Replacement of Highway Operations Equipment: Formulation of Long-Range Plans and Budgets (2023)

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2023 N A T I O N A L C O O P E R A T I V E H I G H W A Y R E S E A R C H P R O G R A M NCHRP RESEARCH REPORT 1017 Replacement of Highway Operations Equipment FORMULATION OF LONG-RANGE PLANS AND BUDGETS Leila Hajibabai Ali Hajbabaie Rasool Mohebifard Amir Mirheli North Carolina State University Raleigh, NC Henry Canipe The Kercher Group Raleigh, NC Wei Fan University of North Carolina Charlotte, NC Subscriber Categories Maintenance and Preservation • Vehicles and Equipment Research sponsored by the American Association of State Highway and Transportation Ofcials in cooperation with the Federal Highway Administration

NATIONAL COOPERATIVE HIGHWAY RESEARCH PROGRAM Systematic, well-designed, and implementable research is the most effective way to solve many problems facing state departments of transportation (DOTs) administrators and engineers. Often, highway problems are of local or regional interest and can best be studied by state DOTs individually or in cooperation with their state universities and others. However, the accelerating growth of highway transporta- tion results in increasingly complex problems of wide interest to high- way authorities. These problems are best studied through a coordinated program of cooperative research. Recognizing this need, the leadership of the American Association of State Highway and Transportation Officials (AASHTO) in 1962 ini- tiated an objective national highway research program using modern scientific techniques—the National Cooperative Highway Research Program (NCHRP). NCHRP is supported on a continuing basis by funds from participating member states of AASHTO and receives the full cooperation and support of the Federal Highway Administration (FHWA), United States Department of Transportation, under Agree- ment No. 693JJ31950003. The Transportation Research Board (TRB) of the National Academies of Sciences, Engineering, and Medicine was requested by AASHTO to administer the research program because of TRB’s recognized objectivity and understanding of modern research practices. TRB is uniquely suited for this purpose for many reasons: TRB maintains an extensive com- mittee structure from which authorities on any highway transportation subject may be drawn; TRB possesses avenues of communications and cooperation with federal, state, and local governmental agencies, univer- sities, and industry; TRB’s relationship to the National Academies is an insurance of objectivity; and TRB maintains a full-time staff of special- ists in highway transportation matters to bring the findings of research directly to those in a position to use them. The program is developed on the basis of research needs iden- tified by chief administrators and other staff of the highway and transportation departments, by committees of AASHTO, and by the FHWA. Topics of the highest merit are selected by the AASHTO Special Committee on Research and Innovation (R&I), and each year R&I’s recommendations are proposed to the AASHTO Board of Direc- tors and the National Academies. Research projects to address these topics are defined by NCHRP, and qualified research agencies are selected from submitted proposals. Administration and surveillance of research contracts are the responsibilities of the National Academies and TRB. The needs for highway research are many, and NCHRP can make significant contributions to solving highway transportation problems of mutual concern to many responsible groups. The program, however, is intended to complement, rather than to substitute for or duplicate, other highway research programs. Published research reports of the NATIONAL COOPERATIVE HIGHWAY RESEARCH PROGRAM are available from Transportation Research Board Business Office 500 Fifth Street, NW Washington, DC 20001 and can be ordered through the Internet by going to https://www.mytrb.org/MyTRB/Store/default.aspx Printed in the United States of America NCHRP RESEARCH REPORT 1017 Project 13-06A ISSN 2572-3766 (Print) ISSN 2572-3774 (Online) ISBN 978-0-309-69836-8 Library of Congress Control Number 2023932928 © 2023 by the National Academy of Sciences. National Academies of Sciences, Engineering, and Medicine and the graphical logo are trade- marks of the National Academy of Sciences. All rights reserved. COPYRIGHT INFORMATION Authors herein are responsible for the authenticity of their materials and for obtaining written permissions from publishers or persons who own the copyright to any previously published or copyrighted material used herein. Cooperative Research Programs (CRP) grants permission to reproduce material in this publication for classroom and not-for-profit purposes. Permission is given with the understanding that none of the material will be used to imply TRB, AASHTO, APTA, FAA, FHWA, FTA, GHSA, or NHTSA endorsement of a particular product, method, or practice. It is expected that those reproducing the material in this document for educational and not-for-profit uses will give appropriate acknowledgment of the source of any reprinted or reproduced material. For other uses of the material, request permission from CRP. NOTICE The research report was reviewed by the technical panel and accepted for publication according to procedures established and overseen by the Transportation Research Board and approved by the National Academies of Sciences, Engineering, and Medicine. The opinions and conclusions expressed or implied in this report are those of the researchers who performed the research and are not necessarily those of the Transportation Research Board; the National Academies of Sciences, Engineering, and Medicine; the FHWA; or the program sponsors. The Transportation Research Board does not develop, issue, or publish standards or speci- fications. The Transportation Research Board manages applied research projects which provide the scientific foundation that may be used by Transportation Research Board sponsors, industry associations, or other organizations as the basis for revised practices, procedures, or specifications. The Transportation Research Board; the National Academies of Sciences, Engineering, and Medicine; and the sponsors of the National Cooperative Highway Research Program do not endorse products or manufacturers. Trade or manufacturers’ names or logos appear herein solely because they are considered essential to the object of the report.

