Estate Appraisal Policy - Defence

Estate Appraisal Policy

Version Control

Date Version Description

September 2014 2 Released

Contents

INTRODUCTION ........................................................................................................ 1

AUTHORITY FOR ESTATE APPRAISAL POLICY ................................................... 1

BACKGROUND AND KEY CONCEPTS ................................................................... 1

OBJECTIVES............................................................................................................. 2

SUMMARY OF EA PROCESS................................................................................... 4

CONFIRM CRITICALITY AND PERFORMANCE STANDARDS .............................. 5

SCHEDULE APPRAISALS........................................................................................ 8

UNDERTAKE APPRAISALS................................................................................... 13

WORK PACKAGES................................................................................................. 18

GLOSSARY ............................................................................................................. 19

Version 2.1 04 Jul 2014


Introduction 1. The objective of the Estate Appraisal (EA) policy is to describe the requirements of the

EA process. This policy builds on the foundations of Infrastructure Appraisal process, introduced in 2006, enhancing it to meet the changing requirements in DSRG’s management of the estate. EA is based on a comparison between target and actual performance standards for all elements on the estate. It incorporates condition, functionality and compliance in a more explicit fashion than in the Infrastructure Appraisal process.

2. This policy document is supported by accompanying guidance documents that provide detail for key elements of EA:

Attachment 1 Criticality Factor

Attachment 2 Frequency of Physical Appraisals.

Attachment 3 Estate Appraisal Data Model

3. The EA process is designed to assess the integrity, functionality and compliance of all assets and systems across the Defence Estate against defined performance standards. It is the core information gathering process for maintenance and a major input into Base planning.

4. Through the application of EA information that is comprehensive, consistent and prioritised will be provided to decision makers responsible for investment in the Estate.

Authority For Estate Appraisal policy 5. The EA process and the supporting procedures are administered under the authority of

the ASGEBS, DSO.

6. ASEP, ID is a key stakeholder for the use of EA information in determining forward funding guidance for the Estate Maintenance program as an input into the development and prioritisation of MCFP reinvestment project proposals.

7. ASEE, ID is a key stakeholder for defining the compliance related elements of the policy.

8. Regions, contract authorities, Estate Maintenance and Operational Services Contractors (EMOS), Project Delivery Services Contractor (PDS) and National Program Services Contractor (NPS) are key users of this policy.

9. Other providers of specialist appraisal activity such as fire safety and high risk plant are also user of this policy.

Background and Key Concepts 10. Defence has a responsibility under Australian legislation to maintain Estate elements

(buildings, infrastructure, equipment, land and environment) located at all properties in a safe, serviceable and compliant condition.

11. The Infrastructure Appraisal (IA) process has been in place since early 2006. In this time it has supported the identification and prioritisation of maintenance actions according to a facilities’ contribution to capability, ie Contribution Factor.

12. The actual appraisals were carried out through a combination of DSO estate and base support staff, internal and external technical experts, maintenance contractors and user representatives. This mix of contributors resulted in the gathering of information about


the condition of the estate at the building level. Similar information on hazards and plant and equipment was not incorporated in the IA data.

13. The EA process builds on the IA process by expanding to include all assets and systems on the Estate (leased or owned by Defence).

14. EA has also been integrated with the Estate Upkeep service in the new Base Services contracts. While the management of the EA process is seen as a dedicated service Defence expects that the majority of EA assessments, particularly plant and equipment and general condition assessments, will be ongoing and done as part of usual maintenance and service delivery, not as a separate activity.

Objectives 15. Defence has a responsibility under Australian legislation to maintain Estate elements

(buildings, infrastructure, equipment, land and environment) located at all properties in a safe, serviceable and compliant condition. With this in mind there are a number of key objectives for the EA process.

16. To collect data to facilitate effective maintenance management of the Estate:

implement an effective and efficient process for collecting Defence Estate maintenance information.

collect maintenance information that enables informed decisions on asset condition, functionality, and compliance issues such as Building Code of Australia, Manual of Fire Protection Engineering. WHS, environmental, and heritage obligations.

integrate with and inform Defence Estate planning activities and reinvestment prioritisation and programming.

17. Assess the performance of assets and systems against a defined set of assigned performance standards:

assess assets against assigned asset performance standards to accurately reflect the fitness for purpose of the Estate to support Defence needs.

identify asset deficiencies to give a consistent and holistic understanding of the extent of maintenance required on the Estate.

encourage identification of effective solutions to address deficiencies, including operational and management solutions that don’t necessarily involve an estate maintenance requirement.

18. Assess the compliance of assets, and if non-compliant the consequence of this to Defence:

assess assets against compliance standards to ensure Defence meets its compliance obligations

identify asset deficiencies to give a consistent and holistic understanding of the compliance risks apparent in the Estate.

provide scheduling guidance to support solutions to address asset compliance monitoring and deficiency rectifications.

