National Academies Press: OpenBook
« Previous: Front Matter
Page 1
Suggested Citation:"Chapter 1 Introduction." National Academies of Sciences, Engineering, and Medicine. 2023. Incorporating Maintenance Costs into a Transportation Asset Management Plan. Washington, DC: The National Academies Press. doi: 10.17226/27290.
×
Page 1
Page 2
Suggested Citation:"Chapter 1 Introduction." National Academies of Sciences, Engineering, and Medicine. 2023. Incorporating Maintenance Costs into a Transportation Asset Management Plan. Washington, DC: The National Academies Press. doi: 10.17226/27290.
×
Page 2
Page 3
Suggested Citation:"Chapter 1 Introduction." National Academies of Sciences, Engineering, and Medicine. 2023. Incorporating Maintenance Costs into a Transportation Asset Management Plan. Washington, DC: The National Academies Press. doi: 10.17226/27290.
×
Page 3
Page 4
Suggested Citation:"Chapter 1 Introduction." National Academies of Sciences, Engineering, and Medicine. 2023. Incorporating Maintenance Costs into a Transportation Asset Management Plan. Washington, DC: The National Academies Press. doi: 10.17226/27290.
×
Page 4
Page 5
Suggested Citation:"Chapter 1 Introduction." National Academies of Sciences, Engineering, and Medicine. 2023. Incorporating Maintenance Costs into a Transportation Asset Management Plan. Washington, DC: The National Academies Press. doi: 10.17226/27290.
×
Page 5
Page 6
Suggested Citation:"Chapter 1 Introduction." National Academies of Sciences, Engineering, and Medicine. 2023. Incorporating Maintenance Costs into a Transportation Asset Management Plan. Washington, DC: The National Academies Press. doi: 10.17226/27290.
×
Page 6

Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

1 C H A P T E R 1 Introduction Since 2018, state departments of transportation (DOTs) have been required to develop risk-based Transportation Asset Management Plans (TAMPs) and to update these plans every 4 years. To date, several DOTs have described challenges in showing clear connections between maintenance investments and asset condition during their TAMP development. The absence of maintenance cost data in a TAMP prevents agencies from fully capturing the total investment being made to preserve and improve the condition of highway infrastructure assets. This issue is especially important as state transportation agencies increase their attention to system preservation, placing greater emphasis on preventive maintenance. This Guide has been developed to support state DOTs and other transportation agencies in their efforts to better incorporate maintenance costs into their risk-based TAMPs. Background Federal Requirements With the passage of the Moving Ahead for Progress in the 21st Century (MAP-21) Act, the Federal Highway Administration (FHWA) established a federal definition for asset management and a requirement that state DOT establish and maintain risk-based TAMPs. In October 2017, the FHWA established detailed rules (23 CFR 515 and 23 CFR 667) that explain to stakeholders how to comply with the law. Under those requirements, state DOTs must develop a risk-based TAMP for pavements and bridges located on the National Highway System (NHS) that includes, at a minimum: • A summary listing of the pavement and bridge assets on the NHS, including a description of asset conditions. • Asset management objectives and performance measures. • Identification of any performance gaps. • A life-cycle cost and risk management analysis. • A 10-year financial plan and corresponding investment strategies. This same rulemaking also elaborated on types of investments that should be considered in developing a TAMP. The federal definition of asset management specifically lists the types of investments that should be considered through asset management efforts. Asset management means a strategic and systematic process of operating, maintaining, and improving physical assets, with a focus on both engineering and economic analysis based upon quality information, to identify a structured sequence of maintenance, preservation, repair, rehabilitation, and replacement actions that will achieve and sustain a desired state of good repair over the life cycle of the assets at minimum practicable cost. (23 CFR 515.5) The actions of maintenance, preservation, repair, rehabilitation, and replacement included in the definition of asset management, along with the action of initial construction, are defined by rule as work types (23 CFR 515.5) to be considered during the development of an asset management plan. Federal regulations further elaborate that these work types should be considered in the analyses performed to develop a TAMP, including: • Life-cycle planning (LCP) (23 CFR 515.7(b)(3)).

