Disposing of Constructed Real Property Assets

372 FW 7
FWM Number
Originating Office
Infrastructure Management Division

7.1 What is the purpose of this chapter? This chapter establishes the U.S. Fish and Wildlife Service’s (Service) policy on disposal of constructed real property assets.

7.2 What are the objectives of this chapter? Our objectives are to:

A. Manage our asset portfolio to sustain the minimum number of facilities we need to effectively support mission delivery;

B. Continually seek opportunities to dispose of assets that are not utilized, are underutilized, or are not put to optimal use;

C. Dispose of unneeded assets in a way that complies with Federal laws and regulations; and

D. Include asset disposal in the scope of work and cost estimate for asset replacement projects, regardless of the project’s fund source.

7.3 What is the scope of this chapter? This chapter:

A.  Covers disposal through demolition or off-site removal of constructed real property that the Service owns, but

B.  Does not cover disposal of lands (see Parts 341 and 342 on Land Acquisition and Realty Operations) or termination of leases and operating agreements (see 370 FW 1-4, Space Management).

7.4 What are the authorities for this chapter? See 372 FW 1 for a list of authorities for all the chapters in Part 372.

7.5 What terms do you need to know to understand this chapter? See 372 FW 1 for the definitions of terms we use in all the chapters in Part 372. The definitions below are unique to disposal activities:

A. Assets not being put to optimum use means assets that:

(1) Are not cost-effective to operate and maintain, or

(2) Are used, but could be used for a different and significantly higher and better use.

B. Estimated fair market value means our best estimate of what we could sell the asset for if we offered it for public sale. Almost all of the constructed assets we offer for sale require removal of the asset from our lands; this has a significant impact on the estimated fair market value.

C. Excess property means property that the Service controls, and that the Director determines is not necessary to meet our needs or responsibilities (see 40 U.S.C. 102(3)). We determine if property is excess by reporting it to the General Services Administration (GSA) on a Standard Form (SF)-118, Report of Excess Real Property. GSA screens excess property for potential reutilization within the Federal Government. After the screening process, excess property that is not reutilized becomes surplus.

D. Property that is not utilized means property that is not occupied or used for current program purposes, or is occupied in caretaker status only.

E. Surplus property means excess property that GSA determines is not required to meet the needs or responsibilities of any Federal agency (40 U.S.C. 102(10)).

F. Underutilized assets are:

(1) Assets that we use irregularly or intermittently for current program purposes, or

(2) Where we only need a portion of an asset to fully satisfy program purposes.

7.6 Who is responsible for planning and disposing of constructed real property assets? See 372 FW 1, Table 1-3 for the overall responsibilities of Service management for constructed real property. Table 7-1 below is specific to the disposal process.

Table 7-1: Responsibilities for Disposing of Constructed Real Property Assets

These employees…Are responsible for…
A. The Chief – National Wildlife Refuge System (NWRS)

(1) Leading national level activities to manage disposal and transfer planning and integrate it with other constructed real property management activities;

(2) Coordinating with other Directorate members at Headquarters with constructed real property assets, especially the Assistant Director – Fish and Aquatic Conservation and the Assistant Director – Business Management and Operations, to ensure that we consistently manage disposals and transfers of constructed real property assets;

(3) Leading national efforts to ensure that disposals are properly carried out and documented; and

(4) Managing adjustments to Financial and Business Management System (FBMS) and Service Asset and Maintenance Management System (SAMMS) asset records to document disposals or transfers.

B. Assistant Director – Business Management and OperationsWorking with other Directorate members, especially the Chief – NWRS, to develop and implement procedures to document asset disposals or transfers in FBMS.
C. Other Directorate members at HeadquartersCoordinating with the Chief NWRS and the Assistant Director Business Management and Operations to develop and implement the policies and procedures in this chapter.
D. Regional Directors and Assistant Regional Directors

Ensuring that program staff within their areas of responsibility: 

(1) Identify constructed real property assets that do not contribute to our mission and are candidates for disposal;

(2) Incorporate the disposal of assets that we will replace into project planning and execution for all such projects, regardless of fund source, and in particular for Deferred Maintenance (DM) projects;

(3) Approve disposals, where appropriate, before they occur; and

(4) Adjust FBMS real property records within 30 days of disposal.

