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Study to Reduce the Cost of Maintaining Mdot Road Maintenance Facilities

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TO: Zak Moussa, State Administrative Manager

FROM: Donald Klein, Facilities Management Systems Analyst

DATE: February 3, 2017

SUBJECT: Study to reduce the cost of maintaining MDOT road maintenance facilities

Risk Analysis

I had previously written you to discuss the ways in which the office of Operations Administrative Services could find ways to reduce its expenditures by finding cost reduction strategies in the maintenance operations of its facilities. During the research phase of this study I have found some roadblocks to obtaining the data needed to perform the statistical testing.

Data research and probable difficulty

My original approach for collection was to research historical data on building construction. Once collected we would compare the cost to operate a known facility over its useful life to that of new construction over its useful life using Life Cycle Cost Analysis. One risk is that we collect non-current data that would skew the statistical result when compared to new construction. Another risk is that the data is difficult to extrapolate, seeing that our office operates in conjunction with other agencies and a considerable effort would need to be made to collaborate with these agencies to collect the data in a timely manner. Furthermore, assuming we can gather the data in a timely manner, gathering all necessary data, such as the cost of items in each of the LCCA categories (electrical, mechanical, energy, structural, building envelope, etc.), may prove to be difficult as well.

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