HQ Perspective on Asset Management – Thoughts for Coastal Structures Jim Clausner’s interpretation of Jim Walker Vision as Influenced by Sandra Knight’s Perspective Presentation for CTH Coastal Structures Workshop December 5, 2006, Philadelphia, PA

Outline Background –Why –AM 101 HQ Goals – General HQ Goals as applied to Coastal Structures

Why Asset Management? “Short list” 43,000 Structures Tracts of land Buildings Includes: 1000 Coastal Structures 600 Dams 2500 Recreational Areas 250 Locks 75 Hydropower VALUE: $200 BILLION+ Lifecycle Infrastructure Management: Campaign Goal 3c- The Right Business Practices Executive order Right-sizing inventory Budget Performance Integration- Program Assessment Rating Tool Right performance IT’s the RIGHT thing to do! WE OWN IT WE MANAGE IT

How does Asset Management work?

WHAT IS ASSET MANAGEMENT? Asset Management is the art of managing life cycle cost of infrastructure assets with innovative and adaptive strategies that ensure those assets continue to provide value to the nation and meet expected levels of service while mitigating risk – (Sandra Knight, Navigation TD) “Asset Management is the business and decision- making process for the operation, maintenance, repair, rehabilitation and replacement or disposal of assets that allows managers to maximize the asset productivity and manage the related risks and costs. (Rick Lockwood LRP Chief of Operations)

What will we achieve? The Vision… LC M Business Process Model Infrastructure assessment and evaluation Data Integration Asset Management Plan Sustainable Infrastructure The Road To Green

Data Integration ISSUES  Fundamental to success (Lean Six Sigma)  Multiple sources (function, business line, program)  Costly (especially when paid for multiple times)  Must be collaborated  Must have enterprise approach  Must move to geospatial format APPROACH  REMIS- Real Estate Management System  Research (review of all “inventory” data bases)  Set Requirements (business line, programs, OMB, DOD)  Identify Funding Sources  Develop communication plan (HQ champion and PM’s work with PDT’s)

Infrastructure Assessment and Evaluation COMPONENTS  Standards and Criteria  Condition Assessment  Risk and Reliability analysis/models  Inspection and Monitoring ISSUES  Most complex piece of strategy  Will be broad in scope (simple to complex)  Will be tailored to business line issues  Will involve many players with diverse approaches APPROACH  Establish vision/end points  Set achievable deliverables within each program  Conduct workshops on condition assessment and risk-based analysis

Assets - Navigation Structures Navigation, Hydropower and Flood Damage Reduction all have structures All these structures have mechanical components (locks, dams, other FC structures) Ideally we use a common method of assessing the condition –Navigation –Flood Damage Reduction –Hydropower

Flood Damage Reduction Basis of Ranking and Classification Assessing Navigation Projects (Dams) based on: –Condition Assessment: Relative Condition Ratio (Probability of Failure) –Risk: Annualized Relative Economic Risks Engineer Rating/Assessment

Factors and Weightings Seeking information –Metrics based – e.g., tons –Source of much debate among Stakeholders Existing HQ focus on Navigation Locks –LRD took initial effort – rigorous –MVD made simpler and more complete –Cost of repairs/maintenance fairly straight forward –Big Issue – how to develop the economic consequences of failure –Lots of different consequences to consider

