7.5 What are the component renewal and replacement costs?
This is an asset management growth area for the Service. The SAMMS database is structured to capture component renewal using work orders identified specifically for that purpose. Identifying component renewal needs in advance was not originally a component of the condition assessment process. It has been identified as a planned output of the condition assessment process for the second round of assessments, starting in FY 2007. Currently this question cannot be answered due to low numbers of component renewal work orders.
What investment strategies will be employed to manage the accumulation of deferred maintenance and meet operations and maintenance needs? The Service has three funding sources available to maintain assets, Resource Management Construction, and Refuge Public use roads funds.
7.6.1 Resource Management Appropriation
7.6.1.1 Annual Maintenance funds. Annual maintenance funds are not project specific rather they are used to perform preventive maintenance, inspections and required repairs during the year they are required. Annual maintenance funds are expended at the discretion of Regional and field station managers. This is to ensure that funds use is prioritized locally on mission critical assets that must be maintained to accomplish the Service’s mission. By ensuring that these types of activities are funded and take place, deferred maintenance on critical assets is reduced or prevented.
7.6.1.2 Deferred Maintenance Funds.
The Service has policy in place to ensure that appropriated funds in the Deferred Maintenance category are used for deferred maintenance projects. This is accomplished by using controls that ensure that each project funded with deferred maintenance includes a maximum of 25% capital improvement.
7.6.1.3 Frequency of and approach to updating deferred maintenance costs.
Deferred maintenance costs are updated during the comprehensive condition assessment process. A written deficiency cost estimate is done and saved as an attached document in SAMMS. Closure of work orders when work is completed is one trigger that updates deferred maintenance costs. Both Comprehensive and Annual condition assessments which result in closure of completed work orders assist in this process.
7.6.1.4 Updating of costs in plans.
The Service is working out a methodology to keep DM project costs up-to-date using SAMMS data and Crystal Reports. Accurate cost forecasting is important to ensure that projects are adequately funded for the year that they are planned for. This accuracy helps ensure that projects are accomplished on schedule and with as little variance in projected cost as possible.
7.6.1.5 Three-year deferred maintenance cost trends.
Deferred Maintenance backlog reported in CFO audit (billions of dollars)
Year
|
DM estimate
|
2002
|
1.1-1.5
|
2003
|
1.0-1.4
|
2004
|
1.3-1.7
|
2005
|
1.7-2.3
|
The Service Deferred maintenance backlog has increased significantly since 2002. Increases are due to:
Inflation and additional deferred maintenance due to flat or decreasing annual maintenance appropriations.
Implementing the Service’s condition assessment program which has resulted in the addition of new findings.
Completion of a detailed road inventory by the Federal Highway Administration
Increased real property asset portfolio as a result of land acquisitions.
Natural disaster damages, such as hurricanes.
Increased water discharge treatment standards at National Fish Hatcheries.
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