19. Prioritise works using a consistent risk based approach:

use the extent of the deficiency as an indication of risk and the primary mechanism for the prioritisation of maintenance works resulting in the prudent allocation of limited maintenance funding.


use work items as the primary maintenance information component. Work items are subsequently grouped to form work packages to achieve planning and delivery efficiencies. Work packages are one of the primary inputs into the Risk prioritised Estate Maintenance Program.

clearly understand the risk to workplace health and safety the deficiency presents.

Strategic Asset Management

20. Defence applies a strategic approach to asset management, where assets are created, managed and maintained to directly support Defence activities taking into account future strategies and capability requirements.

21. Understanding how an asset is to effectively support a particular Defence capability is central to strategic asset management. This enables consistent identification of deficiencies and associated risk of deferral.

22. The risk associated with not undertaking a maintenance task is central to the prioritisation of limited funding. Works that have a higher level of risk are a higher priority and will be prioritised for funding before works with a lower level of risk.

23. The process for determining the risk of unfunded maintenance tasks is at.

Estate Appraisal Key Concepts

24. The EA process uses the concept of asset criticality and allocation of target performance standards for all elements on the estate. The rules for determining target performance are managed centrally. Initial determination of target performance standards is based on a combination of existing contribution factor and newly defined estate class as documented in the Estaet Register Information Model. Nationally consistent target standards are defined by required condition and required functionality rules.

25. The appraisal process assesses the actual performance that then facilitates identification of actions to resolve the gap between target and actual performance. Management responses for addressing deficiencies are also to be identified in this process. The prioritisation of identified actions uses a scoring system derived from the difference between the target and assessed performance ratings.

26. EA is undertaken primarily by the EMOS contractor who is responsible for the following actions:

Manage the delivery of estate appraisal.

Maintain criticality and target performance standards for all elements on the estate.

Provide advice on strategic impacts.

Plan and maintain a schedule of appraisal activity, including the mix of ongoing condition appraisals, annual desktop reviews and prescribed frequency physical appraisals.

In conjunction with the delivery of EMOS services, provide condition assessments on elements on the estate where such EMOS services are delivered.

Provide an annual desktop review of estate appraisal information and update as necessary.

Provide physical appraisal assessments on all items on the estate in accordance with frequency and scope requirements prescribed in legislation and the Estate Appraisal policy.

Provide support to estate appraisal by others including fire safety surveys conducted by Defence engaged specialist surveyors and other detailed appraisals that may be undertaken by Defence or others.

Schedule and deliver audit, inspection and reporting of Asbestos on the Estate in accordance with Defence Policy - DSRG Strategic and Regional Asbestos Management Plans, including requirements for surveys and survey frequencies. Asbestos Containing Materials data is provided in Section 1.5 Annex B to Annex F, Attachment 3 and includes location, condition and last survey date information for identified asbestos on the Estate.

Validate and incorporate EA related information into the applicable Defence Information Management System.

Provide advice on effectiveness and priority of work packages and project concepts prepared by the National Program Service contractors and others for consideration in the program development process.

When requested by Defence, conduct specialist inspections and/or appraisals on the Defence Estate.

27. Defence Estate personnel are involved in the consideration of capability and planning impacts providing overall endorsement of prioritisation and packaging of works arising from the appraisals.

28. Specialised appraisals may be undertaken by other parties. By example, Fire Safety Surveys and Airfield Pavement Inspections are delivered by specialist providers who are separate to Base Services contractors. Such appraisals are to be conducted in accordance with Estate Appraisal policy, for consistency and integration with EMOS provided appraisal activity.

29. Actions identified through the estate appraisal will be used as inputs for estate planning, maintenance planning, occupancy and use management, regulatory compliance assessment, service optimisation and delivery of Defence Support’s base management responsibilities. Profile information is used to inform reinvestment planning on the estate and for assessing performance of the estate maintenance and other estate investment programs.

30. EA is to provide a clear understanding of the condition of the estate. For funding prioritisation purposes, the focus is on identifying significant maintenance works for forming into work packages. For practicality and efficiency, the minimum cost threshold for EA works items is $5,000.

Summary of EA Process 31. The following diagram provides an overview of the Estate Appraisal process.

Confirm Criticality and

Performance Standards

Confirm Criticality and

Performance Standards

Ongoing Condition Appraisals delivered in conjunction with other EMOS services (EU, LM & others)

Ongoing Condition Appraisals delivered in conjunction with other EMOS services (EU, LM & others)

Annual Desktop Reviews

Physical Appraisals

Update Work

Orders

Update Work

Orders

Update Work

Packages

Update Work

Packages

Schedule AppraisalsSchedule Appraisals

Regulatory Inspections and Auditsdelivered in Estate Upkeep

Regulatory Inspections and Auditsdelivered in Estate Upkeep



Figure 1: Processes for the Estate Appraisal

Confirm Criticality and Performance Standards

Criticality

32. Criticality is an overall measure of the importance from a capability or risk perspective of an asset or an asset system to Defence and the degree of reliability and availability required. Target Performance Standards are assigned and managed centrally to provide consistency across the Estate.

