PRIORITIZING PROJECTS FOR THE PBS FY2012 PROGRAM -

The projects in our FY 2012 capital program are critical investment needs for the country and our tenant agencies. GSA utilizes a detailed asset analysis strategy to drive investment decisions. This plan prioritizes known critical tenant agency

requirements and building infrastructure needs based on the following criteria:

• Mission urgency;

• Physical condition of the asset;

• High-performance features, concentrating on energy conservation and renewable energy generation;

• Project timing and execution;

• Improving asset utilization and making better use of our existing inventory;

• Return on investment;

• Avoiding lease costs; and

• Historic significance.

These practices and policies, developed through many years of experience, ensure that GSA strategically invests limited resources in projects that maximize taxpayer value. The projects in our FY2012 program support PBS' portfolio objectives of maintaining well functioning buildings and safeguarding the health and life-safety of their occupants.

Many of these projects have been funded partly through previous budget requests. The projects include critical developments like the Department of Homeland Security (DHS) Headquarters Campus at St. Elizabeths in Washington, D.C. and the modernization of Prince J. Kuhio .Kalanianaole Federal Building in Honolulu, HI.

As mentioned before, FY2012 funding proposals for some of our projects, as in the case of St. Elizabeths, are contingent upon appropriated funding for FY2011. Therefore, the project scope and schedules proposed in FY2012 could change, depending on the amount of FY2011 appropriations. The proposed cuts in H.R. 1 to the Federal Buildings Fund in the year-long continuing resolution for FY2011 would significantly inhibit PBS's operations and ability to meet our tenant agencies' needs.

Through our FY2012 program, PBS is continuing to push forward with high-priority initiatives to improve space utilization in our existing inventory and aggressively move vacant and underutilized assets out of our inventory. To do this, we are leveraging our partnerships with other Federal agencies to strategically plan portfolio-wide strategies and importing space utilization strategies from the private sector and from GSA's own demonstration projects over the past ten years.

PBS is investing in our nation's economic recovery, while further innovating to meet our environmental and sustainability responsibilities. These investments stimulate job growth, increase space utilization, enhance asset condition, reduce energy consumption, improve the environmental performance of our inventory, reduce our repair and alterations needs, and increase the value of our assets. Of the $5.5 billion in American Recovery and Reinvestment Act funds allocated to GSA, approximately $4.5 billion will go toward upgrading and making more efficient the existing federal building inventory.

We successfully met our benchmarks for obligating the more than $5 billion we had committed to awarding by September 30, 2010. And we are on target on actual construction progress on hundreds of projects. GSA's obligations via contract awards to private design and construction firms have put more than 10,000 American workers to work.