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DISCOVER | DEVELOP | DELIVER Ms. Kelly Moon Branch Chief, Strategy and Policy Integration Branch, Programs Integration Division Directorate of Military Programs US Army Corps of Engineers 13 June 2019 DOD FACILITY INVESTMENTS ASSESSMENT, RISK & PRIORITIZATION METRICS UNCLASSIFIED UNCLASSIFIED

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  • DISCOVER | DEVELOP | DELIVER

    Ms. Kelly MoonBranch Chief, Strategy and Policy Integration Branch, Programs Integration Division Directorate of Military Programs US Army Corps of Engineers

    13 June 2019

    DOD FACILITY INVESTMENTSASSESSMENT, RISK & PRIORITIZATION METRICS

    UNCLASSIFIED

    UNCLASSIFIED

  • US Army Corps of Engineers • Engineer Research and Development Center

    UNCLASSIFIED

    UNCLASSIFIED

    Traditional Approach Process Expert survey collects deficiencies and estimates costs

    to address Prioritize and fund, usually in worst-first approach (by

    facility CI) Results Subjective results based upon experience and

    interpretation of organizational standards by inspector(s)

    Reactive management occurs after items fail Limited forecasting to depict consequences of different

    investment strategies and levels

    No systematic assessment of risk

    2

  • US Army Corps of Engineers • Engineer Research and Development Center

    UNCLASSIFIED

    UNCLASSIFIED

    Engineering Approach3

    Assessment• Determine Condition of

    Asset Portfolio

    Analysis• Compare current

    condition against mission requirements

    Prioritization• Invest to ensure mission

    readiness and maximize ROI

    Execution• Based upon priorities and

    availability, fund and execute.

    Section

    Component

    System

    Building Facility

    (B20) Exterior Closure

    (B2010) Walls

    Masonry Metal Panel Curtain Wall

    (B2020) Doors

    (D30) HVAC

    (D3020) Heating

    300 MBH Gas Boiler

    Process Perform where investment action take place – at the

    facility component(-section) Rating scale based upon observed condition Modeling and Analytics to project component

    deterioration Enterprise defines condition standards (i.e.

    thresholds) that trigger investment Enterprise defines prioritization metrics and weights

    to develop 1-N list• Consider engineering, cost, and function risks as

    determined by organization mission Results Transparent development of investment

    requirements based upon Enterprise-wide standards Traceable requirements from portfolio to local

    execution Foresight into future conditions and results of

    investment strategies and tradeoffs

    2013 DoD Policy Memo – Standardizing Condition Assessments

    3

  • US Army Corps of Engineers • Engineer Research and Development Center

    UNCLASSIFIED

    UNCLASSIFIED

    A Few Thoughts on FCI… [F]CI is required reporting metric for all Federal Facilities

    Sum of assets CRV != PRV• FCI of 0 happens sooner than total facility degradation• Facility mission often changes from original design• Rapid pace of technology change, especially for R&D facilities

    How to consider deferred or alternative investment requirements?• I.E. repair today is deferred for replacement/upgrade in 2 years

    PRV “target” is imprecise• Original construction vs. current design standards

    4

    FCI is an effective metric to communicate incurred risk, but be careful of assumptions about the scale of values

    Repair NeedsPlant Replacement Value

    FCI = ( 1 - ) x 100

  • US Army Corps of Engineers • Engineer Research and Development Center

    UNCLASSIFIED

    UNCLASSIFIED

    Engineering-based investment planProvides decision support to all echelons of the organizationHighlights investment opportunities to stretch limited SRM

    resourcesBalances mission and economic priorities based on mission

    requirementsProvides course of action analysis

    • Avoidance of big ticket item failure (Future Shock)• Awareness of the consequences of today’s decisions (Law of Unintended Consequences)

    Provides a consistent [F]CI calculation based upon objective assessments and Enterprise-defined rules

    OUTCOMES

    5

    All at costs 50-75% less than traditional deficiency-based assessments

  • US Army Corps of Engineers • Engineer Research and Development Center

    UNCLASSIFIED

    UNCLASSIFIED

    0

    200M

    400M

    600M

    800M

    1000M

    1200M

    1400M

    2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

    Port

    folio

    Impl

    emen

    tatio

    n (S

    F)

    BUILDER™ Implementation History

    Proven GOTS solution

    Sustainment Management System

    • Modules for buildings, pavement, track, fuels*, and utilities*

    • Department of Defense Standard• Multiple Federal Agencies• Commercial availability through licensing

    partners

    Over 1.1B Sq Ft!

    * Under development6

  • US Army Corps of Engineers • Engineer Research and Development Center

    UNCLASSIFIED

    UNCLASSIFIED

    More Information

    Mr. Lance Marrano Director, SMS Technical Center of ExpertiseERDC-CERLChampaign, IL(217) [email protected]

    http://www.sms.erdc.dren.mil SMS Resources

    http://www.erdc.usace.army.mil Installation Operations (more products and

    expertise from the Engineer Research & Development Center)

    7

    DoD Facility investmentS�Assessment, Risk & prioritization MetricsTraditional ApproachEngineering ApproachA Few Thoughts on FCI…OUTCOMESSlide Number 6More Information