Managing the Facilities Asset Portfolio

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Managing the Facilities Asset Portfolio

• Prepared for the
• Tuition Policy Advisory Committee
• by The University of Texas Physical Plant
• September 10, 2003

Committee Meeting 4
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Managing the Facilities Asset Portfolio
A strategic plan to measure, monitor, and
benchmark Facilities Asset Performance with the
same rigor used in managing financial assets.
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Managing the Facilities Asset Portfolio

• Assess Facility Needs
• Condition Physical state of buildings major
  code issues
• Adaptation Programmatic needs based on teaching
  research requirements
• Establish Condition Index Goals for the Portfolio
• Facility Condition Index (FCI) for campus as a
  whole
• Building Condition Index (BCI) range for
  individual buildings
• Allocate Resources to Meet Goals
• Develop a maintenance plan for each building
• Prepare contingency plans
• Monitor Progress Toward Goals
• Track key metrics
• Analyze results, adjust plan as needed

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Assess Facility Needs
VFA has assessed 12 M gross square feet EG
Current Replacement Value (CRV) of 1,859 M
Identified needs of
approximately 740 M FCI 740 M / 1,859 M
.40 Maintaining the condition index will require
30 M per year
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Assess Facility Needs
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Establish Goals
Facility Condition Index (FCI) for campus .20 in
2020 Building Condition Index (BCI) range for
individual buildings .15 to .40
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Allocate Resources

• Two-Phased Plan to Achieve Goal
• Develop a Maintenance Plan for Each Building
• Prepare Contingency Plans

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Allocate Resources
Assign buildings to categories that guide
maintenance actions A Allow to Age
Gracefully B Bandage as Needed C Can Be
Saved D Do a Capital Project (CIP)
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Allocate Resources
A Allow to Age Gracefully Newer buildings with
BCI below target. Allow building to age slowly
until it approaches target BCI. Maintenance
will primarily be routine and preventive.
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Allocate Resources
B Bandage as Needed Buildings with BCI near
target. Maintain building in its current
condition. Maintenance will include system
replacement as needed, as well as routine and
preventive.
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Allocate Resources
C Can Be Saved Buildings with BCI well above
target. Upgrading the building will move it
toward the target BCI. Maintenance may include
several system replacements and area renovations,
as well as routine and preventive.
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Allocate Resources
D Do a Capital Project (CIP) Buildings with
BCI far beyond target where cost to bring in
range approaches replacement cost or where major
adaptation is needed. Maintenance will be minimum
required to keep building usable. Failure is
imminent.
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Allocate Resources
Current Space Distribution by Category and Square
Feet
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Allocate Resources
Group A North Office Building A
BCI .02
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Allocate Resources
Group B College of Business Administration
BCI .33
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Allocate Resources
Group C Peter T. Flawn Academic Center
BCI .56
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Allocate Resources
Group D Garrison Hall
BCI .88
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Allocate Resources

• Allocate available resources within each category
  according to
• Customer priorities
• Impact on BCI
• Focus on high priority deficiencies
• Minimize patching
• Ability to Fix the building, not the problem
• Package multiple deficiencies to create larger
  project

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Allocate Resources
Not if failure occurs, but when failure occurs
Contingency Plans are a must. Building Users
Operating Contingency Plan Where will classes be
held when systems fail? Physical Plant
Facilities Contingency Plan Which systems in
which buildings are most likely to fail? What
will we do when systems fails?
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Allocate Resources
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Monitor Progress

• Maintain Accuracy of Key Metrics
• CRV
• Facility Needs
• FCI and BCI

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Monitor Progress

• Analyze Results Annually
• Compare actual FCI to prior years and to goal
• Identify buildings that are outside desired BCI
  range
• Develop annual spending plan to optimize
  available resources

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Funding Scenarios
Options for FY 03/04
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Funding Scenarios
4 million per year
Primarily reactive
Eminent and actual failures
FCI continues to rise
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Funding Scenarios
14 million per year
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Funding Scenarios

• 14 million per year
• Electrical

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BTLELEC2.jpg
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BTLELEC4.jpg
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Funding Scenarios

• 14 million per year
• Electrical
• Mechanical

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GARMECH2.jpg
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WWHMECH1.jpg
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Funding Scenarios

• 14 million per year
• Electrical
• Mechanical
• HVAC

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GARMECH2.jpg
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Funding Scenarios

• 14 million per year
• Electrical
• Mechanical
• HVAC
• Roofs

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PACROOF2.jpg
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Funding Scenarios

• 14 million per year
• Electrical
• Mechanical
• HVAC
• Roofs
• Slowed rate of FCI growth

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Managing the Facilities Asset Portfolio
20 in 2020
Assess Facility Needs Establish Goals for the
Portfolio Allocate Resources to Meet
Goals Monitor Progress Toward Goals
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Managing the Facilities Asset Portfolio

• Assess Facility Needs
• Condition Physical state of buildings major
  code issues
• Adaptation Programmatic needs based on teaching
  research requirements
• Establish Condition Index Goals for the Portfolio
• Facility Condition Index (FCI) for campus as a
  whole
• Building Condition Index (BCI) range for
  individual buildings
• Allocate Resources to Meet Goals
• Develop a maintenance plan for each building
• Prepare contingency plans
• Monitor Progress Toward Goals
• Track key metrics
• Analyze results, adjust plan as needed

FCI Deficiencies / Current Replacement Value