2 • Risk management (515.7(c)). • Financial planning (23 CFR 515.7(d)(1) and 23 CFR 515.7(d)(2)). • Investment strategies (23 CFR 515.7(e)(4)). To meet the legislative requirements of MAP-21, DOTs were required to submit both initial and fully compliant TAMPs in 2018 and 2019, respectively. Following the submission of those documents, it became evident that state DOTs are at different levels of maturity in terms of their ability to fully address the stated objectives of the federal requirements. For instance, planned 10-year investments were required to be reported in terms of work type by year and by asset type. However, a review of the 52 TAMPs conducted by the researchers indicates that at least 10 state DOTs did not organize their investments in accordance with the work type splits, and other state DOTs either omitted reporting planned maintenance investments or combined maintenance investments with preservation activities. Clearly, reporting planned maintenance expenditures by system, asset type, and year was a challenge for many state DOTs. Capital Versus Maintenance Costs in TAMPs As agencies prepared to update their TAMPs in 2022, interest was renewed in improving practices and plans to ensure effective and efficient use of funding. The TAMPs developed for compliance with 23 CFR 515 are largely focused on describing how agencies manage their capital programs to address and achieve infrastructure condition and performance objectives. This is driven by several factors including the focus of 23 CFR 515 on achieving a desired state of good repair (SOGR) and the natural connection between these TAMPs, other federal planning documents, and statewide transportation improvement programs (STIPs) used to manage Federal-aid programs. Typically, most federal funding is directed toward capital construction contracts. Major construction projects also have the largest impact on improvements in federal performance measures that identify the percentage of pavements and bridges in poor condition (23 CFR 490). Conversely, maintenance expenditures tend to comprise a smaller portion of the overall budget and often have limited impact on short-term condition improvements. Therefore, it is no surprise that agencies have tailored their initial TAMPs to address capital investment strategies. To better address maintenance in a TAMP, agencies have to overcome challenges associated with incorporating maintenance budgets into TAMP financial plans and establishing a clear connection between maintenance investments and asset conditions. Performance-Based Maintenance Budgeting Implementing performance-based budgeting for maintenance can provide a process for agencies to connect maintenance investments to asset conditions and system performance, supporting the incorporation of maintenance costs into a TAMP. In simplistic terms, performance-based budgeting for maintenance relies on four primary inputs: • An inventory of assets to be maintained. • An annual reporting of the current condition, or level of service (LOS), of those assets. • Targeted LOS. • Historical work order data including labor, equipment, material, and accomplishments. Within each of these inputs, there are varying levels of maturity and robustness among state DOTs. For example, agencies may vary in the completeness and accuracy of their asset inventories. Additionally, while an agency may have condition assessment processes in place for a few assets, there could be others that are not inspected in accordance with a regular cycle, if at all. There are also varying levels of maturity in sampling processes for assessing the condition of assets. For example, a sample-based approach is often employed for condition assessment programs. It would be cost- prohibitive to rate every individual asset on a statewide basis, so a sampling process is used to strike a

