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

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P A R T I I I User Manual for the Long-Range Replacement Management Tool

C O N T E N T S III-3 Chapter 1 Introduction III-3 1.1 Background III-3 1.2 About This User Manual III-3 1.3 LRM Capabilities III-4 Chapter 2 LRM Installation III-4 2.1 Step 1. Locate the Files III-5 2.2 Step 2. Enable Required Library III-6 Chapter 3 Data Preparation III-6 3.1 Data Set Setup III-6 3.2 Data Set Configuration III-10 Chapter 4 Running the LRM Tool and Importing Agency Data III-10 4.1 Run LRM III-10 4.2 Import Agency Data into LRM III-13 Chapter 5 Long-Range Analysis III-19 Chapter 6 Summary and Analysis History III-19 6.1 Fleet Funding Summary III-19 6.2 Analysis History III-21 Chapter 7 Case Examples III-21 7.1 Example I: Replacement Plans Based on Predefined Criteria and User Input for Specific Years III-26 7.2 Example II: Effects of Changing Age-Replacement Criterion on Annual Budgets III-27 7.3 Example III: Analyzing Different Replacement Strategies

III-3   1.1 Background Fleet maintenance and management are essential for state agencies to ensure the performance of diverse operations equipment assets. These assets are critical components for the delivery of state highway agency programs, projects, and services and contribute to a significant portion of capital investments. Operations equipment assets require recurring maintenance, operational expenditures, and timely replacement to retain their value and achieve their anticipated level of performance, reliability, and economy. NCHRP Project 13-06A developed a set of processes and tools for use in making long-range investment decisions. This user manual describes how to use the long-range replacement management (LRM) tool and extract long-range plans and budget reports. 1.2 About This User Manual This manual presents the steps to follow in the LRM tool to obtain replacement plans and funding reports. This user manual explains how to: • Install the LRM tool, • Prepare the input data according to LRM requirements, and • Use the LRM tool to generate long-range replacement and budget reports. 1.3 LRM Capabilities The LRM tool offers the following capabilities for each year over a long-range planning period (i.e., 20–25 years): • Determining the required funding level in each year, • Identifying equipment that is a candidate for replacement each year, and • Generating user-defined scenarios and comparing their outcomes. C H A P T E R   1 Introduction

III-4 e LRM tool was developed in Microso Excel 365. e minimum system requirements are as follows: • Processor: 1.6 GHz or faster, dual-core; • Memory: 4 GB RAM; • Hard disk: 4 GB of available disk space; and • Operating system: Windows 10, Windows Server 2019. e following steps ensure the proper setup of the LRM tool. 2.1 Step 1. Locate the Files Users need to download the LRM tool to their desired directory (Figure III-1). e com- puter’s desktop folder is assumed to be the main directory for the LRM tool throughout this user manual. C H A P T E R   2 LRM Installation Figure III-1. File location.

LRM Installation III-5   2.2 Step 2. Enable Required Library Note: is step is only required if the feature is not enabled on the user’s computer. e LRM tool requires Microso .NET Framework 3.5 to run the tool. .NET Framework is a development framework for building and running applications, and it is included as a feature on Windows. Users need to ensure that the .NET Framework 3.5 feature is enabled in their system. e activation process is as follows: • Type “Windows Features” in the Windows search bar and hit Enter. e Windows Feature window will appear. • Click on the plus sign in front of .Net Framework 3.5 (includes .NET 2.0 and 3.0) (Figure III-2). is will show its components. • Place checkmarks in front of both components: Windows Communication Foundation HTTP Activation and Windows Communication Foundation Non-HTTP Activation. A checkmark will appear in front of .Net Framework 3.5 (includes .NET 2.0 and 3.0). • Click OK and follow the installation process. Figure III-2. Screenshot of Windows features.