e National Academy of Sciences was established in 1863 by an Act of Congress, signed by President Lincoln, as a private, non- governmental institution to advise the nation on issues related to science and technology. Members are elected by their peers for outstanding contributions to research. Dr. Marcia McNutt is president. e National Academy of Engineering was established in 1964 under the charter of the National Academy of Sciences to bring the practices of engineering to advising the nation. Members are elected by their peers for extraordinary contributions to engineering. Dr. John L. Anderson is president. e National Academy of Medicine (formerly the Institute of Medicine) was established in 1970 under the charter of the National Academy of Sciences to advise the nation on medical and health issues. Members are elected by their peers for distinguished contributions to medicine and health. Dr. Victor J. Dzau is president. e three Academies work together as the National Academies of Sciences, Engineering, and Medicine to provide independent, objective analysis and advice to the nation and conduct other activities to solve complex problems and inform public policy decisions. e National Academies also encourage education and research, recognize outstanding contributions to knowledge, and increase public understanding in matters of science, engineering, and medicine. Learn more about the National Academies of Sciences, Engineering, and Medicine at www.nationalacademies.org. e Transportation Research Board is one of seven major programs of the National Academies of Sciences, Engineering, and Medicine. e mission of the Transportation Research Board is to provide leadership in transportation improvements and innovation through trusted, timely, impartial, and evidence-based information exchange, research, and advice regarding all modes of transportation. e Board’s varied activities annually engage about 8,000 engineers, scientists, and other transportation researchers and practitioners from the public and private sectors and academia, all of whom contribute their expertise in the public interest. e program is supported by state transportation departments, federal agencies including the component administrations of the U.S. Department of Transportation, and other organizations and individuals interested in the development of transportation. Learn more about the Transportation Research Board at www.TRB.org.

C O O P E R A T I V E R E S E A R C H P R O G R A M S AUTHOR ACKNOWLEDGMENTS The research reported herein was performed under NCHRP Project 13-06A by the Edward P. Fitts Depart- ment of Industrial and Systems Engineering at North Carolina State University (NCSU); the Department of Civil, Construction, and Environmental Engineering at NCSU; the Kercher Group; and the University of North Carolina at Charlotte (UNCC). NCSU was the contractor for this study, and Dr. Leila Hajibabai was the principal investigator. The other contributors to this work are Dr. Ali Hajbabaie, Assistant Professor of Civil Engineering at NCSU; Mr. Rasool Mohebifard, Research Assistant at NCSU; Mr. Amir Mirheli, Research Assistant at NCSU; Mr. Henry Canipe, The Kercher Group; and Dr. Wei Fan, Professor of Civil Engineering at UNCC. CRP STAFF FOR NCHRP RESEARCH REPORT 1017 Christopher J. Hedges, Director, Cooperative Research Programs Waseem Dekelbab, Deputy Director, Cooperative Research Programs, and Manager, National Cooperative Highway Research Program Sid Mohan, Associate Program Manager, Implementation and Technology Transfer, National Cooperative Highway Research Program Amir N. Hanna, Senior Program Officer Emily Griswold, Program Coordinator Natalie Barnes, Director of Publications Heather DiAngelis, Associate Director of Publications Janet M. McNaughton, Senior Editor Kathleen Mion, Assistant Editor NCHRP PROJECT 13-06A PANEL Field of Maintenance—Area of Equipment Timothy D. Cunningham, Kansas Department of Transportation, Topeka, KS (Chair) Angel M. Birriel, Florida Department of Transportation, Tallahassee, FL John J. Brewington, Jr., Brewington & Company, Mount Airy, NC Bruce D. Erickson, Kea’au, HI (formerly with Oregon Department of Transportation) Heather A. Hamilton, BSC Group, Inc., Brookline, MA (formerly with Massachusetts Department of Transportation) Sharon E. Holmes, Tallahassee, FL Jeremy Matsuo, California Department of Transportation, Sacramento, CA John Nickelson, Federal Highway Administration, Providence, RI James W. Bryant, Jr., TRB Liaison ( formerly)

