American GNC Corporation (AGNC) and Louisiana Tech University (LaTECH) are proposing a significant breakthrough technology, the Integrated Monitoring AWAReness Environment (IM-AWARE) consisting of an Enterprise Infrastructure with closely coupled smart sensor networks and Enhanced IT Security to enable: (i) real time monitoring of the distribution systems health; (ii) supporting maintenance operations and configuration management; and (iii) making the system clients aware, in an ubiquitous way, when an entity (sensor, valve, pipeline, motor-pump, etc.) failure is detected. Key components of this infrastructure are: (i) a low level standardized smart sensor network with embedded diagnostics at the sensor and intelligent sensor network coordinator levels and (ii) client-server enterprise infrastructure containing a Database, secure communications, and software applications for smartphones, tablets, and/or ruggedized devices. Key advantages of the system include: (a) novel sensor self-diagnostics with a non-spatial correlation algorithm; (b) novel Timed Failure Propagation Graphs (TFPG) algorithm, for joint sensor/component fault diagnostics; (c) system troubleshooting by stochastic inference that mimics human troubleshooting reasoning; (d) APIs for the TFPGs, Bayesian Networks (BN), and Influence Diagrams to facilitate and expedite diagnostic deployment within custom embedded applications; and (e) ruggedized hardware modules design. Advanced sensing schemes are provided for leakage detection, heat flux applications, and fire detection, in addition to monitoring test facility parameters (flow, pressure, temperature). To provide retrofitting and scalability capability strategies include standardized and scalar smart sensor design as well as software APIs and toolboxes development.