Intelligent Sustainment and Renewal of Department of Energy Facilities and Infrastructure (2004) / Chapter Skim
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3 Infrastructure Management Challenges and Opportunities
3 Infrastructure Management Challenges and Opportunities
Pages 29-47
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This chapter discusses the management challenges that DOE faces as it tries to achieve the objectives of Real Property Asset Management (Order O 430.1B)
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and DOE have identified DOE facilities and infrastructure management challenges (DOE, 2003a; GAO, 2003a, 2003b, 2003c, 2001) , and DOE has responded to these critiques by developing improved policies and procedures.
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If meaningful facilities management improvement is to occur, changed business practices need to be adopted throughout the department, tracked as progress is made, and corrected where necessary. The metrics currently defined by RPAM quantify condition assessment but do not connect facilities condition to DOE mission, goals, and objectives.
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Facilities Information Management System RPAM does not prescribe the use of a single software database tool to track both the condition of facilities and the costs of replacement and repair. However, RPAM Attachment 5 appropriately identifies two major components of an effective facilities management strategy: · A detailed, centrally controlled, computerized database of facilities inventory information, and · Accurate knowledge of the condition of facilities and of the costs to replace and repair facilities systems and components.
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These procedures should optimize available resources, provide timely and accurate data for formulating maintenance and repair budgets, and provide critical information for the ongoing management of facilities. Ten-Year Site Plans The committee supports the RPAM requirement that sites develop and revise annually a ten-year site plan (TYSP)
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There are obvious differences between a business plan for private industry facilities, which are driven by financial return on investments, and a plan for DOE facilities, which are mission driven; however, as indicated in the NRC publication Investments in Federal Facilities: Asset Management Strategies for the 21st Century, the frameworks for making effective decisions are similar and include the following: · Common terminology, · A basis of shared information, · Decision processes that are clearly defined and incorporate multiple deci sion points, · Performance measures, · Feedback process, · Methods for establishing accountability, and · Incentives for groups and individuals. Together these components support decision making related to facilities require ments and investments, create an effective decision-making environment, and provide the basis for measuring and improving facilities investment outcomes.
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Including facility depreciation in the annual finan cial report has the advantage of highlighting to policy makers and governing bodies the fact that institutions use up physical assets. Seeking agreement to fund a facilities reserve or provide an annual operating budget based upon either calculated depreciation or a fixed percentage of RPV may be a successful approach to generate an annual stream of revenue.
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By using this component approach, similar to the subsystem approach described above, even complex and unique facilities can often be referenced to standard sources, thus providing validity to the resulting summary sustainment requirements. For example, the Navy indicated that 93 percent of its current sustainment
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Thus the current DoD-accepted recapitalization rate goal of 67 years is a composite made up of 100-year rates for airfield aprons, ground drainage systems, electrical distribution systems, etc., averaged with 50-year rates for roads, railroad tracks, and heat distribution systems, with 25-year rates for pipelines and refrigeration plants, and with recapitalization rates for other F&I with shorter useful life expectancies. It is important to point out that the resulting recapitalization rate is designed as a macrolevel tool for corporate-level physical plant analysis.
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7. The DoD process identifies the budget required to operate the facilities inventory accepted by the agency.
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There also needs to be a process that includes requirements for all PSOs and DOE site managers to keep OECM informed of changes in program missions, budgets, and schedules as well as problems encountered in implementing the requirements in the order. NNSA has learned from implementing TYCSPs (or TYSPs)
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and concluded that the act did not address the need for complete and accurate site plans. However, GPRA does specify that annual performance plans should establish performance goals expressed in measurable forms and performance indicators to assess relevant outputs, and that they should provide a basis for comparing results with goals.
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Contract Management Options For the most part, DOE facilities and infrastructure are government owned and contractor operated. F&I stewardship responsibilities are part of the M&O contract for each site.
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· NNSA indicated that the performance data are part of the annual perfor mance evaluation plan developed by the DOE site office with input from headquarters. The data are collected, compiled, and retained at the DOE site offices, and become the basis for the federal appraisal of each con tractor's F&I management performance.
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The committee notes that the award fee is not the only reason M&O senior managers are involved in F&I issues but it is a major factor. The committee believes that OECM should take the lead in documenting the performance measures and award fees utilized throughout DOE M&O contracts and use this information to validate a set of best practices that should be considered for department-wide implementation.
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If meaningful facilities management improvement is to occur, improved business practices need to be adopted throughout the department, tracked as progress is made, and corrected where necessary. The DOE plan needs to provide a clear, quantitative statement of overall F&I objectives and these objectives should be further detailed in departmental polices, orders, and implementation guidance.
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The DOE inspector general's audit report Planning for National Nuclear Security Administration Infrastructure (DOE, 2003f) , on the reliability of ten-year comprehensive site plans (TYCSPs)
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2004b. National Nuclear Security Administration FY 2005-20014 Ten-Year Comprehensive Site Plan Guideline.
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2004b. Investments in Federal Facilities: Asset Management Strategies for the 21st Century.
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