III-6 The equipment’s historical cost and usage data are input into the tool to help fleet managers determine the required funding level for a long-range replacement plan. This chapter explains how to prepare and organize the data to make it readable by the LRM tool. 3.1 Data Set Setup In the LRM tool directory, there is a Raw_Data.xlsx file (Figure III-3). In this Excel file, the Fleet Data tab represents high-level information such as purchase price, available budget, demand, replacement criteria, and replacement decision weights for each type of equipment in the fleet (see Figure III-4a). The Equipment Data tab represents the detailed data on each equip- ment unit (see Figure III-4b). The required format of the data set file is as follows: • Blank white cells require agency input. Each row represents information about one equip- ment unit in the agency. • Gray cells are the predefined column names. Note: The number and the order of columns must be identical to those in the template in the Raw_Data.xlsx file (Figure III-3) so that the tool can read the input data correctly. Detailed information about the data set columns is provided in the next section. 3.2 Data Set Configuration The information required for each type of equipment in the Fleet Data tab is kept in the fol- lowing column format: 1. Equipment Class Code (Column B): This is a standard system for identifying the class of equip- ment. The class code for each type of equipment should be unique and should be used for all equipment units of the same type. They may follow NAFA standards or be user-defined. 2. Equipment Type (Column C): The type of each equipment unit. 3. Purchase Price (Column D): The average purchase price of new equipment. 4. Budget for the Current Year (Column E): Expected replacement budget for the entire fleet of a specific type (e.g., budget for dump trucks) in the current analysis year. 5. Demand (Column F): The estimated required mileage or engine hours of each type of equip- ment for the current year. 6. Annual Demand Growth (Column G): The expected annual growth in demand, expressed as a percentage. 7. Annual Utilization Reduction (Column H): The expected annual utilization reduction rate as equipment age, expressed as a percentage. C H A P T E R   3 Data Preparation

Data Preparation III-7   8. Depreciation Rate (Column I): e annual reduction rate in equipment salvage value as it ages, expressed as a percentage. 9. Fuel Eciency Reduction Rate (Column J): e annual reduction rate in equipment fuel eciency, expressed as a percentage. 10. Replacement Criteria (Columns K–M): e desired age, mileage, or engine hours for replacing an equipment unit. 11. Replacement Decision Weight (Columns N–P): Importance of criticality, physical condition, and utilization for replacement decisions expressed as weights. e Equipment Data tab stores the following data for each equipment unit: 1. Equipment Class Code (Column A): is is a standard system for identifying equipment by its class. e class code should be unique for each type of equipment and used for all equip- ment units of the same type. 2. Equipment ID (Column B): e unique identication number/code of each equipment unit. 3. Equipment Type (Column C): e type of each equipment unit. 4. Equipment In Service Year (Column D): e year that each equipment unit is acquired or placed in service. 5. Accumulated Mileage (Column E): Total usage in miles. 6. Accumulated Engine Hours (Column F): Total usage in hours. 7. Repair Cost in Current Year (Column G): Total unscheduled repair costs for an equipment unit in the current year. Figure III-3. Raw data location.

(a) (b) Figure III-4. Template of data entry: (a) Fleet Data and (b) Equipment Data tabs.

Data Preparation III-9   8. Maintenance Cost (Column H): Total costs for scheduled maintenance for an equipment unit in the current year. 9. Fixed Cost Current Year (Column I): The cost associated with licensing, insurance, and other fixed costs for the current year. 10. Fuel Cost Current Year (Column J): The fuel cost for the current year. 11. Criticality (Column K): The criticality level of an equipment unit (“very critical,” “critical,” or “not critical”). 12. Physical Condition (Column L): The physical status of each equipment unit (“excellent,” “very good,” “good,” “fair,” or “poor”). Note: If any input value is missing or unavailable for equipment in service year, accumulated mileage, or accumulated engine hours, users should leave the cell blank or enter a dash in the Excel file. However, any missing cost value needs to be specified with a zero, or the tool will not work correctly. Users can group all or some cost components of a specific equipment unit (e.g., repair cost and maintenance cost) as a lump sum value in the absence of cost values for each component. In that case, the cost values for other components need to be entered as zero.

III-10 Once the equipment data set is created, users can import it into the tool. is chapter describes how to run the LRM tool and import the eet- and equipment-level data sets into LRM. 4.1 Run LRM Users can open the tool directory and double-click on the le “NCHRP 13-06A.xlsm” to run the LRM tool (Figure III-5). Once the Excel le is opened, users need to select Enable Content to activate the macro in Excel (Figure III-6). 4.2 Import Agency Data into LRM Once the LRM tool’s opening window appears, the tool asks users to Read Fleet Data and import the agency data set (Figure III-7). e window includes the agency name, total analysis period in years, and the ination rate. By pressing the Read Fleet Data button, users can open their input le. In the example shown in Figure III-8, the directory of the “Raw_Data.xlsx” le is located, and it is opened. e data import process copies the eet- and equipment-level data from the selected le and populates the Fleet Data and Equipment Data tabs in the LRM tool. In this stage, users can review the imported data for errors and missing data before starting the analyses. C H A P T E R   4 Running the LRM Tool and Importing Agency Data Figure III-5. LRM tool location.

