Small Business Innovation Research: Asset Lifecycle Management
In July 2016, this challenge—nominated by the Department of Housing and Public Works—was released to market within the pilot round of the SBIR. Applications to pilot round challenges have now closed. To receive information about the successful solutions, as well as future rounds, subscribe to the Advance Queensland eNewsletter.
Challenge statement: Asset Lifecycle Management
The challenge is to improve the Queensland Government’s understanding of multi-agency asset data, enhance its modelling and predictive analysis capability and drive improved whole of government decision making for asset maintenance planning and procurement.
The Queensland Government, Department of Housing and Public Works, Building Asset Services (BAS) provides asset management services for Queensland Government agencies to support the effective and efficient delivery of services to the people of Queensland. BAS provides strategic advice and decisions around acquisition, inspection and maintenance related service for twenty three Queensland GoveAssrnment customer agencies.
A whole-of-government view of assets and a lifecycle management approach will allow Government to enhance effectiveness and efficiency of spending through improved planning based on access to comprehensive asset data. This proactive approach will also allow responsive and integrated service delivery from all government agencies with supply and maintenance of building assets that are fit for current purpose and the changing needs of the Queensland population, across the entire state.
Additionally, such an approach will allow coordination and development of maintenance programs extending over several years. Forward planning on a portfolio-basis rather than per asset-basis can provide certainty to contractor service providers with stable and consistent work, underpinning confidence and creation of employment opportunities across the state.
Benefits sought from an asset lifecycle management solution include enhanced visibility and detailed mapping of the state’s asset portfolio, and a comprehensive understanding of capital cost and operating cost scenarios over multi-decade periods. This capability will improve decision-making regarding the allocation of public funds and the procurement and delivery of maintenance services. On an individual asset basis, this will aid in optimisation of a facility’s performance while reducing operational costs and risk.
The department seeks feasible and cost effective solutions to enable whole-of-government asset lifecycle management. For clarity, asset lifecycle management includes at least the following capabilities that inform effective and efficient decision-making:
- modelling of current and forecast capex and opex scenarios
- development of dynamic multi-year programs of works (capital and maintenance)
- development of a range of diverse asset management strategies.
Solution components are expected to include consideration of:
- data ingestion, storage and update
- data security
- planning tools
- visualisation tools
- the Queensland Government Maintenance Management Framework (MMF).
Why should it be solved?
Building and Asset Services spends approximately $800,000,000 annually on maintaining building assets across the state to support the effective and efficient delivery of public services. Potential realisable benefits from improved asset lifecycle management include:
- delivery of real procurement savings for government, due to scale and proactive maintenance planning
- improved capability to make informed recommendations around budget allocation in regards to maintenance and capital funding
- provide certainty for industry through multi-year maintenance programs that stimulate job creation, training opportunities, and investment in regional and metropolitan areas
- provide continuity and consistency of work in line with requirements of assets and the delivery of services to the public, stabilising demand and price of service delivery in the marketplace.
This challenge is not unique to Queensland. Asset managers in corporate and government - at all levels and in most countries - are seeking tools to enable effective asset lifecycle management and improved allocation of funding in line with changing demographics and community needs and expectations.
Who is the customer?
The Department of Housing and Public Works, Building and Asset Services (BAS) is the lead customer supported by partnering agencies including Public Safety Business Agency (PSBA), Department of Health and the Department of Justice and Attorney General (JAG). Other stakeholders include Queensland Treasury.
How is the challenge currently being solved?
Each agency's own organisational requirements and history has created variation in how asset data is currently managed and maintained across the Queensland Government. This includes multiple Asset Management Systems and inconsistency in how the information is recorded. This activity requires significant manual effort in just the collection and validation of data prior to providing value back to clients.
The integration and analysis of data to support decision making is currently limited. Analysis is conducted through a range of internal mechanisms relying on access to the knowledge of both the agencies and BAS. The inability to rapidly develop a coherent and confident state-wide perspective for decision making hinders the ability to transition to a proactive and planned maintenance program.
Often, time and capacity for maintenance planning at an agency level has led to a disproportionate amount of maintenance work being compressed and delivered simultaneously. This leads to a spike in workload and individual projects being put to the industry causing peak demand, inflating price.
Considerations of government asset management officers include:
- How critical is this asset in delivering the services we provide today and tomorrow?
- How do we spend our limited budgets to deliver the most value?
- Should an asset be acquired, upgraded or maintained, and to what level and when?
- What multi-year asset management and maintenance programs can be offered to obtain maximum price benefit and stability of service supply?
- How do we best leverage off the strengths of the market and support the provider ecosystems in different locations?
- Enhanced visibility and detailed mapping of the state’s asset portfolio, and a comprehensive understanding of capital cost and operating cost scenarios over multi decade periods.
- Improved decision-making capabilities regarding allocation of limited public funds and the procurement and delivery of services.
- Development of a range of diverse asset management strategies.
- On an individual asset basis, this will aid in optimisation of a facility’s performance while reducing operational costs and risk.
- Provide certainty for industry through multi-year maintenance programs that stimulate job creation, training opportunities, and investment in regional and metropolitan areas.
- Visualisation of asset lifecycle scenarios, including modelling of current and forecast capex and opex scenarios.
- Development of dynamic multi-year programs of works (capital and maintenance).
- Delivery of certainty to contractors, employers and asset owners.
- Consideration of data integration with other systems, and ingestion, storage and updates.
- Security of data.
- Alignment with the Queensland Government Maintenance Management Framework (MMF)
- Diversity of asset management strategies across Queensland.
- The Queensland Government Cloud Computing Strategy must be a key consideration along with the constraints of cloud-platforms in general:
- adequate bandwidth,
- internal cloud capabilities, and
- the overall ongoing costs relating to cloud platforms are necessary considerations.