Space Planning with Lifecycle Financial Science & Technology

Science & Technology
Space Planning with Lifecycle Financial
Decision Making- How to Make it Happen
SPACE STRATEGIES 2013 / HYATT REGENCY SCOTTSDALE, ARIZONA
Copyright UTMB Health & HKS, Inc. 2013
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Welcome and Introductions
 Kim McKay, AIA
 University of Texas Medical Branch
 Assistant Vice President
 Facilities Portfolio Management
 Dave McGlashan, RA
 HKS Science & Technology
 Vice President
 Senior Science Architect
 Kenneth DeBoer, NCARB
 HKS - Earl Walls Associates
 Vice President
 Senior Laboratory Planner
Copyright UTMB Health & HKS, Inc. 2013
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Agenda
 Decisions Have Consequences
– the case for Lifecycle-Based
Decision Making
 Space Allocation Challenges
 Institutional Vision and Space
Management
 Data Management
 Case Studies
Copyright UTMB Health & HKS, Inc. 2013
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Decisions Have Consequences
Cheaper is Seldom Less Expensive

Typical Costs for New Projects over the First 10 Years of Operations:







Planning and Design Costs
Construction Costs
Utility / Energy Costs
Operational Costs
Total
1%
11%
17%
71%
100%
Space costs a lot to construct, but much more to operate and maintain
Beware the term “Value Engineering” during Construction
 Cheaper Building Systems and Materials leads to Higher Maintenance and
Operational Costs
 Consider Lifecycle Costs before making decisions during construction
Copyright UTMB Health & HKS, Inc. 2013
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Decisions Have Consequences
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Lifecycle-Based Decision Making
Focus on the Big Picture: People and Politics Change

QUESTION: At how many of your organizations are Facilities Design &
Construction, Maintenance / Operations and Utilities / Energy Costs all
different departmental budgets?

RESULT:





FD&C - Spend little as possible on projects, save capital for other projects
Maint / Ops – More robust quality to save Maint & Ops budget spend
Accounting just pays the bills and logs spend for each department
Departments only concerned with their own responsibilities
SOLUTION: All departments work together toward a common goal
connected to the Institutional Vision. Be Collaborative and Inclusive.
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Lifecycle-Based Decision Making
Focus on the Big Picture: People and Politics Change

How might things be different under these two scenarios?
A. Longstanding Leadership planning to retire over next few years…
B. New Leadership planning to make a name for themselves…





Faculty and Curriculum also change over time
New ground-breaking researcher requires $10M Custom Lab fit up
New Faculty requires oversized office
“The Squeaky Wheel gets the oil”… approval of projects to silence those
who complain the loudest
“Full Moon Syndrome”… crazy requests

Decision Making should be based on priorities and contribution to Vision
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“I need a bigger office.”
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“I need more storage space.”
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Space Allocation Challenges
Dealing with “Space Hoarders”
 PROBLEM: Shell space or other underutilized areas loaded with old
furniture, equipment, supplies, departmental records… things not in use,
but not yet decommissioned or discarded
 SOLUTION:
1. Identify what belongs to whom
2. Conduct a meeting with representatives from each affected department
3. Establish categories for everything in the space




Things that can be sold, consigned or returned to vendor for credit
Things that can be donated or have enough value to be hauled off for free
Files that could be stored offsite, or are old enough to be destroyed
Things that have no value and should be discarded
4. Establish a deadline for each department to take action on their items- and tell
everyone you will have everything remaining hauled off on deadline date
5. Call Waste Removal Service to haul everything that remains on deadline date
Copyright UTMB Health & HKS, Inc. 2013
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Space Allocation Challenges
Dealing with “Squatters”
 PROBLEMS:
 People occupying offices that belong in cubicles
 Departments making unauthorized moves into unoccupied spaces
 Departments “claiming” rights to “their” space… “that room was always ours.”

SOLUTIONS:
 “NIP IT IN THE BUD”
 The longer people are allowed to occupy space that they shouldn’t be in…
the harder it is to remove them.
 Establish Space Standards and Policies where none exist already, and adhere
to them as closely and as quickly as possible
 Spread the Word… “Space” is an asset that belongs to the Institution or
Organization, not to the person or department that claims it first
Copyright UTMB Health & HKS, Inc. 2013
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Decisions Have Consequences

Should we build new or renovate existing?
 What are initial vs. long-term costs?
 How well will the building function?

