Managing the NIH Bethesda Campus Capital Assets for Success in a Highly Competitive Global Biomedical Research Environment (2019) / Chapter Skim
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5 Current Capital Asset Management at NIH
5 Current Capital Asset Management at NIH
Pages 56-71
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1 Executive Order 13327 of February 4, 2004, Federal Real Property Asset Management, Federal Register 69(25)
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NASA adopted the MDI in 2004 with the goal to better manage facilities' risks and provide a better guide for investment and divesture decisions.2 This approach involves asking the user to honestly assess the capability of the organization to perform its mission when the asset is not available. This allows decisions about repair, replacement, or disposal of capital assets to include the key discussion about impacts on mission accomplishment due to potential adverse events.
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for which the management explicitly calculates the cost of facility disruptions in its prioritization of capital asset investments relative to agency mission: MIT-LL [MIT Lincoln Laboratory] developed the disruption index to indicate the degree to which a new project or alternatives to the project would interrupt current operations and research programs.
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The 1,000-point scoring mechanism for each project/proposal shown in Table 5.1 has the following components: 335 points focused on IC Program Impacts; 330 points focused on Functional Obsolescence; and 335 points focused on Facility Impacts.7 Simply stated, an evaluation with a high score means a potential adverse impact to the program and a greater risk of failure to building system/components including life safety and critical mission functions. Thus, a high score should lead to a high priority for the project to move forward.
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It is surprising that a building with this kind of growing impact on research has not moved forward quickly with appropriate analysis into Section A due to its low CI score and potential infrastructure failures.9 Condition Index Assessment The condition assessment contractor's process is to initially gather aggregated system-level information to determine deferred maintenance and capital renewal. The primary focus is to determine the age of each system, compare the age to the industry standard life expectancy for each system and project estimated remaining life based on the comparison (age versus life expectancy)
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PLANNING ENVIRONMENT Long-Range Planning Process The long-range planning process at NIH is overseen by the NIH Director and driven by the aforementioned FWG and its subcommittees. The Bethesda Campus Master Plan was issued in 2013 and completed the associated National Environmental Policy Act Record of Decision in 2015.
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16 D Cushing, NIH Office of Research Facilities, "Annual Budgets: Buildings and Facilities Maintenance and Process," March 20, 2018.
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ASSESSING THE NEED FOR RENOVATION, REPLACEMENT, OR ADAPTIVE REUSE The Utility of the NIH Condition Assessment and B&F Prioritization Model The Government Accountability Office identified the following leading practices to manage deferred maintenance and repair backlogs:21 1. Establish clear maintenance and repair objectives and set priorities among outcomes to be achieved.
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The condition assessment provides little impact on the project scoring process as described and weighted. Improving the building condition index is described in the Master Plan as one of the key outcomes.
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Committee's Assessment The NIH has developed many large construction and renovation projects based on the Master Plan and there are several system replacement projects on the funded project list, including the fire alarm reliability for the Clinical Center (CC) and emergency power to assure chilled water, which are more limited in scope.
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, and chilled water monitoring stations in the Central Plant for "real time" data on system performance. The committee believes efforts by this group should continue and be supported with sufficient funding to ensure improved systems reliability; however, these should be evaluated utilizing the Mission Dependency Index as discussed below.
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measures for each component are predicted based on its expected stage in the life-cycle.29 Using Condition Assessment Data and CI in Decision Making NIH has developed many large construction and renovation projects based on the Master Plan from 2013 (fully described in Appendix H) and the rolling 5-year B&F Plan30 that is prepared annually and includes funded projects.31 There are several system replacement projects on the funded project list, including the fire alarm reliability for the CC and emergency power to ensure chilled water, that are more limited in scope.
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. FINDINGS AND RECOMMENDATIONS Finding: All federal agencies are required to maintain a facility Condition Index as part of their real property asset management.
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Underscoring the importance of preventative maintenance, experts have judged that 2 to 6 percent of an annual operating budget should be allocated to preventative maintenance to minimize a facility's rate of degradation.1 Preventive maintenance both saves money and forestalls the need to replace a facility -- which might otherwise require capital and time owing to time needed for evaluation and design to funding and implementation. Preventive maintenance especially helps reduce building failure and poor conditions that can negatively impact mission critical building operations, energy efficiency and employee morale.
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. 2 Sieglinde Fuller, NIST, September 19, 2016, "Life-Cycle Cost Analysis (LCCA)
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They are to be followed by all federal agencies, unless specifically exempted, in evaluating the cost-effectiveness of potential energy and water conservation projects and renewable energy projects for federally owned and leased buildings. NIST Handbook 135, Life-Cycle Costing for the Federal Energy Management Program, explains and amplifies the LCC rules of FEMP.
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