Facility Budget Planning
R&K can contribute to planning a facility budget in the following, concrete ways:
Since the advent of the Facilities Sustainment Model in the Department of Defense, facilities managers and public works officers have had more money, and been able to expend more on vital maintenance and repairs than ever before. This is due to the financial community’s understanding that requests for funds are based on hard facts, not subjective opinions.
For sixteen years, R&K has provided the Department of Defense with the cost basis for long range facility maintenance and repairs. The essence of this has been the facility sustainment model, and related sustainment unit costs published as the Unified Facilities Criteria, UFC 3-701-01. This guide lists objective repair and maintenance costs for over 400 types of buildings, utilities and other facilities, with detailed sources based upon commercial experience, and fully auditable.
Using these units costs as a guide, and employing both area cost multipliers and auditable inflation factors, facility maintenance and repair costs can be projected five to six years into the future, allowing the Facility Manager to propose a future budget based on:
- Realistic requirements
- Requirements that are auditable by and objective to financial managers
- Commercial experience
- Current and future six years range
R&K can also provide a degradation model, comparing the modeled maintenance and repair requirement with the organization’s budget, demonstrating the effect of under-funding (or over-funding) requirements.
Analysis of facility and component costs supports:
- Lifecycle management of facilities, including acquisition, operations and maintenance, and disposal
- Development of appropriate organizational policies and procedures for each phase of the facility lifecycle
- Estimated planning-level costs of facilities, including acquisition, operations and maintenance, and disposal
- Evaluation of requirements and development of long-range and short-range acquisition plans to meet your business needs
R&K Contract Example:
MAINTENANCE & UPDATE OF DOD FACILITY BUDGET MODELS
Since 2000, R&K Solutions has been developing facilities sustainment cost factors for the Office of the Assistant Secretary of Defense Energy, Installation, & Environment (OASD (EI&E). R&K’s expertise in the modeling of facilities-related requirements and sustainment costs remains second to none. We have been the sole contractor for the DoD Facility Sustainment Model (FSM) and Sustainment Unit Costs (SUCs) which are used in the development of the Program Objectives Memorandum (POM) for all Services. We developed the initial FSM and have supported data collection, business rule development, unit costs development, data processing, and outputs of the FSM since its inception. The generation of a successful FSM requires a thorough understanding of DoD’s real property inventory, expertise in maintaining all categories of military facilities, knowledge of the Services’ unique policies and priorities and the ability to develop an adaptable software solution. The final output is accurate and auditable, and used in programming sustainment and restoration costs for DoD’s inventory of more than half a million individual facilities.
For OASD (EI&E)), R&K also produces a predictive Facilities Degradation Model (FDM) for portfolio-level budget forecasting. The model quantifies the effect of funding shortfalls in terms of declining facility condition and additional future sustainment and restoration costs. From real property databases, FDM draws details on trends in facility degradation available while accounting for known gaps in reporting that can cause outliers in the historical trends.
R&K also holds contracts to provide Facilities Sustainment Support to:
Washington Headquarters Services - R&K assists WHS in developing and defending long range resource planning by providing forecasts of sustainment and operations requirements, and developing a methodology documenting planned new construction and analyzing the facility degradation impact resulting from less than full funding
Defense Health Agency - R&K provides Facilities Sustainment Model (FSM) support to the Defense Health Agency/Facilities Division (DHA/FAC) of the Military Health System (MHS) by assisting in the coordination, compilation, and submission of MHS facilities-related data and other inputs for the DoD FSM and other DoD facility budget programs/processes that are related to forecasting preventative and corrective maintenance across the facilities portfolio. This project includes the analysis of FSM results to identify and facilitate constantly improving budget modeling. The DHA inventory database is also reviewed, assessed and updated for those data that are inputs to the FSM or related to such data.