Where Have We Been, How Do We Get to the Next Level, and Making Asset Management A Reality

Tom Maze, Howard R. Green Co.

Omar Smadi, CTRE

Dave Plazak, CTRE

Presentation Outline

What has been accomplished to date– What,– When and who, – Why

Challenges and conclusions

Where are we with respect to widespread deployment

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Conceptualization

Outreach and Awareness

Early Applications and Pilots

Development of the Science

Development of Tools

Evaluations

Maturation

Training and Dissemination

Routine Application

What?

What is transportation asset management (TAM)??– TAM is a discipline – TAM is a philosophy– TAM is a group of concepts/principles– TAM is an approach – TAM is a process– TAM is a methodology

TAM Definition

AASHTO/FHWA

“Asset management is a systematic process of maintaining, upgrading, and operating physical assets cost-effectively.  It combines Engineering principles with sound business practices and economic theory, and it provides tools to facilitate a more organized, logical approach to decision-making.  Thus, asset management provides a framework for handling both short- and long-range planning.’

TAM Definitions Commonwealth of Victoria, Australia“Asset management is the process of guiding the acquisition, use

and disposal of assets to make the most of their service delivery potential and manage the relate risks and costs over their entire life.”– Steps

• Needs analysis (demand analysis)• Economic appraisal (valuation)• Integrate with planning process• Budgeting (over entire life-cycle)• Pricing• Economic evaluation of acquisition and disposal options• Recording, valuation and reporting (condition/performance appraisal)• Management in use (maintenance management)

What is the Current Backdrop for Asset Management Use of TAM represents a more systematic

management approach “The public are all investors in the state and

federal transportation corporation.”– We need to demonstrate that they (the public) are

getting a good return on their investment. Mary Peters, FHWA Administrator

These suggest that transportation agencies must operate more like a competitive business.

Examples of Pressure to Improve Return on Investment and Accountability

Streamline environmental review Greater emphasis on public involvement and

stakeholder participation More emphasis on performance measurement Extensive privatization of the facility delivery process Alternatives to traditional design-bid-build project

delivery– Design-Build– Design-Build-Operate-Transfer– Warrantees– Etc.

Who and when

Australia, New Zealand, and Canada started in the early to mid 1990s

AASHTO/FHWA Executive Level National Workshops on TAM– 1996 Washington DC– 1997 Troy, NY at RPI– 1999 Scottsdale, AZ– 2001 Madison, WI at U of Wisc.

AASHTO 1997 Created Asset Management Task Force 1999 Adopted Strategic Plan Cooperated with NCHRP to:

– Initiated an NCHRP Project to Develop Guide, in 1999

– Initiated an NCHRP Project to Document DOT Compliance with GASB 34 in 2001

– Initiated an NCHRP Project on Analytic Tools in 2001– Anticipated NCHRP Project on Performance Measure

in 2002 2002 Established this Joint Workshop

FHWA 1998 Established Office of Asset Management

– Established as a result of a strategic planning process– Mission

• Provide leadership and expertise for TAM• Develop a strategic framework for asset management for roads, tunnels

and bridges• Provide technical guidance and assistance• Partner with AASHTO, NCHRP and other governmental groups

1999 Asset Management Primmer Initiative focuses

– System Management and Monitoring Team– Construction and System Preservation Team– Evaluation and Economic Investment Team

Local Technical Assistance Program (LTAP)

TRB

2000 Established Asset Management Task Force– Coordinate and bring together asset management

related activities into the TAM framework– Provide other Committees Guidance on TAM

2001 started to identify– What we know now– What we need to know– NCHRP synthesis requests

TRB Continue

2002 annual meeting– Decision to apply for committee status– Divided into subcommittees

• Goals, Objectives, Planning and Programming• Data Management and Analysis• Implementation• Internal Alignment and External

