Introduction to Capital Planning Management Systems
Scottish Healthcare Conference 2013
Michael Kwok, P.Eng. MBA Senior Vice President, Professional Services Ray Dufresne, AIA Vice President, Consulting Friday 8th November 2013
About VFA
Provider of software and services for end-to-end capital planning and management
Established 1998; privately held
Headquartered in Boston, MA, USA Canadian subsidiary HQ in Burnaby
United Kingdom subsidiary HQ in Reading
600 clients in corporate, education, government & healthcare markets
VFA software used to manage over 4 billion square feet of facilities
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Facility Assessments
Capital Planning & Management
Software (CPMS)
Business Process Consulting
+
+
CAMS
Facilities Capital Planning – Basics
PLANNING
ANALYSIS
DATA COLLECTION
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Capital Asset Management Systems (CAMS)
Targeting Metrics Benchmarking
Financial Modeling Capital Planning Scenario Analyses
Baseline Deferred Maintenance Capital Renewal Functional Needs
Implementation Aggregated Projects Accountability Strategic Procurement
Capital Planning Management Solutions (CPMS) / CAMS integrates services, “best-practice” business processes, methodology, and technology to deliver mission-critical information, enabling true lifecycle-based facilities management.
AUDIT
SET GOALS
CAPITAL PLANNING
PROJECT PLANNIING
PROCURE-MENT PLAN
MONITOR SUCCESS
REASSESS
Facility Condition Assessment
Software Application
Consulting Services
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Capital Asset Management Systems (CAMS)
COLLECT & MAINTAIN Facility Information Condition Functional Adequacy Capacity / Utilization Renewal
ANALYZE Facility Data Priorities Benchmarks Funding scenarios Budget impact Portfolio realignment
DEFINE Capital Projects & Plans Annual and Long-term Renewal, Maintenance,
Construction, etc. Communication to stake holders Budget level approval
MANAGE Projects Create & manage work orders Real-time project reporting Communicate results
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Sources of Asset Information
Location / Type
Equipment Inventory
ASSETS
Data Conditions
Space
Operations
Leases
Forecasts
People Internal FM Outsourced FM Business
Managers Building
Occupants
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Asset Inventory and Condition Evaluation
Compile facility data Include photographs and CAD drawings
Create detailed descriptions of assessment findings
Develop detailed cost estimates
Estimate replacement values, deferred maintenance and lifecycle costs
Industry standard data (e.g., R.S. Means)
Classify data for decision support analysis
Price
Acc
urac
y Budgeting
Budgeting + Hot spots
Budgeting + Actionable
Budgeting + Actionable
Statistical Modeling
VFA.auditor
Systems Lifecycle Assessment
Detailed Facility Condition Assessment
Collect & Maintain Facility Information
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Green Building Assessments
Protect and Conserve Water
Indoor Environmental Quality
Environmental Impact of Materials
Optimize Energy Performance
Employ Integrated Design
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Facility Condition Index and HEFCE Code
Facility Condition Index (FCI) An industry-standard parametric
tool used to compare relative building conditions.
FCI = cost of existing requirements
current building replacement value
A B C D
0% 5% 11% 30% 50% 100%
HEFCE Condition Code
HEFCE
FCI Index
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NHS Ranking Protocol
Ranking Protocol FCI can be linked to the NHS Ranking Protocol for Physical Condition
CONDITION DEFINITION CLASSIFICATION FCI
Excellent/as new condition (generally less than 2 years old). Expected to perform as intended over its expected useful service life.
A ≤ 5%
Satisfactory condition with evidence of only minor deterioration. Element/Sub-Element is operational and performing as intended. B 6 - 11%
Poor condition with evidence of major defects. Elements/Sub-Element remains operational but is currently in need of major repair or replacement.
C 12 – 30%
Unacceptable condition. Non-operational or about to fail. Has reached the end of its useful life.