Figure III-6. Macro activation in LRM.

III-12 Replacement of Highway Operations Equipment: Formulation of Long-Range Plans and Budgets Figure III-7. LRM opening window. Figure III-8. Raw data location.

III-13   After the input data are imported and reviewed in the Fleet Data and Equipment Data tabs, the LRM tool can provide the long-range replacement plans and the required funding level in the Long-Range Analysis tab. The LRM tool scores equipment units on the basis of their age, utilization, criticality, and physical conditions to find candidates for replacement and calculates the required funding levels. Before starting the analysis, users should click on the Initialize Equipment-Level and Long-Range Analysis Data button in the Fleet Data or Equipment Data tab (Figure III-9) to import the current year’s data into the process and initialize the next two tabs. If the imported data do not follow the required format, the tool returns an error message at this stage. Note: Users will need to click on the Initialize Equipment-Level and Long-Range Analysis Data button any time they make changes in the Fleet Data or Equipment Data tabs, to ensure values in the other tabs are populated appropriately. The Long-Range Analysis tab shows the available replacement budget for each type of equip- ment over the planning period (Figure III-10). Note that the available replacement budget is calculated using the inputs in the Fleet Data tab, such as the budget for the current year, the total number of analysis years, and the inflation rate. Moreover, the Long-Range Analysis tab reports the impacts of different replacement scenarios on the basis of user inputs on the state of the fleet. Users can enter the following inputs to create different replacement scenarios: 1. What is the available replacement budget? (Column H): Users can overwrite the available replacement budget in a specific year according to their agency’s needs. 2. How many units to replace? (Column I): Users can specify the exact number of equipment units to be replaced. 3. How many units to add to satisfy the demand? (Column J): Fleet size can increase if the agency predicts an excess demand in the future. 4. How many units to salvage with no replacement? (Column K): Equipment units can be salvaged to reduce operational costs. 5. Use the salvage revenue in the budget of next year? (Column L): Users can decide to add the revenue from salvaged units to the available budget for the following year. Note: Columns B–G and M–R show the outputs of the analysis, and users should not change the values indicated in these columns. The input cells have a white background, and outputs are reported with a gray background. The outputs reported in the Long-Range Analysis tab are as follows: 1. Year (Column B): The analysis year, which starts from the current year and continues until the end of the planning horizon (e.g., 25 years). 2. Equipment Class Code and Equipment Type (Columns C and D): The class code and type of each equipment unit. C H A P T E R   5 Long-Range Analysis

Figure III-9. Initializing equipment-level and long-range analysis data. Figure III-10. Long-Range Analysis tab.

Long-Range Analysis III-15   3. Fleet Size (Column E): The number of equipment units, which is updated on the basis of the user-defined scenario (e.g., add or salvage equipment units). 4. # of Units to be Replaced (Column F): The number of equipment units that are candidates for replacement, based on user-defined scenarios. 5. Average Salvage Value (Column G): The average salvage value of the current fleet, based on the double declining balance method. 6. Average Age (Column M): The average in-service age of the current fleet. 7. Annual Operational and Maintenance Costs per Unit (Column N): The average value of annual operational and maintenance costs for each equipment unit. 8. Required Replacement Funding Level (Column O): The required replacement funding level, based on the number of equipment units to be replaced. 9. Total Required Funding Level (Column P): The total required funding level, including replace- ment and operational and maintenance costs. 10. Obtained Revenue from Salvaged Equipment (Column Q): Revenue from salvaging equipment units obtained by the number of equipment units to be salvaged (Column K) and average salvage value (Column G). 11. Budget Balance (Column R): The difference in the available budget, the required replace- ment funding level, and the salvage revenue (if it is to be received by the agency). The Equipment Level Analysis tab shows the state of every equipment unit with its replacement scores over the analysis period (Figure III-11). Users can observe the replacement plans in more detail and make additional changes to replace an equipment unit in a preferred year. Input data in this tab include the following: 1. Replace Equipment? (Column P): Users can specify whether an equipment unit should be replaced or not. 2. Criticality? (Column Q): The criticality level of an equipment unit can be updated in the desired year. 3. Physical Equipment Condition? (Column R): The physical condition of an equipment unit can be adjusted on the basis of new information. Note: Columns B–O in the gray background show the output of the analysis, and users should not change the values in these columns. After the data for the current year are processed, users can develop various replacement sce- narios that fall into four following strategies (see Figure III-12). • Strategy 1: Replace using the defined replacement criteria. The long-range replacement and required funding level will be determined on the basis of the defined replacement criteria (e.g., age, accumulated mileage, and accumulated engine hours of equipment units). The number of units to be replaced on the basis of the defined criteria (Column F) shows the number of units that exceed the replacement criteria and get a high replacement score. The required replacement funding level (Column O) may be higher than the available replacement budget (Column H) in this strategy. The available replacement budget will not be considered in determining the number of equipment units to be replaced under this strategy. • Strategy 2: Replace based on the available replacement budget (Columns H 1 K 1 L). The LRM tool can determine long-range replacement plans based on the available budget. The following year’s available replacement budgets (Column H) are populated on the basis of the inflation rate applied to the current year. Users can overwrite these values in Column H according to their agency’s prediction of the available replacement budget. Moreover, users can incorporate the income from salvaging equipment units in next year’s budget by selecting Yes in the drop-down menu in Column L. • Strategy 3: Replace based on the number of the equipment units (Columns I 1 J 1 K). This strategy gives users more flexibility in shaping the fleet by adjusting the number of equipment