How much longer should we keep using this building?
 At what point does it become a “money pit”?
 Is the structure sound enough to renovate?

Should we own or lease?
 How long do you plan to be there?
 What is your cash flow?

Informed Space Decisions require a Solid Foundation
 Projects must advance an organization toward strategic goals
 Take everything into account… initial and long term costs / considerations
 Benchmarks, standards and policy make space decisions easier to manage
Copyright UTMB Health & HKS, Inc. 2013
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Institutional Vision
Space Standards, Policies and
Benchmarks
 Tie space management to strategic
plan, mission and vision of
organization
 Policy is basic foundation for all
work with space management
 Executive buy-in is important
 Space standards are imperative to
move toward equitable space
assignment
 Benchmarks are important in
establishing guidelines and
standards
Copyright UTMB Health & HKS, Inc. 2013
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Translating Mountains of Data
into Useful Information
Space Standards based on Benchmarks
 Research - $300 direct expense/
assignable square foot

Academic – (Texas Higher Education
Coordinating Board) 50 sf/student

Healthcare – varies, based on
modalities

Office Space – Facilities Steering
Committee-Approved standards for
space
Translating Mountains of Data
Into Useful Information
The Annual Process:
 Conduct Annual Space Survey
 Prepare Annual Space Report
 Conduct Space Assessments
 Compare to Metrics/Targets
 Conduct Gap Analysis
 Determine Space Utilization
 Determine Facility Condition
 Develop Action Plan
 Develop Capital Requests
 Make Policy Adjustments
 Start again
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Copyright UTMB Health & HKS, Inc. 2013
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Translating Mountains of Data
Into Useful Information
Positive % in the gap indicates excess space
Facilities
Business Operations
Operations and
and Facilities
Business
Excess space above 10% of model
Space constrained below 10% of model
GAP ANALYSIS - SUMMARY DRAFT
DIVISION CODE
CODE
DIVISION
A
B
C=A-B
ACTUAL AREA asf CURRENT MODEL ∆ ACTUAL AREA - % Gap - Current
BASED ON
CURRENT MODEL Area compared to
BENCHMARKS
model
DIVISION NAME
DIVISION
NAME
D
FORECASTED MODEL:
ESTIMATED GROWTH
NEXT 5 YRS
E=C-D
*GAP ∆
For future
Based on dept. projections
% GAP current
and forecasted
area compared
to model
RESEARCH AND
ACADEMIC
RESEARCH
AND ACADEMIC
220.143600
220.143600
220.xxxxxx
230.146400
230.146400
230.xxxxxx
220.143800
220.143800
220.xxxxxx
220.144400
220.144400
220.xxxxxx
220.145100
220.xxxxxx
220.145100
220.xxxxxx
220.144500
220.144500
MEDICINE
INTERNAL MEDICINE
INTERNAL
DEPARTMENT
1
PHARMACOLOGY
PHARMACOLOGY
DEPARTMENT
2
NEUROLOGY
NEUROLOGY
DEPARTMENT
3
PATHOLOGY4
PATHOLOGY
DEPARTMENT
SURGERY 5
DEPARTMENT
SURGERY
DEPARTMENT
PEDIATRICS6
PEDIATRICS
106,171
21,324
12,351
112,051
52,427
51,730
79,245
12,716
10,345
136,960
32,661
45,893
26,926
8,608
2,006
(24,909)
19,766
5,837
25%
40%
16%
-22%
38%
11%
7,700
0
1,200
6,370
1,782
1,140
19,226
8,608
806
(31,279)
17,984
4,697
Actual Area as coded in‘GAP’ between current space Forecasted 5 yr. space
need based on
Archibus
occupied and the benchmark
department
projections
model
Current Space model
based on Benchmarks
18%
40%
7%
-28%
34%
9%
% of GAP
compared to
current area
‘GAP’ as a percent of
‘GAP’ in the future with
actual current space
current excess or
constrained space
Positive % in the gap indicates excess space
Excess space above 10% of model
Space constrained below 10% of model
Copyright UTMB Health & HKS, Inc. 2013
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Institutional Vision and Space Management
Hurricane Ike
Over 1.2 million square feet of campus damaged
Some space will never be returned to service
Logical policy for ground floor usage
Recovery After the Disaster
Must have a plan
Business Continuity primary focus
Establish method for people to return to space
Establish process and priority for moves
For the Future of UTMB
Develop policies and emergency actions plans
Be defenders of policy – HOLD FAST
Copyright UTMB Health & HKS, Inc. 2013
17
Case Studies
No two are alike….