33. The initial activity in the conduct of estate appraisal is to confirm the existing Criticality and Target Performance Standards. The particular circumstances of the item on the estate may have changed since the last appraisal

34. Criticality is rated on a five point scale.

Criticality Factor

1 Highly Critical / Major Importance

2 Critical or Important

3 Support

4 General Purpose

5 Low Importance

35. Criticality is a measure of the importance of an asset to Capability or an asset system to Defence and the degree of reliability and availability required. The factors used for determining criticality are:

Estate Class, that provides an indication of the nature of the asset;

Capability – the contribution to Defence capability;

Support - support assets for the effect of failure on capability;

Safety - Hazardous assets for the effect of failure on safety;

Personnel – LIA and associated support assets

Environment - Assets for the effect of failure on the environment; and

Compliance – Assets for the risk of non-compliance.

36. The capability driver is the most common determinant for criticality. It provides a measure of the link between the activity provided by the facility and the primary outcomes of Defence.

37. Support assets are prominent in the criticality model. These are assets where the effect of failure is significant on the functions they support. Key areas of infrastructure such as electricity, communications and water supply are critical assets.

38. Assets where hazards are common are also critical. These are assets where the effect of failure is significant in terms of safety and realisation of risks associated with the hazards. Assets such as chemical stores, bulk fuel installations and fall from height type facilities are critical for this reason.

39. Assets that are closely governed by legislation and/or Defence policy are also critical, where failure would result in significant consequences in terms of breaches in


legislation or Defence policy (eg Defence security policy). This includes assets such as fire systems, contaminated sites and airfields.

40. Criticality standards are assigned and managed centrally to provide consistency across the Estate.

41. Examples of elements on the estate are provided in the following table to illustate the multi-dimensional nature of the Criticality Factor.

Criticality Type Asset Type

Capability Wharves Airfield Pavements Airfield Lighting Headquarters Buildings Communications Facilities Tactical taretry and Pre-Deployment Training Facilities Fuel Installations Explosive Ordnance Store

Support Sewerage Treatment Plants Emergency Power Systems High Voltage Reticulation Systems Ship Lifts Communications Infrastructure Water Treatment Plants Fuel Hydrant Lines Air Traffic Control Systems Drainage Systems Building Management Systems

Safety Mazardous Chemicals Store Armoury Lighting Systems Compressed air Systems Cyclone Rated Buildings

Compliance Medical Treatment Systems Fire Detection and Suppression Systems Masts and Towers Security Systems

Environment Contaminated Sites Endangered Species Communities Soil Management Areas Bushfire Management Areas

Personnel LIA in remote areas Messes and recreational facilities in remote areas

42. Attachment 1 Criticality Factor provides a more detailed explanation of the basis and rules for allocation of criticality. Criticality Factor has it roots in the Contribution


Factor used in Infrastructure Appraisal. Re-alignment to Criticality provides a broader basis for highlighting maintenance risks in the estate.

43. Criticality is initially assigned by translation from Contribution Factor. The other criticailty aspects (support, dafety, compliance etc) are then applied firstly be Estate Class and secondly by location. To demonstrate by example, an Electrical Reticulation system may have a Contribution Factor of say 3, but if it provides electricity to headquarters buildings and airflied lighting systems on a particular airfield, it would be rated as Highly Critical.

44. Classification based assignment of criticality then needs to be validated on site. There will be local factors that may result in a change in criticailty from the default rating.

45. Criticality is to be reviewed on an annual basis to ensure that it remains accurate and is an approprate basis for conduct of estate appraisal.

Target Performance Standards

46. DSRG is not able, nor does it need to, maintain all assets in as new condition. This is inconsistent with a strategic approach to asset management where assets should only be maintained to a level appropriate to the intended use and importance to Defence activities. Defined and common performance standards allow EA assessments to be more appropriate, realistic and to facilitate consistency across the estate.

47. Target Performance Standards define the standard at which an asset should be performing and provide a benchmark for assessment of actual performance. Target Performance Standards have two dimensions - Condition and Functionality.

48. Target condition relates to the integrity of the asset and provides a measure of acceptable levels of wear and tear or deterioration. Target condition ratings are defined as:

1 – Maximum: As new, no signs of wear and tear.

2 – High: Minor signs of deterioration are acceptable that do not detract from overall appearance or impact on integrity.

3 – Standard: Some deterioration acceptable with non critical impacts on integrity.

4 – Minimum: Visual appearance unimportant, significant signs of deterioration acceptable

5 – Mothballed: The appearance is unimportant, external fabric must only be secure and safe.

49. Target functionality provide a measure of the requirement for the facility to perform its primary function that is, the level at which the asset is required to operate. It provides a sliding acceptance scale from Maxmimum where all functions must be provided through to Minimum where only some functions are supported. The functionality score of 5 (Non-Functioning) is not typcially used for target functionality, unless the facility is about to be replaced.

50. Target performance ratings are defined as

1 – Maximum: Must be fully functional at all times.

