Stephen Gaj Leader, Asset Management Team Office of Asset Management, Pavements, and Construction FHWA
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1 Stephen Gaj Leader, Asset Management Team Office of Asset Management, Pavements, and Construction FHWA
2 National Goals Focus the Federal-aid program on the following national goals: 1) SAFETY 2) INFRASTRUCTURE CONDITION 3) CONGESTION REDUCTION 4) SYSTEM RELIABILITY 5) FREIGHT MOVEMENT AND ECONOMIC VITALITY 6) ENVIRONMENTAL SUSTAINABILITY 7) REDUCED PROJECT DELIVERY DELAYS
3 INFRASTRUCTURE CONDITION Maintain the highway infrastructure asset system in a state of good repair.
4 What is asset management? Asset management is a strategic and systematic process of operating, maintaining, and improving physical assets, with a focus on 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 lifecycle of the assets at minimum practicable cost. (23 U.S.C. 101(a)(2), MAP )
5 What is asset management? Asset management is a strategic and systematic process of operating, maintaining, and improving physical assets, with a focus on 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 lifecycle of the assets at minimum practicable cost. (23 U.S.C. 101(a)(2), MAP )
6 What requirements does MAP-21 have pertaining to asset management? Each State is required to develop a risk-based asset management plan for the National Highway System (NHS) to improve or preserve the condition of the assets and the performance of the system. (23 U.S.C. 119(e)(1), MAP ) USDOT is required to issue a regulation not later than 18 months after date of enactment, after consultation with the States and other stakeholders, which will establish the process to develop the State asset management plan for the NHS. ( 23 U.S.C. 119(e)(8), MAP )
7 Asset Management Plans National Highway Performance Program Developed using process approved by USDOT Recertified every 4 years MAP-21: Performance Management
8 What are the scope and content of a riskbased asset management plan? Includes strategies that lead to a program of projects that would make progress toward achievement of the State targets for asset condition and performance of the NHS States must address pavements and bridges but are encouraged to include all infrastructure assets within the highway right-of-way in their risk-based asset management plan. MAP-21: Performance Management
9 Highway Asset Management Plan Plan Contents pavement and bridge inventory and conditions on the NHS, objectives and measures, performance gap identification, lifecycle cost and risk management analysis, a financial plan, and investment strategies (preservation) MAP-21: Performance Management
10 Highway Asset Management Plan USDOT, in consultation with State DOTs, will establish the process to develop the plan through a rulemaking no later than 18 months after 10/1/2012 States must have a plan developed consistent with the process by the 2 nd fiscal year, otherwise federal share for NHPP will be reduced to 65% Process certification USDOT 90 days review period to determine certification States have 90 days to cure deficiencies if not certified Recertification required every 4 yrs MAP-21: Performance Management
11 Management Systems USDOT will establish minimum standards for States to use in developing and operating: Bridge management systems Pavement management systems Minimum standards established through a rulemaking Minimum 90 day comment period USDOT will promulgate a rulemaking not later than 18 months after date of enactment MAP-21: Performance Management
12 Asset Management Basics: Five Core Questions 1. What is the current state of my assets? 2. What is my required level of service/ performance? 3. Which assets are critical to sustained performance? 4. What are my best Operations and Maintenance and Capital Improvement investment strategies? 5. What is my best long-term funding strategy?
13 Asset Management Basics: Five Core Questions 1. What is the current 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? MAP-21: Asset Management
14 Asset Management Basics: Five Core Questions 2. What is my required level of service/ performance level? What is the demand for services by stakeholders? Are there regulatory requirements? What is my actual performance? MAP-21: Asset Management
15 Asset Management Basics: Five Core Questions 3. Which assets are critical to sustained performance? How does it fail? How can it fail? What is the likelihood of failure? What does it cost to repair? What are the consequences of failure? MAP-21: Asset Management
16 Asset Management Basics: Five Core Questions 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? 5. What is my best long-term funding strategy? MAP-21: Asset Management Management
17 Is the cost of developing a risk-based asset management plan eligible for Federal funding? Yes, costs associated with development of a risk-based asset management plan are eligible for Federal funding. Specifically, these costs are eligible for both National Highway Performance Program (NHPP) and Surface Transportation Program (STP) funds pursuant to 23 U.S.C. 119(d)(2)(K)(MAP ) and 133(b)(24) (MAP ). These activities include data collection, maintenance, and integration and the cost associated with obtaining, updating, and licensing software and equipment required for risk-based asset management and performance-based management. (23 USC 119(d)(2)(K), 133(b)(24), MAP , 1108)
18 Is the cost of developing a risk-based asset management plan eligible for Federal funding? State Planning and Research (SPR) funds may also be used for asset management plans and processes for the NHS. (23 U.S.C. 505(a)(3) MAP ) Additional guidance will be provided separately.
19 Is the eligibility for risk-based asset management limited to the NHS? A risk-based asset management plan that includes other public roads is eligible for STP under 23 U.S.C. 133(b)(24) (MAP ) so long as the asset management plan includes the NHS. States may use STP funds for activities on public roads similar to eligible activities for the NHS asset management plan. (23 U.S.C. 133(b)(24) MAP )
20 When must a State have an asset management plan for its NHS? Pursuant to 23 U.S.C. 119(e)(5) (MAP ), in order to avoid a reduction in the Federal share under NHPP (see Q&A 10), States are required to have developed and implemented an NHS asset management plan by the second fiscal year beginning after the USDOT establishes by regulation the process for asset management plan development. USDOT is required to issue a regulation not later than 18 months after the enactment of MAP-21. (23 U.S.C. 119(e)(8), MAP )
21 What happens if a State does not develop an Asset Management Plan meeting the requirements to be established in accordance with 23 U.S.C. 119(e)(4) and(8)? The second fiscal year beginning after the USDOT establishes by regulation the process for asset management plan development under 23 U.S.C. 119(e)(8), and in each subsequent fiscal year, if the Secretary determines that a State has not developed and implemented an asset management plan consistent with section 119, the Federal share for NHPP projects and activities in that fiscal year is reduced to 65 percent. (23 U.S.C. 119(e)(5), MAP ). MAP-21: Performance Management
22 Resources Are Available AASHTO Transportation Asset Management Guide and NHI course Asset Management Today website / community of practice: AASHTO Asset Management Guide A Focus on Implementation FHWA Office of Asset Management AASHTO Asset Management Subcommittee TRB Asset Management Committee Other
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