Transportation Asset Management

Asset Management (AM) is actually a system that is developed to monitor a set of valuable assets in a boundary, say a state or a city or even within a family. This helps in maintaining a healthy and cost-effective attitude toward the valuable properties, although asset does not necessarily has to be a physical property (such as bridges, roadways, etc.). According to the MAP-21 Act, asset management includes actions sequences of maintenance, preservation, repair, rehabilitation, and replacement to sustain the value of the assets at a minimum practicable cost.

Transportation Asset Management is a plan to cover the properties related to different performance areas. That is, for example, there are different programs (or performance areas) defined by different organizations such as NHTSA, FHWA, etc. in order to distribute the funds on maintenance or improvement plans. So, for example, the highway safety improvement program is a program or performance area. Each one of the programs defined by these organizations follow a set of rules on how the funds can or should be spent. These rules are developed through performance rule-making process. 

One well-known asset management is based on the potential risk to the assets, which is called risk-based asset management. In the process of rule-making for a public notice is released by the law that includes several sections or articles relating to specific issues identified in the suggested program. This notice is called the notice of proposed rule-making (NPRM), and is open to public through regulations website where people can present their comments. Risk-based asset management is a decision making framework that helps in understanding how the decisions made today affect the sustainability of value and performance of the infrastructures in future. 

The process of developing the asset management includes several steps that go together into the final plan:

• • Minimum Required Process

    • performance gap analysis

      1. determining the performance targets

      2. determining the gap between current conditions and the targets

      3. determining alternative strategies to address these gaps

    • life-cycle cost analysis

    • risk management analysis 

• • • 1. identifying the risks in condition and effectiveness of the assets

      2. evaluating the likelihood, impact and potential consequences of the risks 

      3. prioritizing the risks

      4. developing mitigation plans

      5. monitoring the locations with higher risk potential

      6. evaluating the facilities under risk

• • • financial plan for a minimum period of 10 years

• • • 1. determining the annual costs

      2. determining the funding sources

      3. estimating the future implementation costs

      4. estimating the future funding availability

      5. estimating the value of assets

      6. estimating the required investment to sustain the values of the assets

• • • investment strategies

  • Bridge and Pavement Management Systems

    • inventory and condition data for the assets

    • predicting their deterioration

    • determining alternative strategies for sustaining the assets' condition

    • conducting life-cycle benefit-cost analysis for the alternative strategies

    • identifying the required funds 

    • determining the optimal strategies

    • determining the implementation schedule and program details

  • Approval by State DOT Head

Each one of the above are noted in the different sections of the NPRM developed for Asset Management purposes. Here are also some useful resources for further information:

• FHWA office of Asset Management

  • FHWA Order 5520: Transportation System Preparedness and Resilience to Climate Change and Extreme Weather Events

• FHWA Presentations and Recordings on Transportation Performance Management (TPM)

• FHWA Risk-Based Asset Management Plan (last accessed 04/13/2015)