2 – High: Mostly fully functional, minor functional issues are acceptable

3 – Standard, some functional issues acceptable.

4 – Minimum: can be made functional if required.

5 – Mothball: Functionality not required.


51. Target condition and functionality standards are also rated on a five point scale. By default, target condition and target functionality is determined based on Criticalty as the following table shows.

Criticality Factor Target Condition Target Functionality

Highly Critical / Major Importance (1) Maximum (1) Maximum

Critical or Important (2) High (2) High

Support (3) Standard (3) Standard

General Purpose (4) Minimum (4) Minimum

Low Importance (5) Mothballed * (5) Non-Functioning *

* Target Condition = Mothballed and Target Functionaltiy Non-Functioning are only used when the facilitiy is about to be replaced.

52. In many cases, an asset will be given a Target Performance Standard consistent with the Criticality rating. For example if an airfield is assigned a Criticality rating of 1 then the Performance standards (Condition and Functionality) for component assets and systems would also be assigned a score of 1. There will always be exceptions to the rule. These will be determined on a case by case basis. Circumstances for localised allocation of criticality and target standards include allowances for personnel comfort in remote areas, cyclone proofing of particular facilties on a base, specific one-off capability on a site, such as the swimming pool supporting the Helicopter Underwater Escape Trainers.

53. Target performance standards will be initially assigned centrally for consistency across the Estate. They may be updated through an approval process on recommendation of estate appraisal practioners and other stakeholders.

Schedule Appraisals 54. It is expected that condition assessments will be integrated into the EMOS day to day

operations. Particularly, plant and equipment and general condition assessments will be ongoing and done as part of usual maintenance and service delivery, not as a separate activity.

55. Appraisals that are not covered by day to day operations would range from annual appraisals of strategic or highly critical assets through defined frequency for all other assets.

56. Physical appraisals are to be planned and scheduled for all parts of the Estate. This includes buildings, structures, infrastructure, linear assets, equipment, land and environment assets.

57. Annual desktop reviews are to be performed. These reviews are to focus on currency of criticality and target ratings and identified work orders. There are many changes occurring on the estate, including those arising from maintenance, changes in use and investment decisions. Such changes are to be incorporated into the estate appraisal information to ensure that the process represents the current and most effective maintenance forecasts.

58. Individual estate items that are serviced and maintained as performance based maintenance or scheduled maintenance items are to be assessed and updated in the EA database as part of the ongoing maintenance program.


59. Where separate whole of structure, infrastructure, or building appraisals are required they are to be scheduled at appropriate intervals depending on their criticality, availability of specialists and location. The scheduling of appraisals is the responsibility of EMOS in consultation with the Regions.

60. Scheduling appraisal activities must be completed in an efficient manner and in accordance with the defined schedule. If external resources are to be used, consideration should be given to undertaking multiple appraisals at a single base at one time.

61. The EA process also covers consultancies on complex, high risk, technical, compliance and environmental aspects of the Estate. There is to be a rolling program, again developed by EMOS in consultation with the Region, of specialist surveys and appraisals and the results of these surveys should be incorporated into the EA data base. Other types of surveys that may be included in the EA data base include

Asbestos Surveys

Fire Safety and BCA compliance Surveys

Hazardous area appraisals and compliance audits

Legislative audits and registers. (eg Joint Special Licensing, cooling towers systems, gas systems, masts and towers etc.)

Wharf and Airfield condition surveys.

62. It is essential when commissioning specialist technical appraisals that requests for services specify that the technical reports document work items in a format that permits them to be input into the EA database. For example the results of an asbestos survey may be the removal of asbestos from a number of buildings on a base. The asbestos removal and making good of each building would be entered as a separate work order and then these would be grouped to form an asbestos removal work package as a subsequent activity through the National Program Services function.

63. It is important that the results of the technical consultancies are entered as work items in order to build a complete and consistent understanding of the condition of the Estate and the extent of any maintenance backlog.

Frequency of Physical Appraisals

64. Attachment 2 Frequency of Physical Appraisals to this Estate Appraisal Policy provides a list be estate class of the maximum period of time between physical inspections on facilities within the footprint of the Base Services contract and in accordance with Estate Appraisal policy. Inspections should, where possible, be performed in conjunction with other maintenance activities. Where this is not possible or appropriate, Attachment 2 Frequency of Physical Appraisals shows the maximum period between the conduct of physical inspections according to Estate Class and Criticality Factor.

65. Where applicable legislation or Defence policy require more frequent inspections than defined here in the EA Policy, the more frequent requirement takes precedence. Requirements for inspections and other appraisal-like activity in other EMOS service packages including Estate Upkeep, Land Management and Pest and Vermin may present opportunities for efficiencies in the conduct of physical appraisals.

66. Highly Critical assets are to be physically appraised on an annual basis. In accordance with the definition of Criticality Factor, there are many Estate Class and CF


combinations that do not apply. These are shown as not applicable (n/a) in the table. A number of other frequency codes are used and are explained in the following table.

