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Understanding Federal Asset Management: An Agenda for Reform
Title: Understanding Federal Asset Management: An Agenda for Reform
Date: July 2003
Author: Thomas Stanton
Institution: IBM Center for the Business of Government
Bibliographic Entry: Stanton, Thomas. “Understanding Federal Asset Management: An Agenda for Reform.” IBM Center for the Business of Government. July 2003. http://www.businessofgovernment.org/pdfs/StantonReport2.pdf (Accessed October 3, 2007).
Electronic Link: http://www.businessofgovernment.org/pdfs/StantonReport2.pdf
Key Words: asset management, collective portfolio management, portfolio strategy, life-cycle asset approach, interagency working groups, public sector management constraints
Summary of Key Points, Issues, Conclusions:
Asset management is becoming more important for the federal government by presenting a better image to the American public and increasing capacity for carrying out their respective agency missions. This report seeks to provide a framework for assessing the dimensions of federal asset management. It then examines the constraints experienced by the public sector in contrast to the private sector in regards to management. However, Stanton finds that even with the constraints, agencies can make marked progress in asset management.
The themes of the report include the need for agencies to stop treating assets on an individual basis, but rather as a collective portfolio. Another theme is the need to create relationships with third parties, such as contractors, in such a way that the government’s and private party’s incentives are aligned. Furthermore, agencies and policy makers need to become cognizant of the life cycles of assets.
Five reforms are proposed: (1) improvements of budget rules, (2) use a portfolio strategy, (3) adopt a life-cycle approach to asset management, (4) sponsor interagency working groups and (5) experiment with new lease options.
Name of Researcher: Julie Curry
Institution: Integrative Center for Homeland Security, Texas A&M University
Date Posted: October 4, 2007