Lifecycle Replacement of Building Active Electronics (Infrastructure)
- Duguay, Gerard
The purpose of this page is to establish a formal guideline for expensing lifecycle replacement of installed building active electronics. "Active electronics" include (but are not limited to) network switches, wireless access points, uninterruptible power supplies (UPSes), fiber optic transceivers, emergency phones (Stentofon) and reader boards (Innova).
Glossary
| Terminology | Abbreviation | Definitions and Explanations | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Active Electronic Component | AEC | Active electronics components (AEC) include network switches, wireless access points, UPSes, fiber optic transceivers, emergency phones, reader boards and any other electronic device necessary to support a building's communications infrastructure. | |||||||||||||||
| Initial Cost of Component | ICC | The initial cost of the component (ICC) is the actual purchase cost of the AEC, plus tax. | |||||||||||||||
| Annual Component Maintenance | ACM | If applicable, annual component maintenance (ACM) is the vendor-provided annual maintenance charge for the AEC. | |||||||||||||||
| Annual Component License | ACL | If applicable, annual component license (ACL) is the vendor-required expense involved in the use of the AEC. | |||||||||||||||
| Average Life Expectancy | ALE | Life expectancy is our empirically derived estimate of how many years an AEC will last based on wear and tear, hardware viability, and/or the vendor's support/maintenance life expectancy. | |||||||||||||||
| Lifecycle Replacement Factor | LRF | The lifecycle replacement factor is a calculated percentage based upon an AEC's ICC and ALE. Current LRF values (as of July 2018):
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| Annual Lifecycle Replacement Value | ALRV | The lifecycle replacement value (ALRV) is the annualized expense of the AEC, when factoring in the component's life expectancy. Formula: ALRV=ICC x LRF Example: ALRV of a $2,000 (ICC) switch = $2,000 x .125 = $250 | |||||||||||||||
| Permanent Budget Transfer (Lifecycle Replacement) | PermTrans | Lifecycle replacement of installed building AECs are part of the planned maintenance and operational expenses of a given building. This expense is necessary to provide to the planned replacement of required building AECs. Annual funding for a building's total ALRV for all installed AECs are to be provided via university permanent budget transfers into the CIS Infrastructure capital account. (This process is presently under development). | |||||||||||||||
| Project Billback | Billback | Total expense for initial installation of requisite building active electronics (Infrastructure) |
Funding Strategy:
The following is a summary of the expenses associated with maintenance and lifecycle replacement of a building (or work center) active electronics.
| Year 1 (Project Billback) | Year 2 (PermTrans) | Year n (PermTrans) |
|---|---|---|
Total $ of ICCs | Total $ ACM plus Total $ ACL plus Total $ of all ALRV | Total $ ACM plus Total $ ACL plus Total $ of all ALRV |