R&K's Executive Vice President Presents at the Argus Executive Fuel Summit

Executive Vice President of the Real Property Consulting Services, Gary Calese, spoke at the Argus Executive Fuel Summit in Kansas City, MO on April 25, 2019.

Gary presented a session on Department of Defense (DoD) Facilities Sustainment Model (FSM) to start a conversation about establishing a fuel system maintenance budget with the audience of airline and railroad industry fuels managers and various fuels, inspection, and reliability consultants. His comments about the FSM being “defendable” during the DoD and Congressional budget process were echoed by other presenters, who also need a “defendable” process for their leadership buy-in.

Gary led the attendees through the annual DoD Planning, Programming, Budget, and Execution process, starting with the definition of the sustainment requirement, programming the requirement in the Service budgets, defending and justifying the requirement during the development of DoD’s budget, and executing the budget throughout the Future Years Defense Program. Using examples from the recent Defense Logistics Agency study on sustainment of DoD fuels systems, Gary led the group through the development of each Sustainment Unit Cost (SUC) for each of DoD’s 481 real property Facility Analysis Categories (FACs), by identifying specific maintenance tasks and frequency of those tasks for each fuel system facility.

He emphasized the 16 fuels-related FACs, such as those associated with FAC 1211 (Aircraft Fueling Facility) and those FACs for bulk and operating fuel storage. He then described Service budget priorities and strategies for infrastructure investment, such as risk-based investment strategy and goals for a minimum percentage of sustainment based on plant replacement value (PRV); for example, where the Air Force has stated their new goal of establishing a minimum of 2% of PRV for sustainment each year.

Other sessions repeated the Service goals of modernizing building monitoring systems and using business analytics for facilities’ maintenance and inspection. Argus representatives expressed gratitude to Gary for providing the audience with an informative session to understand the “science behind maintenance budget evaluation and strategic planning.

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