3 balance between data accuracy and collection cost. Best practices for the sampling approach are defined in NCHRP 677: Development of Levels of Service for the Interstate Highway System (Dye Management Group et al. 2010). However, with improvements in remote data-gathering technologies, DOTs now have opportunities to gather 100 percent inventory and condition data without performing “boots on the ground” assessments. This method eliminates the margin of error found in the sampling approach, increases data accuracy, and reduces worker exposure. However, these technologies can be costly and may not be effective for all roadway assets (e.g., drainage features) that cannot be seen from the roadway. Each agency must determine whether remote technologies are an efficient and effective means of data collection for its unique operating environment. To develop these inputs, DOTs can use systems ranging in complexity from commercial off-the-shelf (COTS) maintenance management systems (MMS) to Microsoft Excel tools developed in-house to establish performance-based costs for maintenance. As states implement performance-based maintenance budgeting, their various stages of maturity can generally be categorized as: • Those that are not using inventory, condition, and cost data to develop maintenance budgets. • Those with inventory, condition, and cost data that are developing performance-based budgets utilizing activity and performance guidelines. • Those that are more mature in their processes and systems, utilizing unit cost data to identify maintenance costs necessary to achieve targeted LOS. Project Purpose and Objectives The primary objective of this research was to develop guidance that state DOTs and other transportation agencies can use to better incorporate maintenance costs into their risk-based TAMPs. The resulting Guide (published separately) provides practitioners at all levels of asset management maturity with the information needed to use available tools (such as pavement and bridge management systems) to better represent the current and future maintenance needs to manage pavements, bridges, and other ancillary assets. The Guide also serves as a resource for developing processes and tools to integrate maintenance costs into each of the primary TAMP components. Recognizing the continual improvement component of asset management, the framework presented in this Guide includes a step for agencies to assess their current ability to deliver needed maintenance actions and incorporate those costs into a TAMP. Once the maintenance actions are defined, the Guide provides specific direction for incorporating the related costs into each TAMP component based on the maintenance activity’s impact on the asset life cycle. As a result, this Guide addresses the full spectrum of activities that might be considered maintenance by highway agencies. Using this framework, agencies can choose to apply the guidance to any activities they choose to define as maintenance. In addition to the Guide, the research resulted in the development of this final report to document the research activities conducted. Research Approach This research was conducted in coordination with the project panel and the participation of state DOTs, building on existing research and guidance. Phase I (tasks 1–3) of this research focused on assessing current practices to develop a framework for incorporating maintenance costs into a TAMP. In Phase II, a detailed Guide was developed based on this framework. The following sections provide a detailed description of the research approach followed to meet the project objectives.

4 Phase I Phase I (Tasks 1–3) of this project focused on assessing current practices to develop a framework for incorporating maintenance costs into a TAMP. It included several tasks, as described below. Task 1—Assess the State of the Practice To assess the needs and current practices of state and local DOTs, four virtual peer exchange sessions were conducted between November 12 and December 8, 2020. The findings from the peer exchange sessions are summarized in the following chapter. Task 1 also included a review and overall assessment of relevant maintenance cost-tracking and asset management practices currently in use domestically and internationally to identify potential case examples and lay the foundation for developing comprehensive guidance. This literature search included common and leading practices among state DOTs on appropriate maintenance and preservation measures and targets for assets other than pavements and bridges. The literature search findings are also summarized in Chapter 2 of this report. Task 2— Initial Case Studies Following the task 1 peer exchanges, the research team developed eight case studies on the practices used by the Alabama, Florida, Maryland, Minnesota, Nevada, New York State, Tennessee, and Maricopa County DOTs. The case studies, documented in Chapter 2 of this report, served as the basis for case examples included in the Guide. Task 3—Create Preliminary Framework for Incorporating Maintenance Costs in a TAMP Task 3 focused on the development of a preliminary framework for incorporating maintenance costs into a TAMP. The research team developed an initial draft framework that was finalized by incorporating feedback from the project panel. The framework provided the primary structure for the Guide. It is described in detail in Chapter 3 of this report. Phase II Task 4—Refine the Framework for Incorporating Maintenance Costs into a TAMP Phase II began with the refinement of the framework to incorporate comments and other suggestions from the project panel based on their review of the Phase I Interim Report. The revised framework was used to establish an outline for the Guide. Task 5—Develop Guide to Incorporating Maintenance COTS into a TAMP After finalizing the guidance outline and defining all case examples, the research team developed the final guidance for incorporating maintenance costs into a TAMP. The research team also developed a plan for creating communication materials to promote the Guide. Task 6—Develop Supporting Materials In addition to the Guide, the research team developed the following materials under this task. These materials are described in detail in Chapter 4.