Frequency Code Guidance Notes

1, 2, 3, 4, 5, 6, 8 Maximum number of years between physical appraisals.

n/a Not applicable. By definition, items of this estate classes are not expected to have this Criticality Factor.

Defer to Parent Building Frequency designated by the parent building (physical parent).

Defer to Parent Equipment System Frequency designated by the functional parent equipment system.

Defer to Parent Infrastructure System Frequency designated by the functional parent infrastructure system.

Defer to Parent Infrastructure Frequency designated by the parent infrastructure item (physical parent).

As per the Legislative Requirement Frequency is defined in the legislation applicable to this Estate Class, eg AS1851 for Fire

Estate Appraisal Undertaken By Others Physical Appraisals for this estate class are conducted by others. EMOS to support this per EM00.15.008 above.

In accordance with Def Policy Frequency is defined in the Defence Policy applicable to this Estate Class eg Masts and Towers.

In conjunction with Estate Upkeep Service

Physical appraisals are to be conducted in conjunction with Estate Upkeep services.

In conjunction with Land Management Service

Physical appraisals are to be conducted in conjunction with Land Management services.

In conjunction with Pest & Vermin Service

Physical appraisals are to be conducted in conjunction with Pest & Vermin services.

67. Appraisals of Equipment Systems, Infrastructure Systems and Infrastructure include but are not limited to all the associated child estate elements as defined in Estate Register Information Model. The frequency of physical appraisals for those estate classes is depicted in Attachment 2 using the frequency codes above.

68. Where a conflict in appraisal frequency arises between that of a building and the equipment system and/or equipment within the building the more frequent period is to be applied to the applicable items.


69. Defence airfields as a whole are to be appraised on an annual basis. Such airfields are indicated in the estate data as Properties where Function = Airfield and Tenure = Owned. The applicable airfields are listed in the following table.

Region Airfield Property State

Qld Army Aviation Centre Oakey 0207 Qld

Qld RAAF Base Amberley 0861 Qld

Qld RAAF Base Townsville 0874 Qld

Qld RAAF Base Scherger 1218 Qld

NNSW RAAF Base Richmond 0902 NSW

NNSW RAAF Base Williamtown 0908 NSW

SNSW HMAS Albatross 0026 NSW

SNSW Jervis Bay Range Facility 0021 NSW

VT RAAF Base Williams Point Cook 0932 Vic

VT RAAF Base East Sale 0937 Vic

CW RAAF Base Edinburgh 0939 SA

CW RAAF Base Curtin 0954 WA

CW Gin Gin Airfield 0958 WA

CW RAAF Base Learmonth 0960 WA

CW RAAF Base Pearce 0967 WA

CW RAAF Base Tindal 0990 NT

CW RAAF Base Darwin 1302 NT

Defence Airfields For Annual Appraisal

70. DSRG has separate arrangements for appraisal of all airfield pavements and are therefore not included in Estate Appraisal inspections, as indicated by the frequency code Estate Appraisal Undertaken By Others.

71. Physical appraisals of Live Fire Ranges are to incorporate recommendations arising from Range Safety Inspections (* indicates in the list at Attachment 2).

72. Appraisals are to be scheduled using the DEIS. A description of the appraisal is entered, the estimated cost, the type (eg asbestos surveys, fire safety surveys, BCA compliance surveys, or hazardous area compliance audits). The planned date for the appraisal is to be recorded.

Treatment of Linear Assets

73. Assets can be broadly divided into two categories namely linear and non linear. Non linear assets are structures, buildings, and equipment. They are confined to a size and specific location.

74. Linear assets are those that are geographically dispersed and connected to each other via a network, such as roads, pipelines, electrical transmission infrastructure, telecommunication lines etc.


75. The monitoring and maintenance of linear assets is usually important to maintaining critical systems. This is because linear assets often form a significant part of these systems. For example a sewerage treatment plant or a high voltage reticulation system will cease to operate if the pipes and/or cables are not maintained and working.

76. Linear assets typically have particular maintenance challenges as the assets are distributed across various geographical locations and identification of the assets and the network is difficult since the assets are often underground and layered.

Asset Segmentation

77. The main way of managing and maintaining linear assets is through segmentation. This involves dividing the linear asset in a logical way from both an operational and maintenance point of view.

78. Additional information is also included to locate the segment as well as the inclusion of all equipment and support infrastructure that is installed along the linear asset. The equipment and support infrastructure are the constituent parts that make up the system.

79. The location information will vary depending on the asset type, eg:

Roads – Markers, distance points between start and end points, or adjacency to bridges, intersections, signs etc.

Pipeline – Markers, pipe joints, or distance from pump stations, valves, junctions etc

80. For the purposes of EA, the size of the segment should relate to the criticality of the asset and its use. For example the stormwater drainage system situated around a heavily used airfield will need to be assessed at greater level of detail than the drainage system around a large training range. Therefore the airfield drainage system will be segmented to a greater degree of detail and therefore have more segments.

