12 



for the total physical plant, it amounts to about $1.6 billion. This was based 

 on comprehensive individual assessments of each facility in the inventory. 



We did the assessments with both in-house teams and with contract sup- 

 port from contractors to help do the physical inventory. 



Of that total of $1.6 billion backlog, approximately $718 million of it is in 

 the research laboratories that are under discussion in this audit. 



Examples of problems and challenges that we face, as I said earlier, are 

 very similar to the other agencies. And it is driven primarily by the age of the 

 majority of our facilities and equipment. It is also driven by constrained budg- 

 ets and being able to identify sufficient funds in the total budget to carry out 

 the required amount of maintenance. 



Heating, ventilating and air conditioning systems deficiencies are among 

 the most prominent. Electrical power distribution failures are things that we 

 have to deal with constandy. Chiller capacities for large chiller plants and 

 supporting the laboratories, constant upgrade and maintenance of the chillers, 

 high-pressure air and gas systems, such as helium and nitrogen systems that 

 are used for cleaning purposes in many of our labs and development activities; 

 these are typical examples of the deficiencies and problems that we have in 

 those areas. 



In regards to the impact on the research and development activities, the 

 primary impact has been delays in testing and in conducting complete experi- 

 ments. When there is a breakdown in heavy rotating machinery or in the elec- 

 trical distribution systems, it is lengthy sometimes to make those repairs. And 

 when the equipment is as old as a lot of it is, it is hard to find replacement 

 parts, and you are forced to manufacture your own parts in many instances. 



This has created some schedule slips, and it has caused a lot of unsched- 

 uled downtimes. But I'm happy to say that we have not had a cancellation of 

 any research program or any research project that was directly attributable to 

 these kinds of deficiencies. 



In the revitalization category of restoring and upgrading facilities, we have 

 undertaken some major upgrades in restoration activities in the last few years. 

 From FY 1990 to FY 1994, for this complement of research labs, we have in- 

 vested $182 million in upgrades. 



The largest program in addition to that which was initiated in FY 1988, and 

 is running through its last increment, is a $300 million Wind Tunnel Revitali- 

 zation program for all of our major wind tunnels, which encompasses about 

 21 tunnels at the three basic research centers. 



In our FY 1994 budget, we have allocated $233 million of the total budget 

 for revitalization, restoration and modernization of facilities. This translates to 

 about 1.5 percent of the current replacement value, which we would prefer, of 

 course, to see that increase to a higher rate. And if you convert that, or trans- 

 late it, to an annual renewal cycle as to how long it would take to renew your 

 infrastructure base, it would only bring you to a 65-year renewal cycle. Our 

 objective and goal is currendy about 35 years for a reasonable renewal cycle. 



Regarding future outlooks, there are major challenges facing us in severely 

 constrained budgets in FY 1995 and in the out-years as we currendy under- 

 stand them. It mil be a real challenge for us to maintain the present momen- 

 tum in trying to increase these investments. 



