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. Prepared for the Tuition Policy Advisory Committee by The University of Texas Physical Plant September 10, 2003. Committee Meeting #4. Managing the Facilities Asset Portfolio. A strategic plan to measure, monitor, and benchmark - PowerPoint PPT Presentation
Transcript of Managing the Facilities Asset Portfolio
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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A strategic plan to measure, monitor, and benchmark
Facilities Asset Performance with the same rigor used in managing
financial assets.
Managing the Facilities Asset Portfolio
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Assess Facility Needs• Condition: Physical state of buildings & major code issues• Adaptation: Programmatic needs based on teaching & research
requirementsEstablish Condition Index Goals for the Portfolio• Facility Condition Index (FCI) for campus as a whole• Building Condition Index (BCI) range for individual buildingsAllocate Resources to Meet Goals• Develop a maintenance plan for each building• Prepare contingency plansMonitor Progress Toward Goals• Track key metrics• Analyze results, adjust plan as needed
Managing the Facilities Asset Portfolio
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Assess Facility Needs
VFA has assessed 12 M gross square feet E&G 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
Construction By Decade
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
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Facility Condition Index (FCI) for campus:
.20 in 2020
Building Condition Index (BCI) range for individual buildings:
.15 to .40
Establish Goals
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Two-Phased Plan to Achieve Goal
• Develop a Maintenance Plan for Each Building
• Prepare Contingency Plans
Allocate Resources
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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)
Allocate Resources
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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.
Allocate Resources
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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.
Allocate Resources
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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.
Allocate Resources
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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.
Allocate Resources
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Current Space Distribution by Category and Square Feet
Allocate Resources
1,627,415
4,784,485 4,388,170
1,249,257
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
A B C D
14BCI = .02
Group A: North Office Building A
Allocate Resources
15BCI = .33
Group B: College of Business AdministrationAllocate Resources
16BCI = .56
Group C: Peter T. Flawn Academic Center
Allocate Resources
17BCI = .88
Group D: Garrison Hall
Allocate Resources
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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
Allocate Resources
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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?
Allocate Resources
“Not if failure occurs, but when failure occurs”
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Allocate Resources
Electrical SystemEquipment
Exterior EnclosureFire Protection
FurnishingsHVAC System
Interior ConstructionPlumbing System
Selective DemolitionSite
Special ConstructionStructure
0M20M40M60M80M100M120M
140M
ADA ComplianceAppearance
Building Code ComplianceBuilding Functionality
Building IntegrityEnergy
Fire - Life Safety / SchirmerFire - Life Safety / VFA
Hazardous MaterialsAir QualityEnvironmental
0M20M40M
60M80M
100M
120M
140M
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Monitor Progress
Maintain Accuracy of Key Metrics
1. CRV
2. Facility Needs
3. 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
FCI continues to rise
Eminent and actual failures
Primarily reactive
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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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Funding Scenarios
$14 million per year
• Electrical
• Mechanical
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Funding Scenarios
$14 million per year
• Electrical
• Mechanical
• HVAC
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Funding Scenarios
$14 million per year
• Electrical
• Mechanical
• HVAC
• Roofs
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Funding Scenarios
$14 million per year
• Electrical
• Mechanical
• HVAC
• Roofs
• Slowed rate of FCI growth
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Assess Facility NeedsEstablish Goals for the PortfolioAllocate Resources to Meet GoalsMonitor Progress Toward Goals
Managing the Facilities Asset Portfolio
“20 in 2020”
