fiscal Authority Managers for FY 2005 - memorandum 3) B&F Commitment Registers - December 31, 2004 4) B&F Monthly Financial Status Summary Report - January 31, 2005

Has the program taken meaningful steps to address its management deficiencies?

Explanation: The FY 2004 HHS audit highlighted NIH specific areas of needed improvement. As of the completion of the audit in December 2004, NIH had already corrected some deficiencies, including correcting discrepancies totaling $27.5 million between its New Business System general ledger and the previous Data Warehouse. Also, NIH restructured its facilities program so it could address a very large competition study, consolidated responsibility for all real estate and facility planning and operations, and recognized weaknesses in certain internal processes and controls. This occurred concurrently with the creation of the Office of Facility Management and Policy within HHS and the HHS Capital Facilities Investment Review Board. In addition, HHS is in the process of rolling out its Unified Financial Management System (UFMS), with full implementation expected in FY 2007. With UFMS, HHS will be able to standardize business processes for core functions including general ledger, accounts payable, accounts receivable, cost management, budget execution, and financial reporting.

Evidence: HHS FY 2004 Performance and Accountability Report - December 8, 2004

Is the program managed by maintaining clearly defined deliverables, capability/performance characteristics, and appropriate, credible cost and schedule goals?

Explanation: The program is managed by maintaining clearly defined deliverables. There are critical milestones that guide program management: planning, design, construction, commissioning to occupancy, and continued capital stewardship. The management framework within which this occurs is defined in the Federal-Projects Management and Oversight Process document, which clearly establishes who is responsible and critical decision points in the facility development process--at which a go/no-go/go-back decision is required. Annually the program assigns responsibility for managing the resources of specific B&F projects to Fiscal Authority Managers and monthly receives status reports. Also, as a project progresses contracts are developed. Contracts include the final negotiated cost, schedule, plans, and specifications. Project designs are reviewed at each phase under the NIH Permitting Process that validates compliance with NIH Design Policy and Guidelines and Judgment on the status of the project's cost and schedule are derived using an Earned Value Management System.

Evidence: 1) NIH Federal-Projects Management and Oversight Process Document 2) Program of Requirement Document 3) Form 300 4) Contracts 5) Monthly Status Reports 6) Annual Delegation of Fiscal Authority Managers - January 28, 2005 memorandum 7) Design and Construction Schedule

Has the program demonstrated adequate progress in achieving its long-term performance goals?

Explanation: All three long-term goals are on track. Markers for progress for new long-term goal #1 (POI-7) include the formation of an integrated project team, pre-project planning to manage potential risks, acquisition planning, and construction management and quality assurance programs. Markers for long-term goal #2 (POI-1) include the establishment of policies and procedures to identify data needed for evaluation and the testing of the Earned Value Management System proof-of-concept. For long-term goal #3 (POI-6) the markers include adoption of facility condition assessment protocol, updates to the assessment, and modification of prior year repair plan in light of actual appropriation levels.

Evidence: NIH Annual Budget Congressional Justification, including Annual Performance Plan

Does the program (including program partners) achieve its annual performance goals?

Explanation: For annual measures associated with long-term goal #1 (POI-7), the program accomplished the goal of completing projects on-time, on-budget, and on-scope in FY 2004. The goal now is to manage the portfolio so that federal funds and the completion of projects are closely managed. For annual measures associated with long-term goal #2 (POI-1), the program has instituted policies and procedures to identify data needed for evaluation (FY 2004), pilot-tested the proof of concept of the System (FY 2005), and will begin implementation of the System (FY 2006). For annual measures associated with long-term goal #3 (POI-6), the program is maintaining facilities at average Condition Index (CI) level of 85 (Good) and total occupied square feet of space at a CI level greater than 65. Baseline accomplishment was achieved in FY 2004 and the goal now is to maintain this level of condition with relatively sustained levels of funding.