This NCHRP report is both a handbook on concepts for making long-range investment deci- sions and a guide for formulating cost-effective long-range plans for equipment replacement. It presents a systematic process for estimating the type and number of equipment units eligible for replacement every year over a long-range planning period (e.g., 25 years) and associated costs. The guide will help fleet managers determine the long-range equipment replacement needs and budgets by implementing systematic planning and budgeting processes supported by sound data-driven analyses. It should also help fleet managers in making decisions regarding equip- ment replacement to support the agency’s mission. The information contained in the research report should be of interest to fleet managers, state maintenance engineers, and others involved in the planning and budgeting aspects of equipment fleet assets. State highway agency equipment fleet assets are vital to the delivery of agency programs, projects, and services. These fleets represent a significant capital investment and require recur- ring maintenance, operational expenditures, and timely replacement to achieve the desired level of performance, reliability, and economy. State department of transportation (DOT) agencies have used a variety of practices when making investment decisions about highway operations equipment. However, there is no widely accepted process for determining long-range needs and budgets. Therefore, there was a need to identify current practices, review relevant information, and develop rational processes to provide state DOTs with a realistic means for making invest- ment decisions. There was also a need to prepare a guide for formulating long-range plans for the replacement needs and budgets of highway operations equipment. With these resources, highway equipment managers and administrators can better accomplish the task of making decisions regarding replacement needs and budgets. Under NCHRP Project 13-06A, “Guide for Formulation of Long-Range Plans and Budgets for Replacement of Highway Operations Equipment,” North Carolina State University was tasked with developing a guide for the formulation of long-range plans and budgets for the replacement of highway operations equipment that includes processes and tools for consider- ation in making these investment decisions. To accomplish this objective, the researchers identified and reviewed the factors, practices, and processes for the formulation of long-range plans for replacement needs and budgets, and used this information to develop a systematic planning and budgeting decision process. The process uses data-driven planning and budgeting analyses and incorporates user-defined criteria for equipment replacement such as age, accumulated mileage, or engine hours to determine the candidate equipment units for replacement in each year over a long-term period. Finally, the researchers prepared a guide document (included as Part II of the research report) and long-range replacement management software to support the planning and budgeting pro- cesses. A manual (Part III) provides step-by-step instructions for using the software tool. F O R E W O R D By Amir N. Hanna Staff Officer Transportation Research Board

P A R T I Research Overview I-3 Summary I-6 Chapter 1 Introduction I-8 Chapter 2 Research Approach I-12 Chapter 3 Research Findings I-21 Chapter 4 Summary and Suggested Research I-23 Appendix A Survey I-29 Appendix B Detailed Survey Results I-38 Acronyms I-39 References P A R T I I Guide for Long-Range Replacement Management II-3 Chapter 1 Introduction II-5 Chapter 2 Key Factors and Processes II-7 Chapter 3 Rational Processes, Computational Models, and Electronic Tools II-24 Chapter 4 Suggestions for Implementation P A R T I I I User Manual for the Long-Range Replacement Management Tool III-3 Chapter 1 Introduction III-4 Chapter 2 LRM Installation III-6 Chapter 3 Data Preparation III-10 Chapter 4 Running the LRM Tool and Importing Agency Data III-13 Chapter 5 Long-Range Analysis III-19 Chapter 6 Summary and Analysis History III-21 Chapter 7 Case Examples C O N T E N T S Note: Photographs, figures, and tables in this report may have been converted from color to grayscale for printing. The electronic version of the report (posted on the web at nap.nationalacademies.org) retains the color versions.