Appendix B to Part 625 - Relationship Amongst SGR Performance Measures, SGR Definition, and SGR Principles
49:7.1.2.1.10.7.1.1.39 : Appendix B
Appendix B to Part 625 - Relationship Amongst SGR Performance
Measures, SGR Definition, and SGR Principles
EXAMPLE Relationship amongst SGR performance measures,
SGR definition, and SGR principles:
(a) A tier I provider has a TAM asset inventory containing, in
total across all modes, over 150 revenue vehicles in peak revenue
service, no rail fixed guideway, multiple passenger and exclusive
use maintenance facilities, and various pieces of equipment over
$50,000. Their asset inventory is itemized at the level of detail
they use in their capital program of projects; it also includes
capital assets they do not own but use. The provider conducts
condition assessments on those assets in its inventory for which it
has direct financial responsibility. The results of the condition
assessment indicate that there is an identified unacceptable safety
risk in the deteriorated condition of one of their non-revenue
service vehicles, but that the non-revenue service vehicles are
being used as designed. The condition assessment results show the
provider that one non-revenue service vehicle is not in SGR.
(b) The condition assessment results also inform the investment
prioritization process, which for this provider is a regression
analysis in a spreadsheet software program. The provider's
criteria, as well as their weightings, are locally determined to
produce the ranked list of programs and projects in their
investment prioritization. The provider batches its projects by
low, medium or high priority, identifying in which funding year
each project will proceed. The provider has elected to use the ULB
defaults, provided by FTA, for each of their modes until such time
as they have resources and expertise to develop customized
ULBs.
(c) The provider separates assets within each asset category by
class to determine their current performance measure metric. For
example, the equipment listed in its TAM asset inventory includes
HVAC equipment and service vehicles; however, the SGR performance
metric for the equipment category only requires the non-revenue
vehicle metrics. Thus, the provider measures only non-revenue
vehicles that exceed the default ULB for the modes they own,
operate, or manage. This metric is the baseline the provider uses
to determine its target for the forthcoming year.
(d) The provider's equipment baseline, its investment priorities
that show minimal funding for non-revenue vehicles over the next 4
years, and its TAM policies, strategies and key asset management
activities are used to project its target for the equipment
category. Since one of its non-revenue service vehicles indicated
an unacceptable safety risk, it is elevated in the investment
prioritization for maintenance or replacement. The provider's
target may indicate a decline in the condition of their equipment
overall, but it addresses the unacceptable safety risk as an
immediate priority.
(e) The cyclic nature of investment prioritization and SGR
performance target setting requires the provider to go through the
process more than once to settle on the balance of priorities and
targets that best reflects its local needs and funding availability
from all sources. The provider's accountable executive has ultimate
responsibility for accepting and approving the TAM plan and SGR
targets. The targets are then submit to the NTD and shared with the
provider's planning organization. The narrative report, which
describes the SGR performance measure metrics, is also submitted to
the NTD.