5 • Executive Summary – The Executive Summary is tailored to transportation executives, such as directors, administrators, and transportation commissioners. It focusses on conveying the purpose, overall approach, and benefits of the guidance. The summary highlights the typical resource needed for implementing and administering enhanced maintenance cost-tracking processes and will show the cost-effectiveness of such investments. • Technical Memorandum on Implementation – The technical memorandum is directed at asset and maintenance managers and practitioners. The document focuses less on the benefits of integrating maintenance costs in TAM, as it is expected this audience already understands the connection. Instead, the focus is on the framework and guidance, with a highlight on keys to success. The memorandum’s focus is on information to enable readers to grasp the concepts and approach behind the guidance and provide key steps for getting started. • PowerPoint Presentation and Script – A presentation has been developed to allow practitioners to have a ready-made presentation for communicating to large or small groups. • One-Page Flyer – The objective of the one-page flyer is to boil the main points and benefits of the subject down to be quickly viewed and understood by a wide range of recipients. The material does not seek to provide in-depth information or answer questions, but rather grab the viewer’s attention and motivate them to want to learn more. The flyer can be used in combination with a mass e-mailing to quickly notify the asset management community of the new Guide. • Conference Workshop – The research team will be leading a workshop at the 2023 Transportation Research Board Annual Meeting. The workshop will provide participants with an early review of the Guide and an opportunity to explore its contents. Task 7—Final Report This final report summarizes the project activities and findings. Organization of This Report This final report consists of four chapters as described below: • Chapter 1 – Introduction. Introduces the report by providing background information and summarizing the research approach and report organization. • Chapter 2 – Summary of Current Knowledge. This chapter incudes three sections, each of which summarizes information sources used to develop the framework. – Literature Search. Provides findings from the supplemental literature search focused on various maintenance and maintenance activity definitions based on sources published by FHWA, the American Association of State Highway and Transportation Officials (AASHTO), state DOTs, and the Permanent International Association of Road Congresses (PIARC). – Peer Exchange Findings. Presents the key findings and takeaways from the four virtual peer exchange sessions. – Case Study Findings. Summarizes the key takeaways from the case study interviews conducted with the eight selected transportation agencies. The chapter also highlights why these eight states were selected for the case study effort and how the key findings support the development of the maintenance cost framework. • Chapter 3 – Framework for Incorporating Maintenance Costs into a TAMP. Presents the framework by highlighting how it considers various maintenance definitions and data collection efforts into the TAMP components.

6 • Chapter 4 – Implementation and Further Research. Details the documents developed to support and advance the use of the Guide. These include the executive summary, technical memorandum on implementation, and communication materials including the PowerPoint presentation, one-page e- mail blast, and conference workshop. This chapter also identifies challenges that are not addressed directly by the Guide and additional research to support the continued coordination of maintenance in asset management.

Next: Chapter 2 Summary of Current Knowledge »
Incorporating Maintenance Costs into a Transportation Asset Management Plan Get This Book
×
 Incorporating Maintenance Costs into a Transportation Asset Management Plan
MyNAP members save 10% online.
Login or Register to save!
Download Free PDF

Since 2018, state departments of transportation (DOTs) have been required to develop risk-based transportation asset management plans (TAMPs) and to update these plans every four years. However, the absence of maintenance cost data in a TAMP prevents agencies from fully capturing the total investment made to preserve and improve highway infrastructure assets.

NCHRP Web-Only Document 372: Incorporating Maintenance Costs into a Transportation Asset Management Plan, from TRB's National Cooperative Highway Research Program, documents research conducted to develop a framework that state DOTs and other transportation agencies can use to incorporate maintenance costs into their TAMP.

The document is supplemental to NCHRP Research Report 1076: A Guide to Incorporating Maintenance Costs into a Transportation Asset Management Plan.

READ FREE ONLINE

  1. ×

    Welcome to OpenBook!

    You're looking at OpenBook, NAP.edu's online reading room since 1999. Based on feedback from you, our users, we've made some improvements that make it easier than ever to read thousands of publications on our website.

    Do you want to take a quick tour of the OpenBook's features?

    No Thanks Take a Tour »
  2. ×

    Show this book's table of contents, where you can jump to any chapter by name.

    « Back Next »
  3. ×

    ...or use these buttons to go back to the previous chapter or skip to the next one.

    « Back Next »
  4. ×

    Jump up to the previous page or down to the next one. Also, you can type in a page number and press Enter to go directly to that page in the book.

    « Back Next »
  5. ×

    To search the entire text of this book, type in your search term here and press Enter.

    « Back Next »
  6. ×

    Share a link to this book page on your preferred social network or via email.

    « Back Next »
  7. ×

    View our suggested citation for this chapter.

    « Back Next »
  8. ×

    Ready to take your reading offline? Click here to buy this book in print or download it as a free PDF, if available.

    « Back Next »
Stay Connected!