E. Regional Facilities Program Supervisors

(1) Recommending asset disposal based on Comprehensive Condition Assessments (CCA) and consultation with Field Station Managers,

(2) Verifying that estimated disposal costs are accurate, and

(3) Updating FBMS and SAMMS data records within 30 days of receipt of completed disposal paperwork.

7.7 Why are asset disposals important? By disposing of unneeded constructed real property assets, we:

A. Reduce life-cycle facility costs,

B. Restore habitat,

C. Reduce liability by preventing or removing attractive nuisances and safety hazards,

D. Reduce the administrative cost of recordkeeping and auditing, and

E. Focus facility maintenance on preserving mission-critical assets.

7.8 When does the Service typically consider disposing of assets? We regularly consider the need to remove, repair, renew, or build new assets during all phases of program operations. This is especially important when developing the 5-year DM, construction, and transportation plans. We also consider cost or program efficiencies that we can gain by asset disposals and incorporate them when preparing refuge Comprehensive Conservation Plans, step-down management plans, and annual work plans.

7.9 How does the Service integrate asset disposal costs into asset replacement projects in DM budgets? Managers must incorporate the estimated disposal costs in all cost projections for asset replacement projects funded through DM budgets.

7.10 Which assets are the most likely candidates for disposal? Regional facility management staff, in coordination with Field Station Managers, should recommend disposal of an asset if it:

A. Is unused or underutilized;

B. Is deteriorated beyond economical repair;

C. Has been destroyed or damaged beyond repair in a natural event, such as a fire or a storm;

D. Is dangerous to people, likely to damage nearby structures, poses the probable release of contaminants to the environment, or creates a nuisance that attracts unwanted pests, for example;

E. Has excessive maintenance costs, and its disposal will not have a significant adverse impact on field station mission accomplishment;

F. Fragments critical habitat for threatened or endangered species; or

G. Has an obsolete design and cannot be reasonably altered or economically repurposed.

7.11 How does the Service conduct and document removal or demolition of assets? 

A. We generally dispose of real property assets by one of two methods:

(1) On-site demolition or removal by Service employees or through a contracted service, or

(2) Off-site removal that is open to outside entities. Because our constructed real property assets are almost all located on stewardship lands, for public disposition, it’s almost always necessary to move the materials offsite through a salvage and removal operation. 

B. The disposal process begins when the Field Station Manager requests approval in advance to dispose of an asset by submitting a form DI-103A, Certificate of Unserviceable Property, or DI-103, Report of Survey. To complete the form, you have to consider potentially historic attributes, environmental hazards, etc. 

(1) Fair market value of $50,000 or less:  Once the Regional office approves disposal, the station may proceed with the actual disposal or demolition of the asset if its fair market value is no more than $50,000. The Service has delegated authority from GSA to dispose of assets with a fair market value of $50,000 or less. When we use the authority, we must document in our records that we used the same disposal procedures GSA would have used.

(2) Fair market value of more than $50,000:  If the fair market value of the asset exceeds $50,000, GSA must declare it surplus and the asset must go through the GSA disposal process.

7.12 What is the database of record for documenting facility disposals, and what are the deadlines for documenting them?

A. FBMS is the database of record for documenting facility disposals. 

B. We must fully document disposals, attach a scanned copy of the documentation in FBMS, and adjust FBMS and SAMMS real property records within 30 days after the actual disposition.

7.13 What other guidance is available on the detailed procedures for disposing of constructed real property assets?

A. The Constructed Real Property Management Handbook provides more detailed guidance on this topic. 

B. Technical Bulletins and user guides also describe SAMMS and FMBS administrative procedures for real property financial management, work order management, and funds management.