Driving better results for facility management project budgeting

Challenge

A federal agency with more than 500 facility locations across the United States and abroad needed help refining and tracking their budgets for all projects across their facility portfolio—during a period of heightened interest given a planned major relocation and headquarters-level consolidation for over 5,000 staff.

 

Approach

Guidehouse was the agency’s chosen partner. Guidehouse fulfilled the agency’s financial management service requirements, which included:

• Building an interdisciplinary facilities management strategy that would emphasize fiscal impact and cover relocations, consolidations, and decommissioning of underutilized space
• Developing the required business cases needed to justify facility projects, including personnel counts, business need, financial payback periods, and an analysis of alternatives
• Identifying cost reduction initiatives at the individual project and national portfolio levels
• Projecting and prioritizing future project and portfolio planning
• Tracking ongoing project costs against obligated funding
• Reviewing independent cost estimates against agency requirements
• Determining, requesting, and providing backup for normal maintenance, operation, and utility allowances for subsequent fiscal years
• Closing out projects, de-obligating excess funding, and coordinating required filing for rent commencement and termination

 

Impact

Guidehouse improved defense facility budgeting with an interdisciplinary strategy—boosting accuracy, cutting waste, and aligning with strategic goals.

• Facilities managed: 500+
• Personnel impact: 5,000+
• Funds recovered: $80M  

From inception through build-out, move-in, and occupancy, we provided continuous strategic project budgeting and financial support. Financial data and analysis delivery included tracking, reporting, and submitting project budget data and identifying possible funding gaps. Our team validated budgetary resources against existing appropriations and apportionments, providing agency leaders with accurate budgetary financial information at the project, program, and executive levels. By monitoring spending throughout the fiscal year and continuously reevaluating project estimates, we ensured that projects stayed within budget limitations and were prepared for any budgetary rightsizing that would result in defunding or additional needs.

We also evaluated accounting and budgetary processes and internal controls against industry-leading best practices. This led to Guidehouse applying a reimbursable work authorization fund recovery methodology to de-obligate funding and recoup nearly $80 million in unused funding over four years. This funding supported otherwise unfunded agency requirements and helped avoid personnel furloughs while weathering deep federal budget cuts. We closely monitored open lines on the undelivered orders list, tracked General Services Administration financial activity, coordinated monthly meetings with officials from its central office, and expanded the process to scrutinize all open orders.

As this agency expanded its capabilities and geographic footprint in some areas while closing out leased facilities in others in response to evolving mission requirements and fiscal constraints, we continued to leverage our deep understanding of its business, finances, mission areas, data, and end-to-end processes to provide total project budgeting services.