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OMB Memorandum No. 2015-01 issued the RTF policy. The Reduce the Footprint policy requires the Chief Financial Officers (CFO) Act agencies to submit annual Real Property Efficiency Plans (Plan) to OMB that: (1) set annual square foot (SF) reduction targets for federal domestic buildings over a rolling five-year period; (2) adopt an office space design standard to optimize federal domestic office space usage; and, (3) maintain agencies’ office and warehouse portfolios below their fiscal year (FY) 2015 RTF baselines. Under the RTF policy, OMB has established government-wide policy to use property as efficiently as possible and to reduce agency portfolios though annual reduction targets. The policy is an impetus for real property management transformation that will provide value to the taxpayer.
In FY 2018 agencies reduced their office and warehouse space by 3.87 million SF resulting in an estimated annual cost avoidance of $66 million. This brings the FY 2016 – FY 2018 results for the RTF policy to a 16.2 million SF reduction to office and warehouse space with an estimated annual cost avoidance of $166 million. The Administration continues to prioritize portfolio optimization as it prepares to issue the National Strategy for Real Property later this year, consistent with the President’s Management Agenda. Note that RTF reduction numbers could not be calculated for the Department of Defense (DoD) because the data it submitted to the Federal Real Property Profile (FRPP) was not of sufficient accuracy to support the calculation of its RTF portfolio relative to its RTF Baseline.
In FY 2016, the CFO Act agencies targeted a net reduction of 4.3 million SF from the 668 million RTF SF office and warehouse baseline. The actual reduction achieved in FY 2016 was 11.2 million SF, more than double the original target.
The FY 2016 net reduction of 11.2 million SF builds upon the 24.7 million net SF reduction achieved under the Freeze the Footprint (FTF) policy between FY 2013 and FY 2015. In FY 2017, the CFO Act agencies – not including the Department of Defense – targeted a net reduction of 3 million SF from the 668 million RTF SF office and warehouse baseline. The actual reduction achieved by the civilian CFO Act agencies in FY 2017 was 1.2 million SF. Note that RTF reduction numbers could not be calculated for DoD because the data it submitted to the FRPP was not of sufficient accuracy to support the calculation of its RTF portfolio relative to its RTF Baseline.
OMB and the U.S. General Services Administration (GSA) estimate that the FY 2016 – FY 2018 results for the RTF policy – a 16.2 million SF reduction to office and warehouse space – generates an estimated annual cost avoidance of $166 million. OMB and GSA anticipate further net reductions to the RTF office and warehouse baseline and generation of significant cost avoidance in future years.