Application of EA on Linear Assets

81. The objectives of undertaking EA on linear assets are the same as for other built and infrastructure assets. That is to:

assess asset segments and associated system equipment against predetermined asset performance standards to highlight asset deficiencies.

identify asset deficiencies to give a consistent and holistic understanding of the extent of maintenance required so that the linear system performs at the required level. This will also highlight the extent of the maintenance backlog.

encourage identification of operational or management solutions to address asset deficiencies

82. Criticality standards are assigned as per the EA process. Given that linear assets are a series of linked segments and equipment in most cases all elements within the system will be assigned the same level of criticality.

83. The EA condition assessments will be ongoing and done as part of usual maintenance and service delivery, not as a separate activity where possible. This particularly applies to assets that can be observed and where technical expertise is not required to assess integrity or functionality. Eg roads as opposed to a sewerage electrical distribution system.

84. Linear assets or equipment that forms part of the linear system that are serviced and maintained as performance based maintenance or scheduled maintenance items are to be assessed and updated in the EA database as part of the ongoing maintenance program.


85. Linear asset appraisals are to be scheduled at intervals depending on asset use, criticality, availability of specialists and location. Scheduling appraisal activities should occur in an efficient manner, for example, if external resources are to be used, consideration should be given to undertaking multiple appraisals at a single base at one time.

Undertake Appraisals 86. The core activity of the assessors is to assess the current condition, functionality and

compliance of an asset or asset system. The day to day condition assessments are aimed at identifying obvious condition related deficiencies on the estate. Recommendations arising from condition assessments are to be considered as part of the overall estate appraisal process. Depending on the scope and priority of the recommendation, some work orders may be routed through the responsive maintenance process.

Information Management

87. The physical inspection utilises assessors who record the EA assessments directly into GEMS. GEMS will be preloaded with information relating to the asset being assessed. This includes the assigned criticality ratings, target performance standards and current work order scheduled against the asset.

88. Specialist technical inspectors undertaking assessments must be provided with and supply in return, information for loading into GEMS.

89. Strategic impacts relating to the asset are held on the system. These are an added guide for the assessor that indicate known strategies that may influence maintenance forecasts for the asset and can include information such whether the asset is planned for demolition or if a potential future project is scheduled.

90. The data used in Estate Appraisal and examples of how it interacts is detailed at Attachment 3 Estate Appraisal Data Model.

Assess Condition and Functionality

91. Condition and functionality are assessed against the target performance standard using the same rating scale as for target condition and performance. Existing “assessed” condition and “assessed” functionality ratings are reviewed and updated as required. This will typically require detailed inspection and or liaison with users and maintainers.

92. If the assessed performance is lower than the assigned standard a deficiency is highlighted. The extent of the difference between the target and assessed performance standards, combined with the criticality factor becomes a measure of the risk to Defence of not addressing the deficiency. This is used as the basis for prioritising works and later grouping of works into work packages and projects.

Assess Compliance

93. Compliance is the other aspect of asset performance that is assessed in the EA process. It is approached in a different way to integrity and functionality. An assessment is made on whether an asset is compliant, and if non-compliant, an assessment of the nature of the non-compliance and the consequence of the non-compliance.

94. The compliance requirements of an asset are determined through legislation and relevant Defence policy. Unlike asset condition and functionality, where differing levels are acceptable depending on use, an asset is either compliant or non-compliant. If an asset is non-compliant the key issue is the nature and consequence of the non-compliance.


95. Known compliance issues associated with the asset are reviewed and updated. A compliance status of compliant, non-compliant or not assessed is recorded. If an asset is non-complaint the reason for the non-compliance is recorded (WHS, fire safety, environmental, heritage etc).

96. The consequence is then rated on a five point scale, covering legislation, environment and safety, as summarised below. This along with the gap between target and assessed condition and performance is used to inform the priority for the identified deficiency.

97. If the consequence is rated at different levels for legislation, environment or safety, the greater consequence is recorded. For example if the consequence is Major for legislation and Moderate for safety then the consequence rating would be Major.

98. Non-compliance consequence ratings are:

1 – Severe Legislation - extreme breach of legislation leading to very high exposure to prosecution/damages

Environment - Irreversible and extensive damage is caused to a World Heritage Listed Area, or Matter of National Environmental Significance under the EPBC Act, a Commonwealth Heritage Listed Site, a National Heritage Listed Site, a Register of the National Estate Site or a Defence Heritage Listed area or asset

Safety - One or more fatalities or life threatening injuries or illness. Public or staff exposed to a severe, adverse long-term health impact or life-threatening hazards.

2 - Major Legislation - significant breach of legislation leading to high exposure to prosecution/damages

Environment - Significant damage is caused to a Heritage Listed area or asset environmentally significant (as per the EPBC Act) that involves either extensive remediation or will take more than 10 years to recover.

Safety - One or more major injuries or illness requiring major surgery or resulting in permanent disablement. Public or staff exposed to a hazard that results in major surgery or permanent disablement.

