Deferred Maintenance Reduction Plan

Steve RiderFacilities Engineering and Real Property Division

NASA Headquarters Office of InfrastructureFebruary 2011

Agenda

• Why we did the analysis• Background• Analysis• Conclusions

2

Why did we do this analysis?An Extract from the 2008 NASA Authorization Act: (a) In General- In order to sustain healthy Centers that are capable of

carrying out NASA’s missions, the Administrator shall ensure that adequate maintenance and upgrading of those Center facilities is performed on a regular basis.

(b) Review- The Administrator shall determine and prioritize the maintenance and upgrade backlog at each of NASA’s Centers and associated facilities, and shall develop a strategy and budget plan to reduce that maintenance and upgrade backlog by 50 percent over the next five years.

(c) Report- The Administrator shall deliver a report to Congress on the results of the activities undertaken in subsection (b) concurrently with the delivery of the fiscal year 2011 budget request.

3

BACKGROUND

4

5

Time (or Service Life)

Ad

eq

ua

te

Per

form

ance

(o

r C

on

dit

ion

)

Ina

de

qu

ate

New Facility

Replace facility.

Average Performance Curve for an inventory with full sustainment

More rapid deterioration due to inadequate sustainment, and subsequent loss of service life.

Repair necessary to bring facility to an acceptable condition.

Recapitalization Investments: Addresses obsolescence, modernization, revitalization by replacement.

Facility Life-Cycle Performance Curve

Background

Background• NASA uses and reports “Backlog” as Deferred

Maintenance (DM)• DM is estimated by:

– Third party contractor estimates condition of 9 systems for each facility

– Facilities are categorized into 42 different building types– Each system’s condition is estimated and given a rating of

1- 5 (5 = very good)– Formula to calculate DM includes building type, system

condition, and Current Replacement Value– Formulas are based upon curves extracted from the Corps

of Engineers builder program 6

Background

• Facilities Resources ($) Available:– Construction of Facilities (CoF)– Facilities Maintenance (Center Management)– Recapitalization– Demolition

7

Background

• This presentation used data newer than when we submitted the report for Congress

• The new data presented some revisions to our original analysis, but not our basic conclusions

• Out-year estimates and data were removed due to the public nature of this venue

8

ANALYSIS

9

NASA DM 2010 by System

10

DM 2007-2010(by Center)

11

All facilities (active and inactive)

12Total Agency DM: $2.55 B all facilities

$2.0 B active facilities

Deferred Maintenance

Active Facilities Only

Condition 2007-2010

13

All facilities (active and inactive)

Condition 2007-2010

14

Active facilities only

15

Current Replacement Value (CRV)

Bill

ion

s $

As of Oct 2010

16

Average Facility Age

(As of Nov 2009)

17

Do

llars

in M

illio

ns

CoF Funding 2006-2011(Procurement Only)

(American Reinvestment and Recovery Act)

18

Maintenance and Repair (M&R)

*M&R is the recurring day-to-day work required to preserve facilities in such a condition that they may be used for their designated purpose over an intended service or design life.

$Mill

ions

Not corrected for inflation

Estim

ated

DM/CRV (%)

19Measured Rate of DM Change Over Time CurveMeasured Rate of DM Change Over Time Curve

All Facilities

2020

DM/CRV (%)

20Measured Rate of DM Change Over Time CurveMeasured Rate of DM Change Over Time Curve

Active Facilities

• Facilities organizations are managing the Agency’s assets the best they can with the resources provided

• The reduction in DM/CRV (%) is primarily due to demolition and secondary new construction

• DM overall has leveled off, but has increased a bit over last year

• With recapitalization funding, it may actually start downward

Analysis Conclusions

21

Five-Year Plan Recommendations

• Our recommendation to OMB and Congress was to continue down our chosen path (steady as she goes)

• As stated earlier, this updated review has not changed that conclusion

• We will continue to measure and monitor our facilities condition and trends

• We’re doing OK

22

QUESTIONS??

23