D 31 – 59%
Supplementary rating added to D only to indicate that it is impossible to improve without replacement. X >60%
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Common database prevents silos of information, and allows the organization to use the same data for both strategic and tactical requirements
Centralized asset database provides holistic view of the portfolio
Common terminology and platform
Data hierarchy based on organizational hierarchy
A Centralized Repository of Asset Data
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Plan the information you want to collect
prior to assessing sites
Consider all required assets - both vertical & utilities
Building System Data
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Photo Browser Thumbnails Zoom in Download Upload Caption Attach to buildings,
systems, requirements, etc
Use of digital photographs
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Creation of additional ad-hoc reports
Drag and drop
Customize titles, notes, instructions
Create calculation fields
“Pro” tool available
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Region: 13 Campus: West Campus Asset Name: Timberlake Building
Category-Priority 1 2 3 4 5 Total
Air/Water Quality £0 £0 £0 £6,836 £0 £6,836
Building Code Accessibility £0 £0 £471,020 £0 £118,875 £589,895
Building Code Compliance £46,028 £393,498 £0 £0 £227,534 £667,060
Building Integrity £802,691 £1,219,480 £1,699,412 £4,630 £0 £3,726,213
Energy £0 £0 £0 £43,637 £0 £43,637
Functionality £0 £112,904 £136,187 £161,308 £1,521 £411,920
Hazardous Materials £0 £0 £0 £0 £146,626 £146,626
Life Safety £33,581 £0 £0 £6,364 £3,716 £43,661
Total £882,300 £1,725,882 £2,306,619 £222,755 £498,272 £5,635,848
Crosstabs of Requirements
By Category and Priority/Asset Name
Priority Description 1 Currently Critical 2 Potentially Critical 3 Necessary - Not Yet Critical 4 Recommended 5 Does Not Meet Current Standards
Establish Priorities
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Funding Scenario Analysis
Compare options based on the parameters you specify – years, funding level, inflation rate, etc.
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2.7
2.4
2.1
1.8
1.5
1.2
0.9
0.6
0.3
0
.60
.54
.48
.42
.36
.30
.24
.18
.12
.06
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Fund
ing
($M
illio
ns)
FCI
Blue: Funding requirement to maintain a constant FCI Green: Impact on Facilities Condition Index with level funding over 20 years
Red: Funding needed to reduce FCI to 10% and then maintaining it 16
Applications
Now That You Have It…
What Can You Do With Your
Data?
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Asset Information Management
Dashboards provide critical overview of Portfolio value and conditions Funding needs Key indicators such as FCI
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School F 108,874 7 2 1 3 1School B 44,395 2 5 6 4 2School A 24,257 1 4 10 5 3School G 49,776 8 6 3 6 4Arena 30,600 10 7 2 6 5School C 19,797 3 8 8 6 6School D 83,851 5 1 13 6 7School H 90,588 9 3 9 7 8School J 6,600 11 12 4 9 9School K 5,174 12 10 5 9 10Garage 929 4 13 11 9 11School E 5,628 6 11 14 10 12School L 5,670 13 9 12 11 13School M 3,377 14 14 7 12 14
Rank By Cost Green Upgrades
Per SF
Average of Rankings
Final RankAsset Asset
Size (SF)
Rank By Building
Energy Use Reduction
Rank By Carbon
Emissions Reduction
Potential Level for Certification Certified £348,993 36
Yes No Yes Maybe Unlikely Sustainable Sites 1 11 1 6 5 £17,501
Water Efficiency 0 10 0 4 6 £21,902
Energy and Atmosphere 2 28 2 4 24 £62,558
Materials and Resources 1 13 1 9 4 £174,446
Indoor Environmental Quality 1 18 1 7 11 £72,586 Innovation and Upgrade 1 7 0 1 6 £0
Existing/Potential Points Score 5 87 5 31 56
Category of Sustainability Existing Potential
Cost
Point Levels for: LEED-EB O&M Certification 34-42 Certified 43-50 Silver 51-67 Gold 68-92 Platinum
Scorecards: Analyze Against Evaluation System
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Portfolio FCI Comparisons
FCI =cost of existing requirements
current systems replacement valueFCI =
cost of existing requirements
current systems replacement value
cost of existing requirements
current systems replacement value
2009 Estates Portfolio by Facility TypePortfolio Average = 11.8%
2.6%
8.7%11.2%
14.8%18.5%
0%
10%
20%
30%
40%
50%
60%
Data Centre /Trading Floor
£21.7M
Metro CityOffice
£18.1M
Front of House(Retail) £31.3M
Secondary /Back Offices
£17.6M
BusinessContinuity Site
£26.5M3-Year Backlog Shown
Portfolio Size: 84 (8, 14, 32, 18, 12)
FCI R
ange
Quickly understand condition ranges
Compare building types across regions/portfolios
Review asset or system condition variations by location
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Capital Budgets Ranking
Prioritize all needs based on organizational objectives
Produce multi-year budgets
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Interface with Facility Management systems
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The Six Facet Approach
Backlog Maintenance
• Physical Condition • Statutory Compliance • Environmental Management
NHS Scotland Property
Appraisal Guidance
• Space Utilisation • Functional Suitability • Quality
Standard Functionality of VFA .facility
Future Functionality / Integration with NHS Scotland Property Appraisal Guidance
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Data Imported
Statistics Initially 2 Boards – NHS Lanarkshire and NHS Dumfries & Galloway
(2 sites in NHS Tayside added later) 582 Sites
Owned, Leased, PFI and Third Party Ownership 1,184 Blocks (Total) – 401 (Owned, Leased and PFI) 569K square meters 9,839 Maintenance Backlog Items £148M in Current Maintenance Backlog (All Blocks) £45M in Maintenance over next 5 years Gaps System Lifecycle Data Asset Replacement Costs