3 – Moderate Legislation - breach of legislation leading to some exposure to damages or legal constraints, breach of Defence policy

Environment - Moderate damage to the environment or a heritage listed asset or area, which is repairable. The resource or asset will take up to 10 years to recover.\

Safety - One or more injuries or illness requiring hospitalisation. Public or staff exposed to a hazard that results in hospitalisation.

4 -Minor Legislation - minor technical breach of legislation and/or Defence Policy, limited exposure to damages

Environment - Minor damage to the environment or heritage asset or area that is immediately contained on-site. It will take less than 2 years for the resource or asset to fully recover or it will only require minor repair. Disturbance to scarce or sensitive environmental or heritage resources.

Safety - One or more injuries or illness requiring treatment by a qualified first aid person. Exposure of public and staff to a hazard that could cause minor injuries or minor adverse health effects


5 – Negligible Legislation - minor technical breach of legislation and/or Defence Policy, no exposure to damages

Environment - Negligible damage that is contained on-site. The damage is fully recoverable with no permanent effect on the environment or the asset, It will take less than 6 months for the resource to fully recover.

Safety - Minor injury or ailment that does not require medical treatment by a physician or a qualified first aid person.

Cause

99. A deficiency exists if the assessed performance is below the assigned performance standard for integrity and functionality, or a non-compliance is identified. The Cause for the deficiency is to be recorded using the following options:

Maintenance - General maintenance caused by age, wear and tear

Change in Compliance - due to a change in compliance requirements, ie legislation or changes in Defence Policy have subsequently made the asset non-compliant

Change in Capability - due to a change in capability requirements, the asset is require to perform at a higher level, or for a different purpose

End of life – the asset is at the end of its useful life and requires replacement

Work Orders

100. The work order is a description of the task required to bring the asset up to the assigned performance standard. The work item is the core element of the EA process. It is the initiating information for the following rectification processes:

Responsive maintenance – through Estate Upkeep EMOS arrangements

Operational solution - changes to work practices, process or procedural changes can be implemented to rectify the deficiency

EA Work Order - the work is above $5000, not a responsive maintenance task and is subsequently considered for treatment via an estate solution.

101. Work Orders comprise the following information, the full details of the data requirements for work orders are described at Attachment 3 Estate Appraisal Data Model:

Indication of the proposed action (reactive maintenance task, operational solution, or trade type)

the year that the action should be completed in (enables identification of proactive maintenance plans for an asset)

cost estimate

reason for work (maintenance, change in capability, change in compliance requirements, or end of life replacement)

value for money assessment, ie will the work become more costly if it is delayed.

102. The work order is created to document the recommended actions for rectifying the identified deficiency or for mitigation of the identified risk. Work orders arising from previous appraisals are to be reviewed and updated in the appraisal process.


Responsive Maintenance Tasks

103. During the course of the EA, responsive maintenance tasks may be identified. The assessor is to ensure that such works are incorporated into Responsive Maintenance services in Estate Upkeep.

104. During the course of the EA tasks may be identified that require urgent attention. Where a matter is deemed of an urgent nature or life threatening in nature the assessor is to act in accordance with guidance provided for urgent responsive maintenance through the EMOS contractor and their own Standard Operating Procedures (SOP).

Operational Or Management Solutions

105. In the first instance operational changes should be considered for the treatment of risks associated with the identified deficiencies. Deficiencies caused by operations, work practices, or management practices can be rectified through process or procedural changes.

106. Such changes may be facilitated through contractor managed services, contract management, base management, regional management, regulatory policy and training.

107. Where a deficiency is as a result of a change in use or the conduct of activities, operations, work practices, or management practices, it is to be identified and addressed as an operational or management solution to mitigate risk rather than as a responsive maintenance task or EA work item. Solutions may be short term or long term.

Estate Solution

108. The purpose of the EA is to focus on identifying major maintenance works that are packaged together to form risk managed works. Capturing large numbers of small value work items is not efficient and is a duplication of the responsive maintenance process delivered by the EMOS. The rationale of this approach is reinforced by the determination of the cost threshold for EA works item being typically no less than $5,000 and typically not greater than $500,000.

109. The following information is to be recorded for each work item

Proposed Action (responsive maintenance task, operational solution, trade type)

the year that the action should be completed in (enables identification of proactive maintenance plans for an asset)

cost estimate

reason for work (maintenance, change in capability, change in compliance or end of life replacement)

value for money assessment, ie will the work become more costly if it is delayed

110. A prioritisation score is automatically generated for each work order within the EA model made up of weighted delta scores for condition and functionality and raw scores for impact of non-compliance and value for money, see Attachment 3 Estate Appraisal Data Model for further details.

Hazards

111. If the work order has arisen from a WHS hazard, a separate hazard identification and risk assessment is to be undertaken. This involves describing the hazard and the potential harm it may cause.


112. A consequence and likelihood assessment of the hazard are then made using the following criteria applied to the risk matrix, shown below.

