NCHRP Web-Only Document 448

Implementation of A Guide to Computation and Use of System-Level Valuation of Transportation Assets

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COOPERATIVE RESEARCH PROGRAMS

CRP STAFF FOR NCHRP WEB-ONLY DOCUMENT 448

Monique R. Evans, Director, Cooperative Research Programs

Waseem Dekelbab, Deputy Director, Cooperative Research Programs, and Manager, National Cooperative Highway Research Program

Sid Mohan, NCHRP Associate Program Manager for Implementation and Technology Transfer

Kevin L. Padilla, Senior Program Assistant

Natalie Barnes, Director of Publications

Brian Haefs, Associate Director of Publications

Kathleen Mion, Assistant Editor

NCHRP PROJECT 20-44(46) PANEL

Field of Special Projects

Jill Mackenzie Geboy, Woolpert, Inc., Bellefontaine, OH

Laura B. Heckel, Illinois Department of Transportation, Springfield, IL

Anand Maganti, California Department of Transportation, Rocklin, CA

James E. Moore, University of Southern California, Los Angeles, CA

Joan Zhong-Brisbois, Jacobs, Bellevue, WA

Vidya N. Mysore, FHWA Liaison

Foreword

By Sid Mohan

Staff Officer

Transportation Research Board

NCHRP Web-Only Document 448: Implementation of A Guide to Computation and Use of System-Level Valuation of Transportation Assets presents the implementation of NCHRP Web-Only Document 335: A Guide to Computation and Use of System-Level Valuation of Transportation Assets at six state departments of transportation (DOTs). The implementation was supported by iterative consultations with state DOT personnel and is documented through six case studies that highlight the unique experiences of each participating state DOT. This document will be useful to state DOT personnel interested in undertaking asset valuation in their own agencies, based on the experiences of the six state DOTs that were part of this implementation effort.

Determining the value of a transportation agency’s physical assets is important for both financial reporting and transportation asset management (TAM). In financial reporting, determining asset value is a fundamental step in preparing a balance sheet for financial statements to inform regulators and investors. For TAM, presenting data on the value of physical assets, such as pavement, bridges, and facilities, communicates what an organization owns and what it must maintain. Furthermore, information about asset value and how it is changing can help establish how the organization is maintaining its asset inventory and support investment decisions. NCHRP Web-Only Document 335: A Guide to Computation and Use of System-Level Valuation of Transportation Assets details how to calculate asset value and apply it to support TAM. However, research was needed to support the further use of NCHRP Web-Only Document 335 at state DOTs.

Under NCHRP Project 20-44(46), “Implementing the Asset Valuation Guide Developed Through NCHRP Project 23-06,” Spy Pond Partners, LLC was tasked with supporting the use of NCHRP Web-Only Document 335 at six state DOTs. The research included:

• Preparation of outreach materials to disseminate information about asset valuation to stakeholder groups.
• Identification of pilot participants and potential use cases that the pilots would explore.
• Conduct of six pilots of the asset valuation guidance, which included data collection, resolution of data issues, data analysis, and an agency review.
• Development of case studies that describe the asset valuation practices used in the pilots—including tools, programs, and processes—in sufficient detail to support technology transfer to other agencies.

• Development of supplemental materials, including two calculation templates and a glossary of key terms.

Supplemental to this document are the following two spreadsheet templates used for calculating asset values:

• Ancillary Asset Value Template.
• Bridge Value Template.

These templates can be found at nationalacademies.org/publications by searching for NCHRP Web-Only Document 448: Implementation of A Guide to Computation and Use of System-Level Valuation of Transportation Assets.

Contents

1. Research Summary

1.1 Background

1.2 Research Objectives

1.3 Research Approach Summary

1.4 Document Organization

2. Task Summaries

2.1 Task 1: Outreach Material Development

2.2 Task 2: Pilot Participation Identification

2.3 Task 3: Pilot Implementation

2.4 Task 4: Case Study Development

2.5 Task 5: Supplementary Material Development

2.6 Task 6: Report Preparation

3. Action Plan

3.1 Dissemination of Research

3.2 Ongoing Website Maintenance

3.3 Development of Future Case Studies Based on Reader Feedback

3.4 Participate in Asset Valuation Standards Development

3.5 Improved Integration with Other Asset Management Publications

3.6 Synthesis Project

Appendix A. Outreach Materials

A-1. Pilot Program Promotional Flyer

A-2. Asset Valuation Quick Start Guide

Appendix B. Case Studies

B-1. Calculating Asset Value for Pavement Base and Surface in a Midwestern Agency

B-2. Comparing Pavement Valuation Based on Condition vs. Age in a Southwestern Agency

B-3. Calculating Asset Value for Assets with Varying Levels of Data Availability in a Western Agency

B-4. Comparing Bridge Valuation Using Three Depreciation Approaches in a Northwestern Agency

B-5. Using FHWA BIP Tool Data to Develop Bridge Deterioration Curves

B-6. Valuing a Bridge Using the Economic Perspective in an Eastern Agency

B-7. Valuing Pavement Based on Condition in a Metropolitan Agency

B-8. Calculating Vehicle Asset Value Using the Market Perspective

B-9. Valuing Highway Assets Using the Economic Perspective in a Western Agency

Appendix C. Presentation Materials

List of Figures

Figure 1-1. Online Asset Valuation Guide

Figure 1-2. Perspectives on Asset Value

Figure 1-3. Summary of the Research Approach

Figure 2-1. Asset Valuation Implementation Pilot Flyer

Figure 2-2. Depiction of Audio Guidance

Figure 2-3. Glossary Page

Figure 2-4. Recent Updates Page

Figure 2-5. Navigation Menu Example

Figure 2-6. Search Example

List of Tables

Table 2-1. Task 1 Deliverables

Table 2-2. Task 2 Deliverables

Table 2-3. Pilot Participants

Table 2-4. Case Studies Developed in Task 4

Table 2-5. Supplemental Case Studies