Evidence: NIH Annual Budget Congressional Justification, including Annual Performance Plan

Does the program demonstrate improved efficiencies or cost effectiveness in achieving program goals each year?

Explanation: Cost effectiveness improvements have been achieved for long-term goal #1 and its annual measures (Manage design and construction of capital projects funded by the B&F appropriation so that HHS and congressionally approved scope of work is delivered on budget). NIH performs its facility condition assessments on a 3-year cycle. Contracts are put in place that effectively locks the price of the assessments in for each cycle. Given the fact that the incumbent contractor was familiar with NIH facilities, a cost reduction of 18% was realized for the second cycle of assessments. These savings will be realized through FY2007. Through implementation of more efficient management controls and better utilization of staff, costs to manage design and construction projects that support improvements have declined. Based on projected workloads, the cost to manage a dollar of design and construction was reduced by approximately 9% in FY 2005 from FY 2004.

Evidence: 1) Contract - shows doing facility condition indexing cheaper 2) Rate Study 3) FY2004 Organizational Rates 4) FY2005 Organizational Rates 5) NIH Annual Budget Congressional Justification, including Annual Performance Plan

Does the performance of this program compare favorably to other programs, including government, private, etc., with similar purpose and goals?

Explanation: This program compares favorably to others with similar purposes and goals. NIH, like CDC, IHS, and FDA, develops program specific design policies/guidelines and operational plans for use in programming, designing, constructing, and managing new buildings and major and minor alterations on-time, on-budget and within the approved scope. However, unlike these organizations, NIH facility program management procedures are International Standards Organization certified, similar to the Army Corp of Engineers and many companies in the private sector. The NIH Design Policy and Guidelines (DPG) is a recognized industry standard for research facilities. The American Institutes of Architects (AIA) used NIH's DPG to develop its Guidelines for Planning and Design of Biomedical Research Laboratory Facilities. NIH grantees use the program's DPG as guiding principles for projects constructed under the Extramural Construction Program. NIH is also recognized internationally for its Bio-Environmental Engineering Research Program, which set numerous national/international standards for better indoor air quality and greater energy conservation.

Evidence: 1) NIH Design Policy and Guidelines 2) AIA Guidelines for Planning and Design of Biomedical Research Laboratory Facilities 3) FFC Adding Value to the Facility Acquisition Process, Best Practices for Reviewing Facility Design WWW7.NATIONALACADEMIES.ORG/FFC/FFC_REPORTS_LIST.HTML

Do independent evaluations of sufficient scope and quality indicate that the program is effective and achieving results?

Explanation: Existing independent evaluations indicate the program is effective and achieving results. For example, the 2004 HHS Inspector General's review of the Clinical Research Center looked at the causes of the cost increases, reviewed the cost management on other NIH construction projects, and determined lessons learned that may help strengthen controls and improve accountability on future construction projects. The review found that other recent large NIH construction projects have not experienced significant budget increases and that their budgets appear to have been properly managed. NIH has subsequently implemented a number of project management tools, including the Construction Industry Institute's Project Delivery and Contract Strategy tool and Project Definition Rating Index tool.

Evidence: 1) IG Report, Clinical Research Center - February 2004 2) Quality Management System Certification of Compliance - November 19, 2002 3) U.S. Army Corps of Engineers review of the NIH Revitalization Plan - November 1991 4) Request to GSA for Independent Review - May 31, 2005

Were program goals achieved within budgeted costs and established schedules?

Explanation: Program goals were achieved within budgeted costs and established schedules. Goal #2 (POI-1) to ensure that approved design and construction projects are executed on time, on scope, and on budget by implementing an Earned Value Management System is close to completion and has been within budget and on schedule. It is curently on track. Goal #1 (POI-7) to manage design and construction of capital facility projects funded by the program so the HHS and congressionally approved scope of work is delivered on-budget also is on track.

Evidence: 1) NIH Annual Budget Congressional Justification, including the Annual Performance Plan 2) Existing long-term goal; Newly developed long-term goals 3) Baseline data for goals