In early April, we released the 12th edition of our State of Facilities in Higher Education. Nearly 800 people joined us for a webinar with Lalit Agarwal of APPA and Mike Moss from SCUP as we talked about trends in this year’s document. During that session, and since that time, we have received a number of questions about the report. We wanted to share our replies to some of the questions that have the broadest appeal and interest.
Q: How have campus operations adjusted service delivery based on occupancy? Dynamic cleaning services? Changes to maintenance? Any case studies or early adopters to showcase?
A: This is a great question. In addition to straightforward efforts to realign service delivery with expected need, we are hearing about schools attempting to use more technology to inform custodial care practices in the same way that they will attempt to further leverage energy management and CMMS tools to match deployment of resources to match need. Technology to track use in restrooms, for example, will minimize excess cleaning and supply replenishment in these intensive spaces. And schools are definitely exploring internal tools or engaging business partners who can help track in real time the level of activity in spaces in order to inform all manner of maintenance and care activities. Such efforts can even affect external care, if they are sophisticated enough to make visible the level of activity between built spaces. Check in with the folks at the University of Florida as an example of places where they are doing all in their power to leverage technology.
Q: You touched a bit on the recent market disruptions, but that is only an extended reach to budgeting. The more direct one is the dissolution of the Department of Education. This has a direct tie to fed funding to education. How did that help or hurt institutions?
A: Each year’s report is based on the previous year’s data. So the 12th edition report is not a reflection of the latest federal activity. At this moment, it is entirely unclear how changes to the Department of Education are affecting institutions for the long-term. It is difficult even now to speculate as the landscape is constantly changing. It is fair to say that at a base level, the loss of support for many of the data gathering components of the department means it will be harder in the future to measure performance or even track key indices that are used to measure institutional and industry health. As the story develops, it is likely to become clearer how changes in support for financial aid programs, programs for students with special needs and others will impact both individual schools and the academy broadly. The 13th edition of the report will reflect early responses and implications.
Q: A lot has been said about long-term vs. short-term decision-making. In this current climate, there is a tendency to abandon longer-term strategies like Total Cost of Ownership modeling and Lifecycle Costing in lieu of easy, short-term decisions that end up costing more in the future. What efforts are being pursued by APPA or SCUP to encourage and educate members on the importance of maintaining a TCO/LCCA perspective, thinking creatively for adaptive reuse, space optimization, as well as pointing them towards work done by our partners like Gordian that will empower them in advocating for effective resources?
A: Both APPA and SCUP as organizations are supportive of models that reflect life cycle costs and the full implications of ownership. While TCO is generally the right choice, it may not be viable in every situation. Each campus and its leadership need to make choices that are in the best interest of their institution; at any given time, this may not be aligned with a TCO/LCCA long-term approach. In particular, while delivering APPA’s professional development offerings, the programs, including APPA-U, annual, regional and state conferences, and virtual offerings, identify the benefits of a long-term outlook with the TCO approach. Similarly, SCUP regularly features practitioner perspectives on TCO and long-term approaches through conference sessions and articles in its Planning for Higher Education (PHE) journal, providing peer insights on strategic facilities planning. As these ideas continue to proliferate, campus leaders will be able utilize the case studies of creative and effective adoption of these principles to encourage, model und ultimately implement a long-term outlook.
Q: Are there any procurement strategies that you have experienced that help mitigate the costs? Bundling of solicitations? Trade specific master agreements?
A: There is a Gordian specific answer to this question, but first some broader comments. Institutions are definitely moving toward procurement of packages as early as possible during design on large projects to help keep escalation to a minimum. This is particularly the case with items that seem to still be struggling with post-pandemic recovery like primary electrical systems and some HVAC system components. In order to do this, it is necessary to make large assumptions about building design, including accepting more flexible and less specific designs elements. In this spirit, it may be useful to consider taking up the thinking of the Council on Open Buildings, whose fundamental ideas align quite well with this procurement reality. Consortia and cooperatives have provided another vehicle to streamline costs, for communities that have not taken advantage of them previously. Bundling of packages or even projects is always a great way to drive interest and inspire competition, but it may do little to alter the fundamental material costs unless you can radically alter the scale of your work.
In addition to the planning work that provides the data for this report, Gordian also facilitates the delivery of a tremendous amount of Job Order Contracting work across the country, for federal, state and local governments, in healthcare and across education. These indefinite delivery, indefinite quantity contracts provide the flexibility to move quickly and predictably on project activity, keeping costs under control.
If you haven’t considered the use of Job Order Contracting, one of the experts at Gordian would be glad to help you explore whether it could be beneficial to address your needs.
If you have any questions about the report or these replies, please reach us at: [email protected].