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Maintenance Backlog Detail
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Cost Estimating Access to external databases: BCIS, or Own Cost Information
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System Lifecycle Added
Modeled system lifecycle data added for 221 Blocks Owned, occupied buildings
EXAMPLE
System Detail View: System level record BCIS coding Location Quantity Estimated replacement value Associated requirements Documents Photos
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Adjusting Lifecycle based on Observed Conditions
Tailor “normal” data to…
Be contract specific
Reflect maintenance strategies
EXAMPLE: System Detail View
Tailor “observed” years remaining
Tailor “% Renew”
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Prioritization – Budget Ranking Prioritize all needs based on organizational objectives Produce multi-year budgets
Time Criticality
Category of Issue
Building System
Building Use
Building Condition
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Sample Report Using NHS Ranking Protocol
Replace
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Sample Report Using NHS Ranking Protocol
13% 12%6% 9%
3%13%
30%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
Clinic Elderly Health Centre
Hospital Mental Hospital
Offices Residential
FCI R
ange
Portfolio by Facility TypePortfolio Average = 11% (Aggregate 14.5%)
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Credible project lifecycle profile
(Lifts)
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Impact of Replacing Royal Infirmary
Modelled new 55,000 sm hospital to open in 2018
Retired 14 facilities between 2013 and 2022
Results
Elimination of £36.1M in current Backlog
Elimination of £64.3M in lifecycle costs in the next 20 years
Increase in total value of the Estate of £45.7M
Analysis does not include any proceeds of sales of disposed properties
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Funding Levels Required to Maintain FCI
0
0.05
0.1
0.15
0.2
0.25
0.3
£0
£10,000,000
£20,000,000
£30,000,000
£40,000,000
£50,000,000
£60,000,000
£70,000,000
£80,000,000
£90,000,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
FCI
Fund
ing
(in G
BP)
Comparison of funding required to maintain FCI with and without replacement hospital
Funding to maintain current CI w/o replacement hospital Funding to maintain current FCI with replacement hospital
FCI w/o replacement hospital FCI with replacement hospital
Total Funding (2013-2033): £177M Total Funding (2013-2033): £64M
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Funding Levels Required to Maintain FCI
0
0.05
0.1
0.15
0.2
0.25
0.3
£0
£10,000,000
£20,000,000
£30,000,000
£40,000,000
£50,000,000
£60,000,000
£70,000,000
£80,000,000
£90,000,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
FCI
Fund
ing
(in G
BP)
Comparison of funding required to maintain FCI with and without replacement hospital
Funding to maintain current CI w/o replacement hospital Funding to maintain current FCI with replacement hospital
FCI w/o replacement hospital FCI with replacement hospital
0
0.05
0.1
0.15
0.2
0.25
0.3
£0
£10,000,000
£20,000,000
£30,000,000
£40,000,000
£50,000,000
£60,000,000
£70,000,000
£80,000,000
£90,000,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033
FCI
Fund
ing
(in G
BP)
Comparison of funding required to maintain FCI with and without replacement hospital
Funding to maintain current CI w/o replacement hospital Funding to maintain current FCI with replacement hospital
FCI w/o replacement hospital FCI with replacement hospital
Total Funding (2013-2033): £177M Total Funding (2013-2033): £111M
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Modelling Functional Suitability, Quality & Utilisation
Modelled cost to remedy functional suitability, quality and space utilization deficiencies
Used ratings in Property and Asset Management Strategy 2013-2017
Created modelled cost per sm value based on rating
Created requirements in database
Categorized separately form Maintenance Backlog and Statutory Compliance
Improve C to B Improve D to B Improve O to F Functional Suitability £250 £400
Quality £100 £250 Space Utilization £300
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Total Liability across Categories
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Requirements Index vs. Facility Condition Index
‘Current Replacement Cost FCI = Total of Maintenance Backlog & Statutory Compliance costs
‘Current Replacement Cost RI = Total of all categories of facility improvement costs
Requirements Index (RI) is similar to FCI, except in includes all categories of requirements
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FCI vs RI for Lanarkshire Facilities
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Use of Data for Refurbishment Strategies
Insert Graphic
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Sample Project
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Results Successfully demonstrated the ability to:
Work in partnership with 3i Import data from two Boards as stored in 3i
EstateManager Further detailed work performed on data for three Boards
Use VFA.facility to generate: Capital scenario plans Detailed lifecycle profile Budgeting prioritisation Benchmark reports Reports using NHS ranking protocol Details on maintenance backlog
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VFA Contacts
Mike Kwok SVP VFA, Inc. 001 617 772 8170 direct 001 617 251 4069 mobile [email protected]
Ray Dufresne VP VFA, Inc. 001 617 772 8150 direct 001 617 251 4070 mobile [email protected]
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