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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GARMECH2.jpg

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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”