Figure III-11. Equipment Level Analysis tab.

Long-Range Analysis III-17   Figure III-12. Equipment replacement options. units to be replaced, purchased, or salvaged. e numbers for each action should be entered in the corresponding cells in Columns I, J, and K, respectively. Cells with no decisions must be le empty to let the LRM tool nd the number of replacement units on the basis of the dened criteria in the Fleet Data tab. Figure III-13 shows the number of units to be replaced on the basis of user inputs and the dened criteria in this scenario. Column F shows the user-input values in red, while the outputs of LRM are shown in blue. • Strategy 4: No replacement. Users can dene a scenario to observe the state of the eet over the years with no replacements. All the numbers in Column F will be zero, showing that the same equipment units are carried over from year to year. Note: Aer each analysis, users can go to the Equipment Level Analysis tab to observe and edit the detailed information for each equipment unit. Users can change the replacement deci- sion for the equipment units in Column P and create a new scenario by pressing the Apply Changes to Equipment Replacement button. e corresponding columns in the Long-Range Analysis tab (i.e., Columns F and P) will be updated on the basis of the user inputs.

Figure III-13. Long-Range Analysis tab.

III-19   This chapter describes how users can access the fleet funding summary and the history of previous analyses. 6.1 Fleet Funding Summary After each analysis, the total required funding level for all equipment classes is reported in the Fleet Funding Summary tab. Figure III-14 shows the total required funding level and percentage of total funding required for each type of equipment annually. 6.2 Analysis History The Analysis History tab shows the summary of all previous analyses. Each row contains the average values of all analysis years for each equipment class code, as shown in Figure III-15. Note: Users can clear the Analysis History tab by pressing the Clear Analysis History button. C H A P T E R   6 Summary and Analysis History

Figure III-14. Fleet Funding Summary tab. Figure III-15. Analysis History tab.

III-21   In this chapter, several case examples are presented to illustrate the use of the LRM tool. Sample fleet data are used to pilot the case examples. The tool is flexible enough to allow users to add or delete types of equipment for further analyses. The case study examples are as follows: • Example I: Replacement plans based on predefined criteria and user input for specific years. • Example II: The effects of changing age-replacement criteria on annual budgets. • Example III: Analyzing different replacement strategies. 7.1 Example I: Replacement Plans Based on Predefined Criteria and User Input for Specific Years This example illustrates the estimation of the required annual funding level for replacing equipment units. The example focuses on two strategies, the first based on predefined replace- ment criteria and the second on user input for specific years. The following steps illustrate the processes for estimating the funding levels and identifying the candidate units for replacement. 7.1.1 Step 1: Update Replacement Factors The first step is to configure the Excel tool to update the replacement factors on the basis of the agency’s needs. The Fleet Data tab includes the Current Analysis Year, Total Number of Analysis Years, and Inflation Rate for all types of equipment (Figure III-16). Following is a list of the required information for each equipment type, and the values used in this example are shown in Figure III-16. • Equipment Class Code (Column B) • Equipment Type (Column C) • Purchase Price (Column D) • Budget for the Current Year (Column E) • Demand (Column F) • Annual Demand Growth (Column G) • Annual Utilization Reduction Rate (Column H) • Depreciation Rate (Column I) • Fuel Efficiency Reduction Rate (Column J) • Replacement Criteria (Columns K–M) • Replacement Decision Weight (Columns N–P) 7.1.2 Step 2: Load Equipment-Level Input Data The Equipment Data tab requires detailed information on equipment unit-level data (Fig- ure III-17). The data can be automatically loaded by clicking on the Read Fleet Data button on C H A P T E R   7 Case Examples

