# Presentation: 536898

## Maintenance Issue

**SC maintenance funding based on lab submissions for the Integrated Facilities and Infrastructure Crosscut budget for FY 04 is .9 % of RPV**
**Controller has set maintenance funding goals for SC for FY 04 and FY 05 based on NRC Guideline at 2% to 4% **
**Dr. Orbach has expressed setting a 3% goal for SC **

## SC’s MII for Active Conventional Facilities (ACF) 

**  ****	****MII = ****	****	****	****	**
**	****         ****	****        ****Total Replacement Plant Value **
**       ****	**
***Total Maintenance =  Indirect Maintenance from overhead or ******	******	******	******space charges (can be operating ******	******	******	******	******expense or IGPP) ***_***for ACF***_
***Total RPV =  all assets covered by overhead or space charges***
***Goals: 1.4% for FY 04 and 2% for FY 05***
*** ***
** **

**SC’s MII for ****Active Conventional Facilities (ACF) **

## Controller Passback Language on SC FY 04 Budget

**“****Maintenance – SC has consistently funded maintenance of its facilities and infrastructure below the National Research Council recommended industry standard funding levels of 2-4 percent of Replacement Plant Value (RPV) resulting in a significant deferred maintenance level.  The proposed total maintenance funding for FY 2004 provided in the Integrated Facilities and Infrastructure crosscut budget is below on e percent.  **_**SC is directed to increase total maintenance funding for its facilities and infrastructure, as reflected in the crosscut budget, up to the minimum recommended level of two percent of RPV by FY 2005 ($271M) and subsequent years.  In order to provide time for proper planning to execute this significant funding increase, a minimum interim funding level of $189.5M is established for FY 2004.”**_

## SC Maintenance Investment

**Note: Programmatic Maintenance is not collected or reported by all SC labs nor is all capital funded maintenance reported so MII is underestimated to some extent.  Includes maintenance portion of operating expense funded projects (I.e., overhead funded).  **
**Source of Maintenance Data is the Integrated F&I Crosscut Budget**

**1.4%**

**2.0%**

**Controller Maintenance Marks**

## Planned Maintenance Investment  from FY 04 IFI Xcut Budget

**Note: these projections will change to some degree as  improvements are made in accounting for current maintenance expenditures.   **

***Planned Maintenance Investment  from FY 04 IFI Xcut Budget***

**Total: ~$120M**

## SC Maintenance Strategy

- Focus on active conventional facilities
- Conventional facilities are those funded from overhead or space charges
- Set contractor goals as 1.4% for FY 04 and 2% for FY 05
- Provide option for reduced goal in FY 05  based on documented justification
- SC capital funded maintenance to provide the additional 1% to achieve 3% goal

## Requirements

**The goal is a site wide goal and should not be interpreted as requiring 2% of RPV be spent on each facility every year**
**Integrated F&I Budget Crosscut submitted in May will be used to evaluate performance for the budget year**
**FIMS will be used to confirm implementation after the execution year**
**FIMS data are to be updated following the end of the fiscal year. The new data elements are: Conventional Facility Indicator, Contractor Funded Maintenance, Capital Funded Maintenance, Excess Facilities – Near Term and Rehab and Improvement Costs**
**Each lab shall identify conventional facilities and submit the list to the Site Office for validation****      **
**Each lab shall modify FIMS as needed so the facility identified in FIMS is either conventional or non-conventional **_**in its entirety**_**.   This is essential to ensure proper calculation of the MII.  The Site Office will review and validate these changes**

## System Changes

**New FIMS fields:**
**Conventional Facility Indicator**
**Contractor Funded Maintenance**
**Capital Funded Maintenance**
**Rehab and Improvement Costs**
**Excess Facilities – Near Term **
**FY 05 Integrated F&I Budget crosscut submission will be modified to collect:**
**Contractor funded maintenance for active conventional facilities**
**Maintenance portion of line items and GPP for active conventional facilities**

## Definitions

**Conventional Facilities – all facilities for which maintenance is the responsibility of laboratory’s site-wide facility maintenance organization and is funded from overhead or space charges**
**Active Conventional Facilities – that subset of conventional facilities that are not designated excess based on the new FIMS data field “Excess Facilities – Near Term” **
**Programmatic (Non-conventional) Facilities – those facilities for which the maintenance responsibility is assigned to a research division or department.**
**Contractor Funded Maintenance – maintenance funding from laboratory overhead or space charges.  May include operating (expense) funded and maintenance portions of IGPP.  Funding provided by lab Division or Departments for maintenance of conventional facilities **_**should not be included**_** as the intent of the MII performance measure is to adequately and centrally fund maintenance for all conventional facilities via indirect or space charges**

## Definitions

**Capital Funded Maintenance (or, “GPP/GPE/Line Item Funded Maintenance”) - is that portion of a GPP/GPE or line item project that accomplishes maintenance, repair and system/component replacement needs; these are usually previously identified as deferred maintenance activities **
**Rehab and Improvement Costs - The total of all rehab and improvement costs, including needed function or capacity upgrades and the costs to bring the facility in compliance with all applicable building codes, ADA/UFAS, and Life Safety requirements, etc. as well as the costs to make facilities suitable for planned mission needs.   RIC are not to include deferred maintenance costs**

## Maintenance

**Maintenance**

**Component Replacement**