Science
 Disciplines of Science
 Science Sector
 Form of Governance
Copyright UTMB Health & HKS, Inc. 2013

Kuwait University College of Science
 Separation of sexes

DEA Regional Testing Labs
 Laundry

University of Nevada Las Vegas
 Themes & teams
 Science, engineering and art
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Case Studies
Remain Connected with the Plan

Have a Strategic Plan for Science




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
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Clear Long Term Direction
Framework for Decisions
Foundation for Operational Planning
Basis for Accountability
Stimulus for Change
Explain the Business to Others
Welcome Trust Centre for Human Genetics
– Oxford University
 The big idea

University of Texas Arlington
 Tier 1 Research Institution
 Targeted preeminence
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Case Studies
Evolution with PEST Environments


Target preeminence
Narrowly defined themes


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Multidisciplinary programs
Institutional strengths
Support regional economic growth
Fit with potential partners
Align with National Science Roadmaps
Greater motivation to partner
 State funding streams
 Grant funding challenges
 Private sector pipelines

Greater focus on development
 Tech transfer
 Tech capitalization
Copyright UTMB Health & HKS, Inc. 2013
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Case Studies
Hybrid Multidisciplinary Models
Private Sector



Project team adaptability
Entrepreneurial
Regulatory environments
Academic Sector

Cultural shifts
 Governance
 Tenure tracking

Entrepreneurial human resource
 Translational r&D
 Tech transfer and capitalization


Regulatory environments
External partners
Copyright UTMB Health & HKS, Inc. 2013
21
Case Studies
New Drug Development
Preclinical Drug
Candidate Evaluation
Drug Discovery
•
Drug Targeting
•
Formulation
•
Preliminary Animal
Strong Institutional
Competency
Copyright UTMB Health & HKS, Inc. 2013
IND Submittal Package
IND Submission
• Physiology and Target
Development
• Candidate Selection &
Optimization
• Pre-Clinical Efficacy &
Toxicology
• Formulation & Delivery
• IND Application – FDA
Submittal
Limited Institutional
Competency
Real Opportunity
Human Clinical
Trials
Clinical Trials
• Phase I Clinical Trials
• Limited Human Trials
• Phase IIa Clinical Trials
• Continuous - Evaluation
• Human Trial Population (100 – 300)
• Phase IIb Clinical Trials
• Continuous Evaluation & Pilot Plant
Inspection
• Human Trial Population (300 – 500)
• Phase III Clinical Trials
• Continuous Evaluation
• Pilot Plant Inspection
• Human Trial Population (500 –
Thousands)
No Institutional Competency
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Summary
What you should take away
from this Session:




Buildings cost MUCH more to
Operate and Maintain than to
Construct
Focus on the “Big Picture”… link
decisions to Institutional Vision,
Strategic Goals and Objectives
Data Management is essential…
Develop the right Systems and
Processes for your organization
Decisions have Consequences…
you live with them for a long time
Copyright UTMB Health & HKS, Inc. 2013
23
Thank You!
Kim McKay, AIA



University of Texas Medical Branch
Assistant Vice President
Facilities Portfolio Management
Dave McGlashan, RA



HKS Science & Technology
Vice President
Senior Science Architect
Kenneth DeBoer, NCARB



Copyright UTMB Health & HKS, Inc. 2013
HKS Earl Walls Associates
Vice President
Senior Laboratory Planner
[email protected]
(409) 772-3551
[email protected]
(404) 442-7878
[email protected]
(214) 969-5599
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