Figure III-16. Fleet Data tab. Figure III-17. Equipment Data tab.

Case Examples III-23   the Fleet Data tab or on the LRM tool’s opening window. The required information for each equipment unit is listed below. • Equipment Class Code (Column B) • Equipment ID (Column C) • Equipment Type (Column D) • Equipment In Service Year (Column E) • Accumulated Mileage (Column F) • Accumulated Engine Hours (Column G) • Repair Cost in Current Year (Column H) • Maintenance Cost (Column I) • Fixed Cost Current Year (Column J) • Fuel Cost Current Year (Column K) • Criticality (Column L) • Physical Condition (Column M) After the data are loaded, users can transfer the data to the Equipment Level Analysis tab by pressing the Initialize Equipment-level and Long-range Analysis Data button to find the replace- ment score and further analyze the data for the current year (Figure III-18). This analysis uses data from the Equipment Data tab along with: • Replacement Score (Column M): The score is computed by using the weighted average of criticality, physical condition, and utilization. • Replaced Frequency (Column N): This column shows the frequency of replacing an equip- ment unit over the 25-year analysis period. • Candidate Based on Replacement Criteria (Column O): This column checks whether an equipment unit has exceeded the replacement criteria defined in the Fleet Data tab or not. • Replace Equipment (Column P): The user can manually select a specific equipment unit to be replaced for the next year. This is done by pressing the Apply Changes to Equipment Replace- ment button. 7.1.3 Step 3: Calculate the Annual Funding Level To estimate the required annual funding level based on predefined replacement criteria, users should go to the Long-Range Analysis tab, click on the Choose Equipment Replacement Strategy button, select “Replace using the defined replacement criteria,” specify a name for the scenario, and, finally, click the Apply button. The software will populate several tabs based on this selected replace- ment strategy. Figure III-19 is drawn by plotting the required funding level in each year. As indicated in Figure III-19, the required funding level varies between $0.461 million and $23.1 million. The second strategy is to increase the number of dump trucks replaced to 82, 80, and 80 in years 2032 to 2034, respectively, and calculate the required replacement funds and changes in the fleet’s average age. For this purpose, users need to update the number of equipment units that require replacement, the number of added equipment units to satisfy the demand, and the number of salvaged equipment units without replacement in the Long-Range Analysis tab. For this specific example, the numbers of units to be replaced that were found in the previous step were entered under How Many Units to Replace, and these numbers were changed to 82, 80, and 80, respectively, for years 2032–2034. Next, users should click on the Choose Equipment Replacement Strategy button, select “Replace based on the number of equipment (Columns I + J + K),” specify a name for the scenario, and, finally, click the Apply button. Figure III-20 shows the required funding level reflecting this change. This adjustment will also reduce the average fleet age, as shown in Figure III-21.

Figure III-18. Equipment Level Analysis tab.

Case Examples III-25   0 5 10 15 20 25 R eq ui re d Fu nd in g Le ve l ($ m ill io ns ) Year Figure III-19. Required funding level over 25 years of analysis. 0 5 10 15 20 25 R eq ui re d Fu nd in g Le ve l ($ m ill io ns ) Year Figure III-20. Adjusted required funding level over 25 years of analysis. 0.0 2.0 4.0 6.0 8.0 10.0 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 A ve ra ge F le et A ge Year Before adjustment After adjustment Figure III-21. Average eet age before and after funding level adjustment.

