1 Lifecycle Asset Management A Proactive Approach March 4 th, 2014 Marco Benitez Director of Analysis, Assessment, and Risk Management 1
2 Florida International University (FIU) FIU at a glance: Founded in 1972 in Miami, FL 47,000 students Three campuses with 360 acres of land 8.2 million SQF of construction 1 million SQF construction in progress 117 buildings
3 Establishing an Ongoing Facilities Capital Planning Program Focus on Lifecycle Asset Management (LCAM) Manage by the numbers data-driven decisions Self-sufficiency Strategic & Proactive THEN Tactical NOW Strategic Reactive Proactive
4 LCAM Definition What is Lifecycle Asset Management? Lifecycle Asset Management is a plan developed for the management of one or more infrastructure assets that combines multi-disciplinary management techniques (including technical & financial) over the life cycle of the asset in the most cost-effective manner to provide a specific level of service. - The International Infrastructure Management Manual
5 LCAM Definition In plain English! How we use our limited resources (people and dollars) to fix an unlimited amount of needs so our buildings don t fall apart and the users stop complaining. - Marco Benitez
6 Why Lifecycle Asset Management? Adding value during: Design Construction Conditioning Operating Maintaining Repairing Modifying Replacing Decommissioning / disposal DISPOSAL UPGRADE MAINTAIN PLAN CONSTRUCT
7 TCO (Total Cost of Ownership) Initial Investment TCO 50 year model ($/sqf/month) PO&M Remodel/ Renovate Total Investment 40% 30% 30% 100% $7.82 $5.34 $5.50 $18.66 Decision Matrix: PO&M Recapitalization Based on life investment Based on useful life Based on life cycle 1. Do nothing? 2. Repair? 3. Retrofit? 4. Replace? 5. Replace?
8 Managing by the Numbers
9 Managing by the Numbers All decisions are based on some type of data Be in the right place at the right time with the right information! In a world of constraint resources, we have to justify our jobs on a daily basis.
10 FIU Asset Management Goals Life Cycle Asset Management Goals Prioritize the right facility issues and increase planning precision Increase funding with a reliable Capital Planning Strategy Create self-sufficient program that is repeatable to support long term planning strategy
11 FIU s Life Cycle Approach Gather appropriate facility condition data Hired VFA / JLL to conduct Facility Condition Assessments (FCAs) across the portfolio On-going commitment / resources to keep the data relevant and up-to-date Be in the right place, at the right time with the right information! Use own staff / VFA self-assessment software and proven processes to do this
12 Self-Sufficiency State budget cuts Learning to fish Obsolete information (3yr cycle) Pitfalls: Sharing the dream Team selection Workload, roles, expectations Beyond its useful life problem
13 Data Maintenance = Better Decisions On-going - Facility Condition Assessments are not a one-time, static event Shifting Priorities - Facilities are in motion, business drivers change Data Quality - 3+ year old snapshot of conditions won t give you precision you need
14 FIU s Self Assessment Solution VFA.facility Database Analytics tool VFA.auditor Self assessment tool Used on mobile tablets such as ipad Seamless upload into database more information visit Booth # 2344
15 Challenges and Opportunities Proactive vs. Reactive Service-oriented focus Adding value to Finance and Administration All constituents are equal (pressure washing my sidewalks)
16 Strategic vs. Tactical Identify both immediate maintenance needs and long-term capital investments Prioritize competing requirements in a transparent and fair process FNAG vs. LCAM Data-driven decision-making Preventive Maintenance Program Support T A C T I C S T R A L T E G I C
17 On the Right Path State of Florida requests Model for future funding and allocation Strategic budgeting support Operations planning tool Before they complain be invisible Be Resilient
18 Benefits of Establishing an Ongoing Facilities Capital Planning Program Align your short- and long-term plans with organizational objectives Successfully make the case for the funding you need Strengthen your position within the organization Be in the right place, at the right time with the right information!