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FIMS/Real Estate Workshop June 16, 2011 The IFI Crosscut and You How FIMS Data Supports the Budget Process Cindy Hunt, PE, LEED AP, CCE, CFM Office of.

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Presentation on theme: "FIMS/Real Estate Workshop June 16, 2011 The IFI Crosscut and You How FIMS Data Supports the Budget Process Cindy Hunt, PE, LEED AP, CCE, CFM Office of."— Presentation transcript:

1 FIMS/Real Estate Workshop June 16, 2011 The IFI Crosscut and You How FIMS Data Supports the Budget Process Cindy Hunt, PE, LEED AP, CCE, CFM Office of Management Office of Engineering and Construction Management

2 The Agenda 2 Requirement for Facility Sustainment Format & Submission of IFI Budget Crosscut FIMS Data and Budget Cycle Integration Mission Readiness and Benchmark Sustainment

3 Facility Sustainment Investment Requirements 3 Each site must have a program to maintain each real property asset in a condition suitable for its intended use 5-year Sustainment requirements developed based on projects of serviceability, economic life, condition assessment, facility mission and current deferred maintenance Each site must have a program to recapitalize existing facilities to keep them modern and relevant DOE O 430.1B, Real Property Asset Management DOE Strategic Plan, May 2011 Leverage Infrastructure to Support the Mission

4 Integrated Facilities and Infrastructure (IFI) Crosscut Budget 4 Provides visibility of facility sustainment investments by site Identifies costs for: o New Capital Asset Projects o Renovations & Recapitalization o Maintenance & Repair o Disposal & Demolition Submitted annually as part of the budget submission

5 FY13 IFI Budget Crosscut 5 Templates and Guidance Facilities and Infrastructure_Crosscut_Budget_Data Process o Review the instructions for completing the FY13 IFI Budget Data Sheet o Complete the FY 2013 IFI Budget Data Sheet or a special version just for NNSA o Organize site submissions using the FY13 Program Summary template o Submit with Budget Deliverables per CFO Schedule

6 IFI Crosscut Budget – FY13 Format 5-year Budget Cycle % of Cost Attributable to M&R % of Cost Attributable to Real Property Acquisition Substantial Completion or CD-4 Date Net Change in Building Area 1 IFI for each Site General Plant Projects Capital Asset Projects >$10M Maintenance & Repair Institutional General Plant Projects Disposal & Demolition 6

7 Planning and Evaluation of an IFI Crosscut Budget Depends on FIMS Data 7 Bounds the Portfolio of Assets Considered Replacement Plant Value Deferred Maintenance Annual Actual Maintenance Usage Code, Operating Status Conventional Facility Indicator, Planned Disposition Date

8 RPV & DM for Evaluating Planned M&R Program Includes: Most recent FIMS Year-end Snapshot Owned buildings, trailers and OSFs Operational status (FIMS status codes: 1, 2, 6) 8 Excludes: Series 3000 OSFs Selected Engineered Waste Containment Structures May Exclude: Permitted Assets

9 Integrated FIMS Data Population and FY13 Budget Cycle Timeline 9 Real Property Goals and Milestones Sep 2011Mar 2011Dec 2010Oct 2010Dec 2011Jun 2011Mar 2012 FY11 TYSP Guidance Strategic Sustainability Performance Plan Update Estimated Disposition Year FIMS FY11 Model RPV Update FIMS FY10 DM & RPV Snapshot DOE Strategic Plan Three Year Rolling Timeline Update Planning & IFI Preparation Determine Adjusted FY10 DM & RPV Site Ten Year Site Plan (FY11-21) FY11 FRPC Snapshot FY11 Required Maintenance Update FIMS Data Validation FY13 IFI Crosscut Budget Format & Guidance FY13 IPL & Budget Deliverables IFI Analysis OMB Submission President’s FY13 Budget Request to Congress OMB Budget Guidance, A-11 FIMS Data Population

10 Program Budget Request Evaluation of: o Planned Maintenance & Repair Investment o Requirement for a Deferred Maintenance Reduction Program o Planned Deferred Maintenance Reduction Investment Forecast of Investment Impact on: o Future Asset Condition Index o Deferred Maintenance Backlog 10

11 Program’s Historical M&R Funding 11 Example Program 200520062007200820092010 AM as % of RPV0.81%1.73%1.54%1.76%1.44%1.79%

12 Performance Measure and Rating 12 Asset Condition Index Department’s corporate measure of the condition of its facility assets Reflects the outcomes of real property maintenance and recapitalization policy, planning and resource decisions ACI = 1 – Deferred Maintenance / Replacement Plant Value ACI RangeACI Rating 0.98 to 1.00Excellent 0.95 to 0.98Good 0.90 to 0.95Adequate 0.75 to 0.90Fair < 0.75Poor

