Which statement explains why CIP prioritization uses the Facility Condition Index (FCI)?

• A. A higher FCI means lower maintenance needs.
• B. The FCI is used to measure energy efficiency.
• C. A higher FCI signals greater asset deterioration and warrants priority to prevent further deterioration.
• D. FCI is unrelated to asset condition.

Answer: (C)

When deciding where to allocate capital improvements, focus is on facilities showing the greatest need to prevent costlier failures. The Facility Condition Index quantifies condition by relating the backlog of deferred maintenance to the asset’s replacement value. A higher FCI means there is more work needed relative to what it would cost to replace the asset, signaling greater deterioration and a stronger reason to prioritize that facility to stop further damage, outages, or safety risks. That’s why this measure is used for CIP prioritization.

The other statements don’t fit. A higher FCI does not indicate lower maintenance needs; it indicates greater needs. The FCI isn’t a measure of energy efficiency, so it doesn’t assess energy performance. And the idea that FCI is unrelated to asset condition is incorrect because FCI directly reflects the asset’s condition by showing how much maintenance is deferred.