Asset Condition Index (ACI)

Asset Condition Index (ACI) is a standard benchmark in the asset management industry which is used to objectively assess the current and projected future condition of an asset. By definition, the ACI is defined as the ratio of current year required renewal repairs to asset replacement value. For facilities, this index is the well-known Facility Condition Index or FCI. It is often used as a snapshot in time as a comparator to similar assets or as an index which quantifies the adequacy of a funding level over a longer period of time.

There are three levels of condition:

• Good 0 to 5 percent
• Fair 5 to 10 percent
• Poor greater than 10 percent

The purpose of the ACI is to allow comparison of condition between various assets as well as allowing senior decision makers to understand the relative level of requirement for renewal funding.

ReCAPP® has the capability of calculating ACI for an asset or group of assets. It provides several methods of dynamically using the ACI to strategically assess the needs of an asset portfolio.

Altus Capital Planning Solutions will provide its clients with the rationale and means by which to utilize ACIs in their assessment of assets. CPSI will provide its clients with advice, methodologies and approaches to gathering and analyzing the data to complete an ACI analysis.