Costs and benefits: Implementing an AMIFM/GIS

Cost Assessment and Examples
Constructing an AM/FM/GIS and integrating it within the information systems of a utility has a number of cost contributors. Cost of implementation may vary depending on the areas of focus for the AM/FM/GIS, the size and scope of the data to be captured, and the number of users to be supported. The current state of legacy systems and automation may also affect the cost. Among the usual costs described in development of an AM/FM/GIS are:

Data automatioticonversion
Hardware and software system acquisition
Applications development
Project management
Training

Since the number of variables is high with respect to cost, it can be difficult to generalize the cost factors described above. However, a few examples in each category may be helpful.

Data Conversion/Automation. The factors affecting data capture costs include the type and state of existing data, the scope of the data to be automated, and the geographic scale of the utility. Availability of commercial data is also a factor. The variances in these factors make it impossible to generalize. Some examples may be cited:
- A medium-sized gas utility in the northeast US estimated its data capture of geographic data from existing paper (strip) maps, purchased street data at about $1.7 million.
- A large urban and suburban electrical utility in the southwest US estimated its capture of geographic data from paper maps, including field survey for customer locations, and integration with its CIS at about $4.2 million.
- A medium-sized urban electrical utility in the midwest US estimated its conversion from one digital system to a more modern one at $140,000, including internal costs.
- A large urban electrical and gas utility in the upper-midwest US estimated its conversion from one digital system to a more modern one at $400,000. with most of the work done by in-house staff.
Hardware and Software Acquisition. The variables in the system acquisition portion of cost are normally considered to be the type of hardware selected, communication network available, use of existing hardware, type of base GIS software and commercial database selected, and number of user seats implemented. Here are two examples:
- An electric and gas company expected to spend about $220,000 for hardware and $200,000 for sofiware base technology, resulting in a per seat cost estimated at $16,000 to provide all new equipment.
- An electric and gas company spent a total of $1.3 million in hardware and software base technology for its users, for a per seat cost estimated at $12,500. Again, all new equipment was provided.
Applications Development. The scope and cost of applications development varies with the nature and complexity of the applications to be implemented. In particular, the use of commercial off-the-shelf software versus entirely customized solutions plays a major role. A few examples follow:
- An electrical and gas utility developed a completely customized suite of base data maintenance and mapping, electrical and gas network analysis, work order design tools (integrated with an existing work management system), and a desktop query and display environment for a budget of just over $2.5 million.
- An electrical utility purchased and implemented (in-progress) a customizable suite of base data maintenance and mapping, work order design tools (integrated with an existing work management system), and a desktop query and display environment for a budget of just over $1.2 million.
- A gas utility developed a base mapping and data maintenance package, plus a mains replacement application using in-house staff and consultants for an estimated $300,000.
Projec[ Management. Project management costs are often difficult to quantify, since the costs for software developed by vendors contains the cost of managing the development, and the only known or budgeted costs are normally those of the utility itself. These costs will also vary with the scope of the data conversion task and the applications to be developed. Projects for major utilities familiar to the authors had internal project management costs which ranged from $70,000 to $750,000.
Training. Training is an often-overlooked component of the cost of building an AM/F M/GIS. Costs vary mostly with the level of involvement in data conversion and QA/QC, and with the scope of applications and number of users to be trained. Again, for major utilities projects familiar to the authors, internal training costs including salary during attendance varied from $40,000 to over $200,000 for a very large project off shore. A well-managed gas project with an average number of users and an internal support staff had budgeted training costs of around $110,000.