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Conditions and Performance Report. Appendix I.
| Conditions and Performance Report
Appendix ITransit Investment Condition and
Investment Requirements Methodology
Conditions and Performance
Performance Home Page
Transit Economics Requirements Model
Asset Rehabilitation and Replacement Module
Asset Expansion Module
Performance Enhancement Module
Rural and Specialized Transit Service Investments
This appendix contains a technical description of the methods used to determine transit
asset conditions and future investment requirements. It is primarily a description of the Transit
Economic Requirements Model (TERM) and one of the key improvements made to the model for this
reporting cycle, stemming from the 1999 National Bus Condition Assessment.
Transit Economic Requirements Model
The Transit Economic Requirements Model (TERM) provides estimates of the total annual
capital expenditures required to maintain or improve the physical condition of transit systems and the
level of service they provide. The estimate represents the total urbanized area transit investment
required by all levels of government. The model also generates estimates of current transit conditions
and performance evaluates the impact of varying levels and types of investment on future conditions
TERM forecasts investment needs via four distinct modules:
- Asset Rehabilitation and Replacement
Reinvestment in existing assets to maintain and improve the assets' physical condition
- Asset Expansion
Investments in new assets such as vehicles and facilities to maintain
operating performance to meet forecasts of travel demand
- Performance Enhancement
Investments in additional transit capacity to improve operating performance
- Benefit-Cost Tests
All investments identified are analyzed on a benefit-costs basis, and only those with
a benefit-cost ratio greater than 1 are included in the national investments estimate.
This roughly corresponds to the "Maximum Economic Investment" concept in HERS.
The TERM modules are further subdivided by mode, asset type, and urban area characteristics.
In addition to investment estimates, TERM generates estimates of the physical condition of
the Nation's transit assets, as described in Chapter 3.
Page last modified on November 7, 2014.