existing asset that is
currently in service,
which will at some time in the future be replaced with a new
asset - the challenger
The “Defender” Asset
- We have a low-efficiency boiler from manufacturer “k” of type “j”
- Currently, the boiler is exhibiting deficient conditions “a”, “b”, and “c” and will cost $x to correct
deficient conditions are prioritized as level-1, level-2, level-3.
Therefore, some must be fixed now and others can be deferred until
boiler replacement or upgrade
- The cost to maintain and operate the existing low efficiency boiler is annualized at $x.
- The current operating conditions are “e”, “f” and “g”
- There are “10 years” of remaining useful service life on the existing low efficiency boiler
- The “like-for-like” cost to replace the existing boiler is $x
The “Challenger” Asset (assuming only one challenger)
B. ASSUMPTIONS TO FILL DATA GAPS
- We propose a high-efficiency condensing boiler from manufacturer “m” of type “p”
- The cost to supply and install the new boiler is $x
- The incremental cost between the defender (low efficiency) and the challenger (high efficiency) is $x
- The cost to maintain the new higher efficiency boiler is $x
If we are missing data here are some options:
1. Lack of empirical condition data on the defender
2. Lack of life data on the defender
- Assume condition-consistent-with-age
- Assign an effective age that matches chronological age
- Calculate deficient conditions as percentage of consumed life
- Seek out condition data from the client using operator evaluation technique and surveys
3. Lack of operational data for the challenger(s)
- Assume textbook life, drawing from sources such as ASHRAE handbook, BOMA, Whitestone, RSMeans, etc
- Seek out input from operators, contractors, etc
4. Lack of renewal data on the defender
- Assume normal operating conditions and therefore textbook life for the challenger
- Review maintenance and service logs
- Apply an incremental cost factor to the challenger(s)
of the defender asset will include a benchmark comparison
with one or more of the
following financial metrics associated with the defender asset:
The goal of asset management is typically to keep the defender asset in
service as long as possible.
When it comes times to replacement, the defender will be replaced with:
(depreciation report) will typically consider like-for-like renewals of
the existing assets unless compelled to make an upgrade due to
circumstances, such as:
Listed below are some examples of defender challenger retrofit projects:
roof (12 year life) replaced with upgraded SBS roof (20 year life).
relay controls replaced with elevator solid state controls.
Fig. Triplex booster pump package
replaced with package that includes VFDs.
copper piping (the "defender") with pex piping (the "challenger")
Fig. Retrofit of a conventional fire alarm control panel (FACP) to an addressable system.
Fig. Retrofit of fluorescent strip lighting from
Fit. Retrofit of overhead gate from spring-loaded to weight-loaded mechanism.
Fig. Retrofit conversion of tank-type domestic water heating system to boiler-and-storage-tank configuration.