Guide to Calculating Ownership and Operating Costs of Department of Transportation Vehicles and Equipment: An Accounting Perspective (2020) / Chapter Skim
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Pages 59-73
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60 Category Suggested Performance Metric Comments Parts cost per vehicle, by vehicle type Usually based on parts issue records, which are often a better indicator than unit labor costs. Service Quality Frequency of inservice breakdowns Measured as overall vehicle miles or hours between in-service breakdowns.
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61 Union Pacific (railroad company) uses performance measures that attempt to recognize customer performance and organizational performance in relation to safety, service, value, and leadership.
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62 used to determine whether that vehicle needs replacement. Condition is determined based on 14 factors: age, total mileage, miles per year on paved roads, miles per year on unpaved roads, wheelchair accessibility, percentage of those with income less than $15,000 in the county of operation, total population in county of operation, percentage of population greater than age 65 in the county of operation, percentage of population less than age 18 in the county of operation, percentage of single-person households in the county of operation, percentage of minority population in the county of operation, percentage of population who work in the county of operation, percentage of commuters on public transportation in the county of operation, and percentage of people in poverty in the county of operation.
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63 CTC & Associates LLC.
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64 methods currently used to manage asset replacement, including the financing of replacement expenditures and their relative advantages and disadvantages. The survey explored six decision support methods DOTs use for planning asset replacements: 1.
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65 judged by some survey respondents to be ineffective, but no explanations were offered for why. The paper also reported that annual budgets are the most ineffective in promoting an understanding of trade-offs between asset capital and operating costs and opportunities to optimize them.
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66 challenge in making a fleet younger and more economically efficient is securing the funds for replacing obsolete assets that have been backlogged. The literature shows that outright purchase of assets with cash is the least beneficial method for financing assets (despite its widespread use by governments)
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67 3. Required supplementary information According to GASB, governments should report on all net assets -- include assets, infrastructure assets, their depreciation or cost of upkeep, liabilities, revenues, expenses, gains, and losses -- and provide a statement of activities, prepared using accrual accounting.
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68 Hildreth, J
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69 This report presents a framework for asset management, defining the key principles of asset management as a way of doing business that a department can adopt in examining its current procedures and seeing how better decisions on infrastructure management can be made with better information. According to the paper, transportation asset management represents these ideals: • Asset Management is a Philosophy.
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70 vehicles average 17.1 cents per mile to operate and trucks average 43.4 cents per mile to operate, not counting costs associated with drivers or travel times. City driving conditions, involving frequent stops and starts, increase this cost by 3.9 cents per mile for personal vehicles and 9.5 cents for trucks.
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71 DOT and the specific activity. In response to the survey questionnaire, the DOTs identified staff constraints, specialty skills, and equipment as principal factors influencing the decision to outsource, while cost-effectiveness was rarely cited as a reason.
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72 TRB Committee on Maintenance Equipment.
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73 Khasnabis, S., J Bartus, and R
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