III-26 Replacement of Highway Operations Equipment: Formulation of Long-Range Plans and Budgets 7.2 Example II: Effects of Changing Age-Replacement Criterion on Annual Budgets is example aims to estimate the required annual funding level if the eet manager decides to keep dump trucks in the eet for 2 years more or 2 years less than the normal replacement cycle. 7.2.1 Step 1: Update Replacement Factors e replacement criteria in the Fleet Data tab indicate the appropriate age, mileage, or engine hours required to replace equipment. Users can capture the impacts of longer or shorter replace- ment cycles on the required annual funding level by increasing or decreasing the age or utiliza- tion thresholds in Columns K to M. In this example, the replacement cycle is changed from 10 to 12 years and from 10 to 8 years. erefore, a total of three runs with age-replacement criteria of 8, 10, and 12 years is required. 7.2.2 Step 2: Load Equipment-Level Input Data Users need to review and update the equipment-level input data and click the Initialize Equipment-Level and Long-Range Analysis Data button to transfer the data to the Equipment Level Input Data tab for further analysis aer each change in the replacement criteria. 7.2.3 Step 3: Calculate the Annual Funding Level In this example, the eet manager analyzes the eects of three dierent age-related replace- ment criteria (i.e., 8, 10, and 12 years) on the required funding levels, as shown in Figure III-22. To run the soware, the user should go to the Long-Range Analysis tab, click on the Choose Equipment Replacement Strategy button, select “Replace using the dened replacement criteria,” specify a name for the scenario, and, nally, click the Apply button. e average annual required replacement funding levels for age-replacement thresholds of 8, 10, and 12 years were $5,092,683, $3,766,700, and $3,211,150, respectively, which shows the expected decreasing trend. is trend is in line with replacing 41, 31, and 26 dump trucks on average annually for the thresholds of 8, 10, and 12 years, respectively. 0 5 10 15 20 25 30 35 R eq ui re d re pl ac em en t f un di ng le ve l ($ m ill io ns ) Year Replacement age 8 Replacement age 10 Replacement age 12 Figure III-22. Total required funding level for replacement ages of 8, 10, and 12.

Case Examples III-27   7.3. Example III: Analyzing Different Replacement Strategies This example illustrates how to design various replacement scenarios and estimate the required annual funding level. The processes of estimating the annual budget and identifying candidate dump trucks for replacement are outlined below. 7.3.1 Step 1: Update Replacement Factors The first step is to configure the tool to update the replacement factors based on the agency’s needs. The Fleet Data tab includes inputs for Current Analysis Year, Total Number of Analysis Years, and Inflation Rate that need to be reviewed and updated for all types of equipment (Figure III-23). 7.3.2 Step 2: Load Equipment-Level Input Data The Equipment Data tab presents detailed information for equipment units (Figure III-24). The user can transfer the data to the Equipment Level Analysis tab by pressing the Initialize Equipment-Level and Long-Range Analysis Data button to find the replacement scores and further analyze the data for the current year (Figure III-25). 7.3.3 Step 3: Calculate the Annual Funding Level • Scenario 1: Replace equipment to satisfy the replacement criteria without budget limitation. This scenario shows the funding level required to ensure that the in-service age of equipment will not exceed the target age (10 years in this case). To estimate the required annual funding level, users should go to the Long-Range Analysis tab, click on the Choose Equipment Replace- ment Strategy button, select “Replace using the defined replacement criteria,” specify a name for the scenario, and, finally, click on the Apply button. The software will populate several tabs based on this selected replacement strategy, as shown in Figure III-26. Please note that the values in Column F (suggested by the tool) show the number of units needing replacement. • Scenario 2: No equipment replacement. In this scenario, users should go to the Long-Range Analysis tab, click on the Choose Equipment Replacement Strategy button, select “No replace- ment,” specify a name for the scenario, and, finally, click on the Apply button. An alterna- tive approach is to reduce the replacement budget to zero and select the “Replace based on the available budget scenario (Columns H + K + L).” Figure III-27 shows a screenshot of the Long-Range Analysis tab corresponding to this scenario. In this figure, only the initial years are shown. • Scenario 3: Constant replacement budget in each year. In this scenario, a limited budget for replacement equal to $700,000 is assumed in all years. The user needs to enter these available budget values in the Long-Range Analysis tab under Column H [What is the Available Replace- ment Budget ($)?]. Then, the user should click on the Choose Equipment Replacement Strategy button, select “Replace based on the available replacement budget (Columns H + K + L),” specify a name for the scenario, and, finally, click on the Apply button. Figure III-28 presents the outcomes of this scenario. • Scenario 4: Limited budget for equipment replacement that will be available once every 5 years. This scenario represents an agency with the same budget as available in Scenario 3; however, the agency receives the budget every 5 years. Therefore, rather than an annual replacement budget of $700,000 for dump trucks, the agency has $3,500,000 every five years. The scenario can be set up similar to Scenario 3. Figure III-29 shows the results.

