Manage the Facility Condition Index (FCI)

1. Manage the Facility Condition Index (FCI) Office of Research Facilities Development and Operations PMP/ORF

2. Facility Condition Index (FCI) Industry Benchmark The FCI: • Developed by the National Association of College and University Business Officers • Provides a Means for Objective Comparison of Building Condition Among Geographically Dispersed Sites • Provides a Clearer Picture of Building Renewal Funding Needs. • Data from Professionally Performed Facility Condition Assessments PMP/ORF

3. Facility Condition Index (FCI)Understanding and Using FCI Facility Condition Index (FCI) Is an industry standard parametric tool used to relatively compare building conditions. total cost of existing repairs FCI = current replacement value Very Good Good Fair Excellent Poor . . . 0% 2% 4% 6% 10% PMP/ORF

4. Facility Condition Index (FCI) FCI Greater Than .30 Facility is in Critical Condition Facility Should Either Be: • Upgraded or • Replaced PMP/ORF

5. Facility Condition Index (FCI) Facility Assessments • Are performed every 3 years • Identify and prioritize the necessary short and long term maintenance and repair requirements. • Establish the condition of NIH’s facilities using the Facility Condition Index (FCI). • Provide the ability to forecast and prioritize the replacement of major components in the buildings. • To better allocate funding resources. PMP/ORF

6. Facility Condition Index (FCI) Facility Condition Assessment • Assessment performed by professional architects and engineers. • Establishes the baseline conditions for the building and its systems. • Identifies, classifies and prioritizes building deficiencies. • Recommends corrective action for each deficiency. • Estimates cost for proposed corrective actions and assigned to the funding sources (R.S. Means). • Maintains building condition and cost data current. PMP/ORF

7. Facility Condition Index (FCI) Projecting Long Term Capitalization • Life of System Determined • Capitalization Rate Projected PMP/ORF

8. Facility Condition Index (FCI) Prioritizing Repairs • Priority 1: Immediate Safety, Building Code, Accreditation • Priority 2:Short term deficiencies, correct within 1 to 2 years • Priority 3:Long term deficiencies correct within 3 to 5 years • Priority 4:Improvements required to improve the performance of the building and its systems. • Priority 5:New code requirements, to be addressed in any major renovation PMP/ORF

9. Facility Condition Index (FCI)FCI by Campus FCI from Facility Assessments: RML, Montana - .04 (Very Good) NIEHS, North Carolina - .05 (Good) Bethesda (No Clinical Center) - .06 (Fair) Poolesville - .06 (Fair) New Iberia, LA - .06 (Fair) PMP/ORF

10. Facility Condition Index (FCI)Status – Future Additions • Building 10 and NCI Frederick Remain to be Assessed, completion in FY 2004. • Backlog of Maintenance and Repairs is $242M with 75% of SF Assessed. • Primary Utility Distribution System Assessments need to be Included. • Looking at adding other Essential Safety and Regulatory Compliance Programs, Asbestos, Fire Protection, and Indoor Air Quality. PMP/ORF

11. Facility Condition Index (FCI)Conclusions Conclusions: • Under Funded to Repair Deficiencies Identified from Facility Condition Assessments • Annual Capital Repair Funding Required – $118.7 Million • Both “Rent” Program and B&F Program Need to Provide Additional Resources • $40 million is Annual Shortfall in Dollars • Current Funding will support an FCI of Fair to Good, not the Good to Excellent Needed to be Compatible with the Research. PMP/ORF