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Joint Circular
Department of the Treasury

Delineation of Authority Between OMB, DPMC,
and the Office of Smart Growth of the DCA, in the SPR Approval Process

JOINT CIRCULAR
STATE OF NEW JERSEY
DEPARTMENT OF THE TREASURY

ORIGINATING NO.: 04-15-DPMC/OMB

AGENCY: DIVISION OF PROPERTY MANAGEMENT AND CONSTRUCTION (DPMC)
OFFICE OF MANAGEMENT AND BUDGET (OMB)

EFFECTIVE DATE: 4/19/04

EXPIRATION DATE: INDEFINITE

SUPERSEDES: 97-14-GSA

SUBJECT: DELINEATION OF AUTHORITY BETWEEN OMB, DPMC, AND THE OFFICE OF SMART GROWTH OF THE DCA, IN THE SPR APPROVAL PROCESS

ATTENTION: ALL DEPARTMENTS AND AGENCIES

FOR INFORMATION CONTACT: BERNARD McLAUGHLIN

PHONE: (609) 292-5111

Purpose

The purpose of this letter is to help provide a better understanding of the separate functions of the Office of Management and Budget (OMB), the Division of Property Management and Construction (DPMC) of the Department of the Treasury, and the Office of Smart Growth of the Department of Community Affairs (DCA), in the Space Planning Request (SPR) approval process.

Procedures

An SPR is initiated when an agency wishes to procure space for its operating needs. An SPR Part 1 "OMB Pre-approval Form" is prepared by the requesting agency and submitted to OMB for pre-approval. The requesting agency obtains the approval of authorized representatives of its Organization/Unit, Division and Department as well as that of the Chief Fiscal Officer prior to submission to OMB. This approval constitutes a certification: 1) that all information contained within the document is true and accurate; 2) the space requested represents the minimum square footage necessary for the agency to perform its function, and 3) the agency will comply with the DPMC Policy for Hazardous Materials/Waste Remediation for State leased facilities. The agency must indicate whether the request is for the renewal of an existing lease or for new or additional space.

Concurrent with the above submission to OMB, the requesting agency submits SPR Part 2, "Smart Growth Space Approval Request" to the Office of Smart Growth of the DCA. The Office of Smart Growth of the DCA reviews the desired location for compliance with applicable State of New Jersey and federal growth standards and policies. After review, the Office of Smart Growth of the DCA returns SPR Part 2 to the requesting agency indicating either approval or disapproval or conditional approval. The agency should also submit SPR Part 3, "DPMC Space Planning Request" to DPMC at this time.

The OMB pre-approval of SPR Part 1 consists of: 1) a verification that the new program or program expansion has been approved; 2) a determination that the programmatic need for the requested space is in accordance with the DPMC standard space allocation and documented program requirements; 3) a determination of a funding source including the percentage of the lease costs that are to be direct billed to the agency; 4) a verification of the number of positions indicated are consistent with the number that is approved for the program; and, 5) a verification of the maximum square footage for the SPR. In the event that the agency is requesting an amount of space that exceeds the DPMC standard space allocation, SPR Part 3 shall be submitted to OMB in addition to SPR Part 1 for pre-approval. The agency is required to provide a compelling justification for space in excess of the standard. The approved SPR Part 1 is forwarded to DPMC; a disapproved SPR Part 1 is returned to the agency.

Upon receipt of SPR Parts 1, 2 and 3, DPMC prepares a cost feasibility analysis of all applicable costs associated with the acquisition and occupancy of the requested space based upon the criteria specified in the pre-approved SPR. DPMC forwards the completed SPR package to OMB for certification.

OMB certifies the amount of funds as detailed in the cost feasibility analysis is available from the identified funding source. This certification is signed by the OMB budget analyst and the OMB Deputy Director, and returned to DPMC for action.

The DPMC is directed to negotiate leases for all state agencies and determine any requirements for construction or renovation; solicit competitive proposals for lease agreements and prepare recommendations in accordance with the approved Statewide Space Master Plan. The DPMC will work with the requesting agencies in developing the scope of work and plan design to provide the most efficient and cost-effective space plan for the agency and the State. The DPMC will procure space that does not exceed the cost and size certified by OMB.

In the event that available space exceeds the OMB approved funding amount by 5% or greater a revised Cost Feasibility Analysis shall be submitted to OMB by the DPMC for recertification.

Upon conformance of the selected space with the certified SPR, the DPMC will forward a Notice of Proposed Lease to OMB for approval.

Edmund F. Jenkins, Director
Division of Property Management and Construction
Charlene M. Holzbaur, Director
Office of Management and Budget


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