Deferred Maintenance Reporting for Federal Facilities: Meeting the Requirements of Federal Accounting Standards Advisory Board Standard Number 6, as Amended (2001)

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DEFINITIONAL ISSUES AND POTENTIAL REVISIONS 31 DoD excludes activities that are sometimes considered “maintenance” (such as grass cutting) as well as some repair activities that go beyond sustainment (such as restoration of a facility destroyed by fire or repairs done solely to implement a new standard). To use FSM the following are needed: a standard classification of facilities into categories with common units of measure; a standard per-unit sustainment cost for each category of facility; a real property inventory with accurate unit quantities, locations, and projections; and an area cost factor and inflation table. For per-unit sustainment cost factors, DoD obtained standard, off-the-shelf, commercial cost factors wherever possible.3 Computation of a sustainment requirement is as follows: Requirement = Facility Quantity × Unit Cost Factor × Area Cost Factor × Inflation Factor The sustainment requirement formula is run for each category of facility at each location, and the results are summed to the desired level (or view) of the data. For DoD, FSM can provide a sustainment cost by installation, major command, state or country, military service, or for the department as a whole. To determine whether sustainment requirements are being met, two additional tools are necessary: (1) a “table of responsibilities” that allocates responsibility for sustainment to a suborganization and funding source and (2) a budget category that matches the sustainment definition for each responsible organization and funding source combination. Table of Responsibilities Facility quantities (and hence sustainment requirements) must be allocated to the subcomponent organization and funding source that has sustainment responsibility. This process produces a matrix like the one below, where the columns represent funding sources, the rows represent responsible organizations, and the cells are filled in with facility sustainment requirements generated by FSM: Funding Sources Responsible Organization 1 2 3 4 n A B C n 3 DoD Facilities Cost Factor Handbook, April 2000, Office of the Deputy Under Secretary (Installations).