Transportation Asset Management FHWA Perspective U.S. Department of Transportation Federal Highway Administration David R. Geiger April 5, 2006
Highway Agency FHWA Relationships AASHTO State DOTs Local Governments Private Sector
Congestion Infrastructure Freight
6.4 Million km of Highways 590,685 Bridges 400 Tunnels U.S. Highway Infrastructure
Asset Management: - The principals of Transportation Asset Management are applicable for developing countries, countries in transition, and developed countries. - The issues and approaches may vary from country-to-country, jurisdiction-tojurisdiction -- one size does not fit all.
Where are we in the organization? FHWA Administrator Planning and Environment Safety Infrastructure Etc. Program Administration Bridge Technology Asset Management Pavement Technology System Management and Monitoring Construction and System Preservation Evaluation and Economic Investment
Office Focus Areas: 1. Asset Management 2. Management Systems 3. Transportation System Quality and Performance 4. System Preservation 5. Meeting Customer Needs 6. Engineering Economic Analysis 7. Data Integration
What is Transportation Asset Management: Asset Management is a strategic and systematic process of operating, maintaining, upgrading and expanding physical assets effectively throughout their lifecycle. It focuses on business and engineering practices for resource allocation and utilization, with the objective of better decision making based upon quality information and well defined objectives. AASHTO Subcommittee on Asset Management
It s about Decision making......at every level...across disciplines...with performance measures...and feedback at all levels
Performance Measures Measure what is needed to make business decisions Important to have measures which the public can relate to Visualization of impacts is critical Reducing fatalities and injury accidents Data is necessary Collect data as a conscious plan to improve performance Before and after studies are important
Performance Measures Measure what matters Use plain language to describe the measurement Be able to analyze the measurement
Transportation Asset Management Feedback Goals and Objectives Analysis of Options and Tradeoffs Preservation, Operations, Capacity Expansion Decision-Making & Resource Allocation Implementation Monitoring and Performance Measures Overview Policies Budgets Expectations
Management Systems Focus Areas: Pavements, Bridges, Safety, Operations, Culverts, etc. - Data needs (what s important) - Prioritization and trade-offs - Don t forget traffic - Don t wait to get started
Asset Management... Expenditure of funds: Based on trade-off analysis, alternatives considered across functions and asset classes Driven by customer requirements Incorporate extended time horizons Include economic and engineering considerations Systematic and data driven
Transportation Asset Management Life-cycle cost analysis Data Integration Preservation Options Remaining Service Life Informed Decision-Making
Benefits of Using Economic Analysis: Cost Effective Design and Construction Analyze design options and construction alternatives Life-cost applications as part of pavement design and preservation initiatives Best Return on Investment Understanding Complex Projects Documentation of Decision Process Road User Costs
Challenges Opposition Failure to recognize benefits Lack of understanding Resistance to change People s Attitudes
Why Asset Management is Important: Improves resource allocation Improves system reliability and performance Improves decision making: --know what performs best --which devices have the lowest long-term costs
Why an Asset Management System is important: Doing the right action, to the right asset, at the right time Allocating resources more effectively and efficiently Improving the efficiency of the movement of people and goods Reducing highway fatalities and injury crashes
How to Implement a Transportation Asset Management Program? Establish strategy and objectives Develop specific and measurable performance and service levels Evaluate existing processes Define gaps, needs, and opportunities Develop a Business Plan to support Asset Management Develop an Asset Management Plan (identifies not only budget and expenditures for an asset, but also what is working well and where work is needed)
The agency using TAM will improve customer satisfaction by: Maximizing highway service performance Minimizing life cycle costs Being more accountable Being better positioned to anticipate and secure needed funding
International Scanning Review Undertaken in April 2005 - Purpose Investigate best case examples of asset management techniques and processes in the world and identify lessons and applications for the U.S. Sponsored by AASHTO, FHWA, and NCHRP
Where we went. London, England Edmonton, Alberta Brisbane, Queensland Wellington, New Zealand Melbourne, Victoria Sydney, New South Wales
What were the drivers for adopting asset management approaches? Limited resources Increasing demands on and use of existing infrastructure Desire for credibility with elected officials and the public, that is, linking funding to system performance Where private provision of services was used, asset management was a way of providing strategic oversight
Natural evolution in the development of individual infrastructure management systems Desire to evolve to a system that allows trade-offs among different asset categories and between asset strategies Legislative or governmental mandate, e.g., Road Management Act in Victoria Local Transport Plan 2 guidance in England Local Government Act in New Zealand
What we found Each site visited has made a long term commitment to, and allocated resources for, developing an asset management program. and are continuing to evolve this program in response to agency decision-making needs.
Key performance measures and indicators provided a critical point of departure and an accountability reference for asset management programs
Lessons for the U.S. Asset management programs have been used successfully to justify transportation funding (even in tight economic times) and to convey to decision makers that the investment is being delivered in the most cost effective manner possible.
Asset management programs have helped transportation agencies focus on network performance and to identify the best value for dollar of limited investment resources. http://assetmanagement.transportation.org http://www.fhwa.dot.gov/infrastructure/asstmgmt/index.htm