USACE Condition Assessment Classification Table Assessment Action Class Characteristics of Facilities in this classActions required for this class I URGENT AND COMPELLING (Unsafe) ACTIVE FAILURE Progressive failure is confirmed to be taking place under normal load. Almost certain to fail under normal load within a few years without immediate action. AND/OR EXTREMELY HIGH RISK Combination of life or economic consequences with probability of failure is extremely high. Validate classification through an external peer review. Take immediate action to avoid failure. Implement interim risk reduction measures, including operational restrictions, and ensure that emergency action plan is current and functionally tested. Expedite investigations, design and construction using all resources and funding necessary. Initiate intensive management and situation reports. EMERGENCY – Facility failure is imminent or has occurred – initiate emergency action plan II URGENT (Unsafe) FAILURE INITIATION LIKELY Dam is expected to fail or an active failure is expected to be initiated as the result of an event (e.g. flood or earthquake) that is reasonably expected to occur prior to remediation although dam safety issues may require confirmation. AND/OR VERY HIGH RISK For confirmed and unconfirmed dam safety issues, the combination of life or economic consequences with probability of failure is very high. Implement interim risk reduction measures, including operational restrictions as justified, and ensure that emergency action plan is current and tested. Expedite investigations to confirm classification. Give very high priority to design and construction funding. III HIGH PRIORITY (Conditionally Unsafe) SIGNIFICANTLY INADEQUATE WITH MODERATE TO HIGH RISK For confirmed and unconfirmed dam safety issues, the combination of life or economic consequences with probability of failure is moderate to high. Consider interim risk reduction measures, including operational restrictions as justified, and ensure that emergency action plan is current for initiating event. Conduct heightened monitoring and evaluation. Prioritize for investigations, design and construction funding considering consequences and other factors. IV PRIORITY (Conditionally Safe) INADEQUATE WITH LOW RISK For confirmed and unconfirmed dam safety issues, the combination of life or economic consequences with probability of failure is low but not tolerable. Conduct elevated monitoring and evaluation. Give normal priority to investigations to validate classification, but no plan for risk reduction measures at this time. V NORMAL (Safe) ADEQUATELY SAFE Dam is considered safe, meeting all essential USACE guidelines with no unconfirmed dam safety issues. AND RESIDUAL RISK IS CONSIDERED TOLERABLE. Continue routine dam safety activities, normal operation and maintenance.

hydroAMP – Brief History and Current FCRPS Program Status Efforts initiated in 2001

Condition Assessment Using a Two- Tier Approach: Tier 1 –Based on tests, measurements, and inspections that are normally performed during routine O&M activities. –Assessment results in a “Condition Index” with a scale of 1-10; higher is better. –Mid to low-range values may trigger Tier 2 evaluation. –Assessment results are easily entered into a Computerized Maintenance Management System (e.g., MAXIMO, Dynastar, OMBIL)

Condition Assessment Using a Two- Tier Approach (cont.): Tier 2 –In-depth, non-routine tests or inspections that may be invasive and/or require specialized equipment and expertise not normally found at the project. –Results are used to adjust the Condition Index score (either up or down). –When performed, adds confidence to the assessment results and conclusions.

Example: Possible Turbine Condition-Based Alternatives Condition IndexSuggested Action ≥ 7.0 and ≤ 10 (Good) Continue O&M without restriction. ≥ 3.0 and < 7.0 (Fair) Continue operation but reevaluate O&M practices. Consider Tier 2 tests. ≥ 0 and < 3.0 (Poor) Immediate evaluation including Tier 2 testing. Consultation with experts. Adjust O&M as prudent.

Navigation Asset Categories Channel –Inland –Coastal Structures –Coastal jetties, groins, etc –Navigation Locks –Confined Disposal Facilities (CDF’s) –Bridges

Process

Asset Management Program Goals (Jim Walker – Navigation BL Mgr) Standardization of practice 5 year perspective Improve customer satisfaction Sustainable comprehensive approach Defensible in the budget process Direct link between investment decision and level of service (performance) Disposition – right sizing

Coastal Structure Assessment Challenges Inspection/Condition Index/ –Simpler/2 - phased/Consistent Risk Based Deterioration Models –Good for rubble mound, armor units –Other types of structures need work Consequence categories to consider –Increased wave heights – reduced traffic ($) –Increased shoaling/dredging/reduced traffic($) –Loss of harbor functionality ($) –Safety, environment, social, etc.

Nav – The Way Forward (Jim Walker) FY09 Goals (Proposed) Establish condition assessment format for Navigation structure maintenance Develop the FY09 navigation budget using condition assessment format (focus on Locks) Establish team and develop navigation channel condition assessments for inland and coastal channels Establish team and develop condition assessments for operations work

Asset Management Bottom Line Corps owns lots of infrastructure Many structures exceeded design life Limited budgets Smart investments Consistent, Risk Based Assessments and Consequences (Continued)

Asset Management Bottom Line (concluded) Integrate AM into Performance Based Budgeting Priorities based on National/Regional perspectives Educate Stakeholders/Congress New Buzz Word - –Reliability Centered Maintenance