## [Deferred Maintenance]{.underline}

Deferred Maintenance is defined in [DOE Order
430.1b,](http://www.directives.doe.gov/pdfs/doe/doetext/neword/430/o4301b.html)
Real Property Asset Management Order as \"maintenance that was not
performed when it should have been or was scheduled to be and which,
therefore, is put off or delayed for a future period\".

DM for each asset are developed by each site primarily via condition
assessment surveys and entered in DOE's web-based Facility Information
Management System [(FIMS)](http://65.216.217.68/). DM data in FIMS is
updated in September each year per the [DOE annual
call.](http://www.sc.doe.gov/sc-80/sc-82/documents/FY_07_DM_AM_Guidance.pdf)
DM data are reported to the [Federal Real Property
Council](http://www.gsa.gov/Portal/gsa/ep/programView.do?pageTypeId=8203&ooid=14535&programPage=%252Fep%252Fprogram%252FgsaDocument.jsp&programId=8994&channelId=-15021).

DM is used to calculate the Asset Condition Index (ACI) performance
measure. ACI is calculated as "1 minus the ratio of DM to Replacement
Plant Value (RPV)". The greater the DM the lower the ACI. DM that yields
an ACI less than established goals is a concern.

ACI targets are based on the mission dependency status of a facility as
shown below. The targets are set by OMB in the Three Year Rolling
Timeline
[(TYRT)](http://www.management.energy.gov/documents/ThreeYearRollingTimeline070116Approved.pdf)
which implements DOE\'s [Asset Management
Plan.](http://www.sc.doe.gov/sc-80/sc-82/documents/DOE_Asset_Mgmt_Plan.pdf) 
The goal for mission critical facilities is set higher than that for
mission dependent facilities.

  -------------------------------- --------- -------- -------- -----------
                                   **ACI**                     

  Mission Dependency of Asset      **FY      **FY     **FY     **Long
                                   2006**    2007**   2008**   Term**

  Mission Critical                 0.96      0.962    0.964    0.98

  Mission Dependent                0.946     0.947    0.948    0.95

  Not Mission Dependent            0.95      0.9      0.85     0.85
  -------------------------------- --------- -------- -------- -----------

SC has issued a [decision
tree](http://www.sc.doe.gov/sc-80/sc-82/documents/MC_MD_NMD_tree.pdf)
for determining mission dependency of an asset. The general SC
philosophy is that all facilities are mission related (i.e., Mission
Critical or, Mission Dependent, Non Critical) unless they are
non-operating excess. Also, laboratory buildings (FIMS Usage Category
700) are automatically designated as Mission Critical; however a site
may request approval from SC-31.2 for a lower designation. Based on the
SC approach, SC mission critical facilities account for \$6.24B (80%) of
SC's \$7.8B of general purpose facilities RPV.

**[Deferred Maintenance Backlog Reduction]{.underline}**

Extensive deferred maintenance backlogs compromises mission
accomplishment primarily in the long run as facilities slowly
deteriorate and become outmoded to the point that they are no longer
cost effective, reliable, safe, secure and energy efficient to operate;
are not mission ready; and, pose as a marginal work environment for
world class scientists. SC deferred maintenance backlog at the end of
FY 2007 is estimated to be \$518,000,000. For example, the asset
condition index long-term (FY 2015) target for mission critical
facilities is 0.98 or above, where the index is computed as 1 less the
ratio of deferred maintenance to replacement plant value. A higher index
indicates lower deferred maintenance.

SC's deferred maintenance backlog exceeds the DOE Asset Condition Index
goal by \$232,000,000. See table.

![](media/image1.wmf){width="2.75in" height="7.875in"}Deferred
maintenance backlog reduction activities are currently funded primarily
by the laboratories as overhead, charged to all users of the laboratory
facilities.

To help ensure that DM does not grow, SC has set maintenance investment
targets for our laboratories that, overall, exceed 2% of the
laboratory's replacement plant value. This target is commensurate with
the annual maintenance funding level recommended by the National Academy
of Sciences of 2--4% of the replacement plant value. Since
implementation of this goal in 2005, SC's DM has not grown.

SC's main strategy for reducing deferred maintenance is SC's proposed
Infrastructure Modernization Initiative, which will modernize the
general purpose infrastructure at SC laboratories. The initiative
focuses on increased funding for line item construction projects which
will result in significant additional reductions to the deferred
maintenance backlog. SLI is developing measures for tracking the
progress of the initiative in reducing deferred maintenance, as well as
improving mission readiness, improving operational reliability and
safety, and reducing the footprint and average age of facilities.

Deferred maintenance and ACI are imperfect measures for determining
mission readiness. The 2004 National Research Council Report,
["Intelligent Sustainment and Renewal of DOE
F&I",](http://www.sc.doe.gov/sc-80/sc-82/documents/NRC_DOE_FI_2004.pdf)
*therefore measuring only the physical condition is
[inadequate]{.underline}. For example, the physical condition of a
facility might be perfect (i.e., ACI = 1), but if the facility cannot
meet the mission needs at all, then its MCI should be 0*."  SC is
working to develop additional/alternative methods to determine [Mission
Readiness](http://www.sc.doe.gov/sc-80/sc-82/documents/mission_readiness.pdf).

Deferred Maintenance by Lab FY 07

**[Projections of Deferred Maintenance in the Outyears]{.underline}**

 

Projections of DM backlogs are required to assess the impacts of planned
facility and infrastructure investments on ACI and MII.

 

The following process is repeated for each year for which a DM estimate
is needed.  The DM of facilities planned for removal in the upcoming
year is subtracted from the base DM yielding an adjusted DM.  Then, the
estimated DM to be removed as a result of the maintenance program,
deferred maintenance reduction initiative, IGPP, GPP and line items is
subtracted from the adjusted DM, yielding a further adjusted DM.  Then,
this adjusted DM is escalated by the escalation factor and, then
increased further by estimated DM backlog growth as explained below. 
This final DM becomes the base DM for the following year and the process
is repeated as needed for the planning period which is generally 10
years including the base year.

 

The facilities to be removed are based on the site disposition plan
(i.e., \"estimated disposition year\" in FIMS).   The DM used is the DM
for the facility to be removed that is currently in FIMS escalated to
the year it is to be removed.

 

The DM to be removed as a result of the maintenance program, deferred
maintenance reduction initiative, IGPP, GPP and line items is based on
the site\'s sustainment and recapitalization investment plan.  The DM
should be escalated to the year it is to be removed.

Both the site sustainment and recapitalization investment plan and the
site disposition plan are based on the planning scenario for which
funding guidance has been provided.

 

Generally, the Department recommends a 2.3% escalation rate however the
rate used should be based on local conditions. 

There are 2 kinds of DM backlog growth (BG). BG 1 reflects increased DM
scope due to further deterioration of existing DM. For example a leaking
valve stains ceiling tiles, the need to replace something instead of
merely repairing it or, the need to increase the quantity to be repaired
or replaced.  BG 1 is set at .8% of the existing DM backlog and is based
on a study Whitestone did for the Department. Sites can adjust the BG 1
if they have sufficient historical data to develop statistical valid
alternative factor.

BG 2 is an estimate of the increase in DM scope resulting from not
funding maintenance sufficiently to preclude an increase in DM. This
increase in DM scope must be estimated based on the specifics of the
site's F&I sustainment planning. For example, it may be well known that
some large maintenance items will not be funded in year x and will be
deferred. To the extent that these large items are known, they need to
be included in BG 2. Sites that have experienced increasing DM backlogs
over the last few years should pay particular attention to DM backlog
growth due to insufficient maintenance funding.