Likelihood Rare May occur only in rare or exceptional circumstances, but would be highly unexpected

Unlikely Could occur in some circumstances; surprised if it happens

Possible Possible or likely to occur in some circumstances

Likely Will occur in most circumstances; not surprised if it happens

Almost Certain Is expected to occur; almost inevitable

Consequence Negligible Injury treatable in the workplace (first aid)

Minor Injury requiring professional medical attention

Moderate Injury requiring hospitalisation and/or permanent partial disability

Major Single fatality and/or permanent total disability

Severe Multiple fatalities

Risk Matrix

Consequence Rating Likelihood

Rating Severe

1 Major

6 Moderate

11 Minor

16 Negligible

21

Almost Certain 1

Very High 2

Very High 7

High 12

Medium 17

Low 22

Likely 3

Very High 4

High 9

Medium 14

Medium 19

Low 24

Possible 5

High 6

High 11

Medium 16

Medium 21

Low 26

Unlikely 7

High 8

Medium 13

Medium 18

Low 23

Low 28

Rare 9

High 10

Medium 15

Low 20

Low 25

Low 30

113. The process for assessment and management of hazards will then be informed of the newly created hazard and appropriate action can be subsequently undertaken.

Appraisals By Other Parties

114. DSRG will use a variety of methods for conducting estate appraisal. All appraisals are to use the same process and the same information basis, this includes all technical consultancies, environmental plans, plant and equipment audits and fire safety survey. This allows subsequent consideration of all issues on the estate when developing prioritising and making investment and other decisions in the broader estate management business.


Final Review

115. Prior to completion of the appraisal, all work orders are to be reviewed for the asset or group of assets to check for overall effectiveness and efficiency.

116. Strategic impacts are to be updated at the completion of the appraisal. Useful pieces of information gleaned in the appraisal process, that don’t have a direct bearing on work orders, may nevertheless be valuable for capture and use in other estate processes.

Provide Estate Appraisal Information

117. On a quarterly basis provide Estate Appraisal information to the NPMO. Information is to include:

Report of appraisals conducted and planned including those appraisals conducted by others;

Summary of the strategic impacts applied in the appraisals;

Specific information on highly critical elements on the estate; and

Estate Appraisal data, that is to include

Work Orders;

Target and Assessed Performance Ratings; and

Supporting data as required.

118. The contractor is to analyse the data collected through the appraisal process.

Work Packages 119. Work orders are separately packaged for formation into projects as part of the Program

Initiation process for the Estate Maintenance Program. EA practitioners will be asked to review work packages prepared by others, the National Program Services provider, for effectiveness and value for money prior to progressing to wider consultation and approval.

120. Advice on proposed work packages is to be provided in the following areas:

Value for money;

Technical issues including preventative design recommendations;

Effectiveness of outcomes and mitigation of risks;

Regulatory requirements;

Known constraints and project logistics requirements including access, base activities, occupancy requirements, impacts on EMOS services; and

Forecast of EMOS and other operational implications


Glossary The following terms and definitions are used in this document:

Term Definition

Criticality Asset criticality is a measure of the importance of an individual asset or asset system to Defence. This includes:

the contribution of the asset to the operations of the ADF, defined in the IA model as the Contribution Factor,

the contribution of the asset to the general operations of the base

the risk the operation of the asset presents to Defence as the owner and

The importance of the asset sets the degree of availability and reliability required which in turn sets the level of maintenance priority. Critical assets include both operational assets and support assets that are seen as critical due their function, level of use, or other assets they support.

Asset Deficiencies

Central to the application of the EA process is the identification of deficiencies against the performance standards covering integrity, and functionality. This can occur through physical inspections, technical consultancies, or other asset audit activities.

Target Performance Standards

Assigned Performance Standards are predefined levels at which an asset or asset system should perform based on its use and criticality. These are determined centrally. Asset performance standards cover two attributes; Integrity and Functionality.

Assessed Performance Standards

Assessed Performance Standards are the result of an appraisal being undertaken. The outputs are scores again the attributes of Integrity and Functionality.

CFI Capital Facilities and Infrastructure Branch

DEMS Defence Estate Management System. Current Estate information and workflow management system. To be replaced by GEMS.

Desktop Review

A consolidation and review of available data and information relating to a specific asset, site or system. Desktop reviews are a validation activity and not meant to set the condition of the asset or system under review.

DEC Defence Estate Committee

DSRG Defence Support & Reform Group

EA Estate Appraisal

EMP Estate Maintenance Program. The program of works that funds estate maintenance outcomes, including general maintenance and non Major Capital works projects. Includes the Risk Managed Works Program.

EP Estate Planning Branch of ID

FP&E Fixed Plant and Equipment typically maintained by EMOS contractor under Estate Upkeep service


Term Definition

GEMS Garrison Estate Management System.

NPMO National Program Management Office

NPS National Program Service. A contracted service supporting the management of the Estate Maintenance Program in the Base Services Contracting Model.

PDS Project Delivery Service. A contracted service under the Base Services Contracting Model.

Documents

Estate Appraisal Policy - Defence