The Tennessee Valley Authority (TVA) has a portfolio of 126 sites in seven states. The agency wanted to reduce overall square footage, improve asset management, and increase utilization. What should it do? What would you do?
TVA took the smart business approach of developing a comprehensive strategic facilities plan for its portfolio. TVA wanted its facilities managed effectively and to provide maximum value. The agency charged its management with the goal to implement this plan.
The plan Included:
- Reducing overall square footage used by TVA
- Providing for future flexibility
- Minimizing current and future costs of space
- Determining and implementing the best use of TVA facilities
The team also addressed vacant office space, the acquisition of new leased space, project construction costs, and the use of standard project-review procedures. For their efforts, the Tennessee Valley Authority was recognized as an Honorable Mention in the 2002 GSA Achievement Award for Real Property Innovation in the Best Practice Category.
The strategic planning effort is the first comprehensive consideration given to TVA’s total facility portfolio. The Strategic Facilities Team began by assembling all pertinent data about TVA facilities. The team then reviewed the information to determine which buildings were “core buildings” that should continue to be occupied. This determination was based on:
- total cost of occupancy,
- flexibility of the building,
- customer requirements and business plans,
- the efficiency of the structure,
- the potential for sale, sublease, out-lease, or lease termination,
- the quality of the workspace for employees; and
- environmental, energy, and safety concerns.
The team will develop long term plans for consolidating employees and functions within the core facilities to increase efficiency. The team also will develop recommendations for the future of other facilities. Once approved, these plans will be scheduled and implemented, and results will be tracked annually.
The potential cost avoidance and revenue generated by aggressive implementation of the recommended actions could total approximately $25 million over five years.
For more information, contact Mr. Chuck Overstreet at (865) 632-3690 or via e-mail at cloverstreet@tva.gov.
