How To Manage Transportation Asset Management

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1 1 TRANSPORTATION ASSET MANAGEMENT THE NEW BUSINESS MODEL FOR TRANSPORTATION AGENCIES Presented at the AASHTO Subcommittee on Transportation Finance Policy Business Meeting Irvine, California June 26, 2012 by Michael Bridges, P.E. Undersecretary Office of Management and Finance Louisiana Department of Transportation and Development

2 2 What is Transportation Asset Management? Is it a. Planning System? Strategic Management System? Performance Management System? Work Order System? Asset Inventory System? Financial Planning System? It s all of these and more.

3 3 Perspectives on TAM Transportation 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. Engineering Finance Management Economics Marketing Leadership Culture the business of infrastructure

4 4 TAM covers a wide portfolio of assets Pavements Bridges Tunnels Other structures such as retaining walls, culverts, sign structures, etc Curbs, channels, dams, and drainage facilities Barriers, railings, and medians Road signs Pavement markings Traffic signals and control equipment Intelligent transportation systems (ITS) Street lighting Sidewalks Bicycle lanes and paths on the right of way Parking facilities such as pay and display machines, parking meters Rest areas Maintenance buildings and equipment Landscaping

5 5 The importance of infrastructure Infrastructure underpins national economies and supports lifestyles It s often taken for granted by the community until it fails It represents a major investment by communities progressively built up over a long period It provides a platform for economic growth and social development

6 s 1990 s 2000 s Evolution of TAM in the US Performance management growing in importance AASHTO creates SCOPM TAM Guide Vol. 2 project initiated Greater use of AM principles in everyday DOT Greater use of pavement and bridge management systems in state DOTs AM Guide Vol. 1 project initiated ISTEA, federal transportation authorization requires six management systems Many agencies initiate management system efforts most with limited success FHWA creates Office of AM, AASHTO creates subcommittee on AM Interest in AM grows in state DOTs as they face growing needs and limited resources Pavement Management Systems used in some agencies A few custom bridge management systems in place Initiation of Pontis BMS effort by FHWA Program management approaches used by a few agencies

7 7 Today s Challenges Aging Infrastructure Networks Increasing Use of Technology to Solve Problems Growing Travel Volume and Congestion Limited Financial Resources Growing Pressure Nationally and Locally for Performance and Accountability

8 8 TAM will assist agencies meet the challenges Greater accountability to the public and funding agencies. Maximizing use of resources within a highly constrained funding environment. Linking investment levels to infrastructure condition and transportation system performance. Preserving assets and improving safety in the face of growing impacts and costs of asset deterioration. Public expectations for more sustainable transportation solutions.

9 9 WHY SHOULD TRANSPORTATION FINANCE AND POLICY PROFESSIONALS CARE? State DOTs need to know the answers to these five core questions.

10 10 1. What is the state of my assets? What do I own? Where is it? What condition is it in? What is its remaining useful life? What is its remaining economic value?

11 11 2. What is my required level of service? What is the demand for services by stakeholders? Are there regulatory requirements I must meet? What is my actual performance?

12 3. Which assets are critical to sustained performance? How can it fail? How does it fail? What is the likelihood of failure? What does it cost to repair? What are the consequences of failure? How can I mitigate these failures? 12

13 4. What are my best Operations and Maintenance and Capital Improvement investment strategies? What alternative management options exist? Which are the most feasible for my organization? 13

14 14 5. What is my best long-term funding strategy? What revenues will I have? What is my investment gap or surplus to meet asset condition goals? What is my revenue gap to keep my asset within my risk tolerance level? What would be my optimum mix of: Preservation and Preventive Maintenance Reactive Maintenance Rehabilitation Replacement If I cannot afford my optimum mix, what is the best mix of fixes I can afford?

15 15 MAP-21 A State shall develop a risk-based asset management plan for the National Highway System based on a process defined by the Secretary to guide effective investment decisions to improve or preserve asset condition and system performance.

16 16 TAM Resources Are Available AASHTO Asset Management Subcommittee FHWA Office of Asset Management: TRB Asset Management Committee

17 17 QUESTIONS?? Michael Bridges, P.E. (225)

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