13 Model Options for Funding M&R 13 Current FIMS Data Can Support This Level of Detail Portfolio Level Data (Basic Asset Information) Asset Level Data (Detailed Asset Information + History) Quantity of Data No Model – Inflate Last Year’s Budget 2%-4% RPV Force Fit Book Model Book Model + 2%-4% Outliers Book Model + Prepared Estimates For Outliers Tailored Book Model + Prepared Estimates For Outliers Model As – Is Conditions Of Assets Headquarters Level Information (More Strategic Than Tactical) Site Level StrategicSite Level Tactical Cost Works Sustainment Calculation

14 Benchmark M&R Program Funding 14 Plan 2% to 4% for a portfolio in adequate condition* Plan additional funding of 1% to 2% of RPV when ACI is below 0.95 For Example: *National Academies of Sciences’ recommended annual funding level Property TypeFY10 RPVFY 10 DM Buildings $1,227,475,270$49,206,743 OSFs $548,338,514$34,077,337 Trailers $18,692,655$1,491,970 Program Total $567,031,169$35,569,307 Minimum M&R Target Range: 2% $11,340,623 Minimum Funding Target Range Minimum M&R Target Range: 4% $22,681,247 ACI93.73% < 0.95; DM Program Required

15 Don’t Miss the Minimum 15 Anticipate Changes in Portfolio Inventory Understand Life-cycle Cost Requirements DOE Total20062007200820092010 RPV - FIMS Snapshot $55.21B$58.962B$69.22B$76.49B$70.71B Actual Annual Maintenance - QMR $1.08B$1.07B$1.15B$1.14B$1.29B Sustainment Rate (QMR/RPV, FY-3) 2.71%2.45%2.08%2.06%2.18% Sustainment Rate (QMR/RPV, FY) 1.96%1.82%1.66%1.49%1.82%

16 Factors Considered in the ACI/DM Prediction Model 16 Increases DM Decreases DM DM Reduction Program Construction Projects Disposal & Demolition Adequately Funded M&R Program Prior Year DMInflation DM Backlog Deterioration Increases Value Decreases Value Prior Year RPV New Construction Acquisition Cost Inflation Disposal & Demolition RPV Changes in Replacement Plant ValueChanges in Deferred Maintenance Balancing the Outcomes of Resource Decision Making

17 Forecasting the Impact of Funding on Asset Condition and Deferred Maintenance Backlog 17 DOE ACI and Deferred Maintenance Backlog Prediction Model

18 Tips for Managing RPV Ensure FIMS data are accurate for year-end snapshot. Each conventional facility should have a FIMS record. High value, low maintenance structures within buildings should have separate FIMS records. Notify OECM if a high value, low maintenance structure has a usage code other than those excluded (Series 3000 OSFs). Confirm Asset Type 460 applied to land records only. Identify a replacement asset type code for Structures currently cited as Asset Type 460. 18

19 Tips for Managing DM 19 Conduct condition assessments. Focus on mission critical and mission dependent assets first. Fully fund maintenance and repair program. Consider recapitalization projects when maintenance is not enough.

20 Facility Condition and Mission Readiness 20 Corporate Performance Measures and Benchmarks Support Mission Readiness SC determines overall SLI priorities consistent with SC mission needs Lab analysis of “Mission Readiness” by Business Line Yields F&I Capability Gap and Action/ Investment Plan Lab analysis of “Mission Readiness” by Business Line Yields F&I Capability Gap and Action/ Investment Plan DOE Commitment to Line Items, GPP and Excess Facilities PEER Review of Lab Mission Readiness Process Results included in annual Lab Business Plan/ TYSP Lab Commitment to include maintenance and IGPP Mission Ready Lab Facilities Support Strategic Objectives Contract Performance Measures Adequate Maintenance Funding DM Reduction Adequate Facility Condition

21 Cindy Hunt, PE, LEED AP, CCE, CFM Facilities Engineer U.S. Department of Energy Office of Engineering and Construction Management Code MA-50 1000 Independence Ave, SW Washington DC 20585 202.586.4539 Questions

22 DOE Maintenance and Repair Program 22 Annual Real Property Maintenance & Repair ($M) FY 2003FY 2004FY 2005FY 2006FY 2007FY 2008FY 2009FY 2010 6548268851,0811,0721,1511,1741,287 FY10 FIMS Snapshot Data FY10 DOE ACI: 94.7%

23 Analysis Using Current Plant Value 23 How would the DOE Portfolio look? Programs with significant changes FY2010RPVCPVAMAM/RPVAM/CPV Buildings $43.8B$53.2B$791M1.8%1.5% OSFs $26.4B$30.5B$246M0.9%0.8% Trailers $507.5M$244.8M$27.2M5.4%11.1% DOE $70.7B$83.9B$1.06B1.5%1.3% ProgramRPVCPVChange EM $11.2B$35.9B68% increase NE $1.8B$3.4B46% increase NNSA $37.5B$26.7B40% decrease ! Original acquisition cost escalated by a standard index CCI CPI Inflation

24 Why Track Costs v. Budget Authority? 24 Relation ship of Budget Authority to Outlay – An Example

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