Federal Property Management Reform Act of 2016

The bill establishes a Federal Real Property Council, to be chaired by the Deputy Director for Management of the Office of Management and Budget (OMB), to: (1) develop guidance and ensure implementation of an efficient and effective real property management strategy, (2) identify opportunities for the federal government to better manage its property and assets, and (3) reduce the costs of managing federal properties.

The council must update annually a real property management plan template with government-wide performance measures to reduce surplus property or achieve better utilization of underutilized property. The evaluation criteria must: (1) enable Congress and federal agencies to track their progress on a government-wide basis, and (2) allow for comparison of the performance of federal agencies against industry and other public sector agencies.

The council must: (1) develop utilization rates consistent throughout each category of space and consistent with nongovernmental space use rates, (2) develop a strategy to reduce the reliance of federal agencies on leased space for long-term needs if ownership would be less costly, (3) provide guidance on eliminating inefficiencies in the federal leasing process, (4) compile a list of field offices suitable for collocation, and (5) develop guidelines for the use of public-private partnerships in the management of federal property.

For five years, the council must report annually to the OMB on: (1) a list of the remaining excess property that is real property, surplus property that is real property, and underutilized property of each federal agency; (2) the council's progress in developing guidelines for agencies to assess their properties; (3) the progress of agencies in reducing excess and underutilized real property; (4) legislative recommendations; and (5) a list of entities that are consulted.

The council must consult with: (1) state, local, and tribal authorities and other affected communities; and (2) private sector and nongovernmental organizations with expertise in transportation, commercial real estate, historic preservation, and homeless housing.

The council must annually provide the real property management plan template and required reports to specified congressional committees and the Government Accountability Office.

Federal agencies with independent leasing authority shall annually submit to the council a list of all leases currently in effect. This requirement shall not apply to the USPS or any other property excluded for national security reasons.

(Sec. 4) The USPS shall: (1) maintain adequate inventory controls and accountability systems for postal properties, and (2) develop workforce projections to assess the property-related needs of the USPS workforce.

The USPS may develop a five-year management template to: (1) reduce excess and underutilized property; (2) adopt workplace practices, configurations, and management techniques that decrease the need for real property assets; (3) identify leased space that is not fully used or occupied; and (4) secure mail processing operations.

If the USPS develops such template, it shall conduct on a regular basis and report on an inventory of postal property that is real property.

(Sec. 5) The USPS inspector general must report on excess property held by the USPS and recommendations for repurposing such property and increasing collocation with other federal agencies.

(Sec. 6) The bill expands the duties of federal agencies, with respect to the use of federal real property, to require: (1) workforce projections to assess the property-related requirements of the federal workforce, (2) the establishment of goals and priorities to reduce excess and underutilized property, (3) assessments of leased space to identify space that is not fully used or occupied, and (4) an annual inventory of real property under agency control and an assessment of the condition of such property.

(Sec. 7) The bill amends the Federal Assets Sale and Transfer Act to: (1) require the President to appoint specified members of the Public Buildings Reform Board recommended by (currently in consultation with) the Speaker of the House of Representatives, the majority leader of the Senate, and the the minority leaders of the House and the Senate; and (2) require the sale by the General Services Administration of specified property in southwest Washington, D.C., to ensure continuity of security measures, parking access, and infrastructure requirements of the James Forrestal Building while it is occupied by the Department of Energy.