U.S. Army Corpsof Engineers

Why Asset Management?

“Short list”

1000 Coastal Structures 600 Dams2500 Recreational Areas 250 Locks 75 Hydropower

285000 Tracts of land 12000 Buildings 7 Laboratories

VALUE: $200 BILLION+

Lifecycle Infrastructure Management:

Campaign Goal 3c- The Right Business Practices

Executive order 13327-Right-sizing inventory

IT’s the RIGHT thing to do!

WE OWN IT WE MANAGE IT

U.S. Army Corpsof Engineers

What is Asset Management?

Initial state, condition grade „A“

Str

uctu

ral c

ap

acity

Asset Age and Lifespan (in years)- varies between asset types, construction, usage -

Minimum Acceptable Level varies, depending on political,

social and administrative consensus

Strategy: IdealPerformance Level,best and continousmaintenance

Strategy: nomaintenance at all

20 40 80

Strategy b

Strategy c

Strategy d

Strategy a

complete rebuild,changed demands

bes

tw

orst

Depending onmaintenance strategy

A

C

B

Failure

Newasset

U.S. Army Corpsof Engineers

What is important?

USACE Asset Management Workshop

0

10

20

30

40

50

60

70

80

90

Lack

of s

tand

ards

Condi

tion

index

Risk a

nd u

ncer

tain

ity

Busine

ss lin

e pr

oces

ses

Infa

nt m

odels

Scarc

e re

sour

ces

IO o

f IT sy

stem

s

O&M c

osts

Corpo

rate

buy

-in

Busine

ss d

ocum

ents

Miss

ion d

epen

denc

y

Corpo

rate

know

ledg

e

Safet

y

Utiliza

tion

Comm

unica

tion

Secur

ity

Data

com

patib

ility

Comple

xity

Organ

izatio

nal s

tructu

re

Chang

e m

gmt o

f IT sy

stem

s

Category

Imp

ort

ance

U.S. Army Corpsof Engineers

What will we achieve?The Vision…

LCM

BusinessProcessModel

Infrastructure assessment and evaluation

Data Integration Asset Management Plan

Sust

aina

ble

Infr

astr

uctu

reThe R

oad To Green

U.S. Army Corpsof Engineers

How does it work?

Data InventoryScreen

Assessment and Operation

Asset Management

Condition IndexUtilization

Mission DependencyAge

Risk and ReliabilityBenchmarks

Cost/Sustainment

RecapitalizationMajor Rehab

O&M

Life

Cyc

le M

anag

emen

t

Standardization of data, REMIS

Levee Inventory, Dam Inventory, R&D

Business Team, Real Estate, O&M

FEM/MAXIMO, ORNIM, DSPRA,

R&R modelsE&C, R&D, O&M

GOAL 3/EO Deliverables

Detailed Tasks

ResponsibleParty

Performance Metrics5 yr Budget

Customer ExpectationsBusiness Line Leads,

RBC, USACE leadership

Dispose

Dispose

U.S. Army Corpsof Engineers

What is required to get green?

ESTATE

SALE

BEST

OFFER

U.S. Army Corpsof Engineers

What does OMB expect?Executive Order 13327FRPC Vision…

U.S. Army Corpsof Engineers

DMPDCW

AM PDT CentralLead: Knight

Steering CommitteeLead: BarnesSES Members, GOs, ASA(CW) rep

Advisory Team

Business Team LeadsHQ Champions

Technical Task Leads

Who will execute?

U.S. Army Corpsof Engineers

HQ Champions/Portfolio Leads

Programs and leads on national initiatives

Business Team LeadsNavigation, Flood, Recreation, Hydropower, Environmental,Emergency, Water SupplyHQ and MSC rep

Task Leads

Field PDT’sCoP’sPrograms

AM PDT CentralLead: KnightJester (HQ-LRD)Reilly (POA)Ellsworth (CERL)Ercums (HQ-RE)Ellin-Cuebas (HQ-SID)Weyer (RA)

Steering CommitteeLead: BarnesMembers: Loew, Basham, Hecker, Waters, Calcara, Tornblom, Berwick, Martin, White

Advisory TeamInternal (District/Division)External (BOR, NPS, Navy, Academia, CMTS, stakeholders, partners, etc.)

Who are they?

U.S. Army Corpsof Engineers

Condition Assessment

Condition Index: snapshot vs. risk-based Buying Down Consequences (risk) - Buying up Service (reliability) Not a one-size fits all

Component to system (miter gate to Ohio River) simple to complex (screening to monte-carlo) Business line (drivers/consequences) Functional purpose (planning, engineering, O&M) Multi-objective (water supply, hydro-power, security, navigation, environmental, flood) Operational (HydroAmp) to business support (5 yr budget)

U.S. Army Corpsof Engineers

Frequency of inspection in years

V Good Good Acceptable Poor BadA B C D E

Low 120 20 10 10 5

220 20 10 10 5

Medium 320 20 10 5 5

410 10 10 5 2

High 510 10 10 5 2

Co

nse

qu

ence

of

Fai

lure

Gra

de

Condition Grade

U.S. Army Corpsof Engineers

Example: Influence Diagram (Risk Map) for a Example: Influence Diagram (Risk Map) for a Population of TransformersPopulation of Transformers

U.S. Army Corpsof Engineers

Condition Assessment

Given all that: What to do? Continue coordination with key proponents (R&D, Dams, Levees, Security, etc.) Morph OMB directives together (PART and Real Property) Risk and Reliability Summit (August 14-18, 2006 tentative) White paper Risk (Todd Bridges) White paper Condition Indices (David McKay) Test drive with LRD Test drive with Stakeholders Benchmark with other agencies/academia

U.S. Army Corpsof Engineers

Challenges

Standardization Data Inventory Disposal FEM/MAXIMO Risk-based condition Assessment FYDP Life Cycle management

U.S. Army Corpsof Engineers

Life Cycle ManagementStaying Green

The Goals:Improved customer satisfaction5 yr business planSustainable comprehensive approachDefensible budgetDirect link between investment decision and level of service (performance) Disposition- right sizing