Facility Condition Index

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The Facility Condition Index (FCI) is used in Facilities Management to provide a benchmark to compare the relative condition of a group of facilities. The FCI is primarily used to support asset management initiatives of federal, state, and local government facilities organizations. This would also include universities, housing and transportation authorities, and primary and secondary school systems.

Mathematically the FCI is represented as

        Maintenance, Repair, and Replacement Deficiencies of the Facility(s)
FCI=                           ÷
          Current Replacement Value of the Facility(s)

The FCI as a tool was first published in 1991 by the National Association of College and University Business Officers in Managing the Facilities Portfolio. The principal author of the book was Applied Management Engineering, Inc. ([1])(AME), located in Virginia Beach, Virginia.

[edit] History

AME was approached by a research group working on a project that was sponsored by the National Association of College and University Business Officers ([2]) The group asked for a written description of the facility condition assessment process, and related data analysis.

Two of the AME employees that contributed were William H. (Bill) Thomas and the late Emmett Richardson. Both had previously worked for the Naval Facilities Engineering Command (NAVFAC), which is one of U.S. Navy's in-house consulting arms. Thomas and Richardson had calculated the FCI for budget preparation and used the ratio to allocate operations and maintenance money across naval activities and installations. The FCI was a strictly informal tool that Thomas and Richardson used while working for the Navy. It was developed and adopted as an industry benchmark by AME.

[edit] Application

To calculate an FCI a Facility Manager needs to quantify the cost of maintenance, repair and replacement deficiencies. This is typically the outcome of a facility condition assessment. The current replacement value is defined as what monetary value the organization places on the facility. The FCI is a relative indicator of condition, and should be tracked over time to maximize its benefit. It is advantageous to define condition ratings based on ranges of the FCI. Managing the Facilities Portfolio provided a set of ratings: good (under 0.05), fair (0.5 to 0.10), and poor (over 0.10) based on evaluating data from various clients at the time of the publication.

Today, many organizations are determining an appropriate FCI range for these ratings based upon their mission and strategic goals. The Higher Education Facilities Officers, APPA, use the FCI as part of their Strategic Assessment Model, and as a key Facilities Performance Indicators. Recommendation #6 in the National Research Council publication entitled "Stewardship of Federal Facilities states that performance indicators should be used to evaulate the effectiveness of facilities maintenance and repair programs. The American Public Works Association publication, Special Report #62, describes the use and value of facility condition rating systems in Chapter 3.6.

[edit] References

Managing the Facilities Portfolio, [National Association of College and University Business Officers (NACUBO)[3]
“History of the Facilities Condition Index,” Campus Facilities News[4]
The Facilities Audit, page 46,Dr. Harvey H. Kaiser
Plan, Predict, and Prevent: Special Report 62, [[American Public Works Association[5]]]
Strategic Assessment Model (SAM), Higher Education Facilities Officers: APPA[6]
Facilities Performance Indicators (FPI), Higher Education Facilities Officers: APPA
Stewardship of Federal Facilities, National Research Council