U.S. Department of State Fiscal Year 2019 Agency Financial Report

C onsistent with Section 3 of the OMB Memoran- dum-12-12, Promoting Efficient Spending to Support Agency Operations , and OMB Management Procedures Memorandum 2013-02, the “Reduce the Footprint” policy implementing guidance, all CFO Act entities must set annual targets to reduce the total square footage of their domestic office and warehouse inventory compared to the 2015 baseline. As a result, OMB is working in partnership with the GSA and other Federal agencies to right-size the Federal real property inventory. While some Department data is comparable to other agencies’ data, the Department functions as a service provider supporting U.S. Government agencies with overseas presence. This affects how the data is analyzed. Department service providers in domestic facilities provide overseas interagency support. Forty percent of U.S. direct-hire employees under Chief of Mission authority work for other agencies; most of them receive some direct service or management policy coordination from Department employees occupying domestic facilities. For example, the Department provides management services such as human resources, security, medical, diplomatic pouch and mail, financial management, real estate management, acquisition, information technology, contracting, and other services, to most agencies overseas. The Department’s overall Reduce the Footprint plan shows a slight increase from the 2015 baseline to 2018. The Department’s current plans anticipate that the portfolio will remain at or close to the 2015 baseline in the immediate future and no significant acquisitions or disposals are planned for 2020. The Department continues to actively seek opportunities to maximize efficiencies and co-locate staff in order to reduce the costs of leased space, while also retaining the necessary resources to support the mission. The Department strives for efficiency and best practices in its real estate program. The Department works closely with GSA on long-term strategic planning and housing for the Department’s domestic staff. Additionally, the Department has space allocation standards that reduce workstation sizes and limit the number of private offices, and is achieving improved utilization rates via increased densification. As the Department’s real property needs are mission-driven, it must be prepared for real world events that may require changes in its physical footprint. Whether it is reacting to immediate threats to our nation’s security, responding to natural disasters and public health emergencies, or engaging long-term in coalition building and supporting U.S. citizens overseas, the Department must have the necessary personnel and facilities to respond rapidly to changing requirements. The Department commits however, to improving utilization rates and accommodating additional personnel within its current portfolio to the maximum extent possible. The table “Reduce the Footprint Baseline Comparison” compares (1) the reported total square footage of Department- occupied assets and (2) the most recent annual operating costs associated with Department-owned assets to their respective 2015 baselines assigned by GSA. The operation and maintenance costs have been calculated from the 2015 Federal Real Property Profile data and include facilities other than office and warehouse space, such as data and training centers. The 2019 amounts are not available until after publication of the Agency Financial Report. Reduce the Footprint 2018 2015 Baseline Change Square Footage 7.2 7.0 0.2 2018 2015 Reported Cost Change Operation and Maintenance Costs $21.8 $22 ($0.2) REDUCE THE FOOTPRINT BASELINE COMPARISON (amounts in millions) 2019 A gency F inancial R eport U nited S tates D epartment of S tate | 155 REDUCE THE FOOTPRINT | OTHER INFORMATION