Figure III-23. Fleet Data tab. Figure III-24. Equipment Data tab.

Figure III-25. Equipment Level Analysis tab.

Figure III-27. Long-Range Analysis results for Scenario 2. Figure III-26. Long-Range Analysis results for Scenario 1.

Figure III-28. Long-Range Analysis results for Scenario 3. Figure III-29. Long-Range Analysis results for Scenario 4.

III-32 Replacement of Highway Operations Equipment: Formulation of Long-Range Plans and Budgets • Scenario 5: Uniform replacement over the age-replacement criteria. This scenario aims at uni- form equipment replacement over the useful age of the fleet. If the age-replacement threshold is 10 years, 10% of the fleet needs to be replaced each year over the entire analysis period. The dump truck fleet size in this example is 270 units. Therefore, 27 units need to be replaced every year. The user needs to enter 27 units in Column I for all analysis years. Then, the user should click on the Choose Equipment Replacement Strategy button, select “Replacement based on the number of equipment (Columns I + J + K),” specify a name for the scenario, and, finally, click on the Apply button. Figure III-30 shows the results. • Scenario 6: Combination of replacement criteria and desired number of equipment units. This scenario allows a user to enter the number of equipment units to be replaced in certain years and let the tool determine the number of units to be replaced in other years. Assume that the user plans to replace 50 dump trucks in Year 5 and 50 more in Year 10 and requires the tool to calculate the number of units to be replaced in other years. The user needs to enter 50 units in Column I for the years 2026 (Year 5) and 2031 (Year 10) and leave the other rows empty. Then, the user should click on the Choose Equipment Replacement Strategy button, select “Replace- ment based on the number of equipment (Columns I + J + K),” specify a name for the scenario, and, finally, click on the Apply button. Figure III-31 shows the results. As shown in Column F, the tool determines the number of equipment units to be replaced for all years other than 2026 and 2031, in which 50 equipment units would be replaced, per the user’s input.

Figure III-30. Long-Range Analysis results for Scenario 5. Figure III-31. Long-Range Analysis results for Scenario 6.

Abbreviations and acronyms used without denitions in TRB publications: A4A Airlines for America AAAE American Association of Airport Executives AASHO American Association of State Highway Officials AASHTO American Association of State Highway and Transportation Officials ACI–NA Airports Council International–North America ACRP Airport Cooperative Research Program ADA Americans with Disabilities Act APTA American Public Transportation Association ASCE American Society of Civil Engineers ASME American Society of Mechanical Engineers ASTM American Society for Testing and Materials ATA American Trucking Associations CTAA Community Transportation Association of America CTBSSP Commercial Truck and Bus Safety Synthesis Program DHS Department of Homeland Security DOE Department of Energy EPA Environmental Protection Agency FAA Federal Aviation Administration FAST Fixing America’s Surface Transportation Act (2015) FHWA Federal Highway Administration FMCSA Federal Motor Carrier Safety Administration FRA Federal Railroad Administration FTA Federal Transit Administration GHSA Governors Highway Safety Association HMCRP Hazardous Materials Cooperative Research Program IEEE Institute of Electrical and Electronics Engineers ISTEA Intermodal Surface Transportation Efficiency Act of 1991 ITE Institute of Transportation Engineers MAP-21 Moving Ahead for Progress in the 21st Century Act (2012) NASA National Aeronautics and Space Administration NASAO National Association of State Aviation Officials NCFRP National Cooperative Freight Research Program NCHRP National Cooperative Highway Research Program NHTSA National Highway Traffic Safety Administration NTSB National Transportation Safety Board PHMSA Pipeline and Hazardous Materials Safety Administration RITA Research and Innovative Technology Administration SAE Society of Automotive Engineers SAFETEA-LU Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (2005) TCRP Transit Cooperative Research Program TEA-21 Transportation Equity Act for the 21st Century (1998) TRB Transportation Research Board TSA Transportation Security Administration U.S. DOT United States Department of Transportation

N C H RP Research Report 1017 Transportation Research Board 500 Fifth Street, NW Washington, DC 20001 ADDRESS SERVICE REQUESTED ISBN 978-0-309-69836-8 9 7 8 0 3 0 9 6 9 8 3 6 8 9 0 0 0 0