Communication

University programs

UTC– University of Wisconsin

• Midwest Regional University Transportation Center– Iowa State University

• Midwest Transportation Consortium Other University Initiatives

– University Transportation Center, UIC– Institute for Civil Infrastructure Systems NYU– George Mason University – Infrastructure Systems Engineering, U of Mn– Many others

States Michigan – HB 5396

– Requires asset management approach for all transportation assets

– State Transportation Commission will provide oversight– Establish 11 Person Asset Management Council– Common condition assessment and data collect– Establish an asset management strategy and common

definitions• Start with federal-aid system

– Requires a joint multi-year road and bridge program– Annual monitoring and reporting to legislature– Funded from Michigan Transportation Fund

Iowa Iowa Statewide System

– 1993 develop interjurisdictional steering committee– Started with 23,000 mile federal aid system

• Statewide GIS database• Purchase of statewide PMS software license

– Combined PMS data, crash record, five year plan, NBI, and traffic counts

– 2001 initiated state-bridge management program– 2002 about 31,000 miles under management

Other notables

New York DOT Montana DOT Colorado DOT Florida DOT South Carolina DOT Maine DOT

Others Organizations Involved in TAM GASB – Statement 34 ASCE APWA ACPA ARTBA OECD PIARC Etc.

About AASHTO Strategic Plan

Goal 1: Develop Partnerships– 4 strategies

Goal 2: Develop An Understanding– 7 strategies

Goal 3: Promote Tools and Research– 8 strategies

Goal 4: Inform Members States on Use– 2 strategies

Goal 5: Assist Member States– 4 strategies

About the NCHRP First Generation Guide Phase I

– Task 1: Synthesis of Asset Management Practice– Task 2: Development of an Asset Management

Framework– Task 3: Prioritize a Research Program

Phase II– First generation Asset Management Guide

Pilot NHI Workshop on the Guide– Held last month in Lansing, Michigan

TAM Research Priorities

National Research and Technology Partnership– Research Categories

• Information Management – 3 issue areas– $5 million per year over 10 years ($50 million)

• Decision Support Tool– 5 issue areas– $5 million over 5 years

• Implementation– 2 issue areas– $1 million over 3 years

• Education– 3 issue areas– $2 million per year over 10 years ($20 million)

• Total expenditure $76 million

Priorities Continued Research Priorities From NCHRP Study

– Policy and Institutional• 11 projects• $2.3 million

– Information, Analytical Tools and Technology• 12 projects• $13.1 million

– Planning, Program Development and Delivery• 5 projects• $1.2 million

– Training and Information Sharing• 6 projects• $4.5 million

– Academic Programs and Materials• 2 focus areas• $6 million

– Total estimated expenditure $27.5 million

Priorities continued TRB Task Force

– Subcommittee on Data Management and Analysis• Synthesis on state of the practice of data integration• Develop issues for 5th National TAM Conference

– Subcommittee on Internal Alignment and External Communications

• Synthesis– Communicating the value of preservation to non-

transportation professionals

• Research topic– Addressing institutional barriers to TAM

Priorities continued

TRB task force– Implementation subcommittee

• Research Issues– Integrating TAM decision-making across agency

offices– TAM approach to multi-modal investments– Use of TAM for strategic/legislative decision making– Creative use of the private sector to more effectively

and efficiently manage resources

Why???

Benefits of TAM implementation– Most evidence of benefits is subjective

Conclusions

Lots of who, what and when and weak on why

Where are we with respect to state-of-the-art development– Individual asset management systems are

mature– TAM is in outreach/awareness and early

application phase

Conclusions/Recommendations from MRUTC Duplication of research efforts and need

for collaboration Conservation and community focus Interdisciplinary focus Community leadership

Questions

Questions – assuming that we agree that we should press-on?– How do we motivate organizations to implement

TAM?– How do we link the TAM agenda to a more

practical process?– What parts of the research, development, training,

and education agenda should be accomplished by what groups?

– How do we finance the agenda?