The Federal Highway Administration Office of Asset Management is aggressively promoting a different way for transportation agencies to distribute their resources among alternative investment options. This new way of doing business, referred to as "Asset Management," is a strategic approach to maximizing the benefits resulting from the expenditure of agency resources.
For any transportation agency, the progression toward effective Asset Management practices will involve a range of activities. These endeavors will differ from State to State. For example, some agencies will pursue a data integration strategy in order to ensure comparable data for the evaluation of investment alternatives across different asset classes. Others will move to deploy economic analysis tools to generate fact-based information for decision makers. Still others will want to integrate new inventory assessment methods into their decision-making processes.
Much can be learned from those who are readying their organizations for Asset Management. To spark the exchange of information, in 2003 we initiated a series of case studies focused on agencies that are leading the way. The series involves four tracks: data integration, economics in Asset Management, the Highway Economic Requirements System-State Version, and life-cycle cost analysis. Through the years, we will add new agency reports to each of the tracks and create new tracks addressing other facets of Asset Management, such as change management and performance measurement.
On behalf of the Office of Asset Management, I am pleased to add this case study on economics in Asset Management to the series. We believe the case studies will help agencies meet the challenges of implementing Asset Management programs.
David R. Geiger
Director, Office of Asset Management
The Transportation Asset Management Case Study Series is the result of a partnership between State departments of transportation, local government agencies, and the Federal Highway Administration's (FHWA's) Office of Asset Management. FHWA provides the forum in which to share information, and the individual States and local government agencies provide the details of their experiences. For each case study report, the FHWA interviewed State or local government agency staffs, and the State or local government agency approved the resulting material. As such, the reports rely on the agencies' own assessment of their experience. Readers should note that the reported results may or may not be reproducible in other organizations.