Rule R23-6. Value Engineering and Life Cycle Costing of State Owned Facilities Rules and Regulations.

As in effect on August 1, 2009

Table of Contents

• R23-6-1. Purpose.
• R23-6-2. Authority.
• R23-6-3. Definitions.
• R23-6-4. Scope.
• R23-6-5. Special Exemption Procedures.
• R23-6-6. Methodology.
• R23-6-7. Application.
• R23-6-8. Responsibilities.
• KEY
• Date of Enactment or Last Substantive Amendment
• Notice of Continuation
• Authorizing, Implemented, or Interpreted Law

R23-6-1. Purpose.

These rules implement Subsection 63A-5-103(1)(f) and 63A-5-206(8).

It is the purpose of these rules to ensure that the state owned facilities shall be life cycle cost effective. To achieve this objective, Value Engineering and Life Cycle Cost Analysis is to be used in the facility design process by the Division of Facilities Construction and Management.

R23-6-2. Authority.

This rule is authorized under Subsection 63A-5-103(1)(e), which directs the Building Board to make rules necessary for the discharge of the duties of the Division of Facilities Construction and Management.

R23-6-3. Definitions.

(1) Division: The Division of Facilities Construction and Management.

(2) Director: Director of the Division or designee

(3) GSF: Gross Square Feet

(4) Value Engineering: A structured methodology that analyzes functional requirements, identifies alternatives to perform these functions and evaluates the alternatives using Life Cycle Costing techniques.

R23-6-4. Scope.

To the extent appropriated by the legislature, Value Engineering will be applied to achieve cost effective design solutions and informed decision making by the Division, for the following activities:

                                                     TABLE

     A.  PROGRAMMING
     1.  Site Selection                  as feasible
     2.  Existing Facilities             Over 30,000 GSF
     3.  Energy Conservation             Always
     4.  New Facilities                  Over 30,000 GSF

     B.  DESIGN FOR CONSTRUCTION
     1.  New Construction                Over 30,000 GSF
     2.  Renovation                      Over 30,000 GSF
     3.  Energy Conservation             Always
                                                            

Only facilities which fall below these area requirements will be automatically exempted. Other projects may be subjected to Life Cycle Cost Analysis at the discretion of the Director.

R23-6-5. Special Exemption Procedures.

Upon written request by the Director, the Building Board may issue a special exemption for a facility from meeting the Life Cycle Costing requirements of these rules. The Director's special exemption request shall include a full justification.

After reviewing the special exemption request, the Building Board will approve or disapprove the Director's request. Board approval shall be based on the findings that the public interest is best served by approval of the exemption.

R23-6-6. Methodology.

One or more methods of economic evaluation may be used as appropriate to assess the Life Cycle Cost effectiveness for each of the activities identified in Section R23-6-4. Methods may include, but are not limited to:

(1) Standard practice for measuring Total Life Cycle Cost of building systems. American Society for Testing and Materials (ASTM designation E917-93).

(2) Recommended practice for measuring Net Present Value and Internal Rates of Return for Investments in buildings and building systems. National Institute of Standards and Technology (NBSIR 83-2657).

(3) Recommended practice for measuring Simple and Discounted Payback for Investments in buildings and building systems. National Institute of Standards and Technology (NBSIR 84-2850).

(4) Standard practice for measuring Benefit to Cost and Savings to Investment Ratios for buildings and building systems. American Society for Testing Materials (ASTM E964-93).

R23-6-7. Application.

(1) The Division will issue Life Cycle Cost Guidelines for use by Fee Architect/Engineers and Consultants which will include:

(a) Rules;

(b) Basis for the calculation of Total Life Cycle Costing;

(c) Guidance on sources of data for calculation;

(d) Requirements for Life Cycle Cost analysis.

(2) The Division will issue specific instructions at the outset of each project describing the extent of Value Engineering or Life Cycle Cost analysis required for the project.

(3) The Division will use an independent Value Engineering Program to review the fee Architect/Engineer's design and use Value Engineering techniques to assist in identifying alternative viable design options to be subject to Life Cycle Cost analysis.

R23-6-8. Responsibilities.

(1) The Division shall:

(a) Manage and monitor the implementation of the Value Engineering and Life Cycle Costing program.

(b) Recommend budgets to the legislature to:

(i) Fund Value Engineering and Life Cycle Costing analysis for programming activity.

(ii) Fund Value Engineering and Life Cycle Costing analysis for Design and Construction Activity.

(c) Select suitably trained and qualified persons to conduct the Value Engineering and Life Cycle Costing Analysis program.

(d) Develop methods for evaluating, selecting, and implementing preferred alternatives from the output of the Value Engineering and Life Cycle Costing program.

KEY

construction costs, public buildings*

Date of Enactment or Last Substantive Amendment

1995

Notice of Continuation

December 31, 2007

Authorizing, Implemented, or Interpreted Law

63A-5-103 et seq.